Following the end of California’s historic drought in 2016, Governor Brown issued Executive Order B-37-16, entitled Making Water Conservation a California Way of Life (“Executive Order”). Since that time, legislators, stakeholders, and administrative agencies have been engaged in a collaborative effort to identify the best path forward for implementing the directives in the Executive Order. On May 31, 2018, Governor Brown signed two bills, Assembly Bill 1668 (“AB 1668”) and Senate Bill 606 (“SB 606”). These two bills were the result of the ongoing discussions that resulted from the Executive Order and are a first step in addressing water management and planning as directed in the Executive Order. Implementation of these bills will be a years-long regulatory process.

AB 1668

AB 1668 sets a daily per capita limit on indoor residential urban water use. The per capita limit begins at 55 gallons per capita daily (“gpcd”) and is reduced through 2030 to 50 gpcd, or a higher number, based on studies and investigations that the State Water Resources Control Board (“State Water Board”) must complete by January 21, 2021. AB 1668 also requires that the State Water Board establish long term standards for outdoor residential use, including a model water efficient landscape ordinance, and performance measures for commercial, industrial, and institutional water use. There is some flexibility built into these new standards allowing for variances based on specific circumstances and unique water users, but those variances will be more fully developed based on State Water Board regulations that must be adopted by October 1, 2021. Enforcement of these regulations will occur through fines that may be accessed starting November 1, 2027.

Beyond urban water use, AB 1668 also revises the requirements for agricultural water management planning. Agricultural Water Management Plans (“AWMP”) must now include water efficiency measures and drought contingency planning. Finally, AB 1668 requires the Department of Water Resources (“DWR”) and the State Water Board to determine how best to address drought and water shortage vulnerability for small water suppliers and rural communities.

SB 606

SB 606 focuses on reporting requirements for urban water use suppliers by establishing new reporting requirements focused on water conservation activities and amending the requirements for Urban Water Management Plans (“UWMPs”). To address the water conservation goals established under AB 1668, urban water suppliers must submit a report to the DWR by November 1, 2023, and each year thereafter, detailing the urban water supplier’s: (1) urban water use objective; (2) actual urban water use; (3) documentation for measures to address commercial, industrial, and institutional water use; and (4) a description of progress made in meeting the urban water supplier’s urban water use objective.  Where these reports are not provided, the State Water Board may begin issuing informational orders for the data that must be reported to the DWR starting on November 1, 2023.

UWMP requirements are also revised under SB 606, requiring that urban water suppliers address water conservation targets and include drought planning in their UWMPs. An urban water supplier must supplement its UWMP by January 1, 2024, to identify the urban water supplier’s plan to achieve its water use objective. Additionally, beginning with UWMPs due on July 1, 2021, UWMPs must include an evaluation of the reliability of the urban water supplier’s water supply and a drought risk assessment that examines water shortage risks for a drought that will last five years. The drought risk assessment, referred to as a Water Shortage Contingency Plan (“WSCP”), must include: (1) annual drought risk assessment procedures; (2) assessment of six water shortage standards, ranging from a 10% to greater than a 50% shortage; (3) shortage response actions; (4) communication protocols and procedures; (5) a description of legal authorities to implement and enforce water shortage actions; and (6) a description of the financial consequences of drought conditions.

The implementation of these bills will be a long-term process over the next several years, as the State Water Board and DWR propose and adopt regulations for these requirements. We will continue to keep you updated as new regulations are passed. If you have questions regarding these bills, or are interested in learning more about them, please contact Barbara A. Brenner at barbara@whitebrennerllp.com, Kerry Fuller at kerry@whitebrennerllp.com, or Churchwell White LLP at (916) 468-0950.