Amended in Assembly April 9, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1434

Introduced by Assembly Member Yamada

January 6, 2014

An act to begin delete amend Section 739.8 of the Public Utilities Code end delete begin insert add Section 12092 to the Government Code end insert , relating to begin insert low-income end insert water begin delete corporations end delete begin insert assistance end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 1434, as amended, Yamada. begin delete Water corporations: low-income relief programs. end delete begin insert Low-Income Water Rate Assistance Program. end insert

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including water corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the Public Utilities Commission to consider, and authorizes the commission to implement, programs to provide rate relief for low-income ratepayers of a water corporation.

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Existing law establishes the Department of Community Services and Development in state government and vests with the department various powers and authority regarding the implementation and administration of programs to assist low-income individuals in the state.

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This bill would begin delete instead require the commission to implement a program to provide rate relief for low-income ratepayers of a water corporation, as specified. end delete begin insert require the department, no later than January 1, 2016, in collaboration with the State Board of Equalization, to develop a plan for the funding and implementation of the Low-Income Water Rate Assistance Program, including specified elements. The bill would require the department, no later than January 1, 2017, to establish the program to require water service providers to provide water bill discounts and subsidies for eligible low-income residential water ratepayers who enroll in the program, in accordance with prescribed requirements. The bill would create the Low-Income Water Rate Assistance Fund in the State Treasury, and would authorize the department, upon appropriation by the Legislature, to expend moneys deposited in the fund for the purposes of the program. The bill would require the department, no later than January 1, 2016, to report to the Legislature on its findings regarding the feasibility and desired structure of the program to be implemented pursuant to the bill, including any recommendations for additional legislative action that may need to be taken to ensure the successful implementation of the program. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 12092 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

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begin insert 12092. end insert   

(a) This section shall be known, and may be cited, as
the Low-Income Water Rate Assistance Act.

(b) No later than January 1, 2016, the department, in
collaboration with the board, shall develop a plan for the funding
and implementation of the Low-Income Water Rate Assistance
Program, which shall include all of the following elements:

(1) A description of the method for collecting funds to support
and implement the program.

(2) A description of the mechanism for providing funding
assistance under the program through either direct credits to
enrollees in the program or reimbursements to water service
providers.

(3) A description of the method to be used to determine the
amount of funds that may need to be collected from water
ratepayers to fund the program. This section does not authorize
the imposition of a state charge to fund the program.

(c) (1) No later than January 1, 2017, the department shall
establish the program, which shall require water service providers
in the state to provide discounts or subsidies for eligible
low-income residential water ratepayers who enroll in the
program.

(2) The department may require documentation, including tax
documents, pay stubs, wage statements, or other documents
providing proof of income, of an enrollee’s eligibility for the
program.

(d) The program required to be developed pursuant to this
section shall ensure all of the following:

(1) A water discount or subsidy not exceeding 20 percent of an
enrollee’s total water bill, or sixty dollars ($60) per month,
whichever is less, shall be made available per billing period to an
eligible enrollee in the program for residential water service
provided by a water service provider.

(2) A water ratepayer who is enrolled in the program may
receive assistance in the form of a discount or credit based on
water usage and the total amount of the enrollee’s most recent
water bill.

(e) The Low-Income Water Rate Assistance Fund is hereby
created in the State Treasury. Moneys deposited in the fund may
be expended by the department, upon appropriation by the
Legislature, for the purposes of the program.

(f) No later than January 1, 2016, the department shall report
to the Legislature on its findings regarding the feasibility and
desired structure of the program to be implemented pursuant to
this section, including any recommendations for additional
legislative action that may need to be taken to ensure the successful
implementation of the program.

(g) For purposes of this section, the following terms shall have
the following meanings:

(1) “Board” means the State Board of Equalization.

(2) “Department” means the Department of Community Services
and Development.

(3) “Fund” means the Low-Income Water Rate Assistance Fund.

(4) “Low-income” means a household with income that is equal
to or no greater than 200 percent of the federal poverty guideline
level. For one-person households, program eligibility shall be
based on two-person household guideline levels.

(5) “Program” means the Low-Income Water Rate Assistance
Program.

(6) “Water service provider” means a water corporation, public
utility district, or other entity that provides water service to
residential water customers in the state.

end insert

begin delete

SECTION 1.  

Section 739.8 of the Public Utilities Code is
amended to read:

739.8.  

(a) Access to an adequate supply of healthful water is
a basic necessity of human life, and shall be made available to all
residents of California at an affordable cost.

(b) (1) The commission shall implement programs to provide
rate relief for low-income ratepayers.

(2) A program pursuant to paragraph (1) shall include a discount
of not less than 20 percent of the low-income ratepayer’s total bill
amount.

(3) The rate relief shall be made available to all eligible
low-income ratepayers obtaining service from a water corporation
serving water at retail within the area in which the low-income
ratepayer is located.

(c) The commission shall consider and may implement programs
to assist low-income ratepayers in order to provide appropriate
incentives and capabilities to achieve water conservation goals.

(d) In establishing the feasibility of rate relief and conservation
incentives for low-income ratepayers, the commission may take
into account variations in water needs caused by geography, climate
and the ability of communities to support these programs.

(e) For purposes of this section, “low-income” means a
household with income that is equal or no greater than 200 percent
of the federal poverty guideline level. For one-person households,
program eligibility shall be based on two-person household
guideline levels.

end delete