BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1438|
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THIRD READING
Bill No: AB 1438
Author: Conway (R)
Amended: 9/2/09 in Senate
Vote: 21
SENATE ENV. QUALITY COMMITTEE : 7-0, 7/6/09
AYES: Simitian, Runner, Ashburn, Corbett, Hancock,
Lowenthal, Pavley
SENATE APPROPRIATIONS COMMITTEE : 13-0, 8/27/09
AYES: Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,
Price, Runner, Walters, Wolk, Wyland, Yee
ASSEMBLY FLOOR : 79-0, 6/1/09 - See last page for vote
SUBJECT : Safe Drinking Water State Revolving Fund
SOURCE : California Rural Legal Assistance Foundation
Environmental Justice Coalition
Clean Water Action
DIGEST : This bill makes several changes to the statutes
governing the administration of the Safe Drinking Water
State Revolving Fund. This bill expands the Department of
Public Health's authority to provide funding through
grants, primarily for projects in disadvantaged
communities.
Senate Floor Amendments of 9/2/09 make clarifying changes.
CONTINUED
AB 1438
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ANALYSIS : Under federal law, the U.S. Environmental
Protection Agency provides funding to the states to ensure
safe drinking water is available to the public. In recent
years, the federal government has provided about $70
million per year to the state. The American Recovery and
Reinvestment Act of 2009 provides about $160 million in
additional funding to California for projects to develop
drinking water infrastructure.
Under current law, the Department of Public Health (DPH)
regulates drinking water and also provides funding to local
governments for projects to protect and provide safe
drinking water. The Safe Drinking Water State Revolving
Fund (Revolving Fund) is continuously appropriated to DPH
to provide grants and loans for the design and construction
of public water system projects. The Revolving Fund is
supported by federal funds and repayment of previous loans.
Current law limits the amount that DPH may provide as a
grant to $1,000,000.
This bill makes several changes to the operation of the
Revolving Fund. This bill adds fire flow as a criterion
that must be considered by DPH when evaluating the
reasonable rate of growth for a proposed project. This
bill requires DPH to establish a specific wellhead
protection account within the Revolving Fund, pursuant to
federal law.
This bill specifies that the maximum amount for a planning
grant (which can be used to pay for planning, engineering
studies, environmental documentation, and design) shall be
no more than $500,000. This bill also requires that the
maximum construction grant amount shall be no more than
$3,000,000 unless the maximum amount is increased
administratively by DPH. However, the bill provides that
DPH may approve a construction grant up to $10,000,000 if
it finds that: 1) a disadvantaged community has a need for
a project grant that exceeds $3,000,000; 2) the
disadvantaged community has been bypassed in at least one
previous funding cycle due to a lack of funds; 3) the
disadvantaged community meets all eligibility criteria; and
4) the project represents the highest public health risk
amongst unfunded projects.
AB 1438
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
DPH implementation $80 $154 $154Federal
Cost pressures on Unknown,
potentially in the millions Federal
federal funds
SUPPORT : (Verified 9/3/09)
California Rural Legal Assistance Foundation (co-source)
Environmental Justice Coalition (co-source)
Clean Water Action (co-source)
Association of California Water Agencies
California Water Association
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,
Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,
Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,
Miller, Monning, Nava, Nestande, Niello, Nielsen, John A.
Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Yamada, Bass
NO VOTE RECORDED: Block
TSM:nl 9/3/09 Senate Floor Analyses
AB 1438
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SUPPORT/OPPOSITION: SEE ABOVE
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