BILL NUMBER: SB 1307 CHAPTERED
BILL TEXT
CHAPTER 734
FILED WITH SECRETARY OF STATE OCTOBER 7, 1997
APPROVED BY GOVERNOR OCTOBER 6, 1997
PASSED THE SENATE SEPTEMBER 11, 1997
PASSED THE ASSEMBLY SEPTEMBER 9, 1997
AMENDED IN ASSEMBLY AUGUST 29, 1997
AMENDED IN ASSEMBLY AUGUST 25, 1997
AMENDED IN SENATE JULY 2, 1997
AMENDED IN SENATE JUNE 16, 1997
AMENDED IN SENATE JUNE 9, 1997
AMENDED IN SENATE MAY 21, 1997
AMENDED IN SENATE APRIL 10, 1997
INTRODUCED BY Senators Costa and Thompson
FEBRUARY 28, 1997
An act to amend Sections 116275, 116285, 116290, 116325, 116390,
116425, 116540, 116565, 116580, 116585, 116650, and 116880 of, to
amend and renumber Section 116300 of, to add Sections 116286 and
116287 to, to add Chapter 4.5 (commencing with Section 116760) to
Part 12 of Division 104 of, and to repeal and add Section 116875 of,
the Health and Safety Code, and to add Section 13169 to the Water
Code, relating to drinking water, making an appropriation therefor,
and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1307, Costa. Public water systems.
(1) Existing law sets forth definitions governing the California
Safe Drinking Water Act.
This bill would revise some of those definitions and would also
require those definitions to govern a provision of law relating to
certification of persons to supervise and operate water treatment
plants.
(2) Existing law prohibits the California Safe Drinking Water Act
from applying to certain irrigation canal systems or in areas where
the water service rendered by a person is primarily agricultural.
This bill would delete those provisions on and after August 6,
1998.
(3) Existing law defines "service connection" for purposes of the
California Safe Drinking Water Act and provides that if certain
conditions apply, a connection to a system that delivers water by a
constructed conveyance in other than a pipe is not a connection in
determining if the system is a public water system.
This bill would prohibit certain water districts, as defined,
from being considered to be a public water system if the State
Department of Health Services makes a prescribed determination. For
purposes of the above provisions under which determinations are made
regarding whether a system or water district is a public water
system, the bill would require the department to place certain
requirements on affected water systems, utilize certain criteria in
making determinations, and monitor and review certain conditions of a
water system or water district periodically. The bill would
authorize the department to prescribe reasonable, feasible, and
cost-effective actions to be taken by water systems, water districts,
and users subject to these provisions.
(4) Existing law authorizes the department to issue a citation to,
and assess civil penalties upon, a public water system that violates
the California Safe Drinking Water Act. Under these provisions a
failure to comply with any citation or order issued for failure of
the primary drinking water standard for turbidity or for violation of
a secondary drinking water standard that the director determines may
have a direct or immediate relationship to the welfare of the users
is subject to a civil penalty not to exceed $250 for each day that
the violation continues beyond the date specified for correction in
the citation.
This bill would increase this civil penalty to not exceed $1,000.
(5) Existing law prohibits laboratories, other than laboratories
operated by the department, from performing certain tests for any
public water system without first obtaining a prescribed certificate,
except for laboratories previously issued certificates.
This bill would delete that exception.
(6) Existing law authorizes the department to exempt any public
water system from any maximum contaminant level or treatment
technique requirement if it makes certain findings.
This bill would revise the findings the department is required to
make as a condition of exempting any public water system from the
containment level and treatment technique requirements.
(7) Existing law prohibits a public water system, in existence on
January 1, 1991, from being granted a permit by the department to
operate a public water system unless the system demonstrates that the
water supplier possesses adequate financial capability to deliver
pure, wholesome, and potable drinking water.
This bill would instead make that provision applicable to a public
water system in existence on January 1, 1998, and would require the
demonstration that the water supplier also possesses adequate
managerial and technical capability.
(8) Existing law requires the department to submit a final invoice
to certain public water systems for regulatory costs incurred prior
to September 1 following the fiscal year the costs were incurred.
This bill would change that date to October 1 following the fiscal
year the costs were incurred.
(9) Existing law requires the department to submit an invoice to a
water system with respect to a request for an exemption, variance,
or waiver within 90 days of the department's final decision.
This bill would change that date to prior to October 1 of the
fiscal years following the fiscal year in which the department's
decision was rendered and would include plan reviews in the
requirement.
(10) Existing law requires the prevailing party to be awarded
litigation costs in any court action brought to enforce the
California Safe Drinking Water Act.
This bill would instead make that requirement applicable to any
civil court action brought to enforce the California Safe Drinking
Water Act.
(11) This bill would enact the Safe Drinking Water State Revolving
Fund Law of 1997 and would authorize the department to administer
the Safe Drinking Water State Revolving Fund, which would be
established in the State Treasury and continuously appropriated to
the department to provide, from moneys available for this purpose,
grants or revolving fund loans for the design and construction of
projects, as defined, for public water systems, as defined, that will
enable suppliers, as defined, to meet safe drinking water standards,
as defined. The bill would authorize the department to enter into
an agreement with the federal government for federal contributions
into the fund if the state has obtained or appropriated any required
state matching funds and the department is prepared to commit to
expenditure of any federal minimum amount in the fund. The bill
would require federal funds deposited in the special accounts to be
continuously appropriated to the department. The bill would require
the department to submit a report at least once every 2 years to the
policy and budget committees of the Legislature on the implementation
of this law and expenditures from the fund.
The bill would authorize the department to adopt emergency
regulations. The bill would require the department to establish
criteria for projects to be eligible for funding. The bill would
require the department to establish planning and preliminary
engineering studies, project design, and construction costs eligible
for funding. The bill would authorize the department to enter into
contracts with applicants for grants for loans, under certain terms
and conditions. The bill would govern use of moneys in the fund and
would authorize the department to establish interest rates for loans
from the fund. The bill would require the department, contingent
upon receiving federal capitalization grant funds and in coordination
with certain local, state, and federal agencies, to develop and
implement a designated program to protect sources of drinking water.
The bill would require the department to submit a report to the
Legislature every 2 years on these activities.
(12) Existing law regulates the use and sale of solder containing
more than certain amounts of lead and the use of lead pipe.
This bill would delete that provision. The bill would prohibit
any person from using any pipe, pipe or plumbing fitting or fixture,
solder, or flux that is not lead free, as defined, in the
installation or repair of any public water system or any plumbing in
a facility providing water for human consumption, except as
prescribed. The bill would prohibit introduction into commerce of
any pipe, pipe or plumbing fitting, or fixture that is not lead free,
except as prescribed. The bill would prohibit any person engaged in
the business of selling plumbing supplies, except manufacturers,
from selling solder or flux that is not lead free. The bill would
prohibit any person from introducing into commerce any solder or flux
that is not lead free, except as prescribed. The bill would require
the department to adopt building standards to implement those
provisions.
(13) Under existing law, the Porter-Cologne Water Quality Control
Act, the State Water Resources Control Board and each California
regional water quality control board, as defined, have primary
responsibility for the coordination and control of water quality.
The bill would authorize the board to develop and implement a
groundwater protection program as provided under the federal Safe
Drinking Water Act and any federal acts that amend or supplement that
act. The bill would also provide that these provisions are not
intended to expand the authority of the board as authorized under the
Porter-Cologne Water Quality Control Act.
