BILL NUMBER: AB 2238 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Perea
FEBRUARY 24, 2012
An act to amend Sections 56378 and 56430 of the Government Code,
to amend Sections Section 116326
, 116760.30, 116760.70, and 116760.90 of the
Health and Safety Code, and to amend Section 75125 of, and to add
Section 75129.5 to, the Public Resources Code, relating to public
water systems , and making an appropriation therefor
.
LEGISLATIVE COUNSEL'S DIGEST
AB 2238, as amended, Perea. Public water systems: drinking water.
Existing law requires the State Department of Public Health to
administer programs to fund improvements and expansion of small
community water systems using specified priorities. Existing law
requires the department to encourage the consolidation of small
community water systems that serve disadvantaged communities if
consolidation will help the affected agencies and the state meet
specified goals. Existing law allows funding of studies regarding the
feasibility of consolidating 2 or more community water systems, at
least one of which is a small community water system that serves a
disadvantaged community. Existing law requires the department to give
funding priority to projects involving physical restructuring of 2
or more community water systems into a single, consolidated system
when it is shown that the consolidation would further specified
goals.
This bill would require the department to promote the
consolidation and merger of small community water systems that serve
disadvantaged communities, as specified, and would require the
studies performed prior to a construction project to include the
feasibility of consolidating or merging community water systems.
This bill would prohibit the department from determining the
consolidation or merger to be infeasible if the local agency
formation commission (LAFCO) also conducted a study or service review
of the project and determined the project was feasible. This
bill would also require the department to give priority to funding
projects involving managerial consolidation or merger when the
consolidation or merger would further specified goals.
Existing law requires local agency formation commissions
(LAFCOs) LAFCOs to conduct a service review of
the municipal services provided in the county, as specified, and
requires the commissions to review all of the
agencies that provide the service within a designated geographic
area. Existing law permits LAFCOs to assess various alternatives for
improving efficiency and affordability of infrastructure and service
delivery, as specified , and allows the commissions to
include a review of whether the agencies are in compliance with the
California Safe Drinking Water Act .
This bill would require LAFCOs to assess various
alternatives for improving efficiency and affordability of
infrastructure and service delivery and would require the commissions
to include a review of whether the agencies are in compliance with
the California Safe Drinking Water Act to also assess
various alternatives for improving efficiency and affordability of
infrastructure and service delivery for drinking water and wastewater
services . By imposing additional duties on local officials,
this bill would impose a state-mandated local program.
Under existing law, the State Department of Public Health provides
grants and revolving fund loans for the design and construction of
projects for public water systems that will enable suppliers to meet
safe drinking water standards. Existing law requires the department
to administer the Safe Drinking Water State Revolving Fund, which is
continuously appropriated for the design and construction of public
water systems, as specified.
The Safe Drinking Water, Water Quality and Supply, Flood Control,
River and Coastal Protection Bond Act of 2006, an initiative measure,
provides funding for safe drinking water, water quality and supply,
flood control, natural resource protection, and park improvements.
Existing law establishes the Strategic Growth Council and
appropriates $500,000 from the funding provided by the initiative to
support the council and its activities. Existing law requires the
council to manage and award grants and loans to support the planning
and development of sustainable communities, as specified.
This bill would provide that local agency formation
commissions intending to fund public water system consolidation,
merger, or extension of services projects are eligible for grants and
loans from the Safe Drinking Water State Revolving Fund. By
providing that continuously appropriated funds may be spent for a new
purpose, this bill would make an appropriation. This bill
would also provide that LAFCOs intending to fund
consolidation, merger, or extension of services projects for the
purposes of promoting water conservation and to support the planning
and development of sustainable communities, are eligible for funding
under the Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: yes no
. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 56378 of the Government Code is amended to
read:
56378. (a) In addition to its other powers, the commission shall
initiate and make studies of existing governmental agencies. Those
studies shall include, but shall not be limited to, inventorying
those agencies and determining their maximum service area and service
capacities. In conducting those studies, the commission may ask for
land use information, studies, and plans of cities, counties,
districts, including school districts, community college districts,
and regional agencies and state agencies and departments. Cities,
counties, districts, including school districts, community college
districts, regional agencies, and state agencies and departments,
shall comply with the request of the commission for that information
and the commission shall make its studies available to public
agencies and any interested person. In making these studies, the
commission may cooperate with the county planning commissions.
