Association of California Water Agencies

980 9th Street, Suite 1000
Sacramento, CA 95814
(916) 441-4545
Contact Us

Washington, D.C. Office

400 North Capitol Street NW,
Suite 357
Washington, D.C. 20001

Our Partners

ACWA-Sponsored Bills Advance to Governor’s Desk

ACWA’s two co-sponsored bills have passed the Legislature and are now on the desk of Gov. Gavin Newsom. One bill would benefit water agencies by strengthening penalties for water theft, while the second bill would create a dedicated fund to help cover water agencies’ costs with PFAS treatment.

ACWA and its member agencies’ strong advocacy and coalition building throughout the legislative session helped secure passage of the bills’ passage through both houses of the Legislature. They are among approximately 60 bills on which ACWA staff have advocated in support or opposition on behalf of its members, and that advocacy continues this week as the Legislature approaches the end of its 2025 session on Sept. 12.

Below are more details on the co-sponsored legislation. The governor has until Oct. 12 to sign or veto the bills.

Water Theft

SB 394 (Allen), co-sponsored with Las Virgenes Municipal Water District, would allow local water agencies to adopt an ordinance with enhanced penalties for water theft from a fire hydrant. Additionally, the bill would remove the one-year reset on existing penalties for the third and additional violations for water theft committed via meter tampering and other methods.

It would also help agencies recover damages by authorizing utilities to pursue civil remedies against any person who tampers with or diverts water from a fire hydrant without authorization.

PFAS

SB 454 (McNerney), co-sponsored with the League of California Cities, would create the PFAS Mitigation Fund to help water and wastewater agencies pay for the treatment of drinking water contaminated by PFAS, which are otherwise covered by local ratepayers on their water and wastewater bills.

This bill would help support local efforts to keep our water supply safe from forever chemicals while maintaining water affordability.

Questions

For questions about these bills and ACWA state legislative advocacy, please contact ACWA Director of State Legislative Relations Julia Hall

Now Accepting Legislative Proposals for 2026

ACWA is now accepting legislative proposals from member agencies for the 2026 legislative session. ACWA’s State Legislative Committee will evaluate proposals, provide feedback to the proposing agency and determine whether to take a position.

How to Submit a Proposal

Member agencies that want to submit proposals for consideration must do so by Sept. 19 by taking the following steps:

ACWA staff will contact agencies directly as to the status of the legislative proposal after it is submitted. Agencies may be asked to present their legislative proposals to the State Legislative Committee at its Nov. 7 in-person planning meeting in Sacramento.

Questions

For questions about submitting legislative proposals, contact ACWA State Relations Assistant Karla Cardenas at karlac@acwa.com or (916) 669-2386.

 

Healthy Rivers and Landscapes Funding Restored in State Budget

Gov. Gavin Newsom on June 27 signed a budget bill that restores more than $351 million in funding for the Healthy Rivers and Landscapes (HRL) Program. The bill replaces an earlier budget proposal from the Legislature that would have eliminated the funding that was appropriated in the 2022-’23 and 2023-’24 budgets for the HRL program. The restoration of this funding represents progress toward restoring the health of the Sacramento-San Joaquin Bay-Delta (Bay-Delta).

ACWA is a long-standing supporter of the HRL Program, previously referred to as Voluntary Agreements, as the best approach to protecting, restoring and enhancing the Bay-Delta. ACWA staff, in coordination with other associations and individual ACWA members, urged legislators to preserve the funding. ACWA also issued an Outreach Alert encouraging members to contact their legislators, which had a significant impact toward restoring this funding.

Background

The HRL Program represents a collaborative, modern, and holistic approach to improving the Bay-Delta ecosystem and water supply reliability. The HRL Program is supported by federal, state, and local water leaders to create a comprehensive program of habitat enhancement projects coupled with more water for fish and wildlife, managed in a collaborative, science-based manner.

Learn more about the HRL program’s approach to protecting, restoring, and enhancing California’s Bay-Delta on ACWA’s website or the California Natural Resources Agency’s website.

 

ACWA Advocacy Results in Wins in State Legislature

ACWA advocacy, with help from member agencies and partner associations, has helped secure a number of positive outcomes as bills continue to move through the state Legislature.

