Amended IN Senate August 24, 2017 Amended IN Senate July 03, 2017 Amended IN Assembly May 15, 2017 Amended IN Assembly March 28, 2017 Amended IN Assembly March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 869Introduced by Assembly Member RubioFebruary 16, 2017 An act to add Sections 1058.6, 10609.1, and 13551.5 to the Water Code, relating to water. LEGISLATIVE COUNSEL'S DIGESTAB 869, as amended, Rubio. Sustainable water use and demand reduction: recycled water.(1) Existing law imposes various water use reduction requirements that apply to urban retail water suppliers, including a requirement that the state achieve a 20% reduction in urban per capita water use by December 31, 2020.This bill would require the State Water Resources Control Board, in consultation with the Department of Water Resources, to adopt long-term standards for urban water conservation and water use by May 20, 2021. The bill would require the department, in coordination with the board, no later than October 1, 2020, to conduct necessary studies and investigations and recommend standards for indoor residential use and outdoor irrigation use for adoption by the board and would require the department to update these recommendations after 2026 in years ending in 2 and 7. The bill would require the board, in consultation with the department, to adopt performance measures for commercial, industrial, and institutional water use to produce measurable water use efficiency improvements, as specified, by May 20, 2021. The bill, after 2026 in years ending in 2 and 7, would require the board and the department to consider updating the long-term standards for urban water conservation and water use and the commercial, industrial, and institutional performance measures.This bill would require long-term standards for urban water conservation and water use to include a credit for recycled water, as specified.(2) Existing provisions of the California Constitution declare the policy that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of these waters is to be exercised with a view to the reasonable and beneficial use of the waters in the interest of the people and for the public welfare. Existing law declares that the use of potable domestic water for certain nonpotable uses is a waste or an unreasonable use of water if recycled water is available, as determined by the State Water Resources Control Board, and other requirements are met.Existing law, the California Emergency Services Act, sets forth the emergency powers of the Governor under its provisions and empowers the Governor to proclaim a state of emergency for certain conditions, including drought. Existing law authorizes the governing body of a distributor of a public water supply to declare a water shortage emergency condition to prevail within the area served by the distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection. Existing law provides for certain water conservation measures to be taken during prescribed periods, including when the Governor has proclaimed a state of emergency based on drought or when the governing body of a distributor of a public water supply has declared a water shortage emergency condition.This bill would state the intent of the Legislature in enacting this measure to, among other things, encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state. The bill would state that water conservation does not include curtailment of use of recycled water. The bill would prohibit an urban retail water supplier from being required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses during a period when water conservation measures are in effect.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 1058.6 is added to the Water Code, to read:1058.6. Water conservation does not include curtailment of use of recycled water.SEC. 2. Section 10609.1 is added to the Water Code, to read:10609.1.(a)The board, in consultation with the department, shall adopt long-term standards for urban water conservation and water use by May 20, 2021. The standards shall include, but are not limited to, standards for both of the following:(1)Indoor residential water use.(2)Outdoor irrigation in connection with domestic, commercial, industrial, or institutional water use.(b)By May 20, 2021, the board, in consultation with the department, shall adopt performance measures for commercial, industrial, and institutional water use designed to produce measurable water use efficiency improvements and that build upon industry best practices, use of innovative technologies, and existing data on cost-effectiveness. Performance measures shall include, but are not limited to, water audits, converting mixed commercial, industrial, and institutional water irrigation accounts to dedicated irrigation meters, and water management planning.(c)Urban water suppliers shall do both of the following:(1)Calculate a water use target, in accordance with regulations adopted by the board pursuant to subdivision (a), no later than July 1, beginning the calendar year after the board adopts the standards. Each urban water suppliers water use target shall be comprised of an indoor residential volume, an outdoor irrigation volume, and a volume for water loss as specified in Section 10608.34. The outdoor irrigation volume shall exclude potable water for agricultural use as defined in subdivision (b) of Section 51201 of the Government Code.(2)Annually submit a report to the department by July 1, beginning the calendar year after the board adopts standards pursuant to subdivision (a). The report shall describe the suppliers calculated water use target, actual water use consistent with criteria described in paragraph (1), documentation of commercial, industrial, and institutional performance measure implementation, and a narrative describing progress made towards meeting the target. The department shall post the reports and information on its Internet Web site.(d)(1)The department, in coordination with the board, shall conduct necessary studies and investigations and recommend, no later than October 1, 2020, standards for indoor residential use and outdoor irrigation for adoption by the board in accordance with this chapter. After 2026, the department shall recommend updates to its initial recommendation to the board in years ending in 2 and 7 to allow for consideration by the board in accordance with subdivision (h).(2)In recommending standards pursuant to this subdivision, the department, in coordination with the board, shall develop guidelines and methodologies as necessary for calculating irrigable landscape area, irrigated landscape area, and indoor water use for the board to consider in adoption of the standards.(e)(1)Before setting performance measures for commercial, industrial, and institutional water use, the department, in coordination with the board, shall solicit broad public participation relating to all of the following:(A)Recommendations for a commercial, industrial, and institutional classification system for California.(B)Recommendations for setting minimum size thresholds for converting mixed commercial, industrial, and institutional meters to dedicated irrigation meters, and evaluating and recommending technologies that could be used in lieu of requiring dedicated irrigation meters.(C)Recommendations for commercial, industrial, and institutional best management practices, including, but not limited to, water audits and water management plans for commercial, industrial, and institutional customers over a recommended size, volume, or other threshold.(2)In their solicitation for public participation pursuant to paragraph (1), the department and the board shall invite representatives from throughout the state, including at least one representative from each hydrologic region, representing the following categories:(A)Urban retail water suppliers, including combined retail water and wastewater agencies.(B)Urban wholesale water suppliers.(C)Academic experts.(D)Economic development interests.(E)Business community representatives.(F)Environmental and environmental justice organizations.(G)Commercial water users.(H)Industrial water users.(I)Institutional water users.(3)Recommendations of appropriate performance measures for commercial, industrial, or institutional water use shall consider the 2013 report to the Legislature by the commercial, industrial, and institutional task force entitled, Water Use Best Management Practices, and shall support the economic productivity of Californias commercial, industrial, and institutional sectors.