(a) (1) On or before January 1, 2017, the department shall adopt rules for all of the following: (A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. (B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, âvalidatingâ is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water supplierâs water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation. (C) The technical qualifications required of a person to engage in validation, as described in subparagraph (B). (D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report. (E) The method of submitting a water loss audit report to the department. (2) The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Associationâs Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Associationâs Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software. (b) (1) On or before October 1 of each year until October 1, 2023, each urban retail water supplier reporting on a calendar year basis shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a). (2) On or before January 1 of each year until January 1, 2024, each urban retail water supplier reporting on a fiscal year basis shall submit a completed and validated water loss audit report for the previous fiscal year as prescribed by the department pursuant to subdivision (a). (3) On or before January 1, 2024, and on or before January 1 of each year thereafter, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or previous fiscal year as part of the report submitted to the department pursuant to subdivision (a) of Section 10609.24 and as prescribed by the department pursuant to subdivision (a). (4) Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision (c). (c) Using funds available for the 2016â17 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers. (d) Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses. (e) At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department: (1) The chief financial officer. (2) The chief engineer. (3) The general manager. (f) The department shall deem incomp
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