Bill Proposing Assessment on Water Retailers Set for May 4 Hearing

ACWA-opposed legislation that would impose a volumetric charge on water to finance investments in water resources is set to be heard May 4 in a Senate committee.

SB 34 (Simitian) would establish a California Water Resources Investment Fund and an unspecified number of regional investment accounts to fund public benefits of water-related projects and programs. Annual charges would be imposed on retail water suppliers to establish and maintain the fund, with the charge based on the volume of water provided for non-agricultural purposes in a retailer supplier’s service area. Charges also would be imposed based on each acre of land irrigated for agricultural purposes in a retailer’s service area.

ACWA is opposed to any efforts to create an assessment on water users to pay for infrastructure financing where the concept of beneficiary pays has not been appropriately implemented. ACWA believes the public benefits of projects that would be financed by an investment fund such as that proposed by the bill should be supported by state and federal resources, not by an assessment on water retailers.

SB 34 cleared the Senate Natural Resources and Water Committee on April 12 on a 5-3 vote. It will be heard May 4 in the Senate Governance and Finance Committee.

A separate bill aimed at establishing a new model for water resources investment and planning is set to be heard May 2 in the Senate Appropriations Committee.

SB 571 (Wolk) also would make a number of changes to the California Water Commission, including establishing it as a separate agency outside of the Department of Water Resources and assigning it new responsibilities for identifying state and regional priorities for funding.

ACWA has a not favor position on the bill. The Senate Natural Resources and Water Committee approved the bill on a 5-3 vote on April 12.