BILL ANALYSIS Ó
AB 954
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
954 (Mathis) - As Amended May 5, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill appropriates $20 million GF to a newly created fund,
and requires the State Water Resources Control Board (SWRCB) to
implement a low-interest loan and grant pilot program for water
and wastewaster facilities and improvements until January 1,
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2026. Specifically, this bill:
1)Requires SWRCB to establish a pilot program of low-interest
loans and grants for local agencies to provide funds to
eligible applicants for any of the following:
a) Connecting to water or wastewater service.
b) Closing abandoned septic tanks or water wells to protect
health and safety.
c) Deepening an existing groundwater well.
d) Installing a water treatment system if the groundwater
doesn't meet primary or secondary drinking water standards.
1)Establishes the Water and Wastewater Loan and Grant Pilot
Program (Pilot Program) at the State Water Board with a Water
and Wastewater Loan and Grant Fund (LGF). Appropriates $20
million of General Fund into the LGF and allows moneys repaid
from any grant or loan under the Pilot Program to be deposited
in the fund as well as and any interest on those moneys.
2)Specifies that all loan or grant applicants must own their own
home and be unable to obtain a conventional loan. Requires
eligible loan applicants to be below the statewide median
income; demonstrate an ability to repay the loan which may
include having a co-signer; secure the loan on the home and
repay it within 20 years. Requires all eligible grant
recipients to have a household income that is less than 60% of
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the statewide median; repay the grant in full if the home is
sold less than five years from the date of the agreement; and,
repay the SWRCB any unused grant funds.
3)Requires the SWRCB to set interest rates under the pilot
program at 1% or less and allows the SWRCB to administer the
program through a private financial institution.
FISCAL EFFECT:
1)This bill appropriates $20 million GF.
2)Unknown costs, likely in the $600,000 to $800,000 range, for
SWRCB to administer the program (GF)
COMMENTS:
1)Purpose. According to the author, while catastrophic drought
continues to ravage the state, Californians who are reliant on
groundwater wells need access to low-interest financing and
grants to undertake necessary repairs to provide safer,
reliable drinking water.
The author adds that this bill is needed because while there
are many state and federal programs that provide financial
assistance, such as low-interest loans and grants, to
communities to undertake water and wastewater infrastructure
improvement projects there are very few resources available to
individual homeowners who are reliant on their own groundwater
wells.
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Many individual homeowners who rely upon private groundwater
wells are often in disadvantaged communities and economically
distressed areas, and may not be able to afford conventional
private financing to undertake vital water supply, water
quality, and wastewater improvements
2)Emergency Drought Package. The Governor's May Revision
includes $35 million GF and special funds for SWRCB to provide
grants for emergency drinking water projects. The author may
wish to expand upon this proposal to achieve the goals of this
bill.
3)Other Considerations. The author may wish to provide SWRCB
with an exemption from the Administrative Procedures Act to
reduce administrative costs and ensure any funds are disbursed
in an expedited manner.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081