BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 962|
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                                 THIRD READING


          Bill No:  SB 962
          Author:   Anderson (R) and Rubio (D), et al.
          Amended:  5/29/12
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 4/23/12
          AYES:  Simitian, Strickland, Blakeslee, Hancock, Kehoe, 
            Lowenthal, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  6-0, 5/24/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Steinberg
          NO VOTE RECORDED:  Price


           SUBJECT  :    Public water systems:  point-of-use treatment

           SOURCE  :     Pacific Water Quality Association


           DIGEST  :    This bill expands the authorization to use 
          point-of-use (POU)/point-of-entry (POE) treatment systems 
          from 200 service connections to public water systems with 
          up to 500 service connections and extends from January 1, 
          2014 to January 1, 2016, the emergency regulation governing 
          the permitted use of POU/POE.

           ANALYSIS  :    Existing law, the California Safe Drinking 
          Water Act, provides for the operation of public water 
          systems, and requires the State Department of Public Health 
          (DPH) to adopt regulations for these purposes.  Under 
          existing law, regulations adopted by DPH are required to 
          include requirements governing the use of POE/POE treatment 
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          by public water systems in lieu of centralized treatment, 
          where feasible.  Existing law requires DPH to adopt 
          emergency regulations governing the permitted use of 
          POU/POE treatment by public water systems in lieu of 
          centralized treatment and requires that these emergency 
          regulations remain in effect until the earlier of January 
          1, 2014, or the effective date of the required nonemergency 
          regulations. Existing law limits these regulations to 
          public water systems with less than 200 service 
          connections.

          This bill will instead, limit these regulations to public 
          water systems with less service connections, and requires 
          the emergency regulations to remain in effect until the 
          earlier of January 1, 2016, or the effective date of the 
          required nonemergency regulations.

          Existing law prohibits DPH from issuing a permit to a 
          public water system to allow the use of POU treatment, 
          unless DPH makes specified determinations.

          This bill additionally prohibits DPH from issuing a permit 
          to a public water system to allow the use of POE treatment, 
          unless DPH makes specified determinations.  This bill 
          requires that prior to the approval of a permit allowing 
          installation of POU/POE treatment devices, that a water 
          system submits a capital outlay plan outlining the plan for 
          construction of centralized treatment, as specified.  This 
          bill also requires DPH to conduct a full audit of the water 
          system's finances.  Lastly, this bill specifies in addition 
          to any other fee DPH may be authorized to charge, DPH shall 
          charge a fee to a public water system that is seeking a 
          permit, or an amendment to a valid existing permit, to 
          allow the use of a POU/POE treatment system to cover DPH's 
          costs in conducting activities pursuant to this section.  
          The fee shall be sufficient to pay, but shall not exceed, 
          DPH's costs.

           Background
           
           Point of Use/ Point of Entry Treatment  .  A POU treatment 
          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 

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          of all potable water entering a building.  POE/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/POU treatment devices are installed to 
          meet drinking water standards in place of centralized 
          treatment.

           Drinking water contamination in California  .  According to 
          DPH, 98 percent of the population of California served by 
          community water systems receives drinking water that meets 
          all primary drinking water standards.  However, for the 
          nearly three-quarter-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 United States 
          Environmental Protection Agency 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee analysis, 
          there will be:


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           Ongoing costs of approximately $200,000 annually from the 
            General Fund beginning in 2013-14 through 2016-17 for 
            additional permit review and audits.

           Ongoing costs of $500,000 annually from the General Fund 
            beginning in 2013-14 for the certification of 
            point-of-use and point-of-entry treatment systems.  This 
            cost will be partially offset by Water Device 
            Certification Fees of approximately $382,000 a year.

           SUPPORT  :   (Verified  5/24/12)

          Pacific Water Quality Association (source)  
           Association of California Water Agencies
          California Groundwater Association
          Regional Council of Rural Counties
          Water Quality Association

           OPPOSITION  :    (Verified  5/24/12)

          California Association of Environmental Health 
          Administrators  
           Clean Water Action

           ARGUMENTS IN SUPPORT  :    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."

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          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.  
          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."


          DLW:do  5/29/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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