BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1588|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: AB 1588
Author: Mathis (R) and Alejo (D), et al.
Amended: 8/16/16 in Senate
Vote: 27
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 6/29/16
AYES: Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 76-0, 6/2/16 - See last page for vote
SUBJECT: Water and Wastewater Loan and Grant Program
SOURCE: Author
DIGEST: This bill establishes a program to provide funding for
local agencies to offer low-interest loans and grants to
eligible applicants for drinking water or wastewater treatment
projects.
ANALYSIS:
Existing federal law:
1)Enacts the federal Clean Water Act which:
a) Establishes federal guidelines for surface water
quality protection.
b) Authorizes water quality programs; requires federal
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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)Enacts the federal Safe Drinking Water Act (SDWA) which:
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.
Existing state law:
1)Enacts the Porter-Cologne Water Quality Control Act which:
a) Establishes the State Water Resources Control Board
(SWRCB) and Regional Water Quality Control Boards to
regulate and protect water quality in California.
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b) Establishes the State Water Pollution Control
Revolving Fund to, among other things, implement the
federal CWSRF program.
2)Transfers 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.
3)Enacts the California Safe Drinking Water Act which:
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 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.
4)Includes, in Proposition 1, the Water Quality, Supply, and
Infrastructure Improvement Act of 2014 (Prop. 1), $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.
5)Appropriates under AB 91 (Budget Committee, Chapter 1,
Statutes of 2015) $19 million to the SWRCB, for grants and
direct expenditures for emergency drinking water projects,
including hauled water, bottled water, design and construction
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of connections to adjacent public water systems, new wells and
well rehabilitation.
This bill establishes a program to provide funding for local
agencies or qualified non-profits to offer low-interest loans
and grants to eligible applicants for drinking water or
wastewater treatment projects and authorizes a county or
qualified non-profit to apply to the board for a grant to award
loans or grants, or both, to residents of the county, as
prescribed.
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,
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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.
Related/Prior Legislation
AB 954 (Mathis, 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.
AB 91 (Committee on Budget, Chapter 1, Statutes of 2015),
appropriated $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
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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.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
According to the Senate Committee on Appropriations:
Cost pressures in the millions to fund the program (Water
Quality Control Fund).
Ongoing costs of $500,000 annually for five years (General
Fund) to the SWRCB to administer the grant program, if funded.
SUPPORT: (Verified8/15/16)
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: (Verified8/15/16)
None received
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ASSEMBLY FLOOR: 76-0, 6/2/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos,
Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh,
Dahle, Daly, Dodd, Eggman, Gallagher, Cristina Garcia, Eduardo
Garcia, Gatto, Gipson, Gomez, Gonzalez, Gray, Grove, Hadley,
Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer,
Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Bigelow, Frazier, Beth Gaines, Gordon
Prepared by:Rachel Machi Wagoner / E.Q. / (916) 651-4108
8/16/16 17:38:46
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