SECTIONS 13575-13583 - California Statutes

WATER CODE

SECTION 13575-13583

13575. (a) This chapter shall be known and may be cited as the
Water Recycling Act of 1991.
(b) As used in this chapter, the following terms have the
following meanings:
(1) "Customer" means a person or entity that purchases water from
a retail water supplier.
(2) "Entity responsible for groundwater replenishment" means any
person or entity authorized by statute or court order to manage a
groundwater basin and acquire water for groundwater replenishment.
(3) "Recycled water" has the same meaning as defined in
subdivision (n) of Section 13050.
(4) "Recycled water producer" means any local public entity that
produces recycled water.
(5) "Recycled water wholesaler" means any local public entity that
distributes recycled water to retail water suppliers and which has
constructed, or is constructing, a recycled water distribution
system.
(6) "Retail water supplier" means any local entity, including a
public agency, city, county, or private water company, that provides
retail water service.
(7) "Retailer" means the retail water supplier in whose service
area is located the property to which a customer requests the
delivery of recycled water service.

13576. The Legislature hereby makes the following findings and
declarations:
(a) The State of California is subject to periodic drought
conditions.
(b) The development of traditional water resources in California
has not kept pace with the state's population, which is growing at
the rate of over 700,000 per year and which is anticipated to reach
36,000,000 by the year 2010.
(c) There is a need for a reliable source of water for uses not
related to the supply of potable water to protect investments in
agriculture, greenbelts, and recreation and to replenish groundwater
basins, and protect and enhance fisheries, wildlife habitat, and
riparian areas.
(d) The environmental benefits of recycled water include a reduced
demand for water in the Sacramento-San Joaquin Delta that is
otherwise needed to maintain water quality, reduced discharge of
waste into the ocean, and the enhancement of groundwater basins,
recreation, fisheries, and wetlands.
(e) The use of recycled water has proven to be safe from a public
health standpoint, and the State Department of Public Health is
updating regulations for the use of recycled water.
(f) The use of recycled water is a cost-effective, reliable method
of helping to meet California's water supply needs.
(g) The development of the infrastructure to distribute recycled
water will provide jobs and enhance the economy of the state.
(h) Retail water suppliers and recycled water producers and
wholesalers should promote the substitution of recycled water for
potable water and imported water in order to maximize the appropriate
cost-effective use of recycled water in California.
(i) Recycled water producers, retail water suppliers, and entities
responsible for groundwater replenishment should cooperate in joint
technical, economic, and environmental studies, as appropriate, to
determine the feasibility of providing recycled water service.
(j) Retail water suppliers and recycled water producers and
wholesalers should be encouraged to enter into contracts to
facilitate the service of recycled and potable water by the retail
water suppliers in their service areas in the most efficient and
cost-effective manner.
(k) Recycled water producers and wholesalers and entities
responsible for groundwater replenishment should be encouraged to
enter into contracts to facilitate the use of recycled water for
groundwater replenishment if recycled water is available and the
authorities having jurisdiction approve its use.
(l) Wholesale prices set by recycled water producers and recycled
water wholesalers, and rates that retail water suppliers are
authorized to charge for recycled water, should reflect an equitable
sharing of the costs and benefits associated with the development and
use of recycled water.

13577. This chapter establishes a statewide goal to recycle a total
of 700,000 acre-feet of water per year by the year 2000 and
1,000,000 acre-feet of water per year by the year 2010.

