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ITEM 6G

Staff Report

Subject: Support Letter for SB 385 (Hueso) regarding Chromium-6

Contact: Katie Barrows, Director of Environmental Resources ([email protected])

RECOMMENDATION: Authorize the Executive Committee Chair to sign the attached letter of support for SB 385 introduced by Senator Hueso () which provides for a compliance period for implementation of Chromium-6 requirements.

BACKGROUND: Senator (San Diego) introduced SB 385 which would provide for a compliance plan to be developed by a local water district to avoid violating the new standards for Chromium-6 during the time they are implementing the new standards. The standards would not be changed and compliance would not be delayed. Chromium-6 is a naturally occurring element that is present at low levels in some areas of the Coachella Valley. The full text of the proposed legislation is available at: http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0351- 400/sb_385_bill_20150224_introduced.html. A fact sheet is attached for your information. The proposed legislation states:

“This bill would authorize, until January 1, 2020, the state board, at the request of a public water system, to grant a variance from the primary drinking water standard for hexavalent chromium if the public water system prepares and submits a compliance plan, the state board approves the compliance plan, the public water system provides specified notice requirements regarding the compliance plan to its customers, and the public water system sends annual reports to the state board that updates the status of the approved compliance plan. The bill would require the compliance plan to describe the actions the public water system is taking and will take to comply with the primary drinking water standard for hexavalent chromium by the earliest feasible date, include the public water system's best estimate of the funding required for compliance, and the actions the public water system will take to secure funding.”

The staff recommendation is to support a letter authorized by the CVAG Executive Committee. In December 2014, the CVAG Executive Committee approved a general letter regarding Chromium 6 standards, prior to introduction of SB 385. The attached letter was modified from a sample letter provided by the Coachella Valley Water District.

The Coachella Valley Water District is holding a Chromium-6 tour to update stakeholders on water quality issues on Friday, April 24 from 9 am to 12 noon; check in is at 8:45 am at CVWD’s Palm Desert office, Steve Robbins Administration Building. The tour will include a visit to existing treatment sites and some of the areas where new facilities may be built. To participate, please RSVP to Barbara Thompson at (760) 398-2651 ext. 3527 by April 15.

FISCAL ANALYSIS: No impact.

ATTACHMENTS: 1. Draft Support Letter for SB 385 2. Fact sheet about SB 385

CVAG Letterhead

April 27, 2015

Senator State Capitol, Room 3086 Sacramento, CA 95814

Dear Senator Wieckowski,

I am writing on behalf of the Coachella Valley Association of Governments to express support for SB 385, which creates a fair and reasonable way for public water systems to comply with the new primary drinking water standard for chromium-6. Chromium-6 occurs naturally in the Coachella Valley’s groundwater. About one-third of the valley’s active public water system wells are expected to have chromium-6 levels above the new standard.

The Coachella Valley Association of Governments is aware that building facilities to treat Coachella Valley’s drinking water will cost hundreds of millions of dollars, with annual operation and maintenance costs in the tens of millions. This would be one of the costliest public works project in the history of our valley and will require significant construction. The new standard was announced in April of 2014 and went into effect less than three months later. Time is needed to construct the treatment facilities necessary for compliance.

We strongly support clean, safe drinking water for the communities of the Coachella Valley. SB 385 provides a fair and appropriate way for water agencies to move forward without the burdens that come with non-compliance, keeping costs as low as possible. Safe drinking water is important to the member agencies of the Coachella Valley Association of Governments and our community. SB 385 doesn’t impact the timeline for reducing chromium-6 levels in drinking water or change the standard in any way. Our community will benefit from the passage of SB 385. For all these reasons, we encourage your support of SB 385.

