Bill Text: CA SB1215 | 2017-2018 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Provision of sewer service: disadvantaged communities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2018-09-30 - Chaptered by Secretary of State. Chapter 982, Statutes of 2018. [SB1215 Detail]

Download: California-2017-SB1215-Introduced.html


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1215


Introduced by Senator Hertzberg

February 15, 2018


An act to amend Sections 116680, 116681, and 116682 of, and to add Section 116683 to, the Health and Safety Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


SB 1215, as introduced, Hertzberg. Drinking water systems and sewer systems: consolidation and extension of service.
Existing law declares it to be the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.
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 order consolidation with a receiving water system where a public water system or a state small water system, serving a disadvantaged community, as defined, consistently fails to provide an adequate supply of safe drinking water. The act authorizes the state board to order the extension of service to an area 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 act requires the state board, before ordering consolidation or extension of service, to, among other things, consult with specified entities, hold at least one public meeting, and make certain findings. The act authorizes the state board to set timeline and performance measures to facilitate completion of consolidation.
This bill would also authorize the state board to set timeline and performance measures to facilitate completion of extension of service of drinking water.
This bill would authorize the state board to order consolidation with a receiving sewer system for, or extension of sewer service to, a disadvantaged community under specified circumstances. The bill would require the state board to take certain actions before ordering consolidation or extension of service that are similar to those required for the consolidation or extension of water systems and would additionally require the state board to find that at least 75% of the households in the community potentially subject to extension or consolidation of service have agreed to receive sewage service from the receiving sewer system.
This bill would expand the definition of “disadvantaged community,” for purposes of these consolidation and extension of service provisions, to also include a defined disadvantaged community that is in an incorporated area but not served by a public water system or wastewater system.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 116680 of the Health and Safety Code is amended to read:

116680.
 The Legislature finds and declares as follows:
(a) It is the policy of the state to encourage orderly growth and development, which are essential to the social, fiscal, and economic well-being of the state. The Legislature recognizes that the logical formation, consolidation, extension, and operation of water systems is an important factor and wastewater systems are important factors in promoting orderly development and in balancing that development against sometimes competing state interests of discouraging urban sprawl, preserving open space and prime agricultural lands, and efficiently extending other government services. Therefore, the policy of the state should be affected by the logical formation, consolidation, extension, and operation of water systems and wastewater systems.
(b) The powers set forth in Section Sections 116682 and 116683 for consolidation of water systems and wastewater systems are consistent with the intent of promoting orderly growth.

SEC. 2.

 Section 116681 of the Health and Safety Code is amended to read:

116681.
 Except as provided in paragraph (2) of subdivision (j) of Section 116686, the following definitions shall apply to this section and Sections 116682, 116683, 116684, and 116686:
(a) “Adequate supply” means sufficient water to meet residents’ health and safety needs.
(b) “Adequate sewage service” means onsite sewage treatment service or municipal wastewater service that processes and treats wastewater from customers so that untreated wastewater does not contaminate, or does not threaten to contaminate, surrounding groundwater, surface water, or soils, and does not back up into homes.

(b)

(c) “Affected residence” means a residence within a disadvantaged community that is reliant on a water supply that is either inadequate or unsafe.

(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 not served by a public water system.

(e)

(f) “Consolidation” means joining two or more public water systems, state small water systems, or affected residences not served by a public water system, into a single public water system.

(f)

(g) “Disadvantaged community” means a disadvantaged community, as defined in Section 79505.5 of the Water Code, that is in an unincorporated area, is in a mobilehome park, is in an incorporated area but not served by a public water system or wastewater system, or is served by a mutual water company or a small public water system.

(g)

(h) “Extension of service” means the provision of service through any physical or operational infrastructure arrangement other than consolidation.
(i) “Onsite sewage treatment system” has the same meaning as defined in subdivision (b) of Section 13290 of the Water Code.
(j) “Receiving sewer system” means the sewer system that provides service to a subsumed sewer system through consolidation or extension of service.

