BILL ANALYSIS
AB 1908
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Date of Hearing: April 27, 2004
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Joseph E. Canciamilla, Chair
AB 1908 (Canciamilla) - As Amended: April 12, 2004
SUBJECT : Recycled water.
SUMMARY : Allows a public agency that recycles water to serve
that water within the boundaries of a county water district.
Specifically, this bill :
1)Makes legislative findings as to the importance of recycling
water and using the recycled water as an additional supply.
2)Defines the service of recycled water as not "a service
similar to" the service of potable, raw, or untreated water.
3)States that this bill does not alter any rights, remedies, or
obligations under the Public Utilities Code "duplication of
service" statutes.
EXISTING LAW prohibits a publicly owned utility from providing a
similar service to the service a county water district provides
for, on, or to any land within the boundaries of the district
that is subject to the lien of a general obligation
indebtedness. The Public Utilities Code addresses compensation
provisions if there is a "taking" in the event that service is
duplicated.
FISCAL EFFECT : No cost to the state. This bill may have an
effect on the revenues of the recycling agency and on the county
water district.
COMMENTS : In its 2003 report, the Recycled Water Task Force
highlighted the need to identify and eliminate unnecessary
barriers to maximizing water recycling in California. This bill
removes one barrier to the increasing use of recycled water.
Delta-Diablo Sanitation District (DDSD) recycles water in Contra
Costa County. DDSD is located within the service area of the
Contra Costa Water District (CCWD), a county water district.
Most of DDSD's recycled water is put into the Bay-Delta estuary,
where it provides water quality benefits by reducing salt
concentrations in the estuary. DDSD is not compensated for
AB 1908
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those water quality benefits.
DDSD would like to serve recycled water for landscape irrigation
purposes to customers within the service area of CCWD, who are
not current customers of CCWD. Under current law, DDSD may not
serve water to customers within CCWD's boundaries without the
consent of CCWD's board or a vote of the electorate within the
district. This is because CCWD has incurred bonded indebtedness
for its Los Vaqueros Reservoir Project and its Multi-purpose
Pipeline project.
DDSD agrees that it should not strand any of this raw water
debt, without compensation to CCWD. However, CCWD wants to
apply a proportionate share of its bonded indebtedness to every
acre foot of water produced, which would amount to a cost to
DDSD of $305 per acre foot, without considering any offset for
avoided costs or other benefits of recycling.
This bill would remove the service of recycled water from the
provisions of the Water Code that allow a county water district
to "veto" the service of recycled water in its territory.
Recycled water would remain subject to the provisions of the
Public Utilities Code that provide compensation for "takings"
due to duplication of service.
The Association of California Water Agencies (ACWA) opposes the
bill. ACWA argues that the Legislature has already put
procedures in place that require local agencies to work together
in a manner that increases the use of recycled water, while
protecting the infrastructure investments of potable water
suppliers. ACWA argues that this bill may solve a problem from
the perspective of recycled water suppliers, but it poses a
threat to local control, local taxpayer and ratepayer
investments, and appropriate local water supply and management
planning.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Sanitation Agencies (CASA)
Opposition
Association of California Water Agencies (ACWA)
AB 1908
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California Water Association
Analysis Prepared by : Jeffrey Volberg / W., P. & W. / (916)
319-2096