FROM: Robert Thompson, General Manager
Originator: Jennifer Cabral, Director of Communications
SUBJECT:
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LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF SEPTEMBER 2026
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Legislative Affairs Update for the month of September 2026.
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BACKGROUND
The Orange County Sanitation District’s (OC San) legislative affairs program includes advocating for policy and legislative priorities, sponsoring legislation (where appropriate), and seeking local, state, and federal funding for projects and programs.
RELEVANT STANDARDS
• Maintain influential legislative advocacy and a public outreach program
• Build brand, trust, and support with policy makers and community leaders
• Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities
PROBLEM
Without ongoing legislative engagement, elected officials may not be aware of OC San’s mission, programs, and projects, or how proposed legislation may impact OC San operations and infrastructure planning.
PROPOSED SOLUTION
Continue to work with Local, State, and Federal officials to advocate for OC San’s interests and help identify, monitor, and respond to legislation and grant opportunities that benefit OC San, the wastewater industry, and the community. To strengthen relationship building efforts, OC San will continue to engage elected officials through facility tours, one-on-one meetings, and outreach trips to Washington D.C. and Sacramento.
RAMIFICATIONS OF NOT TAKING ACTION
If OC San does not actively engage with Local, State, and Federal elected officials, legislation could be enacted that adversely impacts OC San and the wastewater industry. Additionally, a lack of engagement may result in missed funding opportunities.
ADDITIONAL INFORMATION
Activities in September:
State Bill Positions
In line with our 2026 Legislative and Regulatory Plan, OC San submitted three position letters to the Governor:
• Assembly Bill (AB) 2180 (Ward): Proposition 218 Omnibus Implementation Act - Request for the Governor’s Signature
The Proposition 218 Omnibus Implementation Act provides important clarification on how local governments may demonstrate compliance with constitutional requirements governing property related service charges. AB 2180 clarifies that agencies may use reasonable methods, supported by existing or reasonably estimated data, to allocate service costs among parcels. It also confirms that agencies are not required to calculate exact parcel-by-parcel costs and may use uniform or tiered fees for customer classes based on factors such as land use, parcel improvements, or peak demand.
• AB 2777 (House Environmental Safety and Toxic
Materials Committee): Clean Water State Revolving Fund - Request for the Governor’s Signature
AB 2777 makes important changes to California water quality law that will provide the State Water Resources Control Board with greater flexibility to administer the Clean Water State Revolving Fund (CWSRF), while clarifying the definition of incidental runoff for recycled water uses.
This bill would authorize the State Water Board, when administering CWSRF loans, to assess a fee in lieu of interest for financial assistance services. The fee could not exceed the amount of interest that otherwise would have been charged. This approach would give the State Water Board greater flexibility in administering the program. It could also help stabilize and potentially increase CWSRF resources while maintaining attractive, below-market financing for critical water quality infrastructure.
• AB 1621 (Wilson): Planning and Zoning Law: Post entitlement Phase Permits: Housing Accountability Act - Request for the Governor to Veto
The bill limits residential building permit applications to two rounds of plan review and restricts agencies’ ability to require corrective action or issue stop-work orders when problems are identified during construction.
The opportunity to review plans provides an important opportunity to evaluate utility capacity, system impacts, environmental compliance, and other project specific considerations before deficiencies become costly or difficult to correct. These reviews serve an important function in protecting public health, safety, and welfare, and evaluating project-specific utility capacity and environmental compliance.
State of OC San
• The annual State of OC San took place on Friday, September 18, at OC San Headquarters, welcoming approximately 150 attendees. The event hosted local, state, and federal dignitaries and provided an update on OC San, its accomplishments, and the future direction of the agency. This year, OC San was honored to have former OC San Board Chair and current Deputy Secretary Troy Edgar of the United States Department of Homeland Security as a guest speaker. Deputy Secretary Edgar shared updates on national issues that may affect agencies with critical infrastructure, such as OC San.
Upcoming Activities in October:
2027 Legislative and Regulatory Plan
• The Legislative and Regulatory Plan is updated on an annual basis to ensure it coincides with the best interest of OC San. The draft plan for 2027, which is attached to this agenda, is based on feedback received from resident experts, industry contacts, and the Board over the last several months. The final plan will be submitted to the Committee and Board of Directors in November for final adoption.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
CEQA
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FINANCIAL CONSIDERATIONS
All items mentioned are included in OC San’s FY 2026-27 Adopted Budget.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
• Federal Legislative Update
• Federal Matrix
• State Legislative Update
• State Matrix
• Local Legislative Update
• 2027 Draft Legislative & Regulatory Plan
• AB 2180 Sign Request
• AB 2180 Bill Text
• AB 2777 Sign Request
• AB 2777 Bill Text
• AB 1621 Veto Request
• AB 1621 Bill Text
• Presentation - 2027 Draft Legislative and Regulatory Plan
• Presentation - Federal Legislative Update