(h)

(k) “Receiving water system” means the public water system that provides service to a subsumed water system through consolidation or extension of service.
(l) “Reliable onsite sewage treatment system” means an onsite sewage treatment system that can process and treat wastewater from a residence such that untreated wastewater does not contaminate, or does not threaten to contaminate, surrounding groundwater, surface water, or soils, and does not back up into homes.

(i)

(m) “Safe drinking water” means water that meets all primary and secondary drinking water standards.

(j)

(n) “Small public water system” has the same meaning as provided in subdivision (b) of Section 116395.
(o) “Subsumed sewer system” means the sewer system that cannot provide, or affected residences that do not have access to, reliable and sustainable sewage treatment service consolidated into or receiving service from the receiving sewer system.

(k)

(p) “Subsumed water system” means the public water system, state small water system, or affected residences not served by a public water system consolidated into or receiving service from the receiving water system.
(q) “Sustainable onsite sewage treatment system” means an onsite sewage treatment system that can provide reliable onsite sewage treatment service and complies with local and state standards for onsite sewage treatment systems.

SEC. 3.

 Section 116682 of the Health and Safety Code is amended to read:

116682.
 (a) Where 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, the state board 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 state board may set timelines and performance measures to facilitate completion of consolidation. consolidation or extension of service.
(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, 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.
(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, or the local agency formation commission with jurisdiction over the potentially subsumed water system.
(8) Obtain written consent from any domestic well owner for consolidation or extension of service. Any domestic well owner within the consolidation or extended service area who 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.
(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 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 testimony. The meeting shall provide an opportunity for public comment.
(B) An initial public meeting shall not be required for a potentially subsumed area that is served only by domestic wells.
(c) Upon 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) Conduct a public hearing, in a location as close as feasible to the affected communities.
(B) The state board shall make reasonable efforts to provide a 30-day notice of the hearing to the ratepayers, renters, and property owners to receive water service through service extension or in the area of the subsumed water system and to all affected local government agencies and drinking water service providers.
(C) The hearing shall provide representatives of the potentially subsumed water system, affected ratepayers, renters, property owners, and the potentially receiving water system an opportunity to present testimony.
(D) The hearing shall provide an opportunity for public comment.
(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) All 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.
(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 the most 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.
(e) Upon ordering consolidation or extension of service, the state board shall do all of the following:
(1) As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving water system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. 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 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.
(f) (1) For the purposes of this section, 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.
(2) For purposes of this section, fees or charges imposed on a customer of a subsumed water system shall not exceed the cost of consolidating the water system with a receiving system or the extension of service to the area.
(g) 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.

SEC. 4.

 Section 116683 is added to the Health and Safety Code, to read:

