Section 981 - Volumetric Water Loss Performance Standards(a) No later than January 1, 2028, each urban retail water supplier shall reduce real loss from its distribution systems to no greater than the real water loss standard identified in section 982, as reflected in the supplier's reported real loss in its annual audit submitted for 2027.(b) If the urban retail water supplier's real loss reported in its 2027 annual audit exceeds the supplier's real water loss standard calculated in accordance with section 982, the supplier will be in compliance with subdivision (a) of this section if the supplier has achieved its real water loss standard as reflected in the real loss levels reported in its annual audit submitted for either 2025 or 2026.(c) After 2028, each urban retail water supplier's compliance with its real water loss standard shall be assessed in every third year based on an average of the real losses reported in its three most recent annual audits. A supplier shall maintain, for each compliance assessment, real loss that is no greater than 5 gallons per connection per day above the supplier's real water loss standard.(d) At the time compliance with real water loss standards is assessed, apparent losses will also be evaluated. Each supplier's apparent loss standard is the average of the supplier's baseline apparent losses plus an allowed variation of 2 gallons per connection per day. If the average apparent losses for any compliance period are greater than this standard, the supplier must submit an inventory of apparent losses. (1) The apparent losses inventory shall include any calculations and data used to determine apparent losses for the water loss audits spanning the compliance period for which the standards have been evaluated. Each inventory item shall include the type of apparent loss (for example, metering inaccuracies, data handling errors, theft), the estimated volume of loss, and how each value was determined (for example, direct measurement, calculation based on specific equation(s), visual estimate).(2) The apparent losses inventory must be submitted on a spreadsheet readable by the Board within 6 months of the supplier being informed by the Board that the supplier has exceeded its apparent loss standard. The Board will make a template available on its website.(e) An urban retail water supplier's real water loss standard may be adjusted to include changes to the default parameter inputs identified in section 982(c), pursuant to section 984.(f) An urban retail water supplier may calculate the average baseline real loss using three out of the four years of the baseline period by removing an outlier value that varies by over 10 gallons per service connection per day from the each of the adjacent values for the other three years or that is negative. If one year of real loss is removed from a supplier's calculated baseline real loss, that same year must be removed from the baseline average length of mains, average service connections, average operating pressure, average variable production cost, and average apparent loss calculations.(g) In accordance with section 985, an urban retail water supplier may seek approval of a variance to its real water loss standard in response to unexpected adverse conditions and to its apparent water loss standard if apparent loss data quality improves.(h) An urban retail water supplier whose service area meets the following criteria shall achieve compliance with this section no later than January 1, 2031: (1) The service area has a disadvantaged communities (DAC) or severely disadvantaged communities (SDAC) designation owing to the median household income of the supplier's service area being less than or equal to 80 percent of the median household income of California per the median household income determination conducted by the board;(2) The service area has a calculated benefit to cost ratio until 2028, pursuant to section 982, subdivision (a)(24), of less than 2; and(3) The urban retail water supplier's real water loss standard calculated pursuant to section 982, subdivision (b) is lower than the supplier's average baseline real loss by 25% or more.(i) Suppliers that do not meet their real loss standard by January 1, 2028, will be considered in compliance for the first compliance period if:(1) The supplier's real water loss standard is lower than the supplier's average baseline real loss by 30% or more;(2) The supplier's 2025, 2026, or 2027 water loss audits show progress as a reduction of real loss by at least 30% of the difference between the average baseline real loss and the real water loss standard;(3) The supplier's data validity scores are at Level 3 or the supplier has demonstrated improving data validity scores. When determining eligibility, consideration will be given to data validity score reductions related to water audits prepared using different versions of the water auditing software;(4) The supplier has completed one full cycle of leak detection surveys; and(5) The supplier has submitted a written request for this compliance pathway to the Board and received approval prior to January 1, 2028. The request shall include: (A) Why the supplier was unable to meet its real water loss standard;(B) A list of leakage prevention activities the supplier has engaged in to prevent water loss;(C) How the supplier is being a good steward with respect to other pieces of Water Code, division 6, part 2.55, chapter 9; and(D) A plan for how it will meet its real water loss standard no later than January 1, 2031.(j) For systems that do not meet the criteria to be considered an urban retail water supplier in section 980(ccc) until after the effective date of this section, this section applies beginning five (5) years after the system meets the criteria to be considered a supplier, except that the supplier must submit annual water loss audits starting with data for the first full year (calendar year or fiscal year, depending on how the supplier chooses to report its audits) it meets the criteria to be considered a supplier. (1) The baseline period for suppliers subject to this subdivision consists of the first four years of submitted data.(2) For suppliers subject to this subdivision, compliance with their real water loss standards will be assessed pursuant to subdivision (c) at the end of the first full compliance period after the standard is assigned except that if there is less than one full year between the standard being assigned and the start of the first full assessment period, compliance will be assessed at the end of the next full compliance period.Cal. Code Regs. Tit. 23, § 981
1. New section filed 2-6-2023; operative 4-1-2023 (Register 2023, No. 6). Note: Authority cited: Sections 1058, 10608.34, Water Code. Reference: Article X, Section 2, California Constitution; Section 116275, Health and Safety Code; Sections 102, 104, 105, 350, 516, 1846, 10608.12 and 10608.34, Water Code.
1. New section filed 2-6-2023; operative 4/1/2023 (Register 2023, No. 6).