BILL NUMBER: AB 983	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 8, 2011
	AMENDED IN SENATE  SEPTEMBER 2, 2011
	AMENDED IN SENATE  JULY 1, 2011
	AMENDED IN ASSEMBLY  MAY 5, 2011
	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Perea
   (Coauthors: Assembly Members Eng, Fong, Mendoza, V. Manuel Pérez,
and Solorio)
   (Coauthor: Senator Wolk)

                        FEBRUARY 18, 2011

   An act to amend Sections 116760.20, 116760.70, and 116761.23 of,
and to add Section 116760.39 to, the Health and Safety Code, relating
to public health, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 983, as amended, Perea. Safe Drinking Water State Revolving
Fund.
   Existing law, the California Safe Drinking Water Act, requires the
State Department of Public Health to administer provisions relating
to the regulation of drinking water to protect public health,
including, but not limited to, conducting research, studies, and
demonstration programs relating to the provision of a dependable,
safe supply of drinking water, enforcing the federal Safe Drinking
Water Act, adopting and enforcing regulations, and conducting studies
and investigations to assess the quality of water in domestic water
supplies.
   Existing law establishes the Safe Drinking Water State Revolving
Fund, which is continuously appropriated to the department for the
provision of grants and revolving fund loans to provide for the
design and construction of projects for public water systems that
will enable suppliers to meet safe drinking water standards. Existing
law requires the department to establish criteria for projects to be
eligible for the grant and loan program.
   This bill would authorize the department to take specified actions
to improve access to financial assistance for small community water
systems and not-for-profit nontransient noncommunity water systems
serving severely disadvantaged communities, as defined.  The
bill would require the department to give priority in funding to
projects that include consolidation with a small community water
system and that will enable that system to meet drinking water
standards, without regard to the project proponent, as provided.

   Under existing law, not less than 15% of the fund is required to
be expended for providing loans and grants to eligible projects by
public water systems that regularly serve fewer than 10,000 persons.
    This bill would require small community water systems or
nontransient noncommunity water systems, owned by a public agency or
private not-for-profit water company, serving severely disadvantaged
communities to be eligible to receive up to 100% of eligible project
costs in the form of a grant, to the extent the system cannot afford
a loan. By authorizing additional uses for moneys in a continuously
appropriated fund, this bill would make an appropriation.
   This bill would incorporate additional changes in Section
116761.23 of the Health and Safety Code proposed by AB 938, which
would become operative only if AB 938 and this bill are both
chaptered and become effective on or before January 1, 2012, and this
bill is chaptered last.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 116760.20 of the Health and Safety Code is
amended to read:
   116760.20.  Unless the context otherwise requires, the following
definitions govern the construction of this chapter:
   (a) "Acceptable result" means the project that, when constructed,
solves the problem for which the project was placed on the project
priority list established pursuant to Section 116760.70, ensures the
owner and operator of the improved or restructured public water
system shall have long-term technical, managerial, and financial
capacity to operate and maintain the public water system in
compliance with state and federal safe drinking water standards, can
provide a dependable source of safe drinking water long-term, and is
both short-term and long-term affordable, as determined by applicable
regulations adopted by the department.
   (b) "Cost-effective project" means a project that achieves an
acceptable result at the most reasonable cost.
   (c) "Department" means the State Department of Public Health.
   (d) "Disadvantaged community" means a community that meets the
definition provided in Section 116275.
   (e) "Federal Safe Drinking Water Act" or "federal act" means the
federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.) and
acts amendatory thereof or supplemental thereto.
   (f) "Fund" means the Safe Drinking Water State Revolving Fund
created by Section 116760.30.
   (g) "Funding" means a loan or grant, or both, awarded under this
chapter.
   (h) "Matching funds" means state money that equals that percentage
of federal contributions required by the federal act to be matched
with state funds.
   (i) "Project" means proposed facilities for the construction,
improvement, or rehabilitation of a public water system, and may
include all items set forth in Section 116761 as necessary to carry
out the purposes of this chapter. It also may include refinancing
loans, annexation or consolidation of water systems, source water
assessments, source water protection, and other activities specified
under the federal act.
   (j) "Public agency" means any city, county, city and county,
whether general law or chartered, district, joint powers authority,
or other political subdivision of the state, that owns or operates a
public water system.
