BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 145
                                                                  Page  1

          Date of Hearing:   April 2, 2013

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Anthony Rendon, Chair
                  AB 145 (Perea) - As Introduced:  January 18, 2013
           
          SUBJECT  :   Drinking water program reorganization

           SUMMARY :   Consolidates the Drinking Water Program (DWP),  
          currently at the Department of Public Health (DPH), with water  
          supply and water quality programs at the State Water Resources  
          Control Board (State Water Board).   Specifically,  this bill  :  

          1)Makes findings that include, but are not limited to:
             a)   The public nature of, and human need for, water;
             b)   California's reliance upon groundwater for a third of  
               its drinking water supplies in a normal year and up to half  
               of its supplies in a drought year;
             c)   The fragmentation of groundwater regulation over many  
               entities, including local entities; and,
             d)   The separation of water quality regulation in State  
               government between source water regulation, which is  
               performed by the State Water Board, and drinking water  
               treatment standards, which are enforced by the DPH.

          2)Makes additional findings regarding the effects of groundwater  
            contamination, especially upon communities that lack the  
            financial resources to resolve their drinking water problems  
            and recognizes the Legislature's:
             a)   Efforts to evaluate and explore ways to remediate  
               nitrate contamination in the Tulare Lake Basin and Salinas  
               Valley;
             b)   Attempts to adjust the safe drinking water program to  
               maximize the use of federal stimulus funds; and,
             c)   Appropriation, in each Budget Act, of funding from a  
               variety of sources, including voter-approved general  
               obligation bonds, in order to fix public water systems that  
               do not provide safe drinking water.

          3)Advises that the State needs a consolidated and comprehensive  
            system to ensure safe drinking water for all, including  
            protecting groundwater for drinking water.

          4)Asserts that consolidating all water quality programs into the  
            State Water Board, the one state agency whose primary mission  








                                                                  AB 145
                                                                  Page  2

            relates to water quality, will yield numerous benefits  
            including:
               a)     Greater focus of financial and staff support for the  
                 drinking water program;
               b)     More coordination and less duplication among  
                 programs;
               c)     Greater efficiencies of scale and shared resources; 
               d)     A broader array of expertise concentrated on  
                 drinking water quality, with agency experience in water  
                 quality science and policy;
               e)     Coordination between water source protection and  
                 drinking water treatment programs;
               f)     More accountability for drinking water programs,  
                 with a unified agency that has responsibility for  
                 oversight and funding and a five-member expert board that  
                 makes public decisions;
               g)     Improved understanding and coordination between  
                 water quality and water rights;
               h)     Consolidated funding programs for related water  
                 resources, including both source water protection and  
                 wastewater treatment.

          5)States the Legislature's intent to use a process with broad  
            public participation from affected stakeholders and agencies  
            in order to craft the most effective management structure for  
            achieving a comprehensive strategy for protecting drinking  
            water quality.

          6)Makes the State Water Board the successor to DPH with regard  
            to the DWP and vests the State Water Board with all of the  
            authority, duties, powers, purposes and responsibilities of  
            the DWP.

          7)Moves the DPH Division of Drinking Water and Environmental  
            Management to the State Water Board where it becomes the  
            Division of Drinking Water Quality.

          8)Specifies that the move of DWP to the State Water Board shall  
            not impair the authority of a local health officer to enforce,  
            or a county's election not to enforce, the California Safe  
            Drinking Water Act (CA SDWA) and that the State Water Board  
            shall accept responsibility for enforcing the CA SDWA pursuant  
            to contract.

          9)Makes the State Water Board the successor to DPH with regard  








                                                                  AB 145
                                                                  Page  3

            to the Drinking Water State Revolving Fund (DWSRF) and vests  
            the State Water Board with all of the authority, duties,  
            powers, purposes, responsibilities and jurisdiction of that  
            Revolving Fund.

           EXISTING LAW  :

          1)Requires, by Constitutional amendment, that all water use be  
            "reasonable and beneficial."  

          2)Creates the State Water Board within the California  
            Environmental Protection Agency (Cal/EPA).  The State Water  
            Board consists of five full-time salaried board members.   
            Requires the members of the State Water Board to include an  
            attorney, a registered civil engineer, and a registered  
            professional engineer who is experienced in sanitary  
            engineering and qualified in the field of water quality.  Of  
            the five members, one is also required to be qualified in the  
            field of water supply and water quality relating to irrigated  
            agriculture.  One member is not required to have specialized  
            experience.  All members are appointed to four-year terms by  
            the Governor and confirmed by the Senate.

