Existing law establishes the State Water Resources Control Board (state board) to exercise the adjudicatory and regulatory functions of the state in the field of water resources. Existing law establishes the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Existing law continuously appropriates to the state board moneys deposited in the fund to consolidate water systems, or extend drinking water services to other public water systems, domestic wells, and state small water systems, among other things. Existing law requires the state board to expend moneys in the fund for grants, loans, contracts, or services to assist eligible recipients.

This bill would require, by January 1, 2025, the state board to update the state boards online search tool for funding applications to include a description of the additional information the state board needs from a water system to continue processing the water systems application and a description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application, among other information, as specified.

Existing law establishes the State Water Resources Control Board (state board) to exercise the adjudicatory and regulatory functions of the state in the field of water resources. Existing law establishes the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Existing law continuously appropriates to the state board moneys deposited in the fund to consolidate water systems, or extend drinking water services to other public water systems, domestic wells, and state small water systems, among other things. Existing law requires the state board to expend moneys in the fund for grants, loans, contracts, or services to assist eligible recipients.

This bill would require, by January 1, 2025, the state board to update the state boards online search tool for funding applications to include a description of the additional information the state board needs from a water system to continue processing the water systems application and a description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application, among other information, as specified.

Existing law establishes the State Water Resources Control Board (state board) to exercise the adjudicatory and regulatory functions of the state in the field of water resources. Existing law establishes the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Existing law continuously appropriates to the state board moneys deposited in the fund to consolidate water systems, or extend drinking water services to other public water systems, domestic wells, and state small water systems, among other things. Existing law requires the state board to expend moneys in the fund for grants, loans, contracts, or services to assist eligible recipients.

This bill would require, by January 1, 2025, the state board to update the state boards online search tool for funding applications to include a description of the additional information the state board needs from a water system to continue processing the water systems application and the date the state board expects to complete its reviews and award funding, a description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application, among other information, as specified.

Existing law establishes the State Water Resources Control Board (state board) to exercise the adjudicatory and regulatory functions of the state in the field of water resources. Existing law establishes the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Existing law continuously appropriates to the state board moneys deposited in the fund to consolidate water systems, or extend drinking water services to other public water systems, domestic wells, and state small water systems, among other things. Existing law requires the state board to expend moneys in the fund for grants, loans, contracts, or services to assist eligible recipients.

This bill would express the intent of the Legislature to enact subsequent legislation that would require, by January 1, 2025, the state board to update the state boards online search tool for funding applications to include a description of the additional information the state board needs from the a water system to continue processing its the water systems application and the date the state board expects to complete its reviews and award funding, among other information, as specified.

Existing law establishes the State Water Resources Control Board (state board) to exercise the adjudicatory and regulatory functions of the state in the field of water resources. Existing law establishes the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Existing law continuously appropriates to the state board moneys deposited in the fund to consolidate water systems, or extend drinking water services to other public water systems, domestic wells, and state small water systems, among other things. Existing law requires the state board to expend moneys in the fund for grants, loans, contracts, or services to assist eligible recipients.

This bill would express the intent of the Legislature to enact subsequent legislation that would require, by January 1, 2025, the state board to update the state boards online search tool for funding applications to include a description of the additional information the state board needs from the water system to continue processing its application and the date the state board expects to complete its reviews and award funding, among other information, as specified.

 THIRD READING  

Bill No: AB 682

Author: Mathis (R)

Amended: 3/20/23 in Assembly

Vote: 21

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 6/7/23

AYES: Allen, Dahle, Gonzalez, Hurtado, Menjivar, Nguyen, Skinner

SENATE NATURAL RES. & WATER COMMITTEE: 9-0, 6/22/23

AYES: Min, Allen, Grove, Hurtado, Laird, Limón, McGuire, Padilla, Stern

NO VOTE RECORDED: Seyarto, Dahle

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 79-0, 4/27/23 (Consent) - See last page for vote

SUBJECT: State Water Resources Control Board: online search tool: funding applications

SOURCE: Author

DIGEST: This bill requires the State Water Resources Control Board (State Water Board) to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, specified information relating to the status of water systems’ funding applications.

ANALYSIS:

Existing law:

1. Authorizes, pursuant to the federal Safe Drinking Water Act (SDWA), 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. (42 United States Code (USC) § 300 (f) et seq.)
2. Provides, under federal Drinking Water State Revolving Fund (DWSRF) statute, financial assistance to help water systems and states achieve the health protection objectives of the SDWA. Requires states to establish a drinking water revolving loan fund to be eligible for a federal DWSRF capitalization grant. (42 USC § 300j-12, et seq.)
3. Establishes the California SDWA and requires the State Water Board to maintain a drinking water program. (Health and Safety Code (HSC) § 116270, et seq.)
4. Establishes the state DWSRF to provide financial assistance for the design and construction of projects for public water systems to meet safe drinking water standards. (HSC §116760, et seq.)
5. Creates the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. (HSC § 116766.)

