BILL ANALYSIS Ó SENATE HEALTH COMMITTEE ANALYSIS Senator Ed Hernandez, O.D., Chair BILL NO: AB 1194 A AUTHOR: Block B AMENDED: As Introduced HEARING DATE: June 15, 2011 1 REFERRAL: Environmental Quality 1 CONSULTANT: 9 Orr 4 SUBJECT Drinking water SUMMARY Makes changes to the California Safe Drinking Water Act (SDWA) to conform state drinking water law to federal law. CHANGES TO EXISTING LAW Existing federal law: Establishes the federal Safe Drinking Water Act (federal SDWA) to regulate the nation's public drinking water supply. Requires the U.S. Environmental Protection Agency (US EPA) to establish mandatory nationwide drinking water standards. Requires state drinking water programs to set drinking water standards that are at least as stringent as the US EPA standards. Existing state law: Establishes the California Safe Drinking Water Act (Act) to Continued--- STAFF ANALYSIS OF ASSEMBLY BILL 1194 (Block) Page 2 govern the state's Drinking Water Program and to be the delegated authority by the US EPA for enforcement of the federal SDWA. Establishes the Drinking Water Program (DWP) within the California Department of Public Health (CDPH) to regulate public drinking water systems and enforce federal and state drinking water acts. Under the Act, defines "human consumption" to mean the use of water for drinking, bathing or showering, hand washing, or oral hygiene. Under the Act, exempts public water systems that meet specified conditions, including systems that sell water to users through a submetered service system if the water supply is obtained from a regulated public water system. Requires CDPH to exempt from water quality requirements any noncommunity water system serving a transient population that provides restrooms for employees or the public, provided that the water system meets all of the following criteria: No water is served by the water system for any public human consumption other than for handwashing. If water is served for public human consumption other than for handwashing, bottled water from a source approved by CDPH is provided; The water for handwashing is bacteriologically safe, as specified; and, The noncommunity water system is not a business regulated as a food facility. Authorizes CDPH to levy penalties against public water systems of up to $1,000 per day for violation of a primary drinking water standard and certain health-based secondary standards; authorizes a penalty of $200 per day for other violations, as specified. This bill: Adds the use of water for cooking, preparing food, and washing dishes to the definition of human consumption under the Act. Narrows an exemption from regulation for public water systems that sell water to users through a submetered distribution system, by also requiring that users not be charged higher rates than users would otherwise be charged by the public water system. STAFF ANALYSIS OF ASSEMBLY BILL 1194 (Block) Page 3 Repeals the exemption for noncommunity water systems serving transient populations from water quality requirements in the Act. Revises penalty provisions, including authorizing DPH to levy penalties per day, per violation, beginning from the date the violation occurred, rather than from the date specified for correction in the citation or order. Makes other technical and clarifying changes. FISCAL IMPACT According to the Assembly Appropriations Committee analysis, no significant costs associated with this legislation. However, CDPH could possibly see an increase in revenue due to an increase in the maximum amounts CDPH can assess for administrative penalties. The analysis also states that failure to conform California's safe drinking water laws to federal law could result in a loss of over $100 million in federal funding from US EPA. BACKGROUND AND DISCUSSION The author has introduced AB 1194 to conform existing state statutes to federal laws and regulations on drinking water. The author contends that as a "primacy state" (a state with federally designated authority to enforce federal standards) California's laws and regulations must conform to the federal SDWA and be no less stringent than federal safe drinking water regulations. Should California's laws or regulations fail to conform to federal laws and regulations, the author asserts that California could lose state primacy, which is a condition of a state's eligibility for federal funding, and would result in the loss of up to $132 million annually from the US EPA. The author contends that US EPA could reduce or withhold CDPH's funding for implementing a drinking water primacy program and for public water system infrastructure improvements, which would hinder the systems' ability to provide safe drinking water. In addition, the author contends that the federal funds are used for DWP activities and a loss of funding would hinder DWP's ability to carry out its STAFF ANALYSIS OF ASSEMBLY BILL 1194 (Block) Page 4 regulatory activities. Federal SDWA The federal SDWA includes a requirement that US EPA establish and enforce standards (maximum contaminant levels, treatment techniques, and monitoring) to which public drinking water systems must adhere. States and Indian Tribes are given primary enforcement responsibility, (also known as primacy) for public water systems in their jurisdiction if they meet certain requirements. Because California is a primacy state, the US EPA delegates to