Loading...
HomeMy WebLinkAbout03-19-24 CPRL&L Committee PacketOTAY WATER DISTRICT CONSERVATION, PUBLIC RELATIONS, LEGAL & LEGISLATIVE COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA TUESDAY March 19, 2024 11:30 A.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. UAGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE COMMITTEE ON ANY SUBJECT MATTER WITHIN THE COMMITTEE’S JURISDICTION INCLUDING AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. ADOPT THE 2024 OTAY WATER DISTRICT LEGISLATIVE PROGRAM POLI- CY GUIDELINES AND TOP 10 LEGISLATIVE PRIORITIES (TENILLE OTERO) [15 minutes] 4. FISCAL YEAR 2024 MID-YEAR UPDATE FOR THE DISTRICT’S FISCAL YEAR 2023-2026 STRATEGIC PLAN (MIKE KERR) [15 minutes] BOARD MEMBERS ATTENDING: Gary Croucher, Chair Mark Robak All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available by contacting the District Secretary at (619) 670-2253. 2 If you have any disability that would require accommodation in order to enable you to participate in this meeting, please call the District Secretary at 670-2253 at least 24 hours prior to the meeting. Certification of Posting I certify that on March 15, 2024 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on March 15, 2024. /s/ Tita Ramos-Krogman, District Secretary 1 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 3, 2024 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Jose Martinez, General Manager SUBJECT: 2024 Legislative Program Policy Guidelines and Top 10 Legislative and Regulatory Priorities GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the 2024 Otay Water District Legislative Program Policy Guidelines and the anticipated 2024 Top 10 Legislative and Regulatory Priorities. COMMITTEE ACTION: See Attachment A. PURPOSE: To provide direction to staff and the Otay Water District’s legislative advocates in the formulation of the District’s response to legislative initiatives on prominent issues that could impact the District and/or other local water agencies. To present to the Board of Directors with the anticipated 2024 Legislative Program Priorities, which staff and legislative advocates will proactively monitor and/or act on during the 2024 legislative session and throughout the year. ANALYSIS: The Otay Water District maintains a set of legislative policy guidelines to direct staff and its legislative advocates on issues important to the District. Staff updates the legislative guidelines annually and/or as needed with the proposed updates presented to the District’s Board of Directors for review, comment, and adoption. The 2024 Legislative Program represents policy guidelines on legislation for the Board’s consideration. Normally, representatives to the California Legislature introduce 2,000 or more bills or significant resolutions. While many bills fail to make it out of their house of origin, many others move on to be signed by the governor and become law. These new laws can AGENDA ITEM 3 2 fundamentally affect special districts. The same is true with each session of the House of Representatives and the U.S. Senate. The 2024 Legislative Program establishes guidelines and policy direction that staff and the District’s legislative advocates can use when monitoring legislative activity to facilitate actions quickly in response to proposed bills or issues. The guidelines provide a useful framework for staff and legislative advocates when evaluating the potential impact of state or federal legislation on the District. This is particularly helpful when a timely response is necessary to address last-minute amendments to legislation, District participation in coalitions on issues, and should calls or letters of support or opposition be needed. Legislation that does not meet the guidelines as set forth or that has potentially complicated or varied implications, will not be acted upon by staff or the District’s legislative advocates, and will instead be presented to the Board directly for guidance in advance of any position being taken. The San Diego County Water Authority has its own set of legislative policy guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated policies and issues from the Water Authority’s guidelines that may have a direct or indirect impact on the District. Staff has incorporated these policies and issues into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices incorporated in the Water Authority’s legislative policy guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. The 2024 Legislative Program Policy Guidelines presents staff’s recommendations for the Board’s review and seeks the Board’s feedback for any additional modifications. Staff will then incorporate the Board’s recommendations into the final document. In general, the guidelines look to protect the District’s interest in a reliable, diverse, safe, and affordable water supply. Moreover, they seek to maintain local control over special district actions to protect the Board’s discretion and ratepayers’ interests and maintain the ability to manage District operations effectively and efficiently. In addition, they express the District’s ongoing support for financial assistance to water agencies and customers regarding nonpayment due to financial hardships related to the pandemic and other factors, water-use efficiency, recycled water, seawater desalination, capital improvement project development, organization-wide safety and security, binational cooperation, climate change, and funding. These guidelines also demonstrate the District’s strong and collaborative support and efforts to advocate against a “one-size- 3 fits-all” approach and any unfunded mandates by legislation or regulation. The proposed redlined 2024 Legislative Program Policy Guidelines are included in Attachment B. A clean copy of the proposed changes is included in Attachment C. When the Board adopts the updated guidelines, staff will incorporate recommended changes by the Board into the final document. In addition, staff is presenting the District’s anticipated Top 10 Legislative Priorities for the year (Attachment D). This list highlights, in no specific order, legislation or issues that District staff and/or the Water Authority is currently monitoring and/or may take or has already taken a position on. The deadline for bill introduction was February 16, 2024. Typically, lobbyists and legislative staff wait until the last couple of days leading up to the deadline, and then hundreds of bills will be introduced. Based on the bills/issues that legislators introduced by this year’s deadline, staff worked with the District’s legislative consultant to develop a list of priority issues for 2024. The anticipated top 10 priorities, include: 1. Affordability and Proposition 2182. Water Bonds and Infrastructure3. Recycled Water and Potable Reuse 4. Water Use and Efficiency5. Water Quality and Contaminants 6. Advanced Clean Fleets Rulemaking Implementation7. Drought and Extreme Weather Response8. State Budget Funding 9. State Water Project/Delta Conveyance10. Water Rights Modernization Staff and the District’s consultant will continue to monitor those bills and issues that may affect the District. Staff will update the Board as necessary throughout the year to provide updates on legislative issues impacting the District. District staff continues to proactively work with the Water Authority’s government relations staff, the District’s legislative consultant, the Association of California Water Agencies, California Special Districts Association, California Water Efficiency Partnership, California Municipality Utilities Association, and other related coalitions, associations, and organizations to monitor legislative issues that affect the District and its ratepayers. It is critical that District and its staff remain engaged in these issues as they could have an impact on how the District conducts day-to-day operations and operates and maintains its facilities, thus affecting its ratepayers. 4 FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. STRATEGIC GOAL: Execute and deliver services that meet or exceed customer expectations, and increase customer engagement in order to improve District Services. Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region about the District’s strategies, policies, projects, programs, and legislative/regulatory issues. LEGAL IMPACT: None. Attachments: A) Committee Action B) Proposed 2024 Otay Water District Legislative Program PolicyGuidelines (Redlined) C) Proposed 2024 Otay Water District Legislative Program PolicyGuidelines (Clean Copy)D) Anticipated Top 10 Legislative Priorities for 2024 E) Presentation “Anticipated Top 10 Legislative for 2024” –Brownstein, Hyatt, Farber and Schreck 5 ATTACHMENT A SUBJECT/PROJECT: 2024 Legislative Program Policy Guidelines and Top 10 Legislative and Regulatory Priorities COMMITTEE ACTION: The Conservation, Public Relations, Legal and Legislative Committee is scheduled to review these items on March 19, 2024. The attachment will be updated with notes from the committee’s discussion. Otay Water District Legislative Program 20232024 1 | P a g e Effective Date: 04/0503/20232024 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2023 2024 legislative policy guidelines provide direction to staff and the District’s legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet, the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the District and its wholesale supplier the San Diego County Water Authority (Water Authority), increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local water agencies. District staff, including the District’s legislative consultant, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. . Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment B Otay Water District Legislative Program 20232024 2 | P a g e Table of Contents The Otay Water Legislative Policy Program Guidelines for 2023 includes the following categories: I.Binational Issues…………………………………………....……………... Page 3 II.Biological and Habitat Preservation…………………………………….. Page 3 III.Desalination……………………………………………………………….. Page 4 IV.Drought Responseand Extreme Weather Response…………………… Page 4 V.Energy……………………………………………………………………… Page 5 VI.Financial Issues…………………………………………………………… Page 6 A.Fees, Taxes, and Charges………………………….......................... Page 6 B.Funding…………………………………………………………….. Page 8 C.Rates………………………………………………………………... Page 10 D.Water Bonds……………………………………………………….. Page 101 E.Affordability……………………………………………………. Page 121 VII.Governance and Local Autonomy……………………………………….. Page 12 VIII.Imported Water Issues……………………………………………………. Page 14 A.Bay-Delta……………………………………………………………… Page 14 i.Co-equal Goals……………………………………………………. Page 14 ii.Bay-Delta Conveyance Project…………………………………… Page 154 B.Metropolitan Water District…………………………………………… Page 15 C.Colorado River………………………………………………………… Page 156 D.State Water Project…………………………………………………….. Page 167 IX.Optimize District Effectiveness……………………...…………....………. Page 17 X.Safety, Security, and Information Technology……………....................... Page 178 XI.Water Quality Issues………………………………………………………. Page 18 XII.Water Recycling and Potable Reuse……………………………………… Page 19 XII.XIII.Water Rights Modernization………………………………………………Page 21 XIII.XIV.Water Service and Facilities……………………………………………… Page 211 XIV.XV.Water- Use and Efficiency……………………………………………………… Page 25 XV.XVI.Workforce Development………………………………………………….. Page 27 Otay Water District Legislative Program 20232024 3 | P a g e I.Binational Issues Support initiatives that: 1.Promote and provide funding for cross-border water supply and infrastructure development projects to serve the San Diego/Baja California border region while protecting local interests. 2.Encourage enhanced cooperation between entities in San Diego and Baja California in development of supply and infrastructure projects that will benefit the entire border region. 3.Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4.Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1.Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II.Biological and Habitat Preservation Support initiatives that: 1.Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystems, rather than individual species. 2.Exempt operation, maintenance, and repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3.Provide environmental regulatory certainty for implementation of existing and proposed long- term water supply programs. 4.Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5.Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6.Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that: 1.Reduce or limit the use of existing water rights or supplies, 2.Restrict the development of future water supplies. 3.Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. Otay Water District Legislative Program 20232024 4 | P a g e III.Desalination Support initiatives that: 1.Provide funding for seawater desalination studies and facilities. 2.Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3.Streamline permitting of desalination facilities. 4.Preserve and protectsprotect potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5.Ensure that desalination intake and discharge regulations are science-based, considering site- specific conditions, and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. IV.Drought and Extreme Weather Response Support initiatives that: 1.Ensure the District and other local agencies including the Water Authority and San Diego County water agencies receive the water supply benefits of investments in local water supply sources. 2.Allow local agencies to achieve compliance with emergency or nonemergency drought regulations or objectives through a combination of water conservation measures and development and implementation of local water supply sources that are not derived from the Delta. 3.Allow forAllow local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. 4.Create a process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5.Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. 5.6.Unlock federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. Oppose initiatives that: 1.Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient local water supplies. Otay Water District Legislative Program 20232024 5 | P a g e 2. Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties with respect to their ability to withstand the impacts and effects of drought. 2.3.Hinder federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. V. Energy Support initiatives that: 1. Provide opportunities for reduced energy rates under tariff schedules for the District and other local water agencies. 2. Provide protection to the District and other local water agencies from energy rate increases and provides rate relief for the District and water agencies. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities, and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4. Promote funding for use of renewable energy in the operation of District facilities. 5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6. Provide greater flexibility in the utilization of the District’s facilities for electrical generation and distribution, and acquisition of electricityal and natural gas power. 7. Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and the operation of its existing and potential in-line hydroelectric, solar, wind, battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8. Make SWP power available for all water projects. 9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resourceresources that provides electric and reliability and resiliency, especially during times of potential blackouts. 11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12. Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13. Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. Otay Water District Legislative Program 20232024 6 | P a g e 14.Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and supports fair compensation in the wholesale energy market for such services. 15.Provides timely, efficient, and cost-effective interconnection of new energy loads and resources such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. 16.Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100 percent % by 2045. Oppose initiatives that: 1.Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2.Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3.Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4.Impede the District or other water agencies in the county, the ability to contract for, deliver, and use natural gas or electricity purchased from the United States, the State of California, and any other public agency or private entity and provide, sell, exchange, or deliver the gas or electricity to itself, any public agency or private entity. 5.Reduce the District’s ability to always maintain high operational efficiency. 6.Restrict the District’s ability to expand or improve infrastructure or facilities. 7.Restrict or caps future energy demands needed for possible expansion of recycled water, potable reuse, and/or desalination projects. 8.Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9.Inhibit the scientific advancement of energy and water efficient/conserving technologies that may be implemented at the District or other agency facilities. 10.Prevent the District from enhancing energy reliability and independence for its facilities. 11.Do not count or credit qualified renewable energy projects toward accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12.Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of the purchase, treatment, transport, or production of water. 13.Result in a lengthy, more complicated, or more costly interconnection of new energy loads and resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. Otay Water District Legislative Program 20232024 7 | P a g e VI.Financial Issues A.Fees, Taxes, and Charges Support initiatives that: 1.Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. 2.Give special districts the discretion to cease performance of unfunded mandates. 3.Provide forProvide fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4.Provide incentives for local agencies to work cooperatively, share costs or resources. 5.Provide for the stable, equitable, and reliable allocation of property taxes. 6.Continue to reform workers compensation. 7.Promote competition in insurance underwriting for public agencies. 8.Produce tangible results, such as water supply reliability or water quality improvement. 9.Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1.Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2.Pre-empt the District or local water agencies’ ability to impose or change rates, charges, fees, or assessments. 3.Weaken the protections afforded the District, the Water Authority or other local water agencieswater agencies under California’s Proposition 1A (November 2, 2004). 4.Reallocate special districts reserves to balance the state budget. 5.Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6.Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7.Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8.Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9.Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10.Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11.Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. 12.Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13.Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. Otay Water District Legislative Program 20232024 8 | P a g e 14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 15. Mandate a specific rate structure for retail water agencies. 16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. 17. Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18. Impose a water user fee to create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than five percent5% of water user fees for administrative costs. 20. Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state. 21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23. Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B. Funding Support initiatives that: 1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the District, the Water Authority, and other local water agencies with additional forms of cost-effective financing for public facilities. 3. Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4. Provide the District, Water Authority, and local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as dams asand pipelines. 5. Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. . 6. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7. Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. Otay Water District Legislative Program 20232024 9 | P a g e 8. Require disbursement decisions in a manner appropriate to the service in question. 9. Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10. Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gassesgases. 11. Continue energy rate incentives for the utilization of electricity during low-peak periods. 12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 13. Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15. Improve and streamline the state’s reimbursement process to ensure timely remittance of IRWM funds. 16. Promote the ability of the Regional Water Management Group to administer state grant funds specifically identified more directly for IRWM Programs. 17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 18. Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, dam repair and rehabilitation, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 20. Authorize, promote, and provide incentives or credits for development of local drought- resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 21. Provide funding for potable reuse demonstration projects and studies. 22. Provide funding for infrastructure improvements at desalination facilities with eligibility for public and private partnerships. 23. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 24. Provide state and/or federal funding for the restoration of the Salton Sea. 25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 26. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 27. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 28. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process. Otay Water District Legislative Program 20232024 10 | P a g e 29. Provide incentive, funding, and assistance to water agencies so that they can comply with AB 32 (2006) requirements, and updated statutory requirements imposed pursuant to SB 32 (2016), SB 100 (2018), and SB 1020 (2022). 30. Remove funding caps from state and federal grant and loan funding sources. 29.31. Streamline federal and state grant reimbursement processes. Oppose initiatives that: 1. Impose additional administrative requirements and/or restrict the District’s, Water Authority’s, or other local water agencies’ ability to finance public facilities through the issuance of long-term debt. 2. Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants. 3. Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4. Establish IRWM funding criteria that limitslimit local discretion in project selection. 5. Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C. Rates Support initiatives that: 1. Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law. 2. Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law. 3. Encourage and promote education to elected officials, community/business leaders, organizations, and the public about water sales and conservation and the District and its wholesaler’s rates and what those rates support including but not limited to infrastructure, asset management, operations, maintenance, water reliability, and more. Oppose initiatives that: 1. Impair the District’s, the Water Authority’s, or local water agencies’ ability to provide reliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4. Mandate a specific rate structure for retail water agencies. 5. Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies. Otay Water District Legislative Program 20232024 11 | P a g e 6. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. D. Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat, construction of an improved method of conveyance of water through or around the Delta that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3. Ensure funding from various propositions for local and regional water-related projects. 4. Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan. 5. Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process. 6. Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7. Limit state overhead to no more than five percent5% of bond funding amounts. 8. Place as much emphasis and providesprovide at least as much funding for surface storage as for groundwater storage. 9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10. Fund emergency and carryover storage projects. 11. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co- equal goals of water supply reliability and Delta ecosystem restoration. 13. Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. 3. Do not provide funding that result in net increases in real water supply and water supply reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. Otay Water District Legislative Program 20232024 12 | P a g e E. Affordability Support initiatives that: 1. Abides by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2. Meets the required standards under Proposition 218 in the California Constitution regarding proportionality of water rates and the cost-of-service provisions. 3. Relyies on data-driven analysis of water affordability, including considerations such as census data and economically -disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012) that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4. 4. Supports the creation of a permanent low-income water rate assistance program that targets 5. providing financial assistance to low-income ratepayers using federal resources or existing resources within either the state General Fund or cap-and-trade dollars. 6.5.Does not burden water districts with excessive or overly prescriptive state mandates including the collection of water taxes or water rate and boundary data, and qualification of customers for low-income assistance programs. 6. Supports the expansion of the low-income assistance programs (LIHWAP) or other programs, using existing resources from the federal government, with the state General Fund or cap-and-trade dollars or other state financial resources. 7. Provide the Water Authority, its member agencies, and water ratepayers with a permanent low-income customer assistance program. 8. Encourage and promote education to elected officials, community/business leaders, organizations, and the public about affordability. Oppose initiatives that: 1. Is not targeted appropriately: Any low-income water rate assistance program 2.1. must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 3. Does not have a funding source: Any low-income water rate assistance program 4.2.needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 5. Does not reinvent the wheel: Any low-income water rate assistance program should be 6.3. built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII. Governance and Local Autonomy Support initiatives that: Otay Water District Legislative Program 20232024 13 | P a g e 1. Expand local autonomy in governing special district affairs. 2. Promote comprehensive long-range planning. 3. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5. Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7. Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8. Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. Oppose initiatives that: 1. Assume the state legislature is better able to make local decisions that affect special district governance. 2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6. Diminish the power or rights of the District to govern relations with its employees. 7. Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless such changes have been expressly authorized by the District’s Boardthe District’s Board has expressly authorized such changes. 8. Create unfunded local government mandates. 9. Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10. Create new oversight roles or responsibility for monitoring special district affairs. 11. Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15. Increase the cost of property and right-of-way acquisition or restrictsrestrict the use of right-of-ways. 16. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions Otay Water District Legislative Program 20232024 14 | P a g e on ballot measures by severely restricting the private resources used to fund those activities. 17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20. Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 21. Limit the District’s ability to establish local priorities for water resources planning decisions. 21.22. Impede the District’s ability to conduct its critical mission efficiently and effectively of always providing and sustaining critical services and under all conditions. VIII. Imported Water Issues A. Bay-Delta i. Co-Equal Goals Support initiatives that: 1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public. 2. Provides conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3. Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. 4. Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher. 5. Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6. Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors. 7. Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 8. Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10. Provide the ongoing state share of funding for the EcoRestore Program. Otay Water District Legislative Program 20232024 15 | P a g e 11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should not place a surcharge on water supply exports, nor should it substantively reduce funding for other measures that protect the environment and public health. Oppose efforts that: 1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater- supply improvements in the Delta that benefit the public at large. 2. Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any entity comprised of MWD or other water project contractors, or any other special interest group. ii. Bay-Delta Conveyance Project Support initiatives that: 1. Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay- Delta project policy principles, including the following: a. On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing the preparation of a water resilience portfolio approach that meets the needs of California’s communities, economy, and environment through the 21st century, including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project. b. The Water Authority’s Board supports Governor Newsome’s Executive Order N-10- 19 and directs staff to inform the Newsome Administration that its support for a single-tunnel Bay-Delta project is expressly conditioned upon the project costs being characterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR. c. As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and Computation Used to Determine Water Charges, and for which costs are recovered in Article 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on project implementation progress, including expenditure tracking, construction progress, project participants’ contributions, and all other relevant activities and developments. 3. Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B. Metropolitan Water District Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2. Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan Water District Act. Otay Water District Legislative Program 20232024 16 | P a g e 3. Require MWD to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. 4. Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member agencies from year to year, in a publicly transparent manner. 5. Amend the Metropolitan Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, and in a manner that is fair and equal to ratepayers, and similar to the voting allocation method of the County Water Authority Act. C. Colorado River Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program 2. Provide funding for Colorado River salinity control projects and other water quality management efforts. 3. Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration in the form of the Salton Sea Management Program consistent with its obligations under Chapters 611, 612, and 613 of the Statutes of 2003. 4. Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation. 5. Provide a governing structure and/or specified managing office over the state's Salton Sea Management Program to provide guidance and oversight of restoration activities. 6. Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including Lake Mead and additional storage opportunities regionally, and through the renegotiation of the new interim shortage guidelines for continued operation of the River. 7. Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance routes as a model of the Governor’s Water Resilience Portfolio approach to water management. 8. Support the State’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 9. Preserve the California Colorado River Board 10. Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization. 11. Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and align with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: Otay Water District Legislative Program 20232024 17 | P a g e 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 2. Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D. State Water Project Support initiatives that: 1. Provide for development of a comprehensive state water plan that balances California's competing water needs, incorporates the water resources and infrastructure concepts included in the Governor’s “Water Resilience Portfolio” and “California’s Water Supply Strategy Adapting to a Hotter, Drier, Future,” and results in a reliable and affordable supply of high- quality water for the State of California and the San Diego region. Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 2. Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP service area. 3. Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX. Optimize District Effectiveness Support initiatives that: 1. Manage District resources in a transparent and fiscally responsible manner. 2. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money. 3. Develop reasonable Air Pollution Control District engine permitting requirements. 4. Reimburse or reduce local government mandates. 5. Allow public agencies to continue offering defined benefit plans. 6. Result in predictable costs and benefits for employees and taxpayers. 7. Eliminate abuses. 8. Retain local control of pension systems. 9. Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1. Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. 2. Create unrealistic ergonomic protocol. 3. Micromanage special district operations. 4. Balance the state budget by allowing regulatory agencies to increase permitting fees. Otay Water District Legislative Program 20232024 18 | P a g e 5. Tax -dependent benefits. 6. Require new reporting criteria on energy intensity involved in water supply. X. Safety, Security, and Information Technology Support initiatives that: 1. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3. Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements. 4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6. Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation. 7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8. Equitably allocate security funding based on need, threats, and/or population. 9. Encourage or promote compatible communication systems. 10. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. 11. Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities. 12. Provide state grantgrants or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. 13. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14. Provide funding for projects that improve the security of the District facilities and operations. 15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates. 2. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the public. XI. Water Quality Issues Otay Water District Legislative Program 20232024 19 | P a g e Support initiatives that: 1. Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2. Incorporate sound scientific principalsprinciples in adopting drinking water standards for drinking water concerns. 3. Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water. 4. Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants. 5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems. 8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contaminationcontamination of drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality. 14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards isare maintained in any reorganized entity. 2. Regulate the conveyance, storage, or release of water supplies as discharge under the Clean Water Act and other water quality control laws. 3. Make water suppliers financially and legally responsible for mitigation of pollution contamination by third parties. 4. Make water suppliers financially and legally responsible for testing or correction of any water quality-related issues associated with private property or on-site plumbing systems. XII. Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. Otay Water District Legislative Program 20232024 20 | P a g e 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increasing Increase funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production. 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply. 20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. Otay Water District Legislative Program 20232024 21 | P a g e 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees tofor the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 6. Water use efficiency standards (AB 1668), which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. XIII. Water Rights Modernization Support initiatives that: 1. Protect existing water rights, water-rights priority, and local agencies’ ability to use water resources for their present and future water supply reliability and environmental well-being. 2. Support funding for data modernization tools needed to monitor and enforce water rights priorities and protect State Water Project supplies, including funding and technical assistance to fully implement existing law requiring metering of diversions and potential legislation or regulation aimed at providing real-time water diversion data. 3. Support voluntary water transfers and exchanges as the means to reallocate water supplies, including for the environment, to meet water supply reliability goals and achieve voluntary agreements on the implementation of the Bay-Delta Water Quality Control Plan and interstate solutions to limited Colorado River supplies. 4. Support more flexible regulations to enhance the ability to divert water in times of high storm runoff and snow melt while protecting existing water rights and the environment. 5. Support increases in civil penalties to deter violations of State Board orders, including curtailment orders. XIVIVI. Water Services and Facilities Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. Otay Water District Legislative Program 20232024 22 | P a g e 2.Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible. 3.Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 4.Provide reliable water supplies to meet California’s short and long-term needs. 5.Promote desalination pilot studies and projects. 6.Encourage feasibility studies of water resource initiatives. 7.Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. 8.Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 9.Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 10.Streamline grant application procedures. 11.Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 12.Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 13.Streamline the permitting and approval process for desalination and other water-related facilities and implementingimplement water transfers that will improve water management. 14.Establish reasonable statewide approaches to sewer reporting standards. 15.Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. 16.Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 17.Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminateeliminate, or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 18.Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. 19.Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 20.Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. 21.Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already Otay Water District Legislative Program 20232024 23 | P a g e invested in water conservation, development of new water sources, storage, or loss prevention. 22.Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers. 23.Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities. 24.Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 25.Provide incentives that encourage contractors to recycle or reduce waste associated with construction of water facilities. 26.Improve the local agencies’ efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to local agencies and the District. 27.Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 28.Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameter pipelines. 29.Encourage water suppliers to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30.Improve the District’s efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to the District. 31.Protect the District, other agencies and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. 32.Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 33.Provide funding for water supplier asset management programs that involve the active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 34.Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power. 35.Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 36.Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, thatwhich is purchased for exclusive use by a city, county, special district, or other entity of local government during a de-energization or public safety power shutoff event. 37.State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 38.Recognize the critical role the District, local agencies, and the Water Authority play as Public Safety Partners in Public Safety Power Shutoff events and other natural or man-made disasters. Further recognizes the importance of the agency’s ability to provide immediate and sustained response for extended periods of time. 39.Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability. Otay Water District Legislative Program 20232024 24 | P a g e 40.Investigate and provide financial support to projects designed to mitigate potential negative impacts of climate change on water supply reliability. Oppose initiatives that: 1.Restrict local control and discretions over water facilities, asset management, and facility operations. 2.Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 3.Create unrealistic or costly water testing or reporting protocol. 4.Disproportionately apportion the cost of water. 5.Create undo hurtles for seawater desalination projects. 6.Create unreasonable or confusing sewer reporting standards. 7.Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. 8.Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that charge or fee would provide. 9.Create unrealistic or is costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 10.Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well. 11.Lessen the focus on public health of the state’s Drinking Water Program. 12.Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 13.Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 14.Impair the District and other local water agencies’ ability to provide and operate the necessary facilities for a safe, reliable, and operational flexible water system. 15.Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16.Restrict local agencies’ ability to respond swiftly and decisively to an emergency that threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in emergencies for repairs or preventive maintenance. 17.Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18.Prohibit or in any way limit the ability of local agencies from making full beneficial use of any water, wastewater, or recycling facility and resource investments. 19.Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. 20.Shift the risks of indemnity for damages and defense of claims from contractors to the District. 21.Impair local agencies’ efforts to acquire property or property interests required for essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22.Increase the cost of property and right of way acquisition. Otay Water District Legislative Program 20232024 25 | P a g e 23.Restrict the District’s use of public rights of way or increase the cost of using public rights of way. 24.Restrict the transfer of property acquired for purposes of environmental mitigation or environmental mitigation credits to other public or private entities for long-term management. 25.Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, thatwhich fail to consider full life-cycle costing. 26.Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness. 27.Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, and useful life. 28.Impair local agencies’ ability to execute the planning, design, and construction of projects using itstheir own employees. 29.Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset condition assessments, and corrosion mitigation in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30.Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety power shutoff event. 31.Would inhibit the District from fulfilling its critical role as a Public Safety Partner and making immediate and sustained response in a Public Safety Power Shutoff event or and other natural or man-made disasters, such as the CARB Advanced Clean Fleet regulation. 32.Would inhibit the District from fulfilling its critical role as an essential service provider from procuring and operating fleets which meet the needs to perform routine and emergency maintenance of water and wastewater systems, such as the CARB Advanced Clean Fleet regulation. 33.Require incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34.Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. XIV.Water -Use and Efficiency Support initiatives that: 1.Provide funding for incentives for water-use efficiency and water conservation programs including water-efficient devices, practices and demonstration projects and studies. 2.Encourage the installation of water-efficient fixtures in new and existing buildings. 3.Promote the environmental benefits of water-use efficiency and water conservation. 4.Enhance efforts to promote water-use efficiency awareness. Otay Water District Legislative Program 20232024 26 | P a g e 5.Offer incentives for landscape water-efficient devices including, but not limited to ET controllers and soil moisture sensors. 6.Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. 7.Permit or require local agencies to adopt ordinances that require or promote water-efficient landscapes for commercial and residential developments. 8.Create tax incentives for citizens or developers who install water-efficient landscapes. 9.Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush and high-efficiency toilets, and irrigation controllers above the state standards. 10.Expand community-based water-use efficiency and education programs. 11.Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc. and alternative water sources, i.e., air conditioner condensate for use in irrigation. 12.Develop incentives for developers and existing customers to install water-efficient landscape in existing developments or new construction. 13.Encourage large state users to save water by implementing water-efficient technologies in all facilities both new and retrofit. 14.Encourage large state water users to save water outdoors. 15.Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. 16.Encourage technological research targeted to more efficient water use. 17.Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve. 18.Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. 19.Restrict Property Owner Associations from forbidding the use of California native plants, other low water use plants, mulch, artificial turf, or semi-permeable materials in well- maintained landscapes. 20.Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities for the purpose of submetering, if feasible. 21.Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water efficient devices. 22.Establish standards for the utilization of high-efficiency commercial coin-operated and residential clothes washers. 23.Provides for federal tax-exempt status for water-use efficiency rebates, consistent with income tax treatment at the state level. 24.Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25.Provide incentives, funding, and assistance to water agencies so that they can meet the water demand management measure requirements in the Urban Water Management Planning Act. 26.Provide incentives, funding, and other assistance to facilitate water-use efficiency partnerships with the energy efficiency sector. 27.Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoor technologies and practices. 28.Recognize local control in determining water use efficiency criteria, such as impact of recycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. Otay Water District Legislative Program 20232024 27 | P a g e 29.Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector. 30.Recognize local control in determining how to meet an overall efficient water use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 31.Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as set forth in SBX7-7, enacted in November 2009, and preserves water agency discretion and options for achieving this objective. 32.31. Ensure accurate and meaningful streamlined reporting of implementation of water-use efficiency and conservation measures. 33.32. Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1.Weaken federal or state water-efficiency standards. 2.Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers yet yield no water savings. 3.Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. 4.Repeal cost-effective efficiency standards for water-using devices. 5.Repeal cost-effective efficiency standards for water-using devices. 6.Create stranded assets by establishing long-term demand management water-use efficiency and water supply requirements that are inconsistent with the Urban Water Management Planning Act. 7.Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of directors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies. 8.Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector. 9.Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or master planning document. 9.10. Require redundant reporting of water conservation-related information. XVI.Workforce Development Support initiatives that: 1.Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2.Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. Otay Water District Legislative Program 20232024 28 | P a g e 3.Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4.Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. 5.Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6.Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7.Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8.Increase the number of educational institutions that provide water-industry related training and related program criteria including but not limited to trades, certifications, and degrees. 9.Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10.Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11.Develop qualified candidates for positions in the water industry. 12.Build awareness of water industry-related jobs through student outreach including but not limited to K-12, community colleges, universities, and other educational institutions as well as outreach to the public. 12.13. Promote regional water and wastewater workforce development programs. Oppose initiatives that: 1.Hinder military veterans from using previous experience, education, and knowledge toward a career in water. 2.Regulate agencies from hiring an experienced, educated, and talented water-industry workforce. Otay Water District Legislative Program 2024 1 | Page Effective Date: 04/03/2024 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2024 legislative policy guidelines provide direction to staff and the District’s legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet the principles set forth in the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager, District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines. While the title of this document suggests these policy guidelines are applicable solely to state and federal legislative issues reviewed by the District and its wholesale supplier the San Diego County Water Authority (Water Authority), increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local water agencies. District staff, including the District’s legislative consultant, often utilize these Legislative Policy Guidelines to provide guidance on emerging and active regulatory and administrative issues. Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance of any position being taken. The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively. Attachment C Otay Water District Legislative Program 2024 2 | Page Table of Contents The Otay Water Legislative Policy Program Guidelines for 2023 includes the following categories: I. Binational Issues…………………………………………....……………... Page 3 II. Biological and Habitat Preservation…………………………………….. Page 3 III. Desalination……………………………………………………………….. Page 4 IV. Drought and Extreme Weather Response………………………………. Page 4 V. Energy……………………………………………………………………… Page 5 VI. Financial Issues…………………………………………………………… Page 6 A. Fees, Taxes, and Charges………………………….......................... Page 6 B. Funding…………………………………………………………….. Page 8 C. Rates………………………………………………………………... Page 10 D. Water Bonds……………………………………………………….. Page 11 E. Affordability……………………………………………………. Page 12 VII. Governance and Local Autonomy……………………………………….. Page 12 VIII. Imported Water Issues……………………………………………………. Page 14 A. Bay-Delta……………………………………………………………… Page 14 i. Co-equal Goals……………………………………………………. Page 14 ii. Bay-Delta Conveyance Project…………………………………… Page 15 B. Metropolitan Water District…………………………………………… Page 15 C. Colorado River………………………………………………………… Page 16 D. State Water Project…………………………………………………….. Page 17 IX. Optimize District Effectiveness……………………...…………....………. Page 17 X. Safety, Security, and Information Technology……………....................... Page 18 XI. Water Quality Issues………………………………………………………. Page 18 XII. Water Recycling and Potable Reuse……………………………………… Page 19 XIII. Water Rights Modernization……………………………………………… Page 21 XIV. Water Service and Facilities……………………………………………….. Page 21 XV. Water Use and Efficiency………………………………………………….. Page 25 XVI. Workforce Development………………………………………………….. Page 27 Otay Water District Legislative Program 2024 3 | Page I. Binational Issues Support initiatives that: 1. Promote and provide funding for cross-border water supply and infrastructure development projects to serve the San Diego/Baja California border region while protecting local interests. 2. Encourage enhanced cooperation between entities in San Diego and Baja California in development of supply and infrastructure projects that will benefit the entire border region. 3. Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4. Develop and enhance communications and understanding of the interdependence of communities on both sides of the border with the goal of improved cross-border cooperation. Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and infrastructure projects in the San Diego/Baja California region. II. Biological and Habitat Preservation Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystems, rather than individual species. 2. Exempt operation, maintenance, and repair of water system facilities from endangered species and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for implementation of existing and proposed long-term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services. 6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that: 1. Reduce or limit the use of existing water rights or supplies, 2. Restrict the development of future water supplies. 3. Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. Otay Water District Legislative Program 2024 4 | Page III. Desalination Support initiatives that: 1. Provide funding for seawater desalination studies and facilities. 2. Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3. Streamline permitting of desalination facilities. 4. Preserve and protect potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5. Ensure that desalination intake and discharge regulations are science-based, considering site-specific conditions, and recognizing that not all technologies or mitigation strategies are feasible or cost-effective at every site. IV. Drought and Extreme Weather Response Support initiatives that: 1. Ensure the District and other local agencies including the Water Authority and San Diego County water agencies receive the water supply benefits of investments in local water supply sources. 2. Allow local agencies to achieve compliance with emergency or nonemergency drought regulations or objectives through a combination of water conservation measures and development and implementation of local water supply sources that are not derived from the Delta. 3. Allow local agencies to account for all water supplies available during droughts and other events when calculating the water supply shortage level. 4. Create a process for development and implementation of emergency drought declarations and regulations that recognizes variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of drought. 5. Recognize variations among communities, regions, and counties with respect to their abilities to withstand the impacts and effects of droughts and ensure that any temporary or permanent statutory or regulatory direction for improving water-use efficiency to meet statutory or regulatory goals or standards is focused on regional achievement of objectives rather than a one-size-fits-all approach. 6. Unlock federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. Oppose initiatives that: 1. Disincentivize or impede water agencies from making investments to maximize the potential for recycled water, potable reuse, desalination, and other drought-resilient local water supplies. Otay Water District Legislative Program 2024 5 | Page 2. Create a “one-size-fits-all” approach to emergency drought declarations and regulations that ignores variations among communities, regions, and counties with respect to their ability to withstand the impacts and effects of drought. 3. Hinder federal and state funding to supplement state and local recovery efforts in areas affected by extreme weather. V. Energy Support initiatives that: 1. Provide opportunities for reduced energy rates for the District and other local water agencies. 2. Provide protection to the District and other local water agencies from energy rate increases and rate relief for the District and water agencies. 3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind, battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage facilities, and other renewable energy generation or storage technology as means of reducing greenhouse gas emissions and energy cost. 4. Promote funding for use of renewable energy in the operation of District facilities. 5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial viability of renewable energy facilities obligated under long-term Power Purchase Agreements. 6. Provide greater flexibility in the utilization of the District’s facilities for electrical generation and distribution, and acquisition of electricity and natural gas. 7. Provide the District with greater flexibility in the licensing, permitting, interconnection, construction, and the operation of its existing and potential in-line hydroelectric, solar, wind, battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other renewable generation or storage technology. 8. Make SWP power available for all water projects. 9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop pumped-energy storage facilities as environmentally sound. 10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and environmentally sound energy resources that provides electric and reliability and resiliency, especially during times of potential blackouts. 11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility discharge systems. 12. Promote the production, purchase, delivery, and use of alternative sources of energy on a wholesale basis. 13. Provide clear statutory, regulatory, or administrative authority for the Water Authority to wheel acquired or produced power to itself, the District, or entities with which the Water Authority is under contract for the purchase, treatment, transport, or production of water. Otay Water District Legislative Program 2024 6 | Page 14. Recognize and monetize all grid ancillary services that pumped hydro-energy storage provides and supports fair compensation in the wholesale energy market for such services. 15. Provide timely, efficient, and cost-effective interconnection of energy loads and resources such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. 16. Recognize the value of large-scale hydropower and pumped-energy storage facilities in assisting the state to meet its renewable and zero-carbon emission goals of 100% by 2045. Oppose initiatives that: 1. Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the facilities of the Water Authority and the District. 2. Impose greenhouse gas reduction obligations on a public water agency for electricity purchased or produced for the sole purpose of operating its system. 3. Adversely affect the ability of the District or other water agencies in the county to own, operate, and/or construct work for supplying its own facilities with natural gas and electricity. 4. Impede the District or other water agencies in the county, the ability to contract for, deliver, and use natural gas or electricity purchased from the United States, the State of California, and any other public agency or private entity and provide, sell, exchange, or deliver the gas or electricity to itself, any public agency or private entity. 5. Reduce the District’s ability to always maintain high operational efficiency. 6. Restrict the District’s ability to expand or improve infrastructure or facilities. 7. Restrict or cap future energy demands needed for possible expansion of recycled water, potable reuse, and/or desalination projects. 8. Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or existing facilities. 9. Inhibit the scientific advancement of energy and water efficient/conserving technologies that may be implemented at the District or other agency facilities. 10. Prevent the District from enhancing energy reliability and independence for its facilities. 11. Do not count or credit qualified renewable energy projects toward accomplishment and satisfaction of the California Renewables Portfolio Standard objectives. 12. Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or administrative authority necessary to wheel - acquired or produced power to itself, the District, or other entities with which the Water Authority is under contract of the purchase, treatment, transport, or production of water. 13. Result in a lengthy, more complicated, or more costly interconnection of energy loads and resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable energy generation or storage technologies to the electric distribution and transmission grid. VI. Financial Issues A. Fees, Taxes, and Charges Otay Water District Legislative Program 2024 7 | Page Support initiatives that: 1. Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions. 2. Give special districts the discretion to cease performance of unfunded mandates. 3. Provide fiscal reform to enhance the equity, reliability, and certainty of special district funding. 4. Provide incentives for local agencies to work cooperatively, share costs or resources. 5. Provide for the stable, equitable, and reliable allocation of property taxes. 6. Continue to reform workers compensation. 7. Promote competition in insurance underwriting for public agencies. 8. Produce tangible results, such as water supply reliability or water quality improvement. 9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that: 1. Impose mandated costs or regulatory constraints on local agencies and their customers without providing subventions to reimburse local agencies for such costs. 2. Pre-empt the District or local water agencies’ ability to impose or change rates, charges, fees, or assessments. 3. Weaken the protections afforded the District, the Water Authority or other local water agencies under California’s Proposition 1A (November 2, 2004). 4. Reallocate special districts reserves to balance the state budget. 5. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6. Establish funding mechanisms that put undue burdens on local agencies or make local agencies de facto tax collectors for the state. 