• 974. Commercial, Industrial and Institutional water use best management practices for customers that exceed a recommended size, volume of water use, or other threshold

(c) Each supplier shall identify CII water users according to one of the following paragraphs (1), (2), or (3):

Option 1: (1) By June 30, 2025, identify: (A) Existing CII water users at or above the 97.5th percentile for CII water use; and (B) Existing CII water users at or above the supplier’s 80th percentile for CII water use.

Option 2: (2) By June 30, 2027, identify: (A) Existing CII water users at or above the supplier’s 97.5th percentile for CII water use; and (B) Existing CII water users at or above the supplier’s 80th percentile for water use in each of the classification categories described in section 972.

Option 3: (3) By June 30, 2029, identify existing CII water users that appear to be inefficient according to key business activity indicators (KBAI) the supplier has developed for the classification categories described in section 972. A supplier may also develop KBAIs for the specific ENERGY STAR Portfolio Manager property types.

(d) For the water users identified pursuant to (c)(1)(A) or (c)(2)(A), a supplier shall design, and implement pursuant to subdivision (h), a conservation program that includes at least two of the best management practices from each of paragraphs (1) through (5) in subdivision (f).

(e) For the water users identified pursuant to (c)(1)(B), (c)(2)(B), or (c)(3), a supplier shall design, and implement pursuant to subdivision (h), a conservation program that includes at least one of the best management practices from each of paragraphs (1) through (5) in subdivision (f).

(f)

(1) Outreach, Technical Assistance, and Education best management practices.

(A) Direct contacts via site visits or phone calls

(B) Informative or educational bill inserts

(C) Conducting workshop or developing training videos

(D) Webpage portals to access information, tools, and rebates

(E) Cost-effectiveness analysis tools

(F) Commercials or advertisements

(G) Grass roots marketing

(H) Community based social marketing

(I) Other CII-best management practices derived from additional innovation and technology advancement that can be taken by suppliers, subject to Board approval

(2) Incentive best management practices.

(A) Rebates and cost-sharing for replacing inefficient fixtures, equipment, irrigation systems or landscapes with water efficient ones

(B) Certification or branding programs that recognize customers as water efficient

(C) Incentives for technologies that enable customers to identify, measure, and analyze indoor and outdoor water use

(D) Other CII-best management practices derived from additional innovation and technology advancement that can be taken by suppliers, subject to Board approval

(3) Landscape best management practices.

(A) Landscape and irrigation management practices to promote improved water use efficiency

(B) Irrigation system inspections, audits, or surveys

(C) Training or guidance on irrigation scheduling and maintenance

(D) New development landscape inspection, workshops, and training

(E) Programs to remove turf and replace it with climate-ready vegetation

(F) Programs to decrease urban heat and reduce turf water use by planting trees

(G) Programs to install green infrastructure such as swales or rain gardens that offset irrigation needs

(H) Other CII-best management practices derived from additional innovation and technology advancement that can be used by suppliers, subject to Board approval

(4) Collaboration and coordination best management practices.

(A) Coordination with “green” building certification or recognition programs to promote water use efficiency

(B) Coordination with land use authorities to check new landscapes design and implementation

(C) Collaboration with non-governmental organizations on outreach and education

(D) Collaboration with municipal arborists and tree planting organizations to expand and maintain urban forests

(E) Collaboration with stormwater agencies to install green infrastructure such as swales or rain gardens to also offset irrigation needs

(F) Other CII-best management practices derived from additional innovation and technology advancement that can be taken by suppliers, subject to Board approval

(5) Operational best management practices.

(A) Infrastructure changes (for example, smart meter replacement programs)

(B) Billing or data collection procedures (for example, data tracking, analysis, and reporting improvements)

(C) Other operational best management practices to facilitate CII best management practices program implementation and evaluation

(D) Other CII best management practices derived from additional innovation and technology advancement that can be taken by suppliers, subject to Board approval

(g)

(1) Notwithstanding subdivisions (d) and (e), a supplier for which annual CII water deliveries are 10 percent or less of total deliveries, as averaged over a five-year period, shall design and implement pursuant to subdivision (h) a conservation program that includes at least two of the best management practices from in subdivision (f)(1).

