BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 115
                                                                  Page  1

          Date of Hearing:   April 10, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 115 (Perea) - As Introduced:  January 14, 2013

          Policy Committee:                              Environmental  
          Safety and Toxic Materials                    Vote: 7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:

           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) by allowing  
          consolidated applications.   Specifically, this bill permits  
          multiple water systems to apply for funding in a single  
          application and allows a single agency to apply for funds to  
          treat water systems outside of their jurisdiction.   

          Consolidated applications must serve at least one disadvantaged  
          or severely disadvantaged community and assist at least one  
          community in meeting safe drinking water standards.

           FISCAL EFFECT  

          Negligible cost.  According to the DPH, workload associated with  
          processing applications and executing funding agreements is paid  
          for through an administrative set-aside.  

           COMMENTS  

           1)Purpose  .  This bill is designed to provide regional funding  
            solutions for communities with unsafe drinking water.  The  
            consolidation of nearby water systems increases the economies  
            of scale by allowing members of multiple communities to  
            finance one treatment facility rather than multiple  
            facilities.

            This bill also allows disadvantaged communities to access  
            SDWSRF grants or loans through the assistance of other public  
            or private water agencies.








                                                                  AB 115
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           2)Background  .  Drinking water contamination disproportionately  
            affects small, rural, and low-income communities that rely on  
            groundwater as their drinking water source.   In 2008, the  
            State Water Resources Control Board (SWRCB) draft report draft  
            report, Communities that Rely on Contaminated Groundwater,  
            identified 682 public water systems with contaminated  
            groundwater as their primary source of drinking water and 265  
            public water systems serving two million people with water  
            quality violations.   The most impacted areas are the Inland  
            Empire, San Joaquin Valley, Salinas Valley and the Santa Maria  
            Valley.   

             The governor's 2012 drinking water stakeholder group  
            recommends fostering shared solutions consistent with this  
            bill.

           3)Nitrate in Groundwater  .  In February 2013, the SWRCB released  
            "Recommendations for Addressing Nitrate in Groundwater."     
            One of the 15 recommendations in the report called for  
            regional entities to assume the regulatory responsibility and  
            determine alternatives for supplying drinking water to  
            disadvantaged communities.  This bill provides a means for  
            larger public water systems to absorb the costs and provide  
            the technical assistance necessary to address groundwater  
            contamination in small or disadvantaged communities.  

           4)  Safe Drinking Water Act  . This federal program establishes the  
            SDWSRF and requires a 20% state-match to draw down federal  
            funds for safe drinking water programs.  

          Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081