SB 552: Public water systems: disadvantaged communities: consolidation or extension of service: administrative and managerial services.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2016-09-28
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines disadvantaged community to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.
This bill would authorize the state board to order consolidation where a public water system or a state small water system is serving, rather than within, a disadvantaged community, and would limit the authority of the state board to order consolidation or extension of service to provide that authority only with regard to a disadvantaged community. This bill would make a community disadvantaged for these purposes if the community is in a mobilehome park, even if it is not in an unincorporated area or served by a mutual water company.
The act requires the state board, before ordering consolidation or extension of service, to take certain actions, including consulting with specified entities, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.
This bill would also require the state board, before ordering consolidation or extension of service, to consult with public water systems in the chain of distribution of the potentially receiving water system. The bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would apply to the domestic well owner, instead of to an affected resident, within the consolidation or extended service area the written consent requirement for eligibility for water-related grant funding.
The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission for water corporations subject to the commissions jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.
This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value of a subsumed water system, without regard to whether the system is a water corporation subject to the commissions jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the cost of extension of service to the area.
The act exempts the consolidation or extension of service pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, which governs the procedures for the formation and change of organization of cities and special districts.
This bill would instead exempt an action taken by the state board pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
This bill would authorize the state board, for the purpose of providing affordable, safe drinking water to disadvantaged communities and preventing fraud, waste, and abuse, to contract with an administrator to provide administrative and managerial services to a designated water system and to order the designated public water system to accept those services if sufficient funding is available and if the state board makes a certain finding. The bill would define designated water system as a public water system that serves a disadvantaged community and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water. The bill would require the state board to provide a public water system with notice, as specified, and to conduct a public meeting, as specified, before determining that the public water system is a designated public water system. The bill would authorize the administrator of a designated public water system to expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water, to set and collect user water rates and fees, and to expend available moneys for the operation and maintenance costs of the designated public water system. The bill would require the state board to work with the administrator of the public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary. The bill would not apply these administrator provisions to a charter city, charter county, or charter city and county.
This bill would incorporate additional changes to Section 116681 of the Health and Safety Code proposed by AB 1611 and SB 839 that would become operative if this bill and one or both of those bills are enacted and this bill is chaptered last.
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines disadvantaged community to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.
This bill would authorize the state board to order consolidation where a public water system or a state small water system is serving, rather than within, a disadvantaged community, and would limit the authority of the state board to order consolidation or extension of service to provide that authority only with regard to a disadvantaged community. This bill would make a community disadvantaged for these purposes if the community is in a mobilehome park, even if it is not in an unincorporated area or served by a mutual water company.
The act requires the state board, before ordering consolidation or extension of service, to take certain actions, including consulting with specified entities, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.
This bill would also require the state board, before ordering consolidation or extension of service, to consult with public water systems in the chain of distribution of the potentially receiving water system. The bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would apply to the domestic well owner, instead of to an affected resident, within the consolidation or extended service area the written consent requirement for eligibility for water-related grant funding.
The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission for water corporations subject to the commissions jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.
This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value of a subsumed water system, without regard to whether the system is a water corporation subject to the commissions jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the cost of extension of service to the area.
The act exempts the consolidation or extension of service pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, which governs the procedures for the formation and change of organization of cities and special districts.
This bill would instead exempt an action taken by the state board pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
This bill would authorize the state board, for the purpose of providing affordable, safe drinking water to disadvantaged communities and preventing fraud, waste, and abuse, to contract with an administrator to provide administrative and managerial services to a designated water system and to order the designated public water system to accept those services if sufficient funding is available and if the state board makes a certain finding. The bill would define designated water system as a public water system that serves a disadvantaged community and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water. The bill would require the state board to provide a public water system with notice, as specified, and to conduct a public meeting, as specified, before determining that the public water system is a designated public water system. The bill would authorize the administrator of a designated public water system to expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water, to set and collect user water rates and fees, and to expend available moneys for the operation and maintenance costs of the designated public water system. The bill would require the state board to work with the administrator of the public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary. The bill would not apply these administrator provisions to a charter city, charter county, or charter city and county.
This bill would incorporate additional changes to Section 116681 of the Health and Safety Code proposed by AB 1611 and SB 839 that would become operative if this bill and one or both of those bills are enacted and this bill is chaptered last.
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines disadvantaged community to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.
This bill would authorize the state board to order consolidation where a public water system or a state small water system is serving, rather than within, a disadvantaged community, and would limit the authority of the state board to order consolidation or extension of service to provide that authority only with regard to a disadvantaged community. This bill would make a community disadvantaged for these purposes if the community is in a mobilehome park even if it is not in an unincorporated area or served by a mutual water company.
The act requires the state board, before ordering consolidation or extension of service, to take certain actions, including consulting with specified entities, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.
This bill would also require the state board, before ordering consolidation or extension of service, to consult with public water systems in the chain of distribution of the potentially receiving water system. The bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would apply to the domestic well owner, instead of to an affected resident, within the consolidation or extended service area the written consent requirement for eligibility for water-related grant funding.
The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission for water corporations subject to the commissions jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.
This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value of a subsumed water system, without regard to whether the system is a water corporation subject to the commissions jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the cost of extension of service to the area.
The act exempts the consolidation or extension of service pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, which governs the procedures for the formation and change of organization of cities and special districts.
This bill would instead exempt an action taken by the state board pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
This bill would authorize the state board, for the purpose of providing affordable, safe drinking water to disadvantaged communities and preventing fraud, waste, and abuse, to contract with an administrator to provide administrative and managerial services to a designated water system and to order the designated public water system to accept those services if sufficient funding is available and if the state board makes a certain finding. The bill would define designated water system as a public water system that serves a disadvantaged community and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water. The bill would require the state board to provide a public water system with notice, as specified, and to conduct a public meeting, as specified, before determining that the public water system is a designated public water system. The bill would authorize the administrator of a designated public water system to expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water, to set and collect user water rates and fees, and to expend available moneys for the operation and maintenance costs of the designated public water system. The bill would require the state board to work with the administrator of the public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary. The bill would not apply these administrator provisions to a charter city, charter county, or charter city and county.
This bill would incorporate additional changes to Section 116681 of the Health and Safety Code proposed by AB 1611 and SB 839 that would become operative if this bill and one or both of those bills are enacted and this bill is chaptered last.
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines disadvantaged community to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.
This bill would authorize the state board to order consolidation where a public water system or a state small water system is serving, rather than within, a disadvantaged community, and would limit the authority of the state board to order consolidation or extension of service to provide that authority only with regard to a disadvantaged community. This bill would make a community disadvantaged for these purposes if the community is in a mobilehome park even if it is not in an unincorporated area or served by a mutual water company.
The act requires the state board, before ordering consolidation or extension of service, to take certain actions, including consulting with specified entities, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.
This bill would also require the state board, before ordering consolidation or extension of service, to consult with public water systems in the chain of distribution of the potentially receiving water system. The bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would apply to the domestic well owner, instead of to an affected resident, within the consolidation or extended service area the written consent requirement for eligibility for water-related grant funding.
The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission for water corporations subject to the commissions jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.
This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value of a subsumed water system, without regard to whether the system is a water corporation subject to the commissions jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the cost of extension of service to the area.
The act exempts the consolidation or extension of service pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, which governs the procedures for the formation and change of organization of cities and special districts.
This bill would instead exempt an action taken by the state board pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
This bill would authorize the state board, for the purpose of providing affordable, safe drinking water to disadvantaged communities and preventing fraud, waste, and abuse, to contract with an administrator to provide administrative and managerial services to a designated water system and to order the designated public water system to accept those services if sufficient funding is available and if the state board makes a certain finding. The bill would define designated water system as a public water system that serves a disadvantaged community and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water. The bill would require the state board to provide a public water system with notice, as specified, and to conduct a public meeting, as specified, before determining that the public water system is a designated public water system. The bill would authorize the administrator of a designated public water system to expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water, to set and collect user water rates and fees, and to expend available moneys for the operation and maintenance costs of the designated public water system. The bill would require the state board to work with the administrator of the public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines disadvantaged community to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.
This bill would authorize the state board to order consolidation where a public water system or a state small water system is serving, rather than within, a disadvantaged community, and would limit the authority of the state board to order consolidation or extension of service to provide that authority only with regard to a disadvantaged community. This bill would make a community disadvantaged for these purposes if the community is in a mobilehome park even if it is not in an unincorporated area or served by a mutual water company.
The act requires the state board, before ordering consolidation or extension of service, to take certain actions, including consulting with specified entities, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.
This bill would also require the state board, before ordering consolidation or extension of service, to consult with public water systems in the chain of distribution of the potentially receiving water system. The bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would apply to the domestic well owner, instead of to an affected resident, within the consolidation or extended service area the written consent requirement for eligibility for water-related grant funding.
The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission for water corporations subject to the commissions jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.
This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value of a subsumed water system, without regard to whether the system is a water corporation subject to the commissions jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the cost of extension of service to the area.
The act exempts the consolidation or extension of service pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, which governs the procedures for the formation and change of organization of cities and special districts.
This bill would instead exempt an action taken by the state board pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
This bill would authorize the state board, for the purpose of providing affordable, safe drinking water to disadvantaged communities and preventing fraud, waste, and abuse, to contract with an administrator to provide administrative and managerial services to a designated water system and to order the designated public water system to accept those services. services if sufficient funding is available and if the state board makes a certain finding. The bill would define designated water system as a public water system that serves a disadvantaged community and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water. The bill would require the state board to provide a public water system with notice, as specified, and to conduct a public meeting, as specified, before determining that the public water system is a designated public water system. The bill would authorize the administrator of a designated public water system to expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water, to set and collect user water rates and fees, and to expend available moneys for the operation and maintenance costs of the designated public water system. The bill would require the state board to work with the administrator of the public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate, technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems, systems and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines disadvantaged community to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.
This bill would authorize the state board to order consolidation where a public water system or a state small water system is serving, rather than within, a disadvantaged community, and would limit the authority of the state board to order consolidation or extension of service to provide that authority only with regard to a disadvantaged community. This bill would make a community disadvantaged for these purposes if the community is in a mobilehome park even if it is not in an unincorporated area or served by a mutual water company. The bill would limit the authority of the state board to order consolidation or extension of service to provide that authority only with regard to a disadvantaged community.
The act requires the state board, before ordering consolidation or extension of service, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.
This bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would apply to the domestic well owner, instead of to an affected resident, within the consolidation or extended service area the written consent requirement for eligibility for water-related grant funding.
The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission for water corporations subject to the commissions jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.
This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value of a subsumed water system, without regard to whether the system is a water corporation subject to the commissions jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the cost of extension of service to the area.
The act exempts the consolidation or extension of service pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, which governs the procedures for the formation and change of organization of cities and special districts.
This bill would instead exempt an action taken by the state board pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
This bill would authorize the state board, for the purpose of providing affordable, safe drinking water to disadvantaged communities and preventing fraud, waste, and abuse, to contract with an administrator to provide administrative and managerial services to a designated water system and to order the designated public water system to accept those services. The bill would define designated water system as a public water system that serves a disadvantaged community and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water. The bill would require the state board to provide a public water system with notice, as specified, before determining that the public water system is a designated public water system. The bill would authorize the administrator of a designated public water system to expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water, to set and collect user water rates and fees, and to expend available moneys for the operation and maintenance costs of the designated public water system.
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems, and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines disadvantaged community to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.
This bill would allow make a community to be a disadvantaged community disadvantaged for these purposes if the community is in a mobilehome park even if it is not in an unincorporated area or served by a mutual water company. The bill would limit the authority of the state board to order consolidation or extension of service to provide that authority only with regard to a disadvantaged community.
The act requires the state board, before ordering consolidation or extension of service, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.
This bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would require any apply to the domestic well owner, instead of to an affected resident, within the consolidation or extended service area who does not provide the written consent to be ineligible for future requirement for eligibility for water-related grant funding from the state. funding.
The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Unities Utilities Commission for water corporations subject to the commissions jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.
This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value, value of a subsumed water system, without regard to whether the system is a water corporation subject to the commissions jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the cost of extension of service to the area.
The act exempts the consolidation or extension of service pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, which governs the procedures for the formation and change of organization of cities and special districts.
This bill would instead exempt an action taken by the state board pursuant to these provisions from the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.
This bill would authorize the state board, for the purpose of providing affordable, safe drinking water to disadvantaged communities and preventing fraud, waste, and abuse, to contract with an administrator to provide administrative and managerial services to a designated water system and to order the designated public water system to accept those services. The bill would define designated water system as a public water system that serves a disadvantaged community and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water. The bill would require the state board to provide a public water system with notice, as specified, before determining that the public water system is a designated public water system. The bill would authorize the administrator of a designated public water system to expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water, to set and collect user water rates and fees, and to expend available moneys for the operation and maintenance costs of the designated public water system.
Existing law, the California Safe Drinking Water Act, provides for the operation of public water systems, and imposes on the State Water Resources Control Board various responsibilities and duties. The act authorizes the state board to order consolidation with a receiving water system where a public water system, or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. Existing law, for these purposes, defines disadvantaged community to mean a disadvantaged community that is in an unincorporated area or is served by a mutual water company.
This bill would allow a community to be a disadvantaged community if the community is in a mobilehome park even if it is not in an unincorporated area or served by a mutual water company. The bill would limit the authority of the state board to order consolidation or extension of service only with regard to a disadvantaged community.
The act requires the state board, before ordering consolidation or extension of service, to hold at least one initial public meeting, as specified, and to obtain written consent from any domestic well owner for consolidation or extension of service. The act provides that any affected resident within the consolidation or extended service area who does not provide written consent is ineligible, until consent is provided, for any future water-related grant funding from the state, except as specified.
This bill would provide that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells. The bill would require any domestic well owner, instead of an affected resident, within the consolidation or extended service area who does not provide written consent to be ineligible for future water-related grant funding from the state.
The act requires the state board, upon ordering the consolidation or extension of service, to adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Unities Commission for water corporations subject to the commissions jurisdiction or the state board for all other systems. The act prohibits a consolidated water system from increasing charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customer receives a corresponding benefit.
This bill would instead authorize the Public Utilities Commission or the state board to determine the fair market value, without regard to whether the system is a water corporation subject to the commissions jurisdiction. The bill would prohibit fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system or the extension of service to the area.
Existing law, the California Safe Drinking Water Act, requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health, including, but 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, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies. Existing law requires the state board to ensure that all public water systems are operated in compliance with the act.
This bill would require, by January 1, 2017, the state board to develop a report identifying specific funding and enforcement mechanisms necessary to ensure disadvantaged communities have water systems that are in compliance with state and federal drinking water standards. The bill would require the report to identify specific legislative and administrative actions necessary to bring disadvantaged communities into compliance with safe drinking water standards.
Existing law, the California Safe Drinking Water Act, requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health, including, but 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, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies. Existing law requires the state board to ensure that all public water systems are operated in compliance with the act.
This bill would require, by January 1, 2017, the state board to develop a plan, including enforcement mechanisms, report identifying specific funding and enforcement mechanisms necessary to ensure that disadvantaged communities have water systems that are in compliance with state and federal drinking water standards. The bill would require the plan report to identify strategies to help specific legislative and administrative actions necessary to bring disadvantaged communities into compliance with safe drinking water standards.
Existing law, the California Safe Drinking Water Act, requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health, including, but 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, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies. Existing law requires the state board to ensure that all public water systems are operated in compliance with the act.
This bill would require, by January 1, 2017, the state board to develop a plan, including enforcement mechanisms, to ensure that disadvantaged communities have water systems that are in compliance with state and federal drinking water standards. The bill would require the plan to identify strategies to help bring disadvantaged communities into compliance with safe drinking water standards.
Except as provided in paragraph (2) of subdivision (j) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 1.5.Section 116681 of the Health and Safety Code is amended to read:116681.Except as provided in paragraph (2) of subdivision (j) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company or a small public water system.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Small public water system has the same meaning as provided in subdivision (b) of Section 116395.
(k)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 2.Section 116682 of the Health and Safety Code is amended to read:116682.(a)Where a public water system or a state small water system, serving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, the state board may order consolidation with a receiving water system as provided in this section and Section 116684. The consolidation may be physical or operational. The state board may also order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The state board may set timelines and performance measures to facilitate completion of consolidation.
(b)Before ordering consolidation or extension of service as provided in this section, the state board shall do all of the following:
(1)Encourage voluntary consolidation or extension of service.
(2)Consider other enforcement remedies specified in this article.
(3)Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of water service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(4)Consult with, and fully consider input from, the Public Utilities Commission when the consolidation would involve a water corporation subject to the commissions jurisdiction.
(5)Consult with, and fully consider input from, the local government with land use planning authority over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(6)Consult with, and fully consider input from, all public water systems in the chain of distribution of the potentially receiving water systems.
(7)(A)Notify the potentially receiving water system and the potentially subsumed water system, if any, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving water system and the potentially subsumed water system, if any, to negotiate consolidation or another means of providing an adequate supply of safe drinking water.
(B)During this period, the state board shall provide technical assistance and work with the potentially receiving water system and the potentially subsumed water system to develop a financing package that benefits both the receiving water system and the subsumed water system.
(C)Upon a showing of good cause, the deadline may be extended by the state board at the request of the potentially receiving water system, potentially subsumed water system, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(8)Obtain written consent from any domestic well owner for consolidation or extension of service. Any domestic well owner within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(9)(A)Hold at least one public meeting at the initiation of this process in a place as close as feasible to the affected areas. The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and all affected local government agencies and drinking water service providers. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(B)An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c)Upon expiration of the deadline set by the state board pursuant to paragraph (7) of subdivision (b), the state board shall do the following:
(1)Consult with the potentially receiving water system and the potentially subsumed water system, if any.
