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How Come Cable is Valued more than Water?

July 13, 2012
Environment, finance, funding, infrastructure, management, water sewer management
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A question raised on the internet last week was whether our current delay in replacing infrastructure was simply delaying the costs for infrastructure to our children and grandchildren?  The amount of money we spend on infrastructure today, as a component of GNP, has decreased.  That should be troubling for a couple reasons.  Just as the economists will tell you that the economy cannot expand at a greater rate than the population grows, the investment to maintain the infrastructure needed to expand that economy should have some relationship to the growth rate.  If investments in what makes the economy go are half the rate they used to be, clearly our priorities are elsewhere which portends future expenses to catch up.  While it makes a good political sound-bite to cut costs, reduce government, cut funding to infrastructure programs, etc, the reality is that this is akin to the short term profit outlook on Wall Street – it does not plan adequately for the future.

So how does this help utilities?  Well, let’s think about your community’s priorities.  How many of you have compared your customer’s rates to those of cable television?  Or to typical telephone plans?  Rarely are the average costs for our customers, typically in the 5000 to 6000 gallons per month range, exceed the typical costs for a family cable or telephone plan.  And which one is needed to survive?  While the phones are needed for business, and cable is great to have (Game of Thrones is excellent if you have missed it) neither is needed to survive.  This is a missed opportunity for the utility industry.  It is one where we have been out-marketed, with the potential for huge costs to impact out kids and grandkids, just to maintain the current systems.  Many of our central city utility systems were started pre-WWII.  WPA was a 1930s program that constructed piping across the US.  Expansions occurred in the 1950s as people started migrating to the suburbs, and from the 1960s-today, but the reality is that many people reading this were not alive when the bulk of the piping in the US was constructed.  Which makes it “old!”

It is important that the utility industry convey to local officials the need for reinvestment in a system that runs well now, so that it will continue to provide good service.  We need to project the long-term program needs.  Asset management can help, but we need to plan, inform and market our product.  So who out there is doing any of this?  What input have you received and are you getting your needed rate increases?

Why aren’t We Paying the Cost for water and Sewer?

July 8, 2012
Environment, finance, funding, infrastructure, management, water sewer management
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It is budget season again which means the annual battle for water and sewer rates.  The costs for power and chemicals go up every year, and billions of dollars of deferred maintenance obligations exist.  So why is it that utilities find it so hard to get the revenues needed to update and operate?  The easy answer is politicians, but the issue is more complicated than that.

 

Much of the growth and expansion of the US and Canadian economies can be traced to the development of water, sewer, storm water and transportation infrastructure.  Without water, and associated wastewater disposal, the public health suffers, people get sick, and are less productive than if they are healthy (and you don’t need transportation then).  The lack of clean water is a major barrier to growth and development in many parts of the world.  So going back over 100 years, the federal government saw the benefit of improving drinking water quality.  Utilities responded, building filtration and disinfection facilities which were so successful that we are still reaping the benefits of those improvements.  Many central cities began expanding their systems as a means to provide service to surrounding communities.

Development of regulations relating to metals in water occurred in the 1940s, and developed through the 1962.  The Safe Drinking Water Act reaffirmed many of these standards, and of course added new ones as new constituents.  Over 90 percent of the US population has access to safe, potable drinking water on a 24/7 basis.

Unfortunately we do too good a job and have for 100 years.  People take safe water and sewer for granted.  Regulation or not, people assume it’s all good (the bottled water folks aside (see Peter Gleick’s new book).

 

The solution?  Marketing.  Local governments, their employees, their systems and their solutions are all kept under wraps.  No one actively markets the benefits of utilities?  Why not?  Why don’t we use our CCRs, monthly newsletters, meetings, and community involvement to market ourselves.  True most of us in the industry are not great marketers and we see so many other issues it is not a priority.  The private sector sees the benefits of marketing, but utilities often see the lack of active marketing in the attitudes of our elected officials, who do not often understand the value of the service.  IF people value your product they will pay for it.  The difficulty that many utilities have in getting rate increases to update and improve their inrastructure is an indication of failure to understand the value of the product.  That’s a marketing failure!  I once had an elected official tell me marketing was not something the public sector should do.  I asked why.  There was no answer, but he acknowledged it would help.  So we need to make marketing our efforts, and products.  So who’s got some great ideas out there to market?  Who has some great success stories we can all use?

What About Climate Change?