(f)Standards10609.1. Long-term standards for urban water conservation and water use adopted by the board direction of statute after January 1, 2018, shall include a credit for recycled water as set forth below:(1)(a) For the an outdoor irrigation standard, nonpotable recycled water shall be given a special landscape allowance as set forth in the departments Model Water Efficient Landscape Ordinance, except that the allowance shall include a variance to the standard that allows recycled water to be applied at an agronomic rate that is a rate of application of recycled water that is necessary to satisfy the watering and nutritional requirements of the plants and is in compliance with any applicable salt and nutrient management plan.(2)A(b) An urban water supplier shall receive a credit for the volume of its potable water reuse, on an acre-foot basis, to meet its target. water use target.(g)The department and the board shall solicit broad public participation relating to the development of the long-term standards for urban water conservation and use. In the solicitation for public participation for the purposes of this section, the department and the board shall invite representatives of small, medium, and large urban retail water suppliers from throughout the state, including at least one representative from each hydrologic region, academic experts, urban water wholesalers, urban water suppliers, business organizations, environmental and environmental justice organizations, and combined retail water and wastewater agencies.(h)(1)After 2026, the board and the department shall consider, in years ending in two and seven, whether the board should update long-term standards for urban water conservation and water use and commercial, industrial, and institutional performance measures. Before proposing new standards for board adoption, the department and the board shall solicit broad public participation as described in subdivision (g).(2)The department and the board may conduct additional studies, pilot projects, and other necessary actions in order to determine whether to update standards and commercial, industrial, or institutional performance measures.(i)Notwithstanding Section 15300.2 of Title 14 of the California Code of Regulations, an action of the board taken under this chapter shall be deemed to be a Class 8 action, within the meaning of Section 15308 of Title 14 of the California Code of Regulations, if the action does not involve relaxation of existing water conservation or water use standards.SEC. 3. Section 13551.5 is added to the Water Code, to read:13551.5. (a) It is the intent of the Legislature in enacting Assembly Bill 869 of the 201617 Regular Session to do all of the following:(1) Encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state.(2) Encourage new investment and protect existing local investments made by urban water suppliers in drought resiliency and drought resilient supplies, including investment in recycled water and potable reuse, in order to better prepare local communities and the state for periods of drought and shortage.(3) Expand the volume of water recycled to put to beneficial use in the state through new investments in water recycling.(4) Recognize that federal and state regulation of recycled water requires efficient use of recycled water and prohibits overuse.(5) Encourage local agencies to take steps to prepare for the effects of climate change.(b) An urban retail water supplier shall not be required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses (1) during a period for which the Governor has issued a proclamation of a state of emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on statewide or local drought conditions, (2) pursuant to Chapter 3.3 (commencing with Section 365) of Division 1, or (3) during a water shortage emergency condition pursuant to Chapter 3 (commencing with Section 350) of Division 1.(c) For purposes of this section, urban retail water supplier and recycled water have the same meanings as provided in Section 10608.12.(b)(d) Nothing in this section shall be construed to supersede, diminish, alter, impair, or otherwise affect any existing rights, including, but not limited to, existing legal protections, both procedural and substantive, under water rights law. Amended IN Senate August 24, 2017 Amended IN Senate July 03, 2017 Amended IN Assembly May 15, 2017 Amended IN Assembly March 28, 2017 Amended IN Assembly March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 869Introduced by Assembly Member RubioFebruary 16, 2017 An act to add Sections 1058.6, 10609.1, and 13551.5 to the Water Code, relating to water. LEGISLATIVE COUNSEL'S DIGESTAB 869, as amended, Rubio. Sustainable water use and demand reduction: recycled water.(1) Existing law imposes various water use reduction requirements that apply to urban retail water suppliers, including a requirement that the state achieve a 20% reduction in urban per capita water use by December 31, 2020.This bill would require the State Water Resources Control Board, in consultation with the Department of Water Resources, to adopt long-term standards for urban water conservation and water use by May 20, 2021. The bill would require the department, in coordination with the board, no later than October 1, 2020, to conduct necessary studies and investigations and recommend standards for indoor residential use and outdoor irrigation use for adoption by the board and would require the department to update these recommendations after 2026 in years ending in 2 and 7. The bill would require the board, in consultation with the department, to adopt performance measures for commercial, industrial, and institutional water use to produce measurable water use efficiency improvements, as specified, by May 20, 2021. The bill, after 2026 in years ending in 2 and 7, would require the board and the department to consider updating the long-term standards for urban water conservation and water use and the commercial, industrial, and institutional performance measures.This bill would require long-term standards for urban water conservation and water use to include a credit for recycled water, as specified.(2) Existing provisions of the California Constitution declare the policy that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of these waters is to be exercised with a view to the reasonable and beneficial use of the waters in the interest of the people and for the public welfare. Existing law declares that the use of potable domestic water for certain nonpotable uses is a waste or an unreasonable use of water if recycled water is available, as determined by the State Water Resources Control Board, and other requirements are met.Existing law, the California Emergency Services Act, sets forth the emergency powers of the Governor under its provisions and empowers the Governor to proclaim a state of emergency for certain conditions, including drought. Existing law authorizes the governing body of a distributor of a public water supply to declare a water shortage emergency condition to prevail within the area served by the distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection. Existing law provides for certain water conservation measures to be taken during prescribed periods, including when the Governor has proclaimed a state of emergency based on drought or when the governing body of a distributor of a public water supply has declared a water shortage emergency condition.This bill would state the intent of the Legislature in enacting this measure to, among other things, encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state. The bill would state that water conservation does not include curtailment of use of recycled water. The bill would prohibit an urban retail water supplier from being required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses during a period when water conservation measures are in effect.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Amended IN Senate August 24, 2017 Amended IN Senate July 03, 2017 Amended IN Assembly May 15, 2017 Amended IN Assembly March 28, 2017 Amended IN Assembly March 23, 2017 Amended IN Senate August 24, 2017 Amended IN Senate July 03, 2017 Amended IN Assembly May 15, 2017 Amended IN Assembly March 28, 2017 Amended IN Assembly March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 869 Introduced by Assembly Member RubioFebruary 16, 2017 Introduced by Assembly Member Rubio February 16, 2017 An act to add Sections 1058.6, 10609.1, and 13551.5 to the Water Code, relating to water. