The Coating Solution Forum presents:

The Importance of Corrosion Prevention —

REINFORCING OUR NATION’S INFRASTRUCTURE.

Presented by:

02

TOPLINE FACTS & FIGURES

How Stark is the Reality?

Estimated water main breaks per year: 240,000… roughly 27 per hour!1

1.5 million miles… that’s how far all the water pipes in America would run if lined up, end to end!

03

Estimated loss to leaks/breaks daily: 6 billion gallons or 18% of total national use.2

Of the almost 15,000 wastewater-treatment facilities in the US, typical service life of plant assets = 15 – 50 years.3

How Great is the Cost? 04

Estimated cost to repair & replace the water/wastewater infrastructure*

Up to $1 trillion4

*Over the first 20 years of the 21st century, excluding the cost for homeland security.

$1+ million6 Cost for one new water tower (total # in the US over 1 million)

Over $1 trillion7Cost to maintain our ever-expanding water systems (over the next 25 years)

$271 billion5 Estimated 5-year cost to maintain & improve our water infrastructure

How Attainable is a Qualified Solution?

Educating the public and industry

stakeholders…

Qualified contractors and

certified workers.

The solution is within reach

through…

05

06

THE CORROSION PROBLEM

What is Corrosion?07

The physical properties of metal are constantly in flux. This “disintegration of metal” occurs through an electrochemical process that starts on the metal’s surface, as part of its natural behavior.

As such, corrosion of steel rebar used to reinforce concrete, causes cracking as the byproduct of corrosion.

8

Causes of Corrosion

Water / moisture (humidity)

Acids

Bases

Salts

Oils

Within these water, potable, gray water and containment systems, the metallic form will continually corrode due to a variety of factors:

9

Assessment Selection and Engineering

While non-metallics and other composite materials may mitigate corrosion problems, costs can be prohibitive and many are untested for structural applications. If metals are selected they must be protected.

10

Corrosion Prevention

Some of the common coatings used are: Ultra-High Solids (Plural Component) Coatings, Poly Urea, High Performance Acrylics, High Performance Alkyds, Alkyd Esters and Acrylics, Epoxy Esters, Pre-Catalyzed Epoxies, Moisture Cured Urethanes, VOC Compliant Coatings, Powder Coatings, Metalizing, Vinyls, Radiation Cured Coatings, Sacrificial Coatings, and Vulcanized Rubbers.

Technological advancements in the formulation of coatings, the expertise necessary to choose the appropriate coating solution for each infrastructure asset, the proper inspection by certified coatings inspectors and the proper surface preparation and application by certified coatings applicators, has increased the professionalism of the industry and elongated the expected performance life-cycles.

11

ECONOMIC REALITIES

12

It is an age-old problem… too great the number of initiatives, too few the funding resources.However, if we only focus on the short-term economics, we may lose sight of the ”long-view” savings.

The Cost of Public Safety

13

Every additional dollar invested in drinking water and wastewater sector results in an increase in revenue for all industries of $2.62.8

A Deeper Look at the Numbers

14

Funding Snapshot

Between 1956 and 2010, government

spending on water and wastewater utilities

grew nearly every year, yet since 2010 has been in a steady

decline.

Total federal, state and local government spending on water and wastewater utilities grew steadily over time

But declined 8% between 2010 and 2014

Reported in billions of 2014 dollars$120

$100

$80

$60

$40

$20

$01956 1966 1976 1986 1996 2006 2014

$118

$109

Source: Congressional Budget Office

15

State and local government spending on water and wastewater utilities continued to grow while federal spending declined since the 1980sState and local governments spent 24 times as much as the federal government in 2014

Reported in billions of 2014 dollars$120

$100

$80

$60

$40

$20

$01956 1966 1976 1986 1996 2006 2014

$114

$105State and local governments

$17$4.4Federal government

Funding Snapshot

The paradigm shift to public spending is now largely paid for by state and local governments,

greatly surpassing federal contributions.

Source: Congressional Budget Office

16

QUALIFICATIONS

17

Stringent Industry Standardenacted in 2004.Standard shows proficiency in: Environmental Safety and Health; Process Control; Materials; Surface Preparation; and Coating Application.Certification Test: Is administered by a 3rd Party and tests knowledge, skill and overall proficiency.

What is the “NACE 13/SSPC ACS-1 Standard?”

18

Inspector and Specification Writer Programs

The Protective Coatings Specialist Program (PCS) – introduction to coatings and linings used to control corrosion… defines and examines common coatings, addressing when, how and why they should be used.

NACE Coating Inspector Program (CIP) – for over 30 years, the “gold standard” for inspections in the protective coatings industry.

The SSPC Protective Coatings Inspector Program (PCI) – training in proper methods of inspection for surface preparation and installation of industrial and marine protective coatings and lining systems.

19

Independent Cost-Benefit Analysis

Location

Contractor Certification

Contract AwardFinal Contract CostMaterial$/Sq FootNFESC Support TotalTime

Qualified Personnel

San Diego, CA

YES

$ 320 K$ 320 K$ 30 K$ 17.50$ 40 K$ 390 K

2 months

Non-qualified Personnel

Pensacola, FL

None

$ 320 K$ 600 K$ 30 K$ 31.50$ 240 K$ 870 K

5 months

US Navy’s Naval Facilities department (NAVFAC) did a cost-benefit analysis regarding the use of certified or non-certified contractors on coatings projects.

The results showed that utilizing certified contractors and trained personnel has proven an overwhelming “cost-benefit” success.

20

The NACE 13/SSPC ACS-1 Standard was firmly in place to execute the massive Capitol Dome Restoration Project.

Case Study

21

American workforce, well versed in the up-to-date techniques and equipment to truly make a difference in fighting corrosion.

The Coating Application Specialist

22

TAKEAWAYS

23

Preservation Through Mitigation

We can expand expected lifetimes of these structures up to9

100 Years!

24

Responsible Economics

30%

Through proper mitigation, costs can be reduced by as much as10

25

Harnessing the expertise of those trained to handle these types of projects brings about the culmination of The Coating Solution.

Certified Personnel

26

Proper Assessment & Selection

+ Qualified Applicators & Contractors

+ Certified Inspectors

The Coating Solution = Quality Job

The Coating Solution Forum presents:

The Importance of Corrosion Prevention —

Presented by:

REINFORCING OUR NATION’S INFRASTRUCTURE.

28

THANK YOU

29

APPENDIX

30

1 American Society of Civil Engineers (ASCE)

2 The Center for Neighborhood Technology (CNT)

3 Miller Water Infrastructure Report

4 United States Environmental Protection Agency

5 United States Environmental Protection Agency

6 WaterWorld; TBD

7 American Water Works Association

8 American Water Works Association

9 WaterWorld

10 NACE® International

Appendix