(14) The bill would make other technical changes.
(15) The bill would declare that it is to take effect immediately
as an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 116275 of the Health and Safety Code is amended
to read:
116275. As used in this chapter:
(a) "Contaminant" means any physical, chemical, biological, or
radiological substance or matter in water.
(b) "Department" means the State Department of Health Services.
(c) "Primary drinking water standards" means:
(1) Maximum levels of contaminants that, in the judgment of the
department, may have an adverse effect on the health of persons.
(2) Specific treatment techniques adopted by the department in
lieu of maximum contaminant levels pursuant to subdivision (j) of
Section 116365.
(3) The monitoring and reporting requirements as specified in
regulations adopted by the department that pertain to maximum
contaminant levels.
(d) "Secondary drinking water standards" means standards that
specify maximum contaminant levels that, in the judgment of the
department, are necessary to protect the public welfare. Secondary
drinking water standards may apply to any contaminant in drinking
water that may adversely affect the odor or appearance of the water
and may cause a substantial number of persons served by the public
water system to discontinue its use, or that may otherwise adversely
affect the public welfare. Regulations establishing secondary
drinking water standards may vary according to geographic and other
circumstances and may apply to any contaminant in drinking water that
adversely affects the taste, odor, or appearance of the water when
the standards are necessary to assure a supply of pure, wholesome,
and potable water.
(e) "Human consumption" means the use of water for drinking,
bathing or showering, hand washing, or oral hygiene.
(f) "Maximum contaminant level" means the maximum permissible
level of a contaminant in water.
(g) "Person" means an individual, corporation, company,
association, partnership, limited liability company, municipality,
public utility, or other public body or institution.
(h) "Public water system" means a system for the provision of
water for human consumption through pipes or other constructed
conveyances that has 15 or more service connections or regularly
serves at least 25 individuals daily at least 60 days out of the
year. A public water system includes the following:
(1) Any collection, treatment, storage, and distribution
facilities under control of the operator of the system which are used
primarily in connection with the system.
(2) Any collection or pretreatment storage facilities not under
the control of the operator that are used primarily in connection
with the system.
(3) Any water system that treats water on behalf of one or more
public water systems for the purpose of rendering it safe for human
consumption.
(i) "Community water system" means a public water system that
serves at least 15 service connections used by yearlong residents or
regularly serves at least 25 yearlong residents of the area served by
the system.
(j) "Noncommunity water system" means a public water system that
is not a community water system.
(k) "Nontransient noncommunity water system" means a public water
system that is not a community water system and that regularly serves
at least 25 of the same persons over 6 months per year.
(l) "Local health officer" means a local health officer appointed
pursuant to Section 101000 or a local comprehensive health agency
designated by the board of supervisors pursuant to Section 101275 to
carry out the drinking water program.
(m) "Significant rise in the bacterial count of water" means a
rise in the bacterial count of water that the department determines,
by regulation, represents an immediate danger to the health of water
users.
(n) "State small water system" means a system for the provision of
piped water to the public for human consumption that serves at least
five, but not more than 14, service connections and does not
regularly serve drinking water to more than an average of 25
individuals daily for more than 60 days out of the year.
(o) "Transient noncommunity water system" means a noncommunity
water system that does not regularly serve at least 25 of the same
persons over six months per year.
(p) "User" means any person using water for domestic purposes.
User does not include any person processing, selling, or serving
water or operating a public water system.
(q) "Waterworks standards" means regulations adopted by the
department that take cognizance of the latest available "Standards of
Minimum Requirements for Safe Practice in the Production and
Delivery of Water for Domestic Use" adopted by the California section
of the American Water Works Association.
(r) "Local primacy agency" means any local health officer that has
applied for and received primacy delegation from the department
pursuant to Section 116330.
(s) "Service connection" means the point of connection between the
customer's piping or constructed conveyance, and the water system's
meter, service pipe, or constructed conveyance. A connection to a
system that delivers water by a constructed conveyance other than a
pipe shall not be considered a connection in determining if the
system is a public water system if any of the following apply:
(1) The water is used exclusively for purposes other than
residential uses, consisting of drinking, bathing, and cooking or
other similar uses.
(2) The department determines that alternative water to achieve
the equivalent level of public health protection provided by the
applicable primary drinking water regulation is provided for
residential or similar uses for drinking and cooking.
(3) The department determines that the water provided for
residential or similar uses for drinking, cooking, and bathing is
centrally treated or treated at the point of entry by the provider, a
passthrough entity, or the user to achieve the equivalent level of
protection provided by the applicable primary drinking water
regulations.
(t) "Resident" means a person who physically occupies, whether by
ownership, rental, lease or other means, the same dwelling for at
least 60 days of the year.
SEC. 2. Section 116285 of the Health and Safety Code is amended to
read:
116285. Before August 6, 1998, this chapter shall not apply to an
irrigation canal system if the owner or operator of the system
certifies to the department, and notifies each user, in writing, that
the water is untreated and is being furnished or supplied solely for
agricultural purposes to either of the following:
(a) A user where the user receives the water, by pipe or
otherwise, directly from the irrigation canal system.
(b) A person who owns or operates an integrated pipe system where
the person receives the water, by pipe or otherwise, directly from
the irrigation canal system.
"Irrigation canal system," as used in this section, means a system
of water conveyance facilities, including pipes, tunnels, canals,
conduits, pumping plants and related facilities operated to furnish
or supply water for agricultural purposes where a substantial portion
of the facilities is open to the atmosphere.
SEC. 3. Section 116286 is added to the Health and Safety Code, to
read:
116286. (a) A water district, as defined in subdivision (b), in
existence prior to May 18, 1994, that provides primarily agricultural
services through a piped water system with only incidental
residential or similar uses shall not be considered to be a public
water system if the department determines that either of the
following applies:
(1) The system or the residential or similar users of the system
certify to the system that they are providing alternative water for
residential or similar uses for drinking water and cooking to achieve
the equivalent level of public health protection provided by the
applicable primary drinking water regulations.
(2) The water provided for residential or similar uses for
drinking, cooking, and bathing is centrally treated or treated at the
point of entry by the provider, a passthrough entity, or the user to
achieve the equivalent level of protection provided by the
applicable primary drinking water regulations.
(b) For purposes of this section, "water district" means any
district or other political subdivision, other than a city or county,
a primary function of which is irrigation, reclamation, or drainage
of land.
SEC. 4. Section 116287 is added to the Health and Safety Code, to
read:
116287. (a) The department, in implementing subdivision (s) of
Section 116275 and Section 116286, shall place requirements on
affected public water systems and water districts that are consistent
with this chapter and the guidelines established by the United
States Environmental Protection Agency for implementing comparable
provisions of the federal Safe Drinking Water Act of 1996.
(b) The department, in making the determinations specified in
paragraphs (2) and (3) of subdivision (s) of Section 116275 and
subdivisions (a) and (b) of Section 116286, shall utilize criteria
that are consistent with this chapter and those used by the United
States Environmental Protection Agency in administering the
comparable provisions of the federal Safe Drinking Water Act.
(c) The department shall periodically monitor and review the
conditions under which a public water system, or a water district as
defined in subdivision (b) of Section 116286, has met the
requirements of this chapter pursuant to subdivision (s) of Section
116275 or Section 116286, or pursuant to the federal act, to ensure
that the conditions continue to be met.
