COMMITTEE AGENDA MEMORANDUM
Water Supply and Demand Management Committee
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: title
Receive Information on Conservation and Stormwater Capture Project Update - “No Regrets” Package Implementation.
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RECOMMENDATION: Recommendation
Receive information on Conservation and Stormwater Capture Project Update - “No Regrets” package implementation.
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SUMMARY:
As part of the Water Supply Master Plan 2040 development, Valley Water’s Board of Directors (Board) approved a “No Regrets” package for implementation in September 2017 (Attachment 2). The “No Regrets” package of conservation and stormwater capture projects and programs is broadly supported by stakeholders, relatively low cost, and can be implemented independently of other projects and programs in the Water Supply Master Plan 2040. These projects and programs include:
1. Advanced Metering Infrastructure
2. Leak Repair Incentives
3. Graywater Rebate Program Expansion
4. Model Water Efficiency New Development Ordinance
5. Stormwater Capture
This memo provides an update on the efforts and progress to date in implementing the “No Regrets” package since the Water Conservation and Demand Management Committee update in August 2025.
Achieving the Board’s 2040 goal of 110,000 acre-feet will support meeting the Board’s newly approved 2050 goal of 126,000 acre-feet, approved in 2025. The committee will receive an update on achieving the 2030, 2040, and 2050 Board goals in spring 2027.
ADVANCED METERING INFRASTRUCTURE (AMI)
Advanced Metering Infrastructure (AMI), in concert with a proposed customer-side leak repair incentive program, are critical elements to have in place by 2040 to meet the Board’s water conservation goals. AMI facilitates customer engagement with their water usage and enables water retailers to track water usage remotely and frequently. Valley Water’s goal is to collaborate with retailers and cities throughout our service area to implement AMI through incentives, grants, and support letters (e.g., Integrated Regional Water Management [IRWM], California Public Utilities Commission [CPUC], etc.). The conservation budget includes dedicated funding to assist in the implementation of this program.
Valley Water encourages AMI installation by retailers through cost-share agreements. Valley Water has developed AMI Program Guidelines to facilitate consistent implementation practices across service areas and to receive anonymized leak-alert data from retailers. Leak-alert data could be used for future conservation program targeting. These guidelines are updated every few years as new best practices and approaches are identified by peer agencies and participating retailers.
As of August 2026, Valley Water has cost-sharing agreements providing approximately $5.6 million in AMI funding in the following service areas:
• City of Morgan Hill (approximately 15,300 AMI meters installed, representing nearly full deployment in this service area),
• City of Milpitas (approximately 16,800 AMI meters installed, representing nearly full deployment in this service area),
• City of Palo Alto (approximately 19,500 AMI meters installed, reaching 93% implementation as of July 2026), and
• City of Mountain View (in the planning stage for installing AMI meters).
Significantly accelerating the City of Mountain View’s AMI progress, Valley Water’s Guiding Principle 5 (GP5) Program provides approximately $10.6 million for planning and early deployment, plus approximately $1.6 million in cost-sharing funding will be used to maintain their AMI system and meet the AMI Program Guidelines requirements. Staff anticipates that Mountain View will install up to 20,000 AMI meters over the next couple of years.
Valley Water is finalizing an agreement with the City of Gilroy to complete its AMI deployment. An IRWM Proposition 1 grant, secured with Valley Water’s support, funded approximately 90% of the deployment. The cost-sharing agreement will enable Gilroy to reach 100% implementation, totaling over 15,800 meters. In exchange for this funding, Gilroy will implement AMI best management practices, follow the AMI Program Guidelines, and provide Valley Water with anonymized customer leak data.
Additionally, several water retailers have pursued AMI deployment through other funding mechanisms. Between California Public Utilities Commission (CPUC) approval of the project in 2022 and January 2026, San Jose Water Company had installed more than 125,000 AMI meters, representing approximately 50% deployment, with installation work continuing through 2027. Purissima Hills Water District received funding through Valley Water’s Safe, Clean Water grant program to support the installation of approximately 2,200 AMI meters.
While AMI implementation progress varies across service areas, staff estimates that approximately 69,000 AMI meters have been installed to date in Santa Clara County through a combination of Valley Water cost-share agreement funding, Valley Water grant funding, and Valley Water support for external grant funding. As the Cities of Palo Alto, Mountain View, and Gilroy proceed with their AMI deployment, this total is anticipated to increase to over 90,000 AMI meters. Though these numbers may change as the projects are implemented on different schedules in each service area, staff continue to encourage additional water retailers to prioritize AMI installation.
LEAK REPAIR INCENTIVES
Leak Detection and Repair Training
On November 4, 2025, Valley Water hosted one of California’s first in-person Leak Repair Elite trainings for plumbing professionals. This was from the result of Valley Water’s years-long collaboration with the Bay Area Water Supply and Conservation Agency (BAWSCA), California Water Efficiency Partnership (CalWEP), and the International Association of Plumbing and Mechanical Officials (IAPMO). The 8.5-hour training was delivered by IAPMO and attended by 21 local plumbers.
