2. Background
In Investigation (I.) 07-01-022 (Water Conservation proceeding), the Commission is considering the relationship between water conservation and water use efficiency measures such as the production and use of recycled water by utilities. As part of the Water Conservation proceeding, Commission staff hosted a June 2009 workshop4 which included representatives from Class A water utilities, municipal water agencies and municipal water utilities which have partnered with some Class A water utilities in the production and sales of recycled water, as well as an array of State water regulatory agencies which regulate the production and use of recycled water.
The workshop featured panel discussions and dialogues among the attendees regarding their collaborative regional experiences in the production and delivery of three distinct treatment levels of recycled water,5 and identified obstacles which continue to impede the expansion of recycled water production, distribution, and sales by both those utilities currently engaged in purveying recycled water, and those interested in expanding their businesses to include recycled water products. The workshop also considered the requirements of both longstanding recycled water policy, e.g., the Water Recycling Act of 1991, as well as recent State policy changes that have emphasized the importance of recycled water as a source of local water supply for non-potable and indirect potable reuses.6 Among other significant water regulatory policies affecting the production and use of recycled water, the workshop also included discussions concerning the Air Resources Board's Scoping Plan for implementation of the Global Warming Solutions Act (Assembly Bill (AB) 32, Nunez, 2006), which calls for enhancing the production and use of recycled water supplies to reduce the consumption of more energy-intensive imported water supplies associated with higher GHG emissions.
The workshop particularly elucidated seven issue areas which must be addressed in order for the water utilities to enhance their production and/or sale of recycled water products. The workshop panelists and participants identified the following issue areas for consideration in a rulemaking dedicated to recycled water:
· Cost allocation for recycled water projects among and between regional and local stakeholders including customers and municipal and investor-owned water and sewer utilities;
· Appropriate rate structures and designs for recycled water;
· State water resource and regulatory agency coordination processes for addressing inter- and intra-regional water resource management issues where competing beneficial uses, e.g., enhanced consumption of recycled water by upstream water users versus groundwater recharge commitments by downstream water purveyors, may impact water utilities' recycled water production and use;
· Environmental regulatory issues including those associated with California Environmental Quality Act (CEQA) review requirements and AB 32 implementation; and
· Incentives, goals, penalties for failing to meet goals, and reporting requirements for recycled water production including the consideration of guidelines matching use to type of recycled water.
4 Staff workshop, "Integrated Water Resource Management: Challenges and Opportunities for Water Re-use," was held on June 24, 2009.
5 Recycled water includes water treated to three different treatment levels including primary (physical processes removes some of the suspended solids and organic matter), secondary (biological processes involving microorganisms which remove residual organic matter and suspended material), and tertiary/advanced (combinations of chemical, physical and or/biological processes to further remove suspended and dissolved material, and often involves chemical disinfection, and filtration processes) as described in the Department of Water Resources, Water Facts No.23: WaterRecycling ( http://www.wue.water.ca.gov/recycle/docs/WaterFact 23).
6 Significant State regulatory policy, regulations and legislation governing recycled water have developed primarily over the past two decades. The major policies, regulations, and/or statutes relevant to this proceeding include the Water Recycling Act of 1991 (California Water Code Section 13575 et seq.); California Code of Regulations Title 22 governing water quality standards for recycled water and associated permit issuance; California Water Code Sections 460 et seq. (the Water Reuse Law of 1974); the Water Recycling Law (California Water Code Section 13500 et seq.); Public Utilities Code Section 455.1; California Pubic Utilities Commission 2005 Water Action Plan; Air Resources Board Scoping Plan for the Global Warming Solutions Act of 2006; Department of Water Resources Bulletin 160 Update 2009; State Water Resources Control Board 2009 Water Recycling Policy; and the 2010 California 20x2020 Water Conservation Plan (incorporated into 2009 Senate Bill (SB) X7 7, Chapter 4 of the 7th Extraordinary Session).