This bill:

1. Requires the State Water Board to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, all of the following information:
   1. A description of the additional information the State Water Board requires from a water system to continue processing the water system’s application;
   2. The date the State Water Board requested the water system to provide additional information;
   3. The cause of any prolonged delays in the process; and,
   4. A description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application.

Background

1. Public Water Systems. Nearly a million Californians lack access to safe drinking water because they receive water from systems that do not meet water quality standards. The State Water Board regulates the operation of roughly 7,400 public water systems throughout the state and disburses federal and state assistance to help them improve their water quality. According to the State Water’s Board 2022 Drinking Water Needs Assessment, 346 public water systems were identified as failing, 508 as “at-risk”, and an additional 453 as “potentially at-risk”.
   
2. Health effects of drinking water contaminants: The US EPA reports that there is a broad range of health effects associated with exposure to drinking water contaminants. Ingestion or exposure to pathogens at sufficient doses can result in gastrointestinal illness with symptoms such as diarrhea, nausea, stomach cramps, and vomiting. Exposure to higher doses of chemicals, metals, or radionuclides through drinking water can produce biological responses, toxicological effects, and more severe health impacts including cancer, developmental or reproductive effects, neurological effects, and organ damage.
   
3. California's drinking water program. The State Water Board's Division of Drinking Water (DDW) implements and enforces the federal and state Safe Drinking Water Acts, monitors drinking water quality, and issues permits to public water systems throughout the state. The State Water Board establishes maximum contaminant levels (drinking water quality standards, also known as MCLs) for more than 100 substances that are harmful to human health. The DDW's 25 district offices monitor public water systems' compliance with drinking water standards by reviewing and evaluating analytical results of the water samples collected by the water systems. When a water system exceeds MCL standards, the DDW may take enforcement actions, including fines if necessary.
   
4. Funding sources for safe drinking water projects. The State Water Board provides funding and other assistance to water systems for drinking water projects that address or prevent public health risks. The State Water Board's Division of Financial Assistance awarded about $1.7 billion in loan and grant funding for water infrastructure projects-such as constructing water sources, distribution systems, and treatment facilities-and for technical assistance to water systems. The State Water Board relies on funding from several sources to make these awards to water systems and support its safe drinking water programs. For fiscal year 2021-22, federal and state funding available for drinking water programs totaled $1.4 billion. Of that amount, $650 million, or 46 percent, came from a State General Fund appropriation for water system infrastructure. Another $330 million, or 23 percent, came from the DWSRF, and $240 million, or 17 percent, was from state bonds and other special funds. The remainder of its funding is from the Safe and Affordable Drinking Water Fund, established by SB 200 (Monning, Chapter 120, Statutes of 2019), and additional appropriations from the State General Fund.
   
5. The State Water Board's loan and grant application process. Water systems are often eligible for funding from several sources and for different aspects of projects. They may apply for funding to assist in the planning and design or construction of new infrastructure projects, or for the operation and maintenance of existing infrastructure. Water systems may apply for financial assistance for both the design and the construction phases of their projects.

Applications for funding require water systems to provide the State Water Board with general project information, as well as information about the project's technical and environmental aspects. The application must also include information about the water system's ability to repay the loan for the project.

The State Water Board also provides support and technical assistance to water systems that need assistance with the application process. Once a water system submits an application, a Division of Financial Assistance project manager reviews it for completeness and contacts the applicants to obtain any missing information. Following its reviews of the project submittals, the State Water Board determines the amount and source of funding to award the water system. It then drafts a financing agreement for the projects.

1. State Auditor Report. According to a July 2022 report by the Auditor of the State of California, State Water Resources Control Board: It Lacks the Urgency Necessary to Ensure That Failing Water Systems Receive Needed Assistance in a Timely Manner:
   
   "Over the last five years, the average amount of time it took for water systems to complete their applications for these funds, and then for the State Water Board to review them and award funding, has nearly doubled from an average of 17 months in 2017 to 33 months in 2021. A key reason for this trend is that in recent years, because of a change in state law, the State Water Board's focus has shifted to helping smaller, potentially less sophisticated, water systems. According to State Water Board staff, working with a greater number of smaller water systems has increased its application processing times. Even so, our survey of water systems and observations from our review of a selection of applications indicate that the State Water Board's cumbersome application process, and its lack of sufficient communication and follow-up with water systems, are also contributing factors to funding delays… The longer the State Water Board takes to fund projects, the more expensive the projects become and, more importantly, the greater the likelihood of negative health outcomes for Californians served by failing water systems."
   
