BILL NUMBER: SB 1263 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 8, 2016
INTRODUCED BY Senators Wieckowski and Pavley
FEBRUARY 18, 2016
An act to amend Section 116540 of, and to add Section 116527 to,
the Health and Safety Code, and to add Section 106.4 to the
Water Code, relating to drinking water.
LEGISLATIVE COUNSEL'S DIGEST
SB 1263, as amended, Wieckowski. Public water system: permits.
(1) Existing law, the California Safe Drinking Water Act, imposes
on the State Water Resources Control Board various responsibilities
and duties relating to providing a dependable, safe supply of
drinking water. The act prohibits a person from operating a public
water system unless he or she first submits an application, including
a technical report, to the state board and receives a permit, as
specified. The act requires the state board, upon determination that
the application is complete, to make a specified investigation, and
allows the state board to impose permit conditions, requirements for
system improvements, and time schedules as the state board deems
necessary to ensure an affordable, reliable, and adequate supply of
water at all times that is pure, wholesome, and potable. The
act prohibits a public water system that was not in existence on
January 1, 1998, from being granted a permit unless the system
demonstrates that the water supplier possesses adequate financial,
managerial, and technical capability to ensure the delivery of pure,
wholesome, and potable drinking water, and requires that this
prohibition apply to any change of ownership of a public water
system. The act provides that a person who knowingly
makes a false statement or representation in a report submitted,
maintained, or used for purposes of compliance with the act may be
punished as a misdemeanor.
This bill would, commencing January 1, 2017, prohibit an
application for a permit for a new public water system from being
deemed complete unless the applicant has submitted
would require an application for a permit for a proposed
new public water system to first submit a preliminary technical
report to the state board, as specified, and would allow
the state board to impose technical, financial, or managerial
requirements on the permit. The bill would prohibit a public water
system not in existence on January 1, 1998, from being granted a
permit unless the public water system demonstrates that the water
supplier also possesses adequate water rights to ensure the delivery
of pure, wholesome, and potable drinking water, and would specify
that the prohibition applies to any change in ownership of the public
water system, including the consolidation of a public water system.
board at least 6 months before initiating construction
of any water-related improvement, as defined. Because a misstatement
in the report could be a crime under the provision described above,
this bill would impose a state-mandated local program by expanding
the scope of a crime. The bill would allow the state
board to direct the applicant to undertake additional
discussion and negotiation with certain existing public water systems
the board determines have the technical, managerial, and financial
capacity to provide an adequate and reliable supply of domestic water
to the service area of the proposed new public water
system, as specified, and would require an applicant to comply before
submitting an application for a permit to operate a system and would
prohibit the application from being deemed complete unless the
applicant has complied. The bill would authorize the board to
deny the permit if the state board determines that
the service area of the public water system can be served by one or
more currently permitted public water systems.
systems or that the proposed new public water system may lack
the technical, managerial, or financial capacity to sustainably
provide affordable, safe drinking water in the reasonably foreseeable
future, as prescribed.
(2) Existing law allows the state board to delegate primary
responsibility for the administration and enforcement of the act
within a county to a local health officer if certain criteria are
met. Existing law requires that the local primacy agency be empowered
with all of the authority granted to the state board over the
specified public water systems.
This bill would prohibit a local primacy agency from issuing a
permit to operate a public water system without the
concurrence of the state board. The bill would require, for a
proposed public water system that would be regulated by a local
primacy agency, the applicant to also submit a copy of the
preliminary technical report to the state board.
(3) Existing law declares the established 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. Existing law requires a city or county that
determines a project, as defined, is subject to the California
Environmental Quality Act to identify certain water systems that may
supply water for the project and to request those public water
systems to prepare and approve a specified water supply assessment.
Under existing law, if no public water system is identified, the city
or county is required to prepare and approve the water supply
assessment. Existing law provides that if, as a result of its
assessment, the public water system or city or county concludes that
its water supplies are, or will be, insufficient, the public water
system or city or county is required to provide its plans for
acquiring additional water supplies, as prescribed.