(d) The department may prescribe reasonable, feasible, and
cost-effective actions to be taken by a public water system, water
district, as defined in subdivision (b) of Section 116286, or users
subject to subdivision (s) of Section 126275 or Section 116286 to
ensure that alternative water or treated water provided by the water
systems, water districts, or users pursuant to Section 116275 or
116286 will not be injurious to health.
SEC. 5. Section 116290 of the Health and Safety Code is amended to
read:
116290. Before August 6, 1998, in areas where the water service
rendered by a person is primarily agricultural, and domestic service
is only incidental thereto, this chapter shall not apply except in
specific areas in which the department has found its application to
be necessary for the protection of the public health and has given
written notice thereof to the person furnishing or supplying water in
the area.
The department may prescribe reasonable and feasible action to be
taken by those persons or the users to insure that their domestic
water will not be injurious to health.
SEC. 6. Section 116300 of the Health and Safety Code is amended
and renumbered to read:
116270. The Legislature finds and declares all of the following:
(a) Every citizen of California has the right to pure and safe
drinking water.
(b) Feasible and affordable technologies are available and shall
be used to remove toxic contaminants from public water supplies.
(c) According to the State Department of Health Services, over 95
percent of all large public water systems in California are in
compliance with health-based action levels established by the
department for various contaminants.
(d) It is the policy of the state to reduce to the lowest level
feasible all concentrations of toxic chemicals that when present in
drinking water may cause cancer, birth defects, and other chronic
diseases.
(e) This chapter is intended to ensure that the water delivered by
public water systems of this state shall at all times be pure,
wholesome, and potable. This chapter provides the means to
accomplish this objective.
(f) It is the intent of the Legislature to improve laws governing
drinking water quality, to improve upon the minimum requirements of
the federal Safe Drinking Water Act Amendments of 1996, to establish
primary drinking water standards that are at least as stringent as
those established under the federal Safe Drinking Water Act, and to
establish a program under this chapter that is more protective of
public health than the minimum federal requirements.
(g) It is the further intent of the Legislature to establish a
drinking water regulatory program within the State Department of
Health Services in order to provide for the orderly and efficient
delivery of safe drinking water within the state and to give the
establishment of drinking water standards and public health goals
greater emphasis and visibility within the state department.
SEC. 7. Section 116325 of the Health and Safety Code is amended to
read:
116325. The department shall be responsible for ensuring that all
public water systems are operated in compliance with this chapter
and any regulations adopted hereunder. The department shall directly
enforce this chapter for all public water systems except as set
forth in Section 116500.
SEC. 8. Section 116390 of the Health and Safety Code is amended to
read:
116390. (a) No laboratory, other than a laboratory operated by
the department, shall perform tests required pursuant to this chapter
for any public water system without first obtaining a certificate
issued by the department pursuant to Article 3 (commencing with
Section 100825) of Chapter 4 of Part 1 of Division 101.
(b) No person or public entity of the state shall contract with a
laboratory for environmental analyses for which the state department
requires certification pursuant to this section, unless the
laboratory holds a valid certificate.
SEC. 9. Section 116425 of the Health and Safety Code is amended to
read:
116425. (a) The department may exempt any public water system
from any maximum contaminant level or treatment technique requirement
if it finds all the following:
(1) The public water system was in operation, or had applied for a
permit to operate, on the effective date of the maximum contaminant
level or treatment technique requirement.
(2) Due to compelling factors, which may include either of the
following factors, the public water system is unable to comply with
the maximum contaminant level or treatment technique requirement or
to implement measures to develop an alternative water supply:
(A) Economic factors.
(B) The entire service area of the public water system consists of
a disadvantaged community, as defined under Section 1452(d) of the
federal Safe Drinking Water Act (42 U.S.C. Sec. 300g-5), and meets
the affordability criteria established by the department, after
review and public hearing.
(3) The granting of the exemption will not result in an
unreasonable risk to health.
(4) Management or restructuring changes, or both, cannot
reasonably be made that will result in compliance with this chapter
or, if compliance cannot be achieved, improve the quality of the
drinking water.
(b) If the department grants a public water system an exemption
for a primary drinking water standard under subdivision (a), the
department shall prescribe, at the time an exemption is granted, a
schedule for both of the following:
(1) Compliance by the public water system with each contaminant
level or treatment technique requirement for which the exemption was
granted.
(2) Implementation by the public water system of interim control
measures the department may require for each contaminant or treatment
technique requirement for which the exemption was granted.
(c) Any schedule prescribed by the department pursuant to this
section shall require compliance by the public water system with each
contaminant level or treatment technique requirement for which the
exemption was granted within 12 months from the granting of the
exemption.
(d) The final date for compliance with any schedule issued
pursuant to this section may be extended by the department for a
period not to exceed three years from the date of the granting of the
exemption if the department finds all of the following:
(1) The system cannot meet the standard without capital
improvements that cannot be completed prior to the date established
pursuant to Section 1412(b)(1) of the federal Safe Drinking Water Act
(42 U.S.C. 300g-(b)(1)).
(2) In the case of a system that needs financial assistance for
the necessary improvements, the system has entered into an agreement
to obtain the financial assistance or the system has entered into an
enforceable agreement to become part of a regional public water
system.
(3) The system is taking all practicable steps to meet the
standard.
(e) In the case of a system that does not serve more than a
population of 3,300 and that needs financial assistance for the
necessary improvements, an exemption granted pursuant to paragraph
(2) of subdivision (d) shall not exceed a total of six years.
(f) Prior to the granting of an exemption pursuant to this
section, the department shall provide notice and an opportunity for a
public hearing. Notice of any public hearing held pursuant to this
section shall be given by the department in writing to the public
water system seeking the exemption and to the public as provided in
Section 6061 of the Government Code. A public hearing provided
pursuant to this subdivision is not an adjudicative hearing and is
not required to comply with Section 100171.
(g) A public water system may not receive an exemption under this
section if the system is granted a variance pursuant to Section
116430.
(h) Unless the department has already granted an exemption
pursuant to subdivision (a), the department may exempt a public water
system from compliance with a maximum containment level or treatment
technique requirement for up to two years if the department finds,
and continues to find, that a plan submitted by the water system may
reasonably be expected to bring the water system into compliance by
any of the following means:
(1) The physical consolidation of the system with one or more
other systems.
(2) The consolidation of significant management and administrative
functions of the system with one or more other systems.
(3) The transfer of ownership of the system.
SEC. 10. Section 116540 of the Health and Safety Code is amended
to read:
116540. Following completion of the investigation and
satisfaction of the requirements of subdivisions (a) and (b), the
department shall issue or deny the permit. The department may impose
permit conditions, requirements for system improvements, and time
schedules as it deems necessary to assure a reliable and adequate
supply of water at all times that is pure, wholesome, potable, and
does not endanger the health of consumers.
(a) No public water system that was not in existence on January 1,
1998, shall be granted a permit unless the system demonstrates to
the department that the water supplier possesses adequate financial,
managerial, and technical capability to assure the delivery of pure,
wholesome, and potable drinking water. This section shall also apply
to any change of ownership of a public water system that occurs
after January 1, 1998.
(b) No permit under this chapter shall be issued to an association
organized under Title 3 (commencing with Section 20000) of Division
3 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.
