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HomeMy WebLinkAbout03-16-23 CPRL&L PacketOTAY WATER DISTRICT CONSERVATION, PUBLIC RELATIONS, LEGAL & LEGISLATIVE COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS BY TELECONFERENCE 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA THURSDAY March 16, 2023 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. AGENDA 1.ROLL CALL 2.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLICTO SPEAK TO THE COMMITTEE ON ANY SUBJECT MATTER WITHIN THECOMMITTEE’S JURISDICTION INCLUDING AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3.ADOPT THE 2023 OTAY WATER DISTRICT LEGISLATIVE PROGRAM POLI- CY GUIDELINES AND TOP 10 LEGISLATIVE PRIORITIES (OTERO) 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 10, 2023 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 10, 2023. /s/ Tita Ramos-Krogman, District Secretary 1 STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: April 5, 2023 SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All APPROVED BY: Jose Martinez, General Manager SUBJECT: 2023 Legislative Program Policy Guidelines and Top 10 Legislative Priorities GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the 2023 Otay Water District Legislative Program Policy Guidelines and the anticipated 2023 Top 10 Legislative 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 2023 Legislative Program Priorities, which staff and legislative advocates will proactively monitor and/or act on during the 2023 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 2023 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 2023 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 2023 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, 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-fits-all” approach and any unfunded mandates by legislation or regulation. 3 The proposed redlined 2023 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 Feb. 17, 2023. 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 2023. The anticipated top 10 priorities, include: 1. Drought Response and Extreme Weather 2. Water Rights Modernization 3. Advanced Clean Fleets Rulemaking 4. Water Quality 5. Affordability 6. Water Use and Efficiency 7. Proposed Bonds 8. State Budget/Infrastructure Funding 9. Recycled Water 10. State Water Project/Delta Conveyance 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 4 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. 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 ActionB) Proposed 2023 Otay Water District Legislative Program Policy Guidelines (Redlined)C) Proposed 2023 Otay Water District Legislative Program Policy Guidelines (Clean Copy)D) Presentation “Anticipated Top 10 Legislative for 2023” –Brownstein, Hyatt, Farber and Schreck E) Anticipated Top 10 Legislative Priorities for 2023 5 ATTACHMENT A SUBJECT/PROJECT: 2023 Legislative Program Policy Guidelines and Top 10 Legislative Priorities COMMITTEE ACTION: The Conservation, Public Relations, Legal and Legislative Committee is scheduled to review these items on March 16, 2023. The attachment will be updated with notes from the committee’s discussion. Otay Water District Legislative Program 20222023 1 | P a g e Effective Date: 04/0605/20222023 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2023 legislative policy guidelines reflect policy positions adopted by the Board of Directors through 2022. The 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 San Diego County Water Authority (Water Authority), 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 20222023 2 | P a g e Table of Contents The Otay Water Legislative Policy Program Guidelines for 2021 2023 includes the following categories: I.Binational Issues…………………………………………....……………... Page 3 II.Biological and Habitat Preservation…………………………………….. Page 3 III.Desalination……………………………………………………………….. Page 4 IV.Drought 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 10 E.Affordability……………………………………………………. Page 11 VII.Governance and Local Autonomy……………………………………….. Page 12 VIII.Imported Water Issues……………………………………………………. Page 13 A.Bay-Delta……………………………………………………………… Page 13 i.Co-equal Goals……………………………………………………. Page 13 ii.Bay-Delta Conveyance Project…………………………………… Page 14 B.Metropolitan Water District…………………………………………… Page 15 C.Colorado River………………………………………………………… Page 15 D.State Water Project…………………………………………………….. Page 16 IX.Optimize District Effectiveness……………………...…………....………. Page 16 X.Safety, Security, and Information Technology……………....................... Page 17 XI.Water Quality Issues………………………………………………………. Page 18 XII.Water Recycling and Potable Reuse……………………………………… Page 19 XIII.Water Service and Facilities……………………………………………… Page 20 XIV.Water-Use Efficiency……………………………………………………… Page 24 XV.Workforce Development………………………………………………….. Page 26 Otay Water District Legislative Program 20222023 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 such as water pipelines, desalination plants or water treatment facilities 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. Otay Water District Legislative Program 20222023 4 | P a g e 3.Impose endangered species or habitat conservation requirements that restrict the operation, maintenance, or repair of public water supply, conveyance, treatment, or storage facilities. 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 protects 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 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 non-emergency 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 for 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. Oppose initiatives that: Otay Water District Legislative Program 20222023 5 | P a g e 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. 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. 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 generation and acquisition of electrical 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 resource 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. Otay Water District Legislative Program 20222023 6 | P a g e 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. 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 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 the purchase of natural gas and 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 and or electricity to itself, any public agency or private entity engaged in retail sales of electricity and gas. 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. Otay Water District Legislative Program 20222023 7 | P a g e 13.Result in a lengthy, more complicated, or more costly interconnection of new energy 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 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 for 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 Water Authority’sDistrict or its memberlocal water agencies’ ability to impose or change rates, charges, fees, or assessments. 3.Weaken the protections afforded the District, the Water Authority or its other local water member agencies under California’s Proposition 1A (November 2, 2004). 4.Reallocate special districts reserves in an effort toto 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. Otay Water District Legislative Program 20222023 8 | P a g e 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. 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 percent 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 its other local watermember 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 its member local water agencies with grant funding for public facilities, including developing local water resources and rehabilitation and repair of aging infrastructure, such as 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. Otay Water District Legislative Program 20222023 9 | P a g e 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. 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 gasses. 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, 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. 21.22. Provide funding for infrastructure improvements at desalination facilities with eligibility for public and private partnerships. 22.23. 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. 23.24. Provide state and/or federal funding for the restoration of the Salton Sea. 24.25. 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. 25.26. 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. 26.27. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. Otay Water District Legislative Program 20222023 10 | P a g e 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. 27.29. 