BILL ANALYSIS Ó
AB 1588
Page 1
(Without Reference to File)
ASSEMBLY THIRD READING
AB
1588 (Mathis and Alejo)
As Amended May 31, 2016
2/3 vote. Urgency
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Water |13-0 |Levine, Bigelow, | |
| | |Dababneh, Dodd, | |
| | |Gordon, Cristina | |
| | |Garcia, Gomez, | |
| | |Harper, Lopez, | |
| | |Mathis, Medina, | |
| | |Olsen, Salas | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
AB 1588
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| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Jones, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Wagner, Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Transfers $10 million General Fund 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 counties to fund water and wastewaster facilities
improvements. Specifically, this bill:
1)Requires SWRCB to establish a program of low-interest loans
and grants for counties to provide funds to eligible
applicants for specified water or wastewater improvements.
2)Establishes the Water and Wastewater Loan and Grant Fund
(LGF). Transfers $10 million General Fund to the LGF for
appropriation by the Legislature to the SWRCB for the purposes
of the bill.
3)Allows SWRCB to adopt guidelines for administering the program
exempt from the Administrative Procedures Act (APA). Requires
SWRCB to develop guidelines to apportion funds among the
counties.
4)Allows a county to apply to SWRCB for funds to award grants
and/or loans to residents within its jurisdiction.
5)Requires counties receiving LGF to annually provide specified
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information to the board regarding projects and funding
recipients.
6)Requires eligible loan applicants to meet the following
specified criteria:
a) Requires loans to be secured by a mortgage on
the residence and repaid within 20 years in accordance
with terms established by SWRCB. Limits the loan
interest rate to 1%. Requires loan recipients to
maintain homeowners insurance during the life of the
loan.
b) Allows counties to enter into contracts with
private financial institutions to provide loans as
specified.
1)Requires eligible grant recipients to meet the following
specified criteria:
a) Requires grant recipients to repay the county
in full if the recipient sells the residence less than
five years from signing the grant agreement. Requires
the grant recipient to repay the county any unused
grant funds.
b) Exempts funding received from this program
from certain requirements of the law that authorize
the SWRCB to order consolidations and service
extensions. Specifically, the provisions that prevent
residents from receiving any future water-related
state grant funding until written consent to
consolidate or extend service is received.
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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.
1)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):
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
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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
(State Water Board) 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 SDWSRF from the
Department of Public Health to the State Water Board effective
July 1, 2014.
5)Under the California Safe Drinking Water Act:
a) Requires the State Water Board to protect the public
from contaminants in drinking water.
b) 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
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Committee:
1)Transfers $10 million General Fund to the newly created LGF
for appropriation by the Legislature to the SWRCB.
2)Unknown annual costs, likely in the $500,000 to $800,000
range, for SWRCB to administer the program (General Fund) over
three years.
COMMENTS: According to the author, 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. 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. Unfortunately, there are
very few resources available to individual homeowners who are
reliant on their own groundwater wells.
It is the policy of the state that every human being has the
right to safe, clean, affordable, and accessible water adequate
for human consumption, cooking, and sanitary purposes. 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.
This bill provides for assistance on private property similar to
what exists for public systems.
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Last year, in response to the multi-year drought, and lack of
safe, clean water in multiple communities throughout the state,
the Legislature authorized the SWRCB to require water systems
serving disadvantaged communities with unreliable and unsafe
drinking water to consolidate with or receive service from
public water systems with safe, reliable, and adequate drinking
water. This bill exempts eligible grant or loan recipients from
sanctions designed to encourage consolidation and delivery of
water in disadvantaged communities. This exemption may conflict
with the Legislature's intent in enacting the consolidation
provisions.
Analysis Prepared by:
Ryan Ojakian / W., P., & W. / (916) 319-2096
FN: 0003313