Urban Water Institute Spring Conference How is Conservation Going to Be a Way of Life? Who is Really in Charge? Urban Water Institute Spring Conference Feb. 9, 2018 Steve LaMar, ACWA Vice President

About ACWA Who We Represent . . . ACWA members responsible for 90% of the state’s distributed water Water Sources & Services Federal, state and local projects Surface and groundwater Agricultural, urban, industrial customers Wholesale, retail

40 million California residents Who’s Really In Charge? Fundamental disconnect between water conservation legislation and regulations Water agencies collect, distribute, and reuse water Ultimately, customers decide how much water they use 40 million California residents are in charge! Excellent Question! Answer: The 40 Million People Living in California! Appears to be a fundamental disconnect between some of the proposed water conservation legislation and regulations Water agencies collect, distribute, and reuse water Customers decide daily, monthly and annually how much water they use!

State Role in Water Conservation The State can mandate: Urban Water Management/ Water Shortage Contingency plans Conservation standards for appliances, toilets, showerheads Gallons per capita per day Monthly water use reporting for water agencies The Legislature and State agencies can mandate: Contents of Urban Water Management Plans and Water Shortage Contingency Plans Conservation standards for appliances, toilets, showerheads Gallons per capita per day Monthly water use reporting for water agencies But, actual water use is determined by water customers, not local water agencies!

Local Role in Water Conservation In the best position to help change customer behavior Understand their customers and know when and how to communicate effectively Polling shows customers trust and respond favorably to their local water provider Who Is in the Best Position to Change Water Customer Behavior Local water agencies are in constant communication with their customers Conservation only occurs if water customers understand why it is important and take steps to reduce water use Polling shows customers trust and respond favorably to their local water providers Knowing when and how to communicate required for success

Local Role in Water Conservation Using Every Tool in the Toolbox Local water agencies have increased water use efficiency significantly through: Consistent, effective messaging to customers Locally developed drought resilient supplies and supply diversification Achieving long-term water conservation objectives is dependent upon changing human behavior (Beyond changing water district behavior) (moved to previous slide) Local water agency roles: Have worked for decades to increase water use efficiency, reduce waste Requires consistent, prolonged and effective messaging to customers Use of all means: bill stuffers, websites, advertising, social media Conservation pricing Development of drought resilient supplies and supply diversification

Water Infrastructure Investments Locals Also are Investing the Most Of the $30 billion spent annually on California’s water infrastructure: 84% from local water agencies 12% from state 4% from federal Source: PPIC Graph from PPIC: $30 Billion annually for California water infrastructure 84% from local water agencies 13% from state 3% from federal Updated number to reflect PPIC numbers from “Paying for Water in California – March 2014” Requested chart was too small for graphic.

ACWA’s Position on Long-Term Conservation Success requires: Approach based upon local, real world experience Effective partnership with the state Support intent but seeking amendments to AB 1668/SB 606 to ensure success A cooperative partnership will be more effective than state mandates! ACWA fully supports long term water use efficiency We cannot conserve our way into meeting future water needs We are seeking amendments to legislation to ensure success and make implementation more effective We seek a partnership with the state that promotes buy-in by local water agencies based upon our real world experience in delivering water to 40 million customers! A cooperative partnership will be more effective than state mandates!

How Can the Legislation Be More Effective? Incentivize new storage and drought resilient projects Impacts of indoor water use targets need to be studied Clarify outdoor water use requirements and ensure data is made available before implementation Encourage and reward new storage and drought resilient projects Okay with setting indoor water use targets, but require a study of the impacts on water distribution and sewer systems, recycled and future potable reuse systems and projects Clarify outdoor water use requirements, MWELO, ET Adjustment Factor, and ensure data is made available before requiring local use Do not require actions or installations unless cost-effective for agencies and water customers Provide remedial opportunities for water agencies out of compliance before fines and penalties

How Can the Legislation Be More Effective? Ensure cost-effective solutions for agencies and customers Allow compliance period for water agencies before assessing fines and penalties Encourage and reward new storage and drought resilient projects Okay with setting indoor water use targets, but require a study of the impacts on water distribution and sewer systems, recycled and future potable reuse systems and projects Clarify outdoor water use requirements, MWELO, ET Adjustment Factor, and ensure data is made available before requiring local use Do not require actions or installations unless cost-effective for agencies and water customers Provide remedial opportunities for water agencies out of compliance before fines and penalties

Questions? Feel free to connect with me Steve LaMar, ACWA Vice President (714) 227-2869 lamar@irwd.com