ITEM : 11

SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE, EXECUTE, AND AMEND, IF NECESSARY, A $400,000 GRANT FROM THE U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION 9, FOR THE SANTA ANA REGION TO PROVIDE REGULATORY OVERSIGHT OF CLEAN UP OF A PORTION OF THE BOLSA CHICA WETLANDS, ORANGE COUNTY

DISCUSSION: The Bolsa Chica lowland wetlands in Orange Co. have been degraded and polluted by more than sixty years of petroleum and natural gas production. Following extensive scientific investigations of existing site conditons and lengthy negotiations between the land owner, the oil field operators, and a coalition of local, regional, state and federal agencies, in February 1997 ownership of approximately 880 acres of the wetlands was transferred to the State Lands Commission. These wetlands are to be restored as environmental mitigation for loss of wetlands by planned expansion of the harbors of Los Angeles and Long Beach. Before restoration can begin, the pollution present in the Bolsa Chica wetlands must be accurately determined and reduced to acceptable levels.

In December 1996, Santa Ana Regional Water Quality Control Board staff was contacted by representatives of USEPA, seeking Regional Board staff's participation in the restoration of the Bolsa Chica wetlands. USEPA staff requested that the Santa Ana RWQCB accept the role of clean up oversight lead agency, emphasizing that all parties to the proposed restoration believed that the Regional Board, not being a party to either the land transfer or site restoration, would carry out this responsibility in a fair and objective manner. At its January 4, 1997 meeting, the Regional Board was briefed on recent developments concerning Bolsa Chica, and of USEPA's proposal to provide a grant for use by the Santa Ana Regional Board to fund staff positions necessary to oversee the cleanup. State Water Resources Control Board executive staff were consulted concerning this matter, as the proposal developed.

During the week of February 10, 1997, the "Inter-Agency Agreement to Establish Roles and Responsibilites for Oversight of the Cleanup of Bolsa Chica Lowlands," which outlines the Regional Board's role as the lead agency overseeing the Bolsa Chica clean up, was signed by the Resources Agency of the State of California, the California Department of Fish and Game, the California State Lands Commission, USEPA, the National Oceanic and Atmospheric Administration, the United States Fish and Wildlife Service, and the Santa Ana RWQCB. At its March 7, 1997 meeting, the Santa Ana Regional Board adopted Resolution No. 97-19, affirming participation in the Inter-Agency Agreement.

USEPA has encumbered $400,000, from a settlement arising from the Exxon Valdez oil spill, to support a grant to the Santa Ana Regional Board to fund oversight of the Bolsa Chica clean up for a period of 3 1/2 years, from January 1998 through June 2001. This grant project has been titled, "Reduction of Pollution of Bolsa Chica Wetlands, Orange County, California, through Clean Up Oversight by California Regional Water Quality Control Board, Santa Ana Region (lead agency)." Work has already begun on the environmental risk assessment on which the clean up will be based, and the Regional Board is anxious to begin its participation in this important project. State Water Resources Control Board (SWRCB) authorization is required to accept this grant.

POLICY Should the SWRCB authorize the Executive Director, or his designee, to execute a ISSUE: Federal grant to support the project entitled, "Reduction of Pollution of Bolsa Chica Wetlands, Orange County, California, through Clean Up Oversight by California Regional Water Quality Control Board, Santa Ana Region (lead agency)?"

FISCAL Acceptance of the grant will result in $400,000 of Federal grant funding to support IMPACT: the Santa Ana Regional Water Quality Control Board's oversight of the clean up of the Bolsa Chica wetlands. The funds will be used to support 0.55 personnel years during the remainder of FY97-98, and 1.1 personnel years in each of FY 98-99, FY99-00, and FY00-01. The Regional Board expects to fulfill its participation in the Inter-Agency Agreement through the use of the grant. Note: There is currently no budget authority established for this grant. The Regional Board will work with the Budget Office to establish the necessary authority to support this grant.

REGIONAL BOARD IMPACT: Yes. Santa Ana RWQCB

STAFF RECOMMENDATION: The SWRCB should authorize the Executive Director to negotiate and execute the proposed grant.

12/22/97 DRAFT

Whereas:

1. USEPA has requested that the Santa Ana RWQCB participate in the "Inter-Agency Agreement to Establish Roles and Responsibilites for Oversight of the Cleanup of Bolsa Chica Lowlands," as the lead agency overseeing the clean up of the Bolsa Chica wetlands. The Inter-Agency Agreement provides that USEPA will offer the Santa Ana Region Board a grant to support Regional Board involvement in the cleanup through June 30, 2001.

2. The Santa Ana RWQCB, by Resolution No. 97-19, has agreed to participate in the Inter-Agency Agreement, and USEPA has offered a $400,000 grant to support the Regional Board's involvement in the clean up.

3. The Santa Ana RWQCB's clean up oversight of the Bolsa Chica wetlands is necessary to expedite the timely clean up and restoration of the wetlands.

4. Acceptance of the grant will allow the Santa Ana RWQCB to fulfill its commitment to participate in the Bolsa Chica clean up, as outlined in the Inter-Agency Agreement.

THEREFORE BE IT RESOLVED:

The SWRCB:

Authorizes the Executive Director, or his designee, to execute a $400,000 Federal grant offered to support the project entitled, "Reduction of Pollution of Bolsa Chica Wetlands, Orange County, California, through Clean Up Oversight by California Regional Water Quality Control Board, Santa Ana Region (lead agency)."

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on January 22, 1998.

_________________________________________

Maureen Marche'

Administrative Assistant to the Board