(b) The commission, or the board of supervisors on behalf of the
commission, may apply for or accept, or both, any financial
assistance and grants-in-aid from public or private agencies or from
the state or federal government or from a local government. This
shall include assistance that would enable a commission that serves a
severely disadvantaged community to meet the long-term water needs
of the community by conducting feasibility studies of, or providing
funding for, the consolidation, merger, or extension of services of
public water systems.
SEC. 2. Section 56430 of the Government Code is amended to read:
56430. (a) In order to prepare and to update spheres of influence
in accordance with Section 56425, the commission shall conduct a
service review of the municipal services provided in the county or
other appropriate area designated by the commission. The commission
shall include in the area designated for service review the county,
the region, the subregion, or any other geographic area as is
appropriate for an analysis of the service or services to be
reviewed, and shall prepare a written statement of its determinations
with respect to each of the following:
(1) Growth and population projections for the affected area.
(2) The location and characteristics of any disadvantaged
unincorporated communities within or contiguous to the sphere of
influence.
(3) Present and planned capacity of public facilities, adequacy of
public services, and infrastructure needs or deficiencies including
needs or deficiencies related to sewers, municipal and industrial
water, and structural fire protection in any disadvantaged,
unincorporated communities within or contiguous to the sphere of
influence.
(4) Financial ability of agencies to provide services.
(5) Status of, and opportunities for, shared facilities.
(6) Accountability for community service needs, including
governmental structure and operational efficiencies.
(7) Any other matter related to effective or efficient service
delivery, as required by commission policy.
(b) In conducting a service review, the commission shall
comprehensively review all of the agencies that provide the
identified service or services within the designated geographic area.
The commission shall may assess
various alternatives for improving efficiency and affordability of
infrastructure and service delivery within and contiguous to the
sphere of influence, including, but not limited to, the consolidation
of governmental agencies. The commission shall comprehensively
assess various alternatives for improving efficiency and
affordability of infrastructure and service delivery for drinking
water and wastewater services unless the commission or executive
officer of the commission makes a written determination that the
assessment is not reasonable under the circumstances.
(c) In conducting a service review, the commission shall
may include a review of whether the agencies
under review, including any public water system as defined in Section
116275, are in compliance with the California Safe Drinking Water
Act (Chapter 4 (commencing with Section 116270) of Part 12 of
Division 104 of the Health and Safety Code). A public water system
may satisfy any request for information as to compliance with that
act by submission of the consumer confidence or water quality report
prepared by the public water system as provided by Section 116470 of
the Health and Safety Code.
(d) The commission may request information, as part of a service
review under this section, from identified public or private entities
that provide wholesale or retail supply of drinking water, including
mutual water companies formed pursuant to Part 7 (commencing with
Section 14300) of Division 3 of Title 1 of the Corporations Code, and
private utilities, as defined in Section 1502 of the Public
Utilities Code.
(e) The commission shall conduct a service review before, or in
conjunction with, but no later than the time it is considering an
action to establish a sphere of influence in accordance with Section
56425 or 56426.5 or to update a sphere of influence pursuant to
Section 56425.
SEC. 3. Section 116326 of the Health and Safety Code is amended to
read:
116326. In administering programs to fund improvements and
expansions of small community water systems, the department shall do
all of the following:
(a) Give priority to funding projects in disadvantaged
communities.
(b) Promote the consolidation or merger of small community water
systems that serve disadvantaged communities in instances where
consolidation or merger will help at least one of the affected
agencies and the state to meet all of the following goals:
(1) Improvement in the quality of water delivered.
