Welcome to the Breakfast at the BMC Lecture Series
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1 Welcome to the Breakfast at the BMC Lecture Series Is California s state of emergency restrictions on water usage affecting the San Diego economy and real estate industry?
2 A special thanks to our sponsors: Corporate Sponsors Breakfast Sponsors Media Sponsor
3 Burnham-Moores Center for Real Estate September 22, 2015 Maureen A. Stapleton, General Manager
4 Local Supplies 26,000 AF 5% Metropolitan Water District 552,000 AF 95% Total = 578,000 AF 4
5 San Diego Business Leaders Never Again! No More Water Shortages! 55
6 San Diego has very few natural water assets Employ resource strategies unique to local conditions No single resource strategy can manage all uncertainties Multi-faceted approach Conservation New diversified supplies Imported Local Infrastructure improvements Reclaimed water pipelines Lining the Coachella Canal 6
7 Imperial Irrigation District transfer Term: 45 to 75 years 100,000 acre-feet in 2015 Ramps up to 200,000 AF/year by 2021 Canal-lining projects 80,000 AF/year for 110 years Higher priority than MWD s Colorado River supplies 34% of region s supply in 2020 Above: All American Canal under construction. Below: Completed canal adjacent to old earthen canal. IID and Canal Lining Deliveries
8 Carlsbad Seawater Desalination Project $1 billion investment 56,000 acrefeet/year of droughtproof supplies Largest seawater desalination facility in North America Expected on-line in Fall
9 City of San Diego Pure Water: 96,000 AF/year Padre Dam Advanced Purification Program: up to 3,000AF/year 11 Water Authority agencies pursuing potable reuse, with potential for up to 100,000 AF/year by 2035 Padre Dam Advanced Water Purification Demonstration Facility City of San Diego Advanced Water Purification Demonstration Facility 9
10 $2 Billion Invested in Infrastructure Since 2003 $416 million $394 million $1 billion $208 million 10
11 Total Potable GPCD State The reduction in potable per capita water use 1 1
12 TAF 5% 550 TAF 95% Total = 578 TAF 100 TAF 19% TAF 15% 304 TAF 57% Total = 534 TAF 190 TAF 32% 27 TAF 5% Estimated TAF 3% 5 TAF 1% 80 TAF 14% 150 TAF 26% Total = 587 TAF 44 TAF 7% 200 TAF 30% 48 TAF 27 8% TAF 5% 48 TAF 8% 80 TAF 12% Projected TAF 7% 120 TAF 18% Total = 680 TAF 50 TAF 7% 30 TAF 50 4% TAF 7% 100 TAF 15% Metropolitan Water District Imperial Irrigation District Transfer All American & Coachella Canal Lining Recycled Water Seawater Desalination Groundwater Local Surface Water Potable Reuse (Includes conceptual and planned projects) TAF=Thousand Acre-Feet 1 2
13 Actions Make conservation a way of life Increase regional self-reliance and integrated water management Manage and prepare for dry periods Expand water storage capacity and improve groundwater management Increase operational and regulatory efficiency Identify sustainable and integrated financing opportunities San Diego Implementing? 1 3
14 Growing San Diego s Economy on Less Water: 1990 vs $1365 $ $114* $505* Potable water use (thousand acre-feet) Population (millions) Potable gallons per capita daily use 2015 numbers estimated as of 8/7/2015 Jobs (millions) Gross Domestic Product (billions) Cost of water per acre-foot (full service treated water rate) *
15 1 5
16 Droughts are Common in California Sacramento River Unimpaired Runoff through Source: DWR Sacramento River Runoff is the sum of Sacramento River flow at Bend Bridge, Feather River inflow to Lake Oroville, Yuba River flow at Smartville, and American River inflow to Folsom 1 6
17 January 2013 February 2014 January 2015 Lake Tahoe NASA Satellite Images 1 7
18 2006 Water Shortage and Drought Response Plan Regional actions taken to lessen severity of shortage conditions in San Diego region Includes allocation methodology Activated February Model Drought Response Ordinance Levels with corresponding water-use restrictions Consistent region-wide response Declared Drought Alert Level in July