July 5, 2012
Climate, Environment, infrastructure, management, water sewer management
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There may be few topics that raise more discussion in the US than climate change. Whether arguing it is catastrophic to the other end of the spectrum that is it all nonsense, the discourse masks the real question:  Is there a concern for the utility industry?  Interesting the answer seems to depend on where you are.  The focus here is to discuss why and where it matters, and why for many of us, it may not.

 

The scientific literature provides strong evidence that global climate change is affecting the world’s water resources (Karl et al, 2009; UNEP, 2009; IPCC, 2007), including ocean acidification, global temperature rise (Figure 1), receding ice caps, melting glaciers, changing precipitation patterns, and sea level rise (IARU, 2009; Karl et al, 2009; USEPA, 2008; IPCC, 2007). These effects may result in more severe drought or flooding, varying stream flow patterns, rising sea levels along the coasts, and contamination of freshwater aquifers and coastal water bodies as a result (IPCC, 2007).  Eleven of the 12 years between 1995 and 2006 rank among the warmest years in the instrumental record of global temperature data (i.e., since 1850) (IPCC, 2007). The global average sea level has risen at 3.1 ± 0.70 mm/year since 1993 (Cazenave, 2008), which is more than the 2.1 mm/yr for most of the 20th century. The rise in atmospheric and water temperatures may result in greater uncertainty in the amount, intensity and timing of precipitation. Much of the precipitation effect across the United States will likely be manifested by changes in the magnitude of rainfall during existing seasons, such that most regions will likely see wetter wet seasons and drier dry seasons (P. Gleick, 2008; Tebaldi et al, 2006; Groisman et al, 2005).

 

The reality is that if you have lived for 40 or more years, your perception that the summers seem less severe and the summers hotter, is a correct reality.  And most people perceive this.  So how does this affect utilities and should everyone be concerned?  Well it depends…..

 

The first utilities focusing on climate impacts on waters supplies were in the Pacific northwest.  Why?  Because many of these utilities rely on glaciers to store water for raw water supplies.  For years the glaciers have melted slowly after the winter, providing water supplies consistently throughout the summer months, only to be regenerated in the winter again.  But many of these utilities noted that the glaciers were getting smaller and projecting ahead, there might not be any glaciers in 50-100 years.  That’s like having your reservoir go dry and no precipitation to refill it.  This is a problem, and given the location, significant planning efforts are required to address the problem.

 

Utilities in the Rocky Mountain states noted that winters were warmer and often less snowy.  The current beetle problem is indicative of the loss of the weather-related stressors that controlled the beetles (cold and wet).  The mountains hold heavy snow for summer built environments, that are expanding rapidly.  Less snow to fill reservoirs is a similar concern to loss of glacial material.  Summer of dry right now in Colorado.

 

Along the eastern seaboard, planners have noted that sea level has risen 9 inches since the 1929 vertical datum survey.  The sea level rise appears to have accelerated recently.  Ocean temperatures area reported by NOAA to be higher, which means that sea level rise may be driven by thermal expansion f the ocean (basic heat equation form chemistry), and glacial melt is reported to be a contributing factor.  Sea level rise is troubling for coastal communities and may threaten local water supplies.

 

In southeast Florida, the geography is different – the land actually slopes downward as you go inland.  50+% of Miami-Dade and Broward Counties, over 4 million people, live on land below 5 feet above the 1929 sea level.  The South Florida Water Management District reports that they have lost 15% of the drainage capacity of the canal system already and could lose 70% with another 9 inches of sea level rise.  Huge problem is you live at elevation 3.  Moving is an obvious, but unrealistic solution.  I mentioned over 4 million people.  How about over $3 trillion in property and $300 billion/yr in economic activity?  That would be a catastrophic disruption for the state.  Hence sea level rise is an action item for the area, but gains no traction state-wide.

 

In each of these areas, the focus has been strategies that utilities and planners should pursue for adaptation to se level rise.  Heimlich et al (2009) suggested a milestone approach – when you hit a certain milestone in the climate change scenario, you should have completed certain armoring activities and be poised for another set.  That relives local officials of the problem of not planning ahead, while preventing the premature expenditure of funds.  The key is adaptation solutions to protect the current conditions.  And most of the infrastructure needed is local, so expect local funding to be the impetus for local armoring, not federal or state funds.

 

But why isn’t everyone concerned and is this purely a political issue – “red” vs “blue” states?  In a recent paper I published (Bloetscher, 2012) I noted that much of the state of Florida is unconcerned with the issue, and while very much a “red” area, the issue may not be completely politically motivated.  The same is true of much of the heartland of the US.  Their impacts may be less rainfall that today, but given limited rainfall now, how much difference will that make?  It may be that in these areas, the heat, and power demands created by higher summer temperatures may be a far more critical factors, and one that only tangentially impacts the water industry as a result of competition for cooling water.

