Taking on Mother Nature and More Jack Hawks NARUC Committee on Water July 15 2014 Dallas TX California Update Hollywood and Maximum Contaminant Levels water quality regulatory standard A New Hexavalent Chromium MCL Effective July 1st ID: 185638
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Slide1
“The Wild, Wild West –Taking on Mother Nature and More”
Jack HawksNARUC Committee on WaterJuly 15, 2014Dallas, TXSlide2
California Update
Hollywood and Maximum Contaminant Levels (water quality regulatory standard)
A New Hexavalent Chromium MCL, Effective July 1st
The Drought: Unrelenting Pressure
How Water Utilities Are Responding
New Emergency Drought RegulationsSlide3
115 Regulated
IOWCs
9 Class A water utilities (> 10,000 connections)
5 Class B water utilities (>2,000)
24 Class C water utilities (> 500)77 Class D water utilities (< 500)1.5 Million Customers
$1.4 billion annual revenues
6 Million
ServedSlide4
Hollywood and Water Contamination
A Civil Action (1996 – John Travolta)
Trichloroethylene
(TCE) contamination of the town's water
supply (Woburn, MA)
Financial settlement ($68 million) for town’s residents
Erin Brockovich (2000 – Julia Roberts)
Hexavalent chromium (Cr
+6
)
contamination
in Hinkley, CA
PG&E financial
settlement
($333
million) for town’s
residents
Much agitation in California State LegislatureSlide5
Hexavalent Chromium (Cr
+6
) - What a Long Strange Trip It’s BeenSlide6
What Is It?
Chromium is a naturally occurring element in rocks, animals, plants,
soil; occurs predominantly as
Trivalent
chromium (
Cr
+3
),
essential to normal glucose, protein, and fat metabolism and
thus
an essential dietary
element for humans
Hexavalent
chromium
(
Cr
+6
), used in making
stainless steel,
textile dyes, wood preservation,
and for anti-corrosion, treatment of cooling tower water
Human body reduces Cr
+6
to Cr
+3
USEPA has classified Cr
+6
as a human carcinogen when inhaled because of results from animal studiesSlide7
A Little History
1977
- MCL established by USEPA and adopted by California at 50
parts per billion
for Total
Chromium (includes both Cr
+6
and Cr
+3
); 1 ppb = about 1 drop of water in 250 chemical drums (3 seconds out of 100 yrs.)
1991
- USEPA raised federal MCL to 100 ppb
2000
– Julia Roberts
wins Oscar for ‘Erin Brockovich’; Prompts California legislature to force MCL development
2000 – City of Glendale begins treatment studies for
Cr
+6
2001 –
California water utilities
begin monitoring for Cr
+6
under California
UCMRSlide8
A Little More History
March
2001 –
CDHP
requests that OEHHA prepare a
Public Health Goal
for Cr
+6
May 2001 –
National
Toxicology Program (NTP) announces intent to conduct a long-term animal study to evaluate carcinogenicity of ingested Cr
+6
October 2001 – SB 351 is signed by the Governor, requiring
CDHP
to adopt a Cr
+6
MCL by
1/1/2004
November 2001 – OEHHA announces intent to develop a Cr
+6
PHG
2004 – Water Research Foundation publishes three Cr
+6
reportsSlide9
Still More History
2007
– NTP reports there to be sufficient evidence of carcinogenicity in rodents
August 2009 – OEHHA releases draft PHG at 60 ng/L (
parts per trillion; 1 ppt = 1 drop in 20
O
lympic-sized pools)
2010 – USEPA announces in second Six-year Review of existing standards, no revision to Total Chromium MCL
September 2010 – External review draft of USEPA’s IRIS
Toxicological Review of Hexavalent Chromium
December 2010 – OEHHA releases revised draft PHG for Cr
+6
at 20 ng/L
(20 ppt
)Slide10
Even More History
December 2010 – Environmental Working Group releases report:
Chromium-6 is Widespread in US Tap Water
Tested tap water in 35 cities
Range of positive tests: 30 ppt to 13 ppb
