‘SECURITY THROUGH DIVERSITY’ What happens after Carlsbad? ‘SECURITY THROUGH DIVERSITY’ A STRATEGY FOR WATER SUPPLY IN WESTERN AUSTRALIA TO ACHIEVE CLIMATE RESILIENCE Urban Water Institute’s Spring Water Conference February 10-12, 2016 Hilton Palm Springs Hotel Palm Springs Thursday, February 11, 2016 Gary Crisp

*Average annual rainfall Major Australian desalination plants 45-in *Average annual rainfall Brisbane Gold Coast Perth 45-in Sydney 19-in Adelaide 20-in Melbourne 21-in

Means no more severe water restrictions Perth 1 Perth 2 Gold Coast Sydney Adelaide Melbourne Means no more severe water restrictions The Big Six Australian Desalination Plants $12b - all delivered in less than 8 years producing 420 MGD (1600 MLD)

Perth, Australia: population 2 million

Water Corporation Overview The Water Corporation’s Operating Licence positions them as the principal supplier of water, wastewater, drainage and bulk irrigation services in Western Australia to hundreds of thousands of homes, businesses and farms. WA 1,021,478 mi2 CA 163,696 mi2 6.2 x Key Points Established in 1996 as a Statutory Corporation. Owned by the WA Government and accountable to our sole shareholder, the Minister for Water. Deliver services within conditions required by the Department of Water, Health, Environment Regulation, and Parks and Wildlife and EPA. Price is reviewed and proposed by the ERA, of which Government then sets. Confidential, Page 5

Record Low Rainfall Average Rainfall Deciles Average Rainfall Deciles 2006 calendar year Decile Ranges Average Rainfall Deciles 3 years from January 2012 to December 2014 Decile Ranges Source: Bureau of Metrology.

Declining Streamflows and Below Average Rainfall Pre – 1975 Average 324,286 acre-ft Annual streamflows into Perth Dams Historical, 1912 to 2014 Gigalitres per year Rainfall (Perth Airport) Average mm 1 GL = 810 acre-ft 750,000 acre-ft 2015 12,214 acre-ft 2011 64,050 acre-ft Source Bureau of Metrology Confidential, Page 7

Water Use in Western Australia In 2013/14, the Corporation used approximately 8% of WA’s licensed water supply for public water supply. Of this water, two thirds was used within the Perth metropolitan area. Residential customers used 70% of the water supplied to Perth. Licenced water supply in WA % Water Corporation water supply % Water Corporation Perth use % 2013/14 Actual WC use * Perth Metro Residential Non Revenue Non Corporation or unused licence allocation for the Corporation Other Regions Non Residential * The 8% understates the Corporation’s share of water use as other industries may also use less than their entitlements Note: Non Water Corporation water use may include mining, farming, domestic and commercial bore extractions etc but excludes external desalination; Regional water use is driven by mining activity and community services. Source: Water Corporation Annual Report 2013/14; internal reports; Department of Water Annual Report 2013/14 Confidential, Page 8

Courtesy of Water Corporation Smarter use of Water Catchment Management Surface Water Open soak well in Suburb Soak wells about to be installed in Perth CBD SECURITY THROUGH DIVERSITY Details for Australian Trademark No. 1111814 Number Australian Trademark No. 1111814 Mark SECURITY THROUGH DIVERSITY Owner Water Corporation Address LEEDERVILLE WA 6009, AUSTRALIA (AU). Service Lord & Company Filing date 4 May 2006 More information about Australian Trademark No. 1111814. This trademark for SECURITY THROUGH DIVERSITY was filed by Water Corporation. On 18 May 2006 this trademark was filed, and on  31 August 2006 this trademark was accepted and on 8 February 2007 this trademark was registered. Groundwater Water Recycling / IPR ASR Seawater Desalination Water Trading Courtesy of Water Corporation

Suburban (Council) Soakwells within half a mile from my home in Fremantle

Soakwells for Households and Building Developments 16 % not reused

Corporation has Saved Over 100GL (81,000 acre-ft) a Year Since 2001 Confidential, Page 12

Integrated Water Supply Scheme - 2011 IWSS Sources % as at 2011 310 miles 20% 310 miles 30% 90 miles 10% 40% Confidential, Page 13

Integrated Water Supply Scheme - 2015 IWSS Sources % as at 2015 51% Dams 7% GWR 1% 41% Confidential, Page 14

