(1)Existing law requires the State Energy Resources Conservation and Development Commission to establish design and construction standards and energy and water conservation design standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy. Existing law requires the commission to establish minimum levels of operating efficiency to promote the use of energy and water efficient appliances, including landscape irrigation equipment.

This bill would require the commission, on or before January 1, 2020, to the extent that funding is available, to adopt regulations setting standards for the accuracy of water meters, as described, that, on or after the effective date of those regulations, are installed by a water purveyor or manufactured and sold or offered for sale in the state. The bill would include an exception for a water meter that, as of the effective date of the regulations, a water purveyor possesses, or has entered into a contract to purchase, and has not yet installed. The bill would allow a water purveyor to maintain water meters that are installed as of the effective date of the regulations, or pursuant to that exception, until the end of their useful service, as determined by the water purveyor.

(2)Existing law requires the state to achieve a 20% reduction in urban per capita water use in California by December 31, 2020, and requires the state to make incremental progress towards this goal by reducing per capita water use by at least 10% on or before December 31, 2015. Existing law requires the Department of Water Resources to adopt and update rules for urban retail water suppliers to conduct standardized water loss audits and requires suppliers to submit those water loss audits to the department. department on or before October 1 of each year. Existing law requires the State Water Resources Control Board, no later than July 1, 2020, to adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses.

The Water Measurement Law requires every water purveyor to require, as a condition of new water service, the installation of a water meter to measure water service. The law also requires urban water suppliers to install water meters on specified service connections, and to charge water users based on the actual volume of deliveries as measured by those water meters.

This bill would require suppliers to submit water loss audits to the Department of Water Resources on or before November 1 of each year. The bill would require the State Water Resources Control Board, in adopting the rules for urban retail water supplier performance standards, to also adopt regulations to require each urban water supplier to sample and test its customer service meters to produce a statistically sound estimate of the accuracy of the urban water suppliers meter fleet. The bill would also make various nonsubstantive changes.

(1)Existing law requires the State Energy Resources Conservation and Development Commission to establish design and construction standards and energy and water conservation design standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy. Existing law requires the commission to establish minimum levels of operating efficiency to promote the use of energy and water efficient appliances, including landscape irrigation equipment.

This bill would require the commission, on or before January 1, 2020, to the extent that funding is available, to adopt regulations setting standards for the accuracy of water meters purchased meters, as described, that, on and or after the effective date of those regulations, including water meters installed pursuant to the Water Measurement Law, described in (2). regulations, are installed by a water purveyor or manufactured and sold or offered for sale in the state. The bill would allow a water purveyor to install a include an exception for a water meter possessed by that water purveyor before that, as of the effective date of the regulations for a time period deemed appropriate by the commission. regulations, a water purveyor possesses, or has entered into a contract to purchase, and has not yet installed. The bill would allow a water purveyor to maintain water meters that are installed as of the effective date of the regulations, or pursuant to that exception, until the end of their useful service, as determined by the water purveyor.

(2)Existing law requires the state to achieve a 20% reduction in urban per capita water use in California by December 31, 2020, and requires the state to make incremental progress towards this goal by reducing per capita water use by at least 10% on or before December 31, 2015. Existing law requires the Department of Water Resources to adopt and update rules for urban retail water suppliers to conduct standardized water loss audits and requires suppliers to submit those water loss audits to the department. Existing law requires the State Water Resources Control Board, no later than July 1, 2020, to adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses.

The Water Measurement Law requires every water purveyor to require, as a condition of new water service, the installation of a water meter to measure water service. The law also requires urban water suppliers to install water meters on specified service connections, and to charge water users based on the actual volume of deliveries as measured by those water meters.

This bill would require the State Water Resources Control Board, in adopting the rules for urban retail water supplier performance standards, to also adopt protocols to be used by an urban water supplier for the regular sampling and testing of regulations to require each urban water supplier to sample and test its customers customer service meters to establish produce a statistically sound estimate of the accuracy of the water meters serviced by the urban water supplier. suppliers meter fleet. The bill would also make various nonsubstantive changes.

(1)Existing law requires the State Energy Resources Conservation and Development Commission to establish design and construction standards and energy and water conservation design standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy. Existing law requires the commission to establish minimum levels of operating efficiency to promote the use of energy and water efficient appliances, including landscape irrigation equipment.