7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8. Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans. 9. Add new mandates to the Department of Water Resources (DWR) to review and approve Urban Water Management Plans beyond those already addressed in DWR guidelines. 10. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document. 11. Weaken existing project retention and withholding provisions that limit the ability of public agencies to drive contractor performance. 12. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13. Impair the Water Authority or its member agencies’ ability to provide reasonable service at reasonable costs to member agencies or to charge all member agencies the same rate for each class of service consistent with cost-of-service requirements of the law. 14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. Otay Water District Legislative Program 2024 8 | Page 15. Mandate a specific rate structure for retail water agencies. 16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. 17. Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs identified. 18. Impose a water user fee to create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than 5% of water user fees for administrative costs. 20. Do not restrict the use of water user fees to only the specific purposes for which they are imposed, without any possibility of diversion to meet other fiscal needs of the state. 21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general obligation bond. 23. Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B. Funding Support initiatives that: 1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the District, the Water Authority, and other local water agencies with additional forms of cost-effective financing for public facilities. 3. Revitalize the Title XVI federal funding program by converting new authorizations to a competitive grant program with congressional oversight while protecting existing Title XVI authorizations for the San Diego region. 4. Provide the District, Water Authority, and local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as dams and pipelines. 5. Provide the District, other local water agencies, and water ratepayers with post-COVID-19 financial relief through a variety of means, including but not limited to, direct financial assistance and flexibility in debt management to assist water ratepayers and water suppliers. 6. Authorize financing of water quality, water security, and water supply infrastructure improvement programs. 7. Establish spending caps on State of California overhead when administering voter approved grant and disbursement programs. 8. Require disbursement decisions in a manner appropriate to the service in question. Otay Water District Legislative Program 2024 9 | Page 9. Encourage funding infrastructure programs that are currently in place and that have been proven effective. 10. Provide financial incentives for energy projects that increase reliability, diversity, and reduce greenhouse gases. 11. Continue energy rate incentives for the utilization of electricity during low-peak periods. 12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects. 13. Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15. Improve and streamline the state’s reimbursement process to ensure timely remittance of IRWM funds. 16. Promote the ability of the Regional Water Management Group to administer state grant funds specifically identified more directly for IRWM Programs. 17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan. 18. Provide funding or other incentives for conservation, peak management programs, water recycling, potable reuse, groundwater recovery and recharge, dam repair and rehabilitation, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other byproducts created in the water treatment process. 20. Authorize, promote, and provide incentives or credits for development of local drought-resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 21. Provide funding for potable reuse demonstration projects and studies. 22. Provide funding for infrastructure improvements at desalination facilities with eligibility for public and private partnerships. 23. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 24. Provide state and/or federal funding for the restoration of the Salton Sea. 25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 26. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 27. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 28. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process. Otay Water District Legislative Program 2024 10 | Page 29. Provide incentive, funding, and assistance to water agencies so that they can comply with AB 32 (2006) requirements, and updated statutory requirements imposed pursuant to SB 32 (2016), SB 100 (2018), and SB 1020 (2022). 30. Remove funding caps from state and federal grant and loan funding sources. 31. Streamline federal and state grant reimbursement processes. Oppose initiatives that: 1. Impose additional administrative requirements and/or restrict the District’s, Water Authority’s, or other local water agencies’ ability to finance public facilities through the issuance of long-term debt. 2. Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants. 3. Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4. Establish IRWM funding criteria that limit local discretion in project selection. 5. Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. C. Rates Support initiatives that: 1. Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law. 2. Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law. 3. Encourage and promote education to elected officials, community/business leaders, organizations, and the public about water sales and conservation and the District and its wholesaler’s rates and what those rates support including but not limited to infrastructure, asset management, operations, maintenance, water reliability, and more. Oppose initiatives that: 1. Impair the District’s, the Water Authority’s, or local water agencies’ ability to provide reliable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4. Mandate a specific rate structure for retail water agencies. 5. Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies. Otay Water District Legislative Program 2024 11 | Page 6. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. D. Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat, construction of an improved method of conveyance of water through or around the Delta that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3. Ensure funding from various propositions for local and regional water-related projects. 4. Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan. 5. Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process. 6. Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7. Limit state overhead to no more than 5% of bond funding amounts. 8. Place as much emphasis and provide at least as much funding for surface storage as for groundwater storage. 9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10. Fund emergency and carryover storage projects. 11. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co- equal goals of water supply reliability and Delta ecosystem restoration. 13. Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2. Do not provide funding for infrastructure that resolve statewide or regional conflicts of water supplies. 3. Do not provide funding that result in net increases in real water supply and water supply reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability. Otay Water District Legislative Program 2024 12 | Page E. Affordability Support initiatives that: 1. Abide by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of the California Water Code which reads that, “every human being has the right to safe, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.” The State Water Resources Control Board also has a resolution supporting this program. 2. Meet the required standards under Proposition 218 in the California Constitution regarding proportionality of water rates and the cost-of-service provisions. 3. Rely on data-driven analysis of water affordability, including considerations such as census data and economically disadvantaged communities. As such, the District supports the continued implementation of AB 2334 (2012) that requires the Department of Water Resources to provide this analysis and place it in California’s Water Plan. 4. Support the creation of a permanent low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using federal resources or existing resources within either the state General Fund or cap-and-trade dollars. 5. Does not burden water districts with excessive or overly prescriptive state mandates including the collection of water taxes or water rate and boundary data, and qualification of customers for low-income assistance programs. 6. Support the expansion of the low-income assistance programs (LIHWAP) or other programs, using existing resources from the federal government, with the state General Fund or cap-and-trade dollars or other state financial resources. 7. Provide the Water Authority, its member agencies, and water ratepayers with a permanent low-income customer assistance program. 8. Encourage and promote education to elected officials, community/business leaders, organizations, and the public about affordability. Oppose initiatives that: 1. Is not targeted appropriately: Any low-income water rate assistance program must be limited in scope to those individuals. By seeking to do too much, effectiveness could be limited. Examples of this could include extending program resources to domestic wells or water-use efficiency programs. 2. Does not have a funding source: Any low-income water rate assistance program needs to identify specific sources of sustainable funding and does not include a water tax or water surcharge. 3. Does not reinvent the wheel: Any low-income water rate assistance program should be built upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operating expense of creating and administering a new method. VII. Governance and Local Autonomy Support initiatives that: 1. Expand local autonomy in governing special district affairs. 2. Promote comprehensive long-range planning. Otay Water District Legislative Program 2024 13 | Page 3. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services. 4. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5. Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7. Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8. Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions. Oppose initiatives that: 1. Assume the state legislature is better able to make local decisions that affect special district governance. 2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6. Diminish the power or rights of the District to govern relations with its employees. 7. Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless the District’s Board has expressly authorized such changes. 8. Create unfunded local government mandates. 9. Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10. Create new oversight roles or responsibility for monitoring special district affairs. 11. Change the San Diego County Water Authority Act regarding voting structure unless it is based on population. 12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15. Increase the cost of property and right-of-way acquisition or restrict the use of right-of-ways. 16. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. Otay Water District Legislative Program 2024 14 | Page 17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure. 18. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20. Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 21. Limit the District’s ability to establish local priorities for water resources planning decisions. 22. Impede the District’s ability to conduct its critical mission efficiently and effectively of always providing and sustaining critical services and under all conditions. VIII. Imported Water Issues A. Bay-Delta i. Co-Equal Goals Support initiatives that: 1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public. 2. Provide conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3. Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. 4. Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher. 5. Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6. Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors. 7. Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 8. Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10. Provide the ongoing state share of funding for the EcoRestore Program. Otay Water District Legislative Program 2024 15 | Page 11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation shouldnot place a surcharge on water supply exports, nor should it substantively reduce funding forother measures that protect the environment and public health. Oppose efforts that: 1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater-supply improvements in the Delta that benefit the public at large.2.Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, theCentral Valley Project Contractors, the State and Federal Contractors Water Agency, or anyentity comprised of MWD or other water project contractors, or any other special interestgroup. ii.Bay-Delta Conveyance Project Support initiatives that: 1.Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay- Delta project policy principles, including the following: a.On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing thepreparation of a water resilience portfolio approach that meets the needs ofCalifornia’s communities, economy, and environment through the 21st century,including consideration of multi-benefit approaches that meet multiple needs at once,and a single-user tunnel Bay-Delta project. b.The Water Authority’s Board supports Governor Newsome’s Executive Order N-10-19 and directs staff to inform the Newsome Administration that its support for asingle-tunnel Bay-Delta project is expressly conditioned upon the project costs beingcharacterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR.c.As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data andComputation Used to Determine Water Charges, and for which costs are recovered inArticle 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitorand provide regular updates on project implementation progress, including expendituretracking, construction progress, project participants’ contributions, and all other relevantactivities and developments. 3.Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B.Metropolitan Water District Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2.Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan WaterDistrict Act. Otay Water District Legislative Program 2024 16 | Page 3.Require MWD to refund or credit to its member agencies revenues collected from them thatresult in reserve balances greater than the maximum reserve levels established pursuant tostate legislation. 4.Require MWD to implement actions that advance and support its long-term financial stability,fiscal sustainability, and that moderate fluctuations in rates and charges for its memberagencies from year to year, in a publicly transparent manner.5.Amend the Metropolitan Water District Act to change voting allocation on its Board ofDirectors based on a member agency’s total financial contribution to MWD, in a manner that is fair and equal to ratepayers, and similar to the voting allocation method of the CountyWater Authority Act. C.Colorado River Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan,including the Lower Colorado River Multi-Species Conservation Program2.Provide funding for Colorado River salinity control projects and other water quality management efforts. 3.Provide for state and federal authorizations and appropriations of non-fee-based funds toimplement Salton Sea mitigation and the State’s phased approach to restoration in the form ofthe Salton Sea Management Program consistent with its obligations under Chapters 611, 612,and 613 of the Statutes of 2003. 4.Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation.5. Provide a governing structure and/or specified managing office over the state's Salton SeaManagement Program to provide guidance and oversight of restoration activities.6. Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including Lake Mead and additional storage opportunities regionally, and through the renegotiation of the new interim shortage guidelines for continuedoperation of the River.7. Allow for the option to create an alternate conveyance route, when technically and financiallyfeasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance routes as a model of the Governor’s Water Resilience Portfolio approach to watermanagement.8. Support the State’s Salton Sea Management Program under the guidelines of the revisedWater Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 9.Preserve the California Colorado River Board10.Ensure the interests of the members of the California Colorado River Board continue to beaddressed in any state government reorganization.11.Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and align with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: Otay Water District Legislative Program 2024 17 | Page 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties tothe Quantification Settlement Agreement.2.Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D.State Water Project Support initiatives that: 1.Provide for development of a comprehensive state water plan that balances California'scompeting water needs, incorporates the water resources and infrastructure concepts includedin the Governor’s “Water Resilience Portfolio” and “California’s Water Supply StrategyAdapting to a Hotter, Drier, Future,” and results in a reliable and affordable supply of high- quality water for the State of California and the San Diego region. Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increases the cost of imported waterwithout also improving the reliability and/or quality of the water. 2.Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urbanagencies to transfer and/or bank CVP water for use both within and outside the CVP servicearea. 3.Transfer operational control of the State Water Project or any of its facilities to MWD, the State Water Project contractors, Central Valley Project contractors, the State and Federal Contractors Water Agency, any entity comprised of MWD or other water project contractors, or any other special interest group. IX.Optimize District Effectiveness Support initiatives that: 1.Manage District resources in a transparent and fiscally responsible manner. 2.Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts thatsave ratepayers money.3.Develop reasonable Air Pollution Control District engine permitting requirements.4.Reimburse or reduce local government mandates.5. Allow public agencies to continue offering defined benefit plans. 6.Result in predictable costs and benefits for employees and taxpayers.7.Eliminate abuses.8.Retain local control of pension systems.9.Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1.Restrict the use of, or reallocate, district property tax revenues to the detriment of specialdistricts.2.Create unrealistic ergonomic protocol.3.Micromanage special district operations. 4.Balance the state budget by allowing regulatory agencies to increase permitting fees. Otay Water District Legislative Program 2024 18 | Page 5. Tax-dependent benefits. 6. Require new reporting criteria on energy intensity involved in water supply. X. Safety, Security, and Information Technology Support initiatives that: 1. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3. Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements. 4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6. Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation. 7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8. Equitably allocate security funding based on need, threats, and/or population. 9. Encourage or promote compatible communication systems. 10. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs. 11. Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities. 12. Provide state grants or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities. 13. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14. Provide funding for projects that improve the security of the District facilities and operations. 15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates. 2. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the public. XI. Water Quality Issues Otay Water District Legislative Program 2024 19 | Page Support initiatives that: 1. Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2. Incorporate sound scientific principles in adopting drinking water standards for drinking water concerns. 3. Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water. 4. Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants. 5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems. 8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination of drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts. 12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality. 14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards are maintained in any reorganized entity. 2. Regulate the conveyance, storage, or release of water supplies as discharge under the Clean Water Act and other water quality control laws. 3. Make water suppliers financially and legally responsible for mitigation of pollution contamination by third parties. 