   (k) "Public water system" or "public water supply system" means a
system for the provision to the public of water for human
consumption, as defined in Chapter 4 (commencing with Section
116270), as it may be amended from time to time.
   (l) "Reasonable amount of growth" means an increase in growth not
to exceed 10 percent of the design capacity needed, based on peak
flow, to serve the water and fire flow demand in existence at the
time plans and specifications for the project are approved by the
department, over the 20-year useful life of a project. For projects
other than the construction of treatment plants including, but not
limited to, storage facilities, pipes, pumps, and similar equipment,
where the 10-percent allowable growth cannot be adhered to due to the
sizes of equipment or materials available, the project shall be
limited to the next available larger size.
   (m) "Safe drinking water standards" means those standards
established pursuant to Chapter 4 (commencing with Section 116270),
as they may now or hereafter be amended.
   (n) "Severely disadvantaged community" means a community with a
median household income of less than 60 percent of the statewide
average.
   (o) "Supplier" means any person, partnership, corporation,
association, public agency, or other entity that owns or operates a
public water system.
  SEC. 2.  Section 116760.39 is added to the Health and Safety Code,
to read:
   116760.39.  In addition to the actions described in Section
116760.40, the department may, to implement the Safe Drinking Water
State Revolving Fund, improve access to financial assistance for
small community water systems and not-for-profit nontransient
noncommunity water systems serving severely disadvantaged communities
by doing both of the following:
   (a) Working to establish a payment process pursuant to which the
recipient of financial assistance would receive funds within 30 days
of the date on which the department receives a complete project
payment request, unless the department, within that 30-day period,
determines that the project payment would not be in accordance with
the terms of the program guidelines.
   (b) Investigating the use of wire transfers or other appropriate
payment procedures to expedite project payments.
  SEC. 3.  Section 116760.70 of the Health and Safety Code is amended
to read:
   116760.70.  (a) The department, after public notice and hearing,
shall, from time to time, establish a priority list of proposed
projects to be considered for funding under this chapter. In doing
so, the department shall determine if improvement or rehabilitation
of the public water system is necessary to provide pure, wholesome,
and potable water in adequate quantity and at sufficient pressure for
health, cleanliness, and other domestic purposes. The department
shall establish criteria for placing public water systems on the
priority list for funding that shall include criteria for priority
list categories. Priority shall be given to projects that meet all of
the following requirements:
   (1) Address the most serious risk to human health.
   (2) Are necessary to ensure compliance with requirements of
Chapter 4 (commencing with Section 116270) including requirements for
filtration.
   (3) Assist systems most in need on a per household basis according
to affordability criteria.
   (b) The department may, in establishing a new priority list, merge
those proposed projects from the existing priority list into the new
priority list.
   (c) In establishing the priority list, the department shall
consider the system's implementation of an ongoing source water
protection program or wellhead protection program.
   (d) In establishing the priority list categories and the priority
for funding projects, the department shall carry out the intent of
the Legislature pursuant to subdivisions (e) to (h), inclusive, of
Section 116760.10 and do all of the following:
   (1) Give priority to upgrade an existing system to meet drinking
water standards.
   (2) After giving priority pursuant to paragraph (1), consider
whether the applicant has sought other funds when providing funding
for a project to upgrade an existing system and to accommodate a
reasonable amount of growth. 
   (3) Give priority to projects that include consolidation with a
small community water system and that will enable that system to meet
drinking water standards without regard to the project proponent,
provided that the proponent is an eligible entity as defined in this
chapter. 
   (e) Consideration of an applicant's eligibility for funding shall
initially be based on the priority list in effect at the time the
application is received and the project's ability to proceed. If a
new priority list is established during the time the application is
under consideration, but before the applicant receives a letter of
commitment, the department may consider the applicant's eligibility
for funding based on either the old or new priority list.
   (f) The department may change the ranking of a specific project on
the priority lists at any time following the publication of the list
if information, that was not available at the time of the
publication of the list, is provided that justifies the change in the
ranking of the project.
   (g) The department shall provide one or more public hearings on
the Intended Use Plan, the priority list, and the criteria for
placing public water systems on the priority list. The department
shall provide notice of the Intended Use Plan, criteria, and priority
list not less than 30 days before the public hearing. The Intended
Use Plan, criteria, and priority list shall not be subject to the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. The department
shall conduct duly noticed public hearings and workshops around the
state to encourage the involvement and active input of public and
affected parties, including, but not limited to, water utilities,
local government, public interest, environmental, and consumer
groups, public health groups, land conservation interests, health
care providers, groups representing vulnerable populations, groups
representing business and agricultural interests, and members of the
general public, in the development and periodic updating of the
Intended Use Plan and the priority list.
