Edwards Aquifer Recovery
Implementation Program –
Impact to San Antonio
October 3, 2011
Green Industry Alliance
EARIP Background
• EARIP
– “Balances the recovery of listed species
with water use and development through a
multi-stakeholder process”
• Ongoing process since 2007
– Parameters and timelines solidified in
Senate Bill (SB) 3 (2007)
– Stakeholders specifically identified in
legislation (26 Member Steering Committee)
October 3, 2011
EARIP Impact to San Antonio
Page 2
EARIP Background
• Consensus-based approach that uses
available science to develop a program
document that:
– Protects identified endangered species
• Contributes to long-term species recovery
– Balances regional interests
• Human water use, environmental sustainability
– Provides Incidental Take protection for interested
stakeholders
• Protection for covered activities through a permit issued
by the U.S. Fish and Wildlife Service (FWS) with an
approved plan
October 3, 2011
EARIP Impact to San Antonio
Page 3
Phase I – Bottom Up Activities
Page 4
Activities Approved by the EARIP Steering Committee
to Accomplish its Goals
• Flow Management
• Habitat Management
Phase I Components
Phase I Components
–
–
–
–
– Improve habitat surrounding both
spring complexes
– Environmental restoration and
protection areas with research
component – protection in the wild
– Refugia - protection in captivity
– Bio-Monitoring
– Low impact development
considerations around critical
habitat (water quality)
– Implement specific species
protection measures (i.e.
Recreation Management)
VISPO Dry Year Option
Regional conservation
SAWS ASR commitment
Stage V additional 4% water use
curtailments
If necessary, Phase II Components
– Expanded use of the ASR through
SAWS Water Resources Integration
Pipeline
– Additional pumping reductions to be
determined
October 3, 2011
EARIP Impact to San Antonio
Phase I – Bottom Up Activities
Page 5
SAWS ASR
• SAWS ASR recovery commitment
– 126,000 acre-feet of recovered water is delivered to
SAWS customers to replace pumping on the
Edwards Aquifer during a future drought similar to
the 1950s
• Drought of Record (DOR) Determination
– Ten-year rolling Edwards Aquifer recharge average
• As identified in the annual EAA Hydrogeologic Data Report
– Regional Advisory Group
• Coordination of 50,000 acre-feet of regional
leases
October 3, 2011
EARIP Impact to San Antonio
Phase I – Bottom Up Activities
Stage V Restrictions
• Last layer of the activities to provide spring
flow protection
• Triggered when J-17 is at 625’ msl or below
– July 1990 (most recent occurrence)
• Permits will be reduced to a total cutback of
44%
• Stage V reduces firm yield of the aquifer to
320,000 acre-feet
October 3, 2011
EARIP Impact to San Antonio
Page 6
Page 7
SAWS ASR Commitment
October 3, 2011
EARIP Impact to San Antonio
Introduction and Overview
• The capabilities of the ASR are greater than
originally anticipated and continue to develop
• All water in the ASR continues to serve SAWS
ratepayers
• The EARIP plan and SAWS intended use of
the ASR in drought stages are generally
consistent
October 3, 2011
EARIP Impact to San Antonio
Page 8
EARIP Leased Water and ASR
• EARIP will lease 50,000 acre-feet of water
annually
• The leased water will be available for SAWS
to store in the ASR
– 16,000 acre-feet will be available annually
– 34,000 acre-feet will be available based on DOR
triggers
October 3, 2011
EARIP Impact to San Antonio
Page 9
Using ASR through Drought
October 3, 2011
EARIP Impact to San Antonio
Page 10
Protecting Comal Spring Flows
160
Model Simulation shows 39
months of zero spring flow
at Comal Springs
140
120
cfs
100
80
60
40
20
0
Jan-52
Jan-53
Jan-54
Jan-55
Baseline
October 3, 2011
EARIP Impact to San Antonio
Jan-56
Jan-57
Page 11
Page 12
Phase I Program and Reduced SAWS Pumping