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). Oppose initiatives that: 1.Impose additional administrative requirements and/or restrict the District’s, Water Authority’s, or its memberother 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 limits 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. Oppose initiatives that: 1.Impair the District’s, the Water Authority’s, or its member 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. 6.Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges. Otay Water District Legislative Program 20222023 11 | P a g e 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.Ensures 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 percent of bond funding amounts. 8.Place as much emphasis and provides 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 including those in San Diego County. 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. E.Affordability Otay Water District Legislative Program 20222023 12 | P a g e 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.Relies 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.Supports the creation of a low-income water rate assistance program that targets providing financial assistance to low-income ratepayers using 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. 5.6.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. 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. 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. Otay Water District Legislative Program 20222023 13 | P a g e 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 Board. 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 restricts 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. 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. Otay Water District Legislative Program 20222023 14 | P a g e 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. 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. 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 Otay Water District Legislative Program 20222023 15 | P a g e 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. 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 similar to the voting allocation method of the County Water Authority Act. C.Colorado River Otay Water District Legislative Program 20222023 16 | P a g e 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: 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 Otay Water District Legislative Program 20222023 17 | P a g e 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. 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. Otay Water District Legislative Program 20222023 18 | P a g e 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 grant 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 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 principals 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. Otay Water District Legislative Program 20222023 19 | P a g e 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 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 is 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. 1.4.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. 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. Otay Water District Legislative Program 20222023 20 | P a g e 8.Allow the safe use of recycled water. 9.Facilitate development of technology aimed at improving water recycling. 10.Increasing 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. 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. Otay Water District Legislative Program 20222023 21 | P a g e 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 to 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 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. 2.Provide financial support to projects designed to mitigate the potential negative impacts of Global Climate Change on water supply reliability. 3.2.Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible. 4.3.Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 5.4.Provide reliable water supplies to meet California’s short and long-term needs. 6.5.Promote desalination pilot studies and projects. 7.6.Encourage feasibility studies of water resource initiatives. 8.7.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. 9.8.Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 10.9. Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 11.10. Streamline grant application procedures. 12.11. Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 13.12. Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 14.13. Streamline the permitting and approval process for desalination and other water- related facilities and implementing water transfers that will improve water management. 15.14. Establish reasonable statewide approaches to sewer reporting standards. Otay Water District Legislative Program 20222023 22 | P a g e 16.15. 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. 17.16. Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 18.17. Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 19.18. 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. 20.19. 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. 21.20. 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. 22.21. 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 invested in water conservation, development of new water sources, storage, or loss prevention. 23.22. Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers. 24.23. Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities. 25.24. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 26.25. Provide incentives that encourage contractors to recycle or reduce waste associated with construction of water facilities. 27.26. 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. 28.27. Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 29.28. Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameter pipelines. 30.29. Encourage water supplier 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. 31.30. 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. 32.31. Protect the District, other agencies and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. Otay Water District Legislative Program 20222023 23 | P a g e 33.32. Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 34.33. 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. 35.34. Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power. 36.35. Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 37.36. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, that 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. 38.37. 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. 39.38. 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. 40.39. Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability. 41.40. 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 increase 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 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. Otay Water District Legislative Program 20222023 24 | P a g e 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. 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, that 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 its 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.Through the CARB Advanced Clean Fleet regulation, wWould inhibit the District from fulfilling its critical role as a Public Safety Partner and making immediate and sustained Otay Water District Legislative Program 20222023 25 | P a g e 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.Through the CARB Advanced Clean Fleet regulation, wWould 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 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. 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. Otay Water District Legislative Program 20222023 26 | P a g e 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. 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.Ensure accurate and meaningful reporting of implementation of water-use efficiency and conservation measures. 33.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. Otay Water District Legislative Program 20222023 27 | P a g e 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. XV.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. 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. Otay Water District Legislative Program 20222023 28 | P a g e 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. 