Loading...
HomeMy WebLinkAbout10-17-24 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 THURSDAY October 17, 2024 12:00 P.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 3.2024 END-OF-YEAR LEGISLATIVE UPDATE (TENILLE OTERO) [10 MINUTES] 4.SOCIAL MEDIA, MOBILE APPLICATION, AND WEBSITE ANALYTICS UPDATE (EILEEN SALMERON/TENILLE OTERO) [10 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 October 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 be- ing 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 October 15, 2024. /s/ Tita Ramos-Krogman, District Secretary STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: November 6, 2024 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Jose Martinez, General Manager SUBJECT: Presentation: 2024 End-of-Year Legislative Update GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: See Attachment A. PURPOSE: To provide the Board with an update on the 2024 legislative session. ANALYSIS: To support the Otay Water District’s commitment to a safe, reliable, diversified, and cost-effective supply for its ratepayers, the District manages a legislative program that establishes guidelines and policy direction that can be used by staff and legislative advocates on issues important to the District. The guidelines provide a helpful framework for staff when evaluating the potential impact on the District of state or federal legislation or other policy decisions. The Board adopted the 2024 Legislative Policy Guidelines at the April 3, 2024 Board meeting. These guidelines were beneficial throughout the year when a timely response was necessary to address last-minute amendments to legislation and when calls or letters of support or opposition were needed. Brownstein Hyatt Farber Schreck (BHFS) monitors significant bills that could potentially impact the District and/or its ratepayers. Baltzar Cornejo from BHFS will present a legislative update on the 2024 legislative session. Please see Attachment B for a legislative report of the legislative session and Attachment C for the BHFS presentation. FISCAL IMPACT: Joe Beachem, Chief Financial Officer None. AGENDA ITEM 3 STRATEGIC GOAL: Enhance and build public awareness of the District’s priorities, initiatives, programs, and services. LEGAL IMPACT: None. Attachments: A) Committee Action B) Memo from BHFS C) Presentation ATTACHMENT A SUBJECT/PROJECT: Presentation: 2024 End-of-Year Legislative Update COMMITTEE ACTION: The Conservation, Public Relations, Legal, and Legislative Committee will review these items at the monthly Board meeting on October 17, 2024. The attachment will be updated with notes from the committee’s discussion. 30809411.1 www.bhfs.com Brownstein Hyatt Farber Schreck, LLP 916.594.9700 main 1415 L Street, Suite 800 Sacramento, California 95814 Memorandum Summary The California legislature reconvened on January 3, 2024, for the second year of the 2023-2024 regular session. A total of 2,159 bills were introduced, with the legislature passing 1206, sending them to Governor Gavin Newsom for consideration by the August 31, 2024 deadline for bills to pass each house. The Governor signed 1,017 and vetoed 189 for a veto rate of 15.7% by the September 30, 2024 deadline. The average veto rate over the past decade has been 15%, with this year’s rate being slightly above that average. The primary reasons for vetoes are as follows: Budget Impact Concerns – 30%; Unwarranted Policy Change – 27%; and Unnecessary – 22%. The California legislature is currently in the midst of a special session (2nd Extraordinary Session) to act on a proposal by the Governor to address spikes in gasoline prices. The Governor officially called the ongoing extraordinary session on August 31, 2024, to consider his proposal that would allow the state to require oil refiners to manage a minimum fuel inventory to avoid supply shortages that result in higher gasoline prices. The Assembly convened for the extraordinary session and approved the proposal. The Senate convened on Monday, October 7. This was a significant year as legislators introduced a wide array of legislation impacting public agencies. It was also a year of key successes, as public agency associations, member agency contract lobbyists, and allies successfully defeated significant problematic legislation, passed beneficial legislation, and impacted the enacted state budget. This session was also a year of changes to key water leadership positions. Governor Newsom named Department of Water Resources Director Karla Nemeth as his advisor on the Administration’s water priorities and tasked her with implementing the Governor’s water supply strategy, which includes modernizing California’s water conveyance infrastructure, executing agreements to support healthy rivers and landscapes, and stabilizing Colorado River supplies. DATE: October 8, 2024 TO: Board of Directors and General Manager Jose Martinez, Otay Water District FROM: Baltazar Cornejo, Policy Advisor, Brownstein Hyatt Farber Schreck, LLC RE: 2024 End-of-Session Legislative Update Attachment B 2 With a new Speaker of the Assembly and President Pro Tem being selected last year, changes came in key committee leadership positions. Speaker Robert Rivas (D-Salinas) appointed Assemblywoman Diane Papan (D-San Mateo) as Chair of the Assembly Water, Parks, and Wildlife Committee, replacing former Chairwoman Rebecca Bauer Kahan (D-Orinda). In the Senate, President Pro Tem Mike McGuire (D-Healdsburg), who succeeded former Pro Tem Toni Atkins (D-San Diego), appointed Senator Dave Min (D-Irvine) to replace Senator Henry Stern (D-Calabasas). Former Senate President Pro Tem Toni Atkins announced that she would be running for Governor in the 2026 gubernatorial elections. The Association of California Water Agencies (ACWA) also saw some late-session changes in key advocacy positions. Senior State Relations Advocate Kristopher Anderson departed ACWA on August 9, 2024, to join the California Chamber of Commerce as their new water policy advocate. Following Mr. Anderson’s departure, State Relations Director Adam Quiñonez departed on Oct. 4. State Budget This was another difficult year of revenues for the state after surpluses during the COVID-19 pandemic. Last year’s adopted budget faced a nearly $32 billion budget deficit. According to the State Analyst Office, this year’s budget deficit was $58 billion based on revenue projections at the time of the Governor’s Budget proposal in January. Later revenue numbers brought that estimate closer to $73 billion, with debate about the true number as we approached the May revision. Such a significant budget problem made any additional spending difficult. The adopted 2024-2025 budget maintained $6.7 billion of the 2021-2022 significant year of $8.7 billion of investments over multiple years in programs and projects to address droughts and floods. The budget included $1.4 billion in General Fund reductions and $539.1 million in fund shifts across various programs. The budget also included $189.1 million in new one-time investments to support flood protection, levee repair, and restoration of the Salton Sea. The Budget includes a $123.9 million one-time General Fund to support critical flood safety efforts. These include, but are not limited to: -$33 million General Fund to support the state cost share of continuing U.S. Army Corps of Engineers projects and Urban Flood Risk Reduction projects that address flood risk reduction. -$31.3 million General Fund to support the continuation of existing multi-benefit flood risk reduction projects in the Central Valley. -$29.6 million General Fund to address storm damage at state Plan of Flood Control facilities and state-owned Delta lands for critical repairs associated with the 2023 storms. To address the projected budget shortfall, the adopted budget contained the following changes: -A reversion of $88.4 million and reduction of $298 million General Fund over the next two years, and a shift of $15 million to Greenhouse Gas Reduction Fund (GGRF) in 2025-26 for various watershed climate resilience programs, maintaining $108 million previously allocated. 