State Water Board Passes New Law, Putting Pressure on Water Agencies to Meet Environmental Goals

California State Water Resources Control Board approved a new regulation this week that imposes water conservation requirements on the state’s largest water utilities, the municipal retail water suppliers that supply 95 percent of California residents.

The new law will gradually reduce the amount of water each of the state’s 402 municipal water agencies can use between 2027 and 2040. The law does not apply to individuals or households.

Each water supply agency must establish a water budget. Then it must implement commercial, institutional and industrial efficiency measures. Finally, it must submit regular reports to the Water Board.

Water agencies have the flexibility to adapt their environmental strategies to local needs and climate. Potential penalties for noncompliance can result in the Water Board imposing civil liability of up to $10,000 on water agencies. However, the policy is full of guidance, best management practices and consulting services to help agencies meet their environmental goals.

Because of pressure to avoid rate increases, water utilities will encourage lower water use in residential and outdoor areas. They will seek to reduce water use in commercial, industrial and institutional landscapes with dedicated irrigation meters. There will be increased education and outreach, leak detection, rebates and direct installation of efficient devices or landscapes. Large green front lawns will not be the trend of California’s future.

“This is the first ordinance in the nation to use the water budget to promote conservation,” Nick Cahill, a spokesman for the Water Board, said in a statement Wednesday. “Actions already being taken by suppliers, businesses and residents, combined with the ordinance, are expected to save an estimated 500,000 acre-feet of water per year by 2040 — enough to supply more than 1.4 million homes for a year,” Cahill said.

It is not a “perfect” regulation, but a “significant” one

Complex law takes into account special circumstances.

A water supplier may apply for exemptions or additional water budgets for specific and essential uses of water, such as for raising horses and other livestock, replenishing ponds or lakes used by wildlife, evaporative cooling, and irrigating existing trees.

The law includes a premium for recycling water and a budget variance for watering existing trees. It encourages planting new trees that are adapted to climate change. Many disadvantaged communities will have an alternative path to compliance.

The new regulations came to the Legislature in 2018 after a megadrought that lasted from 2011 to 2017. Gov. Jerry Brown signed Senate Bill 606, which requires the Water Board and the state Department of Water Resources to adopt water efficiency regulations and establish requirements for water suppliers, along with detailed penalties for violations.

“The goal is to use water wisely and efficiently over the long term. So that when there’s a drought, we’re not in a reactive mode,” said Chelsea Haines, manager of regulatory relations for the Association of California Water Agencies, who has participated in workshops on the new law several years ago.

It’s not a perfect regulation. … We’ll never be able to create a perfect regulation, but it’s significant and it moves us toward a future that we can all be proud of and that will lead the country.

Water Board Chairman Joaquin Esquivel

“We had these executive orders from the governor that called for an emergency response and a one-size-fits-all approach — hey, everybody, reduce your water use by 20%. So this is an attempt to create a more long-term framework for how we can be better prepared for drought,” Haines said. “This is an attempt to create a more personalized approach that takes into account efficiency, local conditions and planning so that we are better prepared for what we know will be more frequent and longer droughts due to climate change.”

The law aligns with Gov. Gavin Newsom’s Water Supply Strategy, which aims to address a 10% shortfall in water supplies projected by 2040 due to warmer, drier weather. The plan calls for agencies to diversify the number of water sources they use, including water recycling and conservation measures.

“This is not a perfect ordinance,” Water Board Chairman Joaquin Esquivel said after Wednesday’s unanimous vote. “We will never have a perfect ordinance, but it is significant and moves us toward a future that we can all be proud of and that is nationally leading.”

The regulation is expected to enter into force on 1 January 2025.

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