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AB-1668 Water management planning.(2017-2018)

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Date Published: 04/18/2017 09:00 PM
AB1668:v98#DOCUMENT

Amended  IN  Assembly  April 18, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1668


Introduced by Assembly Member Friedman

February 17, 2017


An act to add Section 10608.51 to the Water Code, relating to water conservation. An act to amend Sections 350, 10610.2, 10610.4, 10620, 10621, 10630, 10631, 10631.2, 10635, 10640, 10641, 10642, 10644, 10645, 10650, 10651, 10653, 10654, 10656, and 10814 of, to amend and renumber Sections 10612 and 10617 of, to repeal Section 10631.7 of, to repeal and add Section 10632 of, and to add Sections 10612, 10617, 10617.5, 10632.1, 10632.2, 10632.3, and 10643.5 to, the Water Code, relating to water.


LEGISLATIVE COUNSEL'S DIGEST


AB 1668, as amended, Friedman. Water conservation: guidelines. Water management planning.
(1) Existing law, the Urban Water Management Planning Act, requires every public and private urban water supplier that directly or indirectly provides water for municipal purposes to prepare and adopt an urban water management plan and to update its plan once every 5 years on or before December 31 in years ending in 5 and zero, except as specified.
This bill would require an urban water management plan to be updated on or before July 1, in years ending in 6 and one, incorporating updated and new information from the 5 years preceding the plan update.
(2) Existing law requires an urban water management plan, among other things, to describe the reliability of the water supply and vulnerability to seasonal or climatic shortage, to the extent practicable, and provide data for an average, single-dry, and multiple-dry water years.
This bill would require an urban water management plan to contain a drought risk assessment that examines water shortage risks for a drought lasting the next 5 or more consecutive years.
(3) Existing law requires that an urban water management plan provide an urban water shortage contingency analysis, that includes, among other things, an estimate of the minimum water supply available during each of the following 3 water years based on the driest 3-year historic sequence for the agency’s water supply.
This bill would require an urban water supplier to prepare, adopt, and periodically review a water shortage contingency plan, as prescribed, and as part of its urban water management plan. The bill would require a water shortage contingency plan to consist of certain elements that are within the authority of the urban water supplier, including, among other things, annual water budget forecast procedures, standard water shortage levels, shortage response actions, and communication protocols and procedures. The bill would require an urban water supplier to make the water shortage contingency plan available to its customers and any city or county within which it provides water supplies no later than 30 days after adoption. The bill would require an urban water supplier to conduct an annual water budget forecast and submit an annual water shortage assessment report to the department with information for anticipated shortage, triggered shortage response actions, compliance and enforcement actions, and communication actions consistent with the supplier’s water shortage contingency plan by the 10th day of May of each year. The bill would require an urban water supplier to adhere to the procedures and implement determined shortage response actions in its water shortage contingency plan in drought and water shortage conditions. The bill would authorize the department to update a certain guidebook, as specified.
(4) Existing law requires an urban water supplier to submit copies of its urban water management plan and copies of amendments or changes to the plan to certain entities, including the Department of Water Resources, as prescribed. Existing law makes an urban water supplier that does not prepare, adopt, and submit its urban water management plan to the department as prescribed ineligible to receive certain funding.
This bill would extend these provisions to apply to a water shortage contingency plan. The bill would require an urban water supplier regulated by the Public Utilities Commission to include its most recent urban water management plan and water shortage contingency plan as part of its general rate case filings.
(5) Existing law requires the department to prepare and submit to the Legislature, on or before December 31, in the years ending in 6 and 1, a report summarizing the status of plans adopted pursuant to the act and to provide a copy of the report to each urban water supplier that has submitted its plan to the department.
This bill would instead require the department to prepare and submit the report about plans adopted pursuant to the act to the Legislature on or before July 1, in the years ending in 7 and 2. The bill would require the department to prepare and submit to the State Water Resources Control Board, on or before June 1 of each year, a report summarizing the submitted water budget forecast results along with appropriate reported water shortage conditions developed by the department and information regarding various shortage response actions implemented as a result of water budget forecast assessments, as prescribed, for the board to determine if noncompliance enforcement is necessary.
The bill would also require an urban water management plan and water shortage contingency plan submitted to the department on or after January 1, 2020, to be reviewed by the department for completeness, internal consistency, and conformity to specified requirements.
(6) Existing law requires any actions or proceedings to attack, review, set aside, void, or annul the acts or decisions of an urban water supplier on the grounds of noncompliance with urban water management planning requirements to be commenced in accordance with specified procedures. Existing law requires any action or proceeding alleging that an urban water management plan, or action taken pursuant to the plan, is noncompliant to be commenced within 90 days after filing of the plan or the taking of that action.
This bill would extend these provisions to apply to a water shortage contingency plan. The bill would also require any action or proceeding alleging that an urban water management plan or water shortage contingency plan, or action taken pursuant to either plan, is noncompliant to be commenced within one year after filing of the plan or the taking of that action.
(7) Existing law authorizes the governing body of a distributor of a public water supply to declare a water shortage emergency condition to prevail within the area served by the distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection.
This bill would instead require the governing body of a distributor of a public water supply to declare a water shortage emergency condition whenever it finds and determines the above-described circumstances or upon determining a water shortage of 40% or greater exists. The bill would require an urban water supplier to declare a water shortage emergency if either a water shortage of 40% or greater is determined to exist or in the event that a severe catastrophic interruption of the urban water supplier’s water supply has occurred. The bill would require an urban water supplier to coordinate with any city or county within which it provides water supply services for a possible proclamation of a local emergency.

