BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1263|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 1263
          Author:   Wieckowski (D) and Pavley (D)
          Amended:  8/19/16  
          Vote:     21 

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  4-2, 4/6/16
           AYES:  Wieckowski, Hill, Leno, Pavley
           NOES:  Gaines, Bates
           NO VOTE RECORDED:  Jackson

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SENATE FLOOR:  21-13, 5/9/16
           AYES:  Allen, Block, De León, Hall, Hancock, Hernandez,  
            Hertzberg, Hill, Jackson, Lara, Leno, Leyva, Liu, McGuire,  
            Mendoza, Mitchell, Monning, Pan, Pavley, Wieckowski, Wolk
           NOES:  Anderson, Berryhill, Cannella, Fuller, Glazer, Huff,  
            Moorlach, Morrell, Nguyen, Nielsen, Roth, Stone, Vidak
           NO VOTE RECORDED:  Bates, Beall, Gaines, Galgiani, Hueso,  
            Runner

           ASSEMBLY FLOOR:  39-30, 8/18/16 (FAIL) - See last page for vote

           ASSEMBLY FLOOR:  43-30, 8/25/16 - See last page for vote

           SUBJECT:   Public water system:  permits


          SOURCE:    Author
          
          DIGEST:   This bill requires the State Water Resources Control  
          Board (SWRCB) to review permit applications for new water  
          systems and authorizes SWRCB to deny a permit if it is found  
          that the service area of the public water system can be served  
          by one or more currently permitted public water systems, as  








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          specified.


          Assembly Amendments clarify the process by which SWRCB would  
          review, approve or deny an application for a new public water  
          system and provides a process by which to appeal a decision to  
          the SWRCB.


          ANALYSIS:    Existing law, under the California Safe Drinking  
          Water Act (SDWA): 


          1)Requires SWRCB to regulate drinking water and enforce the  
            federal SDWA and other regulations.


          2)Requires permits for the operation of public water systems;  
            permit applications to the SWRCB must include a technical  
            report.


          3)Authorizes the SWRCB, upon determination that an application  
            is complete, to make a specified investigation, and, if deemed  
            necessary, impose permit conditions, requirements for system  
            improvements, and time schedules to ensure an affordable,  
            reliable, and adequate supply of water at all times that is  
            pure, wholesome, and potable.


          4)Prohibits a public water system that was not in existence on  
            January 1, 1998, or changes ownership after that date, from  
            receiving a permit unless the system demonstrates that the  
            water supplier possesses adequate financial, managerial, and  
            technical capability to ensure delivery of pure, wholesome,  
            and potable drinking water.


          5)Allows the SWRCB to delegate primary responsibility for the  
            administration and enforcement of the SDWA within a county to  
            a local health officer if certain criteria are met. Existing  
            law requires that the local primacy agency (LPA) be empowered  








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            with all of the authority granted to the SWRCB over the  
            specified public water systems.


          This bill requires a person submitting an application for a  
          permit for a proposed new public water system to first submit a  
          preliminary technical report to the SWRCB at least six months  
          before initiating construction of any water-related development.  
           Specifically, this bill:  


          1)Requires the technical report to include an analysis of other  
            public water systems within three miles of the proposed new  
            system and the ability to connect to or utilize the resources  
            from those public water systems.  


          2)Requires the technical report to include an analysis of all  
            water supplies for the proposed new public water system and  
            the ability to meet 20-year water demand under a variety of  
            hydrologic conditions.  


          3)Authorizes SWRCB to deny a permit if it is feasible to connect  
            to an existing system or if the new system is unsustainable.


          4)Authorizes SWRCB to direct the applicant to engage in  
            negotiations to receive services from existing water systems.


          5)Subjects the ability of a local primacy agency to issue a  
            permit for a public water system to SWRCB oversight.


          6)Prohibits a city or county from issuing a building permit for  
            new residential development when the proposed water supply is  
            bottled water, transported by a water hauler, or provided by a  
            water-vending machine or a retail water facility.


          Background








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          1)History of California drinking water program.


            California's drinking water program was created in 1915, when  
            the Bureau of Sanitary Engineering was established by the  
            State Board of Health. The bureau's primary duty at that time  
            was to prevent and eliminate water-borne diseases. 