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 869, as amended, Rubio. Sustainable water use and demand reduction: recycled water. (1) Existing law imposes various water use reduction requirements that apply to urban retail water suppliers, including a requirement that the state achieve a 20% reduction in urban per capita water use by December 31, 2020.This bill would require the State Water Resources Control Board, in consultation with the Department of Water Resources, to adopt long-term standards for urban water conservation and water use by May 20, 2021. The bill would require the department, in coordination with the board, no later than October 1, 2020, to conduct necessary studies and investigations and recommend standards for indoor residential use and outdoor irrigation use for adoption by the board and would require the department to update these recommendations after 2026 in years ending in 2 and 7. The bill would require the board, in consultation with the department, to adopt performance measures for commercial, industrial, and institutional water use to produce measurable water use efficiency improvements, as specified, by May 20, 2021. The bill, after 2026 in years ending in 2 and 7, would require the board and the department to consider updating the long-term standards for urban water conservation and water use and the commercial, industrial, and institutional performance measures.This bill would require long-term standards for urban water conservation and water use to include a credit for recycled water, as specified.(2) Existing provisions of the California Constitution declare the policy that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of these waters is to be exercised with a view to the reasonable and beneficial use of the waters in the interest of the people and for the public welfare. Existing law declares that the use of potable domestic water for certain nonpotable uses is a waste or an unreasonable use of water if recycled water is available, as determined by the State Water Resources Control Board, and other requirements are met.Existing law, the California Emergency Services Act, sets forth the emergency powers of the Governor under its provisions and empowers the Governor to proclaim a state of emergency for certain conditions, including drought. Existing law authorizes the governing body of a distributor of a public water supply to declare a water shortage emergency condition to prevail within the area served by the distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection. Existing law provides for certain water conservation measures to be taken during prescribed periods, including when the Governor has proclaimed a state of emergency based on drought or when the governing body of a distributor of a public water supply has declared a water shortage emergency condition.This bill would state the intent of the Legislature in enacting this measure to, among other things, encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state. The bill would state that water conservation does not include curtailment of use of recycled water. The bill would prohibit an urban retail water supplier from being required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses during a period when water conservation measures are in effect. (1) Existing law imposes various water use reduction requirements that apply to urban retail water suppliers, including a requirement that the state achieve a 20% reduction in urban per capita water use by December 31, 2020. This bill would require the State Water Resources Control Board, in consultation with the Department of Water Resources, to adopt long-term standards for urban water conservation and water use by May 20, 2021. The bill would require the department, in coordination with the board, no later than October 1, 2020, to conduct necessary studies and investigations and recommend standards for indoor residential use and outdoor irrigation use for adoption by the board and would require the department to update these recommendations after 2026 in years ending in 2 and 7. The bill would require the board, in consultation with the department, to adopt performance measures for commercial, industrial, and institutional water use to produce measurable water use efficiency improvements, as specified, by May 20, 2021. The bill, after 2026 in years ending in 2 and 7, would require the board and the department to consider updating the long-term standards for urban water conservation and water use and the commercial, industrial, and institutional performance measures. This bill would require long-term standards for urban water conservation and water use to include a credit for recycled water, as specified. (2) Existing provisions of the California Constitution declare the policy that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of these waters is to be exercised with a view to the reasonable and beneficial use of the waters in the interest of the people and for the public welfare. Existing law declares that the use of potable domestic water for certain nonpotable uses is a waste or an unreasonable use of water if recycled water is available, as determined by the State Water Resources Control Board, and other requirements are met. Existing law, the California Emergency Services Act, sets forth the emergency powers of the Governor under its provisions and empowers the Governor to proclaim a state of emergency for certain conditions, including drought. Existing law authorizes the governing body of a distributor of a public water supply to declare a water shortage emergency condition to prevail within the area served by the distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection. Existing law provides for certain water conservation measures to be taken during prescribed periods, including when the Governor has proclaimed a state of emergency based on drought or when the governing body of a distributor of a public water supply has declared a water shortage emergency condition. This bill would state the intent of the Legislature in enacting this measure to, among other things, encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state. The bill would state that water conservation does not include curtailment of use of recycled water. The bill would prohibit an urban retail water supplier from being required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses during a period when water conservation measures are in effect. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 1058.6 is added to the Water Code, to read:1058.6. Water conservation does not include curtailment of use of recycled water.SEC. 2. Section 10609.1 is added to the Water Code, to read:10609.1.(a)The board, in consultation with the department, shall adopt long-term standards for urban water conservation and water use by May 20, 2021. The standards shall include, but are not limited to, standards for both of the following:(1)Indoor residential water use.(2)Outdoor irrigation in connection with domestic, commercial, industrial, or institutional water use.(b)By May 20, 2021, the board, in consultation with the department, shall adopt performance measures for commercial, industrial, and institutional water use designed to produce measurable water use efficiency improvements and that build upon industry best practices, use of innovative technologies, and existing data on cost-effectiveness. Performance measures shall include, but are not limited to, water audits, converting mixed commercial, industrial, and institutional water irrigation accounts to dedicated irrigation meters, and water management planning.(c)Urban water suppliers shall do both of the following:(1)Calculate a water use target, in accordance with regulations adopted by the board pursuant to subdivision (a), no later than July 1, beginning the calendar year after the board adopts the standards. Each urban water suppliers water use target shall be comprised of an indoor residential volume, an outdoor irrigation volume, and a volume for water loss as specified in Section 10608.34. The outdoor irrigation volume shall exclude potable water for agricultural use as defined in subdivision (b) of Section 51201 of the Government Code.(2)Annually submit a report to the department by July 1, beginning the calendar year after the board adopts standards pursuant to subdivision (a). The report shall describe the suppliers calculated water use target, actual water use consistent with criteria described in paragraph (1), documentation of commercial, industrial, and institutional performance measure implementation, and a narrative describing progress made towards meeting the target. The department shall post the reports and information on its Internet Web site.