Effective Utility Management:Its All About Sustainability

NJ AEA Conference January 16, 2013

Jim Horne, U.S. EPA

EPA’s Sustainability Policy: The 3 Dimensions of Water Sector Sustainability

The “Current State” Water/wastewater utilities

are facing unprecedented challenges– aging infrastructure and

workforce– continuing regulatory

challenges– unclear prospects for future

federal funding– increasing customer and

community demands for service

– short-term perspective of elected officials

– And of course, Climate!

Economic downturn has exacerbated these challenges

Greater focus on day-to-day; less on innovation and sustainability

EUM

A Water Sector Industry EffortEffective Utility Management

(EUM)

Endorsed by the EPA and six water sector industry collaborating organizations

EUM – Historical Perspective The Beginning 2007-2008

Why and How Something to bring other utility management initiatives

together Provide a set of outcomes (Attributes) for utilities to

strive for—regardless of size In other words a “common management framework”

Not intended to be a replacement for other programs

Assembled by utilities—for utilitiesEPA and Associations were the enablers and

supporters

Attributes of Effectively Managed Utilities—the 360 degree look

Effective Utility Management Primer

June 2008

“Softer” Attributes are Also CriticalStakeholder Understanding and Support -- critical for “building your case”Employee Leadership and Development -- right people, right skills, right vision -- more than technical skills needed Community Sustainability -- aligning your priorities with other

community goals -- great context for addressing climate and

resiliency challenges

What Else is Going On? WaterRF EUM Benchmarking Tool

EPA Planning for Sustainability Handbook

Effective Practices “Roadmap” (conventional and emergent models)

The Utility of the Future

Energy Management -- EPA Guidebook and Workshops

-- WEF Energy Roadmap

Climate Ready Water Utilities (CRWU)

WaterRF EUM Benchmarking ToolWaterRF is developing (CH2M Hill is the PI)Builds directly from the EUM primer, but is

more detailedWill allow utilities to benchmark internally or

with others based on the EUM Attributes, specific practices, and associated metrics

Tool will be beta tested by approx. 25 utilities early next year and completed in late 2013

Planning for Sustainability HandbookEffective planning is critical to EUM and long-term sustainability

EPA has developed a Handbook showing how to build sustainability into key phases of planning

Built around 4 Core Elements -- Goal setting with other

community stakeholders -- Objectives and Strategies -- Alternatives Analysis -- Financial Strategies• Webinar series now underway

Importance of Effective PracticesAdoption of effective practices is also a foundation of

EUM and sustainabilityThey make things real!EPA recently hosted meeting with leading utilities to ask

“What’s next and how can we collaborate going forward?”

Group focused on the importance of utility management practices under two models

-- Conventional model of utility management (current state for most)

-- Emergent model (where industry should be heading)• Now beginning to develop a roadmap to help utilities

adopt leading practices using both models

Conventional and Emergent Utility Management ModelsConventional EmergentCost effective response to

regulatory requirementProviding a single service—safe

drinking water/treated WWCommunity engagement

focused on direct impacts rate increases, odor,

constructionOperational strategies focused

on areas of direct control (collection to discharge)

Short-term horizons for infrastructure ROI (5-10 years)

Expanded view of services (resource recovery, total water management)

Leadership role in the community to spur economic development

Operational strategies that depend on external parties

-- GI, energy production, trading

Extended time horizons for infrastructure ROI

The Water Resource Utility of the Future: Blueprint for ActionEffort being led by NACWA, WEF, and WERFBlueprint will address key issues like: -- What is the Utility of the Future? -- What’s the business case needed to move

forward? -- What’s missing and what has to change?

(barriers, incentives, legislation, practices, etc.)

• Timing: Internal draft now under review• Final Paper: late January/early February

Energy ManagementCritical opportunity for utilities

to move toward sustainabilityEPA is promoting energy

management through our Energy Management Guidebook

WEF is promoting energy sustainability through its

Energy Roadmap• Both efforts stress the

importance of strategic planning, making the right choices, and moving forward

WEF Energy RoadmapPurpose is to help WW

utilities improve energy efficiency and move toward “zero net” energy

Organized around six topics—Strategic Management, Organizational Culture, Communications and Outreach, Demand Side Management, Energy Generation, Innovating for the Future

Describes steps and practices to get there, regardless of your starting point

Climate Ready Water Utilities

Climate Ready Process

Assess Risks and Evaluate Opportunities

Collaborate with

Partners

Research and Gather

Information

Learn Climate and Adaptation

Basics

ExploreElements of

Climate Readiness

Climate Resilience Evaluation and Awareness Tool

Extreme Events

Workshop Planner

ToolboxAdaptation Strategies

GuideAdaptive Response

Framework

Climate Ready Water Utilities Webinar Training Series

Register at www.epa.gov/climatereadyutilities.

Email CRWUhelp@epa.gov with questions

Webinar Topic Date

Climate Ready Water Utilities 101 January 23th

Climate Change and the Water Sector February 13th

Climate Resilience Evaluation and Awareness Tool (CREAT) February 27th

Extreme Events Workshop Planner March 6th

Adaptation Strategies Guide March 13th

Current State and Relevance of EUMVery good—still strongly supported by original

partners and used by a growing number of utilitiesIs becoming a well accepted framework for improving

performanceEmbedded in national conferences (WEFTEC, ACE,

UMC)EUM provides a solid foundation for assessing and

improving—under either the “conventional” or “emergent” models

Also supports adaptive management as new challenges arise—e.g. Utility of the Future

So, you bet its still relevant-- now more than ever!

Bringing Things Full Circle Public Trust and transparency is the “coin of the realm” for

utilitiesMore important than ever before in the face of new

challenges like climate, etc.Sustainable water utilities are essential to a sustainable

communityThe latter can’t happen without the formerNeither can exist without building strong and lasting public

trustEffective and sustainable management is what gets you

there!

THANK YOU! horne.james@epa.gov (202) 564-0571

http://water.epa.gov/infrastructure/sustain/index.cfm