Integrated Resources Planning Committee Item 7a December 12, 2016
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1 Integrated Resources Planning Committee Item 7a December 12, 2016
2 Long history encouraging local resource development Integrated Resources Plan Policy principles IRP Committee Item 7a Slide 3 12/12/2016
3 Improves regional supply reliability Reduces demands for imported water supplies Decreases the burden on Metropolitan s infrastructure and reduces system costs Frees up conveyance capacity to the benefit of all system users Helps to meet 20 by 2020 water use efficiency targets Helps to meet IRP goals Helps to meet legislative requirements IRP Committee Item 7a Slide 4 12/12/2016
4 Senate Bill 60 (SB 60) Expand conservation, water recycling, groundwater storage and replenishment Title 43, Code of Federal Regulations, Part 417 Metropolitan s effort in conservation and local resources development Senate Bill 7x-7 Lower urban potable per capita water use 20 percent by December 31, 2020 (20x2020) Delta Reform Act Encourage local resources development IRP Committee Item 7a Slide 5 12/12/2016
5 Financial Incentive Programs Non-Incentive Programs Other Areas IRP Committee Item 7a Slide 6 12/12/2016
6 Financial Incentive Programs Local Resources Program Seawater Desalination Program Public Sector Program On-site Retrofit Program IRP Committee Item 7a Slide 7 12/12/2016
7 Local Resources Program (LRP) IRP Committee Item 7a Slide 8 12/12/2016
8 Local Projects Program Recycled water 1991 Groundwater Recovery Program Recovered groundwater 1998 Local Resources Program Incentives paid for water produced IRP Committee Item 7a Slide 9 12/12/2016
9 LRP Evolution Over Time Capital Funding 1981 LPP Pay for performance incentives 1986 LPP 1990 LPP 1991 GRP 1995 LRP Conversions 1998 Competitive LRP 2007 LRP 2014 LRP refinements MWD sells the water Variable ($75-$113/AF) Fixed ($154/AF) Sliding scale up to $250/AF Sliding scale up to $250/AF RFP bids (avg. $115/AF) Sliding scale up to $250/AF Three payment options IRP Committee Item 7a Slide 10 12/12/2016
10 Payment Structure Options Maximum Incentive Amount Payment Period 1 Sliding Scale $340/AF 25 years 2 Sliding Scale $475/AF 15 years 3 Fixed Incentive Rate $305/AF 25 years Include Seawater Desalination Provide Reimbursable Services IRP Committee Item 7a Slide 11 12/12/2016
11 Authorized in 2014 Remaining 2007 target 63,000 AFY 4 projects previously approved 16,150 AFY 4 projects under consideration 8,800 AFY Balance 38,050 AFY Member agency survey 75 projects with combined yield of 166,000 AFY Recycled water, groundwater recovery, seawater desalination IRP Committee Item 7a Slide 12 12/12/2016
12 LRP Performance IRP Committee Item 7a Slide 13 12/12/2016
13 Metropolitan Water District of Southern California Local Resources Program Program Number of Projects Contract Yield (AFY) Deliveries to Date (AF) Incentives to Date ($M) Recycling ,000 2,471, Groundwater Recovery , , Total ,000 3,327, IRP Committee Item 7a Slide 14 12/12/2016
14 600,000 Recycled Water and Recovered Groundwater Production 500,000 Acre-Feet 400, , ,000 Non-LRP LRP 100, Fiscal Year Ending IRP Committee Item 7a Slide 15 12/12/2016
15 2,500,000 2,000,000 LRP Acre-Feet 1,500,000 1,000,000 Local Supply 500, Fiscal Year Ending IRP Committee Item 7a Slide 16 12/12/2016
16 Seawater Desalination Program (SDP) IRP Committee Item 7a Slide 17 12/12/2016
17 Authorized in 2001 Sliding scale incentives up $250/AFY for water produced Three Agreements signed (58,000 AFY total) Long Beach, MWDOC, WBMWD Projects in planning stages Agreements expire in 2020 if no water produced Seawater desalination became part of LRP in 2014 IRP Committee Item 7a Slide 18 12/12/2016
18 Public Sector Program (PSP) IRP Committee Item 7a Slide 19 12/12/2016
19 Authorized in 2007 Water use efficiency program Targeting public agencies High public visibility (Caltrans, city hall, schools, parks) Send positive public message Incentives to retrofit potable irrigation and industrial systems to use recycled water Provided $1.1 million for converting 85 sites to use about 3,000 AFY of recycled water IRP Committee Item 7a Slide 20 12/12/2016
20 On-site Retrofit Program (ORP) IRP Committee Item 7a Slide 21 12/12/2016
21 LRP production is not at capacity Recycled water production at ~70% capacity Consumers must retrofit their potable systems to use recycled water Cost historically borne by consumers Financial assistance needed to expedite conversions Board authorized the On-site Retrofit Pilot Program (ORP) IRP Committee Item 7a Slide 22 12/12/2016
