BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2737
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

              AB 2737 (Committee on ESTM) - As Amended:  April 21, 2014 

          Policy Committee:                              Environmental  
          Safety and Toxic Materials                    Vote: 6-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California Department of Public Health  
          (DPH) to establish an unspecified number of pilot projects to  
          improve drinking water.  Specifically, this bill: 

          1)Requires DPH to develop and implement drinking water pilot  
            projects in the Salinas Valley, Tulare Lake Basin, and  
            Coachella Valley, in economically disadvantaged areas in which  
            high levels of arsenic or nitrate contamination have been  
            detected in the drinking water.  Requires the pilot projects  
            to remain in effect for a minimum of three years and requires  
            DPH to report pilot project results to the Legislature.

          2)Requires the pilot projects to do the following:

             a)   Collect data to determine the drinking water needs of  
               schools and communities in economically disadvantaged areas  
               with high levels of arsenic or nitrate contamination. 
             b)   Collect data or information necessary to develop  
               regulations to implement effective solutions to  
               contamination of the drinking water, including regulations  
               governing water treatment devices.
             c)   Authorize community-based nonprofit organizations to  
               develop and implement effective interim and long-term  
               solutions designed to ensure safe drinking water in those  
               communities.
             d)   Provide technical assistance to community-based  
               nonprofit organizations to improve drinking water.
             e)   Include installation water treatment costs including  
               operations and maintenance costs for a minimum of three  
               years.








                                                                  AB 2737
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             f)   Consider the use of point-of-use or point-of-entry water  
               treatment systems based on cost and system effectiveness.

           FISCAL EFFECT  

          Unknown, potentially significant increased costs between  
          $500,000 and $1 million per pilot project for DPH to conduct  
          pilot projects in the three specified regions of the state. 

           COMMENTS  

           1)Rationale.   According to the author, community-based  
            non-profit organizations are helping to create  
            community-driven pilot filtration projects in areas, such as  
            the San Joaquin Valley, that have high levels of nitrate and  
            arsenic.  This effort helps provide access to interim sources  
            of safe drinking water while long-term solutions are being  
            developed.  

            A University of California, Davis (UCD) study released in  
            January 2012 found nitrate contamination in the four county  
            Tulare Lake Basin and the Monterey County portion of the  
            Salinas Valley to be widespread and chronic, and the result of  
            crop and animal agricultural activities.  The impact of  
            nitrates on groundwater resources will likely worsen in scope  
            and concentration for several decades.  

            According to the author, this bill requires the State  
            Department of Public Health to establish community-based safe  
            drinking water projects in the most impacted areas of the  
            State.

           2)Background.   The federal Safe Drinking Water Act (SDWA)  
            authorizes the United States Environmental Protection Agency  
            (US EPA) to set standards for drinking water quality and to  
            oversee the states, localities, and water suppliers who  
            implement those standards.  The SDWA makes funds available to  
            drinking water systems to finance infrastructure improvements.

            The California Safe Drinking Water Act requires DPH to  
            regulate drinking water, enforce state and federal drinking  
            water laws, and provide funding to correct public water system  
            deficiencies.  

           3)Transfer of Drinking Water Program.   The Governor's 2014-15  








                                                                  AB 2737
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            proposed budget would transfer the drinking water program from  
            DPH to SWRCB as of July 1, 2014.  Under the proposal,  
            regulatory and technical assistance activities would be housed  
            in a newly created Division of Drinking Water Quality within  
            SWRCB.  The program proposes to retain existing staff and  
            field offices.  


             



           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081