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 2023 1 | Page Effective Date: 04/05/2023 Legislative Program Policy Guidelines Purpose The Otay Water District’s 2023 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 2023 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 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 10 E.Affordability……………………………………………………. Page 11 VII.Governance and Local Autonomy……………………………………….. Page 12 VIII.Imported Water Issues……………………………………………………. Page 13 A. Bay-Delta……………………………………………………………… Page 13 i.Co-equal Goals……………………………………………………. Page 14 ii.Bay-Delta Conveyance Project…………………………………… Page 14 B.Metropolitan Water District…………………………………………… Page 15 C.Colorado River………………………………………………………… Page 15 D.State Water Project…………………………………………………….. Page 16 IX.Optimize District Effectiveness……………………...…………....………. Page 17 X.Safety, Security, and Information Technology……………....................... Page 17 XI.Water Quality Issues………………………………………………………. Page 18 XII.Water Recycling and Potable Reuse……………………………………… Page 19 XIII.Water Service and Facilities……………………………………………… Page 21 XIV.Water-Use Efficiency……………………………………………………… Page 25 XV.Workforce Development………………………………………………….. Page 27 Otay Water District Legislative Program 2023 3 | Page I.Binational Issues Support initiatives that: 1.Promote and provide funding for cross-border water supply and infrastructure developmentprojects 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 indevelopment 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 Diegoregion.4. Develop and enhance communications and understanding of the interdependence ofcommunities 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 PreservationSupport initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representativeecosystems, rather than individual species.2. Exempt operation, maintenance, and repair of water system facilities from endangered speciesand 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 makingthose 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 orfederal Endangered Species Acts when necessary to mitigate or prevent loss of or damage tolife, 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 2023 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 supplyfor the state, including San Diego County.3.Streamline permitting of desalination facilities. 4.Preserve and protects potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawaterdesalination 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 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 for 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. 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. 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. Otay Water District Legislative Program 2023 5 | Page 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 generation and acquisition of electrical 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 resource 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. 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 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 2023 6 | Page 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 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 Support initiatives that: 1. Require the federal government and State of California to reimburse special districts forall mandated costs or regulatory actions.2.Give special districts the discretion to cease performance of unfunded mandates. Otay Water District Legislative Program 2023 7 | Page 3. Provide for 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. 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. Otay Water District Legislative Program 2023 8 | Page 17.Impose a water user fee for statewide projects or programs, for which the projects orprograms are not clearly defined, the beneficiaries identified, and reasonable costsidentified. 18.Impose a water user fee to create a state fund that can be used to finance undefined futureprojects and programs.19.Allow the state to retain more than five percent 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 areimposed, 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 theirratepayers.22. Impose a fee on water users to repay the principal and interest on a statewide generalobligation 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 feemust 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 localgovernments 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 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. 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 gasses.11.Continue energy rate incentives for the utilization of electricity during low-peak periods. Otay Water District Legislative Program 2023 9 | Page 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, 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. 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). Oppose initiatives that: Otay Water District Legislative Program 2023 10 | Page 1.Impose additional administrative requirements and/or restrict the District’s, WaterAuthority’s, or other local water agencies’ ability to finance public facilities through theissuance of long-term debt. 2. Interfere with the responsibility of a region, operating under an Integrated Regional WaterManagement Plan, for setting priorities and generating projects to be paid from anyIRWM accounts and grants.3. Interfere with the control exercised by the San Diego funding subregion over the use andexpenditure of any water-user fee revenues that may be dedicated to the region. 4.Establish IRWM funding criteria that limits local discretion in project selection.5.Provide for after-the-fact reduction in quantity or quality of a public water supply due tonew restrictions on the operation or use of water supply facilities unless funding foralternate 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 supplygoals and that conform to cost-of-service requirements of the law. Oppose initiatives that: 1.Impair the District’s, the Water Authority’s, or local water agencies’ ability to providereliable service at reasonable costs to member agencies or to charge all member agenciesthe same or similar rate for each class of service consistent with cost-of-servicerequirements 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 retainreasonable 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.6.Usurp special district funds, reserves, or other state actions that force special districts toraise rates, fees, or charges. D.Water Bonds Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categoriesbeing 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 Otay Water District Legislative Program 2023 11 | Page 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 andrefine its plan and to develop institutional structures necessary to establish and implementthe plan.5.Give primary consideration to funding priorities established by local and regional entitiesthrough 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 percent of bond funding amounts.8.Place as much emphasis and provides at least as much funding for surface storage as forgroundwater storage. 9.Define the “San Diego sub-region” and “San Diego county watersheds” as “those portionsof the westward-flowing watershed of the South Coast hydrologic region situated withinthe 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-fundingprocesses, 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 ofwater 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 increasesin real water supply or water supply reliability. E.Affordability Support initiatives that: 1. Abides by the Human Right to Water (AB 685, 2012) as set forth in Section 106.3 of theCalifornia Water Code which reads that, “every human being has the right to safe,affordable, and accessible water adequate for human consumption, cooking, and sanitarypurposes.” The State Water Resources Control Board also has a resolution supporting this program. 2.Meets the required standards under Proposition 218 in the California Constitutionregarding proportionality of water rates and the cost-of-service provisions.3. Relies on data-driven analysis of water affordability, including considerations such as Otay Water District Legislative Program 2023 12 | Page 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. Supports the creation of a low-income water rate assistance program that targetsproviding financial assistance to low-income ratepayers using existing resources withineither the state General Fund or cap-and-trade dollars.5.Does not burden water districts with excessive or overly prescriptive state mandatesincluding 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 otherprograms, using existing resources from the federal government, with the state GeneralFund or cap-and-trade dollars or other state financial resources. Oppose initiatives that: 1. Is not targeted appropriately: Any low-income water rate assistance programmust be limited in scope to those individuals. By seeking to do too much, effectivenesscould be limited. Examples of this could include extending program resources to domesticwells or water-use efficiency programs. 