Paying for TMDL Compliance Different Approaches From

Paying for TMDL Compliance – Different Approaches From Around Southern California Water Dialogue Group February 28, 2007

Irvine Ranch Water District Outline of Today’s Discussion • IRWD’s Approach to Integrated Water Resources Planning and Management at the Watershed Level • Unique TMDL Compliance Funding Mechanisms and Strategies • Future Opportunities for Water Supply Entities and Cities 1

Irvine Ranch Water District About Irvine Ranch Water District 1. Formed in 1961 by landowners to supply water for extensive irrigation - population 300 2. California Water District providing: - Water - Hydroelectric - Wastewater - Recycled water - Resource management - Urban runoff management / control (Modified enabling act in 2000) • Current Customer Base - Residential Population 325, 000 - Daytime Population estimated 500, 000 - Service Connections 93, 000 • Size of District - 179 square miles/114, 500 acres - 118 square miles in San Diego Creek watershed 2

Irvine Ranch Water District TMDL Compliance - San Diego Creek Watershed • Approximately coincident with IRWD service area (80% of watershed in IRWD) • Primary freshwater source for Newport Bay—EPA “impaired water body” • 118 square miles • City of Irvine and portions of: – City of Lake Forest – City of Newport Beach – City of Orange – City of Tustin – Unincorporated County 4 primary types of TMDL’s: – Nutrients (nitrogen/phosphorous) – Sediment – Pathogens – Toxics (pesticides, selenium, etc. ) • 3

Irvine Ranch Water District Relationship Between Water Consumption and Dry Weather Flow Generation Example: Urban Runoff in San Diego Creek • Implementing a “Cradle to Grave” philosophy • Both multiple and single entity approaches Over-irrigation = Dry weather runoff that carries pollutants = Discharge into sensitive receiving waters 4

Irvine Ranch Water District Urban Runoff Generation – Residential* Average O. C. Water Agency/Dept 12, 900 AF/YR SFD 5, 000 FT Lot 30 agencies/depts. 62% 8, 000 AF 1, 150, 000 Gallons Per Day *Source: Northwood (Irvine) Residential Runoff Reduction Study, 2003 ET & I 28% 3, 610 AF Runoff 10% 1, 290 AF 5

Irvine Ranch Water District Urban Runoff and TMDL Compliance Partnerships – Where Does IRWD Fit? Santa Ana Regional Water Quality Control Board (Region 8) County of Orange Principal Permitee Irvine Lake Forest Newport Beach Orange Tustin City Co-Permitee City Co-Permitee Permittee Compliance Mechanisms • Education/Training/ Inspections • Development/Construction Standards • Water Quality Monitoring • Local structural BMP’s • Runoff management and Source Control (Conservation and demand management) • Watershed-wide Treatment BMP’s IRWD’s TMDL Management Strategies 6

Irvine Ranch Water District TMDL Compliance Strategies Urban Runoff Management and Source Control Strategy #1: Water Conservation and Demand Management 7

Irvine Ranch Water District Allocation-Based “Conservation” Rate Structure Basic Premise: • Allocate water to customers based upon land usespecific indoor uses and landscaping needs • Encourage use within allocation through a significantly tiered commodity pricing system • Over-use generates “penalty” revenue to fund TMDL Compliance Activities: – Source Control (water conservation programs, incentives and education) – Urban runoff treatment 8

Irvine Ranch Water District Allocation-Based Rate Structure TIER Low Volume Base Inefficient Excessive Wasteful BREAK POINT (% of Allocation) 0 - 40% 41 -100% 101 -150% 151 -200% 201+% Base rate 2 x base 4 x base 8 x base RATE ($/ccf) $0. 75 $0. 91 $1. 82 $3. 64 $7. 28 100% of water needed for indoor/ outdoor uses Typical Residential Fixed Charge = $6. 75/month (3/4” meter) 9

