ITEM:		ACTION ITEMS
17.	PROVIDE DIRECTION TO STAFF REGARDING WATER CREDITS ASSOCIATED WITH MANDATORY DISTRICT CONSERVATION REQUIREMENTS RESULTING FROM PROPOSED UPDATES TO REGULATION XIV, WATER CONSERVATION
Meeting Date:			July 20, 2009	Budgeted:	N/A
From:			Darby Fuerst,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: In September, the Board will be considering an ordinance to amend and revise the Conservation Regulation of the District (Regulation XIV). The proposal to update the standards is forward-thinking and in keeping with the District’s goal to be a leader in water conservation. Many of the proposed amendments will be required through state legislation or are considered Best Management Practices by the California Urban Water Conservation Council. Water saved through mandatory conservation requirements contributes to community compliance with regulatory restrictions and reduces the amount of water needed to serve the community. The amendments continue to be refined and reviewed by various local interests and will be presented as an ordinance for first reading in September 2009. An outline of the proposed amendments is included as Exhibit 17-A.

The purpose of this item is to bring to the Board’s attention an issue that will impact the Water Permit process. The Water Demand Committee has been reviewing progress on the development of the Conservation Regulation amendment ordinance, has provided input on content, and has provided oversight on development of the ordinance. The committee requested that the full Board discuss the following issue related to drafting of this ordinance: Water Use credits currently granted for installation of water saving devices installed on a voluntary basis will, upon adoption of the Conservation Regulation revisions, become mandatory conservation standards no longer eligible for credit.

Presently, Rule 25.5-B disallows Water Use Credits for water savings resulting from mandatory District programs, including water savings resulting from the fixtures required by the District’s New Construction, Remodel/Addition, Change of Ownership and Change of Use retrofit requirements. The revisions to Regulation XIV, Conservation, will eliminate the availability of Water Use Credits in the situations shown on the following table:

	Availability of Water Credit for Identified Fixture Under Proposed Reg. XIV Amendments
Type of Fixture	Residential New Construction	Non-Residential New Construction	Remodel/Addition	Change of Title	Commercial Change of Use
High Efficiency Toilet (HET) (0.004 AF Credit)	No	No	No	No	No
Ultra Low Consumption Dishwasher	No	No	Yes	Yes	Yes
Ultra Low Consumption Washer (0.005 - 0.01 AF Credit)	No	No	Yes	Yes	No
Instant-Access Hot Water System (0.005 AF Credit)	No	No	No	Yes	Possibly

Most of these Residential water fixtures are currently available to offset water demand associated with remodels/additions and new construction (Table 4: Ultra-Low Consumption Appliance Credits included as Exhibit 17-B). As an example of how these credits work, to offset a new half bathroom (i.e., HET and wash basin), a homeowner would have to replace two existing toilets with High Efficiency Toilets, install an Ultra Low Consumption Washing Machine and Ultra-Low Consumption Dishwasher. The credit process cancels out both the potential increase in demand and the water savings resulting from the retrofit.

The proposed amendments to Regulation XIV similarly affect Non-Residential projects. Although Non-Residential Water Permits are not based on the number or type of water fixtures being installed, applicants may qualify for a Water Use Credit when they install non-conventional water saving appliances and fixtures, document the water savings from the retrofit, and have an independent third party verify the water savings (Rule 25.5d). In the past ten years, there have been less than ten applications for credit under this provision of Rule 25.5.

This item was discussed at the Rules and Regulations Committee on June 29, 2009. After discussion, the committee referred the item to the Board. The Water Demand Committee reviewed the credit issue at its April 13, 2009 meeting and referred the item to the full Board for discussion.

RECOMMENDATION: Staff recommends the Board direct staff to proceed with development of the Conservation Regulation revision despite the associated reduction in the availability of Water Use Credits. Clarifications regarding the attached outline of the conservation revisions are also requested by staff at this time (Exhibit 17-A).

BACKGROUND: On October 30, 2003, the Board directed staff to develop two conservation ordinances to expand the District’s baseline conservation requirements. One conservation ordinance was to establish additional baseline conservation measures for indoor water use, and the other would establish landscape regulations that embody baseline measures for outdoor water use. The draft landscape ordinance will be considered as a separate ordinance later in 2009 or early in 2010.

Reducing demand and conserving water through high water efficiency technology is a long-term goal of the District, and the District’s success at conservation has been widely recognized. In 1984, the District adopted a goal to save 15 percent by the year 2020. The conservation goal contemplated achievement of the 15 percent reduction in per-capita water use through its Ultra-Low Flush Toilet rules and other conservation programs such as wastewater reclamation. Through the years, the District has promoted and expanded its conservation program and currently experiences water production levels far below the anticipated 2020 water use expected in 1984.

Since 1984, a number of unanticipated actions have impacted local water conservation goals. The 1988-1991 drought, the State Water Resources Control Board Order No. 95-10, and the Seaside Adjudication all resulted in the need for increased voluntary and regulatory conservation measures. The regulatory restrictions in this area are ongoing and are becoming more stringent. New requirements for water savings, such as the 20x2020 mandate currently under consideration in the State Legislature, will require further efficiency. As a result, the District’s 1984 conservation goal has essentially been replaced with current restrictions and ongoing need for efficient use of water and energy.

EXHIBITS

17-A Outline of Proposed Regulation XIV Revisions

17-B Table 4: Ultra-Low Consumption Appliance Credits

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