Water Use Allocation and Excess — CleanPowerSF Sfpuc Commission, January 25, 2022

1 Non-potable Water Ordinance Excess Use
Charge Program Updates
Commission Presentation
January 25, 2022
2 San Francisco’s Non-potable Water Ordinance
• Applies to new buildings and development
projects 100,000 square feet or greater
• Buildings that are 100% commercial must
capture, treat, reuse all wastewater, not just
graywater, onsite to help meet non-potable
demands
• Multi-family residential and mixed-use
buildings must capture graywater to meet
clothes washing demands in addition to
toilet flushing and irrigation demand
Non-Potable Ordinance (NPO) Excess Use Charge
Program
• The goal is to enforce the Non-Potable Water Ordinance • Commission approved the Excess Use Charge Program in 2017 (Resolution 17-0019) • Each NPO project is assigned an allocation of potable water • Any unit of water used above the allocation will receive Excess Use Charges (3x water and sewer rates)
3 Proposed Process: Excess Use Charge Program
• Projects will be assigned an allocation of potable make-up water based on SFPUC approved Water Budget Documentation
• Projects will self-report data monthly on volume of potable make-up water used and treated non-potable water sent to end uses
• SFPUC will use self-reported and CC&B data to calculate any applicable excess use charges
• Applicable excess use charges will appear on project’s bill 2 times per year (August & February)
• SFPUC will allow projects to apply for an allocation revision, temporary suspension, or appeal of excess use charges
4 Proposed Commission Action: Approve Technical
Modifications to the Program
1) Change the name to Non-Potable Water Ordinance Excess Use Charge Program
2) Modify the process for determining the Potable Make-up Water Allocation 3) Change the water usage data reporting requirements
4) Establish methodology for applying excess use charges on a project’s bill and change the billing schedule for excess use charges to 6-month cumulative basis
5) Clarify eligibility requirements and process for projects to request Temporary Suspension or Potable Make-Up Allocation Revision 6) Authorize the General Manager, in consultation with the City Attorney, to approve future non-material modifications to the Program Rules 5 DEPARTMENT Water Enterprise AGENDA NO. 12
MEETING DATE January 25, 2022
APPROVAL:

COMMISSION

SECRETARY

AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Approve Modification of the Program Rules for the Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code: Regular Calendar
Project Manager: Steve Ritchie
Approve Modification of the Program Rules for the Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code
Summary of
Proposed
Commission Action:

Approve modification of the program rules for the Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code to ( 1) change the name of the program to Non- Potable Water Ordinance Excess Use Charge Program ; (2) modify the process for determining the Potable Make-Up Allocation for projects subject to the Program; (3) change the water usage data reporting requirements for projects subject to the Progr am; ( 4) establish methodology for applying excess use charges on a project’s bill and change the billing schedule for excess use charges to a six-month cumulative basis; (5) clarify the eligibility requirements and process for projects to request a Temporary Suspension or a Potable Make-Up Allocation Revision; and (6) authorize the General Manager, in consultation with the City Attorney, to approve future non- material modifications to the Non- Potable Water Ordinance Excess Use Charge Program Rules that are necessary or appropriate to facilitate implementation of the Program.

Background: City and County of San Francisco Health Code Article 12C Requirements
In September 2012, the City and County of San Francisco’s Board of Supervisors adopted the Onsite Water Reuse for Commercial, Multi- family, and Mixed Use Development Ordinance. Commonly known as the Non-potable Water Ordinance, it added Article 12C to the San Francisco Health Code allowing for the collection, treatment, and use of alternate water sources for non-potable applications, such as toilet flushing and irrigation (Ordinance 195 -12). In October 2013, the Board of Supervisors amended Article 12C to allow district- scale non-potable water systems consisting of two or more parcels sharing Approve: Modification of Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code
Commission Meeting Date: January 25, 2022
non-potable water (Ordinance 208-13). In July 2015, the Board of Supervisors amended Article 12C to mandate onsite water reuse in new large development projects (Ordinance 109- 15). All new buildings of 250,000 square feet or more of gross floor area must install and operate non-potable water reuse systems to treat and reuse available alternate water sources for toilet and urinal flushing and irrigation. I n December 2016, the Board of Supervisors amended Article 12C to clarify implementation requirements for district- scale systems (Ordinance 246-16).

In October 2021, the Board of Supervisors amended Article 12C to (1) lower the threshold from 250,000 to 100,000 square feet of gross floor area, requiring that new buildings be constructed, operated, and maintained using specified alternate water sources for required non- potable uses; ( 2) exempt certain affordable housing projects and property uses from that r equirement; (3) require that certain categories of new buildings use specific sources of nonpotable water for specific purposes; (4) modify certain administrative review fees; (5) require the payment of excess use charges and penalties for failure to properly use and maintain alternate water source systems; and (6) require the completion of reports on purified water, recycled water, and Non- potable District Systems (Ordinance 210536)
. The
legislation became effective in November 2021.

A
rticle 12C requires development project applicants to submit and have approved by the San Francisco Public Utilities Commission (“SFPUC”) General Manager, Water Budget Documentation and Water Use Calculator to assess the amount of required Alternate Water Sources (e.g. rainwater, graywater, blackwater, foundation drainage, or condensate) produced onsite (“NPO Supply”), and the required non- potable uses (e.g. toilet and urinal flushing , clothes washing, irrigation, and drain trap priming) (“NPO Demand”) .

