BILL ANALYSIS AB 752 Page 1 Date of Hearing: April 14, 2009 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Wesley Chesbro, Chair AB 752 (Arambula) - As Introduced: February 26, 2009 SUBJECT : State Water Pollution Control Revolving Fund: Severely disadvantaged communities. SUMMARY : Defines, for the purposes of the State Water Pollution Control Revolving Fund, a "severely disadvantaged community" as a community with a median household income of less than 60 percent of the statewide average. EXISTING LAW : 1)Defines, in Public Resources Code sections 4799.09 and 75005, a "disadvantaged community" as a community with a median household income of less than 80% of the statewide average. 2)Defines, in Public Resources Code sections 4799.09 and 75005, a "severely disadvantaged community" as a community with a median household income of less than 60% of the statewide average. 3)Defines, in Water Code section 13193.9, a "small disadvantaged community" as a municipality with a population of 20,000 persons or less, or a reasonably isolated and divisible segment of a larger municipality encompassing 20,000 persons or less, with an annual median household income that is less than 80 percent of the statewide median. 4)Creates, in Water Code section 13477.6, the State Water Pollution Control Revolving Fund Small Community Grant Fund (Small Community Grant Fund) in the State Treasury. 5)Requires the State Water Resources Control Board (SWRCB), for the purpose of approving grants from the Small Community Grant Fund, to give priority to projects that serve severely disadvantaged communities. FISCAL EFFECT : Unknown. COMMENTS : AB 752 Page 2 1)Purpose: According to the author's office, "Last year AB 2356 was signed into law providing desperately needed grant funds to severely disadvantaged communities for waste water treatment projects. AB 752 provides technical clean up by adding a necessary definition of "severely disadvantaged community" to the proper code section." AB 2356 (Arambula, Chapter 609, Statutes of 2008) provided tools to the SWRCB so that it can better assist disadvantaged communities in rectifying critical wastewater system needs. One of these tools was the creation of the Small Community Grant Fund, the monies of which are available upon appropriation by the Legislature to the SWRCB for grants for small community wastewater projects. The bill also requires the SWRCB to prioritize projects that serve severely disadvantaged communities; however, the bill, and the California Water Code in general, fail to define "severely disadvantaged communities." 2)History of the "severely disadvantaged community" definition : The definition of "severely disadvantaged community" as is in this bill was established in the Public Resources Code by the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Proposition 84). Additionally, AB 2045 (De La Torre, Chapter 438, Statues of 2008) uses the same definition regarding urban forestry programs. 3)Small community wastewater challenges: The SWRCB, in its June 16, 2008, Water Boards' Draft Small Community Wastewater Strategy, asserts that, "?Small communities face specific challenges related to their drinking water and wastewater systems. Many are currently on failing septic systems or have old and undersized wastewater treatment plants that cannot meet current water quality standards. Such systems can cause significant health and safety problems, endanger surface water uses, and pose a threat to groundwater supplies? Therefore, more financial, technical, and regulatory assistance is needed to bring small communities into compliance." AB 2356 (Arambula, Chapter 609, Statutes of 2008) provided some of this assistance. 4)Related legislation . a) AB 783 (Arambula, Chapter 614, Statutes of 2007). AB 752 Page 3 Directs the Department of Public Health (DPH) to prioritize funding of water projects in disadvantaged communities, among other requirements. b) AB 2356 (Arambula, Chapter 609, Statutes of 2008). Requires the SWRCB to take specified actions when allocating funds to small, disadvantaged communities for wastewater collection, treatment or disposal projects. Establishes the Small Community Grant Fund in the State Treasury and requires the prioritization of severely disadvantaged communities for grant disbursement. c) AB 2045 (De La Torre, Chapter 438, Statues of 2008). Among other provisions, defines a "severely disadvantaged community" as a community with a median household income of less than 60% of the statewide average. REGISTERED SUPPORT / OPPOSITION : Support American Federation of Federal, State and Municipal Employees (AFSME) Opposition None on file. Analysis Prepared by : Shannon McKinney / E.S. & T.M. / (916) 319-3965