ADVOCATE Summer 2019
C L E A N WAT E R
THE NACWA MAGAZ I NE The National Association of Clean Water Agencies
14
Solving Water
18
What Clean Water Can Learn from Facebook, Airbnb, and Uber
40
Charting the NEW Course 1
The Clean Water Advocate // 2019 Summer
We clean it. For everyone’s sake.
get into
FOCUS.
save the date
WINTER CONFERENCE
ATLANTA GEORGIA F E B R U A RY 4 - 7, 2 02 0
3
The Clean Water Advocate // 2019 Summer
President’s Message 6
Realizing 2020 Vision
Water Sector Voice 26
by John Sullivan
Coming Full Circle: Why We Work in Water
Leadership & Community Outreach 8
by Barry Liner
Technology & Innovation 14
Solving Water by Patrick Decker
32
The Clean Water Calling by Peter Grevatt, PhD
36
Capturing National Reuse
Architects of Our Own Fortune
In Focus 40
Charting the NEW Course by Tom Sigmund
by Mahesh Lunani
18
Rise of the Network Orchestrator by Andy Richardson
by Patricia Sinicropi
DISCLAIMER: The opinions expressed in contributed articles are exclusively those of the authors alone, and do not necessarily represent official positions taken by their employers or NACWA.
CONTRIBUTING WRITERS Patrick Decker Peter Grevatt Barry Liner Mahesh Lunani Andy Richardson Tom Sigmund Patricia Sinicropi John Sullivan
MANAGING EDITOR Anthony Viardo Director Communications & Marketing tviardo@nacwa.org
ART & DESIGN DIRECTION Sarah Bixby Lead Graphic Designer sbixby@nacwa.org
Founded in 1970, the National Association of Clean Water Agencies (NACWA) is the nation’s recognized leader in legislative, regulatory, legal and communications advocacy on the full spectrum of clean water issues. NACWA represents public wastewater and stormwater agencies of all sizes nationwide, and is a top technical resource in water quality, water management and sustainable ecosystem protection. NACWA’s unique and growing network strengthens the advocacy voice for all member utilities, and ensures they have the tools necessary to provide affordable and sustainable clean water for all communities.
PUBLISHED BY The National Association of Clean Water Agencies (NACWA) Images: © iStock, Adobe Images, Unsplash
CONTACT NACWA 1130 Connecticut Ave, NW Suite 1050 Washington, DC 20036 (202) 833-2672 info@nacwa.org Membership Kelly Brocato Sr. Director, Membership Development & Retention kbrocato@nacwa.org
Our vision is to represent every utility as a NACWA member and to build a strong and sustainable clean water future...together!
The Clean Water Advocate // 2019 Summer
I
PRESIDENT’S MESSAGE
REALIZING 2020 VISION
A Year of Engagement, Collaboration, and Resiliency BY JOHN SULLIVAN, NACWA 2019-2020 PRESIDENT CHIEF ENGINEER, BOSTON WATER AND SEWER COMMISSION (BWSC)
t is with great excitement that I look to the year ahead as the National Association of Clean Water Agencies (NACWA) President and to the many accomplishments yet to come in 2020. The year will mark a key milestone in NACWA’s history—its 50th anniversary— and I am honored to have the opportunity to help navigate the organization as we look to our many accomplishments over the past five decades and, of far greater importance, to setting a vision and direction for 50 more years of success for the clean water sector. I am grateful to be following the strong and solid leadership of NACWA’s outgoing President, Mark Sanchez, Executive Director, Albuquerque Bernalillo County Water Utility Authority. He made it clear from the outset that he wanted his year as President to focus on member engagement—getting the growing NACWA membership to exchange best practices and ideas with one another through a variety of in-person and online tools that NACWA offers. Mark also focused on ensuring that the membership of utilities of all sizes and from all geographies speak with one voice on water policy to all levels of decision making—local, state, and federal. He oversaw the first significant amendment to the Clean Water Act in decades, making integrated planning, green infrastructure, and a municipal ombudsman’s office at
the US Environmental Protection Agency to voice municipal clean water concerns directly to the Administrator, permanent parts of the core statute that shapes the clean water landscape. Hats off to Mark and his leadership! My goal is to build on this strategy of engagement with a targeted focus on what I believe is the greatest challenge for the sector—climate change and resiliency. Communities across the country continue to be devastated by unprecedented wet weather, drought, wildfires, and cyber-attacks. Unless we share best practices and unite behind workable advocacy solutions, we will not be able to adapt to and mitigate these changing and more intense weather patterns and frightening cybersecurity risks. It is a challenge that I know is top of mind in my hometown of Boston as we seek to confront sea level rise and more intense storms and precipitation than at any time in the past. I am excited to announce here that NACWA is already hard at work with its sister drinking water association, the Association of Metropolitan Water Agencies (AMWA), on four joint webinars that will be free to all NACWA and AMWA members and nonmembers alike. These webinars will start in September and continue through the year, culminating in a joint AMWA-NACWA in-person Resiliency Summit in Miami, Florida, in December 2020. Top utility executives and experts will share
the full range of resiliency actions—from planning to investment—resulting in the two leading advocacybased water sector organizations developing a set of policy asks to ensure strong and more predictable federal activity on resiliency. More than anything else, I believe this collaborative effort will strongly position NACWA and the sector on resiliency in a way that will ensure success for the next 50 years.
Unless we share best practices and unite behind workable advocacy solutions, we will not be able to adapt to and mitigate these changing and more intense weather patterns and cyber-security risks. I look forward to working with all the NACWA members and to hearing from you on how to make this year as successful as possible. I encourage all of you to continue to support NACWA and summon you all to not just be members but to get engaged. Together we will make this a very productive year.
7
The Clean Water Advocate // 2019 Summer
ARCHITECTS OF OUR OWN FORTUNE How the ‘Regional Water Architect’ Concept is Creating a New Vision for the US Public Water Sector
Leadership & Community Outreach
By: Mahesh Lunani, Founder and CEO, AQUASIGHT Knowledge Contributors: Sue McCormick, CEO, Great Lakes Water Authority Tony Parrott, CEO, Louisville MSD Angela Licata, Deputy Commissioner of Sustainability, NYC DEP Enrique Zaldivar, Director and General Manager, LA Sanitation Kishia Powell, Commissioner, Atlanta DWM Carol Haddock, Director of Public Works, Houston PW Yvonne Forrest, Deputy Director, Houston PW
“Every man is the architect of his own fortune.” -Appius Claudius Caecus (340 BC – 273 BC)
T
oday, clean water utility leaders are scrambling to unlock the door to the next 50 years of prosperity within the everevolving, highly technical, ultra-modern water landscape. We can craft a brighter future by drawing on some inspiration from Roman history. Roughly 2300 years ago, the Roman politicianturned-statesman, Appius Claudius Caecus, quipped a catchy axiom—oft-repeated in Fortune 500 board meetings—that any person, though ultimately beholden to circumstances beyond their control, can design, work for, and ultimately be responsible for, his or her own success. This article is a call for us, as utility leaders, to adopt the Appian attitude for success: We are the architects of our utilities’ fortunes. Our future is in our hands.
The hallmarks of the US water sector in the 21st Century will be cooperation, collaboration and integration. After monitoring recent developments in the sector and interviewing sector leaders, we’ve come to recognize how the sector is evolving and will continue to evolve. This evolution is driven by two related elements: (1) the country’s organically grown-and-fragmented water sector can be more efficient, and (2) multi-dimensional pressures confronting individual water agencies will demand it. To enable this direction, we put forth the Regional
9
The Clean Water Advocate // 2019 Summer
Water Architect (RWA) concept—a visionary approach to voluntary, flexible collaboration by autonomous community water and wastewater systems that can collectively meet the sector’s many challenges. This represents both a terrific opportunity for the sector, and a flexible model with which to seize it.
ARCHITECTS OF OPPORTUNITY In total, more than 51,300 community water systems and 14,700 publicly owned treatment works serve more than 80% of the US population. Each of these systems has the same fundamental responsibility: serving its residents and communities. This fragmented structure can be inefficient, and drives duplications, eventually exacting a cost on ratepayers. The top 10,000 utilities average $8 million in revenue, yet they perform identical services and make similar investments, often times while sitting immediately adjacent to their neighboring utilities. As increasing water challenges compound the stress on utilities, sustaining service levels and infrastructure upgrades becomes increasingly difficult. In a recent survey of water utilities by the American Water Works Association (AWWA), 31% of respondents stated that in the next five years, they anticipate struggles to cover the full cost of providing services. That’s an astonishing one-third of responding utilities. Hence, it is incumbent upon the entire sector to create a bold vision that can enable it to thrive, and not just survive.
