edwards aquifer recovery implementation program – impact to san antonio october 3, 2011 green...
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Edwards Aquifer Recovery Implementation Program –
Impact to San Antonio
October 3, 2011
Green Industry Alliance
October 3, 2011
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EARIP Impact to San AntonioEARIP Impact to San Antonio
EARIP Background
• EARIP– “Balances the recovery of listed species
with water use and development through a multi-stakeholder process”
• Ongoing process since 2007
– Parameters and timelines solidified in Senate Bill (SB) 3 (2007)
– Stakeholders specifically identified in legislation (26 Member Steering Committee)
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EARIP Impact to San AntonioEARIP Impact to San Antonio
EARIP Background• Consensus-based approach that uses
available science to develop a program document that:– Protects identified endangered species
• Contributes to long-term species recovery
– Balances regional interests• Human water use, environmental sustainability
– Provides Incidental Take protection for interested stakeholders
• Protection for covered activities through a permit issued by the U.S. Fish and Wildlife Service (FWS) with an approved plan
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EARIP Impact to San AntonioEARIP Impact to San Antonio
• Habitat Management Phase I Components
– Improve habitat surrounding both spring complexes
– Environmental restoration and protection areas with research component – protection in the wild
– Refugia - protection in captivity– Bio-Monitoring– Low impact development
considerations around critical habitat (water quality)
– Implement specific species protection measures (i.e. Recreation Management)
• Flow ManagementPhase I Components – VISPO Dry Year Option– Regional conservation– SAWS ASR commitment– Stage V additional 4% water use
curtailments
If necessary, Phase II Components– Expanded use of the ASR through
SAWS Water Resources Integration Pipeline
– Additional pumping reductions to be determined
Phase I – Bottom Up ActivitiesActivities Approved by the EARIP Steering Committeeto Accomplish its Goals
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Phase I – Bottom Up Activities
• SAWS ASR recovery commitment– 126,000 acre-feet of recovered water is delivered to
SAWS customers to replace pumping on the Edwards Aquifer during a future drought similar to the 1950s
• Drought of Record (DOR) Determination– Ten-year rolling Edwards Aquifer recharge average
• As identified in the annual EAA Hydrogeologic Data Report
– Regional Advisory Group
• Coordination of 50,000 acre-feet of regional leases
SAWS ASR
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Phase I – Bottom Up Activities
• Last layer of the activities to provide spring flow protection
• Triggered when J-17 is at 625’ msl or below
– July 1990 (most recent occurrence)
• Permits will be reduced to a total cutback of 44%
• Stage V reduces firm yield of the aquifer to 320,000 acre-feet
Stage V Restrictions
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EARIP Impact to San AntonioEARIP Impact to San Antonio
SAWS ASR Commitment
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Introduction and Overview
• The capabilities of the ASR are greater than originally anticipated and continue to develop
• All water in the ASR continues to serve SAWS ratepayers
• The EARIP plan and SAWS intended use of the ASR in drought stages are generally consistent
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EARIP Impact to San AntonioEARIP Impact to San Antonio
EARIP Leased Water and ASR
• EARIP will lease 50,000 acre-feet of water annually
• The leased water will be available for SAWS to store in the ASR
– 16,000 acre-feet will be available annually
– 34,000 acre-feet will be available based on DOR triggers
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Using ASR through Drought
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Protecting Comal Spring Flows
0
20
40
60
80
100
120
140
160
Jan-52 Jan-53 Jan-54 Jan-55 Jan-56 Jan-57
Baseline
Model Simulation shows 39 months of zero spring flow at
Comal Springs
cfs
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EARIP Impact to San AntonioEARIP Impact to San Antonio
0
20
40
60
80
100
120
140
160
Jan-52 Jan-53 Jan-54 Jan-55 Jan-56 Jan-57
Baseline Other Strategies ASR Phase I
Phase I Program and Reduced SAWS Pumpingcf
s
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EARIP Impact to San AntonioEARIP Impact to San Antonio
ASR Phase II
• Models are predictive tools only and are built with conservative assumptions
• If additional protections are needed, SAWS is committed for Phase II
• To meet Phase II commitments using the ASR, SAWS will need to construct the integration pipeline
• As a fall back position, Phase II could impose additional cutbacks
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EARIP Impact to San AntonioEARIP Impact to San Antonio
SAWS Challenges with ASR in EARIP
• SAWS must manage the ASR for long-term storage and produce from the ASR once DOR is identified
• SAWS will need to evaluate produced water quality under extended drought and maximum production operation
• SAWS Edwards annual water rights will be reduced proportionally to the annual volume of ASR water produced in a DOR
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Benefits with ASR in EARIP
• Potentially less expensive than other EARIP projects considered
• SAWS makes all operational decisions on use of the ASR prior to DOR
• All ASR water is used by SAWS ratepayers
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Implications to SAWS Water Resources
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EARIP Impact to San AntonioEARIP Impact to San Antonio
WMP – Current StatusDOR Occurring Late in Scenario
Alt. Scenario(136 GPCD)
Normal (116 GPCD)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Ac
re-F
ee
t
Non-Edwards Supply RFCSP Edwards Supply ASR Normal Demand Alternate Scenario
