This document summarizes a presentation about opportunities for water reuse and the challenges of developing recycled water projects. It notes that there are over 90 recycled water project locations in development across 14 states, representing 890,000 acre-feet per year of additional water and $6.4 billion in projected costs. However, the projects require around $2.8 billion in additional financial assistance from state and federal sources to be completed. The presentation argues that a 50% cost share partnership would allow projects to be financially viable and completed more quickly, helping to address water shortages in many areas of the western United States.

1. Partnering to Success – Leveraging
Opportunities and Addressing
Challenges Together
Gary Darling
General Manager, Delta Diablo
US Water Alliance One Water Leadership Summit
Kansas City, Missouri
September 2014

2. • 200,000 residential and industrial customers
• 2013 “Platinum 10” NACWA Award
• 2012 CWEA Mid-Size Plant of the Year Award
• One of CA’s largest industrial RW facilities
Delta Diablo
San Francisco
San Francisco

3. California Drought
Folsom Lake
Source: www.jpl.nasa.gov

5. San Francisco
Snow cover in the Sierra Nevada mountain range in California in
January 2013 (left) and January 2014 (right), compared in this
combination of NASA satellite photos. (Reuters/NASA))

7. Potential for Water Reuse
Source: Wade Miller, WateReuse
• About 7% of
municipal
wastewater effluent
in the U.S. is
reclaimed and
beneficially reused
• Israel reuses more
than 70%
• Singapore reuses
30%, up from 15%
in recent years
• Australia, now at 8%,
has a national goal of
30% by 2015
~7.3%
Reclaimed

8. Western Recycled Water Coalition
• 22 members
• Representing 3.8 million residents
• $38M federal funding secured
• 25 projects
• 120,000 AFY (acre-feet annually) – reliable, dry year yield

9. Western Recycled Water Coalition

11. Congressional Staff Request
• Members of Congress want to help the development of
recycled water projects…however, any help needs to be more
than 1 project or 1 region or 1 state
• Determine where and how many “real” recycled water
projects are in development across the U.S.
• Collaboration among five associations for nationwide survey

12. October 2013 Responses to Recycled
Water Survey Received from 33 States
Alaska Hawaii

13. Recycled Water Development Actively
Occurring in 14 States
Arizona
California
Colorado
Florida
Illinois
Missouri
Nevada
New Mexico
North Carolina
Pennsylvania
South Carolina
Texas
Virginia
Alaska Hawaii Washington

14. 92 Project Locations
(Qualifier: likely, many projects missed)
See CA Map
(Next Slide)
Arizona
California
Colorado
Florida
Illinois
Missouri
Nevada
New Mexico
North Carolina
Pennsylvania
South Carolina
Texas
Virginia
Alaska Hawaii Washington

15. 65 Projects in California

16. 890,000 AFY Being Developed
(Qualifier: some projects did not report AFY, some a range)
564,315
1,000
3,500
NR
206,021
7,100
5,500
NR
8,900
5,696
7,137
66,390
11,200
1,120
Arizona
California
Colorado
Florida
Illinois
Missouri
Nevada
New Mexico
North Carolina
Pennsylvania
South Carolina
Texas
Virginia
Alaska Hawaii Washington

17. $6.4 Billion Total Project Costs
(Qualifier: some projects reported a cost range)
Note: do not divide $6.4b by 890K AFY
$ 5.7B
$2M
$2M
$1M
$173M
$30M
$700K
$450K
$40M
$12M
$72.9M
$240M
$12M
$12.8M
Arizona
California
Colorado
Florida
Illinois
Missouri
Nevada
New Mexico
North Carolina
Pennsylvania
South Carolina
Texas
Virginia
Alaska Hawaii Washington

