BILL NUMBER: AB 964AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 13, 2011 AMENDED IN ASSEMBLY MARCH 17, 2011 INTRODUCED BY Assembly Member Huffman FEBRUARY 18, 2011 An act to add Section 13481.6 to the Water Code, relating to water pollution. LEGISLATIVE COUNSEL'S DIGEST AB 964, as amended, Huffman. State Water Pollution Control Revolving Fund: onsite sewer improvement projects. Existing law continuously appropriates state and federal funds in the State Water Pollution Control Revolving Fund to the State Water Resources Control Board to provide financial assistance for the construction of publicly owned treatment works by a municipality, the implementation of a specified management program, the development and implementation of a specified conservation and management plan, and other related purposes in accordance with the federal Clean Water Act and the state Porter-Cologne Water Quality Control Act. This bill would require financial assistance provided from the fund for onsite sewer improvements, as defined, to be provided only for projects for which a public agency has adopted a sewer system management plan, as defined, that includes a prescribed 10-year plan for sewer upgrades. The bill, commencing January 1,2014,2013, would require a public agency receiving financial assistance from the fund for that purpose to report annually to the board on its progress with respect to developing and implementing a 10-year plan for sewer upgrades. The bill also would make legislative findings and declarations related to water quality and financing onsite sewer system improvements. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) The frequency and size of sewage spills of raw or partially treated sewage is often a result of aging sewer systems and a lack of maintenance on leaky and dilapidated infrastructure. (b) Sewage spills also occur due to rainstorms infiltrating and overcoming poorly maintained or outdated systems. (c) Sewage spills cause significant economic damage; they cause fishery closures, hurt the tourism industry, create unsafe swimming conditions, result in closed beaches, and cost ratepayers millions of dollars annually to abate and clean up. (d) Sewage spills result in significant contamination of the environment. The state's waterways are part of critically important ecosystems that support large numbers of birds, fish, and other wildlife, including, but not limited to, many threatened and endangered species. Sewage contamination threatens these ecosystems when it escapes public sewer systems. (e) Public agencies are often challenged with the high cost of maintenance and repair of sewer lines, and often have limited authority over private sewer lines that feed into public sewer systems. (f) Sewage from improperly designed, located, constructed, or maintained septic systems can leak bacteria, viruses, household chemicals, and other contaminants causing or contributing to serious water quality problems. (g) Waiting until properties change ownership does not address in a timely manner the need to rehabilitate aged and leaking private sewer laterals or needed conversions from septic systems to the public sewer system.(f)(h) Establishment of a 10-year plan to maintain and improve public and private sewer infrastructure will helppreventprotect surface water and groundwater, including preventing sewage spills caused by stormwater intrusion into sewer collection systems. SEC. 2. Section 13481.6 is added to the Water Code, to read: 13481.6. (a) The Legislature finds and declares all of the following: (1) It is the intent of the Legislature to address water quality needs throughout California by permitting voluntary individual sewer improvements that provide a public benefit. The Legislature further intends that this chapter should be used to finance the installation of onsite sewer improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property, including installation of improvements to, and replacements of, existing onsite sewer facilities served by a community sewer system or a septic conversion . (2) To improve the quality of surface water and groundwater, necessary efforts include the promotion of onsite sewer improvements that provide a public benefit in preventing water quality degradation. (3) The upfront cost ofrehabilitating and replacing existing sewer lateralsmaking needed improvements to, or replacements of, existing sewer laterals, or septic conversion, prevents many property owners from making those improvements. To make those improvements more affordable and to promote the installation of those improvements, it is necessary for the board to give favorable consideration to an alternative procedure to finance the cost of onsite sewer improvements. (4) A public purpose will be served by a locally administered low-cost loan program that provides the legislative body of a public agency with the authority to finance the installation of onsite sewer improvements that are permanently fixed to residential, commercial, industrial, agricultural, or other real property. (b) For purposes of this section, the following terms have the following meanings: (1) "Onsite sewer improvements" means permanent sewer improvements fixed to real property that convey sewage from the property's interior plumbing to the point of discharge into the public agency's sewer facilities, and may include, but is not limited to, pipes, pumps, other equipment, sewer laterals, or one-time charges for sewage treatment capacity associated with the improvements. Onsite sewerandimprovements may be installed to modify or replace existing onsite sewer improvements. "Onsite sewer improvements" may include, if appropriate, septic conversions. (2) "Public agency" means a city, county, city and county, municipal utility district, community services district, sanitary district, sanitation district, or water district as defined in Section 20200. (3) "Septic conversion" means the conversion of a residential, commercial, industrial, agricultural, or other real property from an onsite septic system to a community sewer collection service, and may include related septic system abandonment.(3)(4) "Sewer system management plan" is a system-specific plan that meets the requirements of the Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (Order No. 2006-0003-DWQ of the State Water Resources Control Board), as that order may be amended.(4)(5) "Ten-year plan for sewer upgrades" means a plan that includes, but need not be limited to, all of the following: (A) An evaluation that identifies and prioritizes the areas where onsite sewer improvements are needed in order to prevent, withinten10 years, sanitary sewer overflows due toexcessive infiltration and inflow through cracked and leaking sewer laterals.aging, cracked, and leaking sewer laterals. If a public agency intends to provide financial assistance for septic conversions, the evaluation shall also identify and prioritize areas where septic conversions are needed to protect surface water or groundwater. (B) Strategies for public outreach to private property ownersto make repairs to, or replacement of, as necessary, private sewers lateralsregarding the critical importance of properly designed, located, constructed, and maintained onsite sewer improvements for the purpose of prevention or abatement of sewage contamination. Outreach shall include, but shall not be limited to, providing information about financingoptions. The information shall address the possibility of loans between the property owners and the agency.options for owners who wish to make repairs to, or replace, as necessary, private sewer laterals. If the local agency has identified in its 10-year plan where septic conversions are needed, outreach shall also include information regarding financing options for septic conversions. If the publ ic agency has received financial assistance from the fund, outreach information shall address the possibility of low-cost loans between the property owners and the agency. (C) Guidelines for managing and accounting for funding made available to property owners for the purposes oflateral repairs or replacementsonsite sewer improvements . The guidelines may authorize the property owner to purchase directly the related equipment and materials for the installation of onsite sewerand septicimprovements and to contract directly for the installation of onsite sewer improvements that are permanently fixed to the property owner's residential, commercial, industrial, agricultural, or other real property. (c) Financial assistance provided from the fund for purposes of onsite sewer improvements shall be provided only for projects for which a public agency has adopted a sewer system management plan that, in addition to other applicable requirements, includes a 10-year plan for sewer upgrades. (d) Commencing January 1,2014,2013, a public agency receiving financial assistance in accordance with subdivision (c) shall report annually to the board on the progress of developing and implementing theten-year10-year plan for sewer upgrades.