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WATER DEMAND COMMITTEE |
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ITEM: |
ACTION ITEMS |
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2. |
DISCUSS
SUSPENSION OF WATER CREDIT EXPIRATION IF MORATORIUM IS APPROVED BY |
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Meeting
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September 30, 2010 |
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General
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General Counsel Review: N/A |
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Committee Recommendation: N/A |
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CEQA Compliance: N/A |
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SUMMARY: At the July 21, 2010, Water Demand Committee meeting, the committee reviewed a request by Director Brower for consideration of an extension of Water Use Credits due to the current economic situation. This item was also discussed at the August 16, 2010, Board meeting (Exhibit 22-A). At the Board meeting, it was agreed to defer this item to the next meeting at which all Directors will be in attendance.
In August 2010, staff met with representatives of California American Water and other parties involved in California American Water’s request for a moratorium to comply with the State Water Resources Control Board (SWRCB) Cease and Desist Order (CDO). The California Public Utilities Commission (CPUC) is presently considering the moratorium request. Based on the information obtained during two meetings in August, District staff is recommending the committee renew its discussion on this item with consideration for the effect of a CPUC-approved moratorium that could potentially impact properties that have a Water Use Credit or an On-Site Water Credit.
DISCUSSION: The moratorium proposed by California American Water may impact properties with Water Use Credits and Water Credits. Staff attempted to assess the extent of this possible impact, and was able to identify approximately 8.44 acre-feet of Water Use Credits and Water Credits, including credit available to Quail Lodge (1.07 AFY), Presidio of Monterey (1.34 AFY) and Naval Postgraduate School (2.68 AFY). A full quantification of potential Water Credits available is not possible without an intensive effort that would involve reviewing every property file in the District’s database for current unused credits.
Credits result from many different types of actions and allow the reuse of the water saved on the same site for either a specified period of time (for Water Use Credits) or until there is Permanent Abandonment of Use. Water Use Credits may also be transferred to another Site pursuant to Rule 28. Some examples of how Water Credits are established are listed below:
· Change of use from a higher intensity use to a lower intensity use
· Installation of high efficiency water fixtures
· Removal of water fixtures
· Demolition of a building or use
The District currently suspends the expiration of Water Credits during Stages 6 and 7 of its Expanded Water Conservation and Standby Rationing Plan when a moratorium on use of credits takes place. The moratorium requested by California American Water pursuant to the SWRCB CDO would not trigger Stage 6 and the suspension of credits. If the Board (and committee) consider this circumstance to warrant a suspension of credits, an ordinance will be required. The ordinance process takes a minimum of three months unless there is urgency. The CPUC is likely to rule on California American Water’s moratorium request within that timeframe.
RECOMMENDATION: The Water Demand Committee should discuss its position on suspending Water Credits that are impacted by a CPUC enacted moratorium. The committee may direct staff regarding drafting of an ordinance to address a suspension or may make a recommendation to the Board for consideration when this item is reconsidered.
IMPACT ON STAFF/RESOURCES: N/A
EXHIBITS
2-A Staff
Report for Action Item 22 from August 16, 2010
U:\staff\word\committees\waterdemand\2010\20100930\02\item2.doc