Irvine Ranch Water District Sample Residential Water Billing - Overuse 8/10/06 9/09/06 1255 1337 82 CCF USAGE - LOW VOLUME DISCOUNT 16 0. 75 $12. 00 USAGE - CONSERVATION BASE RATE 23 0. 91 $20. 93 USAGE - INEFFICIENT 20 1. 82 $36. 40 USAGE - EXCESSIVE 19 3. 64 $69. 18 USAGE - WASTEFUL 4 7. 28 $29. 12 WATER SERVICE CHARGE YOUR ALLOCATION FOR THIS BILL CALCULATION BASED ON $6. 75 39 CCF 0. 12 ac. / SFD TO AVOID LATE CHARGE PAY BEFORE 10/07/06 Commodity Within Allocation Commodity Above Allocation Over allocation use pays penalty rates, discourages overuse $174. 38 $ 32. 93 $134. 70 20% 80% 10

Irvine Ranch Water District Determining Appropriate Allocations Single Family Detached House (4 occupants) + Outdoor Allocations • Irrigated area seasonal needs (Eto) + Variances • Pool • Additional occupants • Medical needs • Others (equestrian, etc. ) 11

Irvine Ranch Water District Landscape Allocation • Allocation based on landscaped area and real time evapotranspiration – Cool season turf – Irrigation system efficiency - 80% Foothill • IRWD has three weather stations Central Coastal 12

Irvine Ranch Water District Results: Rate Structure Reduces Water Use • Since Rates Adopted in 1991: – Average water use dropped from 3. 5 ft. /acre To 1. 9 ft. /acre – Stabilization of dry weather runoff – Changes in plant material selection - more “California Friendly” landscaping • From 1992 to 2000: – Irrigated area doubled – Water use increased by 3% 13

Irvine Ranch Water District Water Conservation – Landscape Programs • Landscape Water Management Report Card • “Fall Campaign” (Postcard reminders) • Residential Education / Workshops • Protector del Agua Landscape Certification Program New Programs • Artificial Turf Replacement • Weather Based Irrigation Controllers • “California Friendly” landscaping 14

Irvine Ranch Water District Water Conservation Programs IRWD Residential and Landscape Water Usage 15

Irvine Ranch Water District Per Capita Water Consumption Comparison Source: California Urban Water Conservation Council, 2002 16

Irvine Ranch Water District TMDL Compliance Strategies Urban Runoff Management and Source Control Strategy #2 Watershed-wide Structural BMP’s – the Natural Treatment System 17

Irvine Ranch Water District Urban Runoff Treatment Systems – Treatment Wetlands San Joaquin Marsh Newport Harbor • 320 ac. owned and managed by IRWD Pacific Ocean Upper Newport Bay • 68 ac. of treatment ponds UC Natural Reserve • 3. 5 million gallons per day • Removes about 70% of nitrogen from San Diego Creek (75, 000 pounds per year) San D iego C reek Natural Treatment System Ponds Carlson Marsh IRWD Plant (MWRP) Restored wetlands/ uplands San Joaquin Marsh N • Removal of 50, 000 tons of sediment and 10, 000 pounds of phosphorus per year from desilting basins 18

Irvine Ranch Water District Urban Runoff Treatment Systems Natural Treatment System (NTS) • Expands wetlands treatment watershed-wide • 71 sites considered; 31 selected • Completed 4 sites, designed 10 sites, 3 sites construction award 1/2006 • State/federal grant funds authorized (25%) • Integral with city runoff management programs • Multiple governmental, private, regulatory and community/envirnomental entity effort 19

Irvine Ranch Water District Complex Multiple Entity Effort - NTS Inter-agency Agreements for Operating, Maintenance, Facility Use • Watershed Cities -- Irvine, Lake Forest, Newport Beach, Orange, Tustin • County of Orange Regulation, Permitting, MS 4 Permit Authorization • Regional Water Quality Control Board • CDFG, USFWS, Corps, Supplemental Funding • EPA, USBR, State Water Resources, Coastal Conservancy Critical Reviewers and Stakeholders • Residents • Environmental Community Representatives Development Standards, R/W, Construction • Landowners and developers 20

Irvine Ranch Water District Future Opportunities for Water Supply Entities and Cities • Water Purveyor recognition of the water supply and environmental management interrelationship – Embrace a “Cradle to Grave” management and problem solving philosophy • Clarification of ability to participate in TMDL compliance activities through legislation: – Add to list of services – Incentive based participation (i. e. adopt conservation rate structure, can use revenue for stormwater compliance programs) 21

Irvine Ranch Water District Questions? Paul D. Jones II General Manager Irvine Ranch Water District jones@irwd. com 22