Ordinance AB 1881

In California, ordinance AB 1881 mandates sweeping water efficiency measures in all new landscaping projects over 2500 square feet, covering everything from drip irrigation to the use of local plants to smart irrigation control systems. To meet these stringent requirements, the ordinance requires landscaping projects be audited by certified landscape auditors. These requirements are coming online now, as cities and counties around the state enact the mandates AB 1881 requires.

Of the 8.8 million acre-feet of water used by California's urban areas, about 2.6 million are used for landscaping. The kind of efficient landscaping practices described in AB 1881 could save 20 percent of that water, possibly more.

According to the 2007 economic census landscaping in California is an $8.2 billion industry. AB 1881 could create some significant growth in that number, growth that will be captured by whoever is best poised to deliver water savings efficiently and effectively.

The winners will vary. Groups like the California Landscape Contractors Association will see their ranks swell, and will see increased demand for everything from green jobs training to data services. Finally startups like Hydropoint, which specializes in smart web-based irrigation software, will be the best indicator of this emerging sector's potential.

The real opportunity will come downstream. It's common for states across the country to mirror California's environmental legislation, and with water stress looming in areas once considered secure, there is reason to expect AB 1881 will be emulated across the country. Combine that with the pendulum eventually turning back in real estate development, and you've got an area that anyone interested in green landscaping should keep an eye on.