2. Does not have a funding source: Any low-income water rate assistance programneeds to identify specific sources of sustainable funding and does not include awater tax or water surcharge.3. Does not reinvent the wheel: Any low-income water rate assistance program should bebuilt upon and use the resources of an existing benefit distribution organization or system, such as CalFresh, rather than requiring water agencies to add the operatingexpense 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.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 reviewscan take or cost.5.Reaffirm the existing “all-in” financial structure or protect the Water Authority votingstructure 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 forwater resources planning decisions. Oppose initiatives that: 1.Assume the state legislature is better able to make local decisions that affect specialdistrict governance. Otay Water District Legislative Program 2023 13 | Page 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’saffairs.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 beenexpressly authorized by the District’s Board.8.Create unfunded local government mandates.9.Create costly, unnecessary, or duplicative oversight roles for the state government ofspecial 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 isbased on population.12.Shift the liability to the public entity and relieve private entities of reasonable duediligence 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 costfor public works construction or their operation.14.Impair the ability of water districts to acquire property or property interests required foressential capital improvement projects.15.Increase the cost of property and right-of-way acquisition or restricts the use of right-of- ways.16.Work to silence the voices of special districts and other local government associations onstatewide ballot measures impacting local government policies and practices, includingactions 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.17.Prescribe mandatory conservation-based or other rate structures that override the authorityof 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 bestsuited 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, whichcan influence selection of resources and/or fails to consider or conflicts with existing localand regional planning policies and implementation priorities.21.Limit the District’s ability to establish local priorities for water resources planning decisions. VIII.Imported Water IssuesA. Bay-Delta Otay Water District Legislative Program 2023 14 | Page i.Co-Equal Goals Support initiatives that: 1.Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of theproposed Delta improvements to the Legislature and the public.2.Provides conveyance and storage facilities that are cost-effective for the San Diego region’sratepayers, 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 environmentalrestoration embodied in the 2009 Delta bill package.4.Improve the ability of water-users to divert water from the Delta during wet periods, whenimpacts 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 bothprojects 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 andmanagement, preserves the ability for non-State Water Project contractors to access thefacility 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.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 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, 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, Otay Water District Legislative Program 2023 15 | Page 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, orsupply charges, as similar facilities historically have been defined in the MetropolitanWater 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 theexemption 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 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 Water District Act.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, and in a manner 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 Program2.Provide funding for Colorado River salinity control projects and other water qualitymanagement 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. Otay Water District Legislative Program 2023 16 | Page 4.Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties tothe 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 throughthe development of storage, including Lake Mead and additional storage opportunitiesregionally, 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 watersupplies and integration of compatible partnership projects along the proposed conveyanceroutes 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 inNovember 2017.9.Preserve the California Colorado River Board10.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 provideenhanced flexibility with annual transfer volumes, support drought contingency planning, andalign with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that: 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's competing 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 urban agencies to transfer and/or bank CVP water for use both within and outside the CVP servicearea. Otay Water District Legislative Program 2023 17 | Page 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 specialdistricts.2.Create unrealistic ergonomic protocol.3.Micromanage special district operations.4.Balance the state budget by allowing regulatory agencies to increase permitting fees. 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 orresources. 3. Provide funding for communication enhancements, wireless communications, GIS, or othertechnological 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 actsof destruction, contamination, or degradation.7. Provide funds to support training or joint training exercises to include contingency funding foremergencies and emergency preparedness.8. Equitably allocate security funding based on need, threats, and/or population. 9.Encourage or promote compatible communication systems. Otay Water District Legislative Program 2023 18 | Page 10. Encourage and promote funding of Department of Homeland Security Risk Mitigationprograms.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 andmitigate loss or impairment of life, health, property, or essential public services due to naturaldisasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminalactivities.12. Provide state grant 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 criminalthreats 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 Departmentof Homeland Security’s recommendation to avoid reference to water system details in plansavailable to the public. XI.Water Quality Issues 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 principals in adopting drinking water standards for drinking waterconcerns.3.Revise NPDES standards and procedures to facilitate inland discharge and use of recycledwater. 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 ofemerging concern.9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination drinking water sources. 10.Implement and fund the San Diego Regional Water Quality Control Board’s triennial reviewof water quality standards. Otay Water District Legislative Program 2023 19 | Page 11. Provide funding and support for Colorado River salinity control projects and other waterquality 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 thenine regional water quality control boards. Oppose initiatives that: 1.Eliminate the State Water Resources Control Board and/or the nine regional water qualitycontrol boards without ensuring the functions and expertise of the boards is maintained in anyreorganized 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 pollutioncontamination by third parties.4.Make water suppliers financially and legally responsible for testing or correction of any waterquality-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 recycledwater projects to reduce impediments to the increased use of recycled water.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 waterrunoff 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 funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program includingWater Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination andWater 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. Otay Water District Legislative Program 2023 20 | Page 14. Establish federal tax incentives to support U.S. companies in the development of new watertechnologies that can lower productions costs, address by products such as concentrates, andenhance 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 toencourage reuse as an alternative source of water supply.16.Provide incentives for local agencies to work cooperatively, share costs or resources topromote or expand the use of recycled water. 