Bill Text


Bill PDF |Add To My Favorites |Track Bill | print page

SB-1255 Public water systems: needs analysis: water rate assistance program.(2023-2024)

SHARE THIS: share this bill in Facebook share this bill in Twitter
Date Published: 06/19/2024 09:00 PM
SB1255:v96#DOCUMENT

Amended  IN  Assembly  June 19, 2024
Amended  IN  Assembly  June 03, 2024
Amended  IN  Senate  April 01, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1255

Introduced by Senator Durazo
(Coauthor: Senator Dodd)(Coauthors: Senators Dodd and Smallwood-Cuevas)
(Coauthors: Assembly Members Arambula, Bennett, Connolly, Kalra, Ortega, and Ting)

February 15, 2024

An act to amend Section 116772 of, and to add Chapter 6.5 (commencing with Section 116930) to Part 12 of Division 104 of, the Health and Safety Code, relating to drinking water.


LEGISLATIVE COUNSEL'S DIGEST


SB 1255, as amended, Durazo. Public water systems: needs analysis: water rate assistance program.
(1) The California Safe Drinking Water Act provides for the operation of public water systems and imposes on the State Water Resources Control Board various responsibilities and duties relating to the regulation of drinking water to protect public health. Existing law establishes the Safe and Affordable Drinking Water Fund in the State Treasury to help water systems provide an adequate and affordable supply of safe drinking water in both the near and long terms. Existing law requires the state board to annually adopt a fund expenditure plan, as provided, and requires expenditures from the fund to be consistent with the fund expenditure plan. Existing law requires the state board to base the fund expenditure plan on data and analysis drawn from a specified drinking water needs assessment.
This bill would require the state board to update a needs analysis of the state’s public water systems to include an assessment, as specified, of the funds necessary to provide a 20% bill credit for low-income households served by community water systems with fewer than 3,300 service connections and for community water systems with fewer than 3,300 service connections to meet a specified affordability threshold on or before July 1, 2026, and on or before July 1 of every 3 years thereafter.
(2) Existing law requires the state board, by January 1, 2018, to develop a plan for the funding and implementation of the Low-Income Water Rate Assistance Program. Existing law requires the plan to include, among other things, a description of the method for collecting moneys to support and implement the program and a description of the method for determining the amount of moneys that may need to be collected from water ratepayers to fund the program.
This bill would require qualified systems, defined as any retail water supplier that serves over 3,300 residential connections, to begin providing water rate assistance to eligible ratepayers, defined to mean a low-income residential ratepayer with an annual household income that is no greater than 200% of the federal poverty guideline level, on or before April July 1, 2027. The bill would require a qualified system to automatically enroll an eligible ratepayer in the water rate assistance program if available information, which includes, among other things, authorizing a ratepayer to confirm eligibility by self-certification made under penalty of perjury, indicates that they are qualified to receive assistance and provide a water bill credit, as specified. By expanding the crime of perjury, the bill would impose a state-mandated local program.
The bill would require a qualified system, on or before July September 1, 2026, to provide an opportunity for each ratepayer to provide a voluntary contribution as part of the ratepayer’s water bill to provide funding for the qualified system’s water rate assistance program. The bill would require a qualified system to recommend a voluntary contribution amount on the bill of each ratepayer, other than an eligible ratepayer, at a level that will intended to raise sufficient funding to provide a discount bill credit to eligible ratepayers, pay for the qualified system’s administrative costs to implement the program, program beginning January 1, 2025, and establish a balancing account if the qualified system chooses to do so. The bill would require a qualified system to notify ratepayers of the voluntary contribution on the water bill and provide each ratepayer the option and method of opting out of the voluntary contribution, as specified. The bill would also prohibit a qualified system from sanctioning or holding liable a ratepayer in any manner for not paying the voluntary contribution. The bill would authorize a qualified system to use any state or federal funds that are available to support a ratepayer assistance program by offsetting or supplementing the funds collected from voluntary contributions. The bill would authorize the Attorney General to bring an action in state court to restrain the use of any method, act, or practice in violation of these provisions, except as provided.
(3) 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Existing state law declares that it is the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.
(b) In 2015, the Legislature passed Assembly Bill 401 (Chapter 662 of the Statutes of 2015) that required the State Water Resources Control Board to develop a plan, informed by the public and the State Board of Equalization, for a statewide low-income rate assistance for water.
(c) In 2020, the state board released a report pursuant to Assembly Bill 401, which is entitled “Recommendations for Implementation of a Statewide Low-Income Water Rate Assistance Program,” that found that it would take over $140,000,000 annually to create a low-income water rate assistance program.
(d) However, the cost of water has continued to rise, outpacing the rate of inflation and putting too many California families at risk of water shutoffs.
(e) Many larger systems in California could provide ratepayer assistance, but are limited by Proposition 218. The Legislature should develop tools for larger water systems to provide more assistance to ratepayers without violating Proposition 218.
(f) Further, the options available to aid small water systems vary from those available to larger water systems, and include ongoing operations and maintenance assistance for some systems that serve all or nearly all low-income households.
(g) Therefore, to inform future legislation, the state board should develop regularly updated data on resources needed to support small water systems to guide the creation of a future program to fulfill the right of customers of these systems to affordable drinking water and wastewater.

