1. January 25, 2106 Update http://saveourwater.com

2. Background 2015 – Fourth Year of Extreme Drought April 1, 2015 Snowpack was lowest ever recorded Risks and Impacts to Water Suppliers, Economy, Environment Governor’s April 1, 2015 Executive Order 25% Conservation Mandate May 2015 Water Board Emergency Regulation Effective June 2015- February 13, 2016 2

3. Existing Emergency Regulation 1. Prohibited water uses and other end user requirements 2. Performance standards for Urban Water Suppliers 3. Requirements for “self-supplied” Commercial, Industrial, and Institutional Users 4. Requirements for smaller suppliers 5. Reporting Requirements 6. Enforcement Provisions

4. Classification of Water Suppliers > 3000 connections: 411 urban water retail suppliers 15 – 2,999 connections: 2674 water systems (i.e., small water suppliers) 16% of Californians are served by investor-owned water utilities regulated by the California Public Utilities Commission 4

5. End User Restrictions Restaurants may only serve water on request Hotels and motels must give guests the option of not having towels and linens laundered daily and must display this option in each guestroom. Notification to customers about suspected leaks on customer premises

6. Prohibited Uses of Potable Water Irrigating turf in street medians Watering trees is important! Irrigating ornamental landscapes during and 48 after it rains Washing driveways or sidewalks Runoff from landscapes Washing cars without a shutoff nozzle Fountains that don’t recirculate

7. Meet a Conservation Standard Every urban water supplier must reduce potable water use between 8 and 36 percent per its conservation standard Summer 2014 residential gallons per capita per day (R-GPCD) used to assign conservation standards 2013 is the baseline year for measuring compliance Monthly Reporting Urban Water Suppliers have flexibility in how they achieve their conservation standard and who it is applied to. Requirements for Urban Water Suppliers

8. Requirement for Small Suppliers and Self-Supplied Businesses and Institutions Reduce potable water use by 25 percent, or Limit outdoor irrigation with potable water to no more than two days/week Small suppliers have a one-time reporting requirement

9. 9

10. 10

11. Cumulative Savings (June - November 2015) 1,009,387 acre-feet (328.9 billion gallons) of water saved This is 84% of savings goal Savings is enough to provide 5 million Californians with water for one year

12. Enforcement and Compliance: Water Suppliers Violations of prohibited and restricted activities are considered infractions and are punishable by fines of up to $500 for each day in which the violation occurs. Any peace officer or employee of a public agency charged with enforcing laws and authorized to do so by ordinance may issue a citation to the violator. A optional tool that can be used in combination with any locally derived enforcement Authority These authorities are not available to private water suppliers 12

13. Enforcement and Compliance: State Water Board Compliance assessed monthly and cumulatively Enforcement tools include: Information Orders - 108 issued Conservation Orders - 11 issued Alternative Compliance Orders - 7 issued Administrative Civil Liability Complaints – 4 issued Cease and Desist Orders 13

14. Water Supply Conditions We have accrued multiple years of water deficit Surface and groundwater storage is depleted in many areas Early precipitation has been inconsistent Much of the State is still experiencing extreme drought Too early to determine what the winter will hold Conservation remains imperative 14

15. 15

16. 16

17. DWR 8 station graph 17

18. 18 Daily Statewide Hydrologic Update Data as of Jan 23, 2016 CNRFC/DWR

19. 19

20. Concerns Raised Water Suppliers Application of the 8-36% conservation requirements: Not equitable-especially in hot dry climates Creates stranded assets Disincentive to invest drought resilient supplies Reduced revenue/funds available for infrastructure improvements and conservation programs 20

21. Recent Actions August-November 2015: Convened workgroup to develop concepts for modifying emergency regulation-if extended November 13, 2015: Executive Order B-36-15 December 7, 2015: Public Workshop December 21, 2015: Staff framework for modification to the emergency regulation January 15, 2016: Staff proposed draft emergency regulation January 22, 2016: Staff issued notice of proposed emergency regulation 21

22. Staff Proposal for Modification and Extension of Emergency Regulation Climate adjust of 2-4% depending service area evapotranspiration (ET) compared to state average Climate adjust Credit for water efficient growth since 2013 4-8% Credit for new, local, drought resilient supplies (e.g. new desalination or indirect potable re-use) All credits and adjustments capped at 8% Fact sheet (pgs 4-7) Fact sheet 22

23. Staff Proposal for Modification and Extension of Emergency Regulation Penalties for homeowners’ associations or community service organizations impeding homeowners from reducing or eliminating the watering during a declared drought emergency Defines what agricultural used may be subtracted from supplier’s potable water production total 23

24. Next Steps Comments on proposed draft emergency regulation due 12 noon on January 28, 2016 State Water Board consideration scheduled for February 2, 2016 If adopted the regulation would be in affect through October 2016, unless modified or rescinded Supplier requests for adjustments or credits due March 15, 2016 Monitor precipitation, snowpack, and water storage through the winter and early spring Make further adjustments as needed in April 2016 24

25. Kathy Frevert (916) 322-5274 Office of Research Planning and Performance Kathy.Frevert@waterboards.ca.gov http://saveourwater.com More Information: www.waterboards.ca.gov/ Emergency Regulations Portal 25