Bill Text: CA AB975 | 2009-2010 | Regular Session | Chaptered
Bill Title: Water corporations: water meters.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 495, Statutes of 2009. [AB975 Detail]
Download: California-2009-AB975-Chaptered.html
BILL NUMBER: AB 975 CHAPTERED
BILL TEXT
CHAPTER 495
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 1, 2009
PASSED THE ASSEMBLY SEPTEMBER 8, 2009
AMENDED IN SENATE JULY 15, 2009
AMENDED IN SENATE JUNE 25, 2009
AMENDED IN ASSEMBLY APRIL 22, 2009
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Fong
FEBRUARY 26, 2009
An act to add Section 781.5 to, and to repeal and add Section 781
of, the Public Utilities Code, and to amend Section 529.7 of the
Water Code, relating to water.
LEGISLATIVE COUNSEL'S DIGEST
AB 975, Fong. Water corporations: water meters.
The existing Water Measurement Law requires every water purveyor,
as defined, who sells, leases, rents, furnishes, or delivers water
service, as defined, for potable water, to any person, as defined, to
require, as a condition of new water service, that a suitable water
meter to measure the water service be installed, requires that the
cost of installation of the meter be paid by the user of water, and
authorizes the water purveyor to impose and collect charges for those
costs. These requirements are not applicable to a community water
system that serves fewer than 15 service connections used by yearlong
residents or regularly serves fewer than 25 yearlong residents, or a
single well that services the water supply of a single-family
residential home. The Water Measurement Law contains additional
requirements relative to the installation of water meters and charges
for water relative to urban water suppliers, as defined. The Water
Measurement Law authorizes a water purveyor, including an urban water
supplier, to recover the cost of providing services related to the
purchase, installation, and operation and maintenance of water meters
from rates, fees, or charges.
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. The existing Public Utilities Act
prohibits the commission from requiring certain water corporations,
or a residential customer of those corporations, to install a water
meter, except after a public hearing held within the service area of
the water corporation at which hearing all of the following findings
are made: (1) metering will be cost effective within the service area
of the water corporation, (2) metering will result in a significant
reduction in water consumption within the corporation's service area,
and (3) the costs of metering will not impose an unreasonable
financial burden on customers within the corporation's service
territory, unless the commission finds metering is necessary to
assure continuation of an adequate water supply within the service
territory.
This bill would repeal the existing limitation in the Public
Utilities Act that limits the authority of the commission to require
a water corporation to install water meters. The bill would require a
water corporation with 500 or more service connections that is not
subject to specified requirements of the Water Measurement Law to
install a water meter on each new service connection and, by not
later than January 1, 2025, to install a water meter upon each
unmetered service connection, as provided. The bill would require a
water corporation with less than 500 service connections as of
January 1, 2010, that thereafter reaches 500 or more service
connections and that is not subject to specified requirements of the
Water Measurement Law, to install a water meter upon each unmetered
service connection within 10 years after it reaches 500 or more
service connections. The bill would require each water corporation
that has installed water meters, or caused water meters to be
installed, that is not subject to specified requirements of the Water
Measurement Law, on and after January 1, 2015, to charge customers
for potable water based on the actual volume of deliveries, as
measured by the water meter, but would authorize the water
corporation to delay imposition of volume-based water service charges
for one annual billing cycle in order to provide customers with
experience with those charges. The bill would require a water
corporation to recover the cost of providing services related to the
purchase, installation, operation, and maintenance of water meters in
rates, fees, or charges, subject to existing law relative to
approval of rates by the commission, and would require the commission
to ensure that a water corporation complies with these requirements
or the requirements of the Water Measurement Law.
This bill would authorize the commission to require a water
corporation that furnishes potable water for residential, commercial,
industrial, or institutional use through less than 500 service
connections that is not subject to specified requirements of Water
Measurement Law, or a residential, commercial, industrial, or
institutional customer of such corporation, to install a water meter
at any water service connection between the water system of the
corporation and the customer if after a public hearing held within
the service area of the water corporation, and upon the commission
finding, based upon the evidence presented at that hearing, that (1)
metering will be cost effective within the service area of the
corporation, (2) metering will result in a reduction in water
consumption within the service area of the water corporation, or (3)
the costs of metering will not impose an unreasonable financial
burden on customers within the service area of the corporation unless
it is found to be necessary to ensure continuation of an adequate
water supply within the service area of the corporation.
