BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2515 (V. M. Perez)
Hearing Date: 08/02/2010 Amended: 08/02/2010
Consultant: Brendan McCarthy Policy Vote: EQ 7-0
AB 2515 (V. M. Perez), Page 2
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BILL SUMMARY: AB 2515, an urgency measure, requires the
Department of Public Health to adopt emergency regulations
governing the use of point-of-entry and point-of-use water
treatment systems. The bill also authorizes the Department to
award grants for the installation of point-of-entry and
point-of-use water treatment systems.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Regulation development and Absorbable within existing
resources General /
grant making Federal
Cost pressure for grants Unknown Federal
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STAFF COMMENTS: SUSPENSE FILE.
Under current law, the Department of Public Health 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 the Department 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.
AB 1540 (Committee on Health, Chapter 298, Statutes of 2009)
requires the Department of Public Health to develop guidelines
for the use of point-of-entry and point-of-use water treatment
systems. (These systems can be used to treat drinking water to
required standards when a centralized water treatment system is
unavailable.) The use of these systems is limited to certain
small communities that have already applied for funding to
correct violations of water quality requirements. The Department
indicates that these regulations are under development, but will
not be finalized until 2012.
AB 2515 requires the Department to adopt emergency regulations
for the use of point-of-entry and point-of-use water treatment
AB 2515 (V. M. Perez), Page 2
systems. The emergency regulations would not be subject to the
Administrative Procedures Act (beginning at Section 11340 of the
Government Code). The emergency regulations would only remain in
effect until January 1, 2014 or the effective date of the
regular regulations under development.
AB 2515 authorizes the Department to award grants for
point-of-entry and point-of-use treatment systems, provided that
the water system serves a severely disadvantaged community and
that the grant meets other existing requirements. The bill
specifies that any systems purchased with grant funds that have
remaining useful life at the completion of the project shall be
provided for use in other projects.
The provisions of the bill sunset on January 1, 2014.
This bill is an urgency measure.
Because the bill authorizes an additional use of a continuously
appropriated fund, the bill makes an appropriation.
The Department indicates that the development of emergency
regulations can be accommodated within existing resources
dedicated to the development of the permanent regulations. In
addition, the Department indicates that any costs for grant
making can be accommodated within the existing grant program.
Because the bill authorizes grants for additional water system
projects, the bill will put cost pressures on existing funds.
The amount of the cost pressure will depend on the demand for
point-of-entry and point-of-use waster treatment systems and is
unknown.
AB 2669 (V. M. Perez) adds environmental documentation to the
list of project costs that the Department of Public Health
considers when determining affordability in order to award
grants or loans for drinking water systems. That bill has been
reported to the Second Reading File, pursuant to Senate Rule
28.8.