Amended in Senate June 9, 2014

Amended in Assembly April 9, 2014

Amended in Assembly March 17, 2014

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, and to add Section 75129.5 to, the Public Resources Code, relating to public water systems.

LEGISLATIVE COUNSEL’S DIGEST

AB 1527, as amended, 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, administering 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 if consolidation will help the affected agencies and the state 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 projects that involve the physical restructuring 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.

The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006, an initiative measure, provides funding for safe drinking water, water quality and supply, flood control, natural resource protection, and park improvements. Existing law establishes the Strategic Growth Council and appropriates $500,000 from the funding provided by the initiative to support the council and its activities. Existing law requires the council to manage and award grants and loans to support the planning and development of sustainable communities, as specified.

This bill would require the council to manage and award financial assistance to a city, county, local begin delete area end delete begin insert agency end insert formation commission, special district, nonprofit organization, begin delete or entity, as specified, end delete begin insert or joint powers authority or joint powers agency end insert for the preparation, planning, and implementation of a public water system consolidation, merger, or extension of services project for the purposes of promoting water conservation, and would require that the financial assistance be provided from available moneys pursuant to a specified provision of the bond act described above.

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 begin delete area end delete begin insert agency end insert formation commissions to focus on the
consolidation, merger, or extension of public water systems begin insert as
appropriate end insert , 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.  

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

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

(2) Promote service delivery alternatives that improve efficiency
and affordability 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, and the state to meet begin delete all end delete
begin insert two or more end insert of the following goals:

(A) Improvement in the quality of water delivered.

(B) Improvement in the reliability of water delivery.

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

(3) Pursuant to paragraph (2) of subdivision (a), begin insert for a project
to be considered for funding, end insert require that begin delete funding for end delete 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 the service delivery alternatives are not feasible under the
circumstances. In making this determination, the department shall
do all of the following:

(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:

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

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

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

(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.

(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.

(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.

(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.

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, 75129, and 75129.5. 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,
75129, and 75129.5.

(e) (1) No later than July 1, of each year, provide a report to
the Legislature that shall include, but is not limited to, all of the
following:

(A) A list of applicants for financial assistance.

(B) Identification of which applications were approved.

(C) The amounts awarded for each approved application.

(D) The remaining balance of available funds.

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

(F) 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.

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

SEC. 4.  

Section 75129.5 is added to the Public Resources Code,
to read:

75129.5.  

To support the planning and development of
sustainable communities, the council shall manage and award
financial assistance to a city, county, local begin delete area end delete begin insert agency end insert formation
commission, special district, nonprofit organization, begin delete or entity
formed pursuant to Chapter 5 (commencing with Section 6500)
of Division 7 of Title 1 of the Government Code, or a local agency
formation commission formed pursuant to Chapter 4 (commencing
with Section 56425) of Part 2 of Division 3 of Title 5 of the
Government Code, end delete begin insert or joint powers authority or joint powers
agency, end insert if at least one of the parties to the joint powers agreement
qualifies as an eligible applicant, for the preparation, planning,
and implementation of a public water system consolidation, merger,
or extension of services project for the purposes of promoting
water conservation. The financial assistance provided pursuant to
this section shall be funded from moneys made available pursuant
to subdivision (c) of Section 75065. The council shall give priority
to funding projects proposed by a disadvantaged community.