AB 401, as amended, Dodd. Low-Income Water Rate Assistance Program.
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. Existing law requires the Public Utilities Commission to consider, and authorizes the commission to implement, programs to provide rate relief for low-income ratepayers of a water corporation.
Existing law establishes the Department of Community Services and Development in state government and vests with the department various powers and authority regarding the implementation and administration of programs to assist low-income individuals in the state.
end deleteExisting law establishes the State Water Resources Control Board and the 9 California regional water quality control boards as the principal state agencies with authority over matters relating to water quality. Existing law requires the state board to formulate and adopt state policy for water quality control.
end insertThis bill would require thebegin delete department,end deletebegin insert state board,end insert no later than January 1, 2017, in collaboration with the State Board of Equalization and relevant stakeholders, to develop a plan for the funding and implementation of the Low-Income Water Rate Assistance Program, which would include specified elements.begin insert
The bill would permit the board to consider existing rate assistance programs authorized by the commission in developing the plan and would authorize the plan to include recommendations for other cost-effective methods of offering assistance to low-income water customers.end insert The bill would require thebegin delete department,end deletebegin insert
state board,end insert no later than February 1, 2017, to report to the Legislature on its findings regarding the feasibility, financial stability, and desired structure of the program, including any recommendations for legislative action that may need to be taken.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 12092 is added to the Government Code,
2to read:
begin insertSection 189.5 is added to the end insertbegin insertWater Codeend insertbegin insert, to read:end insert
(a) This section shall be known, and may be cited, as
6the Low-Income Water Rate Assistance Act.
7(b) No later than January 1, 2017, thebegin delete department,end deletebegin insert board,end insert in
8collaboration with thebegin delete boardend deletebegin insert State Board of Equalizationend insert and
9relevant
stakeholders, shall develop a plan for the funding and
10implementation of the Low-Income Water Rate Assistance
11Program, which shall include all of the following elements:
12(1) A description of the method for collecting moneys to support
13and implement the program, including a discussion of any
14constitutional restrictions on public water agency ratesetting.
15(2) A description of the mechanism for providing funding
16assistance under the program through either direct credits to
17enrollees in the program or reimbursements to water service
18providers, including a method for verifying income eligibility of
19low-income ratepayers, clarification of the role of the Public
20Utilities Commission and water utilities in determining and
P3 1verifying customer eligibility, and recommendations regarding the
2
structure of the program, particularly whether it will be
3administered by the state or locally administered.
4(3) A description of the method to be used to determine the
5amount of moneys that may need to be collected from water
6ratepayers to fund the program. The plan shall include a set of
7recommendations and best practices of cost-savings measures to
8ensure water utilities are demonstrating whether and how they are
9keeping rates low. This section does not authorize the imposition
10of a state charge to fund the program.
11(c) In developing the plan required in subdivision (b), the board
12may consider the existing rate assistance programs authorized by
13the Public Utilities Commission for investor-owned water utilities
14pursuant to Section
739.8 of the Public Utilities Code.
15(d) The plan may also include recommendations for other
16cost-effective methods of offering assistance to low-income water
17customers besides rate assistance, including billing alternatives,
18installation of water conservation devices, and leak repair. In
19considering other methods, the board may consider the Public
20Utilities Commission’s “Assessment of Water Utility Low-Income
21Assistance Programs.”
22(c)
end delete
23begin insert(e)end insert No later than February 1,
2017, thebegin delete departmentend deletebegin insert
boardend insert shall
24report to the Legislature on its findings regarding the feasibility,
25financial stability, and desired structure of the program, including
26any recommendations for legislative action that may need to be
27taken.
28(d)
end delete
29begin insert(f)end insert For purposes of this section, the following terms have the
30following meanings:
31(1) “Board” means the Statebegin delete Board of Equalization.end deletebegin insert
Water
32Resources Control Board.end insert
33(2) “Department” means the Department of Community Services
34and Development.
35(3)
end delete
36begin insert(2)end insert “Low-income” means a household with income that is equal
37to or no greater than 200 percent of the federal poverty guideline
38level. For one-person households, program eligibility shall be
39based on two-person household guideline levels.
40(4)
end delete
P4 1begin insert(3)end insert “Program” means the Low-Income Water Rate Assistance
2Program.
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