 

So is there a concern for the utility industry with respect to climate variation or change?  The answer is it depends on where you are, and where is matters, efforts should be ongoing to deal with the long term problem.  For the rest, maybe not so much.  Where we really may see a problem is with power demands and water, another subject for another day.

BLOG 2 Unfunded Mandates or Stuff we should be doing anyway?

June 22, 2012
Environment, finance, funding, infrastructure, management, water sewer management
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In the prior blog, the theme of It’s All One Water was discussed.  Our industry has operated with the concept that potable water, wastewater, storm water, runoff, navigable waters, etc are distinct from one another and are somehow different, creating a silo effect. The silo effect obfuscates the current program of drawing water from rivers, streams and lakes, and discharging our wastes to those same rivers, streams and lakes, downstream of our withdrawal point of course.  Our local perceptions generally to not allow us to acknowledge that our uses affect other users, one reason that conflicts occur in water basins.  Instead the focus is “unfunded mandates” from political circles, whereby utilities are required to meet increasing standards for water, wastewater and storm water treatment.  Much of the regulatory focus is on utilities because they are perceived to have deep pockets due to the populations they serve.  If everyone pays a little, then it won’t hurt is much is the philosophy.  But the reality is that treatment of dilute source waters is often made more difficult as a result of upstream releases.  It is easier to treat water before it gets released.  The solution to pollution is apparently not dilution.  So who should treating these waters?

Perhaps the question is better framed a different way.  The concept in the legislation is to have polluters pay the cost for their pollutions, but reality is that the urban users pay the bulk of the costs.  Agriculture may create a downstream impact of nutrients, pesticides and herbicides, but controlling runoff is a difficult issue, especially if there are heavy rains just after application of chemicals.  It is unclear how you cool water for cooling without extensive energy costs, which would increase energy demands further.  And of course rainfall creates runoff as a contribution form the natural system (mostly in the form of turbidity).  There is nothing much that utilities can do to control these issues aside from acquiring large tracts of land to control the source.  But that does not solve the regulatory needs.

So the responsibility for public health falls on us.  As we evaluate regulations, we need to think about responsibility and cause (not costs).  The public health issues is much clearer with wastewater plants, where discharge of wastewater could impact both aquatic species and downstream water users.   In this case, there are no unfunded mandates – it is local responsibility to insure that the public health is protected near and farfield.

With water plants, well it all depends on the raw water.  So cleaner upstream water and less adverse users are better, but most utilities don’t fully control their source basins.  So then the key is whether the regulatory mandates meet the public health tests, which may depend on who you ask.  Ask this question to women with kids:  How much arsenic in your water is ok?  You rarely get any answer other than “none.”  Why?  The public health perception.  Cost is rarely the issue, but public health always is a concern.  The public expects their utility to do what is needed to clean up the water and places that responsibility on us.  Hence there are no real unfunded mandates, although that sounds great to deflect the need for rate increases to other agencies.

So then the question is whether all this discussion of unfounded mandates is an abdication of our public health responsibility.  The perception might be reality.  If your customers think that meeting regulations or treatment upgrades are being forced on you by others, does that create the question “Is the utility is really putting public health first?”  Does it beg the question  “why isn’t our utility already doing this?”  While every region will be different, how your customers may view your responsibilities is good question to ponder….

Thoughts?

It’s all one water…

June 4, 2012
Environment, water sewer management
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It’s All One Water was the byline when this blog was announced.  As noted the point of the blog is to discuss water industry issues with the hope of developing new ways to approach industry problems as time develops.  Our industry has operated with the concept that potable water, wastewater, storm water, runoff, navigable waters, etc are distinct from one another and are somehow different.  Most utilities have separate departments, let’s call the silos, that separate these different waters.  One of the issues that arises when the silos are in place, is that within larger organizations is the all-to-common perception that “never should these different waters touch,” that they should always be kept separate.  From a public health perspective that has worked for the industry relatively well, to the point that over any given 25 year period, the number of waterborne disease outbreaks has been relatively consistent since 1950 (640 or so affecting 150,000 people, with the 1993 Milwaukee incident being the outlier).

But does this work from a water quantity perspective?  For many parts of theUSandCanada, water quantity is the big driver, or limitation of growth and development.  Throughout history, civilizations grew where sufficient quantities of healthful water could be secured, and the “dirty” water removed.  This cut disease outbreaks and allows people to be more productive (in part because they can work more).  The same holds today, although the advances in technology have allowed us to develop far more water sources than our ancestors.  We can mine water from deep aquifers in the desert and treat ocean water for drinking purposes for example.