160
140
120
cfs
100
80
60
40
20
0
Jan-52
Jan-53
Baseline
Jan-54
Jan-55
Other Strategies
October 3, 2011
EARIP Impact to San Antonio
Jan-56
ASR
Jan-57
Phase I
ASR Phase II
• Models are predictive tools only and are built
with conservative assumptions
• If additional protections are needed, SAWS is
committed for Phase II
• To meet Phase II commitments using the ASR,
SAWS will need to construct the integration
pipeline
• As a fall back position, Phase II could impose
additional cutbacks
October 3, 2011
EARIP Impact to San Antonio
Page 13
Page 14
SAWS Challenges with ASR in EARIP
• SAWS must manage the ASR for long-term
storage and produce from the ASR once DOR
is identified
• SAWS will need to evaluate produced water
quality under extended drought and maximum
production operation
• SAWS Edwards annual water rights will be
reduced proportionally to the annual volume
of ASR water produced in a DOR
October 3, 2011
EARIP Impact to San Antonio
Benefits with ASR in EARIP
• Potentially less expensive than other EARIP
projects considered
• SAWS makes all operational decisions on use
of the ASR prior to DOR
• All ASR water is used by SAWS ratepayers
October 3, 2011
EARIP Impact to San Antonio
Page 15
Page 16
Implications to SAWS Water
Resources
October 3, 2011
EARIP Impact to San Antonio
Page 17
WMP – Current Status
DOR Occurring Late in Scenario
500,000
7/1/11
7/26/11
Drought of Record Starting in 2019
Maintain Edwards, Regional Carrizo, Brackish
Desalination (3 Phases), RFCSP
450,000
400,000
Acre-Feet
350,000
300,000
250,000
Alt. Scenario
(136 GPCD)
200,000
Normal
(116 GPCD)
150,000
100,000
50,000
0
2013
2014
Non-Edwards Supply
2015
2016
RFCSP
2017
2018
2019
Edwards Supply
2020
ASR
October 3, 2011
EARIP Impact to San Antonio
2021
2022
2023
Normal Demand
2024
2025
2026
Alternate Scenario
2027
EARIP Commitment
Assumptions
• EARIP Assumptions
– SAWS ASR
• Becomes a base loaded supply in future DOR based on
modeled recovery regime
• ASR recovery will replace Edwards pumping totaling
126,000 acre-feet over a ten-year period
– 46,300 acre-feet in worst year of DOR
• Portion of regional leases to be used for ASR storage
– SAWS initially contributing 8,000 acre-feet per year
• Water will be restored back to SAWS as the other water
conservation efforts across the region begin to achieve
results
• Estimated commitment to be ten years
October 3, 2011
EARIP Impact to San Antonio
Page 18
Page 19
EARIP Commitment
Assumptions
• Edwards Aquifer Proposed Cutbacks
Stage
Trigger
Reduction
I
660’ msl
20%
II
650’ msl
30%
III
640’ msl
35%
IV
630’ msl
40%
V
625’ msl
44%
• Additional reductions in Phase II if necessary
October 3, 2011
EARIP Impact to San Antonio
Page 20
Implications of EARIP Bottom Up
DOR Occurring Late in Scenario
500,000
7/26/11
Drought of Record Starting in 2019
Maintain Edwards, Regional Carrizo, Brackish
Desalination (3 Phases), RFCSP
450,000
400,000
Acre-Feet
350,000
300,000
250,000
Alt. Scenario
(136 GPCD)
200,000
Normal
(116 GPCD)
150,000
100,000
50,000
0
2013
2014
Non-Edwards Supply
2015
2016
RFCSP
2017
2018
Edwards Supply
2019
2020
2021
SAWS ASR
October 3, 2011
EARIP Impact to San Antonio
2022
2023
2024
Normal Demand
2025
2026
2027
Alternate Scenario
Page 21
Funding Options and Costs
October 3, 2011
EARIP Impact to San Antonio
Funding
Page 22
Likely increase in the EAA Aquifer Management Fee
• July 19th letter from EAA
– “…the maximum projected total aquifer management
fee rate would be $116 per acre-foot beginning in
2012”
– Represents an increase of $77 per acre-foot for
municipal and industrial users
• Implement and sustain programs in the HCP – $64 per
acre-foot
• Maintain the long-term sustainability of the aquifer
management rebate program – $12 per acre-foot
• Enhanced water quality regulations – $1 per acre-foot
October 3, 2011
