BILL ANALYSIS                                                                                                                                                                                                    






           SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                    Byron D. Sher, Chairman
                    1997-98 Regular Session
                                
BILL NO:    AB 1479
AUTHOR:     Sweeney
AMENDED:    May 15, 1997 and
As proposed to be amended by the author in committee
FISCAL:     Yes               HEARING DATE:     July 7, 1997
URGENCY:    No                CONSULTANT:       Sanjay Ranchod
  
SUBJECT  :    BAY PROTECTION AND TOXIC CLEANUP PROGRAM

  SUMMARY  :    

  Existing Law  , the Bay Protection and Toxic Cleanup Program:

Requires the State Water Resources Control Board (the state  
   board) to formulate and adopt a water quality control plan  
   for enclosed bays and estuaries, known as the California  
   Enclosed Bays and Estuaries Plan.

   Defines "sediment quality objective" to mean that level of  
      a constituent in sediment which is established with an  
      adequate margin of safety, for the reasonable protection  
      of the beneficial uses of water or the prevention of  
      nuisances.
   Defines "toxic hot spots" to mean locations in enclosed  
      bays, estuaries, or any adjacent waters in the  
      contiguous zone or the ocean, the pollution or  
      contamination of which affects the interests of the  
      state, and where hazardous substances have accumulated  
      in the water or sediment to levels which may pose a  
      substantial hazard to aquatic life, wildlife, fisheries,  
      or human health, or may adversely affect the beneficial  
      uses of the bay, estuary, or ocean waters, or exceeds  
      adopted water quality or sediment quality objectives.

Requires the state board and the regional water quality  
   control boards (the regional boards) to develop and  
   maintain a comprehensive program to identify and  
   characterize toxic hot spots and plan for their cleanup,  
   remediation, or mitigation.













Authorizes each regional board that has regulatory authority  
   for one or more enclosed bays or estuaries to develop, for  
   each one, a consolidated data base which identifies and  
   describes all known and potential toxic hot spots by  
   January 30, 1994, and requires each regional board to  
   develop an ongoing monitoring and surveillance program.

Requires the state board to adopt sediment quality objectives.

Requires the state board to adopt general criteria for the  
   assessment and priority ranking of toxic hot spots by  
   January 30, 1994.

Requires each regional board to complete and submit to the  
   state board a toxic hot spots cleanup plan by January 1,  
   1998, and requires the state board to submit to the  
   Legislature a consolidated statewide toxic hot spots  
   cleanup plan by June 30, 1999.  These cleanup plans must  
   include:

   a priority ranking of all hot spots
   a description of each hot spot
   an estimate of the total costs to implement the plan
   an assessment of the most likely source(s) of pollutants
   an estimate of recoverable costs from responsible parties
   a preliminary assessment of actions to remedy or restore a  
      toxic hot spot
   a two-year expenditure schedule identifying state funds  
      needed to implement the plan
   a summary of mitigation and prevention actions initiated by  
      the regional boards
   in the case of the plan submitted by the state board,  
      findings and recommendations concerning the need for  
      establishment of a toxic hot spots cleanup program.

Requires each regional board to initiate a reevaluation of  
   waste discharge requirements for dischargers who have  
   caused a toxic hot spot within 120 days from the ranking of  
   that toxic hot spot.

Prohibits any person from dredging or otherwise disturbing a  
   toxic hot spot site that has been identified and ranked by  












   a regional board without first obtaining certification.

Requires the state board to establish annual fees applicable  
   to all point and nonpoint dischargers who discharge into  
   enclosed bays, estuaries, or any adjacent waters in the  
   contiguous zone or ocean.

   Requires that the fees create incentives to reduce  
      discharges.
   Prohibits the total fees collected from exceeding $4  
      million per year.
   Requires that these fees be deposited in the Bay Protection  
      and Toxic Cleanup Fund, whose funds shall be annually  
      appropriated by the Legislature for expenditure by the  
      state board.
   Repeals these fees on January 1, 1998.

  This bill  reforms, sunsets, and extends planning deadlines and  
fee sunset provisions of the Bay Protection and Toxic Cleanup  
Program.  Specifically, the bill:

Substitutes the term "areas of sediment contamination" for the  
   term "toxic hot spots," and defines the term "sediment  
   quality triad" to mean a scientific framework for  
   collecting synoptic measures of sediment chemistry,  
   toxicity, and the benthic community, and the use of those  
   measures collectively through a weight-of-evidence approach  
   to assess relative sediment quality.

Requires each regional board that has regulatory authority for  
   one or more enclosed bays or estuaries to conduct  
   comprehensive fish and shellfish tissue studies in  
   consultation with the Department of Fish and Game.

Requires posting by county health departments within 90 days  
   of the establishment of public health warnings and  
   advisories.

   Requires posting for existing warnings and advisories by  
      May 1, 1998.
   Requires the Office of Environmental Health Hazard  
      Assessment to issue final fish consumption advisories  
      within 180 days of submission by regional boards.













Extends the deadline for the state board to adopt criteria for  
   the assessment and categorization of areas of sediment  
   contamination on a regional basis, using the sediment  
   quality triad approach, to March 1, 1998.

