BILL ANALYSIS �
AB 1331
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Jerry Hill, Chair
2013-2014 Regular Session
BILL NO: AB 1331
AUTHOR: Rendon
AMENDED: April 21, 2014
FISCAL: Yes HEARING DATE: May 7, 2014
URGENCY: Yes CONSULTANT: Joanne Roy
SUBJECT : CLEAN, SAFE, AND RELIABLE DRINKING WATER ACT OF
2014
SUMMARY :
Existing law :
1) Approved by the voters, enacted the Water Security, Clean
Drinking Water, Coastal and Beach Protection Act of 2002
(Proposition 50) , which authorized $3.44 billion (B) in
general obligation bonds to fund a variety of water projects
and provides the following to address water quality issues:
a) $640 million (M) for integrated regional water
management plan (IRWMP), which among other things
addresses pollution reduction, water treatment, and land
and water acquisitions to improve or protect water
quality.
b) $435M for safe drinking water for small community
drinking water system upgrades, contaminant removal and
treatment, water quality monitoring, and drinking water
source protection.
c) $370M for clean water and water quality projects,
including water pollution prevention, water recycling,
water quality improvements, coastal nonpoint source
pollution control, Lake Tahoe water quality improvements,
and land and water acquisitions to protect water quality
in the Sierra Nevada-Cascade Mountain region.
d) $100M for desalination projects, treatment or removal
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of specified contaminants, and drinking water
disinfecting projects.
2) Approved by voters, enacted the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal
Protection Act of 2006 (Proposition 84) , which authorized
$5.388B in general obligation bonds to fund safe drinking
water, water quality and supply, flood control, waterway
and natural resources protection, water pollution and
contamination control, state and local park improvements,
public access to natural resources, and water conservation
efforts. More specifically, Proposition 84 provides the
following to address water quality issues:
a) $1.525B for safe drinking water and water quality
projects, including:
i) $10M to fund emergency and urgent actions to
ensure safe drinking water supplies.
ii) $180M for small community drinking water
system infrastructure improvements and related
actions to meet safe drinking water standards.
iii) $50M to provide the state share needed to
leverage federal funds to assist communities in
providing safe drinking water.
iv) $80M to provide the state share needed to
leverage federal funds to assist communities in
making infrastructure investments necessary to
prevent pollution of drinking water sources.
v) $60M for projects to prevent or reduce
contamination of groundwater that serves as drinking
water.
vi) $1B for projects to meet the long-term water
needs of the state, including the delivery of safe
drinking water and the protection of water quality
and the environment.
vii) $130M to implement Delta water quality
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improvement projects that protect drinking water
supplies.
viii) $15M for projects that
reduce the discharge of pollutants from agricultural
operations into surface waters of the state.
b) $90M for stormwater pollution reduction and prevention
to protect rivers, lakes, and streams.
c) $540M to prevent contamination and degradation of
coastal waters and watersheds.
d) $90M for urban greening projects that include, among
other things, improvements to water quality.
Proposed Bond Currently On November 2014 Ballot : SBx7 2
(Cogdill), Chapter 3, Statutes of 2009, provided for the
submission of a bond act, the Safe, Clean, and Reliable
Drinking Water Supply Act of 2010 , to the voters at the
November 2, 2010, statewide general election. However, the
bond act has been postponed twice and is currently expected to
be on the ballot for the November 4, 2014 election. SBx7 2
provides a total of $11.14B to finance a safe drinking water
and water supply reliability program, and includes the
following to address water quality issues:
1) Chapter 5. Drought Relief ($455M):
a) $190M for purposes, among other things, such as water
recycling and related infrastructure and groundwater
cleanup.
b) $75M for small community wastewater treatment
projects.
c) $80M for the Safe Drinking Water State Revolving Fund.
Up to $8M for projects within the City of Maywood to
provide safe drinking water.
d) $20M for water quality and public health projects on
the New River.
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2) Chapter 6. Water Supply Reliability: Eligible projects to
implement an adopted IRWMP:
a) Funds may be used for investing in new water
technology, meeting state water recycling and water
conservation goals, adapting to climate change impacts,
reducing contributions to climate change, or other
projects to improve statewide water management systems.
b) $350M for conveyance projects that, among other
things, mitigate conditions of groundwater overdraft,
saline water intrusion, water quality degradation or
subsidence, or provide safe drinking water for
disadvantaged communities and economically distressed
areas.
3) Chapter 7. Delta Sustainability ($2.25B):
a) $750M for projects in the Delta, including, among
other things, improving drinking water quality derived
from the Delta, and improving water quality facilities
and infrastructure. At least $50M of the $750M for
improvements to wastewater treatment facilities upstream
of the Delta to improve Delta water quality.
b) $1.5B for projects to protect and enhance the
sustainability of the Delta ecosystem, including, among
other things, projects to reduce greenhouse gas emissions
from exposed Delta soil, and projects that reduce and
remediate mercury contamination of the Delta and its
watersheds.
4) Chapter 8. Statewide Water System Operational Improvement
($3B): Eligible projects for funding include, among other
things, groundwater contamination prevention or remediation
that provide water storage benefits, water quality
improvements in the Delta, or in other river systems, or
that clean up and restore groundwater resources.
5) Chapter 9. Conservation and Watershed Protection ($1.785B):
$50 million to the California State University for the
purposes of funding research and education efforts on, among
other things, water use and water quality.
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6) Chapter 10. Groundwater Protection and Water Quality ($1B):
Funds are to be used for projects preventing or reducing
contamination of groundwater that serves as a source of
drinking water.
