BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SB 814
          Author:   Hill (D) 
          Amended:  6/21/16  
          Vote:     21 

           SENATE NATURAL RES. & WATER COMMITTEE:  7-2, 3/29/16
           AYES: Pavley, Allen, Hertzberg, Hueso, Jackson, Monning, Wolk
           NOES: Stone, Vidak

          SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

           SENATE FLOOR:  23-11, 5/9/16
           AYES: Allen, Block, De León, Hall, Hancock, Hernandez,  
            Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu,  
            McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth,  
            Wieckowski, Wolk
           NOES: Anderson, Berryhill, Cannella, Fuller, Huff, Moorlach,  
            Morrell, Nguyen, Nielsen, Stone, Vidak
           NO VOTE RECORDED: Bates, Beall, Gaines, Galgiani, Glazer,  
            Runner

           SENATE NATURAL RES. & WATER COMMITTEE:  6-1, 8/10/16 (Pursuant  
            to Senate Rule 29.10)
           AYES:  Pavley, Allen, Hertzberg, Jackson, Monning, Wolk
           NOES:  Vidak
           NO VOTE RECORDED:  Hueso Stone

           ASSEMBLY FLOOR:  45-29, 8/4/16 - See last page for vote

           SUBJECT:   Drought:  excessive water use:  urban retail water  
                     suppliers


          SOURCE:    Author









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          DIGEST:  This bill prohibits excessive water use by a  
          residential customer during specified emergency drought  
          conditions.  Additionally, if specified conditions are met,  
          requires urban retail water suppliers to establish a method to  
          identify and discourage excessive water use.


          Assembly Amendments included both policy and  
          technical/clarifying changes.  Key amendments include:




          1)Expanding the types of drought emergencies triggering this  
            bill to include:




             a)   A local water supply shortage condition that requires  
               mandatory water use reductions under the water supplier's  
               contingency plan.




             b)   Periods for which the Governor has issued a proclamation  
               of a state of emergency based on local drought conditions.




          2)Adding provisions governing required actions of urban retail  
            water suppliers which are not fully metered.




          3)Adding administrative civil penalties as an allowable  
            consequence of violating an excessive use ordinance.









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          4)Adding a requirement that, as part of the appeal process, the  
            urban retail water supplier must provide documentation  
            demonstrating the excessive water usage.




          5)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.


          ANALYSIS:   


          Existing Law:


          1)Declares, in the California Constitution, that:


             a)   The water resources of the state are to be put to  
               beneficial use to the fullest extent of which they are  
               capable.


             b)   The waste or unreasonable use or unreasonable method of  
               use of water is to be prevented.


             c)   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)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  








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            to reduce the quantity of water used for the purpose of  
            conserving the water supplies of the public entity. 


          3)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.


          4)Requires, under the Urban Water Management Planning Act, urban  
            water agencies to update their urban water management plans by  
            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.


          5)Directs, under emergency declarations and executive orders  
            issued by Governor Brown, specific actions state agencies are  
            to make to address the current 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.


          This bill:


          1)Prohibits, 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  








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               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)Requires 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:
                  (1)         Average daily use.
                  (2)         Full-time occupancy of households.








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                  (3)         Amount of landscaped land on a property.
                  (4)         Rate of evapotranspiration.
                  (5)         Seasonal weather changes.
               iii)        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.
               iv)         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.


          3)Provides 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.


          4)Provides that the provisions of this bill are in addition to,  
            and do not supersede or limit, any other measures or remedies  








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            implemented by an urban retail water supplier.


          Comments


          Fining major water users seems to work.  For example, an 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.
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          According to the Assembly Appropriations Committee:  Negligible,  
          if any state costs. 


          SUPPORT:   (Verified8/9/16)


          California League of Conservation Voters
          Clean Water Action
          East Bay Municipal Water District
          Sierra Club California


          OPPOSITION:   (Verified8/9/16)


          Association of California Water Agencies








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          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

          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 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.  








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          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."

          ASSEMBLY FLOOR:  45-29, 8/4/16
          AYES:  Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Campos, Chau, Chiu, Chu, Dababneh, Dodd,  
            Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,  
            Gonzalez, Gordon, Holden, Irwin, Jones-Sawyer, Levine, Lopez,  
            Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,  
            Thurmond, Ting, Weber, Williams, Wood, Rendon
          NOES:  Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,  
            Dahle, Daly, Beth Gaines, Gallagher, Gray, Grove, Hadley,  
            Harper, Jones, Kim, Lackey, Linder, Maienschein, Mathis,  
            Mayes, Melendez, Obernolte, Olsen, Patterson, Steinorth,  
            Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Chávez, Cooley, Cooper, Eggman, Frazier,  
            Roger Hernández


          Prepared by:Dennis O'Connor / N.R. & W. / (916) 651-4116
          8/10/16 15:35:02


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