BILL ANALYSIS
AB 1438
Page 1
ASSEMBLY THIRD READING
AB 1438 (Conway)
As Amended May 4, 2009
Majority vote
ENVIRONMENTAL SAFETY 7-0 WATER, PARKS
& WILDLIFE 13-0
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|Ayes:|Chesbro, Miller, Davis, |Ayes:|Huffman, Fuller, |
| |Feuer, Monning, Ruskin, | |Anderson, Arambula, Tom |
| |Smyth | |Berryhill, Blumenfield, |
| | | |Caballero, Fletcher, |
| | | |Krekorian, Bonnie |
| | | |Lowenthal, |
| | | |John A. Perez, Salas, |
| | | |Yamada |
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APPROPRIATIONS 17-0
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|Ayes:|De Leon, Nielsen, Ammiano, |
| |Charles Calderon, Davis, Duvall, |
| |Fuentes, Hall, Harkey, Miller, |
| |John A. Perez, Price, Skinner, |
| |Solorio, |
| |Audra Strickland, Torlakson, |
| |Krekorian |
|-----+---------------------------------|
| | |
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SUMMARY : Revises the requirements of the Safe Drinking Water
State Revolving Fund (State Revolving Fund), including
eliminating the maximum amount of a grant award for single
projects. Specifically, this bill :
1)Adds fire flow demand as a criterion that must be considered
when determining "reasonable amount of growth" for project
funding under the State Revolving Fund.
2)Requires the California Department of Public Health (DPH), in
order to implement the State Revolving Fund, to establish a
wellhead protection account pursuant to Section 1452(a) (2) of
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the federal Safe Drinking Water Act (SDWA).
3)Adds environmental documentation as an activity eligible for
funding under the State Revolving Fund.
4)Revises, from $1 million dollars to an amount established by
DPH, the maximum amount of a grant permitted under the State
Revolving Fund for the planning, engineering studies,
environmental documentation, design or construction of a
single project. Requires the amount to be published in the
Intended Use Plan (IUP) submitted annually to the federal
Environmental Protection Agency (US EPA).
EXISTING LAW : Caps state funding, through the State Revolving
Fund, for engineering studies, design and construction of
projects at $1 million.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, ongoing annual costs to DPH of approximately $175,000
to establish a wellhead protection account and to establish and
regularly update the administratively determined limit on
revolving fund grants (federal funds); and, cost pressure to
DPH, possibly in the millions of dollars, resulting from the
potential of larger revolving fund grants, resulting from the
modifications to criteria and limits made by this bill (federal
funds).
COMMENTS : AB 1438 removes the statutory cap of $1 million for
State Revolving Fund grant awards for single projects, and
instead authorizes DPH to set the level of grant awards through
a public process. Supporters argue that this flexibility
enables DPH to more effectively fund drinking water projects in
communities with diverse needs and therefore better assist
disadvantaged communities. The sponsors of this bill contend
that the $1 million cap prevents low-income communities from
upgrading their drinking water infrastructure. This bill, by
allowing DPH to administratively determine maximum grant
amounts, will provide flexibility in the administration of the
program to allow projects that may be more costly, but more
effective and more sustainable.
The SWRCB, in its June 16, 2008, Water Boards' Draft Small
Community Wastewater Strategy, asserts that, "?Small communities
face specific challenges related to their drinking water and
wastewater systems. Many are currently on failing septic
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systems or have old and undersized wastewater treatment plants
that cannot meet current water quality standards. Such systems
can cause significant health and safety problems, endanger
surface water uses, and pose a threat to groundwater supplies?
Therefore, more financial, technical, and regulatory assistance
is needed to bring small communities into compliance." This
bill attempts to provide additional assistance to communities in
need by enabling the DPH to award grants sufficient to fund
necessary drinking water and wastewater system projects.
On February 17, 2009, President Obama signed the American
Recovery and Reinvestment Act of 2009 (ARRA) into law. Among
its provisions, ARRA provides approximately $160 million to the
State Revolving Fund for infrastructure development for
California's drinking water systems. On March 27, 2009, the
Governor signed SBX3 27 (Negrete McLeod) Chapter 25, Statutes of
2009-10 Third Extraordinary Session, which expanded authorized
uses for clean drinking water and wastewater funding pursuant to
the ARRA.
Analysis Prepared by : Shannon McKinney / E.S. & T.M. / (916)
319-3965
FN: 0001101