19 Adopt restrictions requiring 25% reduction in potable urban water use June 2015 through February 2016 Prohibit irrigation of ornamental turf on public street medians with potable water Prohibit irrigation with potable water in new construction that is not delivered by drip or micro-spray systems 1 9
20 Supply allocation from Metropolitan Water District MWD ordered Level 3, 15% cutback July 1, 2015 June 30, 2016 allocation period Agencies pay surcharge if they exceed Demand reductions required statewide State Water Board s May 5 emergency conservation regulations Establish individual reduction targets for each member agency Do not impact commercial agriculture 2 0
21 SWRCB Emergency Regulation Water Authority Member Agency Conservation Requirements 50% 40% 30% 20% 10% 36% 36% 32% 32% 28% 28% 32% 36% 36% 28% 20% 20% 20% 24% 20% 20% 20% 20% 16% 12% ~20% Region 0% Carlsbad Escondido Fallbrook PUD Helix WD Lakeside WD Oceanside Olivenhain MWD Otay WD Padre Dam MWD Poway Rainbow MWD Ramona MWD Rincon del Diablo MWD San Diego San Dieguito WD Santa Fe ID Sweetwater Authority Vallecitos WD Valley Center MWD Vista ID 2 1
22 Potable M&I Use (AF) 60,000 50,000 40,000 30,000 20,000 10, % Months in Jun Jul Aug Sep Oct Nov Dec Jan Feb 2 2
23 Supply (TAF) Estimated FY 2016 Potable M&I Demand ~ 523 TAF * MWD Initial Allocation M&I 274 TAF Water Authority CDP 39 TAF Long-Term Colorado River Transfers 180 TAF Local Supplies 25 TAF ~1% * Based on actual FY 2014, escalated at 1/2% per year. MWD supply allocation in effect 7/1/15 through June 30,
24 Building a reliable water supply requires both demand reduction and new supply development The State, driven by current drought crisis, has primarily focused on demand reduction Demand Reduction New Supply Developmen t 2 4
25 Regulations do not include credit for new, drought-proof supply development, such as seawater desalination and potable reuse State Board agreed to form workgroups: Early investments in conservation and drought-proof local supply development Refine tiers to reflect climate, lot size, etc. Health and safety considerations Workgroup held its 1st meeting in late Aug. 2 5
26 Demand reduction alone will not meet California s need for a reliable water supply Growth Percent Increase State of California $2.3 Trillion Economy 39 million 47 million 8 million 21% San Diego County $206 Billion Economy 3.2 million 3.8 million.6 million 19% Source: California Department of Finance population projections 2 6
27 Continued advocacy at State Water Resources Control Board to achieve credit for new, drought-proof water supplies Focus: protecting commercial, industrial and institutional economy Need business community s continued support and advocacy 2 7
28 Water conserved by residents and businesses is being stored in the newly expanded San Vicente Reservoir 42,000 AF of 100,000 AF carryover supplies stored to date Potential to store 100,000 AF by June 30, 2016 Reservoir already holds 36,000 AF of 52,000 AF emergency storage target San Vicente Reservoir: Month Date, 2015, Elevation XXX July 31, 2015: Elevation
29 Commercial Programs Water-efficiency audits Incentives High-Efficiency Toilets (Tank-Type) High-Efficiency Toilets (Flushometer) High-Efficiency Clothes Washers Ultra Low and Zero Water Urinals Plumbing Flow Control Valves Irrigation Controllers Rotating Nozzles for Pop-up Spray Heads Large Rotary Nozzles In-stem Flow Regulators Soil Moisture Sensor Systems Connectionless Food Steamers Air-cooled Ice Machines Cooling Tower Conductivity Controllers Cooling Tower ph Controllers Dry Vacuum Pumps Laminar Flow Restrictors More info at WaterSmartSD.org 2 9
30 Online & Outdoor TV Civic Events Web Site Social Media Landscaper Training Partnerships Radio/ Pandora Large Events: SD County Fair #droughtbucketlist 30
31
32 A special thanks to our sponsors: Corporate Sponsors Breakfast Sponsors Media Sponsor
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