THE REGIONAL WATER ARCHITECT There are some early positive signs. The buzz around the “One Water” concept, integrated planning, hub utilities and regionalization is growing. Early adoption of these initiatives has gone hand in hand with the evolution of a new type of utility leadership model in the US, one that goes above and beyond running a utility, serving rate payers, or meeting permits.
In this transformative model, leaders create and implement strategies across the life cycle of water, both within and outside their jurisdictional boundaries. They derive solutions for merging the common interests and responsibilities of various water and wastewater systems within a region. They are implementing operating models to enable regional cooperation in operations, infrastructure, public health, security and resiliency. Utilities that are driving these transformative changes are “Regional Water Architects” (RWAs). While the concept of RWA has been around in various forms, its relevance, need and impact to the sector has never been greater.
This model should allow utilities to self-determine how they operate within their region and create a win-win approach. To dig deeper into this subject, discussions were held with CEOs from utilities spanning the country. The objective was to gain a better understanding of the origins of RWA, the leadership traits they possess, constraints under which they have to operate, and the role of local politics. One overwhelming conclusion emerged from this discourse: RWA is a game changer and will create a whole new vision for the sector. This enlightened discussion led to many insights eventually culminating in the creation of a flexible RWA operating model that every utility or leader can apply based on their local or regional opportunities and constraints.
MULTI-FACETED LEADER RWAs take on the task of solving issues in their regions. Contaminated water, supply shortages, excess capacity, silver tsunami, financial pressures, and local economic loss among others—have all
Leadership & Community Outreach
MULTI-LEVELED OPERATING MODEL
The model is built on a continuum that has three levels starting with information on the left to integration on the right (see Figure 1). The “Information RWA Model,” is primarily a best practice, informal, information exchange without any commitments. Next, the “Collaboration RWA Model” involves joint project-based planning and execution with formal agreements and shared goals. Finally, the “Integration RWA Model” includes digital, functional and physical
connections that are more or less permanent in nature with integrated dependencies and resources. As you move from left to right on this scale, regional cooperation becomes more formal, and the required level of commitment, the need for integrated financial investments and the potential for economic value creation all become greater. Utility CEOs have quoted a number of examples during the exchange that span the full range of this operating model.
EXAMPLES IN ACTION Under the “Information RWA model,” Houston Public Works shared its infrastructure design manual with regional peers. The manual is now being widely used by many unconnected water systems in the greater Houston
R WA O P E R AT I N G M O D E L C O N T I N U U M
■
Project based
■
Best practices sharing
■
Joint planning, execution
■
Formal/informal
■
formal agreements
■
No Commitments
■
Committed goals
■
■
■
■
Infrastructure design manual Value of water & community playbook Watershed protections & management Filtration avoidance strategy & water testing
INTEGRATION
COLLABORATION
INFORMATION ATTRIBUTES
RWAs carry unique leadership traits. They can visualize the regional platform better than anyone else, and understand the constraints imposed by local politics. RWAs master the art of stakeholder communication, create an environment of shared decision making, keep everyone’s interests in mind and take an outcome-oriented approach. RWAs feel a great sense of responsibility and act as stewards of water, public health, and economic vitality. While taking on this visionary role, they must first ensure that their operations are in order and are providing a great service to their rate payers. RWAs will provide a more balanced approach to serving local communities with strategies that are a win-win for the utilities in the region and not a zero-sum game.
local politics, countless utility governance structures, and different water challenges across the country, what is required is a flexible operating model that can be applied to any configuration. This model should allow utilities to self-determine and select how they operate and cooperate within their region and create a win-win approach.
NATIONAL CASE STUDIES
led to the birth of RWA as a transformational regional conductor repairing a broken or inefficient system to better serve ratepayers. RWAs bring a coordinated approach aimed at significantly driving down costs, leveraging regional investments, and carrying the majority of the load for water quality and permits in the region. In essence, RWAs focus on improving the triple bottom line—social, environmental and financial—of the region as a whole.
■
■
■
■
■
■
Digital, functional or physical connections
■
Cost/resource sharing
Information exchange
■
Joint mission/budget
Integrated regional master plan
■
New bio solids tech dev and pilot plant testing
■
Deep tunnel and CSO capacity management
■
Workforce training and development institute
■
WTP/WWTP plant capacity sharing Common smart utility platform for wholesalers Own and operate unconnected system Source water back up supply
Given the complexities of Figure 1 RWA Operating Model 11
The Clean Water Advocate // 2019 Summer
Using the “Collaboration RWA Model,” the Great Lakes Water Authority launched its first Sewer Master Plan effort with broad stakeholder representation. Focusing on a “pipes don’t know boundaries” approach, the goal was to optimize the use of all public investment in the region, regardless of ownership, to meet water quality and service level outcomes before new public investment is made. Regional operating plan approaches are already being piloted ahead of plan completion this fall. LA Sanitation exemplified this model as well, in that it pooled interested agencies to invest $300 million in the development of new biosolids digester technology, and has pledged to use its existing facility to test the technology. Under the “Integration RWA model” the Louisville/Jefferson County Metropolitan Sewer District (MSD), propelled by the changes in Kentucky law, is acquiring and consolidating
utilities that are either in duress or desire to be part of MSD operation. They are closing a deal on one system and are in due diligence with three others. The New York City Department of Environmental Protection (NYC DEP) along with the Delaware River Basin Commission provide another example of the integration model as NYC DEP manages and monitors flow, levels, and storage in the Delaware system to help provide adequate water supply to New Jersey and Philadelphia—going beyond its responsibility to New York City ratepayers. One innovative digital Integration model example is from the Great Lakes Water Authority. The Authority has created a system by which its 127 utility members can opt-in for a low-cost shared GIS-based smart water platform. This
allows its wholesale memberpartners to better manage their distribution system quality, monitor flows and pressure, detect anomalies, and run their hydraulic models in real-time.
I M PA C T, G R O W T H , AND BENEFITS RWA’s can make a tremendous difference in ten “impact areas” (See Figure 2). The degree to which these impact areas are leveraged, and the resulting opportunities, are dependent on local challenges and constraints. For instance, in regions where utilities are focused on creating an asset management plan, they can use a shared common approach and technology to not only avoid duplicative, expensive and custom efforts, but also help better understand how the systems, assets, and capacities within the region can be connected in the future.
R WA O P E R AT I N G M O D E L S
INFORMATION
COLLABORATION
INTEGRATION
Rates & Equity
REGIONAL SYNERGY PLATFORMS
area. The Atlanta Department of Watershed Management’s creation of an illustration to quantify the economic value of water for the city of Atlanta is another example of the model. Sharing the illustration with the Metro North District and its peer utilities allowed for far better understanding of how to quantify the value of water, and the related community benefits across the region.
O&M Synergies Manage Quality & Permits Capacity Sharing Proofing Finances Resource Recovery Water rights & Watershed Workforce & Training Common Smart Utility Infra Governance
Figure 2 RWA Self-Evaluation Tool
Leadership & Community Outreach
can help create an equal footing for water with other sectors that have historically received more funding and attention.