          3)Divides the State into nine regions for the purposes of water  
            quality regulation:  North Coast, San Francisco Bay, Central  
            Coast, Los Angeles, Santa Ana, San Diego, Central Valley,  
            Lahontan, and Colorado River.

          4)Establishes nine Regional Water Quality Control Boards  
            (Regional Water Boards) comprised of nine members, appointed  
            by the Governor, which shall include: 1 person associated with  
            water supply, conservation, and production; 1 person  
            associated with irrigated agriculture;  1 person associated  
            with industrial water use; 1 city council member or mayor; 1  
            county supervisor; 1 person from a responsible nongovernmental  
            organization associated with recreation, fish, or wildlife;  
            and, 3 persons not specifically associated with any of the  
            other categories, two of whom shall have special competence in  
            areas related to water quality problems.

          5)Empowers the five-member State Water Board to allocate water  
            rights, adjudicate water right disputes, develop statewide  
            water protection plans, establish water quality standards, and  
            guide the nine Regional Water Boards, including hearing  
            appeals of those Boards' decisions.








                                                                  AB 145
                                                                  Page  4


          6)Establishes, under California law, the Porter-Cologne Water  
            Quality Control Act (Porter-Cologne), which designates  
            beneficial uses of water.  These beneficial uses include  
            municipal and industrial uses, irrigation, hydroelectric  
            generation, livestock watering, recreational uses, fish and  
            wildlife protection, and aesthetic enjoyment.

          7)Enforces California's water quality standards through Water  
            Quality Control Plans adopted by the State Water Board and the  
            nine Regional Water Boards (collectively "California Water  
            Boards").  Requires Water Quality Control Plans to include  
            implementation programs to achieve and maintain compliance  
            with water quality objectives.


          8)Requires the State Water Board to improve comprehensive  
            groundwater monitoring and increase the availability to the  
            public of information about groundwater contamination by  
            establishing and implementing a comprehensive monitoring  
            program capable of assessing each groundwater basin in the  
            state through direct and other statistically reliable sampling  
            approaches.  This program is known as the Groundwater Ambient  
            Monitoring and Assessment (GAMA) Program. 


          9)Establishes the Clean Water Act (CWA), administered by the  
            United States Environmental Protection Agency (USEPA).  The  
            CWA is the primary federal law in the United States governing  
            water pollution.  The principal provisions of the modern CWA,  
            the Federal Water Pollution Control Amendments of 1972, are  
            modeled on California's Porter-Cologne.  The CWA does not  
            directly address groundwater contamination. Groundwater  
            protection provisions are included in the Safe Drinking Water  
            Act, Resource Conservation and Recovery Act, and the  
            Comprehensive Environmental Response, Compensation, and  
            Liability Act (a.k.a. the Superfund Act).


          10)Enforces the CWA by requiring a National Pollutant Discharge  
            Elimination System (NPDES) permit for each point source  
            (discrete conveyance such as a pipe or man-made ditch) that  
            discharges pollution into surface waters.  Under the NPDES  
            system, the Total Maximum Daily Load (TMDL) is established for  
            each contaminant and numeric limits are imposed upon each  








                                                                  AB 145
                                                                  Page  5

            discharger of that contaminant.


          11)Delegates authority to the California Water Boards to issue  
            NPDES permits.  While the State Water Board has issued a few  
            NPDES permits, the vast majority of NPDES permits are issued  
            by the Regional Water Boards.


          12)Enforces Porter-Cologne through the issuance of waste  
            discharge requirements (WDRs), mostly by Regional Water  
            Boards. WDRs for discharges to surface waters also serve as  
            NPDES permits.  


          13)Authorizes USEPA, under the CWA, to provide funding through  
            the Clean Water State Revolving Fund (CWSRF) program,  
            administered by the State Water Board.  The CWSRF Program  
            provides low-cost financing for construction of wastewater  
            treatment and water recycling facilities, implementation of  
            expanded use projects, and development and execution of  
            estuary comprehensive conservation and management plans. 


          14)Authorizes USEPA, under the federal Safe Drinking Water Act  
            (SDWA), to set national health-based standards for drinking  
            water to protect against both naturally-occurring and  
            anthropogenic contaminants.

          15)Authorizes USEPA, under the SDWA, to provide funding through  
            the DWSRF program, administered by DPH. The program finances  
            infrastructure improvements and emphasizes providing funds to  
            small and disadvantaged communities and to programs that  
            encourage pollution prevention as a tool for ensuring safe  
            drinking water.  