7) Chapter 11. Water Recycling Program ($1B): Funds are to be
used for water recycling and advanced treatment technology
projects.
This bill replaces the $11.14B water bond that is currently on
the November 2014 ballot with a new $8B general obligation bond
titled, "Clean, Safe, and Reliable Drinking Water Act of 2014."
Organizes the proposed bond measure as follows:
---------------------------------------------------------
|Chapter |Short Title | |
|1. | | |
|----------+------------------------------------+---------|
|Chapter |Findings | |
|2. | | |
|----------+------------------------------------+---------|
|Chapter |Definitions | |
|3. | | |
|----------+------------------------------------+---------|
|Chapter |General Provisions | |
|4. | | |
|----------+------------------------------------+---------|
|Chapter |Clean and Safe Drinking Water | $1.0B |
|5. | | |
|----------+------------------------------------+---------|
|Chapter |Protecting Rivers, Lakes, Streams, | 1.5B |
|6. |Coastal Waters, and Watersheds | |
|----------+------------------------------------+---------|
|Chapter |Climate Change and Drought | 2.0B |
|7. |Preparedness for Regional Water | |
| |Security | |
|----------+------------------------------------+---------|
|Chapter |Sacramento-San Joaquin Delta | 1.0B |
|8. |Sustainability | |
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|----------+------------------------------------+---------|
|Chapter |Water Storage for Climate Change | 2.5B |
|9. | | |
|----------+------------------------------------+---------|
|Chapter |Fiscal Provisions |________ |
|10. | | |
|----------+------------------------------------+---------|
| | | |
| | |$8B |
---------------------------------------------------------
1) Chapter 2. Findings . Makes several findings and
declarations regarding the need to protect and improve
California's water quality, supply, and infrastructure.
2) Chapter 3. Definitions . Defines several terms, including:
a) "Disadvantaged Community" as having the same meaning
set forth in Section 79505.5(a), which is "a community
with an annual median household income that is less than
80 percent of the statewide annual median household
income." (Water Security, Clean Drinking Water, Coastal
and Beach Protection Act of 2002)
b) "Economically distressed area" as a municipality with
a population of 20,000 persons or less, a rural county,
or a reasonably isolated and divisible segment of the
population is 20,000 persons or less, with an annual
median household income that is less than 85 percent of
the statewide median household income, and with one or
more of specified conditions, including: (i) financial
hardship; (ii) unemployment rate at least 2 percent
higher than the statewide average; or, (3) low population
density.
c) Defines "severely disadvantaged community" as having
the same meaning as defined in the Safe Drinking Water
State Revolving Fund (SDWSRF), in Health and Safety Code
�116760.20, which states the meaning as "a community with
a median household income of less than 60 percent of the
statewide average." (HSC �116760.20(n)).
d) Defines "stormwater" as having the same meaning in the
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Rainwater Capture Act of 2012, Water Code �10573, which
states the meaning as, "temporary surface water runoff
and drainage generated by immediately preceding storms.
This definition shall be interpreted consistent with the
definition of 'stormwater' in Section 122.26 of Title 40
of the Code of Federal Regulations [CFR]." 40 CFR
�122.26 (b)(13) states, "storm water means storm water
runoff, snow melt runoff, and surface runoff and
drainage."
3) Chapter 4: General Provisions .
a) Exempts all bond funded programs, except those funded
by Chapter 9 (Water Storage for Climate Change) from
Administrative Law review of guidelines, funding
criteria, etc.
b) Prior to the disbursement of grants and loans,
requires each state agency, which receives an
appropriation of funding to administer a competitive
grant or loan program pursuant to this bond act, to
develop and adopt project solicitation and evaluation
guidelines.
i) Requires the guidelines to include monitoring
and reporting requirements and may include a
limitation on the dollar amount of grants or loans
to be awarded.
ii) Authorizes a state agency that previously has
developed and adopted project solicitation and
evaluation guidelines that comply with specified
requirements to use those guidelines.
c) Includes auditing and reporting requirements.
d) Prohibits funding by this bond to support or pay for
the costs of project or permit specific environmental
mitigation measures except as part of the environmental
mitigation costs of projects financed by this bond act.
Provides that funding may be used for environmental
enhancements or other public benefits.
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e) Prohibits funding by this bond act to pay for Delta
conveyance facilities and requires water agencies
benefitting from those facilities to pay for the design,
construction, operation, and maintenance of those
facilities.
f) Contains provisions related to water rights,
diversion, and use of water.
g) Authorizes the Legislature to:
i) Enact legislation necessary to implement
programs funded by this bond act.
ii) Approve multi-year budget change proposals for
appropriation of funds authorized by this bond act.
h) Creates the Clean, Safe, and Reliable Drinking Water
Fund of 2014 in the State Treasury.
i) Requires each state agency that receives an
appropriation to establish metrics of success and report
the status of projects and all uses of the funding on the
state's bond accountability website.
4) Chapter 5: Clean and Safe Drinking Water . Provides $1B,
upon appropriation by the Legislature to the State Water
Resources Control Board (SWRCB) to fund projects that
improve water quality or help provide clean and safe
drinking water in the state.
a) Provides that eligible projects for funding serve the
following purposes:
i) Reduce contaminants in drinking water
supplies.
ii) Address critical and immediate needs of
disadvantaged, rural, or small communities that
suffer from contaminated drinking water supplies,
including, but not limited to, public health
emergencies.
iii) Leverage other private, federal, state, and
local drinking water quality and wastewater
treatment funds.