ACWA’s State Legislative Committee has taken positions on 52 bills this year, including sponsoring two bills. Of the 19 bills on which ACWA has taken opposing positions, eight of them are either no longer moving or have been sufficiently amended to either remove opposition or significantly reduce our concerns.

Below are updates on a few of the highest priority bills. ACWA staff continue to advocate on several bills on behalf of members.

AB 1146

ACWA has been coordinating with coalition leader California Chamber of Commerce in opposition of AB 1146 (Papan), which would prohibit the release of stored water from a reservoir if the release is done under false pretenses.

The bill also would have originally authorized the State Water Resources Control Board – absent a hearing or due process – to determine whether an operator violated the law and require the operator to immediately comply with its order under a new “interim relief” authority.

Coalition advocacy successfully eliminated this provision and other amendments that resulted in most coalition members removing their opposition to the bill. The bill passed the Assembly and is now in the Senate.

SB 350

ACWA led an oppose-unless-amended coalition against SB 350 (Durazo), which would have required the State Water Board to create a water rate assistance program to provide financial assistance for both drinking water and wastewater services to low-income residential ratepayers.

ACWA’s coalition advocated for amendments to ensure any low-income rate assistance (LIRA) program is workable and efficient. Many of the amendments were accepted, but the bill was held in the Assembly Appropriations Committee and is not expected to advance.

SB 601

ACWA is leading a coalition in opposition of SB 601 (Allen), which would needlessly complicate the state’s wastewater discharge permitting system, increasing costs and liability for water agencies with discharge permits.

The bill narrowly passed the Senate and is now in the Assembly. ACWA continues to urge members to contact legislators in opposition of this bill and join the coalition by completing an online form.

AB 362

AB 362 (Ramos) would establish “tribal water uses,” as a beneficial use of water and allow tribal water uses to be a primary factor in determining the highest water quality that is reasonable in all regulatory decisions. ACWA’s State Legislative Committee adopted an oppose-unless-amended position due to concerns with the bill.

ACWA staff met with Assemblymember Ramos and the bill’s sponsor, Shingle Springs Band of Miwok Indians, to discuss the bill several times and offered amendment language. This bill was held in the Assembly Appropriations Committee and is now a two-year bill.

SB 394

ACWA-sponsored SB 394 (Allen), co-sponsored with Las Virgenes Municipal Water District, would allow local water agencies to adopt an ordinance with enhanced penalties for water theft from a fire hydrant. It would also help agencies recover damages by authorizing utilities to pursue civil remedies against any person who tampers with or diverts water from a fire hydrant without authorization, among other details.

The bill passed the Senate and is scheduled to be heard in the Assembly Local Government Committee on June 18. Members can still join the coalition in support of this bill by completing an online form.

SB 454

ACWA-sponsored SB 454 (McNerney), co-sponsored with the League of California Cities, would create a much-needed funding tool to help water and wastewater agencies pay for costs that would otherwise be covered by local ratepayers on their water and wastewater bills.

The bill passed out of the Senate and is scheduled to be heard in the Assembly Environmental Safety and Toxic Materials Committee on June 17. Members can still join the coalition in support of this bill by completing an online form.

Questions

For questions about state legislation, contact ACWA Director of State Legislative Relations Julia Hall.

ACWA Co-Sponsored Bills Advance in State Legislature

Mid-way through the Legislative year, two bills co-sponsored by ACWA that could benefit member agencies have passed the Senate and are now awaiting committee assignment in the Assembly. ACWA staff continue to advocate for these and other bills, and it’s not too late to join coalitions in support.

SB 394 (Water Theft)

SB 394 (Allen), co-sponsored with Las Virgenes Municipal Water District, would allow local water agencies to adopt an ordinance with enhanced penalties for water theft from a fire hydrant.

Additionally, the bill would remove the one-year reset on existing penalties for the third and additional violations for water theft committed via meter tampering and other methods. It would also help agencies recover damages by authorizing utilities to pursue civil remedies against any person who tampers with or diverts water from a fire hydrant without authorization.

Join the coalition supporting SB 394 online.

SB 454 (PFAS Mitigation Fund)

SB 454 (McNerney), co-sponsored with the League of California Cities, would create a much-needed funding tool to help water and wastewater agencies pay for costs that would otherwise be covered by local ratepayers on their water and wastewater bills.

