Making Conservation a California Way of Life: What You Need to Know About California’s New Water Regulation
California prides itself as a leader in environmental sustainability, and the recent regulation Making Conservation a California Way of Life is yet another example of the state’s ambitious efforts to increase conservation. Officially adopted on July 3, 2024, by the State Water Resources Control Board, this regulation sets new water use standards for urban retail water suppliers across the state.
The new rules result from a package of laws passed in 2018 (AB 1668 and SB 606) and establish a regulatory framework aimed at attaining long-term water use efficiency. Here’s what this means for California’s water districts and cities operating their own water utilities.
Key Components of the Regulation
The Making Conservation a California Way of Life regulation contains three key components:
- Water Use Budgets: Each water supplier is now required to meet a unique water use objective that takes into account residential indoor and outdoor water usage, commercial and industrial landscapes and system water loss. Suppliers can learn more about their expected urban water use objective by leveraging the State Water Board’s Water Use Objective Exploration Tool.
- Commercial, Industrial and Institutional (CII) Performance Measures: Water suppliers are required to improve water use efficiency among CII customers. This includes classifying CII accounts into categories based on usage, implementing advanced metering infrastructure and converting large CII landscapes (over 0.5 acres) with mixed-use meters to dedicated irrigation meters.
- Annual Reporting: Every January, urban retail water suppliers must submit data to the State Water Board documenting their water use objectives, actual water use and progress in implementing CII performance measures.
It’s important to note that these new rules are intended to hold water suppliers accountable; individual customers are not required to meet specific water use targets nor are they subject to fines or enforcement. Critics have observed that this asymmetrical arrangement is a bad start for this new regulatory regime.
Timeline of Implementation
The regulation officially goes into effect in January 2025. While reporting begins immediately, full enforcement — including penalties for noncompliance — will not be enacted until later. This phased approach gives agencies and districts additional time to adjust their water conservation programs to achieve water efficiency targets. However, the January 2025 reporting requirements mean that urgent administrative action is needed to ensure agencies are prepared with the appropriate data soon. That said, reports have also indicated the State has been slow to get sufficient details published to guide the reporting process, making the January 2025 reporting period even more fraught.
When the legislation was initially introduced, it authorized fines up to $10,000/day for non-compliant agencies. After dedicated advocacy from local agencies and statewide associations, the State now shows greater degree of flexibility and understanding on the heavy impact of this regulation. With that in mind, the State plans to outline enforcement more clearly in 2028. Until then, fines and penalties are uncertain.
Impact on Water Agencies and Communities
Water suppliers are facing several challenges with the new regulations. While agencies have already invested heavily in conservation programs, including rebates and education efforts, these new rules push for even greater reductions. Some suppliers may find it difficult to meet their goals due to operational complexities and revenue losses resulting from reduced sales.
For customers, the changes will be felt indirectly. Although individual households aren’t required to meet specific water use goals, they may experience higher costs or see new water rate structures as agencies work to comply with the new standards.
Communication Needs
A significant issue for public agencies is how to communicate these changes effectively with ratepayers. Drought messaging fatigue is real, and water providers need creative ways to keep water conservation a priority for residents. Creative, targeted campaigns will likely be needed to drive participation in water-saving programs among both residential and commercial customers. Public outreach will need to be data-driven and strategically aimed at highest-volume users, which may vary between service areas.
Water suppliers will also need to educate customers on the flexible options they still have for managing their water use. By empowering people to make choices based on their personal priorities, agencies can foster a sense of control amidst rising water conservation demands.
For now, as the regulations phase in over several years, culminating in final water efficiency standards for 2040, public agencies should focus on reporting processes and transparent high-level messaging about the new rules—while recognizing there’s no immediate call to action for ratepayers. Internal work on the reporting processes, software systems, cross-departmental collaboration and integration of consulting partners should be the near-term priorities for agencies.