Will Water Conservation Mandates Affect CA Businesses?

Will Water Conservation Mandates Affect CA Businesses?

As a result of the ongoing sever drought, California water regulators recently adopted what reports are calling “unprecedented restrictions” on water usage throughout the state. The State Water Resources Control Board approved new rules that impose new mandatory water-saving targets and limit water usage for public and private properties. The new regulations each California city has been ordered to cut water use by as much as 36 percent from their 2013 levels.

Last year, California Governor Jerry Brown called for a 20 percent voluntary reduction in water usage, however the state was unfortunately unable to achieve this goal. According to a survey of local water departments, water use fell less than 4 percent in March compared to the usage in the same month of 2013. Furthermore, reports indicate that overall water conservation has increased about 9 percent since last summer. While residents already face penalties of $500 for excessive water consumption, it’s still unclear what penalties the state water board and local agencies will impose for those that don’t meet the targets. Reports note that Governor Brown is pushing for new regulation that would make it so that water suppliers that do not conserve enough would face a daily penalty of as much as $500. Proposed fines would increasing to as much as $10,000 should the State Water Resources Control Board need to issue a cease-and-desist order.

It is still unclear how CA businesses will be affected by the evolving mandates, however there will undoubtedly be steep penalties for operations that do not curb their water usage. Board officials said they expect dramatic improvements as soon as June, and are encouraging homeowners and business owners to impose mandatory water-savings targets and strategies.

As water conservation mandates continue to progress, it is important the California business owners are adapting and preparing for new developments. At Cal-Nevada Insurance Agency, we strive to help business owners throughout California, Arizona and Nevada find quality risk management and loss prevention solutions. We’re not just in the business of selling insurance, but rather counseling our clients and crafting the most holistic business insurance and risk management strategies that fit each operation’s unique needs. As part of our complete array of business insurance solutions, we offer commercial property insurance that covers perils from man-made problems, mechanical malfunction and natural disasters. To learn more about our operation and all our offerings, contact us today at (866) 670-5948.

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