BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 964
                                                                  Page  1

          Date of Hearing:  April 6, 2011

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                    AB 964 (Huffman) - As Amended:  March 17, 2011
           
          SUBJECT  :  State Water Pollution Control Revolving Fund: onsite 
          sewer improvement projects.

           SUMMARY  :  Requires financial assistance provided from the State 
          Water Pollution Control Fund (SRF) for onsite sewer improvements 
          to be provided only for projects for which a public agency has 
          adopted a sewer system management plan that includes a 
          prescribed 10-year plan for sewer upgrades, and requires a 
          public agency receiving financial assistance from the fund for 
          that purpose to report to the board on its progress with respect 
          to developing and implementing a 10-year plan for sewer 
          upgrades.  Specifically,  this bill  :  

          1)Requires financial assistance provided from the SRF for 
            purposes of onsite sewer improvements to 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 ten-year plan for sewer upgrades.

          2)Defines ten-year plan for sewer upgrades as 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 ten years, sanitary sewer overflows due to 
               excessive infiltration and inflow through cracked and 
               leaking sewer laterals;

             b)   Strategies for public outreach to private property 
               owners to make repairs to, or replacement of, as necessary, 
               private sewers laterals for the purpose of prevention or 
               abatement of sewage contamination; and,

             c)   Guidelines for managing and accounting for funding made 
               available to property owners for the purposes of lateral 
               repairs or replacements

          3)Defines "onsite sewer improvements" as permanent sewer 
            improvements fixed to real property that convey sewage from 








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            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. 

          4)States that onsite sewer and improvements may be installed to 
            modify or replace existing onsite sewer improvements.

          5)Defines "public agency" as city, county, city and county, 
            municipal utility district, community services district, 
            sanitary district, sanitation district, or water district, as 
            defined.



          6)Defines "sewer system management plan" as 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 
            (SWRCB)), as that order may be amended.

          7)Requires, commencing January 1, 2014, a public agency 
            receiving financial assistance from the SRF for onsite sewer 
            improvements to report to the SWRCB on the progress of 
            developing and implementing the ten-year plan for sewer 
            upgrades.

          8)Makes legislative findings and declarations related to water 
            quality and financing onsite sewer system improvements.

           EXISTING LAW  :

          1)Creates SRF, as provided by the federal Clean Water Act, as a 
            perpetual water pollution control revolving fund which is 
            partially capitalized by federal contributions.  The money in 
            SRF is used for projects to mitigate water quality issues.  

          2)Requires the SWRCB, for the purposes of administering the SRF, 
            to give favorable consideration to certain types of eligible 
            projects, including projects undertaken in response to an 
            administrative enforcement order.

           FISCAL EFFECT  :  Unknown









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           COMMENTS  :   

          1)The State Water Pollution Control Revolving Fund is a program 
            funded by federal grants and State bond funds.  The purpose of 
            the SRF loan program is to implement the Federal Clean Water 
            Act (CWA) and the Porter-Cologne Water Quality Act by 
            providing financial assistance for the construction of 
            facilities or implementation of measures necessary to address 
            water quality problems and to prevent pollution in the waters 
            of the state.  SRF loans are intended to fund the following 
            types of projects: construction of wastewater treatment 
            facilities, the implementation of nonpoint source projects or 
            programs, and stormwater treatment, estuary conservation and 
            management plans, and other point source projects.  SRF 
            provides low-interest loans of between $200 to $300 million 
            annually for construction of these types of projects. 

          2)According to the author, the goal of this bill is to help 
            address the chronic water quality impacts caused by sanitary 
            sewer overflows (SSOs) from aging cracked and damaged sewer 
            laterals by encouraging public agencies to facilitate 
            locally-administered low cost loan programs to finance the 
            installation of onsite sewer improvements. 

            An SSO is any overflow, spill, release, discharge or diversion 
            of untreated or partially treated wastewater from a sanitary 
            sewer system. As stated by the SWRCB: "SSOs often contain high 
            levels of suspended solids, pathogenic organisms, toxic 
            pollutants, nutrients, oil, and grease.  SSOs pollute surface 
            and ground waters, threaten public health, adversely affect 
            aquatic life, and impair the recreational use and aesthetic 
            enjoyment of surface waters. 


            Typical consequences of SSOs include the closure of beaches 
            and other recreational areas, inundated properties, and 
            polluted rivers and streams."

          3)Counties around the state are riddled with old and damaged 
            sewer lines. Repair or replacement of the lateral is typically 
            the responsibility of the homeowner. Yet, rehabilitation of 
            laterals is important in preventing backups and overflows 
            system wide.  The SWRCB requires sanitation agencies to 
            maintain public sewer lines, but there is no statewide program 
            that mandates private lateral rehabilitation.








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          4)According to the author, costs of sewer lateral replacements 
            are expensive.  A typical private sewer lateral replacement 
            will cost somewhere in the range of $1,500 to $4,000.  The 
            costs can increase significantly if there are obstructions to 
            the contractor such as extensive landscaping, driveways, or 
            structures built over the lateral.

            The author's office reports that local wastewater agencies in 
            the North Bay Watershed Association have already invested more 
            than $200 million on improving publicly owned sewer mains and 
            treatment facilities and have budgeted another $50 million or 
            so in the next several years.  But the problem cannot be 
            resolved simply by upgrading the public sewer system.  Private 
            property owners must also address their sewer laterals so that 
            public facilities are not overwhelmed, and overflows and sewer 
            spills are avoided.  The author believes that a public purpose 
            will be served through this measure, by supporting locally 
            administered low cost loan programs through the use of State 
            Water Pollution Control Revolving Funds

          5)Support arguments:  The California Association of Sanitation 
            Agencies, states that "because there are often high costs 
            associated with the replacement or rehabilitation of private 
            sewer lines, many homeowners are unable or unwilling to 
            proceed with the necessary fixes to their properties.  By 
            providing a funding mechanism for agencies to alleviate the 
            difficulty of financing these projects, this bill is a welcome 
            alternative for agencies facing this dilemma." 

            Opposition arguments:  Opposition could argue that prohibiting 
            a local agency from receiving monies from the SRF for onsite 
            sewer improvements, unless the local agency has adopted a 
            sewer system management plan that includes a prescribed 
            10-year plan for sewer upgrades, might unfairly disadvantage 
            local agencies who need the funding quickly to deal with 
            sanitary sewer overflows but do not have the time or the 
            funding to create the required sewer management plan. 

          6 This bill is double-referred to the Committee on Environmental 
            Safety and Toxic Materials.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support                              Opposition








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          CA Association of Sanitation AgenciesNone on file
          CA Association of REALTORS 

           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 
          319-3958