Bill Text: CA SB1263 | 2015-2016 | Regular Session | Chaptered


Bill Title: Public water system: permits.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2016-09-29 - Chaptered by Secretary of State. Chapter 843, Statutes of 2016. [SB1263 Detail]

Download: California-2015-SB1263-Chaptered.html
BILL NUMBER: SB 1263	CHAPTERED
	BILL TEXT

	CHAPTER  843
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2016
	PASSED THE SENATE  AUGUST 29, 2016
	PASSED THE ASSEMBLY  AUGUST 25, 2016
	AMENDED IN ASSEMBLY  AUGUST 19, 2016
	AMENDED IN ASSEMBLY  AUGUST 11, 2016
	AMENDED IN ASSEMBLY  JUNE 29, 2016
	AMENDED IN ASSEMBLY  JUNE 20, 2016
	AMENDED IN ASSEMBLY  JUNE 8, 2016

INTRODUCED BY   Senators Wieckowski and Pavley

                        FEBRUARY 18, 2016

   An act to amend Section 116540 of, and to add Section 116527 to,
the Health and Safety Code, and to add Section 106.4 to the Water
Code, relating to drinking water.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1263, Wieckowski. Public water system: permits.
   (1) Existing law, the California Safe Drinking Water Act, imposes
on the State Water Resources Control Board various responsibilities
and duties relating to providing a dependable, safe supply of
drinking water. The act prohibits a person from operating a public
water system unless he or she first submits an application, including
a technical report, to the state board and receives a permit, as
specified. The act requires the state board, upon determination that
the application is complete, to make a specified investigation, and
allows the state board to impose permit conditions, requirements for
system improvements, and time schedules as the state board deems
necessary to ensure an affordable, reliable, and adequate supply of
water at all times that is pure, wholesome, and potable. The act
provides that a person who knowingly makes a false statement or
representation in a report submitted, maintained, or used for
purposes of compliance with the act may be punished as a misdemeanor.