            In 1974, the federal SDWA was passed to protect public health  
            by regulating the nation's public drinking water supply, which  
            requires the United States Environmental Protection Agency (US  
            EPA) to establish mandatory nationwide drinking water  
            standards. It also requires water systems to monitor public  
            water supplies to ensure drinking water standards are met and  
            report to consumers if the standards are not met. 


            Two years after the federal act was passed, California adopted  
            its own SWDA. The state's Act has two main goals: to continue  
            the state's drinking water program, and to be the delegated  
            authority (referred to as the "primacy") by US EPA for  
            enforcement of the federal act. And, as required by the  
            federal act, the state's drinking water program must set  
            drinking water standards that are at least as stringent as the  
            US EPA's standards. 


            In 1989, AB 21 (Sher, Chapter 823, Statutes of 1989) amended  
            California's SDWA.  This law requires the development of a  
            comprehensive safe drinking water plan, sets forth  
            requirements for adopting primary drinking water standards,  
            requires large water systems to identify all reasonable  
            measures to reduce contaminant levels in their water, and  
            requires operators of public water systems to notify the  
            California Department of Health Services (CDHS subsequently  
            DPH) and the public whenever the system is not in compliance  
            with drinking water standards. 










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            In 1993, CDHS (subsequently 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 California Legislature enacted SB 1307 (Calderon,  
            Chapter 755).  SB 1307 amended Section 116355 of the Health  
            and Safety Code to require a periodic update of the original  
            Plan. 


            However, DPH did not release an update of the Safe Drinking  
            Water Plan and was subsequently sued by California Rural Legal  
            Assistance in 2009 for failing to ensure safe drinking water  
            in certain communities, including failing to comply with this  
            reporting requirement.  The suit was settled in 2011 and  
            included a requirement that DPH complete the Safe Drinking  
            Water Plan update within three years.


            In 2012, the California Legislature passed the Human Right to  
            Water Law, adding to the Water Code the declaration that it be  
            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." 


            In April 2013, US EPA sent notice to DPH for noncompliance  
            with the requirements of the federal SDWA, its implementing  
            regulations, and the terms and conditions of the Safe Drinking  
            Water State Revolving Fund (SDWSRF) grant agreements funded by  
            the US EPA for fiscal years 2009-11.  


            The letter of noncompliance from the US EPA was the result of  
            DPH's failure to meet federal SDWA requirements regarding the  
            administration of SDWSRF.  This included not disbursing  
            federal funds in a timely matter. At one point in 2012, DPH's  
            drinking water fund had an unspent balance of $455 million,  
            which was the largest unspent balance of any state in the  
            United States. 








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            The failing of DPH to effectively administer SDWSRF put in  
            jeopardy California's federal appropriation for the SDWSRF,  
            precipitating the discussion to consolidate the administration  
            of the SDWSRF and the Clean Water SRF, which was then  
            administered separately by SWRCB.  


            In March 2014, the California Environmental Protection Agency  
            and the Health and Human Services Agency published their  
            Drinking Water Reorganization and Transition Plan stating that  
            the Administration had evaluated the governance structure of  
            the state's drinking water and water quality activities and  
            concluded that "aligning the state's drinking water and water  
            quality programs in an integrated organizational structure  
            would best position the state to both effectively protect  
            water quality, while meeting current needs and future demands  
            on water supplies." 


            SB 861 (Committee on Budget and Fiscal Review, Chapter 35,  
            Statutes of 2014) transferred the Drinking Water Program DPH  
            to SWRCB effective July 1, 2014, creating the new Division of  
            Drinking Water within SWRCB and made other statutory changes  
            to create efficiencies and adoption and administration of the  
            Drinking Water Program.


            SWRCB directly enforces the SDWA for all large water systems  
            (those with 200 or more service connections). For small water  
            systems (those with less than 200 connections), local health  
            departments can be delegated to have regulatory authority as  
            the LPA.


