What Does Sustainability Really Mean Integrating Sustainability into
What Does Sustainability Really Mean? Integrating Sustainability into Utility Practices Bob Raucher Corona Environmental Consulting braucher@Corona. Env. com CA-NV AWWA Fall Conference October 24, 2018
Myriad Challenges Face the 21 rst Century Water Utility ú ú ú ú ú 9 -11 and security concerns Escalating costs for chemicals, other inputs Mounting regulatory requirements Revenue gaps, belt tightening, and fiscal restraint Aging infrastructure and asset management Affordability Droughts and other extreme events Workforce succession Climate change and its planning implications ú What else is coming down the pike?
And now you want me to think about “Sustainability”? ú What does “sustainability really mean? ú How does it relate to the challenges we are already facing? ú How do we promote the sustainability of our utility? ú It is easier than you think, because …
Everything you are already doing to cope reflects sustainability ú ú ú ú Fiscal management Asset management Energy management Risk management Water supply planning Emergency preparedness Long-term planning
What is sustainability? A systems analysis perspective inputs Utility outputs Sustainability: The ability to maintain the production of outputs from inputs…
Production involves internal processes Organizational processes inputs outputs Physical processes
Production also takes place within a wider external environment Physical Environment Social Environment
Sustainability: Capacity to obtain inputs, produce outputs, and recover costs Labor, capital, natural assets, and raw materials Outputs
Sustainability: Capacity to obtain inputs, produce outputs, and recover costs Labor, capital, natural assets, and raw materials Outputs $ (revenues from sales)
Sustainability: Capacity to obtain inputs, produce outputs, and recover costs $ (payments for inputs) Labor, capital, natural assets, and raw materials Outputs $ (revenues from sales)
Sustainability: Capacity to obtain inputs, produce outputs, and recover costs despite other forces Public attitudes Competing demands $ Competing suppliers Outputs Labor, capital, and raw materials $ Governance and regulations Episodic changes (e. g. , drought) Affordability Systemic changes (e. g. , climate change)
So, sustainability is the capacity of a system to adapt to change Internal processes External processes 8 Physical environment ú Renewal of aging infrastructure ú Adapting to water resource constraints ú Treatment plant upgrades ú Treating lower quality source water 8 Organizational ú Workforce succession 8 Social environment ú Changing context of regional agreements, ú Affordability, reliability, regulations, etc.
Elements in common across the challenges you face ú Uncertainty ú Vulnerability and risk – High stakes ú Limited resources ú Many other pressing demands
Solutions in common across challenges ú Use what you already know (System realities, and planning processes) ú Use scenarios to reflect uncertainties ú Diversify your portfolio (and add storage) ú Develop sound business case evaluations (Triple Bottom Line) ú Promote flexibility (adaptive management) ú Build strong cooperative relationships ú Communicate with stakeholders (Internal, governing boards, customers)
Revenue Shortfalls! Billed Water (MGD) Water Sales (1980 -2009); Orange Water and Sewer Authority, NC Lower than projected demands have resulted in cumulative net revenue reduction of about $7. 3 million over last 3 years. 9. 0 8. 5 8. 0 7. 5 7. 0 6. 5 6. 0 5. 5 5. 0 4. 5 4. 0 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Water usage has large impact on revenues, much less so on costs De pe us nds ag o e n Revenue and Expenses for Charlotte-Mecklenburg Utilities in a Given Year Source: CMU Director Doug Bean’s presentation to the Charlotte City Council on December 1, 2008.
Factoring Climate Change into Planning ú Speaking Truth to Power? ú If you feel the need to tip toe through the tulips: – Stewardship and responsible planning – Climate “variability” ú Introduce and keep “climate change” in the dialogue
Factoring Climate Change into Planning
Perth’s Watersheds – Climate (Rainfall) RAINFALL
Perth’s Watersheds – Climate (Rainfall) and Reliability (Runoff) RAINFALL RUNOFF
Integrate Climate Change into your Standard Planning Process ú Especially for long-lived, high cost, investments (avoid expensive irreversibilities) ú Use what you already know (e. g. , tipping points) ú Enhance flexibility (adaptive management) ú Diversify your portfolio (Climate-insensitive supplies: reuse, desal) ú Communicate – Internal staff, Governing Boards, Regulators – Customers, NGOs, others
Smarter Use of Water Reuse Security through Diversity Desalination (courtesy of Ross Young, WSAA) Catchment Management Groundwater Water Trading Surface Water
How Do You Justify Water Supply Diversification? ú Challenges – New supplies are expensive (relative to past and present supply options) – New supplies (desal, reuse) often controversial (environmental, energy, growth concerns) ú Solutions – Define the “baseline” (what happens if no new water added to your portfolio) – Prepare a Triple Bottom Line assessment – Capture the value of supply reliability
What are your new supply options?
Public Attitudes about Their Most Preferred Water Supply-Enhancing Options 26
Applying a Triple Bottom Line Analysis: Compare Your Alternatives ú Financial outcomes ú Social outcomes ú Environmental outcomes
El Paso Triple Bottom Line: Desal and Reuse are Expensive, But Save Big $s in the End Social (> $2. 4 M) • Air quality related health risk reduction ($2. 4 M) • Supply reliability (+) • Climate-insensitive supply source (++) • Sustaining agricultural communities (+) Environmental (> $15. 7 M) • Carbon footprint reduction ($15. 77 M) • Energy savings 3. 6 M MWh • Air quality (+) • Groundwater quality (+) • Surface water (+) • Carbon footprint of piping (+) Financial ($967 M) • 74% cost saving to supply water to all EPWU customers
Asset Management • Think broadly about your utility’s assets! • Physical capital – Infrastructure: pipes, pumps, treatment plants, etc. • Natural capital – Water resources, watersheds • Human capital – Personnel at all levels
20 th Century versus 21 rst Century: Meeting the Challenges ú ú ú ú Collaborate: playing well with others Integrate: “One Water” and IWRM Communicate: engagement at all levels Invest: $s are harder to find, but needed Economize: prioritize, demonstrate value Diversify: new sources, new services Protect: more risks, more stewardship
Sustain: Think and plan for the long-term
Thank you! Questions? BRaucher@Corona. Env. com 303 -317 -3296
- Slides: 32