BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: AB 954
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|Author: |Mathis and Alejo |
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|Version: |7/6/2015 |Hearing |7/15/2015 |
| | |Date: | |
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|Urgency: |Yes |Fiscal: |Yes |
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|Consultant:|Rachel Machi Wagoner |
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SUBJECT: Water and Wastewater Loan and Grant Program.
ANALYSIS:
Existing law:
1)Under the federal Clean Water Act:
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 financial assistance for water quality
projects.
2)Under the federal Safe Drinking Water Act (SDWA):
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a) Establishes federal standards for contaminants in
drinking water,
b) Authorizes states to enter into primacy agreements
with the federal United States Environmental Protection
Agency (US EPA) to enforce SDWA if the state establishes
drinking water standards that are at least as stringent as
those developed by US EPA, as required by SDWA.
c) Establishes the Safe Drinking Water State Revolving
Fund (SDWSRF) to offer financial assistance for safe
drinking water projects.
3)Under the Porter-Cologne Water Quality Control Act,
a) Establishes the State Water Resources Control Board
(SWRCB) and Regional Water Quality Control Boards to
regulate and protect water quality in California.
b) Establishes the State Water Pollution Control
Revolving Fund to, among other things, implement the
federal CWSRF program.
4)Transferred the Drinking Water Program and the Safe Drinking
Water State Revolving Fund (SDWSRF) from the Department of
Public Health to SWRCB effective July 1, 2014.
5)Under the California Safe Drinking Water Act,
a) Requires SWRCB to protect the public from
contaminants in drinking water.
b) Establishes the SDWSRF which is partially
capitalized by federal contributions from the federal
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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.
6)Proposition 1, the Water Quality, Supply, and Infrastructure
Improvement Act of 2014 (Prop. 1), includes $260 million, upon
appropriation by the Legislature to the SWRCB 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.
7)AB 91 (Budget Committee, Chapter 1, Statutes of 2015)
appropriates $19 million to the SWRCB, 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 rehabilitation.
This bill:
1)Appropriates $10 million dollars from the General Fund to a
newly-established program at SWRCB to provide 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.
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d) Installing a water treatment system if the groundwater
doesn't meet primary or secondary drinking water standards.
1)Requires eligible loan applicants to:
a) Own their own home and be unable to obtain a
conventional loan.
b) 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.
c) 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 SWRCB any unused grant funds.
2)Provides that due to drought the act is an urgency statute in
order to provide eligible households with access to safer,
cleaner, and more reliable drinking water and wastewater
treatment.
Comments
1) Purpose of Bill. The author states that this bill creates a
SWRCB 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 believes 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,
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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.
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.
2) General Fund Appropriation. This legislation identifies an
unfunded water quality need for Californians and appropriates
$10 million General Fund for this purpose. Should this
legislation be approved by the Senate Environmental Quality
Committee, the Senate Appropriations Committee will need to
consider if this is an appropriation expenditure of General
Fund and if the revenue is available to fund this new
program.
SOURCE: Author
SUPPORT:
California State Association of Counties
California League of Conservation Voters
Clean Water Action
Community Water Center
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Environmental Justice Coalition for Water
Friends of the River
Kern County Board of Supervisors
Leadership Counsel for Justice and Accountability
Planning and Conservation League
Tulare County Board of Supervisors
Wholly H2O
OPPOSITION:
None received
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