BILL ANALYSIS
-----------------------------------------------------------------
| |
| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2009-2010 Regular Session |
| |
-----------------------------------------------------------------
BILL NO: AB 1975 HEARING DATE: June 22, 2010
AUTHOR: Fong URGENCY: No
VERSION: June 16, 2010 CONSULTANT: Dennis O'Connor
DUAL REFERRAL: Committee on Rules FISCAL: Yes
SUBJECT: Water charges and meters: multiunit structures.
BACKGROUND AND EXISTING LAW
The Water Measurement Law required, beginning January 1, 1992,
every water purveyor to require the installation of a water
meter as a condition of new water service. That law also
requires urban water suppliers to install water meters on
service connections that predate January 1, 1992, in accordance
with a specific timetable, but in all cases by January 1, 2025.
The law does not require the metering or submetering of
individual units in multiunit residential structures.
PROPOSED LAW
1.This bill would require, beginning January 1, 2013:
Architectural plans for individual dwelling units in a
newly constructed multiunit residential structures must
include the installation of either a water meter or a
submeter, at the discretion of the water purveyor, as a
condition for the issuance of the building permit.
The owner of such a structure, or his or her agent, must
charge occupants for water service. The charge must be
based on the actual volume of water delivered as measured
by the water meter or submeter.
The owner of the structure must ensure that a water
submeter complies with laws and regulations governing
installation, certification, maintenance, billing, and
testing of water submeters.
Water purveyors would be prohibited from charging an
owner of a such a structure, or his or her agent, a fee for
the installation of a water meter or submeter that is
installed by the owner or his or her agent..
1
1.This bill would require the Department of Housing and
Community Development, during the next regularly scheduled
building standards annual code adoption cycle beginning on or
after January 1, 2011, to do the following:
Develop and submit building standards for the
installation of water meters and submeters in residential
units within a multiunit residential structure or a
mixed-use residential and commercial structure.
Determine circumstances under which the installation of
water meters or submeters shall be deemed infeasible, and
provide an exemption for these circumstances in the
proposed building standards.
Exempt from those building standards low-income housing,
student dormitories, senior living facilities.
Before adopting these proposed building standards, the
department must determine that a sufficient number of water
meters and submeters are available in the market.
ARGUMENTS IN SUPPORT
According to the Sierra Club, "Water metering and volumetric
pricing are paramount to giving Californians an accurate price
signal for their water use. However for most multiple dwelling
housing units, like apartments and condominiums, water agencies
do not provide meters to individual unit. Instead, there are
master meters for groups of dwelling units. The cost of water
use is included with the cost of rent, charged as a flat fee, or
allocated in some way among residents connected to the master
meter. Residents in such dwelling units will not know how much
water they use unless their units are sub-metered."
"Studies have shown that water submeters are associated with
decreased water usage. A 2004 Aquacraft Inc. study showed water
savings of 15.3% when comparing sub-metered properties with
rental properties that do not bill water separately from rent
("in-rent" properties.) Another study showed water usage in
sub-metered properties to be 18% to 39% less than in-rent
properties."
ARGUMENTS IN OPPOSITION
The Western Center on Law & Poverty writes "The bill would
require water usage in each new multifamily dwelling unit to be
measured by a utility-owned and operated meter, or a submeter
owned and operated by the building's owner or landlord. It is
the latter option that causes our concern." The Center
2
identifies a number of concerns, mostly related to tenant rights
under a submetering program. These concerns include issues
associated with:
Enforced installation standards.
Adequate disclosures.
Conservation not being an excuse for soaking tenants.
Billing practices.
Dispute resolution.
Leaks.
Landlord remedies
COMMENTS
Sub-Metering Is The Challenge. In a metered system, the water
purveyor supplies and bills water to each unit on the basis of a
meter serving just that unit. The bill is paid directly by the
resident of that unit to the water purveyor. In contrast, in a
submetered system, the water purveyor supplies and bills water
on the basis of a master meter at the main service connection.
The bill is paid by the owner or the owner's agent. Further
down line, submeters are installed on the supply line to each
unit. The landlord then reads and bills each unit separately
based on the reading of the submeter.
The challenge is that under a submetered system, the landlord
acts in a way similar to a retail water utility, but without the
same level of regulatory oversight. Consequently, conflicts can
arise over issues of meter accuracy, billing surcharges, etc.
This bill would apply only to "newly constructed multiunit
residential structure or a mixed-use residential and commercial
structure for which the application for a building permit is
submitted on or after January 1, 2013." To avoid the challenges
raised by submetered systems, it might make sense to eliminate
the option of submetered systems, thereby requiring all units to
be individually metered. (See suggested amendments)
Refer to Rules. Based on the June 16 amendments, the Rules
Committee has asked that the bill be referred back to them for
further consideration.
SUGGESTED AMENDMENTS
AMENDMENT 1: On page 3, line 7, strike "and submeters"
AMENDMENT 2: On page 3, line 12, strike "or submeters"
3
AMENDMENT 3: On page 3, line 25, strike "and submeters"
AMENDMENT 4: On page 4, line 10, strike "(a)"
AMENDMENT 5: On page 4, line 15, strike "either a water
meter or a submeter, at the discretion of the water
purveyor," and insert "a water meter"
AMENDMENT 6: On page 4, strike lines 18 through 22
inclusive
AMENDMENT 7: On page 4 strike lines 29through 40 inclusive
AMENDMENT 8: On page 5, strike lines 1 through 9 inclusive
SUPPORT
Sierra Club California (Sponsor)
American Society of Engineers
Association of California Water Agencies
California League of Conservation Voters
California Municipal Utilities Association
Clean Water Action
County of Los Angeles
East Bay Municipal Utility District
El Dorado Irrigation District
GreenPlumbersUSA
Inland Empire Utilities Agency
Planning and Conservation League
Santa Clara Valley Water District
Santa Clara Valley Water District
Utility Conservation Coalition
Walnut Valley Water District
OPPOSITION
California Rural Legal Assistance Foundation
Coalition for Economic Survival
Western Center on Law & Poverty
4