BILL NUMBER: ABX1 10	CHAPTERED
	BILL TEXT

	CHAPTER  1
	FILED WITH SECRETARY OF STATE  MARCH 18, 2003
	APPROVED BY GOVERNOR  MARCH 18, 2003
	PASSED THE ASSEMBLY  FEBRUARY 4, 2003
	PASSED THE SENATE  FEBRUARY 3, 2003
	AMENDED IN SENATE  FEBRUARY 3, 2003
	AMENDED IN ASSEMBLY  JANUARY 28, 2003
	AMENDED IN ASSEMBLY  JANUARY 23, 2003

INTRODUCED BY   Assembly Member Oropeza

                        JANUARY 23, 2003

   An act to amend Section 39612 of, and to add Section 39613 to, the
Health and Safety Code, and to amend Section 13260 of, and to add
Sections 13260.2 and 13260.3 to, the Water Code, relating to
resources.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 10, Oropeza.  Resources.
   (1) Existing law designates air pollution control districts and
air quality management districts as having the primary responsibility
for the control of air pollution from all sources other than
vehicular sources.  Existing law authorizes each district to
establish a permit system that requires, except as specified, that
before any person builds, erects, alters, replaces, operates, or uses
any article, machine, equipment, or other contrivance that may cause
the issuance of air contaminants, the person obtain a permit from
the air pollution control officer of the district.  Existing law also
authorizes each district board to adopt, by regulation, a schedule
of annual fees for the evaluation, issuance, and renewal of those
permits.  Existing law authorizes the State Air Resources Board to
require districts to impose additional permit fees on nonvehicular
sources within their jurisdiction for the purposes of recovering
costs of additional state programs related to those sources.
Existing law requires that priority for expenditure of those permit
fees be given to specified activities relating to air pollution from
nonvehicular sources, and requires that those permit fees be
collected from nonvehicular sources that are authorized by district
permits to emit 500 tons or more per year of any nonattainment
pollutant or its precursors.  Existing law also limits the total
amount of funds collected by those permit fees, exclusive of district
administrative costs, to $3,000,000 in any fiscal year.
   This bill would authorize the state board to impose additional
permit fees directly on nonvehicular sources within a district's
jurisdiction.  The bill would also authorize the state board to
require a district to collect those fees, to establish a system for
direct collection of those fees by the state board, and to contract
with any other state agency for the collection of those fees.  The
bill would lower the threshold emission level for the imposition of
the permit fees on nonvehicular sources by requiring those fees to be
collected from nonvehicular sources that are authorized by the
district to emit 250 tons or more per year of any nonattainment
pollutant or its precursors.  The bill would increase the limit on
the total amount of funds that may be collected by the districts in
permit fees to $13,000,000 and would authorize the state board to
increase that limitation by an amount not to exceed the annual
percentage change in the California Consumer Price Index as compiled
and reported by the Department of Industrial Relations.  The
additional duties for districts under this bill would impose a
state-mandated local program.
   (2) Existing law requires the state board to adopt regulations to
achieve the maximum feasible reduction in volatile organic compounds
emitted by consumer products, as defined, if the state board
determines that the regulations are necessary to attain state and
federal air quality standards, and that the regulations are
commercially and technologically feasible and necessary.  Existing
law also requires the state board, on or before January 1 of each
year, to report to the Governor and the Legislature on the
expenditure of permit fees collected from nonvehicular sources.
   This bill would require the state board to impose a fee for any
consumer product and any architectural coating sold in the state, if
a manufacturer's total sales of consumer products or architectural
coatings will result in the emission in the state of 250 tons per
year or greater of volatile organic compounds.  The bill would
require revenues collected from the imposition of the fee to be used
to mitigate or reduce air pollution in the state created by consumer
products and architectural coatings, as determined by the state
board, and that the revenues be expended solely for those programs.
The bill would require that the fees be transmitted to the Controller
for deposit in the Air Pollution Control Fund, after deducting the
administrative cost of collecting the fees.  The bill would require
the state board to include a report on the expenditure of permit fees
collected from consumer products and architectural coatings in its
report to the Governor and the Legislature on the expenditure of the
permit fees collected from nonvehicular sources.
