WateReuse California Review - January 2023

This month Governor Newsom released his FY 2023-24 proposed budget. While the budget attempts to address a $22.5 billion deficit, recycled water funding of $270 million is proposed to be appropriated in this budget year.

Last year’s budget indicated that there would be $100 million in additional funding for recycled water grants and $210 million in grants dedicated to potable reuse projects. It appears that $40 million is proposed to be cut from the potable reuse grants.

Considering the size of the 2023/24 deficit and potentially a much larger deficit expected by May, WRCA will be prioritizing maintaining and possibly increasing this funding. WRCA worked hard over the legislative break to raise the importance of this funding in the Governor’s Office and with legislative leaders.

The details of the funding may be worked out in the budget committee process that will begin in February. WRCA will be testifying and developing coalition letters in support of the funding. For more information contact Jennifer West.

The Water Board’s Division of Water Quality is launching a “Strike Team” to assess how California will meet its 2030 and 2040 recycled water goals as described in the California’s Water Supply Strategy: Adapting to a Hotter Drier Future.   

The Strike Team will look at whether California can meet its new goals of using 800,000 acre-feet per year (AFY) of recycled water by 2030 and 1.8 million acre-feet per year (MAF) by 2040. The Strike Team will also document challenges to meeting these goals, including but not limited to funding.
  
WateReuse California is partnering with the Water Boards to support implementation of the recycled water actions and as part of this effort. WRCA has already reached out to many agencies to assess their future reuse plans and challenges. Planned nonpotable projects (landscape, industrial and agriculture etc) are numerous and more difficult to document. Please contact Jennifer West if you have a nonpotable planned project that will be online by 2030 or 2040.   

Governor Newsom's proposed budget includes $7 million for the California Department of Water Resources (DWR) to carry out the study as described in Senate Bill 1157 (Statutes 2022, Chapter 679, Hertzberg). The study will be a four-year effort.   

The funding will be used to perform a statewide, representative saturation end-use study. Among other objectives, the study will quantify the benefits and impacts of the 2030 indoor residential water use standard (42 GPCD) on water, wastewater, and recycled water systems. For more detailed information on the breadth of the study, please see the Budget Change Proposal (BCP) on Urban Water Use Objectives (SB 1157).  DWR will develop a report to Legislature by October 1, 2028, which may recommend variances to the indoor water use standard.   

WateReuse California has been in contact with the project manager within the DWR Water Use Efficiency Branch Manager at the Division of Regional Assistance and will be tracking any progress and developments closely. For questions or additional information, please contact WateReuse California’s Manager of Regulatory Affairs Rosario Cortés. 

The California Water Board is expected to release a draft of the statewide onsite reuse regulation and begin the formal rulemaking process in late spring.   

Senate Bill 966 (Wiener 2018) required the Water Board to adopt regulations for risk-based water quality standards for the onsite treatment and reuse of nonpotable water for nonpotable end uses in specified buildings on or before December 1, 2022.
   
WRCA recently met with Division of Drinking Water staff and they indicated that they are still finalizing the draft regulations and the associated rulemaking documents. The expectation is that the Water Board will start the rulemaking by late spring and complete the regulations by the end of 2023. Once the onsite reuse regulations are adopted by the Water Board, the Department of Housing and Community Development is required to develop and propose for adoption any necessary corresponding building standards to support the risk-based water quality standards. Please see the State Board’s Frequently Asked Questions document for information about the scope of these regulations.   

For questions or additional information, please contact WateReuse California’s Manager of Regulatory Affairs Rosario Cortés.