This bill would require the commission, on or before January 1, 2020, to adopt regulations setting standards for the accuracy of water meters purchased, repaired, or reconditioned purchased on and after the effective date of those regulations, including water meters installed pursuant to the Water Measurement Law, described in (2). The bill would allow a water purveyor to install a water meter possessed by that water purveyor before the effective date of the regulations for a time period deemed appropriate by the commission.

The Water Measurement Law requires every water purveyor to require, as a condition of new water service, the installation of a water meter to measure water service. The law also requires urban water suppliers to install water meters on specified service connections, and to charge water users based on the actual volume of deliveries as measured by those water meters.

This bill would require the State Water Resources Control Board, on or before January 1, 2020, in adopting the rules for urban retail water supplier performance standards, to also adopt protocols to be used by an urban water supplier for the regular sampling and testing of its customers service meters to establish a statistically sound estimate of the accuracy of the water meters serviced by the urban water supplier, and supplier. The bill would require the state board, on or before January 1, 2021, to establish requirements for accuracy testing of installed water meters. would also make various nonsubstantive changes.

(1)Existing law requires the State Energy Resources Conservation and Development Commission to establish design and construction standards and energy and water conservation design standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy. Existing law requires the commission to establish minimum levels of operating efficiency to promote the use of energy and water efficient appliances, including landscape irrigation equipment.

This bill would require the commission, on or before January 1, 2020, to adopt regulations setting standards for the accuracy of water meters purchased, repaired, or reconditioned on and after the effective date of those regulations, including water meters installed pursuant to the Water Measurement Law, described in (2). The bill would allow a water purveyor to install a water meter possessed by that water purveyor before the effective date of the regulations for a time period deemed appropriate by the commission.

(2)The Water Measurement Law requires every water purveyor to require, as a condition of new water service, the installation of a water meter to measure water service. The law also requires urban water suppliers to install water meters on specified service connections, and to charge water users based on the actual volume of deliveries as measured by those water meters.

This bill would require the State Water Resources Control Board, on or before January 1, 2020, to adopt protocols to be used by an urban water supplier for the regular sampling and testing of its customers service meters to establish a statistically sound estimate of the accuracy of the water meters serviced by the urban water supplier, and would require the state board, on or before January 1, 2021, to establish requirements for accuracy testing of installed water meters.

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 3206 (Friedman) - Water conservation: water meters: accuracy and performance standards

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

This bill would require the California Energy Commission (CEC) to adopt regulations setting standards for the accuracy of water meters and require the State Water Resource Control Board (SWRCB) to adopt protocols to be used by each urban water supplier for the regular sampling and testing of its customers’ service meters.

Fiscal Impact: Assuming that funding is available:

• Onetime State Water Board costs of $150,000 for technical staff and legal support to adopt rules for performance standards and protocols for meter sampling and testing (General Fund).
• Onetime costs pressure, likely in the hundreds of thousands of dollars, for the CEC to develop the regulations (General Fund or special fund).

Background: Existing law requires the CEC to establish design and construction standards and energy and water conservation design standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy.

It also requires the state to achieve a 20 percent reduction in urban per capita water use by the end of 2020 as well as urban water utilities and investor-owned utilities to meter all municipal and industrial users by 2025 and charge metered customers based on the actual volume of water delivered.

Further, it requires the SWRCB to adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses.

Proposed Law:

This bill would:

• Require the CEC to adopt regulations setting accuracy standard of water meters purchased, repaired, or recondition by January 1, 2022, for meters purchased, repaired, or recondition on or after the effective date of those regulations.
• Allow a water purveyor to install a water meter that has been purchase or contracted for before the effective date of these regulations, but not yet installed.
• Require the SWRCB, as part of the development of regulations requiring urban retail water suppliers to meet performance standards for the volume of water losses to establish requirements for the sampling and testing by each urban water supplier of its customer service meters on or before January 1, 2021.

