City of Sacramento
Law and Legislation Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01681 9/17/2024 Consent Item 3.
Legislative Advocacy Correspondence
File ID: 2023-01681
Location: Citywide
Recommendation: Receive and file.
Contact: Consuelo Hernandez, Director of Governmental Affairs, (916) 808-7395, [email protected], Office of the City Manager Presenter: None
Attachments:
1-Legislative Advocacy Correspondence
Date Bill/Subject Author Description of Issue Position Notes/Status 8/21/24 AB 2457 McCarty Sacramento Municipal Utility District: nonstock security Request for Governor's
signature Coalition letter
8/2/24 AB 2257 Wilson
Local government: property-related water and sewer fees and assessments: remedies Support Floor alert
8/2/24 AB 1827 Papan Low-Water User Protection Act Support Floor alert 7/31/24 AB 2988 McCarty Sacramento County Courthouse Support 6/28/24 SB 1218 Newman Emergency Water Supplies Support Coaltion letter 6/19/24 Climate Bond Support Coalition letter
6/18/24 AB 2988 McCarty Sacramento County Courthouse Support 6/4/24 AB 2257 Wilson
Local government: property-related water and sewer fees and assessments: remedies Support Coalition letter
5/28/24 SB 867/AB 1567 Allen/Barcia Climate Resilience Bond Support if Amended Coaltion letter 5/3/24 Huffman Water Conservation Rebate Tax Parity Act Support 4/15/24 AB 2200 Kalra California Guaranteed Health Care for All Act (CalCare) Support 4/9/24 SB 1218 Newman Emergency Water Supplies Support Coaliton letter Position Letters 2023-2024
4/4/24 REAP 2.0 REAP 2.0 Funding
Request to the Legislature to reject a
proposed $300 million cut
4/1/24 SB 1139 Ashby SAFCA Urban Flood Protection Deadline Extension Support 3/28/24 AB 2236 Bauer-Kahan Eliminating Plastic Bags Support 3/28/24 SB 1110 Ashby Reasonable Enforcement of Water Use Efficiency Support 2/2/24 LIWHAP Padilla LIWHAP Establishment Act Support
9/25/23 SB 51 Bradford Cannabis Provisional Licenses: Local Equity Applicants Request for Governor's
signature Signed by the Governor
9/25/23 SB 669 Cortese Veterinarians
Request for Governor's
signature Signed by the Governor
9/22/23 AB 28 Gabriel Firearms and Ammunition: Excise Tax Request for Governor's
signature Signed by the Governor
9/22/23 AB 40 Rodriguez Emergency Medical Services
Request for Governor's
signature Signed by the Governor
9/22/23 AB 316 Aguiar-Curry Autonomous Vehicles
Request for Governor's
signature Vetoed by the Governor
9/22/23 AB 350 Aguiar-Curry Regional Transportation Plans: SACOG Request for Governor's
signature Signed by the Governor
9/22/23 AB 645 Friedman Vehicles: Speed Safety Pilot Program Request for Governor's
signature Signed by the Governor
9/22/23 AB 1052 McCarty Sacramento Regional Transit District's Ballot Authority Request for Governor's
signature Signed by the Governor
9/22/23 AB 1078 Jackson Instructional Materials and Curriculum: Diversity Request for Governor's
signature Signed by the Governor
9/22/23 ACA 13 Ward Voting Thresholds
Request for Governor's
signature Signed by the Governor
9/22/23 SB 659 Ashby California Water Supply Solutions Act of 2023 Request for Governor's
signature Signed by the Governor
8/28/23 AB 316 Aguiar-Curry Autonomous Vehicles Support Vetoed by the Governor 8/28/23 ACA 13 Ward Voting Thresholds Support Signed by the Governor 7/11/23 AB 223 Ward Confidential Proceedings Support Signed by the Governor 7/11/23 AB 783 Ting Single-Use Restrooms Support Signed by the Governor 7/11/23 AB 957 Wilson Family Law and Gender Identity Support Vetoed by the Governor 7/11/23 AB 994 Jackson Law Enforcement: Social Media Support Signed by the Governor 7/11/23 AB 1078 Jackson Instructional Materials and Curriculum: Diversity Support Signed by the Governor 7/11/23 SB 372 Menjivar DCA Licensee and Registration Records Support Signed by the Governor 7/11/23 SB 760 Muratsuchi School Facilities: All Gender Restrooms Support Signed by the Governor 7/10/23 AB 1052 McCarty Sacramento Regional Transit District's Ballot Authority Support Signed by the Governor 7/7/23 AB 645 Friedman Vehicles: Speed Safety Pilot Program Support Signed by the Governor 6/23/23 AB 40 Rodriguez Emergency Medical Services Support Signed by the Governor 6/21/23 AB 28 Gabriel Firearms and Ammunition: Excise Tax Support Signed by the Governor 6/9/23 SB 407 Wiener Foster Care: Resource Families Support Signed by the Governor 6/9/23 SB 659 Ashby California Water Supply Solutions Act of 2023 Support Signed by the Governor 6/9/23 SB 511 Blakespear Greenhouse Gas Emissions Inventories Support Held in Assembly Appropriations
