BILL ANALYSIS                                                                                                                                                                                                    �



                                                                SB 962
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    SB 962
           AUTHOR:     Anderson
           AMENDED:    As Introduced
           FISCAL:     Yes               HEARING DATE:     April 16, 2012
           URGENCY:    No                CONSULTANT:       Rachel Wagoner
           
         SUBJECT  :    PUBLIC WATER SYSTEMS: POINT-OF-USE TREATMENT

            SUMMARY  :    
           
            Existing law  ,

           1) Under the federal Safe Drinking Water Act (SDWA), requires 
              the federal Environmental Protection Agency (US EPA) to set 
              standards for drinking water quality and oversee the 
              states, localities, and water suppliers who implement those 
              standards.  California has authority over drinking water, 
              delegated by US EPA.

           2) Establishes the Drinking Water Program within the 
              Department of Public Health (DPH) to regulate public 
              drinking water systems.

           3) Authorizes point-of-use (POU) and point-of-entry (POE) 
              devices for water treatment to meet drinking water 
              standards as specified by state and federal law. 

           4) Requires regulations adopted under the SDWA to include 
              requirements governing the POE and POU treatment by public 
              water systems in lieu of centralized treatment where it can 
              be demonstrated that centralized treatment is not 
              immediately economically feasible and is limited to:  a) 
              less than 200 service connections, b) use allowed under the 
              SDWA's implementing regulations, and c) water systems that 
              have submitted pre-applications with the Department of 
              Public Health (DPH) for funding to correct the violations 
              for which the POU/POE treatment is provided.  

            This bill  expands the authorization to use POU/POE treatment 









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           systems, as specified above, from 200 service connections to 
           public water systems with up to 2,500 service connections and 
           would extend the effective date of the emergency regulations 
           from January 1, 2014 to January 1, 2016.

            COMMENTS
              
            1) Purpose of the Bill  .  According to the author, SB 962 is a 
              compassionate and environmentally-conscious measure to 
              maximize delivery of safe drinking water to more people.

              The author asserts that access to clean drinking water is a 
              neglected priority in California, so to confront that 
              reality, Assemblymember V. Manuel Perez authored Assembly 
              Bill 2515 Chapter 601, Statutes of 2010 to allow 
              development of appropriate emergency regulations by the 
              Department of Public Health.  The author states that while 
              those emergency regulations - governing the permitted use 
              of point-of-entry and point-of-use treatment by public 
              water systems - have been adopted, the effect is yet to be 
              fully felt. The author believes that the regulations have 
              been found to effectively exclude some communities who 
              should qualify for some help but through no fault of their 
              own are unfairly excluded. According to the author, 
              unfortunately, for them -small communities whose need 
              exceeds 200 service connections -- this basic thirst of 
              clean drinking water still remains.

              The author states that access to safe drinking water in 
              California's small, unincorporated communities is vital.  
              This legislation will allow approved point-of-entry or 
              point-of-use water treatment devices to be employed in 
              communities of up to 2,500 connections when a centralized 
              treatment plant is not economically feasible.

              The author asserts that the viability of POU/POE systems is 
              proven.  The author provides, for example, in 2005, NSF 
              International conducted a thorough study on a centrally 
              managed point-of-use strategy implemented in the community 
              of Grimes, California.  In that town, nearly all the 
              residents agreed to the installation of POU systems in 
              their homes.  It was found that a final barrier system cost 
              less than half the projected cost for central treatment.  









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              Homeowners, who faced elevated levels of arsenic, placed 
              appropriate systems in their residences.  Through rigorous 
              analysis, researchers were able to calculate the cost of 
              such systems against estimates for a central treatment 
              plant.  Central treatment would have cost more than $24 per 
              month, according to the NSF International Report.  
              Depending on the level of monitoring and sampling followed, 
              however, the POU system was estimated at between $11.46 and 
              $18 per month.  The systems were successful and cost 
              effective, and extended to more people access to clean and 
              safe drinking water.

            2) Drinking water contamination in California  .  According to 
              DPH, 98% of the population of California served by 
              community water systems receives drinking water that meets 
              all primary drinking water standards.  However, for the 
              nearly  of a million Californians without clean water, 
              contaminants such as nitrates, hexavalent chromium and 
              arsenic threaten public drinking water safety.  The most 
              impacted populations are located in disadvantaged 
              communities and are served by small water systems that have 
              difficulty finding the sufficient resources for maintenance 
              and operation or to undertake repairs and upgrades.  DPH 
              currently utilizes funds from the Safe Drinking Water State 
              Revolving Fund and Propositions 50 and 84 bond funds to 
              assist in drinking water system upgrades.  While these 
              funds have provided and continue to provide significant 
              assistance in the improvement of water systems, there is a 
              greater need than funding available.  The US EPA as well as 
              DPH are working to explore how to reach critical drinking 
              water standards while also acknowledging the need for 
              affordability of conveyance, especially in these small 
              communities. 