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iv) Reduce contaminants in discharges to, and
improve the quality of, surface water streams.
v) Improve water quality of surface water
streams, including multibenefit stormwater quality
projects.
vi) Prevent further contamination of drinking
water supplies.
vii) Provide disadvantaged communities with public
drinking water infrastructure that provides clean
and safe drinking water supplies that the community
can sustain over the long term.
viii) Ensure access to
clean, safe, and affordable drinking water for
California's communities.
b) Requires projects eligible for funding be selected by
a competitive grant or loan process with added
consideration for projects that leverage private,
federal, or local funding, except for projects concerning
public water system infrastructure improvements and
related actions to meet safe drinking water standards
and/or ensure affordable drinking water.
c) Requires SWRCB assess the capacity of a community to
pay for the operation and maintenance of the facility to
be funded.
d) Provides that a project, which receives funding
pursuant to this chapter, may be implemented by any
public water system or other public water agency.
e) Requires a project applicant, for funding to clean up
a groundwater aquifer, to demonstrate that a public
agency has authority to manage the water resources in the
aquifer in order to be eligible for funding in this
chapter.
f) Wastewater Treatment . Provides a minimum of $400M to
be deposited in the State Water Pollution Control
Revolving Fund Small Community Grant Fund for wastewater
treatment projects.
i) Prioritizes projects serving disadvantaged and
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severely disadvantaged communities and addressing
public health hazards.
ii) States that authorized projects include ones
that identify, plan, design, and implement regional
mechanisms to consolidate wastewater systems or
provide affordable treatment technologies.
g) Public Health Emergencies and Urgent Actions .
Provides $100M to be deposited in the Emergency Clean
Water Grant Fund for grants and direct expenditures to
finance public health emergencies and urgent actions, as
may be determined by the Legislature, to ensure the
availability of safe drinking water supplies.
i) Eligible projects include, but are not limited
to:
a) Providing interim water supplies,
including bottled water, when necessary to
protect public health.
b) Identify, plan, design, and
construct projects that improve or replace
existing water systems to provide safe,
reliable, accessible, and affordable drinking
water, provide other sources of safe drinking
water, such as replacement wells, and prevent
contamination.
c) Establishing connections to an
adjacent water system.
d) Design, purchase, installation, and
initial operating costs for interim water
treatment equipment and systems.
ii) Authorizes SWRCB to spend a maximum of $10M
for grants and loans to address the water quality
needs of private well owners that have no other
source of funding and serve members of a
disadvantaged community.
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h) Safe and/or Affordable Drinking Water . Provides $400M
for grants and loans for public water system improvements
and related actions to meet safe drinking water standards
and/or ensure affordable drinking water.
i) Requires eligible funding recipients to serve
disadvantaged communities and are public agencies or
incorporated mutual water companies.
ii) Authorizes funding for initial operation and
maintenance costs for systems serving disadvantaged
communities for a maximum of two years.
iii) Provides special consideration to projects
that provide shared solutions for multiple
communities, at least one of which is a
disadvantaged community that lacks safe, affordable
drinking water and is served by a small community
water system, state small water system, or private
well.
iv) Maximizes construction grants to $5M per
project, but provides an exception for projects
providing regional benefits or are shared among
multiple entities, at least one of which is a small
disadvantaged community, increasing the maximum to
$20M.
v) Authorizes a maximum of $25M for technical
assistance to eligible communities.
i) Groundwater cleanup . Provides up to $100M to fund
grants for treatment and remediation activities that
prevent or reduce the contamination of groundwater that
serves as a source of drinking water.
j) Provides the following requirements for funding under
this chapter:
i) Requires a local cost share of a minimum of
25% of the total costs of the project. Authorizes
the reduction or waiver of this requirement for
projects that directly benefit a disadvantaged
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community or an economically distressed area.
ii) Requires funding in this chapter to include
funding for technical assistance to disadvantaged
communities and requires the agency administering
this funding to operate a multidisciplinary
technical assistance program for small and
disadvantaged communities.
iii) Authorizes funding for planning activities,
including technical assistance, to benefit
disadvantaged communities, to exceed 10% of the
funds allocated, subject to the determination of the
need for additional planning funding by the state
agency administering the funding.
5) Chapter 6: Protecting Rivers, Lakes, Streams, Coastal
Waters, and Watersheds . Provides $1.5B, upon appropriation
by the Legislature, to SWRCB, for expenditures and grants
for multibenefit ecosystem and watershed protection and
restoration projects that protect and improve state
watersheds, wetlands, forests, and flood plains.
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a) Provides $750M as follows:
i) Baldwin Hills Conservancy $8.6M
ii) California Tahoe Conservancy $25.7M
iii) Coachella Valley Mtn. Conservancy $17.1M
iv) San Diego River Conservancy $8.6M
v) San Gabriel and Lower Los Angeles Rivers$34.3M
and Mountains Conservancy
vi) San Joaquin River Conservancy $17.1M
vii) Santa Monica Mountains Conservancy$55.7M
viii) Sierra Nevada
Conservancy
$55.7M
ix) State Coastal Conservancy $300M
x) Wildlife Conservation Board $184.3M
xi) California Ocean Protection Council$42.9M
b) Provides $500M to fulfill obligations of the state in
complying with the terms of any of the following:
i) Klamath Basin Restoration Agreement or Klamath
Hydroelectric Settlement Agreement;
ii) Chapters 611, 612, and 613 of the Statutes of
2003, which were enacted to facilitate the execution
and implementation of the Quantification Settlement
Agreement, including restoration of the Salton Sea;
iii) San Joaquin River Restoration Settlement, as
specified;
iv) Section 3406(d) of Title 34 of Public Law
102-575; or,
v) Tahoe Regional Planning Compact.
c) Provides $250M for multibenefit watershed and urban
rivers enhancement projects in urban watersheds, as
specified.