Article 12C specifies which Alternate Water Sources and non-potable uses are required, based on the size and type of the development project and the date upon which the application for a site permit was submitted.

Water Budget Requirements
The SFPUC General Manager will use the Water Budget
Documentation and Water Use Calculator to establish the development project’s Water Budget. The Water Budget will specify the NPO Compliance Volume (i.e. the volume of non-potable water that must be treated and reused per the requirements of Article 12C) as follows:
• If, based on the Water Budget Documentation and Water Use Calculator, the NPO Supply exceeds the NPO Demand , the approved Water Budget will require that 100% of NPO
Demand shall be met by using the NPO Supply.
• If, based on the Water Budget Documentation and Water Use Approve: Modification of Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code
Commission Meeting Date: January 25, 2022
Calculator, the NPO Supply is less than the NPO Demand, the approved Water Budget will require that 100% of the available NPO Supply shall be used to meet the NPO Demand.

T
he approved Water Budget is used by the General Manager to determine the assigned water use allocations for each account classified as a Mandatory Non-potable Water Ordinance Account.

Currently, the Potable Make-Up Allocation is calculated based on the total potable water volume n eeded to serve the building’s potable water fixtures and any other fixtures not being supplied treated alternate water. Allocations are set to 110% of the estimated potable water volume for a project based on its approved Water Budget.

Additionally, the allocation is based solely on the available graywater supplies and non-
potable demands required by Article 12C.

Currently, projects receive a wet weather allocation and a dry weather allocation, recognizing that water use fluctuates between seasons.

Projects that use additional alternate water supplies (e.g. rainwater, blackwater, foundation drainage, or condensate) or offset additional non-potable water demands (e.g. clothes washing and drain trap priming) in excess of the requirements of Article 12C, do not receive a smaller Potable Make -Up Allocation due to their increased onsite water production and reuse.

Enforcement of Article 12C Requirements
P
er Article 12C, projects required to comply with its requirements shall use required Alternate Water S ources to meet the non-potable water demands from required non- potable uses, as laid out in the approved Water Budget Documentation and Water Use Calculator , for the life of the building. To ensure projects are complying with this requirement, SFPUC implemented the Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code (“Program”). The Commission approved the Program in January 2017 (Resolution 17-0019).

T
he objectives of the Program include:

1. Reducing the use of SFPUC potable water supplies for non-potable purposes by using treated alternate water sources;

2. Enforcing the provisions of Article 12C, which as of January 1, 2022, require that new buildings of 100,000 square feet or more of gross floor area be constructed, operated, and maintained using specified alternate water sources for required non-potable uses; and

3. Discouraging water use practices that are wasteful and/or unnecessary for health and safety.

Approve: Modification of Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code
Commission Meeting Date: January 25, 2022
The existing Program calls for each new project required to comply with Article 12C to be classified as a Mandatory Non-potable Water Ordinance Account in SFPUC’s Billing System. Only accounts classified as Mandatory Non -potable Water Ordinance Account by SFPUC are subject to the Program.

In
the existing Program, the billing schedule for excess use charges is on a monthly basis and relies on the project’s billing data to determine if excess use charges are applicable. Each unit of water used in excess of the account’s Potable Make -Up Allocation for each monthly billing period is billed at a rate equal to 300% (“3x”) of the water and sewer rates applicable to the customer at the time of use.

I
n the existing Program, a project may request a revised Potable Make-Up Allocation or temporary exemption to the project’s allocation by completing and submitting an NPO Allocations Appeals Form.

SFPUC staff are proposing updates to the existing P rogram to improve the implementation and effectiveness of the Program.

Description of
Action:

SFPUC staff propose that Commission approve the attached resolution, modifying the Program rules for the Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code .

The revised Program rules will replace the existing Program Rules adopted in 2017 (a copy of which can be found at
https://sfpuc.sharefile.com/share/view/se7b447eb95f444eb) in their entirety. The proposed changes are summarized below:
1) C
hange the name of the program to Non- Potable Water
Ordinance Excess Use Charge Program . This modification better reflects the intent of the program to enforce the Non- Potable Water Ordinance.
2) M odify the process for determining the Potable Make- Up Allocation for projects subject to the Program . In the existing approach, the allocation is calculated based on the total potable water volume needed to serve the building’s potable water fixtures and any other fixtures not being supplied treated alternate water . This means the allocation accounts for all potable uses within the building (e.g. kitchen sinks, showering, etc.) and any potable make -up water being supplied to the onsite treatment system. In the existing approach, the
allocation is enforced based on the SFPUC’s water meter, which accounts for building’s total potable water use . In the proposed modification, the P otable Make-Up A llocation is calculated based on the NPO Make-Up Water Volume (i.e. the volume of potable water required to meet any shortfall in NPO Approve: Modification of Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code Commission Meeting Date: January 25, 2022
Supply) plus 10% of the NPO Compliance Volume, as defined in the attached Program Rules . The Potable Make -Up
Allocation will reflect only the potable make-up water needed to supply the onsite treatment system, not the building’s total potable water use. This means that the Potable Make -Up Allocation will not factor in water used for potable purposes (e.g. kitchen sinks, showering). The additional 10% is included in the existing approach and is proposed to be included in the proposed modification as well because it provides a buffer for projects and to allow a small margin of error in the volumes reported in the Water Budget Documentation. The proposed modification would also remove the current approach for wet weather and dry weather allocations. These modifications will allow SFPUC to more accurately track any make-up water used above a project’s allocation.
3) Cha
nge the water usage data reporting requirements for
projects subject to the Program. In the existing approach, projects are not required to submit data to the SFPUC.

