State Water Resources Control Board chair Joaquin Esquivel and drinking-water staff updated the subcommittee on the Safe and Affordable Fund and related programs to address failing and at-risk public water systems and domestic wells.

Esquivel described a multi-year effort to identify and close access gaps and cited progress: the number of Californians lacking reliable safe drinking water has moved from about 1.6 million to roughly 800,000 as the board and partners delivered projects and consolidations. "Since 2019, we've been able to go from 1,600,000 Californians down now to about 800,000 Californians," Esquivel said.

The board told lawmakers its needs assessment estimates about a $5 billion funding gap over the next five years to remediate failed and at-risk systems and domestic wells. The board emphasized consolidation as the most durable technical fix for many small systems while acknowledging not every community is a candidate for consolidation.

LAO and committee members focused on two long-term issues: affordability and the funding source for the SAFER program. The SAFER program currently receives greenhouse gas reduction fund (GGRF) resources capped at about $130 million per year for up to ten years; LAO staff reminded the committee that this funding is scheduled to end in FY 2029/30, and committee members asked what the administration proposes after that.

Committee members also requested more detail on safeguards to keep project investments durable. Board staff said rate studies, operations-and-maintenance considerations, and consolidation where feasible are standard parts of project planning. Members asked the board to provide follow-up materials describing long-term maintenance commitments and program-level measures to protect investments.

Why it matters: small and failing water systems and domestic wells disproportionately affect disadvantaged and rural communities; the committee flagged the need to ensure the states current emergency and interim responses translate into lasting, affordable service.

Next steps: the board will provide follow-up documentation on program maintenance strategies, help the committee analyze the SAFER funding cliff in 2029/30, and continue to report publicly on project awards and consolidation outcomes.