BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 115
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          Date of Hearing:   March 12, 2013

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Luis A. Alejo, Chair
                  AB 115 (Perea) - As Introduced:  January 14, 2013
           
          SUBJECT  :   Drinking water.

           SUMMARY  :   This bill expands the eligibility for grants and  
          loans from the Safe Drinking Water State Revolving Fund (SDWSRF)  
          administered by the Department of Public Health (DPH).   
          Specifically,  this bill  :  

          1)Allows the submission of multi-agency SRWSRF applications when  
            at least one of the communities served by the construction  
            projects will meet safe drinking water standards.

          2)Allows SDWSRF projects to include funding for projects for  
            upgrading existing drinking water systems that will serve  
            disadvantaged communities which are distinct from the agency  
            that is requesting the funds.

          3)Requires DPH to allow multiple water systems to apply for  
            funding as a single application for the purpose of  
            consolidating drinking water systems, or for extending  
            existing services to households relying on private wells.   

          4)Requires that, to be considered eligible the consolidated  
            applications include at least one disadvantaged or severely  
            disadvantaged community with drinking water violations and  
            that at least 50% of the proposed project funds will be  
            directed to that community.

           EXISTING FEDERAL LAW  :



          1)The federal Safe Drinking Water Act (SDWA) establishes the  
            Safe Drinking Water State Revolving Fund (SDWSRF), which  
            provides states with a financing mechanism to ensure safe  
            drinking water to the public.

           EXISTING STATE LAW  :

          1)Requires DPH, in administering SDWA programs, to fund  








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            improvements and expansions of small community water systems,  
            and to do the following:

             a)   Give priority to funding projects in disadvantaged  
               communities;

             b)   Encourage the consolidation of small community water  
               systems that serve disadvantaged communities in instances  
               where consolidation will help the affected agencies and the  
               State to improve the quality and reliability of water  
               delivered and reduce the cost of drinking water;

             c)   Allow funding for feasibility studies performed prior to  
               a construction project to include studies of the  
               feasibility of consolidating two or more community water  
               systems, at least one of which is a small community water  
               system that serves a disadvantaged community; and,

             d)   In instances where it is shown that small community  
               water system consolidation will further specified goals,  
               give priority to funding construction projects that involve  
               the physical restructuring of two or more community water  
               systems, at least one of which is a small community water  
               system that serves a disadvantaged community, into a  
               single, consolidated system.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :  

           Need for the bill.   According to the author this bill is  
          designed to address the need for regional solutions for  
          communities with unsafe drinking water, specifically he states:  
          "Often times within a given region, there are water systems  
          representing different communities in close proximity to each  
          other.  In these instances the consolidation of a water system  
          with another nearby system has been an alternative solution that  
          has worked in areas throughout the state and is recommended by  
          state agencies (the State Water Resources Control Board, Nitrate  
          Report) because it helps increase the amount of residents paying  
          into one treatment facility rather than residents of multiple  
          communities paying for multiple facilities.  This long-term  
          solution that increases the economy of scale through  
          consolidation or regionalization is very difficult and  
          uncertain.  Unfortunately under current law, there is no  








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          effective mechanism for two or more communities to apply  
          together for funding excluding many communities from funding  
          and/or creating inefficiencies at the local and state level".

           Prevalence of groundwater contamination in disadvantaged  
          communities.   In 2008, AB 2222 (Caballero), Chapter 670,Statutes  
          of 2008, required the StateWater Resources Control Board  
          (SWRCB)to submit a report to the Legislature to identify the  
          following:  communities that rely on contaminated groundwater as  
          a primary source of drinking water, the principal contaminants  
          in groundwater, and potential solutions and funding sources to  
          clean up groundwater.

          The resultant SWRCB draft report "Communities that Rely on  
          Contaminated Groundwater" identified 2,584 community Public  
          Water Systems (PWS) in California that rely on groundwater as  
          their primarily source of drinking water.  Out of those, 682  
          community PWS were reported to rely on contaminated groundwater  
          as a primary source of drinking water.  The SWRCB report also  
          compared the list of 682 community PWS with a list of PWS that  
          had received a drinking water quality violation within the most  
          recent compliance cycle (2002-2010).  This comparison revealed  
          that a total of 265 community PWS that rely on contaminated  
          groundwater and serve a little over two million people had  
          received at least one drinking water quality violation within  
          the last CDPH compliance cycle.  According to this report, most  
          of the community PWS with violations of drinking water standards  
          are located in the Southern California Inland Empire, the east  
          side of San Joaquin Valley, the Salinas Valley and the Santa  
          Maria Valley.  The findings from this report and the UC Davis  
          study suggest that drinking water contamination in California  
          disproportionally affects small, rural and low-income  
          communities that depend mostly on groundwater as their drinking  
          water source. 