2. Recommendations from the State Auditor's report. To increase transparency in the funding process and make its online search tool more useful to water systems applying for funding, the State Auditor's report recommended that by January 2023, the State Water Board update its online search tool for funding applications to include the following:
   
   1. A description of the additional information the State Water Board needs from the water system to continue processing its application;
   2. Any deadlines the State Water Board has issued to the water system to provide additional information;
   3. The cause of any prolonged delays in the process, including the need for reviews by external parties; and,
   4. The date the State Water Board expects to complete its reviews and award funding to the water system.
3. The State Water Board's online funding application search tool. The Division of Financial Assistance at the State Water Board, which assists communities in financing the cost of water infrastructure projects, hosts an online, public-facing funding application search tool. The tool allows users to search the status of drinking water and clean water applications that have been submitted for funding consideration and are under review. Applicants who have received a funding agreement are not included in the search tool.

Through the search tool, a person can search the status of a funding application by applicant, project title, project number, county, district, or region. The search tool denotes whether an application package is incomplete; if a complete application has been received but not reviewed; and, whether complete application packages have been reviewed by staff.

1. This bill. The goal of AB 682 is to implement the recommendations proposed in the July 2022, State Auditor's report. AB 682 does this by requiring the State Water Board to, by January 1, 2025, update its online search tool for funding applications in line with the report’s recommendations. The State Water Board relays that it is currently working, through its Division of Information Technology staff and their contractors, to update the public-facing funding application search tool to incorporate the features recommended by the State Auditor's Office report and anticipates having its online tool in place by summer 2023.

Comments

1. Purpose of Bill. According to the author, "AB 682 is a necessary and common-sense measure to modernize and improve the transparency of the water application process. Access to clean and safe water is not a partisan issue, but a human right, and this bill will help infrastructure developments within the state to ensure that every Californian has access to water."

Related/Prior Legislation

AB 1211 (Mathis, 2023) requires the State Water Board to post at least once annually, instead of biennially, information regarding implementation and expenditures from the DWSRF on its internet website and to send a link for the website to the Legislature. This bill is pending before this Committee.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 7/3/23)

California Municipal Utilities Association

OPPOSITION: (Verified 7/3/23)

None received

ASSEMBLY FLOOR: 79-0, 4/27/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Jim Patterson

Prepared by: Gabrielle Meindl / E.Q. / (916) 651-4108

7/5/23 14:55:46

**** END ****

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Dave Min, Chair

2023 - 2024 Regular

Bill No: AB 682 Hearing Date: June 22, 2023

Subject: State Water Resources Control Board: online search tool: funding applications

BACKGROUND AND EXISTING LAW

The State Water Resource Control Board's (SWRCB) loan and grant application process. Water systems are often eligible for funding from several sources and for different aspects of projects. They may apply for funding to assist in the planning and design or construction of new infrastructure projects, or for the operation and maintenance of existing infrastructure. Water systems may apply for financial assistance for both the design and the construction phases of their projects.

Applications for funding require water systems to provide SWRCB with general project information, as well as information about the project's technical and environmental aspects. The application must also include information about the water system's ability to repay the loan for the project.

SWRCB also provides support and technical assistance to water systems that need assistance with the application process. Once a water system submits an application, a Division of Financial Assistance project manager reviews it for completeness and contacts the applicant to obtain any missing information. Following review of the project submittals, SWRCB determines the amount and source of funding to award the water system. It then drafts a financing agreement for the projects.

State Auditor Report. In July 2022, the Auditor of the State of California released the report, State Water Resources Control Board: It Lacks the Urgency Necessary to Ensure that Failing Water Systems Received Needed Assistance in a Timely Manner. The report, among other things, found that,

“…over the last five years, the average amount of time it took for water systems to complete their applications for these funds, and then for [SWRCB] to review them and award funding, has nearly doubled from an average of 17 months in 2017 to 33 months in 2021. A key reason for this trend is that in recent years, because of a change in state law, [SWRCB]’s focus has shifted to helping smaller, potentially less sophisticated, water systems. According to [SWRCB] staff, working with a greater number of smaller water systems has increased its application processing times. Even so, our survey of water systems and observations from our review of a selection of applications indicate that [SWRCB]’s cumbersome application process, and its lack of sufficient communication and follow‑up with water systems, are also contributing factors to funding delays.”

