Amended in Senate March 30, 2016

Senate Bill No. 1173

Introduced by Senator Hertzberg

February 18, 2016

begin delete An act to amend Section 1101.3 of the Civil Code, relating to water conservation. end delete begin insert An act to amend Sections 1101.1, 1101.2, 1101.3, 1101.5, and 1101.7 of, and to add Sections 1101.55 and 1101.65 to, the Civil Code, and to amend Section 81005 of the Water Code, relating to water conservation. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1173, as amended, Hertzberg. Water-conserving plumbing begin delete fixtures. end delete begin insert fixtures: CalConserve Water Use Efficiency Revolving Fund. end insert

Existing law begin delete requires the replacement of end delete begin insert includes specified requirements to replace end insert plumbing fixtures that are not water conserving, defined as “noncompliant plumbing fixtures,” begin delete in end delete begin insert to end insert residential and commercial real property built and available for use on or before January 1, 1994, as specified. Existing law defines “commercial real property,” “multifamily residential real property,” and “water-conserving plumbing fixture” for purposes of these provisions.

begin delete

This bill would amend the definition of specified noncompliant plumbing fixtures to lower water usage thresholds.

end delete begin insert

This bill would apply these requirements, as specified, to commercial real property regardless of when it was built.

end insert begin insert

Existing law requires on and after January 1, 2014, replacement of noncompliant plumbing fixtures in specified multifamily residential real property and commercial real property. Existing law requires on or before January 1, 2019, replacement of noncompliant fixtures in all multifamily residential real property and commercial real property.

end insert begin insert

This bill would, for commercial property, instead require, on and after January 1, 2017, the replacement of any noncompliant plumbing fixture or fitting in specified additions, alterations, and improvements to commercial real property and, on or before January 1, 2021, the replacement of any noncompliant plumbing fixture or fitting in all commercial real property in accordance with a specified schedule based on the amount of floor space. The bill would define “noncompliant plumbing fixture” and “water-conserving plumbing fixture” for purposes of these requirements to refer to compliance with the State Energy Conservation and Development Commission standards. The bill would also encourage retail water providers to provide on-bill financing options to customers to assist with funding for water efficiency improvements and would make legislative findings in support of these provisions.

end insert begin insert

Existing law establishes the CalConserve Water Use Efficiency Revolving Fund and provides that the moneys in the fund are available to the Department of Water Resources, upon appropriation by the Legislature, for the purpose of water use efficiency projects. Existing law requires moneys in the fund to be used for specified purposes including for local agencies, as defined, to provide low-interest loans to customers to finance the installation of onsite improvements to repair or replace, as necessary, cracked or leaking water pipes to conserve water.

end insert begin insert

This bill would authorize county offices of education and governing boards of school districts to receive moneys from the fund by including those entities in the definition of a local agency.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1101.1 of the end insert begin insert Civil Code end insert begin insert is amended to
read: end insert

1101.1.  

The Legislature finds and declares all of the following:

(a) Adequate water supply reliability for all uses is essential to
the future economic and environmental health of California.

begin delete

(b) Environmentally sound strategies to meet future water supply
and wastewater treatment needs are key to protecting and restoring
aquatic resources in California.

(c) There is a pressing need to address water supply reliability
issues raised by growing urban areas.

(d) Economic analysis by urban water agencies has identified
urban water conservation as a cost-effective approach to addressing
water supply needs.

(e) There are many water conservation practices that produce
significant energy and other resource savings that should be
encouraged as a matter of state policy.

