Implementing a public goods charge for water

Assembly Bill 32 (AB32) was passed with the goal of reducing California’s greenhouse gas (GHG) emissions to 1990 levels by the year 2020. Because approximately 20% of CA’s energy is used in the water sector (delivery, treatment, etc.), reducing water use can help reduce GHG emissions. In this report, the authors were tasked by the California Public Utilities Commission with making recommendations for implementing a public goods charge (“a fee applied to a utility bill to fund public‐interest programs related to that utility service”) for water. They outline the reasons why such a public goods charge would be effective in reducing consumption and then lay out a strategy for implementation, including calculations of appropriate fees.