(2)(A)Conduct a public hearing, in a location as close as feasible to the affected communities.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(C)The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(D)The hearing shall provide an opportunity for public comment.
(d)Before ordering consolidation or extension of service, the state board shall find all of the following:
(1)The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
(2)All reasonable efforts to negotiate consolidation or extension of service were made.
(3)Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible.
(4)There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(5)Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
(6)Consolidation or extension of service is the most effective and cost-effective means to provide an adequate supply of safe drinking water.
(7)The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system.
(e)Upon ordering consolidation or extension of service, the state board shall do all of the following:
(1)As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this paragraph is available for the general purpose of providing financial assistance for the infrastructure needed for the consolidation or extension of service and does not need to be specific to each individual consolidation project. The state board shall provide appropriate financial assistance for the infrastructure needed for the consolidation or extension of service. The state boards existing financial assistance guidelines and policies shall be the basis for the financial assistance.
(2)Ensure payment of standard local agency formation commission fees caused by state board-ordered consolidation or extension of service.
(3)Adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system, as determined by the Public Utilities Commission or the state board.
(4)Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(f)(1)For the purposes of this section, the consolidated water system shall not increase charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(2)For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g)Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to an action taken by the state board pursuant to this section.
SEC. 3.Section 116686 is added to the Health and Safety Code, to read:116686.(a)(1)To provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, the state board may do both of the following, if sufficient funding is available and if the state board finds that consolidation with another system or extension of service from another system is either not appropriate or not technically and economically feasible:
(A)(i)Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
(ii)To fulfill the requirements of this section, the state board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
(iii)An administrator may provide administrative and managerial services to more than one designated public water system.
(B)Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the state board.
(2)In performing its duties pursuant to paragraph (1), the state board may use criteria from the policy handbook adopted pursuant to Section 116760.43.
(b)Before the state board determines that a public water system is a designated public water system, the state board shall do both of the following:
(1)Provide the public water system with notice and an opportunity to show either of the following:
(A)That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water.
(B)That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
(2)(A)Conduct a public meeting in a location as close as feasible to the affected community.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the meeting to affected ratepayers, renters, and property owners.
(C)Representatives of the public water system, affected ratepayers, renters, and property owners shall be provided an opportunity to present testimony at the meeting.
(D)The meeting shall provide an opportunity for public comment.
(c)The state board shall make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
(d)An administrator may do any of the following:
(1)Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water.
(2)Set and collect user water rates and fees, subject to approval by the state board. The provisions of this section are subject to all applicable constitutional requirements, including Article XIIID of the California Constitution.
(3)Expend available moneys for operation and maintenance costs of the designated public water system.
(e)The state board shall work with the administrator of a designated public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
(f)A designated public water system shall not be responsible for any costs associated with an administrator.
(g)Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.
(h)For purposes of this section, a local government, as defined in Article XIIIC of the California Constitution, that sets water rates in accordance with Article XIIID of the California Constitution shall be deemed to be providing affordable water.
(i)This section does not apply to a charter city, charter county, or charter city and county.
(j)For purposes of this section, the following terms have the following meanings:
(1)Administrator means a person whom the state board has determined is competent to perform the administrative and managerial services of a public water system, as described in subdivision (d). In determining competency, the state board may consider demonstrated experience in managing and operating a public water system.
(2)Designated public water system means a public water system that serves a disadvantaged community, as defined in Section 79505.5 of the Water Code, and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
SEC. 4.Section 1.5 of this bill incorporates amendments to Section 116681 of the Health and Safety Code proposed by this bill, Assembly Bill 1611, and Senate Bill 839. It shall only become operative if (1) this bill and Assembly Bill 1611 or Senate Bill 839, or both of those bills, are enacted and become effective on or before January 1, 2017, (2) Assembly Bill 1611, Senate Bill 839, or both, as enacted, amend Section 116681 of the Health and Safety Code, and (3) this bill is enacted last of these bills that amend Section 116681 of the Health and Safety Code, in which case Section 116681 of the Health and Safety Code, as amended by Assembly Bill 1611 or Senate Bill 839, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.
Except as provided in paragraph (2) of subdivision (j) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 1.5.Section 116681 of the Health and Safety Code is amended to read:116681.Except as provided in paragraph (2) of subdivision (j) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company or a small public water system.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Small public water system has the same meaning as provided in subdivision (b) of Section 116395.
(k)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 2.Section 116682 of the Health and Safety Code is amended to read:116682.(a)Where a public water system or a state small water system, serving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, the state board may order consolidation with a receiving water system as provided in this section and Section 116684. The consolidation may be physical or operational. The state board may also order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The state board may set timelines and performance measures to facilitate completion of consolidation.
(b)Before ordering consolidation or extension of service as provided in this section, the state board shall do all of the following:
(1)Encourage voluntary consolidation or extension of service.
(2)Consider other enforcement remedies specified in this article.
(3)Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of water service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(4)Consult with, and fully consider input from, the Public Utilities Commission when the consolidation would involve a water corporation subject to the commissions jurisdiction.
(5)Consult with, and fully consider input from, the local government with land use planning authority over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(6)Consult with, and fully consider input from, all public water systems in the chain of distribution of the potentially receiving water systems.
(7)(A)Notify the potentially receiving water system and the potentially subsumed water system, if any, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving water system and the potentially subsumed water system, if any, to negotiate consolidation or another means of providing an adequate supply of safe drinking water.
(B)During this period, the state board shall provide technical assistance and work with the potentially receiving water system and the potentially subsumed water system to develop a financing package that benefits both the receiving water system and the subsumed water system.
(C)Upon a showing of good cause, the deadline may be extended by the state board at the request of the potentially receiving water system, potentially subsumed water system, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(8)Obtain written consent from any domestic well owner for consolidation or extension of service. Any domestic well owner within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(9)(A)Hold at least one public meeting at the initiation of this process in a place as close as feasible to the affected areas. The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and all affected local government agencies and drinking water service providers. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(B)An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c)Upon expiration of the deadline set by the state board pursuant to paragraph (7) of subdivision (b), the state board shall do the following:
(1)Consult with the potentially receiving water system and the potentially subsumed water system, if any.
(2)(A)Conduct a public hearing, in a location as close as feasible to the affected communities.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(C)The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(D)The hearing shall provide an opportunity for public comment.
(d)Before ordering consolidation or extension of service, the state board shall find all of the following:
(1)The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
(2)All reasonable efforts to negotiate consolidation or extension of service were made.
(3)Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible.
(4)There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(5)Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
(6)Consolidation or extension of service is the most effective and cost-effective means to provide an adequate supply of safe drinking water.
(7)The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system.
(e)Upon ordering consolidation or extension of service, the state board shall do all of the following:
(1)As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this paragraph is available for the general purpose of providing financial assistance for the infrastructure needed for the consolidation or extension of service and does not need to be specific to each individual consolidation project. The state board shall provide appropriate financial assistance for the infrastructure needed for the consolidation or extension of service. The state boards existing financial assistance guidelines and policies shall be the basis for the financial assistance.
(2)Ensure payment of standard local agency formation commission fees caused by state board-ordered consolidation or extension of service.
(3)Adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system, as determined by the Public Utilities Commission or the state board.
(4)Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(f)(1)For the purposes of this section, the consolidated water system shall not increase charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(2)For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g)Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to an action taken by the state board pursuant to this section.
SEC. 3.Section 116686 is added to the Health and Safety Code, to read:116686.(a)(1)To provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, the state board may do both of the following, if sufficient funding is available and if the state board finds that consolidation with another system or extension of service from another system is either not appropriate or not technically and economically feasible:
(A)(i)Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
(ii)To fulfill the requirements of this section, the state board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
(iii)An administrator may provide administrative and managerial services to more than one designated public water system.
(B)Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the state board.
(2)In performing its duties pursuant to paragraph (1), the state board may use criteria from the policy handbook adopted pursuant to Section 116760.43.
(b)Before the state board determines that a public water system is a designated public water system, the state board shall do both of the following:
(1)Provide the public water system with notice and an opportunity to show either of the following:
(A)That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water.
(B)That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
(2)(A)Conduct a public meeting in a location as close as feasible to the affected community.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the meeting to affected ratepayers, renters, and property owners.
(C)Representatives of the public water system, affected ratepayers, renters, and property owners shall be provided an opportunity to present testimony at the meeting.
(D)The meeting shall provide an opportunity for public comment.
(c)The state board shall make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
(d)An administrator may do any of the following:
(1)Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water.
(2)Set and collect user water rates and fees, subject to approval by the state board. The provisions of this section are subject to all applicable constitutional requirements, including Article XIIID of the California Constitution.
(3)Expend available moneys for operation and maintenance costs of the designated public water system.
(e)The state board shall work with the administrator of a designated public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
(f)A designated public water system shall not be responsible for any costs associated with an administrator.
(g)Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.
(h)For purposes of this section, a local government, as defined in Article XIIIC of the California Constitution, that sets water rates in accordance with Article XIIID of the California Constitution shall be deemed to be providing affordable water.
(i)This section does not apply to a charter city, charter county, or charter city and county.
(j)For purposes of this section, the following terms have the following meanings:
(1)Administrator means a person whom the state board has determined is competent to perform the administrative and managerial services of a public water system, as described in subdivision (d). In determining competency, the state board may consider demonstrated experience in managing and operating a public water system.
(2)Designated public water system means a public water system that serves a disadvantaged community, as defined in Section 79505.5 of the Water Code, and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
SEC. 4.Section 1.5 of this bill incorporates amendments to Section 116681 of the Health and Safety Code proposed by this bill, Assembly Bill 1611, and Senate Bill 839. It shall only become operative if (1) this bill and Assembly Bill 1611 or Senate Bill 839, or both of those bills, are enacted and become effective on or before January 1, 2017, (2) Assembly Bill 1611, Senate Bill 839, or both, as enacted, amend Section 116681 of the Health and Safety Code, and (3) this bill is enacted last of these bills that amend Section 116681 of the Health and Safety Code, in which case Section 116681 of the Health and Safety Code, as amended by Assembly Bill 1611 or Senate Bill 839, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.
Except as provided in paragraph (2) of subdivision (h) (j) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 1.5.Section 116681 of the Health and Safety Code is amended to read:116681.The Except as provided in paragraph (2) of subdivision (j) of Section 116686, the following definitions shall apply to this section and Sections 116682 116682, 116684, and 116684: 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area area, is in a mobilehome park, or is served by a mutual water company. company or a small public water system.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Small public water system has the same meaning as provided in subdivision (b) of Section 116395.
(j)
(k)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 2.Section 116682 of the Health and Safety Code is amended to read:116682.(a)Where a public water system or a state small water system, serving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, the state board may order consolidation with a receiving water system as provided in this section and Section 116684. The consolidation may be physical or operational. The state board may also order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The state board may set timelines and performance measures to facilitate completion of consolidation.
(b)Before ordering consolidation or extension of service as provided in this section, the state board shall do all of the following:
(1)Encourage voluntary consolidation or extension of service.
(2)Consider other enforcement remedies specified in this article.
(3)Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of water service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(4)Consult with, and fully consider input from, the Public Utilities Commission when the consolidation would involve a water corporation subject to the commissions jurisdiction.
(5)Consult with, and fully consider input from, the local government with land use planning authority over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(6)Consult with, and fully consider input from, all public water systems in the chain of distribution of the potentially receiving water systems.
(7)(A)Notify the potentially receiving water system and the potentially subsumed water system, if any, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving water system and the potentially subsumed water system, if any, to negotiate consolidation or another means of providing an adequate supply of safe drinking water.
(B)During this period, the state board shall provide technical assistance and work with the potentially receiving water system and the potentially subsumed water system to develop a financing package that benefits both the receiving water system and the subsumed water system.
(C)Upon a showing of good cause, the deadline may be extended by the state board at the request of the potentially receiving water system, potentially subsumed water system, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(8)Obtain written consent from any domestic well owner for consolidation or extension of service. Any domestic well owner within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(9)(A)Hold at least one public meeting at the initiation of this process in a place as close as feasible to the affected areas. The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and all affected local government agencies and drinking water service providers. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(B)An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c)Upon expiration of the deadline set by the state board pursuant to paragraph (7) of subdivision (b), the state board shall do the following:
(1)Consult with the potentially receiving water system and the potentially subsumed water system, if any.
(2)(A)Conduct a public hearing, in a location as close as feasible to the affected communities.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(C)The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(D)The hearing shall provide an opportunity for public comment.
(d)Before ordering consolidation or extension of service, the state board shall find all of the following:
(1)The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
(2)All reasonable efforts to negotiate consolidation or extension of service were made.
(3)Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible.
(4)There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(5)Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
(6)Consolidation or extension of service is the most effective and cost-effective means to provide an adequate supply of safe drinking water.
(7)The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system.
(e)Upon ordering consolidation or extension of service, the state board shall do all of the following:
(1)As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this paragraph is available for the general purpose of providing financial assistance for the infrastructure needed for the consolidation or extension of service and does not need to be specific to each individual consolidation project. The state board shall provide appropriate financial assistance for the infrastructure needed for the consolidation or extension of service. The state boards existing financial assistance guidelines and policies shall be the basis for the financial assistance.
(2)Ensure payment of standard local agency formation commission fees caused by state board-ordered consolidation or extension of service.
(3)Adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system, as determined by the Public Utilities Commission or the state board.
(4)Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(f)(1)For the purposes of this section, the consolidated water system shall not increase charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(2)For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g)Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to an action taken by the state board pursuant to this section.
SEC. 3.Section 116686 is added to the Health and Safety Code, to read:116686.(a)(1)To provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, the state board may do both of the following, if sufficient funding is available and if the state board finds that consolidation with another system or extension of service from another system is either not appropriate or not technically and economically feasible:
(A)(i)Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
(ii)To fulfill the requirements of this section, the state board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
(iii)An administrator may provide administrative and managerial services to more than one designated public water system.
(B)Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the state board.
(2)In performing its duties pursuant to paragraph (1), the state board may use criteria from the policy handbook adopted pursuant to Section 116760.43.
(b)Before the state board determines that a public water system is a designated public water system, the state board shall do both of the following:
(1)Provide the public water system with notice and an opportunity to show either of the following:
(A)That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water.
(B)That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
(2)(A)Conduct a public meeting in a location as close as feasible to the affected community.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the meeting to affected ratepayers, renters, and property owners.
(C)Representatives of the public water system, affected ratepayers, renters, and property owners shall be provided an opportunity to present testimony at the meeting.
(D)The meeting shall provide an opportunity for public comment.
(c)The state board shall make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
(d)An administrator may do any of the following:
(1)Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water.
(2)Set and collect user water rates and fees, subject to approval by the state board. The provisions of this section are subject to all applicable constitutional requirements, including Article XIIID of the California Constitution.
(3)Expend available moneys for operation and maintenance costs of the designated public water system.
(e)The state board shall work with the administrator of a designated public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
(f)A designated public water system shall not be responsible for any costs associated with an administrator.
(g)Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.
(h)For purposes of this section, a local government, as defined in Article XIIIC of the California Constitution, that sets water rates in accordance with Article XIIID of the California Constitution shall be deemed to be providing affordable water.
(i)This section does not apply to a charter city, charter county, or charter city and county.
(h)
(j)For purposes of this section, the following terms have the following meanings:
(1)Administrator means a person whom the state board has determined is competent to perform the administrative and managerial services of a public water system, as described in subdivision (d). In determining competency, the state board may consider demonstrated experience in managing and operating a public water system.
(2)Designated public water system means a public water system that serves a disadvantaged community, as defined in Section 79505.5 of the Water Code, and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
SEC. 4.Section 1.5 of this bill incorporates amendments to Section 116681 of the Health and Safety Code proposed by this bill, Assembly Bill 1611, and Senate Bill 839. It shall only become operative if (1) this bill and Assembly Bill 1611 or Senate Bill 839, or both of those bills, are enacted and become effective on or before January 1, 2017, (2) Assembly Bill 1611, Senate Bill 839, or both, as enacted, amend Section 116681 of the Health and Safety Code, and (3) this bill is enacted last of these bills that amend Section 116681 of the Health and Safety Code, in which case Section 116681 of the Health and Safety Code, as amended by Assembly Bill 1611 or Senate Bill 839, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.
Except as provided in paragraph (2) of subdivision (h) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 2.Section 116682 of the Health and Safety Code is amended to read:116682.(a)Where a public water system or a state small water system, serving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, the state board may order consolidation with a receiving water system as provided in this section and Section 116684. The consolidation may be physical or operational. The state board may also order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The state board may set timelines and performance measures to facilitate completion of consolidation.
(b)Before ordering consolidation or extension of service as provided in this section, the state board shall do all of the following:
(1)Encourage voluntary consolidation or extension of service.
(2)Consider other enforcement remedies specified in this article.
(3)Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of water service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(4)Consult with, and fully consider input from, the Public Utilities Commission when the consolidation would involve a water corporation subject to the commissions jurisdiction.
(5)Consult with, and fully consider input from, the local government with land use planning authority over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(6)Consult with, and fully consider input from, all public water systems in the chain of distribution of the potentially receiving water systems.
(7)(A)Notify the potentially receiving water system and the potentially subsumed water system, if any, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving water system and the potentially subsumed water system, if any, to negotiate consolidation or another means of providing an adequate supply of safe drinking water.
(B)During this period, the state board shall provide technical assistance and work with the potentially receiving water system and the potentially subsumed water system to develop a financing package that benefits both the receiving water system and the subsumed water system.
