EXHIBIT 2-A

 

RULE 25 - CANCELLATION OF PERMITS

 

Discussion:  Rule 25 is clarified to provide current standards for expiration of water permits. 

 

 

A.        All permits issued pursuant to these regulations which are not completed (completion is defined by Rule 11) shall expire upon the date specified by each jurisdiction as shown on the permit two (2) years after the date of issuance or upon expiration of the building permit  For any permit that does not bear a cancellation date, that permit, to the extent it has not been completed by the installation of a water meter, or to the extent  permitted fixtures have not been installed, shall expire one (1) year following the date of issuance.  Persons possessing a current and valid Water Release Form whose water permits hasve expired or hasve been canceled may re-apply for a new water permit pursuant to Rule 20.  The District shall not accept any Water Release Form after the date specified by any jurisdiction.  A Wwater Rrelease Fform will be required for all permit applications, or requests for extension of a water permit.  The District, however, shall not extend a water permit for any site on which a permit violation of District rules has been noticed and has not been corrected.

 

B.         All water permits issued by means of a Water Use Credit shall expire two (2) years following the date of issuance.  Persons possessing a current and valid Water Release Form whose permits have expired may re-apply for a new water permit pursuant to Rule 20.

 

CB.      The District Board General Manager may suspend processing a water permit application or revoke any water permit issued pursuant to these Rules and Regulations whenever it the General Manager finds any of the following:

 

1.         That any requirement or condition of the water permit is not being met.

2.         That the permittee has violated any provision of these Rules and Regulations.

 

3.         That the permittee has misrepresented intentionally or negligently any material fact in this the water permit application or in any supporting documents, for his permit.

 

D.        Adjustment of Allocation for Abandoned or Revoked Permits

 

1.         Any permitted water capacity which is not used because of an abandoned, expired, revoked, or returned permit shall be returned to the applicable Allocation or entitlement applicable to that Jurisdiction (or the District Reserve) upon the expiration or revocation of that permit.

 

2.         Issuance of a Water Use Credit pursuant to Rule 25.5 shall not result in any change to a Jurisdiction’s Allocation.  Use of any Water Use Credit shall similarly not cause a change to a Jurisdiction’s Allocation.

 

E.         Refunds shall be issued according to Rule 24-H, Connection Charge Refunds. 


RULE 25.5 - WATER USE CREDITS

 

Discussion:  Proposed edits to Rule 28 include a clarification of the method for calculating water credits for residential and non-residential uses and specifies that non-residential uses that receive a Water Use Credit for retrofitting are placed into a fourth non-residential water use “group” on Table II.  The proposed edits also clarify how staff determines the appropriate water credit and tightens loopholes in the existing rule.  A table listing the residential water use credit incentives is added.  The rule is clarified to explain the requirements for disconnection from a potable water system, and to clarify the process for obtaining a credit for gray or sub-potable exterior water use.  Finally, the rule acknowledges the temporary discontinuance of water on a site.

 

A.        Except where a water permit has been canceled, returned or revoked under these Rules, a Pperson may receive a Water Use Credit for the permanent abandonment of some or all of the prior water use on that Site by one of the methods set forth in this Rule.  Water Use Credits shall be documented by written correspondence between the District and the property owner, and shall remain valid unless prohibited by this Rule.  Water Use Credits shall not be documented by notice on a property title, except as specified in Rule 25.5 C B.  Water Use Credits shall not be transferable to any other Site, except as allowed by Rule 24-B and Rule 28-B.

 

1.         A person may apply to the District for a Water Use Credit in advance of the permanent abandonment of capacity for water use, which that Person may cause on that Site.  In such a circumstance, District staff the General Manager shall grant a Water Use Credit if the standards in this section have been met.  The General Manager shall:

 

a.         (1) shall vVerify that the Reduction is one which is permanent (i.e. Permanent Abandonment of Use).

 

b.         (2) shall qQuantify the water use capacity for water use which remains of the site using the water use factors from Rule 24, Tables 1 and/or 2.  If no factor is available on Tables 1 or 2, the General Manager shall make an estimate based upon historical use or other hard documentation.

