BILL NUMBER: AB 964	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 13, 2011
	AMENDED IN ASSEMBLY  APRIL 13, 2011
	AMENDED IN ASSEMBLY  MARCH 17, 2011

INTRODUCED BY   Assembly Member Huffman

                        FEBRUARY 18, 2011

    An act to add Section 13481.6 to the Water Code, relating
to water pollution.   An act to amend Sections 1228.1,
1228.2, and 1228.5 of, to amend the heading of Article 2.7
(commencing with Section 1228) of Chapter 1 of Part 2 of Division 2
of, to amend and renumber Section 1229.1 of, and to repeal Section
1228.9 of, the Water Code, relating to water. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 964, as amended, Huffman.  State Water Pollution
Control Revolving Fund: onsite sewer improvement projects. 
 Water rights: appropriation.  
   (1) Existing law authorizes any person to obtain a right to
appropriate water for small domestic use or livestock stockpond use
upon registering the use with the State Water Resources Control Board
and upon thereafter applying the water to reasonable and beneficial
use with due diligence. With regard to small domestic use, existing
law prohibits more than one registration to be in effect at any time
for any facility. Existing law allows a registrant to maintain more
than one registration for livestock stockpond use if stockponds
subject to registration do not exceed the ratio of one per 50 acres.
Existing law provides for registration renewals of small domestic
uses and livestock stockpond uses prior to the expiration of each
5-year period following completed registration.  
   This bill would also authorize any person to obtain a right to
appropriate water for a small irrigation use, as defined, upon
registering the use with the board, as prescribed, and thereafter
applying the water to reasonable and beneficial use with due
diligence. This bill would prohibit the filing of a small domestic
use registration for a facility served by or used pursuant to a
permit or license for domestic or municipal use. This bill would also
allow a registrant for a small irrigation use to maintain more than
one registration if a small irrigation use subject to registration
does not exceed the ratio of one per 50 acres, and if the total water
use on all registered acreage does not exceed 100 acre-feet per
annum.  
   This bill would also prohibit a registration with a source of
supply on a stream system from taking effect unless the board finds
that unappropriated water is available for the proposed
appropriation. The bill would authorize the board, following a notice
and hearing, to determine whether that stream system should be
declared fully appropriated.  
   (2) Existing law exempts from the provisions described in (1)
those stream segments for which the Director of Fish and Game
establishes proposed streamflow requirements pursuant to specified
existing law.  
   This bill would provide that the exemption does not apply to a
registration filed before the director establishes proposed
streamflow requirements. The bill would require the renewal of a
registration to include certain conditions determined by the
department to be necessary.  
   Existing law continuously appropriates state and federal funds in
the State Water Pollution Control Revolving Fund to the State Water
Resources Control Board to provide financial assistance for the
construction of publicly owned treatment works by a municipality, the
implementation of a specified management program, the development
and implementation of a specified conservation and management plan,
and other related purposes in accordance with the federal Clean Water
Act and the state Porter-Cologne Water Quality Control Act.
 
   This bill would require financial assistance provided from the
fund for onsite sewer improvements, as defined, to be provided only
for projects for which a public agency has adopted a sewer system
management plan, as defined, that includes a prescribed 10-year plan
for sewer upgrades. The bill, commencing January 1, 2013, would
require a public agency receiving financial assistance from the fund
for that purpose to report annually to the board on its progress with
respect to developing and implementing a 10-year plan for sewer
upgrades.  
   The bill also would make legislative findings and declarations
related to water quality and financing onsite sewer system
improvements. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The heading of Article 2.7 (commencing
with   Section 1228) of Chapter 1 of Part 2 of Division 2 of
the   Water Code  is amended to read: 

      Article 2.7.  Registration of Appropriations for Small Domestic
 , Small Irrigation,  and Livestock Stockpond Uses