   Establishes five categories of areas of sediment  
      contamination.
   Requires areas of sediment contamination identified as  
      significantly contaminated sediments or contaminated  
      sediments to be prioritized as either high, medium, or  
      low priority for cleanup.

Requires the Department of Fish and Game to complete and  
   submit to the state board and each regional board, and  
   release to the public, draft interpretive reports that  
   include data generated from stations sampled in each region  
   and a categorization of each site.

Extends the deadline for each regional board to complete and  
   submit to the state board, and release to the public, an  
   interim sediment contamination cleanup progress report to  
   March 31, 2000, and revises the required elements of the  
   report.

Extends the deadline for the state board to complete and  
   submit to the Legislature a consolidated report to October  
   1, 2001, and revises the required elements of the report,  
   including:

   Findings regarding the success of the program in meeting  
      its goals.
   Recommendations regarding additional steps that may be  
      needed to meet the program goals that consider  
      extending, revising, or eliminating the existing program  
      as well as measures to coordinate and integrate the  
      activities and information developed by the program into  
      activities performed by the state board and the regional  
      boards.

Requires the regional boards to submit to the state board a  
   final sediment contamination cleanup plan.













Extends the repeal date of annual fees to January 1, 2002.

Repeals the Bay Protection and Toxic Cleanup Program on  
   January 1, 2003.

Makes other minor changes.

Repeals obsolete sections and makes conforming changes.




  COMMENTS  :

  Purpose of the Bill  .  Toxic hot spots are locations in coastal  
   bodies of water where hazardous substances such as heavy  
   metals, pesticides, toxic compounds from oil and chemical  
   spills, and industrial waste discharges have accumulated in  
   the water or sediment to levels that pose a danger to  
   aquatic life, wildlife, fisheries, or human health.  In  
   response, the Bay Protection and Toxic Cleanup Program  
   (BPTCP) was created.  However, the state is lagging in  
   carrying out the program's mandated responsibility of  
   identifying and developing cleanup plans for toxic hot  
   spots.  The author's office states that AB 1479 is intended  
   to speed up and reform this program.

  BPTCP Background  .  The BPTCP was enacted in 1989 to identify  
   and rank the most hazardous toxic hot spots, determine the  
   sources of the pollution and those responsible, and develop  
   and implement cleanup plans.  The State Water Resources  
   Control Board (the state board) has overall responsibility  
   for the program, working with the regional boards and the  
   Department of Fish and Game.  

Under the program, agencies and businesses that discharge  
   wastewater into one of the bays are charged fees to pay for  
   the scientific studies of toxic hot spots.  Millions of  
   dollars in fees have been collected but the State has not  
   yet officially identified or ranked any of the dozens of  
   suspected toxic hot spots throughout the state.  State  
   agencies missed the original 1994 deadline for completing  
   and adopting a cleanup plan.  Legislation in 1993 extended  












   the deadline five years but the State is again behind.  The  
   program's funding sunsets at the end of 1997.

  Fee Collection Problems  .  The bill extends the sunset date of  
   the program's fees from January 1, 1998 to January 1, 2002.  
    Opponents contend current fees are unnecessary,  
   inequitable, and duplicative of other fees collected in the  
   San Francisco Bay Area.  A recent report prepared by staff  
   of a regional board critiquing the BPTCP raises several  
   issues with the program's fee collection system. (Review of  
   the Bay Protection and Toxic Cleanup Program: A Report to  
   the State Water Resources Control Board, April 1995, San  
   Francisco Bay Regional Water Quality Control Board)  The  
   following problems are noted in the report:

   A major shortfall in revenues has hampered program  
      implementation.  Actual revenues have been about $2.5  
      million annually, rather than the anticipated $4 million  
      annually.  The report states that "much of this  
      shortfall has been due to regional boards' downgrading  
      the classifications of their dischargers."  Should this  
      practice be curtailed?

   The BPTCP has its own fee system.  Because program staff do  
      the billing, "the state board is running two parallel  
      billing efforts to the same dischargers.  Running this  
      separate fee collection element should be regarded as a  
      distraction and a diversion."  Should the program have  
      its own fee system?

   The fee collection system does not work well.  "Most  
      regional boards report that there are significant  
      billing errors, caused by the fact that the database  
      used is not the current version."  The report recommends  
      that responsibility for BPTCP fees be shifted to the  
      state board's Fee Unit.

The bill does not change the current fee collection system.   
   This Committee may wish to incorporate amendments to  
   address this problem.

  Program Duplication  .  Opponents contend the BPTCP is  
   duplicative of other programs, such as a regional  












   monitoring program in the San Francisco Bay. The bill  
   requires that the consolidated report to be submitted to  
   the Legislature by the state board include recommendations  
   to coordinate and integrate the activities and information  
   developed by the program into activities performed by the  
   state board and regional boards.

The San Francisco Estuary Regional Monitoring Program for  
   Trace Substances (RMP), administered by the San Francisco  
   Estuary Institute, assesses fees for activities that  
   include the collection of water, sediment, and bivalve  
   tissue samples at locations throughout the Estuary.  This  
   Committee may wish to incorporate amendments that, to the  
   extent that there is duplicative overlap with the RMP and  
   other programs, eliminate such duplication.