6) Chapter 7: Climate Change and Drought Preparedness for
Regional Water Security . Provides $2B, upon appropriation
by the Legislature, for projects to improve regional water
self-reliance and adapt to the effects on water supply
arising out of climate change.
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a) States the following purposes of this chapter:
i) Help water infrastructure systems adapt to
climate change such as sea level rise.
ii) Provide incentives for water agencies
throughout each watershed to collaborate in managing
the region's water resources and setting regional
priorities for water infrastructure.
iii) Improve regional water self-reliance.
b) Provides $1B, requiring specific project and planning
grant awards be selected jointly by DWR director and
SWRCB chair, as follows:
i) North Coast hydrologic region $45M
ii) San Francisco Bay hydrologic region $132M
iii) Central Coast hydrologic region $58M
iv) Los Angeles subregion $198M
v) Santa Ana subregion $119M
vi) San Diego subregion $96M
vii) Sacramento River hydrologic region$76M
viii) San Joaquin hydrologic
region
$64M
ix) Tulare/Kern hydrologic region $70M
x) North/South Lahontan hydrologic region$51M
xi) Colorado River Basin hydrologic region$47M
xii) Mountain Counties Overlay $44M
c) Provides $250M, to be administered by DWR, for water
conservation and water use efficiency plans, projects,
and programs, of which $100M must be made available for
projects improving on-farm water use efficiency such as
drip irrigation.
d) Provides $500M, to be administered by SWRCB, for water
recycling and advanced treatment technology projects and
requires at least a 25% local cost share that may be
suspended or reduced for disadvantaged communities and
economically distressed areas.
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i) Eligible projects include:
a) Water recycling projects such as
treatment, storage, conveyance, and
distribution facilities for potable and
nonpotable purposes.
b) Contaminant and salt removal
projects such as groundwater and seawater
desalination and associated treatment, storage,
conveyance, and distribution facilities.
c) Dedicated distribution
infrastructure to serve residential,
agricultural, commercial, and industrial
end-users to allow the use of recycled water.
d) Pilot projects for new salt and
contaminant removal technology.
e) Groundwater recharge related to
recycled water.
f) Water supply reliability improvement
for critical urban water supplies in designated
superfund areas with groundwater contamination
listed on the National Priorities List
established pursuant to the Comprehensive
Environmental Response, Compensation, and
Liability Act of 1980.
ii) Specifies criteria for consideration of
projects, including:
a) Regional water supply reliability
improvement.
b) Water quality and ecosystem benefits
related to decreased reliance on diversions
from the Delta or instream flows.
c) Public health benefits from improved
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drinking water quality.
d) Cost effectiveness.
e) Energy efficiency and greenhouse gas
emission impacts.
f) Reasonable geographic allocation to
eligible projects throughout the state.
iii) Requires eligible projects to implement a plan
or strategy by one or more regional water agencies
or integrated regional water management groups to
incorporate water recycling or advanced treatment
technology into the region's water supplies.
iv) Exempts funded projects pursuant to this
section from complying with the requirements of the
Integrated Water Management Planning Act of 2002.
e) Provides $250M for projects that develop, implement,
or improve a stormwater capture and reuse plan consistent
with the Stormwater Resources Planning Act (WC �10560)
and that capture and put to beneficial use stormwater or
dry weather runoff.
i) Authorizes stormwater capture and reuse
projects developed pursuant to an adopted integrated
regional water management plan are eligible for
funding if those projects were identified and
developed in substantive compliance with the
Stormwater Resources Planning Act (WC �10560 et
seq.).
ii) Requires eligible projects to assist in the
capture and reuse of stormwater or dry weather
runoff and includes any of the following:
a) Projects that capture, convey,
treat, or put to beneficial use stormwater or
dry weather runoff.
b) The development of stormwater
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capture and reuse plans pursuant to the
Stormwater Resource Planning Act.
c) Decision support tools, data
acquisition, and data analysis to identify and
evaluate the benefits and costs of potential
stormwater and reuse projects.
d) Projects that, in addition to
capturing and reusing stormwater or dry weather
runoff, improve water quality, provide public
benefits, such as augmentation of water supply,
flood control, open space, and recreation, and
projects designed to mimic or restore natural
watershed functions.
iii) Requires SWRCB to grant special consideration
to plans or projects that provide multiple benefits
such as water quality, water supply, flood control,
natural lands, or recreation.
iv) Requires SWRCB to require a 25% local cost
share for grant funds, but may suspend or reduce the
matching requirement for projects that capture or
reuse stormwater or dry weather runoff in
disadvantaged communities.
v) Requires SWRCB to adopt a policy establishing
criteria for projects funded by this section to
ensure that a project funded pursuant to this
section complies with water quality laws and does
not put at risk any groundwater or surface water
supplies.
f) For projects addressing groundwater quality or supply
in an aquifer, requires the applicant to demonstrate that
a public agency has authority to manage the water
resources in that aquifer. Provides that a groundwater
management plan adopted and approved shall be deemed
sufficient to satisfy the requirements of this section.
7) Chapter 8: Sacramento-San Joaquin Delta Sustainability .
Provides $1B, upon appropriation by the Legislature, for
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projects to improve the sustainability of the Delta.
a) Provides $400M to promote the sustainability and
resiliency of the Delta, as specified.
b) Provides $600M to the Sacramento-San Joaquin Delta
Conservancy, as specified.
c) Among eligible projects that protect, restore, and
enhance the Delta ecosystem, includes funding for
projects to reduce greenhouse gas emissions from exposed
Delta soils.
