BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 983|
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THIRD READING
Bill No: AB 983
Author: Perea (D), et al.
Amended: 7/1/11 in Senate
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-0, 6/20/11
AYES: Simitian, Strickland, Blakeslee, Hancock, Kehoe,
Lowenthal
NO VOTE RECORDED: Pavley
SENATE APPROPRIATIONS COMMITTEE : 9-0, 8/25/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
ASSEMBLY FLOOR : 78-0, 6/1/11 - See last page for vote
SUBJECT : Safe Drinking Water State Revolving Fund
SOURCE : California Rural Legal Assistance Foundation
DIGEST : This bill makes several changes to the laws
governing the states program for providing grants and loans
for safe drinking water projects, including allowing
certain disadvantaged communities to receive grants for up
to 100 percent of project costs.
ANALYSIS : Under existing law, the Department of Public
Health (DPH) provides grants and loans to fund safe
drinking water projects from the Safe Drinking Water State
Revolving Fund (Revolving Fund). The Revolving Fund is
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supported with federal funds, repayment of prior loans,
state funds and other fund sources. Existing law requires
DPH to give priority for funding to projects that serve
disadvantaged communities, authorizes grants for up to 80
percent of total project costs, and requires that between
15 percent and 30 percent of program funds be used for
grants. DPH provides about $200 to $300 million per year
in grants and loans under the program.
This bill makes several changes to the operation of the
Revolving Fund program. This bill requires DPH to process
payment requests and make payments within 30 days. This
bill requires DPH to give priority to projects that include
consolidation with a small community water system to
improve drinking water quality. This bill authorizes DPH
to provide up to 100 percent of project costs through
grants (rather than loans) to small community water systems
that serve disadvantaged communities. Finally, this bill
authorizes DPH to extend loan terms to 30 years for
disadvantaged communities.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Department of Public Health, the
administrative costs to expedite payments and comply with
the other requirements of the bill can be absorbed within
existing resources.
According to the Senate Appropriations Committee, this bill
will likely result in cost pressures on the Revolving Fund,
because additional funds will be provided as grants rather
than loans. This will reduce the amount of funds available
to other loan applicants and in the long-run will reduce
loan repayment revenues into the Revolving Fund. The
extent of this cost pressure is unknown and will depend on
particular project applications. Based on the number and
size of loans made to disadvantaged communities in past
years, the shift in funding from loans to grants may be in
the hundreds of thousands per year, with commensurate cost
pressures on the fund.
SUPPORT : (Per Senate Environmental Quality Committee
analysis of 6/20/11) (unable to reverify at time of
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writing)
California Rural Legal Assistance Foundation (source)
Alta Irrigation District
Asociaci�n de Gente Unida por el Aqua
California League of Conservation Voters
Catholic Charities Diocese of Stockton
Clean Water Action
Committee for a Better Seville
Community Water Center
County of Tulare
Environmental Justice Coalition for Water
Environmental Working Group
Food and Water Watch
Fresno Irrigation District
Friant Water Authority
Kings River Water Association
Kings River Conservation District
Natural Resource Defense Council
Planning and Conservation League
Self Help Enterprises
Southern California Watershed Alliance
Unitarian Universalist Legislative Ministry Action Network,
CA
Unitarian Universalist Service Committee
United for Change in Tooleville
Urban Semillas
Vecinos Unidos (United Neighbors)
Winnemem Wintu Tribe
J. Steven Worthley, Tulare County Board of Supervisors
ARGUMENTS IN SUPPORT : According to supporters, the
Federal Drinking Water State Revolving Fund was established
to allow states the ability to provide loans to their most
disadvantage communities for safe drinking water
infrastructure projects that prevent pollution and ensure
long-term sustainability. Supporters argue that this
funding is not accomplishing what it was intended for and
that under the current system, DPH loans communities up to
80 percent of the cost of the project. Unfortunately, this
would require communities to pay the other 20 percent
leaving the most disadvantaged and poor communities unable
to pay for the cost and be ineligible for the project. In
addition, the support adds, that projects that are often
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approved are well-water projects that do not ensure
long-term sustainability due to ground water pollution,
resulting in communities having to deal with the same water
quality issues in the future.
ASSEMBLY FLOOR : 78-0, 6/1/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, Perea, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Gorell, V. Manuel P�rez
DLW:do 8/29/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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