BILL NUMBER: SB 1292	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hueso

                        FEBRUARY 21, 2014

   An act to amend Section 116761.23 of the Health and Safety Code,
relating to drinking water, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1292, as introduced, Hueso.  Safe Drinking Water State
Revolving Fund.
   Existing law, 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. The
department's duties include, but are not limited to, conducting
research, studies, and demonstration programs relating to the
provision of a dependable, safe supply of drinking water, enforcing
the federal Safe Drinking Water Act, and adopting and enforcing
regulations.
   Existing law, the Safe Drinking Water State Revolving Fund Law of
1997, establishes the Safe Drinking Water State Revolving Fund, which
is continuously appropriated to the department for grants and
revolving fund loans for the design and construction of projects for
public water systems that will enable suppliers to meet safe drinking
water standards. Existing law sets the maximum grant to each
participating public water system for its share of the costs of the
construction at $3,000,000, except as provided.
   This bill would increase the maximum amount of a construction
grant award to $5,000,000 for a water system serving severely
disadvantaged communities. By authorizing the increased expenditure
of moneys in a continuously appropriated fund, this bill would make
an appropriation.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 116761.23 of the Health and Safety Code is
amended to read:
   116761.23.  (a) The maximum amount of a planning grant permitted
under this chapter for each participating public water system's share
of the costs of the planning, engineering studies, environmental
documentation, and design of a single project shall be no more than
five hundred thousand dollars ($500,000).
   (b) Unless the department approves an increase pursuant to this
subdivision, the maximum amount of a construction grant award
authorized under this chapter to each participating public water
system for its share of the cost of the construction of a single
project shall be no more than three million dollars ($3,000,000) 
, or no more than five million dollars ($5,000,000) for a water
system   serving a severely disadvantaged community  .
The department may approve an increase in the maximum amount for a
construction grant award authorized under this chapter so that the
maximum amount of the construction grant award does not exceed ten
million dollars ($10,000,000) only if the department makes all of the
following findings:
   (1)  (A)    A public water system that serves a
disadvantaged community has a defined project need that exceeds the
maximum grant amount of three million dollars ($3,000,000). 
   (B) A public water system that serves a severely disadvantaged
community has a defined project need that exceeds the maximum grant
amount of five million dollars ($5,000,000). 
   (2) The defined project has been bypassed in at least one funding
cycle due to a lack of funds.
   (3) The defined project is eligible for funding pursuant to the
program regulations.
   (4) The defined project represents the highest public health risk
among unfunded projects, as determined by the department according to
its standard criteria.
   (c) Total funding under this article for planning, engineering
studies, environmental documentation, project design, and
construction costs of a single project, whether in the form of a loan
or a grant, or both, shall be determined by an assessment of
affordability using criteria established by the department.
   (d) Subject to all other limitations of this chapter, a small
community water system or nontransient noncommunity water system,
owned by a public agency or private not-for-profit water company,
serving severely disadvantaged communities shall be eligible to
receive up to 100 percent of eligible project costs in the form of a
grant, to the extent the system cannot afford a loan as determined by
the department pursuant to Section 116761.20.
   (e) Subject to the availability of funds and the applicant's
ability to repay, an applicant may receive up to the full cost of the
project in the form of a loan bearing interest at the rate
established pursuant to subdivision (a) of Section 116761.65.