Cites WaterRF 2004 occurrence study
April 3, 2011 – EWG press release: “Utilities Knew of Chrome-6 Contamination For Years
”Slide11
Final PHG in California
July 2011 – OEHHA finalizes the PHG for Cr
+6
at 20 ppt
CDPH can now finally start working on developing an MCL required by SB 351
It is now seven and one-half years
since the
SB 351 deadlineSlide12
Water Research Foundation
Keeps Science Moving Forward
Project
#
Project Title(2011 – 2012)4365Feasibility of Microfiltration in the RCF Process for Hexavalent Chromium Removal4404Trace Level Chromium-6 Occurrence and Analysis: Reviewing and Testing the State of the Science4414Total and Hexavalent Chromium Occurrence Analysis
4418
Guidelines for Hexavalent Chromium Treatment Testing
4423Assessment of Single-Pass Ion Exchange and Adsorptive Media for Hexavalent Chromium Removal from Drinking Water
WITAF 320/ 4432
National implications of Community-level Cost for a Theoretical Cr(VI) SDWA Standard
4445
Development of a Uniform Approach to Prepare Drinking Water Hex Chrome Compliance Plans
4449
Sources, Fate & Treatment of Hexavalent ChromiumSlide13
Environmental Groups File Suit
July 18,
2013 – NRDC, EWG
file suit in
Superior
Court to force CDPH to propose and finalize a
MCL for Cr
+6
Court rules in
plaintiffs’
favor and requires CDPH to propose an MCL by August 31, 2013Slide14
History in the Making
8/23/2013:
CDPH
Proposes Cr
+6
MCL at
10
ppb
Water Industry Comments Due 10/13/2013
AWWA
CA-NV
Section/CWA/ACWA
Coordinate comments
Hire two
expert engineering firms to analyze the CDPH supporting evidence and produce technical
documents
Bottom Line: CDPH Vastly Underestimates Incidence, Compliance Costs of
Cr
+6Slide15
History in the Making
20,000 comments received by CDPH
About 250 were “significantly distinct”
Remaining were form emails or post cards
California Administrative
Procedure
Act allows up to one year to finalize a regulation
(i.e., 8/23/2014)
December 17, 2013
Court finds in favor of NRDC/EWG and orders CDPH to finalize MCL by April 15,
2014
If there are substantial changes to the rule, must finalize by June 15, 2014 and allow an additional
15-day
comment periodSlide16
History Made
CDPH refutes, dismisses most comments
Reiterates MCL of 10 ppb
New MCL
went into effect
on July 1, 2014
Where is USEPA on all this?
Not enough evidence in second six-year review (2010) to warrant a federal
Cr
+6
MCL, nor change the total chromium MCL
USEPA will await occurrence data on total chromium and Cr+6 under
UCMR 3 (thru 2015)
Continued IRIS review of Cr
+6
No decision on Cr
+6
anytime soonSlide17
Impact of New MCL
For
customers
in
affected service areas
Statewide capital costs - $4.1 billion
Annual O&M - $231 million
Cal Water
most affected
of California IOUs
25 wells affected at 10 ppb
Capital costs up to $66 million, O&M up to $11 million/yr
All affected water utilities, agencies, municipalities, districts struggling with compressed compliance time frameSlide18
Regulatory Response
Memorandum
Account Effective
on July 1
Cal Water can apply for cost recovery in future
Not an automatic process
Willows District Case History (2,610 customers)
Tested in 2011-12; CR
+6
levels averaged 16 ppb
Total chromium averaged 24 ppb (vs. 50 ppb MCL)
Capital costs – up to $17.3 million; O&M $360,000/yr
Staggering treatment, selection of SBA, other cost reductions, etc. will reduce bill impacts
Cal Water estimates impact from $63/month to $111/monthSlide19
Drought Update
U.S. Drought Monitor
California – 7/8/14
100% of California in drought for first time in recorded
history
78% likelihood of El
Nino prediction
in fall 2014 … But
…
El
Nino years do not guarantee above-average
precipitation.
