PUBLIC PRIVATE PARTNERSHIPS

Transcription

1 PUBLIC PRIVATE PARTNERSHIPS A Better Way to Manage Water in Florida? 3 rd UF Water Institute Symposium W. Kirk Martin, P.G., CPG, CGWP February 2012

2 Public/Private Solutions for Better Water Supply Management Discussion Outline The Problem The Reality The Solution Issues to Be Resolved Some Examples

3 Region by Region Traditional Water Supply Sources Are Being Restricted

4 Region by Region Traditional Water Supply Sources Are Being Restricted (cont.)

5 Region by Region Traditional Water Supply Sources Are Being Restricted (cont.)

6 Region by Region Traditional Water Supply Sources are Being Restricted (cont.)

7 Region by Region Traditional Water Supply Sources Are Being Restricted (cont.)

8 Region by Region Traditional Water Supply Sources Are Being Restricted (cont.)

9 Florida is a Water Rich State! 50+ to 60+ inches of average annual rainfall Regular flooding over large areas Excessive discharges to estuaries Two of the most prolific aquifers in the world

10 So What is the Problem? Distribution of supply and demand Temporally and Spatially Highly successful drainage programs Reducing supply, storage, recharge Concentration of demands/impacts

11 Florida is a Big State with Lots of Open Land 35 million acres 9 million public ownership 18 million in agriculture Mostly unimproved Many large landholders Think bigger bolder

12 Public/Private Partnerships May Hold Key for Better Water Management in Florida Seasonal storage currently not available Critical groundwater recharge Improved water quality -- fresh and estuarine Private enterprise for public benefit May be less costly than public ownership / operation Private land remains on tax rolls No new public debt for major land purchases

13 Concept is Supported by Florida House Select Committee on Water Policy Recommendation #7 Evaluate the manner in which the state encourages preservation of agricultural lands for the purposes of water storage and treatment and groundwater recharge, including an evaluation of public-private partnerships to further the objectives of the state with respect to water resource management Legislative Session House Bill 337 Public Private Partnership Act

14 Also Supported by Florida Agricultural Commissioner Adam Putnam 2010 Water Policy Position Paper Agriculture is a key water stakeholder; both as a user and as a source of water recharge, water banking, and flow easements We must incentivize landowners to participate in water capture and storage and support public-private partnerships

15 State of Georgia Passed SB 122 Creating Authority for PPP for Water Resources Authorizes municipalities, counties, consolidated governments, water authorities, private firms, association, corporations to... Finance, construct, operate reservoirs, dams, aqueducts, pipelines, pumping stations, water distribution, treatment plants, wells, meters, electric generation, or other water related facilities.

16 Farming Water Has to Make Economic Sense for Both Supplier and User Recognition of public value for private initiatives Reasonable return for acreage in water service Credits easements cost share fee for service No mechanism to charge for water People of Florida own the resource Infrastructure, supplies, labor, etc. make up water bill Are land and water management structure and operations part of our water supply infrastructure?

17 Conditions Needed for PPP Water Management Concept to Work Framework for valuation and trade Some level of entitlement Consensus on cost and benefit Private equity markets like stability/predictability Guaranteed long term return (8%) Lots of capital available for the right program Florida agricultural would like some stability too $ per acre per year for vegetables $ per acre per year for citrus Western water rights conversion averages $10,000 per acre foot (3 cents per gallon)

18 Many Issues to Be Resolved Economic valuations What s it worth does it pay? Legal structure Private utility, Chapter 189/298 Districts Revenue structure fee for what? Permanence of system benefits Residual chemicals/bioaccumulation

19 Concept is Being Applied Examples King Ranch Aquacalma C-44 Initiative Florida Ranchlands Environmental Services Project - FRESP Facilitating Agricultural Resource Management Systems - FARMS SWFWMD Managed Aquifer Recharge Projects Evans Properties Utilities Initiative Farmton Water Utility Agreements C-51 Reservoir Initiative

20 King Ranch Aquacalma C-44 Reservoir Reservoir designed to process: 450,000 ac-ft/year 20 metric tons of phosphorous 2000 cfs to/from reservoir 600 cfs to/from STA

21 Florida Ranchlands Environmental Services Project Dispersed Water Management Private initiative to provide distributed storage Became a SFWMD solicitation for proposals Payment for Services agreements Pilot market base approach Water retention Nutrient reduction Timing of releases New agricultural product Water management Increased sustainability

22 FRESP/SFWMD Dispersed Water Management Initiative Initially looking at ranchlands in Northern Everglades Subsequent phases will look at more intensive agriculture in St. Lucie and Caloosahatchee Basins Evaluations based on: Water retained Phosphorous reduced Feasibility/ease to implement Cost effectiveness Environmental benefits FDACS, FDEP, NRCS

23 Facilitating Agricultural Resource Management Systems (FARMS) SWFWMD FDACS initiative Part of SWUCA recovery strategy Cost share agreements for Improved water management Expedited BMPs Reduced water use Improved water quality

24 SWFWMD Managed Aquifer Recharge Projects Co-Funding Conveyance of municipal reclaimed water to key aquifer recharge areas Goal to provide direct and indirect aquifer recharge and offsets to groundwater use 1- to 20-mgd projects Cooperators Counties Cities Power utilities Private landholders

25 Evans Properties Utility Initiative Large Florida landholder created 3 private utilities Grove Land Okeechobee, St. Lucie, Indian River Blue Field Martin, St. Lucie Skyland Pasco, Hernando Objective to offer variety of water services Water storage and retention Aquifer recharge Stormwater treatment Water sales Owners see water as potential next crop

26 Evans Properties Grove Land Utility Initial concept finance, construct, operate, maintain reservoir and STA Payment for services Reduction in discharges to IRL Yield 57-mgd water supply Recharge of surficial aquifer Water quality enhancement Inter-district exchange

27 Farmton Water Utility Agreements 59,000 acres in Volusia and Brevard Counties Agreement with City of Titusville to supply 2.75 mgd Potential agreements for up to 7 mgd with: Volusia County Deltona Deland Orange City

28 C-51 Reservoir Initiative Construction of 25-BG reservoir Store water from Lake O system Conveyance through LWDD or WCAs to urban water demand areas Provide critical aquifer recharge Potential to provide for 50-year CUPs Cooperators include: Palm Beach Aggregates LLC Lake Worth Drainage District Other smaller drainage districts Utilities in Palm Beach, Broward, and Miami Dade SFWMD and more

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30 Public Private Partnerships A Better Way to Manage Water in Florida? 3rd UF Water Institute Symposium February 2012 W. Kirk Martin, P.G., CPG, CGWP