Section 966 - [Operative 1/1/2025] Urban Water Use Objectives(a) No later than January 1, 2025, and by January 1 every year thereafter, each urban retail water supplier shall calculate its urban water use objective and, beginning January 1, 2027, annually demonstrate compliance with its objective.(b) The calculation shall be based on the supplier's water use conditions for the previous state fiscal year.(c) The objective shall be composed of the sum of the following budgets: (1) A budget for efficient indoor residential water use (Rindoor) as described in section 967.(2) A budget for efficient outdoor residential water use (Routdoor) as described in section 968.(3) A budget for efficient water use on commercial, industrial, and institutional landscapes with dedicated irrigation meters or equivalent technology (CIIDIM) as described in section 969.(4) A budget for efficient real water losses (L) as described in section 970.(5) Budgets for any approved variances (V) and temporary provisions (Pr) as described in sections 967, 968, and 969.(6) A bonus incentive for potable reuse (BPR) as described in section 971.(d) The formula for calculating a supplier's urban water use objective (WUO), in gallons, is expressed mathematically as follows: Click here to view image
(e) If any system owned and operated by a supplier is lacking the data needed to calculate the budgets described in subdivision (c)(1) through (4), that system shall be excluded from the overall objective calculation until the requisite data are obtained. The requisite data must be obtained no later than July 1, 2028, for use in the 2030 reporting year.(f) For systems that do not meet the criteria to be considered an urban retail water supplier until after the effective date of this section, and for a system that hydraulically consolidates with a supplier, this section applies beginning five (5) years after the system meets the criteria to be considered a supplier or consolidates with a supplier.(g) Compliance with this section shall be assessed on the overall objective, not the individual budgets identified in subdivision (c), except for water loss, which shall also be assessed individually pursuant to section 981.(h) If a supplier's calculated objective-based total use is larger than its target-based total use, the supplier's urban water use objective shall be its Water Code section 10608.20 individual target less excluded demands as described in paragraph (3). If the supplier's section 10608.20 target is expressed in gallons per capita daily, the supplier shall multiply the target by its residential service area population for the reporting year and the number of days in the year. (1) For purposes of this subdivision, objective-based total water use, in gallons, is the sum of excluded demands and the urban water use objective calculated pursuant to subdivision (c).(2) For purposes of this subdivision, target-based total water use, in gallons, is a supplier's individual Water Code section 10608.20 target plus demands not included in the target. Demands not included in the section 10608.20 target may include process water and recycled water.(3) Excluded demands are those values provided by the supplier to the Board pursuant to Health and Safety Code section 116530, for the following delivery categories: other; commercial and institutional; and industrial.(4) Until June 30, 2040, this subdivision does not apply to any supplier that is achieving its Water Code section 10608.20 target on a regional basis but has not achieved its individual target.(i) Notwithstanding subdivision (a), a supplier shall be considered in compliance with its objective provided all of the following are met: (1) The median household income of the supplier's service area is equal to or less than the median household income of California. The median household income of the supplier's service area shall be the average for the three years preceding the year the supplier initially asserts compliance with its objective pursuant to this subdivision;(2) The supplier's urban water use objective calculated by the supplier pursuant to subdivision (c), using the standards that apply July 1, 2040, would result in an objective that is 80 percent or less of the supplier's average annual water use for the reporting categories identified in section 975(c)(1)(D) for the state fiscal years ending in 2024, 2025, and 2026;(3) The supplier develops, posts to its public-facing website, and implements a plan that is designed with the goal of achieving, by June 30, 2041, or a different date approved by Board staff, the supplier's urban water use objective. The plan must additionally include efforts to keep trees healthy; and(4) The annual reports the supplier has submitted pursuant to section 975 show that the supplier is reducing its per capita water use by an average of no less than 1.0 percent per year, as shown by data from the reporting year and the immediately preceding two years, from its average per capita annual water use for the state fiscal years ending in 2024, 2025, and 2026.(j) Notwithstanding subdivision (a), a supplier shall be considered in compliance with its objective provided all of the following are met: (1) The supplier's urban water use objective, calculated pursuant to subdivision (c), using the standards that apply July 1, 2040, would result in an objective that is 70 percent or less of the supplier's average annual water use for the reporting categories identified in section 975(c)(1)(D) for the state fiscal years ending in 2024, 2025, and 2026;(2) The supplier develops, posts to its public-facing website, and implements a plan that is designed with the goal of achieving, by June 30, 2041, or a different date approved by Board staff, the supplier's urban water use objective. The plan must demonstrate that the supplier has carefully analyzed the data used to calculate its urban water use objective, including, but not limited to, the data associated with variances and special landscape areas. The plan must additionally include efforts to: (i) Increase support for disadvantaged communities, as defined in title 22, section 64300 of the California Code of Regulations, and low-income households;(ii) Leverage regional and local partnerships to support the installation and maintenance of climate-ready landscapes; and(iii) Keep trees healthy;(3) The supplier verifies adherence to the American Water Works Association G480-20 Water Conservation and Efficiency Program Operation and Management Standard (published February 1, 2021), which is hereby incorporated by reference; and(4) The annual reports the supplier has submitted pursuant to section 975 show that the supplier is reducing its per capita urban water use by an average of no less than 2.0 percent per year, as shown by data from the reporting year and the immediately preceding two years, from its average per capita annual water use for the state fiscal years ending in 2024, 2025, and 2026.(k)(1) For the purposes of subdivisions (i) and (j):(1) A supplier shall calculate average annual per capita water use by dividing the average annual demand for the reporting categories identified in section 975(c)(1)(D) for the state fiscal years ending in 2024, 2025, and 2026, by the average annual residential service area population for the state fiscal years ending in 2024, 2025, and 2026, and by the days of the year; and(2) A supplier shall calculate annual per capita water use for the reporting year and the immediately preceding two years by, for each year, dividing annual demand for the reporting categories identified in section 975(c)(1)(D), by annual residential service area population, and by the days of the year.Cal. Code Regs. Tit. 23, § 966
Note: Authority cited: Sections 1058, 10609.2 and 10609.20, Water Code. Reference: Article X, Section 2, California Constitution; Section 3080, Civil Code; Section 51201, Government Code; Section 116530, Health and Safety Code; and Sections 102, 104, 105, 350, 1122, 1123, 1124, 1846, 1846.5, 10608.12, 10608.20, 10609.2, 10609.10, 10609.12 and 10609.27, Water Code.
1. New section filed 9-30-2024; operative 1/1/2025 (Register 2024, No. 40).