4. Make water suppliers financially and legally responsible for testing or correction of any water quality-related issues associated with private property or on-site plumbing systems. XII. Water Recycling and Potable Reuse Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. Otay Water District Legislative Program 2024 20 | Page 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increase funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production. 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply. 20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. Otay Water District Legislative Program 2024 21 | Page 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees for the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 6. Water use efficiency standards (AB 1668), which do not reflect the impact that higher TDS recycled water has on the usage rates to reduce salt loading in areas of use. XIII. Water Rights Modernization Support initiatives that: 1. Protect existing water rights, water-rights priority, and local agencies’ ability to use water resources for their present and future water supply reliability and environmental well-being. 2. Support funding for data modernization tools needed to monitor and enforce water rights priorities and protect State Water Project supplies, including funding and technical assistance to fully implement existing law requiring metering of diversions and potential legislation or regulation aimed at providing real-time water diversion data. 3. Support voluntary water transfers and exchanges as the means to reallocate water supplies, including for the environment, to meet water supply reliability goals and achieve voluntary agreements on the implementation of the Bay-Delta Water Quality Control Plan and interstate solutions to limited Colorado River supplies. 4. Support more flexible regulations to enhance the ability to divert water in times of high storm runoff and snow melt while protecting existing water rights and the environment. 5. Support increases in civil penalties to deter violations of State Board orders, including curtailment orders. XIV. Water Services and Facilities Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. Otay Water District Legislative Program 2024 22 | Page 2.Promote the coordination and integration of local, state, and federal climate change policiesand practices to the greatest extent feasible.3.Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement.4.Provide reliable water supplies to meet California’s short and long-term needs.5.Promote desalination pilot studies and projects.6.Encourage feasibility studies of water resource initiatives.7. Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems includingwater recycling, groundwater recovery and recharge, surface water development projects andseawater desalination.8.Fund enhancements to water treatment, recycling, and other facilities to meet increasedregulations. 9. Mandate uniform or similar regulations and procedures by state agencies in the processingand administering of grants and programs.10.Streamline grant application procedures.11. Reduce regulations and other impediments for willing sellers and buyers to engage in watertransfer agreements. 12.Promote or assist voluntary water transfers between willing buyers and willing sellers andmove those transactions through without delay.13.Streamline the permitting and approval process for desalination and other water-relatedfacilities and implement water transfers that will improve water management.14.Establish reasonable statewide approaches to sewer reporting standards. 15.Generate greater efficiencies, better coordinate program delivery, and eliminate duplication inprograms for source water protection without lessening the focus on public health of thestate’s Drinking Water Program.16.Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 17. Establish federal tax incentives to support U.S. companies in the development of newdesalination technologies that can lower productions costs, eliminate, or reduce impingementor entrainment, reduce energy use, and enhance public acceptance of desalinated water.18. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply.19.Require the State Water Resources Control Board to exercise its authority, ensure robustfunding, and implement the Salton Sea mitigation and restoration plan, meet state obligations,and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 20. Support solutions to water supply issues that address common challenges, provide acomprehensive approach that is fair to all users, balance the needs of urban and ruralcommunities, and take into consideration the interests of all stakeholders as well as the impactto the environment. 21. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have alreadyinvested in water conservation, development of new water sources, storage, or lossprevention. Otay Water District Legislative Program 2024 23 | Page 22.Provide funding for water infrastructure development, infrastructure security, andrehabilitation and replacement projects that benefit ratepayers.23.Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities.24.Provide funding for projects that enhance security against terrorist acts or other criminalthreats to water operation, services, facilities, or supplies.25.Provide incentives that encourage contractors to recycle or reduce waste associated withconstruction of water facilities. 26.Improve the local agencies’ efforts to maintain and protect its property, rights of way,easements, pipelines, and related facilities and minimizes liability to local agencies and theDistrict.27.Protect the local agencies’ properties from restrictions when surrounding properties areincorporated into preservation areas. 28. Encourage the use of current and emerging technologies for monitoring and assessing thecondition of large diameter pipelines.29.Encourage water suppliers to develop and execute asset management programs that includevisual inspections, internal/external inspections, asset condition assessments, corrosionmitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems.30.Improve the District’s efforts to maintain and protect its property, rights of way, easements,pipelines, and related facilities and minimizes liability to the District.31.Protect the District, other agencies and the Water Authority properties from restrictions whensurrounding properties are incorporated into preservation areas. 32.Provide funding to water agencies for the voluntary retrofit of facilities for on-site generationof chlorine.33. Provide funding for water supplier asset management programs that involve the activemonitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 34. Provide for restrictions on price gouging during public safety power shutoff events and for atleast 72 hours following restoration of power.35.Provide that de-energization or public safety power shutoff events may be included as acondition constituting a state of emergency or local emergency. 36. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, which is purchased for exclusive use by a city, county, special district, or otherentity of local government during a de-energization or public safety power shutoff event.37.State that the use of alternative power sources (such as generators) by essential public servicesduring de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 38. Recognize the critical role the District, local agencies, and the Water Authority play as PublicSafety Partners in Public Safety Power Shutoff events and other natural or man-madedisasters. Further recognizes the importance of the agency’s ability to provide immediate andsustained response for extended periods of time. 39.Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability.40. Investigate and provide financial support to projects designed to mitigate potential negativeimpacts of climate change on water supply reliability. Otay Water District Legislative Program 2024 24 | Page Oppose initiatives that: 1.Restrict local control and discretions over water facilities, asset management, and facility operations.2.Make urban water supplies less reliable or substantially increases the cost of imported waterwithout also improving the reliability and/or quality of the water.3.Create unrealistic or costly water testing or reporting protocol.4. Disproportionately apportion the cost of water. 5.Create undo hurtles for seawater desalination projects.6. Create unreasonable or confusing sewer reporting standards.7.Create administrative or other barriers to sales between willing buyers and willing sellers thatdelay water transfers.8.Create a broad-based user fee that does not support a specific local program activity or benefit; any fee must provide a clear nexus to the benefit local ratepayers or local watersupplies from the establishment that charge or fee would provide.9.Create unrealistic or is costly to obtain water quality standards for potable water, recycledwater, or storm water runoff.10. Change the focus of the state’s Drinking Water Program or weaken the parts of the program that work well.11. Lessen the focus on public health of the state’s Drinking Water Program.12. Impose undue burden, financial or otherwise, on communities that have already invested inwater conservation, development of new water sources, storage, or loss prevention.13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement.14.Impair the District and other local water agencies’ ability to provide and operate the necessaryfacilities for a safe, reliable, and operational flexible water system.15. Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16.Restrict local agencies’ ability to respond swiftly and decisively to an emergency thatthreatens to disrupt water deliveries or restricts the draining of pipelines or other facilities inemergencies for repairs or preventive maintenance.17.Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18.Prohibit or in any way limit the ability of local agencies from making full beneficial use ofany water, wastewater, or recycling facility and resource investments.19.Prohibit the use of alternative contract procurement methods that can be utilized in theconstruction of water facilities. 20.Shift the risks of indemnity for damages and defense of claims from contractors to the District.21.Impair local agencies’ efforts to acquire property or property interests required for essentialcapital improvement projects or acquisition of property to meet pipeline water drain-downneeds for existing facilities. 22.Increase the cost of property and right of way acquisition. 23.Restrict the District’s use of public rights of way or increase the cost of using public rights ofway. Otay Water District Legislative Program 2024 25 | Page 24.Restrict the transfer of property acquired for purposes of environmental mitigation orenvironmental mitigation credits to other public or private entities for long-term management.25.Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, which fail to consider full life-cycle costing.26.Establish meter testing requirements for source water meters that fail to consider industrystandards and cost-effectiveness.27.Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, anduseful life.28. Impair local agencies’ ability to execute the planning, design, and construction of projectsusing their own employees.29.Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, assetcondition assessments, and corrosion mitigation in a manner that recognizes the individualityand uniqueness of each water supplier and its systems.30.Authorize air quality management districts or other regulatory bodies to adopt or maintainrules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety powershutoff event.31. Would inhibit the District from fulfilling its critical role as a Public Safety Partner and makingimmediate and sustained response in a Public Safety Power Shutoff event or and other naturalor man-made disasters, such as the CARB Advanced Clean Fleet regulation. 32. Would inhibit the District from fulfilling its critical role as an essential service provider fromprocuring and operating fleets which meet the needs to perform routine and emergencymaintenance of water and wastewater systems, such as the CARB Advanced Clean Fleetregulation. 33.Require incorporation of climate change considerations into regional and local water management planning that does not provide flexibility to the local and regional water agencies in determining the climate change impact and identification of adaptation and mitigation measures. 34.Impose top-down “one-size-fits-all” climate change mandates that fail to account for hydrological, meteorological, economic, and social variation across the state and/or that fail to incorporate local and regional planning and implementation priorities and protocols. XV. Water Use and Efficiency Support initiatives that: 1. Provide funding for incentives for water-use efficiency and water conservation programsincluding water-efficient devices, practices and demonstration projects and studies.2. Encourage the installation of water-efficient fixtures in new and existing buildings. 3.Promote the environmental benefits of water-use efficiency and water conservation.4. Enhance efforts to promote water-use efficiency awareness.5.Offer incentives for landscape water-efficient devices including, but not limited to ETcontrollers and soil moisture sensors.6.Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. Otay Water District Legislative Program 2024 26 | Page 7.Permit or require local agencies to adopt ordinances that require or promote water-efficientlandscapes for commercial and residential developments.8.Create tax incentives for citizens or developers who install water-efficient landscapes. 9.Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flushand high-efficiency toilets, and irrigation controllers above the state standards.10. Expand community-based water-use efficiency and education programs.11.Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc.and alternative water sources, i.e., air conditioner condensate for use in irrigation. 12. Develop incentives for developers and existing customers to install water-efficient landscapein existing developments or new construction.13.Encourage large state users to save water by implementing water-efficient technologies in allfacilities both new and retrofit.14.Encourage large state water users to save water outdoors. 15. Educate all Californians on the importance of water, and the need to conserve, manage, andplan for the future needs.16.Encourage technological research targeted to more efficient water use.17.Give local agencies maximum discretion in selecting water-use efficiency and conservationprograms that work for their customers and the communities they serve. 18.Require the Department of Water Resources to implement a uniform statewide turf rebatesubsidy or incentive program.19.Restrict Property Owner Associations from forbidding the use of California native plants,other low water use plants, mulch, artificial turf, or semi-permeable materials in well-maintained landscapes. 20.Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities forthe purpose of submetering, if feasible.21.Ensure plumbing codes and standards that facilitate the installation and/or retrofit of waterefficient devices. 22.Establish standards for the utilization of high-efficiency commercial and residential clothes washers.23. Provide federal tax-exempt status for water-use efficiency rebates, consistent with income taxtreatment at the state level.24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25. Provide incentives, funding, and assistance to water agencies so that they can meet the waterdemand management measure requirements in the Urban Water Management Planning Act.26. Provide incentives, funding, and other assistance to facilitate water-use efficiencypartnerships with the energy efficiency sector. 27. Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoortechnologies and practices.28.Recognize local control in determining water use efficiency criteria, such as impact ofrecycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. 29. Encourage reasonable tracking of water use and improved efficiency in the Commercial,Industrial, and Institutional (CII) sector. Otay Water District Legislative Program 2024 27 | Page 30. Recognize local control in determining how to meet an overall efficient water use goal, basedon the combined efficient indoor use, outdoor use, and leak loss, as established under thecriteria provided for in statute. 31.Ensure accurate and streamlined reporting of implementation of water-use efficiency andconservation measures.32.Promote statewide implementation of water-use efficiency best management practices anddemand management measures as defined in the Urban Water Management Planning Act. Oppose efforts that: 1.Weaken federal or state water-efficiency standards.2.Introduce additional analytical and reporting requirements that are time-consuming for localagencies to perform and result in additional costs to consumers yet yield no water savings.3.Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping.4.Repeal cost-effective efficiency standards for water-using devices.5.Repeal cost-effective efficiency standards for water-using devices.6.Create stranded assets by establishing long-term demand management water-use efficiencyand water supply requirements that are inconsistent with the Urban Water Management Planning Act.7.Prescribe statewide mandatory urban and agricultural water-use efficiency practices,including, but not limited to, methods, measures, programs, budget allocation, and designationof staff dedicated to water conservation programs, that override the authority of the boards ofdirectors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies.8.Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievableBest Management Practices or compliance targets, or would otherwise impair economicactivity or the viability of the CII sector. 9.Mandate that water agencies include an embedded energy calculation for their water supply sources in the Urban Water Management Plan or any other water resource planning or masterplanning document.10. Require redundant reporting of water conservation-related information. XVI.Workforce Development Support initiatives that: 1. Advocate for local, regional, and state programs that support a high-performing workforce and increase the talent pool for water agencies. 2. Advocate for military veterans in the water industry workforce to ensure that veterans receive appropriate and satisfactory credit towards water and wastewater treatment system certifications in California for work experience, education, and knowledge gained in military service. 3.Lower employment barriers for military veterans and transitioning military and that sustain vital water and wastewater services for the next generation. 4. Recruit and support veterans and transitioning military through internships, cooperative work experiences, and other resources. Otay Water District Legislative Program 2024 28 | Page 5.Recruit and support underserved communities in the water industry through internships, cooperative work experiences, and other resources. 6. Advocate and encourage candidate outreach and recruitment in relation to mission-critical job categories in water and wastewater. 7.Ensure advanced water treatment operators and distribution system operators of potable reuse and recycled water facilities have a career advancement path as certified water and/or wastewater treatment plant operators. 8.Increase the number of educational institutions that provide water-industry related training and related program criteria including but not limited to trades, certifications, and degrees. 9.Increase the talent pool of future water industry workers through educational programs, internships, and other resources. 10. Provide funding to educational institutions, water agencies, and workforce students regarding careers in the water industry. 11. Develop qualified candidates for positions in the water industry. 12.Build awareness of water industry-related jobs through student outreach including but not limited to K-12, community colleges, universities, and other educational institutions as well as outreach to the public. 13.Promote regional water and wastewater workforce development programs. Oppose initiatives that: 1. Hinder military veterans from using previous experience, education, and knowledge toward acareer in water.2.Regulate agencies from hiring an experienced, educated, and talented water-industryworkforce. 