 

c.         (3) shall qQuantify the reduced water use reduction (the abandoned capacity) using the factors from Rule 24, Tables 1 and/or 2.  If no factor is available on Tables 1 or 2, the General Manager shall use sufficient other information based upon historical use or other hard documentation to quantify water savings.  The abandoned capacity must have resulted either from removal of a lawful water use (i.e. that received a water permit or did not require a water permit for installation or can be proven to have existed prior to March 1, 1985), or from the replacement or retrofit of a lawful water use using lower water use technology.

 

d.         (4) shall qQuantify the increment of reduction which exceeds not caused by the District’s mandated retrofits and/or low water use plumbing fixture requirements target of 15% conservation based upon the criteria used for the Water Allocation EIR, and.  This quantification shall be documented as a Water Use Credit and shall not include credit for the following:

 

(1).       Credit shall not be given for any reduction, which occurs by reason of a District mandated program (e.g. retrofit-on-resale). 

 

(2).       Credit shall not be given for any reduction which occurs as the result of the removal of landscaping installed without a water permit.  An exception to this limitation shall be made for landscaping that was specifically identified, quantified, and permitted by the District.

 

e.         (5) shall pProvide written confirmation written notification to the property owner of the Water Use Credit based upon the quantity set forth in element above. 

 

Credit shall not be given for any reduction, which occurs by reason of a District mandated program (e.g. retrofit-on-resale). 

 

f.          A Water Use Credit obtained pursuant to this method may be applied to, and shall allow, future water use on that Site at any time within a period of 60 months.  After the 60th month, renewal of this Water Use Credit shall be allowed only upon proof by the applicant that verification that some or all water savings represented by that Credit are current (i.e. no water permit or other use or transfer of the Water Use Credit has occurred).  If all savings are not current, a pro-rata reduction shall occur.  A single renewal period of 60 months shall be allowed; thereafter any remaining unused Water Use Credit shall expire.  Residential Water Use Credits shall not be transferable to any other Site.

 

g.         Use of a documented Water Use Credit to offset an expansion of use shall cause recordation of a Notice And Deed Restriction Regarding Limitation  On Use Of Water On A Property.

 

2.         A Person who has not applied in advance to the District for a Water Use Credit (in advance of the abandonment of the capacity for water use) may still request that a Credit be given based on prior permanent reductions in water use capacity which occurred on that Site.   In such a circumstance, the applicant shall have the burden to quantify the reduction of water use capacity and the date such reduction occurred.   Evidence shall be provided by the applicant in the form of dated photographs, official documents, permits or correspondence of the jurisdiction, or by other clear and convincing means.  The process set forth in Rule 25.5-A-1 shall be followed to determine and document the Water Use Credit.

within the preceding eighteen (18) months.  In such a circumstance the applicant shall have the burden to quantify and verify both the reduction of water use capacity, and the date such reduction occurred.  District staff shall determine the increment of reduction which exceeds the District’s target of 15% conservation as set forth in the Allocation EIR and shall determine the effective date for that reduction in capacity for water use.  Credit shall not be given for any reduction, which occurs by reason of a District mandated program (e.g. retrofit-on-resale); Credit shall not be given for any reduction which was completed more than eighteen (18) months prior to the date of the application for the Water Use Credit.  The quantity of water determined by staff to be available for a Water Use Credit under this method, once the Water Use Credit has been granted, may be applied to, and shall allow future water use on that Site within thirty (30) months from the date the reduction first occurred, and upon proof by the applicant that those water savings are still current.  After the 30th month, renewal of this Water Use Credit shall be allowed only upon proof by the applicant that some or all water savings represented by that Credit are current.  If all savings are not current, a pro-rata reduction shall occur.  A single renewal period of thirty (30) months shall be allowed; thereafter any remaining Water Use Credit shall expire.  Residential Water Use Credits shall not be transferable to any other Site.

 

3.         A Water Use Credit obtained pursuant to this method may be applied to, and shall allow, future water use on that Site at any time within a period of 60 months.  After the 60th month, the General Manager shall allow renewal of this Water Use Credit only upon verification that some or all water savings represented by that Credit are current (i.e. no water permit or other use or transfer of the Water Use Credit has occurred).  If all savings are not current, a pro-rata reduction shall occur.  A single renewal period of 60 months shall be allowed; thereafter any remaining unused Water Use Credit shall expire. 

