BILL NUMBER: SB 855 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 5, 1999
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 amended, 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 allow a customer to request, in
writing, a retail water supplier to enter into an agreement or adopt
recycled water rates in order to provide recycled water service to
the customer. The bill would require the public agency retail water
supplier, by certified mail return receipt requested, to submit a
written offer to the customer not later than 90 days from the date on
which the retail water supplier receives the written request from
the customer. The bill would require the rate and conditions for
recycled water service to be established by contract between the
retail water supplier and the customer, if no rate is in effect for
recycled water service within the service area of a retail water
supplier, not later than 120 days from the date of the customer's
request for a contract, or, by resolution or ordinance by the retail
water supplier, not later than 120 days from the date of the customer'
s written request for an ordinance or resolution. By imposing duties
on public agency retail water suppliers, the bill would impose a
state-mandated local program .
(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
SECTION 1. Section 13580.5 of the Water Code is amended to read:
13580.5. (a) (1) Subject to subdivision (d)
(e) 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.
(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 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 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) A customer may request, in writing, a retail water
supplier to enter into an agreement or adopt recycled water rates in
order to provide recycled water service to the customer. The retail
water supplier, by certified mail return receipt requested, shall
submit a written offer to the customer not later than 90 days from
the date on which the retail water supplier receives the written
request from the customer.
(c) If no rate is in effect for recycled water service
within the service area of a retail water supplier, the rate and
conditions of service for recycled water service
shall be established by contract between the retail water supplier
and the customer not later than 120 days from the date of the
customer requests a contract, or, by resolution or ordinance by the
retail water supplier, not later than 120 days from the date on which
the retail water supplier receives the customer's written request
for an ordinance or resolution .
(c)
(d) 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)
(e) 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)
(f) 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)
(g) This section does not apply to recycled water service
rates established before January 1, 1999, or any amendments to those
rates. 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 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 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 , 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, 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.