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 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.
This bill would require the state board, no later than January 1,begin delete 2017,end deletebegin insert 2018,end insert 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. 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. The bill would require the state board, no later than February 1,begin delete 2017,end deletebegin insert
2018,end insert 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 189.5 is added to the Water Code, to
2read:
(a) This section shall be known, and may be cited, as
4the Low-Income Water Rate Assistance Act.
5(b) No later than January 1,begin delete 2017,end deletebegin insert 2018,end insert the board, in
6collaboration with the State Board of Equalization and relevant
7stakeholders, shall develop a plan for the funding and
8implementation of the Low-Income Water Rate Assistance
9Program, which shall include all of the following elements:
10(1) A description of the method for collecting moneys to support
11and
implement the program, including a discussion of any
12constitutional restrictions on public water agency ratesetting.
13(2) A description of the mechanism for providing funding
14assistance under the program through either direct credits to
15enrollees in the program or reimbursements to water service
16providers, including a method for verifying income eligibility of
17low-income ratepayers, clarification of the role of the Public
18Utilities Commission and water utilities in determining and
19verifying customer eligibility, and recommendations regarding the
20
structure of the program, particularly whether it will be
21administered by the state or locally administered.
P3 1(3) A description of the method to be used to determine the
2amount of moneys that may need to be collected from water
3ratepayers to fund the program. The plan shall include a set of
4recommendations and best practices of cost-savings measures to
5ensure water utilities are demonstrating whether and how they are
6keeping rates low. This section does not authorize the imposition
7of a state charge to fund the program.
8(c) In developing the plan required in subdivision (b), the board
9may consider the existing rate assistance programs authorized by
10the Public Utilities Commission for investor-owned water utilities
11pursuant to Section 739.8 of the Public Utilities Code.
12(d) The plan may also include recommendations for other
13cost-effective methods of offering assistance to low-income water
14customers besides rate assistance, including billing alternatives,
15installation of water conservation devices, and leak repair. In
16considering other methods, the board may consider the Public
17Utilities Commission’s “Assessment of Water Utility Low-Income
18Assistance Programs.”
19(e) begin insert(1)end insertbegin insert end insert No later than February 1,begin delete 2017,end deletebegin insert
2018,end insert the board shall
20report to the Legislature on its findings regarding the feasibility,
21financial stability, and desired structure of the program, including
22any recommendations for legislative action that may need to be
23taken.
24(2) The requirement for submitting a report imposed under this
25subdivision is inoperative on February 1, 2022, pursuant to Section
2610231.5 of the Government Code.
27(3) A report to be submitted pursuant to this subdivision shall
28be submitted in compliance with Section 9795 of the Government
29Code.
30(f) For purposes of this section, the following terms have the
31following meanings:
32(1) “Board” means the State Water Resources Control Board.
33(2) “Low-income” means a household with income that is equal
34to or no greater than 200 percent of the federal poverty guideline
35level. For one-person households, program eligibility shall be
36based on two-person household guideline levels.
37(3) “Program” means the Low-Income Water Rate Assistance
38Program.
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