California 2019-2020 Regular Session

California Senate Bill SB1280 Compare Versions

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1-Amended IN Senate April 01, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 1280Introduced by Senator MonningFebruary 21, 2020 An act to amend Sections 116681 and 116682 of the Health and Safety Code, relating to drinking water. LEGISLATIVE COUNSEL'S DIGESTSB 1280, as amended, Monning. Drinking water: consolidation and extension of service: at-risk water systems.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 contract with, or provide a grant to, an administrator to provide administrative, technical, operational, legal, or managerial services, or any combination of those services, to a designated water system to assist with the provision of an adequate supply of affordable, safe drinking water. The act authorizes the state board to order consolidation with, or extension of service from, a receiving water system if a public water system or state small water system serving a disadvantaged community consistently fails to provide an adequate supply of safe drinking water or if a disadvantaged community is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water. The act requires the state board, no later than July 1, 2020, to develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation.This bill would authorize the state board to order consolidation between a receiving water system and an at-risk water system, as defined, upon receipt of a petition that substantially conforms to the above-referenced policy adopted by the state board and that is either approved by the water systems governing body or signed by at least 30% of the households served by the water system. For purposes of that provision, the bill would authorize the state board to contract with a technical assistance provider or appoint an administrator to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 116681 of the Health and Safety Code is amended to read:116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following: serving a disadvantaged community, a state small water system serving a disadvantaged community, or a public water system or state small water system serving a mobilehome park, if the public water system or state small water system is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(e) 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.(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(n) State small water system has the same meaning as provided in Section 116275.(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells 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) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
1+CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 1280Introduced by Senator MonningFebruary 21, 2020 An act to amend Sections 116681 and 116682 of the Health and Safety Code, relating to drinking water. LEGISLATIVE COUNSEL'S DIGESTSB 1280, as introduced, Monning. Drinking water: consolidation and extension of service: at-risk water systems.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 contract with, or provide a grant to, an administrator to provide administrative, technical, operational, legal, or managerial services, or any combination of those services, to a designated water system to assist with the provision of an adequate supply of affordable, safe drinking water. The act authorizes the state board to order consolidation with, or extension of service from, a receiving water system if a public water system or state small water system serving a disadvantaged community consistently fails to provide an adequate supply of safe drinking water or if a disadvantaged community is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water. The act requires the state board, no later than July 1, 2020, to develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation.This bill would authorize the state board to order consolidation between a receiving water system and an at-risk water system, as defined, upon receipt of a petition that substantially conforms to the above-referenced policy adopted by the state board and that is either approved by the water systems governing body or signed by at least 30% of the households served by the water system. For purposes of that provision, the bill would authorize the state board to contract with a technical assistance provider or appoint an administrator to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 116681 of the Health and Safety Code is amended to read:116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(c)(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(d)(e) 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.(e)(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(f)(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(g)(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(h)(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(i)(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(j)(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(k)(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(l)(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(m)(n) State small water system has the same meaning as provided in Section 116275.(n)(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells 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) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided for in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves students pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
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3- Amended IN Senate April 01, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 1280Introduced by Senator MonningFebruary 21, 2020 An act to amend Sections 116681 and 116682 of the Health and Safety Code, relating to drinking water. LEGISLATIVE COUNSEL'S DIGESTSB 1280, as amended, Monning. Drinking water: consolidation and extension of service: at-risk water systems.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 contract with, or provide a grant to, an administrator to provide administrative, technical, operational, legal, or managerial services, or any combination of those services, to a designated water system to assist with the provision of an adequate supply of affordable, safe drinking water. The act authorizes the state board to order consolidation with, or extension of service from, a receiving water system if a public water system or state small water system serving a disadvantaged community consistently fails to provide an adequate supply of safe drinking water or if a disadvantaged community is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water. The act requires the state board, no later than July 1, 2020, to develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation.This bill would authorize the state board to order consolidation between a receiving water system and an at-risk water system, as defined, upon receipt of a petition that substantially conforms to the above-referenced policy adopted by the state board and that is either approved by the water systems governing body or signed by at least 30% of the households served by the water system. For purposes of that provision, the bill would authorize the state board to contract with a technical assistance provider or appoint an administrator to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