-- END --

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Robert Hertzberg, Chair

2017 - 2018 Regular

Bill No: AB Hearing Date: June 26, 2018

Subject: Water conservation: water meters: accuracy and performance standards

BACKGROUND AND EXISTING LAW

Existing law:

1. Requires the State Energy Resources Conservation and Development Commission (commission) to:
   1. Establish design and construction standards and energy and water conservation design standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy.
   2. Establish minimum levels of operating efficiency to promote the use of energy and water efficient appliances, including landscape irrigation equipment.
2. Requires the Department of Water Resources (DWR) to adopt and update rules for urban retail water suppliers to conduct standardized water loss audits and requires suppliers to submit those water loss audits to the department.
3. Requires the State Water Resources Control Board (board), no later than July 1, 2020, to adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses.

PROPOSED LAW

This bill would:

1. Require the commission to adopt regulations setting standards for the accuracy of water meters that, on or after the effective date of those regulations are installed by a water purveyor or manufactured and sold or offer by the sale in the state.
   1. The regulations are to be adopted by January 1, 2022; to the extent funding is available.
   2. The regulations are to allow a water purvey to do both the following:
      1. Install a water meter that, as of the effective date of the regulations, the water purveyor possesses or has entered into a contract to purchase, and has not yet installed.
      2. Maintain all water meters installed as of the effective date of the regulations or pursuant to i) until the end of their useful service, as determined by the water purveyor.
   3. In adopting the regulations, the commission may consider the 5^th edition of the American Water Works Association’s “Water Meters – Selection, Installation, Testing and Maintenance.”
2. Require the board, in adopting regulations regarding water losses, to also adopt regulations requiring the sampling and testing by each urban water supplier of its customer service meters that, when followed, will produce a statistically sound estimate of the accuracy of the urban water supplier’s meter fleet. In adopting regulations pursuant to this paragraph, the board shall consider both of the following:
   1. The results of a survey of urban water suppliers, to be conducted by the board, on the methodologies they use to sample and test customer service meters.
   2. Industry standards of practice and manuals from the American Water Works Association.

ARGUMENTS IN SUPPORT

According to the author, “Making California more drought resilient and water efficient requires us to take a closer look at the use and management of the state’s water resources. One important tool to track the use of water is a water meter. While water meters have been in use for decades in most California communities, they are not yet universal. Even in California, more than 219,000 urban water connections remain unmetered.

Studies show that metering, when coupled with effective pricing structures, reduces water use by 15% to 20%. Additional water savings are possible through improved management of the water system, particularly the identification and repair of leaks in the distribution system. Water savings from metering all connections in California can produce considerable water savings at the local level, reducing vulnerability to drought and other water supply constraints. Moreover, water savings in previous years would have been left in storage. Metering is an essential water management strategy and expanding and improving metering should be a priority for all California utilities.

It has long been known in the water industry that water meters become less accurate over their service life, and that many brand new meters experience a dramatic loss of accuracy when tested at low flow rates. In nearly all cases, meters tend to err on the side of under-recording, rather than over-recording. The loss of accuracy in water meters means that utilities are collecting less revenue than intended from their published rate schedules, leading to more frequent rate increases. It also means that customers with leaks on their premises may not be paying for all the water they receive, while all other customers are being billed to recover this lost revenue. And failure of many water suppliers to accurately assess the amount of inaccuracy in their installed meters greatly diminishes their ability to conduct and accurate audit of water leaks and losses.

Unlike sub-meters, there is no requirement for testing the accuracy of water meters before they are purchased or used. Furthermore, there are no performance standards for the testing water meters installed in the field. In November 2017, nearly 400 urban water systems filed validated water loss audit reports with the Department of Water Resources as required under SB 555 (Wolk 2015). However, approximately 2/3 of all water systems reported that they conduct no regular annual testing to determining the accuracy of their installed meters on a statistically sound basis. Without a clearer picture of the accuracy of water meters in operation, the validity of utilities estimates of real water leakage from its distribution system is greatly diminished.

California needs to ensure that new meters are more accurate and that existing meters are tested sufficiently to provide a statistically sound estimate of meter inaccuracy. AB 3206 would correct these deficiencies in current law and authorize the adoption of state standards for the accuracy of new urban water meters and for the testing of installed water meters for accuracy.

ARGUMENTS IN OPPOSITION

The Association of California Water Agencies (ACWA) and California Water Association (CWA) raise a number of issues. “ACWA and CWA believe the provisions of AB 3206 will create burdensome and unneeded mandates on urban retail water suppliers who already rely on industry standards and practice manuals developed by the American Water Works Association (AWWA) to ensure the accuracy and optimal performance of their water meters. AWWA is an international, nonprofit, scientific and educational society dedicated to providing water solutions assuring the effective management of water. The Association is the largest organization of water supply professionals in the world, whose membership includes over 3,900 utilities that supply roughly 80 percent of the nation's drinking water. Our organizations do not believe a new state law is needed in this area with respect to obligations on urban water suppliers’ sampling and testing of their meters.”

