BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 7 (Wolk) - Housing: water meters: multiunit structures ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: December 1, 2014 |Policy Vote: T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: April 27, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: SB 7 would authorize the Department of Housing and Community Development (HCD) to develop a building standard requiring the installation of water submeters in multiunit residential buildings for adoption by the Building Standards Commission (BSC), as specified. Fiscal Impact: HCD administrative costs of $244,000 over two years ($127,000 in the first year, $114,000 in the second year) for 1 limited term PY of staff to develop the proposed building standards (Building Standards Administration Special Revolving Fund). SB 7 (Wolk) Page 1 of ? Minor and absorbable costs for the BSC to adopt the proposed building standard in the next or subsequent triennial code adoption cycle. Background: Existing law, the California Building Standards Law, authorizes the BSC to approve and adopt building standards through a triennial rulemaking process to revise and update the California Building Standards Code. There are approximately twenty state agencies that develop building standards for submittal to the BSC for review, approval, and adoption. HCD is responsible for proposing building standards for residential buildings including, hotels, motels, lodging houses, apartment houses, dwellings, buildings and structures. Building standards take effect 180 days after they are published, unless a different date is specified. The most recent update to the Building Standards Code has been in effect since January 1, 2014. The 2015 triennial code adoption cycle for the development of the 2016 California Building Standards Code is currently underway. The subsequent triennial cycle will commence in 2018. Existing law requires all new water service connections to be metered, and requires water purveyors to charge water users based on the actual volume of deliveries as measured by those meters. In addition, all existing unmetered water connections must be retrofitted with a meter by 2025. Generally, individual units in multiunit residential buildings are not metered or submetered, and residents typically pay for water and sewage based on the average water use of all units, rather than actual usage attributable to individual units. Proposed Law: SB 7 would authorize HCD to develop building standards requiring the installation of water submeters in multiunit residential buildings. Specifically, this bill would: Authorize HCD to develop those building standards during the next triennial code cycle that commences after January 1, 2016, or during a subsequent code adoption cycle, and to propose those standards for adoption by the BSC. SB 7 (Wolk) Page 2 of ? Require HCD to determine whether there are circumstances in which the installation of water submeters are infeasible and to provide for any appropriate exemptions in the proposed building standards. Authorize HCD to consider whether there are issues specific to high-rise multifamily buildings that warrant an exemption to the standards. Authorize HCD's administrative costs to develop the building standards to be paid from the Building Standards Administration Special Revolving Fund, upon appropriation by the Legislature. Related Legislation: There have been numerous bills in past legislative sessions addressing issues related to metering and submetering water service in multiunit structures, none of which has been approved by the Legislature. The following are among the most recent bills pertaining to this topic: SB 750 (Wolk), which failed passage in the Assembly Water, Parks, and Wildlife Committee in 2014, would have required the installation of water submeters in multiunit structures, with specified exceptions. The bill also imposed certain requirements on landlords pertaining to billing for water usage and contained tenant protections. SB 411 (Wolk) was amended on the Assembly Floor on August 22, 2014 to delete the previous contents and insert the provisions of SB 750; the bill was subsequently referred to the Assembly Rules Committee. In addition to the previous contents of SB 750, SB 411 included all of the provisions contained in this bill that authorize HCD to adopt a building standard requiring the installation of water submeters in multiunit structures. AB 19 (Fong), which failed passage in the Assembly Housing and SB 7 (Wolk) Page 3 of ? Community Development Committee in 2011, would have required the installation of water submeters in multiunit structures, with specified exceptions. The bill also prescribed various duties and responsibilities on landlords and tenants regarding billing, among other things. Staff Comments: This bill is intended to encourage increased water conservation. To the extent water submeters are installed on multiunit residential buildings, and billing is based upon actual water usage, residents would be more aware of consumption and there would be an incentive to use less. SB 7 provides permissive authority for HCD to develop building standards that would require the installation of water submeters in multiunit residential buildings during a future triennial code adoption cycle. HCD would incur administrative costs of approximately $244,000 over two years, to the extent the department develops the building standards. The author has convened a stakeholder group in an attempt to reach consensus on a number of issues related to the installation of water submeters in multiunit residential buildings. Ultimately, this bill could serve as the vehicle to address billing matters, consumer protections for both tenants and landlords, installation and calibration issues, feasibility concerns, potential exemptions from submetering requirements, and other matters. Staff notes that the bill adds identical definitions of the term "submeter" in both the Civil Code and the Water Code, and the current provisions pertaining to the adoption of building standards only refer to the new definition in the Water Code. Similar to SB 411 (Wolk, 2014), the author intends for any future amendments to the bill related to billing and consumer protections for water usage measured by a submeter to be placed in the Civil Code. SB 7 (Wolk) Page 4 of ? -- END --