17.Further refine emergency regulations to reward local suppliers that have invested in usingrecycled water for landscape irrigation to maintain an incentive to continue expanding areasserved by recycled water.18. Encourage the use of recycled water in commercial, industrial, institutional, and residentialsettings. 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 tooffset 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), andbrackish 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, particularlyincluding the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. 26. Encourage dual plumbing in new development where non-potable recycled water is likely toavailable 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 tothe sewer collection system that may adversely affect water recycling and reuse.4.Establish unreasonable regulatory requirements or fees to 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 TDSrecycled water has on the usage rates to reduce salt loading in areas of use. Otay Water District Legislative Program 2023 21 | Page XIII.Water Services and Facilities Support initiatives that: 1.Provide funding to implement actions identified in the California Water Action Plan to lay asolid fiscal foundation for implementing near-term actions, including funding for waterefficiency 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.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 including water 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 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 watertransfer 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-relatedfacilities and implementing 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 thestate’s Drinking Water Program.16.Target efforts to fix specific issues with water supplies within the state’s Drinking WaterProgram. 17. Establish federal tax incentives to support U.S. companies in the development of new desalination 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 demonstrationprogram 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, Otay Water District Legislative Program 2023 22 | Page 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 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 soas not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or lossprevention.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 supplier to develop and execute asset management programs that includevisual 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 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, that is purchased for exclusive use by a city, county, special district, or other entityof local government during a de-energization or public safety power shutoff event. Otay Water District Legislative Program 2023 23 | Page 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 stateor 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. Oppose initiatives that: 1.Restrict local control and discretions over water facilities, asset management, and facilityoperations.2.Make urban water supplies less reliable or substantially increase 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 orbenefit; 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 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 programthat 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 tothe 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. Otay Water District Legislative Program 2023 24 | Page 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.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, that fail to consider full life-cyclecosting.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 its 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 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 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 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 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. Otay Water District Legislative Program 2023 25 | Page XIV. Water-Use 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.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-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 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, 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 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 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 water efficient devices. 22.Establish standards for the utilization of high-efficiency commercial coin-operated andresidential clothes washers.23.Provides for federal tax-exempt status for water-use efficiency rebates, consistent withincome 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 waterdemand management measure requirements in the Urban Water Management Planning Act. Otay Water District Legislative Program 2023 26 | Page 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-potablerecycled water. 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, basedon the combined efficient indoor use, outdoor use, and leak loss, as established under thecriteria provided for in statute. 31.Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as setforth in SBX7-7, enacted in November 2009, and preserves water agency discretion andoptions for achieving this objective.32.Ensure accurate and meaningful reporting of implementation of water-use efficiency andconservation measures. 33.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, orsemi-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 ManagementPlanning 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 forthe 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 economicactivity or the viability of the CII sector.9.Mandate that water agencies include an embedded energy calculation for their water supplysources in the Urban Water Management Plan or any other water resource planning or master planning document. Otay Water District Legislative Program 2023 27 | Page XV.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. 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. 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-industryworkforce. Otay Water District Anticipated Top 10 Legislative Priorities for 2023 Presented by: Ruy Laredo Policy Advisor Baltazar Cornejo Policy Advisor March 16, 2023 Attachment D Top 10 Legislative Priorities 2023 2 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | Legislative Update •Legislature reconvened on January 4, 2022. —Over 30 new members in both the Assembly and Senate due to term limits expiring and other resignations. •In 2023, as of March 7, 2774 bills, resolutions and constitutional amendments have been introduced. —This is the third highest amount of bills introduced in the last 17 years. •Key Legislative Deadlines: —January 10 –Governor’s Budget Proposal —February 17 –Bill Introduction deadline —May 15 –May Revision of the January Budget (“May Revise”) —June 2 –Last day for each house pass bills introduced in that house. (“House of Origin Deadline”). —June 15 –Budget must be passed by midnight —September 14 –Deadline to pass bills out of Legislature. (“Final Recess upon Adjournment of Session”) —October 14 –Last day for Governor to sign or veto bills passed on or before September 1 •No lobby days for foreseeable future. 3 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 1. Drought Response and Extreme Weather •California experienced significant rainfall and flooding during the series of atmospheric rivers that hit the state in late December thru mid-January. —Winter storms temporarily alleviate water shortages, but these large precipitation events do not signal the end of the drought. —2020-2022 was the driest three-year period on record, and despite recent storms, we remain in a statewide drought emergency. •State Water Board regulations prohibiting wasteful water use practices statewide remain in effect through December 2023 stemming from Governor Newsom’s 2021 Emergency Drought Proclamation. —Effective since January 2022 and were readopted by the State Water Board in December 2022 —Will remain in effect for 1 year from effective state, unless ended, modified or readopted •Governor Newsom announced California’s Water Supply Strategy in August 2022. —Water Supply Strategy created 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. 4 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 2. 