BILL NUMBER: AB 975 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Fong
FEBRUARY 26, 2009
An act to amend Section 389 of add Section
781.5 to, and to repeal and add Section 781 of, the Public
Utilities Code, relating to the Secretary of the California
Environmental Protection Agency. water corporations.
LEGISLATIVE COUNSEL'S DIGEST
AB 975, as amended, Fong. Secretary of the California
Environmental Protection Agency: report. Water
corporations: water meters.
The existing Water Measurement Law requires every water purveyor,
as defined, who sells, leases, rents, furnishes, or delivers water
service, as defined, for potable water, to any person, as defined, to
require, as a condition of new water service, that a suitable water
meter to measure the water service be installed, requires that the
cost of installation of the meter be paid by the user of water, and
authorizes the water purveyor to impose and collect charges for those
costs. These requirements are not applicable to a community water
system that serves fewer than 15 service connections used by yearlong
residents or regularly serves fewer than 25 yearlong residents, or a
single well that services the water supply of a single-family
residential home. The Water Measurement Law contains additional
requirements relative to the installation of water meters and charges
for water relative to urban water suppliers, as defined. The Water
Measurement Law authorizes a water purveyor, including an urban water
supplier, to recover the cost of providing services related to the
purchase, installation, and operation and maintenance of water meters
from rates, fees, or charges.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including water corporations, as
defined. Existing law authorizes the commission to fix the rates and
charges for every public utility, and requires that those rates and
charges be just and reasonable. The existing Public Utilities Act
prohibits the commission from requiring certain water corporations,
or a residential customer of those corporations, to install a water
meter, except after a public hearing held within the service area of
the water corporation at which hearing all of the following findings
are made: (1) metering will be cost effective within the service area
of the water corporation, (2) metering will result in a significant
reduction in water consumption within the corporation's service area,
and (3) the costs of metering will not impose an unreasonable
financial burden on customers within the corporation's service
territory, unless the commission finds metering is necessary to
assure continuation of an adequate water supply within the service
territory.
This bill would repeal the existing limitation in the Public
Utilities Act that limits the authority of the commission to require
a water corporation to install water meters. The bill would require a
water corporation with 500 or more service connections that is not
subject to specified requirements of the Water Measurement Law to
install a water meter on each new service connection and, by not
later than January 1, 2020, to install, on and after January 1, 2010,
a water meter upon each unmetered service connection. The bill would
require a water corporation with less than 500 service connections
as of January 1, 2010, that thereafter reaches 500 or more service
connections and that is not subject to specified requirements of the
Water Measurement Law, to install a water meter upon each unmetered
service connection within 10 years after it reaches 500 or more
service connections. The bill would require each water corporation
that has installed water meters, or caused water meters to be
installed, that is not subject to specified requirements of the Water
Measurement Law, on and after January 1, 2015, to charge customers
for potable water based on the actual volume of deliveries, as
measured by the water meter, but authorizes the water corporation to
delay imposition of volume-based water service charges for one annual
billing cycle in order to provide customers with experience with
those charges. The bill would authorize a water corporation to
recover the cost of providing services related to the purchase,
installation, operation, and maintenance of water meters in rates,
fees, or charges, subject to existing law relative to approval of
rates by the commission, and would require the commission to ensure
that a water corporation complies with these requirements or the
requirements of the Water Measurement Law.
This bill would authorize the commission to require a water
corporation that furnishes potable water for residential use through
less that 500 service connections that is not subject to specified
requirements of Water Measurement Law, or a residential customer of
such corporation, to install a water meter at any water service
connection between the water system of the corporation and the
customer if the service connection was unmetered on January 1, 1979,
if after a public hearing held within the service area of the water
corporation, and upon the commission finding, based upon the evidence
presented at that hearing, that (1) metering will be cost effective
within the service area of the corporation, (2) metering will result
in a reduction in water consumption within the service area of the
water corporation, or (3) the costs of metering will not impose an
unreasonable financial burden on customers within the service area of
the corporation unless it is found to be necessary to ensure
continuation of an adequate water supply within the service area of
the corporation.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Existing law requires the Secretary of the California
Environmental Protection Agency to prepare and submit to the
Legislature an annual report on the existence, status, and progress
of any public policy measures for cost-shifting, as specified, each
year from 1999 to 2001, inclusive.
This bill would delete those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 781 of the Public
Utilities Code is repealed.
781. The commission shall not require any water corporation which
furnishes water for residential use through five or more service
connections or which serves an average of 25 or more persons per day
for at least 60 days per year, nor any residential customer of such
corporation to install any watermeter at any water service connection
between the water system of the corporation and the customer if on
January 1, 1979, such service connection was unmetered except after a
public hearing held within the service area of the corporation at
which hearing all of the following findings have been made:
(a) Metering will be cost effective within the service area of the
corporation.
