BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 552|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 552
          Author:   Wolk (D)
          Amended:  4/16/15  
          Vote:     21  

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  6-0, 4/29/15
           AYES:  Wieckowski, Gaines, Hill, Jackson, Leno, Pavley
           NO VOTE RECORDED:  Bates

           SENATE APPROPRIATIONS COMMITTEE:  5-0, 5/28/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NO VOTE RECORDED:  Bates, Nielsen

           SUBJECT:   Public water systems: disadvantaged communities:  
                     drinking water standardsPublic water systems:  
                     disadvantaged communities: drinking water standards.


          SOURCE:    Author


          DIGEST:  This bill requires the State Water Resources Control  
          Board (SWRCB) to report to the Legislature on recommendations  
          for solutions to the managerial, technical and maintenance fund  
          hurdle that small, disadvantaged communities face in building  
          and maintaining water treatment facilities and thereby obtaining  
          funding to do so.




          ANALYSIS:


          Existing law, under the California Safe Drinking Water Act:








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          1)Requires the SWRCB 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. 
          2)Requires the SWRCB to ensure that all public water systems are  
            operated in compliance with the act.

          This bill:  


          1) Requires, by January 1, 2017, the SWRCB 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. 


          2) Requires the report to identify specific legislative and  
             administrative actions necessary to bring disadvantaged  
             communities into compliance with safe drinking water  
             standards.


          Background

          Transfer of the Drinking Water Program.  SB 861 (Committee on  
          Budget and Fiscal Review, Chapter 35, Statutes of 2014)  
          transferred the Drinking Water Program from the California  
          Department of Public Health (DPH) to the SWRCB, giving the SWRCB  
          primary enforcement authority (primacy) to enforce federal and  
          state safe drinking water acts, and is responsible for the  
          regulatory oversight of about 8,000 public water systems  
          throughout the state.

          The 2014-15 Budget Act and SB 861 transferred $200.3 million ($5  
          million General Fund) and 291.2 positions for the administration  
          of the Drinking Water Program from the DPH to the SWRCB.  








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          The goal of Transferring the Drinking Water Program was to  
          achieve the following objectives:

          1)Establish a single water quality agency to enhance  
            accountability for water quality issues.

          2)Better provide comprehensive technical and financial  
            assistance to help communities, especially small disadvantaged  
            communities, address an array of challenges related to  
            drinking water, wastewater, water recycling, pollution,  
            desalination, and storm water.

          3)Improve the efficiency and effectiveness of drinking water,  
            groundwater, water recycling, and water quality programs.

          Safe Drinking Water Plan for California.  In 1993, the  
          California Department of Health Services (DHS) (now DPH)  
          submitted to the Legislature the report entitled, "Drinking  
          Water into the 21st Century: Safe Drinking Water Plan for  
          California" (1993 Plan).  In 1996, the Legislature enacted SB  
          1307 (Calderon, Chapter 755, Statutes of 1996) requiring a  
          periodic update of the original Plan. 


          DPH assembled a team of experts that conducted extensive reviews  
          and analyses, resulting in a draft plan that included an  
          overview of drinking water regulation, reviews and plans for  
          drinking water quality/monitoring and threats, treatment  
          technologies, funding aspects and financial assistance, and a  
          focus on the challenges faced by small drinking water systems. 


          Following the July 1, 2014 transition of the Drinking Water  
          Program to the SWRCB, the draft plan's recommendations and  
          implementation plan has been enhanced based on the synergies and  
          resources resulting from incorporation of the program into the  
          SWRCB.


          The Safe Drinking Water Plan for California includes the SWRCB's  
          assessment of the overall quality of the state's drinking water,  








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          the identification of specific water quality problems, an  
          analysis of the known and potential health risks that may be  
          associated with drinking water contamination in California, and  
          specific recommendations to improve drinking water quality.  The  
          final version of the plan is due to be released within the next  
          few months.

          The Water Quality, Supply, and Infrastructure Improvement Act of  
          2014 (Proposition 1).  Proposition 1, approved by the voters in  
          November, 2014, authorizes $7.12 billion in general obligation  
          bonds for state water supply infrastructure projects, such as  
          public water system improvements, surface and groundwater  
          storage, drinking water protection, water recycling and advanced  
          water treatment technology, water supply management and  
          conveyance, wastewater treatment, drought relief, emergency  
          water supplies, and ecosystem and watershed protection and  
          restoration.

