BILL NUMBER: AB 1527 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 26, 2014
AMENDED IN SENATE JUNE 9, 2014
AMENDED IN ASSEMBLY APRIL 9, 2014
AMENDED IN ASSEMBLY MARCH 17, 2014
INTRODUCED BY Assembly Member Perea
JANUARY 17, 2014
An act to amend Section 116326 116760.70
of the Health and Safety Code, and to amend Section
75125 of, and to add Section 75129.5 to, the Public Resources
Code, relating to public water systems.
LEGISLATIVE COUNSEL'S DIGEST
AB 1527, as amended, Perea. Public water systems:
drinking water. Safe Drinking Water State Revolving
Fund.
Existing law, the Safe Drinking Water State Revolving Fund Law of
1997, establishes the Safe Drinking Water State Revolving Fund to
provide grants or revolving fund loans for the design and
construction of projects for public water systems that will enable
those systems to meet safe drinking water standards. Existing law,
operative July 1, 2014, requires the State Water Resources Control
Board to implement this law pursuant to the adoption of a policy
handbook. Existing law, operative on July 1, 2014, and repealed as of
January 1 of the next calendar year occurring after the board
provides notice to the Legislature and the Secretary of State and
posts notice on its Internet Web site that the board has adopted a
policy handbook, requires the board to establish a priority list of
proposed projects to be considered for funding.
This bill would require the board to give priority to funding the
consolidation of public water systems based upon a service review
developed by a local agency formation commission.
Existing law, known as 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, administering programs
to fund improvements and expansion of small community water systems
using specified priorities. Existing law requires the department to
encourage the consolidation of small community water systems that
serve disadvantaged communities if consolidation will help the
affected agencies and the state meet specified goals. Existing law
allows funding of studies regarding the feasibility of consolidating
2 or more community water systems, at least one of which is a small
community water system that serves a disadvantaged community, and
requires the department to give funding priority to projects that
involve the physical restructuring of 2 or more community water
systems, as specified, when it is shown that the consolidation would
further specified goals.
This bill would require the department, in administering programs
to fund improvements and expansions of small community water systems
and other water systems, as specified, to promote service delivery
alternatives that improve efficiency and affordability of
infrastructure and service delivery, as specified.
The Safe Drinking Water, Water Quality and Supply, Flood Control,
River and Coastal Protection Bond Act of 2006, an initiative measure,
provides funding for safe drinking water, water quality and supply,
flood control, natural resource protection, and park improvements.
Existing law establishes the Strategic Growth Council and
appropriates $500,000 from the funding provided by the initiative to
support the council and its activities. Existing law requires the
council to manage and award grants and loans to support the planning
and development of sustainable communities, as specified.
This bill would require the council to manage and award financial
assistance to a city, county, local agency formation commission,
special district, nonprofit organization, or joint powers authority
or joint powers agency for the preparation, planning, and
implementation of a public water system consolidation, merger, or
extension of services project for the purposes of promoting water
conservation, and would require that the financial assistance be
provided from available moneys pursuant to a specified provision of
the bond act described above.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 116760.70 of the
Health and Safety Code is amended to read:
116760.70. (a) The board, after public notice and opportunity for
comment, shall, from time to time, establish a priority list of
proposed projects to be considered for funding under this chapter. In
doing so, the board 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 board 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 board 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 board 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 board shall carry out the intent of the
Legislature pursuant to subdivisions (f) to (i), 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.
(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 board may consider the applicant's eligibility for
funding based on either the old or new priority list.
(f) The board 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 board 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 board shall adopt an
Intended Use Plan and provide notice of the Intended Use Plan,
criteria, and priority list not less than 30 days before the adoption
of the Intended Use Plan. 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.
(h) The board shall give priority funding to the consolidation of
public water systems based upon a service review developed by a local
agency formation commission pursuant to Section 56430 of the
Government Code.
(h)
(i) 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.
(i)
(j) This section shall become operative on July 1,
2014, and is repealed as of January 1 of the next calendar year
occurring after the board provides notice to the Legislature and the
Secretary of State and posts notice on its Internet Web site that the
board has adopted a policy handbook pursuant to Section 116760.43.
SECTION 1. It is the intent of the Legislature
to encourage local agency formation commissions to focus on the
consolidation, merger, or extension of public water systems as
appropriate, especially those located in disadvantaged communities,
by seeking financial assistance in order to perform the necessary
service reviews and other appropriate studies.
SEC. 2. Section 116326 of the Health and Safety
Code is amended to read:
116326. (a) In administering programs to fund improvements and
expansions of small community water systems and, pursuant to
subdivision (b), other water systems, the department shall do all of
the following:
(1) Give priority to funding projects in disadvantaged
communities.
(2) Promote service delivery alternatives that improve efficiency
and affordability of infrastructure and service delivery, including,
but not limited to, the consolidation of governmental agencies,
consolidation of water systems, and the extension of services, in and
to disadvantaged communities, where service delivery options will
help affected agencies, communities, and the state to meet two or
more of the following goals:
(A) Improvement in the quality of water delivered.
(B) Improvement in the reliability of water delivery.
(C) Reduction in the cost of drinking water for ratepayers.