The report makes a number of recommendations as a result of the audit including, among others, that SWRCB evaluate its progress in meeting its performance goals and assess whether its current staffing levels are sufficient, develop a process to fast-track urgent water projects, review and revise its credit review process, and establish expectations on how quickly initial applications will be renewed. To increase transparency in the funding process and make its online search tool more useful to water systems, the audit recommended that SWRCB update its online search tool for funding applications to include:

• A description of additional information SWRCB needs from the water system to continue processing its application.
• Any deadlines SWRCB has issued to the water system to provide additional information.
• The cause of any prolonged delays in the process, including the need for reviews by external parties.
• The date SWRCB expects to complete its reviews and award funding to the water system.
  

PROPOSED LAW

This bill requires SWRCB to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, all of the following information:

1. A description of the additional information SWRCB requires from a water system to continue processing the water system’s application;
   
2. The date SWRCB requested the water system to provide additional information;
   
3. The cause of any prolonged delays in the process; and,
   
4. A description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application.

ARGUMENTS IN SUPPORT

According to the author, “AB 682 is a necessary and common-sense measure to modernize and improve the transparency of the water application process. Access to clean and safe water is not a partisan issue, but a human right, and this bill will help infrastructure developments within the state to ensure that every Californian has access to water.”

ARGUMENTS IN OPPOSITION

None received

COMMENTS

Double referral. This bill is double referred with the Senate Environmental Quality Committee, with this committee being the committee of second referral. Elements of this bill under the jurisdiction of the Senate Environmental Quality Committee are included here for context and completeness only. The Senate Environmental Quality Committee heard this bill on June 7, 2023, and passed it out of committee with a vote of 7-0.

Bill necessity. AB 682 seeks to implement the State Auditor’s recommendations to update its online search tool for funding applications. However, it appears that SWRCB may already be in the process of updating its online search tool. The online search tool, accessed through the “Mobile Application Project Status Report for public access” quick link on SWRCB’s Financial Assistance page,^[1] provides the status of the “general package”, “technical package”, “environmental package”, and “financial package”. Below is an example of the information available online.

Continued on next page….

As indicated in the example above, the online search tool provides the status of each “package,” as well as whether additional information is being requested by the project manager. The online search tool also indicates the date for “Supervising Engineer Project Approval”, “Draft Agreement Completed”, and “Agreement Mailed to Applicant”, as well as a typical timeline for application. While the bill would also require SWRCB to provide a description of the additional information needed and the cause of any prolonged delays, this information could likely be available by contacting the project manager.

SUPPORT

California Municipal Utilities Association

WateReuse Association

OPPOSITION

None Received

-- END --

1. https://public.waterboards.ca.gov/dfaAppSTAT/ ↑

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Allen, Chair

2023 - 2024 Regular

Bill No: AB 682

SUBJECT: State Water Resources Control Board: online search tool: funding applications

DIGEST: Requires the State Water Resources Control Board (State Water Board) to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, specified information relating to the status of water systems’ funding applications.

ANALYSIS:

Existing law:

1. Authorizes, pursuant to the federal Safe Drinking Water Act (SDWA), 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. (42 United States Code (USC) § 300 (f) et seq.)
2. Provides, under federal Drinking Water State Revolving Fund (DWSRF) statute, financial assistance to help water systems and states achieve the health protection objectives of the SDWA. Requires states to establish a drinking water revolving loan fund to be eligible for a federal DWSRF capitalization grant. (42 USC § 300j-12, et seq.)
3. Establishes the California SDWA and requires the State Water Board to maintain a drinking water program. (Health and Safety Code (HSC) § 116270, et seq.)
4. Establishes the state DWSRF to provide financial assistance for the design and construction of projects for public water systems to meet safe drinking water standards. (HSC §116760, et seq.)
5. Creates the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. (HSC § 116766.)

This bill:

1. Requires the State Water Board to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, all of the following information:
   1. A description of the additional information the State Water Board requires from a water system to continue processing the water system’s application;
   2. The date the State Water Board requested the water system to provide additional information;
   3. The cause of any prolonged delays in the process; and,
   4. A description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application.

Background

1. Public Water Systems. Nearly a million Californians lack access to safe drinking water because they receive water from systems that do not meet water quality standards. The State Water Board regulates the operation of roughly 7,400 public water systems throughout the state and disburses federal and state assistance to help them improve their water quality. According to the State Water’s Board 2022 Drinking Water Needs Assessment, 346 public water systems were identified as failing, 508 as “at-risk”, and an additional 453 as “potentially at-risk”.
   