13578. (a) In order to achieve the statewide goal for recycled
water use established in Section 13577 and to implement the Governor'
s Advisory Drought Planning Panel Critical Water Shortage Contingency
Plan recommendations, Section F2, as submitted December 29, 2000,
the department shall identify and report to the Legislature on
opportunities for increasing the use of recycled water, as defined in
paragraph (3) of subdivision (b) of Section 13575, and identify
constraints and impediments, including the level of state financial
assistance available for project construction, to increasing the use
of recycled water.
(b) The department shall convene a task force, to be known as the
2002 Recycled Water Task Force, to advise the department in
implementation of subdivision (a), including making recommendations
to the Legislature regarding the following:
(1) How to further the use of recycled water in industrial and
commercial applications, including, but not limited to, those
applications set forth in Section 13552.8. The task force shall
evaluate the current regulatory framework of state and local rules,
regulations, ordinances, and permits to identify the obstacles and
disincentives to industrial and commercial reuse. Issues to be
investigated include, but are not limited to, applicability of visual
inspections instead of pressure tests for cross-connections between
potable and nonpotable water systems, dual piping trenching
restrictions, fire suppression system design, and backflow
protections.
(2) Changes in the Uniform Plumbing Code, published by the
International Association of Plumbing and Mechanical Officials, that
are appropriate to facilitate the use of recycled water in industrial
and commercial settings. The department shall make recommendations
to the California Building Standards Commission with regard to
suggested revisions to the California Plumbing Code necessary to
incorporate the changes identified by the task force.
(3) Changes in state statutes or the current regulatory framework
of state and local rules, regulations, ordinances, and permits
appropriate to increase the use of recycled water for commercial
laundries and toilet and urinal flushing in structures including, but
not limited to, those defined in subdivision (c) of Section 13553.
The department shall identify financial incentives to help offset the
cost of retrofitting privately and publicly owned structures.
(4) The need to reconvene the California Potable Reuse Committee
established by the department in 1993 or convene a successor
committee to update the committee's finding that planned indirect
potable reuse of recycled water by augmentation of surface water
supplies would not adversely affect drinking water quality if certain
conditions were met.
(5) The need to augment state water supplies using water use
efficiency strategies identified in the CALFED Bay-Delta Program. In
its report pursuant to subdivision (a), the department shall identify
ways to coordinate with CALFED to assist local communities in
educating the public with regard to the statewide water supply
benefits of local recycling projects and the level of public health
protection ensured by compliance with the uniform statewide water
recycling criteria developed by the State Department of Public Health
in accordance with Section 13521.
(6) Impediments or constraints, other than water rights, related
to increasing the use of recycled water in applications for
agricultural, environmental, or irrigation uses, as determined by the
department.
(c) (1) The task force shall be convened by the department and be
comprised of one representative from each of the following state
agencies:
(A) The department.
(B) The State Department of Public Health.
(C) The state board.
(D) The California Environmental Protection Agency.
(E) The CALFED Bay-Delta Program.
(F) The Department of Food and Agriculture.
(G) The California Building Standards Commission.
(H) The University of California.
(I) The Natural Resources Agency.
(2) The task force shall also include one representative from a
recognized environmental advocacy group and one representative from a
consumer advocacy group, as determined by the department, and one
representative of local agency health officers, one representative of
urban water wholesalers, one representative from a groundwater
management entity, one representative of water districts, one
representative from a nonprofit association of public and private
members created to further the use of recycled water, one
representative of commercial real estate, one representative of land
development, one representative of industrial interests, and at least
two representatives from each of the following as defined in Section
13575:
(A) Recycled water producer.
(B) Recycled water wholesaler.
(C) Retail water supplier.
(d) The department and the task force shall report to the
Legislature not later than July 1, 2003.
(e) The department shall carry out the duties of this section only
to the extent that funds pursuant to Section 79145, enacted as part
of the Safe Drinking Water, Clean Water, Watershed Protection, and
Flood Protection Act (Division 26 (commencing with Section 79000)),
are made available for the purposes of this section.

13579. (a) In order to achieve the goals established in Section
13577, retail water suppliers shall identify potential uses for
recycled water within their service areas, potential customers for
recycled water service within their service areas, and, within a
reasonable time, potential sources of recycled water.
(b) Recycled water producers and recycled water wholesalers may
also identify potential uses for recycled water, and may assist
retail water suppliers in identifying potential customers for
recycled water service within the service areas of those retail water
suppliers.
(c) Recycled water producers, retail water suppliers, and entities
responsible for groundwater replenishment may cooperate in joint
technical, economic, and environmental studies, as appropriate, to
determine the feasibility of providing recycled water service and
recycled water for groundwater replenishment consistent with the
criteria set forth in paragraphs (1) to (3), inclusive, of
subdivision (a) of Section 13550 and in accordance with Section 60320
of Title 22 of the California Code of Regulations.

13580. (a) A retail water supplier that has identified a potential
use or customer pursuant to Section 13579 may apply to a recycled
water producer or recycled water wholesaler for a recycled water
supply.
(b) A recycled water producer or recycled water wholesaler that
has identified a potential use or customer pursuant to Section 13579
may, in writing, request a retail water supplier to enter into an
agreement to provide recycled water to the potential customer.
(c) A customer may request, in writing, a retailer to enter into
an agreement to provide recycled water to the customer.
(d) (1) An entity responsible for groundwater replenishment that
is a customer of a retail water supplier and that has identified the
potential use of recycled water for groundwater replenishment
purposes may, in writing, request that retail water supplier to enter
into an agreement to provide recycled water for that purpose. That
entity may not obtain recycled water for that purpose from a recycled
water producer, a recycled water wholesaler, or another retail water
supplier without the agreement of the entity's retail water
supplier.
(2) An entity responsible for groundwater replenishment that is
not a customer of a retail water supplier and that has identified the
potential use of recycled water for groundwater replenishment
purposes may, in writing, request a retail water supplier, a recycled
water producer, or a recycled water wholesaler to enter into an
agreement to provide recycled water for that purpose.

