BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 21|
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THIRD READING
Bill No: AB 21
Author: Alejo (D), et al.
Amended: 9/3/13 in Senate
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 9-0, 6/12/13
AYES: Hill, Gaines, Calderon, Corbett, Fuller, Hancock,
Jackson, Leno, Pavley
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/30/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 77-0, 5/28/13 - See last page for vote
SUBJECT : Safe Drinking Water Small Community Emergency Grant
Fund
SOURCE : Author
DIGEST : This bill creates the Safe Drinking Water Small
Community Emergency Grant Fund (grant fund) which would be
administered by the Department of Public Health (DPH) and used
to provide grants for emergency drinking water projects that
serve disadvantaged and severely disadvantaged communities.
ANALYSIS : Existing law:
1.Authorizes, pursuant to the federal Safe Drinking Water Act,
the federal Environmental Protection Agency to make funds
available to drinking water systems to finance infrastructure
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improvements.
2.Requires, pursuant to Safe Drinking Water State Revolving Fund
Law, DPH to implement the Safe Drinking Water State Revolving
Fund (SDWSRF), which provides funding to correct public water
system deficiencies.
This bill:
1.Requires any amounts collected to be deposited in the grant
fund. Provides that no more than $50,000,000 will be
deposited into the grant fund.
2.Authorizes, for any loans made for projects meeting the
eligibility criteria of SDWSRF Law, DPH to assess an annual
charge to be deposited in the grant fund in lieu of interest
that would otherwise be charged.
3.Authorizes the monies in the grant fund to be for grants for
emergency drinking water projects that meet the requirements
stated in the Emergency Clean Water Grant Fund provisions and
that serve disadvantaged and severely disadvantaged
communities.
4.Requires, for the purpose of approving grants, DPH to give
priority to projects that serve severely disadvantaged
communities.
5.Requires that charge in lieu of interest funds be expended in
a manner consistent with federal Environmental Protection
Agency Drinking Water State Revolving Fund grant regulations.
Background
The California Safe Drinking Water Act requires DPH to regulate
drinking water and the SDWSRF, which provides funding to correct
public water system deficiencies. The SDWSRF provides funding
for projects that correct public water system deficiencies,
including financial assistance for the capital costs associated
with water quality infrastructure projects, but not ongoing
operations and maintenance costs. The majority of SDSRF funds
are allocated to construction projects, though funding is also
available for planning and feasibility studies for certain
eligible applicants. Financial assistance is given in several
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forms including low-interest loans, zero-interest loans, debt
refinancing, principal forgiveness, and grants.
Under the California Porter-Cologne Water Quality Control Act,
the SWRCB also administers the Clean Water State Revolving Fund
(CWSRF) in order to fund grants to small communities for
wastewater management. Until January 1, 2014, the SWRCB is
authorized to assess an annual surcharge on loans issued from
the CWSRF in lieu of interest on the loans. This surcharge is
then deposited into the Small Communities Grant Fund (SCG Fund)
for the purpose of funding the construction of wastewater
collection, treatment, or disposal projects for small
communities. No more than $50 million in surcharges may be
collected. Projects that serve severely disadvantaged
communities have priority for grants from the SCG Fund. The
surcharge may be authorized at any time during the loan
repayment schedule, but once the surcharge is applied, it must
remain unchanged unless the SWRCB is ceasing collection of the
surcharge.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Unknown on-going costs, possibly in hundreds of thousands to
millions of dollars, in the form of reduced revenues to the
SDWSRF (special) due to forgone interest payments.
One-time costs of approximately $100,000 from the SDWSRF for
the development of regulations guiding the allocation of the
fund.
Unknown, but likely minimal, increases administrative costs to
SDWSRF for the administration of the fund.
SUPPORT : (Verified 8/30/13)
California Latino Water Coalition
California Rural Legal Assistance Foundation
California State Grange
California Water Association
City of Salinas
Clean Water Action
Community Water Center
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Environmental Justice Coalition for Water
Environmental Working Group
Monterey County Board of Supervisors
Pesticide Action Network
PolicyLink
Sierra Club California
Winnemem Wintu Tribe
ARGUMENTS IN SUPPORT : According to supporters, communities
with a single drinking water source are the most vulnerable to
interruption of their water supply. When that community is very
small and low-income, that vulnerability is increased, as they
lack the economies of scale and financial resources to address
their problem. While the state does provide technical
assistance and grants for capital projects, it is very difficult
for these communities to access the funding. Some water systems
have been in the waiting list for the SDWSRF since its inception
in 1998; each year they pass up the opportunity for funding
because of the onerous requirements attached to the funding.
Supporters continue that the Emergency Clean Water Grant Fund
was created within DPH to provide immediate relief to water
systems with a disruption in their potable water supply,
including exemptions from contracting and procurement
requirements as needed. While DPH received $10 million in
funding from Proposition 84 in 2006 to fund its emergency
drinking water program, this resource is not renewable, and DPH
has only expended or allocated about half of the funds.
ASSEMBLY FLOOR : 77-0, 5/28/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Hagman, Hall, Harkey, Roger Hern�ndez, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. P�rez
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NO VOTE RECORDED: Grove, Holden, Vacancy
RM:nl 8/31/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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