BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 2056
                                                                       

                       SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                          Senator S. Joseph Simitian, Chairman
                               2011-2012 Regular Session
                                            
           BILL NO:    AB 2056
           AUTHOR:     Chesbro
           AMENDED:    April 26, 2012
           FISCAL:     Yes               HEARING DATE:     July 2, 2012
           URGENCY:    No                CONSULTANT:       Rachel Wagoner
           
         SUBJECT  :    PUBLIC WATER SYSTEMS:  POINT OF USE AND POINT OF ENTRY 
                       TREATMENT

            SUMMARY  :    
           
            Existing law  ,

           1) Under the federal Safe Drinking Water Act (SDWA), requires the 
              federal Environmental Protection Agency (US EPA) to set 
              standards for drinking water quality and oversee the states, 
              localities, and water suppliers who implement those standards. 
               California has authority over drinking water, delegated by US 
              EPA.

           2) Under the California Safe Drinking Water Act, establishes the 
              drinking water program within the Department of Public Health 
              (DPH) to regulate public drinking water systems.  (Health and 
              Safety Code §116275 et seq.).

           3) Authorizes point-of-use (POU) and point-of-entry (POE) devices 
              for water treatment to meet drinking water standards as 
              specified by state and federal law.  Regulations adopted by 
              DPH must include requirements governing the use of POU and POE 
              treatment by public water systems in lieu of centralized 
              treatment where it can be demonstrated that centralized 
              treatment is not immediately economically feasible and is 
              limited to:  a) less than 200 service connections, b) use 
              allowed under the SDWA and its implementing regulations, and 
              c) water systems that have submitted pre-applications with DPH 
              for funding to correct the violations for which the POE and 
              POU treatment is provided.  (§116380).

           4) Prohibits DPH from issuing a permit allowing POU treatment 









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              unless DPH determines after conducting a public hearing in the 
              community served by the public water system that there is not 
              substantial community opposition to the devices.  The issuance 
              of a permit must be limited to no more than 3 years or until 
              funding for centralized treatment is available, whichever is 
              first.  (§116552).

            This bill  expands the authorization to use POU treatment as a 
           permanent solution for public water systems with up to 20 service 
           connections by requiring DPH to allow continued use of POU 
           treatment beyond the 3-year maximum (#4 above).  If DPH requires 
           a demonstration of economic feasibility for public water systems 
           serving 20 or less residential connections, the applicant may use 
           "available census tract data to demonstrate median household 
           income."
            
           COMMENTS
              
            1) Purpose of the Bill  .  According to the author, "This is a 
              district bill that focuses on the Loch Haven Mutual Water 
              District in Sonoma County."    According to Alan Kafton, a 
              member of the Loch Haven Mutual Water Company and sponsor of 
              AB 2056, the Loch Haven Mutual Water Company supplies 19 rural 
              homes located on 3 or more acres and much of the water is used 
              for irrigation.  The sponsor indicates that, according to DPH, 
              POU systems are inconsistent with §116270 of the state's Safe 
              Drinking Water Act, which provides that the Act "is intended 
              to ensure that the water delivered by public water systems of 
              this state shall at all times be pure, wholesome, and potable. 
               This ÝAct] provides the means to accomplish this objective." 

           According to the sponsor, a centralized system will cost at least 
              $250,000, which is over $13,000 per household, POE systems 
              cost about $5,000 per household, and POU systems cost less 
              than $1,000 per household.

            2) Drinking water contamination in California  .  According to DPH, 
              98% of the population of California served by community water 
              systems receives drinking water that meets all primary 
              drinking water standards.  However, for the nearly  of a 
              million Californians without clean water, contaminants such as 
              nitrates, hexavalent chromium and arsenic threaten public 










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              drinking water safety.  The most impacted populations are 
              located in disadvantaged communities and are served by small 
              water systems that have difficulty finding the sufficient 
              resources for maintenance and operation or to undertake 
              repairs and upgrades.  DPH currently utilizes funds from the 
              Safe Drinking Water State Revolving Fund and Propositions 50 
              and 84 bond funds to assist in drinking water system upgrades. 
               While these funds have provided and continue to provide 
              significant assistance in the improvement of water systems, 
              there is a greater need than funding available.  The US EPA as 
              well as DPH are working to explore how to reach critical 
              drinking water standards while also acknowledging the need for 
              affordability of conveyance, especially in these small 
              communities. 