Existing law requires the state to achieve a 20% reduction in urban per capita water use on or before December 31, 2020, and to make incremental progress toward that state target by reducing urban per capita water use by at least 10% on or before December 31, 2015.

Executive Order B-37-16, among other things, requires the Department of Water Resources to work with the State Water Resources Control Board to develop new water use targets as a part of a permanent framework for urban water agencies.

This bill would require the state board, on or before July 1, 2018, in consultation with the department and other appropriate state agencies, to adopt water conservation guidelines that are consistent with a specified report issued in response to Executive Order B-37-16.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 350 of the Water Code is amended to read:

350.
 The governing body of a distributor of a public water supply, whether publicly or privately owned and including a mutual water company, may shall declare a water shortage emergency condition to prevail within the area served by such distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection. protection or upon determining a water shortage level 4 or greater exists, as described in paragraph (2) of subdivision (a) of Section 10632.

SEC. 2.

 Section 10610.2 of the Water Code is amended to read:

10610.2.
 (a) The Legislature finds and declares all of the following:
(1) The waters of the state are a limited and renewable resource subject to ever-increasing demands.
(2) The conservation and efficient use of urban water supplies are of statewide concern; however, the planning for that use and the implementation of those plans can best be accomplished at the local level.
(3) A long-term, reliable supply of water is essential to protect the productivity of California’s businesses and economic climate. climate and increasing long-term water conservation among Californians, improving water use efficiency within the state’s communities and agricultural production, and strengthening local and regional drought planning are critical to California’s resilience to drought and climate change.
(4) As part of its long-range planning activities, every urban water supplier should make every effort to ensure the appropriate level of reliability in its water service sufficient to meet the needs of its various categories of customers during normal, dry, and multiple dry water years. years now and into the foreseeable future and every urban water supplier should actively engage local land-use authorities to ensure water demand forecasts are consistent with current land-use planning.
(5) Public health issues have been raised over a number of contaminants that have been identified in certain local and imported water supplies.
(6) Implementing effective water management strategies, including groundwater storage projects and recycled water projects, may require specific water quality and salinity targets for meeting groundwater basins water quality objectives and promoting beneficial use of recycled water.
(7) Water quality regulations are becoming an increasingly important factor in water agencies’ selection of raw water sources, treatment alternatives, and modifications to existing treatment facilities.
(8) Changes in drinking water quality standards may also impact the usefulness of water supplies and may ultimately impact supply reliability.
(9) The quality of source supplies can have a significant impact on water management strategies and supply reliability.
(b) This part is intended to provide assistance to water agencies in carrying out their long-term resource planning responsibilities to ensure adequate water supplies to meet existing and future demands for water.

SEC. 3.

 Section 10610.4 of the Water Code is amended to read:

10610.4.
 The Legislature finds and declares that it is the policy of the state as follows:
(a) The management of urban water demands and efficient use of water shall be actively pursued to protect both the people of the state and their water resources.
(b) The management of urban water demands and efficient use of urban water supplies shall be a guiding criterion in public decisions.
(c) Urban water suppliers shall be required to develop water management plans to actively pursue achieve the efficient use of available supplies. supplies and strengthen local drought planning.

SEC. 4.

 Section 10612 of the Water Code is amended and renumbered to read:

10612.10611.3.
 “Customer” means a purchaser of water from a water supplier who uses the water for municipal purposes, including residential, commercial, governmental, and industrial uses.

SEC. 5.

 Section 10612 is added to the Water Code, to read:

10612.
 “Drought risk assessment” means a method that examines water shortage risks for the next five or more consecutive years.

SEC. 6.

 Section 10617 of the Water Code is amended and renumbered to read:

10617.10618.
 “Urban water supplier” means a supplier, either publicly or privately owned, providing water for municipal purposes either directly or indirectly to more than 3,000 customers or supplying more than 3,000 acre-feet of water annually. An urban water supplier includes a supplier or contractor for water, regardless of the basis of right, which distributes or sells for ultimate resale to customers. This part applies only to water supplied from public water systems subject to Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code.

SEC. 7.

 Section 10617 is added to the Water Code, to read:

10617.
 “Water budget forecast” means a method that looks at current year and one or more dry year supplies and demands for determining water shortage risks.

SEC. 8.

 Section 10617.5 is added to the Water Code, to read:

10617.5.
 “Water shortage contingency plan” means a document that incorporates the provisions detailed in subdivision (a) of Section 10632 and is subsequently adopted by an urban water supplier pursuant to this article.

SEC. 9.

