EXHIBIT 2-A

 

First Reading Revised Draft

 

ORDINANCE NO. 146

 

An Ordinance of the Board of Directors

of the

Monterey Peninsula Water Management District

Tolling the Expiration Date of

Affected Water Use Credits

Upon Implementation of A

California Public Utilities Commission Ordered Moratorium

 


FINDINGS

 

1.                  The Monterey Peninsula Water Management District (MPWMD) is charged under the Monterey Peninsula Water Management District Law with the integrated management of the ground and surface water resources in the Monterey Peninsula area.

 

2.                  MPWMD has general and specific power to cause and implement water conservation activities as set forth in Sections 325 and 328 of the Monterey Peninsula Water Management District Law.

 

3.                  On May 24, 2010, California American Water (CAW) filed an Application for an Order Authorizing and Imposing a Moratorium on Certain New or Expanded Water Service Connections in its Monterey District (A1005020) with the California Public Utilities Commission (CPUC).

 

4.                  In August 2010, MPWMD staff met with representatives of the parties involved in CAW’s request for a moratorium to comply with the State Water Resources Control Board (SWRCB) Cease and Desist Order 2009-0060 (CDO).  The CPUC CAW’s moratorium request is calendared for consideration on February 24, 2011. 

 

5.                  Water Use Credits (Rule 25.5) are documented when (1) there is a Permanent Abandonment of Use, or (2) following the installation of Ultra-Low Water Use Technology not required by the District.  The credit process allows the reuse of the reduced increment of water on the same Site for up to ten years.  Credits may be transferred to other Sites pursuant to Rule 28.

 

6.                  This ordinance addresses the potential effects of a moratorium on Sites that have a Water Use Credit by extending the credit’s expiration date if it is subject to a moratorium.

 

7.                  The District’s Expanded Water Conservation and Standby Rationing Plan allows extending the expiration date for Water Use Credits in Stages 6 and 7, but the plan does not consider a moratorium enacted in earlier stages.

 

8.                  This ordinance amends Rule 25.5-C to clarify that the review of the status of a Water Use Credit prior to an extension may include additional criteria.  This is done by replacing the abbreviation for id est (i.e. or “that is”) with exempli gratia (e.g. or “for example”) to allow newly adopted requirements to be considered at the time that an extension is requested.

 

9.                  This ordinance amends Rule 25.5 to expire Water Use Credits upon the date mandated by the District, State, or Federal conservation program.  This action ensures that water savings resulting from District, State and Federal water conservation programs will contribute to reduced demand rather than resulting only in offsets of new demand.

 

10.              This ordinance adds Rule 25.5-K to toll the expiration of a Water Use Credit during a moratorium that precludes the use of that credit.  The credit is then extended after the moratorium is lifted.  Reinstated Water Use Credits shall have the same value and remaining term as available on the date of tolling. 

 

11.              This ordinance was reviewed and supported by the Water Demand Committee on ______________________.

 

12.              This ordinance is subject to the California Environmental Quality Act (CEQA) and is adopted with a Mitigated Negative Declaration.

 

NOW THEREFORE be it ordained as follows:

 

 

ORDINANCE

Section One:               Short Title

 

This ordinance shall be known as the 2012 Water Use Credit Extension Ordinance of the Monterey Peninsula Water Management District.

 

Section Two:              Statement of Purpose

 

This ordinance is enacted to extend the termination of Water Use Credits documented before and during the California Public Utilities Commission (CPUC)-ordered moratorium (D.11-03-048) and the State Water Resource Control Board’s (SWRCB) Cease and Desist Order (CDO) against California American Water.  Both rulings limit the use of a Water Use Credit, restricting the ability of the holder to reuse water saved through non-mandated reductions in use as allowed by District Rule 25.5. 

 

 

Section Three:           Amendment of Rule 25.5-B to Expire Water Credits and Water Use Credits When Mandated by District or State Law

 

B.        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 Credit or Water Use Credit.   Water Credits and Water Use Credits shall expire upon the date that installation or purchase of a water efficient fixture or retrofit that is the basis for a Water Use Credit becomes mandated for that Site by any District, State or Federal conservation program or action.  Such savings shall be set aside as permanent water conservation savings essential to maintaining the District’s 15 percent conservation goal approved by the Board in March 1984.

 

Section Four:             Amendment of Rule 25.5-C to Expand the Level of Review Prior to Extending a Water Use Credit

Rule 25.5-C shall be amended as shown in bold italics (bold italics) and strikeout (strikethrough).  No changes are proposed for Rule 25.5-A and B or to Rule 25.5-D through J.

 

C.        A Water Use Credit may be applied to and shall allow future water use on that Site at any time within a period of 60 months.  After the 60th month, the General Manager shall allow renewal of this Water Use Credit only upon verification that some or all water savings represented by that credit are current (i.ee.g. no Water Permit or other use or transfer of the Water Use Credit has occurred and no mandate has expired the Water Credit).  If all savings are not current, a pro-rata reduction shall occur.  A single renewal period of 60 months shall be allowed; thereafter any remaining unused Water Use Credit shall expire. 

 

Section Five:  Extension of Water Use Credits During a Moratorium

 

Rule 25.5-K shall be added to Rule 25.5 as shown in bold italics (bold italics).

 

K.                 When the enactment of a moratorium limits the use of valid Water Use Credits, the expiration shall be extended for the duration of the moratorium, and shall further be extended beyond the moratorium by the length of time that remains in its term.  However, this provision shall not apply to Water Use Credits that expire as a result of a mandated District, State or Federal conservation program or action.

 

Section Six:          Publication and Application

 

The provisions of this ordinance shall cause the amendment and republication of Rules 25.5 to the permanent Rules and Regulations of the Monterey Peninsula Water Management District. 

 

Section Seven:      Effective Date

 

This ordinance shall be given effect at 12:01 a.m. thirty days following adoption after second reading. 

 

Section Eight:      Sunset

 

This ordinance shall not have a sunset date.

 

Section Nine:     Severability

 

If any subdivision, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or of any other provisions of the Monterey Peninsula Water Management District Rules and Regulations.  It is the District’s express intent that each remaining portion would have been adopted irrespective of the fact that one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.

 

On motion of Director __________, and second by Director __________, the foregoing ordinance is adopted upon this ____ day of _________, 2012, by the following vote:

 

AYES:                       

 

NAYS:                       

 

ABSENT:                  

 

I, David J. Stoldt, Secretary to the Board of Directors of the Monterey Peninsula Water Management District, hereby certify the foregoing is a full, true, and correct copy of an ordinance duly adopted on the ____ day of _____________, 2012.

 

Witness my hand and seal of the Board of Directors this ________ day of ________, 2012.

 

________________________________

                                                                                    David J. Stoldt, Secretary to the Board

 

 

 

 

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