3 -A reversion of $97.6 million General Fund and a shift of $254.9 to GGRF in 2024-25 and 2025- 26 for drinking water and wastewater infrastructure projects in disadvantaged communities, maintaining $1.6 billion previously allocated. -A reversion of $185.9 million General Fund and a fund shift of $15 million GGRF in 2025-26 for water recycling and groundwater cleanup, maintaining $336 million previously allocated. -A reduction of $500 million General Fund in 2025-26 for water storage projects. -A reversion of $100.7 million General Fund and reduction of $30 million in 2024-25 for per-and polyfluoroalkyl substances support, maintaining $24 million previously allocated. -A reversion of the $50 million General Fund for dam safety investments, maintaining the $50 million previously allocated. A significant win for the water community in the budget included the restoration of nearly $500 million for the agreements to support healthy rivers and landscapes, formerly known as the Voluntary Agreements, for the updates to the Bay-Delta Quality Control Plan. The funding was previously rescinded in the main budget bill, AB 107 (Gabriel). ACWA, the Northern California Water Association, the State Water Contractors, and various other organizations successfully lobbied to maintain almost all funding. Water Bond Otay joined 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. Although three water-related bond measures were introduced during last year’s session, they were held until this year as the Governor wanted the voters’ focus for this year’s primary election to be on his mental health initiative. Only two bond measures were passed by the legislature and placed on the November ballot, with one being a climate and resources bond. ACWA ultimately adopted a “Watch” (neutral) position as they sought 2/3 of the overall amount for water but ended up with less than 1/3 with minimal investments in critical categories. The proposed climate bond supplements the cuts that were made to the general fund budget. Proposition 4, placed on the November ballot by SB 867 (Allen): Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, contains the following breakdown of funding: •$3.8 billion for safe drinking water, drought, flood, &water resilience programs (see below for breakdown). •$1.5 billion for wildfire and forest resilience programs. •$1.2 billion for coastal resilience programs. •$450 million for extreme heat mitigation programs. •$1.2 billion for biodiversity protection and nature-based climate solution programs. 4 • $300 million for climate-smart, sustainable, resilient farms, ranches, and working lands programs. • $700 million for park creation and outdoor access programs. • $850 million for clean air programs. Below is a breakdown of what ACWA advocated for, and what ultimately ended up in the initiative: Surface Water Storage • Ask: $550 million • Initiative: $75 million State Water Project • Ask: $500 million • Initiative: $0 Regional Water Conveyance • Ask: $600 million • Initiative: $75 million Dam Safety/informed Reservoir Ops • Ask: $700 million • Initiative: $480 million Recycling & Desal (brackish, not ocean) • Ask: $1 billion • Initiative: $448.75 million Regional Watershed Conveyance • Ask: $700 million • Initiative: $100 Safe Drinking Water & Clean Up • Ask: $500 million • Initiative: $610 million Groundwater Management • Ask: $750 million • Initiative: $386.25 million Flood Protection • Ask: $950 million • Initiative: $660 million Water Conservation • Ask: $400 million • Initiative: $75 million Water Affordability Otay’s identified top priority for this year’s session is affordability. This was also a key issue addressed in this legislative session. As such, a trio of bills introduced this session by public water agencies, all aiming to protect their water rates and service-related fees and charges against costly Proposition 218 litigation by high water users, were signed into law by the Governor. • AB 2257 (Wilson): The ACWA-sponsored bill provides that if a local agency complies with specified exhaustion of remedies procedures for purposes of any fee of assessment adopted by that local agency pursuant to Section 4 or 6 of Article XIII D of the California Constitution (Proposition 218), then a person or entity that has not timely submitted to that local agency a written objection, as specified, is prohibited from bringing a judicial action or proceeding alleging noncompliance with those constitutional provisions and limits a record of proceedings in court to containing specified documents, except specified. • AB 1827 (Papan): Irvine Ranch Water District and California Coastkeeper Alliance’s sponsored bill provides that fees or charges for property-related water service imposed or increased pursuant to the state Constitution may include the incrementally higher costs of water service. 5 •SB 1072 (Padilla): Otay Water District and the City of San Diego’s sponsored bill provides that if a court determines that a fee or charge for a property-related service violates Proposition 218, then the local agency must credit that amount against the cost of providing the property- related service, unless statute explicitly provides a refund remedy. It also provides that this section does not apply to claims related to billing errors. Brownstein policy professionals, with assistance from Otay staff and private counsel, worked with Senator Padilla’s office to maneuver the bill through the legislative process, developed and led a coalition in support, and lobbied the Governor’s office for his signature. All these bills had significant coalitions in support and, while not an official package, complement each other by addressing various aspects of Proposition 218 rate-making procedures and litigation. Beginning next year, public agencies will have more clarity on rate-making methodologies, more opportunities for agencies and ratepayers to resolve objections during the public process to avoid future litigation, and if agencies are sued, ensure that agencies and future ratepayers do not get overburdened with retroactive refunds. With these new laws, the landscape of Proposition 218 litigation has changed. During the height of the COVID-19 pandemic, the federal government funded a Low-Income Household Water Assistance Program (LIHWAP) to provide financial assistance to low-income Californians with residential water utility costs and debt repayment. California was allocated $116 million in one-time funding to provide LIHWAP assistance through the Department of Community Services and Development (CSD). In response to low LIHWAP participation and grant expenditures, CSD expanded eligibility to include current bills to maximize grant expenditures. LIHWAP benefit payments began to be issued to households in June 2022, with all funds being expended by March 31, 2024, when the program sunset. Interest in water affordability and the sunset of LIHWAP also led to a well-intentioned but highly problematic bill being introduced and ultimately stopped. •SB 1255 (Durazo): Creating a statewide Low-Income Rate Assistance program would have required agencies to provide each ratepayer the option and method of opting out of paying voluntary contribution at least three months prior to beginning collection of the voluntary contribution and at least annually after. ACWA opposed and proposed amendments for an opt- in program, as otherwise, many ratepayers could end up paying voluntary contributions without their knowledge by not reviewing their water bills, resulting in public distrust of the agencies, and refund requests that would increase administrative costs and therefore limiting funding for the program itself. Due to coordinated opposition, the bill failed to make it out of the Assembly Appropriations Committee’s suspense file. On the federal level, United States Senator Alex Padilla introduced S. 3830, which would establish a permanent, nationwide water assistance program that is modeled after the current program to 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. This would 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 6 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 Health and Human Services to the U.S. Environmental Protection Agency (USEPA) upon completion of the Rural and Low-Income Water Assistance Pilot Program authorized in the Bipartisan Infrastructure Law. The bill is still pending in the Senate. Representative Pat Fallon (R-TX) and Representative Brittany Pettersen (D-CO) introduced H.R.7525, which requires Federal agencies to recognize special districts as local government for the purpose of Federal financial assistance determinations, and also codifies in federal law a first-ever, formal definition of "special district”. The bill passed the House 352 to 27 and is pending in the Senate. Following the successful House passage of H.R. 7525 in May 2024, U.S. Senators Kyrsten Sinema (I-AZ) and John Cornyn (R-TX) introduced a companion version of the Special District Grant Accessibility Act (SDGAA – S. 4673), which is pending action. Regulatory Developments & Related Legislation Regarding potable reuse, on December 19, 2023, the State Water Resources Control Board (State Water Board) approved regulations that allow water systems to develop treatment protocols to convert wastewater into high quality drinking water, known as direct potable reuse. California’s Office of Administrative Law (OAL) approved OAL File No. 2024-0624-02S – the Direct Potable Reuse Regulations – and filed with the Secretary of State on August 6, 2024. The regulations took effect on October 1, 2024. The rules 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. Regarding water use and efficiency, on August 18, 2023, the State Water Board released 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 establishes unique efficiency goals for each supplier based on local conditions, leaving some flexibility to implement locally appropriate solutions. Furthermore, in 2022, SB 1157 (Herzberg) was adopted to change the standards for indoor residential water use to align with those recommended by DWR beginning in 2025 to 47 gallons per capita daily (GPCD) and beginning in 2030 to 42 GPCD. In response to a critical Legislative Analyst Office report released in January calling the proposed regulations “costly and difficult to achieve,” Board staff 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. The Board unanimously adopted the regulation on July 3, 2024 