04-24-2017 BPU RPT 10 - Laserfiche WebLink

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W A I R h N h R L Y I. l F F PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum SUBJECT: WATER CONSERVATION SURCHARGE UPDATE DATE: APRIL 24, 2017 ITEM NO: 10 ISSUES: Receive a triennial report on the disbursement of revenue collected pursuant to the Water Conservation Surcharge. RECOMMENDATION: That the Board of Public Utilities receive and file this report. LEGISLATIVE HISTORY: Senate Bill (SB) x7 -7 (2009) requires the State to achieve a 20% reduction in urban per capita water use in California by December 31, 2020. The State is required to make incremental progress towards this goal by reducing per capita water use by at least 10% on or before December 31, 2015. Riverside Public Utilities (RPU) is currently surpassing this goal. BACKGROUND: On May 25, 2004, the City Council adopted the ten-year Water Conservation Surcharge to serve the growing need for water conservation in the City of Riverside. The Water Conservation Surcharge is a 1.5% charge on all water sales for residential and commercial customers. The surcharge is listed as an individual line item on the monthly utility bill and is to be used for conservation, education and water use efficiency programs. The average residential Riverside Public Utilities (RPU) customer pays $0.56 per month for this surcharge and the average commercial customer pays $3.17. Collectively, the surcharge represents $750,000 — $950,000 for the fund annually. The Water Conservation Surcharge is utilized for: 1. Conservation, education, and water use efficiency programs: a. Turf Removal b. Water Saving Devices c. Direct Installation Programs of water efficiency measures 2. Research, development, and demonstration programs to advance science and technology on water conservation As the Water Conservation Surcharge Fund was phased in from 2004-2006, it took several years before RPU accumulated sufficient funding to begin effective water conservation programming. Although many conservation activities have been undertaken since the 1990s, water conservation programming began in earnest in 2007. In November 2009, the Governor and State Legislature approved Senate Bill (SB) x7- 7 mandating urban water suppliers to lower per capita water usage 20% by the year 2020. In response to this legislation, RPU used the Water Conservation Surcharge fund to increase offerings of water conservation programs to its customers, implement direct installation programs, increase marketing, education and promotion efforts, and create grants and research funding opportunities for local universities.