THE WAY FORWARD Another example could be pooled operations and maintenance (O&M) water quality and permit personnel to drive shared expertise and reduce service costs. RWAs can play a major role in addressing one of the biggest problems that the sector is facing—the “silver tsunami”—by creating regional workforce development institutes that can recruit, train, and prepare skilled personnel for operating a “Utility of the Future.” The RWA model has to grow organically. It cannot be mandated and it’s not for everyone. To start this grassroots movement, a flexible self-evaluation tool has been designed that can assist utilities to create their own roadmap that best fits their needs. This flexible tool can help a utility map where it is today, and where it wants to be in the future (Figure 2). Utilities can use this roadmap to communicate to their elected officials, boards, and regional peers as they start on an RWA journey. RWA implementation can drive tremendous value to a region while improving service and innovation. The CEOs have quoted RWA examples that have demonstrated 10% to 25% reduction in O&M expenses. This figure is significant given that more than 55% of overall budgets are O&M related. A 25% reduction in O&M equates to $11 billion of annualized recurring savings for the sector as a whole—more than enough to self-fund annual infrastructure upgrades. Other benefits include the efficient deployment of capital and an improved utilization of capacities available within the region to support future population growth. Since RWAs understand the intricacies of a regional platform better than anyone else, collectively they can be a powerful force as national architects of water policy. They
To lead this transformation, the US requires 15 to 20 RWAs around the country, powered by a sustainable strategy, to keep the RWA operating model front and center until it becomes part of the DNA of the water sector. Four proposed strategies to moving forward are: 1. COMMUNICATION Communicate and share the RWA model to boards, mayors, councils and regulators, utility leadership and media. 2. PLATFORM Utilize existing platforms of AMWA, Water Agencies Leader Alliance, and NACWA to keep RWA topics on the agenda, and to encourage utilities to leverage the self-evaluation tool and to create roadmaps. 3. RWA METRIC Set up an annual, simple survey that generates RWA metrics based on a self-evaluation tool to measure progress for a utility, region or the sector as whole. 4. USCOM ALIGNMENT Establish a champion within US Conference of Mayors (USCOM) that promotes RWA and put in place a prestigious RWA award (based on the above metric) handed to the most progressive RWA. There is a window of opportunity to take the sector in a whole new direction. RWA is an important part of that direction. If it does not capitalize on this opportunity, the water sector will be wrestling with the same issues and challenges 10 years from now. This is a scenario it can ill afford. The time to start is now and the model to deliver is right in front of us. 13
The Clean Water Advocate // 2019 Summer
SOLVING WATER
Seizing the Opportunity of a Lifetime Through Technological Innovation and Partnerships
BY PATRICK DECKER, PRESIDENT AND CEO, XYLEM
Technology & Innovation
O
ver the past 50 years, economic losses related to extreme hydro-meteorological events have increased by nearly 50 times. But while global water challenges are escalating like never before, so too are the possibilities for the world to solve them. Two powerful forces are converging: the power of technology and innovation, and the power of creative partnerships. Combined, the water sector has the opportunity of a lifetime to solve water.
Growing issues like urbanization, overpopulation and severe storm events are placing unprecedented pressures on stormwater and wastewater systems around the globe. Building infrastructure that’s resilient to these conditions is a complex and multidimensional task. But innovation and technology are driving progress. Pump station design is a great example. Careful and thorough hydraulic analysis, powered by the emergence of Computational Fluid Dynamics, is assuring performance under the most
15
The Clean Water Advocate // 2019 Summer
challenging operating conditions. This software virtually simulates what happens inside a pump station, enabling engineers to fine-tune and test their design, multiple times, until the correct configuration is determined. It’s enabling engineers to build much smaller compact systems, with much greater resilience to stormwater.
Growing issues like urbanization, overpopulation and severe storm events are placing unprecedented pressures on stormwater and wastewater systems around the globe. Digital solutions are also transforming combined sewage overflow management, preventing billions of gallons of polluted water from entering local ecosystems, while producing dramatic savings for communities by helping them avoid new construction costs. A decade ago, South Bend, Indiana, was in the middle of a combined sewer overflow crisis, with one to two billion gallons of raw-sewagecontaminated water being dumped into the St. Joseph River every year. The city faced an $860 million Long Term Control Plan that would have translated to a $10,000 burden per citizen. But the city officials decided to think differently. By leveraging a network of smart sensors and the power of artificial intelligence, South Bend implemented an innovative real-time decision support system developed by EmNet—a water technology start-up formed in partnership with the City of South Bend and the University of Notre Dame—and now part of Xylem. This new technology allowed the City to essentially “turn the lights on”
and gain unprecedented visibility into its systems, enabling water managers to identify potential issues at a glance and divert flows to reduce discharges. As a result, overflow volumes have been cut by more than 70 percent, or by 1 billion gallons a year. E. coli concentrations in the river have dropped by more than 50 percent, improving water quality. And the cost to achieve the City’s environmental quality objectives has been reduced by $500 million. South Bend exemplifies the power of innovation and technology, as well as the power of creative partnerships between local government, universities and technology providers. By working together with policymakers to facilitate the use of more innovative technologies, the water sector can enable more of these success stories in the future. Water stakeholders can also leverage the power of partnerships to raise awareness and build public support for our sector’s efforts to create more water-secure and sustainable communities. Think about the water sector’s role in advancing sustainability and achieving the United Nation’s
Technology & Innovation
Sustainable Development Goals. From helping reduce pollution and ensuring safe drinking water, to driving energy efficiencies, to resource recycling and promoting the circular economy, our sector is on the front lines every day protecting our environment, safety and quality of life. The water sector has so much to say and share about good water practices, and how they promote and enable sustainability. So, let’s get more involved in the global conversation. At Xylem, we are working to shine a spotlight on the water sector’s key role in driving change through partnerships with universities like MIT and programs like the Stockholm Junior Water Prize, which gathers young talent from all over the world, encouraging their passion for water and sustainability issues. The competition draws more than 10,000 entries from over 30 countries every year. We have also launched a partnership with Premier League football champions Manchester City Football Club, and its sister team, the New York City Football Club, to raise public awareness around water. Though only one year in, we’re already seeing
the impact of this collaboration in reaching new audiences. These are just a few of many examples of how we can expand awareness and engagement among our next generation of concerned citizens and leaders. Yes, global water challenges are intensifying, and the pressures on water operators to manage them are profound. But at this moment in history, our sector has much to be optimistic about – we have a powerful opportunity before us. By leveraging technology and innovation, and launching creative partnerships within and outside the sector, we can develop bold new approaches and build the support we need to advance them. We have the chance to solve many of the world’s toughest water issues in our lifetime. Let’s work together, be bold and seize it.
17
The Clean Water Advocate // 2019 Summer
RISE OF THE NETWORK ORCHESTRATOR What Clean Water Can Learn from Facebook, Airbnb and Uber
Leadership & Community Outreach
BY ANDY RICHARDSON CHAIRMAN & CEO, GREELEY AND HANSEN, LLC
W
ater utilities today face a number of fiscal challenges that are a direct result of inadequate rate structures, declining revenues, and large fixed costs required to maintain those assets that were provided by the grants program many years ago. These challenges also include the interrelated issues of economic sustainability and viability; climate change and resiliency; affordability; the financial and public health impacts of aging infrastructure; and the related demands of an increasing or decreasing population, depending on where you are in the country. The public’s expectation is that water utilities will, of course, continually provide them with essential 24/7 service. But in light of these growing challenges and issues, water utilities may now need to look beyond a “business as usual” approach for meeting the ongoing and varied needs of their customers and communities. The historical US Water Utility business model has been based on implementing and managing vast networks of physical assets for revenue generation. Essentially, utilities have been “asset builders” that invest, build, develop, and lease physical assets to generate revenue. However, there are other business models today that utilities should consider to better position themselves to meet the mounting challenges in the water industry head on.
REIMAGINING THE MODEL The rate of technology innovation in other industries across the globe is accelerating disruptive change that has led to a dynamic new business model: the “Network Orchestrator.” The customer is at the center of this new model, which focuses on leveraging improved connectivity and harnessing the vast interconnected networks 19
The Clean Water Advocate // 2019 Summer
to generate the desperately needed revenue to meet these ongoing needs. Forward-looking water utility managers can take this opportunity to concurrently change their organization’s vision from just meeting their regulatory requirements for the lowest capital investment to enhancing the quality of life and supporting the economic growth of its ratepayer communities, as well as those downstream
of customers and other relationships. This innovative approach is being successfully applied by business organizations around the world, including Facebook, Airbnb, Uber, and Alibaba. The one key thing that these companies all have in common with water utilities is that they “own” the relationships with the customer. However, these pioneering “Network Orchestrators” have generated vast fortunes from leveraging and monetizing those relationships with the customer. Obviously, there are other potential business models available to utilities that are worthy of considering, including options based on a combination of the following: Service Providers—entities that provide services to customers to generate revenue; Technology Creators—entities that develop and sell intellectual property to
generate revenue; and Network Orchestrators—entities that create and build a network of relationships to interact and collaborate in value creation to sell products or services to generate revenue. The Network Orchestrators model also allows an opportunity to incorporate aspects of the other business models mentioned. In today’s challenging economic times, executives and managers across the water sector are faced with making choices between maintaining and updating aging infrastructure, meeting new and more stringent permit regulations, or honoring pension and personnel obligations from a limited capital resources pool. Progressive water utility executives and managers understand that existing business models that have been successfully used for decades need to be reimagined in order
communities, in a sustainable manner. This will further help them in proactively preparing for a world and an economy where the resources that are used for the treatment of water, and the water itself, will have a far greater value. Water utility executives and managers today have a unique opportunity to transform their organizations into a “Utility of the Future,” by applying a new business model that brings stakeholders from all sectors of the community together to interact and collaborate on how to generate the revenue to fund and maintain projects that will not only protect the environment, but also fuel the economic potential for the community. The collaborative Network Orchestrators model may be the catalyst that brings widespread change to the status quo, and generates success more rapidly, more holistically, and in a much more sustainable manner.