3+ CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 1280Introduced by Senator MonningFebruary 21, 2020 An act to amend Sections 116681 and 116682 of the Health and Safety Code, relating to drinking water. LEGISLATIVE COUNSEL'S DIGESTSB 1280, as introduced, Monning. Drinking water: consolidation and extension of service: at-risk water systems.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 contract with, or provide a grant to, an administrator to provide administrative, technical, operational, legal, or managerial services, or any combination of those services, to a designated water system to assist with the provision of an adequate supply of affordable, safe drinking water. The act authorizes the state board to order consolidation with, or extension of service from, a receiving water system if a public water system or state small water system serving a disadvantaged community consistently fails to provide an adequate supply of safe drinking water or if a disadvantaged community is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water. The act requires the state board, no later than July 1, 2020, to develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation.This bill would authorize the state board to order consolidation between a receiving water system and an at-risk water system, as defined, upon receipt of a petition that substantially conforms to the above-referenced policy adopted by the state board and that is either approved by the water systems governing body or signed by at least 30% of the households served by the water system. For purposes of that provision, the bill would authorize the state board to contract with a technical assistance provider or appoint an administrator to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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5- Amended IN Senate April 01, 2020
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7-Amended IN Senate April 01, 2020
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99 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
1010
1111 Senate Bill
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1313 No. 1280
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1515 Introduced by Senator MonningFebruary 21, 2020
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1717 Introduced by Senator Monning
1818 February 21, 2020
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2020 An act to amend Sections 116681 and 116682 of the Health and Safety Code, relating to drinking water.
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2222 LEGISLATIVE COUNSEL'S DIGEST
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2424 ## LEGISLATIVE COUNSEL'S DIGEST
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26-SB 1280, as amended, Monning. Drinking water: consolidation and extension of service: at-risk water systems.
26+SB 1280, as introduced, Monning. Drinking water: consolidation and extension of service: at-risk water systems.
2727
2828 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 contract with, or provide a grant to, an administrator to provide administrative, technical, operational, legal, or managerial services, or any combination of those services, to a designated water system to assist with the provision of an adequate supply of affordable, safe drinking water. The act authorizes the state board to order consolidation with, or extension of service from, a receiving water system if a public water system or state small water system serving a disadvantaged community consistently fails to provide an adequate supply of safe drinking water or if a disadvantaged community is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water. The act requires the state board, no later than July 1, 2020, to develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation.This bill would authorize the state board to order consolidation between a receiving water system and an at-risk water system, as defined, upon receipt of a petition that substantially conforms to the above-referenced policy adopted by the state board and that is either approved by the water systems governing body or signed by at least 30% of the households served by the water system. For purposes of that provision, the bill would authorize the state board to contract with a technical assistance provider or appoint an administrator to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.
2929
3030 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 contract with, or provide a grant to, an administrator to provide administrative, technical, operational, legal, or managerial services, or any combination of those services, to a designated water system to assist with the provision of an adequate supply of affordable, safe drinking water. The act authorizes the state board to order consolidation with, or extension of service from, a receiving water system if a public water system or state small water system serving a disadvantaged community consistently fails to provide an adequate supply of safe drinking water or if a disadvantaged community is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water. The act requires the state board, no later than July 1, 2020, to develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation.
3131
3232 This bill would authorize the state board to order consolidation between a receiving water system and an at-risk water system, as defined, upon receipt of a petition that substantially conforms to the above-referenced policy adopted by the state board and that is either approved by the water systems governing body or signed by at least 30% of the households served by the water system. For purposes of that provision, the bill would authorize the state board to contract with a technical assistance provider or appoint an administrator to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.