(d)(1)The department, in coordination with the board, shall conduct necessary studies and investigations and recommend, no later than October 1, 2020, standards for indoor residential use and outdoor irrigation for adoption by the board in accordance with this chapter. After 2026, the department shall recommend updates to its initial recommendation to the board in years ending in 2 and 7 to allow for consideration by the board in accordance with subdivision (h).(2)In recommending standards pursuant to this subdivision, the department, in coordination with the board, shall develop guidelines and methodologies as necessary for calculating irrigable landscape area, irrigated landscape area, and indoor water use for the board to consider in adoption of the standards.(e)(1)Before setting performance measures for commercial, industrial, and institutional water use, the department, in coordination with the board, shall solicit broad public participation relating to all of the following:(A)Recommendations for a commercial, industrial, and institutional classification system for California.(B)Recommendations for setting minimum size thresholds for converting mixed commercial, industrial, and institutional meters to dedicated irrigation meters, and evaluating and recommending technologies that could be used in lieu of requiring dedicated irrigation meters.(C)Recommendations for commercial, industrial, and institutional best management practices, including, but not limited to, water audits and water management plans for commercial, industrial, and institutional customers over a recommended size, volume, or other threshold.(2)In their solicitation for public participation pursuant to paragraph (1), the department and the board shall invite representatives from throughout the state, including at least one representative from each hydrologic region, representing the following categories:(A)Urban retail water suppliers, including combined retail water and wastewater agencies.(B)Urban wholesale water suppliers.(C)Academic experts.(D)Economic development interests.(E)Business community representatives.(F)Environmental and environmental justice organizations.(G)Commercial water users.(H)Industrial water users.(I)Institutional water users.(3)Recommendations of appropriate performance measures for commercial, industrial, or institutional water use shall consider the 2013 report to the Legislature by the commercial, industrial, and institutional task force entitled, Water Use Best Management Practices, and shall support the economic productivity of Californias commercial, industrial, and institutional sectors.(f)Standards10609.1. Long-term standards for urban water conservation and water use adopted by the board direction of statute after January 1, 2018, shall include a credit for recycled water as set forth below:(1)(a) For the an outdoor irrigation standard, nonpotable recycled water shall be given a special landscape allowance as set forth in the departments Model Water Efficient Landscape Ordinance, except that the allowance shall include a variance to the standard that allows recycled water to be applied at an agronomic rate that is a rate of application of recycled water that is necessary to satisfy the watering and nutritional requirements of the plants and is in compliance with any applicable salt and nutrient management plan.(2)A(b) An urban water supplier shall receive a credit for the volume of its potable water reuse, on an acre-foot basis, to meet its target. water use target.(g)The department and the board shall solicit broad public participation relating to the development of the long-term standards for urban water conservation and use. In the solicitation for public participation for the purposes of this section, the department and the board shall invite representatives of small, medium, and large urban retail water suppliers from throughout the state, including at least one representative from each hydrologic region, academic experts, urban water wholesalers, urban water suppliers, business organizations, environmental and environmental justice organizations, and combined retail water and wastewater agencies.(h)(1)After 2026, the board and the department shall consider, in years ending in two and seven, whether the board should update long-term standards for urban water conservation and water use and commercial, industrial, and institutional performance measures. Before proposing new standards for board adoption, the department and the board shall solicit broad public participation as described in subdivision (g).(2)The department and the board may conduct additional studies, pilot projects, and other necessary actions in order to determine whether to update standards and commercial, industrial, or institutional performance measures.(i)Notwithstanding Section 15300.2 of Title 14 of the California Code of Regulations, an action of the board taken under this chapter shall be deemed to be a Class 8 action, within the meaning of Section 15308 of Title 14 of the California Code of Regulations, if the action does not involve relaxation of existing water conservation or water use standards.SEC. 3. Section 13551.5 is added to the Water Code, to read:13551.5. (a) It is the intent of the Legislature in enacting Assembly Bill 869 of the 201617 Regular Session to do all of the following:(1) Encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state.(2) Encourage new investment and protect existing local investments made by urban water suppliers in drought resiliency and drought resilient supplies, including investment in recycled water and potable reuse, in order to better prepare local communities and the state for periods of drought and shortage.(3) Expand the volume of water recycled to put to beneficial use in the state through new investments in water recycling.(4) Recognize that federal and state regulation of recycled water requires efficient use of recycled water and prohibits overuse.(5) Encourage local agencies to take steps to prepare for the effects of climate change.(b) An urban retail water supplier shall not be required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses (1) during a period for which the Governor has issued a proclamation of a state of emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on statewide or local drought conditions, (2) pursuant to Chapter 3.3 (commencing with Section 365) of Division 1, or (3) during a water shortage emergency condition pursuant to Chapter 3 (commencing with Section 350) of Division 1.(c) For purposes of this section, urban retail water supplier and recycled water have the same meanings as provided in Section 10608.12.(b)(d) Nothing in this section shall be construed to supersede, diminish, alter, impair, or otherwise affect any existing rights, including, but not limited to, existing legal protections, both procedural and substantive, under water rights law. 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 1058.6 is added to the Water Code, to read:1058.6. Water conservation does not include curtailment of use of recycled water. SECTION 1. Section 1058.6 is added to the Water Code, to read: ### SECTION 1. 1058.6. Water conservation does not include curtailment of use of recycled water. 1058.6. Water conservation does not include curtailment of use of recycled water. 1058.6. Water conservation does not include curtailment of use of recycled water. 1058.6. Water conservation does not include curtailment of use of recycled water. SEC. 2. Section 10609.1 is added to the Water Code, to read:10609.1.(a)The board, in consultation with the department, shall adopt long-term standards for urban water conservation and water use by May 20, 2021. The standards shall include, but are not limited to, standards for both of the following:(1)Indoor residential water use.(2)Outdoor irrigation in connection with domestic, commercial, industrial, or institutional water use.(b)By May 20, 2021, the board, in consultation with the department, shall adopt performance measures for commercial, industrial, and institutional water use designed to produce measurable water use efficiency improvements and that build upon industry best practices, use of innovative technologies, and existing data on cost-effectiveness. Performance measures shall include, but are not limited to, water audits, converting mixed commercial, industrial, and institutional water irrigation accounts to dedicated irrigation meters, and water management planning.