WATER DEMAND COMMITTEE
5.	DISCUSS DEVELOPMENT OF POLICY REGARDING HIGH EFFICIENCY TOILETS AND ISSUANCE OF WATER USE CREDITS
Meeting Date:		March 26, 2010	Budgeted:	N/A
From:		Darby Fuerst,	Program/
		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: Prior to first reading of Ordinance No. 142 in 2009, the Water Demand Committee discussed the impacts to the District’s water credit program if new conservation requirements, such as requiring High Efficiency Toilets (HET), were implemented. At that time, the committee recommended that the ordinance be bifurcated, removing sections that affected the availability of residential water credits and leaving the existing standards. The committee reasoned that there was no immediate need to disallow the reuse of water savings.

The following proposed conservation requirements were deferred for later discussion:

• HETs in New Construction, Residential and Non-Residential Change of Ownership, Change of Use, and Expansion of Use
• High Efficiency Dishwashers (HED) in Residential New Construction
• High Efficiency Clothes Washers (HECW) in Residential New Construction
• Instant-Access Hot Water Systems (IAHWS) in Residential and Non-Residential Changes of Use and Expansions of Use when the remodel project involves hot water.

DISCUSSION: There are arguments that can be made on both sides of the District’s practice of allowing the water saved through certain retrofits and appliance installations to be used to offset the water demand associated with a Water Permit. In the following paragraphs, staff has attempted to lay out the arguments to provide the background information necessary to foster discussion of this topic.

Supportive of Allowing Use of Water Credits

As less and less water is available in each jurisdiction’s allocation, Water Use Credits and On-Site Water Credits (Rule 25.5) are essentially the only means to add water fixtures in a home or to expand the square-footage or use in a Non-Residential use. Residential credit is based on the fixture unit value and a specific list of water fixtures available for credit and their value is listed in Table 4: Ultra-Low Consumption Appliance Credits. Non-residential credit must be documented through a more rigorous procedure outlined in Rule 25.5-F-4-d. Both practices are based on quantified and permanent demand reductions that can be used to offset any intensification caused by the remodel. Because of limitations in data available to the District, the long-term accuracy of these savings assumptions is not available. Actual water savings could be greater (or less) than expected.

At this time, District water credit values currently do not provide enough water to offset an added bathroom (4.3 fixture units) unless the home already has six toilets that can be replaced with HETs. To accomplish the addition of a single bathroom, the Water Permit applicant would have to be able to replace six toilets with HETs, and replace one washing machine, one dishwasher and install an IAHWS. The addition of a bathroom can also be accomplished if the existing home has a master bathroom (i.e., one with two sinks and a large bathtub installed prior to 1996). The District also allows the addition of a second bathroom in a single family dwelling as a matter of convenience without requiring offsets or water from a jurisidicton’s allocation. The following summarizes the majority of Water Permits currently being issued:

• Master Bathroom
• Powder room
• Remodels that split water credits between two lots to allow construction
• Second bathrooms

Rule 25.5-B disallows Water Use Credits for water savings resulting from mandatory District programs, including water savings resulting from the fixtures/appliances required by the District’s New Construction, Remodel/Addition, Change of Ownership and Change of Use retrofit requirements. Rule 25.5-B is quoted below:

“Water savings resulting from mandatory District programs, including water savings resulting from the installation of Low Water Use Plumbing Fixtures Mandated by the District, shall not result in a Water Use Credit. Such savings shall be set aside as permanent water conservation savings essential to the District’s 15 percent conservation goal approved by the Board in March 1984.”

Expanding the water conservation requirements shown in the document summary eliminates 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) until 2014 (0.4 fixture unit[1] credit)	No Credit	No Credit	No Credit	N/A	No Credit
High Efficiency Dishwasher (0. 5 fixture unit credit)	No Credit	No Credit	Credit Available	Credit Available	Credit Available
High Efficiency Clothes Washer (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

Supportive of Not Allowing the Use of Water Credits

On the opposite end of the spectrum is a case supporting the District’s conservation program as a means to achieve demand reductions to achieve current regulatory goals and restrictions and to extend supply in the event of physical limitations, such as drought or supply emergencies. Since the credit discussion began last April (2009) at the Water Demand Committee, two legislative actions have occurred that may sway the argument to expand the conservation requirements to include HETs, HECWs, HEDs and IAHWS. First, the State Water Resources Control Board (SWRCB) adopted a Cease and Desist Order (CDO) against California American Water and, second, the Department of Water Resources (DWR) released its final 20x2020 Water Conservation Plan.

