SB 1081 California Senate · 2025-2026 Regular Session

Waste discharge requirements: minimum penalties: exception: publicly owned treatment works.

Summary
Under existing law, the State Water Resources Control Board and the 9 California regional water quality control boards regulate water quality and prescribe waste discharge requirements in accordance with the Porter-Cologne Water Quality Control Act (act) and the national pollutant discharge elimination system permit program. The act requires mandatory minimum penalties to be assessed for serious violations, as defined, relating to waste discharge requirements, and for certain violations relating to waste discharge requirements and reports whenever there are 4 or more violations in a period of 6 consecutive months, except as provided. The act authorizes the state board or regional board, in lieu of assessing all or a portion of those mandatory minimum penalties against a publicly owned treatment works serving a small community, to instead require the publicly owned treatment works to spend an equivalent amount towards the completion of a compliance project proposed by the publicly owned treatment works if the state board or regional board make specified findings. The act defines "a publicly owned treatment works serving a small community" for these purposes to mean a publicly owned treatment works serving a population of 20,000 persons or fewer or a rural county, with a financial hardship as determined by the state board after consideration of specified factors. This bill would expand the authorization for the state board or regional board to require funding of a compliance project in lieu of the otherwise mandatory penalty to apply to a publicly owned treatment works serving a population of 3,000 persons or fewer, with a financial hardship, determined by the state board, within the 10 years preceding the assessment of the penalty.
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2026
Committee Review
Floor Vote
Governor
Introduced Feb 13, 2026 Last action May 14, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

02/13/26 - Introduced 04/09/26 - Amended Senate · 2 edits · Apr 9, 2026
MINOR
The Senate amendment restructures the definition of 'a publicly owned treatment works serving a small community' in subdivision (k)(2) of Water Code Section 13385, adding a new alternative criterion that allows a POTW serving 3,000 or fewer persons to qualify for the compliance-project-in-lieu-of-penalty option if it experienced a financial hardship within the 10 years preceding the penalty assessment. This broadens eligibility by decoupling the financial hardship determination from the time of the violation and giving small communities a longer look-back window.
Scope change
The bill's scope expands slightly: small POTWs (3,000 or fewer served) can now qualify for the compliance project alternative based on a financial hardship that occurred at any point within the prior 10 years, rather than being limited to current conditions. This makes the penalty-avoidance mechanism more accessible to small communities that may have recovered financially since their hardship period.
ELIGIBILITY

Subdivision (k)(2) is restructured into two alternative criteria: (A) the existing 20,000-person or rural county threshold with financial hardship factors, and (B) a new pathway for POTWs serving 3,000 or fewer persons that had a financial hardship determined within the 10 years preceding the penalty assessment. This allows small communities to qualify based on past financial conditions rather than only current ones.

DEFINITION

The definition of 'a publicly owned treatment works serving a small community' is reorganized from a single sentence into a two-part disjunctive test (satisfies either A or B), clarifying the relationship between the 3,000-resident threshold and the financial hardship requirement.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
12
Key actions
4
Committee
3
Amendments
2
May 14, 2026
Upper · Passed
May 14 hearing: Held in committee and under submission.
upper
Apr 16, 2026
Upper · Passed
April 20 hearing postponed by committee.
upper
Apr 9, 2026
Upper · Passed
Read second time and amended. Re-referred to Com. on APPR.
upper
Apr 8, 2026
Upper · Passed
From committee: Do pass as amended and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 6. Noes 0. Page 3792.) (April 8).
upper
Feb 26, 2026
Committee
Referred to Com. on E.Q.
upper
Feb 13, 2026
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of John Laird
John Laird
DDemocratic
CA
17