(1) “commercial water user” means a water user that provides or distributes a product or service. Examples include commercial businesses and retail stores, office buildings, restaurants, hotels and motels, laundries, food stores, and car washes.

(2) “disadvantaged community” means a community with an annual median household income that is less than 80 percent of the statewide annual median household income.

(3) “distribution system” means a water conveyance system that delivers water to a residential, commercial, or industrial customer and for public uses such as fire safety where the source of water is either raw or potable water.

(4) “drought emergency” means a water shortage emergency condition that exists when there would be insufficient water for human consumption, sanitation and fire protection, as set forth in California Water Code Section 350-359 and Government Code Section 8550-8551.

(5) “gross water use” means the total volume of water, whether treated or untreated, entering the distribution system of an urban retail water supplier, excluding all of the following:

(6) “incidental water use” means water that is used by industry for purposes not related to producing a product or product content or research and development. This includes incidental cooling, air conditioning, heating, landscape irrigation, sanitation, bathrooms, cleaning, food preparation, kitchens, or other water uses not related to the manufacturing of a product or research and development.

(7) “industrial water user” means a manufacturer or processor of materials as defined by the North American Industry Classification System (NAICS) code sectors 31 to 33, inclusive, or an entity that is a water user primarily engaged in research and development. An industrial water user is primarily involved in product manufacturing and processing activities and research and development of products, such as those related to chemicals, food, beverage bottling, paper and allied products, steel, electronics and computers, metal finishing, petroleum refining, and transportation equipment. Data centers dedicated to research and development are considered an industrial water user.

(8) “institutional water user” means a water user dedicated to public service. This type of user includes, among other users, higher education institutions, schools, courts, churches, hospitals, government facilities, and nonprofit research institutions.

(9) “local agency” means any municipality, such as a city or county government or public water agency.

(10) “non-industrial water use” means gross water use minus industrial water use.

(11) “process water” means water used by industrial water users for producing a product or product content, or water used for research and development. Process water includes, but is not limited to; the continuous manufacturing processes, water used for testing, cleaning and maintaining equipment. Water used to cool machinery or buildings used in the manufacturing process or necessary to maintain product quality or chemical characteristics for product manufacturing or control rooms, data centers, laboratories, clean rooms and other industrial facility units that are integral to the manufacturing or research and development process shall be considered process water. Water used in the manufacturing process that is necessary for complying with local, State and federal health and safety laws, and is not incidental water, shall be considered process water. Process water does not include incidental, commercial or institutional water uses.

(12) “recycled water” means water that is used to offset potable demand, including recycled water supplied for direct use and indirect potable reuse that meets the following requirements, where applicable:

(13) “urban retail water supplier” means a water supplier, either publicly or privately owned, that directly provides potable municipal water to more than 3,000 end users or that supplies more than 3,000 acre-feet of potable water annually at retail for municipal purposes.

(14) “Urban Water Management Plan” means a plan prepared pursuant to California Water Code Division 6 Part 2.6. A plan shall describe and evaluate sources of supply, reasonable and practical efficient uses, reclamation and demand management activities. The components of the plan may vary according to an individual community or area's characteristics and its capabilities to efficiently use and conserve water. The plan shall address measures for residential, commercial, governmental, and industrial water demand management as set forth in Article 2 (commencing with Section 10630) of Chapter 3. In addition, a strategy and time schedule for implementation shall be included in the plan.