California 2017 2017-2018 Regular Session

California Assembly Bill AB3206 Amended / Bill

Filed 04/03/2018

                    Amended IN  Assembly  April 03, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 3206Introduced by Assembly Member FriedmanFebruary 16, 2018 An act to add Section 25401.8 to the Public Resources Code, and to add Sections 525.5 and 529.6 to amend Section 10608.34 of the Water Code, relating to water conservation. LEGISLATIVE COUNSEL'S DIGESTAB 3206, as amended, Friedman. Water conservation: water meters: accuracy and performance standards.(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.(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. (2)TheThe 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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 25401.8 is added to the Public Resources Code, to read:25401.8. (a) (1) On or before January 1, 2020, the commission shall 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 described in Article 3.5 (commencing with Section 525) of Chapter 8 of Division 1 of the Water Code. The regulations shall 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 following the effective date of the regulations, as deemed appropriate by the commission. For(2) For purposes of this section, water meter water meter has the same meaning as in Section 516 of the Water Code.(b) Paragraph (3) of subdivision (b) of, and paragraph (1) of subdivision (c) of, Section 25402 shall not apply to the regulations adopted under this section.SEC. 2.Section 525.5 is added to the Water Code, to read:525.5.On or before January 1, 2021, the State Water Resources Control Board shall establish, by regulation, requirements for accuracy testing of installed water meters.SEC. 3.Section 529.6 is added to the Water Code, to read:529.6.On or before January 1, 2020, the State Water Resources Control Board shall, by regulation, adopt protocols to be used by each 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.SEC. 2. Section 10608.34 of the Water Code is amended to read:10608.34. (a) (1) On or before January 1, 2017, the department shall adopt rules for all of the following:(A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0.(B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, validating is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water suppliers water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation.(C) The technical qualifications required of a person to engage in validation, as described in subparagraph (B).(D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report.(E) The method of submitting a water loss audit report to the department.(2) The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software.(b) On or before October 1, 2017, and on or before October 1 of each year thereafter, year, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a). Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision (c).(c)Using funds available for the 201617 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers.(d)(c) Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses.(e)(d) At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department:(1) The chief financial officer.(2) The chief engineer.(3) The general manager.(f)(e) The department shall deem incomplete and return to the urban retail water supplier any final water loss audit report found by the department to be incomplete, not validated, unattested, or incongruent with known characteristics of water system operations. A water supplier shall resubmit a completed water loss audit report within 90 days of an audit being returned by the department.(g)(f) The department shall post all validated water loss audit reports on its Internet Web site in a manner that allows for comparisons across water suppliers. The department shall make the validated water loss audit reports available for public viewing in a timely manner after their receipt.(h)(g) Using available funds, the department shall provide technical assistance to guide urban retail water suppliers water loss detection programs, including, but not limited to, metering techniques, pressure management techniques, condition-based assessment techniques for transmission and distribution pipelines, and utilization of portable and permanent water loss detection devices.(i)(h) (1) No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. In adopting these rules, the board shall employ full life-cycle cost accounting to evaluate the costs of meeting the performance standards. The board may consider establishing a minimum allowable water loss threshold that, if reached and maintained by an urban water supplier, would exempt the urban water supplier from further water loss reduction requirements.(2) In adopting the rules described in paragraph (1), the board shall also adopt protocols to be used by each 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.

 Amended IN  Assembly  April 03, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 3206Introduced by Assembly Member FriedmanFebruary 16, 2018 An act to add Section 25401.8 to the Public Resources Code, and to add Sections 525.5 and 529.6 to amend Section 10608.34 of the Water Code, relating to water conservation. LEGISLATIVE COUNSEL'S DIGESTAB 3206, as amended, Friedman. Water conservation: water meters: accuracy and performance standards.(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.(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. (2)TheThe 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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Assembly  April 03, 2018

Amended IN  Assembly  April 03, 2018

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 3206

Introduced by Assembly Member FriedmanFebruary 16, 2018

Introduced by Assembly Member Friedman
February 16, 2018

 An act to add Section 25401.8 to the Public Resources Code, and to add Sections 525.5 and 529.6 to amend Section 10608.34 of the Water Code, relating to water conservation. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 3206, as amended, Friedman. Water conservation: water meters: accuracy and performance standards.

(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.(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. (2)TheThe 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 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.

(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. 

