BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 855
                                                          Page  1

Date of Hearing:   June 8, 1999

        ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE 
                     Michael Machado, Chair
           SB 855 (Haynes) - As Amended:  May 11, 1999

  SENATE VOTE  :   37-0
  
SUBJECT  : Recycled water

  SUMMARY  : Establishes a timeframe for a public recycled water  
retailer to establish rates for service.  Specifically,  this  
bill  :   

1)Authorizes a  customer to request in writing a retail water  
  supplier enter into an agreement or adopt recycled water rates  
  to deliver recycled water.

2)Requires a retailer of water service mail a written offer to  
  the customer within 90 days of receipt of the request.

3)Requires the rates and conditions for the recycled water  
  established between the supplier and the customer by contract,  
  ordinance or resolution within 120 days from the customer  
  request.

  EXISTING LAW  :

The Water Recycled Act (WRA) was amended by SB 2103 (Haynes)   
Chapter 753, Statutes of 1998 established a procedure to  
maximize the use of recycled water, when available, in lieu of  
higher quality, potable water.  

The WRA requires the water retailer set rates for recycled water  
service if no rate exists.  The WRA does not require the retail  
water supplier to set the rate within a specific time period.   
However, if the retail water supplier does not set the rate in a  
timely manner, then either the customer or the retail water  
supplier may seek formal mediation.  If formal mediation fails,  
remedy is in the courts without a presumption in favor of the  
retail water supplier.

The WRA makes findings regarding the importance of recycled  
water and establishes a statewide goal to recycle 700,000 acre  
feet of water per year by the year 2000 and 1,000,000 acre feet  








                                                          SB 855
                                                          Page  2

per year by the year 2010.  Currently, there is about 450,000  
acre feet per year of water being recycled.

  FISCAL EFFECT  :   Unknown

  COMMENTS  :   Proponents believe SB 855 will ensure that rates for  
recycled water will be set within a reasonable timeframe and  
that agencies responsible for the necessary retrofits can  
proceed with critical state loan applications.

Opponents of this measure believe the 120 day period for the  
retail water service to respond to a customer request should not  
be changed to 90 days because the supplier may need to design  
and construct a distribution facility to provide service to a  
new customer. 

  Suggested Amendment

  Change the requirement period for response to a customer to 120  
days.  This timeframe was vigorously negotiated last year  
between the Association of Water Agencies and BKK Corporation,  
the sponsor of SB 2103.

The process of determining the nature of distribution facilities  
needed to provide service, calculating the costs of those  
facilities, determining the scope of potential environmental  
impacts, and obtaining governing board approval for an agreement  
or rate must all be accomplished before a written offer can be  
submitted.

  REGISTERED SUPPORT / OPPOSITION  :   

  Support  

Central Basin Municipal Water District (sponsor)
West Basin Municipal Water District (sponsor)

  Opposition  

Association of California Water Agencies
  
Analysis Prepared by  :    JoEllen McChesney / W., P. & W. / (916)  
319-2096