            As of January 2014, there were 7,642 public water systems in  
            California classified into three different categories: 3,015  
            Community Water Systems serving communities with full-time  
            residents; 1,489 Non-Transient Non-Community Water Systems  
            serving the same non-residents at least six months per year  
            (e.g., schools, places of work, and prisons); and 3,138  








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            Transient Non-Community Water Systems serving non-residents at  
            least 60 days per (e.g., restaurants & campgrounds).


          2)Risks for people dependent on small water systems.


            When larger systems exceed maximum contaminant levels, those  
            problems are usually corrected promptly. In contrast, over  
            time, small water systems, because of their small base of rate  
            payers, are much less able to remain compliant with state  
            drinking water standards. This is especially true when water  
            system users include disadvantaged communities, defined as any  
            community where the median household income is below 80  
            percent of the statewide median household income. This problem  
            with small water systems experiencing the bulk of violations  
            extends across water system categories.  In addition to the  
            community systems where residents may have repeated long-term  
            exposure to contaminants in impure water, many Non-Transient  
            Non-Community systems include schools, where vulnerable  
            populations may also get substantial repeated exposure to  
            contaminants. In 2014, 68 schools or day-care facilities with  
            their own water systems served contaminated water to more than  
            24,000 people.


            As reported in a Senate Office of Research report, SWRCB's  
            Drinking Water Division estimated that in 2014, 472  
            out-of-compliance drinking water systems served more than  
            275,000 people.  


          3)New Public Water Systems.


            Over the last five years, approximately 100 new public water  
            systems have been created, including 12 Community (11.7%), 34  
            Non-Transient Non-Community (33%), and 57 Transient  
            Non-Community (55.3%) Systems.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  








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          Com.:YesLocal:   Yes


          According to the Assembly Appropriations Committee, SWRCB costs  
          are minor and absorbable.


          SUPPORT:   (Verified8/25/16)



          California League of Conservation Voters
          Clean Water Action
          Community Water Center
          East Bay Municipal Utility District
          Environment California
          Environmental Working Group
          Evangelical Lutheran Church in America
          Food and Water Watch
          Leadership Counsel for Justice and Accountability
          Natural Resource Defense Council
          Sierra Club California
          Tri-City Ecology Center
          Union of Concerned Scientists


          OPPOSITION:   (Verified8/25/16)


          None received


           ASSEMBLY FLOOR:  39-30, 8/18/16 (FAIL)
           AYES: Alejo, Arambula, Atkins, Bonilla, Brown, Calderon,  
            Campos, Chau, Chiu, Cooley, Dodd, Eggman, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon,  
            Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, McCarty,  
            Medina, Mullin, Nazarian, Ridley-Thomas, Rodriguez, Santiago,  
            Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Rendon
           NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,  
            Chávez, Dahle, Beth Gaines, Gallagher, Gray, Grove, Hadley,  
            Harper, Jones, Kim, Lackey, Linder, Maienschein, Mathis,  








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            Mayes, Melendez, Obernolte, Olsen, Patterson, Salas,  
            Steinorth, Wagner, Waldron, Wilk
           NO VOTE RECORDED: Bloom, Bonta, Burke, Chu, Cooper, Dababneh,  
            Daly, Frazier, Roger Hernández, O'Donnell, Quirk

           ASSEMBLY FLOOR:  43-30, 8/25/16
           AYES: Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Calderon,  
            Campos, Chau, Chiu, Cooley, Dababneh, Dodd, Eggman, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Roger Hernández, Holden, Irwin, Jones-Sawyer,  
            Levine, Lopez, Low, McCarty, Medina, Mullin, Nazarian, Quirk,  
            Rodriguez, Santiago, Mark Stone, Thurmond, Ting, Weber,  
            Williams, Wood, Rendon
           NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,  
            Chávez, Dahle, Frazier, Beth Gaines, Gallagher, Grove, Hadley,  
            Harper, Jones, Kim, Lackey, Linder, Maienschein, Mathis,  
            Mayes, Melendez, Obernolte, Olsen, Patterson, Salas,  
            Steinorth, Wagner, Waldron, Wilk
           NO VOTE RECORDED: Brown, Burke, Chu, Cooper, Daly, O'Donnell,  
            Ridley-Thomas



          Prepared by:Rachel Machi Wagoner / E.Q. / (916) 651-4108
          8/29/16 9:42:09


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