CA SB1081

Expands the definition of "publicly owned treatment works serving a small community" eligible for penalty relief by adding facilities serving communities of 3,000 residents or less as a factor in determining financial hardship

Allows small community wastewater treatment plants meeting the expanded definition to spend mandatory minimum penalty amounts on compliance projects instead of paying fines to the state

Maintains existing eligibility criteria including treatment works serving populations of 20,000 or fewer, rural counties, and consideration of median income, unemployment rates, and low population density

Requires compliance projects to correct violations within five years, follow state enforcement policy, and include a financing plan

Introduced by Senator Laird on February 13, 2026, and would amend Section 13385 of the Water Code