BILL ANALYSIS Ó
AB 1588
Page 1
GOVERNOR'S VETO
AB
1588 (Mathis and Alejo)
As Enrolled August 30, 2016
2/3 vote
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|ASSEMBLY: |76-0 |(June 2, 2016) |SENATE |39-0 |(August 17, |
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|ASSEMBLY: |80-0 |(August 23, | | | |
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Original Committee Reference: W., P. & W.
SUMMARY: To the extent funds are available, authorizes the
State Water Resources Control Board (SWRCB) to implement
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low-interest loan and grant programs for counties and qualified
nonprofit organizations, as defined, to fund water and
wastewater facilities improvements. Specifically, this bill:
1)Permits the SWRCB to use funds out of $15 million appropriated
in the Budget Act of 2016 (SB 826 (Leno), Chapter 23, Statues
of 2016) to fund the low-interest loan and grant programs or
any other funding source consistent with the purposes of this
chapter. Requires the SWRCB to use reasonable and feasible
efforts to secure local matching funds for the purposes of
funding projects pursuant to this chapter.
2)Authorizes the SWRCB to establish a program of low-interest
loans and grants for counties and qualified nonprofit
organizations to provide funds to eligible applicants for
specified water or wastewater improvements.
3)Allows the SWRCB to adopt any guidelines it determines are
necessary to administer the program and exempts a guideline
adopted for this chapter from the Administrative Procedures
Act.
4)Allows a county or qualified nonprofit organization to apply
to the SWRCB for funds to award grants and/or loans to
residents of the county.
5)Requires counties or qualified nonprofit organizations
receiving a grant or a loan under this chapter to annually
provide specified information to the board regarding projects
and funding recipients.
6)Requires eligible loan applicants to meet the following
specified criteria:
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a) Requires loans to be secured by a mortgage on the
residence and repaid within 20 years in accordance with
terms established by the SWRCB. Limits the loan interest
rate to 1%. Requires loan recipients to maintain
homeowners insurance during the life of the loan.
b) Allows counties or qualified nonprofit organizations to
enter into contracts with private financial institutions to
provide loans consistent with the purposes of this chapter.
7)Requires eligible grant recipients to meet the following
specified criteria:
a) Requires grant recipients to repay the county or
qualified nonprofit organization 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 or qualified nonprofit organization any unused grant
funds.
The Senate amendments: Permit instead of requires, the SWRCB to
create the low-interest loan and grant programs. Eliminate a
$10 million General Fund Transfer and replaces with the ability
to access funds from a $15 million appropriation in the 2016
Budget Act, to create the low-interest loan and grant programs.
Define and allows qualified nonprofit organizations in addition
to counties, to apply to the SWRCB to administer low-interest
loan and grant programs. Permit the SWRCB to enter into
agreements to advance funds to counties or qualified nonprofit
organizations. Remove an urgency clause from the bill.
EXISTING LAW:
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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.
2)Establishes the Clean Water State Revolving Fund (CWSRF) to
offer financial assistance for water quality projects.
3)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 the SDWA if the state establishes
drinking water standards that are at least as stringent as
those developed by the US EPA, as required by the SDWA.
c) Establishes the Safe Drinking Water State Revolving Fund
(SDWSRF) to offer financial assistance for safe drinking
water projects.
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4)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.
5)Transferred the Drinking Water Program and the SDWSRF from the
Department of Public Health to the State Water Board effective
July 1, 2014.
6)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: Unknown.
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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 safe, 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 allows for assistance on private property similar to
what exists for public systems.
GOVERNOR'S VETO MESSAGE:
To the Member of the California State Assembly:
I am returning Assembly Bill 1588 without my signature.
This bill codifies the existing low-interest loans and grants
being provided for local agencies, counties and qualified
non-profits for drinking water or wastewater treatment projects.
Unfortunately, there were some technical errors that would
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inadvertently limit the drought assistance we are currently
providing.
I am directing the Water Board to work with the author to
revised legislation next year.
Sincerely
Edmund G. Brown Jr.
Analysis Prepared by:
Ryan Ojakian / W., P., & W. / (916) 319-2096
FN: 0005057