BILL ANALYSIS �
AB 2443
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2443 (Rendon)
As Amended August 22, 2014
Majority vote
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|ASSEMBLY: |51-23|(May 19, 2014) |SENATE: |35-0 |(August 27, |
| | | | | |2014) |
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Original Committee Reference: L. GOV.
SUMMARY : Allows a public agency to provide recycled water in
the territory of a mutual water company, without compensation,
if the public agency is complying with the Water Recycling Act
of 1991and the mutual water company is not providing recycled
water service or developing plans to provide recycled water
service by December 31, 2014.
The Senate amendments :
1)Provide that the exemption in this bill for a political
subdivision that provides recycled water services in the
territory of a mutual water company from the requirement to
pay compensation to the mutual water company, applies if the
political subdivision complies with the Water Recycling Act of
1991, and does not apply to those customers and their
properties to which the mutual water company was providing
recycled water service, or for whom the mutual water company
has identified and developed specific plans to provide
recycled water service as of December 31, 2014.
2)Amend the Water Recycling Act of 1991 (WRA) to establish the
conditions under which a mutual water company, comparable to a
public agency, must allow the provision of recycled water and
those conditions where it need not, as follows:
a) Extends the application of provisions authorizing a
customer to request a retail water supplier to enter into
an agreement to provide recycled water service to the
customer, and requiring the retail water supplier to submit
an offer for the service within 120 days, to apply to a
mutual water company.
b) Clarifies that a WRA provision authorizing a recycled
AB 2443
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water producer or recycled water wholesaler that has
identified a potential customer to request a retail water
supplier to enter into an agreement to provide recycled
water to the potential customer applies only to customers
within the service territory or jurisdiction of the retail
water supplier.
c) Adds "to the extent feasible" to the existing
requirement that the rate for recycled water shall be
comparable to, or less than, the retail water supplier's
rate for potable water.
d) Makes other clarifying changes.
EXISTING LAW :
1)Requires the payment of compensation to privately owned public
water utilities by a political subdivision that provides
duplicate water service in the private water utility's service
area.
2)Specifies that any corporation organized for or engaged in the
business of selling, distributing, supplying, or delivering
water for irrigation purposes or for domestic use must be
known as a mutual water company.
3)Establishes a statewide goal to recycle one million acre feet
of water by the year 2010. Requires retail water suppliers to
identify potential uses for recycled water within their
service areas, potential customers for, and potential sources
of recycled water. Authorizes a retail water supplier that
has identified a potential use or customer to apply to a
recycled water producer or wholesaler for a recycled water
supply and authorizes a recycled water producer or wholesaler
that has identified a potential use or customer to request, in
writing, a retail water supplier to enter into an agreement to
provide recycled water to the potential customer.
AS PASSED BY THE ASSEMBLY , this bill exempted a political
subdivision, such as a water district, that constructs
facilities to provide or extend recycled water services to the
territory of a mutual water company from the service duplication
law, thereby eliminating the required payment of compensation to
the mutual water company by a political subdivision that
provides duplicate water service in the same service area.
AB 2443
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FISCAL EFFECT : None. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS : Public agencies are not allowed to provide water
service to a customer of a mutual water company, including
recycled water, without the public agency compensating the
mutual water company. With the Senate amendments, this bill
would allow a public agency to provide recycled water in the
territory of a mutual water company without compensation if the
public agency is complying with the WRA and the mutual water
company is not providing recycled water service or developing
plans to provide recycled water service by December 31, 2014.
This bill seeks to expand the availability and use of recycled
water by removing current impediments to that use in the service
area of mutual water companies. The Senate amendments: 1)
require the public agency to comply with the WRA; 2) clarify the
WRA to apply to mutual water companies as it applies to public
agencies; and 3) extend protection to companies that already
serve recycled water service or have developed specific plans to
provide recycled water service by December 31, 2014. According
to the author, it is the author's intent that such specific
plans involve a public agency with legal authority to produce
recycled water. The Senate amendments also removed the
opposition to this bill.
Analysis Prepared by : Tina Cannon Leahy/ W., P. & W. / (916)
319-2096
FN: 0005516