to start taking effect in 2025. Under the regulation, urban retail water suppliers must comply with three major components: •An urban water use objective, which is a supplier specific water budget that is the sum of water use efficiency standards that are applied to unique local characteristics (e.g., population, landscape area, etc.) 7 •Commercial, industrial, and institutional (CII) performance measures •Annual reporting ACWA collaborated with its members and coalition partners to secure extensive amendments that resulted in a more feasible and cost-effective regulation, including: •Changes to timelines for the outdoor water use standard and CII performance measures. •Inclusion of feasible alternative compliance pathways. •Modifications to compliance start date. •Inclusion of 20% of suppliers’ irrigable, not irrigated area. •Changes to processes requesting variances & temporary provisions and the inclusion of a tree variance. Suppliers must work with their customers to achieve water savings to meet the new regulation as individual customers are not required to comply with the urban water use objective. Beginning Jan. 1, 2025, and by Jan. 1 every year thereafter, each urban retail water supplier is required to calculate its urban water use objective for the previous year. Each year, the objective will be based on dynamic data such as weather and population. Beginning January 1, 2027, each urban retail water supplier must demonstrate compliance with its urban water use objective. There were several bills introduced this session to delay implementation and reporting that failed to move forward but placed increased pressure on the Water Board to amend its proposed regulations: •SB 1330 (Archuleta): Would have delayed the State Water Board’s authority to enforce the urban water use objective, deletes obsolete reporting requirements, requires DWR to study efficiency performance of certain classes of landscapes, requires LAO to complete another report on the implementation of the urban water use objective by January 10, 2029. •AB 3121 (Hart): Would have delayed by two years when the State Water Board may begin issuing orders to enforce the urban water use objective and require the LAO to report to the Legislature on implementation of the urban water use objective by January 10, 2028. •SB 1110 (Ashby): Would have permitted the State Water Board to adopt a policy to guide its enforcement of urban water use objective regulations, delay enforcement of the objectives by two years, consolidate reporting on urban water use, and allow water agencies to report on a calendar or fiscal year basis. Regarding water quality, on April 17, 2024, the State Water Board adopted the Hexavalent Chromium maximum contaminant level (MCL) of 10 parts per billion (ppb). The regulation applies to all water suppliers, including small public water systems. It was approved by the Office of Administrative Law on July 24 and took effect on October 1, 2024. On April 10, the USEPA announced a new national MCL of 4 parts per trillion (ppt) for PFOA and PFOS as individual contaminants and a standard of 10 ppt for three other chemicals — PFNA, PFHxs, and HFPO-DA. This enforceable rule requires public water systems to monitor for these PFAS, notify the public of the levels of these PFAS, and reduce their levels in drinking water if they exceed the MCL. Public agencies have five years to come into compliance. 8 Furthermore, the California Office of Environmental Health and Hazard Assessment on April 5 adopted public health goals of 0.007 ppt for PFOA and 1.0 ppt for PFOS. A public health goal is a drinking water objective that does not pose a significant risk to health. It is not enforceable but serves as the basis for developing maximum contaminant levels. Assemblyman Holden introduced legislation this year to address the Governor’s veto of his AB 249 from last year, which would have required, on or before January 1, 2027, a community water system that serves a school site receiving federal Title I funds to test for lead in each of the school site’s potable water system outlets and to report the results to the SWB and applicable school site or LEA; would have required LEAs or school sites, if lead levels exceeded five ppb, to perform specified actions. •AB 1851 (Holden): Would have required the Superintendent of Public Instruction (SPI) to provide grants to participating local educational agencies (LEAs) for testing drinking water lead levels, remediating lead in drinking water at eligible facilities, and contracting with a technical assistance (TA) provider. The bill failed in the process. On Tuesday, October 8, 2024, the USEPA announced its final rule on lead and copper concerning drinking water. Drinking water systems will have 10 years to identify and remove all lead pipes in their respective systems. The rules require additional testing if drinking water supplies and lowers action thresholds, requires more communications at the community level, and comes with an announcement of $2.6 billion companion funding for lead pipe replacements through the Drinking Water State Revolving Fund and at least $15 billion through the Biden-Harris Bipartisan Infrastructure Act. The USEPA will be offering webinars over the next few months to help drinking water utilities understand the new rule. Furthermore, on December 19, 2023, the final draft of the Cross Connection Control Policy Handbook was approved by the State Water Board. This handbook replaces 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 an increased workload for the District and additional costs to customers. Regarding advanced clean fleets rule implementation, the California Air Resources Board (CARB) has been hosting workshops on targeted amendments to the Advanced Clean Fleets (ACF) regulation adopted last year to implement the requirements of AB 1594 (Garcia, 2023), which the District supported to provide more accommodations for public agencies in the adopted regulation. Below are Proposed amendments to the public fleets provisions from the most recent workshop on October 3, 2024: •Definition added for “traditional utility-specialized vehicle” for public agencies (including Class 3-8 vehicles) to be applied to the Zero Emissions Vehicles (ZEV) Purchase Exemption and Daily Usage Exemption •Specifies early access (less than 13 years to retire the vehicle) 9 •Added criteria of usage data by vehicle class (mileage and hours of operation thresholds) that provide you “early” access to the Daily Usage Exemption and ZEV Purchase Exemption. ACWA staff has reported that CARB has affirmed that the addition of the Traditional Specialty Utility Vehicles definition and provisions entails that public fleets can avoid the 13-year requirement that applies to the ZEV Purchase Exemption and Daily Usage Exemption pathways by submitting a vehicle purchase plan OR demonstrating that an agency’s sting fleet vehicle exceeds the mileage/usage thresholds identified. CARB also clarified how they will review exemption requests made during 2024-2026 as agencies contend with the 50% new purchase requirement. Internal Combustion Engine (ICE) vehicles listed in the Purchase List will not be a separate category from 50/50 purchases. They are likely to evaluate requests for an exemption based on an agency’s current vehicle purchases for the year and if any of their ICE purchases could have been made to purchase ZEVs. Delta Conveyance, Sites Reservoir & State Water Project Operations This year also marked significant progress in two major storage and conveyance projects, the Delta Conveyance Project (DCP), formerly known as WaterFix, and the Sites Reservoir storage project. Regarding the delta conveyance project, on December 8, 2023, the Department of Water Resources (DWR) released the final environmental impact report (EIR) and certified it on December 21, 2024. Following the certification, various environmental organizations filed suits in late January 2024. On May 16, 2024, DWR released a Benefit Cost Analysis of DCP that found that the DCP would create billions of dollars in benefits for communities across California, including reliable water supplies, climate change adaptation, earthquake preparedness, and improved water quality. On June 20, 2024, the Sacramento County Superior Court halted DWR from undertaking further geotechnical investigations implementing the DCP until DWR files a certification of consistency with the Delta Stewardship Council as required under the Sacramento-San Joaquin Delta Reform Act of 2009. DWR posted a draft certification of consistency for the 2024-2026 Proposed Geotechnical Activities proposed action. This draft certification only concerned certain geotechnical activities related to data collection, such as cone penetration tests, soil borings, and water quality sampling within soil borings. Planning and design geotechnical data collection from the 2024-2026 Proposed Geotechnical Activities is important to inform the planning and design of the DCP, and future discretionary permitting and funding decisions by DWR and other agencies. DWR did not originally plan to submit a certification of consistency for these 2024-2026 Proposed Geotechnical Activities but did so based on the Sacramento Superior Court’s June 20 ruling. On August 1, 2024, the