116683.
 (a) The Legislature finds and declares that it is critical to protect drinking water and ground water supplies from failing sewer systems.
(b) (1) Where a disadvantaged community or residents of a disadvantaged community are served by an onsite sewage treatment system that cannot provide reliable and sustainable onsite sewage treatment service, or is not served by either an onsite sewage treatment system or a sewer system, the state board may order consolidation with a receiving sewer system or an extension of sewer service to the disadvantaged community, or to all or a portion of the area within the disadvantaged community, that does not have access to sewer service so long as the extension of service is an interim extension of service in preparation for consolidation. The consolidation may be physical or operational. The state board may set timelines and performance measures to facilitate completion of consolidation or extension of service.
(2) When at least 90 percent of households within a disadvantaged community file a petition with the state board requesting that the state board order consolidation and provide written evidence that a potential receiving sewer system has refused to pursue service of extension, the state board shall order extension of service or consolidation.
(c) (1)   Before ordering consolidation or extension of service for sewer service as provided in this section, the state board shall do all of the following:
(A) Encourage voluntary consolidation or extension of service.
(B) Consider other enforcement remedies specified in this article.
(C) Consult with, and fully consider input from, the relevant local agency formation commission regarding the provision of sewer service in the affected area, the recommendations for improving service in a municipal service review, and any other relevant information.
(D) Consult with, and fully consider input from, the regional water quality control board.
(E) Consult with, and fully consider input from, the local government with land use planning authority and environmental health oversight over the affected area, particularly regarding any information in the general plan required by Section 65302.10 of the Government Code.
(F) (i)    Notify the potentially receiving sewer system and residents and property owners of a sewer system potentially subject to the extension of service or consolidation, and establish a reasonable deadline of no less than six months, unless a shorter period is justified, for the potentially receiving sewer system and the affected property owners to negotiate consolidation or another means of providing an adequate sewage service.
(ii) During this period, the state board shall provide technical assistance and work with the potentially receiving sewer system and the residents and property owners of a sewer system potentially subject to the extension of service or consolidation to develop a financing package that benefits both the receiving sewer system and the residents and property owners.
(iii) Upon a showing of good cause, the deadline may be extended by the state board at the request of the potentially receiving sewer system, the residents or property owners of a sewer system potentially subject to the extension of service or consolidation, or the local agency formation commission with jurisdiction over the sewer system, residents, and property owners.
(G) Obtain written consent from any landowner of residential property with an onsite sewage treatment system for consolidation or extension of service. Any affected resident within the consolidation or extended service area who does not provide written consent shall be ineligible, until the consent is provided, for any future wastewater-related grant funding from the state other than funding to mitigate a septic system failure, disaster, or other emergency.
(H) 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 renters and property owners of a sewer system potentially subject to the extension or consolidation of service, and all affected local government agencies and wastewater service providers. The meeting shall provide representatives of the renters and property owners of a sewer system potentially subject to the extension of services or consolidation and the potentially receiving sewer system an opportunity to present testimony. The meeting shall provide an opportunity for public comment.
(2) Upon expiration of the deadline set by the state board pursuant to subparagraph (F) of paragraph (1), the state board shall do the following:
(A) Consult with the potentially receiving sewer system and the potentially subsumed sewer system, if any.
(B) (i)    Conduct a public hearing, in a location as close as feasible to the affected communities.
(ii) The state board shall make reasonable efforts to provide a 30-day notice of the hearing to the renters and property owners of a sewer system potentially subject to extension of services or consolidation and to all affected local government agencies and wastewater service providers.
(iii) The hearing shall provide representatives of the renters and property owners reliant on unreliable or unsustainable sewage treatment systems and subject to the potential extension of services or consolidation and the potentially receiving sewer system an opportunity to present testimony.
(iv) The hearing shall provide an opportunity for public comment.
(3) Before ordering consolidation or extension of service, the state board shall find all of the following:
(A) The potentially subsumed properties do not have adequate sewage service.
(B) All reasonable efforts to negotiate consolidation or extension of service were made.
(C) Consolidation or extension of service is appropriate and technically and economically feasible.
(D) There is no pending local agency formation commission process that is likely to resolve the problem in a reasonable amount of time.
(E) Consolidation or extension of service is the most effective and cost-effective means to provide adequate sewage service.
(F) The capacity of the proposed interconnection needed to accomplish the consolidation is limited to serving the current customers of the subsumed sewer system and vacant lots within the community.
(G) At least 75 percent of the households in the community potentially subject to extension or consolidation of service have agreed to receive sewage service from the receiving sewer system.
(4) Upon ordering consolidation or extension of service, the state board shall do all of the following:
(A) As necessary and appropriate, make funds available, upon appropriation by the Legislature, to the receiving sewer system for the costs of completing the consolidation or extension of service, including, but not limited to, replacing any capacity lost as a result of the consolidation or extension of service, providing additional capacity needed as a result of the consolidation or extension of service, and legal fees. Funding pursuant to this subparagraph 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 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.
(B) Ensure payment of standard local agency formation commission fees caused by state board-ordered consolidation or extension of service.
(C) Coordinate with the appropriate local agency formation commission and other relevant local agencies to facilitate the change of organization or reorganization.
(d) The receiving sewer system shall not increase charges on existing customers of the subsumed sewer system solely as a consequence of the consolidation or extension of service unless the customers receive a corresponding benefit.
(e) The receiving sewer system shall not charge rates to newly absorbed customers of the sewer system that are higher than those necessary to provide the sewage service.
(f) Division 3 (commencing with Section 56000) of Title 5 of the Government Code shall not apply to the consolidation or extension of service required pursuant to this section.

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