Leadership & Community Outreach
KEYS FOR THE NETWORK ORCHESTRATOR The skill set of water utility managers already includes constructing and managing their assets and staff. However, as Network Orchestrators, water utility managers will now also be required to learn and implement “softer,” less defined skill sets such as relationship building, holistic planning outside of traditional water sector projects, and considering partnership opportunities with nontraditional players. So, what type of leadership is needed to address the challenges that utilities face today, as well as to propel them forward by embracing innovation and change?
...as Network Orchestrators, water utility managers will now also be required to learn and implement “softer,” less defined skill sets such as relationship building, holistic planning outside of traditional water sector projects, and considering partnership opportunities with nontraditional players. Previous generations of water utilities demonstrated their commitment to public health, safe water, sound infrastructure, and professionalism by their actions and deeds. Their stewardship set the bar for us. That “stewardship” is a form of custodial leadership that, at its core, is built upon choosing service over self-interest. Key elements of the Network Orchestrator model include concepts associated with collaboration and
partnership which are also aspects of an outwardly focused “custodial leader.” Therefore, adapting to this model can be easier for water utilities than organizations in many other sectors. Some of the key elements of the Network Orchestrator business model include identifying and evaluating: •
Key collaboration partners to achieve goals
•
Key activities that deliver value to customers and generate revenue
•
Value propositions that may be unmet customer needs, to generate additional revenue
•
Existing and new customer relationships to advance the utility’s “brand” into new market segments, to generate new revenue
•
The most cost-effective channels to interact with customers and partners, and;
•
The most important cost structures to achieve maximum revenue generation from existing and new customers
The elements of the Network Orchestrator business model are used together to understand the investment goals of water utilities and the potential for maximizing their return on investment. An additional strategy associated with the Network Orchestrator model is “asset monetization.” This approach is just one of many strategies utilities can use to drive better financial performance through revenue-growth, and better cost management by unlocking some or all of the economic value embedded in various operational assets. This “unlocked value” might be in the form of cash, longer-term changes to lower cost or to introduce variability to the cost structure, or other conversions of non-income generating assets to current or future bottom-line value. These assets can be tangible or intangible, and can include utility business processes, information technology, licensed treatment technologies, intellectual property, and an experienced workforce.
21
The Clean Water Advocate // 2019 Summer
SOLUTIONS FOR SECTOR CHALLENGES Pooling resources and technical expertise, importing best practices from other successful partners, and achieving economies of scale can lead to better efficiencies, lower costs, greater revenue generation, and higher return on investment. Opportunities that the Network Orchestrator business model can provide: •
Repair and modernization of existing infrastructure
•
Implementation of holistic and sustainable processes and infrastructure towards Utility of the Future initiatives
•
Predictable and consistent rates for customers
•
Predictable and consistent revenue for Water Utilities
•
Incentives for economic and social growth for the community
•
“Brand positioning” of cities and regions with minimal or no “Water Business Risk” for industries looking to relocate back to the United States
The last time the water sector went through a period of transformative change was 1972 through 1974 when the Clean Water Act (CWA) and the Safe Drinking Water Act (SDWA) were enacted. Today, many forward-looking water utility managers have an opportunity to again change how they organize themselves to provide cost-effective services to the community. The potential of the Network Orchestrators model for water utilities is only limited by the level of creativity the water utility managers and their key partners possess.
DIALOGUES THAT LEAD TO CHANGE The Mississippi River Nutrient Dialogues, facilitated by the US Water Alliance, provide an innovative example of collaboration and partnership in the water sector. Between March 2013 and February
2014, a group of committed leaders in agriculture met with drinking water and wastewater utilities for four sessions in cities across the Mississippi River Basin to explore how their sectors might mutually benefit by working together to reduce excess nutrients in waterways within the Basin. Through this dialogue, skepticism about the benefits of collaboration between the agricultural and water communities was transformed into optimism, and a readiness to work together. The meetings also included representatives of conservation and environmental organizations and state and federal government agencies.
Today, many forward-looking water utility managers have an opportunity to again change how they organize themselves to provide cost-effective services to the community.
Leadership & Community Outreach
The Nutrient Dialogues were a productive exchange of views among diverse stakeholders and an opportunity to identify various solution strategies. Through the Dialogues, a “playbook” of sorts was developed for discussions and collaborations elsewhere, and more specifically, highlighted positive actions for moving forward in three critical areas in the near term: (1) watershedbased leadership and decision-making, (2) market mechanisms, and (3) data monitoring and modeling. The concept of a “Watershed Protection Utility,” an ambitious longer-term endeavor that would integrate components from all three of these areas to advance a statewide or regional nutrient strategy, was also introduced. In addition, the Dialogues provided useful tools and ideas about new approaches that can be helpful to those seeking collaborative approaches to managing excess nutrients on the ground. They also helped bring the attention of policymakers to opportunities for enabling and productively driving improvements in water quality by showcasing existing efforts and potential opportunities for collaboration between the agricultural and water sectors.
Through this dialogue, skepticism about the benefits of collaboration between the agricultural and water communities was transformed into optimism, and a readiness to work together.
FOR GENERATIONS TO COME There is no doubt that water and wastewater utilities across the country are facing many common challenges. Effective utility management, along with consideration of new ways to generate revenue, can help utilities respond to both current and future challenges. Re-examining their business model at this time can help water utilities in achieving their common mission of being successful 21st century service providers. By taking the best attributes of each business model—Service Providers, Technology Creators, and Network Orchestrators—a holistic and sustainable approach to utilities management, including revenue generation, can be realized. The Network Orchestrators business model is key to this realization. Capitalizing on this moment to adopt the model can position water utilities to be successful both now and for generations to come.
23
C O M I N G S O O N I N J U LY 2 0 2 0
50 ANNIVERSARY CELEBRATION! N A C W A’ S
th
As the National Association of Clean Water Agencies (NACWA) closes out this year seeing significant advocacy victories for the Clean Water Sector, next year we will see a truly historic milestone: The Association’s 50th Golden Anniversary. The cause for celebration is not one Association, but the success of Water—as a life-sustaining resource, a life-long policy cause worth fighting for, and a life-giving service sector—some 50 years after the historic enactment of the Clean Water Act.
So Celebrate With Us… As we celebrate YOU, the Clean Water Professional, Steward and Stakeholder! For all that you do—every day and with little fanfare—to provide every community with safe and clean water, and to elevate the Public Water Sector’s five decades of unrivaled success.
Let us thank you the way you deserve!
Join Us, as We All Commemorate 50 Years of Incredible Success and Progress, and Set The Stage For 50 More!
Coming 2020 • NACWA’s Special 50th Anniversary Utility Leadership Conference and Annual Meeting • NACWA’s 50th Anniversary Celebration Gala, honoring the work of our member utilities • Year Long Integrated Marketing Campaign: Telling the Clean Water Success Story • And More…
25
The Clean Water Advocate // 2019 Summer
COMING FULL CIRCLE: WHY WE WORK IN WATER BY BARRY LINER CHIEF TECHNICAL OFFICER, THE WATER ENVIRONMENT FEDERATION
W
e are in the midst of a golden age of water innovation.
