BILL NUMBER: SB 1004
	AMENDED	BILL TEXT
	AMENDED IN SENATE  MAY 1, 2003
	AMENDED IN SENATE  APRIL 7, 2003

INTRODUCED BY Senators Nell Soto (D-Pomona) and Gloria Romero (D-Los Angeles)
    (Coauthor:  Senator Machado) 
   (Coauthors: Assembly Members Calderon and Firebaugh)

                        FEBRUARY 21, 2003

   An act to add Chapter 8.5 (commencing with Section 13610) to
Division 7 of the Water Code, relating to perchlorate.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1004, as amended, Soto.  Perchlorate.
   (1) Existing law, the Porter-Cologne Water Quality Control Act,
with certain exceptions, requires a person who causes or permits any
oil or petroleum product to be discharged in any waters of the state,
or where it may be so discharged, to immediately notify the Office
of Emergency Services.  The act makes any person who fails to provide
the notice guilty of a misdemeanor that is punishable by a fine of
at least $500, and not more than $5,000, for each day of failure to
notify.
   The act requires each California regional water quality control
board, every 3 months, to publish and distribute to all public water
system operators within the region a list of discharges of MTBE that
occurred during the prior 3-month period and a list of locations
where MTBE was detected in the groundwater within the region.
   This bill, with certain exceptions, would require a person who
causes or permits perchlorate to be discharged in any waters of the
state, or where it may be so discharged, to immediately notify the
State Water Resources Control Board.  The bill would make a person
who fails to provide that notice guilty of a misdemeanor that is
punishable by a fine of not less than $500, or more than $5,000, for
each day of failure to notify.  Because the failure to notify in
accordance with these provisions is a crime, this bill would impose a
state-mandated local program by creating a new crime.
   The bill, on or before January 1, 2005, would require an owner or
operator of a storage facility that has stored in any calendar year
since January 1, 1950, over  375   500 
pounds of perchlorate to submit to the state board certain
information relating to that storage.   The bill would
require the state board, on or before June 1, 2004, to commence a
field-based research program to determine the probability and
environmental significance of discharges of perchlorate from past and
present perchlorate storage facilities.  The bill would require the
state board to adopt regulations relating to the operation of
perchlorate storage facilities, as defined.   The bill would
require each regional board to publish certain information relating
to the storage of perchlorate and the discharge of perchlorate.
   The bill would require every owner of a perchlorate storage
facility to pay  a   an annual  fee of 6
cents for each pound of perchlorate stored in the facility 
during the prior year  .  The bill would  require
  authorize  the State Board of Equalization to
collect the fee pursuant to the  Underground Storage Tank
Maintenance Fee   Fee Collection Procedures  Law.
The bill would impose a state-mandated local program by requiring
local entities to provide services in performing duties pursuant to
that law in connection with the collection of the fee.  Because a
person who commits certain acts under that law is subject to a
felony, the bill would impose a state-mandated local program by
changing the definition of a crime.
   The bill would subject the owner or operator of a storage facility
that is required to submit information relating to perchlorate to
the state board or to pay the facility fee to an administrative
penalty of not less than $500, or more than $5,000, for each day of
violation.
   The bill would require the funds generated by the imposition of
the fee, and the administrative penalties described above, to be
deposited in the Perchlorate Pollution Prevention Fund, which the
bill would establish in the State Treasury.  The bill would authorize
the state board to expend the money in the fund, upon appropriation
by the Legislature, to carry out the purposes of the bill  ,
  and to pay for administrative costs  ,
and to carry out a loan program to assist private well owners and
public water suppliers to pay for the cost of acquiring water to
replace water contaminated by perchlorate.  The bill would require
the state board to report every 3 months to the Legislature regarding
the implementation of these provisions  .
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 8.5 (commencing with Section 13610) is added to
Division 7 of the Water Code, to read:

      CHAPTER 8.5.  PERCHLORATE

   13610.  Unless the context otherwise requires, the definitions set
forth in this section govern the construction of this chapter:
   (a) "Fund" means the Perchlorate Pollution Prevention Fund
established by Section 13614.5.
   (b) Subject to Section 13610.5, "perchlorate storage facility"
means a facility that stores over  375   500
 pounds of perchlorate in any calendar year.
   13610.5.  This chapter does not apply to a facility that stores
perchlorate for retail purposes or for law enforcement purposes.
   13611.  (a) Except as provided by subdivision (b), any person who,
without regard to intent or negligence, causes or permits
perchlorate to be discharged in or on any waters of the state, or
discharged or deposited where it is, or probably will be, discharged
in or on any waters of the state, shall, as soon as (1) that person
has knowledge of the discharge, (2) notification is possible, and (3)
notification can be provided without substantially impeding cleanup
or other emergency measures, immediately notify the state board.
   (b) The notification required by this section does not apply to a
discharge in compliance with this division.
   (c) Any person who fails to provide the notice required by
subdivision (a) is guilty of a misdemeanor and shall be punished by a
fine of not less than five hundred dollars ($500), or more than five
thousand dollars ($5,000), for each day of failure to notify.
   (d) Any penalties collected pursuant to subdivision (c) shall be
deposited in the fund.
   13611.5.  On or before January 1, 2005, an owner or operator of a
storage facility that has stored in any calendar year since January
1, 1950, over  375   500  pounds of
perchlorate shall submit to the state board  , to the extent
feasible,  all of the following information:
   (a) The volume of perchlorate stored each year.
   (b) The method of storage.
   (c) Copies of documents relating to any monitoring undertaken for
potential leaks into the water bodies of the state.  
   13612.  (a) On or before June 1, 2004, the state board shall
commence a field-based research program to determine the probability
and environmental significance of discharges of perchlorate from past
and present perchlorate storage facilities.
   (b) For the purposes of carrying out subdivision (a), the state
board shall do all of the following:
   (1) Seek to identify the source and cause of perchlorate
discharges and any past and present deficiencies with regard to
storage practices.
   (2) Include peer view.
   (3) Complete the research program on or before June 1, 2007.
   (4) Use the results of the research program to recommend
appropriate changes in design, construction, monitoring, operation,
and maintenance requirements for perchlorate storage systems.
   (5) Make use of information supplied pursuant to Section 13611.5.

