BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2056
                                                                  Page 1

          Date of Hearing:   April 24, 2012

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Bob Wieckowski, Chair
                   AB 2056 (Chesbro) - As Amended:  March 27, 2012
                               As Proposed To Be Amended
           
           SUBJECT  :   Drinking water safety.

           SUMMARY  :   This bill exempts small public water systems (PWS) 
          from the three year limit on permits for point-of-entry (POE) 
          and point-of-use (POU) treatment in lieu of centralized water 
          treatment.  Specifically,  this bill  :  

               1)     Allows PWS of 20 or less residential connections to 
                 use POU treatment beyond the 3 year maximum set by 
                 Department of Public Health (DPH). 

               2)     Allows these water systems to use census tract data 
                 as median household income (MHI) information for the 
                 demonstration of economic feasibility, as required in the 
                 pre-application for POU treatment. 

           EXISTING LAW  :

          1)Delegates the authority of United States Environmental 
            Protection Agency (US EPA) to California to implement a 
            drinking water program.  As a primacy state (having federally 
            delegated authority), California must enact laws and 
            regulations related to drinking water that conform to the 
            federal Safe Drinking Water Act (SDWA) and must be no less 
            stringent than the federal regulations.

          2)Establishes the Drinking Water Program within DPH to regulate 
            public drinking water systems. 

          3)Provides for the use of water treatment devices by a PWS, 
            including POU and POE, devices if the PWS meets the following 
            criteria:

             a)   The PWS has less than 200 service connections; and

             b)   The PWS has submitted pre-applications with DPH for 
               funding to correct the violations for which the POU 
               treatment is provided.








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          4)Prohibits DPH from issuing or amending a permit to allow the 
            use of POU treatment unless DPH determines, after a public 
            hearing, that there is no substantial community opposition.

          5)Limits the issuance of a permit for the use of POU treatment 
            to the lesser of three years or until funding for centralized 
            treatment is available.

          6)Sets the Maximum Contaminant Level (MCL) for arsenic in 
            drinking water, effective 2006, at 10 ?g/L. 

           FISCAL EFFECT  :   Not Known.

           COMMENTS  :

           1)Need for the bill:   Loch Haven Mutual Water District in the 
            Santa Rosa area has arsenic in its drinking water above the 
            level allowed by state law.  The cost of centralized treatment 
            is estimated at $250,000 or more.  Due to the very small size 
            of the PWS (19 connections), building, operating, and 
            maintaining a centralized treatment facility is not 
            economically feasible. 
             
             According to the US EPA, "Small System Variance Technologies" 
            must be identified in lieu of affordable compliance 
            technologies.  US EPA and other agencies have studied and 
            shown that POU systems are a cost effective means of extending 
            access to clean and safe drinking water to more people.  
            Researchers have calculated the cost of such systems against 
            estimates for a central treatment plant, and found that POU 
            systems can be installed and maintained for less than half the 
            projected cost of centralized treatment.  Current California 
            regulations limit POU treatment to 3 years.  A PWS must apply 
            for Proposition 84 grant funding for centralized treatment, 
            but given the limited resources, may not receive funding 
            within the 3 year time limit.

            To be approved for POU treatment permit, applicants are 
            required to apply for centralized treatment funding from DPH, 
            which includes demonstration that the cost of centralized 
            treatment is not economically feasible, based on current water 
            bills and MHI of the community.  This demonstration includes, 
            according to the Loch Haven Mutual Water Company, "onerous 
            requirements for a complex economic analysis requiring each 








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            homeowner to disclose family income."  

           2)SDWA Allows POU Treatment:   Federal requirements establish a 
            national basis for implementing a POU or POE treatment 
            strategy, as a less-costly alternative to centralized 
            treatment.  To ensure the protection of public health, Section 
            1412(b) (4) (E) (ii) of the SDWA regulates the design, 
            management, and operation of POU and POE treatment units.  The 
            SDWA provides that: 

             a)   POU treatment may not be used as a treatment technique 
               for microbial contaminant or an indicator of microbial 
               contaminant.

             b)   POU and POE units must be owned, controlled, and 
               maintained by the PWS or by a contractor hired by the PWS 
               to ensure proper operation and maintenance of the devices 
               and compliance with MCLs.  The PWS retains final 
               responsibility for the quality and quantity of the water 
               provided to the service community and must closely monitor 
               all contractors.  Further, the PWS may not delegate its 
               responsibility for the operation and maintenance of 
               installed POU or POE devices to homeowners as part of a 
               compliance strategy.

