BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 962
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 962 (Anderson) - As Amended:  June 25, 2012 

          Policy Committee:                             Environmental 
          Safety and Toxic Materials                    Vote: 9-0

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

           SUMMARY  

          This bill increases, from 200 to 500, the limit on the number of 
          service connections served by a small community water system 
          that the Department of Public Health (DPH) may permit to use 
          point-of-use (POU) and point-of-entry (POE) water treatment in 
          place of centralized water treatment.  The bill also: 

          1)Requires DPH to:

             a)   Certify, prior to approval of a permit for POU or POE, 
               that an adequate centralized water treatment facility will 
               be completed by the water system within five years of 
               application for the permit for POU or POE water treatment.

             b)   Conduct a full audit of the finances of a water system 
               utilizing POU or POE water treatment to examine why the 
               system cannot fund needed upgrades and maintenance.

             c)   Certify and approve POU and POE water treatment devices.

          2)Authorizes DPH to charge a fee to a public water system 
            seeking a POU or POE permit or to amend such a permit, 
            sufficient to cover DPH's costs.

           FISCAL EFFECT  

          Annual costs of approximately $200,000, from 2012-13 through 
          2016-17, to DPH to review POU and POE permit applications 
          (roughly $170,000 annually) and to audit public water systems 
          using POU or POU treatment (roughly $30,000 annually), assuming 
          one-quarter of the state's 158 small community water systems 








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          apply for a POU or POE permit during this period (Safe Drinking 
          Water Account.)  These costs should be largely covered by the 
          fee authorized by this bill.

           COMMENTS  

           1)Rationale.   The author contends many small communities cannot 
            afford centralized water treatment systems at this time, yet 
            are too large to qualify for permit requirements that allow 
            low-cost, interim potable water treatment systems.  The author 
            intends this bill to provide temporary water treatment options 
            for such communities while increasing transparency of water 
            system finances.

           2)Background.   Point-of-use treatment consists of a small device 
            that treats water, at or near its use within a building. 
            Point-of-entry treatment typically consists of a larger device 
            that treats water, as it enters a building. The federal Safe 
            Drinking Water Act allows systems to install POU and POE 
            treatment devices to achieve compliance with the National 
            Primary Drinking Water Regulations.   

            Current state law directs DPH to adopt regulations governing 
            the use of POU and POE treatment by public water systems in 
            lieu of centralized treatment where it can be demonstrated 
            that centralized treatment is not immediately economically 
            feasible. Use of such systems is to be limited to the 
            following:

             a)   Water systems with less than 200 service connections.  

              b)   Usage allowed under the federal Safe Drinking Water Act 
               and its implementing regulations and guidance.  
                
             c)   Water systems that have submitted preapplications to DPH 
               for funding to correct the violations for which the 
               point-of-use treatment is provided.  
             
            DPH has adopted emergency regulations, and is in the process 
            of adopting permanent regulations, consistent with the above 
            criteria, as well as limiting a water systems use of 
            point-of-use treatment to three years or until funding for 
            centralized treatment is available, whichever is sooner.  To 
            demonstrate that a centralized system is not immediately 
            economically feasible, a community must report its median 








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            household income to DPH, among other data.

            DPH reports it currently certifies POU and POE water treatment 
            systems as part of its Water Treatment Device Certification 
            program.

           3)Related Legislation.   AB 2056 (Chesbro) exempts public water 
            systems serving 20 or fewer residential connections from the 
            three-year limit on the use of point-of-use treatment.  The 
            bill passed the Assembly 78-0 and is pending before Senate 
            Environmental Quality.  
             
           4)Support  .  This bill is supported by the Pacific Water Quality 
            Association (sponsor), the Regional Council of Rural Counties 
            and several other organizations who argue small water systems 
            cannot afford centralized water treatment and need regulatory 
            flexibility to ensure ratepayers receive clean drinking water.

           5)Opposition.   This bill is opposed by the California 
            Association of Environmental Health Administrators and the 
            Health Officers Association of California, who contend POU and 
            POE systems are temporary measures taken in extreme situations 
            and that centralized treatment is the best way to ensure 
            potable water is not contaminated.  
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081