Green Credits for Water & Wastewater Systems November 4, 2010

Transcription

1 Green Credits for Water & Wastewater Systems November 4,

2 Presentation Outline The Cost of Service Approach Cost of Capital Deferrals Cash Flow vs. Economics Additional Considerations Questions

3 The A major environmentalist developer is proposing a large green structure building in USA. The building will collect rainwater from the roof. The water will be treated and used for drinking and to flush the toilets. Toilets waste would go to a composting system in the basement. Urine would go to the basement where it would be sterilized over several months. Graywater from the sinks and showers would be mixed with the sterilized urine and pumped to a greenhouse where it would be taken up by plants and evaporate. This is a cutting edge Green building that want to go off the water grid by using alternative on-site sewerage treatment within the urban area of USA. The Question Should a project that are not hooked into the regional system within the urban area but have the utility available pay a monthly capacity charge like everyone else? Going Green is promoted by almost all elected officials. but if green structures go off the grid who pays for the infrastructure (or design consultant fees). This is what I call a social justice issue. If no capacity charges are levied in Green Structures the burden of paying for public infrastructure would fall on less fortunate people who couldn t afford alternative green technology systems. - Anonymous Design Engineer

4 Summary Technology Proposed large green building Rainwater harvesting for drinking and toilets Urine is sterilized and pumped to greenhouse Food waste and toilet waste is composted Critical Questions: Should this green building pay for access to regional system? Are they truly disconnected? What is the true cost to the regional system? Does social justice come into play? Design consulting fees? Page 4

5 Cost of Service Approach

6 Cost of Service Allocation For both water and wastewater system, cost of service allocations provide basis for impact fees and corresponding credits Examples: Flow and loading unit costs for wastewater Base and peak usage unit costs for water Page 6

7 Unit Charges Calculation $ Flow BOD 5 TSS??? Allocated Costs $ $ $ $ Total Units hcf lbs lbs??? Unit Cost $/hcf $/lbs $/lbs $/???

8 Base to Peak Allocation Fire flow System Capacity Peak usage Base usage Annual Water Demand Page 8

9 Capital Deferral

10 Capital Deferment Cost of new water supplies Collection system overflows in urban environments Effluent discharge limits Page 10

11 Southern California Water Supplies Imported Supplies Delta Water Colorado River Water Local Supplies Groundwater Recycled Water Ocean Desalination Page 11

12 Deferral of Capital Costs System Capacity Projected water demand Water Demand Time Page 12

13 Deferral of Capital Costs (continued) System Capacity Original projected demands Demand after recycled water Water Demand Time Page 13

14 San Diego County Water Portfolio Recycled Water: 2% Conservation: 7% Local Surface Water: 5% Local Surface Water: 6% Groundwater: 2% Imported: 95% Canal Lining Transfer: 1% IID Transfer: 6% Imported: 76% Page 14

15 Water Portfolio Seawater Desalination: 10% Recycled Water: 6% Conservation: 11% Local Surface Water: 7% Groundwater: 6% Imported: 29% Canal Lining Transfer: 9% IID Transfer: 22% Page 15

16 Single Family Residential Usage 16, % 14,000 12,000 10, % 80.0% 70.0% 60.0% 8, % 6,000 4,000 2,000 Annual Accts Cumulative % of Accounts 40.0% 30.0% 20.0% 10.0% %

17 Water and Wastewater Pipelines Green technologies can defer significant capital upgrades Hydraulic models can be used to define deficiencies Page 17

18 Cash Flow vs. Economic Approaches

19 Economic Issues Accounting for Externalities Environmental benefit Social benefit What is quantifiable and what is strictly qualitative? Permit violations? Recreational benefits? Capital deferral? What about a holistic approach to water resources? Page 19

20 Additional Considerations

21 Page 21 Three Considerations Pricing Policy Enforcement

22 Prioritization Absolutes Prioritizing policy objectives allows for a focused approach Important Features Quantify the impact of fee credits Desired Features Understanding implications to complementary services Non-Considerations Page 22

23 Enforcement Compliance Failure Contract delineating consequences for failure to comply Impact Fees Paid in Full for Violation Supplemental Charges Moving Regulation Conservation Stormwater retention requirements Page 23

24 Questions? Robert S. Grantham FCS Group 225 Bush Street, Suite 1825 San Francisco, CA (415)