  Lack of Tangible Results  .  Opponents and supporters of the  
   bill express concern over the lack of tangible work  
   products, due primarily to management and program problems.  
    The report states that a major reason for early program  
   problems was an unrealistic reliance on cutting edge  
   technology.  Since technical feasibility was a major issue  
   when starting up the program, tangible results were slow to  
   materialize even though fees were being collected.  The  
   program's most serious technical shortcoming concerns  
   scientific peer review.  Because the program is a  
   pioneering effort to better understand and manage toxicity,  
   it is recommended that scientific peer review be made a  
   more central element of the program.  

The program has been plagued with management problems as well.  
    There have been numerous complaints about centralizing  
   tendencies at the state board, internal management  
   shortcomings, and excessive state board overhead and  
   administrative costs, resulting in the loss of valuable  
   staff.  It appears that state board BPTCP staff should be  
   reduced in size, and that responsibility for the program be  
   more broadly shared with the regional boards and the  
   Department of Fish and Game.  The bill shifts authority  
   from the state board to regional boards and the Department  
   of Fish and Game.  This Committee may wish to incorporate  
   amendments to further restructure the program.













This Committee may also wish to incorporate amendments to  
   establish legislative oversight procedures, such as annual  
   reporting requirements, to ensure tangible results and  
   satisfactory progress toward meeting the program's goals.   
   Fees collected under the BPTCP are deposited in the Bay  
   Protection and Toxic Cleanup Fund, whose funds are annually  
   appropriated by the Legislature.  Should appropriation of  
   funds by the Legislature be made contingent upon submittal  
   of an annual report by the state board?

  Shift in Scientific Approach  .  The bill substitutes a  
   weight-of-evidence approach for a "sediment quality  
   objective" standard for purposes of assessment and  
   categorization of areas of sediment contamination.  This  
   change is intended to bring the approach mandated by law up  
   to date with current science and abandon what proved to be  
   a problematic approach.  The sponsor contends the "sediment  
   quality objective" standard was extremely  
   resource-intensive, overly rigid, and not closely related  
   to actual toxicity.

  Terminology Change  .  The bill substitutes the term "areas of  
   sediment contamination" for the term "toxic hot spots."   
   This change in terminology was suggested by the waste  
   discharge community to more accurately reflect the  
   characterization of the pollution problem.

  Program Sunset  .  The bill sunsets the program on January 1,  
   2003 but extends the sunset date on fees.  Supporters  
   contend that more time period is needed to allow the  
   program to achieve its goals.  The Sierra Club writes, "It  
   is very important for the regional boards to finish the  
   monitoring and source characterization needed to complete  
   the toxic hot spots cleanup plans... without this program,  
   the State will not be able to fully evaluate the toxic hot  
   spots problems and complete recommendations on which  
   programs are most needed to address serious existing  
   contamination in bays and estuaries."

Supporters also state that valuable monitoring data has been  
   gathered under the program.  According to the report, the  
   program "is providing us with an unprecedented  
   understanding of toxicity in California's coastal waters  












   and enclosed bays and estuaries, especially with regard to  
   sediments."  Information collected by the program may  
   already have had a direct impact on human health, such as  
   the "San Francisco Bay Fish Contaminant Study" of 1995.

  End It or Mend It  ?  Opponents of the bill argue that a  
   comprehensive watershed management approach is preferable,  
   and that the BPTCP should be ended.  The California Chamber  
   of Commerce writes, "We believe that most of the mandates  
   in the original legislation have proven to be unworkable.   
   Our members and other permitees have paid over $15 million  
   for this program for very meager returns... The California  
   Chamber of Commerce recommends that this program be  
   terminated."

  Related Legislation  .  AB 982 (Aroner, 1997) would delete the  
   January 1, 1998 repeal date on annual fees collected under  
   BPTCP, thus continuing them indefinitely.  AB 982 has been  
   referred to the Assembly Environmental Safety and Toxic  
   Materials Committee.

  Re-referral to Natural Resources and Wildlife Committee  .   
   Should this measure be approved by this committee, the do  
   pass motion should include the action to re-refer the bill  
   to the Senate Natural Resources and Wildlife Committee.

 SOURCE  :        Save San Francisco Bay Association  

SUPPORT  :       CALPIRG, Center for Marine Conservation, East  
               Bay Municipal Utility District, Heal the Bay,  
               Natural Resources Defense Council, Planning and  
               Conservation League, 
               Sierra Club, Planning and Conservation League,  
               City and County of San Francisco  

OPPOSITION  :    California Chamber of Commerce, Western States  
               Petroleum Association, Northern California  
               Marine Association, Santa Clara Valley  
               Manufacturing Group, California Environmental  
               Business Coalition, Bay Area Stormwater  
               Management Agencies Association, Bay Planning  
               Coalition, East Bay Dischargers Authority, San  
               Francisco Drydock, Inc., Tidewater Sand &  












               Gravel, Inc., California Manufacturers  
               Association, California Marine Parks & Harbors  
               Association, Inc.