 Section 10620 of the Water Code is amended to read:

10620.
 (a) Every urban water supplier shall prepare and adopt an urban water management plan in the manner set forth in Article 3 (commencing with Section 10640).
(b) Every person that becomes an urban water supplier shall adopt an urban water management plan within one year after it has become an urban water supplier.
(c) An urban water supplier indirectly providing water shall not include planning elements in its water management plan as provided in Article 2 (commencing with Section 10630) that would be applicable to urban water suppliers or public agencies directly providing water, or to their customers, without the consent of those suppliers or public agencies.
(d) (1) An urban water supplier may satisfy the requirements of this part by participation in areawide, regional, watershed, or basinwide urban water management planning where those plans will reduce preparation costs and contribute to the achievement of conservation and conservation, efficient water use. use, and improved local drought resilience.
(2) Notwithstanding paragraph (1), each urban water supplier shall develop its own water shortage contingency plan but an urban water supplier may incorporate, collaborate, and otherwise share information with other urban water suppliers or other governing entities participating in area-wide, regional, watershed, or basin-wide urban water management plan, agricultural management plan, or groundwater sustainability plan development.

(2)

(3) Each urban water supplier shall coordinate the preparation of its plan with other appropriate agencies in the area, including other water suppliers that share a common source, water management agencies, and relevant public agencies, to the extent practicable.
(e) The urban water supplier may prepare the plan with its own staff, by contract, or in cooperation with other governmental agencies.
(f) An urban water supplier shall describe in the plan water management tools and options used by that entity that will maximize resources and minimize the need to import water from other regions.

SEC. 10.

 Section 10621 of the Water Code is amended to read:

10621.
 (a) Each urban water supplier shall update its plan at least once every five years on or before December 31, July 1, in years ending in five six and zero, except as provided in subdivisions (d) and (e). one, incorporating updated and new information from the five years preceding each update.
(b) Every urban water supplier required to prepare a plan pursuant to this part shall, at least 60 days before the public hearing on the plan required by Section 10642, notify any city or county within which the supplier provides water supplies that the urban water supplier will be reviewing the plan and considering amendments or changes to the plan. The urban water supplier may consult with, and obtain comments from, any city or county that receives notice pursuant to this subdivision.
(c) An urban water supplier regulated by the Public Utilities Commission shall include its most recent plan and water shortage contingency plan as part of the supplier’s general rate case filings.

(c)

(d) The amendments to, or changes in, the plan shall be adopted and filed in the manner set forth in Article 3 (commencing with Section 10640).

(d)

(e) Each urban water supplier shall update and submit its 2015 plan to the department by July 1, 2016.

(e)

(f) Each urban water supplier shall update and submit its 2020 plan to the department by July 1, 2021.

SEC. 11.

 Section 10630 of the Water Code is amended to read:

10630.
 It is the intention of the Legislature, in enacting this part, to permit levels of water management planning commensurate with the numbers of customers served and the volume of water supplied. supplied, while accounting for impacts from climate change.

SEC. 12.

 Section 10631 of the Water Code is amended to read:

10631.
 A plan shall be adopted in accordance with this chapter that shall do all of the following:
(a) Describe the service area of the supplier, including current and projected population, climate, impacts from climate change, and other social, economic, and demographic factors affecting the supplier’s water management planning. The projected population estimates shall be based upon data from the state, regional, or local service agency population projections within the service area of the urban water supplier and shall be in five-year increments to 20 years or as far as data is available. The description shall include the current and projected land uses within the existing or anticipated service area affecting the supplier’s water management planning. Land use information shall be obtained from local or regional land-use authorities, as developed pursuant to Article 5 (commencing with Section 65300) of Chapter 3 of Division 1 of Title 7 of the Government Code.
(b) Identify and quantify, to the extent practicable, the existing and planned sources of water available to the supplier over the same five-year increments described in subdivision (a). If groundwater is identified as an existing or planned source of water available to the supplier, (a), including all of the following information shall be included in the plan: following:
(1) For each source of water supply, while considering any information pertinent to the reliability analysis conduct pursuant to Section 10635, provide a detailed discussion of anticipated supply availability under a normal water year, single dry year, and droughts lasting at least five years, as well as more frequent and severe periods of drought, as described in the drought risk assessment.
(2) When multiple sources of water supply are identified, describe the management of each supply in correlation with the other identified supplies.
(3) For any planned sources of water supply, describe the measures that are being undertaken to acquire and develop those water supplies.
(4) If groundwater is identified as an existing or planned source of water available to the supplier, all of the following information shall be included in the plan:

(1)

(A) A copy of any groundwater management plan adopted by the urban water supplier, including plans adopted pursuant to Part 2.75 (commencing with Section 10750), or any other specific authorization for groundwater management.

(2)

(B) A description of any groundwater basin or basins from which the urban water supplier pumps groundwater. For basins that a court or the board has adjudicated the rights to pump groundwater, a copy of the order or decree adopted by the court or the board and a description of the amount of groundwater the urban water supplier has the legal right to pump under the order or decree. For basins that have not been adjudicated, information as to whether the department has identified the basin or basins as overdrafted a high- or medium-priority basin or has projected that the basin will become overdrafted a high- or medium-priority basin pursuant to Sections 10722.4 and 10933 if present management conditions continue, in the most current official departmental bulletin that characterizes the condition of the groundwater basin, and a detailed description of the efforts being undertaken by the urban water supplier to coordinate with groundwater sustainability agencies to eliminate the long-term overdraft condition. undesirable results described in a groundwater sustainability plan pursuant to Section 10727.