   (3) Existing law makes a violation of any rule, regulation,
permit, or order of the state board or of a district a misdemeanor.
By expanding the scope of a crime, this bill would impose a
state-mandated local program.
   (4) The Porter-Cologne Water Quality Control Act, with certain
exceptions, imposes on a person for whom waste discharge requirements
have been prescribed, an annual fee established by the State Water
Resources Control Board, not to exceed $20,000, but subject to an
annual adjustment, on the basis of total flow, volume, number of
animals, threat to water quality, and area involved.  Under the act,
the fees are deposited in the Waste Discharge Permit Fund, which is
expended, upon appropriation, for the purposes of carrying out the
act.  The act requires all or part of the fees to be refunded if
waste discharge requirements are waived.  The act makes a person
failing to pay a waste discharge fee, if requested to do so by a
California regional water quality control board, guilty of a
misdemeanor.
   This bill, instead, would require each person who is required to
file a waste discharge report to submit an annual fee according to a
fee schedule established by the state board.  The bill would require
the total amount of annual fees to equal that amount necessary to
recover costs incurred in connection with the issuance,
administration, reviewing, monitoring, and enforcement of waste
discharge requirements and waivers of waste discharge requirements.
The bill would require each person that discharges waste in a manner
regulated by the provisions of law that require filing of a waste
discharge report to pay an annual fee to the state board, and would
require the state board to establish a timetable by regulation, for
the payment of the annual fee.  The bill would require all or part of
the annual fees to be refunded if the state board or a regional
board determines that the discharge will not affect, or have the
potential to affect, the quality of the waters of the state.  The
bill would delete a provision that exempts certain facilities for
confined animal feeding and holding operations from the annual fee
requirement.  Because failure to pay the annual fee under certain
circumstances is a crime, this bill would impose a state-mandated
local program by expanding the scope of that crime.  The bill would
require the state board, in establishing the amount of the fee that
may be imposed on confined animal feeding and holding operations, to
consider factors relating to the size of the operation, the type and
amount of discharge, the pricing mechanism of the commodities
produced, the existing regulation of the operation, and whether the
operation participates in a quality assurance program.
   The bill would require the state board to establish a fee in an
amount sufficient to recover its costs in reviewing, processing, and
enforcing "no exposure" certifications issued to facilities that
apply for those certifications in accordance with a general
industrial stormwater permit.  The bill would require revenue
generated pursuant to this provision to be deposited in the Waste
Discharge Permit Fund.
   The bill would require the state board, on or before January 1 of
each year, to report to the Governor and the Legislature on the
expenditure of the annual fees on waste discharges.
   (5) The bill would provide that the Legislature shall appropriate,
on or before June 30, 2006, $58,104,000 from the General Fund to the
Department of Water Resources for allocation to certain local
entities to pay the state's share of certain nonfederal costs of
flood control projects that have been adopted and authorized.
  (6) 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.


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


  SECTION 1.  Section 39612 of the Health and Safety Code is amended
to read:
   39612.  (a) In addition to funds that may be appropriated by the
Legislature to the state board to carry out the additional
responsibilities and to undertake necessary technical studies
required by this chapter, the state board may impose additional
permit fees on nonvehicular sources within a district's jurisdiction.

   (b) (1) The state board may do any of the following with respect
to the collection of fees on nonvehicular sources imposed pursuant to
subdivision (a):
   (A) Upon obtaining the concurrence of the district, require a
district to collect the fees.
   (B) Establish a system in which the state board collects the fees
directly.
   (C) Contract with any other state agency to collect the fees.
   (2) If the state board establishes a system to collect fees
pursuant to subparagraph (B) of paragraph (1) or contracts with
another state agency to collect the fees pursuant to subparagraph (C)
of paragraph (1), each district shall provide any information
necessary to ensure the accurate and efficient collection of the fees
from nonvehicular sources.
