Bill Text: CA AB401 | 2015-2016 | Regular Session | Chaptered
Bill Title: Low-Income Water Rate Assistance Program.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2015-10-09 - Chaptered by Secretary of State - Chapter 662, Statutes of 2015. [AB401 Detail]
Download: California-2015-AB401-Chaptered.html
BILL NUMBER: AB 401 CHAPTERED
BILL TEXT
CHAPTER 662
FILED WITH SECRETARY OF STATE OCTOBER 9, 2015
APPROVED BY GOVERNOR OCTOBER 9, 2015
PASSED THE SENATE SEPTEMBER 8, 2015
PASSED THE ASSEMBLY SEPTEMBER 9, 2015
AMENDED IN SENATE SEPTEMBER 2, 2015
AMENDED IN SENATE SEPTEMBER 1, 2015
AMENDED IN SENATE JULY 9, 2015
AMENDED IN ASSEMBLY APRIL 8, 2015
INTRODUCED BY Assembly Member Dodd
(Coauthor: Senator McGuire)
FEBRUARY 19, 2015
An act to add Section 189.5 to the Water Code, relating to
low-income water assistance.
LEGISLATIVE COUNSEL'S DIGEST
AB 401, Dodd. Low-Income Water Rate Assistance Program.
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.
Existing law establishes the State Water Resources Control Board
and the 9 California regional water quality control boards as the
principal state agencies with authority over matters relating to
water quality. Existing law requires the state board to formulate and
adopt state policy for water quality control.
This bill would require the state board, no later than January 1,
2018, in collaboration with the State Board of Equalization and
relevant stakeholders, to develop a plan for the funding and
implementation of the Low-Income Water Rate Assistance Program, which
would include specified elements. The bill would permit the board to
consider existing rate assistance programs authorized by the
commission in developing the plan and would authorize the plan to
include recommendations for other cost-effective methods of offering
assistance to low-income water customers. The bill would require the
state board, no later than February 1, 2018, to report to the
Legislature on its findings regarding the feasibility, financial
stability, and desired structure of the program, including any
recommendations for legislative action that may need to be taken.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 189.5 is added to the Water Code, to read:
189.5. (a) This section shall be known, and may be cited, as the
Low-Income Water Rate Assistance Act.
(b) No later than January 1, 2018, the board, in collaboration
with the State Board of Equalization and relevant stakeholders, 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 moneys to support
and implement the program, including a discussion of any
constitutional restrictions on public water agency ratesetting.
(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, including a method for verifying income eligibility of
low-income ratepayers, clarification of the role of the Public
Utilities Commission and water utilities in determining and verifying
customer eligibility, and recommendations regarding the structure of
the program, particularly whether it will be administered by the
state or locally administered.
(3) A description of the method to be used to determine the amount
of moneys that may need to be collected from water ratepayers to
fund the program. The plan shall include a set of recommendations and
best practices of cost-savings measures to ensure water utilities
are demonstrating whether and how they are keeping rates low. This
section does not authorize the imposition of a state charge to fund
the program.
(c) In developing the plan required in subdivision (b), the board
may consider the existing rate assistance programs authorized by the
Public Utilities Commission for investor-owned water utilities
pursuant to Section 739.8 of the Public Utilities Code.
(d) The plan may also include recommendations for other
cost-effective methods of offering assistance to low-income water
customers besides rate assistance, including billing alternatives,
installation of water conservation devices, and leak repair. In
considering other methods, the board may consider the Public
Utilities Commission's "Assessment of Water Utility Low-Income
Assistance Programs."
(e) (1) No later than February 1, 2018, the board shall report to
the Legislature on its findings regarding the feasibility, financial
stability, and desired structure of the program, including any
recommendations for legislative action that may need to be taken.
(2) The requirement for submitting a report imposed under this
subdivision is inoperative on February 1, 2022, pursuant to Section
10231.5 of the Government Code.
(3) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.
(f) For purposes of this section, the following terms have the
following meanings:
(1) "Board" means the State Water Resources Control Board.
(2) "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.
(3) "Program" means the Low-Income Water Rate Assistance Program.