          16)Enacts the CA SDWA to build on and strengthen the federal  
            SDWA. The CA SDWA protects the public from contaminants in  
            drinking water by establishing maximum contaminants levels  
            (MCLs) that are at least as stringent as those developed by  
            the USEPA, as required by the federal SDWA.

          17)Under the CA SDWA: 

             a)   Requires every public water system (PWS) to notify users  








                                                                  AB 145
                                                                  Page  6

               when certain monitoring or other requirements have not been  
               complied with; to notify customers when failure to comply  
               with a primary drinking water standard represents an  
               imminent danger; to notify customers that they should avoid  
               consumption of the water supply due to a chemical  
               contamination that may pose a health risk and to instead  
               use bottled water; to notify consumers of confirmation of  
               detected contaminants; and to annually deliver a copy of  
               the consumer confidence report to each customer.

             b)   Requires a person operating a PWS to notify the  
               governing body of the local agency in which the users of a  
               drinking water supply reside, within 30 days of the closure  
               of a well or upon discovery of a contaminant exceeding an  
               MCL or an action level set for drinking water.

             c)   Requires PWSs to be permitted by the DPH and demonstrate  
               that they provide a reliable and adequate supply of water  
               at all times that is pure, wholesome, potable, and does not  
               endanger the health of consumers.

          18)Establishes the Office of Environmental Health Hazard  
            Assessment (OEHHA) within Cal/EPA.  OEHHA's stated mission is  
            to protect human health and the environment through scientific  
            evaluation of risks posed by hazardous substances.
           
          19)Charges OEHHA to develop health-protective exposure levels  
            for contaminants in air, water, and soil as guidance for  
            regulatory agencies and the public, including the DPH DWP.  
            OEHHA also implements the Safe Drinking Water and Toxic  
            Enforcement Act of 1986, commonly known as Proposition 65, and  
            compiles the state's list of substances that cause cancer or  
            reproductive harm. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   All water is in continuous movement on, above, and  
          below the surface of the Earth.  In many instances, the  
          wastewater we discharge into our rivers and streams becomes part  
          of the drinking water supply for municipalities farther  
          downriver.  The water that percolates through municipal and  
          agricultural soils becomes the groundwater for communities  
          within the same basin.  In many, if not most, instances issues  
          of water quality are matters of water supply and vice versa.   
          For this reason, California acted more than 30 years ago to  








                                                                  AB 145
                                                                  Page  7

          create the State Water Board and give it the broad authority and  
          immense responsibility to not only protect water quality but to  
          balance competing demands on the State's water resources and  
          attempt to resolve decades-long water disputes.

           The State Water Board
           This bill's proposal to move the DWP to the State Water Board is  
          not the Legislature's first attempt to streamline regulation of  
          our water resources.  There were previously two boards: the  
          State Water Rights Board and the State Water Quality Control  
          Board.  A water rights commission, which preceded the Water  
          Rights Board, was created in the early 1900s to arbitrate and  
          resolve the state's water battles, which began during the 1849  
          Gold Rush.  And the former State Water Quality Control Board had  
          its roots in the late 1940s, when legislators created a more  
          streamlined regulatory body to address the rising water quality  
          problems associated with the state's explosive industrial and  
          population growth.

          In 1967, the Legislature created the State Water Board by  
          merging the functions of the Water Rights Board and the Water  
          Quality Control Board.  The mission of the State Water Board is  
          to "ensure the highest reasonable quality for waters of the  
          State, while allocating those waters to achieve the optimum  
          balance of beneficial uses."  The merging of the two boards gave  
          the State Water Board joint authority over water allocation and  
          water quality protection, which the State Water Board maintains  
          enables it to "provide comprehensive protection for California's  
          waters."

          The State Water Board advises that in order to better understand  
          the breadth of its charter "it is important to grasp the  
          evolution of water rights and water protection as it evolved  
          from gold mining days, through the 20th century and the birth of  
          the environmental movement in the late 1960s, to the new  
          millennium with its increasingly complex, interrelated water  
          issues."

          Today the five-member State Water Board allocates water rights,  
          adjudicates water right disputes, develops statewide water  
          protection plans, establishes water quality standards, and  
          guides the nine Regional Water Boards located in the major  
          watersheds of the state.  The State Water Board also implements  
          GAMA, a comprehensive water quality monitoring program for  
          groundwater basins, including private domestic wells. 