2. Health effects of drinking water contaminants: The US EPA reports that there is a broad range of health effects associated with exposure to drinking water contaminants. Ingestion or exposure to pathogens at sufficient doses can result in gastrointestinal illness with symptoms such as diarrhea, nausea, stomach cramps, and vomiting. Exposure to higher doses of chemicals, metals, or radionuclides through drinking water can produce biological responses, toxicological effects, and more severe health impacts including cancer, developmental or reproductive effects, neurological effects, and organ damage.
   
3. California's drinking water program. The State Water Board's Division of Drinking Water (DDW) implements and enforces the federal and state Safe Drinking Water Acts, monitors drinking water quality, and issues permits to public water systems throughout the state. The State Water Board establishes maximum contaminant levels (drinking water quality standards, also known as MCLs) for more than 100 substances that are harmful to human health. The DDW's 25 district offices monitor public water systems' compliance with drinking water standards by reviewing and evaluating analytical results of the water samples collected by the water systems. When a water system exceeds MCL standards, the DDW may take enforcement actions, including fines if necessary.
   
4. Funding sources for safe drinking water projects. The State Water Board provides funding and other assistance to water systems for drinking water projects that address or prevent public health risks. The State Water Board's Division of Financial Assistance awarded about $1.7 billion in loan and grant funding for water infrastructure projects-such as constructing water sources, distribution systems, and treatment facilities-and for technical assistance to water systems. The State Water Board relies on funding from several sources to make these awards to water systems and support its safe drinking water programs. For fiscal year 2021-22, federal and state funding available for drinking water programs totaled $1.4 billion. Of that amount, $650 million, or 46 percent, came from a State General Fund appropriation for water system infrastructure. Another $330 million, or 23 percent, came from the DWSRF, and $240 million, or 17 percent, was from state bonds and other special funds. The remainder of its funding is from the Safe and Affordable Drinking Water Fund, established by SB 200 (Monning, Chapter 120, Statutes of 2019), and additional appropriations from the State General Fund.
   
5. The State Water Board's loan and grant application process. Water systems are often eligible for funding from several sources and for different aspects of projects. They may apply for funding to assist in the planning and design or construction of new infrastructure projects, or for the operation and maintenance of existing infrastructure. Water systems may apply for financial assistance for both the design and the construction phases of their projects.

Applications for funding require water systems to provide the State Water Board with general project information, as well as information about the project's technical and environmental aspects. The application must also include information about the water system's ability to repay the loan for the project.

The State Water Board also provides support and technical assistance to water systems that need assistance with the application process. Once a water system submits an application, a Division of Financial Assistance project manager reviews it for completeness and contacts the applicants to obtain any missing information. Following its reviews of the project submittals, the State Water Board determines the amount and source of funding to award the water system. It then drafts a financing agreement for the projects.

1. State Auditor Report. According to a July 2022 report by the Auditor of the State of California, State Water Resources Control Board: It Lacks the Urgency Necessary to Ensure That Failing Water Systems Receive Needed Assistance in a Timely Manner:
   
   "Over the last five years, the average amount of time it took for water systems to complete their applications for these funds, and then for the State Water Board to review them and award funding, has nearly doubled from an average of 17 months in 2017 to 33 months in 2021. A key reason for this trend is that in recent years, because of a change in state law, the State Water Board's focus has shifted to helping smaller, potentially less sophisticated, water systems. According to State Water Board staff, working with a greater number of smaller water systems has increased its application processing times. Even so, our survey of water systems and observations from our review of a selection of applications indicate that the State Water Board's cumbersome application process, and its lack of sufficient communication and follow-up with water systems, are also contributing factors to funding delays… The longer the State Water Board takes to fund projects, the more expensive the projects become and, more importantly, the greater the likelihood of negative health outcomes for Californians served by failing water systems."
   
2. Recommendations from the State Auditor's report. To increase transparency in the funding process and make its online search tool more useful to water systems applying for funding, the State Auditor's report recommended that by January 2023, the State Water Board update its online search tool for funding applications to include the following:
   
   1. A description of the additional information the State Water Board needs from the water system to continue processing its application;
   2. Any deadlines the State Water Board has issued to the water system to provide additional information;
   3. The cause of any prolonged delays in the process, including the need for reviews by external parties; and,
   4. The date the State Water Board expects to complete its reviews and award funding to the water system.
3. The State Water Board's online funding application search tool. The Division of Financial Assistance at the State Water Board, which assists communities in financing the cost of water infrastructure projects, hosts an online, public-facing funding application search tool. The tool allows users to search the status of drinking water and clean water applications that have been submitted for funding consideration and are under review. Applicants who have received a funding agreement are not included in the search tool.