(C)Upon a showing of good cause, the deadline may be extended by the state board at the request of the potentially receiving water system, potentially subsumed water system, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(8)Obtain written consent from any domestic well owner for consolidation or extension of service. Any domestic well owner within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(9)(A)Hold at least one public meeting at the initiation of this process in a place as close as feasible to the affected areas. The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and all affected local government agencies and drinking water service providers. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(B)An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c)Upon expiration of the deadline set by the state board pursuant to paragraph (7) of subdivision (b), the state board shall do the following:
(1)Consult with the potentially receiving water system and the potentially subsumed water system, if any.
(2)(A)Conduct a public hearing, in a location as close as feasible to the affected communities.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(C)The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(D)The hearing shall provide an opportunity for public comment.
(d)Before ordering consolidation or extension of service, the state board shall find all of the following:
(1)The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
(2)All reasonable efforts to negotiate consolidation or extension of service were made.
(3)Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible.
(4)There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(5)Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
(6)Consolidation or extension of service is the most effective and cost-effective means to provide an adequate supply of safe drinking water.
(7)The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system.
(e)Upon ordering consolidation or extension of service, the state board shall do all of the following:
(1)As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this paragraph is available for the general purpose of providing financial assistance for the infrastructure needed for the consolidation or extension of service and does not need to be specific to each individual consolidation project. The state board shall provide appropriate financial assistance for the infrastructure needed for the consolidation or extension of service. The state boards existing financial assistance guidelines and policies shall be the basis for the financial assistance.
(2)Ensure payment of standard local agency formation commission fees caused by state board-ordered consolidation or extension of service.
(3)Adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system system, as determined by the Public Utilities Commission or the state board.
(4)Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(f)(1)For the purposes of this section, the consolidated water system shall not increase charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(2)For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g)Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to an action taken by the state board pursuant to this section.
SEC. 3.Section 116686 is added to the Health and Safety Code, to read:116686.(a)(1)To provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, the state board may do both of the following, if sufficient funding is available and if the state board finds that consolidation with another system or extension of service from another system is either not appropriate or not technically and economically feasible:
(A)(i)Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
(ii)To fulfill the requirements of this section, the state board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
(iii)An administrator may provide administrative and managerial services to more than one designated public water system.
(B)Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the state board.
(2)In performing its duties pursuant to paragraph (1), the state board may use criteria from the policy handbook adopted pursuant to Section 116760.43.
(b)Before the state board determines that a public water system is a designated public water system, the state board shall do both of the following:
(1)Provide the public water system with notice and an opportunity to show either of the following:
(A)That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water.
(B)That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
(2)(A)Conduct a public meeting in a location as close as feasible to the affected community.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the meeting to affected ratepayers, renters, and property owners.
(C)Representatives of the public water system, affected ratepayers, renters, and property owners shall be provided an opportunity to present testimony at the meeting.
(D)The meeting shall provide an opportunity for public comment.
(c)The state board shall make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
(d)An administrator may do any of the following:
(1)Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water.
(2)Set and collect user water rates and fees, subject to approval by the state board. The provisions of this section are subject to all applicable constitutional requirements, including Article XIIID of the California Constitution.
(3)Expend available moneys for operation and maintenance costs of the designated public water system.
(e)The state board shall work with the administrator of a designated public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate, adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
(f)A designated public water system shall not be responsible for any costs associated with an administrator.
(g)Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.
(h)For purposes of this section, the following terms have the following meanings:
(1)Administrator means a person whom the state board has determined is competent to perform the administrative and managerial services of a public water system, as described in subdivision (d). In determining competency, the state board may consider demonstrated experience in managing and operating a public water system.
(2)Designated public water system means a public water system that serves a disadvantaged community, as defined in Section 79505.5 of the Water Code, and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
Except as provided in paragraph (2) of subdivision (g) (h) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 2.Section 116682 of the Health and Safety Code is amended to read:116682.(a)Where a public water system or a state small water system, serving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, the state board may order consolidation with a receiving water system as provided in this section and Section 116684. The consolidation may be physical or operational. The state board may also order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The state board may set timelines and performance measures to facilitate completion of consolidation.
(b)Before ordering consolidation or extension of service as provided in this section, the state board shall do all of the following:
(1)Encourage voluntary consolidation or extension of service.
(2)Consider other enforcement remedies specified in this article.
(3)Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of water service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(4)Consult with, and fully consider input from, the Public Utilities Commission when the consolidation would involve a water corporation subject to the commissions jurisdiction.
(5)Consult with, and fully consider input from, the local government with land use planning authority over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(6)Consult with, and fully consider input from, all public water systems in the chain of distribution of the potentially receiving water systems.
(6)
(7)(A)Notify the potentially receiving water system and the potentially subsumed water system, if any, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving water system and the potentially subsumed water system, if any, to negotiate consolidation or another means of providing an adequate supply of safe drinking water.
(A)
(B)During this period, the state board shall provide technical assistance and work with the potentially receiving water system and the potentially subsumed water system to develop a financing package that benefits both the receiving water system and the subsumed water system.
(B)
(C)Upon a showing of good cause, the deadline may be extended by the state board at the request of the potentially receiving water system, potentially subsumed water system, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(7)
(8)Obtain written consent from any domestic well owner for consolidation or extension of service. Any domestic well owner within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(8)
(9)(A)Hold at least one public meeting at the initiation of this process in a place as close as feasible to the affected areas. The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and all affected local government agencies and drinking water service providers. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(B)An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c)Upon expiration of the deadline set by the state board pursuant to paragraph (6) (7) of subdivision (b), the state board shall do the following:
(1)Consult with the potentially receiving water system and the potentially subsumed water system, if any.
(2)(A)Conduct a public hearing, in a location as close as feasible to the affected communities.
(A)
(B)The state board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(B)
(C)The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(C)
(D)The hearing shall provide an opportunity for public comment.
(d)Before ordering consolidation or extension of service, the state board shall find all of the following:
(1)The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
(2)All reasonable efforts to negotiate consolidation or extension of service were made.
(3)Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible.
(4)There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(5)Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
(6)Consolidation or extension of service is the most effective and cost-effective means to provide an adequate supply of safe drinking water.
(7)The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system.
(e)Upon ordering consolidation or extension of service, the state board shall do all of the following:
(1)As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this paragraph is available for the general purpose of providing financial assistance for the infrastructure needed for the consolidation or extension of service and does not need to be specific to each individual consolidation project. The state board shall provide appropriate financial assistance for the infrastructure needed for the consolidation or extension of service. The state boards existing financial assistance guidelines and policies shall be the basis for the financial assistance.
(2)Ensure payment of standard local agency formation commission fees caused by state board-ordered consolidation or extension of service.
(3)Adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission or the state board.
(4)Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(f)(1)For the purposes of this section, the consolidated water system shall not increase charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(2)For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g)Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to an action taken by the state board pursuant to this section.
SEC. 3.Section 116686 is added to the Health and Safety Code, to read:116686.(a)(1)To provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, the state board may do both of the following: following, if sufficient funding is available and if the state board finds that consolidation with another system or extension of service from another system is either not appropriate or not technically and economically feasible:
(A)(i)Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
(i)
(ii)To fulfill the requirements of this section, the state board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
(ii)
(iii)An administrator may provide administrative and managerial services to more than one designated public water system.
(B)Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the state board.
(2)In performing its duties pursuant to paragraph (1), the state board may use criteria from the policy handbook adopted pursuant to Section 116760.43.
(b)Before the state board determines that a public water system is a designated public water system, the state board shall provide do both of the following:
(1)Provide the public water system with notice and an opportunity to show either of the following:
(1)
(A)That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water.
(2)
(B)That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
(2)(A)Conduct a public meeting in a location as close as feasible to the affected community.
(B)The state board shall make reasonable efforts to provide a 30-day notice of the meeting to affected ratepayers, renters, and property owners.
(C)Representatives of the public water system, affected ratepayers, renters, and property owners shall be provided an opportunity to present testimony at the meeting.
(D)The meeting shall provide an opportunity for public comment.
(c)The state board shall make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
(d)An administrator may do any of the following:
(1)Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water.
(2)Set and collect user water rates and fees. fees, subject to approval by the state board. The provisions of this section are subject to all applicable constitutional requirements, including Article XIIID of the California Constitution.
(3)Expend available moneys for operation and maintenance costs of the designated public water system.
(e)The state board shall work with the administrator of a designated public water system and the communities served by that designated public water system to develop, within the shortest feasible timeframe, adequate, technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
(e)
(f)A designated public water system shall not be responsible for any costs associated with an administrator.
(f)
(g)Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.
(g)
(h)For purposes of this section, the following terms have the following meanings:
(1)Administrator means a person that whom the state board has determined is competent to perform the administrative and managerial services of a public water system, as described in subdivision (d). In determining competency, the state board may consider demonstrated experience in managing and operating a public water system.
(2)Designated public water system means a public water system that serves a disadvantaged community, as defined in Section 79505.5 of the Water Code, and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
Except as provided in paragraph (2) of subdivision (g) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 2.Section 116682 of the Health and Safety Code is amended to read:116682.(a)Where a public water system or a state small water system, within serving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, the state board may order consolidation with a receiving water system as provided in this section and Section 116684. The consolidation may be physical or operational. The state board may also order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The state board may set timelines and performance measures to facilitate completion of consolidation.
(b)Before ordering consolidation or extension of service as provided in this section, the state board shall do all of the following:
(1)Encourage voluntary consolidation or extension of service.
(2)Consider other enforcement remedies specified in this article.
(3)Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of water service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(4)Consult with, and fully consider input from, the Public Utilities Commission when the consolidation would involve a water corporation subject to the commissions jurisdiction.
(5)Consult with, and fully consider input from, the local government with land use planning authority over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(6)Notify the potentially receiving water system and the potentially subsumed water system, if any, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving water system and the potentially subsumed water system, if any, to negotiate consolidation or another means of providing an adequate supply of safe drinking water.
(A)During this period, the state board shall provide technical assistance and work with the potentially receiving water system and the potentially subsumed water system to develop a financing package that benefits both the receiving water system and the subsumed water system.
(B)Upon a showing of good cause, the deadline may be extended by the state board at the request of the potentially receiving water system, potentially subsumed water system, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(7)Obtain written consent from any domestic well owner for consolidation or extension of service. Any domestic well owner within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(8)(A)Hold at least one public meeting at the initiation of this process in a place as close as feasible to the affected areas. The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and all affected local government agencies and drinking water service providers. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(B)An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c)Upon expiration of the deadline set by the state board pursuant to paragraph (6) of subdivision (b), the state board shall do the following:
(1)Consult with the potentially receiving water system and the potentially subsumed water system, if any.
(2)Conduct a public hearing, in a location as close as feasible to the affected communities.
(A)The state board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(B)The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(C)The hearing shall provide an opportunity for public comment.
(d)Before ordering consolidation or extension of service, the state board shall find all of the following:
(1)The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
(2)All reasonable efforts to negotiate consolidation or extension of service were made.
(3)Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible.
(4)There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(5)Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
(6)Consolidation or extension of service is the most effective and cost-effective means to provide an adequate supply of safe drinking water.
(7)The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system.
(e)Upon ordering consolidation or extension of service, the state board shall do all of the following:
(1)As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this paragraph is available for the general purpose of providing financial assistance for the infrastructure needed for the consolidation or extension of service and does not need to be specific to each individual consolidation project. The state board shall provide appropriate financial assistance for the infrastructure needed for the consolidation or extension of service. The state boards existing financial assistance guidelines and policies shall be the basis for the financial assistance.
(2)Ensure payment of standard local agency formation commission fees caused by state board-ordered consolidation or extension of service.
(3)Adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission or the state board.
(4)Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(f)(1)For the purposes of this section, the consolidated water system shall not increase charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(2)For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g)Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to an action taken by the state board pursuant to this section.
SEC. 3.Section 116686 is added to the Health and Safety Code, to read:116686.(a)(1)To provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, the state board may do both of the following:
(A)Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
(i)To fulfill the requirements of this section, the state board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
(ii)An administrator may provide administrative and managerial services to more than one designated public water system.
(B)Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the state board.
(2)In performing its duties pursuant to paragraph (1), the state board may use criteria from the policy handbook adopted pursuant to Section 116760.43.
(b)Before the state board determines that a public water system is a designated public water system, the state board shall provide the public water system with notice and an opportunity to show either of the following:
(1)That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water.
(2)That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
(c)The state board shall make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
(d)An administrator may do any of the following:
(1)Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water.
(2)Set and collect user water rates and fees.
(3)Expend available moneys for operation and maintenance costs of the designated public water system.
(e)A designated public water system shall not be responsible for any costs associated with an administrator.
(f)Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.
(g)For purposes of this section, the following terms have the following meanings:
(1)Administrator means a person that the state board has determined is competent to perform the administrative and managerial services of a public water system, as described in subdivision (d). In determining competency, the state board may consider demonstrated experience in managing and operating a public water system.
(2)Designated public water system means a public water system that serves a disadvantaged community, as defined in Section 79505.5 of the Water Code, and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
The Except as provided in paragraph (2) of subdivision (g) of Section 116686, the following definitions shall apply to this section and Sections 116682 and 116684: 116682, 116684, and 116686:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, or is served by a mutual water company.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 2.Section 116682 of the Health and Safety Code is amended to read:116682.(a)Where a public water system or a state small water system system, within a disadvantaged community community, consistently fails to provide an adequate supply of safe drinking water, the State Water Resources Control Board state board may order consolidation with a receiving water system as provided in this section and Section 116684. The consolidation may be physical or operational. The State Water Resources Control Board state board may also order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The State Water Resources Control Board state board may set timelines and performance measures to facilitate completion of consolidation.
(b)Before ordering consolidation or extension of service as provided in this section, the State Water Resources Control Board state board shall do all of the following:
(1)Encourage voluntary consolidation or extension of service.
(2)Consider other enforcement remedies specified in this article.
(3)Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of water service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(4)Consult with, and fully consider input from, the Public Utilities Commission when the consolidation would involve a water corporation subject to the commissions jurisdiction.
(5)Consult with, and fully consider input from, the local government with land use planning authority over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(6)Notify the potentially receiving water system and the potentially subsumed water system, if any, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving water system and the potentially subsumed water system, if any, to negotiate consolidation or another means of providing an adequate supply of safe drinking water.
(A)During this period, the State Water Resources Control Board state board shall provide technical assistance and work with the potentially receiving water system and the potentially subsumed water system to develop a financing package that benefits both the receiving water system and the subsumed water system.
(B)Upon a showing of good cause, the deadline may be extended by the State Water Resources Control Board state board at the request of the potentially receiving water system, potentially subsumed water system, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(7)Obtain written consent from any domestic well owner for consolidation or extension of service. Any domestic well owner within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(8)(A)Hold at least one public meeting at the initiation of this process in a place as close as feasible to the affected areas. The State Water Resources Control Board state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and all affected local government agencies and drinking water service providers. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(B)An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c)Upon expiration of the deadline set by the State Water Resources Control Board state board pursuant to paragraph (6) of subdivision (b), the State Water Resources Control Board state board shall do the following:
(1)Consult with the potentially receiving water system and the potentially subsumed water system, if any.
(2)Conduct a public hearing, in a location as close as feasible to the affected communities.
(A)The State Water Resources Control Board state board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(B)The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(C)The hearing shall provide an opportunity for public comment.
(d)Before ordering consolidation or extension of service, the State Water Resources Control Board state board shall find all of the following:
(1)The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
(2)All reasonable efforts to negotiate consolidation or extension of service were made.
(3)Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible.
(4)There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(5)Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
(6)Consolidation or extension of service is the most effective and cost-effective means to provide an adequate supply of safe drinking water.
(7)The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system.
(e)Upon ordering consolidation or extension of service, the State Water Resources Control Board state board shall do all of the following:
(1)As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this paragraph is available for the general purpose of providing financial assistance for the infrastructure needed for the consolidation or extension of service and does not need to be specific to each individual consolidation project. The State Water Resources Control Board state board shall provide appropriate financial assistance for the infrastructure needed for the consolidation or extension of service. The State Water Resources Control Boards state boards existing financial assistance guidelines and policies shall be the basis for the financial assistance.
(2)Ensure payment of standard local agency formation commission fees caused by State Water Resources Control Board-ordered state board-ordered consolidation or extension of service.
(3)Adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission or the State Water Resources Control Board. state board.
(4)Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(f)(1)For the purposes of this section, the consolidated water system shall not increase charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(2)For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g)Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to the consolidation or extension of service required an action taken by the state board pursuant to this section.
SEC. 3.Section 116686 is added to the Health and Safety Code, to read:116686.(a)(1)To provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, the state board may do both of the following:
(A)Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
(i)To fulfill the requirements of this section, the state board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
(ii)An administrator may provide administrative and managerial services to more than one designated public water system.
(B)Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the state board.
(2)In performing its duties pursuant to paragraph (1), the state board may use criteria from the policy handbook adopted pursuant to Section 116760.43.
(b)Before the state board determines that a public water system is a designated public water system, the state board shall provide the public water system with notice and an opportunity to show either of the following:
(1)That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water.
(2)That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
(c)The state board shall make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
(d)An administrator may do any of the following:
(1)Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water.
(2)Set and collect user water rates and fees.
(3)Expend available moneys for operation and maintenance costs of the designated public water system.
(e)A designated public water system shall not be responsible for any costs associated with an administrator.
(f)Administrative and managerial contracts pursuant to this section shall be exempt from Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code and may be awarded on a noncompetitive bid basis as necessary to implement the purposes of this section.
(g)For purposes of this section, the following terms have the following meanings:
(1)Administrator means a person that the state board has determined is competent to perform the administrative and managerial services of a public water system, as described in subdivision (d). In determining competency, the state board may consider demonstrated experience in managing and operating a public water system.
