BILL ANALYSIS Ó
AB 954
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ASSEMBLY THIRD READING
AB
954 (Mathis)
As Amended June 2, 2015
2/3 vote. Urgency
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+----------------------|
|Water |15-0 |Levine, Bigelow, | |
| | |Dababneh, Dahle, | |
| | |Dodd, Beth Gaines, | |
| | |Cristina Garcia, | |
| | |Gomez, Harper, | |
| | |Lopez, Mathis, | |
| | |Medina, Rendon, | |
| | |Salas, Williams | |
| | | | |
|----------------+------+--------------------+----------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
AB 954
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| | | | |
| | | | |
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SUMMARY: Appropriates $10 million dollars to a newly-created fund
at the State Water Resources Control Board (State Water Board) to
provide low-interest loans and grants to eligible applicants for
water and wastewater. Specifically, this bill:
1)Makes findings including, but not limited to, the impacts of
drought and the need to establish a program to provide
assistance to individual homeowners who are reliant on their own
groundwater wells and may not be able to afford conventional
private loans to take care of vital water supply, water quality,
and wastewater improvements.
2)Requires the State Water Board to establish a pilot program of
low-interest loans and grants 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.
3)Allows the State Water Board to adopt regulations implementing
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the program and makes such regulations exempt from the
requirements of the California Administrative Procedures Act.
4)Establishes the Water and Wastewater Loan and Grant Program
(Program) at the State Water Board with a Water and Wastewater
Loan and Grant Fund (LGF).
5)Appropriates $10 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.
6)Specifies that all loan or grant applicants must own their own
home and be unable to obtain a conventional loan.
7)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.
8)Requires the State Water Board to set interest rates under the
pilot program at 1% or less and allows the State Water Board to
administer the program through a private financial institution.
9)Requires eligible grant applicants to: have a household income
that is less than 60% of 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 State Water Board any unused
grant funds.
10)Provides that due to drought the act is an urgency statute in
order to provide eligible households with access to safer,
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cleaner, and more reliable drinking water and wastewater
treatment.
EXISTING LAW:
1)Under the federal Water Pollution Control Act (Clean Water Act)
Amendments of 1972 and 1987:
a) Establishes federal guidelines for surface water quality
protection.
b) Authorizes water quality programs; requires federal
effluent limitations and state water quality standards;
requires permits for the discharge of pollutants into
navigable waters; provides enforcement mechanisms; and
authorizes funding for wastewater treatment works,
construction grants, and state revolving loan programs, as
well as funding to states and tribes for their water quality
programs.
c) Establishes the Clean Water State Revolving Fund (CWSRF)
to offer low interest financing agreements for water quality
projects.
2)Under the Porter-Cologne Water Quality Control Act, establishes
the State Water Pollution Control Revolving Fund to, among other
things, implement the federal CWSRF program.
3)Transferred the Safe Drinking Water Program and the Safe
Drinking Water State Revolving Fund (SDWSRF) from the Department
of Public Health to the State Water Board, effective July 1,
2014.
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4)Under the California Safe Drinking Water Act, requires the State
Water Board, in administering programs to fund improvements and
expansions of small community water systems, to give priority to
funding projects in disadvantaged communities and encourage the
consolidation of small community water systems that serve
disadvantaged communities in instances where consolidation will
help the affected agencies and the state to meet specified goals
5)Establishes the SDWSRF which is partially capitalized by federal
contributions from the federal Safe Drinking Water Act.
Specifies that the SDWSRF provide funding for public water
systems to correct deficiencies and problems that pose public
health risks and to meet safe drinking water standards.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
1)Appropriates $10 million (General Fund (GF)).
2)Unknown costs, likely in the $600,000 to $800,000 range for
SWRCB to administer the program (GF).
COMMENTS: This bill creates a State Water Board program to provide
water and waste water project grants and loans for owners of
private homes who cannot afford conventional loans for needed
water and wastewater improvements.
The author states that 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
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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. The
author highlights that many individual homeowners who rely upon
private groundwater wells are often in disadvantaged communities
and economically distressed areas, and so may not be able to
afford conventional private financing to undertake vital water
supply, water quality, and wastewater improvements
The CWSRF program provides low-interest loans and other financing
mechanisms for publicly-owned wastewater treatment facilities,
local sewers, sewer interceptors, water recycling facilities, and
storm water treatment facilities. The SDWSRF provides funding for
public water systems. But improvements to those parts of the
water and wastewater infrastructure that are on private property
such as wells, sewer laterals, or septic systems have not been
funded by the CWSRF or SDWSRF programs.
Proposition 1, the Water Quality, Supply, and Infrastructure
Improvement Act of 2014 (Prop. 1), includes $260 million, upon
appropriation by the Legislature to the State Water Board to be
placed in the CWSRF and used for grants for wastewater treatment
projects. Prop. 1 also includes another $260 million, upon
appropriation by the Legislature (recipient agency not specified)
for public water system infrastructure improvements and related
actions to meet safe drinking water standards, ensure affordable
drinking water, or both. But, again, the funding is focused on
the public water system or public agency solution, not the
individual homeowner's property.
AB 91 (Budget Committee), Chapter 1, Statutes of 2015 appropriates
$19 million to the State Water Board, for grants and direct
expenditures for emergency drinking water projects, including
hauled water, bottled water, design and construction of
connections to adjacent public water systems, new wells and well
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rehabilitation. However, these funds are only available until June
30, 2016, and are intended to address drought-related drinking
water emergencies or threatened emergencies as opposed to
long-term solutions.
Supporters state that there are no programs to provide assistance
to individual homeowners who rely on their own groundwater wells
and cannot afford conventional loans. Supporters advise that this
bill would bridge the gap by providing low-interests loans,
grants, or both to low-income homeowners to undertake vital water
supply, water quality, and wastewater treatment improvements.
There is not opposition on file.
Analysis Prepared by:
Tina Leahy / W., P., & W. / (916) 319-2096 FN:
0000841