California Assembly Bill AB1527 Amended / Bill

 BILL NUMBER: AB 1527AMENDED BILL TEXT AMENDED IN SENATE JUNE 26, 2014 AMENDED IN SENATE JUNE 9, 2014 AMENDED IN ASSEMBLY APRIL 9, 2014 AMENDED IN ASSEMBLY MARCH 17, 2014 INTRODUCED BY Assembly Member Perea JANUARY 17, 2014 An act to amend Section  116326   116760.70  of the Health and Safety  Code, and to amend Section 75125 of, and to add Section 75129.5 to, the Public Resources  Code, relating to public water systems. LEGISLATIVE COUNSEL'S DIGEST AB 1527, as amended, Perea. Public water systems:  drinking water.   Safe Drinking Water State Revolving Fund.   Existing law, the Safe Drinking Water State Revolving Fund Law of 1997, establishes the Safe Drinking Water State Revolving Fund to provide grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards. Existing law, operative July 1, 2014, requires the State Water Resources Control Board to implement this law pursuant to the adoption of a policy handbook. Existing law, operative on July 1, 2014, and repealed as of January 1 of the next calendar year occurring after the board provides notice to the Legislature and the Secretary of State and posts notice on its Internet Web site that the board has adopted a policy handbook, requires the board to establish a priority list of proposed projects to be considered for funding.   This bill would require the board to give priority to funding the consolidation of public water systems based upon a service review developed by a local agency formation commission.   Existing law, known as the California Safe Drinking Water Act, requires the State Department of Public Health to administer provisions relating to the regulation of drinking water to protect public health, including, but not limited to, administering programs to fund improvements and expansion of small community water systems using specified priorities. Existing law requires the department to encourage the consolidation of small community water systems that serve disadvantaged communities if consolidation will help the affected agencies and the state meet specified goals. Existing law allows funding of studies regarding the feasibility of consolidating 2 or more community water systems, at least one of which is a small community water system that serves a disadvantaged community, and requires the department to give funding priority to projects that involve the physical restructuring of 2 or more community water systems, as specified, when it is shown that the consolidation would further specified goals.   This bill would require the department, in administering programs to fund improvements and expansions of small community water systems and other water systems, as specified, to promote service delivery alternatives that improve efficiency and affordability of infrastructure and service delivery, as specified.   The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006, an initiative measure, provides funding for safe drinking water, water quality and supply, flood control, natural resource protection, and park improvements. Existing law establishes the Strategic Growth Council and appropriates $500,000 from the funding provided by the initiative to support the council and its activities. Existing law requires the council to manage and award grants and loans to support the planning and development of sustainable communities, as specified.   This bill would require the council to manage and award financial assistance to a city, county, local agency formation commission, special district, nonprofit organization, or joint powers authority or joint powers agency for the preparation, planning, and implementation of a public water system consolidation, merger, or extension of services project for the purposes of promoting water conservation, and would require that the financial assistance be provided from available moneys pursuant to a specified provision of the bond act described above.  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.   Section 116760.70 of the   Health and Safety Code   is amended to read:  116760.70. (a) The board, after public notice and opportunity for comment, shall, from time to time, establish a priority list of proposed projects to be considered for funding under this chapter. In doing so, the board shall determine if improvement or rehabilitation of the public water system is necessary to provide pure, wholesome, and potable water in adequate quantity and at sufficient pressure for health, cleanliness, and other domestic purposes. The board shall establish criteria for placing public water systems on the priority list for funding that shall include criteria for priority list categories. Priority shall be given to projects that meet all of the following requirements: (1) Address the most serious risk to human health. (2) Are necessary to ensure compliance with requirements of Chapter 4 (commencing with Section 116270) including requirements for filtration. (3) Assist systems most in need on a per household basis according to affordability criteria. (b) The board may, in establishing a new priority list, merge those proposed projects from the existing priority list into the new priority list. (c) In establishing the priority list, the board shall consider the system's implementation of an ongoing source water protection program or wellhead