   This bill would require a person submitting an application for a
permit for a proposed new public water system to first submit a
preliminary technical report to the state board at least 6 months
before initiating construction of any water-related improvement, as
defined. Because a misstatement in the report could be a crime under
the provision described above, this bill would impose a
state-mandated local program by expanding the scope of a crime. The
bill would allow the state board to direct the applicant to undertake
additional discussion and negotiation with certain existing public
water systems the state board determines have the technical,
managerial, and financial capacity to provide an adequate and
reliable supply of domestic water to the service area of the proposed
new public water system, as specified, and would require an
applicant to comply before submitting an application for a permit to
operate a system and would prohibit the application from being deemed
complete unless the applicant has complied. The bill would, if the
state board determines that it is feasible for the service area of
the public water system addressed by the application to be served by
one or more currently permitted public water systems, authorize the
state board to deny the permit of a proposed new public water system
if it determines that it is reasonably foreseeable that the proposed
new public water system will be unable to provide affordable, safe
drinking water in the reasonably foreseeable future, as prescribed.
   (2) Existing law allows the state board to delegate primary
responsibility for the administration and enforcement of the act
within a county to a local health officer if certain criteria are
met. Existing law requires that the local primacy agency be empowered
with all of the authority granted to the state board over the
specified public water systems.
   This bill would prohibit a local primacy agency from issuing a
permit to operate a public water system without the concurrence of
the state board. The bill would require, for a proposed new public
water system that would be regulated by a local primacy agency, the
applicant to also submit a copy of the preliminary technical report
to the state board.
   (3) Existing law declares 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 requires a city or county that
determines a project, as defined, is subject to the California
Environmental Quality Act to identify certain water systems that may
supply water for the project and to request those public water
systems to prepare and approve a specified water supply assessment.
Under existing law, if no public water system is identified, the city
or county is required to prepare and approve the water supply
assessment. Existing law provides that if, as a result of its
assessment, the public water system or city or county concludes that
its water supplies are, or will be, insufficient, the public water
system or city or county is required to provide its plans for
acquiring additional water supplies, as prescribed.
   This bill would prohibit a city, including a charter city, or a
county from issuing a building permit for the construction of a new
residential development where a source of the water supply is water
transported by a water hauler, bottled water, a water-vending
machine, or a retail water facility, as specified. By imposing new
duties on a city or county in connection with the issuance of a
building permit, the bill would impose a state-mandated local
program.
   (4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for specified reasons.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) There are over 7,500 public water systems in California. The
vast majority of these systems provide a reliable supply of safe
drinking water. However, there are hundreds of smaller public water
systems that consistently fail to provide a reliable supply of safe
drinking water to their customers. Many failing public water systems
were created without the necessary technical, managerial, or
financial capacity to be sustainable in the long term in view of
water supply uncertainties. These uncertainties can be created by
effects on water quality and quantity, global climate change,
migration of groundwater contamination, the establishment of new
drinking water standards, and other factors that are known to
significantly erode a system's capacity.
   (b) Failing public water systems disproportionately affect
disadvantaged communities who are least able to afford to address the
conditions that led to the failure.
   (c) The proliferation of new, unsustainable public water systems
also may undermine the state's human right to water policy.
   (d) Therefore, it is the policy of the state to discourage the
establishment of new, unsustainable public water systems when there
is a feasible alternative.
  SEC. 2.  Section 116527 is added to the Health and Safety Code, to
read:
   116527.  (a) As used in this section, "water-related improvement"
includes, but is not limited to, a water pipe, a water pump, or
drinking water infrastructure.
   (b) (1) Before a person submits an application for a permit for a
proposed new public water system, the person shall first submit a
preliminary technical report to the state board at least six months
before initiating construction of any water-related improvement.
   (2) In order to assist in expediting the permitting process, a
person that is considering submitting an application for a permit for
a proposed new public water system is encouraged, but is not
required, to submit the preliminary technical report no later than
seven days after submission of an application to the city or county
for a building permit for any water-related improvement.
   (3) For a proposed new public water system that would be regulated
by a local primacy agency, the applicant shall also submit a copy of
the preliminary technical report to the state board.
   (c) The preliminary technical report shall include all of the
following:
   (1) The name of each public water system for which any service
area boundary is within three miles, as measured through existing
public rights-of-way, of any boundary of the applicant's proposed
public water system's service area.
   (2) A discussion of the feasibility of each of the adjacent public
water systems identified pursuant to paragraph (1) annexing,
connecting, or otherwise supplying domestic water to the applicant's