In the
proposed modification, projects are required to submit
data on a monthly basis to the SFPUC quantifying their NPO Make-Up Water Volume and NPO Compliance Volume.

Projects must submit the total monthly flow volume from both (1) the flow meter on the treated Alternate Water Source distribution system, and (2) the flow meter on the potable make-up water pipeline to the Alternate Water Source System.

Both flow meters are required for all projects per the San Francisco Department of Public Health Director’s Rules and Regulations Regarding the Operation of Alternate Water
Source Systems. Data must be submitted to the SFPUC by the 15 th of each month for the previous calendar month.

Every month, SFPUC will compare the project’s reported data from the flow meter on the potable make-up water pipeline to the Alternate Water Source System against the project’s Potable Make-up Allocation. Any volume of water used that exceeds the Potable Make-up Allocation is considered the excess use volume. At the end of each 6-month compliance period (i.e. in early January and early July), SFPUC will conduct a true-up of the monthly data to determine whether the project met the cumulative six month Potable Make-Up
Allocation. If the project exceeds its Potable Make-Up
Allocation, excess use charges will be applied to the excess use volume. If a project does not report the data as described above, SFPUC will assume that during the period for which there is no data, the project did not treat or reuse any non- potable water. As a result, excess use charge may be applied to the volume of water that exceeds the Potable Make-Up
Approve: Modification of Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code
Commission Meeting Date: January 25, 2022
Allocation. This modification will allow SFPUC to more accurately track any make-up water used above a project’s allocation.

SFP
UC will review reported data from the flow meter on the treated Alternate Water Source distribution system for tracking purposes relative to the project’s NPO Compliance Volume, however, the data will not be used to calculate excess use charges.
4) Est
ablish methodology for applying excess use charges on a project’s bill and change the billing schedule for excess use charges to a 6- month cumulative basis . In the existing approach, excess use charges incurred during any one billing cycle are applied to the project’s next bill immediately following that billing cycle. In the proposed modification, excess use charges will be applied on a bi -annual basis, meaning that excess use charges will be applied to a project’s bill two months after the end of the 6-month compliance period. For example, e xcess use charges incurred during January to June will applied to a project’s August bill. Excess use charges incurred during July to December will be applied to a project’s February bill.
5) Excess use charges will be applied to a project’s bill as follows:

Each unit of water above the project’s Potable Make-Up
Allocation for the six month compliance period will be billed at a rate equal to 200% (“2x”) of the water and sewer rates applicable to the customer at the time of use. Because the customer has already paid once for the potable water and associated sewer service in their standard monthly bill, the excess use charge that will be applied at the end of the 6- month compliance period is equal to 2x the water and sewer rate for the excess water used. Collectively, the total excess use charges amount to 300% (3x) the applicable water and wastewater rates.

These mo
difications to bill excess use charges on a 6 -month
basis, rather than every month, will ease SFPUC’s ability to administer the Program. Additionally, as a projects’ water use can fluctuate on a month-to-month basis, billing on a 6-month basis allows projects more flexibility in how they meet their Potable Make-up Allocation.
6) Clarify the eligibility requirements and process for projects to request a Temporary Suspension or a Potable M ake-Up
Allocation Revision. In the existing appr oach, a project may request a temporary suspension of an onsite water system’s operations or a revised water use allocation by completing and Approve: Modification of Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code
Commission Meeting Date: January 25, 2022
submitting a Non -potable Program Mandatory Allocation
Appeals Form. In the proposed clarification, a project can still request a temporary suspension or revised allocation. For a temporary suspension, a project must submit a Non -Potable Water Ordinance Temporary Suspension Request Form
(attached) and provide data to support the request. For a revised allocation, the proposed criteria clarify the conditions under which a revised allocation request will be allowed. For example, a project will be required to specify whether the request for a revised allocation is due to insuff icient alternate water supplies, larger than anticipated or increased non-potable demands, or both conditions. Projects will also be required to specify whether the request is for a temporary or long- term revision, depending on the amount of data provided to support the request . Projects must submit a Non -Potable Water Ordinance Allocation Revision Form (attached) and provide data to support the request. This modification clarifies the criteria for projects to request a revised allocation , which will allow SFPUC to more accurately determine whether a revision is appropriate.
7) Authorize the General Manager, in consultation with the City Attorney, to approve future non- material modifications to the Non-Potable Water Ordinance Excess Use Charge Program
Rules tha t are necessary or
appropriate to facilitate
implementation of the Program. This modification eases the administrative burden for SFPUC staff by giving the staff the flexibility to make changes to the program with General Manager approval and consultation with the City Attorney.