8) Chapter 9: Water Storage for Climate Change . Provides
$2.5B, upon appropriation by the Legislature from the fund
to California Water Commission (CWC), for public benefits
associated with projects that expand the state's water
storage capacity.
a) Provides that CWC may make the determinations,
findings, and recommendations required by this chapter
independent of the views of the director. Requires all
final actions be taken by a majority of the CWC members
at a public meeting noticed and held pursuant to the
Bagley-Keene Open Meeting Act.
b) Requires CWC to submit project status reports as
requested by the Department of Finance.
c) Requires CWC to select projects through a competitive
public process that ranks potential projects based on the
expected return for public investment as measured by the
magnitude of the public benefits provided, pursuant to
criteria established under this chapter.
d) Requires CWC, to the extent feasible, maximize the
following:
i) Leveraging of the funding made available in
this chapter with funds from federal, local, and
private sources.
ii) Statewide storage benefits or regional storage
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benefits that promote regional self-reliance.
e) Provides that the purposes of this chapter are to:
i) Construct new surface water storage projects.
ii) Restore and expand groundwater aquifer storage
capacity.
iii) Restore water storage capacity of existing
surface water storage reservoirs.
iv) Remediate or prevent contamination of
groundwater aquifers.
v) Construct and expand stormwater retention
facilities.
f) Limits projects eligible for funding of the public
benefits as follows:
i) Surface storage projects identified in the
CALFED Bay-Delta Programmatic Record of Decision,
excluding projects at Lake Shasta.
ii) Groundwater storage projects and groundwater
contamination prevention or remediation projects
that provide water storage benefits.
iii) Conjunctive use and reservoir reoperation
projects.
iv) Local and regional surface storage projects
that improve the operation of water systems in the
state, including, but not limited to, reservoirs for
storing recycled water.
v) Projects that remove sediment, improve dam
stability in seismic events, or otherwise restore
water storage capacity in existing water storage
reservoirs.
vi) Prohibits funding for a project in the Delta
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watershed unless it provides measureable
improvements to the Delta ecosystem.
g) Limits projects eligible for funding public benefits
associated with water storage projects as follows:
i) Ecosystem improvements, including changing the
timing of water diversions, improvement in flow
conditions, temperature, or other benefits that
contribute to restoration of aquatic ecosystems and
native fish and wildlife, including those ecosystems
and fish and wildlife in the Delta or the Delta
tributaries.
ii) Water quality improvements in the Delta, or in
other river systems, that provide significant public
trust fish and wildlife resources, or that clean up
and restore groundwater resources.
iii) Flood control benefits, including, but not
limited to, increases in flood reservation space in
existing reservoirs by exchange for existing or
increased water storage capacity in response to the
effects of changing hydrology and decreasing snow
pack on California's water and flood management
system.
h) In response to an emergency declared by the Governor,
funds may be used to acquire or to reimburse the costs of
acquiring emergency water supplies and flows for dilution
and salinity repulsion following a natural disaster or
act of terrorism.
i) Requires CWC, in consultation with the Department of
Fish and Wildlife (DFW), SWRCB, and DWR, to develop and
adopt, by regulation, methods for quantification and
management of public benefits as described in (g) above
by December 15, 2015. Requires the regulations to
include the priorities by DFW and the priorities and
relative environmental value of water quality as provided
by SWRCB.
j) Except for purposes of funding the completion of
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environmental documentation and permitting for a project,
prohibits funds from being allocated for a project until
CWC approves the project based on CWC's determination
that the following have occurred:
i) CWC has adopted the regulations in (i) above
and specifically quantified and made public the cost
of the public benefits associated with the project.
ii) For projects to be constructed and operated by
DWR, the department has entered into a contract with
each party that will derive benefits, other than
public benefits, as defined in (g) above, from the
project that ensures the party will pay its share of
the total costs of the project. The benefits
available to a party must be consistent with that
party's share of total project costs.
iii) DWR has entered into a contract with each
public agency identified in (i) above that
administers the public benefits, after that agency
makes a finding that the public benefits of the
project for which that agency is responsible meet
all of the requirements of this chapter, to ensure
that the public contribution of funds pursuant to
this chapter achieves the public benefits identified
for the project.
iv) CWC has held a public hearing for the purposes
of providing an opportunity for the public to review
and comment on the information required to be
prepared pursuant to (j).
v) All of the following additional conditions are
met:
a) Feasibility studies have been
completed.
b) CWC has found and determined that
the project is feasible, is consistent with all
applicable laws and regulations, and, if the
project is in the Delta watershed, will advance
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one or more of the policy objectives pursuant
to the Delta policy specified in the
Sacramento-San Joaquin Delta Reform Act of
2009.
c) All environmental documentation
associated with the project has been completed,
and all other federal, state, and local
approvals, certifications, and agreements
required to be completed have been obtained.
aa) Provides that the public benefit cost share of a
project must not exceed 50% of the total costs of a
project funded under this chapter.
bb) For funding to improve groundwater storage in an
aquifer, requires the applicant to demonstrate that a
public agency has authority to manage the water resources
in that aquifer.
cc) Requires the following conditions be met by January 1,
2018, in order for a project to be eligible for funding
under this chapter:
i) All feasibility studies are complete and draft
environmental documentation is available for public
review.
ii) CWC makes a finding that the project is
feasible, and will advance the long-term objectives
of restoring ecological health and improving water
management for beneficial uses.
iii) For projects to be constructed and operated by
DWR, the director receives commitments for not less
than 75% of the nonpublic benefit cost share of the
project.