(f) Since the 1991 signing of the “Memorandum of
Understanding Regarding Urban Water Conservation in
California,” many urban water and wastewater treatment agencies
have gained valuable experience that can be applied to produce
significant statewide savings of water, energy, and associated
infrastructure costs. This experience indicates a need to regularly
revise and update water conservation methodologies and practices.

end delete begin insert

(b) California is in a severe drought, and in 2014 and 2015 the
Governor issued executive orders declaring a drought emergency
and calling for mandatory water conservation.

end insert begin insert

(c) In 2015, the State Water Resources Control Board adopted
emergency regulations calling for a number of water conservation
measures, including a mandatory water use reduction requirement
on urban water suppliers.

end insert begin insert

(d) The most recent drought has highlighted the state’s water
reliability challenges and vulnerabilities, and the importance of
water conservation as a short- and long-term strategy to ensure
that there are adequate water supplies for the environment and
people in the state.

end insert begin insert

(e) There is a pressing need to encourage the implementation
of sustainable water conservation efforts and practices that will
persist after the drought as a matter of state policy.

end insert begin insert

(f) There have been many recent advances in water-efficient
technologies, including advances in the efficiency of indoor water
plumbing fixtures, such as toilets, faucets, and showerheads.

end insert

(g) To address these concerns, it is the intent of the Legislature
to require that residential begin delete and commercial end delete real property built and
available for use or occupancy on or before January 1, 1994, be
equipped with water-conserving plumbing fixtures.

begin insert

(h) It is the intent of the Legislature to require that commercial
real property be equipped with water-conserving plumbing fixtures,
and that the retrofitting of water-conserving plumbing fixtures be
prioritized.

end insert begin insert

(i) Commercial real property is responsible for the highest
number of plumbing fixtures per capita, and retrofitting plumbing
fixtures to comply with new standards can help save California
over 40 billion gallons of water per year.

end insert begin insert

(j) In addition to commercial real property, there are
considerable water savings opportunities that can be achieved by
assisting California’s public schools with retrofitting old and less
efficient plumbing and irrigation devices. California’s public
schools have a large number of plumbing and irrigation devices
and fixtures and often lack the financial ability to retrofit them to
make them more water efficient. Retrofitting just plumbing fixtures
in schools has the potential to save over six billion gallons of water
per year.

end insert begin insert

(k) The CalConserve Water Use Efficiency Revolving Fund
established pursuant to Section 81020 of the Water Code was
created to provide low-interest loans and grants to local agencies
for water efficiency projects; however, it does not include public
schools in the types of public agencies that could participate in
the fund.

end insert begin insert

(l) It is the intent of the Legislature to add public schools to the
list of public agencies that are authorized to participate in the
CalConserve Water Use Efficiency Revolving Fund.

end insert begin delete

(h)

end delete

begin insert (m) end insert  It is further the intent of the Legislature that retail water
suppliers are encouraged to provide incentives, financing
mechanisms, and funding to assist property owners begin insert and schools end insert
with begin delete these retrofit obligations. end delete begin insert retrofits and upgrades, as well as
to provide customers with information regarding private financing
opportunities, such as on-bill financing. end insert

begin insert

(n) It is further the intent of the Legislature to encourage
financial institutions to provide on-bill financing opportunities to
facilitate the financing of retrofits and upgrades.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1101.2 of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

1101.2.  

Except as provided in Section 1101.7, this article shall
apply to residential begin delete and commercial end delete real property built and
available for use on or before January 1, begin delete 1994. end delete begin insert 1994, end insert begin insert and
commercial real property end insert begin insert . end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1101.3 of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

1101.3.  

For the purposes of this article:

(a) “Commercial real property” means any real property that is
improved with, or consisting of, a building that is intended for
commercial use, including hotels and motels, that is not a
single-family residential real property or a multifamily residential
real property.

(b) “Multifamily residential real property” means any real
property that is improved with, or consisting of, a building
containing more than one unit that is intended for human habitation,
or any mixed residential-commercial buildings or portions thereof
that are intended for human habitation. Multifamily residential
real property includes residential hotels but does not include hotels
and motels that are not residential hotels.

(c)  begin delete “Noncompliant end delete begin insert Except as provided by Section 1101.55,
“noncompliant end insert plumbing fixture” means any of the following:

(1) Any toilet manufactured to use more than 1.6 gallons of
water per flush.

