Water Resource Sustainability Metrics and Tools for the Energy Sector

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1 Water Resource Sustainability Metrics and Tools for the Energy Sector Laura Weintraub, PE LimnoTech ENV VISION Environmental Vision - An International Electricity Sector Conference May 10-11, 2016 Washington, DC

2 World Economic Forum, 2015: Water crises are a top global risk World Energy Council, 2016: lack of locationspecific knowledge on water issues

3 Water Sustainability Risk Factors Water supply Drought frequency Seasonal variability Floods Water demand Competitive demand Projected growth Water quality Impacts of electricity production Impacts toelectricity production Regulatory/water rights Over appropriations Inter-basin or inter-state compacts Conflict Water Stress relates to both water quantity and water quality 3

4 Broadly Assess Risk Global Data and Visualization Quantify Water Metrics for the Energy Sector Water Resource Sustainability Assessment and Reporting Analyze Basin Scale Decision Support Engage, Implement, Certify Water Stewardship Standard 4

5 Broadly Assess Risk: Global Data and Visualization Tool EarthStat Water Depletion WRI Aqueduct Baseline Water Stress Definition Spatial and Temporal Scale General Equation Important Assumptions Fraction of renewable water consumptively used for human activities Annualbut integrates seasonal and dry year depletion; 143,563 watersheds globally (~HUC-6 to HUC-8 resolution) Includes surface water and renewable groundwater Accounts for reservoirstorage, regulation and evaporation (1,875 large impoundments) Seasonal / dry year depletion categories provides more accurate depiction shortage Does not account for inter-basin transfers or env. flows Ratio of total annual water withdrawals to total available annual renewable supply Annual, other metrics for inter-annual / seasonal variability; similar but slightly coarser resolution than EarthStat Surface water only Does not account for storage Does not account for inter-basin transfers Does not account for environmental flows Includes projections of water stress with climate change Website EarthStat Water Depletion WRI Aqueduct 5

6 6

7 EarthStat Water Depletion Brauman et al.,

8 Quantify: Water Metrics Identify quantitative metrics that relate electric utility freshwater use to associated risks and impacts Use scientifically-based water metrics to consistently measure and report water use to a variety of audiences Benchmark current company performance Determine current and future water-related risk (or lack of) Voluntary sustainability reporting Track performance over time Inform effective water stewardship response Collaborators: Wendy Larson, LimnoTech Bob Goldstein, EPRI Jessica Fox, EPRI 8

9 Water Metrics Investigation Prioritized, tiered and streamlined metrics Investigated scientific basisof metric components Context-based metrics most useful for assessing sustainability Applicability of each metric Relevance to facility and waterbody type Appropriate spatial and temporal scale Required input data Potential for aggregation across multiple facilities Limitations 9

10 Water Metrics for the Electric Power Sector Category Metric Question Addressed Quantity Risk Demand / Total Demand Demand / Available Supply How does my water use relate to all uses in the watershed? How does my water use relate to available supply? Tier 1 Tier 2 Operational Incidences Quality Risk Use Efficiency Freshwater Use Minimization Permit Noncompliance Operational Curtailment Water Quality Intake Risk Water Quality Discharge Risk Consumption Ratio Use Intensity Degraded Water Ratio Recycling ratio Is my facility facing regulatory risk due to water withdrawal or discharge permit violations? Is my facility facing operational risk due to power generation curtailment events? Is the available water of an acceptable quality compared to the needs of the facility? What proportion of available water quality capacity is reduced due to the facility discharge? What proportion of water withdrawn by my facility is consumed? What is my facility s water use efficiency (withdrawal or consumption) relative to electricity generated? What proportion of water withdrawn or consumed is from a degraded water source? What proportion of the required fresh water withdrawn is recycled within my facility? 10

11 11 Applicability of Water Metrics

12 Heat Map to Aggregate Metrics and Identify Water Stress, Risk, and Impact 12 Heat Map is preferred over a single quantitative index Risk Category Thresholds Unacceptable X > 1 High 1 > X > 0.8 Med 0.8 > X > 0.2 Low 0.2 > X

13 Applications and Audiences for Metrics No single metric tells a complete water story Each metric may speak to a different audience and serve a different purpose Identify Water Stress and Risk Internal Operations Identify Impact Investors Provide Context Regulators Benchmarking Local Community Stakeholder Communication Disclosure Reporting 13

