Agenda 11-02-23; 4-a - Resolution Endorsing Consensus Principles II for Revised Falls Lake Rules

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=48 The UNRBA anticipates investment requirements for its members under the revised nutrient management strategy. The potential partners (e.g., agriculture and institutions) would not have the burden of investment requirements. To foster cooperation and establish a functioning, holistic program, the UNRBA proposes establishment of a "Watershed Organization" with tiered membership. Those local governments, state and federal agencies, and utilities with investment requirements would be in Tier 1 and could support administration and implementation of the program through funding. Those without investment requirements could be in Tier 2. This tier would not be expected to fund the program but could participate on committees to identify opportunities and constraints, participate in decision making, etc. Committees specific to a sector(e.g., agriculture) could be chaired by a representative of that sector(i.e., committees may be chaired by a Tier 2 member). Annual compliance reporting and tracking of investment requirements for the Tier 1 members could be managed by the Watershed Organization, similar to the current IATA. The initiation date of the Watershed Organization will be determined by the readoption of the Falls Lake Rules, which must be achieved in accordance with Session Law 2018-5 Section 13.8.(x). This session law specifies that the EMC must begin rule re-adoption no later than December 31, 2024. It is anticipated by DWR that readoption of the rules will occur no later than 2027. Additional details about the Watershed Organization and tiered membership are provided in the section called Program Administration. Establishment of a Fair and Equitable Program The UNRBA strives to develop a revised nutrient management strategy that protects the watershed and Falls Lake in a fair and equitable manner. The Falls Lake Rules affect a variety of sectors, some of which can fund compliance through taxes or fees and others that do not have that ability. Beyond financial capabilities, not all communities have the staff resources to fully evaluate potential projects and choose the best options for their citizens. The collaborative nature of a watershed organization will allow regulated parties to share resources and expertise as each member is working towards a common goal. Members will have the option to participate in multi jurisdictional projects or invest in-kind contributions (i.e., use of equipment, labor and technical service hours, etc.) which allows for significant flexibility in meeting investment requirements. The watershed organization structure addresses an inherent inequality with conventional water quality regulation: upstream/downstream distribution of costs and benefits. Traditionally, upstream sectors may bear the brunt of expenses for mitigative action without experiencing the corresponding benefits. While downstream sectors may have little influence over incoming water quality and are at the mercy of upstream actions (or inactions). The UNRBA recommendations seek to correct this imbalance by bringing users together to improve and protect valuable water resources regardless of their location within the watershed. The UNRBA recognizes that everyone within the watershed has the potential to be affected by poor water quality, and the recommended investment approach to manage existing development provides a way of fair and equitable means for creating and benefiting from watershed improvements. As with the successful IATA, the revised strategy should allow projects to be implemented anywhere within the watershed with an expanded suite of compliance activities. Many of the approved activities produce benefits beyond nutrient reduction, such as infrastructure repair, community amenities with a water quality focus (parks, etc.), and high priority land conservation. The result is a fair and equitable strategy where citizens can benefit from projects in their communities and address their unique priorities while protecting water quality in the reservoir. The UNRBA recommendations for a revised strategy will be most effective when all parties in the watershed are fully engaged and committed to the common goal of watershed protection and improvement. Beyond being a moral obligation to society, a fair and equitable strategy garners 29