27707746.1 Anticipated Top 10 Legislative Priorities for 2024 1.Affordability and Proposition 218 – Water affordability became one of ACWA and Otay’stop issues during the 2021-2022 legislative session and again in the 2023-2024 session. In 2020, the federal government funded the Low-Income Household Water AssistanceProgram (LIHWAP) to provide financial assistance to low-income Californians with residential water utility costs and debt repayment. California was allocated $116 million inone-time funding to provide LIHWAP assistance. The Department of Community Servicesand Development (CSD) was designated as the administering agency for LIHWAP inCalifornia. In response to low LIHWAP participation and grant expenditure, CSD expandedeligibility to include current bills to maximize grant expenditures through August 2023, the end of the federal grant period, and was further extended until March 31, 2024. United States Senator Alex Padilla has introduced S. 3830, a LIHWAP bill that, if passed,would establish a permanent, nationwide water assistance program that is modeled after thecurrent program, due to expire in March 2024. The bill would authorize grants to States, Territories, and Tribes to assist low-income households in paying arrearages and other ratescharged to such households for drinking water or wastewater services; provide technicalassistance to rural, Tribal, and underserved owners or operators of public water systems ortreatment works; align income eligibility with the Low Income Household Energy AssistanceProgram (LIHEAP), Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income, and means-testedveterans’ programs; and transfer authority of the program from HHS to the EPA uponcompletion of the Rural and Low-Income Water Assistance Pilot Program authorized in theBipartisan Infrastructure Law. Last session, Assembly Bill 399 (Boerner) was signed into law specific to the San DiegoCounty Water Authority to protect its ratepayers. The District Authorized Brownstein PolicyAdvisors to lobby in support of the bill, joining the San Diego County Water Authority’s andCity of San Diego’s lobbying effort. The law as signed into law requires as an additional condition to the Local Agency Formation Commission (LAFCO) process for allowing the detachment of a public agency from their relevant county water authority, that the majority ofthe voters within the jurisdiction of the county water authority vote to approve thedetachment at a scheduled election. Three bills have been introduced this session regarding Proposition 218 to further protect water agencies from lawsuits costing them millions in refunds to plaintiffs. The bills includeOtay’s sponsored bill, Senate Bill 1072 (Padilla), which would clarify that Proposition 218does not provide for refund remedies to plaintiffs in Proposition 218 lawsuits. Another bill isthe Association of California Water Agencies sponsored, Assembly Bill 2257 (Wilson), would aid public agencies in defending against Proposition 218 lawsuits by requiring litigants to participate and raise specific objections during the public administrative process.In doing so, this proposal intends to bring to light all possible complaints and provide anopportunity to resolve a dispute and avoid litigation altogether. The third bill is Assembly Attachment D 27707746.1 2 Bill 1827 (Papan), which would clarify that water agencies can use existing reasonable and well accepted methods for allocating the incremental costs associated with higher water usage (peaking) demands to impose fees that reflect the costs associated with higher usage demands. 2. Water Bonds and Infrastructure - Three significant water related bonds were proposed inthe legislature last session, however, none passed as the Governor wanted to focus on hisMental Health Bond Proposal (Proposition 1) that was on the primary election ballot. As votes are still being counted, should the Governor’s mental health proposal ultimatelysucceed, water stakeholders will work to push the administration’s attention back to the needfor a water/infrastructure bond. ACWA is advocating for a $7.85 billion bond investmentin water infrastructure for recycled water, groundwater recharge, storage, flood protection,dam safety, conveyance, storage, safe drinking water, water quality, regional watershed resilience, State Water Project improvements, and water conservation. The three bills pending in the legislature: •SB 867 (Allen): Drought and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based ClimateSolutions, Climate Smart Agriculture, and Park Creation and Outdoor Access BondAct of 2023 – Would authorize the issuance of bonds to finance projects for droughtand water resilience, wildfire and forest resilience, coastal resilience, extreme heatmitigation, biodiversity and nature-based climate solutions, climate-smart agriculture, and park creation and outdoor access programs. •AB 1567 (E. Garcia): Safe Drinking Water, Wildfire Prevention, DroughtPreparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023 – Would authorize the issuance of bonds to finance projects for safe drinking water, wildfire prevention, drought preparation, floodprotection, extreme heat mitigation, and workforce development programs. •SB 638 (Eggman): Climate Resiliency and Flood Protection Bond Act of 2024 – Would authorize the issuance of bonds for flood protection and climate resiliencyprojects. We will continue to monitor the progress and feasibility of these bonds as they go through the legislative process. 3.Recycled Water & Potable Reuse – On December 19, 2023, the State Water ResourcesControl Board approved regulations that will allow water systems to develop treatmentprotocols to convert wastewater into high quality drinking water, known as direct potable reuse. The rules would require extensive treatment and monitoring with various steps designed to remove chemicals and pathogens that remain in sewage after it has alreadyundergone traditional primary, secondary and sometimes tertiary treatment. The rules willnot go into effect immediately and must undergo a final review by the Office ofAdministrative Law before being implemented either in the summer or fall. 27707746.1 3 4. Water Use and Efficiency - On August 18, 2023, the State Water Resources Control Boardreleased proposed regulations to establish water-use efficiency goals for urban retail watersuppliers in compliance with the 2018 conservation legislation, Senate Bill 606 (Hertzberg) and Assembly Bill 1668 (Friedman). The regulation would establish unique efficiency goalsfor each supplier based on local conditions, leaving some flexibility to implement locallyappropriate solutions. The rulemaking process is under way, with the first public hearinghaving occurred on October 4, 2023, and comments due on October 17, 2023. The board willconsider adoption of the proposed regulation within one year. The State Water Board expects to release a revised draft of the Regulation sometime in March. An important thing to note is that as required under SB 606, the Legislative Analyst Officewas required to assess implementation of urban water-use efficiency standards and urbanwater supplier reporting by submitting a report by January 10, 2024 to the appropriate policy committees of both houses of the Legislature and to the public. The report was released onJanuary 4, calling the measures costly and difficult to achieve, “in many cases withoutcompelling justification”, and suggested changes to lawmakers to direct state regulators to“make several of the proposed requirements less stringent (such as the residential outdoorstandard), consider how to target state funding to assist lower-income customers, and extend some of the deadlines for suppliers to ensure they can actually achieve the framework’sgoals.” In response, the state water board’s staff had proposed less stringent water-saving standards,reducing the number of suppliers that would be required to achieve large cuts of more than 20%, and extending the timeline for water reductions an additional five years to 2040.Estimates from the earlier proposal would have slashed California’s urban water use 12% by2035. With the revised rules, estimates are that urban water use will be reduced by 7% by2035, and 9% by 2040.The State Water Board will hold a public workshop on the updated proposed regulation on March 20th and will accept written public comment on the proposal until March 27th. The standards for efficient residential indoor water use and water loss have already been setthrough the passage of SB 1157 (Hertzberg) in 2022, which changed the indoor residential water-use standards beginning January 1, 2025, to be beginning January 1, 2025, until January 1, 2030 – 47 gpcd, and beginning January 1, 2030 – 42 gpcd. The law allowsDepartment of Water Resources (DWR), in coordination with the State Water Board, torecommend to the Legislature an alternate date on which the 2030 indoor residential usestandard should take effect if the two agencies determine that the 2030 indoor residential use standard is likely to unduly impact affordability of water and wastewater services. While Otay initially joined ACWA’s “Oppose Unless Amended” coalition on SB 1157, itmoved its position to “Neutral” following amendments adding a quantitative study, addingflexibility to the timeline to achieve the standards, and adopting additional variances. The Department of Water Resources will be conducting studies to quantify the benefits and impacts of these standards that will be due to the Legislature by October 1, 2028. 27707746.1 4 Last year 1572 (Friedman) was signed into law, which prohibits the use of potable water to irrigate nonfunctional turf on commercial, municipal, institutional (except for cemeteries), homeowners' association, common interest development, and community service organization properties. Begins a phase-in of this ban on specified property types beginning January 1, 2027. There are a number of bills introduced on water use objectives which ACWA and Brownstein policy professionals are still analyzing. 5. Water Quality and Contaminants – The State Water Board has the authority in statute toestablish compliance periods for new MCLs. The State Water Board adopted a resolution forthe adoption of drinking water regulations development during their March 7-8, 2023workshop. The Division of Drinking Water has established a proposed prioritized list for regulatory development projects for 2023. Chromium (hexavalent) aka Chrome 6 was first on that list. The proposed regulation is for aMaximum Contaminant Level of 10 parts per billion. Written comments were due on March4 with anticipated adoption by April 2024. ACWA is still in conversations with State Water Board staff and will continue to provide updates. The adopted MCL calendar for 2024 is as follows:a.Chromium (hexavalent)b. Perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS) c. Arsenicd. N-nitroso-dimethylamine (NDMA)e. Styrene f. Cadmium and Mercuryg. Disinfection Byproducts Good news from last year is that a bill of concern for Otay and all other public water agencies, AB 249 by Asm. Holden, which would lower the standards for lead levels at TK-12 school buildings built after 2010 from 15 parts per billion to 5, placing various requirements on water agencies, was vetoed by Governor Newsom due to unfunded cost concerns. Assemblyman Holden introduced AB 1851 this year as a pilot to address the Governor’s veto. The bill would require the Superintendent of Public Instruction to contract with a nonprofit technical assistance organization, for purposes of a pilot program applicable to unspecified school districts, to sample all potable water system outlets on the campuses of the school district for lead contamination, except as provided, and to identify and remediate any potable water system outlet emitting water containing lead levels in excess of 5 parts per billion. The bill would require the nonprofit technical assistance organization, if sampling results show lead levels in excess of 5 parts per billion for any potable water system outlet, to take immediate steps to shut down all potable water system outlets where excess lead levels may exist and to work to ensure that a lead-free source of drinking water is provided for pupils at each potable water system outlet that has been shut down. We will be tracking this bill for any potential amendments that may be of concern to Otay. 27707746.1 5 The final draft of the Cross Connection Control Policy Handbook was approved by the State Water Board on December 19. This handbook will replace portions of Title 17 that address cross connection and backflow regulations. The District will be required to provide a Cross Connection Control Plan to the board by July 1, 2025. District staff provided comments regarding portions of the handbook that will result in increased workload for the District and additional costs to customers. Specifically, that: 1)Residential Fire Sprinklers – As written, the items required to remove the backflowrequirement on residential homes with fire sprinklers would require the District to inspect homes (retroactively) to ensure specific plumbing materials are used and there is a loopedfire system in place. District staff believes most homes will not be compliant andtherefore it will require them to install backflow devices. 3,200 homes are estimated to beaffected by this.2)Hazard Assessment on all sites – As written, the District would have to perform hazard assessments on all its service connections as well as resurvey each time a commercial ormulti-residential property changes ownership. Since the District requires the highest formof backflow protection for all commercial, multi-residential, and residential propertieswith wells on site, site surveys were conducted only as needed. Staff will now have toperform assessments on more than 50,000 services and create a process to resurvey commercial and multi-residential properties when ownership changes. 6.Advanced Clean Fleets Implementation – In accordance with Executive Order N-79-20,which recognizes the need for the state to transition to carbon neutrality by setting a course toend sales of internal combustion passenger vehicles by 2035, the California Air Resources Board (CARB) is faced with the task of transitioning high priority private fleets and publicfleets to zero-emission vehicles to meet the state’s goals set forth by the order, as outlined inthe Advanced Clean Fleets Proposed Rulemaking. Otay Water District advocated for an exemption for emergency response vehicles under the Advanced Clean Fleets (ACF) Proposed Rulemaking for public fleets to ensure that theDistrict’s first responders in the field responding to water and wastewater utility emergenciesin specialized vehicles have the resources available to them to ensure that response is notdelayed. Two letters were submitted by Otay in 2022 to CARB during the public comment period that year. CARB released its final draft rule on March 23, 2023 with a 15-day public comment period.The final day to submit any comments to CARB on the ACF final draft rule was on April 7,2023. Following this period, CARB adopted its final ACF rule during its April 27 workshop. Otay submitted a letter and Brownstein advisors provided public comment. The Office of Administrative law approved the rule on September 29, and it was official as of October 1and remains in effect. Charles Mederos from the District is in constant communication withACWA on opportunities to participate in the Air Resources Board’s advisory committees onthe implementation of the regulation. AB 1594 (E. Garcia) was introduced and signed into law last year to provide additionalflexibility not present in the adopted regulations. Otay, with the assistance of Brownsteinpolicy professionals, submitted letters of support and a request for signature. CARB is 27707746.1 6 working out how to abide by this law through the recently adopted regulations and is planning to hold a workshop on March 25, 2024 to discuss implementation of AB 1594. 7.Drought and Extreme Weather Response – In 2021, as drought conditions and record-breaking temperatures persisted throughout the state, Governor Newsom signed ExecutiveOrder N-10-21, which calls on Californians to voluntarily reduce water use by 15%compared to 2020 levels. Due to the state having experienced significant rainfall andflooding as a result of the atmospheric rivers that hit California in late December and through April of last year, the Governor rescinded his executive orders on conservation. Following the Governor’s executive order in 2021, the State Water Board implementedregulations in January 2022 that prohibited wasteful water use practices statewide. Theseregulations were readopted in December 2022 and remained in effect until December 21, 2023 when they expired. Following the Governor's direction in 2022, the State Water Board adopted an emergencyregulation banning the irrigation of decorative grass, with limited exceptions, which tookeffect on June 10, 2022. The emergency regulation was in effect until June 10, 2023. Drought response and extreme weather remains a top concern for the Newsomadministration. In August 2022, the Governor announced a new Water Supply Strategy forCalifornia to help make up for the water supplies the state might lose over the next twodecades. Due to climate change, hotter and drier weather conditions could potentially reduce California’s water supply by up to 10% by 2040. The water supply strategy prioritizesactions to capture, recycle, desalt, and conserve more water. More information on theGovernor’s strategy will be released at a later date. In mid-October 2023, the Newsomadministration released its One year Progress Report highlighting its actions taken over the last year in pursuit of the goals stated in his Water Supply Strategy announced last year (groundwater recharge permitting, rehabilitating dams, expanding desalination, DirectPotable Reuse Regulations, etc.). Regarding flooding, Governor Gavin Newsom announced on February 19 of this year that the White House has approved California’s request for a Presidential Major Disaster Declaration for individuals and families impacted by the storms between January 21 and 23,2024 in San Diego County. The declaration unlocks federal funding to supplement state andlocal recovery efforts in the areas affected by the storm. Residents and business owners whosustained losses in the designated areas can begin applying for assistance at: www.DisasterAssistance.gov. 8.State Budget/Infrastructure Funding – Last year’s adopted budget faced a close to $32billion budget deficit, the budget included funding for a variety of water issues. According tothe State Analyst Office, this year’s budget deficit is $58 billion based on revenue projections at the time of the Governor’s Budget proposal in January. Recent revenue numbers bring that estimate closer to $73 billion. Such a significant budget problem will make any additionalspending difficult for when this year’s budget is adopted. 27707746.1 7 Newsom’s proposed budget would reduce funding for watershed climate resilience, recycled water, flood protection, PFAS treatment, and Forecast-Informed Reservoir Operations. Specifically, the governor’s budget proposes funding and reductions in the following areas: • Watershed Climate Resilience — A reversion of $88.4 million General Fund and a reduction of $350 million over the next two years for various watershed climate resilience programs within the Department of Water Resources and the Wildlife Conservation Board. The budget maintains $56 million previously allocated to these programs. • Recycled Water — A reversion of $174.4 million in General Fund and a delay of $100 million until 2025-’26 for water recycling and groundwater cleanup. The budget maintains $348 million previously allocated to this program. • PFAS — A reversion of $71.6 million General Fund and reduction of $30 million in 2024 and 2025 for per-and polyfluoroalkyl (PFAS) support. The budget maintains $53 million previously allocated to this program. • Dam Safety — A reversion of $50 million General Fund for dam safety investments. The budget maintains $50 million previously allocated to this program. • Forecast-Informed Reservoir Operations (FIRO) — A reduction of $6.75 million General Fund ongoing for Forecast-Informed Reservoir Operations for runoff forecasting. The budget maintains $10 million ongoing in baseline support for the program. The budget also proposes including new water spending in the following areas: • Flood Safety — $93.9 million to support critical flood safety efforts. • Salton Sea — $65.2 million for implementation of the Salton Sea Management Program, for restoration projects at the Salton Sea to suppress dust and create wildlife habitat. Negotiations are ongoing and a revised budget will be released in May 2024, and the Legislature will have until June 15 to pass a final budget. 9. State Water Project (SWP)/Delta Conveyance – Each year DWR makes an initial SWP allocation on December 1. Allocations are updated as snowpack and runoff information are assessed, with a final allocation typically determined in May or June. DWR announced its initial SWP allocation of 10% in 2024 on December 1, 2023. On February 21, it updated the allocation to 15%. The latest allocation does not include the results of any of the storms that hit California in early February until today. The SWP will review conditions and may revise the forecasted allocation in mid-March. It is important to note that last year’s allocations eventually reached 100% for the first time since 2006. On the proposed Delta Conveyance project, 2022 marked the release and public review of the Draft Environmental Impact Report (EIR) evaluating the proposed Delta Conveyance Project under the California Environmental Quality Act. Building on that progress, on December 8, 2023, DWR released the Final EIR and certified it a few weeks later on December 21. Following the certification, various environmental organizations filed suits in late January 2024. 27707746.1 8 Regarding the Sites Reservoir, in early November, Governor Gavin Newsom announced he had certified the project under SB 149 (2023), which allows the Governor to certify qualifying infrastructure projects for judicial streamlining under the California Environmental Quality Act (CEQA). Courts must decide CEQA challenges to certified projects within 270 days to the extent feasible. Then in mid-November, the Bureau of Reclamation and Sites Project Authority certified its final EIR and was approved to move forward. Project coordinators say construction will begin in 2024, with completion expected in 2030, however, conservation and environmental justice groups filed a lawsuit on December 20. 