California Legislature—2013–14 Regular Session

Assembly Bill No. 1527

Introduced by Assembly Member Perea

January 17, 2014

An act to amend Section 116326 of the Health and Safety Code, and to amend Section 75125 of the Public Resources Code, relating to drinking water quality.

LEGISLATIVE COUNSEL’S DIGEST

AB 1527, as introduced, Perea. Public water systems: drinking water.

Existing law, known as the California Safe Drinking Water Act, requires the State Department of Public Health to administer provisions relating to the regulation of drinking water to protect public health, including, but not limited to, administer programs to fund improvements and expansion of small community water systems using specified priorities. Existing law requires the department to encourage the consolidation of small community water systems that serve disadvantaged communities in instances where consolidation will help the affected agencies and the state to meet specified goals.

Existing law allows funding of studies regarding the feasibility of consolidating 2 or more community water systems, at least one of which is a small community water system that serves a disadvantaged community and requires the department to give funding priority to construction projects that involve the physical restricting of 2 or more community water systems, as specified, when it is shown that the consolidation would further specified goals.

This bill would require the department, in administering programs to fund improvements and expansions of small community water systems, and other water systems, as specified, to promote service delivery alternatives that improve efficiency and affordability of infrastructure and service delivery, as specified.

This bill also would make technical, conforming changes regarding a reporting duty of the Strategic Growth Council.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

It is the intent of the Legislature to encourage
local area formation commissions to focus on the consolidation,
merger, or extension of public water systems, especially those
located in disadvantaged communities, by seeking financial
assistance in order to perform the necessary service reviews and
other appropriate studies.

SEC. 2.  

Section 116326 of the Health and Safety Code is
amended to read:

116326.  

begin insert (a) end insert begin insert   end insert In administering programs to fund improvements
and expansions of small community water systems begin insert and, pursuant
to subdivision (b), other water systems end insert , the department shall do
all of the following:

begin delete

(a)

end delete

begin insert ( end insert begin insert 1) end insert  Give priority to funding projects in disadvantaged
communities.

begin delete

(b) Encourage the consolidation of small community water
systems that serve disadvantaged communities in instances where
consolidation will help the affected agencies service

end delete

begin insert (2) end insert begin insert   end insert begin insert Promote service delivery alternatives that improve efficiency
and afford ability of infrastructure and service delivery, including,
but not limited to, the consolidation of governmental agencies,
consolidation of water systems, and the extension of services, in
and to disadvantaged communities, where service delivery options
will help affected agencies, communities, end insert and the state to meet all
of the following goals:

begin delete

(1)

end delete

begin insert ( end insert begin insert A) end insert  Improvement in the quality of water delivered.

begin delete

(2)

end delete

begin insert ( end insert begin insert B) end insert  Improvement in the reliability of water delivery.

begin delete

(3)

end delete

begin insert ( end insert begin insert C) end insert  Reduction in the cost of drinking water for ratepayers.

begin delete

(c) Pursuant to subdivision (b), allow funding for feasibility
studies performed prior to a construction project to include studies
of the feasibility of consolidating two or more community water
systems, at least one of which is a small community water system
that serves a disadvantaged community.

end delete begin delete

(d) In instances where it is shown that small community water
system consolidation will further the goals of subdivision (b), give
priority to funding construction projects that involve the physical
restructuring of two or more community water systems, at least
one of which is a small community water system that serves a
disadvantaged community, into a single, consolidated system.

end delete begin insert

(3) Pursuant to paragraph (2) of subdivision (a), require that
funding for feasibility studies performed prior to a construction
project include studies of service delivery alternatives that improve
efficiency and affordability of capital improvements and service
delivery, if at least one of the potentially affected agencies serves,
or would serve by way of an extraterritorial service extension, a
disadvantaged community, unless the department makes a written
determination that service delivery alternatives are not feasible
under the circumstances. In making this determination, the
department shall do all of the following:

end insert begin insert

(A) Review and consider the determinations and
recommendations made by the affected local agency formation
commission within the previous five calendar years in any of the
following:

end insert begin insert

(i) A special study conducted pursuant to Section 56378 of the
Government Code.

end insert begin insert

(ii) A sphere of influence study conducted pursuant to Section
56425 of the Government Code.

end insert begin insert

(iii) A service review conducted pursuant to Section 56430 of
the Government Code.

