History of 2015 BMP 1.4 Revisions
In 2007 the Council adopted an amendment to the conservation pricing BMP (then BMP 11, currently numbered BMP 1.4), which included a provision calling for a review of the BMP for possible refinement after five years. In 2012 the Council initiated this review and directed the Utility Operations (UO) Committee to perform several investigations to support this review. The Committee:
1. Looked at the rate at which water agencies are meeting the 70/30 volumetric/fixed proportions in Option 1 of the BMP (BMP 1.4 Status assessment);
2. Discussed the question the impact of Prop 218 on volumetric pricing, and found no indication of incompatibility; and
3. Surveyed water agencies about the barriers to implementing the BMP. Due to the low number of agencies using Option 2, this was not assessed as part of the UO review (BMP 1.4 Barriers Survey).
The Council held two BMP 1.4 Retail Conservation Pricing workshops in 2013 in partnership with ACWA, CUWA, and DWR. A total of 188 people attended the workshops. The workshops included panel discussions and small group listening sessions where participant feedback was collected. The BMP 1.4 Workshop Report summarizes the feedback from these workshops.
BMP 1.4 Project Advisory Committee (2013-2014)
A scope and BMP 1.4 project advisory committee (PAC) structure was approved by the Council Board in August 2013. All of the workshop feedback and committee research was made available for the PAC's review process. The PAC originally was given a 90-day timeline to complete its tasks, which was extended until January 2014. PAC meetings were open to all Council members. After meeting seven times throughout the fall of 2013, the BMP 1.4 PAC developed a set of recommendations as well as outstanding issues outlined in the BMP 1.4 PAC final report. The BMP 1.4 PAC materials are archived in the BMP 1.4 Process repository below.
BMP 1.4 Board Committee (2014-2015)
At its meeting on February 25, 2014, the Council Board considered the BMP 1.4 PAC final report. To address the outstanding issues outlined in the report, the Board created an ad-hoc Board committee comprised of 4 Board members each from Groups 1 and 2. The Board Committee's materials are also archived below. Over the course of the next 12 months, the Board Committee met in person, or via conference call, 12 times.
At its meeting on March 6, 2015, the Committee reviewed the results from the Member Survey that had been circulated regarding possible changes to the reporting requirements for BMP 1.4 Part II (retail sanitary wastewater service pricing.) The Committee reached agreement on the content of the proposed changes, including the conservation pricing matrix, originally developed by the Project Advisory Committee in 2013. The Committee also agreed that the Part 1 changes (new Option 3) should sunset June 30, 2017. The Committee did not reach agreement on the proposed duration of the Part 2 changes – (i.e., the specific “good faith efforts” and reporting commitments):
- Group 1 proposed that: the changes to Part 2 would sunset June 30, 2017. After that date, Part 2 would revert to its current language. The Council Board, as then constituted, could choose to revisit BMP 1.4 in light of the pilot.
- Group 2 proposed that: the changes to Part 2 would have no sunset. After June 30, 2017, when the matrix sunsets, the Part 2 changes would remain.
On March 11, 2015, the Council Board held a special meeting to receive the final recommendations from the BMP 1.4 Board Committee. After discussion, the Council Board approved the following proposals that were sent to the Plenary for review at its March 25, 2015, meeting, and decision at its June 18, 2015, meeting:
1. Effective July 1, 2015, the Retail Conservation Pricing Matrix, as presented by the Board Committee, would be added to Part 1 of BMP 1.4, as reporting Option 3. Option 3 will be available for reporting for 2013, 2014, 2015 and 2016. The Option will sunset on June 30, 2017. At that time, Part 1 of BMP 1.4 will revert to its current language, with Options 1 and 2 as the only reporting options. The Council Board, as then constituted, can decide whether to further review or revise BMP 1.4 after consideration of the results of the two-year pilot project.
2. The “Good Faith Effort” and reporting commitments, as developed by the Board Committee, will be added to Part 2 of BMP 1.4. Members can choose to report for 2013 and 2014. Reporting for 2015 and 2016 will be required for “on track” status. The approved changes will sunset on June 30, 2017. At that time, Part 2 of BMP 1.4 will revert to its current language. The Council Board, as then constituted, can decide whether to further review or revise BMP 1.4 after consideration of the results of the two-year pilot project.
The Board also directed the BMP 1.4 Board Committee to finalize the exact language of the proposed amendments.
At the March 25, 2015, Plenary meeting, the Board recommendations were presented as an information item only.
In April and May 2015, the Board Committee developed the full text of the final language. It presented that text to the Board at its May 20, 2015 meeting. After discussion, the Board approved the language as consistent with the Board's March 11, 2015 decision. It sent the final language to the Plenary.
Outreach efforts to Council members and senior utility management occurred in April and May. At its June 18, 2015, meeting, Council members had a final opportunity to discuss the proposed amendments. Voting on the amendments concluded on June 22, 2015. Council members approved the 2 year pilot.