Resource recovery technologies and intelligent water systems are rapidly advancing. Even water-tech adoption timelines, which have been notoriously slow—albeit for excellent reasons—are starting to shorten. With all the innovation activity in the water sector, another trend that we are seeing is the enhanced visibility of water among the general public and simultaneous recognition by the dedicated professionals of why we work in the water sector. Water professionals in utility management, engineering, marketing, finance, and academia have always known that we make a difference. As utilities transition from “staying out of the spotlight” to becoming more prominent in the communities they serve, and as understanding of the United Nations’
Water Sector Voice
27
The Clean Water Advocate // 2019 Summer
Sustainable Development Goals (SDGs) grows, we are more explicitly appreciative of the “why of what we do.” That appreciation adds extra fuel to the fire of innovation. The early 2010s saw an explosion of advances coming to market in the water sector, ranging from phosphorus recovery from wastewater to anaerobic treatments. When the Water Environment Federation’s Technical Exhibition and Conference (WEFTEC) Innovation Pavilion was conceived in 2012, the Water Environment Federation (WEF) and its partners—Imagine H2O and BlueTech Research— focused on start-up companies building businesses around these advances. From the twelve companies featured in 2012, the WEFTEC Innovation Pavilion now features over forty companies. Many of these companies are alumni, which means they are still in business, demonstrating the staying power of these innovations. In the last few years, we have seen intelligent water solutions move to the forefront as resource recovery becomes integrated into standard practice.
COLLABORATIVE GROUNDWORK There is no doubt that collaboration across the water sector is a vital ingredient in innovation. Take, for example, the Leaders Innovation Forum for Technology (LIFT),
a multipronged initiative undertaken by WEF and the Water Research Foundation (WRF) to help bring new water technology to the field quickly and efficiently. LIFT has advanced innovation across the sector by evaluating technology, benchmarking practices and policies of research and development, and providing a platform for professionals to share information and experiences.
There is no doubt that collaboration across the water sector is a vital ingredient in innovation. LIFT also laid the groundwork for another collaborative effort to drive innovation: The Utility of the Future Today, which is a model for utilities of all sizes to achieve more efficient operations, enhanced productivity, and long-term sustainability. Since the Utility of the Future concept was introduced in 2013, many utilities have successfully implemented new and creative programs to address local technical and community wastewater challenges. The Utility of the Future
Today recognition program was launched in 2016 by WEF, NACWA, WRF, and the WateReuse Association, with input from the US Environmental Protection Agency. Since then, 110 utilities have been honored for community engagement, watershed stewardship, and recovery of resources such as water, energy, and nutrients.
THE RESOURCE RECOVERY CALL WEF’s ReNEW Water Project is a new way to highlight—and accelerate—the transition to resource recovery. The ReNEW Water Project utilizes data from national and state databases, publications, and a utility survey, which represents about 25 percent of municipal wastewater flow and about 20 percent of biosolids produced in the US. This first-ever analysis of resource recovery by US water utilities shows significant progress in using biosolids and generating energy, but large growth opportunities in water reuse and nutrient capture still remain. WEF launched ReNEW to create a bold, aspirational, and public call to action to accelerate resource recovery. The NEW stands for “nutrients, energy, and water.” The first step was establishing the baseline for current resource recovery practices. Later in 2019, WEF will announce goals for water utilities to increase resource recovery
Water Sector Voice
from baseline levels. New data will be collected on a biannual basis and expanded to Canadian water facilities.
THE ONE WATER REALITY Water is the most important part of resource recovery and of the circular economy. Whether water is reused for irrigation, cooling water, groundwater replenishment, or discharge to a stream providing clean water and habitat for the natural environment. In the water sector, we often hear the term “One Water,” an inspirational concept about total water management. One Water is a great concept at the macro level, because we must take an integrated approach to solve our water resources challenges. However, as an overarching term, One Water is limited, because at the end-use level there are many types of water, as exemplified by the term “fit for purpose.” Fit for purpose means matching water of a specific quality to a use appropriate for that quality. For example, a water with quality suitable for irrigation
might not be suitable for industrial use as boiler feedwater. Because water can be treated to varying qualities depending on the need, the staff at water resource recovery facilities should be aware of the end use of the product water they treat. This focus on treating to the appropriate use ensures sufficient treatment for public health, environmental, or product needs, while minimizing the cost of overtreating water to a quality level much different than is actually required by the end use. In addition to water, resource recovery can focus on nutrient recovery through struvite, algaebased treatment, land application of biosolids, or phosphorus recovered from incinerator ash. Energy can be generated through biogas from anaerobic digestion for electricity and vehicle fuels. Meanwhile, new technologies such as hydrothermal liquefaction show promise for additional energy recovery pathways. The water sector can produce clean water fit for purpose, nutrients, and energy in a renewable fashion. We’ve been contributing to the circular economy from the beginning.
THE WHY OF WATER Water sector innovation has been white hot over the past decade, so now, about that “why.” It has been 10 years since Simon Sinek’s seminal TED talk claiming that “People don’t buy what you do, they buy why you do it.” Seeking to solve their water challenges, utilities have been much more proactive in engaging with their communities and explaining the “why” of water. Take, for example, Clean Water Services in Oregon. The explosion of microbreweries around the United States gave the utility an idea for a program to start conversations about the reusable nature of all water. The utility began partnering with Oregon home brewers in 2014 to brew beer from reclaimed water, demonstrating that water should be judged by its quality, not its history. The utility produced a batch of high-purity water that far exceeded safe drinking water standards and provided it to local home brewers.
29
The Clean Water Advocate // 2019 Summer
Over the past five years, the beers brewed from high-purity reclaimed water, using the Pure Water Brew brand, have inspired similar efforts across the country in Arizona, California, Colorado, Idaho, Florida, and Kentucky. The beers have been featured at public events, WEFTEC, and the Craft Brewers Conference. Such efforts serve to engage industry professionals, public leaders, and imbibers everywhere in this conversation about clean water, not only to promote its role in health but also to support big and small businesses. While the beertasting events are fun and engaging, the most important aspect of these efforts is the focus on creating an authentic conversation with the larger community about the “why” of water quality.
GOING GLOBAL When water professionals learn more about Sustainable Development Goals (SDGs), they realize that the work utilities do locally contributes globally. The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet,
now and into the future. At its heart are the “17 Sustainable Development Goals,” or SDGs, which are an urgent call for action by all countries—developed and developing—in a global partnership. These goals recognize that ending poverty and other deprivations must go hand in hand with strategies that improve health and education, reduce inequality, and spur economic growth—all while tackling climate change and working to preserve our oceans and forests. The SDGs explicitly identify water. Clean Water and Sanitation (SDG 6) “features targets for water reuse, affordability, resiliency, integrated water resources management, reduction in untreated wastewater, and enhanced research and development for water technologies.” In addition to SDG 6, the work of water professionals directly impacts half the SDGs, including Affordable and Clean Energy (SDG 7); Industry, Innovation and Infrastructure (SDG 9); Sustainable Cities and Communities (SDG 11); Circular Economy (SDG 12); Climate Action (SDG 13); and Life below Water (SDG 14). The SDGs explicitly recognize the value—both locally and globally—of the work that water, wastewater, and stormwater professionals do, and will continue to do. This is the “why” that enables water, wastewater, and stormwater utilities and organizations to increase legitimacy in their relations with customers and stakeholders. It provides a sense of pride to operators, engineers, regulators, academics, businesspeople, and all other water sector-related professionals. It uses a global perspective on water resources to facilitate local watershed-based solutions.
N A C WA’ S L E G A L ADVOCACY PROGRAM
Keeping Heads Above (Clean) Water The Clean Water Act (CWA) legal waterscape is constantly evolving. Areas of potential liability continue to expand, and the challenges facing the sector continue to grow in complexity. NACWA is here to help you navigate these troubled and murky waters (warning: excessive use of water-related idioms and expressions dead ahead). NACWA’s Legal Advocacy Program (NLAP) is the only program of its kind in the country focused specifically on advocating on behalf of the public clean water sector. It is a key component of the Association’s mission to safeguard the interests of its Member Agencies. The NLAP engages in litigation to establish judicial precedent that benefit utilities nationwide. In addition, its legal programming and resources provide key analyses and strategies to fortify the sector’s ability to stem the tide of Clean Water challenges. For more information on NACWA’s Legal Advocacy Program, contact Amanda Waters at awaters@nacwa.org.
nacwa.org/advocacy
BENEFITS Litigation NACWA tracks litigation and legal developments that may impact the sector, regularly participating in litigation to ensure appropriate, cost-effective, consistent regulations, and protecting utilities from unreasonable enforcement actions and third-party litigation. The NACWA Legal Advocacy Program: •
Analyzes the flood of water sector litigation—and potential for proactive litigation
•
Determines when/how to participate to protect membership
•
Has most of the country’s top CWA attorneys on deck via its legal affiliate program—which works to ensure its legal positions hold water and can chart a course for success.