Drought of Record Starting in 2019Maintain Edwards, Regional Carrizo, Brackish
Desalination (3 Phases), RFCSP
7/1/117/26/11
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EARIP Impact to San AntonioEARIP Impact to San Antonio
EARIP Commitment
• EARIP Assumptions– SAWS ASR
• Becomes a base loaded supply in future DOR based on modeled recovery regime
• ASR recovery will replace Edwards pumping totaling 126,000 acre-feet over a ten-year period
– 46,300 acre-feet in worst year of DOR
• Portion of regional leases to be used for ASR storage
– SAWS initially contributing 8,000 acre-feet per year• Water will be restored back to SAWS as the other water
conservation efforts across the region begin to achieve results
• Estimated commitment to be ten years
Assumptions
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EARIP Impact to San AntonioEARIP Impact to San Antonio
EARIP Commitment
• Edwards Aquifer Proposed Cutbacks
• Additional reductions in Phase II if necessary
Assumptions
Stage Trigger Reduction
I 660’ msl 20%
II 650’ msl 30%
III 640’ msl 35%
IV 630’ msl 40%
V 625’ msl 44%
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Implications of EARIP Bottom UpDOR Occurring Late in Scenario
Normal (116 GPCD)
Alt. Scenario(136 GPCD)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Ac
re-F
ee
t
Non-Edwards Supply RFCSP Edwards Supply SAWS ASR Normal Demand Alternate Scenario
Drought of Record Starting in 2019Maintain Edwards, Regional Carrizo, Brackish
Desalination (3 Phases), RFCSP
7/26/11
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Funding Options and Costs
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Funding
• July 19th letter from EAA– “…the maximum projected total aquifer management
fee rate would be $116 per acre-foot beginning in 2012”
– Represents an increase of $77 per acre-foot for municipal and industrial users
• Implement and sustain programs in the HCP – $64 per acre-foot
• Maintain the long-term sustainability of the aquifer management rebate program – $12 per acre-foot
• Enhanced water quality regulations – $1 per acre-foot
Likely increase in the EAA Aquifer Management Fee
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Funding
• Ordinance #87042 – passed by City Council in 1997– Instructs SAWS to pass the EAA Aquifer Management fee
through to customers based on volume of water used
• The Aquifer Management fee appears as a line item on each SAWS bill
• Current rate – approximately 1.4 cents per 100 gallons– Average 2011 residential customer: $1.10 per month
– Average 2011 commercial customer: $7.03 per month
EAA Fee Pass-Through to Monthly Water Bill
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EARIP Impact to San AntonioEARIP Impact to San Antonio
EAA Fee Calculation 2011 Fee with EARIP Projection
2011 2011 (EARIP)Estimated Edwards Allotment (Acre-feet) 255,474 255,474
Cost per Acre Foot $39 $116
EAA Fee $9,963,479 $29,634,963
Under (Over) Recovery -prior year $9,200 $9,200EAA Rebate ($2,297,662) $0
Amount to be Recovered $7,675,017 $29,644,163
Projected Annual Water Usage (Billion Gallons) 54.561 54.561
Charge per 100 Gallons $0.01407 $0.05433
Average Customer Monthly Charge $1.10 $4.23
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EARIP Impact to San AntonioEARIP Impact to San Antonio
The Edwards Aquifer Would Remain the Most Economical Source of Water
$285 $328 $362 $405
$900$1,042
$1,094
$1,549
$3,168
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Edwards Acquisitions
(2011)
Edwards Leases (2011)
Edwards Acquisitions
(EARIP)
Edwards Leases (EARIP)
Trinity Project
Canyon Lake
Regional Carrizo
(Gonzales)
Brackish Desal
(Bexar)
Ocean Desal
Aquifer Management Fee Increases Annualized Supply Cost (2011)
Co
st p
er
ac
re-f
oo
tAnnualized Project Costs with System Integration (rev. July 2011)
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Funding
• Federal Contribution– FWS
• Possibility of $2 million per year
• Downstream Contribution– Goal of $1 million of funding
• GBRA - $400,000
• Others - $250,000 (CPS Energy - $100,000)
• Outstanding - $350,000
Other Potential Sources of Funding
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Costs to SAWS
• Given the legislative cap on agricultural Aquifer Management fees and the likely limited contributions from federal sources and downstream stakeholders, most of the funding for the EARIP will come from Municipal and Industrial EAA permit holders
• SAWS pays approximately 65% of the total Aquifer Management fees collected by EAA
– Other Municipalities and Industries pay 34%
– Agricultural irrigators pay 1%
Largest EAA Municipal Permit Holder
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Next Steps
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Next Steps – Moving Forward
• Bottom Up activities are meaningful programs with merit
• Four years of regional cooperation and understanding
– Unprecedented four-year effort with all stakeholders involved in negotiations
• HCP approval is promising
– FWS very engaged in process
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Without SB 3Cap of 400,000 acre-feet Cap of 572,000 acre-feet
CPM per EAA CPM codified
Owned water 159,000 acre-feet Owned water 227,000 acre-feet
Constrained water market Vigorous market
ASR limited ASR at 95,000 acre-feet
High litigation risks Low litigation risks
Gaps filled with non-Edwards Gaps filled with Edwards and non-Edwards
172,000 acre-feet loss = $950 million
With SB 3
Next Steps – Moving Forward
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EARIP Impact to San AntonioEARIP Impact to San Antonio
Next Steps – Moving Forward
• Impacts to SAWS Water Resources is manageable
• SAWS should be applicant to the HCP• Funding commitment is high, but benefits are
long-term and provide much needed protection to Edwards water rights as well as resolution to ongoing issues
• Staff will continue to work on key issues and develop recommendation for Board consideration
Edwards Aquifer Recovery Implementation Program –
Impact to San Antonio
October 3, 2011
Green Industry Alliance