Through the search tool, a person can search the status of a funding application by applicant, project title, project number, county, district, or region. The search tool denotes whether an application package is incomplete; if a complete application has been received but not reviewed; and, whether complete application packages have been reviewed by staff.

1. This bill. The goal of AB 682 is to implement the recommendations proposed in the July 2022, State Auditor's report. AB 682 does this by requiring the State Water Board to, by January 1, 2025, update its online search tool for funding applications in line with the report’s recommendations. The State Water Board relays that it is currently working, through its Division of Information Technology staff and their contractors, to update the public-facing funding application search tool to incorporate the features recommended by the State Auditor's Office report and anticipates having its online tool in place by summer 2023.
   
   

Comments

1. Purpose of Bill. According to the author, "AB 682 is a necessary and common-sense measure to modernize and improve the transparency of the water application process. Access to clean and safe water is not a partisan issue, but a human right, and this bill will help infrastructure developments within the state to ensure that every Californian has access to water."
   

Related/Prior Legislation

AB 1211 (Mathis). Requires the State Water Board to post at least once annually, instead of biennially, information regarding implementation and expenditures from the DWSRF on its internet website and to send a link for the website to the Legislature. This bill is pending before this Committee.

SOURCE:

Author

SUPPORT:

California Municipal Utilities Association

OPPOSITION:

None received

-- END --

Date of Hearing: April 19, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 682

Author:(Mathis) – As Amended Ver:March 20, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the State Water Resources Control Board (State Water Board) to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, a description of the additional information the State Water Board requires from a water system to continue processing the water system’s application; the date the State Water Board requested the water system to provide additional information; the cause of any prolonged delays in the process; and a description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application.

FISCAL EFFECT:

The State Water Board estimates costs to be minor and absorbable.

COMMENTS:

1) Purpose. According to the author:

AB 682 is a necessary and common-sense measure to modernize and improve the transparency of the water application process. Access to clean and safe water is not a partisan issue, but a human right, and this bill will help infrastructure developments within the state to ensure that every Californian has access to water.

2) Public Water Systems. Nearly a million Californians lack access to safe drinking water because they receive water from systems that do not meet water quality standards. The State Water Board regulates the operation of roughly 7,400 public water systems throughout the state and disburses federal and state assistance to help them improve their water quality. According to the State Water’s Board 2022 Drinking Water Needs Assessment, 346 public water systems were identified as failing, 508 as “at-risk”, and an additional 453 as “potentially at-risk”.

3) Funding for Drinking Water Systems. A 2022 State Auditor report, “State Water Resources Control Board: It Lacks the Urgency Necessary to Ensure That Failing Water Systems Receive Needed Assistance in a Timely Manner”, notes that from July 2016 through December 2021, the State Water Board’s Division of Financial Assistance awarded about $1.7 billion in loan and grant funding for water infrastructure projects, such as constructing water sources, distribution systems, and treatment facilities, and for technical assistance to water systems. For fiscal year (FY) 2021-22, federal and state funding available for drinking water programs totaled $1.4 billion. Of that amount, $650 million came from a state General Fund appropriation for water system infrastructure, $330 million came from the Drinking Water State Revolving Fund, and $240 million came from state bonds and other special funds. The remainder of the funding came from the Safe and Affordable Drinking Water Fund and additional appropriations from the General Fund.

4) State Auditor Recommendations. In its July 2022 report, the State Auditor found that over the last five years, the average amount of time it took for water systems to complete their applications for state funds, and then for the State Water Board to review applications and award funding, has nearly doubled from an average of 17 months in 2017 to 33 months in 2021. To increase transparency in the funding process and make its online search tool more useful to water systems applying for funding, the report recommended that by January 2023, the State Water Board update its online search tool for funding applications to include the following:

1. A description of the additional information the State Water Board needs from the water system to continue processing its application.
2. Any deadlines the State Water Board has issued to the water system to provide additional information.
3. The cause of any prolonged delays in the process, including the need for reviews by external parties.
4. The date the State Water Board expects to complete its reviews and award funding to the water system.
   

The author’s goal with this bill is to implement the recommendations proposed in the State Auditor’s report. The State Water Board relays it is working to update its public-facing funding application search tool to incorporate the features recommended by the State Auditor and expects to have its updated online tool in place by summer of 2023.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: March 28, 2023

ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS

Alex Lee, Chair

ABPCA Bill Id:AB 682 (

Author:Mathis) – As Amended Ver:March 20, 2023

SUBJECT: State Water Resources Control Board: online search tool: funding applications

SUMMARY: Requires the State Water Resources Control Board (State Water Board) to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, specified information relating to the status of water systems’ funding applications. Specifically, this bill:

1. Requires the State Water Board to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, all of the following information:
   1. A description of the additional information the State Water Board requires from a water system to continue processing the water system’s application;
   2. The date the State Water Board requested the water system to provide additional information;
   3. The cause of any prolonged delays in the process; and,
   4. A description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application.