   (6) Make the results of the field-based research program described
in subdivision (a) available to the public.
   13612.5.  On or before June 1, 2005, the state board shall adopt
regulations to do both of the following:
   (a) Require perchlorate storage facilities to meet minimum
industry-established training standards and to be operated in a
manner consistent with industry-established best management
practices.
   (b) Implement an outreach effort to educate owners and operators
of perchlorate storage facilities on the importance of the
regulations adopted pursuant to subdivision (a).
   13613.  
   13612.   (a) Each regional board shall publish and make
available to the public on or before June 1, 2005, a list of past and
present perchlorate storage facilities within the region.
   (b) Each regional board shall publish annually, and make available
to all public water system operators within the region, a list of
discharges of perchlorate occurring during the previous 12 months and
a list of locations where perchlorate was detected in the
groundwater within the region.  
   13613.5.   
   (c) On or before March 1, 2005, the state board shall provide the
State Board of Equalization with a list of storage facilities in
California.
   13613.   (a) The owner or operator of a storage facility
subject to Section 13611.5 or 13614 shall be liable for an
administrative penalty of not less than five hundred dollars ($500),
or more than five thousand dollars ($5,000), for each day of
violation.
   (b) In determining the administrative penalties imposed pursuant
to this section, the state board or a regional board shall consider
all relevant circumstances, including, but not limited to, the extent
of harm or potential harm caused by the violation, the nature of the
violation, the period of time over which the violation occurred, the
frequency of past violations, and the corrective action, if any,
taken by the storage facility.  The state board and regional board
shall adopt procedures for the imposition of administrative penalties
pursuant to this action, including procedures for notice and
hearings.
   (c) Any administrative penalties collected pursuant to subdivision
(a) shall be deposited in the fund.
   13614.  (a) Every owner of a perchlorate storage facility shall
pay a fee of six cents ($0.06) for each pound of perchlorate stored
 in the facility.  The fee imposed pursuant to this section
shall be paid to the State Board of Equalization pursuant to Part 26
(commencing with Section 50101) of Division 2 of the Revenue and
Taxation Code.
   (b) The State Board of Equalization may adopt regulations to carry
out this section, including, but not limited to, provisions
governing collections, reporting, refunds, and appeals. 
 in the storage facility during the prior calendar year.
   (b) The State Board of Equalization may collect the fee imposed by
this section pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code). 
   (c) The State Board of Equalization shall collect the fee imposed
by this section commencing on  April 1, 2004  
July 1, 2005, and every July 1 thereafter  .
   (d) The State Board of Equalization shall deposit all fees
collected pursuant to this section in the fund.
   13614.5.  (a) The Perchlorate Pollution Prevention Fund is hereby
established in the State Treasury.  From time to time, the state
board may modify existing accounts or establish accounts in the fund
that the state board determines are appropriate or necessary for
proper administration of this chapter.
   (b) All of the following funds shall be deposited in the fund:
   (1) Money appropriated by the Legislature for deposit in the fund.

   (2) Any interest earned upon the money deposited in the fund.
   (3) Revenue generated pursuant to Section 13614  and
subdivision (e) of Section 13615.   . 
   (4) Any administrative penalties collected by the state board or
regional board pursuant to this chapter.
   (c) The state board may expend the money in the fund, upon
appropriation by the Legislature  , for all of the following
purposes:
   (1) To   to  carry out the purposes of this
chapter and to pay for the administrative costs of implementing this
chapter.  
   (2) To carry out a loan program pursuant to Section 13615.
   13615.  (a) The state board shall carry out a loan program to
assist private well owners and public water suppliers to pay for the
cost of acquiring water that meets applicable state and federal
standards to replace water contaminated by perchlorate.
   (b) The minimum amount that the state board may loan an applicant
is ten thousand dollars ($10,000), and the maximum amount is seven
hundred fifty thousand dollars ($750,000).
   (c) The term of the loan shall be for a maximum of 20 years if
secured by real property, and for 10 years if not secured by real
property.  The interest rate for loans shall be set at the rate
earned by the Surplus Money Investment Fund at the time of the loan
commitment.
   (d) Loan funds may be used to finance up to 100 percent of the
costs necessary to provide replacement water that meets applicable
state and federal standards for drinking water.
   (e) The agency may charge a loan fee to loan applicants of up to 2
percent of the requested loan amount.  The loan fee shall be
deposited in the fund.
   13615.5.  The state board shall report at least once every three
months with regard to the implementation of this chapter to the
Senate Committee on Environmental Quality, the Senate Committee on
Agriculture and Water, the Assembly Committee on Environmental Safety
and Toxic Materials, and the Assembly Committee on Water, Parks and
Wildlife. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs  that may be incurred by a local agency or school
district because in that regard this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
   However, notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
other costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
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