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. —Several bills have been introduced this 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. •ACWA may sponsor its own water rights legislation as an alternative to avoid more drastic legislation. —This proposal includes a comprehensive set of ideas that would substantively improve water rights administration and enforcement during critical dry years and improve permitting for groundwater recharge, all while respecting local decision making. 5 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 3.Advanced Clean Fleets Rulemaking •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 2021 and 2022 Budget Acts committed $10 billion over 5 years in investments to the state’s ZEV agenda—from cleaning up drayage trucks and school buses to accelerating equitable electrification of passenger vehicles—coupled with infrastructure and incentives for in-state manufacturing. •CARB is tasked with transitioning fleets to zero-emission vehicles (ZEVs) to meet the state’s goals. •The Advanced Clean Fleets proposed rulemaking for Public Fleets would require. —100 percent zero-emission drayage trucks by 2035. —100 percent zero-emission off-road vehicles and equipment by 2035, where feasible. —100 percent 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 will adopt rule on April 27th workshop after 15 days of public comment. •AB 1594 (E. Garcia) –Was introduced as back up legislation on clean fleets regulations if water agencies don’t get what they’re seeking in regulations •The Governor’s Budget Proposal maintains $8.9 billion (89%) of ZEV investments. —The Budget includes $2.5 billion of General Fund reductions across various ZEV programs, which are partially offset by approximately $1.4 billion in fund shifts to Cap and Trade funds. 6 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 4. Water Quality •MCL Compliance Periods –State Water Board/ACWA determined that legislation was not needed to establish compliance periods for MCLs; State Water Board to use its existing authority. —The SWRCB will consider a resolution for the adoption of drinking water regulations development this calendar year on March 7-8 workshop. •The Division of Drinking Water has established a proposed prioritized list for regulatory development projects for 2023. •DDW staff use multiple factors in prioritizing drinking water regulations, including the protection of public health, establishment of a new or revised federal regulation or rule, existence of statutory mandates, as well as the existence of other priorities and staffing resources available for the development and implementation of regulations. •This includes MCLs for: •Chromium (hexavalent), Arsenic, Perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS), N-nitrosodimethylamine (NDMA), Disinfection Byproducts, Styrene, Cadmium, and Mercury. •Lead Testing in Schools –Assemblymember Chris Holden has introduced AB 249, which would lower the standards for lead levels at TK-12 school buildings built after 2010. —Lowers standard from 15 parts per billion (ppb) to 5ppb. —Community water systems would have to test water faucets once over the next five years. —There are current changes pending to the federal Lead and Copper Rule through October 16, 2024, which could result in conflicting or duplicative requirements if this legislation is passed. 7 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 5. Affordability •During the 2021-2022 legislative session, Senator Bill Dodd (D-Napa) introduced SB 222: Water Rate Assistance Program. —This legislation sought to establish the Water Rate Assistance Fund in the State Treasury to help provide water affordability assistance, for both drinking water and wastewater services, to low- income ratepayers and ratepayers experiencing economic hardship in California. —Otay adopted an “Oppose Unless Amended” position and joined the Association of California Water Agencies’ (ACWA) coalition. —The bill was vetoed by the Governor on September 28th due to lack of an ongoing funding source. —Following the veto, Senator Dodd, ACWA, and affordable water advocates said they would continue to work closely this year with the Governor’s office and the state water board to find funding for a long-term water assistance program. •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 through August 2023, the end of the federal grant period. —LIHWAP benefit payments began to be issued to households in June 2022 and all funds must be expended by August 2023. 8 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 6. Water Use and Efficiency •November 2021 –DWR and the State Water Board submitted its final report to the Legislature recommending an indoor water use efficiency standard of 55 GPCD by 2023, declining to 47 GCPD by 2025, and 42 GCPD by 2030 and beyond. •January 2022 –AB 1434 (Friedman) was amended to mirror the recommendations in this report. However, the bill failed to move forward. •In 2022, then-Senator Robert Hertzberg introduced SB 1157 (Hertzberg), which also mirrors the recommendations in the report and the language that was in AB 1434 (Friedman). —Otay initially joined ACWA’s “Oppose Unless Amended” coalition on SB 1157 but moved its position to neutral following language adding a quantitative study, adding flexibility to the timeline to achieve the standards, and adopting additional variances. —SB 1157 was signed by the Governor on September 28. •Assemblymember Friedman has now introduced AB 1572 to prohibit the use of potable water for irrigation of nonfunctional turf on specified properties. —Nonfunctional turf” would be defined as “any turf that is not located in areas designated by a property owner or a government agency for recreational use or public assembly. —Urban water retail suppliers would be required to adopt these same nonfunctional turf bans within their terms and conditions of water service by January 1, 2026. —A reduction in irrigation due to removal of turf may not have a large impact on urban water suppliers’ ability to meet their overall objective, but the proposed ban on the irrigation of nonfunctional turf on multifamily properties envisioned under AB 1572 may result in some water savings toward that overall objective for urban water suppliers. 9 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 7.Proposed Bonds (Recycled Water, Climate Resiliency, Flood Protection) 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. 10 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 8. State Budget/Infrastructure Funding •The Governor’s 2023-24 proposed budget unveiled on January 10th included a projected budget deficit of $22.5 billion, which has since worsened by $7 billion according toa February report from the Legislative Analyst Office. To address this budget deficit, the Governor has proposed a combination of new funding, reductions and delays of previous budget commitments. •New Funding: —Water Urban Flood Risk Reduction —$135.5 million over two years to support local agencies working to reduce urban flood risk. —Delta Levee —$40.6 million for ongoing Delta projects that reduce risk of levee failure and flooding, provide habitat benefits, and reduce the risk of saltwater intrusion contaminating water supplies. —Central Valley Flood Protection —$25 million to support projects that will reduce the risk of flooding for Central Valley communities while contributing to ecosystem restoration and agricultural sustainability. —2023 Drought Contingency —$125 million one-time as a drought contingency set-aside to be allocated as part of the spring budget process, when additional water data will be available to inform future drought needs. —Modernizing Water Rights —$31.5 million one-time in 2023-’24 to continue development of the Updating Water Rights Data for California Project to enhance California’s water management capabilities. —Urban Water Use Objectives —$7 million over four years to implement legislation signed into law last year which established a new framework for water conservation and drought planning. 11 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | •Budget Reductions of Concern for ACWA: —Watershed Resilience Programs —A reduction of $24 million in 2023-’24 and a delay of an additional $270 million to 2024-’25. —PFAS Cleanup —A reduction from $100 million to $30 million for PFAS cleanup and a delay of that funding from 2023-’24 to 2024-’25. —Water Recycling/Groundwater Cleanup —A reduction from $210 million to $170 million in 2023-’24 to support water recycling and groundwater clean-up. 12 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 9. Recycled Water •AB 1152 (Patterson): California Environmental Quality Act (CEQA): exemption: recycled water. —Provides a CEQA exemption for the construction or expansion of recycled water pipelines built to mitigate drought conditions if the project meets certain criteria. —Lead agencies would be required to determine if a project qualified for the exemption under a state- mandated local program. —Also exempts development and approval of building standards by state agencies for recycled water systems. —Bill currently awaiting a hearing in Assembly Natural Resources. 