              In acknowledgement of the strain that small water systems 
              face when trying to upgrade systems to meet necessary water 
              quality improvements, AB 2515 (V. M. Perez) Chapter 601, 
              Statutes of 2010, was enacted as a stop gap to provide a 
              temporary measure while a permanent, safer and more 
              effective centralized treatment could be devised for these 
              small disadvantaged communities.  

            3) Point of Use/ Point of Entry Treatment  .  A POU treatment 









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              device is any unit installed on a single water faucet or 
              bubbler that changes the water quality. POE treatment 
              device is any unit installed that changes the water quality 
              of all potable water entering a building.  POE and POU 
              treatment devices such as carbon filters are sometimes 
              installed to enhance the aesthetic quality (taste and odor) 
              of potable water supplied by a local water system.  In 
              other cases, POE and POU treatment devices are installed to 
              meet drinking water standards in place of centralized 
              treatment.

            4) Limitations of POU/POE treatment  .  While POU/POE treatment 
              has advanced in recent years it does not provide equivalent 
              treatment to centralized treatment.   
            
               a)    Multiple contaminants  .  POU/POE treatment 
                 technologies can provide sufficient treatment for one 
                 specific contaminant.  However, they are not designed to 
                 treat the complex myriad contaminants that may be in 
                 drinking water.  So while it may address the primary 
                 contaminant of concern, other contaminants may not be 
                 sufficiently removed. Additionally, contaminants in 
                 water affect the water quality individually and 
                 cumulatively.  POU/POE treatment systems are not 
                 designed to address the cumulative impacts to water 
                 quality.

               b)    Adjustment for quality  .  Water quality levels are not 
                 static.  Centralized treatment systems are regularly 
                 monitored and the treatment is adjusted as changes in 
                 the water quality and levels of the range of 
                 contaminants change.  POU/POE treatment systems cannot 
                 be adjusted as the water quality changes, so their 
                 efficacy may vary.

               c)    POU does not treat all water  .  Because POU treatment 
                 systems attach to the faucet, their treatment is limited 
                 to water that comes through that faucet.  Showers, 
                 washing machines and other faucets, such as those in 
                 bathrooms, will not be treated.  POU treatment devices 
                 are not appropriate in households where the treated 
                 contaminant presents health risks when inhaled, such as 
                 volatile organic compounds (VOCs) or hexavalent 









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                 chromium, that may be released into the air and inhaled, 
                 especially in warm water like a shower because in those 
                 households only the drinking water would be treated.  
                 With many contaminants that could pose an additional 
                 risk, especially in homes with children, these systems 
                 are meant as a very temporary stopgap measure until 
                 centralized water treatment can be provided.  

               d)    Lack of Accountability and monitoring  .  Centralized 
                 treatment facilities are regularly inspected and 
                 monitored to ensure sufficient maintenance by either DPH 
                 or the county environmental health jurisdictions.  There 
                 is no built in inspection, monitoring or maintenance 
                 when water systems use POU/POE treatment.  Ensuring 
                 proper working order to POU/POE systems is crucial.  If 
                 filters are not changed when needed, some systems can 
                 build up contaminants in the system and release them 
                 into the water in high concentrations.  

                 Who is expected to make sure that the systems are always 
                 working properly?  Is it practical to expect that for 
                 water systems of 2,500 service connections that all 
                 systems are going to be regularly monitored and 
                 repaired?

            5) Questions regarding the bill  .  

              a)    Why now  ?  Is there a demonstrated need to expand the 
                 POU/POE treatment allowance?  AB 2515 passed in 2010.  
                 The emergency regulations implementing that bill took 
                 effect September 2011.  According to DPH, several small 
                 communities have shown interest in utilizing these 
                 provisions, but have not to date.  

                 Is it appropriate to expand this authorization, knowing 
                 that there are water quality risks, when there has not 
                 been successful implementation on a smaller scale and 
                 there has not been an opportunity to evaluate the use of 
                 this treatment technology on that smaller scale?

               b)    Why 2,500 service connections  ?  DPH uses an estimate 
                 of 3.3 people per household service connection.  This 
                 means that this expansion would apply to communities of 









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                 a population of up to 8,250.  Cities with this 
                 population include, for example, Huron and Fowler in 
                 Fresno County, and Atherton, Sausalito, Live Oak, 
                 Loomis, Thousand Palms, Fairfax or Ladera Heights.  In 
                 enacting AB 2515, the Legislature and Governor 
                 contemplated a need to help small communities reach 
                 clean drinking water standards that do not have the 
                 resources or staff to meet maintenance requirements 
                 while they work with DPH to find a permanent solution.  