13580.5. (a) (1) Subject to subdivision (e) of Section 13580.7, a
retail water supplier that receives a request from a customer
pursuant to subdivision (c) of Section 13580 shall enter into an
agreement to provide recycled water, if recycled water is available,
or can be made available, to the retail water supplier for sale to
the customer.
(2) Notwithstanding paragraph (1), in accordance with a written
agreement between a recycled water producer or a recycled water
wholesaler and a retail water supplier, the retail water supplier may
delegate to a recycled water producer or a recycled water wholesaler
its responsibility under this section to provide recycled water.
(b) A customer may not obtain recycled water from a recycled water
producer, a recycled water wholesaler, or a retail water supplier
that is not the retailer without the agreement of the retailer.
(c) If either a recycled water producer or a recycled water
wholesaler provides a customer of a retail water supplier with a
written statement that it can and will provide recycled water to the
retailer, the retail water supplier shall, not later than 120 days
from the date on which the retail water supplier receives the written
statement from the customer, by certified mail, return receipt
requested, submit a written offer to the customer. A determination of
availability pursuant to Section 13550 is not required.
(d) If the state board pursuant to Section 13550 makes a
determination that there is available recycled water to serve a
customer of a retail water supplier, the retail water supplier, not
later than 120 days from the date on which the retail water supplier
receives a copy of that determination from the customer, by certified
mail, return receipt requested, shall submit a written offer to the
customer.

13580.7. (a) This section applies only to a retail water supplier
that is a public agency.
(b) A customer may request, in writing, a retail water supplier to
enter into an agreement or adopt recycled water rates in order to
provide recycled water service to the customer. The retail water
supplier, by certified mail return receipt requested, shall submit a
written offer to the customer not later than 120 days from the date
on which the retail water supplier receives the written request from
the customer.
(c) If no rate is in effect for recycled water service within the
service area of a retail water supplier, the rate and conditions for
recycled water service shall be established by contract between the
retail water supplier and the customer, not later than 120 days from
the date on which the customer requests a contract, or, by resolution
or ordinance by the retail water supplier, not later than 120 days
from the date on which the retail water supplier receives the
customer's written request for an ordinance or resolution.
(d) A rate for recycled water service established by contract,
ordinance, or resolution, shall reflect a reasonable relationship
between the amount of the rate and the retail cost of obtaining or
producing the recycled water, the cost of conveying the recycled
water, and overhead expenses for providing recycled water service.
Capital costs of facilities required to serve the customer shall be
amortized over the economic life of the facility, or the length of
time the customer agrees to purchase recycled water, whichever is
less. The rate shall not exceed the estimated reasonable cost of
providing the service, and any additional costs agreed to by the
customer for recycled water supplemental treatment.
(e) The rate for recycled water shall be comparable to, or less
than, the retail water supplier's rate for potable water. If recycled
water service cannot be provided at a rate comparable to, or less
than, the rate for potable water, the retail water supplier is not
required to provide the recycled water service, unless the customer
agrees to pay a rate that reimburses the retail water supplier for
the costs described in subdivision (c).
(f) The offer required by subdivisions (c) and (d) of Section
13580.5 shall identify all of the following:
(1) The source for the recycled water.
(2) The method of conveying the recycled water.
(3) A schedule for delivery of the recycled water.
(4) The terms of service.
(5) The rate for the recycled water, including the per-unit cost
for that water.
(6) The costs necessary to provide service and the basis for
determining those costs.
(g) This section does not apply to recycled water service rates
established before January 1, 1999, or any amendments to those rates.

13580.8. (a) This section applies only to a retail water supplier
that is regulated by the Public Utilities Commission.
(b) Rates for recycled water that is provided to the customer by a
retail water supplier regulated by the Public Utilities Commission
shall be established by the commission pursuant to Section 455.1 of
the Public Utilities Code. A regulated water utility may request the
commission to establish the rate or rates for the delivery of
recycled or nonpotable water, with the objective of providing, where
practicable, a reasonable economic incentive for the customer to
purchase recycled or nonpotable water in place of potable water.
(c) A regulated water utility may propose a rate or rates for
recycled or nonpotable water by tariff or by contract between the
retail water supplier and the customer. Where the rate or rates are
set by contract, the water utility and its customer shall meet,
confer, and negotiate in good faith to establish a contract rate.
(d) The commission shall, as appropriate, provide a discount from
the general metered rate of the water utility for potable water by
either of the following means:
(1) Passing through to the customer the net reduction in cost to
the water utility in purchasing and delivering recycled or nonpotable
water as compared to the cost of purchasing and delivering potable
water.
(2) Granting to the customer a uniform discount from the water
utility's general metered potable water rate when the discount in
paragraph (1) is determined to be an insufficient incentive for the
customer to convert to the use of recycled or nonpotable water. If
the commission provides for a discount pursuant to this paragraph
that is greater than the water utility's reduction in cost, the
commission shall authorize the water utility to include the aggregate
amount of that discount in its revenue requirements to be applied
to, and recovered in, rates that are applicable to all general
metered customers.