protection program. (d) In establishing the priority list categories and the priority for funding projects, the board shall carry out the intent of the Legislature pursuant to subdivisions (f) to (i), inclusive, of Section 116760.10 and do all of the following: (1) Give priority to upgrade an existing system to meet drinking water standards. (2) After giving priority pursuant to paragraph (1), consider whether the applicant has sought other funds when providing funding for a project to upgrade an existing system and to accommodate a reasonable amount of growth. (e) Consideration of an applicant's eligibility for funding shall initially be based on the priority list in effect at the time the application is received and the project's ability to proceed. If a new priority list is established during the time the application is under consideration, but before the applicant receives a letter of commitment, the board may consider the applicant's eligibility for funding based on either the old or new priority list. (f) The board may change the ranking of a specific project on the priority lists at any time following the publication of the list if information, that was not available at the time of the publication of the list, is provided that justifies the change in the ranking of the project. (g) The board shall provide one or more public hearings on the Intended Use Plan, the priority list, and the criteria for placing public water systems on the priority list. The board shall adopt an Intended Use Plan and provide notice of the Intended Use Plan, criteria, and priority list not less than 30 days before the adoption of the Intended Use Plan. The Intended Use Plan, criteria, and priority list shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.  (h) The board shall give priority funding to the consolidation of public water systems based upon a service review developed by a local agency formation commission pursuant to Section 56430 of the Government Code.   (h)   (i)  The requirements of this section do not constitute an adjudicatory proceeding as defined in Section 11405.20 of the Government Code and Section 11410.10 of the Government Code is not applicable.  (i)   (j)  This section shall become operative on July 1, 2014, and is repealed as of January 1 of the next calendar year occurring after the board provides notice to the Legislature and the Secretary of State and posts notice on its Internet Web site that the board has adopted a policy handbook pursuant to Section 116760.43.  SECTION 1.   It is the intent of the Legislature to encourage local agency formation commissions to focus on the consolidation, merger, or extension of public water systems as appropriate, especially those located in disadvantaged communities, by seeking financial assistance in order to perform the necessary service reviews and other appropriate studies.   SEC. 2.   Section 116326 of the Health and Safety Code is amended to read: 116326. (a) In administering programs to fund improvements and expansions of small community water systems and, pursuant to subdivision (b), other water systems, the department shall do all of the following: (1) Give priority to funding projects in disadvantaged communities. (2) Promote service delivery alternatives that improve efficiency and affordability of infrastructure and service delivery, including, but not limited to, the consolidation of governmental agencies, consolidation of water systems, and the extension of services, in and to disadvantaged communities, where service delivery options will help affected agencies, communities, and the state to meet two or more of the following goals: (A) Improvement in the quality of water delivered. (B) Improvement in the reliability of water delivery. (C) Reduction in the cost of drinking water for ratepayers. (3) Pursuant to paragraph (2) of subdivision (a), for a project to be considered for funding, require that feasibility studies performed prior to a construction project include studies of service delivery alternatives that improve efficiency and affordability of capital improvements and service delivery, if at least one of the potentially affected agencies serves, or would serve by way of an extraterritorial service extension, a disadvantaged community, unless the department makes a written determination that the service delivery alternatives are not feasible under the circumstances. In making this determination, the department shall do all of the following: (A) Review and consider the determinations and recommendations made by the affected local agency formation commission within the previous five calendar years in any of the following: (i) A special study conducted pursuant to Section 56378 of the Government Code. (ii) A sphere of influence study conducted pursuant to Section 56425 of the Government Code. (iii) A service review conducted pursuant to Section 56430 of the Government Code. (B) Consult with the executive officer of the affected local agency formation commission to determine whether any circumstances have changed since the studies and review conducted pursuant to subparagraph (A) were completed or if there is any additional information that would assist the department in its determination. (C) Review and consider the conclusions and recommendations of other local and regional studies designed to develop and identify regional solutions for drinking water delivery. (4) If it is shown that an alternative service delivery option will further the goals of paragraph (2) of subdivision (a), fund construction projects that include the alternative service delivery option, unless the department makes a written determination that the alternative service delivery option is not feasible under the circumstances. (b) If an applicant submits an application that includes a service delivery alternative that furthers the goals specified in paragraph (2) of subdivision (a), the applicant need not be a small community water system and the department may increase priority of the application.   