SENATE BUDGET AND APPROPRIATIONS COMMITTEE STATEMENT TO [First Reprint] SENATE, No. 1006 with committee amendments STATE OF NEW JERSEY DATED: OCTOBER 31, 2022 The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 1006 (1R). As amended by the committee, this bill requires the Department of Environmental Protection (DEP), the Department of Health (DOH), owners or operators of public water systems, and the owners or operators of certain types of buildings to take specified actions to help inform citizens of the State about, and prevent and control cases of, Legionnaires’ disease. The bill requires the owner or operator of a public water system with 100 or more service connections to (1) maintain a minimum detectable disinfectant residual of free chlorine of at least 0.3 milligrams per liter in all active parts of the public water system at all times for systems utilizing chlorine as a disinfectant, or maintain a minimum detectable disinfectant residual of at least 1.0 milligrams per liter of monochloramine in all active parts of the public water system at all times for systems utilizing chloramine as a disinfectant, and (2) conduct disinfectant residual testing at frequent and regular intervals to determine the amount and type of detectable disinfectant residual existing at different points in the public water system. Under the bill, the DEP is authorized to adopt rules and regulations to require additional disinfectant requirements or testing requirements of public water systems, or to increase the minimum detectable disinfectant residual, in order to minimize the growth and transmission of Legionella bacteria, or to require nitrification action plans. The bill requires the owner or operator of a public water system with 100 or more service connections to provide written notice to its residential, commercial, and institutional customers and to residents located in an affected area of disruptions in the water distribution system that could result in increased levels of Legionella bacteria being present in the public water system. The bill also requires the owner or operator of a public water system with 100 or more service connections to provide a written record of a reported disruption in the water distribution system to the DEP within 24 hours of the occurrence of the disruption. The bill requires the DEP to establish on its Internet 2 website a publicly accessible database of the records of a disruption in the water distribution system submitted to the DEP pursuant to the bill. The bill requires the DEP to publish a public notice in the New Jersey Register and on its Internet website specifying the form and manner of the notice and records required by the bill and the specific information to be included in the notice and records. The bill requires the DOH to conduct an investigation into every reported diagnosis of Legionnaires’ disease and require the DOH to advise an individual diagnosed with Legionnaires’ disease about the availability of testing by the DOH of the fixtures and water-using equipment in the individual’s residence, locations frequently visited, and places of employment in the 45 days immediately prior to the individual’s diagnosis. The bill requires the DOH to develop procedures and guidelines regarding investigations of reported cases of Legionnaires’ disease. The bill authorizes the DOH to delegate certain responsibilities and duties for administering the testing and investigatory provisions of section 3 of the bill to a local health officer having jurisdiction over the locality in which a patient diagnosed with Legionnaires’ disease lives, frequently visits, or is employed. The bill also requires the DOH to establish on its Internet website a registry accessible to the public of de-identified data related to each case of Legionnaires’ disease reported to the DOH. “De-identified data” is defined in the bill as information that does not identify an individual and for which there is no reasonable basis to believe that the information can be used to identify an individual, and which meets the requirements for de-identification of protected health information under the federal "Health Insurance Portability and Accountability Act of 1996," Pub.L.104-191. Section 4 of the bill requires the owner or operator of certain types of buildings to implement a water management program to minimize the growth and transmission of Legionella bacteria in the building water system. This requirement applies to: (1) certain health care facilities where patient stays exceed 24 hours; (2) buildings containing one or more areas for the purpose of housing or treating occupants receiving treatment for burns, chemotherapy, solid organ transplantation, or bone marrow transplantation; (3) buildings containing one or more areas for the purpose of housing or treating occupants that are immunocompromised, at-risk, on medications that weaken the immune system, or have renal disease, diabetes, or chronic lung disease; (4) buildings containing a whirlpool, spa, pool, open- or closed- circuit cooling tower or evaporative condenser that provides cooling or refrigeration for a heating, ventilation, air conditioning, or refrigeration system, ornamental fountain, mister, atomizer, air wash, humidifier, or other non-potable water system or device that