BILL NUMBER: SB 1973 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 31, 2000
AMENDED IN SENATE MAY 9, 2000
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
(1) 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 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 that any determination by the commission regarding
certain facilities involving the Sacramento-San Joaquin Delta and the
San Francisco Bay include a certification, as prescribed. The bill
would provide that a water conveyance facilities owner and a bona
fide transferor are subject to the jurisdiction of the commission, as
specified, would make violations of these provisions a crime, and
would require these entities to provide information to the
commission, as prescribed, thereby imposing a state-mandated local
program. The bill would require the commission to remand the
case to the state, regional, or local public agency for a
redetermination, unless the commission determines that the public
interest would be impaired by a delay. In that case, the commission
would be authorized to determine the amount of fair compensation, as
prescribed.
(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 with regard to certain mandates no
reimbursement is required by this act for a specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
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.
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) (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, except as
authorized by paragraph (2), 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.
(d) (1) For the purposes of this chapter, a water conveyance
facilities owner and a bona fide transferor shall provide the
commission access to its books, records, documents, and reports in
accordance with Sections 312 to 314, inclusive, and Sections 581 to
587, inclusive. A water conveyance facilities owner and a bona fide
transferor shall also be subject to the commission pursuant to
subdivisions (a) and (b) of Section 311.
(2) The commission may enforce the provisions of Chapter 11
(commencing with Section 2100) of Division 1, of Part 1 regarding
violations against a water conveyance facilities owner and a bona
fide transferor, in the same manner as the provisions are enforced
against a public utility.
(3) Notwithstanding paragraphs (1) and (2), this section does not
grant the commission jurisdiction to regulate a water conveyance
facilities owner or a bona fide transferor other than as specifically
set forth in this chapter.
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. The guidelines established by
the commission shall include, but not be limited to, a requirement
that any proposed transferee of water provide proof that it is in
full compliance with the provisions of Chapter 3 (commencing with
Section 10620) of Part 2.6 of Division 6 of the Water Code, relating
to urban water management plans and with the best management
practices for urban water conservation for the state. This
proceeding shall be opened on or before January 31, 2001, and shall
be completed on or before December 31, 2001.
1453. Any determination of the commission involving facilities
that control the inflow into the Sacramento-San Joaquin Delta and the
San Francisco Bay and that divert water from the delta shall include
a certification by the State Water Resources Control Board that the
proposed wheeling will not harm fish or wildlife, will not degrade
delta water quality, and will not reduce water levels so as to
interfere with diversions or navigation in the delta.
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. Utilities Code.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.