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Petaluma irrigation-system company poised to cash in if 'smart' watering bill wins governor's approval

Steve Hart, The Press Democrat

A Petaluma company that makes water-saving irrigation systems stands to profit if Gov. Arnold Schwarzenegger signs a law that would mandate "smart" watering technology in California.

The legislation, which was approved by lawmakers in Sacramento last week, now sits on the governor's desk.

Founded just four years ago, HydroPoint Data Systems Inc. has become a leading maker of digital irrigation controllers. The company's WeatherTRAK system uses daily weather reports, downloaded from satellites, to run automatic sprinklers.

The technology cuts water use up to 59percent while maintaining lawns and shrubbery, according to company officials.

The law could spur $250 million to $500million in new investment in water-saving technology, according to a state report. HydroPoint is poised to capture a share of that market, said Chris Spain, the company's chief executive.

"The demand for our technology is huge," Spain said. "This would accelerate what we've been doing."

The measure, AB 1881 by Assemblyman John Laird, D-Santa Cruz, would require irrigation controllers sold in California starting in 2012 to meet strict water conservation standards.

Landscape watering accounts for about one-third of California's urban water use, according to Laird. "Smart" watering could save up to 40 percent, or 1 million acre-feet of water each year, he said.

"As California's water supply continues to be strained by population growth and climate change, this bill represents a significant step forward for conservation efforts," said Laird.

The governor's office on Thursday said Schwarzenegger hasn't taken a position on the measure.

Under Laird's bill, the state Energy Commission would develop water-saving standards for irrigation controllers and moisture sensors by January 2010. All controllers and sensors sold in California would have to meet the standards starting two years later.

The legislation was backed by a coalition of environmental groups, water agencies, landscape industry groups and irrigation equipment makers, including HydroPoint.

Laird's bill was the result of a two-year study by industry and water agency representatives on ways to eliminate wasteful irrigation practices.

HydroPoint's business has been growing because of rising water costs and mandatory conservation rules, Spain said.

The company's patented system uses information about each landscape site to establish a watering schedule. The irrigation controller then adjusts water using real-time weather data transmitted from the National Oceanic and Atmospheric Administration's satellite network.

The data about temperature, wind, solar radiation and humidity is localized to a square kilometer. Water is applied based on plants' calculated rate of moisture loss.

The systems cost $400 to $500 and require a $4 monthly subscription, but they pay for themselves in reduced water bills, Spain said. Some water agencies offer rebates for up to half the cost.

The company supplies its technology for Toro Co.'s Irritrol Systems controllers. HydroPoint mostly sells to commercial property owners, but Spain said the system can be used for single-family homes.

"We feel that one day, every home will be on smart irrigation," he said.

HydroPoint's sales have jumped 180 percent over last year, Spain said. The privately held company would not disclose its actual sales, but it has expanded its Petaluma work force from 33 to 54 since November.

HydroPoint also has added 5,000 square feet of space for assembly work.
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