SB 1292, as amended, Hueso. Safe Drinking Water State Revolving Fund.
Existing law, the California Safe Drinking Water Act, requires the Statebegin delete Department of Public Healthend deletebegin insert Water Resources Control Boardend insert to administer provisions relating to the regulation of drinking water to protect public health. Thebegin delete department’send deletebegin insert board’send insert duties include, but are not limited to, conducting research, studies, and demonstration programs relating to the provision of a dependable, safe supply of drinking water, enforcing the federal Safe Drinking Water Act, and adopting and enforcing regulations.
Existing law, the Safe Drinking Water State Revolving Fund Law of 1997, establishes the Safe Drinking Water State Revolving Fund, which is continuously appropriated to thebegin delete departmentend deletebegin insert boardend insert for grants and revolving fund loans for the design and construction of projects for public water systems that will enable suppliers to meet safe drinking water standards. Existing law sets the maximum grant to each participating public water system for its share of the costs of the construction at $3,000,000, except as provided.
This bill would increase the maximum amount of a construction grant award to $5,000,000 for a water system serving severely disadvantaged communities. By authorizing the increased expenditure of moneys in a continuously appropriated fund, this bill would make an appropriation.
Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 116761.23 of the end insertbegin insertHealth and Safety Codeend insertbegin insert,
2as added by Section 104 of Chapter 35 of the Statutes of
2014, is
3amended to read:end insert
(a) The maximum amount of a planning grant
5permitted under this chapter for each participating public water
6system’s share of the costs of the planning, engineering studies,
7environmental documentation, and design of a single project shall
8be no more than five hundred thousand dollars ($500,000).
9(b) Unless the board approves an increase pursuant to this
10subdivision, the maximum amount of a construction grant award
11authorized under this chapter to each participating public water
12system for its share of the cost of the construction of a single
13project shall be no more than three million dollars ($3,000,000)begin insert,
14or no more than five million dollars ($5,000,000)
for a water
15system serving a severely disadvantaged communityend insert. The board
16may approve an increase in the maximum amount for a construction
17grant award authorized under this chapter so that the maximum
18amount of the construction grant award does not exceed ten million
19dollars ($10,000,000) only if the board makes all of the following
20findings:
21(1) begin insert(A) end insertbegin insert end insertA public water system that serves a disadvantaged
22community has a defined project need that exceeds the maximum
23grant amount of three million dollars ($3,000,000).
24(B) A public water system that serves a severely disadvantaged
25community has a defined project need that exceeds the maximum
26grant amount
of five million dollars ($5,000,000).
27(2) The defined project has been bypassed in at least one funding
28cycle due to a lack of funds.
29(3) The defined project is eligible for funding pursuant to the
30 program regulations.
31(4) The defined project represents the highest public health risk
32among unfunded projects, as determined by the board according
33to its standard criteria.
P3 1(c) Total funding under this article for planning, engineering
2studies, environmental documentation, project design, and
3construction costs of a single project, whether in the form of a loan
4or a grant, or both, shall be determined by an assessment of
5affordability using criteria established by the board.
6(d) Subject to all other limitations of this chapter, a small
7community water system or nontransient noncommunity water
8system, owned by a public agency or private not-for-profit water
9company, serving severely disadvantaged communities shall be
10eligible to receive up to 100 percent of eligible project costs in the
11form of a grant, to the extent the system cannot afford a loan as
12determined by the board pursuant to Section 116761.20.
13(e) Subject to the availability of funds and the applicant’s ability
14to repay, an applicant may receive up to the full cost of the project
15in the form of a loan bearing interest at the rate established pursuant
16to subdivision (a) of Section 116761.65.
17(f) This section shall become operative on July 1, 2014, and is
18repealed as of January 1 of the next calendar year occurring after
19the board provides notice to the Legislature and the
Secretary of
20State and posts notice on its Internet Web site that the board has
21adopted a policy handbook pursuant to Section 116760.43.
Section 116761.23 of the Health and Safety Code
23 is amended to read:
(a) The maximum amount of a planning grant
25permitted under this chapter for each participating public water
26system’s share of the costs of the planning, engineering studies,
27environmental documentation, and design of a single project shall
28be no more than five hundred thousand dollars ($500,000).
29(b) Unless the department approves an increase pursuant to this
30subdivision, the maximum amount of a construction grant award
31authorized under this chapter to each participating public water
32system for its share of the cost of the construction of a single
33project shall be no more than three million dollars ($3,000,000),
34or no more than five million dollars ($5,000,000) for a water
35system
serving a severely disadvantaged community. The
36department may approve an increase in the maximum amount for
37a construction grant award authorized under this chapter so that
38the maximum amount of the construction grant award does not
39exceed ten million dollars ($10,000,000) only if the department
40makes all of the following findings:
P4 1(1) (A) A public water system that serves a disadvantaged
2community has a defined project need that exceeds the maximum
3grant amount of three million dollars ($3,000,000).
4(B) A public water system that serves a severely disadvantaged
5community has a defined project need that exceeds the maximum
6grant amount of five million dollars ($5,000,000).
7(2) The defined project has
been bypassed in at least one funding
8cycle due to a lack of funds.
9(3) The defined project is eligible for funding pursuant to the
10program regulations.
11(4) The defined project represents the highest public health risk
12among unfunded projects, as determined by the department
13according to its standard criteria.
14(c) Total funding under this article for planning, engineering
15studies, environmental documentation, project design, and
16construction costs of a single project, whether in the form of a loan
17or a grant, or both, shall be determined by an assessment of
18affordability using criteria established by the department.
19(d) Subject to all other limitations
of this chapter, a small
20community water system or nontransient noncommunity water
21system, owned by a public agency or private not-for-profit water
22company, serving severely disadvantaged communities shall be
23eligible to receive up to 100 percent of eligible project costs in the
24form of a grant, to the extent the system cannot afford a loan as
25determined by the department pursuant to Section 116761.20.
26(e) Subject to the availability of funds and the applicant’s ability
27to repay, an applicant may receive up to the full cost of the project
28in the form of a loan bearing interest at the rate established pursuant
29to subdivision (a) of Section 116761.65.
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