January 30, 2002

 

 

 

Catherine M. Rojko, Trial Attorney

 Environ. and Natural Res. Division

United States Department of Justice

P.O. Box 7611

Washington, D.C. 20044

 

            Re:      Aerojet/Modifications to Partial Consent Decree

                        DOJ Ref. No. 90-7-1-74

 

Dear Ms. Rojko:

 

The County of Sacramento Department of Water Resources (“CSDWR”), submits its comments to the Department of Justice pertaining to the proposed modification to the Partial Consent Decree (PCD) in the matter of United States v. Aerojet General Corporation, et al., CIVS 86-0063 EJG and CIVS 86-0064 EFG.  These comments are intended to supplement the comments CSDWR submitted during the public comment period.  While we understand that the public comment period may be closed, these comments are submitted in response to the staff report of the Central Valley Regional Water Quality Control Board (“RWQCB”).  The comments and conclusions on the staff report varied significantly from the Request for Public Comments.  CSDWR urges the agencies to consider the comments and reexamine the issues involved in this very important matter.  The CSDWR believes the modified PCD, as proposed, fails to provide any assurance of an adequate supply of potable water to serve existing development as well as the carve-out lands. The modified PCD also fails to assess the impact of carve-out land use on area water supply and has not been approved in compliance with CEQA.  As a result, the PCD modification, as proposed, is inappropriate, improper and inadequate.  The Department is requested to withdraw or withhold its consent to the proposed modified PCD until it provides assurances of an adequate supply of potable water to serve existing requirements, assesses the impact of the carve-out land use on area water supply and complies with CEQA.

 

Background

 

         The CSDWR is charged with the responsibility of obtaining and providing potable water to the residents and businesses located in its Zone 40 Service Area. The Zone 40 Service Area includes much of the southeastern portion of Sacramento County east of Highway 99 and South of Highway 50.  The area includes the Sunrise Corridor Service Area, the Mather Main Base and Mather Housing areas, and the Sunrise-Douglas area, currently slated for development.  There are currently over 24,000 active water services in Zone 40. 

 

Groundwater contamination resulting from perchlorate and NDMA plumes emanating from the Aerojet Superfund site, including the Western Groundwater Operable Unit, and the Inactive Rancho Cordova Test Sites (IRCTS) formerly owned by Aerojet and now owned by Boeing (collectively referred to as the “Aerojet/IRCTS site”) has resulted in the loss of thirteen public drinking water wells in Sacramento County.  Of the ten water supply wells originally operated by the County in the Sunrise/Mather area, only the four Mather housing water supply wells remain as viable sources of water supply for this entire area. The County’s two water supply wells in the Sunrise Corridor Service Area and three of the four wells at Mather Main Base have been shut down due to perchlorate contamination. The remaining Mather Main Base well is used only for fire protection.    

 

In their opposition to Aerojet’s Motion, the United States and the State of California initially objected vigorously to Aerojet’s motion to modify the PCD to allow it to carve out approximately 3000 acres of property from the Superfund site (“Aerojet’s Motion” or “Carve-Out Motion”).  In opposition to Aerojet’s motion, the United States and the State of California made the following representations and arguments to the Court:

 

-  Given the number of drinking water wells close to the migrating contaminant plume, some wells will likely become contaminated before the lengthy remedial action is complete.  The options for providing alternate water supplies in the area are few and the Record of Decision should provide a contingency for an alternative water supply to quickly replace affected drinking water wells.  (Opposition of the United States and the State of California to the Motion of Aerojet-General Corporation and Cordova Chemical Company to Modify the Consent Decree as to Carve-Out Lands (“United States Opposition”), p.17, lines 1-6.) 

 

-  In the event certain further wells are shut down, there will not be adequate water supplies for that area. The measures taken by Aerojet to supply contingency or alternative water supplies have been short sighted and fall woefully short of coming to grips with the urgency that its contamination has wrought. (United States Opposition, p. 17, lines 9-21 citing Declaration of Darrell Eck, SCWRD Senior Engineer filed in support of the United States Opposition). 

 

-  Aerojet has failed to provide for appropriate alternative remedies to deal with contamination of water supplies and cited Aerojet’s reliance on the potential for use of treated water from the contaminated plume when the Department of Health Services has already stated that this would not be permitted.  (United States Opposition, p. 18, lines 4-7.)