   (c) The permit fees imposed pursuant to this section shall be
expended only for the purposes of recovering costs of additional
state programs related to nonvehicular sources.  Priority for
expenditure of permit fees collected pursuant to this section shall
be given to the following activities:
   (1) Identifying air quality-related indicators that may be used to
measure or estimate progress in the attainment of state ambient air
standards pursuant to subdivision (f) of Section 39607.
   (2) Establishing a uniform methodology for assessing population
exposure to air pollutants pursuant to subdivision (g) of Section
39607.
   (3) Updating the emission inventory pursuant to Section 39607.3,
including emissions that cause or contribute to the nonattainment of
federal ambient air standards.
   (4) Identifying, assessing, and establishing the mitigation
requirements for the effects of interbasin transport of air
pollutants pursuant to Section 39610.
   (5) Updating the state board's guidance to districts on ranking
control measures for stationary sources based upon the
cost-effectiveness of those measures in reducing air pollution.
   (d) The permit fees imposed pursuant to this section shall be
collected from nonvehicular sources that are authorized by district
permits to emit 250 tons or more per year of any nonattainment
pollutant or its precursors.
   (e) The permit fees collected pursuant to this section and Section
39613, after deducting the administrative costs of collecting the
fees, shall be transmitted to the Controller for deposit in the Air
Pollution Control Fund.
   (f) (1) The total amount of funds collected by fees imposed
pursuant to this section, exclusive of district administrative costs,
may not exceed thirteen million dollars ($13,000,000) in any fiscal
year, unless that limitation is increased pursuant to paragraph (2).

   (2) The state board may increase the limitation on the total
amount of funds collected as described in paragraph (1) by an amount
not to exceed the annual percentage change in the California Consumer
Price Index as compiled and reported by the Department of Industrial
Relations.
   (g) On or before January 1 of each year, the state board shall
report to the Governor and the Legislature on the expenditure of
permit fees collected pursuant to this section and Section 39613.
The report shall include a report on the status of implementation of
the programs prioritized for funding pursuant to subdivision (c).
  SEC. 2.  Section 39613 is added to the Health and Safety Code, to
read:
   39613.  The state board shall impose a fee for any consumer
product, as defined in Section 41712, sold in the state and any
architectural coating sold in the state if a manufacturer's total
sales of consumer products or architectural coatings will result in
the emission in the state of 250 tons per year or greater of volatile
organic compounds.  Revenues collected from the imposition of this
fee shall be used to mitigate or reduce air pollution in the state
created by consumer products and architectural coatings, as
determined by the state board, and shall be expended solely for those
programs.
  SEC. 3.  Section 13260 of the Water Code is amended to read:
   13260.  (a) All of the following persons shall file with the
appropriate regional board a report of the discharge, containing the
information which may be required by the regional board:
   (1) Any person discharging waste, or proposing to discharge waste,
within any region that could affect the quality of the waters of the
state, other than into a community sewer system.
   (2) Any person who is a citizen, domiciliary, or political agency
or entity of this state discharging waste, or proposing to discharge
waste, outside the boundaries of the state in a manner that could
affect the quality of the waters of the state within any region.
   (3) Any person operating, or proposing to construct, an injection
well.
   (b) No report of waste discharge need be filed pursuant to
subdivision (a) if the requirement is waived pursuant to Section
13269.
   (c) Every person subject to subdivision (a) shall file with the
appropriate regional board a report of waste discharge relative to
any material change or proposed change in the character, location, or
volume of the discharge.
   (d) (1) (A) Each person who is subject to subdivision (a) or (c)
shall submit an annual fee according to a fee schedule established by
the state board.
   (B) The total amount of annual fees collected pursuant to this
section shall equal that amount necessary to recover costs incurred
in connection with the issuance, administration, reviewing,
monitoring, and enforcement of waste discharge requirements and
waivers of waste discharge requirements.
   (C) Recoverable costs may include, but are not limited to, costs
incurred in reviewing waste discharge reports, prescribing terms of
waste discharge requirements and monitoring requirements, enforcing
and evaluating compliance with waste discharge requirements and
waiver requirements, conducting surface water and groundwater
monitoring and modeling, analyzing laboratory samples, and reviewing
documents prepared for the purpose of regulating the discharge of
waste, and administrative costs incurred in connection with carrying
out these actions.
