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---



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          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.  




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          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 




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          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 




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               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




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          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





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          Oppose:None received.


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