1 EASTERN MUNICIPAL WATER DISTRICT Drought Response Elizabeth Lovsted, PEJolene Walsh Dr. Civil EngineerSr. Director of Public & May 8, 2015Governmental Affairs

2 Presentation Outline Drought Conditions Statewide Response EMWD Current Drought Response Implementation of Water Shortage Contingency Plan (WSCP) Stage 4a: Mandatory Outdoor Reduction Proposed Revisions to the Administrative Code Outreach Plan Revenue Impacts & Dedication Monitoring and Reporting Recommended Actions

3 Statewide Drought was 7th driest and the 9th hottest year on record (137 years) 80 percent of state in extreme or exceptional drought Snowpack is now only 6% of average. Major reservoirs throughout California are at or below normal California Department of Water Resources (DWR) restricting water diversions Colorado River watershed snowpack average in 2014, 63% of average in 2015 Below Average Runoff from Northern Sierra in Eight of Last 10 Years

4 State Drought Response Timeline Jan 17, 2014: Governor Brown declares a drought emergency (call for voluntary conservation) Apr 25, 2014: Second executive order asking for redoubling conservation efforts (voluntary) Jul 29, 2014: State Water Resources Control Board (SWRCB) implements Emergency Water Conservation Regulations (mandatory) Mar 27, 2015: SWRCB expands Emergency Water Conservation Regulations Apr 1, 2015: Governor’s Executive Order mandating 25% statewide conservation. May 5, 2015: SWRCB adopts new Emergency Water Conservation Regulations

5 Executive Order April 1, 2015: Governor issued an Executive Order to cut water use statewide by 25% o Orders State Board to develop regulations to impose restrictions relative to amounts used in 2013, based upon relative GPCD o Prohibits using potable water for public median irrigation o Prohibits irrigation for new construction unless using drip or microspray o Provides turf removal and appliance rebate incentives

6 State Board Emergency Regulation State Water Resources Control Board Approved Regulations on May 5, 2015 Additional end-user water waste prohibitions: o The irrigation with potable water of ornamental turf on public street medians; and o The irrigation with potable water of landscapes outside of newly constructed homes and buildings that is not delivered by drip or microspray systems

7 State Board Emergency Regulation Mandatory Actions by Water Suppliers: o Promptly notify customer of leaks o Monthly reporting on: Water use – including information about residential, commercial, industrial and institutional use Population Conservation compliance and enforcement efforts o Prevent the waste and unreasonable use of water and meet the requirements of the Governor’s April 1, 2015, Executive Order, by reducing total potable water production by the percentage identified as its conservation standard in this subdivision.

8 State Board Emergency Regulation “Conservation Standard” based on: o Simplistic sorting of agencies using three months of 2014 (July-Sept) self-reported residential GPCD Hottest, driest months o Agencies assigned into groups ranging from 8% to 36% required reductions Eastern is required to reduce potable water demand by 28% compared to 2013

9 State Board Emergency Regulation EMWD Letters – April 13, April 22, and May 4, 2015 Comment on Deficiencies in the Proposed Regulation/Framework o No credit is provided to agencies who achieved significant conservation savings prior to 2013 o The GPCD data is not adjusted for climate or housing density o The base year/month is arbitrary o No credit is provided for drought-proof supply development, including recycled water Local agencies provided a more credible quantitative model that still achieves a 25% statewide savings.

10 Metropolitan Water Supply Allocation April 14, 2015: Metropolitan Board triggered Level 3 of its Water Supply Allocation Plan, effective July 1, 2015 o Resulting cuts of ~15% in MWD water o Penalties for going over allocation (above $923 tier 1 rate) % = $1,480/AF +115% = $2,960/AF Due to credits for demand hardening and mandatory conservation measures, EMWD should not experience any financial penalties under the WSAP Level 3

11 EMWD Drought Response Timeline March 26, 2014: Revise WSCP and Administrative Code April 16, 2014: Implement WSCP: Stage 2 Supply Alert (call for 20% voluntary conservation) August 20, 2014: Implement WSCP: Stage 3a Mandatory Waste Reduction o Limit variances for outdoor use Mandatory outdoor restrictions are always in place

12 Administrative Code, Title 5, Article 6 Specific water requirements: o Prohibits hosing down hard surfaces o Requires leaks repaired within 48 hours o Irrigate between 9 p.m. and 6 a.m. o Limits irrigation times to 15 minutes o Must operate irrigation systems to avoid runoff o No decorative fountains without recycling system o Do not let water run while washing vehicles o Install low-water demand landscapes without non- functional turf o Refrain from watering during rain Fines in place for water runoff

13 Proposed Drought Response Focus on outdoor irrigation Implement WSCP Stage that: o Sends a strong pricing signal to end water waste o Communicates the benefits of outdoor efficiency Especially turf replacement o Gives customers the opportunity to meet reduction targets without applying overly harsh penalties Report results monthly o Consider additional actions in September 2015

14 Stage 4a: Mandatory Outdoor Reduction Mandatory reduction of outdoor water use – simple messaging: Cut outdoor use by 50% Enforcement for tiered customers o Tier 3 allocation is eliminated o Tier 2 allocation reduced by 10% Customer impact will vary depending on conservation efforts Implementation o Effective immediately o Changes will appear on bills dated on or after July 1, 2015

