BILL NUMBER: SB 855 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Haynes
FEBRUARY 25, 1999
An act to amend Sections 13580.5 and 13580.7 of the Water Code,
relating to water.
LEGISLATIVE COUNSEL'S DIGEST
SB 855, as introduced, Haynes. Recycled water.
(1) The Water Recycling Act of 1999 requires a retail water
supplier that receives a specified request from a customer to enter
into an agreement to provide recycled water, if recycled water is
available, or can be made available, to the retail water supplier for
sale to the customer. The act requires a retail water supplier, if
a recycled water producer or wholesaler provides a customer of that
supplier with a written statement that it will provide recycled water
to that supplier, to submit a written offer to the customer not
later than 120 days from the date on which that supplier receives the
written statement from the customer. The act requires the retail
water supplier, not later than 120 days from the date on which that
supplier receives a copy of a specified determination by the State
Water Resources Control Board, to submit a written offer to the
customer.
The act requires the rate for, and conditions of, recycled water
service to be established by contract between a public agency retail
water supplier and the customer, if there is no rate in effect for
recycled water service within the service area of that supplier and
prescribes certain other requirements relating to recycled water
service rates established by a public agency retail water supplier on
and after January 1, 1999.
This bill would require the retail water supplier, not later than
60 days from the date on which that supplier receives from the
customer that written statement regarding the availability of
recycled water from a producer or wholesaler, or a copy of that state
board determination, to submit a written offer to provide recycled
water service to the customer.
The bill would require a public agency retail water supplier, if a
customer requests, in writing, recycled water service and that
supplier determines that a recycled water wholesaler or producer, by
contract or otherwise, can provide the recycled water to that
supplier, to adopt, by resolution or ordinance, a rate for recycled
water service not later than 60 days from the date of the customer's
request, thereby imposing a state-mandated local program. The bill
would require the rate for, and conditions of, recycled water service
to be established by contract between the public agency retail water
supplier and the customer, not later than 60 days from the date of
the receipt of a written request for recycled water service, if no
rate is in effect or being proposed for adoption, as prescribed,
within the service area of that supplier, thereby imposing a
state-mandated local program.
The bill would make those prescribed recycled water service rate
requirements applicable to rates established by a public agency
retail water supplier on and after January 1, 2000, instead of
January 1, 1999.
(2) 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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
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 these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13580.5 of the Water Code is amended to read:
13580.5. (a) (1) Subject to subdivision (d) of Section 13580.7, a
retail water supplier that receives a request from a customer
pursuant to subdivision (c) of Section 13580 shall enter into an
agreement to provide recycled water, if recycled water is available,
or can be made available, to the retail water supplier for sale to
the customer.
(2) Notwithstanding paragraph (1), in accordance with a written
agreement between a recycled water producer or a recycled water
wholesaler and a retail water supplier, the retail water supplier may
delegate to a recycled water producer or a recycled water wholesaler
its responsibility under this section to provide recycled water.
(3) If a customer requests, in writing, a retail water supplier
that is a public agency, to provide recycled water and the retail
water supplier determines that a recycled water wholesaler or
producer, by contract or otherwise, can provide recycled water to
that retail water supplier, the retail water supplier shall adopt, by
resolution or ordinance, a rate, not later than 60 days from the
date of the customer's request.
(b) A customer may not obtain recycled water from a recycled water
producer, a recycled water wholesaler, or a retail water supplier
that is not the retailer without the agreement of the retailer.
(c) If either a recycled water producer or a recycled water
wholesaler provides a customer of a retail water supplier with a
written statement that it can and will provide recycled water to the
retailer, the retail water supplier shall, not later than
120 60 days from the date on which the retail
water supplier receives the written statement from the customer, by
certified mail, return receipt requested, submit a written offer to
the customer. A determination of availability pursuant to Section
13550 is not required.
(d) If the state board pursuant to Section 13550 makes a
determination that there is available recycled water to serve a
customer of a retail water supplier, the retail water supplier, not
later than 120 60 days from the date on
which the retail water supplier receives a copy of that
determination from the customer, by certified mail, return receipt
requested, shall submit a written offer to the customer.
SEC. 2. Section 13580.7 of the Water Code is amended to read:
13580.7. (a) This section applies only to a retail water supplier
that is a public agency.
(b) If no rate is in effect , or if no rate is being proposed
for adoption pursuant to paragraph (3) of subdivision (a) of Section
13580.5, for recycled water service within the service area of
a retail water supplier, the rate for, and conditions of
service for , recycled water service
shall be established by contract between the retail water supplier
and the customer , not later than 60 days from the date on which
the retail water supplier receives a written request for recycled
water service from the customer .
(c) A rate for recycled water service established by contract,
ordinance, or resolution, shall reflect a reasonable relationship
between the amount of the rate and the retail cost of obtaining or
producing the recycled water, the cost of conveying the recycled
water, and overhead expenses for providing recycled water service.
Capital costs of facilities required to serve the customer shall be
amortized over the economic life of the facility, or the length of
time the customer agrees to purchase recycled water, whichever is
less. The rate shall not exceed the estimated reasonable cost of
providing the service, and any additional costs agreed to by the
customer for recycled water supplemental treatment.
(d) The rate for recycled water shall be comparable to, or less
than, the retail water supplier's rate for potable water. If
recycled water service cannot be provided at a rate comparable to, or
less than, the rate for potable water, the retail water supplier is
not required to provide the recycled water service, unless the
customer agrees to pay a rate that reimburses the retail water
supplier for the costs described in subdivision (c).
(e) The offer required by subdivisions (c) and (d) of Section
13580.5 shall identify all of the following:
(1) The source for the recycled water.
(2) The method of conveying the recycled water.
(3) A schedule for delivery of the recycled water.
(4) The terms of service.
(5) The rate for the recycled water, including the per-unit cost
for that water.
(6) The costs necessary to provide service and the basis for
determining those costs.
(f) This section does not apply to recycled water service rates
established before January 1, 1999 2000
, or any amendments to those rates.
SEC. 3. Notwithstanding Section 17610 of the Government Code, 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. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.