BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING
          AB 1975 (Fong)
          As Amended  June 1, 2010
          Majority vote
           
           WATER, PARKS & WILDLIFE           13-0               
          APPROPRIATIONS      12-2                            
           
           ----------------------------------------------------------------- 
          |Ayes:|Huffman, Fuller, Bill     |Ayes:|Fuentes, Ammiano,         |
          |     |Berryhill, Arambula, Tom  |     |Bradford,                 |
          |     |Berryhill, Blumenfield,   |     |Charles Calderon, Coto,   |
          |     |Caballero, Ruskin,        |     |Davis, Monning, Ruskin,   |
          |     |Fletcher, Bonnie          |     |Skinner, Solorio,         |
          |     |Lowenthal, Salas, Yamada, |     |Torlakson, Torrico        |
          |     |Fong                      |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires water submetering on multiunit structures.   
          Specifically,  this bill  :  

          1)Requires multiunit residential structures or mixed use  
            residential and commercial structures that are permitted after  
            January 1, 2013, to add, as a condition of new service, water  
            meters or submeters that measure the water supplied to each  
            individual unit.

          2)Suspends the requirement to install submeters if the  
            Department of Weights and Measures has not approved a  
            sufficient number of qualifying submeters.

          3)Requires the owner or operator of a multiunit residential  
            structure with meters or submeters on each dwelling unit to  
            charge tenants for water and sewer based on actual water  
            usage.  Disallows charges pursuant to this bill if the meter  
            or submeter is not of an approved type or installed or  
            operated in compliance with existing law. 

          4)Allows property owners to recover actual monthly cost from  
            each tenant for submeter monitoring and billing, but not more  
            than $2.








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          5)Requires property owners to ensure that each submeter complies  
            with all laws and regulations governing the installation,  
            certification, maintenance, billing, and testing of water  
            submeters.  

          6)Prohibits a water purveyor from imposing a fee for water meter  
            installation when the water meter or submeter is installed by  
            the property owner or his or her agent.

          7)Creates an exception to the metering requirement where a  
            structure is greater than four stories high and plumbed in a  
            configuration that makes individual unit metering infeasible.

           EXISTING LAW  :

          1)Requires urban water suppliers that do not get water from the  
            federal Central Valley Project to install water meters on all  
            municipal and industrial service connections and to charge  
            each customer based on actual volume of water delivered.

          2)Each water corporation with 500 or more service connections  
            that is not already subject to water metering requirements  
            under the existing Water Measurement Law must currently  
            install a water meter on each new service connection and must  
            retrofit each unmetered service connection by January 1, 2025.

           FISCAL EFFECT  :  Negligible state costs, if any.  Costs to local  
          governments of an unknown amount to ensure installation of  
          meters in affected new units and for county sealers to  
          periodically calibrate meters and submeters.  These local costs  
          will be fully covered by fees paid by building owners and  
          operators.

          AB 1173 (Keene, 2007) was similar to this bill in that it, too,  
          would have required a building owner or operator to charge for  
          water and sewage an individual unit in a multi-unit building  
          based on that unit's water use.  However, AB 1173, unlike this  
          bill, would have allowed an alternative method of determining an  
          individual unit's water charge based upon the relative  
          square-foot area of the unit.  This alternative method was  
          controversial because some feared it would lead to water charges  
          disproportionate to water use and be especially harmful to  
          low-income residents.  Because of this controversy, the Division  








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          of Measurement Standards at the Department of Food and  
          Agriculture (CDFA) assumed it would need to resolve disputes  
          about meters and submeters.  (CDFA indicates it anticipates no  
          such costs associated with this bill.)

           COMMENTS  :  As California attempts to manage its scarce water  
          supplies, the installation of water meters on multiunit  
          residential and mixed use commercial buildings will encourage  
          increased conservation by making homeowners, business owners, or  
          renters aware of the amount of water they are utilizing.   
          Charging based on actual usage will reward those who conserve.

          Conceptually, this legislation is similar to a draft ordinance  
          requiring submetering that was adopted by the City of San Diego  
          on April 5, 2010.  San Diego adopted its ordinance after a  
          report from the City of San Diego Office of the Independent  
          Budget Analyst found that multifamily units currently comprise  
          44% of the total housing in San Diego, the trend is increasing,  
          and multifamily properties achieve a 15% to 39% water savings  
          when submetered.

          An environmental justice group who supports this bill's goals  
          opposes its language empowering landlords to submeter and bill  
          tenants fearing this would lead to abuses.  They state that  
          over-charging, failing to maintain systems, and denying access  
          to records are just a few of the problems currently being  
          experienced as a result of landlords taking on the role of  
          utilities in mobilehome parks, many of which are submetered.   
          They suggest amending the bill to require submetered tenants to  
          be the direct customers of the water utilities just as  
          single-family homeowners are.   

          One county advises this bill would likely encourage water  
          conservation and efficiency but opposes the provision requiring  
          submetering to be a condition of new water service to the  
          property.  This county wants to eliminate water purveyor  
          responsibility for ensuring submetering and shift the  
          requirement to a construction permit condition of approval.  


           Analysis Prepared by:     Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096










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