BILL ANALYSIS Ó AB 434 Page 1 Date of Hearing: April 14, 2015 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Luis Alejo, Chair AB 434 (Eduardo Garcia) - As Amended April 6, 2015 SUBJECT: Drinking water: point-of-entry and point-of-use treatment SUMMARY: Repeals the sunset date on emergency regulations governing the permitted use of point-of-entry (POE) and point-of-use (POU) treatment by public water systems (PWS) in lieu of centralized treatment. Specifically, this bill: 1) Deletes the requirement that a PWS pre-apply for funding to correct the violations for which the POE and POU treatment is provided as a condition of using a POE or POU treatment device. 2) Makes the emergency regulations adopted by the California Department of Public Health (CDPH) before January 1, 2014 operative, and requires that they remain in effect until repealed or amended by the State Water Resources Control Board (Water Board). 3) Strikes the requirement that a POE or POU permit be AB 434 Page 2 limited to not more than three years or until funding for centralized treatment is available. 4) Deletes references to regulations as "emergency" that would be obsolete if aforementioned policy changes are enacted. 5) Establishes this as an urgency act based on the necessity to provide quality drinking water as soon as possible. EXISTING LAW: 1) Establishes the California Safe Drinking Water Act (SDWA). (Health & Safety Code (H&S) § 116270, et seq.) 2) Establishes the Safe Drinking Water State Revolving Fund to provide financial assistance for community water systems to achieve compliance with the SWDA. (H&S §116760.30) 3) Requires CDPH to adopt emergency regulations for permitting the use of POE and POU water treatment in lieu of centralized treatment for PWS that that have less than 200 service connections; for which usage is allowed under the federal SDWA; and that have pre-applied for funding to correct the maximum contaminant level (MCL) violations for which POE and POU treatment is provided. (H&S § 116380) AB 434 Page 3 4) Prohibits CDPH from issuing a permit to a PWS or amending a valid existing permit to allow the use of POU treatment unless CDPH determines, after conducting a public hearing in the community served by the PWS, that there is no substantial community opposition to the installation of POU treatment devices. (H&S § 116552) 5) Vests the Water Board with all of the authority, duties, powers, purposes, functions, responsibilities, and jurisdiction of the State Department of Public Health and its predecessor to enforce the SDWA. (H&S § 116271) FISCAL EFFECT: Unknown. COMMENTS: Need for the bill: According to the author, "AB 434 authorizes the State Water Resources Control Board (SWRCB) to adopt regulations governing point-of-use (POU) and point-of-entry (POE) filtration treatment by public water systems in lieu of centralized treatment where it can be demonstrated that centralized treatment is not immediately economically feasible. The regulations will apply to water systems with 200 connections or less. "This bill attempts to remediate the issue of arsenic contamination in drinking water. In the Coachella Valley, arsenic is a naturally occurring element found in many drinking water wells at levels ranging from 12 to 91 parts per billion (ppb). The Environmental Protection Agency established a level of 10 ppb as the Maximum Contaminant Level for arsenic. It has been proven that consuming unsafe levels of arsenic increases the probability of cancer, skin problems, and circulatory system AB 434 Page 4 issues. "Many of the families most impacted by arsenic contamination in their drinking water are predominantly farmworkers that live in the unincorporated part of the east Coachella Valley that is vastly dedicated to agriculture. In 1992, the Farm Labor Housing Protection Act enabled farm owners to house up to 12 farmworkers without many local permits or licenses. Consequently, this allowed for the establishment of many small mobilehome parks throughout the eastern Coachella Valley, an area that lacks access to centralized infrastructure, such as water and sewer. Because of this, when arsenic was identified as an issue, point-of-use systems were identified as a solution to help people access clean water immediately, despite a lack of infrastructure." What's the difference: POU vs. POE vs. Centralized treatments: POU treatment is a treatment device applied to a single tap for the purpose of reducing contaminants in drinking water at that tap. When used, a PWS is required to install a POU device that will treat only the water intended for direct consumption, typically installed at a single tap such as the kitchen sink. Faucets without POU devices can be used for cleaning or washing but cannot be used to provide drinking and cooking water. POE treatment is applied to the drinking water entering a house or building for the purpose of reducing contaminants in the drinking water distributed throughout the house or building. Centralized treatment treats all of the water produced by the PWS. AB 434 Page 5 Funding availability for POE/POU treatment: The Safe Drinking Water State Revolving Fund (DWSRF) is a self-perpetuating financial assistance program administered by the Water Board. The purpose of the DWSRF is to provide financial assistance for the planning/design and construction of drinking water infrastructure projects that are needed to achieve or maintain compliance with federal and state drinking water statutes and regulations. POE and POU treatment devices are eligible for DWSRF funding. The Water Board has previously funded seven POE/POU projects, and one is still in progress. Those eight projects were funded by DWSRF and Prop 84 funds. According to Pueblo Unido, the non-profit responsible for the installation of point-of-use systems in the Coachella Valley, there are currently five mobile home parks (home to approximately 300 residents) which have been identified as immediately needing water treatment systems. Pueblo Unido is currently using reverse osmosis POU technology in the eastern Coachella Valley, which costs around $300 per device, to treat arsenic contamination. These POU units have two filters, a membrane, and a sediment filter, which cost $85, and $25, respectively. So, using the mobile home parks in Coachella Valley as an example, the average annual project costs for a community to install POU treatment devices would be around $123,500. The United States Environmental Protection Agency (US EPA) has estimated that California will need more than $40 billion dollars in drinking water infrastructure improvements over the next 20 years. Consistent with that, according to Pueblo Unido, due to the changing hydrology and geology of the Coachella Valley aquifer, it is anticipated that the number of residents grappling with arsenic contamination is ever-growing. POE and POU treatment devices are recognized as affordable, low-cost interim treatment options for communities with contaminated drinking water until more comprehensive drinking water AB 434 Page 6 infrastructure can be financed and constructed. Safe Drinking Water Program Transfer: With the transition of the SDWP from CDPH on July 1, 2014, the Water Board now has the primary enforcement authority to enforce federal and state safe drinking water acts, and is responsible for the regulatory oversight of about 8,000 PWS throughout the state. Therefore, as of July 1, 2014, all SDWP regulations and administrative actions were vested with the Water Board, and are fully effective and enforceable unless and until readopted, amended, or repealed by the Water Board. AB 434 provides appropriate technical code cleanup to clarify the Water Board's statutory authority to adopt or revise regulations governing POE and POU treatment devices. Background on the law: The water quality challenges facing small PWS were a major focus of the 1996 Amendments to the federal SDWA. One way Congress sought to help systems meet these challenges was by explicitly allowing systems to install POU and POE treatment devices to achieve compliance with some of the MCLs established in the National Primary Drinking Water Regulations (Section 1412(b)(4)(E)(ii) of SDWA). At the state level, AB 1540 (Statutes of 2009, Chapter 298) allowed POU devices for water treatment to meet drinking water standards to conform the state SDWA with the federal SDWA. California law, before 2009, did not allow the use of these devices. By allowing POE and POU treatment for water treatment to meet drinking water standards, California ensured continued compliance with federal law, and authorized these affordable water treatment systems for communities until they can finance larger water quality infrastructure projects. AB 434 Page 7 REGISTERED SUPPORT / OPPOSITION: Support Pueblo Unido Community Development Corporation - sponsor Coachella Valley Regional Water Management Group Coachella Valley Water District Comité Civico Del Valle Pacific Water Quality Association Pionetics Corporation Water Quality Association Opposition None on file AB 434 Page 8 Analysis Prepared by:Paige Brokaw / E.S. & T.M. / (916) 319-3965