State Water Board released a notice of public hearing regarding the Delta Conveyance Project. The hearing on January 16, 2025, will address DWR’s water right change petitions to add new points of diversion and rediversion to the water rights of the State Water Project (SWP), whether to approve the petitions and what terms and conditions to include in the amended permits. On September 17, the State Water Board released a Notice of Pre-Hearing Conference and Procedural 10 Ruling for October 17 regarding DWR’s pending Petitions for Change of Water Rights Permits associated with the State Water Project. The prehearing conference will address DWR’s withdrawal of the petitions for water rights extension of time and request to amend the change petitions. Regarding the Sites Reservoir Project, in early November of last year, the Governor announced he had certified the project under SB 149 (Caballero, 2023), which allows the Governor to certify qualifying infrastructure projects for judicial streamlining under the California Environmental Quality Act (CEQA), which provides that courts must decide CEQA challenges within 270 days to the extent feasible. In mid-November, the Bureau of Reclamation and Sites Project Authority certified its final Environmental Impact Report (EIR) and was approved to proceed. Conservation & environmental justice groups the Friends of the River, Center for Biological Diversity, California Sportfishing Protection Alliance, California Water Impact Network, Save California Salmon, and Sierra Club filed a suit on December 20, 2023, against the EIR approval. In June of this year, a Yolo County judge denied the suit to stop the project. The plaintiffs appealed the decision in the Third Appellate District Court with Friends of the River v. Sites Project Authority. That CEQA legal challenge was further defeated on September 20, with the appellate court ruling building on victory in the trial court. Regarding the State Water Project, 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 1, 2023. DWR announced a final increase in the State Water Project (SWP) water supply allocation forecast for 2024 on April 23 to 40%. It is important to note that last year’s allocations eventually reached 100% for the first time since 2006. Water Rights and Groundwater Regarding water rights modernization, due to extreme weather patterns and greater federal level discussions on the Colorado River water rights, water rights rose to the top of the Legislature’s agenda last year. Several bills were introduced last year that collectively presented a fundamental change in California’s water rights system, and a coordinated effort occurred to fundamentally change how the water rights system is implemented and enforced. The remaining bills that were considered this session included: •AB 1337 (Wicks): Would have given the State Water Board authority to adopt sweeping curtailment regulations for water conservation purposes to prevent waste, unreasonable use, or unreasonable method of diversion of water. Failed in legislative process. •AB 460 (Bauer-Kahan): Would have authorized the State Water Board to issue an interim relief order on water rights. ACWA removed opposition due to negotiated amendments that removed problematic provisions related to regulatory and enforcement issues and instead raised the penalties for illegal diversions. Signed into law. 11 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 successfully led a coalition in opposition to the above-described legislation. Regarding groundwater, as the state celebrated the 10-year anniversary of the Sustainable Groundwater Management Act (SGMA), two controversial bills that would have convoluted existing Sustainable Groundwater Management Act implementation efforts were introduced. The first, a DWR- sponsored bill that would have banned new groundwater wells was defeated by a coalition of public water agencies, special districts, local governments, agricultural organizations, and chambers of commerce. •AB 2079 (Bennett): Would have mandated greater interagency coordination and public notice regarding applications to drill water wells and prohibited a local agency from approving new “large diameter, high-capacity” wells within one-quarter mile of domestic wells and areas of significant land subsidence, unless specifically exempted. The bill failed to pass the Senate Natural Resources and Water Committee. The second is a bill supported by ACWA members, Grasslands Water District but opposed by ACWA and agricultural organizations. •AB 828 (Connolly): Would have prohibited a groundwater sustainability agency (GSA) from imposing a fee upon a small community water system serving a disadvantaged community or on a managed wetland, meaning that a GSA would be unable to regulate or impose fees on those uses, increasing the share of the burden on all other groundwater extractors. This bill passed the legislature but was vetoed by the Governor. Furthermore, in regard to SGMA implementation, in a first and second in the history of California, the State Water Board placed two San Joaquin Valley farming regions on probation, the Tulare Lake subbasin and the Tule subbasin, for inadequate groundwater sustainability plans to address chronic over pumping. Following the decision to place the Tulare Lake subbasin on probation, the Kings County Farm Bureau sued, and the judge ruled in favor of issuing an injunction to halt the costly probationary demands issued against the region’s water users until the matter goes to trial. The State Water Board has appealed the injunction to the Fifth District Court of Appeal in Fresno. Several groundwater recharge bills were introduced this year to build on the momentum of the Governor's Executive (EO) issued in March of 2023 regarding flood flows and the legislation codifying it into law. To use last wet winter’s high water flows for groundwater recharge, the Governor issued EO N-4-23, which authorized diverters to temporarily take flood flows off of streams and rivers for groundwater recharge without obtaining a water right, complying with the California Environmental Quality Act, and obtaining a Lake and Streambed Alteration Agreement. The authority in EO N-4-23 was modified and extended through EO N-7-23 and codified into law with SB 122 (Committee on Budget). The most notable bills introduced but which failed to move forward were: •AB 2060 (Soria): Would have exempted a temporary urgency permit to divert water for underground storage from Lake and Streambed Alteration Agreement requirements if the 12 water diversion commences before January 1, 2029, and met certain criteria. Failed in the process. •SB 1390 (Caballero): Would have allowed more groundwater projects to move forward during flood events by providing water agencies with information about when flood conditions start and end using sophisticated forecasting models to anticipate flood events. Failed in the process. Other Impactful Legislation To address California’s housing supply shortage, a trend has developed in the legislature over the past few years to introduce and pass legislation that inhibits local control on zoning authority and development fees. Recent casualties of those efforts are local public agencies. While ACWA and other public agency associations were successful in working to amend some of the legislation, a concerning bill was signed into law. •SB 937 (Wiener): Amends the Mitigation Fee Act, which governs the collection of development-related fees that pay for the costs to install infrastructure necessary to build new homes and other developments by deferring development-related fees until the certificate of occupancy or its equivalent and limiting exceptions to this rule. Other water legislation approved by the Governor included: •AB 805 (Arambula): This authorizes the State Water Board to require a designated sewer system—for a sewer system serving a disadvantaged community that has demonstrated a failure to maintain technical, managerial, and financial capacity to prevent waste, fraud, and abuse—to contract with an administrator designated or approved by the board. •SB 1188 (Laird): This bill provides small water systems with technical resources to prevent failure. •AB 2454 (Lee): This requires that rental property owners participate in state programs for domestic well testing to determine if remediation is needed. A bill supported by the District, but which was vetoed: SB 366 (Caballero): Would have required the Department of Water Resources, as part of the 2033 update, to revise the contents of the California Water Plan to focus on developing a long-term water supply planning target for 2050 to identify and create plans for future water needs of various water sectors. Otay Water District Legislative & Regulatory Priorities for 2024 End of Session Overview Presented by: Baltazar Cornejo Policy Advisor October 17, 2024 Attachment C Legislative & Regulatory Priorities 2024 End of Session Overview 2 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Legislative Update •Legislature reconvened on January 3, 2024. •In 2024, a total of 2,124 bills introduced were introduced by the February 16th deadline for bill introductions. 