(c)Urban water suppliers shall do both of the following:(1)Calculate a water use target, in accordance with regulations adopted by the board pursuant to subdivision (a), no later than July 1, beginning the calendar year after the board adopts the standards. Each urban water suppliers water use target shall be comprised of an indoor residential volume, an outdoor irrigation volume, and a volume for water loss as specified in Section 10608.34. The outdoor irrigation volume shall exclude potable water for agricultural use as defined in subdivision (b) of Section 51201 of the Government Code.(2)Annually submit a report to the department by July 1, beginning the calendar year after the board adopts standards pursuant to subdivision (a). The report shall describe the suppliers calculated water use target, actual water use consistent with criteria described in paragraph (1), documentation of commercial, industrial, and institutional performance measure implementation, and a narrative describing progress made towards meeting the target. The department shall post the reports and information on its Internet Web site.(d)(1)The department, in coordination with the board, shall conduct necessary studies and investigations and recommend, no later than October 1, 2020, standards for indoor residential use and outdoor irrigation for adoption by the board in accordance with this chapter. After 2026, the department shall recommend updates to its initial recommendation to the board in years ending in 2 and 7 to allow for consideration by the board in accordance with subdivision (h).(2)In recommending standards pursuant to this subdivision, the department, in coordination with the board, shall develop guidelines and methodologies as necessary for calculating irrigable landscape area, irrigated landscape area, and indoor water use for the board to consider in adoption of the standards.(e)(1)Before setting performance measures for commercial, industrial, and institutional water use, the department, in coordination with the board, shall solicit broad public participation relating to all of the following:(A)Recommendations for a commercial, industrial, and institutional classification system for California.(B)Recommendations for setting minimum size thresholds for converting mixed commercial, industrial, and institutional meters to dedicated irrigation meters, and evaluating and recommending technologies that could be used in lieu of requiring dedicated irrigation meters.(C)Recommendations for commercial, industrial, and institutional best management practices, including, but not limited to, water audits and water management plans for commercial, industrial, and institutional customers over a recommended size, volume, or other threshold.(2)In their solicitation for public participation pursuant to paragraph (1), the department and the board shall invite representatives from throughout the state, including at least one representative from each hydrologic region, representing the following categories:(A)Urban retail water suppliers, including combined retail water and wastewater agencies.(B)Urban wholesale water suppliers.(C)Academic experts.(D)Economic development interests.(E)Business community representatives.(F)Environmental and environmental justice organizations.(G)Commercial water users.(H)Industrial water users.(I)Institutional water users.(3)Recommendations of appropriate performance measures for commercial, industrial, or institutional water use shall consider the 2013 report to the Legislature by the commercial, industrial, and institutional task force entitled, Water Use Best Management Practices, and shall support the economic productivity of Californias commercial, industrial, and institutional sectors.(f)Standards10609.1. Long-term standards for urban water conservation and water use adopted by the board direction of statute after January 1, 2018, shall include a credit for recycled water as set forth below:(1)(a) For the an outdoor irrigation standard, nonpotable recycled water shall be given a special landscape allowance as set forth in the departments Model Water Efficient Landscape Ordinance, except that the allowance shall include a variance to the standard that allows recycled water to be applied at an agronomic rate that is a rate of application of recycled water that is necessary to satisfy the watering and nutritional requirements of the plants and is in compliance with any applicable salt and nutrient management plan.(2)A(b) An urban water supplier shall receive a credit for the volume of its potable water reuse, on an acre-foot basis, to meet its target. water use target.(g)The department and the board shall solicit broad public participation relating to the development of the long-term standards for urban water conservation and use. In the solicitation for public participation for the purposes of this section, the department and the board shall invite representatives of small, medium, and large urban retail water suppliers from throughout the state, including at least one representative from each hydrologic region, academic experts, urban water wholesalers, urban water suppliers, business organizations, environmental and environmental justice organizations, and combined retail water and wastewater agencies.(h)(1)After 2026, the board and the department shall consider, in years ending in two and seven, whether the board should update long-term standards for urban water conservation and water use and commercial, industrial, and institutional performance measures. Before proposing new standards for board adoption, the department and the board shall solicit broad public participation as described in subdivision (g).(2)The department and the board may conduct additional studies, pilot projects, and other necessary actions in order to determine whether to update standards and commercial, industrial, or institutional performance measures.(i)Notwithstanding Section 15300.2 of Title 14 of the California Code of Regulations, an action of the board taken under this chapter shall be deemed to be a Class 8 action, within the meaning of Section 15308 of Title 14 of the California Code of Regulations, if the action does not involve relaxation of existing water conservation or water use standards. SEC. 2. Section 10609.1 is added to the Water Code, to read: ### SEC. 2. 10609.1.(a)The board, in consultation with the department, shall adopt long-term standards for urban water conservation and water use by May 20, 2021. The standards shall include, but are not limited to, standards for both of the following:(1)Indoor residential water use.(2)Outdoor irrigation in connection with domestic, commercial, industrial, or institutional water use.(b)By May 20, 2021, the board, in consultation with the department, shall adopt performance measures for commercial, industrial, and institutional water use designed to produce measurable water use efficiency improvements and that build upon industry best practices, use of innovative technologies, and existing data on cost-effectiveness. Performance measures shall include, but are not limited to, water audits, converting mixed commercial, industrial, and institutional water irrigation accounts to dedicated irrigation meters, and water management planning.(c)Urban water suppliers shall do both of the following:(1)Calculate a water use target, in accordance with regulations adopted by the board pursuant to subdivision (a), no later than July 1, beginning the calendar year after the board adopts the standards. Each urban water suppliers water use target shall be comprised of an indoor residential volume, an outdoor irrigation volume, and a volume for water loss as specified in Section 10608.34. The outdoor irrigation volume shall exclude potable water for agricultural use as defined in subdivision (b) of Section 51201 of the Government Code.(2)Annually submit a report to the department by July 1, beginning the calendar year after the board adopts standards pursuant to subdivision (a). The report shall describe the suppliers calculated water use target, actual water use consistent with criteria described in paragraph (1), documentation of commercial, industrial, and institutional performance measure implementation, and a narrative describing progress made towards meeting the target. The department shall post the reports and information on its Internet Web site.(d)(1)The department, in coordination with the board, shall conduct necessary studies and investigations and recommend, no later than October 1, 2020, standards for indoor residential use and outdoor irrigation for adoption by the board in accordance with this chapter. After 2026, the department shall recommend updates to its initial recommendation to the board in years ending in 2 and 7 to allow for consideration by the board in accordance with subdivision (h).