Amended in Assembly July 7, 2015

Amended in Senate April 16, 2015

Senate BillNo. 552


Introduced by Senator Wolk

February 26, 2015


An act tobegin delete add Section 116325.5 toend deletebegin insert amend Sections 116681 and 116682 ofend insert the Health and Safety Code, relating to water.

LEGISLATIVE COUNSEL’S DIGEST

SB 552, as amended, Wolk. Public water systems: disadvantaged communities:begin delete drinking water standards.end deletebegin insert consolidation or extension of service.end insert

begin insert

Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems, and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines “disadvantaged community” to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.

end insert
begin insert

This bill would allow a community to be a “disadvantaged community” if the community is in a mobilehome park even if it is not in an unincorporated area or served by a mutual water company. The bill would limit the authority of the state board to order consolidation or extension of service only with regard to a disadvantaged community.

end insert
begin insert

The act requires the state board, before ordering consolidation or extension of service, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.

end insert
begin insert

This bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would require any domestic well owner, instead of an affected resident, within the consolidation or extended service area who does not provide written consent to be ineligible for future water-related grant funding from the state.

end insert
begin insert

The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Unities Commission for water corporations subject to the commission’s jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.

end insert
begin insert

This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value, without regard to whether the system is a water corporation subject to the commission’s jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the extension of service to the area.

end insert
begin delete

Existing law, the California Safe Drinking Water Act, requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health, including, but not limited to, conducting research, studies, and demonstration programs relating to the provision of a dependable, safe supply of drinking water, enforcing the federal Safe Drinking Water Act, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies. Existing law requires the state board to ensure that all public water systems are operated in compliance with the act.

end delete
begin delete

This bill would require, by January 1, 2017, the state board to develop a report identifying specific funding and enforcement mechanisms necessary to ensure disadvantaged communities have water systems that are in compliance with state and federal drinking water standards. The bill would require the report to identify specific legislative and administrative actions necessary to bring disadvantaged communities into compliance with safe drinking water standards.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 116681 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert

3

116681.  

The following definitions shall apply to this section
4and Sections 116682 and 116684:

5(a) “Adequate supply” means sufficient water to meet residents’
6health and safety needs.

7(b) “Affected residence” means a residencebegin insert within a
8disadvantaged community that isend insert
reliant on a water supply that is
9either inadequate or unsafe.

10(c) “Consistently fails” means a failure to provide an adequate
11supply of safe drinking water.

12(d) “Consolidated water system” means the public water system
13resulting from the consolidation of a public water system with
14another public water system, state small water system, or affected
15residences not served by a public water system.

16(e) “Consolidation” means joining two or more public water
17systems, state small water systems, or affected residences not
18served by a public water system, into a single public water system.

19(f) “Disadvantaged community” means a disadvantaged
20community, as defined in Section 79505.5 of the Water Code, that
21is in an unincorporatedbegin delete areaend deletebegin insert area, mobilehome park,end insert or is served
22by a mutual water company.

23(g) “Extension of service” means the provision of service
24through any physical or operational infrastructure arrangement
25other than consolidation.

P4    1(h) “Receiving water system” means the public water system
2that provides service to a subsumed water system through
3consolidation or extension of service.

4(i) “Safe drinking water” means water that meets all primary
5and secondary drinking water standards.

6(j) “Subsumed water system” means the public water system,
7state small water system, or affected residences not served by a
8public water system consolidated into or receiving service from
9the receiving water system.

10begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 116682 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
11amended to read:end insert

12

116682.  

(a) Where a public waterbegin delete system,end deletebegin insert systemend insert or a state
13small water system within a disadvantagedbegin delete community,end deletebegin insert communityend insert
14 consistently fails to provide an adequate supply of safe drinking
15water, the State Water Resources Control Board may order
16consolidation with a receiving water system as provided in this
17section and Section 116684. The consolidation may be physical
18or operational. The State Water Resources Control Board may also
19order the extension of service to an areabegin insert within a disadvantaged
20communityend insert
that does not have access to an adequate supply of safe
21drinking water so long as the extension of service is an interim
22extension of service in preparation for consolidation. The State
23Water Resources Control Board may set timelines and performance
24measures to facilitate completion of consolidation.