1206 bills were sent to the Governor’s desk, and of those, he signed 1,017 and vetoed 189, for a veto rate of 15.7%. The average veto rate over the past decade has been 15%, so this year’s rate is slightly above that average. •The California legislature is currently in a special session (2nd Extraordinary Session) to act on a proposal by Governor Gavin Newsom to address spikes in gas prices. •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 to 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 assist low-income Californians with residential water utility costs and debt repayment. —California has been allocated $116 million in one-time funding for 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, when the program sunset. •Federal Legislation —United States Senator Alex Padilla has introduced S. 3830, which would establish a permanent, nationwide water assistance program that is modeled after the current program to 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. Would 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; & 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. Pending in Senate. —Representative Pat Fallon (R-TX) & Representative Brittany Pettersen (D-CO) introduced H.R.7525 which requires Federal agencies to recognize special districts as local government for the purpose of Federal financial assistance determinations. & codifiers in Federal law a first-ever, formal definition of "special district.“ Passed the House 352 – 27 and pending in the Senate. Following the successful House passage of H.R. 7525 in May, U.S. Senators Kyrsten Sinema (I-AZ) and John Cornyn (R-TX) introduced a companion version of the Special District Grant Accessibility Act (SDGAA – S. 4673). 4 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | •Three Bills introduced this session to address issues with Proposition 218 to protect public agencies from lawsuits costing them millions in refunds to high consumptive water user plaintiffs. Successful passage of all three bills has altered the landscape of Prop 218 litigation. —Association of California Water Agencies (ACWA) sponsored Assembly Bill 2257 (Wilson), which 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. Signed into law on Sept. 24th. —Irvine Ranch’s 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. Signed into law on Sept. 22nd. —Otay’s sponsored Senate Bill 1072 (Padilla) provides that if a court determines that fee or charge for a property-related service, including water, sewer, and refuse collections, violates Proposition 218, then the local agency must, in the next procedure to impose or increase the fee or charge, credit that amount against the cost of providing the property related service, unless statute explicitly provides a refund remedy. Signed into law on Sept. 20th. •Concerning Bill Defeated -(SB 1255, Durazo) was defeated in the process, which would have required agencies to provide each ratepayer the option and method of opting out of paying voluntary contribution at least three months prior to beginning collection of the voluntary contribution, and at least annually after for a ratepayer assistance program. ACWA preferred an opt-in program as many ratepayers could end up paying voluntary contributions without their knowledge by not reviewing their water bills, resulting in public distrust of the agencies and refund requests that would increase administrative costs and limit funding for the program. 5 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 2. Water Bonds & Infrastructure Otay joined 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 bond measures were introduced last year, they were made 2-year bills as the Governor wanted to focus on his Mental Health Proposal for the primary election. The legislature passed only one bond measure and placed it on November ballot. ACWA ultimately adopted a “Watch” (neutral) position as they sought 2/3 of the overall amount for water but ended up with less than 1/3 with minimal investments in critical categories. Proposition 4: SB 867 (Allen): Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024. •$3.8 billion for safe drinking water, drought, flood, &water resilience programs (Next page for breakdown) •$1.5 billion for wildfire and forest resilience programs •$1.2 billion for coastal resilience programs •$450 million for extreme heat mitigation programs •$1.2 billion for biodiversity protection and nature-based climate solution programs •$300 million for climate-smart, sustainable, and resilient farms, ranches, and working lands programs •$700 million for park creation and outdoor access programs •$850 million for clean air programs. 6 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | ACWA’s Coalition Asks vs Bond Initiative Surface Water Storage •Ask: $550 million •Initiative: $75 million State Water Project •Ask: $500 million •Initiative: $0 Regional Water Conveyance •Ask: $600 million •Initiative: $75 million Dam Safety/informed Reservoir Ops •Ask: $700 million •Initiative: $480 million Recycling & Desal (Specific to desalination funding for brackish water, not ocean) •Ask: $1 billion •Initiative: $448.75 million Regional Watershed Conveyance •Ask: $700 million •Initiative: $100 Safe Drinking Water & Clean Up •Ask: $500 million •Initiative: $610 million Groundwater Management •Ask: $750 million •Initiative: $386.25 million Flood Protection •Ask: $950 million •Initiative: $660 million Water Conservation •Ask: $400 million •Initiative: $75 million 7 © 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 allow water systems to develop treatment protocols to convert wastewater into high quality drinking water, known as direct potable reuse. •California’s Office of Administrative Law (OAL) approved OAL File No. 2024-0624-02S – the Direct Potable Reuse Regulations – and filed with the Secretary of State on August 6, 2024. The regulations took effect on October 1, 2024. •The rules 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. 8 © 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 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 establishes unique efficiency goals for each supplier based on local conditions, leaving some flexibility to implement locally appropriate solutions. —In response to a critical Legislative Analyst Office report released in January calling the proposed regulations “costly and difficult to achieve,” Board staff proposed less stringent water-saving standards, reducing the number of suppliers required to achieve large cuts of more than 20%, and extending the timeline for water reductions an additional five years to 2040. The Board unanimously adopted the regulation on July 3, 2024, to take effect in 2025. —Under the regulation, urban retail water suppliers must comply with three major components: •An urban water use objective, a supplier-specific water budget that is the sum of water use efficiency standards applied to unique local characteristics (e.g., population, landscape area, etc.) •Commercial, industrial, and institutional (CII) performance measures •Annual reporting —ACWA worked with its members and coalition partners to secure extensive amendments that resulted in a more feasible and cost-effective regulation, including: •Changes to timelines for the outdoor water use standard and CII performance measures •Inclusion of feasible alternative compliance pathways •Modifications to compliance start date •Inclusion of 20% of suppliers’ irrigable, not irrigated area •Changes to processes requesting variances & temporary provisions, and the inclusion of a tree variance 9 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | —Suppliers must work with their customers to achieve water savings to meet the new regulation, as individual customers are not required to comply with the urban water use objective. —Beginning Jan. 1, 2025, and by Jan. 1, every year thereafter, each urban retail water supplier is required to calculate its urban water use objective for the previous year. Each year, the objective will be based on dynamic data such as weather and population. Beginning Jan. 1, 2027, each urban retail water supplier must demonstrate compliance with its urban water use objective There were a number of bills introduced this session to delay implementation and reporting that failed to move forward but increased pressure on the Water Board to amend its proposed regulations: —SB 1330 (Archuleta) would have delayed the State Water Board’s authority to enforce the urban water use objective, deletes obsolete reporting requirements, requires DWR to study efficiency performance of certain classes of landscapes, requires LAO to complete another report on the implementation of the urban water use objective by January 10, 2029, and makes other changes to the urban water use objective statute. —AB 3121 (Hart) would have delayed by two years each the dates on which the State Water Board may begin issuing orders to enforce the urban water use objective and requires the LAO to report to the Legislature on implementation of the urban water use objective by January 10, 2028. —SB 1110 (Ashby) would have permitted the State Water Board to adopt a policy to guide its enforcement of urban water use objective regulations, delay enforcement of the objectives by two years, consolidate reporting on urban water use, and allow water agencies to report on a calendar or fiscal year basis. 