Statewide Safe Drinking Water Funding Solution

On July 24, 2019, Gov. Gavin Newsom signed SB 200 (Monning) into law, creating the Safe and Affordable Drinking Water Fund, which provides the legal structure and process for funding safe drinking water solutions for disadvantaged communities in California that currently do not have that access.

The California Legislature had previously passed the bill in early July 2019.

The governor’s signing of SB 200 follows the June 27 enactment of the 2019-’20 State Budget, which sets forth the first part of the funding solution.  The State Budget provides $130 million for Fiscal Year 2019-’20 for safe drinking water solutions in disadvantaged communities that do not have access to safe drinking water.

In the first year, Fiscal Year 2019-’20, the safe drinking water funding solution will be funded with $100 million from the Greenhouse Gas Reduction Fund (GGRF) and $30 million from the General Fund.

After the first year, the funding will be 5% of the GGRF continuously appropriated – capped at $130 million per year.  The agreement includes General Fund funding as a backstop if 5% of the GGRF is less than $130 million in any year.  The funding will sunset in 2030.

The solution does not include a water tax.

In addition to Gov. Newsom, many legislators on both sides of the aisle played key roles in making this agreement possible.  To name just a few of those, Senator Monning (D-Carmel) has championed this issue from the beginning.  Assembly Water, Parks and Wildlife Committee Chair Eduardo Garcia (D-Coachella) encouraged stakeholders to come forward with ideas for how to solve the problem.  Senator Anna Caballero (D-Salinas) authored the ACWA and California Municipal Utilities Association co-sponsored SB 669, which proposed a Safe Drinking Water Trust.  Discussions on that bill helped inform the broader discussion regarding solutions.

ACWA staff appreciate the guidance on this critical issue from the ACWA Board of Directors, the ACWA DAC Drinking Water Initiative Task Force, and the State Legislative Committee and its Safe Drinking Water Funding Working Group. ACWA also appreciates the tireless legislative outreach support from member agencies.

Why is there a need for safe drinking water funding in California?

  • Most Californians have access to safe drinking water, but some disadvantaged communities do not
  • Lack of access to safe drinking water is a public health issue the state must address
  • A funding gap exists for operations & maintenance (O&M) costs for community water systems that treat water
  • In general, O&M costs cannot be financed using existing state and federal drinking water funding sources
  • In some situations, consolidation of a community water system may be the most effective solution
  • A financial solution is needed for O&M and consolidation costs in disadvantaged communities that can complement existing federal and state funding sources for capital costs.

Why is a statewide water tax not the right approach?

  • It isn’t sound policy to tax a resource that is essential to life
  • A regressive statewide tax on local water bills is in conflict with keeping water affordable for all Californians
  • It would be highly inefficient to require more than 3,000 local water agencies to serve as tax collectors for the state
  • The combined local administrative costs would exceed the combined statewide water tax revenue collected with local water bills

Californians Oppose a Drinking Water Tax

Tulchin Research conducted a statewide poll in early 2018 based on a previous drinking water tax proposal. That poll showed that 73% of likely voters oppose a new tax on drinking water, both initially and even after hearing more information.

Additionally, 74% would prefer using existing funding sources rather than establishing a new tax on drinking water.

For more on the polling, please read the polling results memo or see our news release.

Tools & Resources

2019 ACWA & Coalition Letters

2019 Media Coverage

2018 Coalition Letters

Questions

For questions about the agreement or Conference Committee action, please contact ACWA Deputy Executive Director for Government Relations Cindy Tuck at (916) 441-4545.

For media inquiries, please contact ACWA Director of Communications Heather Engel at (916) 441-4545.

 

Suggested Resources

15 RESOURCES prev next
Federal Regulatory Issues Chart

Sorry, but only ACWA members have permission to view this content. Member login is required.

AB 249 (Holden): Testing for Lead in Drinking Water at Schools

To: The Honorable Alex Lee, Chair, Assembly Environmental Safety and Toxic Materials Committee Subject: AB 249 (Holden): Testing for Lead […]

ACWA and CMUA Comment Letter on Proposed Changes to Drinking Water Needs Assessment

To: State Water Resources Control Board Subject:ACWA and CMUA Comments regarding the Draft White Paper Discussion On: Proposed Changes for the […]

2022 Year in Review

Big wins and tough challenges filled a productive 2022 for the ACWA community, but opportunities to finally gather in person […]

Demand Side Grid Support Program and Distributed Electricity Backup Assets Program

