While the California Public Utilities Commission is the state\u2019s key energy agency, it plays only a small role in water policy. That doesn\u2019t stop it from stressing the importance of the water-energy connection in response to the drought and because of the widespread benefits of using both stressed resources efficiently. Regulators Aug. 28 staked out their turf on the water recycling front. \u201cWater is a precious and finite resource and our supply is dwindling because of climate change, inefficient use and an increasing population,\u201d said commissioner Mike Florio. Regulators voted unanimously to adopt rules to ease the way for increasing the use of recycled water to save fresh water supplies and reduce the amount of energy needed to transport and treat surface and groundwater supplies. That also cuts utility bills and carbon emissions. Commissioner Catherine Sandoval applauded the decision for highlighting the \u201cwater-energy nexus and greenhouse gas [reduction] impacts.\u201d Commissioner Carla Peterman also pointed to the energy-water link, noting water use is a key consideration in power plant siting at the California Energy Commission. That agency seeks to promote use of recycled water by power projects but often the supply is uncertain, added Peterman, a former CEC member. The CPUC reiterated this week the need for a policy to promote water reuse to improve the efficient use water, energy and land resources, as well as advance water supply flexibility. California recycles more water than any other state, some 600,000 acre-feet\/year. Of that amount, the commission has jurisdiction over about 12,000 acre-feet\/year. An acre-foot is 325,851 gallons. The State Water Resources Control Board, which also is responsible for the phase-out of coastal power plants that use once-through cooling, is the lead agency on California water recycling efforts. The Water Board is striving to increase the amount of recycled water to one million acre-feet in 2020 and two million acre-feet in 2030. The commission urged the half dozen private water utilities under its jurisdiction that recycle wastewater to heed the advice of the State Water Board. The Water Board notes that recycling water supplies are sources that are "drought-proof, reliable, minimize our carbon footprint, and can be sustained over the long-term.\u201d Noting that his agency cannot mandate recycling, Florio said his decision seeks to encourage and expedite rate recovery of recycling projects as well as private-public water purveryor partnerships on water reuse projects. The commission decision notes potential energy cost savings of water reuse projects. But it adds that they \u201cshould be considered in the comparative analysis of recycled water and alternative sources of water supply where the data needed for such analysis exist or can be reasonably produced.\u201d The private water agencies that recycle and are under the commission\u2019s jurisdiction include the Golden State Water Company, San Gabriel Valley Water Company, Suburban Water Company, San Jose Water Company, California Water Service Company, and Park Water Company.