There are currently multiple sources of funding aimed at addressing PFAS contamination (current and potentially future legal settlements, federal funding, state bond funding, etc.) that could be directed to this fund.

Join the coalition supporting SB 454 online.

Questions

For more information on all of ACWA’s coalitions, visit ​ACWA’s website​.

For questions about state legislation, contact ACWA Director of State Legislative Relations Julia Hall.

ACWA Co-Sponsors SB 454 to Fund PFAS Cleanup in Water, Wastewater

ACWA is co-sponsoring a bill with the League of California Cities that would create a statewide PFAS Mitigation Fund to help local agencies provide safe drinking water and treated wastewater for their communities. The bill, SB 454, was introduced by Sen. Jerry McNerney (D-Pleasanton).

Local water agencies are not the source of these chemicals or responsible for the development of the products that introduced PFAS into the water supply and wastewater systems, yet they are responsible for the costs of monitoring for their presence, treating the water and disposing of the contamination. These costs challenge water affordability, particularly in disadvantaged communities.

If approved, the bill would create a much-needed funding tool to help water and wastewater agencies pay for costs that would otherwise be covered by local ratepayers on their water and wastewater bills. There are currently multiple sources of funding aimed at addressing PFAS contamination (current and potentially future legal settlements, federal funding, state bond funding, etc.) that could be directed to this Fund.

ACWA staff will work with the League of California Cities and Sen. McNerney to support the bill as it moves through the Legislature, and will notify members when it is scheduled for committee hearings. A press release from the senator’s office is available for more information.

Background

Per- and polyfluoroalkyl substances (PFAS), also known as “forever chemicals,” are a group of thousands of man-made chemicals that have been used extensively in numerous consumer products, such as Teflon pans, stain resistant carpets, fast food packaging, fire-fighting foams and other materials designed to be waterproof, stain-resistant or non-stick.

In April 2024, the U.S. Environmental Protection Agency announced a new national maximum contaminant level (MCL) of 4.0 parts per trillion (ppt) for PFOA and PFOS as individual contaminants and a standard of 10 ppt for three other chemicals — PFNA, PFHxs, and HFPO-DA (commonly referred to as GenXChemicals). Utilities have five years to come into compliance with the rule.

ACWA advocated that the EPA set drinking water standards that are based on sound science and robust analysis, and determined the MCL is not feasible because the anticipated costs of complying were not adequately captured under EPA’s cost assessment.

In a separate effort, the California Office of Environmental Health and Hazard Assessment in April 2024 adopted and published public health goals of 0.007 ppt for PFOA and 1.0 ppt for PFOS. A public health goal is a drinking water objective that does not pose a significant risk to health and is not an enforceable standard.

Additionally, the State Water Resource Control Board has identified development of a statewide PFAS MCL, as well as PFAS notification and response levels among its highest priorities in 2025.

Questions

For questions about SB 454, contact ACWA Director of Regulatory Relations Chelsea Haines at (916) 669-2431.

Governor’s Proposed Budget Allocates Climate Bond Resources for Water, Wildfire Priorities

Gov. Gavin Newsom today unveiled his $322.2 billion proposed state budget for the 2025-’26 fiscal year that would allocate some funding from the voter-approved climate bond (Proposition 4). As part of achieving a balanced budget, the proposal also includes shifting some current General Fund allocations, including dam safety and recycled water, to bond funding. ACWA will advocate to maintain funding for water and climate issues.

The climate bond – approved by voters on the November 2024 ballot – provides authority for funding for water and wildfire activities. The significant areas of funding, and other key budget proposals for each topic, are detailed below.

Safe drinking water, drought, flood and water resilience

The governor’s budget proposes $1.074 billion of the bond’s total $3.8 billion for safe drinking water, drought, flood and water resilience funding be allocated as part of the 2025-’26 budget year.

Relevant categories include:

In addition to these investments, the budget proposes $173.5 million to improve water storage, replenish groundwater, improve conditions in streams and rivers, and complete various water resilience projects and programs.

The governor also proposes to reduce funding from the General Fund by $47 million for dam safety, and $51 million for water recycling, shifting that funding to the climate bond.