SEC. 2.

 Section 116772 of the Health and Safety Code is amended to read:

116772.
 (a) (1) By January 1, 2021, the board, in consultation with local health officers and other relevant stakeholders, shall use available data to make available a map of aquifers that are at high risk of containing contaminants that exceed safe drinking water standards that are used or likely to be used as a source of drinking water for a state small water system or a domestic well. The board shall update the map annually based on new and relevant data.
(2) The board shall make the map of high-risk areas, as well as the data used to make the map, publicly accessible on its internet website in a manner that complies with the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code). The board shall notify local health officers and county planning agencies of high-risk areas within their jurisdictions.
(b) (1) By January 1, 2021, a local health officer or other relevant local agency shall provide to the board all results of, and data associated with, water quality testing performed by a laboratory that has accreditation or certification pursuant to Article 3 (commencing with Section 100825) of Chapter 4 of Part 1 of Division 101 for a state small water system or domestic well that was collected after January 1, 2014, and that is in the possession of the local health officer or other relevant local agency.
(2) By January 1, 2022, and by January 1 of each year thereafter, all results of, and data associated with, water quality testing performed by a laboratory that has accreditation or certification pursuant to Article 3 (commencing with Section 100825) of Chapter 4 of Part 1 of Division 101 for a state small water system or domestic well that is submitted to a local health officer or other relevant local agency shall also be submitted directly to the board in electronic format.
(c) (1) On or before July 1, 2026, and on or before July 1 of each three years thereafter, the board, in consultation with the advisory group established pursuant to Section 116768.5 and appropriate stakeholders, shall update the needs analysis of the state’s public water systems to include an assessment of the funds necessary to provide a 20-percent bill credit for low-income households served by community water systems with fewer than 3,300 service connections and for community water systems with fewer than 3,300 service connections to meet the affordability threshold established pursuant to Section 116769.
(2) To develop this assessment, the board shall do all of the following:
(A) Collect arrearage data from water systems not regulated by the Public Utilities Commission and request data from the Public Utilities Commission on those systems they regulate.
(B) Estimate the number of households in need of assistance using arrearage data as well as information provided by the United States Census Bureau or other comparable data source.
(C) Identify available data on water rates charged by community water systems with fewer than 3,300 service connections.
(D) Where data is unavailable for a water system, use an average of existing data to estimate the level of need for that system.

SEC. 3.