(2) Any urinal manufactured to use more than one gallon of
water per flush.

(3) Any showerhead manufactured to have a flow capacity of
more than 2.5 gallons of water per minute.

(4) Any interior faucet that emits more than 2.2 gallons of water
per minute.

(d) “Single-family residential real property” means any real
property that is improved with, or consisting of, a building
containing not more than one unit that is intended for human
habitation.

(e)  begin delete “Water-conserving end delete begin insert Except as provided by Section 1101.55,
“water-conserving end insert plumbing fixture” means any fixture that is in
compliance with current building standards applicable to a newly
constructed real property of the same type.

(f) “Sale or transfer” means the sale or transfer of an entire real
property estate or the fee interest in that real property estate and
does not include the sale or transfer of a partial interest, including
a leasehold.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 1101.5 of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

1101.5.  

(a) On or before January 1, 2019, all noncompliant
plumbing fixtures in any multifamily residential real property begin delete and
in any commercial real property end delete shall be replaced with
water-conserving plumbing fixtures.

(b) An owner or the owner’s agent may enter the owner’s
property for the purpose of installing, repairing, testing, and
maintaining water-conserving plumbing fixtures required by this
section, consistent with notice requirements of Section 1954.

(c) On and after January 1, 2019, the water-conserving plumbing
fixtures required by this section shall be operating at the
manufacturer’s rated water consumption at the time that the tenant
takes possession. A tenant shall be responsible for notifying the
owner or owner’s agent if the tenant becomes aware that a
water-conserving plumbing fixture within his or her unit is not
operating at the manufacturer’s rated water consumption. The
owner or owner’s agent shall correct an inoperability in a
water-conserving plumbing fixture upon notice by the tenant or if
detected by the owner or the owner’s agent.

(d) (1) On and after January 1, 2014, all noncompliant plumbing
fixtures in any multifamily residential real property begin delete and any
commercial real property end delete shall be replaced with water-conserving
plumbing fixtures in the following circumstances:

(A) For building additions in which the sum of concurrent
building permits by the same permit applicant would increase the
floor area of the space in a building by more than 10 percent, the
building permit applicant shall replace all noncompliant plumbing
fixtures in the building.

(B) For building alterations or improvements in which the total
construction cost estimated in the building permit is greater than
one hundred fifty thousand dollars ($150,000), the building permit
applicant shall replace all noncompliant plumbing fixtures that
service the specific area of the improvement.

(C) Notwithstanding subparagraph (A) or (B), for any alterations
or improvements to a room in a building that require a building
permit and that room contains any noncompliant plumbing fixtures,
the building permit applicant shall replace all noncompliant
plumbing fixtures in that room.

(2) Replacement of all noncompliant plumbing fixtures with
water-conserving plumbing fixtures, as described in paragraph (1),
shall be a condition for issuance of a certificate of final completion
and occupancy or final permit approval by the local building
department.

(e) On and after January 1, 2019, a seller or transferor of
multifamily residential real property begin delete or of commercial real property end delete
shall disclose to the prospective purchaser or transferee, in writing,
the requirements of subdivision (a) and whether the property
includes any noncompliant plumbing fixtures. This disclosure may
be included in other transactional documents.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 1101.55 is added to the end insert begin insert Civil Code end insert begin insert , end insert immediately
following Section 1101.5 begin insert , to read: end insert

begin insert

begin insert 1101.55. end insert   

(a) Notwithstanding Section 1101.3, for purposes of
this section the following definitions shall apply:

(1) “Noncompliant plumbing fixture” means any fixture or
fitting that is not in compliance with the State Energy Conservation
and Development Commission Appliance Efficiency Regulations
(Article 4 (commencing with Section 1601) of Chapter 4 of Division
2 of Title 20 of the California Code of Regulations) for toilets,
urinals, and faucets.

