Kira Z. Alonzo Metropolitan Water District of Southern California California Irrigation Institute February 3, 2015

Size: px

Start display at page:

Download "Kira Z. Alonzo Metropolitan Water District of Southern California California Irrigation Institute February 3, 2015"

Camilla Grant
5 years ago
Views:

1 Kira Z. Alonzo Metropolitan Water District of Southern California California Irrigation Institute February 3, 2015

2 Established in 1982 LRP provides incentives for new local projects Recycled water and groundwater recovery projects to reduce demand on imported water deliveries Need to accelerate project production Meet IRP and 20x2020 goals Current drought conditions

3 1980 Orange and Los Angeles Counties Reuse Study Recycled water potential Regional benefits/imported demand reduction 1982 Program for recycled water 1991 Program for recovered groundwater

4 Upfront Capital Funding Sliding Scale ($250/AF) Sliding Scale ($250/AF) Fixed Incentive ($154/AF) Competitive Process

5 2007 LRP target 174,000 AFY 23 projects approved 111,000 AFY Remaining target 63,000 AFY

Date (AF) Incentives to Date ($M) Recycling 75 307,000 2,026,000 360

6 Metropolitan Water District of Southern California Local Resources Program Program Number of Projects Contract Yield (AFY) Deliveries to Date (AF) Incentives to Date ($M) Recycling ,000 2,026, Groundwater Recovery , , Total ,000 2,745,

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

7 Acre -Feet 500, ,000 Recycled Water and GW Recovery LRP is successful in increasing recycled water and groundwater recovery production 300, , ,000 0 Recycled Water Groundwater Recovery

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Acre - Feet 2,500,000 Groundwater, Surface Water, LAA, Recycled Water for Direct Use 2,000,000 1,500,000

8 Acre - Feet 2,500,000 Groundwater, Surface Water, LAA, Recycled Water for Direct Use 2,000,000 1,500,000 1,000,000 Consumptive use of local supplies is relatively flat over time 500,000 LRP production helped offset decline in local supplies Need to do more to help meet economic and demographic growth 0 (Excludes GW Replenishment)

9 LRP production is not at capacity Cost remains a predominant constraint Data shows most local projects cost more than MWD rate Financial assistance needed, especially in early years

10 Acre Feet 400, ,000 Contract Yield 123 TAF (34%) 200, TAF 239 TAF 100,000 Project Production 0 Fiscal year End

11 2007 Public Sector Program 85 sites 3,300 AFY 2013 Foundational Actions Funding Program $3 million for 13 projects Technical studies and pilot projects 2014 On-site Retrofit Pilot Program $7.5 million over three years 45 applications to date ($1.6 million for 1,700 AFY)

12 Funding for technical studies and pilot projects that reduce barriers to future water resource production $3 million 13 Projects 4 Recycled water 2 Seawater Desalination 2 Stormwater 5 Groundwater

13 $ Millions $7.5 Million 3-year Program 45 projects Parks Schools HOA Golf Courses Medians Approximately 1,700 AF Estimated incentives of $1.6 Million Remaining Golf Courses Estimated Incentives HOA Schools Parks

14 Meet 20x2020 (recycled water) Bring new projects online faster Motivate increased production from existing projects (faster ramp-up, expansions) Meet IRP resource needs Enhance storage opportunities Improve groundwater management and sustainability Alleviate current and potential future drought conditions

15 Increased Incentive Amount Include Seawater Alternate Desalination Incentive Payment Structure Options Include Onsite Retrofit Costs Reimbursable Services

16 Increasingly high costs to develop local projects Higher incentive needed to encourage accelerated project development Sliding scale incentive up to $340/AF over 25 years Calculated similar to current program Not for existing agreements

17 Three alternatives to choose from 1. Sliding scale incentive over 25 years (current payment structure) 2. Sliding scale incentive over 15 years (new structure) 3. Fixed incentive over 25 years (previously approved structure) Existing program criteria and performance provisions apply

18 $/AF Project Unit Cost Up to $340/AF MWD Water Rate Incremental Project Unit Cost

19 Incentive Rate ($/AF) $475/AF $340/AF Incentive payment up to $475/AF over 15 years Equivalent Maximum obligation to 25 year payment period Additional provisions to ensure production beyond 15 years 15-yr 25-yr

20 Incentive Rate ($/AF) Sliding Scale Fixed Conversion to Fixed Incentive Rate Based on estimated sliding scale payment converted to fixed incentive rate Fixed (adjusted) Incentive amount up to $305/AF (adjusted for risk) Adjusted fixed incentive rate varies per project based on project unit cost

21 Include seawater desalination as eligible resource in LRP Include recycled water on-site retrofit costs as eligible costs in LRP Reimbursable Services Expedite development of ready-to-proceed local projects Helps alleviate current drought conditions Metropolitan will offer a variety of technical and financial services Member agencies will reimburse Metropolitan

22 LRP application is posted on Until 63,000 AFY is committed ORP application posted on Until June 30, 2016 or when $7.5 is committed, whichever sooner Update to the Board Foundational Actions Funding Program On-site Retrofit Pilot Program Foundational Action Funding Program study results

23 Local Resources Program Ray Mokhtari On-site Retrofit Pilot Program Kira Alonzo

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA DIRECT TESTIMONY OF NORMAN C. GROOT

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of California-American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply Project and Authorization