(2)In recommending standards pursuant to this subdivision, the department, in coordination with the board, shall develop guidelines and methodologies as necessary for calculating irrigable landscape area, irrigated landscape area, and indoor water use for the board to consider in adoption of the standards.(e)(1)Before setting performance measures for commercial, industrial, and institutional water use, the department, in coordination with the board, shall solicit broad public participation relating to all of the following:(A)Recommendations for a commercial, industrial, and institutional classification system for California.(B)Recommendations for setting minimum size thresholds for converting mixed commercial, industrial, and institutional meters to dedicated irrigation meters, and evaluating and recommending technologies that could be used in lieu of requiring dedicated irrigation meters.(C)Recommendations for commercial, industrial, and institutional best management practices, including, but not limited to, water audits and water management plans for commercial, industrial, and institutional customers over a recommended size, volume, or other threshold.(2)In their solicitation for public participation pursuant to paragraph (1), the department and the board shall invite representatives from throughout the state, including at least one representative from each hydrologic region, representing the following categories:(A)Urban retail water suppliers, including combined retail water and wastewater agencies.(B)Urban wholesale water suppliers.(C)Academic experts.(D)Economic development interests.(E)Business community representatives.(F)Environmental and environmental justice organizations.(G)Commercial water users.(H)Industrial water users.(I)Institutional water users.(3)Recommendations of appropriate performance measures for commercial, industrial, or institutional water use shall consider the 2013 report to the Legislature by the commercial, industrial, and institutional task force entitled, Water Use Best Management Practices, and shall support the economic productivity of Californias commercial, industrial, and institutional sectors.(f)Standards10609.1. Long-term standards for urban water conservation and water use adopted by the board direction of statute after January 1, 2018, shall include a credit for recycled water as set forth below:(1)(a) For the an outdoor irrigation standard, nonpotable recycled water shall be given a special landscape allowance as set forth in the departments Model Water Efficient Landscape Ordinance, except that the allowance shall include a variance to the standard that allows recycled water to be applied at an agronomic rate that is a rate of application of recycled water that is necessary to satisfy the watering and nutritional requirements of the plants and is in compliance with any applicable salt and nutrient management plan.(2)A(b) An urban water supplier shall receive a credit for the volume of its potable water reuse, on an acre-foot basis, to meet its target. water use target.(g)The department and the board shall solicit broad public participation relating to the development of the long-term standards for urban water conservation and use. In the solicitation for public participation for the purposes of this section, the department and the board shall invite representatives of small, medium, and large urban retail water suppliers from throughout the state, including at least one representative from each hydrologic region, academic experts, urban water wholesalers, urban water suppliers, business organizations, environmental and environmental justice organizations, and combined retail water and wastewater agencies.(h)(1)After 2026, the board and the department shall consider, in years ending in two and seven, whether the board should update long-term standards for urban water conservation and water use and commercial, industrial, and institutional performance measures. Before proposing new standards for board adoption, the department and the board shall solicit broad public participation as described in subdivision (g).(2)The department and the board may conduct additional studies, pilot projects, and other necessary actions in order to determine whether to update standards and commercial, industrial, or institutional performance measures.(i)Notwithstanding Section 15300.2 of Title 14 of the California Code of Regulations, an action of the board taken under this chapter shall be deemed to be a Class 8 action, within the meaning of Section 15308 of Title 14 of the California Code of Regulations, if the action does not involve relaxation of existing water conservation or water use standards. (a)The board, in consultation with the department, shall adopt long-term standards for urban water conservation and water use by May 20, 2021. The standards shall include, but are not limited to, standards for both of the following: (1)Indoor residential water use. (2)Outdoor irrigation in connection with domestic, commercial, industrial, or institutional water use. (b)By May 20, 2021, the board, in consultation with the department, shall adopt performance measures for commercial, industrial, and institutional water use designed to produce measurable water use efficiency improvements and that build upon industry best practices, use of innovative technologies, and existing data on cost-effectiveness. Performance measures shall include, but are not limited to, water audits, converting mixed commercial, industrial, and institutional water irrigation accounts to dedicated irrigation meters, and water management planning. (c)Urban water suppliers shall do both of the following: (1)Calculate a water use target, in accordance with regulations adopted by the board pursuant to subdivision (a), no later than July 1, beginning the calendar year after the board adopts the standards. Each urban water suppliers water use target shall be comprised of an indoor residential volume, an outdoor irrigation volume, and a volume for water loss as specified in Section 10608.34. The outdoor irrigation volume shall exclude potable water for agricultural use as defined in subdivision (b) of Section 51201 of the Government Code. (2)Annually submit a report to the department by July 1, beginning the calendar year after the board adopts standards pursuant to subdivision (a). The report shall describe the suppliers calculated water use target, actual water use consistent with criteria described in paragraph (1), documentation of commercial, industrial, and institutional performance measure implementation, and a narrative describing progress made towards meeting the target. The department shall post the reports and information on its Internet Web site. (d)(1)The department, in coordination with the board, shall conduct necessary studies and investigations and recommend, no later than October 1, 2020, standards for indoor residential use and outdoor irrigation for adoption by the board in accordance with this chapter. After 2026, the department shall recommend updates to its initial recommendation to the board in years ending in 2 and 7 to allow for consideration by the board in accordance with subdivision (h). (2)In recommending standards pursuant to this subdivision, the department, in coordination with the board, shall develop guidelines and methodologies as necessary for calculating irrigable landscape area, irrigated landscape area, and indoor water use for the board to consider in adoption of the standards. (e)(1)Before setting performance measures for commercial, industrial, and institutional water use, the department, in coordination with the board, shall solicit broad public participation relating to all of the following: (A)Recommendations for a commercial, industrial, and institutional classification system for California. (B)Recommendations for setting minimum size thresholds for converting mixed commercial, industrial, and institutional meters to dedicated irrigation meters, and evaluating and recommending technologies that could be used in lieu of requiring dedicated irrigation meters. (C)Recommendations for commercial, industrial, and institutional best management practices, including, but not limited to, water audits and water management plans for commercial, industrial, and institutional customers over a recommended size, volume, or other threshold. (2)In their solicitation for public participation pursuant to paragraph (1), the department and the board shall invite representatives