This bill would prohibit a city, including a charter city, or a
county from issuing a building permit for the construction of a new
residential development where a source of the water supply is water
transported by a water hauler, bottled water, a water-vending
machine, or a retail water facility. By imposing new duties on a city
or county in connection with the issuance of a building permit, the
bill would impose a state-mandated local program.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) There are over 7,500 public water systems in California. The
vast majority of these systems provide a reliable supply of safe
drinking water. However, there are hundreds of smaller public water
systems that consistently fail to provide a reliable supply of safe
drinking water to their customers. Many failing public water systems
were created without the necessary technical, managerial, or
financial capacity to be sustainable in the long term in view of
water supply uncertainties. These uncertainties can be created by
effects on water quality and quantity, global climate change,
migration of groundwater contamination, the establishment of new
drinking water standards, and other factors that are known to
significantly erode a system's capacity.
(b) Failing public water systems disproportionately affect
disadvantaged communities who are least able to afford to address the
conditions that led to the failure.
(c) The proliferation of new, unsustainable public water systems
also may undermine the state's human right to water policy.
(d) Therefore, it is the policy of the state to discourage the
establishment of new, unsustainable public water systems when there
is a feasible alternative.
SECTION 1. SEC. 2. Section 116527 is
added to the Health and Safety Code, to read:
116527. (a) Commencing January 1, 2017, an application for a
permit for a new public water system under this chapter shall not be
deemed complete unless the applicant has complied with the
requirements of this section.
(b) The applicant shall submit a preliminary technical report to
the state board six months before submission of an application for a
building permit for any improvement in the service area of a proposed
new public water system or six months before initiating construction
of any facility or component of a new public water system, whichever
is earliest. This report shall include all of the following:
116527. (a) As used in this section,
"water-related improvement" includes, but is not limited to, a water
pipe, a water pump, or drinking water infrastructure.
(b) (1) Before a person submits an application for a permit for a
proposed new public water system, the person shall first submit a
preliminary technical report to the state board at least six months
before initiating construction of any water-related improvement.
(2) In order to assist in expediting the permitting process, a
person that is considering submitting an application for a permit for
a proposed new public water system is encouraged, but is not
required, within seven days of an application for a building permit
for any water-related improvement to submit the preliminary technical
report to the city or county.
(3) For a proposed public water system that would be regulated by
a local primacy agency, the applicant shall also submit a copy of the
preliminary technical report to the state board.
(c) The preliminary technical report shall include all of the
following:
(1) The name of each public water system for which any service
area boundary is within three miles miles, as
measured through existing public right of ways, of any
boundary of the applicant's proposed public water system's service
area.
(2) A discussion of the feasibility of each of the adjacent public
water systems identified pursuant to paragraph (1)
annexing, connecting, or otherwise supplying domestic water to the
service area of the applicant's new
proposed public water system. system's
service area. The applicant shall consult with an adjacent public
water system in preparing the report and shall include in the report
any information provided by an adjacent public water
system regarding the feasibility of annexing, connecting, or
otherwise supplying domestic water to that service area.
(3) A discussion of all actions taken by the applicant to secure a
supply of domestic water from an existing public water system for
the proposed new public water system's service area.
(3)
(4) All proposed sources of domestic
water supply for the proposed new public water system.
(4)
(5) The estimated cost to construct, operate, and
maintain the proposed new public water system, including long-term
operation and maintenance costs and a proposed
potential rate structure.
(5)
(6) A comparison of the cost
costs associated with the construction, operation and
maintenance, and long-term sustainability of the proposed new public
water system to the costs associated with the
annexation, consolidation, providing water to the
proposed new public water system's service area through annexation
by, consolidation with, or connection to an existing public
water system.
(6) A discussion of all actions taken by the applicant to secure a
supply of domestic water from an existing public water system for
the service area of the proposed new public water system.