   (D) In establishing the amount of a fee that may be imposed on any
confined animal feeding and holding operation pursuant to this
section, including, but not limited to, any dairy farm, the state
board shall consider all of the following factors:
   (i) The size of the operation.
   (ii) Whether the operation has been issued a permit to operate
pursuant to Section 1342 of Title 33 of the United States Code.
   (iii) Any applicable waste discharge requirement or conditional
waiver of a waste discharge requirement.
   (iv) The type and amount of discharge from the operation.
   (v) The pricing mechanism of the commodity produced.
   (vi) Any compliance costs borne by the operation pursuant to state
and federal water quality regulations.
   (vii) Whether the operation participates in a quality assurance
program certified by a regional water quality control board, the
state board, or a federal water quality control agency.
   (2) (A) Subject to subparagraph (B), any fees collected pursuant
to this section shall be deposited in the Waste Discharge Permit
Fund, which is hereby created.  The money in the fund is available
for expenditure by the state board, upon appropriation by the
Legislature, solely for the purposes of carrying out this division.
   (B) (i) Notwithstanding subparagraph (A), the fees collected
pursuant to this section from stormwater dischargers that are subject
to a general industrial or construction stormwater permit under the
national pollutant discharge elimination system (NPDES) shall be
separately accounted for in the Waste Discharge Permit Fund.
   (ii) Not less than 50 percent of the money in the Waste Discharge
Permit Fund that is separately accounted for pursuant to clause (i)
is available, upon appropriation by the Legislature, for expenditure
by the regional board with jurisdiction over the permitted industry
or construction site that generated the fee to carry out stormwater
programs in the region.
   (iii) Each regional board that receives money pursuant to clause
(ii) shall spend not less than 50 percent of that money solely on
stormwater inspection and regulatory compliance issues associated
with industrial and construction stormwater programs.
   (3) Any person who would be required to pay the annual fee
prescribed by paragraph (1) for waste discharge requirements
applicable to discharges of solid waste, as defined in Section 40191
of the Public Resources Code, at a waste management unit that is also
regulated under Division 30 (commencing with Section 40000) of the
Public Resources Code, shall be entitled to a waiver of the annual
fee for the discharge of solid waste at the waste management unit
imposed by paragraph (1) upon verification by the state board of
payment of the fee imposed by Section 48000 of the Public Resources
Code, and provided that the fee established pursuant to Section 48000
of the Public Resources Code generates revenues sufficient to fund
the programs specified in Section 48004 of the Public Resources Code
and the amount appropriated by the Legislature for those purposes is
not reduced.
   (e) Each person discharges waste in a manner regulated by this
section shall pay an annual fee to the state board.  The state board
shall establish, by regulation, a timetable for the payment of the
annual fee.  If the state board or a regional board determines that
the discharge will not affect, or have the potential to affect, the
quality of the waters of the state, all or part of the annual fee
shall be refunded.
   (f) (1) The state board shall adopt, by emergency regulations, a
schedule of fees authorized under subdivision (d).  The total revenue
collected each year through annual fees shall be set at an amount
equal to the revenue levels set forth in the Budget Act for this
activity.  The state board shall automatically adjust the annual fees
each fiscal year to conform with the revenue levels set forth in the
Budget Act for this activity.  If the state board determines that
the revenue collected during the preceding year was greater than, or
less than, the revenue levels set forth in the Budget Act, the state
board may further adjust the annual fees to compensate for the over
and under collection of revenue.
   (2) The emergency regulations adopted pursuant to this
subdivision, any amendment thereto, or subsequent adjustments to the
annual fees, shall be adopted by the state board in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.  The adoption of these regulations
is an emergency and shall be considered by the Office of
Administrative Law as necessary for the immediate preservation of the
public peace, health, safety, and general welfare.  Notwithstanding
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, any emergency regulations adopted
by the state board, or adjustments to the annual fees made by the
state board pursuant to this section, shall not be subject to review
by the Office of Administrative Law and shall remain in effect until
revised by the state board.
   (g) The state board shall adopt regulations setting forth
reasonable time limits within which the regional board shall
determine the adequacy of a report of waste discharge submitted under
this section.