13 © 2021 Brownstein Hyatt Farber Schreck, LLP www.bhfs.com | 10. State Water Project/Delta Conveyance •State Water Project —State water officials in late January 2023 had announced a major boost, from 5% of requested water supply to 30%. February saw another update, with the SWP allocation increased to 35%, reflecting nine atmospheric river storms from late December through late January. —State Water Project allotments are set each year on Dec. 1, then updated monthly through May or June. •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, DWR states that it will continue to advance environmental planning and permitting activities, as well as public outreach and engagement, in 2023, including but not limited to CEQA, NEPA, CESA Incidental Take Permits, ESA Biological Opinions, etc. —DWR has released an Adapting to Climate Change fact sheet after the January winter storms, detailing that if the DCP had been operational, it would have moved 202,000-acre feet of water into the San Luis Reservoir, enough supply for 2.1 million people for one year or 710,000 households. This is about 35% of the total volume exported by the SWP in water year 2022. 14 Questions? CONTACT Ruy Laredo rlaredo@bhfs.com (916) 594-9709 Baltazar Cornejo bcornejo@bhfs.com (916) 594-9705 Anticipated Top 10 Legislative Priorities for 2023 1.Drought Response and Extreme Weather – 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. Even though the state has experienced significant rainfall andflooding as a result of the atmospheric rivers that hit California in late December and January, the Governor’s executive order remains in effect. While the winter stormstemporarily alleviated water shortages, the Department of Water Resources noted that theselarge precipitation events do not signal the end of the drought, as 2020-2022 was the driestthree-year period on record, and more precipitation will be needed to pull the state out of thedrought. Following the Governor’s executive order, the State Water Board implemented regulations inJanuary 2022 that prohibited wasteful water use practices statewide. These regulations werereadopted in December 2022 and will remain in effect through December 2023 unless theyare ended, modified, or readopted. Drought response remains a top concern for the Newsom administration. In August 2022, theGovernor announced a new Water Supply Strategy for California to help make up for thewater supplies the state might lose over the next two decades. Due to climate change, hotterand drier weather conditions could potentially reduce California’s water supply by up to 10% by 2040. The water supply strategy prioritizes actions to capture, recycle, de-salt, andconserve more water. More information on the Governor’s strategy will be released at a laterdate. Drought response and extreme weather will remain a priority in 2023, and we will continue to monitor the progress of the state’s response and impacts on Otay Water District. 2.Water Rights Modernization – Due to the ongoing drought and the federal negotiations onthe Colorado River, water rights have risen to the top of the Legislature’s agenda this year. Several bills have been introduced this year that collectively present a fundamental change in California’s water rights system. These bills would hand the State Water Board nearlyunfettered authority to adopt sweeping curtailment regulations, issue interim relief orderswithout due process, and drag diverters before the State Water Board to defend their rights.Other spot bills related to water rights have also been introduced with no indication of what they will do. ACWA has spent months preparing for a water rights debate and may sponsor its own waterrights legislation as an alternative to avoid more drastic legislation. This proposal includes acomprehensive set of ideas that would substantively improve water rights administration and enforcement during critical dry years and improve permitting for groundwater recharge, all while respecting local decision-making. Attachment E 2 If Otay desires, BHFS will work with ACWA to ensure the Legislature takes a measured approach to water rights modernization. ACWA is already working with legislators who have signaled they will be taking on this issue. 3. Advanced Clean Fleets Rulemaking – In accordance with Executive Order N-79-20, which recognizes the need for the state to transition to carbon neutrality by setting a course to end 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 public fleets to zero-emission vehicles to meet the state’s goals set forth by the order, as outlined in the Advanced Clean Fleets Proposed Rulemaking. Otay Water District is seeking an exemption for emergency response vehicles under the Advanced Clean Fleets (ACF) Proposed Rulemaking for public fleets in order to ensure that the District’s first responders in the field responding to water and wastewater utility emergencies in specialized vehicles have the resources available to them to ensure that response is not delayed. Two letters were submitted by Otay to CARB during the public comment period last year. CARB will likely release its final draft rule this month with a 15-day public comment period. Following this period, CARB plans to adopt its final ACF rule during its April 27th workshop. In the event that water agencies do not get what they are seeking with these final regulations, there is legislation on standby to modify the ACF rules. Assemblymember Eduardo Garcia introduced AB 1594 as a spot bill to adjust the ACF rules. We will continue to monitor this issue as the ACF ruling is finalized. 4. Water Quality – For the past several years, ACWA has been working diligently on sponsored legislation to establish compliance periods for new Maximum Contaminant Levels (MCL) set by the State Water Board, with the goal of providing water providers a reasonable amount of time to comply with drinking water standards. It has been determined by State Water Board staff that legislation is not needed and that the State Water Board has the authority in statute to establish compliance periods for new MCLs. The State Water Board will consider a resolution for the adoption of drinking water regulations development during their March 7-8 workshop. The Division of Drinking Water (DDW) has established a proposed prioritized list for regulatory development projects for 2023. DDW staff use multiple factors in prioritizing drinking water regulations, including the protection of public health, establishment of a new or revised federal regulation or rule, existence of statutory mandates, as well as the existence of other priorities and staffing resources available for the development and implementation of regulations. This includes MCLs for the following: chromium (hexavalent), arsenic, perfluoro-octanoic acid (PFOA) and perfluoro-octane sulfonic acid (PFOS), n-nitrosodimethylamine (NDMA), disinfection byproducts, styrene, cadmium, and mercury. Lastly, legislation has been introduced by Assemblymember Chris Holden to lower lead-level standards in TK-12 school buildings. AB 249 would lower the current lead standard 3 from 15 parts per billion (ppb) to 5 ppb. Community water systems would be required to test their water faucets over the next five years to ensure compliance. ACWA is ready to oppose this bill, as there are current changes pending to the federal Lead and Copper Rule through October 16, 2024, which could result in conflicting or duplicative requirements if this legislation is passed. Otay has also indicated they will likely oppose this legislation. We will continue to monitor AB 249 as it works its way through the legislative process and other water quality issues as they arise in 2023. 