 Chapter 6.5 (commencing with Section 116930) is added to Part 12 of Division 104 of the Health and Safety Code, to read:
CHAPTER  6.5. Water Rate Assistance Programs

116930.
 For purposes of this chapter, the following definitions apply:
(a) “Affordability programs” means any of the following programs:
(1) CalWORKs.
(2) CalFresh.
(3) General assistance.
(4) Medi-Cal.
(5) Supplemental Security Income or the State Supplementary Payment Program.
(6) California Special Supplemental Nutrition Program for Women, Infants, and Children.
(7) California Alternate Rates for Energy program.
(8) Family Electric Rate Assistance program.
(b) “Available information” means any of the following:
(1) Information provided pursuant to an agreement entered into pursuant to Section 116933 for the purposes of documenting the residential ratepayer’s participation in an affordability program.
(2) A benefits award letter provided by the residential ratepayer documenting that the customer is an enrollee in, or is a recipient of, an affordability program.
(3) Self-certification of eligibility, under penalty of perjury, by the residential ratepayer.
(c) “Balancing account” means a reserved amount of sufficient funding to address fluctuations in voluntary contributions received or changes in eligible ratepayers, not to exceed 25 percent of the annual expenditures of the program.
(d) “Crisis assistance” means direct bill credits to accounts of eligible ratepayers to reduce accrued arrearages.
(e) “Eligible ratepayer” means a low-income residential ratepayer with an annual household income that is no greater than 200 percent of the federal poverty guideline level.
(f) “Program” means a water rate assistance program established pursuant to this chapter.
(g) “Qualified system” means any retail water supplier that serves over 3,300 residential connections.
(h) “Residential ratepayer” means an accountholder of a qualified system who resides in a single-family or multifamily residence and who receives a bill from a qualified system for water service.
(i) “State board” means the State Water Resources Control Board.
(j) “Voluntary contributions” means funds voluntarily remitted by ratepayers to qualified systems that are not derived from fees or assessments pursuant to Section 4 or 6 of Article XIII D of the California Constitution.

116931.
 (a) On or before April July 1, 2027, a qualified system, other than a system meeting the requirements of subdivision (f), shall establish a program meeting the minimum requirements of subdivision (b) and begin providing water rate assistance to eligible ratepayers in compliance with this chapter.
(b) A program offered pursuant to this chapter shall, at a minimum, include both of the following:
(1) Automatic enrollment of eligible ratepayers if available information indicates that they are qualified to receive assistance.
(2) (A) Provision of a bill credit for eligible ratepayers of no less than 20 percent of the total water charges, and, if present on the bill, wastewater charges. charges, for a volume of water similar to that identified in Section 10609.4 of the Water Code or, if the eligible ratepayer uses less, the actual volume used. In the event there is not sufficient funding, including any balancing account funds, to support a 20-percent bill credit, the program shall provide the maximum bill credit available that funding is able to support. support, unless the maximum bill credit available that funding is able to support is less than 10 percent, in which case the qualified system shall instead provide crisis assistance to the extent funds are available consistent with subdivision (j). The bill credit may be applied pursuant to subparagraph (B).
(B) The qualified system may select the element or elements of the water charges, pursuant to subparagraph (C), upon which the bill credit is applied or may elect to provide a bill credit as a set percentage of the total water bill, provided that the total bill credit is equivalent in value to the bill credit required by this paragraph.
(C) Element, or elements, of the drinking water charges upon which the bill credit may be applied include, but are not limited to, the fixed, volumetric, or fixed and volumetric charges levied by the system.
(c) (1) Beginning July On or before September 1, 2026, for the reasonable costs associated with the administration of this chapter and to establish initial program funding, a qualified system may begin collecting voluntary contributions. Reasonable costs include administrative costs associated with this chapter and for providing notice to customers. ratepayers pursuant to this chapter.
(2) Beginning April July 1, 2027, the reasonable costs associated with the administration of this chapter shall not exceed 10 percent of voluntary contributions collected pursuant to this section.
(d) In establishing a program pursuant to this section, a qualified system may establish a balancing account to manage fluctuations in voluntary contributions and the granting of bill credits to eligible ratepayers.
(e) This section does not require a qualified system to use other funds other than voluntary contributions collected pursuant to Section 116932 to provide rate assistance to eligible ratepayers or to pay for associated administrative costs. Only voluntary contributions collected pursuant to Section 116932 shall be used to implement this program, unless the A qualified system has may use other funds available for this purpose that are not derived from fees or assessments pursuant to Section 4 or 6 of Article XIII D of the California Constitution.
(f) (1) Any qualified system that offers an existing water rate assistance program on or before July September 1, 2026, that meets the minimum enrollment and bill credit requirements specified in subdivision (b) by July 1, 2027, shall not be required to comply with this chapter, but may collect voluntary contributions pursuant to Section 116932 to supplement or expand the existing program or to provide crisis assistance.
(2) Nothing in this chapter shall prohibit a qualified system from offering assistance to residential ratepayers that does either, or both, of the following:
(A) Provides a greater bill credit benefit.
(B) Exceeds the definition of low income as specified in this chapter for ratepayer eligibility.
(g) Any public water system that is not a qualified system may collect voluntary contributions to fund a water affordability program, but is not required to comply with this chapter.
(h) A qualified system may require verification of eligibility from a sample of up to 5 percent of enrolled eligible ratepayers on an annual basis to verify the ratepayer’s low-income status and eligibility for assistance. A qualified system may remove any ratepayers found to not be eligible for assistance from this program.
(i) A qualified system shall continue to have a program pursuant to this chapter as long as there is sufficient funding available pursuant to Section 116932 to provide water rate assistance or crisis assistance, pay for the qualified system’s reasonable costs for administration of the program, and establish a balancing account if the qualified system chooses to do so.
(j) (1) If, after three months of accepting voluntary contributions, the qualified system can demonstrate there will not be sufficient funds to support a program at a minimum of a 10-percent discount or five dollars ($5) per month, whichever amount is greater and adjusted for the consumer price index after July 1, 2027, and pay for the qualified system’s reasonable costs for administration of the program, the system shall instead use the collected contributions to provide ongoing crisis assistance. assistance and pay for the qualified system’s reasonable costs for administration of crisis assistance. Crisis assistance shall be offered on or before July 1, 2027. Crisis assistance shall be offered to eligible ratepayers, at a minimum, when a qualified system provides notice pursuant to Section 116908 or when the eligible customer contacts the qualified system about a delinquent account.
(2) Crisis assistance shall only be provided to an eligible ratepayer once per year and limited to an amount determined by the qualified system, taking into account the overall past due amount and available funding. To the extent the amount of crisis assistance provided does not eliminate an eligible ratepayer’s arrearages, the ratepayer shall enter into an amortization agreement, alternative payment schedule, or plan for deferred or reduced payment, pursuant to Section 116910, to be eligible for crisis assistance.