(2) Improvement in the reliability of water delivery.
(3) Reduction in the cost of drinking water for ratepayers.
(c) Pursuant to subdivision (b), require that funding for
feasibility studies performed prior to a construction project include
studies of the feasibility of consolidating two or more community
water systems or merging a community water system with a city water
system, when if at least one of the
water systems is a small community water system that serves a
disadvantaged community, unless the department makes a written
determination that consolidation or merger is not feasible under the
circumstances. The department shall not make a determination of
infeasibility if the local agency formation commission conducted a
study, pursuant to Section 56378 of the Government Code, or conducted
a service review, pursuant to Section 56430 of the Government Code,
which found the consolidation or merger feasible.
(d) If it is shown that small community water system consolidation
or merger will further the goals of subdivision (b), give priority
to funding construction projects that involve the physical
restructuring and managerial consolidation of two or more community
water systems or merger of one or more community water systems, at
least one of which is a small community water system that serves a
disadvantaged community, into a single, consolidated system.
SEC. 4. Section 116760.30 of the Health and
Safety Code is amended to read:
116760.30. (a) There is hereby created in the State Treasury the
Safe Drinking Water State Revolving Fund for the purpose of
implementing this chapter, and, notwithstanding Section 13340 of the
Government Code, the fund is hereby continuously appropriated,
without regard to fiscal years, to the department to provide, from
moneys available for this purpose, grants or revolving fund loans for
the design and construction of projects for public water systems
that will enable suppliers to meet safe drinking water standards, or
to fund feasibility studies of, or to provide funding for, public
water system projects pursuant to Section 56378 of the Government
Code. The department shall be responsible for administering the fund.
(b) Notwithstanding Section 10231.5 of the Government Code, the
department shall report at least once every two years to the policy
and budget committees of the Legislature on the implementation of
this chapter and expenditures from the fund. The report shall
describe the numbers and types of projects funded, the reduction in
risks to public health from contaminants in drinking water provided
through the funding of the projects, and the criteria used by the
department to determine funding priorities. Commencing with reports
submitted on or after January 1, 2013, the report shall include the
results of the United States Environmental Protection Agency's most
recent survey of the infrastructure needs of California's public
water systems, the amount of money available through the fund to
finance those needs, the total dollar amount of all funding
agreements executed pursuant to this chapter since the date of the
previous report, the fund utilization rate, the amount of
unliquidated obligations, and the total dollar amount paid to funding
recipients since the previous report.
(c) Notwithstanding any other law, the Controller may use the
moneys in the Safe Drinking Water State Revolving Fund for loans to
the General Fund as provided in Sections 16310 and 16381 of the
Government Code. However, interest shall be paid on all moneys loaned
to the General Fund from the Safe Drinking Water State Revolving
Fund. Interest payable shall be computed at a rate determined by the
Pooled Money Investment Board to be the current earning rate of the
fund from which loaned. This subdivision does not authorize any
transfer that will interfere with the carrying out of the object for
which the Safe Drinking Water State Revolving Fund was created.
SEC. 5. Section 116760.70 of the Health and
Safety Code is amended to read:
116760.70. (a) The department, after public notice and hearing,
shall, from time to time, establish a priority list of proposed
projects to be considered for funding under this chapter. In doing
so, the department shall determine if improvement, rehabilitation,
merger, consolidation, or extension of services of the public water
system is necessary to provide pure, wholesome, and potable water in
adequate quantity and at sufficient pressure for health, cleanliness,
and other domestic purposes. The department shall establish criteria
for placing public water systems on the priority list for funding
that shall include criteria for priority list categories. Priority
shall be given to projects that meet all of the following
requirements:
(1) Address the most serious risk to human health.
(2) Are necessary to ensure compliance with requirements of
Chapter 4 (commencing with Section 116270) including requirements for
filtration.
(3) Assist systems most in need on a per household basis according
to affordability criteria.