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3434 ## Digest Key
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3636 ## Bill Text
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38-The people of the State of California do enact as follows:SECTION 1. Section 116681 of the Health and Safety Code is amended to read:116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following: serving a disadvantaged community, a state small water system serving a disadvantaged community, or a public water system or state small water system serving a mobilehome park, if the public water system or state small water system is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(e) 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.(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(n) State small water system has the same meaning as provided in Section 116275.(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells 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) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
38+The people of the State of California do enact as follows:SECTION 1. Section 116681 of the Health and Safety Code is amended to read:116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(c)(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(d)(e) 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.(e)(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(f)(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(g)(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(h)(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(i)(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(j)(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(k)(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(l)(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(m)(n) State small water system has the same meaning as provided in Section 116275.(n)(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells 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) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided for in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves students pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
3939
4040 The people of the State of California do enact as follows:
4141
4242 ## The people of the State of California do enact as follows:
4343
44-SECTION 1. Section 116681 of the Health and Safety Code is amended to read:116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following: serving a disadvantaged community, a state small water system serving a disadvantaged community, or a public water system or state small water system serving a mobilehome park, if the public water system or state small water system is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(e) 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.(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(n) State small water system has the same meaning as provided in Section 116275.(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
44+SECTION 1. Section 116681 of the Health and Safety Code is amended to read:116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(c)(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(d)(e) 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.(e)(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(f)(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(g)(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(h)(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(i)(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(j)(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(k)(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(l)(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(m)(n) State small water system has the same meaning as provided in Section 116275.(n)(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
4545
4646 SECTION 1. Section 116681 of the Health and Safety Code is amended to read:
4747
4848 ### SECTION 1.
4949
50-116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following: serving a disadvantaged community, a state small water system serving a disadvantaged community, or a public water system or state small water system serving a mobilehome park, if the public water system or state small water system is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(e) 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.(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(n) State small water system has the same meaning as provided in Section 116275.(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
50+116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(c)(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(d)(e) 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.(e)(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(f)(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(g)(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(h)(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(i)(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(j)(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(k)(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(l)(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(m)(n) State small water system has the same meaning as provided in Section 116275.(n)(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
5151
52-116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following: serving a disadvantaged community, a state small water system serving a disadvantaged community, or a public water system or state small water system serving a mobilehome park, if the public water system or state small water system is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(e) 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.(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(n) State small water system has the same meaning as provided in Section 116275.(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
52+116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(c)(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(d)(e) 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.(e)(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(f)(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(g)(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(h)(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(i)(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(j)(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(k)(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(l)(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(m)(n) State small water system has the same meaning as provided in Section 116275.(n)(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
5353
54-116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following: serving a disadvantaged community, a state small water system serving a disadvantaged community, or a public water system or state small water system serving a mobilehome park, if the public water system or state small water system is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(e) 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.(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(n) State small water system has the same meaning as provided in Section 116275.(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
54+116681. 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 at all times.(b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:(1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.(2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.(3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.(c)(d) Consistently fails means a failure to provide an adequate supply of safe drinking water.(d)(e) 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.(e)(f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.(f)(g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.(g)(h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.(h)(i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.(i)(j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.(j)(k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.(k)(l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.(l)(m) Safe drinking water means water that meets all primary and secondary drinking water standards.(m)(n) State small water system has the same meaning as provided in Section 116275.(n)(o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
5555
5656
5757
5858 116681. The following definitions shall apply to this section and Sections 116682, 116684, and 116686:
5959
6060 (a) Adequate supply means sufficient water to meet residents health and safety needs at all times.
6161
6262 (b) Affected residence means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe and that is not served by a public water system or state small water system.
6363
64-(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following: serving a disadvantaged community, a state small water system serving a disadvantaged community, or a public water system or state small water system serving a mobilehome park, if the public water system or state small water system is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:
64+(c) At-risk water system means a public water system with fewer than 500 service connections or a state small water system serving a disadvantaged community or mobilehome park that is at risk of failing to provide an adequate supply of safe drinking water due to any of the following:
6565
6666 (1) Physical vulnerability to water outages caused by infrastructure failure, drought, groundwater overdraft, or wildfire.
6767
6868 (2) Institutional vulnerability indicated by an inability or failure to make necessary infrastructure investments, a failure to maintain appropriate reserves, or a failure to conduct necessary operations and maintenance.
6969
7070 (3) The presence of a primary or secondary drinking water contaminant at a concentration that is at least 80 percent of the relevant drinking water standard.