Committee
6/9/23 AB 350 Aguiar-Curry Regional Transportation Plans: SACOG Support Signed by the Governor 5/23/23 Regulation Change re the Striped Bass Slot Limit Coalition letter to California Fish and
Game Commission
4/11/23 Budget request to fund 30x30 Support
4/11/23 SB 511 Blakespear Greenhouse Gas Emissions Inventories Support Held in Assembly Appropriations
Committee
4/4/23 AB 735 Berman Workforce Development: Utility Careers Support Held in Assembly Appropriations
Committee
3/28/23 AB 285 Luz Rivas Pupil Instruction: Science Requirements: Climate Change Support Signed by the Governor 3/27/23
Budget request to fund the Local Equitable Access to Food (LEAF) Program Support Coalition letter
3/21/23
Budget request for Continued Assistance for Customer Water and Wastewater Arrearages Accrued During the Pandemic Support Coalition letter 3/21/23 AB 333 Nguyen Abandoned Vehicle Service Authorities Licenses and Permits Support In Assembly Transportation
Committee
3/6/23 AB 350 Aguiar-Curry Regional Transportation Plans: SACOG Support Signed by the Governor
***SENATE FLOOR ALERT***
AB 1827 (Papan): Low-Water User Protection Act- Support
We, the above coalition of associations and water suppliers, respectfully request your support and urge your “Yes” vote on AB 1827, which would ensure water suppliers can continue to use meter size and peaking factors to proportionally allocate the costs associated with providing water service among customers.
AB 1827 affirms existing law that allows water suppliers to use these reasonable and well- accepted methods of assessing the incremental costs associated with higher water usage demands to high water users. Because of lawsuits that threaten California water providers’ ability to use these well-accepted methods of cost allocation, this measure is critical to preventing these costs from being passed on to low-water users.
A water supplier must maintain and invest in a water system and water supplies capable of meeting the maximum possible demand on any given day to ensure customers have reliable water service when they turn on their tap. Water customers that use more water than other similarly situated customers increase a water supplier’s overall cost of providing water service
due to the higher costs associated with building, operating, and maintaining a larger water system that can meet those larger water demands.
Water agencies across the state are being sued to challenge the long-standing methods of cost allocation. The lawsuits essentially allege that appropriately charging customers that use more water for the additional cost of that higher use is prohibited by Article XIII D of the California Constitution (i.e. “Proposition 218”). However, Proposition 218’s proportionality requirements allow water suppliers to charge customers with higher water usage to recoup legitimate costs attributable to those higher water users.
In our opinion, these lawsuits are without merit. Our property-related service charges are legitimate under existing law, but in order to avoid lengthy and expensive legal battles with costs that will be passed on to our customers, further clarification of existing law should be affirmed by the Legislature for the understanding of the courts and others.
Proposition 218 placed provisions into the California Constitution that limit local governments’ authority to impose and increase taxes, fees, assessments, and charges. We faithfully abide by the requirements of Proposition 218 and are serious about our responsibility to provide services to our customers in an efficient and cost-effective manner.
While collectively, all customers pay for the costs associated with a community’s water service, AB 1827 reinforces our authority under the law to impose fees or charges for property-related water services that include the incrementally higher costs of water service due to higher water usage demand, maximum potential water use, and projected peak water usage of parcels. AB 1827 does this by amending Proposition 218’s implementing statute to confirm that the long- standing cost allocation methods used by water agencies can be used consistent with Proposition 218.
