BILL ANALYSIS Ó SB 814 Page 1 Date of Hearing: June 29, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 814 (Hill) - As Amended June 21, 2016 ----------------------------------------------------------------- |Policy |Water, Parks and Wildlife |Vote:|9 - 4 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill prohibits excessive water use by a residential customer during statewide or local emergency drought conditions and requires urban retail water suppliers to establish a method SB 814 Page 2 to identify and discourage excessive water use. Specifically, this bill: 1)Prohibits excessive water use by residential customers in single-family residence or in multiunit housing that is individually metered or submetered by the urban water supplier. 2)Requires an urban retail water supplier to establish a method to identify and discourage excessive water use through a rate structure or by ordinance, rule, tariff condition, or procedure. 3)Applies specific conditions to how an ordinance, rule, tariff condition, or procedure developed by an urban retail water supplier must apply in fully metered service areas. FISCAL EFFECT: Negligible, if any state costs. COMMENTS: 1)Purpose. According to the author, while most Californians have reduced their water use and face stiff penalties for waste, there are some who use as much water as they want without repercussions. This bill requires water districts to have policies and penalties to target and reduce excessive water use. SB 814 Page 3 2)Background. In response to drought, a fine of up to $500 may be assessed for wasteful water use that includes: a) using a hose to wash a car without an automatic shutoff valve; b) washing down a driveway or sidewalk; c) watering outdoor landscaped area within 48 hours of rain; watering lawns in a manner that causes runoff; and watering outdoor landscapes on the wrong day or time. There are 411 urban water suppliers in the state and since June of 2015. According to the State Resources Water Control Board (SWRCB), an average of 8,900 penalties per month have been issued for either water waste or drought surcharges (charges imposed for water use over a specified volumetric amount). Despite existing fines on typical water users, there is no requirement for penalties on individuals who are heavy water users. While local agencies can prohibit excessive water use, this bill makes it a requirement that there is a process to do so when there are local water shortage conditions. This bill allows local discretion in the development of the identification and enforcement that occurs locally against excessive water use. While there is limited anecdotal evidence, several newspaper articles suggest that when penalties on heavy water users have been put in place, there has been a significant increase in SB 814 Page 4 water conservation. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081