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AB-1072 Water conservation and efficiency: low-income residential customers.(2023-2024)

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Date Published: 04/25/2023 09:00 PM
AB1072:v97#DOCUMENT

Amended  IN  Assembly  April 25, 2023
Amended  IN  Assembly  March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1072

Introduced by Assembly Member Wicks

February 15, 2023

An act to add Sections 106.1, 375.3, 375.4, and 375.7 to the Water Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


AB 1072, as amended, Wicks. Water conservation and efficiency: low-income residential customers.
Existing law sets forth general state policies regarding water resources.
This bill would declare the policy of the state that all residents have access to water conservation and efficiency programs needs to be available to all residents. programs. The bill would also set forth related findings including that reaching the state’s environmental justice goals and commitments requires designing climate adaptation programs so that all households may participate.
Existing law establishes in the Natural Resources Agency the Department of Water Resources. Existing law also establishes in the California Environmental Protection Agency the State Water Resources Control Board to provide for the orderly and efficient administration of the water resources of the state.
This bill would require, on and after January 1, 2025, urban wholesale water suppliers and urban water suppliers, as defined, to offer technical assistance and financial incentives, as described, to low-income residential customers to install efficient water conservation devices and climate resilient landscaping, as provided. The bill would require the department and the board to utilize, to the maximum extent allowable by law, existing funding programs to provide technical assistance and financial incentives for water conservation and efficiency to community water systems with fewer than 3,000 service connections serving disadvantaged communities, and to urban wholesale water suppliers and urban water suppliers that meet specified criteria. The bill would require the department and the board to prioritize assistance to community water systems with the greatest risks to water supply security. The bill would require the board, in cooperation with the department, prior to January 1, 2025, to hold at least one public workshop to solicit stakeholder input on technical assistance and financial incentive program design and implementation considerations. The bill would also require the board to adopt reporting requirements, as described, on or before July 1, 2026.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 106.1 is added to the Water Code, to read:

106.1.
 It is hereby declared to be the established policy of the state that all residents have access to water conservation and efficiency programs needs to be available to all residents. programs.

SEC. 2.

 Section 375.3 is added to the Water Code, to read:

375.3.
 (a) The state has made significant gains in water conservation and efficiency in the residential sector, but they have not been realized by all households equally. Rebate programs for transforming landscapes and for efficient indoor plumbing fixtures and devices have primarily reached households with capital on hand to cover the initial cost of the investments.
(b) Climate change impacts require an even greater emphasis on water conservation and efficiency.
(c) Reaching the state’s environmental justice goals and commitments requires designing climate adaptation programs so that all households may participate.

SEC. 3.

 Section 375.4 is added to the Water Code, to read:

375.4.
 For the purposes of this chapter:
(a) “Area median income” has the same definition as in Section 50093 of the Health and Safety Code as the median income for a geographic area of the state, as annually estimated by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.
(b) “Board” means the State Water Resources Control Board.
(c) “Climate resilient landscape” means a landscape that can survive with limited irrigation while providing environmental and social benefits, such as shade, habitat, food production, biodiversity, and water quality. Examples include, but are not limited to, personal and community gardens, shade trees, and low water use plants that do not require application of synthetic fertilizers, pesticides, or herbicides.
(d) “Community water system” means a public water system that serves at least 15 service connections used by year-round residents or regularly serves at least 25 year-round residents of the area served by the system, as defined in Section 116275 of the Health and Safety Code.
(e) “Department” means the Department of Water Resources.
(f) “Disadvantaged community” means a community in which the median household income is less than 80 percent of the statewide annual median household income level, as defined in Section 189.7.
(g) “Low-income household” means a household with an income below 80 percent of the area median income.
(h) “Residential water conservation and efficiency program” means a program administered by a community water system that provides services or financial incentives for residential customers to implement water conservation and efficiency improvements to their property.
(i) “Urban water supplier” means a supplier, either publicly or privately owned, providing water for municipal purposes either directly or indirectly to more than 3,000 customers or supplying more than 3,000 acre-feet of water annually, as defined in Section 10617.
(j) “Urban wholesale water supplier” means a water supplier, either publicly or privately owned, that provides more than 3,000 acre-feet of water annually at wholesale for potable municipal purposes, as defined in Section 10608.12.
(k) “Water conservation device” means any fixture, appliance, system, or other technology designed for efficient indoor or outdoor water use, and that meets or exceeds current state and federal codes and standards. Examples include, but are not limited to, toilets, faucets, showerheads, washing machines, dishwashers, leak detectors, irrigation systems, and greywater systems.