116932.
 (a) On or before July September 1, 2026, a qualified system shall provide an opportunity for each ratepayer of the system to provide a voluntary contribution as part of the ratepayer’s water bill to provide funding for the qualified system’s program.
(b) A qualified system shall establish a recommended voluntary contribution amount on the bill of each ratepayer other than an eligible ratepayer based on available information as of March July 1, 2026, at a level designed intended to raise sufficient funding to provide a discount bill credit to eligible ratepayers pursuant to paragraph (2) of subdivision (b) of Section 116931, pay for the qualified system’s administrative costs to implement this chapter, chapter beginning January 1, 2025, and establish a balancing account if the qualified system chooses to do so. When setting the initial level of the recommended voluntary contribution, a qualified system shall assume that 60 percent of ratepayers other than eligible ratepayers will provide the contribution. After March On or before July 1, 2027, a qualified system may adjust the voluntary contribution, as necessary, considering the previous year’s actual participation rate. The recommended voluntary contribution shall not exceed 5 percent of the charges for water and wastewater on the water bill for any residential ratepayer.
(c) A bill from a qualified system shall label the voluntary contribution in a way that describes the purpose of the funds. The qualified system shall notify their ratepayers of the voluntary contribution and, in a visually accessible manner and using clear and unambiguous language, shall provide each ratepayer the option and method of opting out of providing the voluntary contribution at least three months prior to beginning collection of the voluntary contribution, and thereafter on at least an annual basis. Voluntary contributions shall commence on the qualified system’s subsequent billing cycle from the notice. The qualified system may choose to include alternative amounts for contributions. A qualified system shall also provide this information on its internet website in English, the other languages listed in Section 1632 of the Civil Code, and any other language spoken by at least 10 percent of the people residing in its service area.
(d) A ratepayer may opt out of the voluntary contribution at any time in a manner that may be specified by the qualified system and shall be included in the notice in subdivision (c), with voluntary contributions terminating on the qualified system’s subsequent normal billing cycle.
(e) A ratepayer may only request a refund for contributions made since the last notice of opportunity to opt out of the program was provided or for the period of the last billing cycle prior to the date the ratepayer opts out, whichever time period is greater. Qualified systems may provide refunds in the form of a bill credit.
(f) (1)A qualified system shall not sanction, take any enforcement or collection action against, impose any late charge or penalty against, or otherwise hold liable a ratepayer in any manner for exercising the option of not paying a voluntary contribution described in this section.