          Communities that rely on contaminated groundwater typically  
          treat their water before it is delivered and consumed.  However,  
          disadvantaged communities generally get their water from small  
          PWS that often lack the infrastructure and the financial  
          resources to remove the contaminants from the groundwater prior  
          to the water being delivered.  By contrast, communities that  
          receive their water supply from large PWS are better able to  
          cope with groundwater contamination.  Large PWS have the  
          economic means to absorb the cost associated with treatment and  
          the technical capacity to address water contamination.  








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          In addition, approximately two million Californians rely on  
          groundwater from either a private domestic well or a smaller  
          groundwater-reliant system that is not regulated by the State.   
          A large portion of these California residents lack an assessment  
          of how clean their water is because they are not required to  
          test the quality of their well water. 

           The Governor's Drinking Water Stakeholder Group Recommendations.   
           In June 2012, Governor Brown convened a Drinking Water  
          Stakeholder Group, comprised of representatives from, among  
          others, California State and local agencies, the agricultural  
          community, the environmental justice community, academia, and  
          other water related entities which considered options to address  
          drinking water threats and the problems of nitrate  
          contamination.  
           
          In August 2012, the Governor's Drinking Water Stakeholder Group  
          submitted the Final Report to the Governor's Office which  
          included a series of recommendations for legislative action.   
          One of the proposed concepts was:

          Support and fund project planning to foster local, sustainable  
          solutions (including, but not limited to, shared solutions,  
          inter-community planning facilitation, engineering, legal,  
          financial or managerial analysis, environmental documentation,  
          and other project development activities).

           State Water Resources Control Board - Recommendations for  
          Addressing Nitrate in Groundwater.   In compliance with the  
          requirements of SB X2 1 (Perata) Chapter 1, Statutes of 2007-08  
          Second Extraordinary Session, in February of 2013, the SWRCB  
          issued a series of 15 recommendations for addressing nitrate  
          contamination in groundwater.  Among the suggested legislative  
          proposals, the SWRCB recommended providing greater access for  
          regional drinking water strategies, specifically:  
           
          The Legislature should enact legislation to establish a  
          framework of statutory authorities for CDPH, regional  
          organizations, and county agencies to have the regulatory  
          responsibility to assess alternatives for providing safe  
          drinking water and to develop, design, implement, operate, and  
          manage these systems for small DACs impacted by nitrate.

           Related current legislation  :








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          1)AB 1 (Alejo).  Appropriates $2 million to SWRCB for use by the  
            Greater Monterey County Regional Water Management Group to  
            develop an integrated plan to address the drinking water and  
            wastewater needs of disadvantaged communities suffering from  
            wastewater discharges into the region's groundwater in the  
            Salinas Valley.  This bill passed the Assembly ESTM Committee  
            on February 12, 2013, and was referred to the Assembly  
            Appropriations Committee.

          2)AB 21 (Alejo).  Creates the Safe Drinking Water Small  
            Community Emergency Grant Fund to address contaminated water  
            in small communities.  Authorizes DPH to assess a specified  
            annual charge in connection with loans (in lieu of interest)  
            for certain drinking water projects funded by the SDWSRF.   
            This bill passed the Assembly ESTM Committee on February 12,  
            2013, and was referred to the Assembly Appropriations  
            Committee.  

          3)AB 30 (Perea).  Eliminates the sunset on the charge in lieu of  
            interest provision for the State Water Pollution Control  
            Revolving Fund.  This bill passed the Assembly ESTM Committee  
            on February 12, 2013, and was referred to the Assembly  
            Appropriations Committee.

          4)AB 69 (Perea).  Establishes the Nitrate at Risk Area Fund, to  
            be administered by the SWRCB, for developing and implementing  
            sustainable and affordable solutions for disadvantaged  
            communities.  This bill is scheduled for hearing in the  
            Assembly ESTM Committee on March 12, 2013.

          5)AB 118 (ESTM).  Authorizes DPH to adopt interim regulations  
            for the purposes of implementing the SDWSRF, and amends other  
            statutory provisions relating to the drinking water program.   
            This bill is scheduled for hearing in the Assembly ESTM  
            Committee on March 12, 2013.
             
          6)AB 145 (Perea - Rendon).  Transfers the State drinking water  
            program under the California Safe Drinking Water Act,  
            including the SDWSRF, from DPH to the SWRCB.  Makes findings  
            regarding the need for consolidation of programs for safe  
            drinking water and clean water.  This bill has been double  
            referred to the Assembly Committees on Water, Parks and  
            Wildlife Committee and on ESTM.  









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          7)SB 117 (Rubio).  Transfers the various duties and  
            responsibilities imposed on DPH by the California Safe  
            Drinking Water Act to the SWRCB, and makes conforming changes.  
             This bill has been double referred to Senate Committees on  
            Health and on Environmental Quality.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Association of California Water Agencies
          California Municipal Utilities Association
          California Special Districts Association
          California Rural Legal Assistance Foundation
          Clean Water Action
          Community Water Center
          Environmental Justice Coalition for Water
          PolicyLink
          Rural County Representatives of California

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Bob Fredenburg/ E.S. & T.M. / (916)  
          319-3965