22 Three year program $7.5 million budget + $700,000 USBR grant Apply from July 2014 to June ,900 AFY recycled water at 280 sites ORP was successful and popular In July 2016, Board authorized additional $10 M Two year (Ends in June 2018) Apply until September 2017 IRP Committee Item 7a Slide 23 12/12/2016
23 Non - Incentive Programs IRP Committee Item 7a Slide 24 12/12/2016
24 Local resource development constraints Costs (capital and operation) Permitting process Public education and acceptance Technical issues Joint studies Foundation Action Funding Program Legislation/ regulations Coordination with other agencies Reimbursable Services Program IRP Committee Item 7a Slide 25 12/12/2016
25 Salinity Management Study Identified regional economic impact of source water salinity Protecting water quality and source control helps local supplies The study is currently being updated Southern California Comprehensive Water Reclamation and Reuse Study Developed a regional GIS map and identified potential recycled water projects Metropolitan is updating the regional GIS map Groundwater Assessment Study Groundwater use, storage capacity, water quality Staff provided board reports on groundwater conditions in 2011 and Foundational Actions Funding Program IRP Committee Item 7a Slide 26 12/12/2016
26 Authorized in April 2013 $3 million budget 50% cost sharing up to $500,000 per agency Technical studies and pilot projects Reduce barriers and pave the road for implementing future local resources projects Adaptive component in 2010 IRP Update IRP Committee Item 7a Slide 27 12/12/2016
27 List of Proposals Participating Projects 13 Member Agencies Participating 13 Total Program Funding $2.94 Million Resources Represented Groundwater 4 Recycled Water 5 Seawater Desalination 2 Stormwater 2 13 projects funded from $25,000 to $500,000 Staff provided a board report to WP&S Committee in April 2015 Staff will provide another status update in 2017 IRP Committee Item 7a Slide 28 12/12/2016
28 Sponsor or advocate for legislation or regulations to help local resources development Streamline regulations Funding Public education and acceptance Water quality and source control Protect public health Collaborate with member agencies, WateReuse, ACWA, CUWA, etc. IRP Committee Item 7a Slide 29 12/12/2016
29 Collaborate with member and retail agencies on local programs LRP Task Force LRP Coordinators Coordinate with local, state, and federal agencies and trade organizations on local resource issues and standards Continued participation in Southern California Salinity Coalition IRP Committee Item 7a Slide 30 12/12/2016
30 Approved in 2014 Reimbursable agreement with member agencies Helps member agencies expedite development of projects Metropolitan offers a variety of technical and financial services Example agreement with LADWP in 2012 Tujunga Well Field Groundwater Recovery Project Project is completed and currently in operation IRP Committee Item 7a Slide 31 12/12/2016
31 Other Areas Strategic Plan Water Supply Allocation Plan IRP Committee Item 7a Slide 32 12/12/2016
32 1999 Strategic Planning Process Member agencies to competitively manage water supply and demand Reliability and water quality Statement of Common Interests Local resources development Choice and competition Cost allocation and structure Board approved unbundled service-based rate structure that is in place today IRP Committee Item 7a Slide 33 12/12/2016
33 Adopted in 1998 Principles and Implementation Goals Coordinated effort with Member agencies Efficient water use Develop cost-effective local resource programs Inform the member agencies and the public on water supply reliability Monitor and manage storage supplies for drought protection IRP Committee Item 7a Slide 34 12/12/2016
34 Adopted in 2008, updated several times WSAP allocation formula makes agencies better off if they develop local supplies Agencies are protected against losses of local supply in allocation years Agencies have increased total water supplies and higher retail reliability with increased local supplies IRP Committee Item 7a Slide 35 12/12/2016
35 Financial incentives Legislation and regulations Joint studies, research, and technology advancement Protection and improvement of source supply quality Public education and awareness Member agencies collaboration and input Other Metropolitan s policies IRP Committee Item 7a Slide 36 12/12/2016
36
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