 

-  Before they could agree to a negotiated carve-out, there must be assurances that both future property owners and tenants of the carve-out lands and the public are adequately protected.  To do so, the government must ensure that water supply issues are addressed, Aerojet will be able to pay for the cleanup of the entire site and adequate deed restrictions must be in place.  (United States Opposition, p.15, line 23-p. 16, line 3.) 

 

-  “[B]ecause the limited amount of available water in the area, the major development Aerojet has planned for the carve-out lands, which will draw on that limited water, could interfere with Aerojet’s ability to quickly provide alternate water for public use when its plume contaminates wells used for existing development…It would therefore be irresponsible for the governments to negotiate a carve-out without further assurances in these important areas of public interest.”  (United States Opposition, p. 22, lines 6-13.)

 

Aerojet’s motion was denied and further negotiations produced the current version of the modified PCD.  On September 27, 2001, the United States, the State of California and Aerojet lodged a proposed modified PCD with the Court.   CSDWR submits that the proposed modified PCD does not address the concerns previously raised by the agencies as it does not provide for a replacement water supply for the groundwater supply capacity already lost and fails to ensure that future losses will be promptly rectified.

 

In their solicitation for public comments on the proposed modified PCD, the regulating agencies, noted “New development in the carve-out lands would require a source of drinking water.  Aerojet could furnish the carve-out lands with surplus water from its plant operations.  But if development requires more water than Aerojet has available, Aerojet would have to find new sources.”     

 

At the November 8, 2001 public hearing held by the Regional Board, each of the water purveyors in the affected area, CSDWR, American States Water Company (“ASWC”), the parent company of Arden Cordova Water Company, and Citizens Utilities Company, opposed the proposed PCD modification on the basis, in part, that Aerojet had not yet provided a replacement supply for the groundwater supply capacity already lost and the inadequacy of the proposed modification to ensure that future losses will be promptly rectified. CSDWR also objected on the basis that development of the carve-out lands would negatively impact the available water supply and the lack of an environmental review under NEPA and CEQA.   

 

The Regional Board staff report recommended approval of the modified PCD and carve-out plan and concluded that the proposed modification assures the availability of replacement water supplies for threatened public water supply wells.  The Regional Board subsequently approved the modification to the PCD. 

There is no evidence that replacement water is available or adequate to serve existing development as well as the carve-out lands.  Nor is there any evidence that the regulating agencies assessed the impact of carve-out land use on area water supply.  The evidence is clear, based, in part, on the regulating agencies’ own admissions in Federal Court and their request for public comments, that the carve-out lands will be developed and its land use will be modified.

 

The regulatory agencies represented to the court that they were opposed to any PCD without an enforceable guarantee that Aerojet would provide replacement water to any water purveyor that lost water supply wells.  Similarly, they required that any subsequent use of the carve-out lands would require a water supply.  The evidence includes:

 

a.                  Opposition of the United States and the State of California to the Motion of Aerojet-General Corporation and Cordova Chemical Company to Modify the Consent Decree as to Carve-Lands, filed October 23, 2000 in the federal lawsuit (“United States Opposition”).

 

b.                  Declaration of Alex MacDonald, Senior Engineer, Central Valley Regional Water Quality Control Board, in support of the United States Opposition.

 

c.                  Declaration (with attachments) of Charles S. Berrey, U.S. Environmental Protection Agency Remedial Project Manager for the Aerojet Superfund Site, in support of the United States Opposition.

 

d.                  Letter dated April 21, 2000, from Gary Carlton, Executive Officer, Central Valley Valley Regional Water Quality Control Board, to Chris Conley, Vice-President of Aerojet-General Corporation.

 

         Each of these documents details the lack of requirements under the existing PCD for Aerojet to provide any replacement water and the need for a guarantee of replacement water to protect the public interest before a carve-out could occur. Despite these prior concerns raised by the agencies to the court and in their official capacities, there is nothing in the existing proposal to modify the PCD that ameliorates the concerns as previously asserted by the regulating agencies.

 

 

There is no Evidence of an Immediately Available Replacement Water Supply

 

         There is no evidence to support a conclusion that the proposed modification to the PCD would assure the availability of replacement water supplies for threatened public water supply wells. The affected local water purveyors presented substantial evidence to the contrary.