(3)

(C) A detailed description and analysis of the location, amount, and sufficiency of groundwater pumped by the urban water supplier for the past five years. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records.

(4)

(D) A detailed description and analysis of the amount and location of groundwater that is projected to be pumped by the urban water supplier. The description and analysis shall be based on information that is reasonably available, including, but not limited to, historic use records.

(c)(1)Describe the reliability of the water supply and vulnerability to seasonal or climatic shortage, to the extent practicable, and provide data for each of the following:

(A)An average water year.

(B)A single-dry water year.

(C)Multiple-dry water years.

(2)For any water source that may not be available at a consistent level of use, given specific legal, environmental, water quality, or climatic factors, describe plans to supplement or replace that source with alternative sources or water demand management measures, to the extent practicable.

(E) A copy of any pertinent groundwater sustainability plans for groundwater basins underlying the urban water supplier’s service area.

(d)

(c) Describe the opportunities for exchanges or transfers of water on a short-term or long-term basis.

(e)

(d) (1) Quantify, to the extent records are available, Quantify past and current water use, over the same five-year increments described in subdivision (a), and projected water use, based upon information developed pursuant to subdivision (a), identifying the uses among water use sectors, including, but not necessarily limited to, all of the following uses: following:
(A) Single-family residential.
(B) Multifamily.
(C) Commercial.
(D) Industrial.
(E) Institutional and governmental.
(F) Landscape.
(G) Sales to other agencies.
(H) Saline water intrusion barriers, groundwater recharge, or conjunctive use, or any combination thereof.
(I) Agricultural.
(J) Distribution system water loss.
(2) The water use projections shall be in the same five-year increments described in subdivision (a).
(3) (A) For the 2015 urban water management plan update, the The distribution system water loss shall be quantified for the most recent 12-month period available. For all subsequent updates, the distribution system water loss shall be quantified for each of the five years preceding the plan update. update in accordance with rules adopted pursuant to Section 10608.34.
(B) The distribution system water loss quantification shall be reported in accordance with a worksheet approved or developed by the department through a public process. The water loss quantification worksheet shall be based on the water system balance methodology developed by the American Water Works Association.
(C) After 2021, data to show whether the urban water supplier met the distribution loss standards enacted by the board pursuant to Section 10608.34.
(4) (A) If available and applicable to an urban water supplier, water Water use projections may projections, where available, shall display and account for the water savings estimated to result from adopted codes, standards, ordinances, or transportation and land use plans identified by the urban water supplier, as applicable to the service area.
(B) To the extent that an urban water supplier reports the information described in subparagraph (A), an urban water supplier shall do both of the following:
(i) Provide citations of the various codes, standards, ordinances, or transportation and land use plans utilized in making the projections.
(ii) Indicate the extent that the water use projections consider savings from codes, standards, ordinances, or transportation and land use plans. Water use projections that do not account for these water savings shall be noted of that fact.

(f)

(e) Provide a description of the supplier’s water demand management measures. This description shall include all of the following:
(1) (A) For an urban retail water supplier, as defined in Section 10608.12, a narrative description that addresses the nature and extent of each water demand management measure implemented over the past five years. The narrative shall describe the water demand management measures that the supplier plans to implement to achieve its water use targets pursuant to Section 10608.20. 10608.20 and any water use standards adopted by the board.
(B) The narrative pursuant to this paragraph shall include descriptions of the following water demand management measures:
(i) Water waste prevention ordinances.
(ii) Metering.
(iii) Conservation pricing.
(iv) Public education and outreach.
(v) Programs to assess and manage distribution system real loss.
(vi) Water conservation program coordination and staffing support.
(vii) Other demand management measures that have a significant impact on water use as measured in gallons per capita per day, including innovative measures, if implemented.
(2) For an urban wholesale water supplier, as defined in Section 10608.12, a narrative description of the items in clauses (ii), (iv), (vi), and (vii) of subparagraph (B) of paragraph (1), and a narrative description of its distribution system asset management and wholesale supplier assistance programs.

(g)

(f) Include a description of all water supply projects and water supply programs that may be undertaken by the urban water supplier to meet the total projected water use, as established pursuant to subdivision (a) of Section 10635. The urban water supplier shall include a detailed description of expected future projects and programs that the urban water supplier may implement to increase the amount of the water supply available to the urban water supplier in average, normal, single-dry, and multiple-dry for a period of drought lasting five or more consecutive water years. The description shall identify specific projects and include a description of the increase in water supply that is expected to be available from each project. The description shall include an estimate with regard to the implementation timeline for each project or program.

(h)

(g) Describe the opportunities for development of desalinated water, including, but not limited to, ocean water, brackish water, and groundwater, as a long-term supply.

(i)For purposes of this part, urban water suppliers that are members of the California Urban Water Conservation Council shall be deemed in compliance with the requirements of subdivision (f) by complying with all the provisions of the “Memorandum of Understanding Regarding Urban Water Conservation in California,” dated December 10, 2008, as it may be amended, and by submitting the annual reports required by Section 6.2 of that memorandum.