(2)The



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.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 25401.8 is added to the Public Resources Code, to read:25401.8. (a) (1) On or before January 1, 2020, the commission shall 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 described in Article 3.5 (commencing with Section 525) of Chapter 8 of Division 1 of the Water Code. The regulations shall 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 following the effective date of the regulations, as deemed appropriate by the commission. For(2) For purposes of this section, water meter water meter has the same meaning as in Section 516 of the Water Code.(b) Paragraph (3) of subdivision (b) of, and paragraph (1) of subdivision (c) of, Section 25402 shall not apply to the regulations adopted under this section.SEC. 2.Section 525.5 is added to the Water Code, to read:525.5.On or before January 1, 2021, the State Water Resources Control Board shall establish, by regulation, requirements for accuracy testing of installed water meters.SEC. 3.Section 529.6 is added to the Water Code, to read:529.6.On or before January 1, 2020, the State Water Resources Control Board shall, by regulation, adopt protocols to be used by each 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.SEC. 2. Section 10608.34 of the Water Code is amended to read:10608.34. (a) (1) On or before January 1, 2017, the department shall adopt rules for all of the following:(A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0.(B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, validating is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water suppliers water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation.(C) The technical qualifications required of a person to engage in validation, as described in subparagraph (B).(D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report.(E) The method of submitting a water loss audit report to the department.(2) The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software.(b) On or before October 1, 2017, and on or before October 1 of each year thereafter, year, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a). Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision (c).(c)Using funds available for the 201617 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers.(d)(c) Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses.(e)(d) At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department:(1) The chief financial officer.(2) The chief engineer.(3) The general manager.(f)(e) The department shall deem incomplete and return to the urban retail water supplier any final water loss audit report found by the department to be incomplete, not validated, unattested, or incongruent with known characteristics of water system operations. A water supplier shall resubmit a completed water loss audit report within 90 days of an audit being returned by the department.(g)(f) The department shall post all validated water loss audit reports on its Internet Web site in a manner that allows for comparisons across water suppliers. The department shall make the validated water loss audit reports available for public viewing in a timely manner after their receipt.(h)(g) Using available funds, the department shall provide technical assistance to guide urban retail water suppliers water loss detection programs, including, but not limited to, metering techniques, pressure management techniques, condition-based assessment techniques for transmission and distribution pipelines, and utilization of portable and permanent water loss detection devices.(i)(h) (1) No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. In adopting these rules, the board shall employ full life-cycle cost accounting to evaluate the costs of meeting the performance standards. The board may consider establishing a minimum allowable water loss threshold that, if reached and maintained by an urban water supplier, would exempt the urban water supplier from further water loss reduction requirements.(2) In adopting the rules described in paragraph (1), the board shall also adopt protocols to be used by each 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.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 25401.8 is added to the Public Resources Code, to read:25401.8. (a) (1) On or before January 1, 2020, the commission shall 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 described in Article 3.5 (commencing with Section 525) of Chapter 8 of Division 1 of the Water Code. The regulations shall 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 following the effective date of the regulations, as deemed appropriate by the commission. For(2) For purposes of this section, water meter water meter has the same meaning as in Section 516 of the Water Code.(b) Paragraph (3) of subdivision (b) of, and paragraph (1) of subdivision (c) of, Section 25402 shall not apply to the regulations adopted under this section.

SECTION 1. Section 25401.8 is added to the Public Resources Code, to read:

### SECTION 1.

25401.8. (a) (1) On or before January 1, 2020, the commission shall 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 described in Article 3.5 (commencing with Section 525) of Chapter 8 of Division 1 of the Water Code. The regulations shall 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 following the effective date of the regulations, as deemed appropriate by the commission. For(2) For purposes of this section, water meter water meter has the same meaning as in Section 516 of the Water Code.(b) Paragraph (3) of subdivision (b) of, and paragraph (1) of subdivision (c) of, Section 25402 shall not apply to the regulations adopted under this section.

25401.8. (a) (1) On or before January 1, 2020, the commission shall 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 described in Article 3.5 (commencing with Section 525) of Chapter 8 of Division 1 of the Water Code. The regulations shall 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 following the effective date of the regulations, as deemed appropriate by the commission. For(2) For purposes of this section, water meter water meter has the same meaning as in Section 516 of the Water Code.(b) Paragraph (3) of subdivision (b) of, and paragraph (1) of subdivision (c) of, Section 25402 shall not apply to the regulations adopted under this section.

25401.8. (a) (1) On or before January 1, 2020, the commission shall 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 described in Article 3.5 (commencing with Section 525) of Chapter 8 of Division 1 of the Water Code. The regulations shall 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 following the effective date of the regulations, as deemed appropriate by the commission. For(2) For purposes of this section, water meter water meter has the same meaning as in Section 516 of the Water Code.(b) Paragraph (3) of subdivision (b) of, and paragraph (1) of subdivision (c) of, Section 25402 shall not apply to the regulations adopted under this section.