proposed new public water system's service area. The applicant shall
consult with each adjacent public water system in preparing the
report and shall include in the report any information provided by
each adjacent public water system regarding the feasibility of
annexing, connecting, or otherwise supplying domestic water to that
service area.
   (3) A discussion of all actions taken by the applicant to secure a
supply of domestic water from an existing public water system for
the proposed new public water system's service area.
   (4) All sources of domestic water supply for the proposed new
public water system.
   (5) The estimated cost to construct, operate, and maintain the
proposed new public water system, including long-term operation and
maintenance costs and a potential rate structure.
   (6) A comparison of the costs associated with the construction,
operation and maintenance, and long-term sustainability of the
proposed new public water system to the costs associated with
providing water to the proposed new public water system's service
area through annexation by, consolidation with, or connection to an
existing public water system.
   (7) A discussion of all actions taken by the applicant to pursue a
contract for managerial or operational oversight from an existing
public water system.
   (8) An analysis of whether a proposed new public water system's
total projected water supplies available during normal, single dry,
or multiple dry water years during a 20-year projection will meet the
projected water demand for the service area.
   (9) Any information provided by the local agency formation
commission. The applicant shall consult with the local agency
formation commission if any adjacent public water system identified
pursuant to paragraph (1) is a local agency as defined by Section
56054 of the Government Code.
   (d) (1) If documents prepared to comply with Division 13
(commencing with Section 21000) of the Public Resources Code or any
other application for public agency approval concerning providing
drinking water to the proposed new public water system's service area
include the information required by subdivision (c), including
documentation of the consultation with each adjacent public water
system and the local agency formation commission, the applicant may
submit those documents to the state board in lieu of the preliminary
technical report and the documents shall be considered the functional
equivalent of the preliminary technical report.
   (2) If documents prepared to comply with Division 13 (commencing
with Section 21000) of the Public Resources Code or any other
application for public agency approval concerning providing drinking
water to the proposed new public water system's service area include
some, but not all, of the information required by subdivision (c),
including documentation of the consultation with an adjacent public
water system and the local agency formation commission, the applicant
shall submit those documents and the preliminary technical report to
the state board and together those documents and the preliminary
technical report shall be considered the functional equivalent of the
preliminary technical report requirements of this section. A
preliminary technical report submitted pursuant to this paragraph
shall only be required to include information that is not otherwise
addressed by the other submitted documents.
   (e) Upon review of a preliminary technical report submitted
pursuant to this section, the state board may do all of the following
actions:
   (1) If an existing public water system has not already sought
annexation of the service area of a proposed new public water system
from the local agency formation commission or the applicant has not
already sought an extension of services agreement from an existing
public water system, direct the applicant to undertake additional
discussion and negotiation with the local agency formation commission
and any existing public water system meeting the requirements of
paragraph (1) of subdivision (c) that the state board determines has
the technical, managerial, and financial capacity to provide an
adequate and reliable supply of domestic water to the service area of
the proposed new public water system. The state board shall not
direct the applicant to undertake additional discussion and
negotiation if documentation submitted to the state board
demonstrates that additional discussion and negotiation is unlikely
to be successful, including, but not limited to, documentation that
the local agency formation commission has previously denied the
application for an extension of service or annexation, or that the
existing public water system has declined to apply to the local
agency formation commission for approval of an extension of services
to, or annexation of, the service area of the proposed new public
water system.
   (2) Direct the applicant to report on the results of discussion
and negotiations conducted pursuant to paragraph (1) to the state
board.
   (3) Establish a time schedule for the applicant's performance of
directives issued pursuant to this subdivision.
   (f) (1) An applicant shall comply with the state board's
directives as assigned in and consistent with subdivision (e) before
submitting an application for a permit for a proposed new public
water system under this chapter.
   (2) An application for a permit for a proposed new public water
system under this chapter shall not be deemed complete unless the
applicant has complied with the requirements of this section.
   (g) The state board's review of a preliminary technical report
pursuant to this section shall not be deemed a project or approval of
a permit application submitted under this chapter.
   (h) The requirements of this section do not apply to either of the
following:
   (1) An application for a permit for a new public water system that
was deemed complete prior to January 1, 2017, pursuant to the
statutory permit application requirements effective at the date of
the permit submission.
   (2) An extension of, or annexation to, an existing public water
system.
   (i) (1) The requirements of this section do not apply to a service
area where an applicant certifies in writing to the state board that
the applicant will not rely on the establishment of a new public
water system for its water supply. The state board shall acknowledge
receipt of the applicant's certification in a timely manner.
