BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                              UNFINISHED BUSINESS


          Bill No:  SB 407
          Author:   Padilla (D)
          Amended:  9/4/09
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  7-3, 4/21/09
          AYES:  Lowenthal, DeSaulnier, Harman, Kehoe, Pavley,  
            Simitian, Wolk
          NOES:  Huff, Ashburn, Hollingsworth
          NO VOTE RECORDED:  Oropeza

           SENATE JUDICIARY COMMITTEE  :  3-1, 5/12/09
          AYES:  Corbett, Florez, Leno
          NOES:  Walters
          NO VOTE RECORDED:  Harman

           SENATE FLOOR  :  22-15, 6/3/09
          AYES:  Alquist, Calderon, Cedillo, Corbett, DeSaulnier,  
            Hancock, Harman, Kehoe, Leno, Liu, Lowenthal, Negrete  
            McLeod, Oropeza, Padilla, Pavley, Romero, Simitian,  
            Steinberg, Wiggins, Wolk, Wright, Yee
          NOES:  Aanestad, Ashburn, Benoit, Cogdill, Correa, Cox,  
            Denham, Dutton, Florez, Hollingsworth, Huff, Maldonado,  
            Strickland, Walters, Wyland
          NO VOTE RECORDED:  Ducheny, Runner, Vacancy

           ASSEMBLY FLOOR  :  45-29, 9/11/09 - See last page for vote


           SUBJECT  :    Property transfers:  plumbing fixtures  
          replacement

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           SOURCE  :     Association of California Water Agencies
                      Metropolitan Water District of Southern  
          California 
                      San Francisco Public Utilities Commission


           DIGEST  :    This bill requires the replacement of all  
          non-water conserving plumbing fixtures, as defined, in  
          commercial and residential properties built prior to 1994  
          with water-conserving fixtures by either 2017 or 2019,  
          depending on the type of property.

           Assembly Amendments  recast and revise the bill with similar  
          intent as it left the Senate.

           ANALYSIS  :    Existing law requires that all water closets  
          or urinals sold or installed in the state use no more than  
          an average of 1.6 gallons or one gallon per flush,  
          respectively.  

          Existing law generally regulates the transfer of real  
          property, escrow agents, and real estate brokers.  Existing  
          law requires certain disclosures to be made upon the  
          transfer of real estate.  
          
          This bill:

          1. Makes legislative findings and declarations, including  
             that economic analysis has identified urban water  
             conservation as a cost-effective approach to addressing  
             water supply needs. 

          2. Defines "commercial real property" as any real property  
             that is intended for commercial use including hotels and  
             motels that is not a single-family residential property  
             or a multi-family property. 

          3. Defines "multifamily residential real property" as a  
             building containing one or more units that is intended  
             for human habitation, or any mixed residential  
             commercial buildings, including residential hotels but  
             does not include hotels and motels that are not  
             residential hotels. 


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          4. Defines "noncompliant plumbing fixtures" as meaning any  
             of the following: 

             A.    Any toilet manufactured to use more than 1.6  
                gallons of water per flush.

             B.    Any urinal manufactured to use more than one  
                gallon of water per flush.

             C.    Any showerhead manufactured to have a flow  
                capacity of more then 2.5 gallons of water per  
                minute.

             D.    Any interior faucet that emits more than 2.2  
                gallons of water per minute. 

          5. Defines "water-conserving plumbing fixture" as any  
             fixture that complies with current building standards  
             applicable to a newly constructed real property of the  
             same type. 

          6. Proposes requirements that will apply to residential and  
             commercial real property built and available for use on  
             or before January 1, 1994, with the exception of: 

             A.    Registered historical sites.

             B.    Real property for which a licensed plumber  
                certifies that, due to the age or configuration of  
                the property or its plumbing, installation of  
                water-conserving plumbing fixtures is not technically  
                feasible.
              
             C.    A building that has had its water service  
                permanently disconnected. 

          7. With respect to single-family residential real property:  


             A.    Requires the property owner to replace all  
                noncompliant plumbing fixtures in the property with  
                water-conserving plumbing fixtures on or before  
                January 1, 2017.


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             B.    Requires a building permit applicant to replace  
                all noncompliant plumbing fixtures in the property  
                with water-conserving plumbing fixtures as a  
                condition for:

                (1)      Issuance of a certificate of final  
                   completion and occupancy.

                (2)      Approval of a final building permit by the  
                   local building department, for all building  
                   alterations or improvements on or after January 1,  
                   2014. 

             C.    Beginning January 1, 2017, requires a seller or  
                transferor of a single-family property to disclose in  
                writing to the prospective purchaser or transferee  
                the following information: 

                (1)      The requirement that all noncompliant  
                   plumbing fixtures in the property be replaced with  
                   water-conserving plumbing fixtures on or before  
                   January 1, 2017.

                (2)      Whether the real property includes any  
                   noncompliant plumbing fixtures. 

          8. With respect to multifamily residential or commercial  
             real property: 

             A.    Requires that all noncompliant plumbing fixtures  
                in the property be replaced with water-conserving  
                plumbing fixtures on or before January 1, 2019. 

             B.    Requires a building permit applicant to replace  
                all noncompliant plumbing fixtures in the property  
                with water-conserving plumbing fixtures, as a  
                condition for (i) issuance of a certificate of final  
                completion and occupancy, or (ii) approval of a final  
                building permit by the local building department, for  
                all building alterations or improvements on or after  
                January 1, 2014, subject to the following provisions:  


                (1)      For building additions in which the sum of  

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                   concurrent building permits by the same building  
                   permit applicant would increase the floor area of  
                   the space in a building by more than 10 percent,  
                   the building permit applicant shall replace all  
                   non-compliant plumbing fixtures in the building.