7171
72+(c)
73+
74+
75+
7276 (d) Consistently fails means a failure to provide an adequate supply of safe drinking water.
77+
78+(d)
79+
80+
7381
7482 (e) 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.
7583
84+(e)
85+
86+
87+
7688 (f) Consolidation means joining two or more public water systems, state small water systems, or affected residences into a single public water system.
89+
90+(f)
91+
92+
7793
7894 (g) Disadvantaged community means a disadvantaged community, as defined in Section 79505.5 of the Water Code.
7995
96+(g)
97+
98+
99+
80100 (h) Domestic well means a groundwater well used to supply water for the domestic needs of an individual residence or a water system that is not a public water system and that has no more than four service connections.
101+
102+(h)
103+
104+
81105
82106 (i) Extension of service means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
83107
108+(i)
109+
110+
111+
84112 (j) Infill site means a site within the area served by a subsumed water system that, as of the date of consolidation, is adjacent to a parcel that is developed for qualified urban uses.
113+
114+(j)
115+
116+
85117
86118 (k) Qualified urban use means any residential, commercial, public institutional, industrial, transit or transportation facility, or retail use, or any combination of those uses.
87119
120+(k)
121+
122+
123+
88124 (l) Receiving water system means the public water system that provides service to a subsumed water system through consolidation or extension of service.
125+
126+(l)
127+
128+
89129
90130 (m) Safe drinking water means water that meets all primary and secondary drinking water standards.
91131
132+(m)
133+
134+
135+
92136 (n) State small water system has the same meaning as provided in Section 116275.
137+
138+(n)
139+
140+
93141
94142 (o) Subsumed water system means the public water system, state small water system, or affected residences served by domestic wells consolidated into or receiving service from the receiving water system.
95143
96-SEC. 2. Section 116682 of the Health and Safety Code is amended to read:116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
144+SEC. 2. Section 116682 of the Health and Safety Code is amended to read:116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided for in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves students pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
97145
98146 SEC. 2. Section 116682 of the Health and Safety Code is amended to read:
99147
100148 ### SEC. 2.
101149
102-116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
150+116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided for in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves students pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
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104-116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
152+116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided for in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves students pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
105153
106-116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
154+116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.(A) 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.(B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided for in subdivision (a) of Section 116760.43.(B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.(C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.(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, whether the consolidation or extension of service is cost effective, 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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.(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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.(8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.(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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.(B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.(C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.(c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the 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) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).(B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.(C) 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 oral and written comments.(D) The meeting shall provide an opportunity for public comment.(3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.(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) 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. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.(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 an 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, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:(1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.(5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.(6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.(f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.(g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:(A) 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.(B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.(C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.(2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.(B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.(h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.(i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:(1) The local educational agency serves students pupils from one or more census blocks that are disadvantaged communities.(2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.(j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.(k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.
107155
108156
109157
110158 116682. (a) (1) The state board, in circumstances described in subparagraph (A) or (B), 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 consolidation shall occur within six months of the initiation of the extension of service. The state board may set timelines and performance measures to facilitate completion of consolidation.
111159
112160 (A) 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.
113161
114162 (B) A disadvantaged community, in whole or in part, is substantially reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.
115163
116-(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided in subdivision (a) of Section 116760.43.
164+(2) (A) No later than July 1, 2020, the state board shall develop and adopt a policy that provides a process by which members of a disadvantaged community may petition the state board to consider ordering consolidation. The state board shall adopt the policy in a policy handbook consistent with the process provided for in subdivision (a) of Section 116760.43.
117165
118166 (B) Upon receipt of a petition that substantially conforms to the policy adopted pursuant to subparagraph (A) and that is either approved by the water systems governing body or signed by at least 30 percent of the households served by the water system, and upon a finding by the state board that the water system is an at-risk water system, the state board may order consolidation between a receiving water system and the at-risk water system, as provided in this section and Section 116684. The state board may set timelines and performance measures to facilitate completion of consolidation pursuant to this subparagraph.
119167
120168 (C) For purposes of subparagraph (B), the state board may contract with a technical assistance provider or appoint an administrator pursuant to Section 116686 to provide information to a community regarding the petition process, to assist with the preparation of a petition, or to evaluate whether a water system is an at-risk water system.