 

1.                  The required Alternative Water Supply Reports do not result in the replacement water being made available to the local water purveyors.

 

The existing PCD provides that Aerojet must provide Preliminary and Final Water Supply Alternatives Reports when specified concentrations of chemicals are exceeded in a listed well.  However, the reports do nothing to physically provide alternative water supplies.  Aerojet has already demonstrated that while it may comply with the letter of the law by submitting the required reports, the reports have wholly lacked in substance.  The alternatives suggested by Aerojet to date have been either unacceptable to the local water purveyors and regulatory agencies or are unproven, unreliable, and/or subject to substantial legal and political hurdles.

 

2.                  The Modified PCD does not address the water supplies already lost or the time and effort necessary to develop the replacement water supply.

 

Even if a water supply alternative is deemed acceptable and plausible, there is substantial lead-time and effort before the actual provision of replacement water can occur.  After the preparation, submission and approval of the Water Supply Alternatives Reports, the replacement source must be procured and construction of the infrastructure to deliver the alternative water supply must be completed.   The current PCD does not impose any deadlines in which Aerojet must provide replacement water.  The modifications to the PCD impose a requirement for Aerojet to immediately (within 24 hours) provide interim alternate water to the affected water purveyors. However, no facilities, permits or agreements are currently in place to replace a well threatened by the NDMA and/or perchlorate contamination nor are there any existing systems for distribution of water from new sources. The Regional Board staff acknowledged that for delivery of an immediate interim alternate water supply, the facilities and any necessary permits/agreements need to be in-place prior to the well being shut down. The PCD, as it currently exists and even with the proposed modification, is written in terms of prospective lost water supplies.  The CSDWR and the other local water purveyors have already lost water supplies and water supply capacity.   Modifications to the PCD are needed to address the current situation and require that replacement water supply and capacity be procured now.

 

3.                  The PCD must require Aerojet to replace Lost Capacity as well as Lost Water
Supply.

 

Aerojet’s efforts to mitigate the closure of the water purveyors’ wells have not been satisfactory.  These efforts have done nothing to replace lost water supply capacity, but have only utilized existing capacity.  As a result, the loss of the water supply wells has resulted not only in lost production, but also loss of the ability of the local water purveyors to utilize capacity of wells for existing and future needs.  Utilization of other wells to replace the lost wells simply diminishes the existing system capacity and further diminishes the system flexibility to deal with increased demand or future well closure.  The capacity of the wells lost to the perchlorate contamination must be replaced by an equal amount of water supply capacity.

 

The Alternate Water Supply Contingency Plan is Inadequate.

 

         Aerojet’s Contingency Plan consists of two components.  The first component is a 3-year contract between Aerojet and the City of Folsom to provide Aerojet with up to 3000 gallons per minute of water.  The second component is a new water supply well to be paid for by Aerojet and given to ASWC known as the Rossmoor Bar Park well.  As ASWC indicated in its comments to the Regional Board, delivery of 3000 gallons per minute is over-optimistic and water requested by ASWC under that contract was not successfully delivered.  Moreover, none of the water purveyors are parties to that contract; rather it is between Aerojet and the City of Folsom.  CSDWR, Citizens Utilities and ACWSC cannot rely on a source of water when they are not parties to the contract.  That contract is also limited to the extent that the water “is available” and thus is not a completely firm or reliable supply.  In short, the contract does nothing to provide water to the CSDWR.  The second component, the Rossmoor Bar Park well, is a replacement well and does not provide a new source of drinking water.  Moreover, there is no guarantee that the CSDWR will be provided any water from that well.

        

 The Modified PCD does not assess the impact of carve-out land use on area water supply.

 

In their request for public comments, the regulating agencies focused substantial attention on the potential for Aerojet’s development of the 3000 acres of property sought to be carved-out from the Superfund site.  The proposed modification to the PCD imposed conditions on the transfer of the property.  The regulating agencies also noted that “New development in the carve-out lands would require a source of drinking water.  Aerojet could furnish the carve-out lands with surplus water from its plant operations.  But if development requires more water than Aerojet has available, Aerojet would have to find new sources.”   These comments were consistent with the arguments raised by the EPA and the State of California in their opposition to Aerojet’s Motion for Carve-Out.  In their opposition to the Aerojet motion, they argued, “[B]ecause the limited amount of available water in the area, the major development Aerojet has planned for the carve-out lands, which will draw on that limited water, could interfere with Aerojet’s ability to quickly provide alternate water for public use when its plume contaminates wells used for existing development…It would therefore be irresponsible for the governments to negotiate a carve-out without further assurances in these important areas of public interest.”  (United States Opposition, p. 22, lines 6-13.)

