BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 145
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

               AB 145 (Perea and Rendon) - As Amended:  April 24, 2013 

          Policy Committee:                              Water, Parks and  
          Wildlife     Vote:                            9-2
                         Environmental Safety and Toxic Materials           
                       5-2                              

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill transfers the Drinking Water Program (DWP) at the  
          Department of Public Health (DPH), including the Safe Drinking  
          Water State Revolving Fund (SDWSRF), to the State Water  
          Resources Control Board (SWRCB).    This bill would delay the  
          transfer until the 2014-15 fiscal year.

           FISCAL EFFECT  

          Unknown administrative costs for transferring the program,  
          likely in the hundreds of thousands of dollars, potentially  
          offset by future efficiencies.

           COMMENTS  

           1)Purpose.   According to the author, the transfer of an  
            environmental health program from a health-based agency to an  
            environmental protection-based agency will help California  
            address future water issues.  Placing the drinking water  
            program at SWRCB will provide a comprehensive water strategy  
            based on water quality and water rights programs necessary to  
            address climate change, increases in population, and the lack  
            of safe, affordable drinking water supplies.
           
          2)Background.    Two different federal regulatory statutes govern  
            water quality issues: the Safe Drinking Water Act (SDWA) and  
            the Clean Water Act (CWA).  In California, DPH administers the  
            SDWA and SWRCB administers the CWA.









                                                                  AB 145
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            The DPH is housed within the California Health and Human  
            Services Agency and has a mission of "optimizing the health  
            and well-being of the people in California."  CDPH manages  
            programs involved in a broad range of health-related  
            activities, such as chronic disease prevention, communicable  
            disease control, family health and planning, health care  
            quality (including the regulation of health care facilities  
            and professionals and laboratories), and the regulation of  
            environmental health (including drinking water quality).  

            The SWRCB, is housed within the California Environmental  
            Protection Agency (CalEPA), and has a mission, "to preserve,  
            enhance and restore the quality of California's water  
            resources, and ensure their proper allocation and efficient  
            use for the benefit of present and future generations."  The  
            SWRCB and the nine regional water quality boards perform a  
            variety of activities related to the state's water quality and  
            resource allocation.

           3)DPH non-compliance with the federal SDWA  .  In a document dated  
            April 19, 2013, the US EPA issued a notice to DPH for  
            non-compliance with the requirements of the SDWA, its  
            implementing regulations, and the terms and conditions of the  
            SDWSRF grant agreements funded by US EPA for fiscal years 2009  
            - 2011.  The U.S. EPA determined that CDPH has not timely and  
            efficiently committed and expended the funds in the SDWSRF,  
            nor employed adequate financial resources to operate the  
            SDWSRF in a sound financial manner, in violation of the terms  
            and conditions of the grant agreements. The notice noted that  
            California has the largest unliquidated obligation in the  
            nation.

           4)Support.   A coalition of environmental, labor, public health  
            and environmental justice organizations assert that SWRCB is  
            the appropriate agency to oversee all the state's activities  
            regarding water quality, including those currently performed  
            by DPH. SWRCB has expertise in water quality and could quickly  
            and efficiently take on the additional responsibility.  SWRCB  
            already oversees several funding programs under Prop 84 as  
            well as the Clean Water State Revolving Fund.  

            Further, DPH's inability to help communities access safe  
            drinking water has made it clear that the current  
            administration of the Drinking Water Program is a barrier to  
            achieving safe drinking water.  








                                                                  AB 145
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           5)Opposition.   The Association of California Water Agencies  
            (ACWA) and others regulated by DPH assert that the State's  
            Drinking Water Program, including the permitting and  
            inspection functions, generally works well.  Opponents of the  
            transfer suggest that the focus needs to be on targeted  
            solutions that truly address the drinking water problems that  
            disadvantaged communities in unincorporated areas are facing.   


            Water agencies are concerned that moving the entire drinking  
            water program could negatively affect the parts of the program  
            that work without solving any existing problems.  The  
            California Municipal Utilities Association argues that the  
            transfer would create disruptions of vital division functions  
            and contends that the transfer could distract SWRCB from  
            existing high profile priorities.




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