BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2208
                                                                  Page  1

          Date of Hearing:   May 9, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2208 (Perea) - As Amended:  April 16, 2012 

          Policy Committee:                              Environmental 
          Safety and Toxic Materials                    Vote: 7-0

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

           SUMMARY  

          This bill authorizes the Department of Public Health (DPH) to 
          combine studies and projects from multiple applicants for safe 
          drinking water grants in order to allow applicants to meet safe 
          drinking water standards in a cost-effective manner.  The bill 
          also requires the department to give funding priority to safe 
          drinking water projects that consolidate services, especially in 
          unincorporated communities, pursuant to an adopted countywide 
          plan or a recommendation contained in a service review made by a 
          local agency formation commission (LAFCO) within the previous 
          five calendar years.

           FISCAL EFFECT  

          Negligible costs to DPH.  

           COMMENTS  

           1)Rationale.  The author intends this bill to result in DPH 
            funding cost-effect consolidated safe drinking water projects. 
             The author contends that such consolidation of drinking water 
            projects may result in greater cost effectiveness than could 
            be achieved by the projects considered separately. The author 
            believes such cost effectiveness could allow larger projects, 
            such as construction and operation of a water treatment plant, 
            that otherwise would be unachievable by grant recipients.

           2)Background.   DPH administers a safe drinking water regulatory 
            program for all publicly and privately owned water systems of 
            15 or more service connections. The department administers the 
            Safe Drinking Water Revolving Fund, which provides loans and 








                                                                  AB 2208
                                                                  Page  2

            grants to local agencies for safe drinking water system 
            upgrades. The fund receives federal monies, for which the 
            state must provide a 20% match.  
                 
             Current law encourages consolidation of public drinking water 
            systems to help address water contamination.  Chapter, 614, 
            Statutes of 2007 directs DPH to prioritize funding of water 
            projects in disadvantaged communities and to promote, provide 
            funds for studies on, and prioritize funding for, projects 
            that consolidate small public water systems in certain 
            situations.

           



          3)Related Legislation.

             a)   AB 2238 (Perea)  requires LAFCOs to examine drinking 
               water and waste treatment service consolidation as part of 
               a LAFCO's local agency service review.   AB 2238 is pending 
               before this committee.  

             b)   AB 2334 (Fong)  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 pending before this committee.  
                
              c)   AB 2529 (Wieckowski)  allows DPH 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 pending 
               before this committee.  
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081