AB 2739 — Water: affordability and system stabilization.

Summary

Existing law establishes in the Natural Resources Agency the Department of Water Resources. Existing law vests in the department powers, duties, purposes, responsibilities, and jurisdiction in matters pertaining to water or dams. Existing law declares the responsibility of the state to assist local governments in providing certain essential services and facilities where water resource construction projects financed, in whole or in part, by the state or by the state jointly with the federal government create an undue burden on a local area's ability to provide these services and facilities. Existing law, the California Safe Drinking Water Act, requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health. Existing law declares it to be the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. This bill would establish in the State Treasury the Water Affordability and System Stabilization Fund for holding the principal and income of the Water Affordability and System Stabilization Trust, which the bill would create. The bill would designate the Treasurer as trustee of the trust, as specified, and would require the trustee, among other things, to hold, manage, and invest the principal of the trust with the obligation of providing a growing perpetual source of annual funding to the Water Rate Assistance Fund, administered by the state board, and the Community Water Affordability Assistance Fund, administered by the department, beginning 25 years after the Legislature transfers funding from the General Fund to the Water Affordability and System Stabilization Fund. This bill would require, during the first 25 years following the Legislature's transfer, 45% of the income of the trust to be transferred from the Water Affordability and System Stabilization Fund to each of the Water Rate Assistance Fund and the Community Water Affordability Assistance Fund, and would continuously appropriate the remaining 10% of the income of the trust to be invested as part of the principal of the trust. After the first 25 years, the bill would require 50% of the income of the trust to be transferred from the Water Affordability and System Stabilization Fund to each of the Water Rate Assistance Fund and the Community Water Affordability Assistance Fund. The bill would continuously appropriate no more than 1% of the annual income of the trust to pay for administration of the trust. By making continuous appropriations and by transferring moneys into a continuously appropriated fund, the bill would make an appropriation. Existing law requires the Controller to transfer surplus money in any special fund from that fund to the Surplus Money Investment Fund in the State Treasury, a continuously appropriated fund. The bill would authorize the trustee to enter into a trust agreement with a fiscal intermediary to support its duties, as provided, and would authorize the fund to be invested in the Surplus Money Investment Fund, thereby making an appropriation. This bill would require the department, subject to a transfer of moneys by the Legislature, to develop and administer the Community Water Affordability Program to provide funding in the form of grants to community water systems for local water system infrastructure projects, as specified, for the purpose of reducing the amount of local ratepayer funding required for those projects and for avoiding costs that would otherwise be paid for by ratepayers. The bill would require the department to develop and adopt program guidelines and project solicitation documents before disbursing grant funds, and would exempt those guidelines and documents from the rulemaking procedures of the Administrative Procedure Act. The bill would require the program guidelines to, among other things, require an applicant for a grant to provide at least 25% of the total funding required for the project, as provided. The bill would authorize the department to waive or reduce that minimum amount if that requirement would cause extreme financial hardship to the applicant. The bill would also establish the Community Water Affordability Assistance Fund in the State Treasury and would provide for deposit into the fund of contributions from private and public entities, as specified. The bill would make moneys in the fund available to the department for purposes of the program, including up to 5% annually for administration of the fund, upon appropriation by the Legislature, as provided.

Bill Text

• Enrolled 09/03/26 - Enrolled html September 03, 2026
• Amended 08/21/26 - Amended Senate html August 21, 2026
• Amended 07/02/26 - Amended Senate Current pdf July 02, 2026
• Amended 06/11/26 - Amended Senate pdf June 11, 2026
• Amended 04/06/26 - Amended Assembly pdf April 06, 2026
• Amended 03/19/26 - Amended Assembly pdf March 19, 2026
• Introduced 02/20/26 - Introduced pdf February 20, 2026
• AB2739 View text html

Action History

1. September 30, 2026

   Vetoed by Governor.

2. September 10, 2026

   Enrolled and presented to the Governor at 3 p.m.

3. August 30, 2026

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6939.).

4. August 30, 2026

   In Assembly. Concurrence in Senate amendments pending.

5. August 30, 2026

   Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.).

6. August 30, 2026

   Ordered to special consent calendar.

7. August 24, 2026

   Read second time. Ordered to third reading.

8. August 21, 2026

   Read third time and amended. Ordered to second reading.

9. August 13, 2026

   Read second time. Ordered to third reading.

10. August 13, 2026

    From committee: Do pass. (Ayes 7. Noes 0.) (August 13).

11. August 03, 2026

    In committee: Referred to APPR. suspense file.

12. July 02, 2026

    Read second time and amended. Re-referred to Com. on APPR.

13. July 02, 2026

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (July 1).

14. June 24, 2026

    From committee: Do pass and re-refer to Com. on E.Q. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (June 23). Re-referred to Com. on E.Q.

15. June 11, 2026

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on N.R. & W.

16. June 03, 2026

    Referred to Coms. on N.R. & W. and E.Q.

17. May 27, 2026

    In Senate. Read first time. To Com. on RLS. for assignment.

18. May 26, 2026

    Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0.)

19. May 18, 2026

    Read second time. Ordered to third reading.

20. May 14, 2026

    From committee: Do pass. (Ayes 15. Noes 0.) (May 14).

21. April 29, 2026

    In committee: Set, first hearing. Referred to APPR. suspense file.

22. April 15, 2026

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 14). Re-referred to Com. on APPR.

23. April 07, 2026

    Re-referred to Com. on W., P., & W.

24. April 06, 2026

    From committee chair, with author's amendments: Amend, and re-refer to Com. on W., P., & W. Read second time and amended.

25. March 23, 2026

    Re-referred to Com. on W., P., & W.

26. March 19, 2026

    From committee chair, with author's amendments: Amend, and re-refer to Com. on W., P., & W. Read second time and amended.

27. March 19, 2026

    Referred to Com. on W., P., & W.

28. February 21, 2026

    From printer. May be heard in committee March 23.

29. February 20, 2026

    Read first time. To print.

Sponsors

• Esmeralda Soria · Primary

Votes

Subjects