A scary fire seasonSlide20
California Used to Extremes
Folsom Reservoir, July 20, 2011 97% Capacity
Folsom Reservoir,
January 16, 2014 17
%
CapacitySlide21
2013 Redefined “Dry” in California
January 18, 2013
January 18, 2014Slide22
California Precipitation
Variable & Extreme
Over Time & Location
Most Occurs Nov.- March
SOURCE:
http://education.usgs.gov/california/resources.html#water
California Statewide PrecipitationSlide23
6/9/14
Statewide Average - 0%
Means major reservoirs will not be
replenished
Means reliance on groundwater has increase to 65+% from 38%Means falling groundwater levels, land subsidence, lower GW storage capacity, water quality degradation
0%
0%
0%
Snow
Water Content
North Sierra/Trinity 0%
Central Sierra 0%
South Sierra 0%Slide24
CA Reservoir Storage
July 8, 2014Slide25
Current Water Supplier Restrictions*
Mandatory:
62
water suppliers
Includes 6 rationingVoluntary
:
154
water suppliersDrought impacts are strongly tied to local and regional water supply conditions
*
As of July 7, 2014, compiled by DWR
Slide26
The State’s Response
2013
California Water Plan Update 2013 (draft)
Governor establishes Drought Task Force
2014
Governor proclaims Drought Emergency on Jan. 17
California Water Action Plan released
Drought Legislation: SB 103/104
Governor issues Executive Order April 25 to re-double drought effortsSlide27
Governor’s April 25 Proclamation
Highlights
Facilitate water transfers and exchanges
Urban water suppliers directed to address outdoor
water use
Californians directed to eliminate water waste
Limit outdoor watering; irrigation, washing hard surfaces, car washing;
commercial establishments
Homeowner
association
rules voided
Assist with temporary interconnections between water systems
Protect threatened and endangered species
CEQA / Water Code sections
suspended to speed up actions, including water transfersSlide28
CPUC’s Regulatory Response
February 27, 2014 – CPUC adopted
Res. W-4976
Drought
procedures for water conservation, rationing and service connection moratoria
Comply
with Governor’s call for 20%
voluntary conservation
Tariff
Rule No. 14.1
Water Conservation and Rationing Plan
Lists non-essential and unauthorized water uses
Tariff
Schedule 14.1
Mandatory rationing
Requires DWA approval
All
Class
A and B utilities
have
Rule 14.1 in
place
CPUC
monitoring vulnerable systemsSlide29
Tariff Rule
14.1 Highlights
Voluntary Conservation Plan
Customers
Notified by Bill Insert or Direct Mailing
Option to Request Activation of Staged Mandatory Rationing (Schedule 14.1)
Small Utilities (< 2,000 connections) Shall Make Conservation Kits Available
Section A of Rule: Non-Essential UsesSlide30
Non-Essential, Unauthorized Water Use
Anything more than “minimal”
landscaping
“Excessive” water use (per utility notification)
Potable water in gutters, streets
Private car washing (except w/shut-off nozzle)
Washing buildings, driveways, patios, etc., w/potable water
Use of potable water for lawns, gardens, etc., other than drip irrigation or hand watering on specific schedules
Use of potable water for construction purposes, dust control, etc., if other sources availableSlide31
Non-Essential, Unauthorized Water Use
Use of potable water for street cleaning
Operation of commercial car washes unless 50% recycling per cycle
Use of potable water for outside plants, lawn, landscape, turf during certain hours
Use of potable water for decorative fountains, unless recycled water used
Use of potable water for filling/refilling swimming pools
Water service in restaurants, unless requested
Use of potable water to flush hydrants, except when required for public safetySlide32
Schedule 14.1 - Rationing
Utility makes decision on whether more stringent measures are
required
Must file w/CPUC to activate staged mandatory rationing measures in Rule
14.1
Filing conditioned on:
Declaration of Mandatory Rationing – can be made by utility or governing
agency (e.g., State Water Board)
Whether utility is unable to address voluntary conservation levels set by itself, its supplier or governing agency
Whether utility chooses to subsequently activate a different stage
Utility may not activate Schedule 14.1 unless authorized by
CPUC
Customer notification, public hearing requiredSlide33
Schedule 14.1: Enforcement
Utility may charge a water use violation fine if non-essential/unauthorized use is
observed (min. 3 Ccf/person/ month)
After
one written warning, utility can install flow-restricting
device
All monies collected via fines or penalties will be used to offset lost revenuesSlide34
Recovery of Lost Revenues
Utilities
w/partial
decoupling
WRAMs
Can file for memorandum (tracking) accounts to track expenses, monies collected and lost revenues – can letter request recovery of the net balance, but … they must subtract amount equal to 20bp reduction in current authorized ROE – even then, recovery cannot exceed authorized ROR
Utilities w/full decoupling
WRAMs
Can file for memo account that only tracks expenses incurred and monies collected, since WRAM already protects for lost revenuesSlide35
New
Emergency Regulations
Issued by State Water Resources Control Board July 8; approval on July 15
th
Mandatory conservation actions, monthly data collection of water production, temporary water restrictions – prohibits:
The direct application of water to any hard surface for washing.
Watering
of outdoor landscapes that cause runoff to adjacent property,
walkways
, roadways, parking
lots, etc.
Using hose
to wash
automobiles, unless fitted
with
shut-off
nozzle.
Using
potable water in a fountain or decorative water feature, unless the water is
recirculated
.
Violations punishable by fines of $500 per day; any employee of a public agency may write and issue a ticket to a violator – raises all sorts of “water police” questionsSlide36
New
Emergency Regulations
State Board Chair Felicia Marcus has stated that new regs
don’t apply to CPUC-regulated water utilities, but CPUC may well adopt them
CWA’s July 14 comments note that Rule and Schedule 14.1 constitute drought management response
Water IOUs will
continue to work with the CPUC to coordinate their existing drought response plans and programs with the State Board’s new regulationsSlide37
Questions?
Thank
You
Jack Hawks
California Water Association
jhawks@calwaterassn.com
415.561.9650