Executive Summary of Report on Corporate Contributions in Arizona and Colorado

Transcription

1 2018 Executive Summary f Reprt n Crprate Cntributins in Arizna and Clrad Octber 2018 IN PARTNERSHIP WITH ANTEA GROUP 1

2 GUIDING OBJECTIVE AND CONTEXT Business fr Water Stewardship (BWS) cmmissined research by Antea grup t evaluate the water stewardship effrts f cmpanies lcated r perating in Arizna and Clrad and gain insights n the current and ptential cntributin f the cmmercial and industrial (CII) sectr t brader water stewardship within in the regin. This research builds upn a previus study cnducted n behalf f BWS which fund that the #1 water risk faced by businesses in the Suthwest is availability/supply. INSIGHTS & OPPORTUNITIES Our research uncvered 3 primary insights: INSIGHT #1: Better water data is needed t assist cmpanies, utilities, plicy makers and ther stakehlders t manage and restre this valuable resurce. What we knw: The data that is available shw: On average the business sectr cnstitutes apprximately 25-30% f water use in bth states, thugh this number varies significantly amng water districts 2

3 Water use in the CII sectr in Clrad increased slightly ver the last few years, and declined slightly in Arizna ver the past decade, but is n the rise in recent years When cmpared with state ecnmic utput numbers (Grss State Prduct), the data shw that the Arizna cmmercial and industrial sectr has becme mre efficient in the last decade, cntributing t a 22% increase in Grss State Prduct while water use declined by 3% We were unable t btain any reliable numbers n water recycling r restratin based n publicly available data sets r thrugh ur surveys and interviews. Barriers: N cmprehensive requirements (all users, large and small fr all surces f water) r mechanisms fr centralized cllectin and reprting f cmmercial and industrial water use exist in either Clrad r Arizna Individual utilities have different classificatins f users that are mre aligned with the utility s rate and billing structures than usage perfrmance, s it is difficult t accurately assess CII water usage acrss a regin r state, r t cmpare between states Because f the variability f custmer bases, tracking mechanisms, definitins, and reprting timeframes acrss utilities, it is nt pssible t evaluate aggregate values r water use trends fr CII sub-sectrs (e.g., fd and beverage, technlgy, etc.) Within individual sub-sectrs (e.g., fd and beverage) there is significant variability (e.g., craft vs mega brewers, sit dwn restaurant vs fast fd, etc ) which, in additin t the lack f data, makes perfrmance benchmarking difficult Opprtunities: Build n effrts t develp mre effective methds and tls t measure and mnitr grundwater withdrawals frm majr aquifer systems such the ADWR Grundwater Site Inventry (GWSI) database in Arizna Emerging technlgies that help decisin makers analyze and visualize water infrmatin that will result in mre infrmed and accelerated water management decisins and general awareness Increased transparency and cllabratin between cmpanies and utilities and best practice sharing amng cmpanies that will enable develpment f sectr and sub-sectr water use and 3

