“Irrigation efficiency” (IE) means the measurement of the amount of water beneficially used divided by the amount of water applied. Irrigation efficiency is derived from measurements and estimates of irrigation system characteristics and management practices. The minimum average irrigation efficiency for purposes of this ordinance is 0.71. Greater irrigation efficiency can be expected from well designed and maintained systems. — California Model Water Efficient Landscape Ordinance
Some irrigation water never gets used by the plant, this value compensates for that. The great Irrigation Tutorials site suggests using 0.75 as the value for spray irrigation. Very well designed sprinkler systems with little run-off that using efficent sprinklers can have efficiencies of 80% (use 0.80). Drip irrigation systems typically have efficiencies of 90% (use 0.90).

