5910

AN ACT Relating to public drinking water systems; adding a new chapter to Title 70 RCW; and making appropriations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that a state-wide assessment of water systems has shown that public drinking water systems have a critical need for financial assistance to assure safe, reliable, and viable water supplies, meet the requirements of the federal safe drinking water act, provide for comprehensive planning and regional planning of public water systems, assess the status of the state's drinking water quality, develop least-cost solutions to public water systems through consolidation of small systems into larger and financially viable utilities, and implement demand management strategies to more effectively use the state's financial resources and water resources.

The federal government has indicated an intention to provide new funding for water system needs on a national basis within a program of federal investment in infrastructure intended to provide a significant number of jobs nation-wide this year. The state of Washington does not have the broad-based authority and ability to promptly receive and disburse federal assistance to eligible water systems.

It is the intent of the legislature to provide for a system of grants and loans, in addition to existing state financial assistance programs, that will: (1) Receive and utilize federal funding to provide assistance for planning, design, acquisition, construction, consolidation, and improvement of public water systems facilities and activities in the achievement of state and federal public water system requirements; (2) meet the short-term and long-term needs identified and prioritized in the state-wide assessment; and (3) encourage responsible and efficient water system management throughout the state.

It is the further intent of the legislature to use existing state funding programs for the administrative and financial mechanisms necessary to ensure prompt and coordinated delivery of the financial assistance to public water systems authorized under this chapter.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the public works board.

(2) "Department" means the department of health.

(3) "Private water purveyor" means a public water system not owned by a governmental body.

(4) "Public water purveyor" means a governmental body, including a public or quasi-public organization, that owns and operates a public water system, or the authorized agent of such an entity.

(5) "Public water system" has the meaning prescribed in the Washington state safe drinking water act, chapter 70.119A RCW.

NEW SECTION. Sec. 3. The drinking water assistance account is established in the state treasury. Money may be placed in the account from the proceeds of bonds when authorized by the legislature, transfers from other state funds or accounts, federal financial assistance, or any other lawful source. Moneys from the account may be spent only by the secretary of health or the public works board after appropriation. Expenditures from the account may be used only to meet the purposes of this chapter.

NEW SECTION. Sec. 4. The department shall, in conjunction with the board, purveyors, local health departments, and other interested parties, establish a method to provide for grants and loans to public water systems that is consistent with the findings and intent contained in section 1 of this act. The department shall ensure that such financial assistance:

(1) Utilizes, to the maximum extent, all available federal financial assistance, consistent with any terms and conditions under which such assistance is provided to the state and its public water systems;

(2) Is consistent with existing water resource planning and management, including coordinated water supply plans, regional water resource plans, and comprehensive plans under the growth management act, chapter 36.70A RCW;

(3) Provides a priority to least-cost solutions, including consolidation and restructuring of small systems into more economical units and the provision of regional facilities;

(4) Assures implementation of water conservation and other demand management measures consistent with state guidelines for water utilities;

(5) Provides assistance for the necessary planning and engineering to assure that consistency, coordination, and proper professional review are incorporated into projects or activities proposed for funding;

(6) Provides for comprehensive testing and evaluation of the water quality of the state's public water systems to assess on a state-wide basis the quality of the state's drinking water, assure that priority for financial assistance is provided to systems and areas with threats to public health from contaminated supplies, fully utilize the state's flexibility in implementing the federal safe drinking water act, and reduce in appropriate cases the substantial increases in costs and rates that customers of small systems would otherwise incur under the monitoring and testing requirements of the federal safe drinking water act; and

(7) Is coordinated, to the maximum extent possible, with other state programs that provide financial assistance to public water systems and state programs that address existing or potential water quality or drinking water contamination problems.

NEW SECTION. Sec. 5. The board shall develop a financial assistance program using appropriated funds from the drinking water assistance account to meet the purposes and implement the programs authorized in this chapter, and which the board reasonably determines is necessary after consultation with the department and water purveyors.

The board shall provide a process whereby grants and loans may be made to public water systems with the most critical public health needs. In addition to critical needs, the determination shall include the capacity of the water system to effectively manage its resources, the ability to promptly commence the project, the relative benefit to the community served, with an emphasis on providing financial assistance to those systems that are ready to proceed and systems that will provide water system improvements to the greatest number of people, and any other criteria that the board and department jointly and reasonably determine in consultation with water system purveyors.

The department shall establish minimum standards for financial viability and water planning to be considered for this program. The department shall make the information available to the board in a timely manner.

NEW SECTION. Sec. 6. The department and the board shall be entitled to reasonable administrative expenses in developing and implementing the programs authorized under this chapter.

In all cases where the department, board, and any other department, agency, board, or commission of state government interact or provide service under this chapter, the administering government body shall endeavor to provide cost-effective services. The provision of services shall include: (1) The use of policy statements or guidelines instead of administrative rules; (2) using existing management mechanisms rather than creating new administrative structures; (3) investigating the use of service contracts, either with other governmental entities or with nongovernmental service providers; (4) the use of joint or combined financial assistance applications; and (5) any other method or practice designed to streamline the delivery of services.

NEW SECTION. Sec. 7. The sum of ........... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1995, from the drinking water assistance account created in section 3 of this act to the department of health for the purpose of implementing planning under section 4 of this act. Not more than . . . . dollars of this amount shall be expended for program administration.

NEW SECTION. Sec. 8. The sum of ........... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1995, from the drinking water assistance account created in section 3 of this act to the department of health for the purpose of implementing restructuring under section 4 of this act. Not more than . . . . dollars of this amount shall be expended for program administration.

NEW SECTION. Sec. 9. The sum of ........... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1995, from the drinking water assistance account created in section 3 of this act to the department of health for the purpose of implementing testing under section 4 of this act.

NEW SECTION. Sec. 10. The sum of ........... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1995, from the drinking water assistance account created in section 3 of this act to the public works board for the purpose of implementing the loan and grant program under section 5 of this act. Not more than five percent of this amount shall be expended for program management.

NEW SECTION. Sec. 11. Sections 1 through 6 of this act shall constitute a new chapter in Title 70 RCW.