Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

General Government & Information Technology Committee

HB 1464

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Transferring public water system financial assistance activities from the public works board and the department of commerce to the department of health.

Sponsors: Representatives Hudgins, MacEwen, Senn and S. Hunt; by request of Department of Health.

Brief Summary of Bill

  • Transfers the financial administration of the Safe Water Assistance Account from the Public Works Board and the Department of Commerce to the Department of Health.

Hearing Date: 2/3/15

Staff: Marsha Reilly (786-7135).

Background:

Established in 1974, the Safe Drinking Water Act (SDWA) is the federal law that ensures the quality of drinking water. Under the SDWA, the United States Environmental Protection Agency (EPA) sets standards for drinking water quality and oversees the states, localities, and water suppliers who implement those standards. The law requires actions to protect drinking water and its sources: rivers, lakes, reservoirs, springs, and ground water wells. Federal funds are provided to states for water system infrastructure assistance through a multi-billion-dollar state revolving loan fund.

The Drinking Water Assistance Account (DWAA) was created in the state treasury in 1995 to allow the state to use federal funding made available through the SDWA to fund a state revolving loan fund program. The loan program is administered through the Department of Health (DOH), the Public Works Board (PWB), and the Department of Commerce (DOC). The account is specifically authorized to receive interest, and the interest transferred to the account may be used for eligible account purposes. The statute specifies any necessary subaccounts may be created within the account, and in 2001 two accounts were created in the state treasury, the Drinking Water Assistance Administrative Account and the Drinking Water Assistance Repayment Account, to receive proportionate shares of interest based on their average daily balance.

Expenditures from the account may be made by the Secretary of Health (Secretary), the PWB, or the DOC. The account funds are to be used to assist local governments and public water systems to provide safe and reliable drinking water, to provide services and assistance authorized by federal law, and to administer the revolving loan program.

Money may be placed in the account from the proceeds of bonds, transfers from other state funds or accounts, federal capitalization grants or assistance, repayments of moneys borrowed from the account, interest payments made by borrowers from the account. All interest earned on moneys deposited in the account, including repayments, remain in the account and may be used for any eligible purpose.

To administer the program, the DOH, the PWB, and the DOC are tasked with the following duties:

Summary of Bill:

All duties for administering the SWAA are transferred from the PWB and the DOC to the DOH. By December 31, 2015, the DOH, the PWB, and the DOC shall develop a memorandum of understanding for the transfer. Beginning July 1, 2017, expenditures from the Drinking Water Assistance Account may only be made by the Secretary. The Drinking Water Assistance Administrative Account and the Drinking Water Assistance Repayment Account are eliminated and an administrative subaccount is created in the state treasury.

Technical changes are made to update and clarify the statute and to reflect the transfer of the program.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.