 

5.         A Water Use Credit shall may provide the basis for the General Manager to issue issuance of a water permit for an Intensified Water Use on that Site. provided The following pre-conditions apply to water permit  applications that involve use of a Water Use Credit:

 

(1)        tThe Water Use cCredit is must be current (i.e. has not expired),. and

 

(2)        provided tThe abandoned capacity (i.e. saved water) forming the basis for the Water Use Credit is determined not yet to have been used on that Site.

 

(3)        The abandoned capacity resulted from removal of a lawful water use that received a water permit, did not require a water permit for installation, or can be proven to have existed prior to March 1, 1985

 

4.         There shall be no connection charge assessed for the capacity for water used pursuant to any Water Use Credit.  Connection charges, however, shall apply to the capacity for water use, which exceeds the Water Use Credit, or for any expansion of use following the expiration of the Water Use Credit. 

 

5.         Use of a documented Water Use Credit to offset an expansion of use shall cause recordation of a Notice and Deed Restriction Regarding Limitation on Use of Water on a Property.

 

6.         No refund shall accrue by reason of water use reduction, or abandonment of capacity, whether or not reflected by a Water Use Credit. 

 

7.         Issuance of a Water Use Credit shall not result in any change to a Jurisdiction’s Allocation.  Use of any Water Use Credit shall similarly not cause a change to a Jurisdiction’s Allocation.

 

B.         When a Water Use Credit on a Site results from demolition of a building that straddled a lot line, the property owner shall specify in writing the quantity of water credit assigned to each of the lots formerly occupied by that building.  This designation shall be recorded upon the title of each of the lots.

 

C.        A Water Use Credit shall enable reuse of saved water on the Site.

 

1.         Water Use Credits may be moved between one or more structures on the same Site.

 

2.         The District shall not exact a separate calculation require an additional increment of water for exterior water usage on a vacant lot or lot containing an uninhabitable structure when the owner of the Site has submitted clear and convincing evidence of landscaping and irrigation that was installed by and has been consistently maintained since March 11, 1985.  Acceptable evidence includes dated photographs, official documents, permits or correspondence of the jurisdiction, receipts or invoices for gardening services or purchases related to landscaping and maintaining landscaping on the Site.

 

3.         Residential Water Use Credits shall be granted by the General Manager for installation of ultra-low consumption appliances.  The following credits shall be documented for installation of the following appliances:


Table XX: Ultra-Low Consumption Appliance Credit[I1] 


Appliance

Description

Water Use Credit in Acre-Feet

Dual Flush Ultra-Low Flush Toilet

A toilet designed to allow the user to choose between a light flush (usually 0.8 gallon) and a longer 1.6-gallon flush.

 

0.003 AFA

Instant-Access Hot Water System

A recirculating hot water system or other device that allows hot water within ten (10) seconds at any point of access.

0.005 AFA

Ultra-Low Consumption Dishwasher

A dishwasher designed to use a maximum of 7.66 gallons during every complete cycle.

0.005 AFA

Ultra-Low Consumption Washer (18-28 gallons)

A washing machine designed to use a maximum of 28 gallons during every complete cycle.

 

0.005 AFA

Ultra-Low Consumption Washer (Less than 18 gallons)

A washing machine designed to use less than 18 gallons during every complete cycle.

 

0.01 AFA

Ultra-Low Flush One-Half Gallon-Per-Flush Toilet

A toilet designed to use a maximum of one-half gallon of water per flush.

0.007 AFA

Ultra-Low Flush One Gallon-Per-Flush Toilet

A toilet designed to use a maximum of one-half gallon of water per flush.

0.004 AFA

 


4.         A Water Use Credit for disconnection from a potable water distribution system shall be granted by the General Manager only upon the removal of the connection and written confirmation of such removal by the owner of the water distribution system.

 

D.        An on-site water credit resulting from the temporary abandonment of a formerly lawful use that occurred on or after March 1, 1985, may be applied to, and shall allow, the future reuse of that increment of water on that Site.  A Water Permit for reinstating the former use shall be required. 