              In acknowledgement of the strain that small water systems face 
              when trying to upgrade systems to meet necessary water quality 
              improvements, AB 2515 (V. M. Perez) Chapter 601, Statutes of 
              2010, was enacted as a stop gap to provide a temporary measure 
              while a permanent, safer and more effective centralized 
              treatment could be devised for these small disadvantaged 
              communities.  

            3) Point of Use/ Point of Entry Treatment  .  A POU treatment 
              device is any unit installed on a single water faucet or 
              bubbler that changes the water quality. POE treatment device 
              is any unit installed that changes the water quality of all 
              potable water entering a building.  POE and POU treatment 
              devices such as carbon filters are sometimes installed to 
              enhance the aesthetic quality (taste and odor) of potable 
              water supplied by a local water system.  In other cases, POE 
              and POU treatment devices are installed to meet drinking water 
              standards in place of centralized treatment.

            4) Limitations of POU/POE treatment  .  While POU/POE treatment has 
              advanced in recent years it does not provide equivalent 
              treatment to centralized treatment.   
            
               a)    Multiple contaminants  .  POU/POE treatment technologies 
                 can provide sufficient treatment for one specific 
                 contaminant.  However, they are not designed to treat the 
                 complex myriad contaminants that may be in drinking water.  










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                 So while it may address the primary contaminant of concern, 
                 other contaminants may not be sufficiently removed. 
                 Additionally, contaminants in water affect the water 
                 quality individually and cumulatively.  POU/POE treatment 
                 systems are not designed to address the cumulative impacts 
                 to water quality.

               b)    Adjustment for quality  .  Water quality levels are not 
                 static.  Centralized treatment systems are regularly 
                 monitored and the treatment is adjusted as changes in the 
                 water quality and levels of the range of contaminants 
                 change.  POU/POE treatment systems cannot be adjusted as 
                 the water quality changes, so their efficacy may vary.

               c)    POU does not treat all water  .  Because POU treatment 
                 systems attach to the faucet, their treatment is limited to 
                 water that comes through that faucet.  Showers, washing 
                 machines and other faucets, such as those in bathrooms, 
                 will not be treated.  POU treatment devices are not 
                 appropriate in households where the treated contaminant 
                 presents health risks when inhaled, such as volatile 
                 organic compounds (VOCs) or hexavalent chromium that may be 
                 released into the air and inhaled, especially in warm water 
                 like a shower because in those households only the drinking 
                 water would be treated.  With many contaminants that could 
                 pose an additional risk, especially in homes with children, 
                 these systems are meant as a very temporary stopgap measure 
                 until centralized water treatment can be provided.  

               d)    Lack of Accountability and monitoring  .  Centralized 
                 treatment facilities are regularly inspected and monitored 
                 to ensure sufficient maintenance by either DPH or the 
                 county environmental health jurisdictions.  There is no 
                 built in inspection, monitoring or maintenance when water 
                 systems use POU/POE treatment.  Ensuring proper working 
                 order to POU/POE systems is crucial.  If filters are not 
                 changed when needed, some systems can build up contaminants 
                 in the system and release them into the water in high 
                 concentrations.  

                 Who is expected to make sure that the systems are always 
                 working properly?  










