Public Utilities and Innovative Payments For Watershed Services Programs

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1 Public Utilities and Innovative Payments For Watershed Services Programs Drew Bennett*, College of Earth, Ocean and Atmospheric Sciences Sally Duncan, School of Public Policy Sue Lurie, Institute for Natural Resources Hannah Gosnell, College of Earth, Ocean and Atmospheric Sciences

2 Why Utilities? They are ubiquitous Publically Owned Public Interest Cost Savings Risk Management

3 A Working Typology Source Watershed Protection 15 Programs $18,000,000 - $250,000 / year Government Agency Partnerships 7 Programs $3,300,000 - $350,000 / year Water Quality Trading Programs 6 Programs $400,000 / year Voluntary Customer Offsets 6 Programs $10,000 - $1,000 / year Dam Removal 1 Program $9,900,000 / year Photo Source: USGS

4 Source Watershed Protection Programs Example Programs: NYC Source Water Protection Program Edward s Aquifer Protection Program (San Antonio, TX) EWEB s Voluntary Incentives Program (Eugene, OR) Objectives: Protect Drinking Water Quality Drivers: Regulatory Compliance, Lower Operation Costs, & Risk Management Photo Source: USGS

5 Source Watershed Protection Programs $ $ $ Rate Structure Implement Program Utility Customers Drinking Water Utility Partner Organization Landowner Management Action Photo Source: USGS

6 San Antonio s Edwards Aquifer Protection Program Edwards Aquifer Drinking water for 2 million people Development Pressure Fast Growing Region Need to Protect Water Quantity & Quality Photos by: Blake Gordon (

7 San Antonio s Edwards Aquifer Protection Program 1/8 Cent Sales Tax Voter approved in 2000, 2005, 2010 Generated over $130,000,000 Protection of Recharge Zones Nearly 100,000 acres conserved Photos by: Blake Gordon ( and San Antonio Express News

8 San Antonio s Edwards Aquifer Protection Program Edwards Aquifer Drinking water for 2 million people Development Pressure Fast Growing Region Need to Protect Water Quantity & Quality Source: Source:

9 Photo Source: Government Agency Partnership Programs Example Programs: Denver Water and USFS Forest to Faucets Santa Fe s Watershed Management Plan Flagstaff s Forest Health and Water Supply Protection Project Objectives: Mitigate Risk from Forest Fire Drivers: Risk Management

10 Photo Source: Source Watershed Protection Programs $ $ Rate Structure Utility Customers Drinking Water Utility US Forest Service $ Forest Treatments

11 Denver: Forest to Faucet What happened? Forest Fire Denver s upper watershed 150,000 acres burned Soil Erosion Flash Floods Debris Flow Impaired Water Quality Sediments and Debris Choke reservoirs Long-term Effects Photo Sources: Denver Water and USFS

12 Denver: Forest-to-Faucet A collaborative effort between Denver Water and the USFS Cost-benefits Estimated Cost of 1 Fire: $40 million Denver Water: $16.5 million USFS: $16.5 million Similar programs in Los Alamos, Santa Fe, and Pacific Northwest Photo Sources: Denver Water and USFS

13 Landscape Scale? Funding Varies Significantly Often Narrowly Focused Opportunities! Co-Benefits Often Undocumented

14 Lessons Significant Opportunities Critical Role of Partners Need for Integration with Larger Landscape Plans Photo by Graham Owen (

15 Questions? We thank the Bullitt Foundation and USDA National Institute for Food and Agriculture for financial support of this research Thanks also to the many individuals across the country for participating Photo by Graham Owen (

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