BILL ANALYSIS �
AB 21
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Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 21 (Environmental Safety and Toxic Materials) - As Amended:
February 14, 2012
Policy Committee: Environmental
Safety and Toxic Materials Vote: 6-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates the Safe Drinking Water Small Community
Emergency Grant Fund and authorizes the Department of Public
Health (DPH) to assess an annual charge to be deposited in this
fund in- lieu of interest that would otherwise be charged on
Safe Drinking Water State Revolving Fund (SDWSRF) loans.
The annual charge a SDWSRF loan recipient pays would be in an
amount identical to the amount of annual interest owed. Rather
than pay the interest to SDWSRF, the equivalent fee would be
deposited in the newly created grant fund.
This bill establishes a program and funding source for safe
drinking water grants to disadvantaged and severely
disadvantaged communities.
FISCAL EFFECT
1)Potentially millions of dollars could shift from the SDWSRF to
the newly created Safe Drinking Water Small Community
Emergency Grant Fund.
2)On-going absorbable costs to DPH to administer the new grant
program that would otherwise be spent administering the
SDWSRF.
COMMENTS
1)Purpose. This bill provides a renewable funding source for
emergency drinking water projects and targets the funds to
AB 21
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disadvantaged and severely disadvantaged communities. The
creation of the new program will allow DPH to disburse
emergency grant funds to communities currently without access
to safe drinking water.
This bill shifts funds from a program that is very difficult
for disadvantaged communities to access and creates a new
program specific for that population.
This bill is consistent with the highest priority
recommendation in the February 20, 2013 State Water Resources
Control Board report "Recommendations Addressing nitrate in
groundwater."
2)Background. The SDWSRF provides loans to public water systems
to finance drinking water infrastructure projects in
compliance with state and federal law. The state provides a
20% match to draw-down federal funds from the US EPA. The
SDWSRF is a loan program that is typically inaccessible to
disadvantaged communities who cannot meet the requirement of
the program or cannot afford loans.
3)Small Community Grant. This bill creates a program at DPH
similar to the wastewater grant program for disadvantaged
communities at the SWRCB.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081