10 © 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. —Chromium (hexavalent) Chrome 6 was first on that list. On April 17, the State Water Board adopted the Hexavalent Chromium (Cr(VI)) Maximum Contaminant Level of 0.010 milligrams per liter (mg/L) (or 10 parts per billion). The Regulation, which applies to all water suppliers, including small public water systems, was approved by the Office of Administrative Law on July 24, was filed with the California Secretary of State, and took effect on October 1, 2024. —PFOA & PFOS is next. On April 10, the U.S. Environmental Protection Agency announced a new national maximum contaminant level (MCL) of 4.0 parts per trillion (ppt) for PFOA and PFOS as individual contaminants and a standard of 10 ppt for three other chemicals — PFNA, PhDs, and HFPO-DA (referred to as GenXChemicals). This enforceable rule requires public water systems to monitor for these PFAS, notify the public of the levels of these PFAS, and reduce the levels of these PFAS in drinking water if they exceed the MCL. Utilities will have five years to come into compliance. ACWA considers these MCLs to be infeasible because the anticipated costs of complying are not adequately captured under EPA’s cost assessment. —The California Office of Environmental Health and Hazard Assessment on April 5 adopted public health goals of 0.007 ppt for PFOA and 1.0 ppt for PFOS. A public health goal is a drinking water objective that does not pose a significant health risk and is not enforceable but serves as the basis for development of MCLs. Division of Drinking Water (DDW) adopted MCL calendar for 2024 as follows: —a. Chromium (hexavalent) Adopted —b. Perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS) In Process —c. Arsenic —d. N-nitroso-dimethylamine (NDMA) —e. Styrene f. Cadmium and Mercury —g. Disinfection Byproducts 11 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 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, which would have required, on or before January 1, 2027, a community water system that serves a school site receiving federal Title I funds to test for lead in each of the school site's potable water system outlets and to report the results to the SWB and applicable school site or LEA; would have required LEAs or school sites, if lead levels exceeded five ppb, to perform specified actions. -AB 1851 would require the Superintendent of Public Instruction (SPI) to provide grants to participating local educational agencies (LEAs) for testing drinking water lead levels, remediating lead in drinking water at eligible facilities, and contracting with a technical assistance (TA) provider. Bill failed in process. 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 must provide a Cross Connection Control Plan to the board by July 1, 2025. District staff commented on portions of the handbook that will result in increased workload for the District and additional costs to customers. Specifically, that: -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 a looped fire system is in place. District staff believes most homes will not be compliant, so it will require them to install backflow devices. About 3,200 homes are estimated to be affected by this. -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 assess more than 50,000 services and create a process to resurvey commercial and multi-residential properties when ownership changes. 12 © 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 at April 27, 2023 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 29, 2023, and it became official October 1, 2023. •AB 1594 (E. Garcia) was signed by the Governor last year 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 to determine 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. 13 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | The California Air Resources Board (CARB) hosted a second workshop on targeted amendments to the Advanced Clean Fleets (ACF) regulation that implements the requirements of Assembly Bill 1594 (Garcia, 2023). Proposed amendments to the Public Fleets provisions: -Definition added for “traditional utility-specialized vehicle” for public agencies (including Class 3-8 vehicles) to be applied to the ZEV Purchase Exemption and Daily Usage Exemption. -Specifies early access (less than 13 years to retire the vehicle) but does not yet say how long. -Added criteria of usage data by vehicle class (mileage and hours of operation thresholds) that provide you “early” access to the Daily Usage Exemption and ZEV Purchase Exemption. -According to ACWA staff, CARB has affirmed that the addition of Traditional Specialty Utility Vehicles definition and provisions entails that public fleets can avoid the 13-year requirement that applies to the ZEV Purchase Exemption and Daily Usage Exemption pathways by submitting a vehicle purchase plan OR demonstrate that your existing fleet vehicle exceeds the mileage/usage thresholds identified. ACWA was supportive of this. -CARB clarified in an unclear/unfavorable way, how they will review exemption requests made during 2024- 2026 as agencies contend with the 50% new purchase requirement. Internal Combustion Engine (ICE) vehicles listed in the Purchase List won’t be a separate category from 50/50 purchases. They will likely evaluate requests for an exemption based on an agency’s current vehicle purchases for the year and if any of their ICE purchases could have been made to purchase ZEVs. 14 Vehicle Class Mileage or Hour Threshold Class 3 and 4 70,000 miles Class 5 and 6 115,000 miles Class 7 and 8 175,000 miles Trucks with power take off device 4,000 hours © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 7. Drought & Extreme Weather Response •On March 24, 2023, 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.) expired in December 2023. •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 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). 15 © 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 during the Governor’s Budget proposal in January. Later revenue numbers brought that estimate closer to $73 billion. Such a significant budget problem made any additional spending difficult. The 2021 and 2022 Budget Acts committed $8.7 billion over multiple years to support drought resilience and response programs to avoid immediate impacts from extreme drought while advancing projects and programs that will improve the state’s resilience to future droughts and floods. The adopted budget maintains $6.7 billion of these investments over multiple years in programs and projects to bolster the capacity of communities and ecosystems to endure droughts and floods. The Budget includes $1.4 billion in General Fund reductions and $539.1 million in fund shifts across various programs. The Budget also includes $189.1 million in new one-time investments to support flood protection, levee repair, and restoration of the Salton Sea. The Budget includes a $123.9 million one-time General Fund to support critical flood safety efforts. These include, but are not limited to: -$33 million General Fund to support the state cost share of continuing U.S. Army Corps of Engineers projects, Urban Flood Risk Reduction projects that address flood risk reduction, and the associated state operations costs to implement the projects. -$31.3 million General Fund to support continuing multi-benefit flood risk reduction projects in the Central Valley. -$29.6 million General Fund to address storm damage at state Plan of Flood Control facilities and state- owned Delta lands for critical repairs associated with the 2023 storms. To address the projected budget shortfall, the Budget includes General Fund solutions to achieve a balanced budget. These include: -Watershed Climate Resilience Programs—A reversion of $88.4 million, a $298 million General Fund reduction over the next two years, and a shift of $15 million to GGRF in 2025-26 for various watershed climate resilience programs. The budget maintains $108 million previously allocated to these programs. 16 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | -Drinking Water and Wastewater Infrastructure—A reversion of $97.6 million General Fund and a shift of $254.9 to GGRF in 2024-25 and 2025-26 for drinking water and wastewater infrastructure projects in disadvantaged communities. The budget maintains $1.6 billion previously allocated to these programs. -Water Recycling—A reversion of $185.9 million General Fund and a fund shift of $15 million GGRF in 2025- 26 for water recycling and groundwater cleanup. The budget maintains $336 million previously allocated to this program. -Water Storage—A reduction of $500 million General Fund in 2025-26 for water storage projects. -Per-and Polyfluoroalkyl Substances—A reversion of $100.7 million General Fund and reduction of $30 million in 2024-25 for Per-and Polyfluoroalkyl support. The budget maintains $24 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. A significant win for the water community in the budget included the restoration of nearly $500 million for the Agreements to Support Healthy Rivers and Landscapes, formerly the Voluntary Agreements. The funding was previously rescinded in the main budget bill, AB 107 (Gabriel, D-Encino). ACWA, the Northern California Water Association, the State Water Contractors and more than 40 other organizations successfully advocated to maintain nearly all funding for the Agreements. 