(j)

(h) An urban water supplier that relies upon a wholesale agency for a source of water shall provide the wholesale agency with water use projections from that agency for that source of water in five-year increments to 20 years or as far as data is available. The wholesale agency shall provide information to the urban water supplier for inclusion in the urban water supplier’s plan that identifies and quantifies, to the extent practicable, the existing and planned sources of water as required by subdivision (b), available from the wholesale agency to the urban water supplier over the same five-year increments, and during various water-year types in accordance with subdivision (c). (f). An urban water supplier may rely upon water supply information provided by the wholesale agency in fulfilling the plan informational requirements of subdivisions (b) and (c). (f).

SEC. 13.

 Section 10631.2 of the Water Code is amended to read:

10631.2.
 (a) In addition to the requirements of Section 10631, an urban water management plan may, but is not required to, shall include any of the following information: information that the urban water supplier can readily obtain:
(1) An estimate of the amount of energy used to extract or divert water supplies.
(2) An estimate of the amount of energy used to convey water supplies to the water treatment plants or distribution systems.
(3) An estimate of the amount of energy used to treat water supplies.
(4) An estimate of the amount of energy used to distribute water supplies through its distribution systems.
(5) An estimate of the amount of energy used for treated water supplies in comparison to the amount used for nontreated water supplies.
(6) An estimate of the amount of energy used to place water into or withdraw from storage.
(7) Any other energy-related information the urban water supplier deems appropriate.
(b) The department shall include in its guidance for the preparation of urban water management plans a methodology for the voluntary calculation or estimation of the energy intensity of urban water systems. The department may consider studies and calculations conducted by the Public Utilities Commission in developing the methodology.

SEC. 14.

 Section 10631.7 of the Water Code is repealed.
10631.7.

The department, in consultation with the California Urban Water Conservation Council, shall convene an independent technical panel to provide information and recommendations to the department and the Legislature on new demand management measures, technologies, and approaches. The panel shall consist of no more than seven members, who shall be selected by the department to reflect a balanced representation of experts. The panel shall have at least one, but no more than two, representatives from each of the following: retail water suppliers, environmental organizations, the business community, wholesale water suppliers, and academia. The panel shall be convened by January 1, 2009, and shall report to the Legislature no later than January 1, 2010, and every five years thereafter. The department shall review the panel report and include in the final report to the Legislature the department’s recommendations and comments regarding the panel process and the panel’s recommendations.

SEC. 15.

 Section 10632 of the Water Code is repealed.
10632.

(a)The plan shall provide an urban water shortage contingency analysis that includes each of the following elements that are within the authority of the urban water supplier:

(1)Stages of action to be undertaken by the urban water supplier in response to water supply shortages, including up to a 50 percent reduction in water supply, and an outline of specific water supply conditions that are applicable to each stage.

(2)An estimate of the minimum water supply available during each of the next three water years based on the driest three-year historic sequence for the agency’s water supply.

(3)Actions to be undertaken by the urban water supplier to prepare for, and implement during, a catastrophic interruption of water supplies including, but not limited to, a regional power outage, an earthquake, or other disaster.

(4)Additional, mandatory prohibitions against specific water use practices during water shortages, including, but not limited to, prohibiting the use of potable water for street cleaning.

(5)Consumption reduction methods in the most restrictive stages. Each urban water supplier may use any type of consumption reduction methods in its water shortage contingency analysis that would reduce water use, are appropriate for its area, and have the ability to achieve a water use reduction consistent with up to a 50 percent reduction in water supply.

(6)Penalties or charges for excessive use, where applicable.

(7)An analysis of the impacts of each of the actions and conditions described in paragraphs (1) to (6), inclusive, on the revenues and expenditures of the urban water supplier, and proposed measures to overcome those impacts, such as the development of reserves and rate adjustments.

(8)A draft water shortage contingency resolution or ordinance.

(9)A mechanism for determining actual reductions in water use pursuant to the urban water shortage contingency analysis.

(b)Commencing with the urban water management plan update due July 1, 2016, for purposes of developing the water shortage contingency analysis pursuant to subdivision (a), the urban water supplier shall analyze and define water features that are artificially supplied with water, including ponds, lakes, waterfalls, and fountains, separately from swimming pools and spas, as defined in subdivision (a) of Section 115921 of the Health and Safety Code.

SEC. 16.

 Section 10632 is added to the Water Code, to read:

10632.
 (a) Every urban water supplier shall prepare and adopt a water shortage contingency plan as part of its urban water management plan that consists of each of the following elements:
(1) The procedures used in conducting an annual water budget forecast that include, at a minimum, both of the following:
(A) The written decisionmaking process that an urban water supplier will use each year to determine its water supply reliability.
(B) The key data inputs and assessment methodology used to evaluate the urban water supplier’s water supply reliability for the current year and one or more dry years, including all of the following:
(i) Current year unconstrained demand, considering weather, growth, and other influencing factors, such as policies to manage current supplies to meet demand objectives in future years, as applicable.
(ii) Current year available supply, considering hydrological and regulatory conditions in the current year and one or more dry years.
(iii) Existing infrastructure capabilities and plausible constraints.
(iv) A defined set of locally applicable evaluation criteria that are consistently relied upon for each annual water budget forecast.
(v) A description and quantification of each source of water supply.
(2) Six standard water shortage levels corresponding to progressive ranges of up to 10, 20, 30, 40, and 50 percent shortages and greater than 50 percent shortage. Shortage levels shall also apply to catastrophic interruption of water supplies, including, but not limited to, a regional power outage, an earthquake, and other potential emergency events.
(3) Shortage response actions that align with the defined shortage levels and shall include, at a minimum, all of the following:
(A) Locally appropriate supply augmentation actions.
(B) Locally appropriate demand reduction actions to adequately respond to shortages.
(C) Locally appropriate operational changes.
(D) Additional, mandatory prohibitions against specific water use practices that are in addition to state-mandated prohibitions.
(E) For each action, an estimate of the volume of water or percentage reduction in water use that will be achieved by implementation of the action.
(4) Communication protocols and procedures to inform customers, the public, interested parties, and local, regional, and state governments, regarding, at a minimum, all of the following:
(A) Any current or predicted shortages as determined by the annual water budget forecast as determined pursuant to Section 10632.1.
(B) Any shortage response actions triggered or anticipated to be triggered by the annual water budget forecast as determined pursuant to Section 10632.1.
(C) Any other relevant communications.
(5) Customer compliance, enforcement, appeal, and exemption procedures for triggered shortage response actions as determined pursuant to Section 10632.2.
(6) (A) A description of the legal authorities that empower the urban water supplier to implement and enforce its shortage response actions specified in paragraph (3) that may include, but are not limited to, statutory authorities, ordinances, resolutions, and contract provisions.
(B) An urban water supplier shall declare a water shortage emergency in accordance with Chapter 3 (commencing with Section 350) of Division 1 in the event of either of the following:
(i) A water shortage level 4 or greater, as described in paragraph (2), is determined to exist.
(ii) A severe catastrophic interruption of the water supply of the urban water supplier has occurred.
(C) An urban water supplier shall coordinate with any city or county within which it provides water supply services for the possible proclamation of a local emergency, as defined in Section 8558 of the Government Code.
(7) A description of the financial consequences of and responses for drought conditions, including, but not limited to, all of the following:
(A) A description of potential revenue reductions and expense increases associated with activated shortage response actions described in paragraph (3).
(B) A description of mitigation actions needed to address revenue reductions and expense increases associated with activated shortage response actions described in paragraph (3).
(C) A description of the cost of compliance with Chapter 3.3 (commencing with Section 365) of Division 1.
(8) Monitoring and reporting requirements and procedures that ensure appropriate data is collected, tracked, and analyzed for purposes of monitoring customer compliance and to meet state reporting requirements.
(9) Reevaluation and improvement procedures for systematically monitoring and evaluating the functionality of the water shortage contingency plan in order to ensure shortage risk tolerance is adequate and appropriate water shortage mitigation strategies are implemented as needed.
(b) Commencing with the urban water management plan update due July 1, 2016, for purposes of developing the water shortage contingency plan pursuant to subdivision (a), the urban water supplier shall analyze and define water features that are artificially supplied with water, including ponds, lakes, waterfalls, and fountains, separately from swimming pools and spas, as defined in subdivision (a) of Section 115921 of the Health and Safety Code.
(c) The urban water supplier shall make available the water shortage contingency plan prepared pursuant to this article to its customers and any city or county within which it provides water supplies no later than 30 days after adoption of the water shortage contingency plan.

SEC. 17.

 Section 10632.1 is added to the Water Code, to read:

10632.1.
 An urban water supplier shall conduct the annual water budget forecast pursuant to subdivision (a) of Section 10632 and, by the 10th day of May of each year, submit an annual water shortage assessment report to the department with information for anticipated shortage, triggered shortage response actions, compliance, and enforcement actions, and communication actions consistent with the supplier’s water shortage contingency plan.

SEC. 18.

 Section 10632.2 is added to the Water Code, to read:

10632.2.
 An urban water supplier shall adhere to the prescribed procedures and implement determined shortage response actions in its water shortage contingency plan as identified in subdivision (a) of Section 10632 in drought and water shortage conditions.

SEC. 19.

 Section 10632.3 is added to the Water Code, to read:

10632.3.
 The department may update the Urban Water Management Guidebook to include and further clarify, where necessary, the requirements contained in subdivision (a) of Section 10632.

SEC. 20.

 Section 10635 of the Water Code is amended to read:

10635.
 (a) Every urban water supplier shall include, as part of its urban water management plan, an assessment of the reliability of its water service to its customers during normal, dry, and multiple dry water years. This water supply and demand assessment shall compare the total water supply sources available to the water supplier with the long-term total projected water use over the next 20 years, in five-year increments, for a normal water year, a single dry water year, and multiple dry a drought lasting five or more consecutive water years. The water service reliability assessment shall be based upon the information compiled pursuant to Section 10631, including available data from state, regional, or local agency population projections within the service area of the urban water supplier.
(b) Every urban water supplier shall include, as part of its urban water management plan, a drought risk assessment for its water service to its customers as part of information considered in developing the demand management measures and water supply projects and programs to be included in the urban water management plan. The urban water supplier may conduct an interim update or updates to this drought risk assessment within the five-year cycle of its urban water management plan update. The drought risk assessment shall satisfy the following requirements:
(1) A description of data, methodology, and basis for one or more supply shortage conditions to conduct a drought risk assessment for a drought period that lasts five or more consecutive years, starting from the year following when the assessment is conducted.
(2) A comparison of the total water supply sources available to the water supplier with the total projected water use for the drought period. Potable reuse, recycled water, and desalination are considered fully reliable.
(3) Considerations of the historical drought hydrology, plausible changes on projected supplies and demands under climate change conditions, anticipated regulatory changes, and other locally applicable criteria.

