California’s mutual water companies scored an important legislative win on May 14 when the state Senate Appropriations Committee defeated Senate Bill 1291 (Gonzalez). The bill would have imposed costly new requirements on member systems that duplicated programs already being carried out by the State Water Resources Control Board (SWRCB).
This significant victory would not have been possible without your support! Seventy water company members signed CalMutuals’ opposition letter. Your logos, displayed prominently on the letter and organized by legislative district, ensured that every member of the Appropriations Committee could see exactly who in their own community would be impacted. That kind of grassroots show of force is difficult for legislators to ignore.
The member showing was backed by a strong advocacy effort from the CalMutuals team. Testifying before the Appropriations Committee on behalf of mutual water companies were CalMutuals Board members South Mesa Water Company General Manager Dave Armstrong and Krista Mutual Water Company Board President Sandi McElhenney. Their succinct and pointed testimony made a strong impression. Executive Director Adán Ortega also testified, and the team later met with Appropriations Chair Sabrina Cervantes’ chief of staff and committee staff to drive the cost duplication argument home.
Behind the scenes, advocate Oracio Gonzalez and Karina Cervantez orchestrated the strategy, identifying the opening to present facts that the bill’s supporters were ultimately unable to defend. CalMutuals General Counsel Jim Ciampa provided rapid turnaround on proposed amendment language. Earlier in the process, Yvonne Green, a shareholder of Lincoln Avenue Water Company and an Eaton Fire survivor, testified before the Environmental Quality Committee during the bill’s second hearing, providing a powerful reminder that mutual water companies are co-ops whose shareholders share in the governance and resiliency of the water company.
The Battle Continues: SB 1417 Now in the Crosshairs
While SB 1291’s defeat is cause for celebration, it is only half the battle. Attention now turns to SB 1417 (Perez), which threatens the privacy rights of mutual water company shareholders and their board members. If passed, this legislation could make it more difficult for companies to implement the rate increases needed to maintain water systems and comply with growing regulatory requirements. CalMutuals has already begun mobilizing member opposition and will be escalating outreach efforts in the coming days. Members can review the legislative alert regarding SB 1417 HERE.
We will keep members informed as this effort develops. In the meantime, thank you to everyone who took the time to submit letters of opposition, make calls to your senators and join us in meetings with legislators. Your participation makes a real difference in showing state lawmakers the real-world impacts of their legislative decisions and strengthens our collective advocacy efforts.