25401.8. (a) (1) On or before January 1, 2020, the commission shall 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 described in Article 3.5 (commencing with Section 525) of Chapter 8 of Division 1 of the Water Code. The regulations shall 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 following the effective date of the regulations, as deemed appropriate by the commission. For

(2) For purposes of this section, water meter water meter has the same meaning as in Section 516 of the Water Code.

(b) Paragraph (3) of subdivision (b) of, and paragraph (1) of subdivision (c) of, Section 25402 shall not apply to the regulations adopted under this section.





On or before January 1, 2021, the State Water Resources Control Board shall establish, by regulation, requirements for accuracy testing of installed water meters.







On or before January 1, 2020, the State Water Resources Control Board shall, by regulation, adopt protocols to be used by each 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.



SEC. 2. Section 10608.34 of the Water Code is amended to read:10608.34. (a) (1) On or before January 1, 2017, the department shall adopt rules for all of the following:(A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0.(B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, validating is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water suppliers water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation.(C) The technical qualifications required of a person to engage in validation, as described in subparagraph (B).(D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report.(E) The method of submitting a water loss audit report to the department.(2) The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software.(b) On or before October 1, 2017, and on or before October 1 of each year thereafter, year, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a). Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision (c).(c)Using funds available for the 201617 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers.(d)(c) Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses.(e)(d) At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department:(1) The chief financial officer.(2) The chief engineer.(3) The general manager.(f)(e) The department shall deem incomplete and return to the urban retail water supplier any final water loss audit report found by the department to be incomplete, not validated, unattested, or incongruent with known characteristics of water system operations. A water supplier shall resubmit a completed water loss audit report within 90 days of an audit being returned by the department.(g)(f) The department shall post all validated water loss audit reports on its Internet Web site in a manner that allows for comparisons across water suppliers. The department shall make the validated water loss audit reports available for public viewing in a timely manner after their receipt.(h)(g) Using available funds, the department shall provide technical assistance to guide urban retail water suppliers water loss detection programs, including, but not limited to, metering techniques, pressure management techniques, condition-based assessment techniques for transmission and distribution pipelines, and utilization of portable and permanent water loss detection devices.(i)(h) (1) No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. In adopting these rules, the board shall employ full life-cycle cost accounting to evaluate the costs of meeting the performance standards. The board may consider establishing a minimum allowable water loss threshold that, if reached and maintained by an urban water supplier, would exempt the urban water supplier from further water loss reduction requirements.(2) In adopting the rules described in paragraph (1), the board shall also adopt protocols to be used by each 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.

SEC. 2. Section 10608.34 of the Water Code is amended to read:

### SEC. 2.

10608.34. (a) (1) On or before January 1, 2017, the department shall adopt rules for all of the following:(A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0.(B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, validating is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water suppliers water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation.(C) The technical qualifications required of a person to engage in validation, as described in subparagraph (B).(D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report.(E) The method of submitting a water loss audit report to the department.(2) The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software.(b) On or before October 1, 2017, and on or before October 1 of each year thereafter, year, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a). Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision (c).(c)Using funds available for the 201617 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers.(d)(c) Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses.(e)(d) At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department:(1) The chief financial officer.(2) The chief engineer.(3) The general manager.(f)(e) The department shall deem incomplete and return to the urban retail water supplier any final water loss audit report found by the department to be incomplete, not validated, unattested, or incongruent with known characteristics of water system operations. A water supplier shall resubmit a completed water loss audit report within 90 days of an audit being returned by the department.(g)(f) The department shall post all validated water loss audit reports on its Internet Web site in a manner that allows for comparisons across water suppliers. The department shall make the validated water loss audit reports available for public viewing in a timely manner after their receipt.(h)(g) Using available funds, the department shall provide technical assistance to guide urban retail water suppliers water loss detection programs, including, but not limited to, metering techniques, pressure management techniques, condition-based assessment techniques for transmission and distribution pipelines, and utilization of portable and permanent water loss detection devices.(i)(h) (1) No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. In adopting these rules, the board shall employ full life-cycle cost accounting to evaluate the costs of meeting the performance standards. The board may consider establishing a minimum allowable water loss threshold that, if reached and maintained by an urban water supplier, would exempt the urban water supplier from further water loss reduction requirements.(2) In adopting the rules described in paragraph (1), the board shall also adopt protocols to be used by each 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.

