No, Californians will NOT be fined $1,000 for using too much water.
“The standard of 55 gallons per person per day for indoor residential water use is not intended as an enforceable standard for individuals. It is one of several elements used to calculate the overall efficiency standard for a service area.
Individuals will not be responsible for State Water Resources Control Board fines.“
https://www.acwa.com/news/correct-information-on-california-water-efficiency-laws/
Yes, Californians will be fined $1000 for using too much water, just not directly. The water districts will pass through the fines.