                                                                  AB 145
                                                                  Page  8


          Drinking water regulation, however, remains somewhat isolated  
          from California's comprehensive source water regulation.  As  
          stated above, the State Water Board, which is part of Cal/EPA,  
          permits and enforces water rights and also water quality for  
          discharges to surface waters and groundwater.  However, it is  
          DPH, which is found within the California Health and Human  
          Services Agency (CHHSA), that administers the DWP.

           The Department of Public Health
           DPH's stated mission is "optimizing the health and well-being of  
          the people in California."  Most of DPH's programs are housed  
          within five centers: the Center for Chronic Disease Prevention  
          and Health Promotion, Center for Infectious Diseases, Center for  
          Family Health, the Center for Health Care Quality, and the  
          Center for Environmental Health.

          The Center for Chronic Disease Prevention and Health Promotion  
          administers programs that address the prevention and control of  
          chronic diseases including cancer, cardiovascular diseases, and  
          diabetes; the prevention and control of injuries; and, the  
          prevention and control of environmental and occupational  
          diseases. The Center comprises the Division of Chronic Disease  
          and Injury Control and the Division of Environmental and  
          Occupational Disease Control. 

          The Center for Infectious Diseases (CID) aims to protect the  
          public from the threat of preventable infectious diseases and  
          assists those living with an infectious disease in securing  
          prompt and appropriate access to healthcare, medications and  
          associated support services. CID does this through an Office of  
          Infectious Diseases and Emergency Preparedness, Office of AIDS,  
          and Division of Communicable Disease Control. 

          The Center for Family Health is comprised of four Divisions,  
          including the Genetic Disease Screening Program, the Office of  
          Family Planning, the Maternal, Child and Adolescent Health  
          Program and the Women, Infants and Children Supplemental  
          Nutrition Program. These divisions oversee a multiplicity of  
          programs that impact the health and birth outcomes for  
          Californians and reduce health disparities.

          The Center for Health Care Quality is responsible for regulatory  
          oversight of health facilities, health professionals, and  
          clinical and public health laboratories, and executes this  








                                                                  AB 145
                                                                  Page  9

          oversight through the Center's Licensing and Certification  
          program and Laboratory Field Services Program.

          The Center for Environmental Health comprises the Division of  
          Food Drug and Radiation Safety and the Division of Drinking  
          Water and Environmental Management.  The Center for  
          Environmental Health does all of the following: protects the  
          public from unsafe drinking water; oversees the disposal of  
          low-level radioactive waste; regulates the generation, handling,  
          and disposal of medical waste; and protects and manages food,  
          drug, medical device, and radiation sources.  It is within this  
          Center and Division that the DWP is found.

          The DWP regulates public water systems; oversees water recycling  
          projects; permits water treatment devices; certifies drinking  
          water treatment and distribution operators; supports and  
          promotes water system security; provides support for small water  
          systems and for improving technical, managerial, and financial  
          capacity; and, provides funding opportunities for water system  
          improvements.  Private domestic wells are not regulated by DWP.   
          As noted above, it is the State Water Board that has information  
          pertinent to private domestic well water quality.  

           Assembly Hearings on the DWP
           On November 14, 2012 the Assembly Environmental Safety and Toxic  
          Materials Committee (ESTM) held an oversight hearing on  
          Contaminated Drinking Water in California's Disadvantaged  
          Communities. That hearing explored the risks to California's  
          drinking water sources, primarily from nitrate contamination in  
          groundwater, and the frustrations of economically disadvantaged  
          communities who had attempted to receive funding and assistance  
          from the DWP in order to get access to safe drinking water.  

          In follow up, ESTM held another oversight hearing on March 18,  
          2013 entitled Drinking Water Program Organization: Improving  
          State Assistance and Regulation of Public Drinking Water Systems  
          which asked whether the DWP was working and if the  
          administration of that program could be made "more efficient,  
          effective, and responsive to the needs of the poorest  
          neighborhoods" by moving it to the State Water Board where the  
          majority of the rest of the State's water programs are housed.   
          During that hearing stakeholders from disadvantaged communities  
          spoke of the difficulty and expense of accessing substitute  
          water supplies in areas where groundwater is contaminated.  They  
          also raised problems of communication and clarity in working  








                                                                  AB 145
                                                                  Page  10

          with DPH.  