                (2)      For building alteration or improvements in  
                   which the total construction cost estimated in the  
                   building permit is greater than $150,000, the  
                   building permit applicant shall replace all  
                   noncompliant plumbing fixtures that serve the  
                   specific area of alteration or improvement.

                (3)      For any alterations or improvements to that  
                   room in a building that contains any noncompliant  
                   plumbing fixtures and that requires a building  
                   permit, the building permit applicant shall  
                   replace all noncompliant plumbing fixtures in that  
                   room, notwithstanding (i) and (ii) above. 

             C.    Beginning January 1, 2019, requires a seller or  
                transferor of the property to disclose in writing to  
                the prospective purchaser or transferee the following  
                information: 

                (1)      The requirement that all noncompliant  
                   plumbing fixtures in the property be replaced with  
                   water-conserving plumbing fixtures on or before  
                   January 1, 2019.
                 
                (2)      Whether the real property includes any  
                   noncompliant plumbing fixtures. 

          9. Permits a city or county to enact local ordinances or  
             established policies that promote compliance with this  
             article, or to enact local ordinances that will result  
             in a greater amount of water savings than those provided  
             for in this bill. 

          10.Gives local governments authority to charge fees to  
             cover the cost of the bill. 

          11.Permits an owner or his/her agent to enter a property to  
             install, repair, test or maintain water-conserving  

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             plumbing fixtures required by the bill. 

          12.Makes it a tenant's responsibility to notify an owner or  
             the owner's agent if a water-conserving plumbing fixture  
             within the tenant's unit is not operating at the  
             manufactures rated water consumption. 

          13.Requires an owner or owner's agent to correct any  
             inoperable water-conserving plumbing fixture when  
             notified by the tenant or when the owner or the owner's  
             agent determines that it is inoperable. 

          14.Makes any ordinance adopted by a city or county  
             requiring retrofit of noncompliant plumbing fixtures  
             prior to July 1, 2009, exempt from the requirements of  
             the bill a long as the ordinance remains in effect. 

           Background 

          California is currently in its third year of drought, with  
          rain and snowfall (the primary sources of water) well below  
          normal levels.  The resulting water shortage, as well as  
          California's growing population, pressure on the state's  
          water storage and delivery system, and climate change, have  
          contributed to California's current water crisis.

          On February 27, 2009, Governor Schwarzenegger proclaimed a  
          statewide emergency due to drought and asked Californians  
          to reduce their water use by 20 percent.  Although there  
          are many ways to reduce water usage, one of the most  
          effective is to replace older high-water use plumbing  
          fixtures with newer, more efficient models.  That  
          replacement, combined with regularly checking for leaks,  
          can reduce per capita water use by 35 percent (according to  
          the American Water Works Association).

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  9/10/09)

          Association of California Water Agencies (co-source)
          Metropolitan Water District of Southern California  
          (co-source)

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          San Francisco Public Utilities Commission (co-source)
          California Coast Keeper Alliance
          California Municipal Utilities Association
          City of Glendale Water & Power
          Contra Costa Water District
          East Bay Municipal Utility District
          Eastern Municipal Water District
          Green Plumbers
          Hi-Desert Water District
          Inland Empire Utilities Agency
          Los Angeles Business Council
          Natural Resources Defense Council
          Plumbing-Heating-Cooling Contractors of California
          Redondo Beach Chamber of Commerce and Visitors Bureau
          Regional Chamber of Commerce San Gabriel Valley
          San Diego County Water Authority
          Santa Clara Valley Water District
          Simi Valley Chamber of Commerce
          Three Valleys Municipal Water District
          Tree People
          U.S. Green Building Council Northern California Chapter
          Water Replenishment District of Southern California

           OPPOSITION  :    (Verified  9/10/09)

          Apartment Association, California Southern Cities
          Apartment Association of Orange County
          Long Beach Area Chamber of Commerce

           ARGUMENTS IN SUPPORT  :    According to the author:  "There  
          is a significant cross-section of California's population  
          that resides and/or owns older properties that are not  
          equipped with water-efficient plumbing fixtures as are  
          found in more recently-built structures.  Water  
          conservation is a statewide goal, meaning that every  
          resident has the burden of ensuring that he or she observes  
          water efficiency practices to the best of their ability.   
          It is fair to say that upgrading plumbing fixtures in older  
          structures is rarely done."

          The Association of California Water Agencies, a sponsor of  
          the bill, states:  "Currently many water agencies have been  
          implementing voluntary incentive based programs which  
          provide consumers with rebates, vouchers, or in some cases  

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          the fixtures themselves to promote water conservation and  
          water use efficiency.  SB 407 would be the next step in the  
          process to take such local efforts to a larger scale and  
          implement the program statewide."


           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Beall, Block, Blumenfield, Bradford,  
            Brownley, Buchanan, Caballero, Carter, Chesbro, Coto,  
            Davis, De Leon, Eng, Evans, Feuer, Fong, Fuentes,  
            Furutani, Hall, Hayashi, Hernandez, Hill, Huffman,  
            Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning,  
            Nava, John A. Perez, V. Manuel Perez, Portantino, Ruskin,  
            Salas, Saldana, Skinner, Solorio, Swanson, Torlakson,  
            Torrico, Villines, Yamada, Bass
          NOES:  Adams, Anderson, Arambula, Bill Berryhill, Tom  
            Berryhill, Blakeslee, Conway, Cook, DeVore, Emmerson,  
            Fletcher, Fuller, Gaines, Garrick, Gilmore, Hagman,  
            Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande,  
            Niello, Nielsen, Silva, Smyth, Audra Strickland, Tran
          NO VOTE RECORDED:  Charles Calderon, De La Torre, Galgiani,  
            Jones, Torres, Vacancy


          JJA:mw  9/16/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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