(b) Metering will result in a significant reduction in water
consumption within the service area of the corporation.
(c) The costs of metering will not impose an unreasonable
financial burden on customers within the service area of the
corporation unless it is found to be necessary to assure continuation
of an adequate water supply within the service area of the
corporation.
SEC. 2. Section 781 is added to the
Public Utilities Code , to read:
781. (a) (1) Each water corporation with 500 or more service
connections that is not subject to the requirements of Section 525,
526, 527, or 528 of the Water Code shall install, on and after
January 1, 2010, a water meter on each new service connection.
(2) Each water corporation with 500 or more service connections as
of January 1, 2010, that is not subject to the requirements of
Section 525, 526, 527, or 528 of the Water Code, shall install a
water meter upon each unmetered service connection by not later than
January 1, 2020.
(3) Each water corporation with less than 500 service connections
as of January 1, 2010, that thereafter reaches 500 or more service
connections and that is not subject to the requirements of Section
525, 526, 527, or 528 of the Water Code, shall, within 10 years of
attaining that threshold, install a water meter upon each unmetered
service connection.
(4) Each water corporation that is subject to the requirements of
Section 525, 526, 527, or 528 of the Water Code shall install water
meters pursuant to those sections.
(b) (1) Each water corporation that has installed water meters, or
caused water meters to be installed, that is not subject to Section
525, 526, 527, or 528 of the Water Code, shall, on and after January
1, 2015, charge customers for potable water based on the actual
volume of deliveries, as measured by the water meter.
(2) Each water corporation that is subject to Section 525, 526,
527, or 528 of the Water Code shall charge customers for potable
water based on the actual volume of deliveries, as measured by the
water meter, consistent with the requirements of those sections.
(3) Notwithstanding paragraph (1), in order to provide customers
with experience in volume-based water service charges, a water
corporation that is subject to paragraph (1) may delay, for one
annual seasonal cycle of water use, the use of meter-based charges
for service connections that are being converted from nonvolume-based
billing to volume-based billing.
(c) A water corporation may recover the cost of providing services
related to the purchase, installation, operation, and maintenance of
water meters in rates, fees, or charges. Rates, fees, or charges
recovered by the water corporation pursuant to this section are
subject to approval by the commission pursuant to Article 1
(commencing with Section 451) of Chapter 3 and Article 2 (commencing
with Section 727) of this chapter.
(d) The commission shall ensure that each water corporation that
is subject to the requirements of this section or the requirements of
the Water Measurement Law (Chapter 8 (commencing with Section 500)
of Division 1 of the Water Code) comply with those requirements.
SEC. 3. Section 781.5 is added to the
Public Utilities Code , to read:
781.5. The commission may require a water corporation that
furnishes potable water for residential use through less that 500
service connections that is not subject to the requirements of
Section 525, 526, 527, or 528 of the Water Code, or a residential
customer of the corporation, to install a water meter at any water
service connection between the water system of the corporation and
the customer if the service connection was unmetered on January 1,
1979, if after a public hearing held within the service area of the
corporation, the commission finds, based upon the evidence presented
at that hearing, that any of the following are true:
(a) Metering will be cost effective within the service area of the
corporation.
(b) Metering will result in a reduction in water consumption
within the service area of the corporation.
(c) The costs of metering will not impose an unreasonable
financial burden on customers within the service area of the
corporation unless it is found to be necessary to ensure continuation
of an adequate water supply within the service area of the
corporation.
SEC. 4. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 389 of the Public Utilities
Code is amended to read:
389. The Secretary of the California Environmental Protection
Agency, in consultation with interested stakeholders including
relevant state and federal agencies, boards, and commissions, shall
evaluate and recommend to the Legislature public policy strategies
that address the feasibility of shifting costs from electric utility
ratepayers, in whole or in part, to other classes of beneficiaries.
This evaluation also shall address the quantification of benefits
attributable to the solid-fuel biomass industry and implementation
requirements, including statutory amendments and transition period
issues that may be relevant, to bring about equitable and effective
allocation of solid-fuel biomass electricity costs that ensure the
retention of the economic and environmental benefits of the biomass
industry while promoting measurable reduction in real costs to
ratepayers. This evaluation shall be in coordination with the
California Energy Resources Conservation and Development Commission's
efforts pursuant to subdivision (b) of Section 383, addressing
renewable policy implementation issues. The Secretary of the
California Environmental Protection Agency shall submit a final
report to the Legislature, using existing agency resources, prior to
March 31, 1997.