dd) Provides that if compliance with (m) above is delayed
by litigation or failure to promulgate regulations, the
date in (m) above will be extended by CWC for a time
period equal to the time period of the delay, and funding
under this chapter that has been dedicated to a project
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will be encumbered until the time at which the litigation
is completed or the regulations have been promulgated.
ee) Prohibits funding to be used to pay any share of the
costs of remediation recovered from parties responsible
for the contamination of a groundwater storage aquifer,
but may be used to pay costs that cannot be recovered
from responsible parties. Requires parties that receive
funding for remediating groundwater storage aquifers
exercise reasonable efforts to recover the costs of
groundwater cleanup from the parties responsible for the
contamination.
ff) Upon appropriation by the Legislature, requires CWC to
make $25M available to DWR for studying the feasibility
of additional surface storage projects. This funding is
not available to study the feasibility of any storage
project identified in the CALFED Bay-Delta Program Record
of Decision, dated August 28, 2000.
9) Chapter 10: Fiscal Provisions .
a) For the purpose of authorizing the issuance and sale
of the bonds, creates the Clean, Safe, and Reliable
Drinking Water Finance Committee.
b) Requires the committee to consist of the Director of
Finance, the Treasurer, the Controller, the Director of
DWR, and the Secretary of the Natural Resources Agency
and authorizes that a member of the committee may
designate a representative to act on his/her behalf.
c) Requires the Treasurer to serve as chairperson of the
committee.
d) Authorizes a majority of the committee to act for the
committee.
e) Requires the committee to determine whether it is
necessary or desirable to issue bonds in order to carry
out the actions specified in this act, and, if so, the
amount of bonds to be issued and sold.
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f) Provides that for purposes of the State General
Obligation Bond Law, "board," as defined in Government
Code �16722, means DWR.
g) Includes provisions related to revenue and payment of
bond funds.
COMMENTS :
1) Purpose of Bill . According to the author:
In 2013, Assemblymembers from across California, in the
Assembly Water Bond Working Group, worked diligently to
develop a water bond measure for the 2014 ballot?The
Assembly effort included substantial work by the Water
Bond Working Group - 9 Assemblymembers representing the
regions of California?The Assembly Water, Parks &
Wildlife Committee continued hearings in 2014.
AB 1331 (Rendon), the Clean, Safe and Reliable Drinking
Water Act of 2014, proposes to ask voters to approve an
$8 billion water bond that provides funding over the
next several years for five categories of urgent needs
for water infrastructure:
Clean and Safe Drinking Water ($1B)
Protecting Rivers and the Coast ($1.5B)
Regional Water Infrastructure ($2B)
o Conservation, Recycling, Stormwater
Sacramento-San Joaquin Delta Sustainability
($1B)
Storage for Climate Change ($2.5B)
The Working Group reflects the diversity of California,
so AB 1331 similarly reflects statewide needs for water
infrastructure. Water infrastructure is needed in order
to provide Californians with clean, safe water, to mend
a deteriorating system, to adapt to climate change, and
to recognize the importance of watersheds to water
supply.
1) Amendments Needed .
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a) Chapter 3: Definitions .
i) An amendment is needed to clarify and define
the term, "dry weather runoff," as follows:
"Dry weather runoff" means surface waterflow produced by
nonstormwater resulting from residential,
commercial, and industrial activities involving the
use of potable and nonpotable water.
ii) "Economically Distressed Area" . This bill
defines "economically distressed area" as a
municipality with a population of 20,000 persons or
less, a rural county, or a reasonably isolated and
divisible segment of the population is 20,000
persons or less, with an annual median household
income that is less than 85% of the statewide median
household income, and with one or more of specified
conditions, including: (i) financial hardship; (ii)
unemployment rate at least 2 percent higher than the
statewide average; or, (3) low population density.
Chapter 5, �79729 and Chapter 7, �79742(e), both provide
that cost-sharing requirements may be waived or
reduced for projects that directly benefit a
disadvantaged community or an economically
distressed area.
It is unclear which locales would fall into this category
of "economically distressed area". For example, the
definition includes "a rural county". How is
"rural" defined? What is considered a "financial
hardship" and what entity[-ies] must be affected by
the hardship? How long must a financial hardship be
suffered? What is the metric for determining a "low
population density"?
An amendment is needed to delete "economically distressed
area" and its definition in Chapter 3 as well as
references to the term in other parts of the bill.
b) Chapter 4. General Provisions .
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�79711 prohibits funding by this bond to support or pay for
the costs of project or permit specific environmental
mitigation measures except as part of the environmental
mitigation costs of projects financed by this bond act.
However, this bill does not prohibit bond funds to pay
for penalties and correcting violations. It would not be
prudent to authorize limited state moneys to correct an
entity's mistakes or wrongdoings. Where would the
incentive be for entities to fix a violation of their own
creation knowing that they could get off the hook with
the state paying instead?
An amendment is needed to �79711 that prohibits bond funding
to support or pay for correcting violations and
penalties.
c) Chapter 5: Clean and Safe Drinking Water . Provides
$1B to fund projects that improve water quality or help
provide clean and safe drinking water in the state.
i) �79721(a) identifies projects available for
funding to include those that reduce contaminants in
drinking water supplies regardless of the source of
the water or the contamination, including the
assessment and prioritization of the risk to the
safety of drinking water supplies. An amendment is
needed to further specify that the grants and loans
shall be made available to meet primary or secondary
safe drinking water standards or contaminants
identified by the state or federal government for
development of a primary or secondary drinking water
standard.
ii) Wastewater Treatment .