25(b) begin deletePrior to end deletebegin insertBefore end insertordering consolidation or extension of service
26as provided in this section, the State Water Resources Control
27Board shall do all of the following:

28(1) Encourage voluntary consolidation or extension of service.

29(2) Consider other enforcement remedies specified in this article.

30(3) Consult with, and fully consider input from, the relevant
31local agency formation commission regarding the provision of
32water service in the affected area, the recommendations for
33improving service in a municipal service review, and any other
34relevant information.

35(4) Consult with, and fully consider input from, the Public
36Utilities Commission when the consolidation would involve a
37water corporation subject to the commission’s jurisdiction.

38(5) Consult with, and fully consider input from, the local
39government with land use planning authority over the affected
P5    1area, particularly regarding any information in the general plan
2required by Section 65302.10 of the Government Code.

3(6) Notify the potentially receiving water system and the
4potentially subsumed water system, if any, and establish a
5reasonable deadline of no less than six months, unless a shorter
6period is justified, for the potentially receiving water system and
7the potentially subsumed water system, if any, to negotiate
8consolidation or another means of providing an adequate supply
9of safe drinking water.

10(A) During this period, the State Water Resources Control Board
11shall provide technical assistance and work with the potentially
12receiving water system and the potentially subsumed water system
13to develop a financing package that benefits both the receiving
14water system and the subsumed water system.

15(B) Upon a showing of good cause, the deadline may be
16extended by the State Water Resources Control Board at the request
17of the potentially receiving water system, potentially subsumed
18water system, or the local agency formation commission with
19jurisdiction over the potentially subsumed water system.

20(7) Obtain written consent from any domestic well owner for
21consolidation or extension of service. Anybegin delete affected residentend delete
22begin insert domestic well ownerend insert within the consolidation or extended service
23area who does not provide written consent shall be ineligible, until
24the consent is provided, for any future water-related grant funding
25from the state other than funding to mitigate a well failure, disaster,
26or other emergency.

27(8) begin insert(A)end insertbegin insertend insertHold at least one public meeting at the initiation of this
28process in a place as close as feasible to the affected areas. The
29State Water Resources Control Board shall make reasonable efforts
30to provide a 30-day notice of the meeting to the ratepayers, renters,
31and property owners to receive water service through service
32extension or in the area of the subsumed water system and all
33affected local government agencies and drinking water service
34providers. The meeting shall provide representatives of the
35potentially subsumed water system, affected ratepayers, renters,
36property owners, and the potentially receiving water system an
37opportunity to present testimony. The meeting shall provide an
38opportunity for public comment.

begin insert

39(B) An initial public meeting shall not be required for a
40potentially subsumed area that is served only by domestic wells.

end insert

P6    1(c) Upon expiration of the deadline set by the State Water
2Resources Control Board pursuant to paragraph (6) of subdivision
3(b), the State Water Resources Control Board shall do the
4following:

5(1) Consult with the potentially receiving water system and the
6potentially subsumed water system, if any.

7(2) Conduct a public hearing, in a location as close as feasible
8to the affected communities.

9(A) The State Water Resources Control Board shall make
10reasonable efforts to provide a 30-day notice of the hearing to the
11ratepayers, renters, and property owners to receive water service
12through service extension or in the area of the subsumed water
13system and to all affected local government agencies and drinking
14water service providers.

15(B) The hearing shall provide representatives of the potentially
16subsumed water system, affected ratepayers, renters, property
17owners, and the potentially receiving water system an opportunity
18to present testimony.

19(C) The hearing shall provide an opportunity for public
20comment.

21(d) begin deletePrior to end deletebegin insertBefore end insertordering consolidation or extension of
22service, the State Water Resources Control Board shall find all of
23the following:

24(1) The potentially subsumed water system has consistently
25failed to provide an adequate supply of safe drinking water.

26(2) All reasonable efforts to negotiate consolidation or extension
27of service were made.

