Amended  IN  Senate  July 03, 2023
Amended  IN  Assembly  May 18, 2023
Amended  IN  Assembly  March 16, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 755

Introduced by Assembly Member Papan

February 13, 2023

An act to add Chapter 3.8 (commencing with Section 390) to Division 1 of the Water Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


AB 755, as amended, Papan. Water: public entity: cost-of-service analysis.
Existing law authorizes a public entity that supplies water at retail or wholesale within its service area to adopt, in accordance with specified procedures, and enforce a water conservation program.
This bill would require a public entity, as defined, that conducts a cost-of-service analysis, as defined, to identify the total incremental costs incurred by all the major water users, as described, and low volume water users, as described, in the single-family residential class and the total incremental costs that would be avoided if major water users met a specified efficiency goal. class. The bill would also require both of those costs to be made publicly available by posting the information in the public entity’s cost-of-service analysis. By requiring a higher level of service of public entities, the bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Chapter 3.8 (commencing with Section 390) is added to Division 1 of the Water Code, to read:
CHAPTER  3.8. Water: Cost-of-Service Analysis

390.
 For purposes of this chapter, the following terms have the following meanings:
(a) “Cost-of-service analysis” means the analysis conducted to determine water usage patterns and demands placed on the system by various customer classes.

(b)“Efficiency goal” means the long-term standards for efficient water use, as developed by the board, pursuant to Section 10609.2, as applied to an individual household.

(c)

(b) “Incremental costs” means the costs of water service, including capital costs and operation and maintenance costs, that the public entity incurs directly, or by contract, as a result of the use of water by the systems’ major water users and may include any of the following:
(1) Conservation best management practices, conservation education, irrigation controls and other conservation devices, and other demand management measures.
(2) Water system retrofitting, dual plumbing and facilities for production, distribution, and all uses of recycled water and other alternative water supplies.
(3) Projects and programs for the prevention, control, or treatment of the runoff of water from irrigation and other outdoor water uses. Incremental costs does not include the costs of stormwater management systems and programs.
(4) Securing dry year water supply arrangements.
(5) Procuring water supplies, including supply or capacity contracts for water supply rights or entitlements.
(6) Energy costs for water delivery.
(c) “Low volume water user” means the bottom 10 percent of water users in a given customer class since the last cost-of-service analysis.
(d) “Major water user” means the top 10 percent of water users in a given customer class since the last cost-of-service analysis.
(e) “Public entity” means a city, whether general law or chartered, county, city and county, special district, agency, authority, any other municipal public corporation or district, or any other political subdivision of the state that provides retail water service and that is an urban water supplier, as defined in Section 10617.

390.1.
 (a) Whenever a public entity conducts a cost-of-service analysis, that entity shall identify both of the following: the total incremental costs incurred by all the major water users and the total incremental costs incurred by all the low volume water users in the single-family residential class.

(1)The total incremental costs incurred by all the major water users in the single-family residential class.

(2)The total incremental costs that would be avoided if major water users met a specified efficiency goal.

(b) The costs identified in paragraphs (1) and (2) of subdivision (a) shall be made publicly available by posting the information in the public entity’s cost-of-service analysis.

SEC. 2.

 The Legislature finds and declares that water conservation is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act adding Section 390.1 to the Water Code applies to all cities, including charter cities.

SEC. 3.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.