BILL NUMBER: SB 1973 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 1, 2000
AMENDED IN SENATE APRIL 13, 2000
INTRODUCED BY Senator Perata
FEBRUARY 25, 2000
An act to add Chapter 8.3 (commencing with Section 1450) to Part 1
of Division 1 of the Public Utilities Code, and to add Section
1811.5 to the Water Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 1973, as amended, Perata. Public Utilities Commission: water
conveyance: fair compensation.
Existing law prohibits the state or a regional or local public
agency from denying a bona fide transferor of water, as defined, from
using a water conveyance facility that has unused capacity for the
period of time for which that capacity is available, if fair
compensation is paid for that use and other requirements are met.
Existing law defines "fair compensation" to mean the reasonable
charges incurred by the owner of the conveyance system, as specified.
This bill would authorize any bona fide transferor to file a
petition with the Public Utilities Commission for a
determination of the fair compensation that a state, regional, or
local public agency that owns a water conveyance facility may charge
for the bona fide transferor's proposed use of unused capacity in the
facility. The bill would give the commission exclusive authority to
determine the fair compensation applicable to the proposed use of
unused capacity, as prescribed an adjudication of
whether the determination of the amount of fair compensation, as
defined, made by a state, regional, or local public agency for the
proposed use of unused capacity in a water conveyance facility is
consistent with a specified definition and guidelines. The bill would
require the commission to remand the case to the state, regional, or
local public agency, unless the commission determines that the
public interest would be impaired by a delay. In that case, the
commission would determine the amount of fair compensation, as
prescribed .
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 8.3 (commencing with Section 1450) is added to
Part 1 of Division 1 of the Public Utilities Code, to read:
CHAPTER 8.3. DETERMINATION OF FAIR COMPENSATION FOR JOINT USE
OF CAPACITY IN WATER CONVEYANCE FACILITIES
1450. The Legislature finds and declares all of the following:
(a) In 1986, the Legislature enacted Article 4 (commencing with
Section 1810) of Chapter 10.5 of Part 2 of Division 2 of the Water
Code, commonly referred to as the wheeling statutes, declaring at
that time that it was the policy of the state to facilitate the
voluntary sale, lease, and exchange of water and to allow open access
to water conveyance facilities where there is unused capacity, if
fair compensation is paid.
(b) The purpose of a voluntary water market is to create greater
efficiencies and meet increasing demands for additional water
supplies while creating relatively equal opportunities for all market
participants.
(c) A functioning wholesale water market, which necessarily
includes the assurance of reasonable wheeling charges for unused
capacity, should provide voluntary sellers of water with the
opportunity to sell to more than one buyer, and should provide
voluntary buyers of water with the opportunity to buy from more than
one seller. By contrast, without the assurance of reasonable
wheeling charges, competition among voluntary buyers and sellers of
water will be reduced or eliminated. In addition, wholesale water
customers should benefit from the assurance of reasonable wheeling
charges because it should facilitate cost-effective options for
locating additional water supplies.
(d) It is the intent of the Legislature, that upon the filing of a
petition by a bona fide transferor, the commission have the
exclusive authority to determine the amount of fair compensation that
a state, regional, or local public agency that owns a water
conveyance facility may charge for the transferor's use of unused
capacity in the facility.
1451. (a) As used in this section, the terms "bona fide
transferor," "fair compensation," and "unused capacity" have the same
meanings as defined in Section 1811 of the Water Code.
(b) Notwithstanding Section 1812 of the Water Code, any bona fide
transferor may file a petition with the commission for a
determination of the amount of fair compensation that a state,
regional, or local public agency that owns a water conveyance
facility may charge for a bona fide transferor's proposed use of
unused capacity in the facility.
(c) The commission, upon the filing of a petition pursuant to
subdivision (b), shall have the exclusive authority to determine and
set the amount of fair compensation applicable to the proposed use of
unused capacity.
(d) The commission shall cause a copy of the petition to be served
upon the affected public water conveyance facility owner.
(e) The commission shall immediately commence hearing proceedings
in accordance with Chapter 9 (commencing with Section 1701).
(b) (1) Any bona fide transferor may file a complaint with the
commission concerning the determination of the amount of fair
compensation for the proposed use of unused capacity in a water
conveyance facility that a state, regional, or local public agency
establishes pursuant to Section 1812 of the Water Code.
(2) The commission may adjudicate complaints filed pursuant to
paragraph (1) as soon as the commission establishes and publishes the
guidelines on the meaning of "fair compensation" required by Section
1452.
(c) (1) The commission, upon the filing of a complaint pursuant to
subdivision (b), has the exclusive authority to adjudicate whether
the determination of the amount of fair compensation is consistent
with the definition of "fair compensation" as interpreted by the
guidelines established pursuant to Section 1452. If the commission
finds that the amount of fair compensation is not consistent with the
definition of "fair compensation" as interpreted by the guidelines
established pursuant to Section 1452, the commission shall remand the
case back to the state, regional, or local public agency for a
redetermination of the amount of fair compensation.
(2) If the commission finds that remanding the case pursuant to
paragraph (1) would cause a delay that would impair the public
interest, the commission may determine the amount of fair
compensation based on the evidence in the complaint record.
1452. The commission shall open a proceeding to establish
guidelines on the meaning of "fair compensation" as defined in
Section 1811 of the Water Code. This proceeding shall be opened on
or before January 31, 2001, and shall be completed on or before
December 31, 2001.
SEC. 2. Section 1811.5 is added to the Water Code, to read:
1811.5. (a) Pursuant to Section 1452 of the Public Utilities
Code, on or before December 31, 2001, the Public Utilities Commission
shall establish guidelines on the meaning of "fair compensation" as
defined in Section 1811.
(b) Any complaint as to a determination by a state, regional, or
local public agency with regard to fair compensation is subject to
Chapter 8.3 (commencing with Section 1450) of Part 1 of Division 1 of
the Public Utilities.