Resources & Tools NACWA provides high-value legal tools, including the Consent Decree Handbook, Consent Decree E-Library, and the Stormwater MS4 Permit Guide. With these resources, you can convince your friends that you walk on clean water and blow your opponents out of it.
Communications & Programming We keep member utilities above water on critical legal issues through the National Clean Water Law and Enforcement Seminar, webinars, updates and real-time alerts. If you are new to the water world and considering attending the Seminar for the first time, NLAP offers Clean Water Primers for issues that will be discussed at the event, and this year, some primers will be available prior to the event.
Collaboration & Networking NACWA is peerless in offering member engagement and networking opportunities at our Legal Affairs Committee Meetings, held during NACWA’s Winter and Summer Conferences; at the annual Law and Enforcement Seminar; and via the Engage Online Network.
The Clean Water Advocate // 2019 Summer
THE CLEAN WATER CALLING
How Innovation and Collaboration Changed the Water Sector’s History, and Ensures Its Future BY PETER GREVATT, PhD CEO, THE WATER RESEARCH FOUNDATION
T
he US water sector has delivered remarkable public health and environmental benefits to communities of all sizes through the implementation of dramatic innovations in drinking water and wastewater treatment, stormwater management, and water reuse. Dating back to the introduction of chlorination of drinking water supplies early in the 20th century, the sector has contributed to some of the greatest improvements in public health and environmental outcomes in modern history. As an eight-year-old growing up on the east side of Cleveland, the national ignominy of the Cuyahoga River Fire in June of 1969—where the river was so grievously polluted it caught fire—played out in my own community. The Cuyahoga River and large sections of Lake Erie were lifeless, choked
by pollution released from outfalls and non-point sources on a largely abandoned shoreline. While the Cuyahoga River was perhaps among the most notorious examples of the decay of our waterways, it was far from unique. Across the country, similar scenes were commonplace—some even including Cuyahoga-like flames. A young resident could be forgiven for concluding that this was what urban rivers would always look like in America. Contrast this with the images of water bodies in these same locations today—families playing on the shoreline, millennials running and cycling on shoreline bike paths, bright new developments bringing economic revitalization back to our cities. While this dramatic turn-around required the collaboration of many, this miracle could not have occurred without the extraordinary leadership,
Water Sector Voice
as disinfection and filtration. These advances have occurred even as our nation has experienced continued population growth.
THE MOMENT As we arrive at the 50th anniversary of the Cuyahoga River fire and approach the 50th anniversaries of the CWA and SDWA, we are again facing a threshold moment for the water sector. While we have achieved extraordinary improvements in public health and environmental protection, significant threats line the road ahead. Rising costs, aging infrastructure, emerging constituents of concern, and excess nutrients are presenting increasing challenges for the sector and the communities we serve. In addition, we are grappling with a rapidly changing climate and dramatic changes in water resource availability. An analysis of 14 years of data from the NASA GRACE satellite shows that water availability patterns are shifting rapidly and that water security—access to water at a sufficient quantity and quality to support daily life—is more threatened than previously thought.
vision, commitment, and innovation within the water sector. The passage of the Clean Water Act (CWA) in 1972 and the Safe Drinking Water Act (SDWA) in 1974 established powerful standards and goals, and provided extensive financial resources for the protection and restoration of our nation’s waters, as well as the protection of our drinking water supplies. Recent research from the University of California, Berkeley and Iowa State University—the largest analysis of water pollution data since the passage of the CWA—showed a 12% increase in fishable waterbodies and measurable improvements in 25 water quality indicators. Similarly, microbial risks associated with drinking water have been reduced by more than three orders of magnitude, primarily due to water treatment advances such
This moment demands a renewed commitment to innovation and collaboration within our sector. We will need to reach out to a more expansive stakeholder base and embrace a more holistic water resource management approach in order to establish resilient water systems and continue to support thriving communities. We are in an unprecedented time of technological advances and customer awareness and demands. The sector will certainly realize the greatest success by demonstrating a commitment to research and decisions informed by the most credible science, in conjunction with a willingness to embrace innovative approaches to water resource management. Advances in energy-efficient wastewater treatment have proven the benefits of this science-based, collaborative approach. Energy-neutral wastewater
33
The Clean Water Advocate // 2019 Summer
treatment is already occurring, and research has demonstrated the potential to generate energy through wastewater treatment. However, moving beyond energy neutrality to energy-positive wastewater treatment will require a more deliberate approach to resource management at the utility and community levels, necessitating advances in innovative technologies such as hydrothermal liquefaction and co-digestion practices, and partnerships across multiple sectors, including electricity, oil, agriculture, and the food and beverage industry. The Water and Electric Utility Integrated Planning, a project of the Water Research Foundation (WRF), has illustrated how water and electric utilities leverage their interdependence to collaborate on strategic and project-level integrated planning efforts to decrease treatment costs and their carbon footprints while increasing resilience.
The sector will certainly realize the greatest success by demonstrating a commitment to research and decisions informed by the most credible science, in conjunction with a willingness to embrace innovative approaches to water resource management. THE SHIFT WRF is also applying an integrated water resources management approach to understanding opportunities for improved nutrient management in watersheds, for which WRF has a body of nutrient research that spans more than 30 years and 200 projects. This approach means not only expanding relationships to stakeholders beyond
the water sector (e.g., to agricultural interests), but also evaluating different methods for controlling nutrients at the watershed level, such as incorporating resource recovery, water reuse, and stormwater best management practices. Integrated approaches like these are contributing to a cultural shift within the sector. Utilities are working to meaningfully engage diverse community partners, examining legacy governance structures, and leveraging big data to improve decision-making. WRF has a rich portfolio of research focusing on many of these subjects, which include establishing strong relationships, the water workforce, and innovation. Subsequently, WRF and the Water Environment Federation have partnered to establish the Leaders Innovation Forum for Technology (LIFT). This collaborative program accelerates the use of innovative solutions to address emerging challenges facing the water sector. For example, the LIFT platform enabled an innovative collaboration between the Metropolitan Water Reclamation District of Greater Chicago and Denver’s Metro Wastewater Reclamation District to pilot a side-
Water Sector Voice
stream de-ammonification process resulting in cost savings, efficiencies, and knowledge transfer. WRF is leading the way in addressing the science for all water. It is essential that the sector similarly manage all water in an integrated fashion. It is a time of great excitement and great opportunity. Although future challenges are significant, WRF will continue to lead by providing the robust science and innovative approaches that enable the sector to remain at the forefront of public health and environmental protection. There is no greater mission or calling.
REFERENCES (1) Keiser, D. A., and J. S. Shapiro. 2019. “Consequences of the Clean Water Act and the Demand for Water Quality.” The Quarterly Journal of Economics, Volume 134, Issue 1, February 2019, Pages 349–396. https://doi.org/10.1093/q je/q jy019. (2) Seidel, C., A. Ghosh, G. Tang, S. A. Hubbs, R, Raucher, and D. Crawford-Brown. 2014. Identifying Meaningful Opportunities for Drinking Water Health Risk Reduction in the United States. Project 4310. Denver, Colo.: Water Research Foundation. Retrieved from http://www.waterrf.org/Pages/Projects.aspx?PID=4310. (3) Famiglietti, J. 2019. “A Map of the Future of Water.” Accessed May 2, 2019. https:// trend.pewtrusts.org/en/archive/spring-2019/a-map-of-the-future-of-water. (4) Tarallo, S., and P. Kohl. 2015. A Guide to Net-Zero Energy Solutions for Water Resource Recovery Facilities. Project ENER1C12. Alexandria, Va.: Water Environment Research Foundation. Retrieved from: https://www.werf.org/a/ka/Search/ResearchProfile. aspx?ReportId=ENER1C12. (5) Conrad, S. A., S. J. Kenway, and M. Jawad. 2017. Water and Electric Utility Integrated Planning. Project 4469. Denver, Colo.: Water Research Foundation. Retrieved from http://www.waterrf.org/Pages/Projects.aspx?PID=4469.