Impacted projects will be informed of the proposed Program modifications through p lanned outreach and other communication activities such as webinars and frequently asked questions for the design and development community. The SFPUC will also update the Onsite Water Reuse Program Guidebook and web page
(https://sfpuc.org/construction-contracts/design-guidelines- standards/onsite-water-reuse) to inform impacted projects. The SFPUC will continue to send notification letters to projects regarding the Program modifications.

Result of Inaction: A delay in adopting this Action will hinder the SFPUC’s ability to effectively enforce the requirements of Article 12C of the City and County of San Francisco Health Code.

Schedule: If adopted, the modified Program rules will go into effect immediately for all affected projects.

Environmental
Review:

This action does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines Section 15378(a) because there would be no physical change in the environment.

Attachment(s): 1. Revised Rules for the Non-Potable Water Ordinance Excess Use Charge Program

2. Non-potable Water Ordinance Allocation Revision Form

3. Non- potable Water Ordinance Temporary Suspension Request Form

4. Non-potable Water Ordinance Excess Use Charge Appeal Form

PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.

W
HEREAS, In June 2015, the San Francisco Board of Supervisors adopted the San Francisco Non-potable Water Ordinance (Ordinance 109-15), amending the City and County of San Francisco Health Code, Article 12C, from a code that regulated voluntary use of alternate water source systems for non-potable uses to a code that required that new buildings of 250,000 square feet or more of gross floor area be constructed, operated, and maintained using available alternate water sources for required non-potable uses; and WHEREAS, On January 24, 2017, by Resolution No. 17- 0019, this Commis sion approved the Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12C of the City and County of San Francisco Health Code; and WHEREAS, SFPUC staff are proposing to change the name of the program to Non- Potable Water Ordinance Excess Use Charge Program to better reflect the intent of the program to enforce the Non-Potable Water Ordinance; and WHEREAS, In October 2021, the Board of Supervisors amended Article 12C (Ordinance 210536) to, among other things (1) lower the threshold from 250,000 to 100,000 square feet of gross floor area, for requiring that new buildings be constructed, operated, and maintained using specified alternate water sources for required non- potable uses, and ( 2) require the payment of excess use charges and penalties for failure to properly use and maintain alternate water source systems; and
WHEREAS, SFPUC staff are proposing to modify the process for determining the Potable Make-Up Water Allocation for projects subject to the Program, changing the existing approach so that the allocation is calculated based on the N on-potable W ater Ordinance Make-Up Water Volume (i.e. the volume of potable water required to meet any shortfall in NPO Supply) plus 10% of the N on-potable Water Ordinance Compliance Volume (i.e. the volume of non- potable water that must be treated and reused per the requirements of the Non-potable Water Ordinance), to allow SFPUC staff to more accurately track any make-up water used above a project’s allocation; and
WHEREAS, SFPUC staff are proposing to c hange the water usage data reporting requirements for projects subject to the Program, changing the existing approach so that projects are required to submit data on a monthly basis to the SFPUC quantifying their NPO Make-Up Water Volume and NPO Compliance Volume from the flow meters that are required for all projects per the San Francisco Department of Public Health Director’s Rules and Regulations Regarding the Operation of Alternate Water Source Systems , to allow SFPUC staff to more accurately track any make-up water used above a project’s allocation; and
WHEREAS, SFPUC staff are proposing to establish methodology for applying excess use charges on a project’s bill and change the billing schedule for excess use charges to a 6 - month cumulative basis , changing the existing approach so that excess use charges will be applied bi-annually, meaning that excess use charges will be applied to a project’s bill two months after the end of the 6- month compliance period, to ease SFPUC staff’s ability to administer the Program and allow projects more flexibility in how they meet their Potable Make-Up Allocation; and
WHEREAS, SFPUC staff are proposing to clarify the eligibility requirements and process for projects to request a Temporary Suspension or a P otable Make-Up Allocation Revision, changing the existing approach to clarify the conditions under which a revised allocation request will be allowed and to require projects to specify whether the request is for a temporary or long-term revision, depending on the amount of data provided to support the request , to allow SFPUC staff to more accurately determine whether a revision is appropriate; and
WHEREAS, This action does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines Section 15378(a) because there would be no physical change in the environment; now, therefore, be it RESOLVED, That this Commission hereby approves the modification of the program rules for the Water Use Allocation and Excess Use Charge Program for Accounts Complying with Article 12 C of the City and County of San Francisco Health Code to ( 1) change the name of the program to Non- Potable Water Ordinance Excess Use Charge Program; ( 2) modify the process for determin ing the Potable Make-Up A llocation for projects subject to the Program; (3) modify enforcement procedures to rely on projects’ self- reported data regarding the volume of potable make -up water entering the system ; ( 4) establish methodology for applying excess use charges on a project’s bill and change the billing schedule for excess use charges to a 6-month calendar year schedule; (5) modify the eligibility requirements and process for projects to request a temporary suspension or a revised Potable Make-Up Allocation revision; and (6) authorize the General Manager, in consultation with the City Attorney, to approve future non-material modifications to the Non- Potable Water Ordinance Excess Use Charge Program Rules that are necessary or appropriate to facilitate implementation of the Program.

I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 25, 2022.

Secretary, Public Utilities Commission
OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.