   (h) The requirements of this section do not constitute an
adjudicatory proceeding as defined in Section 11405.20 of the
Government Code and Section 11410.10 of the Government Code is not
applicable.
  SEC. 4.  Section 116761.23 of the Health and Safety Code is amended
to read:
   116761.23.  (a) The maximum amount of a planning grant permitted
under this chapter for each participating public water system's share
of the costs of the planning, engineering studies, environmental
documentation, and design of a single project shall be no more than
five hundred thousand dollars ($500,000).
   (b) Unless the department approves an increase pursuant to this
subdivision, the maximum amount of a construction grant award
authorized under this chapter to each participating public water
system for its share of the cost of the construction of a single
project shall be no more than three million dollars ($3,000,000). The
department may approve an increase in the maximum amount for a
construction grant award authorized under this chapter so that the
maximum amount of the construction grant award does not exceed ten
million dollars ($10,000,000) only if the department makes all of the
following findings:
   (1) A public water system that serves a disadvantaged community
has a defined project need that exceeds the maximum grant amount of
three million dollars ($3,000,000).
   (2) The defined project has been bypassed in at least one funding
cycle due to a lack of funds.
   (3) The defined project is eligible for funding pursuant to the
program regulations.
   (4) The defined project represents the highest public health risk
among unfunded projects, as determined by the department according to
its standard criteria.
   (c) Total funding under this article for planning, engineering
studies, project design, and construction costs of a single project,
whether in the form of a loan or a grant, or both, shall be
determined by an assessment of affordability using criteria
established by the department.
   (d) Subject to all other limitations of this chapter, a small
community water system or nontransient noncommunity water system,
owned by a public agency or private not-for-profit water company,
serving severely disadvantaged communities shall be eligible to
receive up to 100 percent of eligible project costs in the form of a
grant, to the extent the system cannot afford a loan as determined by
the department pursuant to Section 116761.20.
  SEC. 4.5.  Section 116761.23 of the Health and Safety Code is
amended to read:
   116761.23.  (a) The maximum amount of a planning grant permitted
under this chapter for each participating public water system's share
of the costs of the planning, engineering studies, environmental
documentation, and design of a single project shall be no more than
five hundred thousand dollars ($500,000).
   (b) Unless the department approves an increase pursuant to this
subdivision, the maximum amount of a construction grant award
authorized under this chapter to each participating public water
system for its share of the cost of the construction of a single
project shall be no more than three million dollars ($3,000,000). The
department may approve an increase in the maximum amount for a
construction grant award authorized under this chapter so that the
maximum amount of the construction grant award does not exceed ten
million dollars ($10,000,000) only if the department makes all of the
following findings:
   (1) A public water system that serves a disadvantaged community
has a defined project need that exceeds the maximum grant amount of
three million dollars ($3,000,000).
   (2) The defined project has been bypassed in at least one funding
cycle due to a lack of funds.
   (3) The defined project is eligible for funding pursuant to the
program regulations.
   (4) The defined project represents the highest public health risk
among unfunded projects, as determined by the department according to
its standard criteria.
   (c) Total funding under this article for planning, engineering
studies, environmental documentation, project design, and
construction costs of a single project, whether in the form of a loan
or a grant, or both, shall be determined by an assessment of
affordability using criteria established by the department.
   (d) Subject to all other limitations of this chapter, a small
community water system or nontransient noncommunity water system,
owned by a public agency or private not-for-profit water company,
serving severely disadvantaged communities shall be eligible to
receive up to 100 percent of eligible project costs in the form of a
grant, to the extent the system cannot afford a loan as determined by
the department pursuant to Section 116761.20.
  SEC. 5.  Section 4.5 of this bill incorporates amendments to
Section 116761.23 of the Health and Safety Code proposed by both this
bill and Assembly Bill 938. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2012, (2) each bill amends Section 116761.23 of the Health and Safety
Code, and (3) this bill is enacted after Assembly Bill 938, in which
case Section 4 of this bill shall not become operative.