35
The Clean Water Advocate // 2019 Summer
CAPTURING NATIONAL REUSE Collaboration Key to Leveraging Water Reuse’s Opportunity Window BY PATRICIA SINICROPI EXECUTIVE DIRECTOR, WATEREUSE ASSOCIATION
A
s clean water professionals and stakeholders, we must recognize and mark the pivotal times in our sector. The US Environmental Protection Agency (EPA) announced on February 27, 2019 that it would facilitate the development of a National Water Reuse Action Plan. The Agency’s Assistant Administrator for Water Dave Ross made the announcement during a water reuse summit in San Francisco, and framed the plan as a collaborative effort between the water sector and federal agencies, with the goal of fostering water reuse as a
Water Sector Voice
vital component of integrated water resources management. Utilities and businesses that have developed and implemented water recycling programs received this news with great excitement because they are well aware of how collaboration has led to incredible innovation in water reuse. They also know the potential that water recycling has in reshaping how we manage water in our communities.
COLLABORATION THAT LEADS TO ACTION The WateReuse Association represents utilities, businesses, and end users that are on the leading edge of innovation in water recycling. Our members are eager to collaborate. On April 18 of this year, EPA released a discussion framework for development of a draft water reuse action plan for public comment; and to rally the water sector behind this process, WateReuse collaborated with other national water organizations including the Association of Metropolitan Water Agencies, the American Water Works Association, the National Association of Clean Water Agencies, the Water Environment Federation, and the Water Research Foundation. The WateReuse Association hosted two workshops—in Los Angeles, CA on April 18, 2019 and in Alexandria, VA on May 9, 2019— to gather feedback for input to the EPA. We also surveyed our
members to cast the widest possible net. We are pleased that EPA will release a draft Water Reuse Action Plan at the 34th Annual WateReuse Symposium,
active organizations in nine states that work closely with state legislators and regulators to advocate for policies that create environments where
September 8-11, 2019 in San Diego, CA.
water reuse can flourish. There is an important federal role as well. The development of a National Water Reuse Action Plan will establish a national imperative for safe, reliable and locally controlled water supplies. We also need Congress and the Trump Administration to align laws, regulations and funding to help states and local governments find local solutions.
The Water Reuse Action Plan will identify barriers and opportunities to advance water reuse and recycling. This information will help the water sector prioritize and better coordinate existing research and development, financing, and implementation of water reuse across the United States as part of integrated water resources management. EPA has previously supported water reuse efforts, including development of the 2017 Potable Reuse Compendium and Guidelines for Water Reuse, but the Water Reuse Action Plan is the first initiative of this magnitude that is coordinated across the water sector.
ROLES AND OPPORTUNITIES There is an ongoing debate as to the appropriate role of the federal government in water recycling. WateReuse has
The versatility of recycled water as a resource creates great opportunity. Water reuse is the process of intentionally capturing wastewater, stormwater, saltwater or graywater and cleaning it as needed for a designated beneficial freshwater purpose. Recycled water is a proven solution to a multitude of water management challenges, including water supply resiliency, population growth, environmental enhancement and habitat creation, extreme wet weather events and combined sewer overflow, and saltwater intrusion, among other issues. 37
The Clean Water Advocate // 2019 Summer
The Trump Administration and Congressional Democrats have said they are keen to move forward with a large infrastructure investment, and we cannot afford to let this moment pass. We have seen tremendous growth in water recycling in our traditional recycling centers of the arid west and south. This has largely been attributed to water supply challenges and the need for drought-resilient, sustainable supplies such as recycled water. However, there is new and exciting growth in more water-rich areas in the Pacific Northwest, and in cities such as Chicago, Atlanta, New York and others that are now looking toward water recycling to help manage stormwater and receiving water quality challenges. In addition, other areas on the eastern seaboard such as Hampton Roads, VA are incorporating water reuse strategies to support their region’s resiliency and sustainability goals.
BREAKING THROUGH BARRIERS Although the interest in water reuse is skyrocketing, these projects can face economic, technical, and social barriers. Creative collaborations on technology and financing can remove some barriers and lead to innovations that protect a community’s water future and serve as models for others. Utilities, industry, large water users, and technology providers have found it in their mutual interest to collaborate to make specific water reuse projects a reality. The national growth in water reuse makes the federal role even more important. Investment in water reuse builds communities that are modern, sustainable and stable—ready for families to flourish and businesses to grow. Just as the water sector has come together to support the development of a Water Reuse Action Plan, it has also come together to urge increased federal investment in programs that help finance these projects, including the State Revolving Funds, the Water Infrastructure Finance and Innovation Act, and the Title XVI water reuse program. The Trump Administration and Congressional Democrats have said they are keen to move forward with a large infrastructure investment, and we cannot afford to let this moment pass. The water recycling community must now urge Congress to support the Administration’s push for increasing investment in our nation’s infrastructure, including water infrastructure. EPA’s leadership in elevating water reuse nationally as an important component of an integrated management approach for our nation’s resources has the potential to make a significant impact on how communities manage their water. The water sector will continue to work together to advance policies and secure funding to sustain and improve America’s water infrastructure. EPA’s National Water Reuse Action plan is just one example, but an excellent example, of how the water sector finds success in collaboration.
LEGAL ADVOCACY
NACWA Legal Advocates Contest NPDES Expansion in Supreme Court As part of NACWA’s ongoing efforts to ensure appropriate and predictable regulations, NACWA has been a leading advocate opposing the expansion of the Clean Water Act (CWA) National Pollutant Discharge Elimination System (NPDES) permit program. In May 2019, NACWA—along with Association members the City and County of San Francisco, New York City, and the Denver Metro Wastewater Reclamation District—filed an amicus brief with the US Supreme Court in support of NACWA member Maui County, Hawaii, to resolve the question of whether the CWA requires an NPDES permit when pollutants originate from a point source but are conveyed to navigable waters by a nonpoint source—i.e., groundwater. In addition, NACWA and the WateReuse Association submitted comments in June 2019 on the US Environmental Protection Agency’s Interpretive
Statement, which concluded that “the best, if not the only, reading of the CWA is that Congress intentionally chose to exclude all releases of pollutants to groundwater from the NPDES program, even where pollutants are conveyed to jurisdictional surface waters via groundwater.” Both the amicus brief and the comments focus on the need for regulatory certainty to allow utilities to plan prudently for the expenditure and investment of public funds, while operating responsibly under the law. The key issue is not whether releases of pollutants into groundwater with a connection to surface waters should be addressed; the issue is how they should be addressed. Using the ill-suited NPDES “end-of-pipe” permitting program to regulate discharges—which are better addressed by other federal and state environmental statutes— will create regulatory uncertainty, hinder environmentally beneficial projects, and increase
the risk of baseless citizen suit enforcement against public clean water utilities. A negative decision would result in an expansion of discharges subject to the CWA NPDES program, which would have a profound impact on public clean water utilities, making this one of the most important CWA cases before the Court in decades. NACWA has been on the forefront of this issue since early 2016 and has provided the national clean water sector perspective to all three branches of the federal government, having filed briefs with the Supreme Court and three federal circuits, submitted comments to EPA, and testified before the Senate Environment & Public Works Committee. NACWA has worked with many national and state public sector organizations who have looked to the Association for leadership on this issue.
Are you keeping your head above (clean) water? For more information on NACWA’s Legal Advocacy Program, contact Amanda Waters at awaters@nacwa.org
nacwa.org/advocacy 39
The Clean Water Advocate // 2019 Summer
CHARTING THE NEW COURSE How NEW Water’s Vision Shifted From Compliance to Innovation on Its Journey to Become a “Utility of the Future” BY TOM SIGMUND EXECUTIVE DIRECTOR, NEW WATER, THE BRAND OF THE GREEN BAY METROPOLITAN SEWERAGE DISTRICT
History has an ironic tendency to repeat itself.
I
n order to become a “Utility of the Future,” the 97 technical experts at NEW Water realized it was time to take pause to become students of history: our own. Established in 1931, the Green Bay Metropolitan Sewerage District was borne from controversy, like so many water resource utilities across the US. Poor sanitation became a public menace, and began to rear its ugly head through diseases like cholera. When the conversation turned to developing a systematic process to manage sanitation, not surprisingly, debate raged over the cost. And when the sewerage district turned out to not be a panacea for all waste issues facing the developing community, debate raged again.