(2) “Water-conserving plumbing fixture” means any fixture or
fitting that is in compliance with the State Energy Conservation
and Development Commission Appliance Efficiency Regulations
(Article 4 (commencing with Section 1601) of Chapter 4 of Division
2 of Title 20 of the California Code of Regulations) for toilets,
urinals, and faucets.

(b) On or before January 1, 2021, all noncompliant plumbing
fixtures in any commercial real property shall be replaced with
water-conserving plumbing fixtures.

(c) An owner or the owner’s agent may enter the owner’s
property for the purpose of installing, repairing, testing, and
maintaining water-conserving plumbing fixtures required by this
section, consistent with notice requirements of Section 1954.

(d) On and after January 1, 2021, the water-conserving
plumbing fixtures required by this article shall be operating at the
manufacturer’s rated water consumption at the time that the tenant
takes possession. A tenant shall be responsible for notifying the
owner or owner’s agent if the tenant becomes aware that a
water-conserving plumbing fixture within his or her unit is not
operating at the manufacturer’s rated water consumption. The
owner or owner’s agent shall correct an inoperability in a
water-conserving plumbing fixture upon notice by the tenant or if
detected by the owner or the owner’s agent.

(e) (1) On and after January 1, 2017, all noncompliant
plumbing fixtures in any commercial real property shall be
replaced with water-conserving plumbing fixtures in the following
circumstances:

(A) For building additions in which the sum of concurrent
building permits by the same permit applicant would increase the
floor area of the space in a building by more than 10 percent, the
building permit applicant shall replace all noncompliant plumbing
fixtures in the building.

(B) For building alterations or improvements in which the total
construction cost estimated in the building permit is greater than
one hundred fifty thousand dollars ($150,000), the building permit
applicant shall replace all noncompliant plumbing fixtures that
service the specific area of the improvement.

(C) Notwithstanding subparagraph (A) or (B), for any
alterations or improvements to a room in a building that require
a building permit and that room contains any noncompliant
plumbing fixtures, the building permit applicant shall replace all
noncompliant plumbing fixtures in that room.

(2) Replacement of all noncompliant plumbing fixtures with
water-conserving plumbing fixtures, as described in paragraph
(1), shall be a condition for issuance of a certificate of final
completion and occupancy or final permit approval by the local
building department.

(f) In addition to the other requirements in this section, all
noncompliant plumbing fixtures in any commercial real property
shall be replaced with water-conserving plumbing fixtures as
follows:

(1) For commercial real property with floor area of more than
50,000 square feet by January 1, 2018.

(2) For commercial real property with floor area of between
25,000 and 50,000 square feet by January 1, 2019.

(3) For commercial real property with floor area of between
10,000 and 25,000 square feet by January 1, 2020.

(4) For commercial real property with floor area of less than
10,000 square feet by January 1, 2021.

(g) Notwithstanding anything to the contrary, this section shall
not require the replacement of a noncompliant plumbing fixture
where it can be demonstrated that the fixture meets the definition
of a water-conserving plumbing fixture in Section 1101.3 and was
installed after January 1, 2010.

(h) On and after January 1, 2019, a seller or transferor of
commercial real property shall disclose to the prospective
purchaser or transferee, in writing, the requirements of subdivision
(b) and whether the property includes any noncompliant plumbing
fixtures. This disclosure may be included in other transactional
documents.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 1101.65 is added to the end insert begin insert Civil Code end insert begin insert , end insert immediately
following Section 1101.6 begin insert , to read: end insert

begin insert

begin insert 1101.65. end insert   

(a) Retail water providers are strongly encouraged
to provide on-bill financing options to customers to assist with
funding for water efficiency improvements.

(b) Financial institutions are strongly encouraged to provide
water efficiency improvement financing options that allow
borrowers to align the repayment term with the cost savings from
installing water-efficient devices.