Rules for the SFPUC’s Non-Potable Water Ordinance Excess Use Charge Program
In January 2017, t the San Francisco Public Utilities Commission (Commission or SFPUC), by Resolution No. 17-0019, approved the Non-potable Water Ordinance Excess Use Charge Program (Program). The Program was established for each development project (referenced herein as project) required to comply with Article 12C of the San Francisco Health Code (also known as the Non-potable Water Ordinance (NPO)). The purpose of the Program is to ensure that development projects required to comply with Article 12C are treating and reusing alternate water sources onsite for the life of the building.

The objectives of the Program include:

1. Reducing the use of SFPUC potable water supplies for non-potable purposes by using treated alternate water sources;

2. Enforcing the provisions of Article 12C, which as of January 1, 2022, will require that new buildings of 100,000 square feet or more of gross floor area be constructed, operated, and maintained using specified alternate water sources for required non-potable uses; and

3. Discouraging water use practices that are wasteful and/or unnecessary for health and safety.

T
he SFPUC implements the Program through the Rules adopted by the Commission. Upon approval by the Commission, these rules will replace the rules adopted by Resolution No. 17-0019 in their entirety.

A. Article 12C Water Budget Requirements
A
rticle 12C requires project applicants to use the , Water Budget Calculator and to submit Water Budget Documentation to assess the amount of required Alternate Water Sources (e.g. graywater, blackwater, foundation drainage, or condensate) produced onsite (NPO Supply), the required non-potable uses (e.g. toilet and urinal flushing, clothes washing, irrigation, and drain trap priming) (NPO Demand), and the project’s total water demand. Article 12C specifies which Alternate Water Sources and non-potable uses are required, based on the s
ize and type of the project. Table 1, below, presents a summary of those requirements.

The SFPUC General Manager or any individual designated by the General Manager to act on his or her behalf (herein referred to as General Manager) will use the information submitted in the Water Budget Calculator and the Water Budget Documentation to establish the project’s Water Budget. The approved Water Budget will specify the NPO Compliance Volume (i.e. the volume of non-potable water that must be treated and reused per the requirements of Article 12C as defined in equation 1 below), the NPO Make-Up Water Volume (i.e. the volume of potable water required to meet any shortfall in NPO Supply as defined in equation 2 below), and the Potable Make-Up Allocation (i.e. the NPO Make-Up Water Volume plus 10% of the NPO Compliance Volume as defined in equation 3 below). The General Manager will assign projects monthly and cumulative 6-month Potable Make-Up Allocations. The cumulative 6-month Potable Make-Up Allocation allows projects more flexibility in how they meet their Potable Make-up Allocation.

Table 1. Requirements for NPO Supply and NPO Demand for Large Development Projects under Article 12C of the San Francisco Health Code.

Application
for Site
Permit
Submitted:

Pre-Jan.1 2022 Post-Jan.1 2022
Required
Alternate Water
Sources (NPO
Supply)
Required
Non-potable
Uses (NPO
Demand)
Required
Alternate Water
Sources (NPO
Supply) 1
Required
Non-potable
Uses (NPO
Demand)
Commercial • Graywater
• Rainwater
• Foundation
drainage
• Toilet &
urinal
flushing
• Irrigation
• Blackwater
• Condensate
• Toilet &
Urinal
flushing
• Drain trap
priming
Multi-family
Residential
and Mixed-
Use
• Graywater
• Rainwater
• Foundation
drainage
• Toilet &
urinal
flushing
• Irrigation
• Graywater
• Condensate
• Toilet &
urinal
flushing
• Irrigation
• Clothes
washing
• Drain trap
priming
1 Projects may choose to capture rainwater or stormwater voluntarily; however, they are not required alternate water sources.

(Eq. 1) (a) If NPO Supply > NPO Demand, NPO Compliance Volume = NPO Demand
(b) If NPO Supply < NPO Demand, NPO Compliance Volume = NPO Supply
(Eq. 2) NPO Make-Up Water Volume = NPO Demand – NPO Supply (greater than or equal to 0)
(Eq. 3) Potable Make-Up Allocation= NPO Make-Up Water Volume + 0.1 * NPO Compliance Volume
B. Article 12C Water Usage Reporting

1. Usage Data To Be Reported: Projects are required to submit data on a monthly basis to the General Manager. Projects must submit the total monthly flow volume from both (1) the flow meter on the treated Alternate Water Source distribution system (which measures the volume of treated non-potable water used for non-potable demands in the building), and (2) the flow meter on the potable make-up water pipeline to the Alternate Water Source System (which measures the volume of potable water used to meet any shortfall in NPO Supply).2 The flow meters must be regularly calibrated to ensure accuracy in the data being reported.

If a flow totalizer is being used by the project on either flow meter, the project shall submit the following information: (1) the meter reading at the beginning of the first day of the calendar month, (2) the meter reading at the end of the last day of the calendar month, and (3) the total volume recorded, i.e. reading (2) minus reading (1).