          In a report presented during that March 18, 2013 ESTM hearing  
          entitled Evaluating the Potential Transfer of Drinking Water  
          Activities from DPH to SWRCB, the Legislative Analyst's Office  
          (LAO) further documented stakeholders concerns with regard to  
          DPH including: its lack of integration with overall water  
          quality management; slow distribution of financial assistance;  
          slow rulemaking process; insufficient fee structure leading to  
          inadequate administrative resources; and, lack of transparent  
          decisionmaking.  The LAO's report stated that 30 states have  
          consolidated drinking water and water quality programs in a  
          single state entity and that some have also consolidated their  
          revolving loan programs (CWSRF and DWSRF).  The LAO concluded  
          transferring DWP to SWRCB could have several potential  
          advantages including greater policy integration on water issues;  
          accelerated rulemaking; increased efficiencies and  
          administrative capacity; and heightened transparency and greater  
          public participation by utilizing a board that meets in public.   
          The LAO's report also cautioned that there could be potential  
          disadvantages, including: loss of integration with public health  
          programs that monitor infectious diseases and incidences of  
          birth defects and cancer; temporary disruption in the program's  
                                                                                       capacity to perform regulatory activities; and, potentially  
          increased, mainly short-term, costs to relocate staff,  
          reclassify positions, and integrate information technology  
          systems.  

           Supporting arguments  :  The author's office states that because  
          California has stretched its water quality agencies thin and  
          across different houses the DWP is not adequately providing  
          services to Californians.  The author asserts that this bill  
          "will maximize the efficiency and effectiveness of drinking  
          water, groundwater, and water quality programs in a single  
          agency whose primary mission is water quality."  Other  
          supporters state that CHHSA has enormous responsibilities for  
          protecting public health, which results in the DPH DWP  
          "competing among other urgent needs for attention and resources.  
           This has caused multi-year delays to needed regulatory changes  
          and other problems."  In addition, supporters note that the  
          LAO's office concluded that the Revolving Fund managed by DPH  
          "generally performs less well" than the revolving fund managed  
          by the State Water Board and that former Governor  
          Schwarzenegger's California Performance Review "recommended  
          combining the two Revolving Funds as a way to save money and  








                                                                  AB 145
                                                                  Page  11

          improve the operation of both programs," as this bill would do.   


           Opposing arguments  :  Opponents of this bill acknowledge that  
          more than "two million people in California do not have access  
          to safe drinking water" and that this "is a problem that must be  
          addressed."  However, opponents assert that "the entire [DWP] is  
          not broken" and that "the focus needs to be on targeted  
          solutions that truly address the drinking water problems that  
          disadvantaged communities in unincorporated areas are facing."   
          Opponents are "concerned that moving the entire [DWP] could  
          negatively affect the parts of the program that work and not  
          solve the problems that do exist."  Other opponents state they  
          are, in general, satisfied with how the DWP has performed its  
          functions and that, in contrast, the State Water Board is  
          already "close to overburdened and underfunded."
           Issues for the Committee's Consideration 
           The focus of this bill is to move the DWP from DPH to the State  
          Water Board.  The Committee staff recommends that the author  
          consider several measures that could reduce the potential  
          disruption of such a move:

          1)Coordinate the policy process with the requisite budget  
            actions for planning and implementing a move.  For example,  
            make the bill effective on January 1, 2014 but the transition  
            effective on July 1, 2014, which is the beginning of the next  
            fiscal year.  This would allow the Governor to include  
            appropriate changes in his proposed State budget for fiscal  
            year 2014-2015 when it is released in January 2014 and revised  
            in May 2014.

          2)Clarify how a move would be achieved.  Would existing DWP  
            staff and expertise be relocated to the State Water Board?   
            What would be the role of local agencies that are currently  
            implementing DWP actions or related actions?

          3)Identify what actions can aid or inhibit the move of programs  
            to Cal/EPA.  Examples include the transfer of the beverage  
            container recycling program, which was under the Department of  
            Conservation in the Natural Resources Agency, to CalRecycle;  
            and, the relocation of the pesticide regulation program from  
            the Department of Food and Agriculture, a separate  
            Secretary-level agency, to its own stand-alone Department in  
            Cal/EPA.   









                                                                  AB 145
                                                                  Page  12

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Rural Legal Assistance Foundation
          California Teamsters Public Affairs Council
          Clean Water Action California
          Community Water Center
          Environmental Justice Coalition for Water
          Food & Water Watch
          PolicyLink
          Sierra Club California
          United Food & Commercial Workers Western States Council

           Opposition 
           
          Association of California Water Agencies (unless amended)
          California Municipal Utilities Association (unless amended)
          Health Officers Association of California
           
          Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096