(2)Designated public water system means a public water system that serves a disadvantaged community, as defined in Section 79505.5 of the Water Code, and that the state board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
The following definitions shall apply to this section and Sections 116682 and 116684:
(a)Adequate supply means sufficient water to meet residents health and safety needs.
(b)Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.
(c)Consistently fails means a failure to provide an adequate supply of safe drinking water.
(d)Consolidated water system means the public water system resulting from the consolidation of a public water system with another public water system, state small water system, or affected residences not served by a public water system.
(e)Consolidation means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.
(f)Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area area, mobilehome park, or is served by a mutual water company.
(g)Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(h)Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(i)Safe drinking water means water that meets all primary and secondary drinking water standards.
(j)Subsumed water system means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
SEC. 2.Section 116682 of the Health and Safety Code is amended to read:116682.(a)Where a public water system, system or a state small water system within a disadvantaged community, community consistently fails to provide an adequate supply of safe drinking water, the State Water Resources Control Board may order consolidation with a receiving water system as provided in this section and Section 116684. The consolidation may be physical or operational. The State Water Resources Control Board may also order the extension of service to an area within a disadvantaged community that does not have access to an adequate supply of safe drinking water so long as the extension of service is an interim extension of service in preparation for consolidation. The State Water Resources Control Board may set timelines and performance measures to facilitate completion of consolidation.
(b)Prior to Before ordering consolidation or extension of service as provided in this section, the State Water Resources Control Board shall do all of the following:
(1)Encourage voluntary consolidation or extension of service.
(2)Consider other enforcement remedies specified in this article.
(3)Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of water service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(4)Consult with, and fully consider input from, the Public Utilities Commission when the consolidation would involve a water corporation subject to the commissions jurisdiction.
(5)Consult with, and fully consider input from, the local government with land use planning authority over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(6)Notify the potentially receiving water system and the potentially subsumed water system, if any, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving water system and the potentially subsumed water system, if any, to negotiate consolidation or another means of providing an adequate supply of safe drinking water.
(A)During this period, the State Water Resources Control Board shall provide technical assistance and work with the potentially receiving water system and the potentially subsumed water system to develop a financing package that benefits both the receiving water system and the subsumed water system.
(B)Upon a showing of good cause, the deadline may be extended by the State Water Resources Control Board at the request of the potentially receiving water system, potentially subsumed water system, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(7)Obtain written consent from any domestic well owner for consolidation or extension of service. Any affected resident domestic well owner within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(8)(A)Hold at least one public meeting at the initiation of this process in a place as close as feasible to the affected areas. The State Water Resources Control Board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and all affected local government agencies and drinking water service providers. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(B)An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c)Upon expiration of the deadline set by the State Water Resources Control Board pursuant to paragraph (6) of subdivision (b), the State Water Resources Control Board shall do the following:
(1)Consult with the potentially receiving water system and the potentially subsumed water system, if any.
(2)Conduct a public hearing, in a location as close as feasible to the affected communities.
(A)The State Water Resources Control Board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(B)The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(C)The hearing shall provide an opportunity for public comment.
(d)Prior to Before ordering consolidation or extension of service, the State Water Resources Control Board shall find all of the following:
(1)The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
(2)All reasonable efforts to negotiate consolidation or extension of service were made.
(3)Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible.
(4)There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(5)Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
(6)Consolidation or extension of service is the most effective and cost-effective means to provide an adequate supply of safe drinking water.
(7)The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system.
(e)Upon ordering consolidation or extension of service, the State Water Resources Control Board shall do all of the following:
(1)As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this paragraph is available for the general purpose of providing financial assistance for the infrastructure needed for the consolidation or extension of service and does not need to be specific to each individual consolidation project. The State Water Resources Control Board shall provide appropriate financial assistance for the infrastructure needed for the consolidation or extension of service. The State Water Resources Control Boards existing financial assistance guidelines and policies shall be the basis for the financial assistance.
(2)Ensure payment of standard local agency formation commission fees caused by State Water Resources Control Board-ordered consolidation or extension of service.
(3)Adequately compensate the owners of a privately owned subsumed water system for the fair market value of the system as determined by the Public Utilities Commission for water corporations subject to the commissions jurisdiction or the State Water Resources Control Board for all other water systems. Board.
(4)Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(f)(1)For the purposes of this section, the consolidated water system shall not increase charges on existing customers of the receiving water system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(2)For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g)Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to the consolidation or extension of service required pursuant to this section.
SECTION 1.The Legislature finds and declares all of the following:
(a)An estimated 500 public water systems in disadvantaged communities rely on, and have to pay high rates for, sources of drinking water that do not meet state and federal safe drinking water standards.
(b)Although funding sources are available to assist disadvantaged communities with needed capital improvements, these communities often lack governance infrastructure, technical expertise, and the ability to pay for the ongoing operations and maintenance costs necessary to continue to meet the state and federal drinking water standards.
SEC. 2.Section 116325.5 is added to the Health and Safety Code, to read:116325.5.(a)On or before January 1, 2017, the State Water Resources Control Board shall develop a report identifying specific funding and enforcement mechanisms necessary to ensure disadvantaged communities have water systems that are in compliance with state and federal drinking water standards.
(b)The report shall identify specific legislative and administrative actions necessary to bring the disadvantaged communities into compliance with safe drinking water standards, including the following:
(1)Mechanisms for identification of the specific issues and solutions for each community and any specific state or local authority that is necessary to address these issues.
(2)Identification of available, and any recommended new, sources of revenue to fund ongoing operations and maintenance costs or any other costs associated with providing water at an affordable rate.
(3)Other recommendations for specific actions or authorities necessary to address drinking water needs for these communities.
The Legislature finds and declares all of the following:
(a)An estimated 500 public water systems in disadvantaged communities rely on, and have to pay high rates for, sources of drinking water that do not meet state and federal safe drinking water standards.
(b)Although funding sources are available to assist disadvantaged communities with needed capital improvements, these communities often lack governance infrastructure, technical expertise, and the ability to pay for the ongoing operations and maintenance costs necessary to continue to meet the state and federal drinking water standards.
SEC. 2.Section 116325.5 is added to the Health and Safety Code, to read:116325.5.(a)On or before January 1, 2017, the State Water Resources Control Board shall develop a plan, including report identifying specific funding and enforcement mechanisms, to ensure that mechanisms necessary to ensure disadvantaged communities have water systems that are in compliance with state and federal drinking water standards.
(b)The plan shall identify strategies to help report shall identify specific legislative and administrative actions necessary to bring the disadvantaged communities into compliance with safe drinking water standards, including the following:
(1)Improved, effective governance structure.
(2)Access to technical assistance.
(3)Implementation of capital improvements.
(1)Mechanisms for identification of the specific issues and solutions for each community and any specific state or local authority that is necessary to address these issues.
(4)Sources
(2)Identification of available, and any recommended new, sources of revenue to fund ongoing operations and maintenance costs or any other costs associated with providing water at an affordable rate.
(3)Other recommendations for specific actions or authorities necessary to address drinking water needs for these communities.
The Legislature finds and declares all of the following:
(a)An estimated 500 public water systems in disadvantaged communities rely on, and have to pay high rates for, sources of drinking water that do not meet state and federal safe drinking water standards.
(b)Although funding sources are available to assist disadvantaged communities with needed capital improvements, these communities often lack governance infrastructure, technical expertise, and the ability to pay for the ongoing operations and maintenance costs necessary to continue to meet the state and federal drinking water standards.
SEC. 2.Section 116325.5 is added to the Health and Safety Code, to read:116325.5.(a)On or before January 1, 2017, the State Water Resources Control Board shall develop a plan, including enforcement mechanisms, to ensure that disadvantaged communities have water systems that are in compliance with state and federal drinking water standards.
(b)The plan shall identify strategies to help bring the disadvantaged communities into compliance with safe drinking water standards, including the following:
(1)Improved, effective governance structure.
(2)Access to technical assistance.
(3)Implementation of capital improvements.
(4)Sources of revenue to fund ongoing operations and maintenance costs.
|
Date
|
Status
|
|---|---|
| Aug 23, 2016 | In Senate. Concurrence in Assembly amendments pending. |
| Jun 15, 2016 | From committee: Do pass as amended and re-refer to Com. on W., P., & W. (Ayes 4. Noes 2.) (June 14). |
| Jun 16, 2016 | Read second time and amended. Re-referred to Com. on W., P., & W. |
| Jun 28, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 5.) (June 28). Re-referred to Com. on APPR. |
| Aug 1, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Aug 3, 2016 | August 3 set for first hearing. Placed on APPR. suspense file. |
| Aug 12, 2016 | From committee: Do pass as amended. (Ayes 11. Noes 4.) (August 11). |
| Aug 15, 2016 | Read second time and amended. Ordered to second reading. |
| Aug 16, 2016 | Read second time. Ordered to third reading. |
| Aug 19, 2016 | Ordered to third reading. |
| Aug 19, 2016 | Read third time and amended. |
| Aug 19, 2016 | Read third time and amended. (Ayes 50. Noes 21. Page 5990.) |
| May 27, 2016 | From committee: Be re-referred to Coms. on E.S. & T.M. and W., P., & W. (Ayes 10. Noes 0.) (May 27). Re-referred to Com. on E.S. & T.M. |
| Aug 23, 2016 | Read third time. Passed. Ordered to the Senate. |
| Aug 23, 2016 | Read third time. Passed. (Ayes 50. Noes 28. Page 6130.) Ordered to the Senate. |
| Aug 24, 2016 | From committee: Be re-referred to Com. on E.Q. pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0.) Re-referred to Com. on E.Q. |
| Aug 24, 2016 | Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(d). |
| Aug 25, 2016 | Set for hearing August 26. |
| Aug 26, 2016 | From committee: That the Assembly amendments be concurred in. (Ayes 5. Noes 2. Page 5456.) |
| Aug 26, 2016 | From committee: That the Assembly amendments be concurred in. (Ayes 5. Noes 2.) |
| Aug 29, 2016 | Assembly amendments concurred in. (Ayes 25. Noes 12.) Ordered to engrossing and enrolling. |
| Aug 29, 2016 | Assembly amendments concurred in. (Ayes 25. Noes 13. Page 5494.) Ordered to engrossing and enrolling. |
| Sep 8, 2016 | Enrolled and presented to the Governor at 5 p.m. |
| May 23, 2015 | Set for hearing May 28. |
| Feb 27, 2015 | From printer. May be acted upon on or after March 29. |
| Mar 12, 2015 | Referred to Com. on E.Q. |
| Mar 17, 2015 | Set for hearing April 15. |
| Apr 7, 2015 | April 15 set for first hearing canceled at the request of author. |
| Apr 15, 2015 | Set for hearing April 29. |
| Apr 16, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on E.Q. |
| Apr 30, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 858.) (April 29). Re-referred to Com. on APPR. |
| Apr 30, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (April 29). Re-referred to Com. on APPR. |
| May 5, 2015 | Set for hearing May 11. |
| May 11, 2015 | May 11 hearing: Placed on APPR. suspense file. |
| Feb 26, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 28, 2015 | From committee: Do pass. (Ayes 5. Noes 0. Page 1156.) (May 28). |
| May 28, 2015 | From committee: Do pass. (Ayes 5. Noes 0.) (May 28). |
| May 28, 2015 | Read second time. Ordered to third reading. |
| Jun 1, 2015 | Read third time. Passed. (Ayes 31. Noes 5. Page 1205.) Ordered to the Assembly. |
| Jun 1, 2015 | Read third time. Passed. (Ayes 31. Noes 5.) Ordered to the Assembly. |
| Jun 2, 2015 | In Assembly. Read first time. Held at Desk. |
| Jun 18, 2015 | Referred to Com. on E.S. & T.M. |
| Jul 7, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on E.S. & T.M. |
| Jul 9, 2015 | Re-referred to Com. on RLS. pursuant to Assembly Rule 96. |
| May 17, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 29, 2016 | Unfinished Business SB552 Wolk Concurrence | Senate Floor |
Passed |
|
| Aug 26, 2016 | That the Assembly amendments be concurred in | Senate Standing Committee on Environmental Quality |
Passed |
|
| Aug 23, 2016 | SB 552 Wolk Senate Third Reading By ARAMBULA | Assembly Floor |
Passed |
|
| Aug 19, 2016 | SB 552 Wolk Senate Third Reading Amend By ARAMBULA Set #1 | Assembly Floor |
Passed |
|
| Aug 11, 2016 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 28, 2016 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Water, Parks, and Wildlife |
Passed |
|
| Jun 14, 2016 | Do pass as amended and be re-referred to the Committee on [Water, Parks, and Wildlife] | Assembly Standing Committee on Environmental Safety and Toxic Materials |
Passed |
|
| May 27, 2016 | Be re-referred to the Committee on [Environmental Safety and Toxic Materials] | Assembly Standing Committee on Rules |
Passed |
|
| Jun 1, 2015 | Senate 3rd Reading SB552 Wolk | Senate Floor |
Passed |
|
| May 28, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 11, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 29, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Environmental Quality |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association Of California Water Agencies | ** Against | Aug 29, 2016 |
| California Catholic Conference of Bishops | ** Support | Jun 28, 2016 |
| California Coastal Protection Network | ** Support | Jun 1, 2015 |
| California Food Policy Advocates | ** Support | Jun 1, 2015 |
| California League Of Conservation Voters | ** Support | Aug 29, 2016 |
| California Municipal Utilities Association | ** Against | Aug 29, 2016 |
| Clean Water Action | ** Support | Aug 29, 2016 |
| Community Water Center | ** Support | Aug 29, 2016 |
| E.S. & T.M. | ** Against | Jun 14, 2016 |
| Environmental Working Group | ** Support | Jun 1, 2015 |
| Friends of the River | ** Support | Jun 1, 2015 |
| Leadership Counsel for Justice and Accountability | ** Support | Aug 29, 2016 |
| League of Women Voters | ** Support | Jun 1, 2015 |
| National Association of Social Workers - California Chapter | ** Support | Jun 1, 2015 |
| RCAC | ** Support | Jun 28, 2016 |
| Regional Water Authority | ** Against | Aug 29, 2016 |
| Rural Community Assistance Corporation | ** Support | Aug 29, 2016 |
| Self-Help Enterprises | ** Support | Aug 29, 2016 |
| Sierra Club California | ** Support | Aug 29, 2016 |
| State Water Resources Control Board | ** Support | Aug 29, 2016 |
| The Metropolitan Water District Of Southern California | * Against Unless Amend | Jun 28, 2016 |
| u ARGUMENTS IN u ARGUMENTS IN | ** Against | Aug 29, 2016 |
| Valley CAN | ** Support | Jun 1, 2015 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 552
:
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 6-0, 4/29/15
AYES: Wieckowski, Gaines, Hill, Jackson, Leno, Pavley
NO VOTE RECORDED: Bates
SENATE APPROPRIATIONS COMMITTEE: 5-0, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NO VOTE RECORDED: Bates, Nielsen
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-2, 8/26/16 (Pursuant to Senate Rule 29.10)
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Gaines, Bates
SENATE FLOOR: 31-5, 6/1/15
AYES: Allen, Beall, Berryhill, Block, Cannella, De León, Gaines, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Nguyen, Pan, Pavley, Roth, Vidak, Wieckowski, Wolk
NOES: Anderson, Fuller, Moorlach, Morrell, Stone
NO VOTE RECORDED: Bates, Huff, Nielsen, Runner
ASSEMBLY FLOOR: 50-28, 8/23/16 - See last page for vote
SOURCE: State Water Resources Control Board
DIGEST: This bill authorizes the State Water Resources Control Board (SWRCB) to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water.
Assembly Amendments authorize SWRCB to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water.
ANALYSIS:
Existing law, under the California Safe Drinking Water Act,
- Requires SWRCB to administer provisions relating to the regulation of drinking water to protect public health, including, but 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, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies.
- Requires SWRCB to ensure that all public water systems are operated in compliance with the act.
- Authorizes SWRCB, where a public water system or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, to order consolidation with a receiving water system. Provides that the consolidation may be physical or operational.
This bill authorizes SWRCB to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water. Specifically, this bill:
- Adds definitions and makes clarifying and conforming changes to water system consolidation statute.
- Defines “designated public water system” as a public water system that serves a disadvantaged community and that the SWRCB finds consistently fails to provide an adequate and affordable supply of safe drinking water.
- Prohibits, in the case of an ordered consolidation, fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system with a receiving system or the extension of service to the area.
- Authorizes SWRCB, in specified circumstances, to do both of the following:
- Contract with an administrator to provide administrative and managerial services to a designated public water system to assist with the provision of an adequate and affordable supply of safe drinking water; and,
- Order the designated public water system to accept administrative and managerial services, from an administrator selected by SWRCB.
- Requires SWRCB to meet specified criteria before it determines that a public water system is a designated public water system.
- Requires SWRCB to make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
- Authorizes an administrator to expend available moneys for capital infrastructure improvements; set and collect user water rates and fees; and, expend available moneys for operation and maintenance costs of the designated public water system.
- Requires SWRCB to work with the administrator and the communities served by the designated public water system to develop adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
- Provides that a designated public water system is not responsible for any costs associated with an administrator.
- Provides that administrative and managerial contracts for consolidations are exempt from the state acquisition of goods and services statute and may be awarded on a noncompetitive bid basis.
- Provides that a local government that sets water rates in accordance with Proposition 218, as approved by the voters on November 5, 1996, shall be deemed to be providing affordable water and would not be subject to administrative or managerial services by an administrator contracted by SWRCB due to lack of affordability.
- Exempts a charter city, charter county, or charter city and county from provisions that authorize SWRCB to contract with an administrator to provide administrative and managerial services to a designated public water system.