13580.9. (a) Notwithstanding any other law, and except as otherwise
previously provided for in a contract agreed to by the customer and
the City of West Covina, if the purchaser, contractor, or lessee of,
or successor to, all or a portion of the water utility owned by the
City of West Covina is a retail water supplier that is regulated by
the Public Utilities Commission, rates for recycled or nonpotable
water service to a closed hazardous waste and solid waste facility
located within the boundaries of the City of West Covina for the
purposes of irrigation, recreation, or dust suppression or any other
use at that facility shall be established in accordance with
subdivisions (a) to (e), inclusive, of Section 13580.7, and if there
is a failure to agree on the terms and conditions of a recycled or
nonpotable water supply agreement for the delivery of water for those
purposes by that purchaser, contractor, lessee, or successor,
Section 13581 shall apply.
(b) For the purpose of this section, nonpotable water that is not
the result of the treatment of waste shall be treated as the
equivalent of recycled water if it is suitable for a direct
beneficial use or a controlled use that would not otherwise occur and
is therefor considered a valuable resource, if the use of that water
will not adversely affect downstream water rights, degrade water
quality, or be injurious to plant life, fish, or wildlife, as
provided by statute or by regulations of the State Department of
Public Health and the state board or a regional board, as
appropriate.

13581. (a) If there is a failure to agree on terms and conditions
of a recycled water supply agreement involving a retail water
supplier that is a public agency within 180 days from the date of the
receipt of a request for recycled water pursuant to subdivision (c)
of Section 13580, a written statement pursuant to subdivision (c) of
Section 13580.5, or a determination of availability pursuant to
subdivision (d) of Section 13580.5, any party may request a formal
mediation process. The parties shall commence mediation within 60
days after the mediation request is made. If the parties cannot agree
on a mediator, the director shall appoint a mediator. The mediator
may recommend to the parties appropriate terms and conditions
applicable to the service of recycled water. The cost for the
services of the mediator shall be divided equally among the parties
to the mediation and shall not exceed twenty thousand dollars
($20,000).
(b) If the parties in mediation reach agreement, both parties
together shall draft the contract for the recycled water service. The
parties shall sign the contract within 30 days.
(c) If the parties in mediation fail to reach agreement, the
affected retail water supplier shall, within 30 days, by resolution
or ordinance, adopt a rate for recycled water service. The agency
action shall be subject to validating proceedings pursuant to Chapter
9 (commencing with Section 860) of Part 2 of Title 10 of the Code of
Civil Procedure, except that there shall not be a presumption in
favor of the retail water supplier under the action taken to set the
rate for recycled water service. The mediator shall file a report
with the superior court setting forth the recommendations provided to
the parties regarding appropriate terms and conditions applicable to
the service of recycled water. Each party shall bear its own costs
and attorney's fees.

13581.2. If the retail water supplier is regulated by the Public
Utilities Commission, and there is a failure to agree on terms and
conditions of a recycle water supply agreement with a customer within
180 days from the date of the receipt of a request for recycled
water pursuant to subdivision (c) of Section 13580, a written
statement pursuant to subdivision (c) of Section 13580.5, or a
determination of availability pursuant to subdivision (d) of Section
13580.5, the matter shall be submitted to the Public Utilities
Commission for resolution, and the commission shall determine a
contract rate or rates for recycled water as provided in Section
13580.8.

13582. This chapter is not intended to alter either of the
following:
(a) Any rights, remedies, or obligations which may exist pursuant
to Article 1.5 (commencing with Section 1210) of Chapter 1 of Part 2
of Division 2 of this code or Chapter 8.5 (commencing with Section
1501) of Part 1 of Division 1 of the Public Utilities Code.
(b) Any rates established or contracts entered into prior to
January 1, 1999.

13583. (a) If a retail water supplier that is a public agency does
not comply with this chapter, the customer may petition a court for a
writ of mandate pursuant to Chapter 2 (commencing with Section 1084)
of Title 1 of Part 3 of the Code of Civil Procedure.
(b) If a retail water supplier is regulated by the Public
Utilities Commission and does not comply with this chapter, the
Public Utilities Commission may order the retailer to comply with
this chapter after receiving a petition from the customer specifying
the provisions of this chapter with which the retailer has failed to
comply.