Amended in Senate June 26, 2014

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 begin delete 116326 end delete begin insert 116760.70 end insert of the Health and Safety begin delete Code, and to amend Section 75125 of, and to add Section 75129.5 to, the Public Resources end delete Code, relating to public water systems.

LEGISLATIVE COUNSEL’S DIGEST

AB 1527, as amended, Perea. Public water systems: begin delete drinking water. end delete begin insert Safe Drinking Water State Revolving Fund. end insert

begin insert

Existing law, the Safe Drinking Water State Revolving Fund Law of 1997, establishes the Safe Drinking Water State Revolving Fund to provide grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards. Existing law, operative July 1, 2014, requires the State Water Resources Control Board to implement this law pursuant to the adoption of a policy handbook. Existing law, operative on July 1, 2014, and repealed as of January 1 of the next calendar year occurring after the board provides notice to the Legislature and the Secretary of State and posts notice on its Internet Web site that the board has adopted a policy handbook, requires the board to establish a priority list of proposed projects to be considered for funding.

end insert begin insert

This bill would require the board to give priority to funding the consolidation of public water systems based upon a service review developed by a local agency formation commission.

end insert begin delete

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.

end delete begin delete

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.

end delete begin delete

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.

end delete begin delete

This bill would require the council to manage and award financial assistance to a city, county, local agency formation commission, special district, nonprofit organization, or joint powers authority or joint powers agency 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.

end delete

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 116760.70 of the end insert begin insert Health and Safety Code end insert
begin insert is amended to read: end insert

116760.70.  

(a) The board, after public notice and opportunity
for comment, shall, from time to time, establish a priority list of
proposed projects to be considered for funding under this chapter.
In doing so, the board shall determine if improvement or
rehabilitation of the public water system is necessary to provide
pure, wholesome, and potable water in adequate quantity and at
sufficient pressure for health, cleanliness, and other domestic
purposes. The board shall establish criteria for placing public water
systems on the priority list for funding that shall include criteria
for priority list categories. Priority shall be given to projects that
meet all of the following requirements:

(1) Address the most serious risk to human health.

(2) Are necessary to ensure compliance with requirements of
Chapter 4 (commencing with Section 116270) including
requirements for filtration.

(3) Assist systems most in need on a per household basis
according to affordability criteria.

(b) The board may, in establishing a new priority list, merge
those proposed projects from the existing priority list into the new
priority list.

(c) In establishing the priority list, the board shall consider the
system’s implementation of an ongoing source water protection
program or wellhead protection program.

(d) In establishing the priority list categories and the priority
for funding projects, the board shall carry out the intent of the
Legislature pursuant to subdivisions (f) to (i), inclusive, of Section
116760.10 and do all of the following:

(1) Give priority to upgrade an existing system to meet drinking
water standards.

(2) After giving priority pursuant to paragraph (1), consider
whether the applicant has sought other funds when providing
funding for a project to upgrade an existing system and to
accommodate a reasonable amount of growth.

(e) Consideration of an applicant’s eligibility for funding shall
initially be based on the priority list in effect at the time the
application is received and the project’s ability to proceed. If a
new priority list is established during the time the application is
under consideration, but before the applicant receives a letter of
commitment, the board may consider the applicant’s eligibility for
funding based on either the old or new priority list.

(f) The board may change the ranking of a specific project on
the priority lists at any time following the publication of the list if
information, that was not available at the time of the publication
of the list, is provided that justifies the change in the ranking of
the project.

(g) The board shall provide one or more public hearings on the
Intended Use Plan, the priority list, and the criteria for placing
public water systems on the priority list. The board shall adopt an
Intended Use Plan and provide notice of the Intended Use Plan,
criteria, and priority list not less than 30 days before the adoption
of the Intended Use Plan. The Intended Use Plan, criteria, and
priority list shall not be subject to the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.

begin insert

(h) The board shall give priority funding to the consolidation
of public water systems based upon a service review developed by
a local agency formation commission pursuant to Section 56430
of the Government Code.

end insert begin delete

(h)

end delete

begin insert (i) end insert  The requirements of this section do not constitute an
adjudicatory proceeding as defined in Section 11405.20 of the
Government Code and Section 11410.10 of the Government Code
is not applicable.

begin delete

(i)

end delete

begin insert (j) end insert  This section shall become operative on July 1, 2014, and is
repealed as of January 1 of the next calendar year occurring after
the board provides notice to the Legislature and the Secretary of
State and posts notice on its Internet Web site that the board has
adopted a policy handbook pursuant to Section 116760.43.

begin delete

SECTION 1.  

It is the intent of the Legislature to encourage
local agency formation commissions to focus on the consolidation,
merger, or extension of public water systems as appropriate,
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
two or more 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), for a project
to be considered for funding, require that 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 agency formation
commission, special district, nonprofit organization, or joint powers
authority or joint powers agency, 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.

end delete