releases 3 water aerosols in the building or on the property upon which the building is located; and (5) buildings that are more than 10 stories high, including any level that is below grade, with a centralized potable water-heater system. The bill requires that testing conducted as part of a building’s water management program be conducted in a manner consistent with the American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) Standard 188-2018 or comparable standards adopted by a nationally recognized, accepted, and appropriate organization, and specifies the qualifications of individuals who may conduct the required testing. The bill establishes penalties for the owner or operator of a facility or building who fails to implement a water management program or fails to demonstrate compliance with a water management program. A violator would be subject to a penalty of not more than $2,000 for a first violation, and not more than $5,000 for a second or subsequent violation, except that an owner or operator would be subject to a penalty of not more than $10,000 for any violation which causes serious injury or death to any person. The bill requires the DOH, in consultation with the DEP, the DCA, and a public stakeholder group, to adopt rules and regulations as necessary to implement the provisions of the bill. The bill requires that the rules and regulations be consistent with the ASHRAE Standard 188-2018 or comparable standards adopted by a nationally recognized, accepted, and appropriate organization. The bill requires the DOH, in conjunction with the DEP and the DCA, to prepare an annual report including information on reported cases of Legionnaires’ disease reported in each of the previous 10 years, test results indicating the presence of Legionella bacteria, and recommendations for such legislative action as may be necessary to further control Legionella bacteria in the public water supply and affected buildings. Lastly, the bill requires the DOH to develop a public awareness campaign and targeted consumer education program to educate consumers, especially vulnerable populations, on the environmental sources of Legionella bacteria, the movement of Legionella bacteria through water distribution systems, the notification requirements required by the bill and how the requirements impact consumers, and on methods to control Legionella bacteria in a person’s home. COMMITTEE AMENDMENTS : The committee amendments: 1) clarify the minimum detectable disinfectant residual of free chlorine of at least 0.3 milligrams per liter in all active parts of the public water system at all times applies to systems utilizing chlorine as a disinfectant, and require a minimum detectable disinfectant residual 4 of at least 1.0 milligrams per liter of monochloramine in all active parts of the public water system at all times for systems utilizing chloramine as a disinfectant; 2) provide that the DEP may adopt rules and regulations concerning nitrification action plans; 3) clarify that the owner or operator of a facility or building is to make the water management program required by the bill available upon request to an employee of the DCA, DEP, DOH, or any other department or agency with license or inspection authority for the facility or building in order to confirm that a water management program was developed; and 4) specify that the DCA, DEP, DOH, or any other department or agency with license or inspection authority for the facility or building is not required to evaluate or otherwise review a water management program unless required for an investigation of a case of Legionnaires’ disease pursuant to the bill. FISCAL IMPACT: The Office of Legislative Services (OLS) determines that this bill would result in an indeterminate annual expenditure increase by the State, local government units, and school districts that own or operate certain buildings to utilize water management programs, conduct water monitoring and testing, and to investigate cases of reported Legionnaires’ Disease. The OLS understands that implementing a water management program that meets the standards required by the bill could cost in the range of $2,000 to $10,000 or more, depending on the size and complexity of the building. In addition, each program could cost several thousand dollars or more annually for water monitoring and testing. According to information from the Department of Health, annual departmental expenditures under the bill could be $6 million to investigate cases of Legionnaires’ disease. Depending on how the investigative responsibilities are delegated, some of these costs could be borne by the affected local government entity rather than the State. The bill may also result in an indeterminate annual expenditure increase by the State and by local government units that operate public water systems with more than 100 service connections, in order to satisfy the bill's requirements that public water systems maintain a certain minimum level of disinfectant residual in their water supply, and institute a testing regimen to verify this level. For those public water systems that do not currently meet the bill's testing requirements, the OLS understands that such testing would cost up to tens of thousands of dollars per system annually, depending on the size of the system.