10. Water Rights Modernization – Due to the drought and the federal negotiations on the Colorado River, water rights rose to the top of the Legislature’s agenda last year. Several bills were introduced year that collectively present a fundamental change in California’s water rights system. These bills would hand the State Water Board nearly unfettered authority to adopt sweeping curtailment regulations, issue interim relief orders without due process, and drag diverters before the State Water Board to defend their rights. Two bills were signed into law, SB 389 & AB 799, but two bills remain that are two-year bills that can move again this summer as they are already in the second half, AB 460 by Assemblymember Bauer-Kahan and AB 1337 by Assemblymember Wicks. ACWA has spent months in 2022 and 2023 preparing for a water rights debate and had intended to sponsor its own water rights legislation as an alternative to avoid more drastic legislation during both sessions. However, no internal agreement amongst the ACWA membership was attained during the state legislative committee meetings. ACWA-sponsored legislation on water rights has been shelved indefinitely and instead, ACWA will continue to lead the coalition in opposition to the water rights bills remaining and any new bills introduced this year. Otay Water District Anticipated 10 Legislative & Regulatory Priorities for 2024 Presented by: Baltazar Cornejo Policy Advisor Keshav Kumar Law Clerk March 19, 2024 Attachment E Anticipated 10 Legislative & Regulatory Priorities 2024 2 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Legislative Update •Legislature reconvened on January 3, 2024. •In 2024, a total 2,124 bills introduced were introduced by February 16th deadline for bill introductions. •Key Legislative Deadlines: —January 10 – Governor’s Budget Proposal —February 16 – Bill Introduction deadline —May 15 – May Revision of the January Budget (“May Revise”) —May 24 – Last day for each house pass bills introduced in that house. (“House of Origin Deadline”). —June 15 – Budget must be passed by midnight —August 31– Deadline to pass bills out of Legislature. (“Final Recess upon Adjournment of Session”) —September 30 – Last day for Governor to sign or veto bills passed on or before September 1 3 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 1. Affordability & Proposition 218 •Low Income Household Water Assistance Program (LIHWAP) —In 2020, the federal government funded LIHWAP to provide financial assistance to low-income Californians with residential water utility costs and debt repayment. —California has been allocated $116 million in one-time funding to provide LIHWAP assistance. —Administering Agency – Department of Community Services and Development (CSD). •In response to low LIHWAP participation and grant expenditure, CSD expanded eligibility to include current bills to maximize grant expenditures. •LIHWAP benefit payments began to be issued to households in June 2022 and all funds must be expended by March 31, 2024 due to a recent extension. •Federal Legislation —United States Senator Alex Padilla has introduced S. 3830, a LIHWAP bill that, if passed, would establish a permanent, nationwide water assistance program that is modeled after the current program, due to expire in March 2024. —The bill would authorize grants to States, Territories, and Tribes to assist low-income households in paying arrearages and other rates charged to such households for drinking water or wastewater services; provide technical assistance to rural, Tribal, and underserved owners or operators of public water systems or treatment works; align income eligibility with the Low Income Household Energy Assistance Program (LIHEAP), Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income, and means-tested veterans’ programs; and transfer authority of the program from HHS to the EPA upon completion of the Rural and Low-Income Water Assistance Pilot Program authorized in the Bipartisan Infrastructure Law. 4 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 1. Affordability & Proposition 218 Cont. •Three Bills introduced this session to address issues with Proposition 218 to further protect water agencies from lawsuits costing them millions in refunds to plaintiffs. —Otay WD Sponsored Senate Bill 1072 (Padilla), which would clarify that Proposition 218 does not provide for refund remedies to plaintiffs in Proposition 218 lawsuits. —Association of California Water Agencies sponsored, Assembly Bill 2257 (Wilson), would aid public agencies in defending against Proposition 218 lawsuits by requiring litigants to participate and raise specific objections during the public administrative process. In doing so, this proposal intends to bring to light all possible complaints and provide an opportunity to resolve a dispute and avoid litigation altogether. —Irvine Ranch WD Sponsored Assembly Bill 1827 (Papan), which would clarify that water agencies can use existing reasonable and well accepted methods for allocating the incremental costs associated with higher water usage (peaking) demands to impose fees that reflect the costs associated with higher usage demands. 5 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 2. Water Bonds & Infrastructure ACWA is advocating for a $7.85 billion bond investment in water infrastructure for recycled water, groundwater recharge, storage, flood protection, dam safety, conveyance, storage, safe drinking water, water quality, regional watershed resilience, State Water Project improvements, and water conservation. While three bonds were introduced last year, all bond legislation were made 2- year bills as the Governor wanted to focus on his Mental Health Bond Proposal voted on in this recent primary election. SB 867 (Allen): Drought and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based Climate Solutions, Climate Smart Agriculture, and Park Creation and Outdoor Access Bond Act of 2023. •Would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance projects for drought and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate smart agriculture, and park creation and outdoor access programs. AB 1567 (E. Garcia): Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2023. Would authorize the issuance of bonds in the amount of $15,105,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. SB 638 (Eggman):Climate Resiliency and Flood Protection Bond Act of 2024 . Would authorize the issuance of bonds in the amount of $4,500,000,000, pursuant to the State General Obligation Bond Law, for flood protection and climate resiliency projects. 6 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 3. Recycled Water and Potable Reuse •On December 19, 2023, the State Water Resources Control Board approved regulations that will allow water systems to develop treatment protocols to convert wastewater into high quality drinking water, known as direct potable reuse. •The rules would require extensive treatment and monitoring with various steps designed to remove chemicals and pathogens that remain in sewage after it has already undergone traditional primary, secondary and sometimes tertiary treatment. The rules will not go into effect immediately and must undergo a final review by the Office of Administrative Law before being implemented either in the summer or fall. 7 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 4. Water Use and Efficiency •Making Conservation a Way of Life Regulations —On August 18th, 2023, the State Water Resources Control Board released proposed regulations to establish water-use efficiency goals for urban retail water suppliers in compliance with the 2018 conservation legislation, Senate Bill 606 (Hertzberg) and Assembly Bill 1668 (Friedman). —The regulation would establish unique efficiency goals for each supplier based on local conditions, leaving some flexibility to implement locally appropriate solutions. The rulemaking process is under way, with the first public hearing having occurred on October 4, 2023, and comments due on October 17, 2023. The board will consider adoption of the proposed regulation within one year. The State Water Board expects to release a revised draft of the Regulation sometime in March. —As required under SB 606, the Legislative Analyst Office was required to assess implementation of urban water- use efficiency standards and urban water supplier reporting by submitting a report by January 10, 2024 to the appropriate policy committees of both houses of the Legislature and to the public. The report was released on January 4th, calling the measures costly and difficult to achieve, “in many cases without compelling justification”, and suggested changes to lawmakers to direct state regulators to “make several of the proposed requirements less stringent (such as the residential outdoor standard), consider how to target state funding to assist lower income customers, and extend some of the deadlines for suppliers to ensure they can actually achieve the framework’s goals.” —In response, the state water board’s staff had proposed less stringent water-saving standards, reducing the number of suppliers that would be required to achieve large cuts of more than 20%, and extending the timeline for water reductions an additional 5 years to 2040.The State Water Board will hold a public workshop on the updated proposed regulation on March 20th and will accept written public comment on the proposal until March 27th. There are a number of bills introduced on water use objectives which ACWA and Brownstein policy professionals are still analyzing. 8 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 5. Water Quality and Contaminants •Maximum Contaminant Level Regulations —The State Water Board has the authority in statute to establish compliance periods for new MCLs. The State Water Board adopted a resolution for the adoption of drinking water regulations development during their March 7-8, 2023 workshop. The Division of Drinking Water (DDW) has established a proposed prioritized list for regulatory development projects for 2023. —Chromium (hexavalent) Chrome 6 was first on that list. The proposed regulation is for a MCL of 10 parts per billion. Written comments were due on March 4th with anticipated adoption by April 2024. ACWA is in conversations with SWRCB State Water Board staff and will continue to provide updates. •The adopted MCL calendar for 2024 is as follows: —a. Chromium (hexavalent) —b. Perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS) —c. Arsenic —d. N-nitroso-dimethylamine (NDMA) —e. Styrene f. Cadmium and Mercury —g. Disinfection Byproducts •Lead Testing Legislation: •Assemblyman Holden introduced AB 1851 this year as a pilot to address the Governor’s veto of his AB 249 from last year. The bill would require the Superintendent of Public Instruction to contract with a nonprofit technical assistance organization, for purposes of a pilot program applicable to unspecified school districts, to sample all potable water system outlets on the campuses of the school district for lead contamination, except as provided, and to identify and remediate any potable water system outlet emitting water containing lead levels in excess of 5 parts per billion. The bill would require the nonprofit technical assistance organization, if sampling results show lead levels in excess of 5 parts per billion for any potable water system outlet, to take immediate steps to shut down all potable water system outlets where excess lead levels may exist. 9 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 5. Water Quality & Contaminants Cont. •Cross Connection Control Policy Handbook Final draft of the Cross Connection Control Policy Handbook was approved by the State Water Board on December 19. This handbook will replace portions of Title 17 that address cross connection and backflow regulations. The District will be required to provide a Cross Connection Control Plan to the board by July 1, 2025. District staff provided comments regarding portions of the handbook that will result in increased workload for the District and additional costs to customers. Specifically, that: 1)Residential Fire Sprinklers – The items required to remove the backflow requirement on residential homes with fire sprinklers would require the District to inspect homes (retroactively) to ensure specific plumbing materials are used and there is a looped fire system in place. District staff believes most homes will not be compliant and therefore it will require them to install backflow devices. About 3,200 homes are estimated to be affected by this. 2)Hazard Assessment on all sites – The District would have to perform hazard assessments on all its service connections as well as resurvey each time a commercial or multi-residential property changes ownership. Since the District requires the highest form of backflow protection for all commercial, multi-residential, and residential properties with wells on site, site surveys were done only as needed. District staff will now have to perform assessments on more than 50,000 services and create a process to resurvey commercial and multi- residential properties when ownership changes. 10 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 6. Advanced Clean Fleets Rulemaking Implementation •Executive Order N-79-20 accelerates the state’s transition to carbon neutrality by setting a course to end sales of internal combustion passenger vehicles by 2035. •The Advanced Clean Fleets proposed rulemaking for Public Fleets would require. —100% zero-emission drayage trucks by 2035. —100% zero-emission off-road vehicles and equipment by 2035, where feasible. —100% zero-emission medium and heavy-duty vehicles by 2045, where feasible. •Otay Water District submitted comments to CARB and met with CARB staff, seeking an exemption for emergency response vehicles. •CARB adopted the rule on April 27th workshop after 15 days of public comment. Otay WD submitted comments and Brownstein policy advisor provided public comment. The Office of Administrative law approved the rule on September 29th and it is official as of October 1st. •AB 1594 (E. Garcia) was signed by the Governor to provide flexibility not present in the adopted regulations. (Otay submitted letters of support & a request for signature). —Requires any state regulation that seeks to require the procurement of medium- and heavy-duty ZEVs to authorize public agency utilities to purchase replacements for traditional utility-specialized vehicles that are at the end of life, as determined by CARB in consultation with public utility agencies, when needed to maintain reliable service and respond to major foreseeable events, including severe weather, wildfires, natural disasters, and physical attacks, without regard to the model year of the vehicle being replaced. —Authorizes a public agency utility, for the purposes of determining the daily usage of a medium- or heavy- duty vehicle, to provide comprehensive usage data for a class of vehicles that does not exclusively rely on the lowest mileage reading and does not exclude the highest usage days. —Defines "public agency utility" as a local publicly owned electric utility, a community water system, a water district, and a wastewater treatment provider. 11 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 7. Drought & Extreme Weather Response •California experienced significant rainfall and flooding during the series of atmospheric rivers that hit the state in late December through late March. •On March 24th the Governor issued an executive order amending the Emergency Drought Proclamation and previous executive orders on conservation. —Ended the voluntary 15% water conservation target, —Ended requirement that local water agencies implement level 2 of their drought contingency plans, —Retained a state of emergency for all 58 counties to allow for drought response and recovery efforts, —Retained the non-functional turf irrigation ban in commercial, industrial, and institutional areas, including HOA common, set to expire in June 2024, unless the Board takes further action. —Emergency Regulation to Prohibit Wasteful Water Uses (refilling fountains without recirculating pumps, overwatering landscapes, watering grass within 48 hours of rainfall, etc.) is set to expire in December 2023, unless the Board takes further action. •Governor Newsom’s California’s Water Supply Strategy —Water Supply Strategy announced August 2022 due to hotter and drier weather conditions (spurred by climate change) potentially reducing California’s water supply by up to 10% by the year 2040. —To help make up for the water supplies California could lose over the next two decades, the strategy prioritizes actions to capture, recycle, de-salt and conserve more water. •Create storage space for up to 4 million acre-feet of water. •Recycle and reuse at least 800,000 acre-feet of water per year by 2030. •Free up 500,000 acre-feet of water for new purposes each year. •Make new water available for use by capturing stormwater and desalinating ocean water and salty water in groundwater basins. —One year Progress Report released in October highlights actions taken by the administration over the last year in pursuit of these goals. (Groundwater recharge permitting, rehabilitating dams, expanding desal, Direct Potable Reuse Regulations, etc). 12 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 8. State Budget Funding •Last year’s adopted budget faced a close to $32 billion budget deficit and included funding for a variety of water issues. According to the State Analyst Office, this year’s budget deficit is $58 billion based on revenue projections at the time of the Governor’s Budget proposal in January. Recent revenue numbers bring that estimate closer to $73 billion. Such a significant budget problem will make any additional spending difficult for when this year’s budget is adopted. •Newsom’s proposed budget would reduce funding for watershed climate resilience, recycled water, flood protection, PFAS treatment, and Forecast-Informed Reservoir Operations. •Specifically, the governor’s budget proposes funding and reductions in the following areas: —Watershed Climate Resilience — A reversion of $88.4 million General Fund and a reduction of $350 million over the next two years for various watershed climate resilience programs within the Department of Water Resources and the Wildlife Conservation Board. The budget maintains $56 million previously allocated to these programs. —Recycled Water — A reversion of $174.4 million in General Fund and a delay of $100 million until 2025-’26 for water recycling and groundwater cleanup. The budget maintains $348 million previously allocated to this program. —PFAS — A reversion of $71.6 million General Fund and reduction of $30 million in 2024-’and 2025 for per-and polyfluoroalkyl (PFAS) support. The budget maintains $53 million previously allocated to this program. —Dam Safety — A reversion of $50 million General Fund for dam safety investments. The budget maintains $50 million previously allocated to this program. —Forecast-Informed Reservoir Operations (FIRO) — A reduction of $6.75 million General Fund ongoing for Forecast-Informed Reservoir Operations for runoff forecasting. The budget maintains $10 million ongoing in baseline support for the program. 13 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 8. State Budget Funding Cont. •The budget also proposes including new water spending in the following areas: —Flood Safety — $93.9 million to support critical flood safety efforts. —Salton Sea — $65.2 million for implementation of the Salton Sea Management Program, for restoration projects at the Salton Sea to suppress dust and create wildlife habitat. Negotiations are ongoing and a revised budget will be released in May 2024, and the Legislature will have until June 15 to pass a final budget. 14 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 9. State Water Project/Delta Conveyance •State Water Project (SWP) —Each year DWR makes an initial SWP allocation on December 1. Allocations are updated as snowpack and runoff information are assessed, with a final allocation typically determined in May or June. DWR announced its initial SWP allocation of 10% for 2024 on December 1st, 2023. On February 21, it updated the allocation to 15%. The latest allocation does not include the results of any of the storms that hit California in early February until today. The SWP will review conditions and may revise the forecasted allocation in mid-March. It is important to note that last year’s allocations eventually reached 100% for the first time since 2006. •Delta Conveyance Project —2022 marked the release and public review of the Draft Environmental Impact Report (EIR) evaluating the proposed Delta Conveyance Project under the California Environmental Quality Act. Building on that progress, on December 8, 2023, DWR released the Final Environmental Impact Report (EIR) and certified it a few weeks later on December 21st. Following the certification, various environmental organizations filed suits in late January 2024. •Sites Reservoir Project —Regarding the Sites Reservoir, in early November, Governor Gavin Newsom announced he had certified the project under SB 149 (2023), which allows the Governor to certify qualifying infrastructure projects for judicial streamlining under the California Environmental Quality Act (CEQA). Courts must decide CEQA challenges to certified projects within 270 days to the extent feasible. —Then in mid-November, the Bureau of Reclamation and Sites Project Authority certified its final EIR and was approved to move forward. Project coordinators say construction will begin in 2024, with completion expected in 2030, however, conservation and environmental justice groups filed a lawsuit on December 20th. 15 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 10. Water Rights Modernization •Due to the ongoing drought and greater federal level discussions on the Colorado River water rights, water rights is poised to rise to the top of the Legislature’s agenda last year. Several bills were introduced last year that collectively present a fundamental change in California’s water rights system and a coordinated effort is underway to see that this year ends with a foundational change to how the water rights system is implemented and enforced. —AB 1337 (Wicks) gives the State Water Board authority to adopt sweeping curtailment regulations for water conservation purposes to prevent the waste, unreasonable use, or unreasonable method of diversion of water. —AB 460 (Bauer-Kahan) would authorize the State Water Board to issue an interim relief order on water rights. —Other spot bills on water rights have been introduced with no indication on what they will do. —AB 676 (Bennett) would declare ‘domestic purposes’ as the highest use of water, providing specific examples of ‘domestic purposes’ and explicitly states that all water rights remain subject to the reasonable use and public trust doctrines. •ACWA considered proposing its own water rights legislation as an alternative to the above- described legislation, however no agreement was reached by its membership. Instead ACWA led a coalition in opposition of the above-described legislation, which was successful. While some of these bills were signed into law, SB 389 & AB 799, but two bills remain that are two-year bills that can move again this summer as they are already in the second half, AB 460 and AB 1337. AB 676 was vetoed by the Governor. 