Bill Text: CA AB508 | 2019-2020 | Regular Session | Amended

California Assembly Bill 508 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Drinking water: consolidation and extension of service: domestic wells.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2019-09-27 - Chaptered by Secretary of State - Chapter 352, Statutes of 2019. [AB508 Detail]

Download: California-2019-AB508-Amended.html

Amended IN Assembly April 11, 2019

Amended IN Assembly March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 508

Introduced by Assembly Member Chu

February 13, 2019

An act to amend Section 116682 of the Health and Safety Code, relating to drinking water.

LEGISLATIVE COUNSEL'S DIGEST

AB 508, as amended, Chu. Drinking water: consolidation and extension of service: domestic wells.

(1) 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~~ duties. The act authorizes the state board to order consolidation with, or extension of service from, a receiving water system, as defined, 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 reliant on a domestic well that consistently fails to provide an adequate supply of safe drinking water. The act requires the state board, before ordering consolidation or extension of service, to, among other things, ~~obtain written consent from any domestic well owner for consolidation or extension of service and~~ make a finding that consolidation of the receiving water system and subsumed water system or extension of service to the subsumed water system is appropriate and technically and economically feasible. The act makes any domestic well owner within the consolidation or extended service area who does not provide written consent ineligible, until consent is provided, for any future water-related grant funding from the state, except as provided.

This bill would modify the provision that authorizes consolidation or extension of service if a disadvantaged community is reliant on a domestic well described above to instead authorize consolidation or extension of service if a disadvantaged community has one or more residences that are reliant on a domestic well described above. The bill would delete the requirement that the state board obtain written consent from any domestic well owner before ordering consolidation or extension of service, and would impose specified consequences for not consenting to consolidation or extension of service in the provisions described in paragraph (2), below. With respect to the state board’s finding regarding technical and economic feasibility, the community, in whole or in part, is reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water. The bill would impose the additional requirement that the state board consider how many owners of dwelling units served by domestic wells in the service area have or are likely to provide written consent to extension of service and would specify that the state board need not ~~find, and is prohibited from requiring,~~ 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 ~~construction of a lateral~~ consolidation or extension of service to serve their dwelling unit.

(2)The act requires the state board to do several things upon ordering consolidation or extension of service, including compensating specified water systems, ensuring payment of certain fees of the local agency formation commission (LAFCO), coordinating with the LAFCO and other relevant agencies to facilitate the organizational change, and, in specified circumstances, to consider any existing domestic wells within the service area that could also be subject to consolidation or extension of service.
(2) The act also requires the state board, before ordering consolidation or extension of service, to, among other things, obtain written consent from any domestic well owner for consolidation or extension of service. The act makes any domestic well owner within the consolidation or extended service area who does not provide written consent ineligible, until consent is provided, for any future water-related grant funding from the state, except as provided.

The bill would ~~additionally~~ require the state board, if a dwelling unit is reliant on a domestic well within the service area that does not provide an adequate supply of safe drinking water, to inform the owner of the dwelling unit and, if different, the owner of the domestic ~~well.~~ well that the dwelling unit is supplied water by a domestic well that does not provide an adequate supply of safe drinking water. The bill would specify certain consequences if the owner of the dwelling unit and, if applicable, the owner of the domestic ~~well,~~ well do not provide written consent, upon request, for ~~construction of a lateral~~ consolidation or extension of service to serve the dwelling unit. The consequences specified by the bill would include ineligibility for future water-related grant funding from the state, except as provided, ~~and, if the dwelling unit is hired out,~~ and a requirement that the state board provide a written statement with specified ~~information, as provided, to the dwelling unit’s tenants~~ information to the occupants of the dwelling unit regarding the domestic well and the owner’s failure to consent to ~~construction of a lateral.~~ consolidation or extension of service.

(3) The act limits the fees, charges, and terms and conditions that a consolidated or receiving water system may impose on new and existing customers upon consolidation or extension of service.

The bill would ~~also~~ prohibit a receiving water system from charging any fees to mitigate or compensate for increased groundwater use if the subsumed water system was reliant on groundwater immediately before the consolidation or extension of service.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

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 has one or more residences that are reliant on a domestic well that consistently fails~~ community, in whole or in part, is reliant on domestic wells that consistently fail to provide an adequate supply of safe drinking water.

(2) 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) 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 commission’s 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) If a dwelling unit is reliant on a domestic well within the service area that does not provide an adequate supply of safe drinking water, the state board shall inform the owner of the dwelling unit and, if different, the owner of the domestic well that the dwelling unit is supplied water by a domestic well that does not provide an adequate supply of safe drinking water. If the owner of the dwelling unit or, if applicable, the domestic well does not provide written consent, upon request, for consolidation or extension of service to serve the dwelling unit, both of the following shall occur:
(A) The owner of the dwelling unit and, if applicable, the domestic well shall be ineligible, until the owner provides written consent, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
(B) The state board shall promptly take all reasonable steps to provide to the occupants of the dwelling unit a written statement including the following information:
(i) That the domestic well supplying water to the dwelling unit does not provide an adequate supply of safe drinking water.
(ii) All likely health risks associated with all of the dwelling unit’s specific known and likely water supply and water quality issues.
(iii) That the owner of the dwelling unit has been informed that the domestic well does not provide an adequate supply of safe drinking water and, despite being informed, has refused to consent to the consolidation or extension of service.
(iv) That the dwelling unit owner’s failure to consent to consolidation or extension of service or to provide an alternate adequate supply of safe drinking water evidences a failure to provide an adequate supply of safe drinking water to the dwelling unit.
~~(9)~~

(10) (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 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)~~ (10) 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, and shall not require,~~ 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 ~~construction of a lateral~~ 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 system’s capacity connection fee set out in the water system’s adopted rate structure or by providing additional capacity needed as a result of the consolidation or extension of service, and by paying legal fees. 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 utilize that capacity for future consolidations, without paying additional capacity charge fees, 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 board’s 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 a dwelling unit is reliant on a domestic well within the service area that does not provide an adequate supply of safe drinking water, the state board shall inform the owner of the dwelling unit and, if different, the owner of the domestic well. If the owner of the dwelling unit or, if applicable, the domestic well, does not provide written consent, upon request, for construction of a lateral to serve the dwelling unit, both of the following shall occur:
(A)The owner of the dwelling unit and, if applicable, the domestic well, shall be ineligible, until the owner provides written consent, for any future water-related grant funding from the state other than funding to mitigate a well failure, disaster, or other emergency.
~~(B)If the dwelling unit is hired to tenants, the state board shall promptly take all reasonable steps to provide to the tenants a written statement including the following information:~~
~~(i)That the domestic well does not provide an adequate supply of safe drinking water.~~
~~(ii)All likely health risks associated with all of the dwelling unit’s specific known and likely water supply and water quality issues.~~
(iii)That the owner of the dwelling unit has been informed that the domestic well does not provide an adequate supply of safe drinking water and, despite being informed, has refused to consent to the construction of a lateral.
(iv)That the dwelling owner’s failure to consent to construction of a lateral or provide an alternate adequate supply of safe drinking water evidences a failure to provide the bare living requirements necessary for a habitable dwelling.
~~(v)That the dwelling unit is untenantable because the dwelling unit substantially lacks an approved water supply.~~

(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.

(D) The receiving water system shall not charge any fees to mitigate or compensate for increased groundwater use if the subsumed water system was reliant on groundwater immediately before the consolidation or extension of service.

(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 street lights, sidewalks, curbs, and gutters. A local agency’s 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 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 board’s 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) Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to an action taken by the state board pursuant to this section.