 

Despite those assertions to the Court in opposition to Aerojet’s Carve-Out Motion, the proposed modification to the PCD fails to provide any protection for this important issue.  In its comments, CSDWR noted that “Aerojet’s sale of land and retention of an interest in the cleanup effort will place the burden of identifying a source of water supply to support development of the Carve-Out on the local water purveyors.  It is particularly troublesome to SCDWR to have to assume such a burden when the contamination created by Aerojet has already made it difficult for the CSDWR to meet its current water supply obligations much less those for an entire new development.”  The CSDWR recommended that the covenants and environmental restrictions sought to be imposed by the regulating agencies contain a requirement that Aerojet provide a viable source of water supply to support development on these properties prior to sale. The two other local water purveyors impacted by the Aerojet contamination, ACWSC and Citizens Utilities, expressed similar concerns about the adequacy of the water supply for the carve-out lands and how its development may negatively impact the existing water supply in the area. 

 

Regional Board Staff responses to comments indicated that because the proposed modification to the PCD and the Record of Decision do not provide water for development on the carve-out lands, the Regional Board was not concerned with that issue. Staff indicated that how and when the carve-out property is developed was to be left to the development approval process.  CSDWR submits that such a position is completely contrary to the evidence presented by the affected local water purveyors and  directly contradicts the concerns raised by the agencies in their request for comments and their representations to the Court when opposing Aerojet’s Carve-Out Motion. 

 

The regulating agencies need to acknowledge that the lack of assurances of adequate water supply for development of the carve-out lands will create still further demand on the water basin at a time Aerojet has not even developed an adequate alternate water supply to replace existing sources impacted by the contamination.  The impact will not be limited to just the carve-out lands, but rather all lands within the entire groundwater basin.  As a result, the Modified PCD may impose serious consequences on the region for decades to come.  The carve-out, without restrictions on how and where water supplies may come from, sets the stage for a free-for-all among competing water interests.  This will compromise Aerojet’s ability to provide adequate and acceptable alternative and contingency water supplies throughout the affected area, not just the carve-out lands.  That responsibility should not and cannot be foisted on the local agencies alone.

 

The regulating agencies must comply with CEQA. 

 

In response to the regulating agencies’ request for comments, the SCDWR expressed its concern whether the regulating agencies had made a determination whether the carve-out was exempt from environmental documentation or evaluation required under the California Environmental Quality Act (“CEQA”) or the National Environmental Policy Act (“NEPA”).  The SCDWR expressed its concern that neither Aerojet nor the regulating agencies had conducted a cumulative analysis of the impact of the carve-out may have on the environment.  To the knowledge of the SCDWR, neither Aerojet nor the regulating agencies filed a Notice of Exemption under CEQA.

 

Conclusion.

 

Based on the foregoing, CSDWR urges the regulating agencies to further modify the Partial Consent Decree to impose in the covenants and environmental restrictions a requirement that Aerojet provide a viable source of water supply to support development on the carve-out property or any portion thereof prior to sale.  Moreover, the regulating agencies are requested to convene a meeting with Aerojet and the local water purveyors in an effort to develop viable enforceable written interim short-term and long-term water supply plans to be submitted as part of the modified Partial Consent Decree.

 

         We look forward to working with the regulating entities to resolve this very important issue. 

 

                                                                     Very truly yours,

 

 

                                                                     William E. Hvidsten

 

WEH:mm

 

 

 

 

cc:       The Honorable Gray Davis

            Winston H. Hickox

John F. Whisenhunt, Esq.

            John Coppola

            Forrest Williams

            Darrell Eck

            Alex MacDonald

            Charles Berrey

            Ed Cargile

            Reed Sato, Esq.

            William K. Koska, Esq.

            Nancy J. Casale, Esq.

            Nora Kostelnik