(c) Retail water suppliers shall annually provide customers with
information regarding available financing options for the
installation or retrofitting of plumbing fixtures and irrigation
devices. Those financing options may include any local grant funds,
rebates, on-bill financing options, or other incentive and assistance
programs.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 1101.7 of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

1101.7.  

This article shall not apply to any of the following:

(a) Registered begin delete historical end delete begin insert historic end insert sites.

(b) Real property for which a begin delete licensed end delete begin insert California state-licensed end insert
plumber certifies that, due to the age or configuration of the
property or its plumbing, installation of water-conserving plumbing
fixtures is not technically feasible.

(c) A building for which water service is permanently
disconnected.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 81005 of the end insert begin insert Water Code end insert begin insert is amended to read: end insert

81005.  

For purposes of this division, the following terms have
the following meanings:

(a) “Fund” means the CalConserve Water Use Efficiency
Revolving Fund established pursuant to Section 81020.

(b) “Local agency” means begin delete a end delete begin insert either of the following: end insert

begin insert (1) end insert begin insert   end insert begin insert A end insert city, county, city and county, municipal utility district,
community services district, sanitary district, sanitation district,
water district as defined in Section 20200, public water system as
defined in Section 116275 of the Health and Safety Code, or private
water company under the jurisdiction of the Public Utilities
Commission.

begin insert

(2) (A) A county office of education or the governing board of
a school district.

end insert begin insert

(B) For purposes of this division, a customer of a county office
of education includes any local educational agency located within
the jurisdiction of the county office of education and a customer
of the governing board of a school district includes any school
located within the school district.

end insert

(c) “On-bill financing” means a utility-based method for
providing low-interest or no-interest financing for water use
efficiency improvements through the monthly utility bill.

(d) “Technical assistance” means costs incurred for providing
advice, training, or other assistance to local agencies, such as the
following:

(1) Conducting specialized studies to identify water conservation
opportunities that meet the intent of Section 81000.

(2) Planning of specific remodeling, renovation, repair,
replacement, or other projects related to water conservation.

(3) Developing a project proposal for funding from the fund.

begin delete

SECTION 1.  

Section 1101.3 of the Civil Code is amended to
read:

1101.3.  

For the purposes of this article:

(a) “Commercial real property” means real property that is
improved with, or consisting of, a building that is intended for
commercial use, including hotels and motels, that is not a
single-family residential real property or a multifamily residential
real property.

(b) “Multifamily residential real property” means real property
that is improved with, or consisting of, a building containing more
than one unit that is intended for human habitation, or any mixed
residential-commercial buildings or portions thereof that are
intended for human habitation. Multifamily residential real property
includes residential hotels but does not include hotels and motels
that are not residential hotels.

(c) “Noncompliant plumbing fixture” means any of the
following:

(1) Any toilet manufactured to use more than 1.28 gallons of
water per flush and does not have a waste evacuation score of 350
grams or more, except a toilet designed for a prison or mental
health facility.

(2) Any urinal manufactured to use more than 0.125 gallons of
water per flush, except a urinal designed for a prison or mental
health facility.

(3) Any showerhead manufactured to have a flow capacity of
more than 2.5 gallons of water per minute.

(4) A residential lavatory faucet that emits more than 1.2 gallons
of water per minute.

(5) A kitchen faucet that emits more than 1.8 gallons per minute,
except that the faucet may have the capacity to increase to 2.2
gallons per minute momentarily for filling pots and pans.

(6) A public lavatory faucet that exceeds 0.5 gallons per minute.

(d) “Single-family residential real property” means any real
property that is improved with, or consisting of, a building
containing not more than one unit that is intended for human
habitation.

(e) “Water-conserving plumbing fixture” means any fixture that
is in compliance with current building standards applicable to a
newly constructed real property of the same type.

(f) “Sale or transfer” means the sale or transfer of an entire real
property estate or the fee interest in that real property estate and
does not include the sale or transfer of a partial interest, including
a leasehold.

end delete