                 Is it appropriate to expand this authorization to much 
                 larger water systems?

               c)    Why does this bill extend the effective date of the 
                 emergency regulations  ?  AB 2515 authorized DPH to adopt 
                 emergency regulations so that small water systems could 
                 begin to utilize these provisions quickly.  However, the 
                 emergency regulation process does not adhere to the APA 
                 process and does not require public comment and 
                 participation.  The emergency regulations were enacted 
                 in September 2011 and stay in effect until 2014.  In the 
                 next several years DPH should be working with 
                 stakeholders to make amendments to the emergency 
                 regulations and use the APA process to develop 
                 regulations. 

                 What is the justification for extending these emergency 
                 regulations until 2016, which only delays the 
                 stakeholder process?

               d)    Who is responsible for maintenance, upkeep and 
                 repair  ?  For POU/POE systems to work as designed they 
                 must be properly maintained and filters must be promptly 
                 replaced.  Who is inspecting all of these 2,500 POU/POE 
                 systems and maintaining and replacing the filters?  Who 
                 is going to be responsible for the maintenance and 
                 replacement of 2,500 filters?  

               e)    Who is paying for the systems, the installation, 
                 maintenance, replacement filters and inspections  ?  
                 Oversight of water systems is done by DPH or the county 
                 environmental health jurisdictions.  This bill does not 
                 contemplate who would conduct and pay for these 









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                 inspections and maintenance or who would pay for the 
                 systems and replacement filters.

               f)    How are contaminated filters disposed  ?  POU/POE 
                 systems collect and concentrate the contaminants that 
                 they treat.  

                 How will these filters with concentrations of arsenic or 
                 hexavalent chromium be disposed?  Is it appropriate to 
                 be throwing several thousands of these filters full of 
                 contaminants in the trash every few months?

               g)    Is this the best solution  ?  If a water system is 
                 going to pay for 2,500 POU/POE treatment systems and the 
                 on-going maintenance on a temporary basis, shouldn't 
                 those funds instead be directed to invest in the 
                 permanent centralized solution?

              Improving California's drinking water quality is crucially 
              important.  As solutions for meeting drinking water 
              standards to protect public health are contemplated, it is 
              important to ensure that solutions that compromise 
              standards are not used.  Expanded use of POU/POE treatment 
              devices essentially creates two classes for drinking water 
              in California -- those that get centralized treatment that 
              is monitored and accountable for meeting drinking water 
              standards and those that get a lower standard of quality 
              and accountability.

            6) What are the fees paying for  ?  Water systems are often not 
              government agencies, but rather privately owned for-profit 
              companies collecting a fee for service.  Water systems 
              deliver drinking water that is required to meet all 
              drinking water standards and collect a fee for that 
              service.  What are these systems doing with fee revenues 
              while delivering water that is undrinkable and unusable and 
              does not meet state and federal water quality standards?  
              Perhaps rather than downgrading treatment standards, water 
              systems should be evaluated that are failing to meet their 
              obligation, and resources directed to on-going maintenance, 
              repair upgrades, and capital outlay.

            7) The University of California at Davis (UC Davis) Nitrate 









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              Study  .  Recently UC Davis released a report on the 
              extensive nitrate contamination in the Tulare Lake Basin 
              and Salinas Valley groundwater that highlights the extent 
              of the contamination, the primary sources, public health 
              and financial costs of cleaning up and treating groundwater 
              for drinking water amounting to billions of dollars of 
              damage.  Should efforts be focused on preventing and 
              remediating ground and surface water contamination so that 
              the state is not faced with difficult decisions about 
              weakening water treatment standards in order for water 
              systems to afford to provide some level of treated drinking 
              water?  Does authorizing measures like POU/POE create a 
              disincentive for taking the needed steps to address 
              contaminated water?


            SOURCE  :        Pacific Water Quality Association  

           SUPPORT  :  Association of California Water Agencies
                          Boncor Water Systems
                          California Groundwater Association
                          Culligan Water Conditioning
                          Desert Rayne Water Conditioning
                          Desert Water Agency
                          Environmental Agua, Inc.
                          Living Water Fountains, Inc.
                          Pace Supply
                          Pacific Water Quality Association
                          Performance Water Products, Inc.
                          Quality Home Services, 3 employees
                          TST Water
                          Rayne of the High Desert
                          Rayne Water Conditioning, 5 employees
                          ResinTech
                          Regional Council of Rural Counties
                          UV Pure Technologies, Inc.
                          Water Quality Association
                          Water Techniques, 8 employees
            
           OPPOSITION  :    California Association of Environmental Health  
                            
                               Administrators  
                           Clean Water Action









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