Conserve to Enhance: Linking Water Conservation to the Environment

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1 Conserve to Enhance Webinar Presentation Notes February 22, 2012 Conserve to Enhance: Linking Water Conservation to the Environment Thank you for your interest in Conserve to Enhance and this presentation. These notes will walk you through the presentation and provide additional context for the information provided in the slides. If you have any questions about the presentation or Conserve to Enhance, please contact Aaron Lien, or Candice Rupprecht, Slide 1: Title slide. Slide 2: Presentation outline. The presentation covers: A description of C2E and how to link water conservation and the environment The reasoning behind the program How the program works The benefits of C2E and what the WRRC can do to help you implement a program in your community Slide 3: About the University of Arizona Water Resources Research Center At the WRRC, we conduct research and also work to communicate research results to the water using community and the general public We work within Arizona and also the Colorado River Basin as a whole Slide 4: The water allocation picture: We need to be thinking about future supplies not just for people, but also for the environment. Consumers are more concerned about water issues and the environment and we have regulations like ESA that require us to think more about the environment. TNC study shows that water issues are American s #1 environmental concern; water matters to people. This is a sustainability issue o Utilities and corporations need to be thinking about impacts on the natural environment and how they can have a positive impact While the pie chart shows the environment out on its own, in reality it is integrated into the other sectors The overall point: we can and need to be doing more to think about the environment as a legitimate and important water user. Slide 5: How are we using our water today and going forward? Water use tends to be higher in western states But this is also the region with the most water scarcity! We also expect to see more population growth in the west and the southeast

2 So, this is pointing to a growing problem even without climate change impacts on water availability This chart doesn t tell us anything about trends in water availability and use Slide 6: Everyone in the Colorado River Basin probably recognizes this graph from the Basin Study. Supply and demand in the Colorado River basin is out of balance Snow Pack is expected to decrease as a result of climate change We have less water to go around! Of course, this is not just a Colorado River problem it s a problem everywhere, even in the humid east; Atlanta is a prime example Slide 7: Another look at what we can expect in the Colorado River Basin due to climate change We don t know exactly what to expect, but logic calls for caution Stream flows will go down in all likelihood and we will need to either find new sources or conserve more Conservation is cheaper and more reasonable Conservation is no longer a choice if we want to sustain human populations and environmental quality. We re all responsible water users, water utilities, corporations, etc. Slide 8: Now, let s look at water use Utilities try a number of approaches to encourage water conservation: o Conservation/demand management planning o Ordinances o Voluntary rebate programs o Education All of these programs have an impact, especially ordinances. But what are the long term impacts on motivating people to continue to save water or to adopt additional conservation efforts beyond ordinances? Slide 9: Conservation programs have mixed success: Ordinances are most successful mandatory changes, updated plumbing codes, etc. and rate structure changes that provide a financial motivation But voluntary programs the programs that result in additional conservation beyond baseline have low penetration. o They do a good job of increasing water efficiency of participants and make an impact, but have limited participation by ratepayers. o If we could increase participation, then we can have a much bigger impact on water use Some state on water conservation program successes from AZ help set the stage o Chandler (Phoenix Area): 3.4% total over 5 years assuming no customer received more than one rebate (245,000 people in the city, 8,513 rebates) o Mesa: gave 107 xeriscape rebates w/ customer base of 461,000 o Phoenix: 1.5 million plus population, but only 300 water audits for low income customers

3 o Tucson: 750,000 population and about 2,000 participants in voluntary conservation programs o All of these numbers are from the Arizona Water Meter Report These numbers aren t totally fair they are just a snapshot and don t include what people might be doing on their own, but the picture is clear: voluntary conservation programs are currently having a limited impact. Slide 10: If we want to increase participation in voluntary conservation efforts, then we need to tap into the motivations of water users The environment, when coupled with knowledge about what to do to conserve water can be a significant motivation for some water users To be effective, people have to both care about the environment and know how to conserve water Traditional utility programs only address one side of this equation they provide information on how to save water, but not why to save water We think we can better leverage the motivations of a significant segment of the population by explicitly linking the environment with water conservation in a way that allows people to feel good about both saving water and making a difference for the environment on the ground What is significant? o Based on experience with completely voluntary programs that link utilities with the environment, you get a participation rate of - 10% o But there are indications that the environment can be a stronger motivation when linked to water o Santa Fe survey found 82% of customers willing to pay $0.65 per month and 2/3 willing to pay $2 to protect water resources o Long- term program like Seattle and Salt Lake City show ratepayers are comfortable paying for environmental good through their water bill. Slide 11: Conserve to Enhance is a new approach to make the connection between environmental motivations and conservation. It results in new water conservation that would not have happened but for the program. This is conservation that goes beyond what is required by ordinances or comes from rate changes and results in actual behavior change So how does it work? A review of basics of C2E: The basic mechanism is simple: program is advertised as a way to leverage water conservation actions to benefit the environment People work to save water and then donate their savings The money is used in the community, so they benefit from the environmental improvements A win- win for the user: environmental benefits at no new cost to them their water bill does not go up as it does with green power programs, for example. Works for industrial/institutional users as well.