SEC. 11. Section 116565 of the Health and Safety Code is amended
to read:
116565. (a) Each public water system serving 1,000 or more
service connections and any public water system that treats water on
behalf of one or more public water systems for the purpose of
rendering it safe for human consumption, shall reimburse the
department for actual cost incurred by the department for conducting
those activities mandated by this chapter relating to the issuance of
domestic water supply permits, inspections, monitoring,
surveillance, and water quality evaluation that relate to that
specific public water system. The amount of reimbursement shall be
sufficient to pay, but in no event shall exceed, the department's
actual cost in conducting these activities.
(b) Each public water system serving less than 1,000 service
connections shall pay an annual drinking water operating fee to the
department as set forth in this subdivision for costs incurred by the
department for conducting those activities mandated by this chapter
relating to inspections, monitoring, surveillance, and water quality
evaluation relating to public water systems. The total amount of
fees shall be sufficient to pay, but in no event shall exceed, the
department's actual cost in conducting these activities.
Notwithstanding adjustment of actual fees collected pursuant to
Section 100425 as authorized pursuant to subdivision (d) of Section
106590, the maximum amount that shall be paid annually by a public
water system pursuant to this section shall not exceed the following:
Type of public
water system Fee
15- 24 service connections ....................... $250
25- 99 service connections ....................... $400
100-499 service connections ....................... $500
500-999 service connections ....................... $700
Noncommunity water systems pursuant to
paragraph (1) of subdivision (j) of
Section 116275 .................................. $350
Noncommunity water systems exempted pursuant
to Section 116282 ............................... $100
(c) For purposes of determining the fees provided for in
subdivision (a), the department shall maintain a record of its actual
costs for pursuing the activities specified in subdivision (a)
relative to each system required to pay the fees. The fee charged
each system shall reflect the department's actual cost, or in the
case of a local primacy agency the local primacy agency's actual
cost, of conducting the specified activities.
(d) The department shall submit an invoice for cost reimbursement
for the activities specified in subdivision (a) to the public water
systems no more than twice a year.
(1) The department shall submit one estimated cost invoice to
public water systems serving 1,000 or more service connections and
any public water system that treats water on behalf of one or more
public water systems for the purpose of rendering it safe for human
consumption. This invoice shall include the actual hours expended
during the first six months of the fiscal year. The hourly cost rate
used to determine the amount of the estimated cost invoice shall be
the rate for the previous fiscal year.
(2) The department shall submit a final invoice to the public
water system prior to October 1 following the fiscal year that the
costs were incurred. The invoice shall indicate the total hours
expended during the fiscal year, the reasons for the expenditure, the
hourly cost rate of the department for the fiscal year, the
estimated cost invoice, and payments received. The amount of the
final invoice shall be determined using the total hours expended
during the fiscal year and the actual hourly cost rate of the
department for the fiscal year. The payment of the estimated
invoice, exclusive of late penalty, if any, shall be credited toward
the final invoice amount.
(3) Payment of the invoice issued pursuant to paragraphs (1) and
(2) shall be made within 90 days of the date of the invoice. Failure
to pay the amount of the invoice within 90 days shall result in a
10-percent late penalty that shall be paid in addition to the
invoiced amount.
(e) Any public water system under the jurisdiction of a local
primacy agency shall pay the fees specified in this section to the
local primacy agency in lieu of the department. This section shall
not preclude a local health officer from imposing additional fees
pursuant to Section 101325.
SEC. 12. Section 116580 of the Health and Safety Code is amended
to read:
116580. (a) Each public water system that requests an exemption,
plan review, variance, or waiver of any applicable requirement of
this chapter or any regulation adopted pursuant to this chapter,
shall reimburse the department for actual costs incurred by the
department in processing the request.
(b) The department shall submit an invoice to the water system
prior to October 1 of the fiscal year following the fiscal year in
which the department's decision was rendered with respect to the
request for a plan review, exemption, variance, or waiver. The
invoice shall indicate the number of hours expended by the department
and the department's hourly cost rate. Payment of the fee shall be
made within 120 days of the date of the invoice. The department may
revoke any approval of a request for an exemption, variance, or
waiver for failure to pay the required fees.
(c) Notwithstanding subdivisions (a) and (b), requests for, and
reimbursement of actual costs for, an exemption, variance, or waiver
for public water systems under the jurisdiction of the local primacy
agency shall, instead, be submitted to the local primacy agency
pursuant to subdivision (c) of Section 116595.
SEC. 13. Section 116585 of the Health and Safety Code is amended
to read:
116585. In any civil court action brought to enforce this
chapter, the prevailing party or parties shall be awarded litigation
costs, including, but not limited to, salaries, benefits, travel
expenses, operating equipment, administrative, overhead, other
litigation costs, and attorney's fees, as determined by the court.
Litigation costs awarded to the department by the court shall be
deposited into the Safe Drinking Water Account. Litigation costs
awarded to a local primacy agency by the court shall be used by that
local primacy agency to offset the local primacy agency's litigation
costs.
SEC. 14. Section 116650 of the Health and Safety Code is amended
to read:
116650. (a) If the department determines that a public water
system is in violation of this chapter or any regulation, permit,
standard, or order issued or adopted thereunder, the department may
issue a citation to the public water system. The citation shall be
served upon the public water system personally or by registered mail.
(b) Each citation shall be in writing and shall describe with
particularity the nature of the violation, including a reference to
the statutory provision, standard, order, or regulation alleged to
have been violated.
(c) For continuing violations, the citation shall fix the earliest
feasible time for elimination or correction of the condition
constituting the violation where
appropriate. If the public water system fails to correct a
violation within the time specified in the citation, the department
may assess a civil penalty as specified in subdivision (e).
(d) For a noncontinuing violation of primary drinking standards,
other than turbidity, the department may assess in the citation a
civil penalty as specified in subdivision (e).
(e) Citations issued pursuant to this section shall be classified
according to the nature of the violation or the failure to comply.
The department shall specify the classification in the citation and
may assess civil penalties for each classification as follows:
(1) For violation of a primary drinking standard, other than
turbidity, an amount not to exceed one thousand dollars ($1,000) for
each day that the violation occurred for noncontinuing violations or
for each day that the violation continues beyond the date specified
for correction in the citation.
(2) For failure to comply with any citation or order issued for
failure of the primary drinking water standard for turbidity or for
violation of a secondary drinking water standard that the director
determines may have a direct or immediate relationship to the welfare
of the users, an amount not to exceed one thousand dollars ($1,000)
for each day that the violation continues beyond the date specified
for correction in the citation.
(3) For failure to comply with any citation or order issued for
noncompliance with any department regulation or order, other than a
primary or secondary drinking water standard, an amount not to exceed
two hundred dollars ($200) per day for each day the violation
continues beyond the date specified for correction in the citation.
SEC. 15. Chapter 4.5 (commencing with Section 116760) is added to
Part 12 of Division 104 of the Health and Safety Code, to read:
CHAPTER 4.5. SAFE DRINKING WATER STATE REVOLVING FUND LAW OF
1997
Article 1. Short Title
116760. This chapter shall be known and may be cited as the Safe
Drinking Water State Revolving Fund Law of 1997.
Article 2. Legislative Findings of Necessity and Cause for
Action
116760.10. The Legislature hereby finds and declares all of the
following:
(a) The department has discovered toxic contaminants and new
pathogenic organisms, including cryptosporidium, in many of
California's public drinking water systems.