(b)

(c) The urban water supplier shall provide that portion of its urban water management plan prepared pursuant to this article to any city or county within which it provides water supplies no later than 60 days after the submission of its urban water management plan.

(c)

(d) Nothing in this article is intended to create a right or entitlement to water service or any specific level of water service.

(d)

(e) Nothing in this article is intended to change existing law concerning an urban water supplier’s obligation to provide water service to its existing customers or to any potential future customers.

SEC. 21.

 Section 10640 of the Water Code is amended to read:

10640.
 (a)  Every urban water supplier required to prepare a plan pursuant to this part shall prepare its plan pursuant to Article 2 (commencing with Section 10630). The supplier shall likewise periodically review the plan as required by Section 10621, and any amendments or changes required as a result of that review shall be adopted pursuant to this article.
(b)  Every urban water supplier required to prepare a water shortage contingency plan shall prepare a water shortage contingency plan pursuant to Section 10632. The supplier shall likewise periodically review the water shortage contingency plan as required by paragraph (9) of subdivision (a) of Section 10621, 10632 and any amendments or changes required as a result of that review shall be adopted pursuant to this article.

SEC. 22.

 Section 10641 of the Water Code is amended to read:

10641.
 An urban water supplier required to prepare a an urban water management plan or a water shortage contingency plan may consult with, and obtain comments from, any public agency or state agency or any person who has special expertise with respect to water demand management methods and techniques.

SEC. 23.

 Section 10642 of the Water Code is amended to read:

10642.
 Each urban water supplier shall encourage the active involvement of diverse social, cultural, and economic elements of the population within the service area prior to and during the preparation of both the urban water management plan and the water shortage contingency plan. Prior to adopting a either plan, the urban water supplier shall make both of the plan plans available for public inspection and shall hold a public hearing thereon. Prior to the hearing, notice of the time and place of hearing shall be published within the jurisdiction of the publicly owned water supplier pursuant to Section 6066 of the Government Code. The urban water supplier shall provide notice of the time and place of hearing to any city or county within which the supplier provides water supplies. Notices by a local public agency pursuant to this section shall be provided pursuant to Chapter 17.5 (commencing with Section 7290) of Division 7 of Title 1 of the Government Code. A privately owned water supplier shall provide an equivalent notice within its service area. After the hearing, the urban water management plan or water shortage contingency plan shall be adopted as prepared or as modified after the hearing.

SEC. 24.

 Section 10643.5 is added to the Water Code, to read:

10643.5.
 An urban water management plan and water shortage contingency plan submitted to the department on or after January 1, 2020, shall be reviewed by the department for completeness, internal consistency, and conformity to the requirements of this part and of Part 2.55 (commencing with Section 10608).

SEC. 25.

 Section 10644 of the Water Code is amended to read:

10644.
 (a) (1) An urban water supplier shall submit to the department, the California State Library, and any city or county within which the supplier provides water supplies a copy of its plan no later than 30 days after adoption. Copies of amendments or changes to the plans shall be submitted to the department, the California State Library, and any city or county within which the supplier provides water supplies within 30 days after adoption.
(2) The plan, or amendments to the plan, submitted to the department pursuant to paragraph (1) shall be submitted electronically and shall include any standardized forms, tables, or displays specified by the department.
(b) If an urban water supplier revises its water shortage contingency plan, the supplier shall submit to the department a copy of its water shortage contingency plan prepared pursuant to subdivision (a) of Section 10632 no later than 30 days after adoption, in accordance with protocols for submission and using electronic reporting tools developed by the department.

(b)

(c) The department shall prepare and submit to the board, on or before July 1, in the years ending in seven or two, a list of all urban water suppliers that have done any of the following:
(1) Submitted an urban water management plan and a water shortage contingency plan that have been accepted for filing.
(2) Submitted an urban water management plan and a water shortage contingency plan and one or both have been returned for revision and not accepted for filing.
(3) Submitted an urban water management plan and a water shortage contingency plan but the department failed to review one or both for completeness, internal consistency, and conformity to the requirements of this part and of Part 2.55 (commencing with Section 10608) pursuant to Section 10643.5.
(4) Failed to submit an urban water management plan and a water shortage contingency plan.
(d) (1) (A) Notwithstanding Section 10231.5 of the Government Code, and except as provided in subparagraph (B), the department shall prepare and submit to the Legislature, on or before December 31, July 1, in the years ending in six seven and one, two, a report summarizing the status of the plans adopted pursuant to this part. The report prepared by the department shall identify the exemplary elements of the individual plans. The department shall provide a copy of the report to each urban water supplier that has submitted its plan plans to the department. The department shall also prepare reports and provide data for any legislative hearings designed to consider the effectiveness of plans submitted pursuant to this part.
(B) The department shall prepare and submit to the board, on or before June 1 of each year, a report summarizing the submitted water budget forecast results along with appropriate reported water shortage conditions and the regional and statewide analysis of water supply conditions developed by the department. As part of the report, the department shall provide a summary and, as appropriate, urban water supplier specific information regarding various shortage response actions implemented as a result of annual supplier-specific water budget forecast assessments performed pursuant to Section 10632.1. The report shall include enough information on the completeness and adequacy of the information submitted for the board to determine if noncompliance enforcement is necessary.

