important part of balancing regional supplies and demands. Water conservation efforts were seen as a way to reduce the need for imported supplies and offset the need to transport or store additional water into or within the Metropolitan service area. The actual conservation of water takes place at the retail consumer level. Regional conservation approaches have proven to be effective at reaching retail consumers throughout Metropolitan’s service area and successfully implementing water saving devices, programs and practices. Through the pooling of funding by Metropolitan’s member agencies, Metropolitan is able to engage in regional campaigns with wide-reaching impact. Regional investments in demand management programs, of which conservation is a key part along with local supply programs, benefit all member agencies regardless of project location. These programs help to increase regional water supply reliability, reduce demands for imported water supplies, decrease the burden on Metropolitan’s infrastructure, reduce system costs, and free up conveyance capacity to the benefit of all member agencies.
A. Incentive-Based Conservation Programs
Conservation Credits Program
In 1988, Metropolitan’s Board approved the Water Conservation Credits Program (Credits Program). The Credits Program is similar in concept to the Local Projects Program (LPP). The purpose of the Credits Program is to encourage local water agencies to implement effective water conservation projects through the use of financial incentives. The Credits Program provides financial assistance for water conservation projects that reduce demands on Metropolitan’s imported water supplies and require Metropolitan’s assistance to be financially feasible. Initially, the Credits Program provided 50 percent of a member agency’s program cost, up to a maximum of $75 per acre-foot of estimated water savings. The $75 Base Conservation Rate was established based on Metropolitan’s avoided cost of pumping SWP supplies. The Base Conservation Rate has been revisited by Metropolitan’s Board and revised twice since 1988, from $75 to $154 per acre-foot in 1990 and from $154 to $195 per acre-foot in 2005.
In fiscal year 2025 Metropolitan invested $22 million in programs and devices that yielded annual water savings of 208,000 AF.
Member Agency Administered Program
Some member agencies also have unique programs within their service areas that provide local rebates that may differ from Metropolitan’s regional program. Metropolitan continues to support these local efforts through a member agency administered funding program that adheres to the same funding guidelines as the Credits Program. The Member Agency Administered Program allows member agencies to receive funding for local conservation efforts that supplement, but do not duplicate, the rebates offered through Metropolitan’s regional rebate program.
Appendix B - 21
IRWD – 2025 Urban Water Management Plan – Reduced Delta Reliance
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