1. Paying for TMDL Compliance – Different Approaches From Around Southern California Southern California Water Dialogue Group February 28, 2007

2. Irvine Ranch Water District 1 Outline of Today’s Discussion IRWD’s Approach to Integrated Water Resources Planning and Management at the Watershed Level Unique TMDL Compliance Funding Mechanisms and Strategies Future Opportunities for Water Supply Entities and Cities

3. Irvine Ranch Water District 2 About Irvine Ranch Water District Formed in 1961 by landowners to supply water for extensive irrigation - population 300 California Water District providing: - Water - Hydroelectric -Wastewater - Recycled water -Resource management -Urban runoff management / control (Modified enabling act in 2000) Current Customer Base - Residential Population 325,000 - Daytime Population estimated 500,000 - Service Connections 93,000 Size of District -179 square miles/114,500 acres -118 square miles in San Diego Creek watershed

4. Irvine Ranch Water District 3 Approximately coincident with IRWD service area (80% of watershed in IRWD) Primary freshwater source for Newport Bay—EPA “impaired water body” 118 square miles City of Irvine and portions of: –City of Lake Forest –City of Newport Beach –City of Orange –City of Tustin –Unincorporated County 4 primary types of TMDL’s: –Nutrients (nitrogen/phosphorous) –Sediment –Pathogens –Toxics (pesticides, selenium, etc.) TMDL Compliance - San Diego Creek Watershed

5. Irvine Ranch Water District 4 Relationship Between Water Consumption and Dry Weather Flow Generation Discharge into sensitive receiving waters Dry weather runoff that carries pollutants = Over-irrigation = Example: Urban Runoff in San Diego Creek Implementing a “Cradle to Grave” philosophy Both multiple and single entity approaches

6. Irvine Ranch Water District 5 *Source: Northwood (Irvine) Residential Runoff Reduction Study, 2003 Urban Runoff Generation – Residential* SFD 5,000 FT Lot 62% 8,000 AF Runoff 10% 1,290 AF ET & I 28% 3,610 AF 1,150,000 Gallons Per Day 12,900 AF/YR Average O.C. Water Agency/Dept 30 agencies/depts.

7. Irvine Ranch Water District 6 Urban Runoff and TMDL Compliance Partnerships – Where Does IRWD Fit? Santa Ana Regional Water Quality Control Board (Region 8) County of Orange Principal Permitee Lake Forest City Co-Permitee Newport Beach City Co-Permitee Orange City Co-Permitee Tustin City Co-Permitee Irvine City Co-Permitee Permittee Compliance Mechanisms Education/Training/ Inspections Development/Construction Standards Water Quality Monitoring Local structural BMP’s Runoff management and Source Control (Conservation and demand management) Watershed-wide Treatment BMP’s IRWD’s TMDL Management Strategies

8. Irvine Ranch Water District 7 Urban Runoff Management and Source Control Strategy #1: Water Conservation and Demand Management TMDL Compliance Strategies

9. Irvine Ranch Water District 8 Allocation-Based “Conservation” Rate Structure Basic Premise: Allocate water to customers based upon land use- specific indoor uses and landscaping needs Encourage use within allocation through a significantly tiered commodity pricing system Over-use generates “penalty” revenue to fund TMDL Compliance Activities: – Source Control (water conservation programs, incentives and education) – Urban runoff treatment

10. Irvine Ranch Water District 9 TIER BREAK POINT RATE (% of Allocation) ($/ccf) Low Volume 0 - 40% $0.75 Base 41-100% Base rate$0.91 Inefficient 101-150% 2x base$1.82 Excessive 151-200% 4x base$3.64 Wasteful 201+% 8x base$7.28 100% of water needed for indoor/ outdoor uses Typical Residential Fixed Charge = $6.75/month (3/4” meter) Allocation-Based Rate Structure