(2)Nothing in this chapter shall prohibit a qualified system from offering assistance to residential ratepayers that do either, or both, of the following:

(A)Provides a greater bill credit benefit.

(B)Exceeds the definition of low income as specified in this chapter for ratepayer eligibility.

(g) The voluntary contribution contributions shall be used only to provide rate assistance to eligible ratepayers, pay for associated administrative costs to implement the program, and establish a balancing account. Administrative costs of establishing the program may be reimbursed from initial voluntary contributions.
(h) A qualified system may coordinate contract with a third party to receive the voluntary contributions and comply with this section.
(i) Any partial payment made by a ratepayer that is insufficient to pay for charges on the bill shall be used to pay the qualified system’s fees charges shown on the ratepayer’s bill before being attributed to a voluntary contribution.
(j) No penalty or late fee may be assessed by a qualified system for the failure of a ratepayer to make timely payment of a voluntary contribution described in this section, regardless of whether the ratepayer has exercised the option of not paying a voluntary contribution.
(k) A qualified system may use any state or federal funds that are available to support a program by offsetting or supplementing the funds collected from voluntary contributions.

116933.
 (a) On or before January 1, 2026, the Public Utilities Commission shall establish a mechanism for electrical corporations and gas corporations to regularly provide data to all qualified systems no later than April 1, 2026, and annually by April 1 thereafter, regarding ratepayers enrolled in, or eligible to be enrolled in, the California Alternate Rates for Energy (CARE) program established pursuant to Section 739.1 of the Public Utilities Code and the Family Electric Rate Assistance (FERA) program established pursuant to Section 739.12 of the Public Utilities Code.
(b) All qualified systems may enter into agreements with local publicly owned electric utilities and local publicly owned gas utilities, including, but not limited to, municipal utility districts and irrigation districts, for the purpose of regularly receiving data regarding ratepayers enrolled in, or eligible to be enrolled in, affordability programs benefiting eligible ratepayers.
(c) Data provided pursuant to subdivision (a) or (b) is subject to Section 7927.410 of the Government Code and the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
(d) Data provided pursuant to subdivision (a) or (b) shall not be considered a disclosure under Section 1798.83 of the Civil Code.

116934.
 The Beginning in 2028, the state board shall require qualified systems, in technical reports required by the state board pursuant to Section 116530, to annually report the following:
(a) The total amount of voluntary contributions collected, the administrative costs of operating the program, the number of eligible households that were provided rate assistance or crisis assistance, and the total amount of rate assistance or crisis assistance provided to eligible households.
(b) An evaluation of available relevant information regarding any arrearages that remain after application of bill assistance.

116935.
 (a) The Attorney General may bring an action in state court to restrain, by temporary or permanent injunction, the use of any method, act, or practice in violation of this chapter by a qualified system, other than a system that meets the requirements of subdivision (f) of Section 116931, including nonparticipation by a qualified system pursuant to this chapter.
(b) The Attorney General shall not bring an action against a qualified system for failing to meet the requirements of subdivision (f) of Section 116931, as long as the qualified system makes a good faith effort to raise sufficient funding pursuant to Section 116932.

116936.
 The provisions of this chapter are severable. If any provision of this article or its application is held invalid due to a conflict with federal requirements, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 4.

 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.