- Incorporates language to avoid chaptering conflicts with the Resources Budget trailer bills, AB 1611 (Assembly Budget Committee) and SB 839 (Senate Budget and Fiscal Review Committee), both of the current legislative session.
Background
- Transfer of the Drinking Water Program
SB 861 (Committee on Budget and Fiscal Review, Chapter 35, Statutes of 2014) transferred the Drinking Water Program from the California Department of Public Health (DPH) to SWRCB, giving SWRCB primary enforcement authority (primacy) to enforce federal and state safe drinking water acts, and is responsible for the regulatory oversight of about 8,000 public water systems throughout the state.
The 2014-15 Budget Act and SB 861 transferred $200.3 million ($5 million General Fund) and 291.2 positions for the administration of the Drinking Water Program from DPH to SWRCB.
The goal of Transferring the Drinking Water Program was to achieve the following objectives:
- Establish a single water quality agency to enhance accountability for water quality issues.
- Better provide comprehensive technical and financial assistance to help communities, especially small disadvantaged communities, address an array of challenges related to drinking water, wastewater, water recycling, pollution, desalination, and stormwater.
- Improve the efficiency and effectiveness of drinking water, groundwater, water recycling, and water quality programs.
- Safe Drinking Water Plan for California
In 1993, the California Department of Health Services (now DPH) submitted to the Legislature the report entitled, "Drinking Water into the 21st Century: Safe Drinking Water Plan for California" (1993 Plan). In 1996, the Legislature enacted SB 1307 (Calderon, Chapter 755, Statutes of 1996), requiring a periodic update of the original Plan.
DPH assembled a team of experts that conducted extensive reviews and analyses, resulting in a draft plan that included an overview of drinking water regulation, reviews and plans for drinking water quality/monitoring and threats, treatment technologies, funding aspects and financial assistance, and a focus on the challenges faced by small drinking water systems.
Following the July 1, 2014 transition of the Drinking Water Program to the SWRCB, the draft plan's recommendations and implementation plan has been enhanced based on the incorporation of the program into SWRCB.
- The Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1)
Proposition 1, approved by the voters in November, 2014, authorizes $7.12 billion in general obligation bonds for state water supply infrastructure projects, such as public water system improvements, surface and groundwater storage, drinking water protection, water recycling and advanced water treatment technology, water supply management and conveyance, wastewater treatment, drought relief, emergency water supplies, and ecosystem and watershed protection and restoration.
Proposition 1 authorizes $520 million for expenditures, grants and loans for projects that improve water quality or help provide clean, safe, and reliable drinking water to all Californians and provides that the projects eligible for funding pursuant to this section shall help improve water quality for a beneficial use. The purposes of this section are to:
- Reduce contaminants in drinking water supplies regardless of the source of the water or the contamination.
- Assess and prioritize the risk of contamination to drinking water supplies.
- Address the critical and immediate needs of disadvantaged, rural, or small communities that suffer from contaminated drinking water supplies, including, but not limited to, projects that address a public health emergency.
- Leverage other private, federal, state, and local drinking water quality and wastewater treatment funds.
- Reduce contaminants in discharges to, and improve the quality of, waters of the state.
- Prevent further contamination of drinking water supplies.
- Provide disadvantaged communities with public drinking water infrastructure that provides clean, safe, and reliable drinking water supplies that the community can sustain over the long term.
- Ensure access to clean, safe, reliable, and affordable drinking water for California’s communities.
- Meet primary and secondary safe drinking water standards or remove contaminants identified by the state or federal government for development of a primary or secondary drinking water standard.
Comments
- Purpose of Bill. According to the author, “This bill would authorize the State Water Resources Control Board to require public water systems that serve disadvantaged communities and that consistently fail to provide an adequate and affordable source of safe drinking water, to obtain administrative and managerial services from a third party administrator, selected by the State Water Board. The bill also provides clean-up language to SB 88 (Budget and Fiscal Review Committee), Chapter 27, Statutes of 2015, trailer bill that permits the state Water Board to order water system consolidation or extension of services.”
According to SWRCB, for common sources of drinking water contamination, such as arsenic and nitrates, expensive systems must be installed and operated to treat the water to meet drinking water standards. In many cases, technological advances have not yet been sufficient to make such treatment systems affordable, especially to small, disadvantaged communities. In addition, many small disadvantaged communities do not have the technical, managerial, or financial capability to operate what are sometimes complex drinking water systems. Disadvantaged communities also often lack the rate base to pay for operation and maintenance costs, meaning that they are effectively prohibited from accessing capital improvement funding that requires demonstration of ability to fund such costs.
SWRCB maintains that consolidating public water systems and extending service from existing public water systems to communities and areas which currently rely on under-performing or failing small water systems, as well as private wells, reduces costs and improves reliability. Consolidation does this by extending costs to a larger pool of ratepayers.
- New tools for addressing drinking water system failures: In addition to the consolidation authority provided by SB 88, this bill would give SWRCB another tool to address the systemic issues affecting public water systems serving small, disadvantaged communities. This bill would authorize SWRCB to identify public water systems that are consistently unable to provide an adequate and affordable supply of safe drinking water and, once funding is available, to then contract with a competent administrator to provide managerial and technical expertise to that system. SWRCB notes that the use of a contracted entity, in cases where public water systems have proven inadequate, would provide technical and managerial capacity, economies of scale, and other efficiencies such as web-based operating systems. The use of a contracted entity would also provide transparency and avoid fraud, waste, and abuse in the provision of these services.
Related/Prior Legislation
SB 1263 (Wieckowski) enhances the process for evaluation of the creation of a new drinking water system.
SB 88 (Committee on Budget, Chapter 27, Statutes of 2015) authorized the SWRCB to order water system consolidation or extension of services.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee, this bill has unknown, potentially significant costs, depending upon the number of public water systems placed under the control of, or provided assistance by, an administrator, as well as the extent and duration of the assistance. This bill does not identify a funding source.
State Water Resources Control Board (source)
California Catholic Conference, Inc.
California League of Conservation Voters
Clean Water Action
Community Water Center
Leadership Counsel for Justice and Accountability
Rural Community Assistance Corporation
Sierra Club California
Self-Help Enterprises
OPPOSITION: (Verified 8/24/16)
Association of California Water Agencies
California Municipal Utilities Association
Regional Water Authority
ARGUMENTS IN SUPPORT:
- Supporters argue that this bill will grant the SWRCB the authority to order a water system which is consistently failing to provide safe drinking water to accept a contract administrator. “This is an important tool for the SWRCB to have. There are many systems which may not be candidates for physical consolidation but could begin providing safe drinking water to their customers with new management. While this could be an important and effective tool there should be more clarity provided to available funding, a public process, an affordability analysis, and a long-term sustainability plan when an administrator is used.”
ARGUMENTS IN OPPOSITION:
The opposition states that it is concerned “with the lack of specificity related to funding for the administrative and managerial consolidations that are outlined in the bill including whether the administrator would be subject to Proposition 218. SB 552 not only creates uncertainties associated with the initial consolidation but does not include sustainable provisions for the continued operations and maintenance costs of the designated system, potentially shifting costs to ratepayers in the receiving water systems.”
ASSEMBLY FLOOR: 50-28, 8/23/16
AYES: Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Roger Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Rendon
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang, Chávez, Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones, Kim, Lackey, Linder, Maienschein, Mathis, Mayes, Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk
NO VOTE RECORDED: Frazier, Gray
8/26/16 14:26:51
**** END ****
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: SB 552
Author: | Wolk | ||
Version: | 8/19/2016 | Hearing Date: | 8/26/2016 |
Urgency: | No | Fiscal: | Yes |
Consultant: | Rachel Machi Wagoner | ||
SUBJECT: Public water systems: disadvantaged communities: consolidation or extension of service: administrative and managerial services.
ANALYSIS:
Existing law, under the California Safe Drinking Water Act,
- Requires the State Water Resources Control Board (SWRCB) to administer provisions relating to the regulation of drinking water to protect public health, including, but 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, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies.
- Requires SWRCB to ensure that all public water systems are operated in compliance with the act.
- Authorizes SWRCB, where a public water system or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, to order consolidation with a receiving water system. Provides that the consolidation may be physical or operational.
This bill: Authorizes SWRCB to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water. Specifically, this bill:
- Adds definitions and makes clarifying and conforming changes to water system consolidation statute.
- Defines “designated public water system” as a public water system that serves a disadvantaged community and that the SWRCB finds consistently fails to provide an adequate and affordable supply of safe drinking water.
- Prohibits, in the case of an ordered consolidation, fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system with a receiving system or the extension of service to the area.
- Authorizes SWRCB, in specified circumstances, to do both of the following:
- Contract with an administrator to provide administrative and managerial services to a designated public water system to assist with the provision of an adequate and affordable supply of safe drinking water; and,
- Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by SWRCB.
- Requires SWRCB to meet specified criteria before it determines that a public water system is a designated public water system.
- Requires SWRCB to make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
- Authorizes an administrator to expend available moneys for capital infrastructure improvements; set and collect user water rates and fees; and, expend available moneys for operation and maintenance costs of the designated public water system.
- Requires SWRCB to work with the administrator and the communities served by the designated public water system to develop adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
- Provides that a designated public water system is not responsible for any costs associated with an administrator.
- Provides that administrative and managerial contracts for consolidations are exempt from the state acquisition of goods and services statute and may be awarded on a noncompetitive bid basis.
- Provides that a local government that sets water rates in accordance with Proposition 218, as approved by the voters on November 5, 1996, shall be deemed to be providing affordable water and would not be subject to administrative or managerial services by an administrator contracted by SWRCB due to lack of affordability.
- Exempts a charter city, charter county, or charter city and county from provisions that authorize SWRCB to contract with an administrator to provide administrative and managerial services to a designated public water system.
- Incorporates language to avoid chaptering conflicts with the Resources Budget trailer bills, AB 1611 and SB 839, both of the current legislative session.
Background
- Transfer of the Drinking Water Program.
SB 861 (Committee on Budget and Fiscal Review), Chapter 35, Statutes of 2014, transferred the Drinking Water Program from the California Department of Public Health (DPH) to SWRCB, giving SWRCB primary enforcement authority (primacy) to enforce federal and state safe drinking water acts, and is responsible for the regulatory oversight of about 8,000 public water systems throughout the state.
The 2014-15 Budget Act and SB 861 transferred $200.3 million ($5 million General Fund) and 291.2 positions for the administration of the Drinking Water Program from DPH to SWRCB.
The goal of Transferring the Drinking Water Program was to achieve the following objectives:
- Establish a single water quality agency to enhance accountability for water quality issues.
- Better provide comprehensive technical and financial assistance to help communities, especially small disadvantaged communities, address an array of challenges related to drinking water, wastewater, water recycling, pollution, desalination, and stormwater.
- Improve the efficiency and effectiveness of drinking water, groundwater, water recycling, and water quality programs.
- Safe Drinking Water Plan for California.
In 1993, the California Department of Health Services (DHS) (now DPH) submitted to the Legislature the report entitled, "Drinking Water into the 21st Century: Safe Drinking Water Plan for California" (1993 Plan). In 1996, the Legislature enacted SB 1307 (Calderon), Chapter 755, Statutes of 1996, requiring a periodic update of the original Plan.
DPH assembled a team of experts that conducted extensive reviews and analyses, resulting in a draft plan that included an overview of drinking water regulation, reviews and plans for drinking water quality/monitoring and threats, treatment technologies, funding aspects and financial assistance, and a focus on the challenges faced by small drinking water systems.
Following the July 1, 2014 transition of the Drinking Water Program to the SWRCB, the draft plan's recommendations and implementation plan has been enhanced based on the synergies and resources resulting from incorporation of the program into SWRCB.
The Safe Drinking Water Plan for California includes SWRCB’s assessment of the overall quality of the state's drinking water, the identification of specific water quality problems, an analysis of the known and potential health risks that may be associated with drinking water contamination in California, and specific recommendations to improve drinking water quality.
- The Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1).
Proposition 1, approved by the voters in November, 2014, authorizes $7.12 billion in general obligation bonds for state water supply infrastructure projects, such as public water system improvements, surface and groundwater storage, drinking water protection, water recycling and advanced water treatment technology, water supply management and conveyance, wastewater treatment, drought relief, emergency water supplies, and ecosystem and watershed protection and restoration.
- Clean, Safe and Reliable Drinking Water. Proposition 1 authorizes $520 million for expenditures, grants and loans for projects that improve water quality or help provide clean, safe, and reliable drinking water to all Californians and provides that the projects eligible for funding pursuant to this section shall help improve water quality for a beneficial use. The purposes of this section are to:
- Reduce contaminants in drinking water supplies regardless of the source of the water or the contamination.
- Assess and prioritize the risk of contamination to drinking water supplies.
- Address the critical and immediate needs of disadvantaged, rural, or small communities that suffer from contaminated drinking water supplies, including, but not limited to, projects that address a public health emergency.
- Leverage other private, federal, state, and local drinking water quality and wastewater treatment funds.
- Reduce contaminants in discharges to, and improve the quality of, waters of the state.
- Prevent further contamination of drinking water supplies.
- Provide disadvantaged communities with public drinking water infrastructure that provides clean, safe, and reliable drinking water supplies that the community can sustain over the long term.
- Ensure access to clean, safe, reliable, and affordable drinking water for California’s communities.
- Meet primary and secondary safe drinking water standards or remove contaminants identified by the state or federal government for development of a primary or secondary drinking water standard.
The funds are to be allocated as follows:
- $260 million shall be available for deposit into the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for wastewater treatment projects. Priority shall be given to projects that serve disadvantaged communities and severely disadvantaged communities, and to projects that address public health hazards. Projects may include, but not be limited to, projects that identify, plan, design, and implement regional mechanisms to consolidate wastewater systems or provide affordable treatment technologies.
- $260 million shall be available for grants and loans for public water system infrastructure improvements and related actions to meet safe drinking water standards, ensure affordable drinking water, or both. Priority shall be given to projects that provide treatment for contamination or access to an alternate drinking water source or sources for small community water systems or state small water systems in disadvantaged communities whose drinking water source is impaired by chemical and nitrate contaminants and other health hazards identified by SWRCB.
- Specifies that at least 10% of the funds must be allocated for severely disadvantaged communities and up to 15% of the funds must be allocated for technical assistance to disadvantaged communities.
Comments
- Purpose of Bill. According to the author, “This bill would authorize the State Water Resources Control Board to require public water systems that serve disadvantaged communities and that consistently fail to provide an adequate and affordable source of safe drinking water, to obtain administrative and managerial services from a third party administrator, selected by the State Water Board. The bill also provides clean-up language to SB 88 (Budget and Fiscal Review Committee), Chapter 27, Statutes of 2015, trailer bill that permits the state Water Board to order water system consolidation or extension of services.”
According to SWRCB, for common sources of drinking water contamination, such as arsenic and nitrates, expensive systems must be installed and operated to treat the water to meet drinking water standards. In many cases, technological advances have not yet been sufficient to make such treatment systems affordable, especially to small, disadvantaged communities. In addition, many small disadvantaged communities do not have the technical, managerial, or financial capability to operate what are sometimes complex drinking water systems. Disadvantaged communities also often lack the rate base to pay for operation and maintenance costs, meaning that they are effectively prohibited from accessing capital improvement funding that requires demonstration of ability to fund such costs.
SWRCB maintains that consolidating public water systems and extending service from existing public water systems to communities and areas which currently rely on under-performing or failing small water systems, as well as private wells, reduces costs and improves reliability. Consolidation does this by extending costs to a larger pool of ratepayers.
- New tools for addressing drinking water system failures: In addition to the consolidation authority provided by SB 88, this bill would give SWRCB another tool to address the systemic issues affecting public water systems serving small, disadvantaged communities. This bill would authorize SWRCB to identify public water systems that are consistently unable to provide an adequate and affordable supply of safe drinking water and, once funding is available, to then contract with a competent administrator to provide managerial and technical expertise to that system. SWRCB notes that the use of a contracted entity, in cases where public water systems have proven inadequate, would provide technical and managerial capacity, economies of scale, and other efficiencies such as web-based operating systems. The use of a contracted entity would also provide transparency and avoid fraud, waste, and abuse in the provision of these services.
- Referral to the Committee pursuant to Senate Rule 29.10. SB 552 was originally introduced by Senator Wolk on February 26, 2015, as a measure to require, by January 1, 2017, SWRCB to develop a report identifying specific funding and enforcement mechanisms necessary to ensure disadvantaged communities have water systems that are in compliance with state and federal drinking water standards.
On July 7, 2015, Assembly amendments amended the bill to authorize SWRCB to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water. The measure passed the Assembly Floor on August 23, 2016 by a vote of 50-28.
Consistent with Senate Rule 29.10 the Senate Rules Committee has referred the amended bill to the Senate Environmental Quality Committee for a hearing of the Assembly amendments.
Related/Prior Legislation
SB 1263 (Wieckowski) would enhance the process for evaluation of the creation of a new drinking water system.
SB 88 (Committee on Budget, Chapter 27, Statutes of 2015) authorizes the SWRCB to order water system consolidation or extension of services.
SOURCE:
California State Water Resources Control Board
SUPPORT:
California Catholic Conference, Inc.
California League of Conservation Voters
Clean Water Action
Community Water Center
Leadership Counsel for Justice and Accountability
Rural Community Assistance Corporation (RCAC)
Sierra Club California
Self-Help Enterprises
OPPOSITION:
Association of California Water Agencies
California Municipal Utilities Association
Regional Water Authority
ARGUMENTS IN SUPPORT:
- Supporters argue that this bill will grant the SWRCB the authority to order a water system which is consistently failing to provide safe drinking water to accept a contract administrator. “This is an important tool for the SWRCB to have. There are many systems which may not be candidates for physical consolidation but could begin providing safe drinking water to their customers with new management. While this could be an important and effective tool there should be more clarity provided to available funding, a public process, an affordability analysis, and a long-term sustainability plan when an administrator is used.”