2. Data Submission Deadline: Data must be submitted by the 15th of each month for the previous calendar month.

3. SFPUC Response to Reported Data:
a) Monthly submission of data will allow the project and the SFPUC to track whether the project is on track to meet its Potable Make-Up Allocation. Every month, the General Manager will compare the project’s reported data from the flow meter on the potable make-up 2 Both flow meters are required for all projects per the San Francisco Department of Public Health Director’s Rules and Regulations Regarding the Operation of Alternate Water Source Systems.
w
ater pipeline to the Alternate Water Source System against the project’s Potable Make-Up Allocation. Any volume of water used that exceeds the Potable Make-Up Allocation is considered the excess use volume. After reviewing the data, the General Manager will promptly provide email notification to the project’s treatment system manager and the SFPUC billing accountholder regarding whether or not the project is on track and is likely to receive an excess use charge at the end of the 6- month compliance period.
b) At the end of each 6-month compliance period (i.e. in early January and early July), the General Manager will conduct a true-up of the monthly data to determine whether the project met the cumulative 6-month Potable Make-Up Allocation. If the project exceeds its Potable Make-Up Allocation, excess use charges will be applied to the excess use volume. c) If a project does not report the data as described above, the General Manager will assume that during the period for which there is no data, the project did not treat or reuse any non-potable water. As a result, excess use charge may be applied to the volume of water that exceeds the Potable Make-Up Allocation.
d) The General Manager will review reported data from the flow meter on the treated Alternate Water Source distribution system for tracking purposes relative to the project’s NPO Compliance Volume; however, the data will not be used to calculate excess use charges.

C. A
rticle 12C Excess Use Charge Program Enforcement
1) Enforcement Mechanism: As authorized by Article 12C at Section 12C.4(e), each project that exceeds its Potable Make-Up Allocation will be subject to excess use charges – additional fees for the volume of potable water used to meet any shortfall in supply.
2) Excess Use Charge Rate: For each project that exceeds its Potable Make- Up Allocation, the project will be subject to excess use charges that will be calculated and applied as follows:
a) Article 12C at Section 12C.4(e) authorizes excess use charges on each unit of potable water exceeding the Allocation at 300% (3x) the applicable water and wastewater rates.
b) Each unit of water above the project’s Potable Make-Up Allocation for the 6-month compliance period will be billed at a rate equal to 200% (“2x”) of the average water and sewer rates applicable to the project at the time of use. Because the project has already paid once for the potable water and associated sewer service in their standard monthly bill, the excess use charge that will be applied at the end of the six-month compliance period is equal to 2x the water and sewer rate for the excess w
ater used. Collectively, the total excess use charges amount to 300% (3x) the applicable water and wastewater rates.
3) Excess Use Charge Calculation: Using the project’s monthly bill for water and sewer fees, excess use charges will be calculated as follows:

E
xcess Use Volume = Total 6-month metered NPO Make-Up Water Volume – Total 6-month Potable Make-Up Allocation
P
rojects will be assigned monthly and cumulative 6-month Potable Make-Up Allocations. If the total 6-month metered potable makeup water is less than or equal to the total 6-month Potable Make-Up Allocation, the excess use volume is equal to 0.

A
dditionally, if a project does not report the data as described in Section B, SFPUC will assume that during the period for which there is no data, the project did not treat or reuse any non-potable water. The project’s excess use volume would be equal to the Total 6-month Potable Make-Up Allocation.

B
ased on the project’s billing data, the components of the excess use charge are calculated as follows:
• Water component rate: average water rate charged over the six-month compliance period
• Was
tewater component rate: average rate charged for all sewer fees— base, suspended solids (SSD), chemical oxygen demand (COD), oil & grease (GOD)—over the six-month compliance period
T
he total excess use charge is calculated as follows:

E
xcess Use Charge = 2 * Excess Use Volume * [Water Component Rate + Wastewater Component Rate]
4) E
xcess Use Charge Program Start Date: Excess use charges will not be incurred or assessed until the NPO Excess Use Charge Program Start Date.

In order to determine the start date, the General Manager will use the following approach: the General Manager will determine when the project has reached 25% building occupancy, a threshold at which most onsite reuse systems should have sufficient flow to begin operating. A project will be

c
lassified as having 25% occupancy when the billed monthly water usage is greater than 25% of the project’s total water demand as specified in the Water Budget Documentation and Water Budget Calculator for three consecutive months. The NPO Excess Use Charge Program Start Date will commence 1 year after reaching 25% occupancy. Projects will be notified of their NPO Excess Use Charge Program Start Date when they have reached the 25% building occupancy threshold. The General Manager will also provide projects will with instructions for submission of required data, as described above.
5) Enforcement Timing: The Potable Make-Up Allocations will be enforced on a 6-month cumulative basis, from January to June and July to December.

These 6-month periods, which are the same for all projects regardless of the project’s start date, are referred to as 6-month compliance periods. If a project begins eligibility for excess use charges in the middle of a 6-month compliance period, the Potable Make-Up Allocation will be enforced beginning the starting month until the end of that period. For example, if a project becomes subject to the allocation requirement in April, the initial compliance period will be between April and June.
6) Enforcement Billing: Projects will be billed for excess use charges on a bi- annual basis. Excess use charges will appear on the project’s water bill two months after the end of the 6-month compliance period (i.e., excess use charges for the January – June compliance period will be included on the August bill; excess use charges for the July – December compliance period will be included on the February bill).

D. T
emporary Suspension of Onsite Water Systems Operations
Request
A
project may request a temporary suspension of an onsite water system’s operations if natural disaster or any other circumstance beyond the reasonable control of the party from whom performance is required causes the onsite water reuse system to be inoperable for a period of time that is more than 30 days and therefore the project cannot reuse water onsite.

