ITEM:		ACTION ITEMS
22.	RECEIVE AND DISCUSS PUBLIC COMMENT ON DEVELOPMENT OF AN ORDINANCE THAT WOULD AMEND REGULATION XIV, WATER CONSERVATION
Meeting Date:			September 21, 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 Review: Yes
Committee Recommendation: Water Demand Committee unanimously recommended approval of the ordinance. The Technical Advisory Committee and the Policy Advisory Committee recommended further public review before first reading.
CEQA Compliance: Exempt. Intensification of existing regulatory requirements is not a project under CEQA. Notice of Exemption to be filed upon adoption.

SUMMARY: Attached as Exhibit 22-A is a draft ordinance that amends the District conservation program to revise water conservation requirements for new construction and to modify and enhance mandatory retrofit requirements related to transfers of ownership, changes in use, and modifications to existing uses that trigger a water permit. The proposed ordinance also adds significant water saving retrofits for non-residential uses that are to be achieved over a period of several years with financial assistance through the rebate program.

The current Regulation XIV was adopted in July 1987 as Ordinance No. 30, implementing one of the first toilet retrofit upon resale programs in the country. Since 1987, it is estimated that the District’s retrofit on resale program has permanently reduced water demand by approximately 677 acre-feet per year. Additional savings have been achieved through showerhead and faucet aerator replacements and through new construction requirements. The last significant revisions to the program were done in 1990 and 1997. In 1990, an amendment deleted an exemption to the retrofit requirement for 3.5 gallons per flush toilets. In 1997, a requirement to retrofit toilets in visitor-serving commercial facilities was added. The existing regulation is outdated in both language and technology, and does not reflect the ongoing water supply issues experienced by the Monterey Peninsula and the state.

The proposed ordinance updates the District’s conservation standards and is forward-thinking and in keeping with the District’s goal to be a leader in water conservation. The proposed amendments are being required through state legislation, are considered Best Management Practices by the California Urban Water Conservation Council, or have been identified as significant areas of water use and potential conservation (i.e., washing machines, pre-rinse spray valves, cooling towers, outdoor irrigation). Water saved through conservation requirements reduces the amount of water needed to serve the community, contributes to community compliance with regulatory restrictions and, provides improved environmental conditions.

This item is being brought to the Board in September 2009 for review only. The Policy Advisory Committee (PAC) and the Technical Advisory Committee (TAC) reviewed the draft ordinance on September 3, 2009, and requested that the first reading be delayed for a month to allow further public involvement. The elements of the ordinance have been provided in outline form (Exhibit 22-B) and in a table (Exhibit 22-C) to various community interest groups, including the Monterey County Hospitality Association, the Monterey Commercial Property Owners Association, the Monterey County Association of Realtors, National Association of the Remodeling Industry, and the Monterey Peninsula Chamber of Commerce, Pacific Grove Chamber of Commerce, and the Builder’s Exchange of the Central Coast. The amendments will continue to be reviewed by various local interests and will be presented for first reading on October 19, 2009.

During last month’s Board hearing on the draft ordinance, staff pointed out that the proposed conservation requirements will have an impact on the availability of Water Use Credits. 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. Use of the credit process cancels out both the potential increase in demand and the water savings resulting from the retrofit. The revisions to Regulation XIV, Conservation, will eliminate the availability of certain Water Use Credits in the situations shown on the following table. The fixture unit value of the credit associated with each appliance is also included:

Availability of Water Credit 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) (0.4 fixture unit[1] credit)	No Credit	No Credit	No Credit	N/A	No Credit
Ultra Low Consumption Dishwasher (0. 5 fixture unit credit)	No Credit	No Credit	Credit Available	Credit Available	Credit Available
Ultra Low Consumption Washer (0.5 – 1 fixture unit credit)	No Credit	No Credit	Credit Available	Credit Available	Credit Available until 2013
Instant-Access Hot Water System (0.5 fixture unit credit)	No Credit Under Current Regulations	No Credit Under Current Regulations	No Credit	Yes	Possibly

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. Water Use Credits for Non-Residential uses will continue until a retrofit is triggered by Regulation XIV.

In addition to review by the PAC/TAC, this item has been discussed at both the Water Demand Committee and the Rules and Regulations Committee. The Water Demand Committee has recommended that the ordinance be adopted by the Board. The ordinance will be exempt from California Environmental Quality Act (CEQA) review as it does not constitute a “project” under CEQA.

RECOMMENDATION: Staff recommends the Board direct staff to prepare the draft ordinance for first reading on October 19, 2009.

BACKGROUND: The Board directed staff to develop two conservation ordinances to expand the District’s baseline conservation requirements, with one ordinance establishing additional baseline conservation measures, and the other establishing landscape and outdoor water use regulations. The draft landscape ordinance will be prepared as a separate ordinance for future Board consideration.

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. The District’s 1984 conservation goal has been achieved as evidenced by compliance with current regulatory restrictions.

Since 1984, a number of unanticipated actions have impacted local water conservation goals. The 1987-1991 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

22-A Draft Ordinance No. XXX

22-B Outline of Proposed Regulation XIV Revisions

22-C Table of Program Elements and Triggers

U:\staff\word\boardpacket\2009\20090921\ActionItems\22\item22.doc

---

[1] One fixture unit is equal to 0.01 acre-feet of water. A typical bathroom under current regulations consists of 4.7 fixture units.