1 Sustainable Water Infrastructure State/EPA Innovations Symposium January 24, 2006

2 Sustainable Water Infrastructure The Challenges Before All of Us - Our wastewater and drinking water systems are aging - Many Americans do not understand the true value of water and the importance of infrastructure - Current treatment may not be sufficient to address emerging issues and potentially stronger requirements - Most utilities are managing mainly for compliance, not sustainability—current regulatory structure often forces this - Investment in R&D has declined - Potential funding gap: $270 billion for wastewater and $263 billion for drinking water

3 Sustainable Water Infrastructure Vision: - Seek innovative approaches and new technologies to help ensure that the Nation’s water infrastructure is sustainable - Accomplish this through collaboration with external stakeholders in the following 4 areas: - Better Management - Water Efficiency - Full Cost Pricing - Watershed-Based Approaches

4 Sustainable Water Infrastructure EPA’s Role - Advocating Sustainable Water Infrastructure in Our Day-To-Day Programs and Activities - Collaborating with Utility Leaders, Associations, and States - Supporting the Agency’s Strategic Plan - Cross-cutting themes: innovation, partnerships, new technology, and research

5 Sustainable Water Infrastructure Better Management Pillar Goal: Change the paradigm: Managing for COMPLIANCE Managing for SUSTAINABILITY Focus Areas: Utility management systemsUtility management systems Capacity development and assistance for small systemsCapacity development and assistance for small systems Cost-effective technology selectionCost-effective technology selection

6 Sustainable Water Infrastructure Water Efficiency Pillar Goal Utilities and consumers value water as a limited resource. Consumers use water wisely, limiting use to the practical minimum required for successful performance. Utilities promote efficiency in water use by their customers and strive to eliminate loss and inefficiency in their operations. Focus Areas Market enhancement for water-efficient products and services Market enhancement for water-efficient products and services National organization to foster water efficiency National organization to foster water efficiency Industrial water efficiency Industrial water efficiency Water efficiency in buildings and landscapes Water efficiency in buildings and landscapes

7 Sustainable Water Infrastructure Full Cost Pricing Pillar Goal Utilities recognize their full cost of providing service over the long-term and implement pricing structures which recover costs and promote economically efficient and environmentally sound water use decisions by customers Focus Areas Techniques for recognizing the long-term, full cost of providing service Techniques for recognizing the long-term, full cost of providing service Options for cost allocation and rate design Options for cost allocation and rate design Implementation of full cost pricing Implementation of full cost pricing

8 Sustainable Water Infrastructure Watershed Approach Pillar Goal Utilities and other stakeholders take advantage of opportunities offered by watershed approaches to optimize infrastructure management and investments to achieve water quality and human health protection goals.

9 Watershed Approach Pillar Making the Right Decision ma  Integrate watershed priorities into infrastructure decision making Consider various approaches to help ensure the best decisions are made—don’t just rebuild what was there before!Consider various approaches to help ensure the best decisions are made—don’t just rebuild what was there before!

10 Upcoming Highlights  MOU with industry associations to promote sustainable utility management practices (EMS, Asset Mgmt, water efficiency, etc.)  WaterSense market enhancement program to promote water efficiency  Develop further guidance on full cost pricing  Publicize innovative approaches linking watershed approaches with infrastructure decisions

11 Sustainable Water Infrastructure QUESTIONS TO CONSIDER Are there barriers to sustainable utility operations and infrastructure that EPA and States should address? How can we better educate the public?