A
project can request a temporary suspension by completing and submitting an NPO Temporary Suspension Request form.
• A project must certify that except as may be specified in the temporary suspension request, the onsite reuse system has been operating according to the Operations & Maintenance Manual and to the best of its ability has been in compliance with the NPO.
• A project must specify the amount of time needed to re-start the onsite water system’s operation.
• A project must provide evidence to support their request for a temporary suspension.

If the project does not follow the process for a temporary suspension, the project i
s not meeting its obligation to continuously operate the onsite water system and therefore excess use charges may be incurred.

T
he General Manager will review the temporary suspension request and will communicate to the project whether additional info is needed or if the request is approved.

I
f the project needs to suspend operation of the onsite water reuse system for a period of time longer than approved in response to the original request, the project must submit another Non-potable Water Ordinance Temporary Suspension Request form for review and approval by the General Manager.

E. R
evised Potable Make-Up Allocation Request
A
project that is continuously operating the onsite water system in compliance with the NPO may request a revised Potable Make-Up Allocation if the project’s current Potable Make-Up Allocation is not representative of the project’s metered NPO Supply and/or actual NPO Demand. This includes situations where circumstances affecting the project’s water use practices, such as occupancy or zoning, have changed and significantly altered the project’s water usage since establishing the project’s approved Water Budget, warranting a modification to the project’s Potable Make-Up Allocation.

A
project can request a revised Potable Make-Up Allocation by completing and submitting an NPO Allocation Revision Form.

P
rojects can request two types of revisions to the Potable Make-Up Allocation.

The type of revision that is appropriate for a given project depends on how much data the project can provide to support the request for a revision. • Temporary revision: if a project has less than 6 months of continuous data to support a request for a revision3, the project can request a temporary revision, which would apply retroactively for a portion of the relevant six-month compliance period. For example, if a project experiences a change in water use habits in April, they could submit a temporary revision request at the end of June, along with supporting 3 SFPUC recognizes that water use and the generation of alternate water sources within a building and district can vary from month to month. SFPUC requires at least six months of data to support a request for a permanent revision so that SFPUC can confirm that the revised allocation is representative of average NPO Demand and NPO Supply. da
ta, and could receive a modified revision for the period of April – June. This revision would NOT apply permanently going forward. To receive a long-term revision, the project would need to go through the process for a long-term revision once they have at least six months of data to support the request.
• Long-term revision: long-term revisions to the Potable Make-Up Allocation will only be made based on at least six months of continuous4 da
ta to support the request. The data must demonstrate that the project’s current Potable Make-Up Allocation is not representative of the actual NPO Supply and/or NPO Demand.

Projects must complete the NPO Allocation Revision Form and provide evidence to support their request for a revised allocation. a. A project must certify that the onsite reuse system has been operating according to the Operations & Maintenance Manual and to the best of its ability has been in compliance with the NPO. b. A project must submit data demonstrating that the metered NPO Supply and/or NPO Demand are different from the approved Water Budget. For a long-term revision, data must be from at least a 6- month period. If fewer than 6 months of data are available, the project is only eligible for a temporary revision to the allocation. c. Revised allocations may be based on one of the following justifications:
i. Insufficient NPO Supply
ii. Larger than anticipated NPO Demand
Th
e General Manager will review the evidence submitted and make a determination about whether a revised allocation is warranted.

T
he General Manager also reserves the right to revise a project’s Potable Make- Up Allocation if it’s determined the Allocation no longer reflects the project’s actual water usage. The General Manager will communicate immediately to the project any action taken to revise the project’s Potable Make-Up Allocation.

F. Excess Use Charge Appeal Process
If a project subject to the NPO Excess Use Charge Program can demonstrate that they have been incorrectly charged excess use charges, the project can appeal the charges. For example, if a project submits their data late and 4 Certain discontinuous data will be considered on a case by case basis; for example, if a project has three months of data followed by one month of downtime for unplanned maintenance and three subsequent months of data.
t
herefore receives excess use charges, the project can appeal the excess use charges if an explanation and supporting documentation are provided.

P
rojects must submit an appeal within 30 days of receiving an excess use charge using the Excess Use Charge Appeal Form.

Th
e General Manager will review the evidence submitted and make a determination about whether the appeal can be granted. If an appeal is granted and the project has already paid the excess use charges that are at issue in the appeal, the General Manager will issue a refund.

Last updated 12/29/2021
San Francisco Public Utilities Commission

NON-POTABLE WATER ORDINANCE

ALLOCATION REVISION FORM
Projects subject to the Non-potable Water Ordinance Excess Use Charge Program seeking consideration of a revision to their potable makeup allocation must provide all information requested below. Incomplete requests will not be evaluated. Requests may be subject to a site visit by SFPUC staff to verify the claim. Requests may also be subject to an in-person meeting with SFPUC.