14 Analyze: Basin Scale Decision Support System Fine scale understanding of water use in the context of supply Verify water quantity risk Explore competing demand across sectors Encourage stakeholder collaboration Computes system water balance on regional scale Evaluate consumptionand withdrawal risk Explore water saving strategies Consider environmental flow limits Examine tradeoffs with various water saving strategies and other sectors Water Prism 14

15 Water Prism Big Cypress-Sulphur Basin, TX Scenario: retire coal-fired unit, increase muni/industrial/ag efficiency (per 2012 Texas Water Plan) Lake O the Pines make-up water for 3 electric power plants supplies a variety of municipal users tributary water use is irrigation, manufacturing Increase and hydraulic in violation fracturing of water management objectives due to increasing water use demands Reduction in violations of water management objectives due to a reduction in water demand 15

16 Engage, Implement, Certify: AWS International Water Stewardship Standard What is water stewardship? the responsible use of freshwater that is socially and economically beneficial as well as environmentally sustainable Water Stewardship only improvement of opera onal water efficiency Often focused on actions outside the fenceline What is the AWS Standard? A globally-consistent, ISEAL compliant standard that outlines the expectations of responsible water stewardship Why was it developed? International consistency Recognition of leaders Mechanism to simplify water risk mitigation for sites and investors Support supply chain risk management Credible validation of water stewardship claims Integrative framework and common language 16

17 Engage, Implement, Certify: AWS International Water Stewardship Standard AWS Standard Steps and Continuous Improvement Source: Water Stewardship Plan that links: Site risk Shared water challenges Desired outcomes of water stewardship Good water quality Sustainable water balance Healthy important water related areas Good water governance Option for third-party verification 17

18 Application of the AWS Standard Piloted tested AWS Standard at Great Lakes industrial facilities (CGLI, LimnoTech, NCASI, 2014)* The Water Council (Milwaukee) is the official North American regional partner for AWS Several corporations committed to applying the AWS Standard 18 * Project funded by the Great Lakes Protection Fund (GLPF)

19 Challengeswith Water Sustainability Metrics and Tools Challenging to capture the complexity of water Highly technical exercise Context is key Both quantity and quality should be evaluated to identify water stress Use caution when aggregating metrics for external benchmarking Highly dependent on power plant cooling water system type and geography Detailed analysis requires higher level of resources Building a business case can be difficult Not necessary regulatory driven Understanding return on investment can be helpful 19

20 Opportunitieswith Water Sustainability Metrics and Tools Can help demonstrate cases of low water risk Some metrics can be used as leading indicators Identify potential future risk Demonstrate progress towards water goals Using a variety of metrics can tell a complete water story Support initiation of a broader water stewardship effort Expand disclosure submittals using context based metrics (footnotes, appendices) May help tell a positive story Stewardship outside the fencelineand stakeholder engagement may help to mitigate future reputational or regulatory risk 20

21 Summary of Tools and Methods Support both internal risk assessment and external disclosure Application is not one size fits all Different ranges of complexity and resource needs for each method Where to start may depend on drivers Operational concerns Investor communication Broadly Assess Risk Global Data and Visualization Analyze Basin Scale Decision Support Water Resource Sustainability Assessment and Reporting Quantify Water Metrics for the Energy Sector Engage, Implement, Certify Water Stewardship Standard Broad assessment for fleet Detailed assessment at select facilities Information from one method should support other methods 21

22 You ll know sustainable electricity because....water Risk will be well managed Electric power generation will have less reliance on freshwater, especially in water stressed areas Power plants will not curtail generation due to water availability or water quality issues Electric utilities will actively collaborate with stakeholders to improve water quality, support sustainable water balance and protect ecosystem needs

23 Laura Weintraub, PE 501 Avis Drive Ann Arbor, MI Additional Information WRI Aqueduct: EarthStatWater Depletion: Water Prism: product IDs: (Water Prism Vol. 1: Tool Development) (Water Prism Vol. 2: Prototype Applications) (Water Prism Vol. 3: Enhancements and Western U.S. Prototype Application) Alliance for Water Stewardship: Great Lakes Protection Fund Industrial Water Stewardship Study

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