121169
122170 (b) Before ordering consolidation or extension of service as provided in this section, the state board shall do all of the following:
123171
124172 (1) Encourage voluntary consolidation or extension of service.
125173
126174 (2) Consider other enforcement remedies specified in this article.
127175
128176 (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, whether the consolidation or extension of service is cost effective, and any other relevant information.
129177
130178 (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. If a receiving water system is regulated by the Public Utilities Commission, the state board shall inform the commission at least 60 days before the consolidation order, and upon issuance of the order the commission shall open a proceeding to determine cost allocation, ratemaking, and commission public participation requirements for the consolidation process.
131179
132180 (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.
133181
134182 (6) Consult with, and fully consider input from, all public water systems in the chain of distribution of the potentially receiving water systems.
135183
136184 (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.
137185
138186 (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.
139187
140188 (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, the local agency formation commission with jurisdiction over the potentially subsumed water system, or the Public Utilities Commission.
141189
142190 (8) Consider the affordability of the anticipated monthly rates for drinking water service to residential customers of the potentially subsumed water system.
143191
144192 (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 30-day notice shall include information about water quality concerns in the area, relevant information about health effects of water contaminants, and information about opportunities for consolidation or extension of service to address water quality issues. The meeting shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, the potentially receiving water system, and the public an opportunity to present oral and written comments.
145193
146194 (B) The state board shall provide an opportunity to submit comments by mail or electronically during the notice period and for at least one week after the meeting.
147195
148196 (C) The state board shall review comments received during the meeting and received by mail and electronically during the notice period and for one week after the public meeting.
149197
150198 (c) If a consolidation or other means of providing an adequate supply of safe drinking water has not been negotiated by the potentially receiving water system and the potentially subsumed water system before the expiration of the deadline set by the state board pursuant to paragraph (7) of subdivision (b), the state board shall do the following:
151199
152200 (1) Consult with the potentially receiving water system and the potentially subsumed water system, if any.
153201
154202 (2) (A) If the consolidation has not concluded within six months following the first public meeting held pursuant to paragraph (9) of subdivision (b), conduct a public meeting in a location as close as feasible to the affected communities. The meeting shall be held after the state board has made the findings described in subdivision (d).
155203
156204 (B) The state board shall make reasonable efforts to provide a 30-day notice of the meeting to the ratepayers, renters, property owners to receive water service through service extension or in the area of the subsumed water system, and the public, and to all affected local government agencies and drinking water service providers.
157205
158206 (C) 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 oral and written comments.
159207
160208 (D) The meeting shall provide an opportunity for public comment.
161209
162210 (3) The state board shall make reasonable efforts to ensure that a receiving water system and a subsumed water system are informed on a regular basis of progress regarding actions taken pursuant to this section.
163211
164212 (d) Before ordering consolidation or extension of service, the state board shall find all of the following:
165213
166214 (1) The potentially subsumed water system has consistently failed to provide an adequate supply of safe drinking water.
167215
168216 (2) Reasonable efforts to negotiate consolidation or extension of service were made.
169217
170218 (3) Consolidation of the receiving water system and subsumed water system or extension of service is appropriate and technically and economically feasible. In making this finding, the state board shall consider how many owners of dwelling units served by domestic wells in the service area have provided, or are likely to provide, written consent to extension of service. The state board need not find that any specific percentage of the owners of dwelling units served by domestic wells in the service area are likely to consent to the consolidation or extension of service to serve their dwelling unit.
171219
172220 (4) There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
173221
174222 (5) Concerns regarding water rights and water contracts of the subsumed and receiving water systems have been adequately addressed.
175223
176224 (6) Consolidation or extension of service is an effective and cost-effective means to provide an adequate supply of safe drinking water.
177225
178226 (7) The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed water system, infill sites within the community served by the subsumed water system, residents of disadvantaged communities in existence as of the date of consolidation and that are located along the service line connecting the subsumed water system and the receiving water system, and vacant lots within the community served by the subsumed water system that are zoned to allow residential use and have no more than one other vacant lot between that parcel and an infill parcel, including capacity needed for services such as firefighting.