EXISTING LAW:

1. Authorizes, pursuant to the federal Safe Drinking Water Act (SDWA), 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. (42 United States Code (USC) § 300 (f) et seq.)
2. Provides, under federal Drinking Water State Revolving Fund (DWSRF) statute, financial assistance to help water systems and states achieve the health protection objectives of the SDWA. Requires states to establish a drinking water revolving loan fund to be eligible for a federal DWSRF capitalization grant. (42 USC § 300j-12, et seq.)
3. Establishes as 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. Requires all relevant state agencies to consider the human right to water state policy when revising, adopting, or establishing policies, regulations, and grant criteria when those policies, regulations, and criteria are pertinent to the uses of water. (Water Code § 106.3)
4. Establishes the California SDWA and requires the State Water Board to maintain a drinking water program. (Health and Safety Code (HSC) § 116270, et seq.)
5. Defines a "public water system" as a system for the provision of water for human consumption through pipes or other constructed conveyances that has 15 or more service connections or regularly serves at least 25 individuals daily at least 60 days out of the year. (HSC § 116275)
6. Establishes the state DWSRF to provide financial assistance for the design and construction of projects for public water systems to meet safe drinking water standards. (HSC §116760, et seq.)
7. Creates the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. (HSC § 116766.)

FISCAL EFFECT: Unknown.

COMMENTS:

Need for the bill: According to the author, "AB 682 is a necessary and common-sense measure to modernize and improve the transparency of the water application process. Access to clean and safe water is not a partisan issue, but a human right, and this bill will help infrastructure developments within the state to ensure that every Californian has access to water."

Human right to water: In 2012, by enacting Assembly Bill (AB) 685 (Eng, Chapter 524, Statutes of 2012), California became the first state with a Human Right to Water law. AB 685 establishes as state policy that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitation. Water supply issues, contaminants, costs of treatment and distribution systems, climate change, the number and nature of small public water systems, especially in disadvantaged communities, and many other factors continue to challenge progress in implementing the Human Right to Water goals.

Drinking water systems in California: According to a July 2022 report by the Auditor of the State of California, State Water Resources Control Board: It Lacks the Urgency Necessary to Ensure That Failing Water Systems Receive Needed Assistance in a Timely Manner, "California is one of the most prosperous states in the country, and yet, fundamental inequities still exist, including access to safe drinking water. In fact, nearly a million Californians lack access to safe drinking water because they receive water from systems that do not meet water quality standards. The [State Water Board] regulates the operation of roughly 7,400 drinking water systems throughout the State and disburses federal and state assistance to help them improve their water quality. As of December 2021, the State Water Board reported that more than 370 water systems were classified as failing water systems because they exceeded the maximum contaminant levels for safe drinking water. These failing water systems provide water to more than 920,000 people. Nearly 240 of these water systems have been failing for at least three years, and more than 150 have been failing for five years. Further, for 2022, the State Water Board’s data show that an additional 432 water systems serving more than 1 million people are at risk of failing."

Health effects of drinking water contaminants: The US EPA reports that there is a broad range of health effects associated with exposure to drinking water contaminants. Ingestion or exposure to pathogens at sufficient doses can result in gastrointestinal illness with symptoms such as diarrhea, nausea, stomach cramps, and vomiting. Exposure to higher doses of chemicals, metals, or radionuclides through drinking water can produce biological responses, toxicological effects, and more severe health impacts including cancer, developmental or reproductive effects, neurological effects, and organ damage.

California’s drinking water program: As outlined in the California State Auditor’s July 2022, report, the State Water Board’s Division of Drinking Water (DDW) implements and enforces the federal and state Safe Drinking Water Acts, monitors drinking water quality, and issues permits to public water systems throughout the state. The State Water Board establishes maximum contaminant levels (drinking water quality standards, also known as MCLs) for more than 100 substances that are harmful to human health. The DDW’s 25 district offices monitor public water systems’ compliance with drinking water standards by reviewing and evaluating analytical results of the water samples collected by the water systems. When a water system exceeds MCL standards, the DDW may take enforcement actions, including fines if necessary.