11. Irvine Ranch Water District 10 Sample Residential Water Billing - Overuse 8/10/06 9/09/06 1255 1337 82 CCF USAGE - LOW VOLUME DISCOUNT 16 0.75 $12.00 USAGE - CONSERVATION BASE RATE 23 0.91 $20.93 USAGE - INEFFICIENT 20 1.82 $36.40 USAGE - EXCESSIVE 19 3.64 $69.18 USAGE - WASTEFUL 4 7.28 $29.12 WATER SERVICE CHARGE $6.75 YOUR ALLOCATION FOR THIS BILL 39 CCF BILL CALCULATION BASED ON 0.12 ac. / SFD TO AVOID LATE CHARGE PAY BEFORE 10/07/06 $174.38 Over allocation use pays penalty rates, discourages overuse Commodity Within Allocation$ 32.93 20% Commodity Above Allocation$134.70 80%

12. Irvine Ranch Water District 11 Determining Appropriate Allocations Single Family Detached House (4 occupants) Outdoor Allocations Irrigated area seasonal needs (Eto) Variances Pool Additional occupants Medical needs Others (equestrian, etc.) + +

13. Irvine Ranch Water District 12 Landscape Allocation Allocation based on landscaped area and real time evapotranspiration –Cool season turf –Irrigation system efficiency - 80% IRWD has three weather stations Central Coastal Foothill

14. Irvine Ranch Water District 13 Results: Rate Structure Reduces Water Use Since Rates Adopted in 1991: –Average water use dropped from 3.5 ft./acre To 1.9 ft./acre –Stabilization of dry weather runoff –Changes in plant material selection - more “California Friendly” landscaping From 1992 to 2000: –Irrigated area doubled –Water use increased by 3%

15. Irvine Ranch Water District 14 Water Conservation – Landscape Programs Landscape Water Management Report Card “Fall Campaign” (Postcard reminders) Residential Education / Workshops Protector del Agua Landscape Certification Program New Programs Artificial Turf Replacement Weather Based Irrigation Controllers “California Friendly” landscaping

16. Irvine Ranch Water District 15 IRWD Residential and Landscape Water Usage Water Conservation Programs

17. Irvine Ranch Water District 16 Per Capita Water Consumption Comparison Source: California Urban Water Conservation Council, 2002

18. Irvine Ranch Water District 17 Urban Runoff Management and Source Control Strategy #2 Watershed-wide Structural BMP’s – the Natural Treatment System TMDL Compliance Strategies

19. Irvine Ranch Water District 18 San Joaquin Marsh 320 ac. owned and managed by IRWD 68 ac. of treatment ponds 3.5 million gallons per day Removes about 70% of nitrogen from San Diego Creek (75,000 pounds per year) Removal of 50,000 tons of sediment and 10,000 pounds of phosphorus per year from desilting basins Newport Harbor Upper Newport Bay IRWD Plant (MWRP) San Diego Creek UC Natural Reserve Restored wetlands/ uplands San Joaquin Marsh N Pacific Ocean Carlson Marsh Natural Treatment System Ponds Urban Runoff Treatment Systems – Treatment Wetlands

20. Irvine Ranch Water District 19 Natural Treatment System (NTS) Expands wetlands treatment watershed-wide 71 sites considered; 31 selected Completed 4 sites, designed 10 sites, 3 sites construction award 1/2006 State/federal grant funds authorized (25%) Integral with city runoff management programs Multiple governmental, private, regulatory and community/envirnomental entity effort Urban Runoff Treatment Systems

21. Irvine Ranch Water District 20 Complex Multiple Entity Effort - NTS Inter-agency Agreements for Operating, Maintenance, Facility Use Watershed Cities -- Irvine, Lake Forest, Newport Beach, Orange, Tustin County of Orange Regulation, Permitting, MS4 Permit Authorization Regional Water Quality Control Board CDFG, USFWS, Corps, Supplemental Funding EPA, USBR, State Water Resources, Coastal Conservancy Critical Reviewers and Stakeholders Residents Environmental Community Representatives Development Standards, R/W, Construction Landowners and developers

22. Irvine Ranch Water District 21 Future Opportunities for Water Supply Entities and Cities Water Purveyor recognition of the water supply and environmental management interrelationship –Embrace a “Cradle to Grave” management and problem solving philosophy Clarification of ability to participate in TMDL compliance activities through legislation: –Add to list of services –Incentive based participation (i.e. adopt conservation rate structure, can use revenue for stormwater compliance programs)

23. Irvine Ranch Water District 22 Questions? Paul D. Jones II General Manager Irvine Ranch Water District jones@irwd.com