17 © 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 1, 2023. DWR announced a final increase in the State Water Project (SWP) water supply allocation forecast for 2024 on April 23 to 40%. It is important to note that last year’s allocations eventually reached 100% for the first time since 2006. •Delta Conveyance Project —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. —On May 16, 2024, the Department of Water Resources (DWR) released a Benefit Cost Analysis of the Delta Conveyance Project (DCP). The analysis found that the DCP would create billions of dollars in benefits for communities across California, including reliable water supplies, climate change adaptation, earthquake preparedness, and improved water quality. —On June 20, 2024, the Sacramento County Superior Court stopped the California Department of Water Resources (DWR) from undertaking further geotechnical investigations implementing the Delta Conveyance Project (DCP) until DWR files a certification of consistency with the Delta Stewardship Council as required under the Sacramento-San Joaquin Delta Reform Act of 2009 (Delta Reform Act). —On August 1, 2024, the State Water Board released a Notice of Public Hearing Regarding the Delta Conveyance Project. The hearing on January 16, 2025, will address DWR’s water right change petitions to add new points of diversion and rediversion to the water rights associated with the State Water Project (SWP), whether to approve the petitions and if so, what terms and conditions to include in the amended permits. 18 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | —DWR posted a draft certification of consistency for the 2024-2026 Proposed Geotechnical Activities proposed action at least 10 days prior to formal submission. This draft certification only concerns certain geotechnical activities related to data collection (cone penetration tests, soil borings, and water quality sampling within soil borings). Planning and design of geotechnical data collection from the 2024-2026 Proposed Geotechnical Activities will be important to inform the planning and design of the Delta Conveyance Project, as well as future discretionary permitting and funding decisions by DWR and other agencies. —DWR did not originally plan to submit a certification of consistency for these 2024-2026 Proposed Geotechnical Activities but is doing so now based on the direction from the Sacramento Superior Court’s ruling on June 20, 2024. —On September 17, the State Water Board released a Notice of Pre-Hearing Conference and Procedural Ruling for October 17 regarding DWR’s pending Petitions for Change of Water Rights Permits associated with the State Water Project. The prehearing conference will address DWR’s withdrawal of the petitions for water rights extension of time and request to amend the change petitions. The hearing officer anticipates issuing an amended notice and procedural ruling after the pre-hearing conference. •Sites Reservoir Project —In early November, the Governor 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. —In mid-November, the Bureau of Reclamation and Sites Project Authority certified its final EIR and was approved to move forward. Conservation & environmental justice groups filed a suit on December 20th. —In June, A Yolo County judge quickly denied the suit to stop the project filed by the Friends of the River, Center for Biological Diversity, California Sportfishing Protection Alliance, California Water Impact Network, Save California Salmon, and Sierra Club. However, they appealed the decision in the Third Appellate District Court with Friends of the River v. Sites Project Authority —Sites Reservoir cleared another major hurdle after Governor Gavin Newsom had streamlined the project late last year, defeating a CEQA legal challenge on September 20, with an appellate court ruling building on a similar victory in the trial court. 19 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 10. Water Rights Modernization •Due to the extreme weather patterns and greater federal-level discussions on the Colorado River water rights, water rights topped the Legislature’s agenda last year. Several bills were introduced last year that collectively presented a fundamental change in California’s water rights system through a coordinated effort for a foundational change to how the water rights system is implemented and enforced. The remaining bills that were considered this session included: —AB 1337 (Wicks) gives the State Water Board authority to adopt sweeping curtailment regulations for water conservation purposes to prevent waste, unreasonable use, or unreasonable water diversion methods. Failed in legislative process. —AB 460 (Bauer-Kahan) would have authorized the State Water Board to issue an interim relief order on water rights. ACWA removed opposition due to amendments that removed problematic provisions related to regulatory and enforcement issues and instead raised the penalties for illegal diversions. Signed into law. •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 to the above-described legislation. 20 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Miscellaneous Brownstein engaged in opposition SB 937 (Wiener), which amends the Mitigation Fee Act, which governs the collection of development related fees that pay for the costs to install infrastructure necessary to build new homes and other developments in livable, equitable, and thriving communities. SB 937 restricts the timely funding of infrastructure and services necessary to build new homes. The bill for certain developments, defers development related fees until the certificate of occupancy or its equivalent, while limiting exceptions to this rule. The Governor signed the bill into law over the objection of various public agency associations. 21 Questions? Baltazar Cornejo bcornejo@bhfs.com (916) 594-9705 1 STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: November 6, 2024 SUBMITTED BY: Eileen Salmeron, Communications Assistant PROJECT: Various DIV. NO. All APPROVED BY: Tenille M. Otero, Communications Officer Jose Martinez, General Manager SUBJECT: Social Media, Mobile Application, and Website Analytics Update GENERAL MANAGER’S RECOMMENDATION: No recommendation. This is an informational item only. COMMITTEE ACTION: See Attachment A. PURPOSE: To provide the Board with an update on the Otay Water District’s social media, mobile application, and website analytics. ANALYSIS: The District’s communications staff uses online services, including social media, a mobile application, and the website to share the latest news with its customers and the public. Staff also manages and monitors the District’s social media presence and remains current with evolving online trends. Social media engagement fosters interaction between the public and public agencies, reaching demographics that do not frequently consume traditional media. Through social media, the District provides up-to-date information about water-related programs, projects, events, local and state news, and more. Additionally, social media helps the AGENDA ITEM 4 2 District promote transparency, connect with its audience, and respond to its needs. It is also an essential tool for communicating to the public during emergencies. Staff also manages the District’s website and the “Make Every Drop Count” mobile application. Attachment B includes the social media, mobile application, and website analytics for fiscal year 2024. Staff uses these tools and monitors them and other technologies to stay current with evolving technology and enhance customer satisfaction. Social Media The District’s social media presence, online audience, and stakeholder engagement have consistently increased. Staff maximizes the District’s online reach to promote water education, career opportunities, conservation programs, operational efficiencies, capital improvement projects, and other District programs. Staff increases its social media followers and engagement by creating captivating visual content, tailoring it to specific platforms, and collaborating with water agencies and organizations to launch water-related campaigns and programs. The District uses the following social media platforms: •YouTube – Joined November 2010 •X (formerly Twitter) – Joined February 2011 •Facebook – Joined November 2011 •Nextdoor – Joined July 2016 •LinkedIn – Joined August 2017 •Instagram – Joined November 2018 The social media analytics report in Attachment B presents the total number of impressions, engagements, and follower growth during fiscal year 2024. It also highlights the most popular posts published during that period. Facebook: From June 30, 2023, to June 30, 2024, its Facebook followers increased by 3.58%, from 727 to 753. The District is among the top five retail water agencies in the San Diego region with the most Facebook followers. X: From June 30, 2023, to June 30, 2024, its X followers increased by 2.41%, from 2,245 to 2,299. The District is the top retail water agency in the San Diego region with the most X followers. LinkedIn: From June 30, 2023, to June 30, 2024, its LinkedIn followers increased by 13.66%, from 1,003 to 1,140. The