(7) A discussion of all actions taken by the applicant to pursue a
contract for managerial or operational oversight from an existing
public water system.
(8) An analysis of whether a new proposed public water system's
total projected water supplies available during normal, single dry,
or multiple dry water years during a 20-year projection will meet the
project water demand for the service area.
(d) (1) If documents prepared to comply with Division 13
(commencing with Section 21000) of the Public Resources Code or any
other application for public agency approval concerning providing
drinking water to the new proposed public water system's service area
include the information required by subdivision (c), the applicant
may submit those documents to the state board in lieu of the
preliminary technical report and the documents shall be considered
the functional equivalent of the preliminary technical report.
(2) If documents prepared to comply with Division 13 (commencing
with Section 21000) of the Public Resources Code or any other
application for public agency approval concerning providing drinking
water to the new proposed public water system's service area include
some, but not all, of the information required by subdivision (c),
the applicant shall submit those documents and the preliminary
technical report to the state board and together those documents and
the preliminary technical report shall be considered the functional
equivalent of the preliminary technical report requirements of this
section. A preliminary technical report submitted pursuant to this
paragraph shall only be required to include information that is not
otherwise addressed by the other submitted documents.
(c)
(e) Upon review of a preliminary technical report
submitted pursuant to this section, the state board may do all of the
following actions:
(1) Direct If the applicant has not
already sought annexation or an extension of services agreement from
the local agency formation commission, direct the applicant to
undertake additional discussion and negotiation with any existing
public water system meeting the requirements of paragraph (1) of
subdivision (c) that the state board determines has the
technical, managerial, and financial capacity to provide an adequate
and reliable supply of domestic water to the service area of the
proposed new public water system. The state board shall not
direct the applicant to undertake additional discussion and
negotiation if documentation submitted to the state board
demonstrates that additional discussion and negotiation is unlikely
to be successful, including, but not limited to, documentation that a
local agency formation commission has already denied the application
for an extension or annexation.
(2) Direct the applicant to report on the results of discussion
and negotiations conducted pursuant to paragraph (1) to the state
board.
(3) Establish a time schedule for the applicant's performance of
directives issued pursuant to this subdivision.
(d)
(f) (1) An applicant
shall comply with the state board's directives as assigned in
and consistent with subdivision (e) before submitting an
application for a permit under this chapter.
(2) An application for a permit for a new public water system
under this chapter shall not be deemed complete unless the applicant
has complied with the requirements of this section.
(e)
(g) The state board's review of a preliminary technical
report pursuant to this section shall not be deemed approval of a
project or approval of any a permit
application submitted under this chapter.
(h) The requirements of this section do not apply to an
application for a permit for a new public water system that was
deemed complete prior to January 1, 2017, pursuant to the statutory
permit application requirements effective at the date of the permit
submittal.
(i) (1) The requirements of this section do not apply to a service
area where an applicant certifies in writing to the state board that
the applicant will not rely on the establishment of a new public
water system for its water supply. The state board shall acknowledge
receipt of the applicant's certification in a timely manner.
(2) An applicant who certifies that the service area will not rely
on the establishment of a new public water system and later seeks a
permit for a new public water system shall comply with the provisions
of this section and shall assume all risk of delay or rejection
related to the permit application.
(j) (1) The provisions of this subdivision apply to a proposed new
public water system that achieves either or both of the following:
(A) Consolidates two or more existing public water systems,
existing state small water systems, or other existing water systems,
which results in the creation of a new public water system.
(B) Provides water service in lieu of individual domestic wells.
(2) At least six months before the construction of any
water-related improvements, an applicant for a new public water
system that meets the criteria in paragraph (1) shall provide a
written notice to the state board that does both of the following:
(A) Clearly describes the proposed new public water system and how
it meets the criteria in paragraph (1).
(B) Requests an exemption from the requirements of this section.
