BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1180  
                                                         Page 1

Date of Hearing: April 15, 1997

  ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                        Howard Wayne, Chair

        AB 1180 (Battin) - As Introduced: February 28, 1997

  SUBJECT    Safe Drinking Water Bond Act.
   
  SUMMARY  :  This bill establishes the statutory framework for a $100  
million Safe Drinking Water Bond Law of 1998. Creates a state  
revolving fund (SRF) for low-interest loans and grants to public  
water systems (PWS) for infrastructure improvements necessary to  
meet new and existing federal drinking water mandates that provide  
for the protection of human health.  
  EXISTING LAW  : The voters approved Safe Drinking Water Bond Acts in  
1979, 1984, 1986, and 1988.  The last general obligation bond to  
appear on the statewide ballot for these programs was Proposition  
148 in 1990.  The failure of Proposition 148 and the absence of a  
safe drinking water bond measure since 1988 has left existing bond  
funds severely depleted.                                 

  THIS BILL  :

1) Enacts the Safe Drinking Water Bond Act of 1998, a $100 million  
   general obligation bond to be used by the State Department of  
   Health Services (DHS) for loans and grants to water suppliers  
   who own or operate a public domestic water system for the  
   purpose of improving infrastructure to meet minimum safe  
   drinking water standards.
   
2) Creates the California Safe Drinking Water Fund, where proceeds  
   of bonds issued and sold pursuant to this bond act shall be  
   deposited.  Creates the State Revolving Loan Account and the  
   Safe Drinking Water Grant Account.  The specific dollar amounts  
   to be allocated to each account have yet to be calculated.

  FISCAL EFFECT  :  Unknown

  COMMENTS  :  

1) Last year, the federal government signed into law the federal  
   Safe Drinking Water Act Amendments of 1996.  This act  
   established federal funding for SRF programs to finance  
   infrastructure improvements for PWS similar to the funding that  
   has been provided to states for wastewater treatment plants for  
   several years under the federal Clean Water Act.  The federal  
   Safe Drinking Water Act authorizes a $7.6 billion appropriation  
   to assist states to achieve compliance with drinking water  
   standards.

2) The U.S. EPA is authorized to enter into agreements with states  
   to provide capitalization grants for a revolving loan fund if  
   the states establish a loan fund and agree to a 20% state  
   match, compliance with an intended-use plan, and proper  
   financial management.







                                                          AB 1180  
                                                         Page 2


3) California will receive four federal matching dollars for every  
   state dollar invested.  These are much needed funds to upgrade  
   aging and unsafe infrastructure particularly for smaller  
   systems and rural systems.

  REGISTERED SUPPORT / OPPOSITION  :

  Support  

Association of California Water Agencies (sponsor)

  Opposition  

None on file

  Analysis prepared by  :  Stephanie Shakofsky / aestm / (916)  
   445-0991