116682
. (a) Where a public water system, or a state small water
system within a disadvantaged community, consistently fails to
provide an adequate supply of safe drinking water, the State Water
Resources Control 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 Water
Resources Control Board may also 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 State
Water Resources Control Board may set timelines and performance
measures to facilitate completion of consolidation.
(b) Prior to ordering consolidation or extension of service as
provided in this section, the State Water Resources Control 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) 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.
(A) During this period, the State Water Resources Control 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.
(B) Upon a showing of good cause, the deadline may be extended by
the State Water Resources Control 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.
(7) Obtain written consent from any domestic well owner 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 water-related grant funding from the state other than
funding to mitigate a well failure, disaster, or other emergency.
(8) 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 Water Resources Control 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.
(c) Upon expiration of the deadline set by the State Water
Resources Control Board pursuant to paragraph (6) of subdivision (b),
the State Water Resources Control Board shall do the following:
(1) Consult with the potentially receiving water system and the
potentially subsumed water system, if any.
(2) Conduct a public hearing, in a location as close as feasible
to the affected communities.
(A) The State Water Resources Control 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.
(B) 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.
(C) The hearing shall provide an opportunity for public comment.
(d) Prior to ordering consolidation or extension of service, the
State Water Resources Control 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
Water Resources Control 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 Water Resources Control
Board shall provide appropriate financial assistance for the
infrastructure needed for the consolidation or extension of service.
The State Water Resources Control 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 Water Resources Control 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 for water corporations subject to
the commission's jurisdiction or the State Water Resources Control
Board for all other water systems.
(4) Coordinate with the appropriate local agency formation
commission and other relevant local agencies to facilitate the change
of organization or reorganization.
(f) 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.
(g) 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.