ARGUMENTS IN OPPOSITION:
The opposition states that it is concerned “with the lack of specificity related to funding for the administrative and managerial consolidations that are outlined in the bill including whether the administrator would be subject to Proposition 218. SB 552 not only creates uncertainties associated with the initial consolidation but does not include sustainable provisions for the continued operations and maintenance costs of the designated system, potentially shifting costs to ratepayers in the receiving water systems.”
-- END --
SENATE THIRD READING
STR Bill Id:SB 552
Author:(Wolk)
As Amended Ver:August 19, 2016
Majority vote
SENATE VOTE: 31-5
Committee | Votes | Ayes | Noes |
Environmental Safety | 4-2 | Alejo, Arambula, Lopez, McCarty | Beth Gaines, Gray |
Water | 10-5 | Levine, Dodd, Eggman, Cristina Garcia, Eduardo Garcia, Gomez, Lopez, Nazarian, Salas, Williams | Gallagher, Bigelow, Harper, Mathis, Olsen |
Appropriations | 11-4 | Gonzalez, Bloom, Bonilla, Bonta, Eggman, Eduardo Garcia, Quirk, Santiago, Weber, Wood, McCarty | Bigelow, Chang, Jones, Obernolte |
SUMMARY: Authorizes the State Water Resources Control Board (State Water Board) to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water. Specifically, this bill:
- Adds definitions and makes clarifying and conforming changes to water system consolidation statute.
- Defines "designated public water system" as a public water system that serves a disadvantaged community and that the State Water Board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
- Prohibits, in the case of an ordered consolidation, fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system with a receiving system or the extension of service to the area.
- Authorizes the State Water Board, in specified circumstances, to do both of the following:
- Contract with an administrator to provide administrative and managerial services to a designated public water system to assist with the provision of an adequate and affordable supply of safe drinking water; and,
- Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the State Water Board.
- Requires the State Water Board to meet specified criteria before it determines that a public water system is a designated public water system.
- Requires the State Water Board to make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
- Authorizes an administrator to expend available moneys for capital infrastructure improvements; set and collect user water rates and fees; and, expend available moneys for operation and maintenance costs of the designated public water system.
- Requires the State Water Board to work with the administrator and the communities served by the designated public water system to develop adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
- Provides that a designated public water system is not responsible for any costs associated with an administrator.
- Provides that administrative and managerial contracts for consolidations are exempt from the state acquisition of goods and services statute and may be awarded on a noncompetitive bid basis.
- Provides that a local government that sets water rates in accordance with Proposition 218, as approved by the voters on November 5, 1996, shall be deemed to be providing affordable water and would not be subject to administrative or managerial services by an administrator contracted by the State Water Resources Control Board due to lack of affordability.
- Exempts a charter city, charter county, or charter city and county from provisions that authorize the State Water Board to contract with an administrator to provide administrative and managerial services to a designated public water system.
- Incorporates language to avoid chaptering conflicts with the Resources Budget trailer bills, AB 1611 and SB 839, both of the current legislative session.
EXISTING LAW:
- Requires the State Water Board, in administering Safe Drinking Water Act programs to fund improvements and expansions of small community water systems, to encourage the consolidation of small community water systems that serve disadvantaged communities, and to prioritize funding for construction projects that involve the physical restructuring of two or more community water systems, at least one of which is a small community water system that serves a disadvantaged community, into a single, consolidated system. (Health and Safety Code (HSC) Section 116326)
- Authorizes the State Water Board, where a public water system or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, to order consolidation with a receiving water system. Provides that the consolidation may be physical or operational. (HSC Section 116682(a))
FISCAL EFFECT: According to the Assembly Appropriations Committee, enactment of this bill could result in unknown, potentially significant costs, depending upon the number of public water systems placed under the control of, or provided assistance by, an administrator, as well as the extent and duration of the assistance. This bill does not identify a funding source. According to the California Public Utilities Commission, there will be increased annual costs of approximately $130,000 to assist the State Water Board in determining the fair market value of a privately-owned public water system for consolidation purposes. However, it is unclear if this bill actually increases costs or if the costs are associated with the recently enacted consolidation legislation.
COMMENTS:
Need for the bill: According to the author, "This bill would authorize the State Water Resources Control Board to require public water systems that serve disadvantaged communities and that consistently fail to provide an adequate and affordable source of safe drinking water, to obtain administrative and managerial services from a third party administrator, selected by the State Water Board. The bill also provides clean-up language to SB 88 (Budget and Fiscal Review Committee), Chapter 27, Statutes of 2015, trailer bill that permits the state Water Board to order water system consolidation or extension of services."
Providing safe drinking water to disadvantaged communities: According to the State Water Board, for common sources of drinking water contamination, such as arsenic and nitrates, expensive systems must be installed and operated to treat the water to meet drinking water standards. In many cases, technological advances have not yet been sufficient to make such treatment systems affordable, especially to small, disadvantaged communities. In addition, many small disadvantaged communities do not have the technical, managerial, or financial capability to operate what are sometimes complex drinking water systems. Disadvantaged communities also often lack the rate base to pay for operation and maintenance costs, meaning that they are effectively prohibited from accessing capital improvement funding that requires demonstration of ability to fund such costs.
Consolidation of drinking water systems: According to the United States Environmental Protection Agency, restructuring can be an effective means to help small water systems achieve and maintain technical, managerial, and financial capacity, and to reduce the oversight and resources that states need to devote to these systems. The State Water Board maintains that consolidating public water systems and extending service from existing public water systems to communities and areas which currently rely on under-performing or failing small water systems, as well as private wells, reduces costs and improves reliability. Consolidation does this by extending costs to a larger pool of ratepayers.
The Governor's 2015 consolidation budget trailer bill: SB 88 enacted the Brown Administration's public water system consolidation proposal. Effective June 24, 2015, SB 88 authorized the State Water Board to require certain water systems that consistently fail to provide safe drinking water to consolidate with, or receive an extension of service from, another public water system. The consolidation can be physical or managerial. While for many years the state's drinking water program had encouraged voluntary consolidation of public water systems, the new authority allows the state to mandate the consolidation of water systems where appropriate.
This bill makes technical and clarifying changes to the consolidation statute enacted by SB 88, including increasing the State Water Board's authority to require consolidation or extension of service of drinking water systems to apply to mobilehome parks regardless of whether the mobilehome park is located in an incorporated or unincorporated area.
New tools for addressing drinking water system failures: In addition to the consolidation authority provided by SB 88, this bill would give the State Water Board another tool to address the systemic issues affecting public water systems serving small, disadvantaged communities. This bill would authorize the State Water Board to identify public water systems that are consistently unable to provide an adequate and affordable supply of safe drinking water and, once funding is available, to then contract with a competent administrator to provide managerial and technical expertise to that system. The State Water Board notes that the use of a contracted entity, in cases where public water systems have proven inadequate, would provide technical and managerial capacity, economies of scale, and other efficiencies such as web-based operating systems. The use of a contracted entity would also provide transparency and avoid fraud, waste, and abuse in the provision of these services.
Analysis Prepared by: Shannon McKinney / E.S. & T.M. / (916) 319-3965 FN: 0004563
SENATE THIRD READING
STR Bill Id:SB 552
Author:(Wolk)
As Amended Ver:August 15, 2016
Majority vote
SENATE VOTE: 31-5
Committee | Votes | Ayes | Noes |
Environmental Safety | 4-2 | Alejo, Arambula, Lopez, McCarty | Beth Gaines, Gray |
Water | 10-5 | Levine, Dodd, Eggman, Cristina Garcia, Eduardo Garcia, Gomez, Lopez, Nazarian, Salas, Williams | Gallagher, Bigelow, Harper, Mathis, Olsen |
Appropriations | 11-4 | Gonzalez, Bloom, Bonilla, Bonta, Eggman, Eduardo Garcia, Quirk, Santiago, Weber, Wood, McCarty | Bigelow, Chang, Jones, Obernolte |
SUMMARY: Authorizes the State Water Resources Control Board (State Water Board) to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water. Specifically, this bill:
- Adds definitions and makes clarifying and conforming changes to water system consolidation statute.
- Defines "designated public water system" as a public water system that serves a disadvantaged community and that the State Water Board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
- Prohibits, in the case of an ordered consolidation, fees or charges imposed on a customer of a subsumed water system from exceeding the cost of consolidating the water system with a receiving system or the extension of service to the area.
- Authorizes the State Water Board, in specified circumstances, to do both of the following:
- Contract with an administrator to provide administrative and managerial services to a designated public water system to assist with the provision of an adequate and affordable supply of safe drinking water; and,
- Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the State Water Board.
- Requires the State Water Board to meet specified criteria before it determines that a public water system is a designated public water system.
- Requires the State Water Board to make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
- Authorizes an administrator to expend available moneys for capital infrastructure improvements; set and collect user water rates and fees; and, expend available moneys for operation and maintenance costs of the designated public water system.
- Requires the State Water Board to work with the administrator and the communities served by the designated public water system to develop adequate technical, managerial, and financial capacity to deliver safe drinking water so that the services of the administrator are no longer necessary.
- Provides that a designated public water system is not responsible for any costs associated with an administrator.
- Provides that administrative and managerial contracts for consolidations are exempt from the state acquisition of goods and services statute and may be awarded on a noncompetitive bid basis.
EXISTING LAW:
- Requires the State Water Board, in administering Safe Drinking Water Act programs to fund improvements and expansions of small community water systems, to encourage the consolidation of small community water systems that serve disadvantaged communities, and to prioritize funding for construction projects that involve the physical restructuring of two or more community water systems, at least one of which is a small community water system that serves a disadvantaged community, into a single, consolidated system. (Health and Safety Code (HSC) Section 116326)
- Authorizes the State Water Board, where a public water system or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, to order consolidation with a receiving water system. Provides that the consolidation may be physical or operational. (HSC Section 116682(a))
FISCAL EFFECT: According to the Assembly Appropriations Committee, enactment of this bill could result in unknown, potentially significant costs, depending upon the number of public water systems placed under the control of, or provided assistance by, an administrator, as well as the extent and duration of the assistance. This bill does not identify a funding source. According to the California Public Utilities Commission, there will be increased annual costs of approximately $130,000 to assist the State Water Board in determining the fair market value of a privately-owned public water system for consolidation purposes. However, it is unclear if this bill actually increases costs or if the costs are associated with the recently enacted consolidation legislation.
COMMENTS:
Need for the bill: According to the author, "This bill would authorize the State Water Resources Control Board to require public water systems that serve disadvantaged communities and that consistently fail to provide an adequate and affordable source of safe drinking water, to obtain administrative and managerial services from a third party administrator, selected by the State Water Board. The bill also provides clean-up language to SB 88 ((Budget and Fiscal Review Committee), Chapter 27, Statutes of 2015) trailer bill that permits the state Water Board to order water system consolidation or extension of services."
Providing safe drinking water to disadvantaged communities: According to the State Water Board, for common sources of drinking water contamination, such as arsenic and nitrates, expensive systems must be installed and operated to treat the water to meet drinking water standards. In many cases, technological advances have not yet been sufficient to make such treatment systems affordable, especially to small, disadvantaged communities. In addition, many small disadvantaged communities do not have the technical, managerial, or financial capability to operate what are sometimes complex drinking water systems. Disadvantaged communities also often lack the rate base to pay for operation and maintenance costs, meaning that they are effectively prohibited from accessing capital improvement funding that requires demonstration of ability to fund such costs.
Consolidation of drinking water systems: According to the United States Environmental Protection Agency, restructuring can be an effective means to help small water systems achieve and maintain technical, managerial, and financial capacity, and to reduce the oversight and resources that states need to devote to these systems. The State Water Board maintains that consolidating public water systems and extending service from existing public water systems to communities and areas which currently rely on under-performing or failing small water systems, as well as private wells, reduces costs and improves reliability. Consolidation does this by extending costs to a larger pool of ratepayers.
The Governor's 2015 consolidation budget trailer bill: SB 88 of 2015 enacted the Brown Administration's public water system consolidation proposal. Effective June 24, 2015, SB 88 authorized the State Water Board to require certain water systems that consistently fail to provide safe drinking water to consolidate with, or receive an extension of service from, another public water system. The consolidation can be physical or managerial. While for many years the state's drinking water program had encouraged voluntary consolidation of public water systems, the new authority allows the state to mandate the consolidation of water systems where appropriate.
This bill makes technical and clarifying changes to the consolidation statute enacted by SB 88, including increasing the State Water Board's authority to require consolidation or extension of service of drinking water systems to apply to mobilehome parks regardless of whether the mobilehome park is located in an incorporated or unincorporated area.
New tools for addressing drinking water system failures: In addition to the consolidation authority provided by SB 88, SB 552 would give the State Water Board another tool to address the systemic issues affecting public water systems serving small, disadvantaged communities. SB 552 would authorize the State Water Board to identify public water systems that are consistently unable to provide an adequate and affordable supply of safe drinking water and, once funding is available, to then contract with a competent administrator to provide managerial and technical expertise to that system. The State Water Board notes that the use of a contracted entity, in cases where public water systems have proven inadequate, would provide technical and managerial capacity, economies of scale, and other efficiencies such as web-based operating systems. The use of a contracted entity would also provide transparency and avoid fraud, waste, and abuse in the provision of these services.
Analysis Prepared by: Shannon McKinney / E.S. & T.M. / (916) 319-3965 FN: 0004168
Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SBPCA Bill Id:SB 552
Author:(Wolk) – As Amended Ver:August 1, 2016
Policy Committee: | Environmental Safety and Toxic Materials | Vote: | 4-2 |
Water, Parks and Wildlife | 10- 5 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill revises the authority of the State Water Resources Control Board (SWRCB) with regard to public water system (PWS) consolidation and authorizes SWRCB to provide administrative and managerial services to the PWS, as specified. Specifically, this bill:
1) Updates and clarifies several provisions of law on water system consolidation.
- Authorizes the SWRCB, in order to provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, to do both of the following:
- Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water.
- Order the designated PWS to accept administrative and managerial services, including full management and control, from an administrator selected by SWRCB.
FISCAL EFFECT:
- Unknown, potentially significant costs, depending upon the number of PWSs placed under the control of, or provided assistance by, an administrator, as well as the extent and duration of the assistance. This bill does not identify a funding source.
- According to the California Public Utilities Commission (PUC), there will be increased annual costs of approximately $130,000 to assist SWRCB in determining the fair market value of a privately-owned PWS for consolidation purposes. However, it is unclear if this bill actually increases costs or if the costs are associated with the recently enacted consolidation legislation.
COMMENTS:
- Purpose. This bill creates an additional tool for addressing lack of safe drinking water by authorizing the SWRCB to identify public water systems that are consistently unable to provide sufficient safe drinking water and to contract with a competent administrator. The SWRCB notes contracting with an administrator would provide technical and managerial capacity, economies of scale, and other efficiencies.
According to the author, California is the 6th largest economy of the world, and it is unconscionable that so many Californians are living in Third World conditions without water. The author further contends that a third party administrator will bring stability to the water system and the community, and long-term sustainability to the water supply for disadvantaged communities.
- Background. Last year, SB 88 (Committee on Budget), Chapter 27, Statues of 2015, authorized SWRCB to require certain water systems that consistently fail to provide safe drinking water, to consolidate with, or receive an extension of service from, another public water system.
The consolidation provisions were largely based on recommendations in the Governor’s “Resilient, Affordable, Safe Drinking Water for Disadvantaged Communities Framework”, which was released May 2015. The framework identified three steps to ensure every Californian has access to an adequate supply of safe water to meet daily needs.
The first two steps to improve technical, managerial, and financial capacity and to implement consolidation if improvements are not effective were contained in SB 88. The third step of contracting with a third party to manage the system to allow for it to be brought up to a sustainable condition is included in this bill.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
Date of Hearing: June 28, 2016
ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE
Marc Levine, Chair
SBPCA Bill Id:SB 552
Author:(Wolk) – As Amended Ver:June 16, 2016
SENATE VOTE: 31-5
SUBJECT: Public water systems: disadvantaged communities: consolidation or extension of service: administrative and managerial services
SUMMARY: Authorizes the State Water Resources Control Board (SWRCB) to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water. Specifically, this bill:
- Updates and clarifies several provisions of law on water system consolidation.
- Authorizes the SWRCB, in order to provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, to do both of the following:
- Contract with an administrator, as specified, to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water, and
- Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the State Water Board.
- Defines "administrator" as a person that the State Water Board has determined is competent to perform the administrative and managerial services of a public water system, as specified. Authorizes the State Water Board, in determining competency, to consider demonstrated experience in managing and operating a public water system.
- Authorizes an administrator to expend moneys for infrastructure, operation and maintenance, and to set and collect water user rates and fees.
- Defines "designated public water system" as a public water system that serves a disadvantaged community and that the SWRCB finds consistently fails to provide an adequate and affordable supply of safe drinking water.
- Requires the SWRCB to meet specified critera, before it determines that a public water system is a designated public water system.
- Requires the State Water Board to make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
EXISTING LAW:
- Establishes a state policy that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.
- Establishes the federal Safe Drinking Water Act (SDWA) and sets standards for drinking water quality.
- Requires the SWRCB to regulate drinking water and to enforce the federal SDWA.
