Fact Sheet

Why is there a need for safe drinking water funding in California?

  • Most Californians have access to safe drinking water, but some disadvantaged communities do not
  • Lack of access to safe drinking water is a public health issue the state must address
  • A funding gap exists for operations & maintenance (O&M) costs for community water systems that treat water
  • In general, O&M costs cannot be financed using existing state and federal drinking water funding sources
  • In some situations, consolidation of a community water system may be the most effective solution
  • A financial solution is needed for O&M and consolidation costs that can complement existing federal and state funding sources for capital costs

What are the elements of the solution approved by the Conference Committee?

  • In the first year, Fiscal Year 2019-’20, the safe drinking water funding solution will be funded with $100 million from the Greenhouse Gas Reduction Fund (GGRF) and $30 million from the General Fund
  • After the first year, the funding will be 5% of the GGRF continuously appropriated – capped at $130 million per year
  • The agreement includes General Fund funding as a backstop if 5% of the GGRF is less than $130 million in any year
  • Trailer bill language will create a safe drinking water fund and provide the framework for the funding program