(b) The department may, in establishing a new priority list, merge
those proposed projects from the existing priority list into the new
priority list.
(c) In establishing the priority list, the department shall
consider the system's implementation of an ongoing source water
protection program or wellhead protection program.
(d) In establishing the priority list categories and the priority
for funding projects, the department shall carry out the intent of
the Legislature pursuant to subdivisions (e) to (h), inclusive, of
Section 116760.10 and do all of the following:
(1) Give priority to upgrade an existing system to meet drinking
water standards.
(2) After giving priority pursuant to paragraph (1), consider
whether the applicant has sought other funds when providing funding
for a project to upgrade an existing system and to accommodate a
reasonable amount of growth.
(e) Consideration of an applicant's eligibility for funding shall
initially be based on the priority list in effect at the time the
application is received and the project's ability to proceed. If a
new priority list is established during the time the application is
under consideration, but before the applicant receives a letter of
commitment, the department may consider the applicant's eligibility
for funding based on either the old or new priority list.
(f) The department may change the ranking of a specific project on
the priority lists at any time following the publication of the list
if information, that was not available at the time of the
publication of the list, is provided that justifies the change in the
ranking of the project.
(g) The department shall provide one or more public hearings on
the Intended Use Plan, the priority list, and the criteria for
placing public water systems on the priority list. The department
shall provide notice of the Intended Use Plan, criteria, and priority
list not less than 30 days before the public hearing. The Intended
Use Plan, criteria, and priority list shall not be subject to the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. The department
shall conduct duly noticed public hearings and workshops around the
state to encourage the involvement and active input of public and
affected parties, including, but not limited to, water utilities,
local government, public interest, environmental, and consumer
groups, public health groups, land conservation interests, health
care providers, groups representing vulnerable populations, groups
representing business and agricultural interests, and members of the
general public, in the development and periodic updating of the
Intended Use Plan and the priority list.
(h) The requirements of this section do not constitute an
adjudicatory proceeding as defined in Section 11405.20 of the
Government Code and Section 11410.10 of the Government Code is not
applicable.
SEC. 6. Section 116760.90 of the Health and
Safety Code is amended to read:
116760.90. (a) The department shall not approve an application
for funding unless the department determines that the proposed study
or project is necessary to enable the applicant to meet safe drinking
water standards, and is consistent with an adopted countywide plan,
if any, or is necessary to assist a local agency formation commission
provide long-term water needs pursuant to Section 56378 of the
Government Code. The department may refuse to fund a study or project
if it determines that the purposes of this chapter may more
economically and efficiently be met by means other than the proposed
study or project. The department shall not approve an application for
funding a project with a primary purpose to supply or attract future
growth. The department may limit funding to costs necessary to
enable suppliers to meet primary drinking water standards, as defined
in Chapter 4 (commencing with Section 116270).
(b) With respect to applications for funding of project design and
construction, the department shall also determine all of the
following:
(1) Upon completion of the project, the applicant will be able
either to supply water that meets safe drinking water standards or
meet the long-term water needs of the community.
(2) The project is cost effective.
(3) If the entire project is not to be funded under this chapter,
the department shall specify which costs are eligible for funding.
(c) In considering an application for funding a project that meets
all other requirements of this chapter and regulations, the
department shall not be prejudiced by the applicant initiating the
project prior to the department approving the application for
funding. Preliminary project costs that are otherwise eligible for
funding pursuant to the provisions of this chapter shall not be
ineligible because the costs were incurred by the applicant prior to
the department approving the application for funding. Construction
costs that are otherwise eligible for funding pursuant to the
provisions of this chapter shall not be ineligible because the costs
were incurred after the approval of the application by the department
but prior to the department entering into a contract with the
applicant pursuant to Section 116761.50.
