BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 963
                                                                  Page 1

          Date of Hearing:   April 26, 2011

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Bob Wieckowski, Chair
                    AB 963 (Valadao) - As Amended:  April 12, 2011
           
          SUBJECT  :   Safe Drinking Water, Water Quality and Supply, Flood 
          Control, River and Coastal Protection Act of 2006 (Proposition 
          84).

           SUMMARY  :   Provides direction to the California Department of 
          Public Health (DPH) on the expenditure of funds from Proposition 
          84.  Specifically,  this bill  requires the DPH to establish 
          guidelines for grants and loans under the provisions of 
          Proposition 84 to include:

          1)Projects for disadvantaged or severely disadvantaged 
            communities.

          2)Projects that consider demonstrated prevention of illness and 
            adverse public health effects in a community.

          3)Projects that provide replacement drinking water systems in 
            areas with contaminated groundwater that may not be 
            economically remediated for drinking water purposes.

          4)Projects that include the acquisition of public water systems 
            by local agencies as part of a project to provide clean and 
            safe water for small communities.

           EXISTING LAW  :

          1)Authorizes, under Proposition 84, approved by the voters in 
            2006, the State to sell about $5.4 billion in general 
            obligation bonds for safe drinking water, water quality, and 
            water supply; flood control; natural resource protection; and 
            park improvements.

          2)Appropriates $180,000,000 of that bond money for grants for 
            small community drinking water system infrastructure 
            improvements and related actions to meet safe drinking water 
            standards.

           FISCAL EFFECT  :   Unknown.









                                                                  AB 963
                                                                  Page 2

           COMMENTS  :

           Need for the bill.   According to the author, "There are many 
          small, underprivileged communities throughout the state that are 
          dealing with bad water.  Because these communities have limited 
          resources they are forced to use this source of water and in 
          some cases this has posed a risk not only to the environment, 
          but to public health as well."

          This legislation was introduced to assist rural disadvantaged 
          communities, including Kettleman City, by requiring DPH to 
          establish guidelines for Proposition 84 grants that include the 
          need to connect with existing sources of clean water rather than 
          limiting projects to those that clean-up groundwater sources.

          Kettleman City is located near and adjacent to active 
          agricultural areas and two highways, and is approximately 3.5 
          miles northeast of the state's principal hazardous waste 
          landfill.  There have been exceedances of the public drinking 
          water standard for arsenic in the community's drinking water 
          supply since that standard was lowered several years ago.

          Since September 2007, an apparent increase in babies born with 
          structural defects, some of whom have died, has greatly 
          increased the concern within the community of Kettleman City 
          that environmental exposures to contaminants are the cause.

          According the California Environmental Protection Agency 
          (CalEPA), Kettleman City has submitted an application for a 
          State loan to install a surface water treatment plant that would 
          provide the community with surface water from the California 
          Aqueduct as a replacement for its customers and allow it to 
          abandon the current ground water sources.

           
          Current Related Legislation:

          AB 467 (Eng).   This bill allows local agencies receiving grants 
          or loans from Proposition 84 from the DPH, for groundwater 
          projects that are able to subsequently recover costs from 
          responsible parties, to keep that money to fund additional 
          groundwater cleanup activities.  AB 467 is currently pending in 
          the Assembly Appropriations Committee.

           REGISTERED SUPPORT / OPPOSITION  :








                                                                  AB 963
                                                                  Page 3


           Support
           
          None Received.

           Opposition
           
          None Received.
           

          Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916) 
          319-3965