4 Slide 12: C2E boils down to the last bullet you re giving people a reason to conserve above and beyond what they otherwise would. The program helps: Individuals take action to conserve water (may be supported by education, subsides, etc.) Community partners collaborate (Utility, University, NGOs, citizens) Improve habitats using funds resulting from individual conservation efforts Educate participants and ultimately communities about water resource links to environment Overall C2E works to enhance not only local environments, but also the community conservation ethic Slide 13: This isn t entirely new, but is somewhat new for water utilities: Electric utilities have been doing this for a long time with green energy programs Some water utilities have voluntary or mandatory fee programs Bend, OR instream flows SRP Trees for Change Santa Fe, Salt Lake City, Seattle, Denver mandatory programs either as an extra charge or rolled into water rates But C2E is a bit different than all of these because it does not ask water users to pay more. Instead, the user contribution approach provides an incentive to conserve more because the more water they save, the more money they save, and the greater of an impact they can have on local environmental enhancement. Slide 14: The program has a fairly representative population of participants. Participants sign a release form to allow Tucson Water to give C2E their monthly water use data. Tucson is our first pilot to see how C2E works in the real world It does work o 1 million gallons saved so far o $1,000 donated o All through Sept 9 months of an operating program Important to note that not all participants started conserving right away, so numbers reflect a startup phase and should scale up over time Donations are totally voluntary and off- bill, so we are encouraged by giving rates Averaging over $3 per month per participant for those who have water savings Slide 15: Projections on what Tucson program could raise at full implementation Note these numbers are based on the start- up phase of C2E, so we would expect them to go up Slide 16: Water Conservation Benefits: The program does result in water savings, as evidenced by the Tucson pilot Water conservation is an important way of extending water supplies Water conservation can lower infrastructure costs, both maintenance and expansion As stated earlier, water conservation, especially in the west, is no longer a choice. It is a need.

5 Slide 17: What types of environmental benefits can the program support? Whatever the community wants! One of the strengths of C2E is that it is so flexible it provides a new funding source that can be devoted to a wide variety of community priorities: It s important that the project selected has something to do with water, or else you lose the connection between water conservation and the environment From there, there is a wide range of options: instream flows, green infrastructure, stream restoration Best to pick something local and visible so people can see and feel proud about their contribution helps to maintain the incentive to give Slide 18: This is where the connection between the environment and water conservation is made: Promotional materials for the program will educate people on the linkage between natural systems and the environment A more informed consumer is more likely to do more to conserve Slide 19: C2E increases the profile of participating utilities and corporations actions to benefit the local environment and community. Slide 20: C2E brings together interests in a community to accomplish common goals Helps people and communities form non- traditional partnerships that benefit everyone through community based conservation projects Tucson Structure Advisory Board assists with program implementation including project selection, and funding distribution Core Team responsible for program management EPA provides funding for implementation of residential rainwater harvesting projects to conserve potable water Tucson Water provides access to participant s water records with permission and includes a check box on all water bills Donations used to fund environmental enhancement Slide 21: Need to determine what the priorities are in your community because C2E is flexible, it is likely to meet your needs. Remember, one purpose of the environmental connection is to motivate water conservation by users But it is also to make a meaningful difference in a community look at what priorities exist and think about how much money you think you can raise. Select practical projects. Slide 22: Selection of an accounting approach is a technical process because it involves determining the capacity of the utility and/or local partners to track and manage data. Communities need to select an approach that best serves their individual capacity and program goals.

6 Slide 23: It s possible for water providers to start simple A check box will not achieve the full range of benefits of Conserve to Enhance no explicit link to water conservation, but is a good first step to building recognition of the environment, generating funding, and educating water users about environment connections. Can build on a check box to integrate C2E, e.g. report to consumers their savings as a result of conservation and allow them to fill in that amount on their water bill. Slide 24: What we Offer: An Innovative Program o Individuals take Action o Water is Conserved o Habitats are Improved o Community Partners Collaborate o Participants educated about water resource links to environment o Community conservation ethic begins to develop Active Stakeholder Engagement o Currently working with a variety of partners & communities throughout the West. In some communities we re talking with utilities, in others with NGOs and agencies Partnership Development o We understand that programs like these don t get accepted or implemented over night. We re here to help scope out the partners who will help develop successful program and provide the tools to keep these partners on track Program Template & guidance o Experience has taught us that there are key elements necessary to any successful pilot. We provide an understanding of how to navigate these elements Lessons Learned: Design pilot programs for local situation o Accounting mechanism: Billing System? o Recruit participants: Messaging? o Oversight body: Existing Processes? o Receiving projects: Local Priorities? Slide 25: These websites are a good source of additional information about Conserve to Enhance generally (WRRC website) and the Tucson C2E pilot (Watershed Management Group, Tucson Water, and Sonoran Institute websites). Slide 26: If you are interested in learning more about the program, please contact us. Within Arizona, contact Candice Rupprecht. If you are outside of Arizona, contact Aaron Lien. Slide 27: An outline of future webinars planned for this series on linking the environment and water utility user contribution programs.