Wildfire and forest resilience

The governor’s budget proposes $325 million of the bond’s total of $1.5 billion for wildfire and forest resilience funding be allocated as part of the 2025-’26 budget year. Relevant categories include:

In addition to these investments, the budget proposes $39.3 million for various wildfire and forest resilience projects and programs, including defensible space, home hardening, reforestation and wood utilization.

The budget further proposes to create a tax exemption for wildfire settlement funding from the 2025 tax year through 2029.

California’s Constitution requires the governor to submit a balanced budget proposal to the Legislature by Jan. 10 of each year. A revised budget will be released in May, and the Legislature will have until June 15 to pass a final budget.

Questions

For questions about the governor’s proposed budget, please contact ACWA Director of State Legislative Relations Julia Hall at (916) 441-4545.

State Legislature Back in Session

The California Legislature re-convenes today with more than 30 newly elected legislators launching into the first year of the 2025-’26 legislative session and renewing discussion of several issues important to the water industry, including low-income rate assistance, groundwater, and how to manage an estimated $2 billion budget deficit.

ACWA’s State Relations Department continued to meet with legislators during the winter recess to advance the association’s goals. ACWA encourages member agencies to make similar contacts and use ACWA’s “Outreach Handbook” as a helpful guide for such engagement.

Suggested Activities

Resources

Questions

For questions about ACWA’s legislative efforts, please contact ACWA Director of State Legislative Relations Julia Hall at (916) 441-4545.

 

Governor Calls Special Session of Legislature for Several Issues, Including Bolstering Climate Action

Gov. Gavin Newsom today called for a special session of the Legislature beginning Dec. 2 to focus on bolstering California legal resources to protect against a number of issues, including climate action.

The governor’s office said the special session is the first of several actions by his Administration, in partnership with the Legislature, to begin “shoring up California’s defenses against an incoming federal administration that has threatened the state on multiple fronts.”

The scope of the policy that will be included in this special session is not yet determined, as the governor’s proclamation is broad. One particular policy issue of importance to ACWA members that is highlighted in the proclamation is clean vehicle policies, which may include the California Air Resources Board’s Advanced Clean Fleets regulation that went into effect in January. The governor noted an expectation that the incoming federal Administration will seek to undo clean vehicle policies that are critical to combating climate change and dismantling other long-standing environmental protections for clean air and water.

In conversations with senior legislative staff, ACWA staff has learned that this session will be convened concurrently with the 2025 legislative session. At this point, it is unclear if work will begin in earnest in December or be postponed to January for action, but the goal is to complete the special session before the end of January.

Questions

For questions about the special session, please contact ACWA Legislative Relations Manager Julia Hall at (530) 902-9746.

 

Last Year of the 2023-’24 Legislative Session Ends with Wins for ACWA Members

The California legislative year that ended Aug. 31 included many wins for ACWA member agencies across a wide range of issues. Below is an overview of action on some of the key bills in which ACWA staff advocated in support or opposition on behalf of its members this year.

Rate Setting Process

The Legislature passed ACWA-sponsored AB 2257 — which would help member agencies defend against Proposition 218 lawsuits — and it is now on Gov. Gavin Newsom’s desk.  He has until Sept. 30 to sign or veto bills.

Authored by Assemblymember Lori Wilson (D-Suisun City), AB 2257 would allow ratepayers to participate and raise specific objections to proposed rate changes before resorting to litigation after the new rates are approved. The bill would provide an opportunity for local agencies and ratepayers to resolve objections during the public process and avoid surprise litigation down the road.

ACWA has been leading a large coalition in support of the bill, building on the success of ACWA-sponsored SB 323 (Caballero, Chapter 216, Statutes of 2021), which created a 120-day statute of limitations for filing lawsuits against water and sewer rates through the Proposition 218 process.

Low-Income Rate Assistance

ACWA maintained an oppose-unless-amended position on SB 1255 (Durazo) and it failed to make it out of the Assembly Appropriations Committee’s suspense file, effectively stopping the bill.

This bill would have required each retail water supplier that serves more than 3,300 connections to establish a water low-income rate assistance (LIRA) program with specified minimum requirements, some of which are unworkable.