(3) The state board shall promptly acknowledge receipt of a
written notice described in paragraph (2). The state board shall have
30 days from the acknowledgment of receipt of the written notice to
issue a written notice to the applicant that compliance with the
requirements of this section is necessary and that an application for
a permit of a new public water system under this chapter is not
complete until the applicant has complied with the requirements of
this section. A determination by the state board that compliance with
the requirements of this section is necessary shall be final and is
not subject to review. A determination by the state board pursuant to
this subdivision is not considered a project subject to Division 13
(commencing with Section 21000) of the Public Resources Code.
(4) If the state board receives a written notice from a project
applicant that satisfies the requirements of paragraph (2), the
project described in the notice is deemed exempt from the
requirements of this section on the 35th day following the date of
the state board's acknowledgment of receipt of the written notice,
unless the state board has issued a notice to comply pursuant to
paragraph (3).
SEC. 2. SEC. 3. Section 116540 of
the Health and Safety Code is amended to read:
116540. (a) Following completion of the investigation and
satisfaction of the requirements of paragraphs (1) and (2), the state
board shall issue or deny the permit. The state board may impose
permit conditions, requirements for system improvements, technical,
financial, or managerial requirements, and time schedules as it deems
necessary to ensure a reliable and adequate supply of water at all
times that is pure, wholesome, potable, and does not endanger the
health of consumers.
(1) A public water system that was not in existence on January 1,
1998, shall not be granted a permit unless the public water system
demonstrates to the state board that the water supplier possesses
adequate water rights, as well as financial,
managerial, and technical capability to ensure the delivery of pure,
wholesome, and potable drinking water. This section shall also apply
to any change of ownership of a public water system,
including the consolidation of a public water system.
(2) A permit under this chapter shall not be issued to an
association organized under Title 3 (commencing with Section 18000)
of the Corporations Code. This section shall not apply to
unincorporated associations that, as of December 31, 1990, are
holders of a permit issued under this chapter.
(b) Notwithstanding Section 116330, a local primacy agency shall
not issue a permit under this chapter article
without the concurrence of the state board.
(c) If the state board determines that the service area of the
public water system addressed by an application under this article
can be served by one or more currently permitted public water
systems, the state board may deny the permit.
(c) In considering whether to approve a proposed new public water
system, the state board shall consider the sustainability of the
proposed new public water system and its water supply in the
reasonably foreseeable future, in view of global climate change,
potential migration of groundwater contamination and other potential
treatment needs, and other factors that can significantly erode a
system's capacity.
(d) The state board may deny the permit if it determines either of
the following:
(1) That it is feasible for the service area of the proposed new
public water system addressed by an application under this chapter to
be served by one or more currently permitted public water systems.
(2) That the proposed new public water system may lack the
technical, managerial, or financial capacity to sustainably provide
affordable, safe drinking water in the reasonably foreseeable future
based on its assessment of the preliminary technical report submitted
pursuant to Section 116527, the permit application, relevant
substantial evidence, or the factors considered pursuant to
subdivision (c).
(e) An applicant may appeal decisions and actions of the deputy
director taken pursuant to this section to the state board.
SEC. 4. Section 106.4 is added to the
Water Code , to read:
106.4. (a) For the purposes of this section:
(1) "Bottled water" has the same meaning as defined in Section
111070 of the Health and Safety Code.
(2) "Residential development" has the same meaning as defined in
Section 65008 of the Government Code.
(3) "Retail water facility" has the same meaning as defined in
Section 111070 of the Health and Safety Code.
(4) "Water-vending machine" has the same meaning as defined in
Section 111070 of the Health and Safety Code.
(5) "Water hauler" has the same meaning as defined in Section
111070 of the Health and Safety Code.
(b) A city, including a charter city, or a county shall not issue
a building permit for the construction of a new residential
development where a source of water supply is water transported by a
water hauler, bottled water, a water-vending machine, or a retail
water facility.
(c) The Legislature finds and declares that this section addresses
a matter of statewide concern and not a municipal affair, as that
term is used in Section 5 of Article XI of the California
Constitution.
SEC. 5. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act or
because costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.