   (h) Each report submitted under this section shall be sworn to, or
submitted under penalty of perjury.
   (i) The regulations adopted by the state board pursuant to
subdivision (f) shall include a provision that annual fees shall not
be imposed on those who pay fees under the national pollutant
discharge elimination system until the time when those fees are again
due, at which time the fees shall become due on an annual basis.
   (j) Any person operating or proposing to construct an oil, gas, or
geothermal injection well subject to paragraph (3) of subdivision
(a), shall not be required to pay a fee pursuant to subdivision (d),
if the injection well is regulated by the Division of Oil and Gas of
the Department of Conservation, in lieu of the appropriate California
regional water quality control board, pursuant to the memorandum of
understanding, entered into between the state board and the
Department of Conservation on May 19, 1988.  This subdivision shall
remain operative until the memorandum of understanding is revoked by
the state board or the Department of Conservation.
   (k) In addition to the report required by subdivision (a), before
any person discharges mining waste, the person shall first submit
both of the following to the regional board:
   (1) A report on the physical and chemical characteristics of the
waste that could affect its potential to cause pollution or
contamination.  The report shall include the results of all tests
required by regulations adopted by the board, any test adopted by the
Department of Toxic Substances Control pursuant to Section 25141 of
the Health and Safety Code for extractable, persistent, and
bioaccumulative toxic substances in a waste or other material, and
any other tests that the state board or regional board may require,
including, but not limited to, tests needed to determine the
acid-generating potential of the mining waste or the extent to which
hazardous substances may persist in the waste after disposal.
   (2) A report that evaluates the potential of the discharge of the
mining waste to produce, over the long term, acid mine drainage, the
discharge or leaching of heavy metals, or the release of other
hazardous substances.
   (l) Except upon the written request of the regional board, a
report of waste discharge need not be filed pursuant to subdivision
(a) or (c) by a user of recycled water that is being supplied by a
supplier or distributor of recycled water for whom a master recycling
permit has been issued pursuant to Section 13523.1.
  SEC. 4.  Section 13260.2 is added to the Water Code, to read:
   13260.2.  (a) The state board shall establish a fee in an amount
sufficient to recover its costs in reviewing, processing, and
enforcing "no exposure" certifications issued to facilities that
apply for those certifications in accordance with a general
industrial stormwater permit.
   (b) Revenue generated pursuant to this section shall be deposited
in the Waste Discharge Permit Fund.
  SEC. 5.  Section 13260.3 is added to the Water Code, to read:
   13260.3.  On or before January 1 of each year, the state board
shall report to the Governor and the Legislature on the expenditure
of annual fees collected pursuant to Section 13260.
  SEC. 6.  (a) The Legislature hereby finds and declares all of the
following:
   (1) Adjustments made to the Budget Act of 2002 in the 2003-04
First Extraordinary Session reverted fifty-eight million one hundred
four thousand dollars ($58,104,000) to the General Fund.
   (2) These funds were originally appropriated by Section 8 of
Chapter 326 of the Statutes of 1998 to pay for the state's share of
the nonfederal costs of flood control projects that have been adopted
and authorized in accordance with one or more of the following
provisions of law:
   (A) State Water Resources Law of 1945 (Ch. 1 (commencing with Sec.
  12570) and Ch. 2 (commencing with Sec. 12639), Pt. 6, Div. 6, Wat.
C.).
   (B) Flood Control Law of 1946 (Ch. 3 (commencing with Sec. 12800),
Pt.  6, Div. 6, Wat. C.).
   (C) California Watershed Protection and Flood Prevention Law (Ch.
4 (commencing with Sec. 12850), Pt. 6, Div. 6, Wat. C.).
   (b) The Legislature, on or before June 30, 2006, shall appropriate
fifty-eight million one hundred four thousand dollars ($58,104,000)
from the General Fund to the Department of Water Resources for
allocation, in accordance with Section 8 of Chapter 326 of the
Statutes of 1998, to the local entities with whom the state has
agreements to pay the state's share of the nonfederal costs of flood
control projects.
  SEC. 7.  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.