AB 2180 seeks to clarify how water rates comply with Proposition 218; lawmakers advance bill amid split views

Assemblymember Ward introduced AB 2180 as legislation to provide clarity for public water agencies on how to set proportional rates under Proposition 218, addressing recent conflicting appellate decisions. "AB 21 80 would address this issue by establishing clear legal standards that protect both water agencies and ratepayers by reducing costly litigation," Ward said.

Soren Nelson of the Association of California Water Agencies testified that the uncertainty in court decisions has created an "impossible legal landscape" for local providers and urged support. Nick Lipps, a deputy city attorney for San Francisco, told the committee courts have reached different conclusions and that the bill would help guide agencies and the courts.

Opponents and several public commenters said the legislature should not pre‑empt an issue now before the California Supreme Court and argued AB 2180 risks weakening constitutional safeguards. Frederick Cardano, a resident, argued the bill "guts Proposition 218" by giving utilities broader discretion, and taxpayer groups asked the committee to wait for the court's decision.

Committee members traded questions about whether legislative guidance would improperly influence the judicial process and whether leaving the matter to the courts would lead to narrower, piecemeal answers. Proponents responded that legislative guidance on implementation ordinances can inform courts and protect ratepayers from litigation‑driven cost shifts.

After discussion, the committee called and recorded a vote and advanced AB 2180 to the Senate floor.