District is 3 the top retail water agency in the San Diego region with the most LinkedIn followers. Instagram: From June 30, 2023, to June 30, 2024, the District's Instagram followers increased by 13.84%, from 1,113 to 1,267. With the most Instagram followers, the District is the top retail water agency in the San Diego region. Nextdoor: Unlike other social media platforms, Nextdoor followers are based on the number of residents within the District’s service area who have joined the platform. They are automatically subscribed to receive the District’s posts. Since all its followers are customers, the platform allows staff to geotarget specific neighborhoods within its service area to share exclusive messaging regarding projects in those neighborhoods. From June 30, 2023, to June 30, 2024, the number of Nextdoor followers in the District’s service area increased by 14.23%, from 65,839 to 75,206. YouTube: From June 30, 2023, to June 30, 2024, the number of channel subscribers increased by 4.33%, from 231 to 241. The District is among the top three retail water agencies in the San Diego region with the most YouTube subscribers. Its YouTube video views increased by 4.16%, from 193,023 to 201,048. Communications staff will continue to assess its current use of social media platforms and their effectiveness. Mobile App The District launched its “Make Every Drop Count” mobile application in August 2015. In 2020, information technology (IT) and communications staff collaborated to enhance the app for iOS and Android users. The application’s features include utility bill payment, water waste reports, programs and resources, water-saving tips, water-use restrictions, contact information, and social media interaction. From June 30, 2023, to June 30, 2024, its iOS downloads increased by 13.25%, from 6,274 to 7,105, and Android downloads increased by 19.12%, from 795 to 947. Website Staff also manages and maintains the District’s external-facing website content for otaywater.gov, with the goal of better serving customers by enhancing its web presence and user-friendliness. The website's objective is to communicate the most current information and visually reflect the District’s commitment to using state-of-the-art technologies and forward-thinking practices. 4 Attachment B includes the District’s website analytics. During fiscal year 2024, its 20 most viewed website pages were the following: 1) Home Page2) Payment Options 3) For Customers4) Billing Information 5) Contact Us6) Employment7) Start or Terminate Service Page 8) Update Your Account9) Start or Terminate Service Form 10) About Otay11) Owner Acknowledgement Form12) Engineering Bids13) Water Services14) Water Agency Search 15) Rebates & Programs16) Board Agenda & Minutes17) Bid Opportunities 18) Outages19) Public Services 20) Water Quality Compared to fiscal year 2023, in fiscal year 2024, the District’s webpage views increased by 36.7% from 324,925 to 444,176. Its users increased by 36.18%, from 109,980 to 149,774. Attachment B shows the top 10 cities users were from and which URLs were considered the top 10 referral sources in fiscal year 2024. To better serve the District’s Spanish-speaking audience, the website features functionality allowing most English content to be displayed in Spanish. Staff and a consultant translate the English content into Spanish. As part of the District’s strategic plan, staff evaluates and implements improvements to the website. This includes enhancing its functionality and navigational structure, crafting content that aligns with key messaging, conveying information searched by visitors in English and Spanish, and publishing content more frequently to keep web pages attractive and engaging. To maintain an integrated communication, outreach, and marketing strategy, staff will continue to explore best practices for cross-promoting messaging through social media, its website, traditional media, and other outreach tools. It will continue to tailor and post relevant content using videos, photos, or graphics that will resonate with the District’s audience. Additionally, communications staff will 5 continue to work closely with IT staff to evaluate best practices for websites and monitor online trends to reach customers effectively. FISCAL IMPACT: Joe Beachem, Chief Financial Officer There is no fiscal impact associated with this action. STRATEGIC GOAL: Enhance and build public awareness of the District’s priorities, initiatives, programs, and services. LEGAL IMPACT: None. Attachments: A) Committee ActionB) Presentation: Social Media, Mobile Application, and WebsiteAnalytics 6 ATTACHMENT A SUBJECT/PROJECT: Social Media, Mobile Application, and Website Analytics Update COMMITTEE ACTION: The Conservation, Public Relations, Legal, and Legislative Committee (Committee) reviewed this item at an October 17, 2024 meeting. Attachment A will be updated with notes from the committee’s discussion. Social Media, Mobile Application, and Website Analytics CPRL&L Committee MeetingOctober 17, 2024 Otay Water District 1 Attachment B 1.6% 2.4%6.9% 23.3% 64.6% Social Media in Fiscal Year 2024 2 Facebook X LinkedIn Instagram Nextdoor YouTube 39,776IMPRESSIONS ENGAGEMENTS 9,952 FOLLOWERS 753 3.58% increase from 727in FY 23 44,683IMPRESSIONS ENGAGEMENTS 1,492 FOLLOWERS 2,299 2.41% increase from 2,245in FY23 24,542IMPRESSIONS ENGAGEMENTS 2,266 FOLLOWERS 1,140 13.66% increase from 1,003in FY 23 16,882IMPRESSIONS ENGAGEMENTS 1,092 FOLLOWERS 1,267 13.84% increase from 1,113in FY 23 106,109IMPRESSIONS ENGAGEMENTS 124 FOLLOWERS 75,206 10,724VIDEO VIEWS CUMULATIVE VIEWS201,048 SUBSCRIBERS24114.23% increase from 65,839in FY 23 4.33% increase from 231 in FY23 YouTube Traffic Sources Suggested Videos External Direct or Unknown Browse Features2.72% 3.52% 3.76% 4.25% 5.89%Otay Ranch Village 1 Eastlake Greens Rolling Hills Ranch Rancho San Diego Eastlake Nextdoor Top FollowersLinkedIn Top Followers 3.8%4.4% 4.8% 10.2% 15.2%Water Supply and Irrigation Systems 4.16% increase from 193,023in FY 23 Gov. Administration Civil Engineering Utilities Construction YouTube Search Agency Comparison in Followers SDCWA - San Diego County Water Authority OWD - Otay Water District SWA - Sweetwater Authority HWD - Helix Water District OMWD - Olivenhain Municipal Water District VWD - Vallecitos Water District PDMWD - Padre Dam Municipal Water District X Instagram LinkedIn Facebook YouTube SDCWA 6,818OWD 2,299SWA 2,115 SDCWA 3,779OWD 1,267 HWD 1,918OMWD 1,795VWD 1,499PDMWD 1,316 PDMWD 1,097SWA 554 HWD 320 SDCWA 10,000OWD 1,140SWA 1,000 HWD 857VWD 875PDMWD 906 SDCWA 11,000VWD 2,600SWA 1,400PDMWD 958HWD 822OWD 753OMWD 693 SDCWA 1,240 OWD 241 SWA 64 OMWD 197 VWD 327 PDMWD 82 3 Fiscal Year 2024 Highlights 4 18,061 IMPRESSIONS ENGAGEMENTS 180 Facebook 1,535 IMPRESSIONS ENGAGEMENTS 9 Published March 20, 2024 Published July 8, 2023 Fiscal Year 2024 Highlights Cont’d. 5 LinkedIn 2,784 IMPRESSIONS ENGAGEMENTS 222 Instagram 1,420 REACH VIEWS 50 ENGAGEMENT 667 Published Jan. 16, 2024 Published Dec. 3, 2023 Fiscal Year 2024 Highlights Cont’d. 6 12,824 IMPRESSIONS ENGAGEMENTS 12 Published Dec. 20, 2023 Reading YourAnalog Meter 101 Published Nov. 25, 2010 Nextdoor YouTube 3,278 VIEWSIN FY 23 VIEWS SINCE PUBLISHED40,999 Fix A Leak Week Published March 18, 2024 52VIEWS Fiscal Year 2024 Highlights Cont’d. 7 Boil Water Alert 8,031IMPRESSIONS ENGAGEMENTS203 (across all platforms) Mobile Application 8 iOS Downloads AndroidDownloads 7,105 (13.25% increase) AS OFJUNE 30, 2024 6,274 AS OF JUNE 30, 2023 947 (19.12% increase) AS OF JUNE 30, 2024 795 AS OF JUNE 30, 2023 Website Analytics – Most Viewed Pages 9 Total Page Views: 444,176 PAGE VIEWS PAGE VIEWS 1. Home Page 173,275 11. Owner Acknowledgment Form 4,604 2. Payment Options 56,218 12. Engineering Bids 4,124 3. For Customers 18,764 13. Water Services 3,828 4. Billing Information 17,861 14. Water Agency Search 3,611 5. Contact Us 13,718 15. Rebates & Programs 3,064 6. Employment 11,765 16. Board Agenda & Minutes 2,977 7. Start or Terminate Service (Page)9,106 17. Bid Opportunities 2,894 8. Update Your Account 7,054 18. Outages 2,573 9. Start or Terminate Service Form 5,873 19. Public Services 2,428 10. About Otay 5,335 20. Water Quality 2,243 Total Page Views and Users 10 324,925 109,980 444,176 149,774 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Views Users 2023 2024 36.7% increase 36.18% increase How Users Arrived 11 Direct 80,226Organic Search 64,572 Referral 4,662 Social Media 1,423 Other 284 Total Users: 149,774 Top 10 Cities 1,021 1,170 1,264 1,731 1,718 2,460 22,127 24,666 26,054 33,754(Not Set) Los Angeles Chula Vista San Diego El Cajon San Jose National City Spring Valley Rancho San Diego La Mesa Top 5 Computer Browsers 1,712 3,474 9,866 58,121 75,169Chrome Safari Edge Firefox Referral Sources 12 Total Referrals: 4,662 1. google – Search engine 2. bing – Search engine 3. billpay.onlinebiller.com – Otay’s online bill payment service website 4. yahoo – Search engine 5. m.facebook.com – Facebook 6. duckduckgo.com – Search engine 7. governmentjobs.com – Government job search website 8. newsbreakapp.com – news website 9. sandiegowaterworks.org – SDCWA water industry career website 10. newsbreakapp.com – News website Questions? 13 Otay Water District otaywater.gov (619) 670-2222 info@otaywater.gov