RULE 28 - TRANSFER

 

Discussion:  Amendments to Rule 28 include a reference to fees, clarification that open space water use transfer is permitted by Rule 24-B-2 and standardizes the language for non-residential uses.  To strengthen the rule, staff has proposed adding the Board’s standard condition of approval, the requirement that the property owner of an originating site complete the Declaration Regarding Consideration Given for Transferred Water Use Credit.

 

A.  TRANSFER LIMITATION OF PERMIT OWNERSHIP

 

Any permit issued pursuant to these regulations may be transferred from one person to another upon payment of processing fees and charges required for issuance of an amended permit, upon written notification to the District, except as follows:

 

1.         Water pPermits are Site specific and may not be transferred from one location to another, except as provided by Part B of this Rule;

 

2.         Permits may not be transferred when the General Manager determines within thirty (30) days of the written notification required by this rule that the transfer may allow or facilitate increased water consumption of a water distribution system.

 

3.         Transferred permits shall be subject to all conditions attached to the original permit and are subject to fees under Rule 60. Applicants who are not allowed to transfer a permit under this rule may apply for a new permit or an amendment to the existing permit pursuant to Rule 23.

 

4.         Determinations of the General Manager under this rule, either allowing or refusing a permit transfer, may be appealed to the Board pursuant to Rule 70.

 

B.  PROPERTY-TO-PROPERTY AND PROPERTY-TO-JURISDICTION TRANSFERS OF WATER USE CREDITS FOR COMMERCIAL AND INDUSTRIAL USES

 

Water use credits for existing water use which has been allowed by the District on or after January 1, 1985, may be transferred from one property to another for commercial and industrial non-residential connections pursuant to this Rule and upon the approval of the Board of Directors.  Commercial and industrial Non-residential water credits may also be transferred directly into a jurisdiction’s allocation upon the approval of the Board of Directors.  Open space and residential water use shall not be transferred except as allowed by Rule 24-B-2.  The following conditions shall apply:

 

1.         Due to the District’s ongoing concern about the viability of the available water supply and the possibility that water transfers may result in additional water usage, water transfers shall be approved by the Board of Directors, subject to the other provisions of this Rule, if the transfer will not have an adverse impact on the water supply.  In exercising its discretion, the Board of Directors shall consider the impacts of the application under consideration, as well as the cumulative impacts of other transfers, on the water supply.

 

2.         Water use credit transfers shall only occur within a single jurisdiction.  No inter-jurisdictional transfer shall be allowed.  Property-to-property transferred water credits shall not have any impact on a jurisdiction’s allocation.  Property-to-jurisdiction transfers shall increase a jurisdiction’s available allocation.

 

3.         Water use credit transfers shall only occur within a single water distribution system.  No inter-system transfers shall be allowed.

 

4.         Water use credit transfers shall only occur with the prior approval of the city, county or airport district.

 

5.         Water use credit transfers shall only be allowed from an existing commercial or industrial use, and shall be applied to the intensification of another existing commercial or industrial use or added to a jurisdiction’s allocation.  Other than transfers which add to a jurisdiction’s allocation, transfer credits shall not originate from, or be transferred to, any residential use.  Transfer credits shall not derive from any prior open space water use.

 

6.         Property-to-property water use credit transfers shall only be used for intensification purposes.  New water connections shall not be issued based upon a property-to-property transferred water use credit.

 

7.         Property-to-property commercial water use credit transfers shall only enable intensification of an existing commercial or industrial water use capacity, as proposed by a current application for a water permit.  Transfers shall not provide water use capacity for new commercial or industrial water meter connections.  Transferred water credits shall not be “banked” for future use at any new or different site.

 

8.         The use of credits resulting from a property-to-jurisdiction transfer shall be at the discretion of the jurisdiction.

 

9.         All water use credit transfers shall originate only from prior documented commercial water use capacity and shall be subject to each and every limitation on the calculation of water use credits set forth in Rule 25.5.  The District shall permanently retain 15 percent of the amount of water credit transferred as a contribution to general water conservation savings.