Integrated Water Supply Scheme - 2022 IWSS Sources As at 2022 % Expanded deep aquifer network and groundwater recharge Dams retained for operations and banking Inflows used as available 49% (Perth 1, 2A &2B) Expanded Seawater Desalination capacity GWR 11% Beenyup AWRP (ASR) 40% (51%) Note: The IWSS supplies water to Perth, Wheatbelt, Goldfields and Agricultural Regions and some South West towns. Source: Water Corporation’s “Water Forever – Whatever the Weather” 2011; internal presentations. Indian Ocean to supply up to 122,000 acre-ft/year (150 million m3/year), almost half of Perth’s water needs - a situation that was only a dream just 15 years ago. Confidential, Page 15

Perth Water Supply Security Courtesy Water Corporation 920 GL = 750,000 acre -ft Perth 3 1958 92% Dams 8% G/water 1980 65% Dams 35% G/water 2004 38% Dams 62% G/water 2014 7% Dams 51% Desal 42% G/water 1% GWR 2022 ? 0% Dams 49% Desal 40% G/water 11% GWR 2022 Likely 0% Dams 65% Desal 24% G/water 11% GWR

Decision Time Perth 1 – Perth Seawater Desalination Plant - Reduced Inflow to Dams (as at 1 Nov 06) 273,906 Acre-Ft 143,435 Acre-Ft 75,122 Acre-Ft 51,864 Acre-Ft Perth 1 Decision Point 972 Acre-Ft 1GL = 810 Acre-Ft 2010 - 11.9 GL = 8640 Acre-Ft Courtesy of the Water Corporation

Integrated Water Supply Scheme - 2015 IWSS Sources % as at 2015 51% Dams 7% GWR 1% 41% Confidential, Page 18

Perth 1 - Perth Seawater Desalination Plant (PSDP) Courtesy of Water Corporation Located in Kwinana 38 MGD Capacity: 40,000 AF/Y Total Capital Cost: $317 million Purpose: Base load core supply Commenced operation in Nov. ‘06 Wind Power is used as offset Status: Operating beyond “name plate” capacity

- Reduced Inflow to Dams (as at 1 Nov 06) Decision Time Perth 2A – Southern Seawater Desalination Plant – Phase 1 - Reduced Inflow to Dams (as at 1 Nov 06) 273,906 Acre-Ft 143,435 Acre-Ft 75,122 Acre-Ft 51,864 Acre-Ft Perth 2A Decision Points 972 Acre-Ft 1GL = 810 Acre-Ft 2010 - 11.9 GL = 8640 Acre-Ft Courtesy of the Water Corporation

Perth 2A - Southern Seawater Desalination Plant (SSDP) Located in Binningup 40 MGD Capacity: 42,000 AF/Y Total Capital Cost: $1.27 billion Purpose: Base load core supply Commenced operation in Sept. ‘11 Wind / Solar/ Wave Power as energy offset Status: Phase 1: operating Courtesy of Water Corporation

- Reduced Inflow to Dams (as at 1 Nov 06) Decision Time Perth 2B – Southern Seawater Desalination Plant – Phase 2 - Reduced Inflow to Dams (as at 1 Nov 06) 273,906 Acre-Ft 143,435 Acre-Ft 75,122 Acre-Ft 51,864 Acre-Ft Perth 2B Decision Points 972 Acre-Ft 1GL = 810 Acre-Ft 2010 - 11.9 GL = 8640 Acre-Ft Courtesy of the Water Corporation

Perth 2B - Southern Seawater Desalination Plant (SSDP) Located in Binningup 80 MGD Capacity: 80,000 AF/Y Total Capital Cost: $1.27 billion Purpose: Base load core supply Commenced operation in June ‘13 Wind / Solar/ Wave Power as energy offset Status: Phase 1 & 2: operating Courtesy of Water Corporation

San Diego Rainfall vs Perth Rainfall and San Diego Temperature vs Perth Temperature

What is Southern California doing? ‘SECURITY THROUGH DIVERSITY’ – A STRATEGY FOR WATER SUPPLY IN WESTERN AUSTRALIA TO ACHIEVE CLIMATE RESILIENCE What is Southern California doing? Well much the same Conventional sources Water use efficiency/ water restrictions/ education Seawater Desalination – the ground breaking Carlsbad plant More to come potentially – Huntington Beach, West Basin, Camp Pendleton, Doheny Seawater Desalination Of great importance – IPR (and possibly DPR)

Thank You Water Forever Whatever the weather Drought-proofing Perth Perth water supply is secure because of a portfolio approach including conservation and stormwater reuse A Big Thank You to my Co-Authors: Neil Palmer – NCEDA Suzanne Brown – Water Corporation Terry Murphy – Water Corporation Thank You