Customer Information
Customer Name: Phone Number:

Property Address: Alternate Phone Number:

SFPUC Account Number: Email Address:

Onsite Water Reuse System Information
Alternate Water Sources: Graywater
Blackwater
Foundation Drainage
Rainwater
Stormwater
AC Condensate
Other
Non-Potable End Uses: Toilet and Urinal Flushing
Irrigation
Clothes Washing
Drain Trap Priming
Other
Reason for Revision Request
A project may request an allocation revision if the project’s current Potable Make-up Allocation is not representative of the project’s metered alternate water supplies and/or non-potable demands. Please select a reason from the options below for which you are requesting a revision of your project’s allocation under the NPO Excess Use Charge Program. Please also fill out Table 1 below.

I
f requesting a revised allocation, you must acknowledge the following certification:

By checking this box, I certify that the onsite reuse system referenced above has been operating according to the approved Operations & Maintenance Manual and to the best of its ability has been in compliance with the Non- Potable Ordinance.

If requesting a revised allocation, select one of the following justifications:
a. Insufficient al ternate water supplies
b. Larger than anticipated o r increased non-potable demands c. Both conditions
R
evised allocations may be Temporary or Long-term, depending on the amount of data provided to support the request. How much data are available to support this request? Check one of the following :

Less than six months – revision, if approved, will be Temporary Greater than or equal to six months – revision, if approved, will be Long-term

Last updated 12/29/2021
Explanation of Request
Please provide a detailed explanation to support your request for an allocation revision as marked above. Please provide additional documentation and calculations that directly support your claim. If requesting a Long-term revised allocation, you must fill out Table 1 below. You must also describe here the basis for the proposed Long-term revised allocation presented in Table 1.

P
lease return this form and all required documentation to the address below:

SFPUC Water Resources Division, 525 Golden Gate Avenue, 10th Floor, San Francisco, CA 94102, or email to:
[email protected]
For SFPUC Use Only
Date received: ______________
Approved? ___Yes ___No
Type of revision granted:

Temporary revision; applies for dates to
Long-term revision; applies starting on
If approved with modifications, please explain:

If rejected, please explain:

Staff Initials/Date: ____________________________
Last updated 12/29/2021
Ta
ble 1. Summary of onsite supplies, demands, and potable makeup water use data in support of a request for a Revised NPO Potable Makeup Allocation. Data from at least six months must be included; additional data can be added if available.

Month
(month-year)
Current NPO Potable
Makeup Allocation
(gal/month)
Measured Potable
Makeup Water Use
(gal/month)
Available Onsite Supplies
(gal/month)
Non-potable Demands
(gal/month)
Proposed Revised NPO
Potable Makeup Allocation
Last updated 12/29/2021
San Francisco Public Utilities Commission

NON-POTABLE WATER ORDINANCE

TEMPORARY SUSPENSION REQUEST
FORM
Projects subject to the Non-potable Water Ordinance Excess Use Charge Program seeking approval from the SFPUC to temporarily suspend operation of the onsite water reuse system must provide all information requested below. Incomplete requests will not be evaluated. Requests may be subject to a site visit by SFPUC staff to verify the claim. Requests may also be subject to an in-person meeting with SFPUC.

Customer Information
Customer Name: Phone Number:

Property Address: Alternate Phone Number:

SFPUC Account Number: Email Address:

Onsite Water Reuse System Information
Alternate Water Sources: Graywater
Blackwater
Foundation Drainage
Rainwater
Stormwater
AC Condensate
Other
Non-Potable End Uses: Toilet and Urinal Flushing
Irrigation
Clothes Washing
Drain Trap Priming
Other
Reason for Temporary Suspension Request
A project may request a temporary suspension of an onsite water system’s operations if natural disaster or any other circumstance beyond the reasonable control of the party from whom performance is required causes the onsite water reuse system to be inoperable for a period of time that is more than 30 days and therefore the project cannot reuse water onsite.

Please specify the reason for your temporary suspension request.

I
f requesting a temporary suspension, you must acknowledge the following certification:

By checking this box, I certify that except as may be specified in the detailed explanation below, the onsite reuse system referenced above has been operating according to the approved Operations & Maintenance Manual and to the best of its ability has been in compliance with the Non-Potable Ordinance.

Last updated 12/29/2021
San Francisco Public Utilities Commission

NON-POTABLE WATER ORDINANCE

EXCESS USE CHARGE APPEAL FORM
Please complete the following form describing the reason(s) for your excess use charges appeal. Requests may be subject to a site visit by SFPUC staff to verify the claim. Requests may also be subject to an in-person meeting with SFPUC.

Customer Information
Customer Name: Phone Number:

Property Address: Alternate Phone Number:

SFPUC Account Number: Email Address:

Last updated 12/29/2021
Attach all supporting documentation supporting your appeal of excess use charges. List attached documentation below.

Attachments
Attachment Name Description/Comments
P
lease return this form and attachments to the address below:

If approved, and the project has already paid the excess use charges that are at issue in the appeal, please specify the amount of excess use charges to be credited:

If rejected, please explain:

Staff Initials/Date: ____________________________
Last updated 12/29/2021
Explanation of Request
Please specify the amount of time needed to re-start the onsite reuse system’s operation. Please provide a detailed explanation to support your request for a temporary suspension. Please provide additional documentation and calculations that directly support your claim.

P
lease return this form and all required documentation to the address below:

If rejected, please explain:

Staff Initials/Date: ____________________________

CleanPowerSF Sfpuc CommissionJanuary 25, 2022

CleanPowerSF Sfpuc Commission
January 25, 2022