16 Questions? Baltazar Cornejo bcornejo@bhfs.com (916) 594-9705 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: April 3, 2024 PROJECT: Various DIV. NO.ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Chief, Administrative Services Jose Martinez, General Manager SUBJECT: FY24 MID-YEAR REPORT OF THE DISTRICT’S FY23-26 STRATEGIC PLAN GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: Please see “Attachment A”. PURPOSE: To provide a mid-year report of the District’s FY23-26 Strategic Plan for FY24. ANALYSIS: Summary The current Otay Water District Strategic Plan is a four-year plan ranging from the start of FY23 through the end of FY26. This report details the mid-year results for the second year of the organization’s four-year program. Objectives – Target 90% Strategic Plan objectives are designed to ensure the District’s execution of mission-derived strategies and the implementation of changes necessary to guide the agency, addressing emerging challenges and fostering a positive adaptation to change. FY24 mid-year results are at 90%, with 27 of 30 active items completed or on schedule; one (1) is behind schedule, AGENDA ITEM 4 2 and two (2) are on hold. Objective Behind Schedule (1): FINANCIAL Strategy: Invest in technology to enhance customer engagement and satisfaction. Objective: Deploy Advanced Metering Infrastructure (AMI) technology in service areas to improve District operations. The District’s contractor, Master Meter, began the process of converting automated meter reading (AMR) meters to advanced meter infrastructure (AMI) meters in September 2023. However, progress has been slower than anticipated, with completion now projected for May or June 2024. As the transition progresses, the project will initiate customer engagement efforts accordingly. Objectives On Hold (2): FINANCIAL Strategy: Maintain a long-range financing plan that sets forth the long- term funding needs of the District. Objective: Evaluate the District’s cash reserve policies to consider optimal uses and levels of reserves, to ensure financial resiliency. To date, the District has encountered some challenges in identifying a consultant capable of providing the required services or an agency that has recently conducted a similar study. In the interim, the 0 5 10 15 20 25 30 35 40 45 27 1 2 5 On Schedule/Completed Behind On Hold Not Started 27 of 30 Objectives are Completed or On Schedule (90%) 3 District sought guidance from its financial advisor regarding its current reserve policy and debt coverage practices in relation to its bond rating. Additionally, staff initiated a study to benchmark the District’s reserve policy against those of other local agencies. However, due to turnover and prioritization of the ERP implementation, progress on this initiative has been put on hold. Staff intends to resume and complete the comparison when the department returns to full staffing levels. INTERNAL BUSINESS PROCESS Strategy #1: Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals. Objective: Reduce the District’s chemical footprint by substituting hazardous chemicals for similar, less hazardous chemicals. The Ralph W. Chapman Water Recycling Facility Disinfection System Improvements project was recently approved and awarded in the second quarter, with construction planning meetings scheduled for the third quarter. However, given the expected delays in equipment manufacturing and the projected construction start date in FY25, the objective has been placed on hold. Key Performance Indicators (KPI’s) – Target 75% KPI’s are designed to track the District’s day-to-day performance. These indicators measure the effectiveness and efficiency of essential operational services. The District’s overall KPI goal of 75% is considered “on target”. For FY24, mid-year results are above target at 87%, with 20 of 23 items achieving the desired level or better. 20 of 23 Key Performance Indicators are On Target (87%) 0510152025303540 20 3 On Target Not on Target 4 KPI’s Not on Target (3): CIP Project Expenditures vs. Budget Target: 95% of budget annually. Capital Improvement Project (CIP) expenditures stand at 18%, falling short of the mid-year goal of 36%. This shortfall is attributed to delays in material acquisition and staff turnover. Hydrant Maintenance Program Target: 1220 fire hydrants maintained annually. Utility Maintenance Staff serviced 560 fire hydrants, slightly below the mid-year target of 610. Their efforts were redirected toward assisting in Capital Improvement Projects (CIP) and simulated shutdowns, contributing to this variance. Staff will prioritize ensuring the target is achieved before the end of the fiscal year. Employee Turnover Rate Target: Less than 5% turnover annually. Five (5) voluntary terminations occurred in the first and second quarters, resulting in a turnover rate of 3.65% for mid-year results. KPI’s are determined on established AWWA performance benchmarks, water agency standards, and historical trends. Of the total measures outlined in the Strategic Plan, 10 are reported annually to include: •Water Rate Ranking •Sewer Rate Ranking •Water Debt Coverage •Sewer Debt Coverage •Reserve Level •Accounts Per Full-Time Employee (FTE) •Business Recovery Exercises •Vulnerability Assessments •Potable Tank Inspection and Cleaning •Injury Incident Rate One (1) measure is reported biennially to triennially: •Customer Opinion Survey 5 Next Steps Staff will continue to focus on the plan’s objectives, key performance indicators, and emerging trends. Committee Reports – Slideshow The Strategic Plan mid-year results are presented to both the Conservation, Public Relations, Legal & Legislative Committee, and the Finance and Administration Committee (see “Attachment B”). The Strategic Plan is also available on the District’s website. FISCAL IMPACT:Joe Beachem, Chief Financial Officer Informational item only; no fiscal impact. STRATEGIC GOAL: Strategic Plan and Performance Measure reporting is a critical element in providing performance reporting to the Board and staff. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report Attachment B – PowerPoint Presentation 6 ATTACHMENT A SUBJECT/PROJECT: FY24 MID-YEAR REPORT OF THE DISTRICT’S FY23-26 STRATEGIC PLAN COMMITTEE ACTION: The Conservation, Public Relations, Legal & Legislative Committee, and the Finance & Administration Committee met on March 19 and 20, 2024, respectively, to review this item. The Committees support the presentation to the full Board. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a committee approved item or modified to reflect any discussion or changes as directed by the committee prior to presentation to the full Board. OTAY WATER DISTRICT STRATEGIC PLAN FY 2024 Mid-Year Report 2023 2026 ATTACHMENT B BALANCED SCORECARD 2 Focuses on the financial performance of the District FINANCIAL Focuses on the District’s culture and development of staff to ensure there is a productive and skilled workforce in place LEARNING AND GROWTH Focuses on customer service levels, satisfaction, brand, and confidence CUSTOMER Focuses on business processes designed to deliver and improve customer objectives and services INTERNAL BUSINESS PROCESS 90% Total 35 ON SCHEDULE/ COMPLETED BEHIND SCHEDULE ON HOLD OBJECTIVES TR E N D S MID-YEAR FY 2024 27 Objectives 27/30 = 90% Overall Target 94% 88% 93%95%94% 82%86% 98%100% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Year-End Target 3 Active/Completed 30 Not Started 5 1 Objective 1/30 = 3% 2 Objectives 2/30 = 7% CUSTOMER Enhance and build public awareness of the District’s priorities, initiatives, programs, and services Collect and analyze customer feedback on District operations, projects, programs, service experience, and expectations Advance the District's web and social media presence Enhance internal communications, tools, and technology to disseminate information to District staff effectively Enhance education, outreach, and communication tools to the public on the understanding of water supply constraints and rates and how they affect/support a reliable water supply 4 Completed On Schedule Left to right: Alexis Salcedo and Leo Lopez Utility Maintenance staffOutreach Event: Chula Vista Starlight Parade (December 3, 2023) FINANCIAL Maintain a long-range financing plan that sets forth the long-term funding needs of the District Evaluate grant funding opportunities Evaluate banking functions for lower cost and process efficiencies Evaluate the District’s cash reserve policies to consider optimal uses and levels of reserves, to ensure financial resiliency Conduct an evaluation of a health savings investment account program for an optional post-employment benefit Conduct a compensation study to evaluate labor industry conditions and the District’s competitiveness Invest in technology infrastructure to enhance customer engagement and satisfaction Deploy Advanced Metering Infrastructure (AMI) technology in service areas to improve the District operations Evaluate Interactive Voice Response (IVR)/Online customer portal for water use management and assistance 5 Completed On Schedule Behind Schedule On Hold Hannah Tamjidi Finance Department Assistant INTERNAL BUSINESS PROCESS Leverage the use of renewable and clean energy resources and reduce the use of hazardous chemicals Evaluate and implement energy-efficient systems Evaluate and implement alternative energy opportunities Advance Clean Fleet Regulations District Implementation Program of Zero or near Zero Emissions Vehicles Reduce the District’s chemical footprint by substituting hazardous chemicals for similar, less hazardous chemicals Implement technologies to improve response time, security, and operational effectiveness Conversion of the District’s enterprise Geographic Information System (GIS/Esri) from a Geometric Network to a Utility Network Model Conduct needs assessment/replacement of District's financial management system Maintain and regularly evaluate internal financial controls Leverage Cityworks to further develop job task process standardization and work order cost modeling 6 Completed On Schedule On Hold Not Started Abraham Yanez Equipment Mechanic II INTERNAL BUSINESS PROCESS Develop appropriate water resource mix to meet the water reliability needs of the community Use the Water Facilities Water Management Plan/Urban Water Management Plan to analyze future needs and prescribe approaches to meeting future requirements Evaluate City of San Diego’s recycled water purchase Develop the District’s long-term water supply strategies and planning efforts with regional partnerships Respond to anticipated water shortages through rate structure modification, conservation assistance, and outreach Monitor and modify the Water Shortage Contingency Plan, as needed Identify, evaluate, and implement new opportunities for recycled water, including potential for potable reuse 7 Completed On Schedule Javier Vasquez Meter Maintenance Worker II INTERNAL BUSINESS PROCESS Advancement of District's Asset Management Program Formalization of Standard Operating Procedures (SOP) and Planned Job Observations (PJO) Develop long-term strategic operations and maintenance program (Total Asset Management) Collect and maintain accurate asset records, including criticality, maintenance history, asset condition, and performance for continuous improvement Cloud migration of the District’s enterprise Geographic Information System (GIS/Esri) and the associated Asset Management and Field Applications Cyber and Physical Security Advance the use of the District's Supervisory Control and Data Acquisition (SCADA) system to further enhance the security and reliability of the distribution system and optimize administration Evaluate new disaster recovery solutions and advance the District's enterprise business continuity program 8 Completed On Schedule Not StartedSam Battikha SCADA/Instrumentation Tech LEARNING AND GROWTH Coordinate workforce planning activities to determine future needs, identify gaps, and implement actions to close the gaps Maximize opportunities to develop employees through training and mentoring Evaluate the implementation of learning and development programs in coordination with partner agencies Analyze and identify workforce trends to address critical gaps between the current workforce and future needs Improve Organization Effectiveness Negotiate successor Memorandum of Understanding (MOU) with the employee association and unrepresented employees to focus on recruitment and retention Implement a cross-functional innovation committee to advance the District’s culture of collaboration and process improvement among departments 9 On Schedule Not Started Left to right: Carlos Ayala, Dustin Schwegel, and Marco Ramirez Utility Maintenance staff Training: Rescue Vactor Truck Training KEY PERFORMANCE INDICATORS TR E N D S MID-YEAR FY 2024 Overall Target 75% Total 34 Reported Quarterly 23 Reported Annually 10 83% 90%88% 95% 83% 90%90%88%88% 50% 60% 70% 80% 90% 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Year-End Target 20 KPIs 20/23 = 87% ON TARGET NOT ON TARGET 3 KPIs 3/23 = 13% Reported Biennial to Triennial 1 10 11 0.85 0.73 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile TECHNICAL QUALITY COMPLAINT (AWWA | Customer Relations) TARGET No more than 4.6 complaints per 1,000 customer accounts annually | No more than 1.15 complaints per 1,000 customer accounts per quarter CALCULATION Number of technical quality complaints per year/Number of active accounts per reporting period AWWA BENCHMARK Average of 75th Percentile, 2.6, and Median, 6.6, for population served between 100,001 – 500,000 (Combined Utilities) LAURA YORK Lab Analyst TARGET 100% of all health-related drinking water standards per quarter and annually CALCULATION Number of days the primary health regulations are met/Number of days in the reporting period AWWA BENCHMARK 100% - 75th Percentile for population served between 100,001 – 500,000 (Water)12 100% (FY 23 Q1 & Q2 Result) 99.05% 97.99% 95% 96% 97% 98% 99% 100% Q1 Q2 Q3 Q4 Result Target ANSWER RATE TARGET 97% average answer rate per quarter and annually CALCULATION Number of calls answered/Total number of calls 100%100% 95% 96% 97% 98% 99% 100% Q1 Q2 Q3 Q4 Result Target POTABLE WATER COMPLIANCE RATE (AWWA | Water Operations) 13 70% 72% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED POTABLE WATER MAINTENANCE RATIO IN $ TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance CostDEANDRE SAVAGE Water Systems Operator III 95%97% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED RECYCLED WATER MAINTENANCE RATIO IN $ TARGET 70% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 14 89% 98% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q2 Q3 Q4 Result Target PLANNED WASTEWATER MAINTENANCE RATIO IN $ TARGET 80% of all labor costs spent on preventative maintenance per quarter and annually CALCULATION Total Planned Maintenance Cost/Total Maintenance Cost 3.4% 4.1% 0% 1% 2% 3% 4% 5% 6% 7% Q1 Q2 Q3 Q4 Result Target DISTRIBUTION SYSTEM LOSS TARGET Less than 5% of unaccounted water per quarter and annually CALCULATION Volume purchased from CWA, City of San Diego customers + volume used by District/Volume purchased from CWA, City of San Diego, and RWCTP production 15 $1,138.00 $1,116.64 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 Q1 Q2 Q3 Q4 Result Target DIRECT COST OF TREATMENT PER MGD TARGET No more than $1464 per MGD spent on wastewater treatment annually | No more than $1255 MGD spent in Q1 & Q4 and $1673 MGD spent in Q2 & Q3 CALCULATION Total O&M costs directly attributable to sewer treatment/Total volume in MG for one quarter 0.0% 0.5% 0% 1% 2% 3% 4% 5% 6% 7% Q1 Q2 Q3 Q4 Result Target CONSTRUCTION CHANGE ORDER INCIDENCE TARGET No more than 5% per quarter and annually CALCULATION Cost of Change Orders (not including allowances)/Original construction contract amount (not including allowances)16 10% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target CIP PROJECT EXPENDITURES VS. BUDGET TARGET 95% of budget annually (Q1: 15% + Q2: 21% + Q3: 29% + Q4: 30% = 95%) CALCULATION Actual Expenditures/Annual Budget 17 99.99%99.99% 95% 96% 97% 98% 99% 100% 101% Q1 Q2 Q3 Q4 Result Target BILLING ACCURACY TARGET 99.8% billing accuracy per quarter and annually CALCULATION Number of correct bills/Number of bills issued during the reporting period CARLOS ROMERO Customer Service Field Rep II 25%25% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 Q2 Q3 Q4 Result Target EASEMENT EVALUATION AND FIELD INSPECTION TARGET 100% assigned easements, evaluated via desktop tools, and inspected annually (100 easements are assigned for FY24 | 25 easements per quarter) CALCULATION Number of easements evaluated and inspected/Total easements assigned for the period 18 JOSUE BEAS Construction Inspector I 0.14 0.27 0 2 4 6 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (LEAKS) (AWWA | Water Operations) TARGET No more than 2.5 leaks per 100 miles of distribution piping annually | No more than 0.625 leaks per 100 miles of distribution piping per quarter CALCULATION 100 (Number of leaks)/Total miles of distribution piping AWWA BENCHMARK 2.5 – 75th percentile for population served between 100,001-500,000 19 0 0.140 2 4 6 8 10 12 14 16 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile POTABLE WATER DISTRIBUTION SYSTEM INTEGRITY (BREAKS) (AWWA | Water Operations) TARGET No more than 3 breaks per 100 miles of distribution piping annually | No more than 0.75 breaks per 100 miles of distribution piping per quarter CALCULATION 100 (Number of breaks)/Total miles of distribution piping AWWA BENCHMARK 3 – 75th percentile for population served between 100,001-500,000 0 00 0.5 1 1.5 2 2.5 3 Q1 Q2 Q3 Q4 Result Target RECYCLED WATER SYSTEM INTEGRITY (LEAKS) TARGET No more than 2.5 leaks per 100 miles of recycled distribution system annually | No more than 0.625 leaks per 100 miles of recycled distribution system per quarter CALCULATION 100 (Number of leaks)/Total miles of recycled distribution system 20 0 00 0.5 1 1.5 2 2.5 3 Q1 Q2 Q3 Q4 Result Target RECYCLED WATER SYSTEM INTEGRITY (BREAKS) TARGET No more than 3 breaks per 100 miles of recycled distribution system annually | No more than 0.75 breaks per 100 miles of recycled distribution system per quarter CALCULATION 100 (Number of breaks)/Total miles of recycled distribution system 21 1241 917 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Q1 Q2 Q3 Q4 Result Target SYSTEM VALVE EXERCISING PROGRAM TARGET 20% of District valves exercised annually to accomplish 100% every five years (4092 valves annually | 1023 valves per quarter) CALCULATION Total number of valves exercised per year 322 238 100 150 200 250 300 350 Q1 Q2 Q3 Q4 Result Target HYDRANT MAINTENANCEPROGRAM TARGET 20% of District fire hydrants maintained annually to accomplish 100% every 5 years (1220 fire hydrants annually | 305 fire hydrants per quarter) CALCULATION Total number of fire hydrants maintained 22 0 00 1 2 3 4 5 6 7 8 9 10 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile SEWER OVERFLOW RATE (AWWA | Wastewater Operations) TARGET 0 overflows per quarter and annually CALCULATION 100 (Number of sewer overflows during the reporting period)/Total miles of pipe in the sewage collection system AWWA BENCHMARK 0 – 75th Percentile for population served between 0-50,000 100%100% 95% 96% 97% 98% 99% 100% 101% Q1 Q2 Q3 Q4 Result Target MARK-OUT ACCURACY TARGET 100% mark-out accuracy per quarter and annually CALCULATION Number of mark-outs performed without an at-fault hit, which is damage to a District facility that results from a missing or erroneous mark-out/Total number of mark-outs 1.46% 2.17% 0% 1% 2% 3% 4% 5% Q1 Q2 Q3 Q4 Result Target EMPLOYEE VOLUNTARY TURNOVER RATE TARGET Less than 5% turnover annually | Less than 1.25% turnover per quarter CALCULATION Number of voluntary terminations (not including retirements)/Average number of employees 23 STAFF TOURS 624-3 and 870-2 Pump Station 7.60 8.58 0 5 10 15 20 25 30 35 40 Q1 Q2 Q3 Q4 Result Target 75th Percentile Median 25th Percentile TRAINING HOURS PER EMPLOYEE (AWWA | Organizational Development) 10.38 17.97 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 Result Target SAFETY TRAINING PROGRAM TARGET 24 hours per field employee annually | 6 hours per employee per quarter CALCULATION Total qualified safety training hours for field employees/Average number of field employees 24 TARGET 15.6 hours per employee annually | 3.9 hours per employee per quarter CALCULATION Total qualified training hours for all employees/Average number of FTEs AWWA BENCHMARK 15.6 – Median for combined utilities RESOURCE LINKS Otay Water District Website | Strategic Plan FY23 - FY26 Strategic Plan Digital Publication QUESTIONS?