28(3) Consolidation of the receiving water system and subsumed
29water system or extension of service is appropriate and technically
30and economically feasible.

31(4) There is no pending local agency formation commission
32process that is likely to resolve the problem in a reasonable amount
33of time.

34(5) Concerns regarding water rights and water contracts of the
35subsumed and receiving water systems have been adequately
36addressed.

37(6) Consolidation or extension of service is the most effective
38and cost-effective means to provide an adequate supply of safe
39drinking water.

P7    1(7) The capacity of the proposed interconnection needed to
2accomplish the consolidation is limited to serving the current
3customers of the subsumed water system.

4(e) Upon ordering consolidation or extension of service, the
5State Water Resources Control Board shall do all of the following:

6(1) As necessary and appropriate, make funds available, upon
7appropriation by the Legislature, to the receiving water system for
8the costs of completing the consolidation or extension of service,
9including, but not limited to, replacing any capacity lost as a result
10of the consolidation or extension of service, providing additional
11capacity needed as a result of the consolidation or extension of
12service, and legal fees. Funding pursuant to this paragraph is
13available for the general purpose of providing financial assistance
14for the infrastructure needed for the consolidation or extension of
15service and does not need to be specific to each individual
16consolidation project. The State Water Resources Control Board
17shall provide appropriate financial assistance for the infrastructure
18needed for the consolidation or extension of service. The State
19Water Resources Control Board’s existing financial assistance
20guidelines and policies shall be the basis for the financial
21assistance.

22(2) Ensure payment of standard local agency formation
23commission fees caused by State Water Resources Control
24Board-ordered consolidation or extension of service.

25(3) Adequately compensate the owners of a privately owned
26subsumed water system for the fair market value of the system as
27determined by the Public Utilities Commissionbegin delete for water
28corporations subject to the commission’s jurisdictionend delete
or the State
29Water Resources Controlbegin delete Board for all other water systems.end deletebegin insert Board.end insert

30(4) Coordinate with the appropriate local agency formation
31commission and other relevant local agencies to facilitate the
32change of organization or reorganization.

33(f) begin insert(1)end insertbegin insertend insertFor the purposes of this section, the consolidated water
34system shall not increase charges on existing customers of the
35receiving water system solely as a consequence of the consolidation
36or extension of service unless the customers receive a
37corresponding benefit.

begin insert

38(2) For purposes of this section, fees or charges imposed on a
39customer of a subsumed water system shall not exceed the cost of
P8    1consolidating the water system with a receiving system or the
2extension of service to the area.

end insert

3(g) Division 3 (commencing with Section 56000) of Title 5 of
4the Government Code shall not apply to the consolidation or
5extension of service required pursuant to this section.

begin delete
6

SECTION 1.  

The Legislature finds and declares all of the
7following:

8(a) An estimated 500 public water systems in disadvantaged
9communities rely on, and have to pay high rates for, sources of
10drinking water that do not meet state and federal safe drinking
11water standards.

12(b) Although funding sources are available to assist
13disadvantaged communities with needed capital improvements,
14these communities often lack governance infrastructure, technical
15expertise, and the ability to pay for the ongoing operations and
16maintenance costs necessary to continue to meet the state and
17federal drinking water standards.

18

SEC. 2.  

Section 116325.5 is added to the Health and Safety
19Code
, to read:

20

116325.5.  

(a) On or before January 1, 2017, the State Water
21Resources Control Board shall develop a report identifying specific
22funding and enforcement mechanisms necessary to ensure
23disadvantaged communities have water systems that are in
24compliance with state and federal drinking water standards.

25(b) The report shall identify specific legislative and
26administrative actions necessary to bring the disadvantaged
27communities into compliance with safe drinking water standards,
28including the following:

29(1) Mechanisms for identification of the specific issues and
30solutions for each community and any specific state or local
31authority that is necessary to address these issues.

32(2) Identification of available, and any recommended new,
33sources of revenue to fund ongoing operations and maintenance
34costs or any other costs associated with providing water at an
35affordable rate.

36(3) Other recommendations for specific actions or authorities
37necessary to address drinking water needs for these communities.

end delete


O

    97