- Requires the SWRCB, in administering the SDWA programs to fund improvements and expansions of small community water systems, to encourage the consolidation of small community water systems that serve disadvantaged communities, and prioritize funding for construction projects that involve the physical restructuring of two or more community water systems, at least one of which is a small community water system that serves a disadvantaged community, into a single, consolidated system.
- Authorizes the SWRCB, where a public water system or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, to order consolidation with a receiving water system.
- Limits the liability of a consolidated water system, wholesaler, or any other agency in the chain of distribution that delivers water to a consolidated water system, as specified.
FISCAL EFFECT: Unknown.
COMMENTS: Authorizes the SWRCB to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water.
- Author’s Statement: California is the 6th largest economy of the world, it is unconscionable that so many Californians – most especially people living in disadvantaged communities – are living in Third World conditions without water. California took a bold step last year by authorizing the State Board to consolidate water systems that fail to deliver drinkable water – and SB 552 is a tool that the State Water Board may use to be more efficient. A third party administrator will bring stability to the water system and the community, and long-term sustainability to the water supply for disadvantaged communities.
- Background: California has a challenge providing safe drinking water to all of its residents. The SWRCB is responsible for the state’s drinking water program and estimates that 500 communities rely on public water systems that do not meet drinking water standards. We do not know exactly how many Californians lack access to safe drinking water on a daily basis, but it is on the order of millions of people. Drinking water contamination disproportionally affects disadvantaged communities that rely on groundwater as their drinking water source. Many small communities do not have the technical, managerial, or financial capability to operate what can be complex drinking water systems.
For many years through various means, but primarily through financial incentive or prioritization, the state has encouraged voluntary consolidation of public water systems. SB 88 (Committee on Budget), Chapter 27, Statues of 2015, for the first time, authorized the SWRCB to require certain water systems that consistently fail to provide safe drinking water, to consolidate with, or receive an extension of service from, another public water system.
The SB 88 provisions that authorized public water system consolidation was largely built off of recommendations in the Governor’s “Resilient, Affordable, Safe Drinking Water for Disadvantaged Communities Framework”, which was released May 2015. The framework specifically laid out three steps to ensure every Californian has access to an adequate supply of safe water for daily needs. The first two steps to improve technical, managerial, and financial capacity and to implement consolidation if improvements are not effective were part of SB 88. The third step of contracting with a third party to manage the system to allow for it to be brought up to a sustainable condition was not included and is embodied in this bill.
Additional approach to correct drinking water system failures: This bill creates an additional tool for addressing lack of safe drinking water by authorizing the SWRCB to identify public water systems that are consistently unable to provide sufficient safe drinking water and to contract with a competent administrator. The SWRCB notes that the use of a contracted entity, would provide technical and managerial capacity, economies of scale, and other efficiencies.
- Prior and Related Legislation:
- SB 1263 (Wiekowski), would enhance the process for evaluation of the creation of a new drinking water system. To be heard in this committee on June 28, 2016.
- SB 88 (Committee on Budget), Chapter 27, Statues of 2015, authorizes the SWRCB to order water system consolidation or extension of services.
- Supporting and Support If Amended Arguments: This bill will grant the SWRCB the authority to order a water system which is consistently failing to provide safe drinking water to accept a contract administrator. This is an important tool for the SWRCB to have. There are many systems which may not be candidates for physical consolidation but could begin providing safe drinking water to their customers with new management. While this could be an important and effective tool there should be more clarity provided to available funding, a public process, an affordability analysis, and a long-term sustainability plan when an administrator is used.
- Opposing Arguments: This bill does not specify what entity would be responsible for costs associated with the required administrative and managerial services in the bill. There is a lack of specificity in the bill relating to funding of the required administrative services and whether the administrator would be subject to Proposition 218. This bill does specify that customers of a subsumed water system may not be charged an additional fee beyond the costs of the consolidation itself. As the current structure of the bill offers no funding for the predictable increase in operation, maintenance, and administrative expenses, this bill would place an undue burden on the receiving water system. Safe drinking water is a right of every Californian, but it is a cost that should not be paid in full by public water agencies.
REGISTERED SUPPORT / OPPOSITION:
Support
California Catholic Conference of Bishops
Clean Water Action (if amended)
Community Water Center (if amended)
RCAC (if amended)
Self-Help Enterprises (if amended)
Opposition
Association of California Water Agencies
California Municipal Utilities Association
Regional Water Authority
Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096
Date of Hearing: June 14, 2016
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Luis Alejo, Chair
SBPCA Bill Id:SB 552
Author:(Wolk) – As Amended Ver:May 17, 2016
SENATE VOTE: 31-5
SUBJECT: Public water systems: disadvantaged communities: consolidation or extension of service: administrative and managerial services
SUMMARY: Authorizes the State Water Resources Control Board (State Water Board) to contract with an administrator to provide administrative and managerial services to a designated public water system, as defined, to assist with the provision of an adequate and affordable supply of safe drinking water. Specifically, this bill:
- Updates, in statute referring to water system consolidation, the definition of "affected residence" by stating that the residence must be within a disadvantaged community.
- Updates, in statute referring to water system consolidation, the definition of "disadvantaged community," by adding a "mobilehome park" to the list of locations that a disadvantaged community may be in.
- Updates statute requiring public meetings at the initiation of a consolidation process by providing that an initial public meeting is not required for a potentially subsumed area that is served only by domestic wells.
- Clarifies that, in the case of an ordered consolidation, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
- Defines "administrator" as a person that the State Water Board has determined is competent to perform the administrative and managerial services of a public water system, as specified. Authorizes the State Water Board, in determining competency, to consider demonstrated experience in managing and operating a public water system.
- Defines "designated public water system" as a public water system that serves a disadvantaged community and that the State Water Board finds consistently fails to provide an adequate and affordable supply of safe drinking water.
- Authorizes the State Water Board, in order to provide affordable, safe drinking water to disadvantaged communities and to prevent fraud, waste, and abuse, to do both of the following:
- Contract with an administrator to provide administrative and managerial services to a designated public water system to assist the designated public water system with the provision of an adequate and affordable supply of safe drinking water; and,
- Order the designated public water system to accept administrative and managerial services, including full management and control, from an administrator selected by the State Water Board.
- Provides that the State Water Board may contract with more than one administrator, but only one administrator may be assigned to provide services to a given designated public water system.
- Provides that an administrator may provide administrative and managerial services to more than one designated public water system.
- Provides that in contracting with an administrator, the State Water Board may use criteria from its policy handbook.
- Requires the State Water Board, before it determines that a public water system is a designated public water system, to provide the public water system with notice and an opportunity to show either of the following:
- That the public water system has not consistently failed to provide an adequate and affordable supply of safe drinking water; or,
- That the public water system has taken steps to timely address its failure to provide an adequate and affordable supply of safe drinking water.
- Requires the State Water Board to make financial assistance available to an administrator for a designated public water system, as appropriate and to the extent that funding is available.
- Authorizes an administrator to do the following:
- Expend available moneys for capital infrastructure improvements that the designated public water system needs to provide an adequate and affordable supply of safe drinking water;
- Set and collect user water rates and fees; and,
- Expend available moneys for operation and maintenance costs of the designated public water system.
- Provides that a designated public water system is not responsible for any costs associated with an administrator.
- Provides that administrative and managerial contracts for consolidations are exempt from state acquisition of goods and services statute and may be awarded on a noncompetitive bid basis.
- Makes other clarifying and conforming changes to statute referring to water system consolidation.
EXISTING LAW:
- Pursuant to 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.
- Pursuant to the California SDWA, requires the State Water Board to regulate drinking water and to enforce the federal SDWA and other regulations. (Health and Safety Code (HSC) § 116275 et seq.)
- Requires the State Water Board, in administering SDWA programs to fund improvements and expansions of small community water systems, to encourage the consolidation of small community water systems that serve disadvantaged communities, and prioritize funding for construction projects that involve the physical restructuring of two or more community water systems, at least one of which is a small community water system that serves a disadvantaged community, into a single, consolidated system. (HSC § 116326)
- Authorizes the State Water Board, where a public water system or a state small water system within a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, to order consolidation with a receiving water system. Provides that the consolidation may be physical or operational. (HSC § 116682 (a))
- Limits the liability of a consolidated water system, wholesaler, or any other agency in the chain of distribution that delivers water to a consolidated water system, as specified. (HSC § 116684)
- Makes legislative findings that regional solutions to water contamination problems are often more effective, efficient, and economical than solutions designed to address solely the problems of a single small public water system, and that it is in the interest of the people of the State of California to encourage the consolidation of the management and the facilities of small water systems to enable those systems to better address their water contamination problems. (HSC § 116760.10 (h))
- Declares that it is the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. (Water Code § 106.3)
FISCAL EFFECT: Unknown. This bill was substantially amended since it was analyzed by the Senate Appropriations Committee.
COMMENTS:
Need for the bill: According to the author, "This bill would authorize the State Water Resources Control Board to require public water systems that serve disadvantaged communities and that consistently fail to provide an adequate and affordable source of safe drinking water, to obtain administrative and managerial services from a third party administrator, selected by the State Water Board. The bill also provides clean-up language to SB 88, the 2015 trailer bill that permits the state Water Board to order water system consolidation or extension of services."
Drinking water contamination in disadvantaged communities: The State Water Board report, "Communities that Rely on Contaminated Groundwater," released in January 2013, reported that 682 community public water systems in California, which serve nearly 21 million people, rely on contaminated groundwater as a primary source of drinking water. It also found that 265 community public water systems that rely on contaminated groundwater, which serve a little more than two million people, had received at least one drinking water quality violation within the last compliance cycle. The report points out that an additional two million Californians rely on groundwater from a private domestic well or a smaller groundwater-reliant system that is not regulated by the state, of which the water quality is uncertain. The findings from the State Water Board report, and a January 2012, University of California at Davis study, "Addressing Nitrate in California's Drinking Water," suggest that drinking water contamination in California disproportionally affects small, rural, and low-income communities that depend mostly on groundwater as their drinking water source.
The recent drought has further compromised the state's drinking water supplies. Since many rural households rely on shallow domestic wells or small, poorly funded community water supply systems, they have been hardest hit. According to the Public Policy Institute of California, as of early July 2015, more than 2,000 domestic wells were reported to be dry, mostly in the Central Valley and the Sierras. Emergency water supply needs have also been identified for more than 100 small water community water systems around the state. Indeed, the State Water Board currently notes that the numbers of failing water systems have increased since their comprehensive report mentioned above, and estimates that now approximately 500 communities rely on public water systems that provide water that does not meet drinking water standards.
Providing safe drinking water to disadvantaged communities: According to the State Water Board, for common sources of drinking water contamination, such as arsenic and nitrates, expensive systems must be installed and operated to treat the water to meet drinking water standards. In many cases, technological advances have not yet been sufficient to make such treatment systems affordable, especially to small, disadvantaged communities. In addition, many small disadvantaged communities do not have the technical, managerial, or financial capability to operate what are sometimes complex drinking water systems.
Current sources of financial assistance, such as Proposition 1, the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Rendon, Chapter 188, Statutes of 2014), and the Safe Drinking Water State Revolving Fund (SDWSRF), do not provide financial assistance for the long-term operation and maintenance costs of drinking water systems, which the community must provide in order to qualify for the capital improvement funding that is available from those sources. Disadvantaged communities often lack the rate base to pay for operation and maintenance costs, meaning that they are effectively prohibited from accessing capital improvement funding.
Consolidation in California: According to the US EPA, restructuring can be an effective means to help small water systems achieve and maintain technical, managerial, and financial capacity, and to reduce the oversight and resources that states need to devote to these systems. The State Water Board maintains that consolidating public water systems and extending service from existing public water systems to communities and areas which currently rely on under-performing or failing small water systems, as well as private wells, reduces costs and improves reliability. Consolidation does this by extending costs to a larger pool of ratepayers.
The goal of drinking water system consolidation and regional water projects was recognized in California during the inception of the state's SDWSRF (SB 1307 (Costa and Thompson), Chapter 734, Statutes of 1997), which is the state program to implement the federal SDWSRF program. With SB 1307 the legislature declared that, "It is in the interest of the people of the State of California to encourage the consolidation of the management and the facilities of small water systems to enable those systems to better address their water contamination problems." (HSC § 116760.10 (h))
To promote consolidation, the California Department of Public Health (CDPH), which managed that state's drinking water program at the time, established the Consolidation Incentive Program (Program). The Program provided an incentive to encourage larger, compliant water systems to consolidate with nearby noncompliant systems. Previously, CDPH only invited drinking water systems that were out of compliance with drinking water standards to submit applications for SDWSRF funding. However, through the consolidation incentive process, lower-ranked projects for compliant systems that hadn't previously received SDWSRF invitations became eligible for SDWSRF funding. By agreeing to consolidate with a neighboring noncompliant system, CDPH re-ranked low-ranked, compliant system projects into a fundable category.
In order to provide further support and direction for the state's consolidation efforts, AB 783 (Arambula, Chapter 614, Statutes of 2007) required CDPH to prioritize funding of water projects in disadvantaged communities, and directed CDPH to encourage; provide funds for and studies on; and, prioritize funding for projects that consolidate small public water systems in certain situations.
The State Water Board received authority over the state's drinking water program in July 2014, and since that time, the consolidation of failing drinking water systems in order to supply safe, affordable, and reliable drinking water has been a priority for the State Water Board.
The Governor's safe drinking water framework: In May 2015, Governor Jerry Brown released his "Resilient, Affordable, Safe Drinking Water for Disadvantaged Communities Framework," the goal of which is to, "ensure that every Californian has access to an adequate supply of safe water for daily human needs." The framework lays out steps that the Administration plans to take to achieve this goal, one of which is to, "improve technical, managerial, and financial capacity where possible, consolidating as a second option, and if neither of those work, contracting with a third party to manage the system with a commitment to transitioning the system to a sustainable condition."
The Governor's 2015 consolidation budget trailer bill: SB 88 (Senate Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2015) enacted the Brown Administration's public water system consolidation proposal. Governor Jerry Brown's office summarized the intent of the bill as follows,
"When a public water system, or state small water system serving a disadvantaged unincorporated community or a water mutual serving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, the State Water Board may order that system to consolidate with, or receive an extension of service from, another public water system referred to as the receiving system. The receiving system would not be held liable for claims resulting from the subsumed system’s actions prior to the consolidation or extension of service. Before ordering consolidation or extension of service the State Water Board must notify the systems, consult with various entities, and allow time to negotiate another means of providing an adequate supply of safe drinking water. The State Water Board must also make certain findings prior to mandating consolidation or extension of service."
Effective June 24, 2015, SB 88 added HSC § 116680-116684, which authorized the State Water Board to require certain water systems that consistently fail to provide safe drinking water to consolidate with, or receive an extension of service from, another public water system. The consolidation can be physical or managerial. While for many years the state's drinking water program had encouraged voluntary consolidation of public water systems, the new authority allows the state to mandate the consolidation of water systems where appropriate.
This bill makes technical and clarifying changes to the consolidation statute enacted by SB 88, including increasing the State Water Board’s authority to require consolidation or extension of service of drinking water systems to apply to mobilehome parks regardless of whether the mobilehome park is located in an incorporated or unincorporated area.
New tools for addressing drinking water system failures: In addition to the consolidation authority provided by SB 88, SB 552 would give the State Water Board another tool to address the systemic issues affecting public water systems serving small, disadvantaged communities. SB 552 would authorize the State Water Board to identify public water systems that are consistently unable to provide an adequate and affordable supply of safe drinking water and, once funding is available, to then contract with a competent administrator to provide managerial and technical expertise to that system. The bill provides that the administrator may expend available capital funds necessary to provide an adequate and affordable supply of safe drinking water and may set and collect user water rates and fees. SB 552 also provides that a public water system designated for this assistance will not be responsible for any costs associated with contracting with an administrator.
The State Water Board notes that the use of a contracted entity, in cases where public water systems have proven inadequate, would provide technical and managerial capacity, economies of scale, and other efficiencies such as web-based operating systems. The use of a contracted entity would also provide transparency and avoid fraud, waste, and abuse in the provision of these services.
Arguments in opposition: The Association of California Water Agencies (ACWA) writes in opposition,
"SB 552 does not specify what entity would be responsible for costs associated with the required administrative and managerial services in the bill… As ACWA expressed during the debate on SB 88 last year, the State Water Board does not have subject-matter expertise in Cortese-Knox-Hertzberg local government law or staff steeped in local agency organization. There is a lack of specificity in the bill relating to funding of the required administrative services and whether the administrator would be subject to Proposition 218. This bill would specify that customers of a subsumed water system may not be charged an additional fee beyond the costs of the consolidation itself. As the current structure of the bill offers no funding for the predictable increase in operation, maintenance, and administrative expenses, this bill would place an undue burden on the receiving water system. Safe drinking water is a right of every Californian, but it is a cost that should not be paid in full by public water agencies and their customers already in compliance with the law. Additionally, this bill would remove the requirement for a public meeting prior to consolidation for areas served only by domestic wells. ACWA believes that this provision violates a necessary opportunity for the public to comment on needed consolidations and maintain public transparency of consolidation efforts."
Double referral: This bill has been double referred to the Assembly Committees on Environmental Safety and Toxic Materials and on Water, Parks, and Wildlife.
Clarification needed: The Committee may wish to consider the following technical amendment in order to clarify that statute was intended to authorize the State Water Board to order the consolidation of public water systems and state small water systems that serve disadvantaged communities, not necessarily those systems that are located within disadvantaged communities.
- HSC § 116682 (a) Where a public water system or a state small water system,
withinserving a disadvantaged community, consistently fails to provide an adequate supply of safe drinking water, the State Water Resources Control Board may order consolidation with a receiving water system as provided in this section and Section 116684.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file.