SEC. 4.

 Section 375.7 is added to the Water Code, to read:

375.7.
 (a) On and after January 1, 2025, urban wholesale water suppliers and urban water suppliers shall offer technical assistance and financial incentives to low-income residential customers to install efficient water conservation devices and climate resilient landscaping. Technical assistance and financial incentives may be provided as part of a residential water conservation and efficiency program; however, suppliers shall allocate a minimum of 40 percent of program funds to low-income households and disadvantaged communities within their service areas. If the urban wholesale water supplier or urban water supplier can demonstrate to the board that no more than 10 percent of households in their service area would qualify, then the board may adjust the minimum allocation to 10 percent of the total program budget.
(b) The technical assistance and financial incentives may be paid for by ratepayer and nonratepayer revenue, or by recouping the program cost by a surcharge on the program participant’s bill that is no larger than actual bill savings generated by the program.
(c) Technical assistance and financial incentives permissible under this section include, but are not limited to, all of the following:
(1) Discounts realized by the household or the property owner at time of purchase.
(2) Low- or no-cost installation of devices and landscapes.
(3) Technical assistance to establish and maintain climate resilient landscapes.
(4) Partnerships with energy utilities and housing providers to include installation of devices and landscapes in conjunction with energy efficiency upgrades.
(5) Regional partnerships with any entity capable of providing installation of devices or landscapes.
(d) Prior to adopting the technical assistance and financial incentives, urban wholesale water suppliers and urban water suppliers shall solicit input from disadvantaged community members and incorporate their feedback into the design of assistance and incentive programs.
(e) On and after January 1, 2025, an urban wholesale water supplier and urban water supplier that applies for financial assistance, other than emergency assistance, from the state shall be eligible only after demonstrating that the applicant meets the requirements of this section.
(f) (1) The department and the board shall, to the maximum extent allowable by law, utilize existing funding programs to provide technical assistance and financial incentives for water conservation and efficiency to community water systems with fewer than 3,000 service connections serving disadvantaged communities, and to urban wholesale water suppliers and urban water suppliers that meet the requirements of this section.
(2) Existing funding programs shall may include, but are not limited to, all of the following:
(A) Grant funds for water efficiency and conservation authorized by general obligation bonds.
(B) The revolving loan funds for drinking water and clean water administered by the board.

(C)The integrated regional water management program administered by the department.

(D)

(C) General fund allocations for water efficiency and conservation to either the department or the board.

(E)

(D) Federal funds administered by the department or the board for environmental justice, water supply, and water efficiency.

(F)Fees collected pursuant to implementation of the Sustainable Groundwater Management Act (Part 2.74 (commencing with Section 10720) of Division 6).

(g) The department and the board shall prioritize assistance to community water systems with the greatest risks to water supply security.
(h) Prior to January 1, 2025, the board, in cooperation with the department, shall hold at least one public workshop to solicit stakeholder input on technical assistance and financial incentive program design and implementation considerations.
(i) On or before July 1, 2026, the board shall adopt reporting requirements for this section. When setting reporting requirements, the board shall consider the following:
(1) Methods to identify and document disadvantaged communities and low-income households receiving assistance.
(2) Whether to use the electronic annual report process for community water systems pursuant to Section 116530 of the Health and Safety Code.
(3) Whether to set separate compliance reporting requirements for urban water suppliers pursuant to Sections 10609.15 and 10609.28.
(4) Whether to recommend to the Legislature that additional reporting requirements be added to urban water management plans pursuant to Section 10631.