BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 19
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          Date of Hearing:   March 22, 2011

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                      AB 19 (Fong) - As Amended:  March 17, 2011
           
          SUBJECT  :   Water meters: multiunit structures

           SUMMARY  :   Requires water submetering on multiunit structures.  
          Specifically,  this bill  :  

          1)Mandates that water purveyors adopt policies requiring that 
            multiunit residential structures or mixed use residential and 
            commercial structures that apply for water connections after 
            January 1, 2014, have, as a condition of new water service, 
            submeters that measure the water supplied to each individual 
            dwelling unit.

          2)Prohibits water purveyors from charging a fee for the 
            installation of a submeter that is installed by the owner or 
            his or her agent.

          3)Requires that meters or submeters be of types or designs which 
            have been approved in 
          accordance with state rules and regulations governing devices 
            that weigh and measure.
            
          4)Requires that meters or submeters be installed and operated in 
            compliance with state regulations governing the tolerances and 
            specifications for measuring devices.

           EXISTING LAW  :

          1)Requires urban water suppliers that do not get water from the 
            federal Central Valley Project to install water meters on all 
            municipal and industrial service connections and to charge 
            each customer based on actual volume of water delivered.

          2)Each water corporation with 500 or more service connections 
            that is not already subject to water metering requirements 
            under the existing Water Measurement Law must currently 
            install a water meter on each new service connection and must 
            retrofit each unmetered service connection by January 1, 2025.

           FISCAL EFFECT  :   Unknown








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           COMMENTS  :   As the Pacific Institute highlighted in the report 
          Waste Not, Want Not:  The Potential for Urban Water Conservation 
          in California, water conservation is the largest, least 
          expensive, and most environmentally sound source of water to 
          meet California's future needs.   The installation of water 
          meters on multiunit residential and mixed use commercial 
          buildings has been shown to encourage increased conservation by 
          making homeowners, business owners, or renters aware of the 
          amount of water they are utilizing.  Conceptually, this 
          legislation is similar to a draft ordinance requiring 
          submetering that was adopted by the City of San Diego on April 
          5, 2010.  San Diego adopted its ordinance after a report from 
          the City of San Diego Office of the Independent Budget Analyst 
          found that multifamily units comprised 44% of the total housing 
          in San Diego, the trend was increasing, and multifamily 
          properties achieved a 15% to 39% water savings when submetered.

          Supporters of the bill state that it is an important step 
          towards ensuring that water conservation measures are 
          universally applied.  They point out that in San Francisco, for 
          example, 70% of the residents live in multi-unit buildings.  
          They state that as California moves away from urban sprawl and 
          promotes increasing density, this legislation will play an 
          essential role in ensuring water use efficiency.

          Opponents are concerned that since this bill states it applies 
          to new water service and not specifically new construction, it 
          could be interpreted in some circumstances to require expensive 
          retrofits of submeters onto existing properties.  Opponents are 
          also concerned that in mixed-use developments the terms of this 
          bill could extend to commercial as well as residential tenants 
          and that for legal and practical reasons those two groups should 
          be treated differently.  Finally, they are concerned that water 
          purveyors could adopt more stringent standards and requirements 
          than the state's building codes.

          Two previous attempts to introduce submetering, AB 1975 (Fong) 
          and AB 1173 (Keene), failed because of concerns regarding 
          potential impacts to low income tenants.  This bill exempts low 
          income housing from its provisions as well as student 
          dormitories, long-term health care facilities and time-share 
          properties.  This bill does not address billing.

          The author indicates that the intent of the bill is for 








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          submetering to be required on new construction.  However, there 
          is an ambiguity, identified by opponents, created by referring 
          only to new water connections.  In addition, this bill separates 
          common interest developments from other multiunit properties.  
          This does two things:  eliminates the choice to submeter by 
          requiring individual meters on each unit; and, inadvertently, 
          does not include common interest developments among the 
          structures which may be eligible to receive an exemption if they 
          are over four stories in height and can demonstrate that it is 
          infeasible to submeter, as specified.

           Suggested Amendments  :  If the committee choses to approve this 
          bill, staff recommends that provisions be added to clarify that 
          this bill only applies to new construction.  In addition, staff 
          recommends that the distinction between common interest 
          developments and other multiunit structures be eliminated.  This 
          would allow newly-constructed common interest developments to 
          choose between metering and submetering and also allow such 
          developments over four stories high a potential exemption for 
          infeasibility, if qualified.  (See attached.)

           REGISTERED SUPPORT / OPPOSITION  :   


           Support 
           Clean Water Action
          Environmental Justice Coalition for Water
          Friends of the River
          Planning and Conservation League
          Sierra Club

           


        Opposition 
         Apartment Association of Greater Los Angeles
        Apartment Association of Orange County
        Apartment Association, California Southern Cities
        San Diego County Apartment Association
        San Francisco Association of Realtors
        Santa Barbara Rental Property Association
        Utility Conservation Coalition  
           
           Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916) 
          319-2096 








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