(b) Many of the contaminants in California's drinking water
supplies are known to cause, or are suspected of causing, cancer,
birth defects, and other serious illnesses.
(c) It is unlikely that the contamination problems of small public
water systems can be solved without financial assistance from the
state.
(d) The protection of the health, safety, and welfare of the
people of California requires that the water supplied for domestic
purposes be at all times pure, wholesome, and potable. It is in the
interest of the people that the state of California provide technical
and financial assistance to ensure a safe, dependable, and potable
supply of water for domestic purposes and that water is available in
adequate quantity at sufficient pressure for health, cleanliness, and
other domestic purposes.
(e) It is the intent of the Legislature to provide for the
upgrading of existing public water supply systems to ensure that all
domestic water supplies meet safe drinking water standards and other
requirements established under Chapter 4 (commencing with Section
116270).
(f) (1) The extent of the current risk to public health from
contamination in drinking water creates a compelling need to upgrade
existing public water systems. The demand for financial assistance
to enable public water systems to meet drinking water standards and
regulations exceeds funds available from the Safe Drinking Water
State Revolving Fund.
(2) A project whose primary purpose is to supply or attract growth
shall not be eligible to receive assistance from the Safe Drinking
Water State Revolving Fund.
(3) A project whose primary purpose is to enable a public water
system to improve public health protection by complying with drinking
water standards and regulations and that also includes components to
accommodate a reasonable amount of growth over its useful life shall
be eligible for assistance from the Safe Drinking Water State
Revolving Fund, but the project shall receive priority based on the
component to meet drinking water standards pursuant to Section
116760.70. The department shall expressly consider the effort of the
applicant to secure funds other than those available from the Safe
Drinking Water State Revolving Fund in establishing the priority
listing for funding pursuant to Article 4 (commencing with Section
116760.50).
(4) After projects have been prioritized for funding into priority
list categories pursuant to the requirements of Section 116760.70,
within each category, projects that do not include a component of
growth, shall receive priority for funding over projects that have a
component to accommodate a reasonable amount of growth.
(g) The Legislature further finds and declares that regional
solutions to water contamination problems are often more effective,
efficient, and economical than solutions designed to address solely
the problems of a single small public water system, and it is in the
interest of the people of the State of California to encourage the
consolidation of the management and the facilities of small water
systems to enable those systems to better address their water
contamination problems.
(h) The protection of drinking water sources is essential to
ensuring that the people of California are provided with pure,
wholesome, and potable drinking water.
(i) That coordination among local, state, and federal public
health and environmental management programs be undertaken to ensure
that sources of drinking water are protected while avoiding
duplication of effort and reducing program costs.
(j) It is necessary that a source water protection program be
implemented for the purposes of delineating, assessing, and
protecting drinking water sources throughout the state and that
federal funds be utilized pursuant to the federal Safe Drinking Water
Act (42 U.S.C. Sec. 300j et seq.) to carry out that program.
(k) It is in the interest of the people of the state to provide
funds for a perpetual Safe Drinking Water State Revolving Fund that
may be combined with similar federal funding to the extent the
funding is authorized pursuant to the federal Safe Drinking Water Act
(42 U.S.C. Sec. 300j et seq.).
(l) This chapter shall govern implementation of the Safe Drinking
Water State Revolving Fund, and shall be implemented in a manner that
is consistent with the federal Safe Drinking Water Act, and, to the
extent authorized under the federal act, in a manner that is
consistent with the California Safe Drinking Water Act, Chapter 4
(commencing with Section 116275).
Article 3. Safe Drinking Water State Revolving Fund
116760.20. Unless the context otherwise requires, the following
definitions govern the construction of this chapter:
(a) "Cost-effective project" means a project that achieves an
acceptable result at the most reasonable cost.
(b) "Department" means the State Department of Health Services.
(c) "Federal Safe Drinking Water Act" or "federal act" means the
federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.) and
acts amendatory thereof or supplemental thereto.
(d) "Fund" means the Safe Drinking Water State Revolving Fund
created by Section 116760.30.
(e) "Funding" means a loan or grant, or both, awarded under this
chapter.
(f) "Matching funds" means state money that equals that percentage
of federal contributions required by the federal act to be matched
with state funds.
(g) "Project" means proposed facilities for the construction,
improvement, or rehabilitation of a public water system, and may
include all items set forth in Section 116761 as necessary to carry
out the purposes of this chapter. It also may include refinancing
loans, annexation or consolidation of water systems, source water
assessments, source water protection, and other activities specified
under the federal act.
(h) "Public agency" means any city, county, city and county,
district, or joint powers authority, that owns or operates a public
water system.
(i) "Public water system" or "public water supply system" means a
system for the provision to the public of water for human
consumption, as defined in Chapter 4 (commencing with Section
116270), as it may be amended from time to time.
(j) "Reasonable amount of growth" means an increase in growth not
to exceed 10 percent of the design capacity needed, based on peak
flow, to serve the water demand in existence at the time plans and
specifications for the project are approved by the department, over
the 20-year useful life of a project. For projects other than the
construction of treatment plants including, but not limited to,
storage facilities, pipes, pumps, and similar equipment, where the
10-percent allowable growth cannot be adhered to due to the sizes of
equipment or materials available, the project shall be limited to the
next available larger size.
(k) "Safe drinking water standards" means those standards
established pursuant to Chapter 4 (commencing with Section 116270),
as they may now or hereafter be amended.
(l) "Supplier" means any persons, partnership, corporation,
association, public agency, or other entity that owns or operates a
public water system.
116760.30. (a) There is hereby created in the State Treasury the
Safe Drinking Water State Revolving Fund for the purpose of
implementing this chapter, and, notwithstanding Section 13340 of the
Government Code, the fund is hereby continuously appropriated,
without regard to fiscal years, to the department to provide, from
moneys available for this purpose, grants or revolving fund loans for
the design and construction of projects for public water systems
that will enable suppliers to meet safe drinking water standards.
The department shall be responsible for administering the fund.
(b) The department shall report at least once every two years to
the policy and budget committees of the Legislature on the
implementation of this chapter and expenditures from the fund. The
report shall describe the numbers and types of projects funded, the
reduction in risks to public health from contaminants in drinking
water provided through the funding of the projects, and the criteria
used by the department to determine funding priorities.
116760.40. The department may undertake any of the following
actions to implement the Safe Drinking Water State Revolving Fund:
(a) Enter into agreements with the federal government for federal
contributions to the fund.
(b) Accept federal contributions to the fund.
(c) Use moneys in the fund for the purposes permitted by the
federal act.
(d) Provide for the deposit of matching funds and any other
available and necessary moneys into the fund.
(e) Make requests on behalf of the state for deposit into the fund
of available federal moneys under the federal act.
(f) Determine on behalf of the state that public water systems
that receive financial assistance from the fund will meet the
requirements of, and otherwise be treated as required by, the federal
act.
(g) Provide for appropriate audit, accounting, and fiscal
management services, plans, and reports relative to the fund.
(h) Take such additional incidental action as may be appropriate
for adequate administration and operation of the fund.
(i) Enter into an agreement with, and accept matching funds from,
a public water system. A public water system that seeks to enter
into an agreement with the department and provide matching funds
pursuant to this subdivision shall provide to the department evidence
of the availability of those funds in the form of a written
resolution, or equivalent document, from the public water system
before it requests a preliminary loan commitment.
