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IN THIS ISSUE |
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Requirements for Urban Water Suppliers |
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Requirements for DWR |
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Funding Eligibility |
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EKI’s Approach to Water Conservation Planning |
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| SENATE BILL 7 - WATER CONSERVATION WHAT DOES IT REALLY MEAN FOR URBAN WATER SUPPLIERS? |
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| On November 4, 2009, California lawmakers passed, and the Governor subsequently signed, a package of four water policy bills and a $11.14 billion bond bill devoted to water resources and conservation. These bills, termed the “2009 Water Package,” provide for new management of the Sacramento-San Joaquin Delta, set aggressive water conservation targets, establish a Statewide groundwater monitoring program, and dedicate funds for increased enforcement of illegal water diversions. A key component of the 2009 Water Package is Senate Bill 7 (“SB 7”). SB 7 expands water conservation requirements for urban and agricultural water suppliers throughout California. This e-newsletter discusses the impacts of these new requirements on urban water suppliers and the preparation of their upcoming 2010 Urban Water Management Plan (“UWMP”). Look for EKI presenting this Thursday at the ACWA Fall Conference! Preparing a Legally Defensible UWMP in an Era of Water Supply Uncertainty |
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| DECEMBER 2009 | |
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| Requirements for Urban Water Suppliers | 
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| Baselines, Targets, Reporting and More… | ||
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 SB 7 mandates significant new actions for entities supplying drinking water in urban areas at a retail level (“urban retail water suppliers”). These actions include, among other things, estimating baseline water use, estimating current water use, and developing water use targets to be met by 2015 and 2020. These water use estimates and targets must be included in 2010 UWMPs and reported to the California Department of Water Resources (“DWR”) by July 1, 2011. Calculating Baseline and Compliance Water Use Under SB 7, urban retail water suppliers must first establish a “base daily per capita water use.” This value is estimated using the supplier’s total water use over a 10-year period (ending between 2004 and 2010), reported in gallons per capita per day (“GPCD”). In areas where recycled water was used to meet at least 10% of retail water demands during 2008, a 15-year period can be used instead of the standard 10-year period. Urban retail water suppliers must also calculate “compliance daily per capita water use.” This value is equal to total annual water use, in GPCD, for the final year of the reporting period. Annual fluctuations in rainfall, evapotranspiration, and Commercial, Industrial and Institutional (“CII”) water use may be considered when estimating compliance daily per capita water use. Compliance water use estimates will ultimately be used to determine compliance with 2015 and 2020 water use targets. Setting 2020 Water Use Targets SB 7 identifies four methods for urban retail water suppliers to set their 2020 "urban water use target.” These methods include:
Minimum 5% Water Use Reduction Notwithstanding the method used to estimate the 2020 urban water use target, SB 7 requires “the reduction in per capita daily water use shall be no less than 5% of the base daily per capita water use.” For the purpose of determining the 5% threshold, suppliers must use a 5-year period (ending between 2007 and 2010) to estimate their base daily per capita water use, instead of the typical 10-year period. An exception to the 5% minimum reduction is made for urban retail water suppliers whose base daily per capita water use is 100 GPCD or less. Thus, communities that are already using water efficiently will be recognized for their efforts and exempt from the 5% minimum reduction. Reporting to DWR: The 2010 Urban Water Management Plan SB 7 identifies the UWMP as the primary mechanism for reporting the water use estimates and water use targets required by SB 7. In particular urban retail water suppliers must expand their 2010 UWMP to include the following estimates:
Although urban wholesale water suppliers are not required by SB 7 to develop water use targets, they must include in their UWMP an assessment of present and proposed future water conservation measures, programs, and policies that will help achieve the water use reductions required by SB 7. |
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| Requirements for DWR | |
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| Methodologies, Criteria, Standardized Data Form, and Legislative Update | ||
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One of the key goals of SB 7 is to develop a standardized system for developing, tracking, and reporting water use throughout the State over the next 10 years. As such, DWR has been tasked with developing methodologies, criteria, and reporting formats to be utilized by California’s urban retail water suppliers. Additionally, DWR will work with other public and private entities to evaluate new water conservation measures for the CII sector and to report progress toward meeting the State's goal to the Legislature.Methodologies and Criteria to Assist Urban Water Suppliers Prior to December 31, 2010, DWR will develop a methodology for identifying urban water use targets that cumulatively result in a Statewide reduction in urban daily per capita water use of 20% by the end of 2020. SB 7 recognizes the need for flexibility in meeting urban water use targets so that suppliers can tailor their program to their community. As such, DWR’s methodology will be one of four acceptable methodologies that an urban retail water supplier may use to calculate its urban water use target. Prior to October 1, 2010, DWR will develop methodologies for calculating several water use estimates required by SB 7 (e.g., base daily per capita water use and baseline CII water use) and criteria for adjusting these estimates. Adjustments are allowed by SB 7 in particular for suppliers with substantial industrial water users and to account for annual fluctuations in rainfall, evapotranspiration, and CII uses. The Standard Data Form DWR, the State Water Resources Control Board, and other State agencies will work together to develop a standardized water information reporting system to streamline required water reporting. This form must be completed by urban retail water suppliers and submitted to DWR as part of their 2010 UWMP. BMPs and Other Commercial-Related Topics DWR will work with the California Urban Water Conservation Council to establish a task force to identify best management practices to assist the CII sector in meeting the water conservation goal. The task force shall convene by April 2010, with recommendations submitted by April 2012. Legislature Progress Reporting One year following the 2015 UWMP deadline (December 31, 2016) DWR will report to the Legislature on progress made toward achieving the 20% reduction by 2020 and recommend changes to water use efficiency standards needed to reach the State-wide goal. |
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| Funding Eligibility | |
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| Deadline: July 1, 2016 | ||
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 Starting in July 2016, eligibility for State water grants and loans will be conditioned on meeting the requirements of SB 7. Beginning July 1, 2016 an urban retail water supplier will not be eligible for a water grant or loan awarded or administered by the State unless the supplier has met its interim water use target.However, DWR may determine that an urban retail water supplier is eligible for a water grant or loan even if it has not met the required per capita reductions if a schedule, financing plan, and budget for achieving the per capita reductions is submitted along with the grant or loan agreement. Furthermore, communities that qualify as “disadvantaged” will be eligible for grant or loan funding even if they have not met their per capita target. Suppliers that are participating in a regional or multi-agency project will not be denied eligibility for grant or loan funding on the basis that other agencies participating in the project are not in compliance. |
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| EKI’s Approach to Water Conservation Planning | |
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| Balancing the Requirements with your Community’s Needs | ||
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 EKI has prepared UWMPs and water conservation plans for several urban water suppliers in California and can assist your agency in meeting the requirements of SB 7. EKI uses a collaborative approach that focuses on communication with staff from various City or agency departments in order to develop a plan for conserving water.As part of preparing your water conservation plan, EKI can assess the costs and benefits of implementing alternative water demand management measures for your agency, including assessing the effects of reduced water use on your water revenues, and other key program components. These analyses are important decision-making tools that can be used to guide your water conservation planning efforts and ensure that cost-effective options are used to meet SB 7 requirements. For additional information on UWMP or SB 7 requirements, contact: Vera H. Nelson, P.E. Vice President of Water Resources vhnelson@ekiconsult.com Steve A. Tarantino, P.E. Vice President of Municipal Services starantino@ekiconsult.com *Graph showing regional water use baselines and 2020 water use targets is from DWR Draft 20x2020 Water Conservation Plan (April, 2009). *Image of San Luis Reservoir is from Wikimedia Commons. |
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