Assembly Bill 2443, signed Monday by Gov. Jerry Brown, amends California’s Water Service Duplication Statute to allow for political subdivisions, such as municipalities or county water districts, to provide recycled water service to customers within the service area of privately owned water companies that do not currently provide recycled water service. 

Under previous law, the California Water Service Duplication Statute attempted to grant privately owned water companies the right to be paid compensation for the reduction in the value of their property occurring as a result of the duplication of water service by a political subdivision, which was interpreted by some to prevent the expansion of recycled water service. The lone exception to this rule was a legislative amendment that exempted the use of recycled water by entities in Los Angeles County from the compensation requirement of the Statute. 

In light of the ongoing drought in California and the Legislature’s ambitious goal of increasing the use of recycled water in the state by at least 1 million acre-feet per year by 2020, and by at least 2 million acre-feet by 2030, AB 2443 significantly expands the potential use of recycled water throughout the state. Specifically, the bill makes inapplicable the requirement that a mutual water company is entitled to compensation when a public agency constructs facilities to provide or extend recycled water service to the territory of the mutual water company. However, this exemption would not apply in the case of a public agency providing or extending recycled water service to the territory of the mutual water company that already provides recycled water service, or has developed specific plans to provide recycled water service, by Dec. 31.

The use of recycled water for irrigation at recreational facilities, parks, greenbelts and other appropriate facilities is critical to preserve potable water in light of the ongoing drought. However, the Water Service Duplication Law and its requirement to compensate mutual water companies has long stymied the development of recycled water service in the service areas of mutual water companies that do not offer recycled water. Therefore, the passage of AB 2443 will serve to allow public agencies to use and provide recycled water to a larger number of customers, while simultaneously protecting California’s limited potable water supply.