(3) Pursuant to paragraph (2) of subdivision (a), for a project to
be considered for funding, require that feasibility studies
performed prior to a construction project include studies of service
delivery alternatives that improve efficiency and affordability of
capital improvements and service delivery, if at least one of the
potentially affected agencies serves, or would serve by way of an
extraterritorial service extension, a disadvantaged community, unless
the department makes a written determination that the service
delivery alternatives are not feasible under the circumstances. In
making this determination, the department shall do all of the
following:
(A) Review and consider the determinations and recommendations
made by the affected local agency formation commission within the
previous five calendar years in any of the following:
(i) A special study conducted pursuant to Section 56378 of the
Government Code.
(ii) A sphere of influence study conducted pursuant to Section
56425 of the Government Code.
(iii) A service review conducted pursuant to Section 56430 of the
Government Code.
(B) Consult with the executive officer of the affected local
agency formation commission to determine whether any circumstances
have changed since the studies and review conducted pursuant to
subparagraph (A) were completed or if there is any additional
information that would assist the department in its determination.
(C) Review and consider the conclusions and recommendations of
other local and regional studies designed to develop and identify
regional solutions for drinking water delivery.
(4) If it is shown that an alternative service delivery option
will further the goals of paragraph (2) of subdivision (a), fund
construction projects that include the alternative service delivery
option, unless the department makes a written determination that the
alternative service delivery option is not feasible under the
circumstances.
(b) If an applicant submits an application that includes a service
delivery alternative that furthers the goals specified in paragraph
(2) of subdivision (a), the applicant need not be a small community
water system and the department may increase priority of the
application.
SEC. 3. Section 75125 of the Public Resources
Code is amended to read:
75125. The council shall do all of the following:
(a) Identify and review activities and funding programs of member
state agencies that may be coordinated to improve air and water
quality, improve natural resource protection, increase the
availability of affordable housing, improve transportation, meet the
goals of the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), encourage sustainable land use planning, and revitalize
urban and community centers in a sustainable manner. At a minimum,
the council shall review and comment on the five-year infrastructure
plan developed pursuant to Article 2 (commencing with Section 13100)
of Chapter 2 of Part 3 of Division 3 of the Government Code and the
State Environmental Goals and Policy Report developed pursuant to
Section 65041 of the Government Code.
(b) Recommend policies and investment strategies and priorities to
the Governor, the Legislature, and to appropriate state agencies to
encourage the development of sustainable communities, such as those
communities that promote equity, strengthen the economy, protect the
environment, and promote public health and safety, consistent with
subdivisions (a) and (c) of Section 75065.
(c) Provide, fund, and distribute data and information to local
governments and regional agencies that will assist in developing and
planning sustainable communities.
(d) Manage and award grants and loans to support the planning and
development of sustainable communities, pursuant to Sections 75127,
75128, 75129, and 75129.5. To implement this subdivision, the council
may do all of the following:
(1) Develop guidelines for awarding financial assistance,
including criteria for eligibility and additional consideration.
(2) Develop criteria for determining the amount of financial
assistance to be awarded. The council shall award a revolving loan to
an applicant for a planning project, unless the council determines
that the applicant lacks the fiscal capacity to carry out the project
without a grant. The council may establish criteria that would allow
the applicant to illustrate an ongoing commitment of financial
resources to ensure the completion of the proposed plan or project.
(3) Provide for payments of interest on loans made pursuant to
this article. The rate of interest shall not exceed the rate earned
by the Pooled Money Investment Board.
(4) Provide for the time period for repaying a loan made pursuant
to this article.
(5) Provide for the recovery of funds from an applicant that fails
to complete the project for which financial assistance was awarded.
The council shall direct the Controller to recover funds by any
available means.
(6) Provide technical assistance for application preparation.
(7) Designate a state agency or department to administer technical
and financial assistance programs for the disbursing of grants and
loans to support the planning and development of sustainable
communities, pursuant to Sections 75127, 75128, 75129, and 75129.5.
(e) (1) No later than July 1, of each year, provide a report to
the Legislature that shall include, but is not limited to, all of the
following:
(A) A list of applicants for financial assistance.
(B) Identification of which applications were approved.
(C) The amounts awarded for each approved application.
(D) The remaining balance of available funds.
(E) A report on the proposed or ongoing management of each funded
project.
(F) Any additional minimum requirements and priorities for a
project or plan proposed in a grant or loan application developed and
adopted by the council pursuant to subdivision (c) of Section 75126.
(2) A report submitted pursuant to paragraph (1) shall be
submitted in accordance with Section 9795 of the Government Code.
SEC. 4. Section 75129.5 is added to the Public
Resources Code, to read:
75129.5. To support the planning and development of sustainable
communities, the council shall manage and award financial assistance
to a city, county, local agency formation commission, special
district, nonprofit organization, or joint powers authority or joint
powers agency, if at least one of the parties to the joint powers
agreement qualifies as an eligible applicant, for the preparation,
planning, and implementation of a public water system consolidation,
merger, or extension of services project for the purposes of
promoting water conservation. The financial assistance provided
pursuant to this section shall be funded from moneys made available
pursuant to subdivision (c) of Section 75065. The council shall give
priority to funding projects proposed by a disadvantaged community.