from throughout the state, including at least one representative from each hydrologic region, representing the following categories: (A)Urban retail water suppliers, including combined retail water and wastewater agencies. (B)Urban wholesale water suppliers. (C)Academic experts. (D)Economic development interests. (E)Business community representatives. (F)Environmental and environmental justice organizations. (G)Commercial water users. (H)Industrial water users. (I)Institutional water users. (3)Recommendations of appropriate performance measures for commercial, industrial, or institutional water use shall consider the 2013 report to the Legislature by the commercial, industrial, and institutional task force entitled, Water Use Best Management Practices, and shall support the economic productivity of Californias commercial, industrial, and institutional sectors. (f)Standards 10609.1. Long-term standards for urban water conservation and water use adopted by the board direction of statute after January 1, 2018, shall include a credit for recycled water as set forth below:(1)(a) For the an outdoor irrigation standard, nonpotable recycled water shall be given a special landscape allowance as set forth in the departments Model Water Efficient Landscape Ordinance, except that the allowance shall include a variance to the standard that allows recycled water to be applied at an agronomic rate that is a rate of application of recycled water that is necessary to satisfy the watering and nutritional requirements of the plants and is in compliance with any applicable salt and nutrient management plan.(2)A(b) An urban water supplier shall receive a credit for the volume of its potable water reuse, on an acre-foot basis, to meet its target. water use target.(g)The department and the board shall solicit broad public participation relating to the development of the long-term standards for urban water conservation and use. In the solicitation for public participation for the purposes of this section, the department and the board shall invite representatives of small, medium, and large urban retail water suppliers from throughout the state, including at least one representative from each hydrologic region, academic experts, urban water wholesalers, urban water suppliers, business organizations, environmental and environmental justice organizations, and combined retail water and wastewater agencies.(h)(1)After 2026, the board and the department shall consider, in years ending in two and seven, whether the board should update long-term standards for urban water conservation and water use and commercial, industrial, and institutional performance measures. Before proposing new standards for board adoption, the department and the board shall solicit broad public participation as described in subdivision (g).(2)The department and the board may conduct additional studies, pilot projects, and other necessary actions in order to determine whether to update standards and commercial, industrial, or institutional performance measures.(i)Notwithstanding Section 15300.2 of Title 14 of the California Code of Regulations, an action of the board taken under this chapter shall be deemed to be a Class 8 action, within the meaning of Section 15308 of Title 14 of the California Code of Regulations, if the action does not involve relaxation of existing water conservation or water use standards. 10609.1. Long-term standards for urban water conservation and water use adopted by the board direction of statute after January 1, 2018, shall include a credit for recycled water as set forth below:(1)(a) For the an outdoor irrigation standard, nonpotable recycled water shall be given a special landscape allowance as set forth in the departments Model Water Efficient Landscape Ordinance, except that the allowance shall include a variance to the standard that allows recycled water to be applied at an agronomic rate that is a rate of application of recycled water that is necessary to satisfy the watering and nutritional requirements of the plants and is in compliance with any applicable salt and nutrient management plan.(2)A(b) An urban water supplier shall receive a credit for the volume of its potable water reuse, on an acre-foot basis, to meet its target. water use target.(g)The department and the board shall solicit broad public participation relating to the development of the long-term standards for urban water conservation and use. In the solicitation for public participation for the purposes of this section, the department and the board shall invite representatives of small, medium, and large urban retail water suppliers from throughout the state, including at least one representative from each hydrologic region, academic experts, urban water wholesalers, urban water suppliers, business organizations, environmental and environmental justice organizations, and combined retail water and wastewater agencies.(h)(1)After 2026, the board and the department shall consider, in years ending in two and seven, whether the board should update long-term standards for urban water conservation and water use and commercial, industrial, and institutional performance measures. Before proposing new standards for board adoption, the department and the board shall solicit broad public participation as described in subdivision (g).(2)The department and the board may conduct additional studies, pilot projects, and other necessary actions in order to determine whether to update standards and commercial, industrial, or institutional performance measures.(i)Notwithstanding Section 15300.2 of Title 14 of the California Code of Regulations, an action of the board taken under this chapter shall be deemed to be a Class 8 action, within the meaning of Section 15308 of Title 14 of the California Code of Regulations, if the action does not involve relaxation of existing water conservation or water use standards. 10609.1. Long-term standards for urban water conservation and water use adopted by the board direction of statute after January 1, 2018, shall include a credit for recycled water as set forth below: (1) (a) For the an outdoor irrigation standard, nonpotable recycled water shall be given a special landscape allowance as set forth in the departments Model Water Efficient Landscape Ordinance, except that the allowance shall include a variance to the standard that allows recycled water to be applied at an agronomic rate that is a rate of application of recycled water that is necessary to satisfy the watering and nutritional requirements of the plants and is in compliance with any applicable salt and nutrient management plan. (2)A (b) An urban water supplier shall receive a credit for the volume of its potable water reuse, on an acre-foot basis, to meet its target. water use target. (g)The department and the board shall solicit broad public participation relating to the development of the long-term standards for urban water conservation and use. In the solicitation for public participation for the purposes of this section, the department and the board shall invite representatives of small, medium, and large urban retail water suppliers from throughout the state, including at least one representative from each hydrologic region, academic experts, urban water wholesalers, urban water suppliers, business organizations, environmental and environmental justice organizations, and combined retail water and wastewater agencies. (h)(1)After 2026, the board and the department shall consider, in years ending in two and seven, whether the board should update long-term standards for urban water conservation and water use and commercial, industrial, and institutional performance measures. Before proposing new standards for board adoption, the department and the board shall solicit broad public participation as described in subdivision (g). (2)The department and the board may conduct additional studies, pilot projects, and other necessary actions in order to determine whether to update standards and commercial, industrial, or institutional performance measures. (i)Notwithstanding Section 15300.2 of Title 14 of the California Code of Regulations, an action of the board taken under this chapter shall be deemed to be a Class 8 action, within the meaning of Section 15308 of Title 14 of the California Code of Regulations, if the action does not involve relaxation of existing water conservation or water use standards. SEC. 3. Section 13551.5 is added to the Water Code, to read:13551.5. (a) It is the intent of the Legislature in enacting Assembly Bill 869 of the 201617 Regular Session to do all of the following:(1) Encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state.