“AB 3206 presents several other concerns.

• First, we believe it is more appropriate for the Department of Water Resources (DWR) to develop recommendations for meter sampling and testing rather than for the State Water Board to adopt protocols. DWR currently works with local agencies on monitoring water use efficiency and water management plans.
• Second, the bill should not specify regular sampling and testing of customer service meters. Reliance on the term “regular” would provide too much discretion to the administering agency and could result in unreasonable costs being imposed on local water utilities that must be passed along to customers. The regular testing of installed water meters would require that meters be taken out of service and replaced with a new meter, which would be costly, time-consuming, and an unnecessary action since these meters will have likely not been in place for their estimated useful service. The disruption in water service and entry onto private property would also constitute an unnecessary inconvenience for water customers.
• Third, recommendations developed by the state should be consistent with AWWA standards of practice and manuals.
• Finally, unnecessary replacement of meters will result in increased customer costs at a time when the cost of water service is under significant pressure from infrastructure needs, new regulatory standards, reduced consumption and new legislation requiring additional ratepayer subsidies.”

COMMENTS

Board Regulations Vs DWR Recommendations. ACWA and CWA assert that DWR should develop sampling and testing recommendations, instead of having the board adopt sampling and testing regulations. Perhaps the approach taken in the recently chaptered water use efficiency bills (SB 606(Hertzberg) & AB 1668 (Friedman)) would be appropriate here as well. In those bills, DWR recommends and the board adopts regulations regarding water use efficiency standards.

Is 2020 Enough Time? It seems unlikely that DWR and the board would have sufficient time to recommend and adopt sampling and testing regulations by 2020. It might make sense to give them to June 30, 2022. That coincides with the date the board is to adopt water use efficiency standards under the water use efficiency bills. (See amendment 1)

May Consider Or Shall Adopt? This bill allows, but does not require, the commission to consider the 5th edition of the AWWA’s “Water Meters – Selection, Installation, Testing and Maintenance” when establishing the water meter standards. Two things. First, the AWWA water meter manual is currently being updated, and a new edition is expected by the end of this year. The bill should be amended to refer to the most current manuals, whatever the edition might be. Second, ACWA and CWA would prefer that the standards be consistent with the AWWA standards. Another option would be to require the commission to consider the current standards and practices from the AWWA, but allow the commission to adopt whatever standards it deems most appropriate for California. (See amendment 2)

What If You Are Meeting The Water Loss Standard? Current law requires the board to adopt a standard for water losses, and those standards are also referenced in the water use efficiency bills. This bill would add additional requirements for ensuring that water meters are accurate, etc. That might be appropriate if the water system’s water losses were greater than that allowed under the water loss standard. But if the system is already meeting the water loss standard, perhaps the funds that would go towards testing meters would better be spent elsewhere. This suggests that perhaps the testing requirements apply only to systems that don’t meet the water loss standards. (See amendment 3)

Technical Amendment. The water use efficiency bills made the reports regarding meeting the water use objectives due on November 1 of each year. Current law for reporting the status of the water loss is due on October 1. For consistency with the water use efficiency reporting, which will include information on water losses, it might make sense to change the reporting date for water loss to November 1. (See amendment 4)

SUGGESTED AMENDMENTS

AMENDMENT 1

On page 5, delete lines 33 & 34 and insert:

(2) No later than January 1, 2022, the department shall recommend and the board shall adopt

On page 6, line 1, delete “adopting regulations” and insert “developing recommendations”

On page 6, line 1, delete “board” and insert “department”

On page 6, line 4, delete “board” and insert “department”

AMENDMENT 2

On page 3, line 24, delete “may consider the fifth edition of the American Water” delete lines 25 & 26, and insert:

“shall consider the most recent Industry standards of practice and manuals from the American Water Works Association.”