ACWA recognizes the need for a water LIRA program, but it must be workable and efficient. With SB 1255, ACWA submitted recommended amendments to the author, some of which were accepted. However, amendments made still would not have adequately addressed the fundamental “opt-out” issue, and other issues, preventing ACWA from changing its position.

The bill was of serious concern to many ACWA members as it would have relied on voluntary contributions from ratepayers who were not eligible for the assistance, which is an uncertain funding source. The approach would have been an “opt-out” approach, so these ratepayers would have been charged the voluntary contribution unless they affirmatively opted out. They could have later sought a refund, but that would have made the funding stream even more uncertain. ACWA suggested a true “opt-in” approach.

The bill would have also capped the amount of administrative costs that could have been covered with the voluntary contributions, leaving agencies with a funding conundrum since the use of rate revenue from the non-eligible customers would have violated Proposition 218.

Water Rights

ACWA removed opposition to AB 460 (Bauer-Kahan) after significant amendments limited the bill to increasing penalties for certain violations, including illegal diversions. The Legislature passed the bill, and it is now before Gov. Newsom.

These amendments represented an extraordinary improvement to the bill, which previously would have granted the State Water Resources Control Board new and sweeping authority to prevent diverters from exercising their water rights. With the amendments, AB 460 will ensure penalties serve as a deterrent to illegal diversions.

AB 460 was one of three water rights bills introduced in the California Legislature last year, making water rights a top priority for ACWA. ACWA led a large coalition of more than 100 organizations, including water industry, agricultural, business, and labor interests in opposing AB 460. The coalition, including many ACWA member agencies, was instrumental in advocacy through extensive contact with local legislators and testifying at hearings.

Groundwater

AB 2079 (Bennett), which would have banned local agencies from permitting some new groundwater wells, failed to pass out of the Senate Natural Resources and Water Committee, effectively stopping the bill.

ACWA’s State Legislative Committee adopted an oppose-unless-amended position due to concerns over the moratorium on new wells throughout much of the state and the potential legal liability it created for local agencies. The bill would have prohibited well-permitting agencies from approving applications for agricultural and industrial wells in basins that experienced more than half a foot of subsidence since 2015, or if the well was within a quarter mile of a domestic well.

ACWA participated in a large coalition of associations, water agencies, business and agricultural interests in opposing the bill.

Climate Resilience Bond

The Legislature passed SB 867 (Allen), a $10 billion climate resilience bond on July 3. Signed into law, this measure will appear on the Nov. 5 ballot as Proposition 4. It proposes $2.91 billion in funding for nine of the 10 water-related categories that ACWA and an ACWA-led coalition advocated to be included based on guidance on a statewide perspective from a large working group of the State Legislative Committee.

There are positive aspects, such as the measure includes significant funding for safe drinking water and dam safety projects. At the same time, the level of funding for the 10 categories is less than one-third of the bond, and funding levels are very low for some categories that are fundamental to water management.

Voluntary Agreements

SB 108 (Wiener), the Budget Act of 2024, was signed into law in June, and restored nearly $500 million for the Agreements to Support Healthy Rivers and Landscapes (Agreements), formerly known as the Voluntary Agreements.

 

The funding was previously rescinded in the main budget bill, AB 107 (Gabriel). ACWA, the Northern California Water Association, the State Water Contractors and more than 40 other organizations successfully advocated to maintain nearly all funding for the Agreements.

 

The Agreements represent an unprecedented opportunity to improve California’s Sacramento-San Joaquin Bay-Delta ecosystem by creating a comprehensive program of habitat enhancement projects coupled with more water for fish and wildlife, managed in a collaborative, science-based manner.

 

Discontinuation of Water Service

ACWA-sponsored AB 2599, authored by the Assembly Environmental Safety and Toxic Materials Committee, passed the Legislature and is now before Gov. Newsom. The bill would incorporate agreed-upon amendments to SB 3 (Dodd, 2023), which made various changes to the Water Shutoff Protection Act, including granting the California Attorney General a restitution authority.

AB 2599 would provide that this new authority does not cover personal property — as water systems do not have the authority to obtain personal property from their customers — and applies where there “has been unlawful conduct” as opposed to where there “may have been unlawful conduct” under the Act.

Questions

For questions about these bills and ACWA state legislative advocacy, please contact ACWA Director of State Relations Adam Quiñonez at (916) 441-4545.