(B)

(C) The department shall submit the report to the Legislature for the 2015 plans by July 1, 2017, and the report to the Legislature for the 2020 plans by July 1, 2022.
(2) A report to be submitted pursuant to subparagraph (A) of paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.

(c)

(e) (1) For the purpose of identifying the exemplary elements of the individual plans, the department shall identify in the report water demand management measures adopted and implemented by specific urban water suppliers, and identified pursuant to Section 10631, that achieve water savings significantly above the levels established by the department to meet the requirements of Section 10631.5.
(2) The department shall distribute to the panel convened pursuant to Section 10631.7 the results achieved by the implementation of those water demand management measures described in paragraph (1).
(3) The department shall make available to the public the standard the department will use to identify exemplary water demand management measures.

SEC. 26.

 Section 10645 of the Water Code is amended to read:

10645.
 (a)  Not later than 30 days after filing a copy of its plan with the department, the urban water supplier and the department shall make the plan available for public review during normal business hours.
(b) Not later than 30 days after filing a copy of its water shortage contingency plan with the department, the urban water supplier and the department shall make the plan available for public review during normal business hours.

SEC. 27.

 Section 10650 of the Water Code is amended to read:

10650.
 Any actions or proceedings proceedings, other than actions by the board, to attack, review, set aside, void, or annul the acts or decisions of an urban water supplier on the grounds of noncompliance with this part shall be commenced as follows:
(a) An action or proceeding alleging failure to adopt a an urban water management plan or a water shortage contingency plan shall be commenced within 18 months after that adoption is required by this part.
(b) Any action or proceeding alleging that a an urban water management plan or water shortage contingency plan, or action taken pursuant to the either plan, does not comply with this part shall be commenced within 90 days one year after filing of the urban water management plan or water shortage contingency plan or an amendment thereto to either plan pursuant to Section 10644 or the taking of that action.

SEC. 28.

 Section 10651 of the Water Code is amended to read:

10651.
 In any action or proceeding to attack, review, set aside, void, or annul a an urban water management plan or a water shortage contingency plan, or an action taken pursuant to the either plan by an urban water supplier on the grounds of noncompliance with this part, the inquiry shall extend only to whether there was a prejudicial abuse of discretion. Abuse of discretion is established if the supplier has not proceeded in a manner required by law or if the action by the water supplier is not supported by substantial evidence.

SEC. 29.

 Section 10653 of the Water Code is amended to read:

10653.
 The adoption of a plan shall satisfy any requirements of state law, regulation, or order, including those of the State Water Resources Control Board board and the Public Utilities Commission, for the preparation of water management plans plans, water shortage contingency plans, or conservation plans; provided, that if the State Water Resources Control Board board or the Public Utilities Commission requires additional information concerning water conservation conservation, drought response measures, and financial information to implement its existing authority, nothing in this part shall be deemed to limit the board or the commission in obtaining that information. The requirements of this part shall be satisfied by any urban water demand management plan prepared to meet that complies with analogous federal laws or regulations after the effective date of this part, and which substantially meets the requirements of this part, or by any existing urban water management plan which includes the contents of a plan required under this part.

SEC. 30.

 Section 10654 of the Water Code is amended to read:

10654.
 An urban water supplier may recover in its rates the costs incurred in preparing its urban water management plan and its water shortage contingency plan and implementing the reasonable water conservation measures included in the either plan. Any best water management practice that is included in the plan that is identified in the “Memorandum of Understanding Regarding Urban Water Conservation in California” is deemed to be reasonable for the purposes of this section.

SEC. 31.

 Section 10656 of the Water Code is amended to read:

10656.
 An urban water supplier that does not prepare, adopt, and submit its urban water management plan or its water shortage contingency plan to the department in accordance with this part, is ineligible to receive funding pursuant to Division 24 (commencing with Section 78500) or Division 26 (commencing with Section 79000), or receive drought assistance from the state until the urban water management plan or water shortage contingency plan is submitted pursuant to this article.

SEC. 32.

 Section 10814 of the Water Code is amended to read:

10814.
 “Person” means any individual, firm, association, organization, partnership, business, trust, corporation, company, public agency, or any agency of that entity. has the same meaning as defined in Section 10614.

SECTION 1.Section 10608.51 is added to the Water Code, to read:
10608.51.

(a)On or before July 1, 2018, the board, in consultation with the department and other appropriate state agencies, shall adopt water conservation guidelines that are consistent with the framework described in “Making Water Conservation a California Way of Life.”

(b)For purposes of this section, “Making Water Conservation a California Way of Life,” refers to the report prepared by the department, the state board, the Public Utilities Commission, the Department of Food and Agriculture, and the State Energy Resources Conservation and Development Commission in response to Executive Order B-37-16.