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What is the Council DOING with BMP 11?

What is the Council DOING with BMP 11?. Back in Time…. BMP 11 (Conservation Pricing) has been the same since the MOU was adopted in 1991 Revision attempted in 1997 but failed

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What is the Council DOING with BMP 11?

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  1. What is the Council DOING with BMP 11?

  2. Back in Time…. • BMP 11 (Conservation Pricing) has been the same since the MOU was adopted in 1991 • Revision attempted in 1997 but failed • Group 2 has always had strong interest in revising BMP 11 and stressed their priority for it in the Potential BMP section back in 1991 • Committees have met over the years, but • No consensus has ever been reached

  3. More Perspective…. • Most signatories do not fully understand what the current BMP 11 says • Applies to Water AND wastewater • Allows all forms of pricing EXCEPT declining block rate structures and flat rates • Uniform rates OK • Seasonal rates OK • Combined volumetric and fixed charge OK

  4. Council Activity • Council guidance on designing and implementing conservation rate structures • Rates Handbook • Avoiding Revenue Impact Workshops – October 2004 • Empirical Rates study in Prop 50 application to evaluate price elasticity and savings achieved

  5. BMP 11 Reports • Agencies report every two years • Question: % of revenue from volumetric charge • Results are on line • BMP 11 forms recently revised to gather more information

  6. Then Along Comes AB 2717…. • Legislature asked the Council to convene a Landscape Task Force • 30 Task Force members, 84 work group members • 43 recommendations, 78 actions • Top 12 voted • #1: Adopt water-conserving rate structures as defined by the Task Force

  7. What Did They Mean? Recommendation 38.1: CUWCC should convene a committee no later than January 31, 2006 to determine the appropriate thresholds of the percent of total rates-based revenue that is derived from the fixed versus volumetric portions; work from this committee shall result in adoption of changes to BMP 11 by December 31, 2006.

  8. What if it Doesn’t Happen? Recommendation 38.2: If theCUWCC does not adopt a revised BMP 11 by December 31, 2006, the Legislature should revise the Urban Water Management Planning Act to use the Task Force-developed definition of water conserving rate structures as the definition for Conservation pricing in the Demand Management Measures (DMMs) section and require water suppliers to report on their implementation of a conservation rate structure.

  9. And What Does THAT Mean? • The Task Force made a recommendation, that’s all • The Council is making a good faith attempt at honoring the request and has a process to follow • Steering and Plenary must approve it by a 2/3 vote of group 1 and 2/3 vote of group 2 • If not voted by both groups it doesn’t pass • But mass panic is ensuing

  10. Issues • Are the thresholds appropriate? • Do these thresholds achieve the objectives? • Is there a better approach? • Are there alternative quantifiable solutions? • Will this improve the efficiency of landscape water use? • Are there unintended consequences?

  11. Revision PAC Process • Meeting since December 2005 • Expanded voting base • Outreach • Technical Memos • DRAFT Recommendations • Stakeholder Workshops – Oct/Nov 2006 • Steering Committee – Info and Action • Plenary – Info and Action

  12. Points to Remember: • The Council only moves forward measures to the Plenary that have the consensus votes to pass • This PAC process is supposed to flush out problems • Does Group 1 really believe that something would be adopted that Group 1 agencies “violently oppose”?

  13. So…Would the Legislature Really Take This Up? • Who knows? Why did the Task Force make it their Number #1 recommendation? • Remember: Legislation introduction is not automatic unless a legislator is interested in introducing it • Rates are politically volatile and likely to be controversial • Our best shot is still working together

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