AMENDMENT 3

On page 5, line 32, before the period, insert:

“, including those established in paragraph (2)”

AMENDMENT 4

On page 4, line 32, delete “October” and insert “November”

SUPPORT

Clean Water Action

California Trout

Wholly H2O

San Diego County Water Authority

Southern California Watershed Alliance

Mono Lake Committee

National Resources Defense Council

Support If Amended

California-Nevada Section, American Water Works Association

California Municipal Utilities Association

OPPOSITION

Association of California Water Agencies

California Water Association

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 3206

Author:(Friedman)

As Amended Ver:April 3, 2018

Majority vote

SUMMARY: Requires accuracy standards and testing for public water utility water meters. Specifically, this bill:

1. Requires the California Energy Commission (CEC) on or before January 1, 2020, to adopt regulations setting standards for the accuracy of water meters. Requires the regulations to allow a water purveyor to install a water meter before the effective date of the regulations for a time period following the effective date of the regulations, as deemed appropriate by the CEC.
2. Exempts the CEC from existing cost-effectiveness determination for the regulations on the accuracy of water meters.
3. Requires the State Water Resources Control Board (SWRCB) in retail water supplier water loss standards to adopt water meter accuracy protocols for regular sampling and testing to establish a statistically sound estimate of the accuracy of the water meters.

EXISTING LAW:

1. Requires urban water suppliers to charge each customer with a water meter based on the volume of water measured by the water meter. Requires urban water suppliers to install water meters on all service connections on or before January 1, 2025.
2. Requires urban water suppliers to prepare and adopt urban water management plans (UWMPs). Among other requirements, UWMPs are required to contain a calculation of the distribution system water losses.
3. Requires the SWRCB, no earlier than January 1, 2019, and no later than July 1, 2020, to adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses.
4. Requires the CEC to reduce the inefficient consumption of energy and water on a statewide basis by prescribing efficiency standards and other cost-effective measures for new appliances. Specifies that the efficiency standards shall be cost-effective for the life cycle of the product.

FISCAL EFFECT: According to Assembly Appropriations Committee:

1. One-time CEC costs of $450,000 (3 positions) to develop the regulation (General Fund [GF] or special fund).
2. One-time State Water Board costs of $150,000 GF for technical staff (1/2 position) and legal support (1/2 position) to adopt rules for performance standards and protocols for meter sampling and testing.

COMMENTS: Existing law requires that every water service connection have a water meter by January 1, 2025. There are approximately 11 million water meters installed at single family homes in California. Of those water meters 9 million are not currently regulated under existing law. Maintained highly accurate water meters have been shown to lead to greater conservation of water through leak detection and identification of excessive in-home water use. Conversely, low-accuracy meters do not detect slow leaks, such as those from a leaking faucet or toilet. The use of high-quality water meters can present opportunities to detect and correct leaks or consumer behavior that low-accuracy water meters do not provide.

The CEC has the authority to adopt energy and water efficiency standards for new appliances sold or offered for sale in the state for which there is no federal regulation. The CEC has not set standards for water meters to date, and is not currently working on establishing a standard for water meters. This bill would require the CEC to establish standards for water meters on or before January 1, 2020. It would exempt the CEC from a cost-effectiveness determination and a number of suggested provisions related to public notice, and Building Standards Commission approval, for regulations on water meter accuracy standards. This exemption from the cost-effectiveness test is necessary because water meters are bought in bulk by water agencies but are typically used by one customer on one water line.

The SWRCB is required to adopt rules requiring urban retail water suppliers to meet performance standards for system water losses. This bill would require the SWRCB to establish regulations for installed water meter accuracy testing and protocols to establish the accuracy of water meters in an urban water supplier's service area.

Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096 FN: 0003251

Date of Hearing: May 9, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 3206

Author:(Friedman) – As Amended Ver:April 3, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the California Energy Commission (CEC) to adopt regulations by January 1, 2020, setting standards for the accuracy of water meters. Specifically, this bill:

1. Requires the regulations to allow a water purveyor to install a water meter before the effective date of the regulations for a time period following the effective date of the regulations, as deemed appropriate by the CEC.
2. Exempts the CEC from performing a cost-effectiveness determination for the regulations on the accuracy of water meters as required by existing statute.
3. Requires the State Water Resources Control Board (State Water Board), when adopting rules in retail water supplier water loss standards, to also adopt water meter accuracy protocols for regular sampling and testing, as specified.