Although currently suspended by a court-imposed stay, the SWRCB CDO states, “…water saved by retrofitting properties should be used to reduce Cal-Am’s diversions from the river.” The CDO goes further to state, “MPWMD’s regulations to encourage conservation, the reduction in losses within Cal-Am’s water system, and other measures can offset modest reductions without presenting a threat to public health and safety.” These statements imply that water saved should not be reused to offset expanded use.

The DWR 20x2020 Water Conservation Plan relies heavily on the water savings from HETs and HECWs (along with landscaping and irrigation improvements and habit changes) to achieve the state-wide conservation goal. The installation of these fixtures contribute to reductions in water-related energy demands and greenhouse gas emissions, delay capital cost of new infrastructure to treat and deliver water, and are conservation measures adopted by the California Urban Water Conservation Council. Implementation of the 20x2020 program is mandatory in the California American Water system. Staff is evaluating the 20x2020 calculations as they apply to water use within the California American Water system.

In a September 2009 letter, the Regional Water Quality Control Board[2] stated, “It could also be argued that using water offsets generated from conservation efforts for new connections or development sufficiently mitigates additional significant cumulative impacts. This argument is flawed because it ignores the real problem and provides no incentive for the communities within Monterey Peninsula and Carmel Valley to develop the alternative water supplies needed to mitigate the existing significant cumulative impacts to the public trust resources of the Carmel River and Lagoon as a result of overdrafting the Carmel Valley Alluvial Aquifer.” This statement suggests that allowing water credits to offset construction promotes acceptance of the current water situation, despite the need to reduce pumping in the Carmel River.

Finally, to support local water conservation programs during the period of 2009-2011, the District and California American Water received California Public Utilities Commission (CPUC) approval for funding of around $3 million to reduce water use. The CPUC-approved programs were approved with a savings goal of 3-6% per customer, or a total consumption reduction of 397-794 acre-feet over the period of 2009-2011. The programs being initiated using the PUC-approved funding are intended to achieve water use reductions and must not result in a “credit” that can be used to expand use. The District’s continued endorsement of on-site credits discourages participation in these significant programs, programs that are designed to contribute to community water savings, thereby reducing the area’s dependence on unpermitted water supplies and enabling the area to manage with less water.

The SWRCB Cease and Desist Order, the DWR 20x2020 Water Conservation Plan, correspondence from the Regional Water Quality Control Board, and the water conservation budget adopted by the CPUC all clearly support ongoing and expanding water conservation programs on the Monterey Peninsula and discourage reuse of the saved water. It is apparent from these sources that the reuse of water savings should be discontinued and that expansion of conservation activities (including expanding the new construction and retrofit requirements) should be pursued.

Staff offers the following options for consideration:

1. The District could support the position that any reduction in demand is a benefit to the community and the environment, and that savings resulting from mandated conservation programs should not be reused to offset potential increases in demand. This would not change the District’s policy allowing for modest expansions, such as the second bathroom protocol or trading one water fixture unit for another.

2. The District could allow the reinvestment of water savings as it has, despite increased calls for conservation and efficiency, acknowledging that modest expansions contribute to the economic well-being of the community.

3. The District could implement new programs that would allow individuals and groups to contribute to community conservation programs to offset modest expansions. A modest expansion would have to be defined, but could be something such as a single bathroom that would be offset with “community water credits.” Three programs to consider are (1) fund a HECW program where HECW are provided at no cost to lower income residents (saves water and energy and lowers the low-income occupant’s cost for water); (2) fund a low income retrofit program where an installation team could replace inefficient water fixtures at no cost (same savings as #1); (3) fund high impact local programs, such as stand pipes to provide Subpotable water supply for civic uses, dust control, soil compaction and irrigation or a direct-install program for rain sensors or HETs.

RECOMMENDATION: The Water Demand Committee should discuss the items summarized above and provide direction to staff.

BACKGROUND: 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 SWRCB Order No. 95-10, and the Seaside Adjudication all resulted in a 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 conservation mandate, will require further efficiency. As a result, the District’s 1984 conservation goal has essentially been replaced with current restrictions and the ongoing need for the efficient use of water and energy.

EXHIBITS

None

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[1] One fixture unit is equal to 0.01 acre-feet or approximately 3,260 gallons of water. A typical bathroom under current regulations consists of 4.7 fixture units.

[2] September 8, 2009 response by Roger Briggs, Executive Office, California Regional Water Quality Control Board, Central Coast Region, to Initial Study and Notice of Intent to Adopt a Mitigated Negative Declaration for the Rancho Del Robledo Water Distribution System in Carmel Valley.