10608.34. (a) (1) On or before January 1, 2017, the department shall adopt rules for all of the following:(A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0.(B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, validating is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water suppliers water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation.(C) The technical qualifications required of a person to engage in validation, as described in subparagraph (B).(D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report.(E) The method of submitting a water loss audit report to the department.(2) The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software.(b) On or before October 1, 2017, and on or before October 1 of each year thereafter, year, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a). Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision (c).(c)Using funds available for the 201617 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers.(d)(c) Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses.(e)(d) At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department:(1) The chief financial officer.(2) The chief engineer.(3) The general manager.(f)(e) The department shall deem incomplete and return to the urban retail water supplier any final water loss audit report found by the department to be incomplete, not validated, unattested, or incongruent with known characteristics of water system operations. A water supplier shall resubmit a completed water loss audit report within 90 days of an audit being returned by the department.(g)(f) The department shall post all validated water loss audit reports on its Internet Web site in a manner that allows for comparisons across water suppliers. The department shall make the validated water loss audit reports available for public viewing in a timely manner after their receipt.(h)(g) Using available funds, the department shall provide technical assistance to guide urban retail water suppliers water loss detection programs, including, but not limited to, metering techniques, pressure management techniques, condition-based assessment techniques for transmission and distribution pipelines, and utilization of portable and permanent water loss detection devices.(i)(h) (1) No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. In adopting these rules, the board shall employ full life-cycle cost accounting to evaluate the costs of meeting the performance standards. The board may consider establishing a minimum allowable water loss threshold that, if reached and maintained by an urban water supplier, would exempt the urban water supplier from further water loss reduction requirements.(2) In adopting the rules described in paragraph (1), the board shall also adopt protocols to be used by each 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.

10608.34. (a) (1) On or before January 1, 2017, the department shall adopt rules for all of the following:(A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0.(B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, validating is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water suppliers water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation.(C) The technical qualifications required of a person to engage in validation, as described in subparagraph (B).(D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report.(E) The method of submitting a water loss audit report to the department.(2) The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software.(b) On or before October 1, 2017, and on or before October 1 of each year thereafter, year, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a). Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision (c).(c)Using funds available for the 201617 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers.(d)(c) Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses.(e)(d) At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department:(1) The chief financial officer.(2) The chief engineer.(3) The general manager.(f)(e) The department shall deem incomplete and return to the urban retail water supplier any final water loss audit report found by the department to be incomplete, not validated, unattested, or incongruent with known characteristics of water system operations. A water supplier shall resubmit a completed water loss audit report within 90 days of an audit being returned by the department.(g)(f) The department shall post all validated water loss audit reports on its Internet Web site in a manner that allows for comparisons across water suppliers. The department shall make the validated water loss audit reports available for public viewing in a timely manner after their receipt.(h)(g) Using available funds, the department shall provide technical assistance to guide urban retail water suppliers water loss detection programs, including, but not limited to, metering techniques, pressure management techniques, condition-based assessment techniques for transmission and distribution pipelines, and utilization of portable and permanent water loss detection devices.(i)(h) (1) No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. In adopting these rules, the board shall employ full life-cycle cost accounting to evaluate the costs of meeting the performance standards. The board may consider establishing a minimum allowable water loss threshold that, if reached and maintained by an urban water supplier, would exempt the urban water supplier from further water loss reduction requirements.(2) In adopting the rules described in paragraph (1), the board shall also adopt protocols to be used by each 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.



10608.34. (a) (1) On or before January 1, 2017, the department shall adopt rules for all of the following:

(A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0.

(B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, validating is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water suppliers water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation.

(C) The technical qualifications required of a person to engage in validation, as described in subparagraph (B).

(D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report.

(E) The method of submitting a water loss audit report to the department.

(2) The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Associations Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software.

(b) On or before October 1, 2017, and on or before October 1 of each year thereafter, year, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a). Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision (c).

(c)Using funds available for the 201617 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers.



(d)



(c) Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses.

(e)



(d) At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department:

(1) The chief financial officer.

(2) The chief engineer.

(3) The general manager.

(f)



(e) The department shall deem incomplete and return to the urban retail water supplier any final water loss audit report found by the department to be incomplete, not validated, unattested, or incongruent with known characteristics of water system operations. A water supplier shall resubmit a completed water loss audit report within 90 days of an audit being returned by the department.

(g)



(f) The department shall post all validated water loss audit reports on its Internet Web site in a manner that allows for comparisons across water suppliers. The department shall make the validated water loss audit reports available for public viewing in a timely manner after their receipt.

(h)



(g) Using available funds, the department shall provide technical assistance to guide urban retail water suppliers water loss detection programs, including, but not limited to, metering techniques, pressure management techniques, condition-based assessment techniques for transmission and distribution pipelines, and utilization of portable and permanent water loss detection devices.

(i)



(h) (1) No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. In adopting these rules, the board shall employ full life-cycle cost accounting to evaluate the costs of meeting the performance standards. The board may consider establishing a minimum allowable water loss threshold that, if reached and maintained by an urban water supplier, would exempt the urban water supplier from further water loss reduction requirements.

(2) In adopting the rules described in paragraph (1), the board shall also adopt protocols to be used by each 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.