   SEC. 2.    Section 1228.1 of the   Water
Code   is amended to read: 
   1228.1.  (a) The Legislature finds and declares that it is in the
public interest to provide a timely, efficient, and economic
procedure for the acquisition of rights to appropriate water for a
small domestic use, including incidental  stockwatering
  stock watering  and irrigation uses,  a small
irrigation use,  and for livestock stockponds subject to prior
rights.
   (b) As used in this article,  "small   :

    (1)     "Small"  domestic use" means a
domestic use, not to exceed direct diversion of 4500 gallons per day
or diversion  by   to storage of 10
acre-feet per annum, as that use is defined by board rule, and shall
include impoundment for incidental aesthetic, recreational, or fish
and wildlife purposes. 
   (2) "Small irrigation use" means an irrigation use not to exceed
direct diversion of 4500 gallons per day or diversion to storage of
20 acre-feet per annum.  
   (c) 
    (3)   As used in this article, "livestock
  "Livestock  stockpond" means a water impoundment
structure constructed for livestock watering use not to exceed direct
diversion of 4500 gallons per day, or diversion  by
  to  storage of 10 acre-feet per year, as that use
is defined by the board, and including impoundment for incidental
aesthetic, recreational, or fish and wildlife purposes.
   SEC. 3.    Section 1228.2 of the   Water
Code   is amended to read: 
   1228.2.  (a) (1) Subject to subdivision (b), any person may obtain
a right to appropriate water for a small domestic  , small
irrigation,  or livestock stockpond use upon first registering
the use with the board and thereafter applying the water to
reasonable and beneficial use with due diligence.
   (2) With regard to an appropriation for small domestic use,  a
registration shall not be filed for a facility served by or used
pursuant to a permit or license for domestic or municipal use, and
 not more than one registration shall be in effect at any time
for any facility. 
   (3) With regard to an appropriation for small irrigation use, more
than one registration may be in effect at any time for a registrant
if the diversion or storage facilities subject to registration for a
registrant do not exceed the ratio of one per 50 acres, and if the
total water use on all acreage covered by the registrations,
including any water use based on other rights, does not exceed 100
acre-feet per annum.  
   (3) 
    (4)  With regard to an appropriation for livestock
stockpond use, more than one registration may be in effect at any
time for a registrant if stockponds subject to registration for that
registrant do not exceed the ratio of one per 50 acres.
   (b) Initiation of rights to appropriate water pursuant to this
article shall be subject to Article 1.3 (commencing with Section
1205), relating to fully appropriated stream systems. The board shall
not accept any registration of water use which proposes as a source
of water supply any stream system which has been unconditionally
declared by the board to be fully appropriated pursuant to Section
1205, except that subdivision (b) of Section 1206, relating to
conditional declarations of fully appropriated stream systems, shall
apply to registration of water use pursuant to this article, and the
board shall accept those registrations where consistent with the
conditions specified in any such declaration.
   (c) On or before June 30, 1989, and annually thereafter, the
Division of Water Rights shall prepare and submit to the board a
report summarizing the location, nature, and amount of water
