Public Goods Charge for Water Recommended in New Paper

A paper prepared for the California Public Utilities Commission recommends instituting a public goods charge for water to finance projects to meet the state's targets for both water conservation and greenhouse gas reduction.

The paper by the UC Berkeley Goldman School of Public Policy Policy Analysis Project recommends that the state pass legislation requiring all water providers to assess volumetric surcharges on water bills to raise $680 million per year. The funds would be managed by regional joint power authorities established to implement Integrated Regional Water Management Plans.

A public goods charge is identified in the state’s AB 32 Scoping Plan as a potential tool for meeting California’s greenhouse gas emissions targets.

ACWA is on record opposing a proposed public goods charge. In comments on the AB 32 Scoping Plan submitted to the California Air Resources Board in December 2008, ACWA voices objection to the proposed charge, citing flaws in the suggested mechanism and concerns about using local ratepayer funds for purposes not authorized by the California Water Code and Proposition 218. ACWA also took issue with collecting the charge and then transmitting the funds to the state for distribution, noting that local water agencies are better suited to determine how local dollars should be spent to achieve the goal.