BILL NUMBER: SB 1292	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 18, 2014

INTRODUCED BY   Senator Hueso
    (   Coauthors:   Assembly Members 
 Alejo   and Salas   ) 

                        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 amended, Hueso. Safe Drinking Water State Revolving
Fund.
   Existing law, the California Safe Drinking Water Act, requires the
State  Department of Public Health   Water
Resources Control Board  to administer provisions relating to
the regulation of drinking water to protect public health. The
 department's   board'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 
 board  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   , as added by Section 104 of
Chapter 35 of the Statutes of   2014, 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 board 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
board 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 board 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 board 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 board.
   (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 board 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.
   (f) 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.    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.