(2) Encourage new investment and protect existing local investments made by urban water suppliers in drought resiliency and drought resilient supplies, including investment in recycled water and potable reuse, in order to better prepare local communities and the state for periods of drought and shortage.(3) Expand the volume of water recycled to put to beneficial use in the state through new investments in water recycling.(4) Recognize that federal and state regulation of recycled water requires efficient use of recycled water and prohibits overuse.(5) Encourage local agencies to take steps to prepare for the effects of climate change.(b) An urban retail water supplier shall not be required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses (1) during a period for which the Governor has issued a proclamation of a state of emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on statewide or local drought conditions, (2) pursuant to Chapter 3.3 (commencing with Section 365) of Division 1, or (3) during a water shortage emergency condition pursuant to Chapter 3 (commencing with Section 350) of Division 1.(c) For purposes of this section, urban retail water supplier and recycled water have the same meanings as provided in Section 10608.12.(b)(d) Nothing in this section shall be construed to supersede, diminish, alter, impair, or otherwise affect any existing rights, including, but not limited to, existing legal protections, both procedural and substantive, under water rights law. SEC. 3. Section 13551.5 is added to the Water Code, to read: ### SEC. 3. 13551.5. (a) It is the intent of the Legislature in enacting Assembly Bill 869 of the 201617 Regular Session to do all of the following:(1) Encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state.(2) Encourage new investment and protect existing local investments made by urban water suppliers in drought resiliency and drought resilient supplies, including investment in recycled water and potable reuse, in order to better prepare local communities and the state for periods of drought and shortage.(3) Expand the volume of water recycled to put to beneficial use in the state through new investments in water recycling.(4) Recognize that federal and state regulation of recycled water requires efficient use of recycled water and prohibits overuse.(5) Encourage local agencies to take steps to prepare for the effects of climate change.(b) An urban retail water supplier shall not be required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses (1) during a period for which the Governor has issued a proclamation of a state of emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on statewide or local drought conditions, (2) pursuant to Chapter 3.3 (commencing with Section 365) of Division 1, or (3) during a water shortage emergency condition pursuant to Chapter 3 (commencing with Section 350) of Division 1.(c) For purposes of this section, urban retail water supplier and recycled water have the same meanings as provided in Section 10608.12.(b)(d) Nothing in this section shall be construed to supersede, diminish, alter, impair, or otherwise affect any existing rights, including, but not limited to, existing legal protections, both procedural and substantive, under water rights law. 13551.5. (a) It is the intent of the Legislature in enacting Assembly Bill 869 of the 201617 Regular Session to do all of the following:(1) Encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state.(2) Encourage new investment and protect existing local investments made by urban water suppliers in drought resiliency and drought resilient supplies, including investment in recycled water and potable reuse, in order to better prepare local communities and the state for periods of drought and shortage.(3) Expand the volume of water recycled to put to beneficial use in the state through new investments in water recycling.(4) Recognize that federal and state regulation of recycled water requires efficient use of recycled water and prohibits overuse.(5) Encourage local agencies to take steps to prepare for the effects of climate change.(b) An urban retail water supplier shall not be required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses (1) during a period for which the Governor has issued a proclamation of a state of emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on statewide or local drought conditions, (2) pursuant to Chapter 3.3 (commencing with Section 365) of Division 1, or (3) during a water shortage emergency condition pursuant to Chapter 3 (commencing with Section 350) of Division 1.(c) For purposes of this section, urban retail water supplier and recycled water have the same meanings as provided in Section 10608.12.(b)(d) Nothing in this section shall be construed to supersede, diminish, alter, impair, or otherwise affect any existing rights, including, but not limited to, existing legal protections, both procedural and substantive, under water rights law. 13551.5. (a) It is the intent of the Legislature in enacting Assembly Bill 869 of the 201617 Regular Session to do all of the following:(1) Encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state.(2) Encourage new investment and protect existing local investments made by urban water suppliers in drought resiliency and drought resilient supplies, including investment in recycled water and potable reuse, in order to better prepare local communities and the state for periods of drought and shortage.(3) Expand the volume of water recycled to put to beneficial use in the state through new investments in water recycling.(4) Recognize that federal and state regulation of recycled water requires efficient use of recycled water and prohibits overuse.(5) Encourage local agencies to take steps to prepare for the effects of climate change.(b) An urban retail water supplier shall not be required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses (1) during a period for which the Governor has issued a proclamation of a state of emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on statewide or local drought conditions, (2) pursuant to Chapter 3.3 (commencing with Section 365) of Division 1, or (3) during a water shortage emergency condition pursuant to Chapter 3 (commencing with Section 350) of Division 1.(c) For purposes of this section, urban retail water supplier and recycled water have the same meanings as provided in Section 10608.12.(b)(d) Nothing in this section shall be construed to supersede, diminish, alter, impair, or otherwise affect any existing rights, including, but not limited to, existing legal protections, both procedural and substantive, under water rights law. 13551.5. (a) It is the intent of the Legislature in enacting Assembly Bill 869 of the 201617 Regular Session to do all of the following: (1) Encourage continued investment in water reuse as a means to increase water supply reliability and diversification within the state. (2) Encourage new investment and protect existing local investments made by urban water suppliers in drought resiliency and drought resilient supplies, including investment in recycled water and potable reuse, in order to better prepare local communities and the state for periods of drought and shortage. (3) Expand the volume of water recycled to put to beneficial use in the state through new investments in water recycling. (4) Recognize that federal and state regulation of recycled water requires efficient use of recycled water and prohibits overuse. (5) Encourage local agencies to take steps to prepare for the effects of climate change. (b) An urban retail water supplier shall not be required to reduce the amount of recycled water it produces, sells, or distributes for beneficial potable or nonpotable uses (1) during a period for which the Governor has issued a proclamation of a state of emergency under the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code) based on statewide or local drought conditions, (2) pursuant to Chapter 3.3 (commencing with Section 365) of Division 1, or (3) during a water shortage emergency condition pursuant to Chapter 3 (commencing with Section 350) of Division 1. (c) For purposes of this section, urban retail water supplier and recycled water have the same meanings as provided in Section 10608.12. (b) (d) Nothing in this section shall be construed to supersede, diminish, alter, impair, or otherwise affect any existing rights, including, but not limited to, existing legal protections, both procedural and substantive, under water rights law.