end insert begin insert

(B) Consult with the executive officer of the affected local agency
formation commission to determine whether any circumstances
have changed since the studies and review conducted pursuant to
subparagraph (A) were completed or if there is any additional
information that would assist the department in its determination.

end insert begin insert

(C) Review and consider the conclusions and recommendations
of other local and regional studies designed to develop and identify
regional solutions for drinking water delivery.

end insert begin insert

(4) If it is shown that an alternative service delivery option will
further the goals of paragraph (2) of subdivision (a), fund
construction projects that include the alternative service delivery
option, unless the department makes a written determination that
the alternative service delivery option is not feasible under the
circumstances.

end insert begin insert

(b) If an applicant submits an application that includes a service
delivery alternative that furthers the goals specified in paragraph
(2) of subdivision (a), the applicant need not be a small community
water system and the department may increase priority of the
application.

end insert

SEC. 3.  

Section 75125 of the Public Resources Code is
amended to read:

75125.  

The council shall do all of the following:

(a) Identify and review activities and funding programs of
member state agencies that may be coordinated to improve air and
water quality, improve natural resource protection, increase the
availability of affordable housing, improve transportation, meet
the goals of the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health
and Safety Code), encourage sustainable land use planning, and
revitalize urban and community centers in a sustainable manner.
At a minimum, the council shall review and comment on the
five-year infrastructure plan developed pursuant to Article 2
(commencing with Section 13100) of Chapter 2 of Part 3 of
Division 3 of the Government Code and the State Environmental
Goals and Policy Report developed pursuant to Section 65041 of
the Government Code.

(b) Recommend policies and investment strategies and priorities
to the Governor, the Legislature, and to appropriate state agencies
to encourage the development of sustainable communities, such
as those communities that promote equity, strengthen the economy,
protect the environment, and promote public health and safety,
consistent with subdivisions (a) and (c) of Section 75065.

(c) Provide, fund, and distribute data and information to local
governments and regional agencies that will assist in developing
and planning sustainable communities.

(d) Manage and award grants and loans to support the planning
and development of sustainable communities, pursuant to Sections
75127, 75128, and 75129. To implement this subdivision, the
council may do all of the following:

(1) Develop guidelines for awarding financial assistance,
including criteria for eligibility and additional consideration.

(2) Develop criteria for determining the amount of financial
assistance to be awarded. The council shall award a revolving loan
to an applicant for a planning project, unless the council determines
that the applicant lacks the fiscal capacity to carry out the project
without a grant. The council may establish criteria that would allow
the applicant to illustrate an ongoing commitment of financial
resources to ensure the completion of the proposed plan or project.

(3) Provide for payments of interest on loans made pursuant to
this article. The rate of interest shall not exceed the rate earned by
the Pooled Money Investment Board.

(4) Provide for the time period for repaying a loan made
pursuant to this article.

(5) Provide for the recovery of funds from an applicant that fails
to complete the project for which financial assistance was awarded.
The council shall direct the Controller to recover funds by any
available means.

(6) Provide technical assistance for application preparation.

(7) Designate a state agency or department to administer
technical and financial assistance programs for the disbursing of
grants and loans to support the planning and development of
sustainable communities, pursuant to Sections 75127, 75128, and
75129.

(e)  begin insert (1) end insert begin insert   end insert No later than July 1, begin delete 2010, and every end delete begin insert of each end insert year
begin delete thereafter end delete , provide a report to the Legislature that shall include,
but is not limited to, all of the following:

begin delete

(1)

end delete

begin insert ( end insert begin insert A) end insert  A list of applicants for financial assistance.

begin delete

(2)

end delete

begin insert ( end insert begin insert B) end insert  Identification of which applications were approved.

begin delete

(3)

end delete

begin insert ( end insert begin insert C) end insert  The amounts awarded for each approved application.

begin delete

(4)

end delete

begin insert ( end insert begin insert D) end insert  The remaining balance of available funds.

begin delete

(5)

end delete

begin insert ( end insert begin insert E) end insert  A report on the proposed or ongoing management of each
funded project.

begin delete

(6)

end delete

begin insert ( end insert begin insert F) end insert  Any additional minimum requirements and priorities for a
project or plan proposed in a grant or loan application developed
and adopted by the council pursuant to subdivision (c) of Section
75126.

begin insert

(2) A report submitted pursuant to paragraph (1) shall be
submitted in accordance with Section 9795 of the Government
Code.

end insert