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