BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: SB 814 Hearing Date: August 10, 2016 ----------------------------------------------------------------- |Author: |Hill | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |June 21, 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. 2.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 in a county jail for not more than 30 days, or by a fine not exceeding $1,000, or both. 3.Under the Urban Water Management Planning Act, urban water agencies are to update their urban water management plans by SB 814 (Hill) Page 2 of ? December 31 in years ending in 0 or 5. Among other things, the update is to include an urban water shortage contingency analysis, which describes the actions the urban water agency would take in response to water supply shortages. 4.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. SB 814 (Hill) Page 3 of ? PROPOSED LAW 1)Prohibit, during specific types of drought emergencies, excessive water use by metered residential customers. Applicable drought emergencies are: a) Periods for which the Governor has issued a proclamation of a state of emergency based on statewide drought conditions for which an urban retail water supplier has moved to a stage of action under the water supplier's contingency plan that requires mandatory water use reductions. b) Periods for which an urban retail water supplier has moved to a stage of action in response to a local water supply shortage condition under the water supplier's contingency plan that requires mandatory water use reductions. c) Periods for which the Governor has issued a proclamation of a state of emergency based on local drought conditions. 2)Require each urban retail water supplier, except those not fully metered, to establish a method to identify and discourage excessive water use, through one of the following options: a) Establishing a rate structure that includes block tiers, water budgets, 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 tariff condition, or amending an existing ordinance, rule, or tariff condition, that includes a definition of or a procedure to identify and address excessive water use by metered residential customers. Under this option, urban retail water suppliers: i) Must measure excessive water use in terms of either gallons or hundreds of cubic feet of water used during the urban retail water supplier's regular billing cycle. ii) May consider, in establishing the definition of excessive use, factors that include, but are not limited to, all of the following: Average daily use. SB 814 (Hill) Page 4 of ? Full-time occupancy of households. Amount of landscaped land on a property. Rate of evapotranspiration. Seasonal weather changes. i) Must issue an infraction or administrative civil penalty for violations of an excessive use ordinance etc. The penalty for a violation may be based on conditions identified by the urban retail water supplier and may include, but is not limited to, a fine of up to five hundred dollars ($500) for each hundred cubic feet of water, or 748 gallons, used above the excessive water use threshold established by the urban retail water supplier in a billing cycle. ii) Must, consistent with due process, establish a process and conditions for the appeal of a fine imposed pursuant to an excessive use ordinance etc. whereby the customer may contest the imposition of the fine for excessive water use. 1)Provide that an urban retail water supplier that is not fully metered: a) Is exempt from having to establish a method to identify and discourage excessive water use (as described above in 2). An urban retail water supplier would be required to comply with those provisions when all of the water supplier's residential water service connections are being billed based on metered water usage. b) Is required to prohibit water use practices by an ordinance, resolution, rule, or tariff condition that imposes penalties for prohibited uses of water supplied by the water supplier. The urban retail water supplier may include a process to issue written warnings prior to imposing penalties as well as increased penalty amounts for successive violations. 2)Provide that the provisions of this bill are in addition to, and do not supersede or limit, any other measures or remedies implemented by an urban retail water supplier. ARGUMENTS IN SUPPORT According to the author, "SB 814 ensures that no one can buy their way out of the drought during a statewide drought SB 814 (Hill) Page 5 of ? emergency. At the peak of the drought most Californians reduced their water use and faced stiff penalties for waste, but some Californians used as much water as they wanted without any repercussions. Statewide, hundreds of households used more than 1 million gallons of water in a year, far above the average level of use. The biggest user consumed almost 12 million gallons in one year. With a couple of exceptions, water agencies do not have policies to target and reduce this excessive water use. SB 814 fixes this gap by simply requiring every water agency to have a policy in place to curb excessive water use." ARGUMENTS IN OPPOSITION According to the Association of California Water Agencies (ACWA), "with the relaxation in the severity of California's current drought emergency, and the adjustment of emergency conservation regulations by the State Water Resources Control Board (State Water Board), ACWA [has] reevaluated the need for this bill and has concluded that SB 814 would institute an unnecessary mandate and must therefore oppose the bill." "[T]he State Water Board approved modifications to the existing emergency water conservation regulation on May 18. The modifications replace the state-imposed mandatory conservation standards with a locally driven, supply-based assessment process. The new regulation recognizes that urban water suppliers have the expertise to self-certify their water supply availability and determine appropriate levels of conservation. ACWA maintains that local control is the most effective path to mitigating the effects of drought and cannot support a top-down statewide approach as proposed in this bill." SB 814 (Hill) Page 6 of ? COMMENTS Assembly amendments. Amendments taken in the Assembly included both policy and technical/clarifying changes. Key amendments include: Expanding the types of drought emergencies triggering this bill to include: A local water supply shortage condition that requires mandatory water use reductions under the water supplier's contingency plan. Periods for which the Governor has issued a proclamation of a state of emergency based on local drought conditions. Adding provisions governing required actions of urban retail water suppliers which are not fully metered. Adding administrative civil penalties as an allowable consequence of violating an excessive use ordinance. Adding a requirement that, as part of the appeal process, the urban retail water supplier must provide documentation demonstrating the excessive water usage. Clarifying that the provisions of this bill are in addition to, and do not supersede or limit, any other measures or remedies implemented by an urban retail water supplier. Fining major water users seems to work. For example, a article in the LA Times last spring 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. Not the last severe drought. While it is true that for at least some areas of the state the drought has eased somewhat, it is also true that there will be severe droughts in the future. Possibly even next year. This bill proposes putting in place prohibitions on excess urban water use before the next severe drought hits. SUPPORT SB 814 (Hill) Page 7 of ? California League of Conservation Voters Clean Water Action East Bay Municipal Water District Sierra Club California OPPOSITION Association of California Water Agencies City of Roseville Desert Water Agency El Dorado Irrigation District Mesa Water District Municipal Water District of Orange County Placer County Water Agency Rincon del Diablo Municipal Water District San Diego County Water Authority San Juan Water District Santa Margarita Water Agency Valley Center Municipal Water District