5910-S.E AMH ENA REIN 3 [3]

ESSB 5910 - H COMM AMD

By Committee on Environmental Affairs

Strike everything after the enacting clause and insert:

"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/or 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; (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" means a water system with fifteen or more service connections, regardless of the number of people, or a system serving an average of twenty-five or more people per day for sixty or more days within a calendar year, regardless of the number of service connections.

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 and to reimburse the department and the board for their reasonable administrative expenses in developing and implementing the programs authorized under this chapter.

NEW SECTION. Sec. 4. The department shall, by January 1, 1994, in consultation with the board, purveyors, local health departments, and other interested parties, establish guidelines and requirements for the provision of grants and/or loans to public water systems that are consistent with the findings and intent contained in section 1 of this act. The department shall ensure that guidelines and requirements:

(1) Utilize, to the maximum extent, all available federal financial assistance;

(2) Are 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) Prioritize least-cost solutions, including consolidation and restructuring of small systems into more economical units and the provision of regional facilities;

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

(5) Provide 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) Include minimum standards for financial viability and water system planning;

(7) Provide for testing and evaluation of the water quality of the state's public water systems to assure that priority for financial assistance is provided to systems and areas with threats to public health from contaminated supplies 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

(8) Are 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 guidelines authorized in this chapter. The board shall consult with the department and water purveyors in developing the financial assistance program.

The board shall develop criteria for grants and/or loans to be made to public water systems. The criteria shall emphasize public water systems with the most critical public health needs; the capacity of the water system to effectively manage its resources; the ability to promptly commence the project; and the relative benefit to the community served. Priority shall be given to those systems that are ready to proceed, that will provide water system improvements to the greatest number of people, and any other criteria that the board shall develop in consultation with the department and water system purveyors.

NEW SECTION. Sec. 6. If the department, board, or any other agency of state government provides financial assistance, testing, planning, or consolidation or restructuring assistance under this chapter, the administering agency shall endeavor to provide these services in a cost-effective manner. The methods agencies may consider to provide cost-effective services include, but are not limited to:

(1) The use of policy statements or guidelines instead of administrative rules when appropriate under chapter 34.05 RCW;

(2) The use of existing management mechanisms rather than creating new administrative structures;

(3) 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) Other methods or practices designed to streamline the delivery of services.

NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

NEW SECTION. Sec. 8. Sections 1 through 6 of this act shall constitute a new chapter in Title 70 RCW."