SEC. 7. SEC. 4. Section 75125 of the
Public Resources Code is amended to read:
75125. The council shall do all of the following:
(a) Identify and review activities and funding programs of member
state agencies that may be coordinated to improve air and water
quality, improve natural resource protection, increase the
availability of affordable housing, improve transportation, meet the
goals of the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), encourage sustainable land use planning, and revitalize
urban and community centers in a sustainable manner. At a minimum,
the council shall review and comment on the five-year infrastructure
plan developed pursuant to Article 2 (commencing with Section 13100)
of Chapter 2 of Part 3 of Division 3 of the Government Code and the
State Environmental Goals and Policy Report developed pursuant to
Section 65041 of the Government Code.
(b) Recommend policies and investment strategies and priorities to
the Governor, the Legislature, and to appropriate state agencies to
encourage the development of sustainable communities, such as those
communities that promote equity, strengthen the economy, protect the
environment, and promote public health and safety, consistent with
subdivisions (a) and (c) of Section 75065.
(c) Provide, fund, and distribute data and information to local
governments and regional agencies that will assist in developing and
planning sustainable communities.
(d) Manage and award grants and loans to support the planning and
development of sustainable communities, pursuant to Sections 75127,
75128, 75129, and 75129.5. To implement this subdivision, the council
may do all of the following:
(1) Develop guidelines for awarding financial assistance,
including criteria for eligibility and additional consideration.
(2) Develop criteria for determining the amount of financial
assistance to be awarded. The council shall award a revolving loan to
an applicant for a planning project, unless the council determines
that the applicant lacks the fiscal capacity to carry out the project
without a grant. The council may establish criteria that would allow
the applicant to illustrate an ongoing commitment of financial
resources to ensure the completion of the proposed plan or project.
(3) Provide for payments of interest on loans made pursuant to
this article. The rate of interest shall not exceed the rate earned
by the Pooled Money Investment Board.
(4) Provide for the time period for repaying a loan made pursuant
to this article.
(5) Provide for the recovery of funds from an applicant that fails
to complete the project for which financial assistance was awarded.
The council shall direct the Controller to recover funds by any
available means.
(6) Provide technical assistance for application preparation.
(7) Designate a state agency or department to administer technical
and financial assistance programs for the disbursing of grants and
loans to support the planning and development of sustainable
communities, pursuant to Sections 75127, 75128, 75129, and 75129.5.
(e) (1) No later than July 1, 2010, and every year thereafter,
provide a report to the Legislature that shall include, but is not
limited to, all of the following:
(A) A list of applicants for financial assistance.
(B) Identification of which applications were approved.
(C) The amounts awarded for each approved application.
(D) The remaining balance of available funds.
(E) A report on the proposed or ongoing management of each funded
project.
(F) Any additional minimum requirements and priorities for a
project or plan proposed in a grant or loan application developed and
adopted by the council pursuant to subdivision (c) of Section 75126.
(2) A report submitted pursuant to paragraph (1) shall be
submitted in accordance with Section 9795 of the Government Code.
SEC. 8. SEC. 5. Section 75129.5 is
added to the Public Resources Code, to read:
75129.5. To support the planning and development of sustainable
communities, the council shall manage and award financial assistance
to a city, county, local area formation commission, special district,
nonprofit organization, or entity formed pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, or a local agency formation commission formed
pursuant to Chapter 4 (commencing with Section 56425) of Division 7
of Title 1 of the Government Code, if at least one of the parties to
the joint powers agreement qualifies as an eligible applicant, for
the preparation, planning, and implementation of a public water
system consolidation, merger, or extension of services project for
the purposes of promoting water conservation. The financial
assistance provided pursuant to this section shall be funded from
moneys made available pursuant to subdivision (c) of Section 75065.
The council shall give priority to funding projects proposed by an
economically disadvantaged community.
SEC. 9. SEC. 6. If the Commission on
State Mandates determines that this act contains costs mandated by
the state, reimbursement to local agencies and school districts for
those costs shall be made pursuant to Part 7 (commencing with Section
17500) of Division 4 of Title 2 of the Government Code.