Chapter 5 authorizes SWRCB to expend up to $25M of
the funds pursuant to this chapter for technical
assistance to eligible communities for drinking
water projects (�79727), but does not authorize any
funding for technical assistance for wastewater
treatment projects (�79725).
Because some communities need technical assistance
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for wastewater treatment projects as well, and
because they are fewer and less complicated than
drinking water projects, an amendment is needed to
authorize SWRCB to expend up to $10M of the funds
pursuant to this chapter for technical assistance to
eligible communities for wastewater treatment
projects.
iii) Emergency Clean Water Grant Fund .
a) �79726 provides funding for grants
and direct expenditures to finance public
health emergencies and urgent actions but does
not provide for loans. It would be prudent to
allow SWRCB the ability to provide loans, in
addition to grants and direct expenditures, so
that SWRCB has the ability to recoup funds in
instances where a funding recipient can afford
to repay a loan. Also, if a recipient entity
can afford to pay back a loan, then it should.
Loans would help maximize the $100M in general
obligation bonds to fund more emergency
situations and urgent actions.
An amendment is needed to authorize the funds in
�79726 to be used for loans in addition to
grants and direct expenditures.
b) �79726(a)(1) provides funding for
"interim water supplies, including, but not
limited to, bottled water, where necessary to
protect public health." Although it is
understandable that "bottled water" may be a
necessity as an interim water supply,
highlighting "bottled water" is unnecessary.
An amendment is needed to delete "including, but not
limited to, bottled water".
c) �79726 includes the following terms
that need to be amended and defined as follows:
(1) "Initial operating and
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maintenance costs" means those initial,
eligible, reimbursable costs under a
construction funding agreement that are
incurred up to, and include, initial
startup testing of the constructed project
in order to deem the project complete, not
to exceed two years.
(2) "Initial operating costs"
means those initial, eligible,
reimbursable costs under an agreement, for
interim water treatment equipment and
systems, that are incurred up to, and
include, initial startup testing of the
equipment and systems, not to exceed one
year.
(3) "Interim" means the
limited period of time needed to address
the identified urgent need for safe
drinking water, not to exceed three years.
d) �79726 provides emergency/urgent
action funding for "identifying, planning,
designing, and constructing projects that
improve or replace existing water systems?"
(Page 13, lines 15-16). "Identifying" is an
unclear term -- what process is required in
"identifying" a project when addressing a
crisis situation that warrants an immediate
response? Because the term "identifying" seems
unnecessary, an amendment is needed to delete
"identifying".
e) �79726(b) authorizes SWRCB to expend
up to $10M for grants and loans to address the
water quality needs of private well owners that
have no other source of funding and serve
members of a disadvantaged community.
The word "private" implies individual ownership.
"Domestic" refers to residential purposes and
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can apply to multiple service connections. An
amendment is needed to delete the word
"private" and replace it with the word
"domestic" in order to clarify that this is not
specifically for individual households.
f) �79726(a)(4) allows private entities
to receive funds for purposes related to clean
and safe drinking water. While it may be
worthwhile to allow a private water system to
apply for funding or help to provide access to
safe drinking water, an amendment is needed to
explicitly state that a water system cannot use
state funds to the system's financial benefit
by improving water infrastructure and also
charging the system's ratepayers for the same
improvements.
iv) Safe Drinking Water . �79727 provides that
construction grants are limited to $5M per project,
except that the implementing agency may set a limit
of not more than [$20M] for projects that provide
regional benefits or are shared among multiple
entities, at least one of which shall be a small
disadvantaged community. (�79727(a)). Similarly,
�79729 uses the term, "small and disadvantaged
communities". These terms are undefined.
Amendments are needed to delete "small" from "small
disadvantaged community" in �79727 and "small and"
from "small and" in �79729.
v) Groundwater cleanup . �79728 provides up to
$100M to fund grants only for treatment and
remediation activities that prevent or reduce the
contamination of groundwater that serves as a source
of drinking water. It would be prudent to allow
SWRCB the ability to provide loans in addition to
grants with this money and have the ability to
recoup the funds when it can in order to maximize
the funding for additional cleanup projects. Also,
if a recipient entity can afford to pay back a loan,
then it should.
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An amendment is needed to authorize the money in �79728
to be used for loans in addition to grants.
vi) Need to Establish a Capital Reserve in Chapter
5 . One of the major hurdles for eligible recipients
applying for grant funding is having a capital
reserve in place or having the ability to accumulate
enough reserve from ratepayers on an affordable
schedule.
An amendment is needed to add a section to the bond that
establishes a capital reserve fund at SWRCB by
providing $2.5M from funds allocated in �79720 to
start the fund. Individual communities that receive
grants pursuant to �79720 would be able to utilize
this reserve fund as a way to pool their reserve
resources allowing for establishment of technical,
managerial, and financial capacity and to pay for
those reserves over an affordable schedule.
d) Chapter 7. Climate Change and Drought Preparedness
for Regional Water Security .
Regional Water Security . The author is interested in
addressing regional water self-reliance in this chapter.
The term "security" may connote protection from more
criminal-like danger/harm such as terrorism, and does not
seem to accurately describe the intent as well as the
word, "reliability," which means the state of being able
to provide what is needed. An amendment is needed to
change "security" to "reliability".
e) Chapter 9. Water Storage for Climate Change .
�79770(a) states that "funding authorized by this chapter
shall not be used to pay any share of the costs of
remediation recovered from parties responsible for
contamination of a groundwater storage aquifer, but may
be used to pay costs that cannot be recovered from
responsible parties. "
Using the past tense, "recovered," implies timing and when
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the recouping of the costs happen rather than the fact
that the money can be reclaimed. If a responsible party
can pay for the contamination it has caused, then it
should.
