BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1130| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1130 Author: Roth (D) Amended: 4/21/14 Vote: 27 - Urgency SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-0, 4/2/14 AYES: Hill, Gaines, Hancock, Jackson, Leno, Pavley NO VOTE RECORDED: Fuller, Vacancy, Vacancy SENATE JUDICIARY COMMITTEE : 7-0, 4/8/14 AYES: Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Drinking water: County Water Company of Riverside water system: liability SOURCE : Eastern Municipal Water District Elsinore Valley Municipal Water District DIGEST : This bill provides limited immunities from liability relating to the reconstruction of a public water system in Riverside County for the Eastern Municipal Water District (EMWD), the Elsinore Valley Municipal Water District (EVMWD), the Western Municipal Water District, and the Metropolitan Water District of Southern California. Those immunities only apply if specific conditions are met, including that water provided to the water system must meet or exceed federal and state drinking water quality standards. CONTINUED SB 1130 Page 2 ANALYSIS : Existing law: 1.Under the California Safe Drinking Water Act: A. Requires the Department of Public Health (DPH) to regulate drinking water and to enforce the federal Safe Drinking Water Act and other related regulations. B. Authorizes DPH to delegate regulatory authority for small water systems (fewer than 200 service connections) to local primacy agencies (counties). C. Establishes the Safe Drinking Water State Revolving Fund and continuously appropriates the Fund to DPH to provide grants or revolving fund loans for the design and construction of projects for public water systems that will enable suppliers to meet safe drinking water standards. 1.Declares the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. All relevant state agencies, shall consider this state policy when revising, adopting, or establishing policies, regulations, and grant criteria when those policies, regulations, and criteria are pertinent to the uses of water, as specified. 2.Under the Municipal Water District Law of 1911, provides for the formation of municipal water districts, grants to those districts specified powers and permits a district to acquire, control, distribute, store, spread, sink, treat, purify, recycle, recapture, and salvage any water for the beneficial use of the district, its inhabitants, or the owners of rights to water in the district. This bill: 1.Exempts the EVMWD, the EMWD, the Western Municipal Water District, and the Metropolitan Water District of Southern California from liability, as prescribed, for claims by past or existing County Water Company of Riverside customers or those who consumed water provided through the County Water Company of Riverside water system prior to and during the CONTINUED SB 1130 Page 3 interim operation period, as specified. 2.Prohibits the immunity from liability from being construed either to relieve any water district, water wholesaler, or any other entity from compliance with drinking water standards, impair any cause of action or proceeding brought by specified public entities, or impair claims alleging the taking of property without compensation. 3.Requires the interim operation period to last until permanent replacement facilities are accepted by the EVMWD and the EMWD with the concurrence of DPH, or December 31, 2015, whichever occurs first. 4.Requires DPH to extend the interim operation period for up to three successive one-year periods at the request of the EVMWD and the EMWD, as prescribed. 5.Makes legislative findings and declarations as to the necessity of a special statute with regard to the customers of the County Water Company of Riverside. Background The County Water Company of Riverside, a small privately owned, non-mutual water company, currently owns a well which is the sole water supply serving 140 homes in western Riverside County. This well is operationally unreliable and fails to meet state drinking water standards. It is also functionally unable to provide emergency life-saving fire flows if needed. On several occasions this well has been totally unable to pump water, leaving residents without a supply of piped water for extended periods of time. Residents within the County Water Company system have been placed in the situation wherein the water they drink, cook, and bathe in comes from a roadside tanker or bottles purchased from the store. Neighboring public water providers have stepped up to provide customers of the County Water Company with emergency water service until a long-term solution can be established. However, interim assistance and the development of temporary solutions can open the existing public agencies up to liabilities stemming CONTINUED SB 1130 Page 4 from past actions of the County Water Company. Riverside County health officials have asked two adjacent local water agencies for assistance in providing both short-term and long-term solutions to the health and safety risks the residents face as a result of this failing water system. Such assistance comes with the risk of liability and potential costs to the existing ratepayers of the agencies offering assistance. In an effort to protect existing public water agency customers, while working to secure the health and safety of the County Water Company of Riverside residents, EMWD and EVMWD are seeking to establish a narrowly crafted bill that will provide legal protections that will allow the public agencies to move forward with assisting those families in crisis. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 4/28/14) Eastern Municipal Water District (co-source) Elsinore Valley Municipal Water District (co-source) California Special Districts Association County of Riverside Mesa Water District Metropolitan Water District of Southern California Western Municipal Water District ARGUMENTS IN SUPPORT : According to the author's office, this bill will allow the public agencies of EMWD and EVMWD to extend water service and provide the necessary assistance to the 140 service connections currently being served by the County Water Company of Riverside, without being held liable for past administrative or operational deficiencies of the existing water system, including litigation costs. RM:nl 4/28/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED SB 1130 Page 5 CONTINUED