FISCAL EFFECT:

1. One-time CEC costs of $450,000 (3 PY) to develop the regulation (GF or special fund).
2. One-time State Water Board costs of $150,000 GF for technical staff (1/2 PY) and legal support (1/2 PY) to adopt rules for performance standards and protocols for meter sampling and testing.

COMMENTS:

1. Purpose. According to the author, “As important as water metering is, there are no performance standards for the use and efficiency of water meters installed in California.”

This bill corrects deficiency in existing law by requiring accuracy standards and testing for public water utility water meters.

1. Background. Existing law requires that every water service connection have a water meter by January 1, 2025. There are approximately 11 million water meters installed at single family homes in California. Of those water meters 9 million are not currently regulated under existing law. Maintained highly accurate water meters have been shown to lead to greater conservation of water through leak detection and identification of excessive in-home water use. Conversely low-accuracy meters do not detect slow leaks, such as those from a leaking faucet or toilet. The use of high-quality water meters can present opportunities to detect and correct leaks or consumer behavior that low-accuracy water meters do not provide.

The CEC has the authority to adopt energy and water efficiency standards for new appliances sold or offered for sale in the state for which there is no federal regulation. The CEC has not set standards for water meters to date, and is not currently working on establishing a standard for water meters. This bill would require the CEC to establish standards for water meters on or before January 1, 2020. It would exempt the CEC from a cost-effectiveness determination and a number of suggested provisions related to public notice, and Building Standards Commission approval, for regulations on water meter accuracy standards. This exemption from the cost-effectiveness test is necessary because water meters are bought in bulk by water agencies but are typically used by one customer on one water line.

The State Water Board is required to adopt rules requiring urban retail water suppliers to meet performance standards for system water losses. This bill would require the State Water Board to establish regulations for installed water meter accuracy testing and protocols to establish the accuracy of water meters in an urban water supplier’s service area.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: April 10, 2018

ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE

Eduardo Garcia, Chair

ABPCA Bill Id:AB 3206 (

Author:Friedman) – As Amended Ver:April 3, 2018

SUBJECT: Water conservation: water meters: accuracy and performance standards

SUMMARY: Requires accuracy standards and testing for public water utility water meters. Specifically, this bill:

1. Requires the California Energy Commission (CEC) on or before January 1, 2020, to adopt regulations setting standards for the accuracy of water meters.
2. Exempts the CEC from existing cost-effectiveness determination for the regulations on the accuracy of water meters.
3. Requires the State Water Resources Control Board (SWRCB) in retail water supplier water loss standards to adopt water meter accuracy protocols for regular sampling and testing to establish a statistically sound estimate of the accuracy of the water meters.

EXISTING LAW:

1. Requires urban water suppliers to charge each customer with a water meter based on the volume of water measured by the water meter. Requires urban water suppliers to install water meters on all service connections on or before January 1, 2025.
2. Requires urban water suppliers to prepare and adopt urban water management plans (UWMPs). Among other requirements, UWMPs are required to contain a calculation of the distribution system water losses.
3. Requires the SWRCB, no earlier than January 1, 2019, and no later than July 1, 2020, to adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses.
4. Requires the CEC to reduce the inefficient consumption of energy and water on a statewide basis by prescribing efficiency standards and other cost-effective measures for new appliances. Specifies that the efficiency standards shall be cost-effective for the life cycle of the product.
5. Establishes the Department of Food and Agriculture as having general supervision of weights and measures and weighing and measuring devices sold or used in the state.

FISCAL EFFECT: Unknown.

COMMENTS: Requires accuracy standards and testing for public water utility water meters.

Author’s Statement:

One important tool to track the use of water is a water meter. Studies show that metering, when coupled with effective pricing structures, reduces water use by 15% to 20%. Additional water savings are possible through improved management of the water system, particularly the identification and repair of leaks in the distribution system. Metering is an essential water management strategy and expanding and improving metering should be a priority for all California utilities.

As important as water metering is, there are no performance standards for the use and efficiency of water meters installed in California. Unlike sub-meters, there is no requirement for testing the accuracy of water meters before they are purchased or used. Furthermore, there are no performance standards for testing water meters in the field. This bill would correct this deficiency in current law and allow for the appropriate state agencies to establish performance standards for water meters.