5. Affordability – Water affordability became one of ACWA and Otay’s top issues during the 2021-2022 legislative session. In 2021, Senator Bill Dodd (D-Napa) introduced SB 222: Water Rate Assistance Program. This legislation sought to establish the Water Rate Assistance Fund in the State Treasury to help provide water affordability assistance, for both drinking water and wastewater services, to low-income ratepayers and ratepayers experiencing economic hardship in California. While the bill failed to advance in 2021, it was revived the next year due to affordability concerns stemming from the COVID-19 pandemic. Both ACWA and Otay adopted an “Oppose Unless Amended” position on the legislation due to the program's administration being pushed to water agencies. Additionally, the program lacked an ongoing funding source. While ACWA and Senator Dodd’s office engaged in good faith negotiations, an agreement could not be reached, and the bill was passed by the Legislature without a funding source. The bill was eventually vetoed by the Governor because of funding concerns. Following the veto, Senator Dodd, ACWA, and affordable water advocates said they would continue to work closely this year with the Governor’s office and the state water board to find funding for a long-term water assistance program. In the event a new bill is introduced, we will notify Otay immediately. Lastly, 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. The Department of Community Services and Development (CSD) was designated as the administering agency for LIHWAP in California. In response to low LIHWAP participation and grant expenditure, CSD expanded eligibility to include current bills to maximize grant expenditures through August 2023, the end of the federal grant period. Funds for this program must be used as part of an overall emergency effort to prevent, prepare for, and respond to COVID-19, with the public health focus of ensuring that low- income households have access to safe and clean drinking water and wastewater services or to reduce arrearages and rates charged to households. The benefits of the program are paid directly to the owners and operators of public water systems. All funds in this program must be expended by August 2023. 6. Water Use and Efficiency – As you may recall, in November 2021, as required by AB 1668 and SB 606, DWR and the State Water Board submitted a report to the Legislature recommending that urban water suppliers achieve an indoor water use efficiency standard of 4 55 gallons per capita per day by 2023, declining to 47 gallons per day by 2025, and 42 gallons by 2030 and beyond. The Legislature introduced two bills in 2022 to mirror the recommendations in the report, AB 1434 (Friedman) and SB 1157 (Hertzberg). AB 1434 failed to move forward, while SB 1157 was signed by the Governor last September. All urban retail water suppliers are required, beginning January 1, 2024, and January 1 of each year thereafter, to calculate their own water use objective and submit a report to DWR that reports the urban water use objective and actual water use. While Otay initially joined ACWA’s “Oppose Unless Amended” coalition on SB 1157, it moved its position to “Neutral” following amendments adding a quantitative study, adding flexibility 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. Assemblymember Friedman has now introduced AB 1572 to prohibit the use of potable water for irrigation of nonfunctional turf on specified properties, which could potentially affect water use objectives. Urban water retail suppliers would be required to adopt these same nonfunctional turf bans within their terms and conditions of water service by January 1, 2026. A reduction in irrigation due to the removal of turf may not have a large impact on urban water suppliers’ ability to meet their overall objective, but the proposed ban on the irrigation of nonfunctional turf on multifamily properties envisioned under AB 1572 may result in some water savings toward that overall objective for urban water suppliers. We will continue to monitor AB 1572 and related legislation, as well as ongoing discussions related to the adoption of the new standards. 7. Proposed Bonds – With significant budget cuts expected this year, several bills have been introduced in the Legislature to enact bonds for recycled water, climate resiliency, and flood protection funding. • 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. 5 • 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. If approved by the Legislature, these bonds would be put on the ballot to be voted on in the next election. We will continue to monitor the progress and feasibility of these bonds as they go through the legislative process. 8. State Budget/Infrastructure Funding – The Governor’s 2023-24 proposed budget unveiled on January 10th included a projected budget deficit of $22.5 billion, which has since worsened by $7 billion, according to a February report from the Legislative Analyst Office. To address this budget deficit, the Governor has proposed a combination of new funding, reductions, and delays of previous budget commitments. Specifically, this budget proposes allocations in the following areas: • Water Urban Flood Risk Reduction — $135.5 million over two years to support local agencies working to reduce urban flood risk. • Delta Levee — $40.6 million for ongoing Delta projects that reduce the risk of levee failure and flooding, provide habitat benefits, and reduce the risk of saltwater intrusion contaminating water supplies. • Central Valley Flood Protection — $25 million to support projects that will reduce the risk of flooding for Central Valley communities while contributing to ecosystem restoration and agricultural sustainability. • 2023 Drought Contingency — $125 million one-time as a drought contingency set aside to be allocated as part of the spring budget process, when additional water data will be available to inform future drought needs. • Modernizing Water Rights — $31.5 million one-time in 2023-’24 to continue development of the Updating Water Rights Data for California Project to enhance California’s water management capabilities. • Urban Water Use Objectives — $7 million over four years to implement legislation signed into law last year which established a new framework for water conservation and drought planning. With a tough budget year ahead, significant investments are not expected, and there are a few budget reductions of concern, including: • Watershed Resilience Programs — A reduction of $24 million in 2023-24 and a delay of an additional $270 million to 2024-25. 6 • PFAS Clean-up — A reduction from $100 million to $30 million for PFAS clean-up and a delay of that funding from 2023-24 to 2024-25. • Water Recycling/Groundwater Clean-up — A reduction from $210 million to $170 million in 2023-24 to support water recycling and groundwater clean-up We will continue to monitor the progress of budget discussions and advocacy efforts as we enter the budget subcommittee process and approach the May Revision. Additionally, we will monitor the progress and feasibility of the proposed bond measure, AB 2387 (E. Garcia). 9. Recycled Water – The Otay Water District is committed to increasing the use of recycled water in its service area and partnering with other water agencies to minimize the overall demand for potable water. Currently, there is a bill BHFS is tracking on recycled water that is currently making it way through the legislative process. AB 1152 (Patterson) addresses the California Environmental Quality Act (CEQA) in regards to recycled water projects. The legislation would exempt a project to construct or expand a recycled water pipeline for the purpose of mitigating drought conditions if the project meets specific criteria. AB 1152 would also exempt the development and approval of building standards by state agencies for recycled water systems. It is important to note that CEQA exemptions are difficult to pass in the legislature, but BHFS will watch this bill for future developments. We will continue to advocate for more funding and monitor any issues related to recycled water. 10. State Water Project (SWP)/Delta Conveyance – As you know, 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. Following the series of heavy atmospheric rivers that hit the state in December and January, DWR announced two increases in SWP allocation: a major boost in January from 5% of requested water supply to 30% and again in February from 30% to 35%. We will continue to monitor issues pertaining to the SWP in 2023 as conditions evolve. 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, DWR states that it will continue to advance environmental planning and permitting activities, as well as public outreach and engagement, in 2023, including but not limited to CEQA, NEPA, CESA Incidental Take Permits, ESA Biological Opinions, etc. DWR has released an Adapting to Climate Change fact sheet after the January winter storms, detailing that if the DCP had been operational, it would have moved 202,000-acre feet of water into the San Luis Reservoir, enough supply for 2.1 million people for one year or 710,000 households. This is about 35% of the total volume exported by the SWP in water year 2022. 7 We will continue to monitor the progress of the Delta Conveyance project for related updates of interest.