Sincerely,

Jan Harnik CVAG Chair cc: Senator Ben Hueso (40th District; Chula Vista/El Centro) Aracely Campa, Senator Hueso, legislative director Senator Anthony Cannella (12th District; Ceres/Merced/Salinas) Senator Jeff Stone (28th District; Indio, Murrieta) Assembly Member Chad Mayes (42nd District; Palm Desert) Assembly Member Eduardo Garcia (56th District; Indio/El Centro) Assembly Member Luis Alejo (30th District; Salinas/Hollister/Watsonville) Senator , vice chair (Redding) Senator Patricia C. Bates (San Juan Capistrano/Carlsbad) Senator (San Mateo) Senator Hannah-Beth Jackson (Santa Barbara/Oxnard) Senator Mark Leno () Senator Fran Pavley (Calabasas) Association of Water Agencies (ACWA) George Dunn SB 385: Chromium-6 Compliance Period Fact Sheet

COMPLYING WITH A NEW REGULATION California passed a new drinking water standard for chromium-6 in April of 2014. This standard went into effect less than three months later, requiring CVWD and other districts across the state to begin reporting chromium-6 monitoring data to the state by January 1 of 2015. SB 385 allows a public water system to apply for a variance so that it is not considered in violation of the new standard as it works to comply. The bill would help districts keep costs as low as possible, but it would not change the standard in any way or allow agencies to delay compliance.

CVWD needs time to design and build the facilities needed to comply with the new standard. The district is working to find the best and most cost effective option to comply. CVWD is already designing treatment facilities at 17 well sites and the Board of Directors will soon determine how to treat the 14 remaining wells.

SB 385 allows a public water system to apply for a variance so that it is not considered in violation of the new standard as it works to comply.

SB 385 Authored by California State Senator Ben Hueso (D - San Diego) and co-authored by Assemblymembers Luis Alejo (D - Salinas) and Eduardo Garcia (D - Coachella), and Senators Anthony Cannella (R - Ceres) and Jeff Stone (R - Murrieta).

DOES: DOES NOT: + Allow for district to apply for a variance of up to 5 years, - Change the drinking water standard so long as progress is being made - Delay compliance efforts + Require approval from State Water Resources Control Board - Exempt agencies from compliance

+ Make systems prepare and submit a compliance plan - Apply to any other drinking water standards

+ Require systems to demonstrate progress towards compliance

+ Ensure that customers are kept up to date

Coachella Valley Water District • (760) 398-2651 • www.cvwd.org/cr6 FREQUENTLY ASKED QUESTIONS

What is the district doing to comply with the new chromium-6 standard? The district is currently in the design phase for the first 17 wells to be treated. The Board of Directors will soon determine how the remaining 14 wells that require treatment will be handled.

How will SB 385 help CVWD? SB 385 will allow the district to apply for a variance that would enable the district to keep moving forward with compliance efforts without being deemed to be in violation of the standard. This would help the district keep compliance costs as low as possible.

Why does CVWD need additional time to comply? Unlike the Federal Safe Drinking Water Act, California did not allow for a compliance period to design and build the facilities needed to comply. The new standard was announced in April of 2014, went into effect in July of 2014 and required monitoring data by January 1, 2015.

Is CVWD behind on compliance? No. The district began testing and studying treatment options even before the new standard was announced. Developing a compliance plan, and designing and building facilities takes time. The district has dedicated significant time and resources to comply as soon as possible, while making sure it is done well and cost effectively.

How much will it cost the district to comply? The cost to build the facilities needed to comply now range from $200 to $325 million. The cost to operate and maintain these facilities is expected to range from $12 to $16 million per year. The district is soliciting grants and looking for solutions to keep cost as low as possible.

How will the new standard impact water bills? Complying with the new chromium-6 standard will likely increase bills by about $30 - $50 per month. Rate increases will likely be phased in incrementally, and the public will have an opportunity to give input before the Board of Directors considers any increase.

For more information about how CVWD is planning to comply with the new chromium-6 standard, visit www.cvwd.org/cr6.

Coachella Valley Water District • (760) 398-2651 • www.cvwd.org/cr6 Updated March 2015