BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: AB 1588
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|Author: |Mathis and Alejo |
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|Version: |6/15/2016 |Hearing |6/29/2016 |
| | |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: transfers $10 million from the General Fund to a
newly created fund, and requires 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 from the 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
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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
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.
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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.
Background
1) Privately owned property is not eligible under CWSRF or
SDWSRF. 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.
Comments
1) Purpose of Bill. 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.
The author states that 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
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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.
2) General Fund Appropriation. This legislation identifies an
unfunded water quality need for Californians and appropriates
$10 million from the 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. AB 954 (Mathis, 2015), is substantially similar to
this bill and was held on the Senate suspense file.
Additionally, the Assembly Appropriations has identified
$700,000 to $800,000 administration costs for SWRCB to
administer this program annually. Should this legislation
pass, the Legislature should be prepared to address this need
in the 2017-2018 and subsequent budgets.
Related/Prior Legislation
AB 954 (Mathis) of 2015 was held in the Senate Appropriations
Committee. This bill is substantially similar to AB 954. The
difference between the two bills is the process by which the
SWRCB will establish the programs and reporting requirements
under the programs to the SWRCB.
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AB 91 (Committee on Budget, Chapter 1, Statutes of 2015),
appropriates $19 million to 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.
AB 1471 (Rendon, Chapter 188, Statutes of 2014), placed
Proposition 1, a $7.545 billion general obligation bond for
water-related projects and programs on the November 4, 2014,
ballot where it passed with 67% of the vote.
AB 964 (Huffman), 2011, sought to improve water quality by financing
the installation of onsite sewer and septic improvements on private
property including the conversion of a property from a septic system
to community sewer collection and treatment service. AB 964 was
later gutted and amended into a water rights bill concerning Small
Irrigation Registrations after the federal Environmental Protection
Agency interpreted private property improvements to be ineligible
for CWSRF money.
SOURCE: Author
SUPPORT:
Association of California Water Agencies
California Food Policy Advocates
California Association of Realtors
Clean Water Action
Community Water Center
El Quinto Sol De America
Environmental Working Group
Kings River Conservation District
Kings River Water Association
Mission Springs Water District
Pacific Water Quality Association
Trust for Public Land
OPPOSITION: None received
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