18. Project Funding
• REAL PROJECTS: Over $600 million spent to date on
planned projects over the next 10 years
• How Much Funding Assistance is Needed to
complete the $6.4b of projects??
o Approximately $450 million Federal & State funding secured
to date
• $380 M SRF Loans
• $34 M Title XVI Grants
• $4 M Other WaterSMART Grants
• $3 M Other Federal Grants
• $28 M Other State Grants

19. How Much Project Funding Needed???
• Respondents say that $2.8 Billion = Financial Support
Needed
• 34% are “unlikely or definitely not” going to move
forward without financial assistance
o 29 of those in California
o Represents over 200 TAF of yield

20. What Percent Outside Funding is Needed??
• Agencies need ~50% State and/or Federal partnership
in order to build recycled water projects.
o With no outside assistance new water systems can take over
40 years to pay down the cost of the new infrastructure so
that the total operational costs will equal the cost of
operating an existing system (breakeven period)
o 50% partnership allows for payback period of 20 years or less
o It’s very challenging for local governing bodies to invest in
infrastructure with payback periods >20 years

21. Example of Funding Importance: Antioch Urban
Landscape Project
6 miles of pipeline and 1.1 MG storage reservoir (total project cost ~$12 M)
Funding Scenarios Payback
1. No Federal/State partnerships, City pays all 43 years
2. Federal Title XVI (25% project costs) and State grants (25% project costs) 22 years
3. Title XVI (25%), State grants (25%) and 50% ARRA Loan (0.077% interest) <1 year
 $638/AF = No-project water supply cost (combination Delta water rights & blended raw
& treated from local water district)
 $306/AF = Post-project recycled water cost

22. Why Does a 50% Cost Share Makes Sense??
• Capitalizing on local agencies willingness to invest
local dollars on at least a 1:1 basis for an
investment that has state and federal benefits well
beyond 20 years
• 1:1 partnership to move the wastewater industry
towards tertiary treatment
• Reusing water supplies that have already been
diverted through a fish screen

23. Why a 50% Cost Share Makes Sense (cont’d)
• Creating more reliable water supplies and regional
self-reliance
• Recycled water projects are often less controversial
than other supplemental supply development
projects, resulting in quicker implementation
• Supporting jobs and economic development

24. Existing Federal Funding Programs
• Title XVI Challenges (from CVPIA)
o Current ban on ear marks
o House Subcommittee on Water & Power NOT considering
new authorizations…NO ACTION IN 4 YEARS
o USBR resistance to new projects
• Limited Use: WaterSmart Grants
o Current interpretation = Title XVI construction cannot be
funded without authorization, which is currently not
possible
o To date, appropriations have been very small dollars

25. Potential New Federal Funding
Approaches
• New: WIFIA (however, challenged with $20M
threshold, 49% limit in loans, and interest rate)
o From survey, roughly a 50% split in projects at or over $20M
o Modify: RIFIA (WateReuse: modification of existing Bureau
of Reclamation loan program)
• Modify: CWSRF (NACWA: potential 30% set aside for
technical innovation and resource recovery)
• Introduced: Water in the 21st Century (new grant &
loan programs)

26. State Funding
• Previous: Propositions 13 and 50
• Existing: Proposition 84
• New: Water Bond (Prop. 1 on Ballot)
• Modified: CWSRF Loans (1% for 30 years)

27. Next Steps
• Educate – Many projects in development (65 projects in CA
valued at $5.7B will provide over .5MAF), but need help to
cross the finish line
• Speak as one voice – Continue to work together and invite
others to join (ACWA, CASA, WateReuse, WRWC)
• Secure new funds – Identify and meet with electeds who
would be most interested in supporting bond language or
separate legislation to increase RW funding
• Solidify the “ask” – Come to an agreement amongst project
developers (i.e. 50% of capital costs)
• Use language public understands : “purified” -v- “potable”
• Could a Drought Emergency Declaration be an opportunity??

28. Change !!

29. Contact Me:
Gary Darling
garyd@deltadiablo.org
(925) 756-1900
www.deltadiablo.org