appropriated pursuant to this article. The report shall include a
description of the availability of unappropriated water in those
stream systems which may become fully appropriated within the next
reporting period.
   (d)  Whenever it can be reasonably anticipated that
  If a registration is filed with a source of supply on
a stream system that the most recent report submitted under
subdivision (c) identifies as  a stream system  that 
may become fully appropriated within the next reporting period, the
 registration shall not take effect unless the board finds that
unappropriated water is available for the appropriation proposed by
the registration. If the board finds that unappropriated water is not
available to supply the proposed appropriation, the  board
shall, following notice and hearing, determine whether that stream
system should be declared fully appropriated pursuant to Article 1.3
(commencing with Section 1205).
   SEC. 4.    Section 1228.5 of the   Water
Code   is amended to read: 
   1228.5.  (a) Registration of a small domestic  , small
irrigation,  or livestock stockpond use pursuant to this article
shall be renewed prior to the expiration of each five-year period
following completed registration.
   (b) Renewal of registration shall be made upon a form prescribed
by the board and shall contain a report of water use made pursuant to
the registration as may be required by the board.
   (c) The conditions established by the board pursuant to Section
1228.6 that are in effect at the time of renewal of registration
shall supersede the conditions that were applicable to the original
completed registration.
   (d) Failure to renew registration in substantial compliance with
the reporting requirements prescribed by the board within the time
period specified in subdivision (a), or to pay the renewal fee
specified in Section 1525, shall result by operation of law in the
revocation of any right acquired pursuant to this article.
   SEC. 5.    Section 1228.9 of the   Water
Code   is repealed.  
   1228.9.  With regard to a small domestic use of water, no right to
appropriate or use water subject to appropriation may be initiated
on and after January 1, 1989, except upon compliance with this
article, and this article shall be the exclusive means of acquiring
and maintaining that right. Nothing in this article shall be
construed as affecting any right initiated or acquired pursuant to
permit or evidenced by license, and including any application filed
but not permitted, prior to January 1, 1989. 
   SEC. 6.    Section 1229.1 of the   Water
Code   is amended and renumbered to read:  
   1229.1.  This 
    1229.    (a)     Except as
provided in subdivision (b), this article  does not apply to
those stream segments for which the Director of Fish and Game
establishes proposed streamflow requirements pursuant to Section
10002 of the Public Resources Code, notwithstanding the July 1, 1989,
deadline for preparation of the requirements. 
   (b) Notwithstanding subdivision (a), this article applies to any
registration filed before the Director of Fish and Game establishes
proposed streamflow requirements for the source of water supply for
the registration. The conditions for renewal under subdivision (c) of
Section 1228.5 may include any conditions the Department of Fish and
Game determines to be necessary to protect stream-related fish and
wildlife resources on any source of water supply for which the
Director of Fish and Game has established proposed streamflow
requirements pursuant to Section 10002 of the Public Resources Code.
 