Agency: California Energy Commission Subject: Lead Commissioner Workshop on the Demand Side Grid Support Program and Distributed Electricity Backup Assets Program Letter […]

Public Health Goals for Hexavalent Chromium

Agency: Office of Environmental Health Hazard Assessment Subject: Public Health Goal for Hexavalent Chromium: ACWA’s Concerns regarding July 6, 2022 […]

ACWA-Sponsored SB 23 (Caballero) Fact Sheet

California is in a race against climate change. As the wets get wetter and dries get drier, our water systems […]

ON DEMAND: 2022 Fall Conference

ACWA’s 2022 Fall Conference ON DEMAND! Thank you to all those who participated in ACWA’s 2022 Fall Conference. This unique […]

2023 Winter Drought Toolkit

Sorry, but only ACWA members have permission to view this content. Member login is required.

Regulatory Roundup

Sorry, but only ACWA members have permission to view this content. Member login is required.

CAFWA Letter: 2023-24 Wildfire and Forest Resilience State Budget Allocations

To: Governor Gavin Newsom Subject: 2023-24 Wildfire and Forest Resilience State Budget Allocations Letter excerpt: On behalf of the California Forest […]

Outreach Handbook

Sorry, but only ACWA members have permission to view this content. Member login is required.

Multibenefit Land Repurposing Program Round 2 Draft Guidelines

Agency: California Department of Conservation Subject: Comment Letter – Multibenefit Land Repurposing Program Round 2 Draft Guidelines Letter excerpt: The […]

ACWA Scholarship Toolkit for 2023-’24

Sorry, but only ACWA members have permission to view this content. Member login is required.

ACWA and CMUA Comment Letter on Lead and Copper Rule Improvements

Agency: U.S. Environmental Protection Agency Subject: U.S. Environmental Protection Agency’s National Primary Drinking Water Regulations: Lead and Copper Rule Improvements […]

Suggested News

15 Articles prev next
ACWA Members Attend Workshop on Proposed Water Use Efficiency Regulations

SACRAMENTO – The State Water Resources Control Board today held a pre-rulemaking workshop on the proposed regulatory framework for “Making […]

Alameda County Water District Board of Directors Rescind Drought Surcharge

The Alameda County Water District Board of Directors voted unanimously at a special Board meeting on March 21, to rescind […]

West Basin Announces Legislators of the Year

CARSON –  The West Basin Municipal Water District (West Basin) Board of Directors announced its Legislator of the Year awardees. […]

Westlands Names Febbo as New GM

FRESNO — Today, the Board of Directors of Westlands Water District (District) named Allison Febbo as the next General Manager. […]

WVWD Breaks Ground on the Oliver P. Roemer Water Filtration Facility Upgrade

RIALTO – On Saturday, March 18, the West Valley Water District (WVWD) was joined by government and community leaders to […]

Vandeyar Becomes First Woman of Color to Lead the City’s Department of Utilities

Pravani Vandeyar recently was appointed by City Manager Howard Chan to direct the Department of Utilities. Vandeyar, who has more […]

LCRR Inventory Industry Guidance Document Available

WASHINGTON, D.C. – The Association of California Water Agencies joined the California Municipal Utility Association and others to create an […]

March 17, 2023 ACWA News Now Available Online

Sorry, but only ACWA members have permission to view this content. Member login is required.

Popularity of ACWA Events Growing

The phenomenal success of our recent ACWA D.C. Conference proved once again that demand for our programs is off the […]

Spotlight March 2023: East Bay Municipal Utility District Celebrates a Century

Today, East Bay Municipal Utility District customers just turn the tap, and the miracle of fresh, clean water is theirs, […]

EMWD Releases Annual Report Highlighting Organizational Successes

PERRIS — Eastern Municipal Water District today released its first-ever annual report, highlighting its 2022 accomplishments in providing services to […]

March 2023 Priority Issues Update Now Available

The March 2023 Priority Issues Update is now available online to members. The update is a summary of the latest […]

PWD Reverts to Voluntary Conservation Following Winter Storms

PALMDALE – Palmdale Water District (PWD) has downgraded its conservation guidelines from mandatory to voluntary, effectively eliminating patrolling for off-day […]

EPA Releases Proposed Drinking Water Standard for PFAS

WASHINGTON, D.C. – On March 14, the Environmental Protection Agency (EPA) announced the proposed National Primary Drinking Water Regulation for […]

Madera Irrigation District Will Provide Water to its Landowners at No Charge

The Madera Irrigation District (MID or District) Board of Directors has made the decision to provide water free of charge […]