SEC. 3.   Section 75125 of the Public Resources Code is amended to read: 75125. The council shall do all of the following: (a) Identify and review activities and funding programs of member state agencies that may be coordinated to improve air and water quality, improve natural resource protection, increase the availability of affordable housing, improve transportation, meet the goals of the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code), encourage sustainable land use planning, and revitalize urban and community centers in a sustainable manner. At a minimum, the council shall review and comment on the five-year infrastructure plan developed pursuant to Article 2 (commencing with Section 13100) of Chapter 2 of Part 3 of Division 3 of the Government Code and the State Environmental Goals and Policy Report developed pursuant to Section 65041 of the Government Code. (b) Recommend policies and investment strategies and priorities to the Governor, the Legislature, and to appropriate state agencies to encourage the development of sustainable communities, such as those communities that promote equity, strengthen the economy, protect the environment, and promote public health and safety, consistent with subdivisions (a) and (c) of Section 75065. (c) Provide, fund, and distribute data and information to local governments and regional agencies that will assist in developing and planning sustainable communities. (d) Manage and award grants and loans to support the planning and development of sustainable communities, pursuant to Sections 75127, 75128, 75129, and 75129.5. To implement this subdivision, the council may do all of the following: (1) Develop guidelines for awarding financial assistance, including criteria for eligibility and additional consideration. (2) Develop criteria for determining the amount of financial assistance to be awarded. The council shall award a revolving loan to an applicant for a planning project, unless the council determines that the applicant lacks the fiscal capacity to carry out the project without a grant. The council may establish criteria that would allow the applicant to illustrate an ongoing commitment of financial resources to ensure the completion of the proposed plan or project. (3) Provide for payments of interest on loans made pursuant to this article. The rate of interest shall not exceed the rate earned by the Pooled Money Investment Board. (4) Provide for the time period for repaying a loan made pursuant to this article. (5) Provide for the recovery of funds from an applicant that fails to complete the project for which financial assistance was awarded. The council shall direct the Controller to recover funds by any available means. (6) Provide technical assistance for application preparation. (7) Designate a state agency or department to administer technical and financial assistance programs for the disbursing of grants and loans to support the planning and development of sustainable communities, pursuant to Sections 75127, 75128, 75129, and 75129.5. (e) (1) No later than July 1, of each year, provide a report to the Legislature that shall include, but is not limited to, all of the following: (A) A list of applicants for financial assistance. (B) Identification of which applications were approved. (C) The amounts awarded for each approved application. (D) The remaining balance of available funds. (E) A report on the proposed or ongoing management of each funded project. (F) Any additional minimum requirements and priorities for a project or plan proposed in a grant or loan application developed and adopted by the council pursuant to subdivision (c) of Section 75126. (2) A report submitted pursuant to paragraph (1) shall be submitted in accordance with Section 9795 of the Government Code.   SEC. 4.   Section 75129.5 is added to the Public Resources Code, to read: 75129.5. To support the planning and development of sustainable communities, the council shall manage and award financial assistance to a city, county, local agency formation commission, special district, nonprofit organization, or joint powers authority or joint powers agency, if at least one of the parties to the joint powers agreement qualifies as an eligible applicant, for the preparation, planning, and implementation of a public water system consolidation, merger, or extension of services project for the purposes of promoting water conservation. The financial assistance provided pursuant to this section shall be funded from moneys made available pursuant to subdivision (c) of Section 75065. The council shall give priority to funding projects proposed by a disadvantaged community.