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           5) Safeguards against expanding a second best treatment system  .  
              Improving California's drinking water quality is crucially 
              important.  As solutions for meeting drinking water standards 
              to protect public health are contemplated, it is important to 
              ensure that solutions that compromise standards are not used.  
              Expanded use of POU/POE treatment devices essentially creates 
              two classes for drinking water in California - those that get 
              centralized treatment that is monitored and accountable for 
              meeting drinking water standards and those that get a lower 
              standard of quality and accountability.  Senate Committee on 
              Environmental Quality members expressed the following concerns 
              when hearing SB 962 (Anderson) in April relating to POU/POE 
              treatment:  
            
              a)    What communities within California are in need of this 
                 expansion and how many service connections are appropriate 
                 for allowing POU/POE treatment as a temporary solution 
                 while the water system develops a permanent centralized 
                 treatment solution?

              b)    Why are the water systems within these communities 
                 unable to meet the water quality standard and why do they 
                 not have the financial capability and reserve to do the 
                 necessary upgrades and maintenance to the system?

              c)    How can we prevent communities from expanding before 
                 building the appropriate centralized treatment 
                 infrastructure?

              d)    How can water systems that use POU/POE treatment as a 
                 temporary solution ensure that the necessary capital outlay 
                 to build the sufficient centralized treatment system is 
                 available and have the necessary financial support to 
                 maintain and upgrade that system as necessary?
            
            Senator Anderson amended SB 962 to address committee concerns by 
           requiring a capital outlay plan for centralized treatment prior 
           to approval, prohibiting the growth of the water system to 
           include any additional service connections prior to having 
           sufficient centralized treatment, and requiring an audit by DPH 
           to determine why the water system does not have the fiscal 










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           stability to conduct the necessary upgrades.  
            
            6) Related legislation.    AB 1540 (Committee on Health) Chapter 
              298, Statutes of 2009, adds the authorization for POU 
              treatment in lieu of centralized treatment for public water 
              systems with less than 200 service connections under specified 
              conditions, requires DPH to adopt regulations to include 
              requirements governing the use of POU and POE treatment by 
              public water systems in lieu of centralized treatment, as 
              specified, prohibits the department from issuing or amending a 
              permit to allow the use of POU treatment unless the department 
              determines, after a public hearing, that there is no 
              substantial community opposition, and limits the issuance of 
              that permit to the lesser of 3 years or until funding for 
              centralized treatment is available, whichever comes first.  

            AB 2515 (V.M. Perez) Chapter 601, Statutes of 2010, provides an 
              expedited process for DPH to establish criteria for the use of 
              POU water treatment devices and authorizes the 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.  

            SB 962 (Anderson) of 2012 expands the authorization for use of 
              POU/POE devices from 200 service connections to 500 service 
              connections and adds various requirements for approval of use 
              of the devices.  
            
            7) Outstanding issues  .  
            
               a)    Why 20 service connections  ?  What is the demonstrated 
                 need to allow for permanent use of POU/POE devices for 20 
                 service connections or less?

                 Is it appropriate to expand this authorization, knowing 
                 that there are water quality risks, when there has not been 
                 successful implementation of the program and there has not 
                 been an opportunity to evaluate the use of this treatment 
                 technology on that scale?

               b)    Why census tract data to demonstrate financial need  ?  AB 
                 2056 allows for census tract data to be used in lieu of 










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                 financial data from the specific property owners within the 
                 water system.  The census tract contains many properties 
                 that are not within the water district.  Why does this bill 
                 aim to include financial data that is not relevant to 
                 determining the financial need of the water system?

            8) Contrary to previous legislative action  .  The Senate 
              Environmental Quality Committee and the Legislature have 
              acknowledged a need to allow for the use of this lesser 
              technology in cases where small, disadvantaged communities 
              need temporary relief while they develop a permanent 
              centralized treatment facility.

              This bill runs directly contrary to previous actions taken by 
              the Senate Environmental Quality Committee and the Legislature 
              by allowing permanent use of these devices and by allowing for 
              vague disclosure of financial information to demonstrate 
              financial need to use this lesser technology.

              This bill is also likely to encourage development of small 
              communities without adequate infrastructure in an effort to 
              save money at the cost of public health protection - while 
              also encouraging development in more isolated and rural areas. 
               

            SOURCE  :        Alan Kafton, member, Loch Haven Mutual Water 
                          Company  

           SUPPORT  :  None on file.
            
           OPPOSITION  :    California Rural Legal Assistance Foundation, 
                          Clean Water Action, Community Water Center