4 perfrmance benchmarks by utilities, cmpanies, and trade assciatins t define what gd lks like, imprve decisin making, and facilitate priritizatin f water-related investments Update utility billing and metering systems t incrprate water perfrmance evaluatin and measurement INSIGHT #2: The business sectr is making psitive advances in water stewardship in Arizna and Clrad. Leading cmpanies have vluntarily adpted practive measures acrss their peratins in Arizna and Clrad, but there is appetite fr mre sharing f best practices, gal cmmitments and case studies that culd help drive mre practive water stewardship in the private sectr. What we knw: Key cmmercial sectrs, frm fd & beverage, t technlgy, t mining and pwer generatin, are leading the way n water stewardship in the regin Of the 32 Arizna cmpanies acrss seven majr sectrs evaluated, 44% have established water use gals, with annual water savings ranging frm 2-5% The tp water stewardship practices identified acrss Arizna cmpanies include: 1) Water reuse/recycling; 2) Cmmunity engagement/partnerships; 3) Operatinal mdificatins; 4) Technlgy/autmatin (remte mnitring); and 5) Landscaping Of the 35 Clrad cmpanies acrss three majr sectrs evaluated, 49% have established water use gals, with annual water savings ranging frm 4-10% The tp water stewardship practices identified acrss Clrad cmpanies include: 1) Technlgy/autmatin (remte mnitring); 2) Water reuse/recycling; 3) Cmmunity engagement/partnerships; and 4) Operatinal mdificatins Barriers Leading Gal Makers Hiltn 2030 gal t reduce water use in managed peratins by 50% cmpared t 2008 baseline Intel Restre 100% f glbal water use by 2025 by funding cllabrative prjects t supprt lcal watersheds that restre water in quantities equivalent t the water cnsumed by Intel Danne (frmerly WhiteWave) 2020 gal t reduce water cnsumptin in factries by 60% versus a 2000 baseline Only 8% percent f cmpanies in ur 2017 survey stated they have actually been able t dcument their water savings r restratin in terms f gallns r dllars Regulatry barriers such as difficulty in btaining permits fr water reuse prjects and river restratin prjects exist fr cmpanies Utilities are unable t disclse specific industrial r cmmercial water users data r perfrmance due t privacy regulatins 1, unless the custmer gives explicit permissin t release this data (e.g., t supprt a cllabrative recgnitin prgram), which inhibits sharing f best practices and achievements 1 Privacy regulatins: Clrad Rev Stat (2016) and Arizna Revised Statutes (2005) 4

5 Cmpanies in the U.S. are nt currently required t publicly reprt facility-level water usage and perfrmance data, and data sensitivity cncerns inhibit vluntary disclsure that culd lead t ther cmpanies embarking n water stewardship effrts Opprtunities Peer learning is ne f the tp three activities cmpanies say catalyzes greatest actin n water by businesses If a majrity f cmpanies within the tw states fllwed the water stewardship leaders and were able t reduce water cnsumptin by 10% thrugh best practices alne, we estimate Best Practice Hiltn prperties are required t have ne cmmunity water replenishment, there is ptential savings f ~20,000 acre feet in Arizna and engagement r restratin initiative active at all times. ~13,000 acre feet in Clrad Sme cmpanies are beginning t reprt mre granular data In Arizna and Clrad, individual Hiltn htels have taken n a wide range f and infrmatin thrugh public sustainability reprting and water stewardship prjects, fr example: disclsure framewrks (CDP, Glbal Reprting Initiative), r DubleTree Clrad Springs, thrugh cllabrative effrts with utilities r industry Clrad: Black Frest Reginal assciatins (the Beverage Industry Envirnmental Rundtable Park Restratin benchmarking study, Bulder Cunty Partners fr a Clean DubleTree Durang, Clrad: Envirnment) Htel staff taught all La Plata Supprt the develpment f efficiency standards r Cunty secnd graders abut benchmarks fr the cmmercial and industrial sectrs based n new and emerging water efficiency technlgies and best practices Mre aggressively share sectr and gegraphy specific water stewardship achievements and best practices t increase the percentage f cmpanies that set and mnitr water clean water and cnservatin Hamptn Tucsn Nrth, Arizna: Ensure water verflw frm parking ges t city reservir Hamptn Phenix Scttsdale, Arizna: Crdinate with city t stewardship gals have all leaky gaskets and ld rusted pipe replaced t prevent Increase transparency and disclsure f sectr and sub-sectr thusands f gallns f water water use and perfrmance data thrugh: lst each year Evaluating risks and pprtunities fr increased public transparency in water use metrics at a reginal r facility level Cmpanies breaking frm the nrm and sharing statelevel water use data t challenge ther users and make prgress twards defining benchmarks Utilities prviding greater transparency n sectr and sub-sectr water use data, including engaging with cmpanies t evaluate perfrmance ranges and benchmarks Hmewd Suites Greeley, Clrad: The suth area f the htel has a detentin pnd t hld rainwater and release slwly int the city system 5