Opposition
Association of California Water Agencies (ACWA)
Analysis Prepared by: Shannon McKinney / E.S. & T.M. / (916) 319-3965
SB 552
Page 6
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 552
Amended: 4/16/15
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 6-0, 4/29/15
AYES: Wieckowski, Gaines, Hill, Jackson, Leno, Pavley
NO VOTE RECORDED: Bates
SENATE APPROPRIATIONS COMMITTEE: 5-0, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NO VOTE RECORDED: Bates, Nielsen
SUBJECT: Public water systems: disadvantaged communities: drinking water standards
DIGEST: This bill requires the State Water Resources Control Board (SWRCB) to report to the Legislature on recommendations for solutions to the managerial, technical and maintenance fund hurdle that small, disadvantaged communities face in building and maintaining water treatment facilities and thereby obtaining funding to do so.
Existing law, under the California Safe Drinking Water Act:
Requires the SWRCB to administer provisions relating to the regulation of drinking water to protect public health, including, but 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, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies.
Requires the SWRCB to ensure that all public water systems are operated in compliance with the act.
This bill:
Requires, by January 1, 2017, the SWRCB to develop a report identifying specific funding and enforcement mechanisms necessary to ensure disadvantaged communities have water systems that are in compliance with state and federal drinking water standards.
Requires the report to identify specific legislative and administrative actions necessary to bring disadvantaged communities into compliance with safe drinking water standards.
Background
Transfer of the Drinking Water Program. SB 861 (Committee on Budget and Fiscal Review, Chapter 35, Statutes of 2014) transferred the Drinking Water Program from the California Department of Public Health (DPH) to the SWRCB, giving the SWRCB primary enforcement authority (primacy) to enforce federal and state safe drinking water acts, and is responsible for the regulatory oversight of about 8,000 public water systems throughout the state.
The 2014-15 Budget Act and SB 861 transferred $200.3 million ($5 million General Fund) and 291.2 positions for the administration of the Drinking Water Program from the DPH to the SWRCB.
The goal of Transferring the Drinking Water Program was to achieve the following objectives:
Establish a single water quality agency to enhance accountability for water quality issues.
Better provide comprehensive technical and financial assistance to help communities, especially small disadvantaged communities, address an array of challenges related to drinking water, wastewater, water recycling, pollution, desalination, and storm water.
Improve the efficiency and effectiveness of drinking water, groundwater, water recycling, and water quality programs.
Safe Drinking Water Plan for California. In 1993, the California Department of Health Services (DHS) (now DPH) submitted to the Legislature the report entitled, "Drinking Water into the 21st Century: Safe Drinking Water Plan for California" (1993 Plan). In 1996, the Legislature enacted SB 1307 (Calderon, Chapter 755, Statutes of 1996) requiring a periodic update of the original Plan.
DPH assembled a team of experts that conducted extensive reviews and analyses, resulting in a draft plan that included an overview of drinking water regulation, reviews and plans for drinking water quality/monitoring and threats, treatment technologies, funding aspects and financial assistance, and a focus on the challenges faced by small drinking water systems.
Following the July 1, 2014 transition of the Drinking Water Program to the SWRCB, the draft plan's recommendations and implementation plan has been enhanced based on the synergies and resources resulting from incorporation of the program into the SWRCB.
The Safe Drinking Water Plan for California includes the SWRCB’s assessment of the overall quality of the state's drinking water, the identification of specific water quality problems, an analysis of the known and potential health risks that may be associated with drinking water contamination in California, and specific recommendations to improve drinking water quality. The final version of the plan is due to be released within the next few months.
The Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1). Proposition 1, approved by the voters in November, 2014, authorizes $7.12 billion in general obligation bonds for state water supply infrastructure projects, such as public water system improvements, surface and groundwater storage, drinking water protection, water recycling and advanced water treatment technology, water supply management and conveyance, wastewater treatment, drought relief, emergency water supplies, and ecosystem and watershed protection and restoration.
Clean, Safe and Reliable Drinking Water. Proposition 1 authorizes $520 million for expenditures, grants and loans for projects that improve water quality or help provide clean, safe, and reliable drinking water to all Californians and provides that the projects eligible for funding pursuant to this section shall help improve water quality for a beneficial use. The purposes of this section are to:
Reduce contaminants in drinking water supplies regardless of the source of the water or the contamination.
Assess and prioritize the risk of contamination to drinking water supplies.
Address the critical and immediate needs of disadvantaged, rural, or small communities that suffer from contaminated drinking water supplies, including, but not limited to, projects that address a public health emergency.
Leverage other private, federal, state, and local drinking water quality and wastewater treatment funds.
Reduce contaminants in discharges to, and improve the quality of, waters of the state.
Prevent further contamination of drinking water supplies.
Provide disadvantaged communities with public drinking water infrastructure that provides clean, safe, and reliable drinking water supplies that the community can sustain over the long term.
Ensure access to clean, safe, reliable, and affordable drinking water for California’s communities.
Meet primary and secondary safe drinking water standards or remove contaminants identified by the state or federal government for development of a primary or secondary drinking water standard.
The funds are to be allocated as follows:
$260 million shall be available for deposit into in the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for wastewater treatment projects. Priority shall be given to projects that serve disadvantaged communities and severely disadvantaged communities, and to projects that address public health hazards. Projects may include, but not be limited to, projects that identify, plan, design, and implement regional mechanisms to consolidate wastewater systems or provide affordable treatment technologies.
$260 million shall be available for grants and loans for public water system infrastructure improvements and related actions to meet safe drinking water standards, ensure affordable drinking water, or both. Priority shall be given to projects that provide treatment for contamination or access to an alternate drinking water source or sources for small community water systems or state small water systems in disadvantaged communities whose drinking water source is impaired by chemical and nitrate contaminants and other health hazards identified by the SWRCB.
Specifies that at least 10% of the funds must be allocated for severely disadvantaged communities and up to 15% of the funds must be allocated for technical assistance to disadvantaged communities.
Comments
Purpose of Bill. According to the author, “over one million Californians still lack access to clean affordable drinking water and wastewater treatment. Many of these Californians live in small communities with limited ability to finance construction, operations and maintenance of drinking water and wastewater facilities. While Proposition 1 will help fund some construction in these communities, there are still significant technical, administrative, governance and long-term affordability barriers to providing these Californians safe and reliable water.”
The SWRCB’s Safe Drinking Water Plan for California gives an overview of drinking water regulation, reviews and plans for drinking water quality/monitoring and threats, treatment technologies, funding aspects and financial assistance, and a focus on the challenges faced by small drinking water systems. However, the plan does not have specific recommendations on how to remedy one of the greatest barriers for small, disadvantaged communities: the financial obstacle of meeting technical, managerial and maintenance expenses. Requiring SWRCB to report to the Legislature with recommendations specifically addressing this obstacle will assist the Legislature in developing solutions for these communities.
The author’s background document states that there are likely further amendments to this bill, as the author is working with a broad group of stakeholders.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
One-time costs of $280,000 from the Safe Drinking Water Account (special) to the board to create the required report.
Unknown cost pressures, likely in the millions of dollars, to the Safe Drinking Water Account (special) to implement the report.
California Catholic Conference, Inc.
California Coastal Protection Network
California Food Policy Advocates
Clean Water Action
Community Water Center
Environmental Working Group
Friends of the River
Leadership Counsel for Justice and Accountability
League of Women Voters
National Association of Social Workers – California Chapter
Rural Community Assistance Corporation
Sierra Club California
Valley CAN
OPPOSITION: (Verified 5/28/15)
None received
Prepared by: Rachel Machi Wagoner / E.Q. / (916) 651-4108
5/31/15 12:17:57
**** END ****
SB 552 (Wolk) Page 2 of 2
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 552 (Wolk) - Public water systems: disadvantaged communities: drinking water standards.
|
|
Version: April 16, 2015 |
Policy Vote: E.Q. 6 - 0 |
Urgency: No |
Mandate: No |
Hearing Date: May 11, 2015 |
Consultant: Marie Liu |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 552 would require the State Water Resources Control Board (board) to develop a report by January 1, 2017 that identifies necessary steps to ensure that disadvantaged communities have water systems that are in compliance with federal and state drinking water standards.
Fiscal Impact:
One-time costs of $280,000 from the Safe Drinking Water Account (special) to the board to create the required report.
Unknown cost pressures, likely in the millions of dollars, to the Safe Drinking Water Account (special) to implement the report.
Background:
In 1993, the California Department of Health Services (now the Department of Public Health, DPH) submitted to the Legislature the report entitled, "Drinking Water into the 21st Century: Safe Drinking Water Plan for California" (1993 Plan). In 1996, the Legislature enacted SB 1307 (Calderon), Chapter 755, Statutes of 1996, requiring a periodic update of the original Plan.
DPH assembled a team of experts that conducted extensive reviews and analyses, resulting in a draft plan that included an overview of drinking water regulation, reviews and plans for drinking water quality/monitoring and threats, treatment technologies, funding aspects and financial assistance, and a focus on the challenges faced by small drinking water systems.
Following the July 1, 2014 transition of the Drinking Water Program to the board, the draft plan's recommendations and implementation plan has been enhanced based on the synergies and resources resulting from incorporation of the program into board.
The Safe Drinking Water Plan for California includes the board’s assessment of the overall quality of the state's drinking water, the identification of specific water quality problems, an analysis of the known and potential health risks that may be associated with drinking water contamination in California, and specific recommendations to improve drinking water quality. The final version of the plan is due to be released within the next few months.
Proposed Law:
This bill would require the board to develop a report with the following information to ensure that disadvantaged communities have water systems that are in compliance with state and federal drinking water standards:
Necessary funding mechanisms, including for ongoing operations and maintenance costs.
Necessary enforcement mechanisms.
Methods to identify specific issues and solutions for individual communities.
The board would be required to identify specific legislative and administrative actions necessary to enable these mechanisms.
The report would be due January 1, 2017.
Staff Comments:
The draft Safe Drinking Water Plan gives an overview of drinking water regulation, reviews and plans for drinking water quality and monitoring, treatment technologies, funding aspects and financial assistance. However, the plan does not have specific recommendations on how to provide for operation and maintenance costs, which is one of the greatest barriers for small, disadvantaged communities to access clean drinking water. This bill would require the board to identify such funding mechanisms as well as legislative and administrative actions necessary to implement such mechanisms.
Based on the cost of developing the Safe Drinking Water Plan, the board estimates that the report required by this bill will require a one-time cost of $280,000 for 2 PYs to conduct the necessary stakeholder outreach and research. As the plan will have specific recommendations for legislative and administrative action, this bill will also likely create cost pressures to implement the plan.
-- END --
SB 552 (Wolk) Page 6 of 6
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Bob Wieckowski, Chair
2015 - 2016 Regular
Bill No: SB 552 Hearing Date: 4/29/2015
Author: |
Wolk |
||
Version: |
4/16/2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Rachel Machi Wagoner |
||
Subject: Public water systems: disadvantaged communities: drinking water standards
ANALYSIS:
Existing law, under the California Safe Drinking Water Act,
Requires the State Water Resources Control Board (SWRCB) to administer provisions relating to the regulation of drinking water to protect public health, including, but 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, adoption of enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies.
Requires SWRCB to ensure that all public water systems are operated in compliance with the act.
This bill:
Requires, by January 1, 2017, SWRCB to develop a report identifying specific funding and enforcement mechanisms necessary to ensure disadvantaged communities have water systems that are in compliance with state and federal drinking water standards.
Require the report to identify specific legislative and administrative actions necessary to bring disadvantaged communities into compliance with safe drinking water standards.
Background
Transfer of the Drinking Water Program.
SB 861 (Committee on Budget and Fiscal Review), Chapter 35, Statutes of 2014, transferred the Drinking Water Program from the California Department of Public Health (DPH) to SWRCB, giving SWRCB primary enforcement authority (primacy) to enforce federal and state safe drinking water acts, and is responsible for the regulatory oversight of about 8,000 public water systems throughout the state.
The 2014-15 Budget Act and SB 861 transferred $200.3 million ($5 million General Fund) and 291.2 positions for the administration of the Drinking Water Program from DPH to SWRCB.
The goal of Transferring the Drinking Water Program was to achieve the following objectives:
Establish a single water quality agency to enhance accountability for water quality issues.
Better provide comprehensive technical and financial assistance to help communities, especially small disadvantaged communities, address an array of challenges related to drinking water, wastewater, water recycling, pollution, desalination, and storm water.
Improve the efficiency and effectiveness of drinking water, groundwater, water recycling, and water quality programs.
Safe Drinking Water Plan for California.
In 1993, the California Department of Health Services (DHS) (now DPH) submitted to the Legislature the report entitled, "Drinking Water into the 21st Century: Safe Drinking Water Plan for California" (1993 Plan). In 1996, the Legislature enacted SB 1307 (Calderon), Chapter 755, Statutes of 1996, requiring a periodic update of the original Plan.
DPH assembled a team of experts that conducted extensive reviews and analyses, resulting in a draft plan that included an overview of drinking water regulation, reviews and plans for drinking water quality/monitoring and threats, treatment technologies, funding aspects and financial assistance, and a focus on the challenges faced by small drinking water systems.
Following the July 1, 2014 transition of the Drinking Water Program to the SWRCB, the draft plan's recommendations and implementation plan has been enhanced based on the synergies and resources resulting from incorporation of the program into SWRCB.
The Safe Drinking Water Plan for California includes SWRCB’s assessment of the overall quality of the state's drinking water, the identification of specific water quality problems, an analysis of the known and potential health risks that may be associated with drinking water contamination in California, and specific recommendations to improve drinking water quality. The final version of the plan is due to be released within the next few months.
The Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1).
Proposition 1, approved by the voters in November, 2014, authorizes $7.12 billion in general obligation bonds for state water supply infrastructure projects, such as public water system improvements, surface and groundwater storage, drinking water protection, water recycling and advanced water treatment technology, water supply management and conveyance, wastewater treatment, drought relief, emergency water supplies, and ecosystem and watershed protection and restoration.
Clean, Safe and Reliable Drinking Water. Proposition 1 authorizes $520 million for expenditures, grants and loans for projects that improve water quality or help provide clean, safe, and reliable drinking water to all Californians and provides that the projects eligible for funding pursuant to this section shall help improve water quality for a beneficial use. The purposes of this section are to:
Reduce contaminants in drinking water supplies regardless of the source of the water or the contamination.
Assess and prioritize the risk of contamination to drinking water supplies.
Address the critical and immediate needs of disadvantaged, rural, or small communities that suffer from contaminated drinking water supplies, including, but not limited to, projects that address a public health emergency.
Leverage other private, federal, state, and local drinking water quality and wastewater treatment funds.
Reduce contaminants in discharges to, and improve the quality of, waters of the state.
Prevent further contamination of drinking water supplies.
Provide disadvantaged communities with public drinking water infrastructure that provides clean, safe, and reliable drinking water supplies that the community can sustain over the long term.
Ensure access to clean, safe, reliable, and affordable drinking water for California’s communities.
Meet primary and secondary safe drinking water standards or remove contaminants identified by the state or federal government for development of a primary or secondary drinking water standard.
The funds are to be allocated as follows:
$260 million shall be available for deposit into in the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for wastewater treatment projects. Priority shall be given to projects that serve disadvantaged communities and severely disadvantaged communities, and to projects that address public health hazards. Projects may include, but not be limited to, projects that identify, plan, design, and implement regional mechanisms to consolidate wastewater systems or provide affordable treatment technologies.
$260 million shall be available for grants and loans for public water system infrastructure improvements and related actions to meet safe drinking water standards, ensure affordable drinking water, or both. Priority shall be given to projects that provide treatment for contamination or access to an alternate drinking water source or sources for small community water systems or state small water systems in disadvantaged communities whose drinking water source is impaired by chemical and nitrate contaminants and other health hazards identified by the State Water Resources Control Board.
Specifies that at least 10% of the funds must be allocated for severely disadvantaged communities and up to 15% of the funds must be allocated for technical assistance to disadvantaged communities.
Comments
Purpose of Bill.
According to the author, “over one million Californians still lack access to clean affordable drinking water and wastewater treatment. Many of these Californians live in small communities with limited ability to finance construction, operations and maintenance of drinking water and wastewater facilities. While Proposition 1 will help fund some construction in these communities, there are still significant technical, administrative, governance and long-term affordability barriers to providing these Californians safe and reliable water.”
The SWRCB’s Safe Drinking Water Plan for California gives an overview of drinking water regulation, reviews and plans for drinking water quality/monitoring and threats, treatment technologies, funding aspects and financial assistance, and a focus on the challenges faced by small drinking water systems. However, the plan does not have specific recommendations on how to remedy one of the greatest barriers for small, disadvantaged communities: the financial obstacle of meeting technical, managerial and maintenance expenses. Requiring SWRCB to report to the Legislature with recommendations specifically addressing this obstacle will assist the Legislature in developing solutions for these communities.
The author’s background document states that there are likely further amendments to this bill, as the author is working with a broad group of stakeholders. The committee should hear this legislation again if further amendments are taken.
SOURCE:
Author
SUPPORT:
California Catholic Conference, Inc.
California Coastal Protection Network
California Food Policy Advocates
Clean Water Action
Community Water Center
Environmental Working Group
Leadership Counsel for Justice and Accountability
National Association of Social Workers – California Chapter
Sierra Club California
OPPOSITION:
None on file
Discussed in Hearing
2MIN
Senate Floor
3MIN
Assembly Floor
1MIN
Assembly Floor
24MIN
Assembly Standing Committee on Water, Parks, and Wildlife
23MIN
Assembly Standing Committee on Environmental Safety and Toxic Materials
2MIN
Senate Floor
Bill Author
Bill Co-Author(s):