New California Law Allows San Diego to Revive Water Conservation Discounts

Governor Gavin Newsom signed AB 2180, a new state law, which aims to allow water agencies to resume offering discounts to low-volume users in San Diego. The law lowers the standard for justifying tiered rates, allowing them to be based on ordinary customer characteristics like property size or peak-demand estimates. This legislation comes as San Diego was scheduled to switch to uniform rates to comply with a court ruling that questioned the legal basis of its tiered rate structure.

The new law addresses a major legal challenge that cast doubt on the rate structures of nearly every water agency in California. By establishing a lower standard for tiered rates, AB 2180 provides a mechanism for water agencies to legally justify conservation-rewarding pricing models.