Report 2021-118 Recommendation 17 Responses

Report 2021-118: State Water Resources Control Board: It Lacks the Urgency Necessary to Ensure That Failing Water Systems Receive Needed Assistance in a Timely Manner (Release Date: July 2022)

Recommendation #17 To: Water Resources Control Board

To address the funding gap identified in its needs assessment report, the State Water Board should immediately work with the Legislature, and with federal agencies to the extent possible, to request the resources necessary to ensure that water systems can meet drinking water standards, including repairing or improving water treatment technologies, consolidating water systems, and providing technical assistance.

1-Year Agency Response

State funding priorities are determined annually by the State Legislature and Governor.

The State Water Board informs the State Legislature of its funding investments and updates identified needs annually through its SAFER Fund Expenditure Plan and the Drinking Water Intended Use Plan.

State Budget Act of 2023: The $1.3B for wastewater and drinking water projects provided under the State Budget Act of 2022 was reduced by $200M. The $200M funding may be re-appropriated in a subsequent fiscal year. The State Water Board elected to allocate the $200M reduction to primarily to the wastewater allocation due to overwhelming demand for the drinking water projects that address high public health priorities.

Completion Date: January 2023
Response Date: July 2023

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

State funding priorities are determined annually by the State Legislature and Governor.

The State Water Board informs the State Legislature of its funding investments and updates identified needs annually through its SAFER Fund Expenditure Plan and the Drinking Water Intended Use Plan.

State Budget Act of 2021, the Division of Financial Assistance (DFA) received: $1.3B for wastewater and drinking water projects; $30M for Per-and polyfluoroalkyl substances (PFAS) support for water systems; $150M for groundwater cleanup and water recycling projects.

State Budget Act of 2022, DFA received: $50M for Drinking Water Emergencies; $400M for Clean Water (CW) and Drinking Water (DW) State Revolving Funds (SRF); $190M for water recycling; $50M PFAS support for water systems.

This new funding supports our safe drinking water programs and is in addition to existing State bond and continuously appropriated DWSRF monies, which are further capitalized by the federal Bipartisan Infrastructure Law. In FY 22/23, the DWSRF received approximately $220M in federal funding for any eligible drinking water project, $73M in federal funding for drinking water projects addressing emerging contaminants and $250M in federal funding for the replacement of lead services lines.

Collectively, this funding will continue to provide for drinking water benefits via a variety of projects, including technical assistance, addressing aging infrastructure, new treatment improvements and consolidation of drinking water systems. These significant federal and State investments are sufficient in the near-term to support priority projects for which planning has been completed and to address planning needs in failing systems requiring such assistance.

Completion Date: January 2023
Response Date: January 2023

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

The State and federal funding priorities are determined annually by the State Legislature, Governor's Office and Congress.

This new funding provides direct and indirect benefit for safe drinking water and is in addition to existing general obligation bond and continuously appropriated DWSRF monies, which are further capitalized by the federal Infrastructure and Investment and Jobs Act. In State Fiscal Year 2022-2023, the DWSRF was provided approximately $220M in federal funding for any eligible drinking water project, $80M in federal funding for drinking water projects addressing emerging contaminants and $250M in federal funding for the replacement of lead services lines.

Collectively, this funding will continue to provide for drinking water benefits via a variety of projects, including technical assistance, repairing and replacing aging infrastructure, new treatment improvements and consolidation of drinking water systems.

Estimated Completion Date: June 30, 2023
Response Date: September 2022

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2021-118

Agency responses received are posted verbatim.