This bill would make a clarifying change to a provision of the
Water Measurement Law.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 781 of the Public Utilities Code is repealed.
SEC. 2. Section 781 is added to the Public Utilities Code, to
read:
781. (a) (1) Each water corporation with 500 or more service
connections that is not subject to the requirements of Section 525,
526, 527, or 528 of the Water Code shall install, on and after
January 1, 2010, a water meter on each new service connection.
(2) Each water corporation with 500 or more service connections as
of January 1, 2010, that is not subject to the requirements of
Section 526, 527, or 528 of the Water Code, shall install a water
meter upon each unmetered service connection by January 1, 2025.
(3) Each water corporation with less than 500 service connections
as of January 1, 2010, that thereafter reaches 500 or more service
connections and that is not subject to the requirements of Section
526, 527, or 528 of the Water Code, shall, within 10 years of
attaining that threshold, install a water meter upon each unmetered
service connection.
(4) Each water corporation that is subject to the requirements of
Section 525, 526, 527, or 528 of the Water Code shall install water
meters pursuant to those sections.
(b) (1) Each water corporation that has installed water meters, or
caused water meters to be installed, that is not subject to Section
525, 526, 527, or 528 of the Water Code, shall, on and after January
1, 2015, charge customers for potable water based on the actual
volume of deliveries, as measured by the water meter. This paragraph
does not limit the authority of the commission to authorize a water
corporation that promotes conservation through volumetric water
pricing to determine and impose a rate, fee, or charge in addition to
the charge for the actual volume of metered water delivered.
(2) Each water corporation that is subject to Section 525, 526,
527, or 528 of the Water Code shall charge customers for potable
water based on the actual volume of deliveries, as measured by the
water meter, consistent with the requirements of those sections.
(3) Notwithstanding paragraph (1), in order to provide customers
with experience in volume-based water service charges, a water
corporation that is subject to paragraph (1) may delay, for one
annual seasonal cycle of water use, the use of meter-based charges
for service connections that are being converted from nonvolume-based
billing to volume-based billing.
(c) A water corporation shall recover the cost of providing
services related to the purchase, installation, operation, and
maintenance of water meters in rates, fees, or charges. Rates, fees,
or charges recovered by the water corporation pursuant to this
section are subject to approval by the commission pursuant to Article
1 (commencing with Section 451) of Chapter 3 and Article 2
(commencing with Section 727) of this chapter.
(d) The commission shall ensure that each water corporation that
is subject to the requirements of this section or the requirements of
the Water Measurement Law (Chapter 8 (commencing with Section 500)
of Division 1 of the Water Code) comply with those requirements.
SEC. 3. Section 781.5 is added to the Public Utilities Code, to
read:
781.5. The commission may require a water corporation that
furnishes potable water for residential, commercial, industrial, or
institutional use through less than 500 service connections that is
not subject to the requirements of Section 526, 527, or 528 of the
Water Code, or a residential, commercial, industrial, or
institutional customer of the corporation, to install a water meter
at any water service connection between the water system of the
corporation and the customer if after a public hearing held within
the service area of the corporation, the commission finds, based upon
the evidence presented at that hearing, that any of the following
are true:
(a) Metering will be cost effective within the service area of the
corporation.
(b) Metering will result in a reduction in water consumption
within the service area of the corporation.
(c) The costs of metering will not impose an unreasonable
financial burden on customers within the service area of the
corporation unless it is found to be necessary to ensure continuation
of an adequate water supply within the service area of the
corporation.
SEC. 4. Section 529.7 of the Water Code is amended to read:
529.7. This article does not limit the authority of a water
purveyor that promotes conservation through volumetric water pricing,
including, but not limited to, an urban water supplier that promotes
conservation through volumetric water pricing, to determine and
impose a rate, fee, or charge in addition to the charge for the
actual volume of metered water delivered.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