Our organizations respectfully request your “aye” vote on AB 1827.
***Senate FLOOR ALERT***
AB 2257 (Wilson) – SUPPORT
We, the above coalition of public agencies, associations, environmental and labor groups, respectfully request your support and urge your “Aye” vote on AB 2257, which would improve the financial stability of public water and sewer agencies by enhancing public engagement during the ratemaking process.
Public water and sewer agencies provide essential government services for the benefit of communities, agriculture, industries, and the environment. These agencies are responsible for ensuring a consistent and reliable water supply, safeguarding the quality of drinking water, planning, constructing, and maintaining critical infrastructure, and much more. With climate change presenting unprecedented challenges, these agencies are also making generational investments in water supply infrastructure to mitigate the impacts of increasingly frequent and severe climate-related events.
The revenue necessary for public agencies to fulfill their essential government functions and adapt to a changing climate predominantly comes from service rates and assessments. While these agencies require financial stability to meet ever increasing demands, a rise in Proposition 218 litigation is making it increasingly difficult to ensure agencies can pass fair and reasonable rates to cover the costs of operations and investments.
AB 2257 would improve the ratemaking process by authorizing public agencies to adopt procedures for the submittal and consideration of public comments regarding proposed water and sewer rates and assessments.
PROMOTES INCREASED DIALOGUE AND TRANSPARENCY IN THE RATEMAKING PROCESS Oftentimes, Proposition 218 lawsuits are filed without first having raised concerns with the public agency during the public notice-and-comment process leading up to the decision to adopt rates or assessments. This prevents public agencies from responding to, and endeavoring to resolve, the dispute and avoid litigation.
If an agency elects to adopt the procedures proposed in AB 2257, a person would be required to timely submit a written objection specifying the particular Proposition 218 compliance concern during the ratemaking process, in order to challenge the adopted rates or assessments in court. Public agencies would be required to consider and respond in writing to the objections. This process would help agencies develop more defensible rates and build rapport and trust with their ratepayers.
ALLOWS A PUBLIC AGENCY TO BETTER UNDERSTAND PUBLIC CONCERNS DURING THE RATEMAKING
PROCESS
AB 2257 would create a greater understanding of potential concerns and the agency's responses to those concerns, providing the agency's board the opportunity to abandon its ratemaking/assessment proposal, change it (reduce it), or to better explain why it complies with Proposition 218's substantive limitations. AB 2257 would foster better-informed administrative decisions, which benefit the objector, the public agency, and members of the public within the public agency’s jurisdiction.
PROTECTS BOTH LEGISLATIVE AND ADJUDICATIVE FUNCTIONS
Litigation should not be the option of first resort to resolve disputes, particularly when a public process exists to raise and hear concerns. AB 2257 would enhance this process by allowing the board of directors of a public agency—a legislative body—to hear the evidence, apply its reasoned discretion and expertise, and create a better administrative record to in the event of judicial review.
AMENDMENTS CLARIFY AB 2257 ONLY APPLIES TO LITIGATION RELATED TO PROPOSITION 218 Amendments to AB 2257 have been largely technical in nature. The amendments help clarify the public noticing process, the fees that would be subject to the provisions of the bill, and specify the bill is not intended to preclude lawsuits related to a local agency’s failure to implement a fee or assessment in compliance with existing law.