(j) Charge public water systems that elect to provide matching
funds a fee to cover the actual cost of obtaining the federal funds
pursuant to Section 1452(e) of the federal act (42 U.S.C.A. Sec.
300j-12) and to process the loan application. The fee shall be
waived by the department if sufficient funds to cover those costs are
available from other sources.
(k) Use money returned to the fund under Section 116761.85 and any
other source of matching funds, if not prohibited by statute, as
matching funds for the federal administrative allowance under Section
1452(g) of the federal act (42 U.S.C.A. Sec. 300j-12).
(l) Establish separate accounts or subaccounts as required or
allowed in the federal act and related guidance, for funds to be used
for administration of the fund and other purposes. Within the fund
the department shall establish the following accounts, including, but
not limited to:
(1) A fund administration account for state expenses related to
administration of the fund pursuant to Section 1452(g)(2) of the
federal act.
(2) A water system reliability account for department expenses
pursuant to Section 1452(g)(2)(A), (B), (C), or (D) of the federal
act.
(3) A source protection account for state expenses pursuant to
Section 1452(k) of the federal act.
(4) A small system technical assistance account for department
expenses pursuant to Section 1452(g)(2) of the federal act.
(5) A state revolving loan account pursuant to Section 1452(a)(2)
of the federal act.
(m) Deposit federal funds for administration and other purposes
into separate accounts or subaccounts as allowed by the federal act.
(n) Determine on behalf of the state whether sufficient progress
is being made toward compliance with the enforceable deadlines,
goals, and requirements of the federal act and the California Safe
Drinking Water Act, Chapter 4 (commencing with Section 116275).
116760.41. Moneys in the fund and the special accounts may be
expended for additional purposes provided in the federal act.
116760.42. (a) The department may enter into an agreement with
the federal government for federal contributions to the fund only if
both of the following apply:
(1) The state has obtained or appropriated any required state
matching funds.
(2) The department is prepared to commit to expenditure of any
minimum amount in the fund in the manner required by the federal act.
(b) Any agreement between the department and the federal
government shall contain those provisions, terms, and conditions
required by the federal act, and any implementing federal rules,
regulations, guidelines, and policies, including, but not limited to,
agreement to the following:
(1) Moneys in the fund shall be expended in an expeditious and
timely manner.
(2) All moneys in the fund as a result of federal capitalization
grants shall be expended to ensure sufficient progress is being made
toward compliance with the enforceable deadlines, goals, and
requirements of the federal act, including any applicable compliance
deadlines.
(3) Federal funds deposited in the special accounts are
continuously appropriated for use by the department as allowed by
federal law. Any unexpended funds in the special accounts shall be
carried over into subsequent years for use by the department.
116760.43. (a) The department may adopt emergency regulations
pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code necessary or convenient
to implement this chapter and to meet requirements pursuant to the
federal act.
(b) The adoption of any emergency regulations that are filed with
the Office of Administrative Law within 18 months of the effective
date of this act shall be deemed to be an emergency and necessary for
the immediate preservation of the public peace, health and safety,
or general welfare.
116760.44. The department may deposit administrative fees and
charges paid by public water systems and other available and
necessary money into the administrative account of the fund.
Article 4. Establishment and Utilization of Priority List for
Funding
116760.50. The department shall establish criteria that shall be
met for projects to be eligible for consideration for funding under
this chapter. The criteria shall include all of the following:
(a) All preliminary design work for a defined project that will
enable the applicant to supply water that meets safe drinking water
standards, including a cost estimate for the project, shall be
completed.
(b) A legal entity shall exist that has the authority to enter
into contracts and incur debt on behalf of the community to be served
and owns the public water system or has the right to operate the
public water system under a lease with a term of at least 20 years,
unless otherwise authorized by the department. If the proposed
project is funded by a loan under this chapter, the department may
require the applicant to secure a lease for the full term of the loan
if the loan exceeds 20 years.
(c) The applicant shall hold all necessary water rights.
(d) The applicant shall have completed any review required
pursuant to the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) and the
guidelines adopted pursuant thereto, and have included plans for
compliance with that act in its preliminary plans for the project.
(e) The applicant has assembled sufficient financial data to
establish its ability to complete the proposed project and to
establish the amount of debt financing it can undertake.
116760.60. The department shall notify suppliers that may be
eligible for funding pursuant to this chapter of the purposes of this
chapter and the regulations established by the department.
116760.70. (a) The department, after public notice and hearing,
shall, from time to time, establish a priority list of proposed
projects to be considered for funding under this chapter. In doing
so, the department shall determine if improvement or rehabilitation
of the public water system is necessary to provide pure, wholesome,
and potable water in adequate quantity at sufficient pressure for
health, cleanliness, and other domestic purposes. The department
shall establish criteria for placing public water systems on the
priority list for funding which shall include criteria for priority
list categories. Priority shall be given to projects that meet all
of the following requirements:
(1) Address the most serious risk to human health.
(2) Are necessary to ensure compliance with requirements of
Chapter 4 (commencing with Section 116270) including requirements for
filtration.
(3) Assist systems most in need on a per household basis according
to affordability criteria.
(b) The department may, in establishing a new priority list, merge
those proposed projects from the existing priority list into the new
priority list.
(c) In establishing the priority list, the department shall
consider the system's implementation of an ongoing source water
protection program or wellhead protection program.
(d) In establishing the priority list categories and the priority
for funding projects, the department shall carry out the intent of
the Legislature pursuant to subdivisions (e) and (f) of Section
116760.10 and do all of the following:
(1) Give priority to upgrade an existing system to meet drinking
water standards.
(2) After giving priority pursuant to paragraph (1), consider
whether the applicant has sought other funds when providing funding
for a project to upgrade an existing system and to accommodate a
reasonable amount of growth.
(e) Consideration of an applicant's eligibility for funding shall
initially be based on the priority list in effect at the time the
application is received and the project's ability to proceed. If a
new priority list is established during the time the application is
under consideration, but before the applicant receives a letter of
commitment, the department may consider the applicant's eligibility
for funding based on either the old or new priority list.
(f) The department may change the ranking of a specific project on
the priority lists at any time following the publication of the list
if information, that was not available at the time of the
publication of the list, is provided that justifies the change in the
ranking of the project.
(g) The department shall provide one or more public hearings on
the Intended Use Plan, the priority list, and the criteria for
placing public water systems on the priority list. The department
shall provide notice of the Intended Use Plan, criteria, and priority
list not less than 30 days before the public hearing. The Intended
Use Plan, criteria, and priority list shall not be subject to the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. The department
shall conduct duly noticed public hearings and workshops around the
state to encourage the involvement and active input of public and
affected parties, including, but not limited to, water utilities,
local government, public interest, environmental, and consumer
groups, public health groups, land conservation interests, health
care providers, groups representing vulnerable populations, groups
representing business and agricultural interests, and members of the
general public, in the development and periodic updating of the
Intended Use Plan and the priority list.
(h) The requirements of this section do not constitute an
adjudicatory proceeding as defined in Section 11405.20 of the
Government Code and Section 11410.10 of the Government Code is not
applicable.
116760.79. Applications for funding under this chapter shall be
made in the form and with the supporting material prescribed by the
department.
