BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: SB 814 Hearing Date: March 29, 2016 ----------------------------------------------------------------- |Author: |Hill | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |March 17, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Dennis O'Connor | | | | ----------------------------------------------------------------- Subject: Drought: excessive water use: urban retail water suppliers BACKGROUND AND EXISTING LAW 1.The California Constitution declares that: The water resources of the state are to be put to beneficial use to the fullest extent of which they are capable. The waste or unreasonable use or unreasonable method of use of water is to be prevented. The conservation of such waters is to be exercised with a view to the reasonable and beneficial use of the waters in the interest of the people and for the public welfare. 1.Existing law authorizes any public entity that supplies water at retail or wholesale for the benefit of persons within the service area or area of jurisdiction of the public entity to, by ordinance or resolution, adopt and enforce a water conservation program to reduce the quantity of water used for the purpose of conserving the water supplies of the public entity. Existing law further provides that a violation of a requirement of a water conservation program is a misdemeanor punishable by imprisonment ina county jail for not more than 30 days, or by a fine not exceeding $1,000, or both. SB 814 (Hill) Page 2 of ? 2.Under the California Public Records Act, local agencies are to make the name, utility usage data, and the home address of utility customers available upon request IF the local agency determines that the utility customer who is the subject of the request has used utility services in a manner inconsistent with applicable local utility usage policies. 3.Governor Brown has made a series of emergency declarations and executive orders regarding the ongoing drought. In particular, in April 2015, the Governor issued an executive order that, among other things, directed the State Water Resources Control Board to impose restrictions to achieve a 25 percent reduction in potable urban water usage through February 28, 2016. The State Board has adopted regulations regarding achieving that reduction, including the establishment of penalties for failure to comply. PROPOSED LAW This bill would: 1.Prohibit, during a period for which the Governor has issued a proclamation of a state of emergency under the California Emergency Services Act based on drought conditions, excessive water use by either: a. A residential customer in a single-family residence, or by b. A customer in a multiunit housing complex in which each unit is individually metered or submetered by the water supplier is prohibited. 2.Require each urban retail water supplier to establish a method to identify and restrict excessive water use, through one of two options: a. Establishing a rate structure that includes block tiers, water budgets, penalties for prohibited uses, or rate surcharges over and above base rates for excessive water use by a residential water customer. b. Establishing an excessive water use ordinance, rule, or SB 814 (Hill) Page 3 of ? tariff condition, or amending an existing ordinance, rule, or tariff condition, that includes a definition of excessive water use by single-family residential customers and customers in multiunit housing complexes in which each unit is individually metered or submetered. The ordinance could include a process to issue written warnings to a customer and perform a site audit of customer water usage prior to deeming the customer in violation. Excessive water use would be measured in terms of either gallons or hundreds of cubic feet of water used during the urban retail water supplier's regular billing cycle. In establishing the definition of excessive use, the water supplier could consider factors that include, but are not limited to, all of the following: o Average daily use. o Full-time occupancy of households. o Amount of landscaped land on a property. o Rate of evapotranspiration. o Seasonal weather changes. A violation of an excessive use ordinance, rule, or tariff condition established pursuant to subparagraph would be an infraction punishable by a fine of up to five hundred dollars ($500) per hundred cubic feet of water, or per 748 gallons, used above the excessive water use threshold established by the urban retail water supplier in a billing cycle. o Any fine imposed pursuant to this subparagraph would be added to the customer's water bill and is due and payable with that water bill. o Each urban retail water supplier would be required to have a process for nonpayment of the fine, which shall be consistent with the water supplier's existing process for nonpayment of a water bill. A violation of an excessive water use ordinance, rule, or tariff condition where a residence had a demonstrable water leak and a repair was underway to eliminate that leak would be a basis for granting an appeal and shall be considered for waiver of the charges consistent with the urban retail water supplier's excessive water use ordinance and existing policies for leak adjustments. An urban retail water supplier would be required to SB 814 (Hill) Page 4 of ? establish a process for the appeal of a fine imposed pursuant to this bill whereby the customer could contest the imposition of the fine for excessive water use. The water supplier would further be required to provide the customer with an opportunity to provide evidence of a bona fide reason for the excessive water use, including evidence of a water leak, a medical reason, or any other reasonable justification for the water use, as determined by the urban retail water supplier. 1.Amend the California Public Records Act to require local agencies to make the name, utility usage data, and the home address of utility customers available upon request if the local agency determines that a utility customer has used utility services in a manner inconsistent with applicable local utility usage policies, provided that the home address of the customer is not disclosed without the customer's consent. ARGUMENTS IN SUPPORT According to the author, "No one should be able to buy their way out of a drought. That's what SB 814 is about. Under mandated water conservation targets during the worst drought in our state's recorded history, most Californians are making their best effort to conserve water. But, there are a number of people throughout the state who appear to be using as much water as they want, when they want, without any repercussions. SB 814 makes sure all Californians share in the efforts to conserve water by requiring that urban retail water suppliers have a policy in place to curb excessive water use." ARGUMENTS IN OPPOSITION: None Received COMMENTS Fining major water users seems to work. For example, a recent article in the LA Times documented how despite educational campaigns, usage restrictions, and written notices for people suspected of wasting water, Beverly Hills missed its mandatory 25 percent reduction in water use, triggering state fines. However, once the city began penalizing wasteful water users, city water usage fell by 26 percent. SB 814 (Hill) Page 5 of ? Why is this bill necessary? Proponents argue that penalties associated with violating water conservation programs are ineffective as they are low priority crimes that are rarely prosecuted. The author's intent with the penalty language is to be consistent with the penalty language in the State Board's emergency regulations, which establish penalties violating Sec 864 (d): "?is an infraction punishable by a fine of up to five hundred dollars ($500)?" Also, while nothing in current law appears to prohibit a water agency from establishing an excessive water use ordinance, the author argues that by putting this bill's language in statute, it will encourage otherwise reluctant water agency to pursue water wasters more vigorously. Is disclosure of excess water use allowed? There seems to be some uncertainty as to whether disclosure of the identity and other information about individual gross water users is required under the Public Records Act. Some agencies, such as East Bay Municipal Utility District, have disclosed such information about their customers. However, committee staff have heard anecdotally that others interpret the current language to mean that the request has to be made for a specific customer, not for everyone who meets specified criteria; e.g., gross water users. This issue will likely be explored more fully in the Judiciary Committee (see below). Related Bills: AB 1520 (Committee on Judiciary). Existing law provides that the Public Records Act shall not be construed to require the disclosure of specified information concerning any utility customers of local agencies, except for certain purposes. AB 1520 would, instead, provide that the act shall not be construed to require the disclosure of specified information concerning residential utility customers of local agencies. Double-Referral. The Rules Committee referred this bill to both the Committee on Natural Resources and Water and to the Committee on Judiciary. Therefore, if this bill passes this committee, it will be referred to the Committee on Judiciary, which will consider the issues within their jurisdiction. SUGGESTED AMENDMENTS: None SB 814 (Hill) Page 6 of ? SUPPORT California League of Conservation Voters Clean Water Action Sierra Club California OPPOSITION None Received -- END --