 

10.       All transfers of water use credits shall occur only by the written (and recorded) agreement of the owner of record for each parcel from which the transfer originates.  This agreement shall confirm that the transfer of water credit is irrevocable, shall quantify remaining water use capacity required by the originating parcel(s), and acknowledge that any intensification of water use capacity on the originating site thereafter shall result in additional connection charge fees.  If all prior water use capacity is transferred from a site (due to demolition of all structures on that site), the recorded agreement and notice shall consent to permanent removal of the meter connection from the originating site, and acknowledge that the placement of a new meter shall be limited due to unavailability of water.

 

11.       Transfer of water use credits shall only occur upon approval by the Board of Directors.  The Board of Directors shall have sole and exclusive authority to determine the water use capacity, which cannot be transferred by reason of capacity requirements for the originating site.  The Board of Directors shall have sole and exclusive authority to determine the water use capacity requirements for the receiving site.  The Board of Directors shall not approve any water credit transfer where money or other valuable consideration has been given in exchange for the water credit transfer.  The Board of Directors shall not approve any capacity for expanded water use deriving from a transferred water credit in any circumstance where money or other valuable consideration has been given in exchange for use of the water credit.  These limitations shall nonetheless allow the recipient of a water credit transfer to reimburse the donor of that credit for connection fees previously paid to the District for that increment of water.  As a condition of approval, the property owner of the originating site shall complete and submit a Declaration Regarding Consideration Given for Transferred Water Use Credit.

 

12.       Violation of the prohibition on the transfer of water credit for money or other valuable consideration shall result in immediate revocation of the transfer credit.

 

13.       Violation of the prohibition on the transfer of water credit for money or other valuable consideration is a misdemeanor as provided in Section 256 of the Monterey Peninsula Water Management District Law.

 

14.       Transfer of water use credits shall not be approved by the Board of Directors if the effect of the transfer shall cause the originating site to have insufficient water credit to meet the water use capacity requirements of all existing structures on the transferring property site.  If all prior water use is transferred from a site (due to demolition of all structures), the transfer shall be approved only upon the removal of the meter connection from the originating site, and the recordation of the notice specified above.

 

15.       The effect of any approved water credit transfer shall be the irrevocable extinction of any right or entitlement to the actual water use, water use capacity, or water credit which has been transferred from the originating (transferring) site.

 

16.              Before any water use credit transfer shall occur, the transfer fee required by Rule 60 for each originating site shall be paid by the applicant.

 

17.              Before any water use credit transfer shall occur, the applicant shall enter into an indemnification agreement with the District as a Condition of Approval, whereby the applicant agrees to indemnify, defend and hold harmless the District from any and all legal and financial responsibility that may arise in connection with approval of the Application, including but not limited to attorney’s fees and costs that the District may incur.


RULE 30 - DETERMINATION OF WATER ALLOCATIONS

 

Discussion:  Rule 30 has been amended to reflect the current allocation and entitlement situation.  The paragraph on water credits to a jurisdiction has been deleted as this process has not been applied to date.  Policy direction is needed to maintain this provision, as its application is uncertain.

 

  1. From any new supply of water, the District shall establish a specific Allocation for each Jurisdiction, and may also establish a District Reserve Allocation. 

 

  1. Each permit issued by the District for new or Intensified Water Use that results in an increased capacity for water use shall cause an equivalent quantity of water to be debited from the appropriate Allocation account when there is no alternative entitlement available to the property. 

 

  1. There shall be other distinct allocations or entitlements established as necessary to manage water supplies throughout the District.

 

When a Jurisdiction can establish that permanent water savings have been achieved in excess of that necessary to sustain the 15% conservation target set forth by the District in the Water Allocation EIR, the excess increment of permanent water savings may be credited by the District to that Jurisdiction’s Allocation.  Credit shall not be given for any reduction which occurs by reason of a District sponsored or mandated program (e.g. retrofit-on-resale).  Such credits shall be determined by a Resolution approved by the board of directors of the District. The Board shall adopt guidelines to guide the implementation of the credit process provided by this Rule.

 

 

U:\staff\word\committees\waterdemand\2005\09222005\02\item2_exh2a.doc


 [I1]Make this amendable by Resolution.