BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2049
                                                                  Page 1

          Date of Hearing:   March 25, 2014

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  Luis Alejo, Chair
                 AB 2049 (Dahle) - As Introduced:  February 20, 2014
           
          SUBJECT  :   Drinking water treatment devices.

           SUMMARY  :   Expands the authorization, from 200 connections to  
          500 connections, for small public water systems (PWS) to use  
          point-of-use (POU) and point-of-entry (POE) treatment in lieu of  
          centralized water treatment.   

           EXISTING LAW  :  

          1)Under the federal Safe Drinking Water Act (SDWA), delegates  
            the authority of United States Environmental Protection Agency  
            (US EPA) to California to implement a drinking water program.   
            Requires California, as a primacy state (having federally  
            delegated authority), to enact laws and regulations related to  
            drinking water that conform to the federal SDWA and that are  
            no less stringent than the federal regulations.

          2)Establishes the Drinking Water Program within the California  
            Department of Public Health (DPH) to regulate public drinking  
            water systems. 

          3)Provides for the use of POU and POE water treatment devices by  
            a PWS, if the PWS meets the following criteria:

             a)   The PWS has less than 200 service connections; and
             b)   The PWS has submitted pre-applications with DPH for  
               funding to correct the violations for which the POU  
               treatment is provided.

          4)Prohibits DPH from issuing or amending a permit to allow the  
            use of POU treatment unless CDPH determines, after a public  
            hearing, that there is no substantial community opposition.

          5)Limits the issuance of a permit for the use of POU treatment  
            to the lesser of three years or until funding for centralized  
            treatment is available.

           FISCAL EFFECT  :   Not known.









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           COMMENTS  :   

           1)Need for the bill  :  According to the author, "Many rural  
            communities lack adequate drinking water infrastructure and  
            the resources necessary to provide safe drinking water.   
            Current law allows for up to 200 or fewer connections, this  
            bill increases the number of small water systems that can take  
            advantage of these cost effective interim options by  
            increasing the service connections to 500."

           2)Small water system water quality problems  :  A recent report  
            issued by the State Water Resources Control Board   
            (Communities That Rely On A Contaminated Groundwater Source  
            For Drinking Water) found that from 2002-2010, 680 (out of  
            3,037) community water systems serving nearly 21 million  
            residents relied on a contaminated groundwater source affected  
            by one or more principal contaminants.  A principal  
            contaminant is a chemical detected above a public drinking  
            water standard on two or more occasions during that cycle.

            Some community water systems, however, cannot afford treatment  
            or lack alternative water sources, and have served water that  
            exceeds a public drinking water standard.  Of the 680  
            community water systems that rely on a contaminated  
            groundwater source, 265 have served water that exceeded a  
            public drinking water standard during the most recent DPH  
            compliance cycle.

            A review of the DPH small water systems program plan  
            identifies approximately 15 systems ranging in size from 200  
            to 500 connections - the size of drinking water systems  
            affected by this bill.

           3)Alternatives to centralized treatment  .  A POU device treats  
            only potable water in a residential setting, and is usually  
            placed on, or near, the kitchen faucet.  POE treatment is a  
            larger device that is situated between the building and the  
            water supply, thereby treating all water entering the  
            building.

            The DPH safe drinking water regulations allow public water  
            systems to employ POU treatment devices as a means for  
            compliance with drinking water maximum contaminant levels  
            (MCL), provided certain criteria are met.  POUs may not be  
            used for microbial contaminants, volatile organic chemicals,  








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            or radon.  The criteria include: 

             a)   The water system has fewer than 200 service connections;
             b)   The water system has demonstrated to DPH that  
               centralized treatment for the contaminant of concern is not  
               economically feasible within three years; and  
             c)   The water system has demonstrated that centralized  
               treatment is not economically feasible.   

            According to DPH, a POU compliance program differs  
            fundamentally from a centralized treatment compliance program.  
            Under the POU program, the water system is required to install  
            a POU device that will treat only the water intended for  
            direct consumption, typically installed at a single tap such  
            as the kitchen sink.  Centralized treatment treats all of the  
            water produced by the public water system.  Since only a very  
            small percentage of the total water use is for direct  
            consumption, typically one to three percent, a POU compliance  
            program may result in significant cost savings for smaller  
            water systems. 

           4)SDWA allows POU treatment for small systems  :  The US EPA  
            defines "small community water systems" as systems serving  
            10,000 people or fewer.  Recognizing that there is a spectrum  
            of needs within small water systems, US EPA evaluated  
            treatment technologies and their costs for three categories of  
            small systems:  systems serving 25 to 500 people, systems  
            serving 501 to 3,300 people, and systems serving 3,301 to  
            10,000 people.

            The 1996 amendments to the SDWA provided that POU and POE  
            units are a viable, low-cost treatment method for some small  
            water systems.  The regulations require that POU and POE units  
            be owned, controlled, and maintained by the PWS or by a person  
            under contract with the PWS operator.  This ensures proper  
            operation, maintenance, and compliance with the maximum  
            contaminant levels or treatment technique.  The units must be  
            equipped with mechanical warnings so that customers are  
            automatically notified of operational problems.  Only units  
            that have been independently certified according to American  
            National Standards Institute (ANSI) standards may be used as  
            part of a compliance strategy.

           5)DPH emergency regulations  :  In 2010-11, DPH adopted Interim  
            POU and POE Regulations (CCR Title 22, Chapter 15, Articles  








                                                                  AB 2049
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            2.5 and 2.7) that closely follow federal regulations, with  
            additional guidelines for economic feasibility testing.  This  
            economic analysis requires that the community water system  
            provide to DPH information demonstrating the estimated cost of  
            centralized treatment in relation to the median household  
            income (MHI) of the community and average water bills.

            The regulations outline additional requirements a water system  
            must meet when using a POU compliance program.  Specifically,  
            the water system must: 

             a)   Submit a pre-application for State funding (State  
               Revolving Fund, Proposition 50, and Proposition 84) to  
               correct the current MCL violation; 
             b)   Develop and have approved a written monitoring program,  
               an operation and maintenance program, and a treatment  
               strategy; 
             c)   Hold a public hearing and have no substantial community  
               opposition; 
             d)   Show that centralized treatment is not economically  
               feasible; and
             e)   Ensure that the POU device be certified to meet the  
               relevant International/American National Standard Institute  
               (NSF/ANSI) standard for drinking water treatment units. 

           Related prior legislation  :

          AB 1540 (Committee on Health), Chapter 298, Statutes of 2009.   
          This bill updated California drinking water laws to maintain  
          California's federally designated authority to implement a  
          drinking water program that conforms to the federal SDWA.  The  
          SDWA allows a PWS to use POU devices for water treatments to  
          meet drinking water standards.  AB 1540 allows POU and POE  
          devices under California law.

          AB 2515 (V. Manuel P�rez), Chapter 601, Statutes of 2010.  This  
          bill provided an expedited process for DPH to establish criteria  
          for use of POU water treatment devices and authorizes DPH to  
          award grants for POE and POU treatment systems, provided that  
          the water system serves a severely disadvantaged community and  
          that the grant meets other existing requirements.

          SB 962 (Anderson) 2012.  Would have authorized expanded use of  
          POU and POE, from 200 connections to 500 connections, for small  
          public water systems in lieu of centralized water treatment.  SB  








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          962 was held in the Assembly Appropriations Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           None Received.

           Opposition 
           None Received.
           
          Analysis Prepared by  :    Bob Fredenburg / E.S. & T.M. / (916)  
          319-3965