In Focus
Fast-forward to the 21st century. Evaluating our storied history as a utility we realized that what worked in the past, and more importantly, what did not work, would help us navigate the path forward from compliance to innovation. Learning from our history, as well as shifting behaviors and cultural values, would be needed to prepare us for the future. NEW Water serves 233,000 people over a service area of 285 square miles as a wholesale provider of wastewater conveyance and treatment services to 15 municipalities. Combined, our two water resource recovery facilities treat an average of 38 million gallons per day. To build the new behaviors needed to help conduct business, we established goals to guide our progress: •
Treat the material we receive as a resource to be recovered and reused
•
Work with stakeholders in the watershed to significantly reduce nutrient and sediment runoff into area waters
•
Define and implement an organizational culture to unite the entire workforce
•
Reach out to the community to build and strengthen regional partnerships
•
Clearly communicate information to stakeholders to spur them to take action supporting environmental improvement
LAUNCHING, WITH STRONG FOUNDATIONS NEW Water has a proud history of protecting public health through efficient and effective conveyance and treatment of wastewater. Work within our facilities was excellent and the skills and pride of the workforce was evident. From this strong foundation, we launched our journey. An early step on this path was redefining how our staff and external stakeholders viewed our organization. We jumpstarted this process through new branding. The Green Bay Metropolitan
41
The Clean Water Advocate // 2019 Summer
Sewerage District became known as “NEW Water,” indicating its regional role in Northeast Wisconsin (NEW), and that we produced clean water from waste products. We realized that our stakeholders want to talk about water rather than wastewater or sewage. A second step was demonstrating our commitment to the future by articulating our vision: “Protecting our most valuable resource, water.” That vision illustrates the hard work that goes into achieving 16 years of 100% permit compliance at the Green Bay facility and seven years at the De Pere facility.
As an environmental organization, we strive to be part of the solution to the water problems in our community. As NEW Water looked to the future, employees worked to define and implement a set of unified cultural attributes for the organization. That led to four principles to which we now all adhere: •
Safety is our most important value
•
We respect and value diverse individuals and values
•
One team that communicates openly and honestly while encouraging and supporting one another in achieving common goals
•
Leaders in the environment always looking beyond compliance
As an environmental organization, we strive to be part of the solution to the water problems in our community. The Bay of Green Bay suffers from what is colloquially known as a “dead zone,” resulting from excess nutrient loadings. To reduce phosphorus in area waters, the State of Wisconsin
offers point source dischargers an alternative method of permit compliance—an approach working with agricultural producers called Adaptive Management. In 2014, anticipating upcoming restrictive permit limits for phosphorus (0.2 mg/L), NEW Water began a five-year pilot project in Silver Creek, a 4,800 acre sub-watershed. Through this process, NEW Water gained experience implementing Best Management Practices (BMPs), developing broad and strong relationships with stakeholders, and working through the complexities of these new rules with regulators. Collectively, these activities and others provided NEW Water with the solid foundation necessary to launch the next stage in our evolution as a clean water utility.
INNOVATING, WITH COLLABORATION Recovering and reusing valuable resources was a focus of NEW Water’s replacement of aging solids-handling facilities. The project was branded Resource Recovery and Electrical Energy (R2E2), and incorporated facilities to generate electricity from digester gas, recover heat energy, and recover phosphorus in the form of struvite to be reused as a slow-release agricultural fertilizer. This project was NEW Water’s first significant effort in resource recovery, and allowed the team to shape the message for staff and external stakeholders of the benefits of moving from a consumer of resources to a producer. Within its first year of operation, R2E2 has met its goal of generating 50% of NEW Water’s energy demand on-site. NEW Water has learned enough valuable lessons in agricultural BMP implementation and broad stakeholder involvement from its pilot project to have the confidence to move full-scale into an Adaptive Management Program. The large-scale watershed program (31,000 acres) will span a period of 20 years as an alternative compliance strategy to
In Focus
building costly grey infrastructure at its resource recovery facilities. The program is expected to have a greater positive impact on the environment and save NEW Water’s customers over $50 million compared to traditional compliance alternatives. When conducting the initial planning phase of the $170 million R2E2 Project, NEW Water realized that it had not maintained strong enough relationships with its customers to move forward with such a large project. When the impacts to the sewer rates were widely understood by the public, it became apparent that we had not made the case to the customers as to why this large project was critical to meeting their service needs. We took a pause in the project and worked with our customers and stakeholders to develop and implement a communication and education strategy designed to develop and maintain those relationships, as well as communicate the need for the project. NEW Water has continued proactive communication with customers using a transparent budgeting process, quarterly customer meetings, newsletters, and formation of stakeholder advisory groups that gather input on any NEW Water initiatives that impact customers. In January 2019, NEW Water embarked on an update to its Strategic Plan. The process used for this update was unique in that it involved a much broader group of internal and external stakeholders
than in past efforts. This greater engagement and participation is intended to increase the public’s understanding of the plan, and its effectiveness, for smoother implementation.
FORWARD, WITH ATTITUDE The motto of the State of Wisconsin is “Forward.” This word represents our attitude towards environmental stewardship and protection of public health. It also embraces the innovation we need to best meet our customers’ needs. NEW Water staff continue to look for more opportunities to reduce resource consumption, recover more resources from the material we receive, strengthen internal and external communication, develop team members, and foster a spirit of innovation. Examples of possible future initiatives are: •
Find a way to cost-effectively recover the 201 pounds of gold, valued at $3.8 million, that enters the two facilities each year
•
Reduce energy consumption further, and increase on-site energy generation to achieve a goal of net-zero energy production
•
Expand on an initial 2 million gallons per day reclaimed water project for an industry to provide water to a larger group of users
•
Engage and educate a larger group of stakeholders to support NEW Water’s efforts in protecting the environment
Like so many utilities in our shared and proud sector, working “out of sight and out of mind” is no longer an option. Our communities demand, and deserve, more. Treading the path to become a Utility of the Future is an arduous journey requiring great fortitude, perseverance, and introspection. Given the great responsibility we have to the families and communities we serve, it is one well worth the effort as we continue protecting our most valuable resource, water.
43
C LEAN WATER CHAM PIONS
THANK YOU TO NACWA’S 2019 ALL-CONFERENCE SPONSORS
C LEAN WATER STEWARDS
FOR THEIR MANY CONTRIBUTIONS TO THE CLEAN WATER COMMUNITY
C LEAN WATER PROTECTORS
INTERESTED IN BECOMING AN ALL-CONFERENCE SPONSOR? Contact Kindra Hemphill at khemphill@nacwa.org
CLE A N WATER AL L IE S
FOCUS
on the future of clean water.
save the date
WINTER CONFERENCE
ATLANTA GEORGIA F E B RU ARY 4 - 7, 2 02 0
LOOKING FOR A NEW HIRE?
Clean Water Careers links great jobs with great candidates. NACWA’s Clean Water Careers job board is a growing and invaluable resource for NACWA Member Agencies, Affiliates, and job seekers alike. Join the growing numbers of utilities, companies, and government agencies that are connecting exceptional jobs with exceptional candidates through Clean Water Careers today!
JOBS.NACWA.ORG/JOBS 4747
NACWA STANDS FOR
L EADE RSHI P The greatest asset that a clean water utility can have is its leadership. Clean water leaders understand that their responsibility as clean water stewards could not be more profound— that the stakes could not be higher—and with passion and diligence, they not only meet the demands of this calling, but instill it daily throughout their whole organization. This call to lead, however, carries an inherent commitment to constantly improve: In valued knowledge, best practices, technical skills, engagement with peers, and so much more. Leaders, including all clean water professionals, must constantly grow if they are to stay ahead of the curve for the sake of their communities. As fellow clean water stewards, NACWA embraces the responsibility. Do you? For nearly five decades, the National Association of Clean Water Agencies (NACWA) has been the nation’s recognized leader in clean water issue advocacy, and a premium resource for clean water executives, professionals and stakeholders. It’s time to join the nationwide network of leaders and agencies, and take a proactive role in the forces that directly impact your organization.
We help clean water leaders be proactive and ahead of the curve. It’s time to collaborate with your peers.
Give us a look. Membership means Leadership.
For information about membership, contact Kelly Brocato at kbrocato@nacwa.org or visit nacwa.org/membership