EARIP Impact to San Antonio
Funding
Page 23
EAA Fee Pass-Through to Monthly Water Bill
• Ordinance #87042 – passed by City Council in
1997
– Instructs SAWS to pass the EAA Aquifer Management fee
through to customers based on volume of water used
• The Aquifer Management fee appears as a line
item on each SAWS bill
• Current rate – approximately 1.4 cents per 100
gallons
– Average 2011 residential customer: $1.10 per month
– Average 2011 commercial customer: $7.03 per month
October 3, 2011
EARIP Impact to San Antonio
Page 24
EAA Fee Calculation
2011 Fee with EARIP Projection
2011 (EARIP)
2011
Estimated Edwards Allotment
(Acre-feet)
Cost per Acre Foot
EAA Fee
255,474
255,474
$39
$116
$9,963,479
$29,634,963
Under (Over) Recovery -prior
year
EAA Rebate
Amount to be Recovered
$9,200
($2,297,662)
$7,675,017
$9,200
$0
$29,644,163
Projected Annual Water Usage
(Billion Gallons)
Charge per 100 Gallons
Average Customer Monthly
Charge
October 3, 2011
EARIP Impact to San Antonio
54.561
54.561
$0.01407
$0.05433
$1.10
$4.23
Page 25
The Edwards Aquifer Would Remain the
Most Economical Source of Water
Annualized Project Costs with System Integration (rev. July 2011)
$3,500
$3,000
Cost per acre-foot
$2,500
$2,000
$3,168
$1,500
$1,000
$1,549
$900
$500
$362
$285
$328
Edwards
Acquisitions
(2011)
Edwards
Leases
(2011)
$1,042
$1,094
$405
$0
Edwards
Acquisitions
(EARIP)
Edwards
Leases
(EARIP)
Trinity
Project
Aquif er Management Fee Increases
October 3, 2011
EARIP Impact to San Antonio
Canyon
Lake
Regional
Carrizo
(Gonzales)
Annualized Supply Cost (2011)
Brackish
Desal
(Bexar)
Ocean Desal
Funding
Other Potential Sources of Funding
• Federal Contribution
– FWS
• Possibility of $2 million per year
• Downstream Contribution
– Goal of $1 million of funding
• GBRA - $400,000
• Others - $250,000 (CPS Energy - $100,000)
• Outstanding - $350,000
October 3, 2011
EARIP Impact to San Antonio
Page 26
Costs to SAWS
Largest EAA Municipal Permit Holder
• Given the legislative cap on agricultural Aquifer
Management fees and the likely limited contributions
from federal sources and downstream stakeholders,
most of the funding for the EARIP will come from
Municipal and Industrial EAA permit holders
• SAWS pays approximately 65% of the total Aquifer
Management fees collected by EAA
– Other Municipalities and Industries pay 34%
– Agricultural irrigators pay 1%
October 3, 2011
EARIP Impact to San Antonio
Page 27
Page 28
Next Steps
October 3, 2011
EARIP Impact to San Antonio
Page 29
Next Steps – Moving Forward
• Bottom Up activities are meaningful programs
with merit
• Four years of regional cooperation and
understanding
– Unprecedented
four-year
effort
stakeholders involved in negotiations
• HCP approval is promising
– FWS very engaged in process
October 3, 2011
EARIP Impact to San Antonio
with
all
Next Steps – Moving Forward
Page 30
Without SB 3
With SB 3
Cap of 400,000 acre-feet
Cap of 572,000 acre-feet
CPM per EAA
CPM codified
Owned water 159,000 acre-feet
Owned water 227,000 acre-feet
Constrained water market
Vigorous market
ASR limited
ASR at 95,000 acre-feet
High litigation risks
Low litigation risks
Gaps filled with non-Edwards
Gaps filled with Edwards
and non-Edwards
172,000 acre-feet loss = $950 million
October 3, 2011
EARIP Impact to San Antonio
Next Steps – Moving Forward
• Impacts to SAWS Water Resources is
manageable
• SAWS should be applicant to the HCP
• Funding commitment is high, but benefits are
long-term and provide much needed
protection to Edwards water rights as well as
resolution to ongoing issues
• Staff will continue to work on key issues and
develop
recommendation
for
Board
consideration
October 3, 2011
EARIP Impact to San Antonio
Page 31
Edwards Aquifer Recovery
Implementation Program –
Impact to San Antonio
October 3, 2011
Green Industry Alliance