SB 936 Summary

• Authorizes the Public Utilities Commission to issue financing orders enabling California American Water and other qualifying water utilities to recover water supply costs through water rate relief bonds, specifically for infrastructure projects on the Monterey Peninsula including desalination and recycled water facilities.

• Establishes "water supply property" as a new property right based on nonbypassable customer surcharges that can be pledged to secure water rate relief bonds, with provisions for true-up adjustments and customer protections including low-income rate assistance exclusions.

• Permits the Monterey Peninsula Water Management District and joint powers authorities to issue tax-exempt water rate relief bonds to purchase bonds issued by utilities, provided the Public Utilities Commission finds the issuance will result in savings to customers compared to traditional financing.

• Removes exceptions for "transition property" and "recovery property" from Commercial Code provisions governing transfers of personal property, and creates specific security interest perfection procedures for water supply property under Article 9 of the Commercial Code.

• Extends the Public Utilities Commission's decision timeline from 20 days to 210 days for rehearing applications related to water supply financing orders and establishes direct California Supreme Court review for challenges to these orders, bypassing appellate courts.