Participants who completed the course received a certificate and had the opportunity to take an exam to qualify for inclusion in IAPMO’s Leak Repair Elite Directory at <https://iapmo.org/training-education/calwep-contractors-directory>. The directory provides water retailers with a resource for referring customers to trained professionals when leaks are identified, helping expedite repairs and reduce water loss.
The pilot supports the Water Supply Master Plan 2040 “No Regrets” package, which identified customer-side leak-repair incentives as a potential water conservation strategy. Developing a trained workforce was identified as a key need for implementing such a program. As of September 2026, BAWSCA, East Bay Municipal Water Utility District, Irvine Ranch Water District, Marin Water District, and Moulton Niguel Water District have hosted this training. Valley Water’s and BAWSCA’s leadership to launch this opportunity made this possible.
Leak Detection and Repair Program Development
Staff also launched the Direct Retrofit Indoor Plumbing Program (DRIP), replacing the Fixture Replacement Program. While maintaining a similar core scope, DRIP incorporates small leak repairs for single-family homes (such as leaking faucet fixtures), a lesson learned from the 2023 leak detection pilots.
DRIP includes an optional task to install point-of-use monitoring (POUM) devices at multifamily and commercial, industrial and institutional (CII) properties. These smart monitoring tools are installed directly on fixtures, such as toilets, that detect abnormal water use and transmit alerts to an online dashboard. They can help maintenance site staff identify and address leaks earlier and, particularly at high-density properties, isolate leaks that may otherwise be difficult to locate. For example, when an AMI meter identifies a leak at a multifamily property, POUM devices can help pinpoint the affected unit.
As additional staff and resources become available, staff may have sufficient capacity to pursue this component more actively, while continuing to prioritize plumbing retrofits that maximize water savings and reduce customer water bills.
GRAYWATER REBATE PROGRAM EXPANSION
The Graywater Rebate Program continues to demonstrate public interest, generating 41 program inquiries and 4 project applications during FY26. Although no projects were completed in FY26, the consistent inquiries over recent years, 47 on average, indicate strong interest. Following a dedicated marketing campaign in FY25 that targeted past participants of other related conservation programs, using community-based social marketing concepts, staff continues to explore methods to increase awareness of graywater.
Valley Water has continued to develop its Graywater Rebate Program by partnering with cost-sharing retailers to double the overall rebate from $200 to $400 in those service areas. This is the highest graywater rebate rate staff is aware of in the United States. Valley Water issues on average 10 rebates per year, for a total of 160 graywater laundry-to-landscape systems installed in Santa Clara County. While Valley Water does not currently plan to rebate for more advanced graywater systems due to resource constraints, additional graywater system resources, including guides, evaluation tools, virtual workshops and webinars, informational and instructional videos, and a list of local graywater installers are available at www.watersavings.org <http://www.watersavings.org>.
MODEL WATER EFFICIENCY NEW DEVELOPMENT ORDINANCE
The Model Water Efficiency New Development Ordinance (MWENDO), developed in 2015 by the Santa Clara County Water Efficient New Development Task Force, composed of representatives from Santa Clara County, several cities, Valley Water, Sustainable Silicon Valley, and Joint Venture Silicon Valley, is intended to be adopted by jurisdictions in Santa Clara County to ensure water use efficiency in new development. The ordinance is designed to be customizable depending on cities’ needs and includes a variety of water efficiency measures for new developments, such as:
• Single-family residential development
• Multi-family residential and nonresidential development
• Commercial facilities
In 2025, legislation (AB 130/SB 131 CEQA Overhaul Package) focused on accelerating new housing development by enacting significant reforms to CEQA and streamlining the environmental review process was signed into law, including provisions that prohibit cities from adopting new or amended building standards, including certain reach codes, for residential properties. Subsequently, staff have shifted advocacy efforts toward encouraging cities to consider MWENDO measures that apply to commercial properties. Current outreach efforts include engaging business associations, trade organizations, and local chambers of commerce to support the ordinance as well as raising awareness for MWENDO’s supplemental provision related to decorative, non-functional turf on commercial, industrial, and institutional (CII) sites, which complements the State-mandated ban on irrigation of nonfunctional turf in CII landscapes.
In November 2025, the Valley Water Board of Directors recognized the City of Santa Clara as the first city to officially adopt measures from MWENDO. Further, several other cities in Santa Clara County already have measures aligned with MWENDO, providing a strong foundation for water efficiency as staff continues to advocate for additional water savings that complement existing local efforts.