             c)   POU and POE units must have mechanical warnings to 
               automatically notify customers of operational problems.  
               Each POU or POE treatment device installed as part of a 
               compliance strategy must be equipped with a warning device 
               (e.g., alarm, light, etc.) that will alert users when their 
               unit is no longer adequately treating their water.  
               Alternatively, units may be equipped with an automatic 
               shut-off mechanism to meet this requirement.

             d)   If the American National Standards Institute (ANSI) has 
               issued product standards for a specific type of POU or POE 
               treatment unit, then only those units that have been 
               independently certified according to these standards may be 
               used as part of a compliance strategy. 

           3)DPH Emergency POU Regulations  : In 2010-11, CPDH adopted 
            Interim POU and POE Regulations (CCR Title 22, Chapter 15, 
            Articles 2.5 and 2.7) that closely follow federal POU 
            regulations, with additional guidelines for economic 
            feasibility testing.  This economic analysis requires that the 








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            community water system provide to DPH information 
            demonstrating the estimated cost of centralized treatment in 
            relation to the MHI of the community and average water bills. 

           4)Prior Legislation  :  

            AB 1540 (Committee on Health), Chapter 298, Statutes of 2009.  
            This bill updated California drinking water laws to maintain 
            California's federally designated authority to implement a 
            drinking water program that conforms to the federal SDWA.  The 
            SDWA allows a PWS to use POU devices for water treatments to 
            meet drinking water standards.  AB 1540 allows POU and POE 
            devices under California law. 

            AB 2515 (V. Manuel Pérez) Chapter 601, Statutes of 2010.  This 
            bill provided an expedited process for DPH to establish 
            criteria for use of POU water treatment devices and authorizes 
            DPH to award grants for POE and POU treatment systems, 
            provided that the water system serves a severely disadvantaged 
            community and that the grant meets other existing 
            requirements.

           5)Related Current Legislation  : 

            SB 962 (Anderson) would expand the authorization to use 
            POU/POE treatment systems, as specified above, from 200 
            service connections to public water systems with up to 2,500 
            service connections and would extend the effective date of the 
            emergency regulations from January 1, 2014 to January 1, 2016. 
             This bill will be heard in the Senate Committee on 
            Environmental Quality on April 23rd, 2012.

            AB 2539 (Nielsen) would require DPH to accept a water 
            treatment device certification issued by an agency of another 
            state, a certification body accredited by an accreditation 
            body that is a member of the International Accreditation Forum 
            or by the federal government.  This bill was scheduled to be 
            heard in the Assembly Committee on Health on April 17th, 2012, 
            but was canceled at the author's request. 

           6)Committee Questions:  

              a)   Is POU treatment a viable long-term solution?   While POU 
               treatment was originally intended as a temporary solution 
               to water quality problems, US EPA has expanded variances to 








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               allow permanent utilization of POU treatment as an 
               affordable option for small systems.  Although POU 
               treatment is accepted by US EPA as a cost-effective 
               treatment solution for small water systems, does it provide 
               the same protection to drinking water quality as 
               centralized treatment? 

              b)   Why 20 Service Connections?   Current law allows 
               emergency POU/POE treatment for systems of 200 connections 
               or less.  If the US EPA has expanded variances to allow 
               small water systems to use POU treatment as a more 
               affordable, long-term solution, should California follow 
               suit?  According to the February 2012 draft SDWRF priority 
               list, there are many other projects in "very small" water 
               districts for which centralized treatment is not 
               economically feasible.  In contrast, will allowing 
               long-term POU treatment be a disincentive for later 
               consolidation or continued improvements to the system? 

              c)   Is a "very small" water system capable of compliance?   
               In order to be obtain approval for POU/POE treatment, the 
               PWS must complete economic assessment of centralized 
               treatment, including (but not limited to) the cost of 
               equipment, design, construction, monitoring, operation, 
               maintenance, pilot treatment studies, development of a 
               treatment strategy, and compliance reporting.  In addition 
               to water quality testing already being performed, POU 
               treatment would require an employee of the PWS to inspect 
               and maintain the systems.  Will a PWS of 20 connections or 
               less have adequate resources or staff to comply with these 
               requirements? 


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Loch Haven Mutual Water Company

           Opposition 
           
          None on File
           

          Analysis Prepared by  :    Dharia McGrew / E.S. & T.M. / (916) 








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