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) The frequency and size of sewage spills of raw or partially
treated sewage is often a result of aging sewer systems and a lack of
maintenance on leaky and dilapidated infrastructure.
   (b) Sewage spills also occur due to rainstorms infiltrating and
overcoming poorly maintained or outdated systems.
   (c) Sewage spills cause significant economic damage; they cause
fishery closures, hurt the tourism industry, create unsafe swimming
conditions, result in closed beaches, and cost ratepayers millions of
dollars annually to abate and clean up.
   (d) Sewage spills result in significant contamination of the
environment. The state's waterways are part of critically important
ecosystems that support large numbers of birds, fish, and other
wildlife, including, but not limited to, many threatened and
endangered species. Sewage contamination threatens these ecosystems
when it escapes public sewer systems.
   (e) Public agencies are often challenged with the high cost of
maintenance and repair of sewer lines, and often have limited
authority over private sewer lines that feed into public sewer
systems.
   (f) Sewage from improperly designed, located, constructed, or
maintained septic systems can leak bacteria, viruses, household
chemicals, and other contaminants causing or contributing to serious
water quality problems.
   (g) Waiting until properties change ownership does not address in
a timely manner the need to rehabilitate aged and leaking private
sewer laterals or needed conversions from septic systems to the
public sewer system.
   (h) Establishment of a 10-year plan to maintain and improve public
and private sewer infrastructure will help protect surface water and
groundwater, including preventing sewage spills caused by stormwater
intrusion into sewer collection systems.  
  SEC. 2.    Section 13481.6 is added to the Water
Code, to read:
   13481.6.  (a) The Legislature finds and declares all of the
following:
   (1) It is the intent of the Legislature to address water quality
needs throughout California by permitting voluntary individual sewer
improvements that provide a public benefit. The Legislature further
intends that this chapter should be used to finance the installation
of onsite sewer improvements that are permanently fixed to
residential, commercial, industrial, agricultural, or other real
property, including installation of improvements to, and replacements
of, existing onsite sewer facilities served by a community sewer
system or a septic conversion.
   (2) To improve the quality of surface water and groundwater,
necessary efforts include the promotion of onsite sewer improvements
that provide a public benefit in preventing water quality
degradation.
   (3) The upfront cost of making needed improvements to, or
replacements of, existing sewer laterals, or septic conversion,
prevents many property owners from making those improvements. To make
those improvements more affordable and to promote the installation
of those improvements, it is necessary for the board to give
favorable consideration to an alternative procedure to finance the
cost of onsite sewer improvements.
   (4) A public purpose will be served by a locally administered
low-cost loan program that provides the legislative body of a public
agency with the authority to finance the installation of onsite sewer
improvements that are permanently fixed to residential, commercial,
industrial, agricultural, or other real property.
   (b) For purposes of this section, the following terms have the
following meanings:
   (1) "Onsite sewer improvements" means permanent sewer improvements
fixed to real property that convey sewage from the property's
interior plumbing to the point of discharge into the public agency's
sewer facilities, and may include, but is not limited to, pipes,
pumps, other equipment, sewer laterals, or one-time charges for
sewage treatment capacity associated with the improvements. Onsite
sewer improvements may be installed to modify or replace existing
onsite sewer improvements. "Onsite sewer improvements" may include,
if appropriate, septic conversions.
   (2) "Public agency" means a city, county, city and county,
municipal utility district, community services district, sanitary
district, sanitation district, or water district as defined in
Section 20200.
   (3) "Septic conversion" means the conversion of a residential,
commercial, industrial, agricultural, or other real property from an
onsite septic system to a community sewer collection service, and may
include related septic system abandonment.
   (4) "Sewer system management plan" is a system-specific plan that
meets the requirements of the Statewide General Waste Discharge
Requirements for Sanitary Sewer Systems (Order No. 2006-0003-DWQ of
the State Water Resources Control Board), as that order may be
amended.
   (5) "Ten-year plan for sewer upgrades" means a plan that includes,
but need not be limited to, all of the following:
   (A) An evaluation that identifies and prioritizes the areas where
onsite sewer improvements are needed in order to prevent, within 10
years, sanitary sewer overflows due to aging, cracked, and leaking
sewer laterals. If a public agency intends to provide financial
assistance for septic conversions, the evaluation shall also identify
and prioritize areas where septic conversions are needed to protect
surface water or groundwater.
   (B) Strategies for public outreach to private property owners
regarding the critical importance of properly designed, located,
constructed, and maintained onsite sewer improvements for the purpose
of prevention or abatement of sewage contamination. Outreach shall
include, but shall not be limited to, providing information about
financing options for owners who wish to make repairs to, or replace,
as necessary, private sewer laterals. If the local agency has
identified in its 10-year plan where septic conversions are needed,
outreach shall also include information regarding financing options
for septic conversions. If the public agency has received financial
assistance from the fund, outreach information shall address the
possibility of low-cost loans between the property owners and the
agency.
   (C) Guidelines for managing and accounting for funding made
available to property owners for the purposes of onsite sewer
improvements. The guidelines may authorize the property owner to
purchase directly the related equipment and materials for the
installation of onsite sewer improvements and to contract directly
for the installation of onsite sewer improvements that are
permanently fixed to the property owner's residential, commercial,
industrial, agricultural, or other real property.
   (c) Financial assistance provided from the fund for purposes of
onsite sewer improvements shall be provided only for projects for
which a public agency has adopted a sewer system management plan
that, in addition to other applicable requirements, includes a
10-year plan for sewer upgrades.
   (d) Commencing January 1, 2013, a public agency receiving
financial assistance in accordance with subdivision (c) shall report
annually to the board on the progress of developing and implementing
the 10-year plan for sewer upgrades.