          Clean, Safe and Reliable Drinking Water.  Proposition 1  
          authorizes $520 million for expenditures, grants and loans for  
          projects that improve water quality or help provide clean, safe,  
          and reliable drinking water to all Californians and provides  
          that the projects eligible for funding pursuant to this section  
          shall help improve water quality for a beneficial use.  The  
          purposes of this section are to:

          1) Reduce contaminants in drinking water supplies regardless of  
             the source of the water or the contamination.

          2) Assess and prioritize the risk of contamination to drinking  
             water supplies.

          3) Address the critical and immediate needs of disadvantaged,  
             rural, or small communities that suffer from contaminated  
             drinking water supplies, including, but not limited to,  
             projects that address a public health emergency.

          4) Leverage other private, federal, state, and local drinking  
             water quality and wastewater treatment funds.

          5) Reduce contaminants in discharges to, and improve the quality  
             of, waters of the state.








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          6) Prevent further contamination of drinking water supplies.

          7) Provide disadvantaged communities with public drinking water  
             infrastructure that provides clean, safe, and reliable  
             drinking water supplies that the community can sustain over  
             the long term.

          8) Ensure access to clean, safe, reliable, and affordable  
             drinking water for California's communities.

          9) Meet primary and secondary safe drinking water standards or  
             remove contaminants identified by the state or federal  
             government for development of a primary or secondary drinking  
             water standard.

          The funds are to be allocated as follows:

          1)$260 million shall be available for deposit into in the State  
            Water Pollution Control Revolving Fund Small Community Grant  
            Fund for grants for wastewater treatment projects.  Priority  
            shall be given to projects that serve disadvantaged  
            communities and severely disadvantaged communities, and to  
            projects that address public health hazards.  Projects may  
            include, but not be limited to, projects that identify, plan,  
            design, and implement regional mechanisms to consolidate  
            wastewater systems or provide affordable treatment  
            technologies.

          2)$260 million shall be available for grants and loans for  
            public water system infrastructure improvements and related  
            actions to meet safe drinking water standards, ensure  
            affordable drinking water, or both.  Priority shall be given  
            to projects that provide treatment for contamination or access  
            to an alternate drinking water source or sources for small  
            community water systems or state small water systems in  
            disadvantaged communities whose drinking water source is  
            impaired by chemical and nitrate contaminants and other health  
            hazards identified by the SWRCB.

          3)Specifies that at least 10% of the funds must be allocated for  
            severely disadvantaged communities and up to 15% of the funds  








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            must be allocated for technical assistance to disadvantaged  
            communities.

          Comments
          
          Purpose of Bill.  According to the author, "over one million  
          Californians still lack access to clean affordable drinking  
          water and wastewater treatment.  Many of these Californians live  
          in small communities with limited ability to finance  
          construction, operations and maintenance of drinking water and  
          wastewater facilities.  While Proposition 1 will help fund some  
          construction in these communities, there are still significant  
          technical, administrative, governance and long-term  
          affordability barriers to providing these Californians safe and  
          reliable water."

          The SWRCB's Safe Drinking Water Plan for California gives an  
          overview of drinking water regulation, reviews and plans for  
          drinking water quality/monitoring and threats, treatment  
          technologies, funding aspects and financial assistance, and a  
          focus on the challenges faced by small drinking water systems.   
          However, the plan does not have specific recommendations on how  
          to remedy one of the greatest barriers for small, disadvantaged  
          communities: the financial obstacle of meeting technical,  
          managerial and maintenance expenses.  Requiring SWRCB to report  
          to the Legislature with recommendations specifically addressing  
          this obstacle will assist the Legislature in developing  
          solutions for these communities.


          The author's background document states that there are likely  
          further amendments to this bill, as the author is working with a  
          broad group of stakeholders.  

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee:


           One-time costs of $280,000 from the Safe Drinking Water  








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            Account (special) to the board to create the required report.
           Unknown cost pressures, likely in the millions of dollars, to  
            the Safe Drinking Water Account (special) to implement the  
            report.


          SUPPORT:   (Verified5/28/15)


          California Catholic Conference, Inc.
          California Coastal Protection Network
          California Food Policy Advocates
          Clean Water Action
          Community Water Center
          Environmental Working Group
          Friends of the River
          Leadership Counsel for Justice and Accountability
          League of Women Voters
          National Association of Social Workers - California Chapter
          Rural Community Assistance Corporation
          Sierra Club California
          Valley CAN


          OPPOSITION:   (Verified5/28/15)


          None received


          Prepared by:Rachel Machi Wagoner / E.Q. / (916) 651-4108
          5/31/15 12:17:57


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