A technical amendment is needed to replace "recovered" with
"recoverable".
2) Policy Questions .
a) Disadvantaged Communities . As raised during the
Senate Natural Resources & Water and Environmental
Quality Committees' informational hearing on water bonds
on September 24, 2013, the definition of disadvantaged
community in this bond is the same as used elsewhere in
California law, including both Propositions 50 and 84.
However, the 2010 federal census did not collect the
household economic data necessary for making this
determination about small disadvantaged communities.
Therefore, many communities will have to conduct income
surveys in order to show that they meet the definition in
law. These surveys are an added expense and can take
time to conduct prior to submitting an application for
funding.
For purposes of SDWSRF, "disadvantaged community" (HSC
�116760.20) is defined as a community that meets the
definition provided in the California Safe Drinking Water
Act, which states the meaning as "the entire service area
of a community water system, or a community therein, in
which the median household income is less than 80 percent
of the statewide average." (HSC �116275).
For purposes of SDWSRF, "severely disadvantaged community"
is defined as "a community with a median household income
of less than 60 percent of the statewide average." (HSC
�116760.20).
The committee has evaluated other potential tools for
identifying the communities most in need of these funds
and has not found a better indicator. The author may
wish to continue to explore this issue as the bill moves
forward to see if there are better ways to identify the
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communities most in need.
b) Consideration of a Project's GHG Emissions . Chapter 7
directs $2B for projects that respond to climate change
and contribute to regional water security, including
helping water infrastructure systems adapt to climate
change. However, some projects that are eligible for
funding under this chapter, such as desalination
projects, could have significant GHG emissions increases
depending on their energy source and project design. A
question arises as to whether it is appropriate to fund,
at the same level and prioritization as other water
resiliency projects such as water efficiency and
conservation measures, projects that would have
significant GHG emissions, as a means of protecting
against the impacts of climate change.
c) Consistency with other bills ? There are several other
funding vehicles currently being discussed in the
Legislature that would address funding of water supply
and water quality projects. How does a new bond proposal
fit with budget proposals and potential legislation aimed
at addressing California's immediate drought needs? For
instance, the Governor's budget contains funds to extend
the Board's Groundwater Ambient Monitoring and Assessment
Program (GAMA). However, should that funding not be
included in the final budget, that program will need
funding and should be considered as part of the bond.
This committee may want to hear this bill again to ensure
all of the water quality funding vehicles fit together.
d) Is $1B Sufficient to Make an Impact ? AB 1331 contains
$1B for drinking water and wastewater facility
improvements. As noted in the background materials from
the Senate Natural Resources & Water and Environmental
Quality Committees' hearing on September 24, 2013, the US
Environmental Protection Agency estimated that
California's 20-year drinking water infrastructure needs
exceed $40B. While a bond can only supplement a small
portion of that need, will $1B be sufficient to
accomplish the Legislature's intent for this bond?
3) Related Water Bond Measures . SB 848 (Wolk) replaces the
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current $11.14B water bond with a $6.825B water bond and
allows the Legislature to reallocate previously authorized
water bonds, and renames the measure the Safe Drinking
Water, Water Quality and Water Supply Act of 2014.
SB 927 (Cannella and Vidak) amends the water bond currently on
the November 2014 ballot, reducing the authorized amount
from $11.14B to $9.217B, and renames the measure the Safe,
Clean, and Reliable Drinking Water Supply Act of 2014.
SB 1080 (Fuller) declares the intent of the Legislature to
enact legislation to reduce the $11.14B bond.
SB 1250 (Hueso) repeals the water bond currently on the
November 2014 and replaces it with the Safe Drinking Water,
Water Quality, and Water Supply Act of 2014, a $9.45B
general obligation bond to finance a variety of water
resources related programs and projects.
SB 1370 (Galgiani) replaces the $11.14B water bond that is
currently on the November 2014 ballot with a new $6.26B
general obligation bond titled "Reliable Water Supply Bond
Act of 2014."
AB 1445 (Logue) repeals the water bond currently on the
November 2014 ballot and replaces it with the California
Water Infrastructure Act of 2014, a $5.8B general obligation
bond to finance public benefits associated with water
storage projects.
AB 2043 (Bigelow and Conway) repeals the water bond currently
on the November 2014 ballot and replaces it with the Safe,
Clean, and Reliable Drinking Water Supply Act of 2014, a
$7.935B general obligation bond to finance a variety of
water resources related programs and projects.
AB 2554 (Rendon) repeals the water bond currently on the
November 2014 ballot and replaces it with the California
Water Infrastructure Act of 2014, an $8.5B general
obligation bond to finance public benefits associated with
water storage projects.
AB 2686 (Perea) repeals the water bond currently on the
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November 2014 ballot and replaces it with the Clean, Safe,
and Reliable Water Supply Act of 2014, a $9.25 B general
obligation bond to finance a variety of water resources
related programs and projects.
4) Double-Referral . AB 1331 has been double-referred to Senate
Committees on Natural Resources & Water and Environmental
Quality. This bill was heard by the Senate Natural
Resources & Water Committee on March 25, 2014, and passed
out with a vote of 7-2.
5) To Be Referred to Senate Rules Committee . Should this be
approved by the Environmental Quality Committee, the motion
must include the action to refer the bill to the Senate
Rules Committee so that it may be re-referred to the Senate
Governance & Finance Committee.
SOURCE : Author
SUPPORT : Professional Engineers in California Government
OPPOSITION : Association of California Water Agencies