Background: Water Meters in California. Existing law requires that every water service connection have a water meter by January 1, 2025. There are approximately 11 million water meters installed at single family homes in California. Of those water meters 9 million are not currently regulated under existing law. Maintained highly accurate water meters have been shown to lead to greater conservation of water through leak detection and identification of excessive in-home water use. Conversely low-accuracy meters do not detect slow leaks, such as those from a leaking faucet or toilet. The use of high-quality water meters can present opportunities to detect and correct leaks or consumer behavior that low-accuracy water meters do not provide.

The status of water meters use varies widely across the state. As of 2014 there were over 200,000 water connections without a water meter. Meter installation can require a large up-front investment, for example, the City of Sacramento meter installation program is estimated to cost more than $416 million for the installation of 110,000 meters. Some utilities have chosen to install Advanced Water Metering Infrastructure (AMI) which allow for remote readings and provide water usage data to both customers and utility staff in real time. These systems cost more up front, but open opportunities for two-way communication, allowing the utility to contact the customer in a timely way regarding water use. A 2010 survey indicated that half of utilities in California had installed some level of AMI. The value of AMI is likely to vary from system to system but has been shown, in some systems, to provide a wide range of benefits from improved leak detection to consumer water use efficiency. It is estimated that the widespread use of accurate water meters would reduce statewide water and energy consumption by approximately 4,000 acre-feet of water and eleven gigawatt-hours of energy annually.

California Public Utility Commission (CPUC) and Water Meter Accuracy. The 2 million regulated water meters installed at single family homes in California are owned by private water utilities and are regulated under the CPUC. The CPUC requires that all water provided by a private utility have a meter and that the water meters meet the following requirements:

• Are tested prior to installation and are in good working condition,
• Are of adequate size and design,
• Are accurate within generally accepted standards,
• Establish a maximum time period a meter can stay in service without testing, and
• If removed from service for repair or testing are restored to required accuracy.

The CPUC requirements on water meter accuracy and testing have been in place since 2009.

California Energy Commission (CEC) and Regulation of Water Meters. The CEC has the authority to adopt energy and water efficiency standards for new appliances sold or offered for sale in the state for which there is no federal regulation. The CEC has not set standards for water meters to date, and is not currently working on establishing a standard for water meters. This bill would require the CEC to establish standards for water meters on or before January 1, 2020. It would exempt the CEC from a cost-effectiveness determination and a number of suggested provisions related to public notice, and Building Standards Commission approval, for regulations on water meter accuracy standards.

State Water Resources Control Board and Water Loss. The SWRCB is required to adopt rules requiring urban retail water suppliers to meet performance standards for system water losses. This bill would require the SWRCB to establish regulations for installed water meter accuracy testing and protocols to establish the accuracy of water meters in an urban water supplier’s service area.

Prior and Related Legislation:

• AB 2572 (Kehoe), Chapter 884, Statutes of 2004, requires urban water utilities to install water meters on all service connections and to charge customers based on the volume of water used.
• SB 555 (Wolk), Chapter 679, Statutes of 2015, requires the SWRCB to adopt rules requiring urban water suppliers to meet performance standards for water loss.
• SB 7 (Wolk), Chapter 623, Statutes of 2016, requires individual water meters, also called submeters, be installed on all new multifamily residential units or mixed commercial and multifamily units.

Supporting Arguments: It has long been known in the water industry that water meters become less accurate over their service life, and that many brand new meters experience a dramatic loss of accuracy when tested at low flow rates. In nearly all cases, meters tend to err on the side of under-recording, rather than over-recording. The loss of accuracy in water meters means that utilities are collecting less revenue than intended from their published rate schedules, leading to more frequent rate increases. It also means that customers with leaks on their premises may not be paying for all the water they receive, while all other customers are being billed to recover this lost revenue. And failure of many water suppliers to accurately assess the amount of inaccuracy in their installed meters greatly diminishes their ability to conduct and accurate audit of water leaks and losses. This bill would provide answers to each of these issues to ensure that new meters are more accurate and that existing meters are tested sufficiently.

REGISTERED SUPPORT / OPPOSITION:

Support

California Trout

Clean Water Action

Mono Lake Committee

Natural Resources Defense Council

Sierra Club California

Southern California Watershed Alliance

Wholly H2O

Opposition

None on file

Analysis Prepared by: Ryan Ojakian / W., P., & W. / (916) 319-2096