15 Example of Customer Impact Customer 1 (Wasteful)Customer 2 (Efficient) Tier Usage (BU) Water Rate Water Cost Tier Usage (BU) Water Rate Water Cost Without Stage 4 Indoor8$1.79$14.34 Indoor8$1.79$14.34 Outdoor13$3.28$43.28 Outdoor11$3.28$36.08 Excessive9$5.88$52.91 Excessive$5.88$0.00 Wasteful$10.76$0 Wasteful$10.76$0.00 Total$ Total$50.42 With Stage 4 Indoor 8 $1.79$14 Indoor8$1.79$14.34 Outdoor 12 $3.28$39 Outdoor11$3.28$36.08 Excessive$5.88$0 Excessive$5.88$0 Wasteful 10 $10.76$108 Wasteful$10.76$0 Total$161 Total$50.42

16 Administrative Code Revisions Proposed changes include: o Incorporating End-Use Requirements in Promotion of Water Conservation from SWRCB Emergency Regulations by reference: Article 22.5 Sect. 863 (a) and (b) o Reducing default conservation factor (CF) to 0.5 o Applying landscape requirements to both potable and recycled customers o Temporary changes to CF can be applied to establish or maintain water efficient landscape

17 SWRCB End- User Requirements The application of potable water to outdoor landscapes in a manner that causes runoff; The use of a hose that dispenses potable water to wash a motor vehicle; The application of potable water to driveways and sidewalks; The use of potable water in a fountain or other decorative water feature, except where the water is part of a recirculating system; The application of potable water to outdoor landscapes during and within 48 hours after measurable rainfall; The serving of drinking water other than upon request in eating or drinking establishments; The irrigation with potable water of ornamental turf on public street medians; The irrigation with potable water of landscapes outside of newly constructed homes and buildings in a manner inconsistent with regulations or other requirements established by the California Building Standards Commission; and To promote water conservation, operators of hotels and motels shall provide guests with the option of choosing not to have towels and linens laundered daily.

18 Revisions to Conservation Factor Current default Conservation Factors Proposed 0.5 CF requires plants on drip with very little turf CF could be adjusted for justified functional turf purposes only with pre-approval from EMWD Proposed revision support emergency and long term efforts to reduce outdoor irrigation. Accounts installed:Conservation Factor: Prior to September 1, September 1, 2008 through December 31, After December 31,

19 Revenue Impacts of Stage 4 Staff created a working model to simulate the impacts of moving into additional stages of the WSCP. At Stage 4a, we expect to be revenue neutral at best. At Stage 4b, we may expect some additional penalty revenues, but that will depend on customer response and timing. Recommendation: Dedicate any annual penalty revenue in excess of annual budgeted water commodity revenue to fund conservation program augmentation, including, but not limited to: o Turf removal assistance and other rebate augmentation; o Additional outreach and consulting services to support Stage 4; and o Temporary supplemental staffing for Conservation and Customer Service.

20 Key Messages “Let’s Get Serious About the Drought” o EMWD is asking customers to reduce outdoor irrigation 50 percent o Effective Jun. 1, 2015, EMWD will move into Stage 4 of its Water Shortage Contingency Plan o Encourage customers to embrace the “new” Southern California landscape

21 Customer Outreach Direct Mail: o Letter to each customer in tiers 4, 3, and high-use in tier 2 Collateral Materials: o Special drought newsletter May/June o Drought status brochure/fact sheet o July newsletter article o Consumer Confidence Report ad o Special bill insert o Bill messages o Bill estimator o Cable TV slides o Telephone on-hold messaging o Lobby recorded messaging o eBill messaging – pop up ad, banner ad, with info links

22 Customer Outreach Media outreach, press releases o May 6: SWRCB action o May 8: EMWD Board action o June 1: Now effective Website, social media, eBlasts coincide with: o Board action/drought fact sheet Special drought newsletter o Now effective

23 Key Communities Workshops Jun. 2: Public Agency workshop o Cities, Valley Wide, county, etc. Jun. 11: Stakeholder workshop o Chambers, BIA, etc. Jun. 13: Residential Landscape workshop o Customers Jun. 19: Inland Empire Legislative Caucus o State Assembly, State Senate, and Members of Congress

24 Internal and Complementary Campaigns Staff Education o Talking points updated and posted o Staff briefing – customer service o Pipeline announcements Complementary Campaigns o Recycled water signage campaign o Turf removal o MWD’s conservation campaign o Joint campaign with Rancho California Water District: Billboards Gas pump toppers Mall ads Mobile billboards Movie ads Social media

25 Monitoring and Reporting Monthly reports to the Board on progress relative to State Board Emergency Regulations to include: o Water use compared to 2013 o Conservation activity o Water use by customer type and number of customers by tier September 2015: Review of compliance conditions and potential next steps: o Consider implementation of Stage 4b of WSCP o Other actions under Administrative Code

26 Recommendations Approve and authorize the implementation of “Stage 4a: Mandatory Outdoor Reduction” of the Water Shortage Contingency Plan as detailed in Article 10 of Title 5 of the Administrative Code; Direct staff to monitor and report to the Board on conservation effectiveness relative to State Board Emergency Regulations and recommend, as needed, Implementation of Stage 4b or other actions under the District’s Water Shortage Contingency Plan and Administrative Code; Adopt a proposed Resolution Revising Title 5, Article 6 Water Conservation of the Eastern Municipal Water District Administrative Code; and Approve the dedication of any revenue in excess of annual budgeted water commodity revenue to fund conservation program augmentation.

27 Contact Information EASTERN MUNICIPAL WATER DISTRICT Elizabeth Lovsted, PE Senior Civil Engineer ext