Court Ruling Makes Tiered Water Pricing Difficult for California Drought Efforts

Pricing through tiered levels (i.e., charging more for customers using higher volumes of water), will be difficult, if not impossible, thanks to the ruling of a California appeals court on April 20.

2 minute read

May 1, 2015, 12:00 PM PDT

By Irvin Dawid


"In a decision that could raise obstacles to water conservation efforts across the state, a Southern California appeals court has rejected the city of San Juan Capistrano’s adoption of tiered rates to encourage customers to use less water," writes Dan Brekke for KQED's California Report.

Ruling on a case initiated by taxpayers, a three-judge 4th District Court of Appeal found that the city’s water-rate scheme violated provisions of Proposition 218, a constitutional amendment passed in 1996 to limit service fees imposed by local agencies.

The 4th District panel’s reasoning rests on a series of state court rulings that have held that Prop. 218 requires water rates to reflect the actual cost of providing service to individual properties.

Thus, the ruling technically doesn't make it illegal to use tiered ratings. The water agency would have to justify the tiered ratings by showing that it "reflect(s) the additional cost of providing higher volumes of water to some customers," which apparently the attorneys for San Juan Capistrano were unable to do.

Gov. Jerry Brown indicated his strong displeasure with the ruling:

“The practical effect of the court’s decision is to put a straitjacket on local government at a time when maximum flexibility is needed,” Brown said in a statement. “My policy is and will continue to be: Employ every method possible to ensure water is conserved across California.”

Penny Nelson of KQED Forum, a radio program, spent a half hour discussing the ruling with the San Jose Mercury News' environmental reporter, Paul Rogers, who is also managing editor of QUEST, KQED’s weekly science and environment program. Call-ins were taken.

Monday, April 20, 2015 in The California Report

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 10, 2025 - Diana Ionescu

Parklet with wooden benches and flower boxes on street in Ireland.

Parklet Symposium Highlights the Success of Shared Spaces

Parklets got a boost during the Covid-19 pandemic, when the concept was translated to outdoor dining programs that offered restaurants a lifeline during the shutdown.

30 minutes ago - Streetsblog San Francisco

Bronze statue of homeless man (Jesus) with head down and arm outstretched in front of St. Matthew Cathedral in Washington D.C.

Federal Homelessness Agency Places Entire Staff on Leave

The U.S. Interagency Council on Homelessness is the only federal agency dedicated to preventing and ending homelessness.

1 hour ago - The New York Times

Historic stone structure surrounding natural spring in India with plaques.

Restoring Northern India’s Himalayan ‘Water Temples’

Thousands of centuries-old buildings protect the region’s natural springs and serve as community wells and gathering places.

2 hours ago - Reasons to Be Cheerful