BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 7|
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THIRD READING
Bill No: SB 7
Author: Wolk (D), et. al.
Introduced:12/1/14
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 4/14/15
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,
McGuire, Mendoza, Roth, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 4-1, 4/27/15
AYES: Lara, Bates, Hill, Mendoza
NOES: Nielsen
NO VOTE RECORDED: Beall, Leyva
SUBJECT: Housing: water meters: multiunit structures
SOURCE: Author
DIGEST: This bill authorizes the adoption of building standards
which require water submeters.
ANALYSIS:
Existing law authorizes the Department of Housing and Community
Development (HCD) to develop building standards and to submit
those standards to the California Building Standards Commission
(BSC) for approval.
This bill:
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1)Authorizes HCD to develop a building standard for water
submeters and to submit that standard to the BSC for approval.
2)States that the intent of the bill is to encourage water
conservation and to ensure that water submetering practices
are just and reasonable.
Comments
1)The ultimate purpose of this bill is to create a framework for
water submetering, though there is no language in this bill to
that effect save the intent language. Last year this author
had two bills, SB 411 and SB 750, to establish a water
submetering regime for newly constructed apartment buildings.
Both bills failed in the Assembly.
2)Most apartment houses are master-metered for water; the rates
are closely regulated. To the water utility, the water
customer is the landlord of the apartment building, not the
tenants of the individual apartments, and there is generally
only one meter for the aggregate usage of the property. This
makes it much easier for the utility in that it has to service
only one customer, the landlord, who presumably recovers this
cost in the rent. Because individual tenants aren't billed
for their water consumption, and don't even know how much
water they are using, there is little incentive for tenants to
conserve. Increasingly, new apartment buildings have water
meters installed for individual apartments, a practice known
as submetering.
3)Studies show that submetering reduces water use. A study
jointly sponsored by the U.S. Environmental Protection Agency,
the National Apartment Association, and others showed that
individual submetering can reduce water consumption by 15%.
4)Water submetering has many virtues. It benefits landlords,
who can charge tenants for the cost of water. It benefits
tenants, who can control their water cost based on usage. It
benefits water suppliers, as customers who are billed based on
usage use less. But submetering raises significant financial
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and consumer protection issues: who pays for the submeters,
where are they installed, who is responsible for the accuracy
of the meters and rendering the bill, what is the cost for
rendering the bill, what is an appropriate rate design, how
are disputes resolved, etc. The author and many interested
parties are working on these issues. A consensus has not been
reached.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
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).
Minor and absorbable costs for the BSC to adopt the proposed
building standard in the next or subsequent triennial code
adoption cycle.
SUPPORT: (Verified4/27/15)
California Municipal Utilities Association
Santa Clara Valley Water District
Sierra Club of California
U.S. Green Building Council
One individual
OPPOSITION: (Verified4/27/15)
None received
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Prepared by:Randy Chinn / T. & H. / (916) 651-4121
4/29/15 16:07:44
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