Cities struggle with CA's efforts to save water
Cities struggle with CA's efforts to save water · CNBC

Last week, Beverly Hills found itself in an odd predicament for a wealthy enclave. It became the target of austerity.

California's water crisis has forced the Los Angeles suburb to adopt new conservation requirements for residents and businesses, including restrictions on mundane activities such as drinking water in restaurants and car washing. Yet Beverly Hills is far from the only area adversely affected by the water restrictions, and it joins other local governments in grappling to comply with the new reality.

Across the state, legal and political challenges have bedeviled efforts so far to address the crisis, and experts don't expect the new regulations to be applied evenly or with complete success. Amid confusion and recrimination, big questions remain about how well some these measures can be enforced.

Last week for example, an appeals court in Southern California determined a feature of the local water conservation plan in nearby San Juan Capistrano might in fact contravene state law. San Juan Capistrano has a tiered pricing system for water that charges large water users a higher price per gallon than smaller users.

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The Capistrano Taxpayer Association sued the city in 2012, citing California State Proposition 218, a law that barred any government agency from charging more for a service than the cost to provide it required. The court said it did not have a problem with tiered water pricing per se, but it said that tiers should be based only on the costs of the services payers are immediately using.

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However, the court did not rule in favor of either party, and instead referred the case back to the trial court for a final decision on the matter, even as governments across the state are attempting to put conservation measures in place quickly as summer approaches.

"It certainly casts a pall," said Richard Frank, a professor of environmental law at the University of California at Davis. "The ruling raises questions about the long-term viability of these tiered water rate systems, which many water districts up and down the state, particularly urban districts, have used, and which had been becoming more popular as the drought deepened."

In fact, the governor's order specifically calls for the state's Water Resources Control Board to "develop rate structures and other pricing mechanisms, including but not limited to surcharges, fees and penalties to maximize state water restrictions."