116760.80. (a) The department shall determine, based on
applications received, whether a particular applicant meets the
criteria to be eligible for consideration.
(b) If the applicant does not meet the criteria, it may be
considered for planning and preliminary engineering study funding.
Applicants successfully completing a study are eligible for
consideration for project design and construction funding after their
study is completed and they have met the criteria to be eligible for
consideration for project design and construction funding.
116760.90. (a) The department shall not approve an application
for funding unless the department determines that the proposed study
or project is necessary to enable the applicant to meet safe drinking
water standards, and is consistent with an adopted countywide plan,
if any. The department may refuse to fund a study or project if it
determines that the purposes of this chapter may more economically
and efficiently be met by means other than the proposed study or
project. The department shall not approve an application for funding
a project with a primary purpose to supply or attract future growth.
The department may limit funding to costs necessary to enable
suppliers to meet primary drinking water standards, as defined in
Chapter 4 (commencing with Section 116270).
(b) With respect to applications for funding of project design and
construction, the department shall also determine all of the
following:
(1) Upon completion of the project, the applicant will be able to
supply water that meets safe drinking water standards.
(2) The project is cost-effective.
(3) If the entire project is not to be funded under this chapter,
the department shall specify which costs are eligible for funding.
Article 5. Project Eligibility, Funding, and Contracts
116761. Planning and preliminary engineering studies, project
design, and construction costs eligible for funding under this
chapter shall be established by the department and may include any of
the following:
(a) Reasonable costs for the construction, improvement, or
rehabilitation of facilities of the public water system, which may
include water supply, treatment works, and all or part of a water
distribution system, if necessary to carry out the purposes of this
chapter.
(b) Reasonable costs associated with the consolidation of water
systems, including, but not limited to, reasonable facility fees,
connection fees, or similar charges.
(c) Reasonable costs of purchasing water systems, water rights, or
watershed lands.
(d) Operation and maintenance costs only to the extent they are
used in the startup and testing of the completed project. All other
operation and maintenance costs shall be the responsibility of the
supplier and shall not be considered as part of the project costs.
(e) Reasonable costs of establishing eligibility for funding under
this chapter that were incurred before the department entered into a
commitment to fund the project under this chapter.
(f) The acquisition of real property or interests therein only if
the acquisition is integral to a project, and as otherwise limited in
the federal act.
116761.20. (a) Planning and preliminary engineering studies,
project design, and construction costs may be funded under this
chapter by loans, or, in the case of public agencies, by grants or a
combination of grants and loans.
(b) The department shall determine what portion of the full costs
the public agency is capable of repaying and authorize funding in the
form of a loan for that amount. The department shall authorize a
grant only to the extent the department finds the public agency is
unable to repay the full costs of a loan.
(c) At the request of the department, the Public Utilities
Commission shall submit comments concerning the ability of suppliers,
subject to its jurisdiction, to finance the project from other
sources and to repay the loan.
116761.21. Not more than 30 percent and not less than 15 percent,
provided that there are projects eligible for funding as prescribed
in Section 116760.70, of the total amount deposited in the fund may
be expended for grants. This amount shall be limited to
disadvantaged communities specified in Section 1452(d) of the federal
act (42 U.S.C.A. Sec. 300j-12).
116761.22. Loans for project design and construction shall be
repaid over a term not longer than the useful life of the project
constructed or 20 years, whichever is shorter, except as provided in
the federal act.
116761.23. (a) The maximum amount of a grant permitted under this
chapter for the planning and preliminary engineering studies,
design, and
construction of a single project is one million dollars ($1,000,000).
(b) Total funding under this article for planning and preliminary
engineering studies, project design, and construction costs of a
single project, whether in the form of a loan or a grant, or both,
shall be determined by an assessment of affordability using criteria
established by the department.
116761.24. Not less than 15 percent of the total amount deposited
in the fund shall be expended for providing loans and grants to
public water systems that regularly serve fewer than 10,000 persons
to the extent those funds can be obligated for eligible projects.
116761.40. The failure or inability of any public water system to
receive funds under this chapter or any other loan or grant program
or any delay in obtaining the funds shall not alter the obligation of
the system to comply in a timely manner with all applicable drinking
water standards and requirements of the California Safe Drinking
Water Act or the federal act.
Article 6. Contracts for Project Funding
116761.50. (a) The department may enter into contracts with
applicants for grants or loans for the purposes set forth in this
chapter. Any contract entered into pursuant to this section shall
include only terms and conditions consistent with this chapter and
the regulations established under this chapter.
(b) The contract shall include all of the following terms and
conditions that are applicable:
(1) An estimate of the reasonable cost of the project or study.
(2) An agreement by the department to loan or grant, or loan and
grant, the applicant an amount that equals the portion of the costs
found by the department to be eligible for a state loan or grant.
The agreement may provide for disbursement of funds during the
progress of the study or construction, or following completion of the
study or construction, as agreed by the parties.
(3) An agreement by the applicant to proceed expeditiously with
the project or study.
(4) An agreement by the applicant to commence operations of the
project upon completion of the project, and to properly operate and
maintain the project in accordance with the applicable provisions of
law.
(5) In the case of a loan, an agreement by the applicant to repay
the state, over a period not to exceed the useful life of the project
or 20 years, whichever is shorter, except as provided in the federal
act, or in the case of a study, over a period not to exceed five
years, all of the following:
(A) The amount of the loan.
(B) The administrative fee specified in subdivision (a) of Section
116761.70.
(C) Interest on the principal, which is the amount of the loan
plus the administrative fee.
(6) In the case of a grant, an agreement by the public agency to
operate and maintain the water system for a period of 20 years,
unless otherwise authorized by the department.
(c) The contract may include any of the following terms and
conditions:
(1) An agreement by the supplier to adopt a fee structure that
provides for the proper maintenance and operations of the project and
includes a sinking fund for repair and replacement of the facilities
in cases where appropriate. The fee structure shall also provide an
acceptable dedicated source of revenue for the repayment of the
amount of the loan, and the payment of administrative fees and
interest.
(2) If the entire project is not funded pursuant to this chapter,
the department may include a provision requiring the applicant to
share the cost of the project or obtain funding from other sources.
(d) The department may require applicants to provide security for
loan contracts.
116761.60. All funding received under this chapter shall be
expended by the applicant within three years of the execution of the
contract with the department or its designee. The three-year period
may be extended, with the approval of the department, until five
years after the date the original contract, not including amendments,
was executed.
Article 7. Safe Drinking Water State Revolving Fund Management
116761.62. (a) To the extent permitted by federal and state law,
moneys in the fund may be expended to rebate to the federal
government all arbitrage profits required by the federal Tax Reform
Act of 1986 (P.L. 99-514) or any amendment thereof or supplement
thereto. To the extent that this expenditure of the moneys in the
fund is prohibited by federal or state law, any rebates required by
federal law shall be paid from the General Fund or other sources,
upon appropriation by the Legislature.
(b) Notwithstanding any other provisions of law or regulation, the
department may enter into contracts or may procure those services
and equipment that may be necessary to ensure prompt and complete
compliance with any provisions relating to the fund imposed by either
the federal Tax Reform Act of 1986 (P.L. 99-514) or the federal Safe
Drinking Water Act.
