BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 963
                                                                  Page  1

          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 963 (Valadao) - As Amended:  April 12, 2011 

          Policy Committee:                              Environmental 
          Safety and Toxic Materials                    Vote: 8-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the Department of Public Health (DPH) to 
          establish guidelines for Proposition 84 grants for small 
          community drinking water system infrastructure improvements.  
          Specifically, this bill requires DPH to:

          1)Develop guidelines in collaboration with the State Water 
            Resources Control Board to:

             a)   Fund projects for disadvantaged or severely 
               disadvantaged communities.

             b)   Govern the selection of projects that consider 
               demonstrated prevention of illness and adverse public 
               health effects in a community.

          2)Provide guidelines for:

             a)   Improving replacement drinking water systems in areas 
               with contaminated groundwater that may not be economically 
               remediated for drinking water purposes.

             b)   The acquisition of public water systems by local 
               agencies as part of a project to provide clean and safe 
               water for small communities.

           FISCAL EFFECT  

          1)Costs during 2011-12 and 2012-13 totaling about $185,000 to 
            DPH for one engineering analyst to develop the guidelines 
            required by this bill.  (Special fund.)








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          2)To the extent this bill results in DPH funding drinking water 
            projects that it would not otherwise have funded, the bill 
            will result in a shift in use of Proposition 84 funds, 
            potentially in the millions of dollars.

           COMMENTS  

           1)Rationale  .  This author intends this bill to assist rural, 
            economically disadvantaged communities suffering from drinking 
            water contamination, such as the Central Valley community of 
            Kettleman City.  The author intends the guidelines required by 
            this bill to encourage DPH to consider funding projects that 
            newly connect such communities to existing sources of clean 
            drinking water.

           2)Background.   
                
               a)   Kettleman City Drinking Water Not Fit to Drink.  
               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.  The area's public drinking water supply 
               has arsenic at levels that exceed the allowable amount 
               established by DPH's standard.

               Since September 2007, there seems to have been an increase 
               in the number of babies born with structural defects, some 
               of whom have died.  As a result, suspicion has grown within 
               and without the community that Kettleman City's 
               contaminated groundwater is sickening those who drink it.

              b)   Proposition 84 Small Community Drinking Water Grants.   
               Proposition 84 of 2006 allowed the state to sell $5.4 
               billion in general obligation bonds for safe drinking 
               water, water quality, and water supply; flood control; 
               natural resource protection; and park improvements.  
               Proposition 84 includes $180 million for grants to small 
               community drinking water system infrastructure improvements 
               to meet safe drinking water standards.  The proposition 
               gives priority to projects that address chemical and 
               nitrate contaminants, other health hazards and communities 
               that are disadvantaged or severely disadvantaged. 

               Kettleman City has applied to DPH for a Proposition 84 








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               grant for a project to provide surface water from the 
               California Aqueduct as a replacement for its current ground 
               water sources, which DPH has yet to award.  It is unclear 
               whether such a project is eligible for funding under 
               Proposition 84.

           3)You Can't Improve What Doesn't Exist.   The author intends this 
            bill to enable certain communities to receive Proposition 84 
            funding to construct a new water system to replace an 
            existing, contaminated water system.  However, as written, the 
            bill describes guidelines for "improving replacement drinking 
            water systems."  It may be more accurate to refer to the 
            construction of replacement drinking water systems, rather 
            than the improvement of such systems.

           4)There is no support or opposition registered to this bill.  

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081