BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2208
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          Date of Hearing:   April 24, 2012

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Bob Wieckowski, Chair
                    AB 2208 (Perea) - As Amended:  April 16, 2012

           SUBJECT  :   Safe Drinking Water: Revolving Fund.

           SUMMARY  :   Authorizes the California Department of Public Health 
          (CDPH), when implementing the Safe Drinking Water State 
          Revolving Fund (SDWSRF), to consolidate multiple community 
          projects to meet safe drinking water standards.   Specifically, 
           this bill  :  

          1)Makes a statement of legislative intent that the CDPH consider 
            regional solutions to drinking water in underserved 
            communities and further asserts that regional drinking water 
            projects will help provide clean drinking water to adjacent 
            communities like Lanare and Riverdale in Fresno County.

          2)Provides that the CDPH may consolidate proposed studies or 
            projects that will allow multiple agencies or applicants to 
            meet safe drinking water standards in a cost effective manner. 
             

          3)Requires the CDPH to give priority to those proposed studies 
            or projects that consolidate services in unincorporated 
            communities or that allow for consolidation into existing 
            water systems pursuant to an adopted countywide plan, or local 
            agency formation commission (LAFCO) recommendation that is 
            part of a service review in the preceding five calendar years.

           EXISTING FEDERAL LAW  :



          1)Under the federal Safe Drinking Water Act (SDWA) establishes 
            the Safe Drinking Water State Revolving Fund (SDWSRF) which 
            provides states with a financing mechanism to ensure safe 
            drinking water to the public.

          2)Under the American Recovery and Reinvestment Act of 2009 
            (ARRA), provides approximately $160 million to the SDWSRF for 
            infrastructure development for California's drinking water 
            systems.








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           EXISTING STATE LAW:
           
          1)Under the California SDWA, authorizes the CDPH to implement 
            the California SDWA in accordance with requirements of the 
            federal SDWA.

          2)Under the SDWSRF, provides funding to correct public water 
            system deficiencies based upon a funding approach that 
            prioritizes systems' problems that pose public health risks, 
            systems with needs for funding to comply with requirements of 
            the SDWA, and systems most in need on a per household 
            affordability basis.  

          3)Directs CDPH to prioritize funding of water projects in 
            disadvantaged communities.  Directs CDPH to promote, provide 
            funds for studies on, and prioritize funding for projects 
            which consolidate small public water systems in certain 
            situations.

          4)Requires LAFCOS to conduct a service review of the municipal 
            services provided in the county or other appropriate area 
            designated by LAFCO, and requires LAFCOs in that municipal 
            service review, the LAFCO to comprehensively review all of the 
            agencies that provide the identified service or services 
            within that designated geographic area.

           FISCAL EFFECT  :   Not known.

           COMMENTS  :   

           Need for this bill  .  According to the author, "this bill is 
          designed to address the problems of contaminated drinking water 
          in rural communities.  Examples of the problems faced by small 
          communities are Lanare and Riverdale in Fresno County.  Lanare 
          and Riverdale both rely on arsenic-contaminated water supplies.  
          In 2007, a water treatment plant was completed in the community 
          of Lanare, but the maintenance and operating costs were too high 
          for the small, disadvantaged community to sustain and the plant 
          shut down after only six months.  Riverdale, which is located 
          three miles from Lanare, recently received a grant to find 
          solutions to its arsenic-contaminated water problem, but 
          connecting its water system to Lanare is beyond the scope of the 
          grant.  Without an additional grant, Lanare will be left to rely 
          on arsenic-contaminated water and suffer the consequences."








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           Safe Drinking Water Resolving Fund  .  Congress established the 
          Drinking Water State Revolving Fund (DWSRF) as part of the 1996 
          SDWA amendments to better enable public water systems to comply 
          with national primary drinking water standards and to protect 
          public health.  The SDWSRF provides financial assistance in the 
          form of capitalization grants to states to provide low interest 
          loans and other assistance to public water systems.  In order to 
          receive these funds, states must provide a state match equal to 
          20% of the federal capitalization grants and must create a 
          drinking water state revolving fund program for public water 
          system infrastructure needs and other drinking water-related 
          activities.  In response, California established the SDRSRF 
          through SB 1307 (Chapter 734, Statutes of 1997) to help fund the 
          state's drinking water needs.

          Drinking water and groundwater contamination.   AB 2222 
          (Caballero, Chapter 670, Statutes of 2008) requires the State 
          Water   Resources Control Board (SWRCB) to submit a report to the 
          Legislature that identifies communities in California that rely 
          on contaminated groundwater as a primary source of drinking 
          water.  The SWRCB draft report has identified 682 communities, 
          serving more than 21 million people, which rely on groundwater 
          contaminated with one or more principal contaminants.  
           
          According to a May 2011 report, prepared by the Senate Office of 
          Research, as of 2007 approximately 1.2 million California 
          residents-a little more than 3 percent of the population that 
          receives water from public water systems-may have been affected 
          by water that violated a drinking-water standard or treatment 
          technique.

           Public drinking water system consolidation  .  Current state law 
          and CDPH policies encourage consolidation of public drinking 
          water systems to help address the problems of water 
          contamination.  Legislation in 2007, (AB 783 (Arambula) Chapter, 
          614, Statutes of 2007) ,   provided direction to improve and 
          expand community water systems by promoting the  consolidation 
          of small public water systems when consolidation would improve 
          the quality, reliability, and affordability of water to these 
          communities.  AB 2208 is designed to establish a more 
          prescriptive standard for CDPH when considering drinking water 
          system improvements that may include consolidation.

           Related Legislation  :








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          AB 1669 (Perea), Drinking Water Nitrate Contamination - 
          Establishes the Nitrate at Risk Area Fund for the purposes of 
          developing and implementing sustainable and affordable solutions 
          for disadvantaged communities in areas reliant on 
          nitrate-contaminated groundwater as their source of drinking 
          water.  AB 1669 is scheduled for hearing in the Environmental 
          Safety and Toxic Materials (ESTM) Committee on April 24, 2012.

          AB 2238 (Perea), Requires the CDPH to promote the consolidation 
          and merger of small community water systems that serve 
          disadvantaged communities.  Requires local agency formation 
          commissions LAFCO to examine drinking water and waste treatment 
          service consolidation as part of a LAFCO local agency service 
          review.  AB 2238 is scheduled for hearing in the ESTM Committee 
          on April 24, 2012.

          AB 2334 (Fong), State Water Plan including drinking water 
          affordability.  Requires the Department of Water Resources to 
          analyze how drinking water and wastewater services could be made 
          more affordable for low-income residents.  AB 2334 is scheduled 
          for hearing in the ESTM Committee on April 24, 2012.

          AB 2529 (Wieckowski), Streamlining the Safe Drinking Waste Act 
          regulations and criteria for revolving funds.  Authorizes the 
          CDPH to adopt interim regulations and take other actions to 
          expedite the process of providing funds for drinking water 
          projects, especially to severely disadvantaged communities.  AB 
          2529 is scheduled for hearing in the ESTM Committee on April 24, 
          2012.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Rural Legal Assistance Foundation 
          Clean Water Action
          Community United in Larare
          PolicyLink
           
          Opposition 

           California Special Districts Association
          Riverdale Public Utility District  









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