WATER DEMAND COMMITTEE
ITEM:		DISCUSSION ITEM
3.	DISCUSS PROVIDING WATER CREDIT FOR INSTALLATION OF RAINWATER HARVESTING SYSTEMS WHEN PERMITTING A MODIFICATION TO AN EXISTING CONNECTION
Meeting Date:			September 29, 2011	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: Director Brower requested a discussion regarding establishment of a Water Use Credit for installation of rainwater harvesting systems. The concept is to establish a fixture unit credit or Water Credit that could be used to offset added water fixtures or expanded uses within a structure. The concept is not limited to Residential or Non-Residential uses.

The following is an excerpt from an email from Director Brower that included his constituent’s request for discussion on this item as it relates to Water Use Credits. This paragraph from the constituent summarizes the concept that is being discussed:

My goal in our discussion was to open up the conversation about providing a development incentive. What I mean by this is that if someone is willing to spend the money to install a Rain Harvesting system, they ought to be able to be granted extra Fixture Credits allowing them to add perhaps another bathroom. Many people want to build/remodel their homes to include more plumbing fixtures, but cannot do so based on Water Management's rules regarding allowable Fixture Credits. My idea would provide a means to [save water], and would encourage construction.

DISCUSSION: A number of questions arise related to establishing a Water Use Credit for Cisterns, including the concern that a Water Use Credit is currently based on the water savings achieved by permanently replacing an inefficient appliance with a highly efficient model (a hard retrofit that has no variation without tampering). The water savings can then be reinvested into expanded use on the property. This practice results in no net water savings and no increase in demand.

A rainwater harvesting system, on the other hand, has the potential to save significant amounts of water during below normal and wetter Water Years if there is sufficient roof area to harvest enough water to meet the needs of the Landscaping. However, the success of a rainwater harvesting system relies on a commitment to regular operation and maintenance and on rainfall. Rainwater harvesting systems are presently incentivized through the Rebate Program, and the committee may want to consider increasing the amount of Rebate available, rather than implementing a Water Use Credit (see Background for current incentives offered by the District).

In exploring the concept of a rainwater harvesting credit, staff identified the following points for consideration by the committee:

1. MPWMD has no control over a Site’s Landscaping.

Permits are not required to expand or reduce a Landscaped area or to change an Irrigation System, plants or water features in a landscape. If a credit were established, the District would have to have some assurance that the water savings result in a Permanent Abandonment of Use, which is defined in Rule 11 as:

PERMANENT ABANDONMENT OF USE – “Permanent Abandonment of Use” shall mean the permanent removal of a use, including removal of all plumbing formerly serving the abandoned use.

2. How would the District prevent a water User from using the Water Distribution System’s water for irrigation?

3. Rainfall is variable and the Monterey Peninsula is subject to periodic drought.

During times of drought and when Water Rationing has not been declared, water from the Potable Water Distribution System would likely be used to supplement irrigation. It is unlikely that someone would allow a significant investment in Landscaping to die due to lack of rainwater in a Cistern. During Rationing, water from the potable Connection would be available only in a limited amount that would provide sufficient supply for indoor water uses.

4. How would a Water Use Credit be determined?

The District has an established process for calculating Rainwater Harvesting Capacity (the anticipated amount of water that can be expected to be captured given the size of the roof and Cistern(s) and other factors). However, every Site has a different Rainwater Harvesting Capacity that can vary depending on the components of the system and the area of roof being used to harvest available rainfall. Given this information, it stands to reason that a larger home has a greater Rainwater Harvesting Capacity potential. Following this logic, a large home would be able to establish a higher Water Use Credit that could be used for additions to and within the home. The smaller home could potentially not qualify for sufficient Water Use Credit to allow modifications, although the smaller home potentially has more need for additional water fixtures.

The other factor that has to be considered in establishing a Water Use Credit for rainwater harvesting is the calculation of water savings. As mentioned previously, the District has no control over changes to Landscaping or Irrigation Systems. Would a Water Use Credit be based on the water budget for the existing Landscape at the time an application is filed? Would the District require historic data to demonstrate that the existing Landscape was not recently installed for the purpose of gaining a higher Water Use Credit? At this time, Water Use Credits are not given for removing Landscaping for the specific reason that the District does not require a Water Permit to increase a Site’s Landscaping. Rule 25.5 states:

“Credit shall not be given for any reduction which occurs as the result of the removal of Landscaping installed without a Water Permit or installed pursuant to a Water Permit for New Construction. An exception to this limitation shall be made for Non-Residential Landscaping that was specifically identified, quantified, and permitted by the District. Any Water Use Credit granted under this subdivision shall be determined using the Estimated Applied Water for the increment of Landscaping being permanently abandoned.”

This is further addressed in Rule 25.5-I-1. Rule 25.5-I-1 describes the process for documenting Water Credit on a Vacant Lot that has had historic Landscape irrigation:

“The District shall not 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. Examples of acceptable evidence are 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.”

Finally, Rule 25.5-I-2 speaks to establishing a Water Use Credit for disconnecting from a Water Distribution System. This process again requires a Permanent Abandonment of Use:

“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 Water Distribution System Owner or Operator.”

5. Complying with water use restrictions imposed upon the community by the State Water Resources Control Board Cease and Desist Order against California American Water and the reductions required in the Seaside Groundwater Basin by the Seaside Groundwater Basin Adjudication Decision rely on reductions in outdoor water use. Allowing outdoor water savings to be moved to indoor water uses is counterproductive. The water fixtures or capacity added as a result of a rainwater harvesting credit cannot be removed during Water Rationing or during calls for voluntary conservation, whereas an Irrigation System would be shut down.

RECOMMENDATION: The committee should discuss the concept of rainwater harvesting Water Use Credit and provide direction to staff.

BACKGROUND: The District and California American Water have several incentives for installing Graywater Irrigation Systems and rainwater harvesting systems. When funding is available, there are Rebates for both systems. The Rebate for rainwater harvesting is $25 per 100 gallons of storage capacity to a maximum of 25,000 gallons. Graywater Irrigation Systems have a Rebate of $100 for laundry to landscape and $100 for each Bathroom connected to a Graywater Irrigation System. There are also Rebates for various Irrigation System retrofits. More information and program details can be found on the District's website at http://mpwmd.net/rules/2011/20110706/pdfs/RegXIV/rule141.pdf.

In addition, the District recently adopted a provision to its rules that allows rainwater harvesting to offset outdoor demand in New Construction. Rules 24‐A‐5 and 24‐B‐2 (http://mpwmd.net/rules/2011/20110301/pdfs/RegII/RegII_rule24.pdf) explain how installation of rainwater harvesting can almost completely reduce the need for potable exterior water in New Construction.

Installation of these systems can significantly reduce the water bill of a California American Water customer, particularly when the customer's use hits in the upper two tiers of the five tier rate structure. In combination with other outdoor retrofits, rainwater harvesting and Graywater Irrigation Systems can make a significant contribution to overall reductions in Cal‐Am water use, resulting in substantial monetary savings. As the price of water continues to escalate and the area's regulatory reductions expand prior to compliance with the Cease and Desist Order, irrigation of Landscaping with Cal‐Am water will become less and less practical. Therefore, investing in rainwater harvesting and Graywater Irrigation Systems is a sensible solution to help protect an investment in a site's Landscaping.

EXHIBITS

None

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