179227
180228 (e) Upon ordering consolidation or extension of service, the state board shall do all of the following:
181229
182230 (1) As necessary and appropriate, as determined by the state board, compensate the receiving water system for any capacity lost as a result of the consolidation or extension of service either by paying the water systems capacity charge set out in the water systems adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. When the receiving water system is compensated for capacity lost by payment of a capacity charge, the capacity charge shall be paid only to the extent that it does not exceed the reasonable cost of providing the service in accordance with Section 66013 of the Government Code. If capacity beyond what is needed for consolidation is provided by a project funded through the state board, the state board shall retain an option to use that capacity for future consolidations, without paying additional capacity charges, for five years, unless it releases that option in writing. 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 water 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.
183231
184232 (2) Ensure payment of standard local agency formation commission fees caused by state board-ordered consolidation or extension of service.
185233
186234 (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.
187235
188236 (4) Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
189237
190238 (5) If ordering consolidation or extension of service between two water systems, consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service pursuant to this section.
191239
192240 (6) If ordering consolidation or extension of service to a community containing residences served by domestic wells, promptly take all reasonable steps to obtain written consent to the consolidation or extension of service from an owner of each residence served by a domestic well.
193241
194242 (f) If funds are appropriated for this purpose, the state board may make funds available for the purposes of subdivision (e), as necessary and appropriate, to the receiving water system, the subsumed water system, or an administrator providing full oversight of construction or development projects related to a consolidation or extension of service.
195243
196244 (g) (1) For purposes of this section, fees, charges, and terms and conditions that may be imposed on new and existing customers of a receiving water system shall be subject to the following limitations:
197245
198246 (A) 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.
199247
200248 (B) Except as provided in paragraph (2), fees or charges imposed on a customer of a subsumed water system shall not exceed the costs of the service.
201249
202250 (C) Except as provided in paragraph (2), the receiving water system shall not charge any fees to, or place conditions on, customers of the subsumed water system that it does not charge to, or impose on, new customers that are not subject to the consolidation with the receiving water system.
203251
204252 (2) (A) Notwithstanding subparagraph (B) or (C) of paragraph (1), if costs incurred by the receiving water system in completing the consolidation or extension of service are not otherwise recoverable as provided in subparagraph (B) of this paragraph, the receiving water system may charge fees to customers of the subsumed water system to recover those costs.
205253
206254 (B) A receiving water system shall not charge a fee pursuant to subparagraph (A) for costs that are otherwise recoverable from the state, the federal government, programs administered by local agencies, parties responsible for causing contamination that the consolidation or extension of service is designed to address, or other sources, as determined by the state board.
207255
208256 (h) The state board shall not, pursuant to this section, fund public works or upgrades unrelated to the delivery of an adequate supply of affordable, safe drinking water, including, but not limited to, the installation of streetlights, sidewalks, curbs, and gutters. A local agencys decision whether to provide these public works or upgrades shall not delay the consolidation or extension of service.
209257
210258 (i) When a public water system is operated by a local educational agency, the state board may order a receiving water system to consolidate or extend service to a public water system operated by a local educational agency pursuant to this section if both the following additional conditions are met:
211259
212-(1) The local educational agency serves pupils from one or more census blocks that are disadvantaged communities.
260+(1) The local educational agency serves students pupils from one or more census blocks that are disadvantaged communities.
213261
214262 (2) The state board obtains a written determination from the local educational agency that the state boards analysis in the financing package, developed pursuant to subparagraph (B) of paragraph (7) of subdivision (b), indicates that consolidating or extending service would not result in additional unacceptable costs to the local educational agency and would result in safe drinking water being available to the local educational agency.
215263
216264 (j) An order pursuant to this section shall not require consolidation or extension of service to a residence served solely by a domestic well until an owner of the affected residence provides written consent to the consolidation or extension of service. Any domestic well owner within the consolidation or extended service area that 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.
217265
218266 (k) Division 3 (commencing with Section 56000) of Title 5 of the Government Code does not apply to an action taken by the state board pursuant to this section.