STORMWATER CAPTURE
Stormwater capture can have water quality, water supply, flood management, environmental, and community (e.g., aesthetics, recreation, and education) benefits. The “No Regrets” package proposed evaluating stormwater capture projects to develop at least 1,000 acre-feet per year (AFY) on average of stormwater water supply (which brings the 2040 water conservation target from 109,000 to 110,000 acre-feet saved per year).
Countywide Planning and Flood-MAR Efforts
Flood-Managed Aquifer Recharge (Flood-MAR) uses open space to recharge stormwater or floodwater into the aquifer. Valley Water is interested in whether Flood-MAR can enhance water supply while also providing co-benefits related to watershed stewardship. To explore this possibility, Valley Water completed a pre-feasibility study in 2021 on Flood-MAR implementation in Valley Water’s service area. The pre-feasibility study indicates that a Flood-MAR program may be viable for Valley Water, but it will provide a relatively small water supply benefit and needs to navigate key uncertainties regarding permitting, water rights, water supply benefit, cost, and incentive structure.
In early 2023, Valley Water secured a $350,000 grant from the Pajaro River Watershed Integrated Regional Water Management Group Proposition 1 funding, which will end in June 2027. Valley Water is using this grant funding to investigate the potential for Flood-MAR projects in Santa Clara County. Building on the pre-feasibility study, Valley Water has evaluated the recharge potential of six areas in South County. Site evaluation included hydrologic analysis of flood water production and suitability of geologic conditions for groundwater recharge. The evaluation indicates that for most sites, runoff potential is low, around 200 acre-feet per year (AFY) on average. A couple sites have a higher potential yield, greater than 1,000 AFY; however, they tend to have lower recharge potential or are located in areas where Valley Water has maximized recharge. To date, no appropriate location for a pilot Flood-MAR project has been identified.
Staff have reviewed several Flood-MAR projects in the region, which were either built or in the process of being constructed. One example is Pajaro Valley Water Management Agency’s Recharge Net Metering (ReNeM) Program. The cost of a ReNeM Flood-MAR project is around $1.5 million dollars and can take 2-3 years to complete permitting and construction activities. Once in operation, projects require ongoing Operations and Maintenance costs, and hydrologic variability can significantly impact project yield. Even in a very wet year, average recharge was less than 600 AFY across three ReNeM basins and over the last 10 years, average recharge for the entire program is less than 200 AFY. The review of existing Flood-MAR programs confirms uncertainties identified in the pre-feasibility study; it often takes multiple years for Flood-MAR projects to obtain permitting and be constructed, water supply benefits are small and intermittent, and the projects require ongoing management and maintenance.
The investigation to date suggests that feasibility and benefit-cost ratio for Flood-MAR projects in the County is very low, and staff is currently working toward reaching a final recommendation regarding Flood-MAR, while completing grant deliverables and requirements.
Rebate Programs
Valley Water launched Rainwater Capture rebates under its Landscape Rebate Program on January 1, 2019, expanding eligible projects to include rebates for rain barrels, cisterns, and rain gardens. The program rebate amounts are as follows: $35 per qualifying rain barrel installed to collect rainwater from existing downspouts; $0.50 per gallon for diverting existing downspouts to qualifying cisterns; and $1 per square foot of roof area diverted (up to $300 per site) into an installed rain garden to collect roof water runoff. The Cities of Milpitas, Palo Alto, as well as San José Municipal Water System, currently cost-share with Valley Water to increase Rainwater Capture rebate amounts.
Through June 2026, the program has supported the installation of 818 rain barrels, 63 cisterns, and 133 rain gardens. The rain gardens filter and percolate water from over 87,000 square feet of roof surface. More details on the program can be found at <https://valleywater.dropletportal.com/overview/>.
ENVIRONMENTAL JUSTICE IMPACT:
Environmental justice on EJ population is expected/likely to result from the implementation of the No Regrets Package to achieve 2040 Goals. The package aims to balance cost and benefit; the benefits and the impact/mitigation strategies on disadvantaged communities are discussed in greater detail below.
Water conservation offers a range of environmental justice benefits by promoting equitable access to clean water, reducing pollution, protecting ecosystems, mitigating climate change, saving costs for vulnerable communities, enhancing drought resilience, and empowering residents with knowledge and skills for sustainable water use. Valley Water provides such water conservation information in multiple languages and via various outreach techniques to reach all members of our community. Valley Water acknowledges that during drought, disadvantaged communities may be disproportionately impacted. To address these impacts, Valley Water promotes access to equitable and affordable water supplies (Water Supply Goal 2.6). Valley Water offers specific programs, such as the Lawn Busters program to provide water-efficient landscapes to low-income, elderly, disabled, or veteran homeowners and schools within disadvantaged communities.
ATTACHMENTS:
Attachment 1: PowerPoint
Attachment 2: 2017 No Regrets
Attachment 3: Water Conservation Flyer
UNCLASSIFIED MANAGER:
Manager
Kirsten Struve, 408-630-3138