BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 552| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 552 Page 2 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. SB 552 Page 3 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, SB 552 Page 4 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. SB 552 Page 5 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 SB 552 Page 6 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 SB 552 Page 7 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 **** END **** SB 552 Page 8