(2) Notwithstanding subdivisions (d) and (e), a supplier need not offer BMPs from subdivision (f)(3) to customers that meet the criteria identified in this section but do not use water outdoors.

(3) For purposes of subdivisions (d) and (e), a supplier may rely on a regional entity in lieu of designing its own conservation program.

(h)

(1) By June 30, 2039, a supplier shall implement a conservation program for existing CII customers meeting the criteria identified in this section. After June 30, 2040, the supplier shall maintain a conservation program for all CII customers meeting the criteria identified in this section.

(2) For purposes of this section, a supplier may rely on implementation by a regional entity in lieu of implementing its own conservation program.

Relevant Data for CII Water Users (Based on Options Selected in Section 974):

• Option 1 (High-usage CII users):
  • Number of CII users at or above the 97.5th and 80th percentiles of water use.
  • BMPs offered to each group and estimated annual water savings.
• Option 2 (High-usage users in classification categories):
  • Number of CII users at the 97.5th percentile and the 80th percentile in each classification.
  • BMPs offered and estimated water savings for each classification group.
• Option 3 (Key Business Activity Indicators – KBAI):
  • Developed KBAIs for each classification and any specific ENERGY STAR property types.
  • Number of water users identified by KBAI in each classification.
  • BMPs offered and estimated annual water savings.

Other Requirements:

• Report water volume in gallons unless specified otherwise.

• 975. Reporting

(a) Each urban retail water supplier shall submit to the Board, no later than January 1, 2024, and by January 1 every year thereafter, the report required by Water Code section 10609.24. The report shall reflect the conditions of the previous state fiscal year, except as specified in subdivision (b).

(b) No later than January 1, 2025, and by January 1 every year thereafter, each urban retail water supplier shall submit to the Board, on a machine-readable form provided by the Board, the supplier’s urban water use objective calculated pursuant to section 966 along with relevant and supporting data.

(4) Relevant data pursuant to section 974(c) through 974(h) in accordance with paragraph (A), (B), or (C) below, as applicable:

Option 1: (A) For suppliers that have identified water users pursuant to 974(c)(1):

• The number of CII water users at or above the 97.5 th percentile for water use
• The best management practices (BMPs) offered to the water users identified in paragraph (i)
• The estimated annual water savings associated with the BMPs identified in paragraph (ii)
• The number of CII water users at or above the 80 th percentile for CII water use
• The BMPs offered to the water users identified in paragraph (iv)
• The estimated annual water savings associated with the BMPs identified in paragraph (v).

Option 2: (B) For suppliers that have identified water users pursuant to 974(c)(2):

• The number of CII water users at or above the 97.5 th percentile for water use
• The best management practices offered to the water users identified in paragraph (i)
• The estimated annual water savings associated with the BMPs identified in paragraph (ii)
• The number of water users at or above the 80 th percentile for water use in each of the classification categories specified in section 972(a) and 972(b)
• The BMPs offered to the water users within each of the classification categories identified in paragraph (iv)
• The estimated annual water savings associated with the BMPs identified in paragraph (v).

Option 3: (C) For suppliers that have identified water users pursuant to 974(c)(3):

• The key business activity indicators (KBAI) developed for each of the classification categories specified in section 972(a) and 972(b)
• Any KBAI the supplier has developed for specific ENERGY STAR Portfolio Manager property types
• For each of the classification categories specified in section 972(a) and(b), the number of water users identified pursuant to section 974(c)(3)
• The BMPs offered to the water users within each of the classification categories identified in paragraph (iii)
• The estimated annual water savings associated with the BMPs identified in paragraph (iv).

(e) Unless otherwise specified, any volume of water reported pursuant to this section shall be reported in gallons.

(f) On or before January 1, 2027, a copy of a supplier’s regulation, ordinance, or policy governing water service that shows the supplier’s compliance with Water Code section 10608.14.