Funding sources for safe drinking water projects: The State Water Board provides funding and other assistance to water systems for drinking water projects that address or prevent public health risks. The State Auditor’s report notes that from July 2016 through December 2021, the State Water Board’s Division of Financial Assistance awarded about $1.7 billion in loan and grant funding for water infrastructure projects—such as constructing water sources, distribution systems, and treatment facilities—and for technical assistance to water systems. The State Water Board relies on funding from several sources to make these awards to water systems and support its safe drinking water programs. For fiscal year 2021–22, federal and state funding available for drinking water programs totaled $1.4 billion. Of that amount, $650 million, or 46 percent, came from a State General Fund appropriation for water system infrastructure. Another $330 million, or 23 percent, came from the DWSRF, and $240 million, or 17 percent, was from state bonds and other special funds. The remainder of its funding is from the Safe and Affordable Drinking Water Fund, established by SB 200 (Monning, Chapter 120, Statutes of 2019), and additional appropriations from the State General Fund.

The State Water Board’s loan and grant application process: As described by the State Auditor’s report, water systems are often eligible for funding from several sources and for different aspects of projects. They may apply for funding to assist in the planning and design or construction of new infrastructure projects, or for the operation and maintenance of existing infrastructure. Water systems may apply for financial assistance for both the design and the construction phases of their projects.

Applications for funding require water systems to provide the State Water Board with general project information, as well as information about the project’s technical and environmental aspects. The application must also include information about the water system’s ability to repay the loan for the project.

The State Water Board also provides support and technical assistance to water systems that need assistance with the application process. Once a water system submits an application, a Division of Financial Assistance project manager reviews it for completeness and contacts the applicants to obtain any missing information. Following its reviews of the project submittals, the State Water Board determines the amount and source of funding to award the water system. It then drafts a financing agreement for the projects.

State Auditor’s findings: In its July 2022 report, the State Auditor stated that, "Over the last five years, the average amount of time it took for water systems to complete their applications for these funds, and then for the State Water Board to review them and award funding, has nearly doubled from an average of 17 months in 2017 to 33 months in 2021. A key reason for this trend is that in recent years, because of a change in state law, the State Water Board’s focus has shifted to helping smaller, potentially less sophisticated, water systems. According to State Water Board staff, working with a greater number of smaller water systems has increased its application processing times. Even so, our survey of water systems and observations from our review of a selection of applications indicate that the State Water Board’s cumbersome application process, and its lack of sufficient communication and follow-up with water systems, are also contributing factors to funding delays… The longer the State Water Board takes to fund projects, the more expensive the projects become and, more importantly, the greater the likelihood of negative health outcomes for Californians served by failing water systems."

Recommendations from the State Auditor’s report: To increase transparency in the funding process and make its online search tool more useful to water systems applying for funding, the State Auditor’s report recommended that by January 2023, the State Water Board update its online search tool for funding applications to include the following:

1. A description of the additional information the State Water Board needs from the water system to continue processing its application;
2. Any deadlines the State Water Board has issued to the water system to provide additional information;
3. The cause of any prolonged delays in the process, including the need for reviews by external parties; and,
4. The date the State Water Board expects to complete its reviews and award funding to the water system.

The State Water Board’s online funding application search tool: The Division of Financial Assistance at the State Water Board, which assists communities in financing the cost of water infrastructure projects, hosts an online, public-facing funding application search tool. The tool allows users to search the status of drinking water and clean water applications that have been submitted for funding consideration and are under review. Applicants who have received a funding agreement are not included in the search tool.

Through the search tool, a person can search the status of a funding application by applicant, project title, project number, county, district, or region. The search tool denotes whether an application package is incomplete; if a complete application has been received but not reviewed; and, whether complete application packages have been reviewed by staff.

This bill: The goal of AB 682 is to implement the recommendations proposed in the July 2022, State Auditor’s report. AB 682 does this by requiring the State Water Board to, by January 1, 2025, update its online search tool for funding applications to include, at a minimum, a description of the additional information the State Water Board requires from a water system to continue processing the water system’s application; the date the State Water Board requested the water system to provide additional information; the cause of any prolonged delays in the process; and, a description of the typical steps that must be completed before a funding agreement can be executed after receipt of a complete application.

The State Water Board relays that it is currently working, though its Division of Information Technology staff and their contractors, to update the public-facing funding application search tool to incorporate the features recommended by the State Auditor's Office in their July 2022 report. The State Water Board expects to have its online tool in place by summer 2023.

Related legislation:

AB 1211 (Mathis). Requires the State Water Board to post at least once annually, instead of biennially, information regarding implementation and expenditures from the DWSRF on its internet website and to send a link for the website to the Legislature. This bill is pending before the Assembly Environmental Safety and Toxic Materials Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Municipal Utilities Association

Opposition

None on file.

Analysis Prepared by: Shannon McKinney / E.S. & T.M. /