Water Utilities Update - Low-Income Oversight Board Summary
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Low-Income Oversight Board
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Low-Income OIR Workshop
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School Lead Testing
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Conservation
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Proposed Legislation
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Acquisitions
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Human Right to Water Report
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R.17-06-024
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Workshop held on May 2
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“Water Rate Design for a Basic Amount of Water at a Low Quantity Rate”
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Determining and establishing basic quantity
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Affordable = no tradeoffs of basic needs
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Adjustments to rate design
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Marginal-Cost Pricing
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Shift more revenues to fixed charges
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Account for conservation
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Consider multi-family
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Assembly Bill 746
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Statewide (as of Mar 2019)
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13,500 schools
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8,423 tested/exempted (62%)
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243 over limit (1.8%)
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21.3% savings since Jun’15
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246 billion gallons total
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18.4% savings since Jun’15
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1.5 trillion gallons total
2013 Baseline
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Excludes low-income customers
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Fees on animal farmers, dairies and fertilizer producers
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Two thirds vote required by July 1
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Rejected by state Senate; pending in state Assembly
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Alternate proposals
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SB 200 (Monning)
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Appropriate $150 million annually from General Fund
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SB 669 (Caballero)
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Appropriate from General Fund during state budget surplus year
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AB 217 (Garcia)
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Fee of $0.50 per connection per month
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Benefits of Consolidation
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Economies of Scope and Scale
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Majority of troubled water systems serve less than 500 people
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Technical, Managerial, and Financial (TMF) Capability
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Unaffordable for disadvantaged communities
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Streamline Operations
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Maintenance and infrastructure costs are rising
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Access to Low-Income Programs
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Statewide Policies
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SB 88 (2015): consolidation authority to SWRCB
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SB 552 (2016): TMF help for failing water systems
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SB 1263 (2016): prohibits creation of new small water systems
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2 so far in 2019:
Rio Plaza by Cal-Am & Mesa-Crest by Park (Liberty)
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Also 1 acquisition of municipal (Rolling Hills)
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1 new water IOU created in 2016 (Sierra Park)
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3 IOUs:
Fruitridge Vista by Cal-Am, Hillview by Cal-Am, & Hat Creek by Del Oro
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2 Municipals:
Perris by Park (Liberty) & Bellflower by Cal-Am
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Office of Environmental Health Hazard Assessment
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Develop framework for evaluating water quality, accessibility, and
affordability
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Draft report released on Jan 3
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Water Utilities Update Low-Income Oversight Board on June 24, 2019 discussed topics such as low-income OIR workshop, school lead testing, conservation, proposed legislation, acquisitions, and human right to water. The workshop focused on water rate design for a basic amount of water at a low quantity rate, adjustments to rate design, marginal-cost pricing, and more. The presentation also highlighted school lead testing data, water conservation and production reports, proposed funding for safe and affordable water, and acquisitions of smaller water systems for the benefit of disadvantaged communities.
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Presentation Transcript
Water Utilities Update Low-Income Oversight Board Water Division June 24, 2019
2 Topics Low-Income OIR Workshop School Lead Testing Conservation Proposed Legislation Acquisitions Human Right to Water Report
3 Water Low-Income OIR R.17-06-024 Workshop held on May 2nd Water Rate Design for a Basic Amount of Water at a Low Quantity Rate Determining and establishing basic quantity Affordable = no tradeoffs of basic needs Adjustments to rate design Marginal-Cost Pricing Shift more revenues to fixed charges Account for conservation Consider multi-family
4 School Lead Testing Assembly Bill 746 92% 1,323 Schools Tested 492 exempted IOUs serve 1,963 Schools 19 over limit (1.0%) - Corrective actions taken Statewide (as of Mar 2019) 13,500 schools 8,423 tested/exempted (62%) 243 over limit (1.8%) Deadline July 1, 2019
Water Conservation & Production Reports 40 2015 2016 2017 2018 2019 Water Production (billion gallons) 35 30 25 20 15 10 2013 Baseline 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IOUs Statewide 21.3% savings since Jun 15 246 billion gallons total 18.4% savings since Jun 15 1.5 trillion gallons total
6 Proposed Funding for Safe and Affordable Water Gov. Gavin Newsom Budget Trailer Bill $140 million per year Water tax on water bills $0.95 to $10 per month based on meter size Excludes low-income customers Fees on animal farmers, dairies and fertilizer producers Two thirds vote required by July 1st Rejected by state Senate; pending in state Assembly Alternate proposals SB 200 (Monning) Appropriate $150 million annually from General Fund SB 669 (Caballero) Appropriate from General Fund during state budget surplus year AB 217 (Garcia) Fee of $0.50 per connection per month
7 Acquisitions of Smaller Water Systems Benefits of Consolidation Economies of Scope and Scale Majority of troubled water systems serve less than 500 people Technical, Managerial, and Financial (TMF) Capability Unaffordable for disadvantaged communities Streamline Operations Maintenance and infrastructure costs are rising Access to Low-Income Programs Statewide Policies SB 88 (2015): consolidation authority to SWRCB SB 552 (2016): TMF help for failing water systems SB 1263 (2016): prohibits creation of new small water systems CPUC continues active consolidation
8 Acquisitions of Water IOUs 134 140 Class A: 9 Class B: 5 Class C: 20 Class D: 62 130 Water IOUs 120 110 96 100 90 80 End of 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Current 39 acquisitions of water IOUs since 2007 2 so far in 2019: Rio Plaza by Cal-Am & Mesa-Crest by Park (Liberty) Also 1 acquisition of municipal (Rolling Hills) 1 new water IOU created in 2016 (Sierra Park) 5 pending acquisitions 3 IOUs: Fruitridge Vista by Cal-Am, Hillview by Cal-Am, & Hat Creek by Del Oro 2 Municipals: Perris by Park (Liberty) & Bellflower by Cal-Am
9 Human Right to Water Report Office of Environmental Health Hazard Assessment Develop framework for evaluating water quality, accessibility, and affordability Meet the goals of AB 685 (2012) Draft report released on Jan 3rd