We urge your “Aye” Vote on AB 2257
Association of California Water Agencies
Alta Irrigation District
Amador Water Agency
Bella Vista Water District
Brooktrails Township Community Services
District
California Alliance For Jobs
California Association of Sanitation Agencies
California Municipal Utilities Association
California Stormwater Quality Association
Calleguas Municipal Water District
Camrosa Water District
City of Sacramento
City of Santa Rosa
Coastside County Water District
Contra Costa Water District
Crescenta Valley Water District
Crestline-Lake Arrowhead Water Agency
Cucamonga Valley Water District
Diablo Water District
Dublin San Ramon Services District
Eastern Municipal Water District
El Toro Water District
Environmental Defense Fund
Fallbrook Public Utility District
Florin Resource Conservation District/Elk Grove
Water District
Georgetown Divide Public Utility District
Helix Water District
Hidden Valley Lake Community Services District
Irvine Ranch Water District
Las Virgenes Municipal Water District
Marin Municipal Water District
McKinleyville Community Services District
McMullin Area Groundwater Sustainability
Agency
Mendocino County Russian River Flood Control
& Water Conservation Improvement District
Mid-Peninsula Water District
Monte Vista Water District
Montecito Water District
Nevada Irrigation District
Olivenhain Municipal Water District
Otay Water District
Padre Dam Municipal Water District
Pajaro Valley Water Management Agency
Placer County Water Agency
Rosedale-Rio Bravo Water Storage District
San Bernardino Valley Water Conservation
District
San Juan Water District
Santa Clarita Valley Water Agency
Santa Fe Irrigation District
South San Joaquin Irrigation District
Stockton East Water District
Sweetwater Authority
Tahoe City Public Utility District
Three Valleys Municipal Water District
Tri-County Water Authority
Tuolumne Utilities District
Union Public Utility District
Vallejo Flood and Wastewater District
Valley Center Municipal Water District
Walnut Valley Water District
Western Municipal Water District
August 21, 2024
The Honorable Gavin Newsom
1021 O Street, Suite 9000
Sacramento, CA 95814
RE: AB 2457 (McCarty) – REQUEST FOR SIGNATURE
Dear Governor Newsom:
We write in support of AB 2457 (McCarty), a bill that will help the Sacramento Municipal Utility District (SMUD) spur innovation to meet our state’s climate change goals by allowing SMUD the option to continue to negotiate non-stock security in companies they work with to develop new products and services. This bill would simply extend the pilot authority granted in 2019 (AB 689) to January 1, 2035.
Provides opportunities for financial benefits to SMUD customers. AB 2457 will provide SMUD the ability to monetize its intellectual property. Given that SMUD will not pay for the nonstock equity and will not spend any money to exercise the nonstock equity, there is no additional risks or losses for SMUD if the company does not commercially succeed. There are only potential economic benefits if the partnering company succeeds. SMUD will continue with these partnerships with or without this authority, as they need the innovative technologies and resources to meet their 2030 goal, as well as the state’s clean energy goals.
Attracts clean energy jobs to the region. Allowing SMUD to participate in these deals helps promote the clean energy economy in California. Developing these new technologies with SMUD encourages these companies to build a presence here. This allows for compounding benefits from these arrangements, including new jobs and investment in the region.
SMUD has been prudent in exercising pilot authority. SMUD exercised this new authority by entering into an agreement with a long duration energy storage provider, and SMUD is currently negotiating an agreement in the medium and heavy duty zero emission vehicle space. SMUD has developed an extensive and public process
for the acquisition review through SMUD’s publicly-
elected board of directors.
For these reasons, we respectfully request your signature on AB 2457.
Paul Lau
CEO & General Manager
Sacramento Municipal Utility District
Derek Dolfie
Director of Energy
California Municipal Utilities Association
Marcus Detwiler
Legislative Representative
California Special Districts Association
Laura Renger
Executive Director
California Electric Transportation Coalition
Cathy Rodriguez Aguirre
President/CEO
Sacramento Hispanic Chamber of Commerce
Angela Perry
President/CEO
Elk Grove Chamber of Commerce
Pat Fong Kushida President & CEO
Sacramento Asian Pacific Chamber of Commerce
California Asian Pacific Chamber of Commerce
Robert Heidt Jr.
President and CEO
Sacramento Metropolitan Chamber of Commerce
Sergey Terebkov
President and CEO
Slavic American Chamber of Commerce
James Corless
Executive Director
Sacramento Area Council of Governments
Merrian Borgeson
Policy Director, California, Climate and Energy
Natural Resources Defense Council
Andy Hernandez
President
North Sacramento Chamber of Commerce
Diann H. Rogers
President & CEO
Rancho Cordova Area Chamber of Commerce
Azizza Davis Goines
President & CEO
Sacramento Black Chamber of Commerce
Alyssa Lozano
President
Natomas Chamber of Commerce
Alberto Ayala
Executive Director and Air Pollution Control Officer
Sacramento Metropolitan Air Quality Management District
Councilmember Katie Valenzuela
Chair, Law and Legislation Committee
City of Sacramento