116761.65. (a) The department shall annually establish the
interest rate for loans made pursuant to this chapter at 50 percent
of the average interest rate, computed by the true interest cost
method, paid by the state on general obligation bonds issued in the
prior calendar year. All loans made pursuant to this chapter shall
carry the interest rate established for the calendar year in which
the funds are committed to the loan, as of the date of the letter of
commitment. The interest rate set for each loan shall be applied
throughout the repayment period of the loan. Interest on the loan
shall not be deferred.
(b) Notwithstanding subdivision (a), if the loan applicant is a
public water system that is a disadvantaged community or provides
matching funds, the interest rate on the loan shall be zero percent.
116761.70. (a) Not more than 4 percent of the capitalization
grant may be used by the department for administering this chapter.
The department may establish a reasonable schedule of administrative
fees for loans, which shall be paid by the applicant to reimburse the
state for the costs of the state administration of this chapter.
(b) Charges incurred by the Attorney General in protection of the
state's interest in the use of repayment of grant and loan funds
under this chapter shall be paid. These charges shall not be paid
from funds allocated for administrative purposes, but shall be
treated as a program expense not to exceed one-half of 1 percent of
the total amount deposited in the fund.
116761.80. (a) The department may expend money repaid to the
state pursuant to any contract executed under Section 116761.50 as
necessary for the administration of contracts entered into by the
department under this chapter, but those expenditures may not in any
year exceed 1.5 percent of the amount of principal and interest
projected to be paid to the state in that year pursuant to this
chapter.
(b) Charges incurred by the Attorney General in protecting the
state's interest in the use of funds and repayment of funds under
this chapter may be paid by the department from these funds, but
those charges may not exceed one-half of 1 percent of the amount of
principal and interest projected to be paid to the state in that year
pursuant to this chapter.
(c) Any of these sums unexpended by the department at the end of
any year shall automatically revert to the fund.
116761.85. Except as provided in Section 116761.80, all money
repaid to the state pursuant to any contract executed under
subdivision (a) of Section 116761.50, including interest payments and
all interest earned on or accruing to any moneys in the fund, shall
be deposited in the fund and shall be available in perpetuity, for
expenditure for the purposes and uses permitted by this chapter and
the federal act.
116761.86. To the extent amounts in the fund are not required for
current obligation or expenditure, those amounts shall be invested
in interest bearing obligations, and the interest earned shall become
part of the fund.
Article 8. Source Water Protection Program
116762.60. (a) The department shall, contingent upon receiving
federal capitalization grant funds, develop and implement a program
to protect sources of drinking water. In carrying out this program,
the department shall coordinate with local, state, and federal
agencies that have public health and environmental management
programs to ensure an effective implementation of the program while
avoiding duplication of effort and reducing program costs. The
program shall include the following:
(1) A source water assessment program to delineate and assess the
drinking water supplies of public drinking water systems pursuant to
Section 1453 of the federal act.
(2) A wellhead protection program to protect drinking water wells
from contamination pursuant to Section 1428 of the federal act.
(3) Pursuant to Section 1452(k) of the federal act, the department
shall set aside federal capitalization grant funds sufficient to
carry out paragraphs (1) and (2) of subdivision (a).
(b) The department shall set aside federal capitalization grant
funds to provide assistance to water systems pursuant to Section 1452
(k) of the federal act for the following source water protection
activities, to the extent that those activities are proposed:
(1) To acquire land or a conservation easement if the purpose of
the acquisition is to protect the source water of the system from
contamination and to ensure compliance with primary drinking water
regulations.
(2) To implement local, voluntary source water protection measures
to protect source water in areas delineated pursuant to Section 1453
of the federal act, in order to facilitate compliance with primary
drinking water regulations applicable to the water system under
Section 1412 of the federal act or otherwise significantly further
the health protection objectives of the federal and state acts.
(3) To carry out a voluntary, incentive-based source water quality
protection partnership pursuant to Section 1454 of the federal act.
(c) The department shall conduct duly noticed public hearings,
public workshops, focus groups, or meetings around the state to
encourage the involvement and active input of public and affected
parties in the development and periodic updating of the source water
protection program adopted pursuant to this article. The notices
shall contain basic information about the program in an
understandable format and shall notify widely representative groups,
including, but not limited to, federal, state, and local governmental
agencies, water utilities, public interest, environmental, and
consumer groups, public health groups, land conservation groups,
health care providers, groups representing vulnerable populations,
groups representing business and agricultural interests, and members
of the general public. In addition, the department shall convene a
technical advisory committee and a citizens' advisory committee made
up of those representative groups to provide advice and direction on
program development and implementation.
(d) The department shall submit a report to the Legislature every
two years on its activities under this section. The report shall
contain a description of each program for which funds have been set
aside under this section, the effectiveness of each program in
carrying out the intent of the federal and state acts, and an
accounting of the amount of set aside funds used.
SEC. 16. Section 116875 of the Health and Safety Code is repealed.
SEC. 17. Section 116875 is added to the Health and Safety Code, to
read:
116875. (a) No person shall use any pipe, pipe or plumbing
fitting or fixture, solder, or flux that is not lead free in the
installation or repair of any public water system or any plumbing in
a facility providing water for human consumption, except when
necessary for the repair of leaded joints of cast iron pipes.
(b) No person shall introduce into commerce any pipe, pipe or
plumbing fitting, or fixture, that is not lead free, except for a
pipe that is used in manufacturing or industrial processing.
(c) No person engaged in the business of selling plumbing
supplies, except manufacturers, shall sell solder or flux that is not
lead free.
(d) No person shall introduce into commerce any solder or flux
that is not lead free unless the solder or flux bears a prominent
label stating that it is illegal to use the solder or flux in the
installation or repair of any plumbing providing water for human
consumption.
(e) For the purposes of this section, "lead free" means not more
than 0.2 percent lead when used with respect to solder and flux and
not more than 8 percent when used with respect to pipes and pipe
fittings. With respect to plumbing fittings and fixtures, "lead free"
means not more than 4 percent by dry weight after August 6, 2002,
unless the department has adopted a standard, based on health
effects, for the leaching of lead.
SEC. 18. Section 116880 of the Health and Safety Code is amended
to read:
116880. The department shall adopt building standards to
implement Section 116875. The standards shall be adopted in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code and shall be
published in the State Building Standards Code located in Title 24 of
the California Code of Regulations. The standards shall be enforced
by the appropriate state and local building and health officials.
SEC. 19. Section 13169 is added to the Water Code, to read:
13169. (a) The state board is authorized to develop and implement
a groundwater protection program as provided under the Safe Drinking
Water Act, Section 300 and following of Title 42 of the United
States Code, and any federal act that amends or supplements the Safe
Drinking Water Act. The authority of the state board under this
section includes, but is not limited to, the following:
(1) To apply for and accept state groundwater protection grants
from the federal government.
(2) To take any additional action as may be necessary or
appropriate to assure that the state's groundwater protection program
complies with any federal regulations issued pursuant to the Safe
Drinking Water Act or any federal act that amends or supplements the
Safe Drinking Water Act.
(b) Nothing in this section is intended to expand the authority of
the state board as authorized under the Porter-Cologne Water Quality
Control Act (Div. 7 (commencing with Sec. 13000) Wat. C.).
SEC. 20. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to revise the law regulating drinking water in the state
as soon as possible, and in order that the Safe Drinking Water State
Revolving Fund Law of 1997 be available to public water systems, it
is necessary that this act take effect immediately.