6 INSIGHT #3: A supprtive perating envirnment in terms f plicy, regulatins, recgnitin prgrams, and ecnmic incentives is needed t accelerate water stewardship effrts in the private sectr that will benefit ther water users and all stakehlders. Cmpanies will need t engage in plicy cnversatins t advance smart water plicy and management. What We Knw The number ne issue preventing cmpanies frm getting mre engaged in water management refrm is a lack f infrmatin/understanding f the issues Tw thirds f cmpanies we surveyed say that cnnecting with decisin makers and stakehlders catalyzes business actin n water Barriers The business case fr water investments remains challenging due t perceived lw cst f water frm an peratinal perspective, and insufficient business value (e.g., recgnitin, cmpetitive advantage, revenue grwth) cmpared t ther investment ptins Until water stewardship is sufficiently mnetized, demnstrable prgress will be impeded. This phenmenn impacts bth water users (i.e. industry, dmestic, and agricultural users) and water prviders (i.e., utilities). Users ften nly cnsider the direct cst they pay fr water, which in the case f grundwater can smetimes be perceived as free Opprtunities External incentives (e.g., recgnitin, awards, cst savings) that will trigger a secnd tier f cmpanies t accelerate actins, which culd serve as the tipping pint and catalyst fr mre and mre cmpanies t act Mre cmpanies incrprating in their business mdels the value t nature and sciety f the water they use, by implementing a shadw price fr water internally, similar t an internal carbn tax Cllabratin n water awareness campaigns that leverage the influence f cmpanies, brands, and cnsumer reach with emphasis n the need fr all stakehlders t wrk tgether - bth public and private Cmpanies, business assciatins and ther decisin makers can supprt a number f prgrams and plicy effrts such as: Drught cntingency plans such as the ne being cnsidered by the Arizna legislature that call fr cnservatin and allw fr flexibility in water strage Funding t implement water plans such as the Clrad Water Plan Supprt incentives such as tax credits, lw-interest lans, and financing fr installatin f water reuse and recycling technlgies and systems by cmmercial and industrial water users such as funding and incentives fr water recycling cntained in the State f Clrad s Water Plan Adequate federal financing f effective water cnservatin prgrams such as WaterSMART and the Reginal Cnservatin Partnership Prgram and ensuring thse prgrams include criteria that priritize prjects with multiple benefits that include habitat, rivers, and utdr recreatin Remval f administrative barriers and streamlining f regulatins and permitting prcesses fr water reuse/ recycling prjects especially fr direct, ptable reuse and 6

7 graywater and fr prjects that will allw mre water t stay in rivers t benefit nature, recreatin and quality f life Expand and encurage bth public and private funding f and participatin in water banks, exchanges, and creative water transfers and sharing mechanisms. Prmte jurisdictin-specific demnstratin prjects Supprt effrts t streamline and refine water transfer, leasing and banking prgrams, prvide certainty in the regulatry prcess t minimize the csts f water transfers, prtect envirnmental and cmmunity benefits, and reduce adverse effects t rural cmmunities, and imprve interagency crdinatin Incentivize and encurage, particularly at the state level, the dnatin r vluntary lease r sale f water rights t benefit instream flws, recreatin, and prtectin f envirnmental values while retaining certainty f private water rights and mitigating issues assciated with utdated use it r lse it prvisins that can discurage cnservatin and preclude the use f water t sustain recreatin and envirnmental values CONCLUSION There is ample pprtunity t advance crprate water stewardship in Arizna and Clrad thrugh better capturing and sharing f data and best practices. Our research dcuments that cmpanies have the ptential t reduce water cnsumptin between 3-10% annually by using existing technlgies and practices. Cmpanies culd als d much mre t recycle and reuse water and restre depleted watersheds and river systems. A strengthened plicy and management envirnment will be the tipping pint needed t incentivize mre cmpanies t engage in water stewardship and t catapult water cnservatin, reuse and restratin by the private sectr t a higher level that will benefit all stakehlders and the envirnment. Fr additinal infrmatin r t get a cpy f the full reprt, please cntact: Ann Tartre ann@businessfrwater.rg Nick Martin Antea Grup nick.martin@anteagrup.cm 7