California its authority to implement a drinking water program, which is administered by CDPH. To retain this authority, California must enact laws and regulations related to drinking water that conform to, and are no less stringent than, the federal SDWA and federal regulations. CDPH, the sponsor of the bill, argues this bill is necessary to amend the California SDWA to ensure conformance with federal law from time to time. CDPH claims that meetings and correspondence with the US EPA regarding federal SDWA, US EPA claims that: Existing state law, which defines "human consumption," is not broad enough to conform to the federal provision because it omits cooking, food preparation, and other such forms of human ingestion of water. Existing state law exempts apartments and other multi-unit dwellings from regulation as public water systems. US EPA contends that specified sections of California's drinking water statutes referring to the exemption criteria lack clarity and are inconsistent with federal policy. US EPA believes it is more appropriate to explicitly describe the criteria for exemption. Existing state law authorizes CDPH to exempt from most water quality requirements any system that does not serve residents, provided that certain requirements are met, including that the system either only serves water for hand-washing, or, if it serves water for other purposes, makes bottled water available for those purposes. Federal law provides no similar exemption; therefore, California law in this area is less stringent than federal law. Existing state law authorizes penalties against public water systems of up to $1,000 per day for a STAFF ANALYSIS OF ASSEMBLY BILL 1194 (Block) Page 5 violation of a primary drinking water standard and certain health-based secondary standards, but authorizes a penalty of only $200 per day for other violations. In some instances, California's SDWA does not authorize such penalties until CDPH first issues a citation with a deadline by which the system must come into compliance, and CDPH finds that the system fails to meet that deadline. Consequently, a public water system may avoid paying a penalty for the days on which it violated applicable laws or regulations by coming into compliance. Federal law, however, authorizes a penalty of up to $1,000 per day per violation that cannot be avoided by coming into compliance, as allowed under state law. California law in this area is less stringent than the applicable federal requirements. DWP California's Drinking Water program, within CDPH's Division of Drinking Water and Environmental Management, is responsible for the regulatory oversight of about 8,000 public water systems throughout the state, and directly regulates more than 3,400 large and small public water systems. According to the Senate Office of Research May 2011 Report, "The Water We Drink: What is California Doing to Ensure Its Water is Safe?", California has delegated the drinking water program regulatory authority for some small water systems to local primary agencies in 33 counties, which then regulate approximately 4,600 small public water systems. These small water-system owners may be churches, schools, restaurants, and hotels. DWP issues permits to drinking water systems, inspects water systems, reviews and approves of proposed treatment facilities, monitors water quality, sets and enforces drinking water standards and requirements, and administers and awards infrastructure grants and loans. DWP also promotes and provides information on drought preparedness and water conservation; oversees water recycling projects; certifies residential water treatment devices; certifies drinking water treatment and distribution operators; supports and promotes water system security; provides support for small water systems and for improving technical, managerial, and financial capacity; and provides funding opportunities for water system improvements. Prior legislation STAFF ANALYSIS OF ASSEMBLY BILL 1194 (Block) Page 6 AB 1540 (Assembly Committee on Health), Chapter 298, Statutes of 2009, made clarifying changes to provisions authorizing point-of-use and point-of-entry treatment devices for the removal of contaminants in public drinking water in order to conform to federal law, among other changes. AB 2507 (Audra Strickland) of 2009 would have required the local public health officer to establish standards for, and be the primary enforcement agency over, local small water systems, as defined. AB 2507 was held in the Assembly Water, Parks, and Wildlife Committee. AB 783 (Arambula), Chapter 614, Statutes of 2007, required CDPH, in administering programs to fund improvements and expansions of small community water systems, to award funds using specified priorities, and defined "small community water system" and "disadvantaged community" in California's Safe Drinking Water Act. PRIOR ACTIONS Assembly Health: 17- 0 Assembly Environmental Safety and Toxic Materials:9- 0 Assembly Appropriations: 16- 0 Assembly Floor: 78- 0 COMMENTS 1. Clarifying amendment. The author may wish to clarify the exemption criteria for public water systems in HSC 116280(c). 2. Double Referral. This bill has been double referred to the Senate Environmental Quality Committee. POSITIONS Support: California Department of Public Health STAFF ANALYSIS OF ASSEMBLY BILL 1194 (Block) Page 7 Oppose:None received. -- END --