BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 115 (Perea) - Safe Drinking Water State Revolving Fund.
          
          Amended: June 17, 2013          Policy Vote: EQ 9-0
          Urgency: No                     Mandate: No
          Hearing Date: July 1, 2013      Consultant: Marie Liu
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 115 would expand eligibility for grants and  
          loans from the Safe Drinking Water State Revolving Fund (SDWSRF)  
          for multi-agency and consolidated applications.

          Fiscal Impact: Unknown cost pressures, potentially in the  
          millions of dollars, to the SDWSRF (special) for increased  
          applications for grants and loans.

          Background: The Department of Public Health (DPH), under the  
          California Safe Drinking Water Act, administers grants and loans  
          from the SDWSRF to provide for the design and construction of  
          public water systems projects that will enable suppliers to meet  
          safe drinking water standards. Existing law requires DPH to  
          establish eligibility criteria within specified parameters and  
          to establish a priority list of proposed projects. 

          Proposed Law: This bill would allow multiple water systems to  
          apply for funding from the SDWSRF for a consolidated water  
          system project or an extension of services to households relying  
          on private wells if the following conditions apply:
           At least one of the systems serves a disadvantaged community  
            with drinking water violations, 
           At least 50% of the proposed project funds will be directed to  
            that community, and 
           The purpose of the consolidation or service extension is to  
            provide compliance with the California Safe Drinking Water  
            Act. 

          Related Legislation: AB 145 (Perea, Rendon) would transfer the  
          safe drinking water program under the California Safe Drinking  
          Water Act, including the SDWSRF, from DPH to the State Water  
          Resources Control Board.









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          Staff Comments: By allowing consolidated projects to be eligible  
          for funding, communities can combine needs to develop a larger  
          water system. Such systems are likely to be more cost effective  
          to build and operate. This bill is intended to increase the  
          number of applications for financial assistance from the SDWSRF,  
          however the extent to which applications may be increased and  
          for what amounts unknown. The increased utilization of the  
          assistance program imposes cost pressures on the SDWSRF.


          The additional workload associated with processing applications  
          and executing funding for projects made eligible by this bill  
          would be minor and absorbable according to DPH.