So we have aquifer systems that are being “managed” to produce water for 50 or 100 years in the west (the aquifers are used because surface waters are either limited or unreliable), with limited consideration of what happens when the system is fully managed to depletion.  Where will the new supplies come from and how much time, effort and expense will be used to develop new sources?  There is an assumption that we can drill deeper, but that is not an option for many locales, according to USGS.  Their Circular 1323 paints a painful picture that groundwater is simply not sustainable.  So when the water runs dry, what is the local impact of the economy?  Industry?  Population?  Many of these water stressed areas are hubs for intense agricultural cultivation.  Without water…well, there simply is no answer for this problem as yet in too many places that are currently water limited.

The reality is that as we try to improve the sustainability of our water systems, new sources must be developed.  The costs for new water supplies is significant, so looking forward, the recapture of water sources that otherwise may be released, assuming there is not a regulatory requirement for return flows, provides utilities with opportunities to expand the size of the water “pie.”  Instead of relying only on the water sources, diversification to the “other” water sources permits increased self reliance and control.  This was one of the concepts of the integrated water resources planning activities in vogue by the American Water Works Association starting in the mid 1990s.

Aquifer recharge, stream augmentation, and storage projects will become more prevalent in the future.  Those who pursue these options early are likely to position themselves for longer term, sustainable development. Orange County,CAhas been using alternative technologies to capture and use waters of impaired quality like wastewater and storm water, for treatment and replenishment of the local aquifers, given new life to depleted systems.  The ability ofOrangeCountyleaders to demonstrate to the public the safety of recharge, the reliability of treatment and the long term benefits/sustainability of their aquifer recharge project has armored the areas water supply.  They have drawn down the silos.

Compare to southeastFlorida. Southeast Floridagets 60 inches per year of rainfall, 70% in the summer. The area is flat, has high evaporation rates, saltwater intrusion caused by drainage canals, $3.7 trillion in property values, a $300 billion/year economy and 5.5 million people.  Water supply would not appear to be a problem, but the drainage system moves over 25% of the precipitation to tides.  And the water is well siloed.  The silo effect limits our ability to persuade the public of the benefits of, or need for, ideas like wastewater for irrigation of lawns, wastewater treatment to potable standards for drinking, and the capture of dewatering activities for raw water supplies in many areas.Southeast Floridahas investigated used for reclaimed water for irrigation and targeted potable reuse, but both meet resistance form communities who object to the “yuck” factor.  Future impacts of sea level rise, will require storm water utilities to pump groundwater 24/7, but despite no permits in place for the discharge, and no obvious outlets, the use of these wellpoint systems as a potable source has yet to be considered. Southeast Florida’s long-term issue is too much water.  But at least there is money to be spent.

Compare to the Plains states and the west.  Limited water.  Limited precipitation.  Flat land.  Ground water with limited recharge. Limited population so reuse options are limited.  Agriculture uses the vast majority of water.  And when it runs out?  The need for reservoirs, runoff capture and treatment, revised agriculture practices, and more are costly considerations that agriculture is unlikely to afford, and impact downstream utilities.  The need to develop ideas to expand the water supply “pie” are needed.

Water supplies are storm water runoff and wastewater discharges.  Wastewater is used potable water from the built environment and groundwater infiltration.  Storm water washes the land, often carrying pollutants with it.  Agriculture uses the water for irrigation, but precipitation carries nutrients, fertilizers and animal husbandry wastes offsite.  Power heats the water.  And throughout, the natural environment relies on specific timing, quantity and quality parameters to provide natural resources and economic stimuli.  The key is how to manage these water options form a holistic perspective to meet the needs of all users, while insuring that current activities do not limit the future.  It’s all one water.

thoughts?

It’s all one water!…

May 4, 2012
Environment, Uncategorized, water sewer management
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It’s all one water!

Welcome to the new Blog for water, sewer and other infrastructure managers.  The goal of this blog is to raise topics relevant to infrastructure professionals and offer advice on where people can find solutions to their issues.  Water and sewer folks are our primary target, but they are by no means the only target.   My goal will be to blog useful, topical management issues.  The full blog will be operational Memorial Day.  We will also be looking for commentary from folks in a variety of fields.  The key to innovation is learning from others, but we will also looking at the long-term vision of where organizations should go. Let’s get started!