Page 10 - Yucaipa Valley Water District
P. 10

Workshop Memorandum 18-031



                Date:          January 30, 2018

                From:          Joseph Zoba, General Manager

                Subject:       Overview of a New Methodology for Achieving Future Water Conservation Goals


               To control pollution, government
               regulators: (1) limit the amount of
               pollution that can be emitted; and
               (2) set a penalty for violating the
               pollution limit.

               Recently, government regulators
               have     implemented     trading
               systems  that  are  intended  to
               establish  a  market  price  for
               emissions.    This  system  is
               commonly referred to as a Cap
               and Trade system.

               While some believe this system
               fairly  distributes  the  costs  for
               polluting,  others  argue  that  the
               flaw  of  the  Cap  and  Trade
               system      is   whether     the
               government  has  set  the  correct
               pollution limit, or Cap.  In some
               cases,  achieving  the  “ideal”
               pollution      cap      requires
               government regulators to tighten
               pollution  limits  until  a  perceived  social  optimization  has  been  achieved  between  the  cost  of
               polluting and the cost for implementing pollution reduction methods.

               The methodology described above for controlling pollution is now being considered for achieving
               water  conservation  goals.    If  this  policy  were  to  advance,  the  District  should  be  prepared  to
               participate in the discussions to ensure the poorly devised implementation strategy that resulted
               in  a  36%  conservation  goal  for  Yucaipa  Valley  Water  District  during  the  last  drought  is  not
               replicated under this new methodology.














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