   (2) An applicant who certifies that the service area will not rely
on the establishment of a new public water system and later seeks a
permit for a new public water system shall comply with the provisions
of this section and shall assume all risk of delay or rejection
related to the permit application.
   (j) (1) The provisions of this subdivision apply to a proposed new
public water system that achieves either or both of the following:
   (A) Consolidates two or more existing public water systems,
existing state small water systems, or other existing water systems,
which results in the creation of a new public water system.
   (B) Provides water service in lieu of individual domestic wells.
   (2) At least six months before the construction of any
water-related improvements, an applicant for a new public water
system that meets the criteria in paragraph (1) shall provide a
written notice to the state board that does both of the following:
   (A) Clearly describes the proposed new public water system and how
it meets the criteria in paragraph (1).
   (B) Requests an exemption from the requirements of this section.
   (3) The state board shall promptly acknowledge receipt of a
written notice described in paragraph (2). The state board shall have
30 days from the acknowledgment of receipt of the written notice to
issue a written notice to the applicant that compliance with the
requirements of this section is necessary and that an application for
a permit of a new public water system under this chapter is not
complete until the applicant has complied with the requirements of
this section. A determination by the state board that compliance with
the requirements of this section is necessary shall be final and is
not subject to review by the state board. A determination by the
state board pursuant to this subdivision is not considered a project
subject to Division 13 (commencing with Section 21000) of the Public
Resources Code.
   (4) If the state board receives a written notice from a project
applicant that satisfies the requirements of paragraph (2), the
project described in the notice is deemed exempt from the
requirements of this section on the 35th day following the date of
the state board's acknowledgment of receipt of the written notice,
unless the state board has issued a notice to comply pursuant to
paragraph (3).
  SEC. 3.  Section 116540 of the Health and Safety Code is amended to
read:
   116540.  (a) Following completion of the investigation and
satisfaction of the requirements of paragraphs (1) and (2), the state
board shall issue or deny the permit. The state board may impose
permit conditions, requirements for system improvements, technical,
financial, or managerial requirements, and time schedules as it deems
necessary to ensure a reliable and adequate supply of water at all
times that is pure, wholesome, potable, and does not endanger the
health of consumers.
   (1) A public water system that was not in existence on January 1,
1998, shall not be granted a permit unless the public water system
demonstrates to the state board that the water supplier possesses
adequate financial, managerial, and technical capability to ensure
the delivery of pure, wholesome, and potable drinking water. This
section shall also apply to any change of ownership of a public water
system.
   (2) A permit under this chapter shall not be issued to an
association organized under Title 3 (commencing with Section 18000)
of the Corporations Code. This section shall not apply to
unincorporated associations that, as of December 31, 1990, are
holders of a permit issued under this chapter.
   (b) Notwithstanding Section 116330, a local primacy agency shall
not issue a permit under this article without the concurrence of the
state board.
   (c) In considering whether to approve a proposed new public water
system, the state board shall consider the sustainability of the
proposed new public water system and its water supply in the
reasonably foreseeable future, in view of global climate change,
potential migration of groundwater contamination and other potential
treatment needs, and other factors that can significantly erode a
system's capacity.
   (d) If the state board determines that it is feasible for the
service area of the public water system addressed by an application
under this article to be served by one or more permitted public water
systems identified pursuant to paragraph (1) of subdivision (c) of
Section 116527, the state board may deny the permit of a proposed new
public water system if it determines, based on its assessment of the
preliminary technical report submitted pursuant to Section 116527,
the permit application, and other relevant, substantial evidence
submitted, that it is reasonably foreseeable that the proposed new
public water system will be unable to provide affordable, safe
drinking water in the reasonably foreseeable future.
   (e) An applicant may appeal decisions and actions of the deputy
director taken pursuant to this section to the state board.
  SEC. 4.  Section 106.4 is added to the Water Code, to read:
   106.4.  (a) For the purposes of this section:
   (1) "Bottled water" has the same meaning as defined in Section
111070 of the Health and Safety Code.
   (2) "Residential development" has the same meaning as defined in
Section 65008 of the Government Code.
   (3) "Retail water facility" has the same meaning as defined in
Section 111070 of the Health and Safety Code.
   (4) "Water-vending machine" has the same meaning as defined in
Section 111070 of the Health and Safety Code.
   (5) "Water hauler" has the same meaning as defined in Section
111070 of the Health and Safety Code.
   (b) A city, including a charter city, or a county shall not issue
a building permit for the construction of a new residential
development where a source of water supply is water transported by a
water hauler, bottled water, a water-vending machine, or a retail
water facility.
   (c) This section does not apply to a residence that will be
rebuilt because of a natural disaster.
   (d) The Legislature finds and declares that this section addresses
a matter of statewide concern and not a municipal affair, as that
term is used in Section 5 of Article XI of the California
Constitution.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.
                                               
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