An Overview of Clean Water Access Challenges in the United States - - PowerPoint PPT Presentation

www.efc.unc.edu

An Overview of Clean Water Access Challenges in the United States

Jeff Hughes and Erin Riggs Environmental Finance Center School of Government University of North Carolina (919) 843-4956 jhughes@sog.unc.edu riggs@sog.unc.edu www.efc.unc.edu

2

How you pay for it matters

Supporting the fair, effective, and financially sustainable delivery of environmental programs through:

• Applied Research
• Teaching and Outreach
• Program Design and Evaluation

Outline

• Background
• Summary
• Today’s Challenges
• Tomorrow’s Challenges
• Customizing Responses and Initiatives

Spoiler Alert: Take-Aways

• The nature of access challenges is as

fragmented and diverse as the water service provision models >> customize your solutions

• Many access challenges are magnified by

“isolation” >> identify and address isolation (e.g. allow for rate revenue funded CAP)

• More precise assessments are hindered by

available information and data >> improve your data

• Success initiatives almost always involve

partnerships

Framing and Categorizing Access Challenges

• By SDG goals
• Today vs. tomorrow
• Drinking water vs. wastewater vs. water in the

environment

• Community level vs. household/individual property

level

• Environment vs. Technology vs. Governance vs.

Economic

• Geographic
• Urban vs. rural
• “Responsible” parties and partners
• …….

United Nations Sustainable Development Goal 6:

Ensure availability and sustainable management

• f water and sanitation for all

6.1

Provide access to safe, affordable drinking water for all.

6.2

Provide access to adequate, equitable sanitation and hygiene for all.

6.3

Improve water quality by reducing pollution, dumping, and release of hazardous chemicals and materials.

6.4

Increase water-use efficiency and reduce water scarcity.

6.5

Implement integrated water resources management at all levels.

6.6

Protect and restore water-related ecosystems.

• 6.a: Expand international cooperation and capacity-building support

to developing countries in water- and sanitation-related activities

• 6.b: Support and strengthen the participation of local communities in

improving water and sanitation management

TYPICAL ANNUAL BILL FOR WATER AND WASTEWATER SERVICES

POVERTY RATE BY STATE

PERCENTAGE OF EACH STATE SERVED BY A SMALL WATER SYSTEM

Fast Moving Storm

Fair Bluff, NC

Slow Moving Storm

100 200 300 400 500 600 2002-01 2003-01 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 2012-12 2013-12 2014-11 2015-11 2016-12

Number of W01 water bills

PRELIMINARY RESULTS

Slow Moving Storm

DISCUSSION, QUESTIONS, COMMENTS….

Panel Findings and Recommendations

• “Fragmented

Governance”

• “Varied viewpoints”
• “Bifurcated regulatory

and organizational structures.”

• “separately-managed

silos for drinking water, wastewater, and stormwater at all levels

• f government.”

Paying for water and wastewater services in the United States

• Highly fragmented and decentralized with local

government, non-profit, and for-profit service providers

• Federal legislation drives most environmental

regulations/costs

• Federal government incentivizes private lending

through interest tax exemptions and provides project level funding assistance to utilities through variety of federal programs

32

Paying for water and wastewater services in the United States (Continued)

• State governments establishes economic

regulatory framework

– In most states, government/non-profit rate authority at local level and for-profit rate authority under state regulatory commissions

• Variation in state government involvement in

project level funding

• Customer assistance programs primarily

implemented at utility level with very limited federal or state involvement

33

General Types of Strategies

• Reduce cost of projects for a system (grants,

loans, project delivery mechanisms)

• Reduce costs of providing service to all

customers (asset management, consolidation etc.)

• Reduce amount of water that is used
• Reduce bill payment for subset of customers

(Customer Assistance Programs)

Navigating Legal Pathways to Rate- Funded Customer Assistance Programs

https://efc.sog.unc.edu/pathways-to-rate-funded-customer- assistance

Non Commission Regulated Utilities: Ability to Implement CAPS Funded by Ratepayer Revenues by State

Podcast: http://thewatervalues.com/2017/10/17/customer-assistance-programs- expanding-importance-stacey-isaac-berahzer/

Moving beyond “percent MHI”…

• Most used and most

critiqued metric

• Historic focus on

what the “median” person pays for water as a percent of income

• Metric has been

used beyond what it was meant to be used for….

Water and Wastewater Residential Rates Affordability Assessment Tool

On the EFC Website Go to http://efc.sog.unc.edu and search for “Affordability Assessment Tool”

Free, simplified Excel tool allowing you to examine several metrics to assess how affordable your rates are in your community

Conclusion

• The nature of access challenges is as

fragmented and diverse as the water service provision models >> customize your solutions

• Many access challenges are magnified by

“isolation” >> identify and address isolation (e.g. allow for rate revenue funded CAP)

• More precise assessments are hindered by

available information and data >> improve your data

• Success initiatives almost always involve

partnerships

For More Information

Jeff Hughes or Erin Riggs Environmental Finance Center University of North Carolina at Chapel Hill jhughes@unc.edu or riggs@sog.unc.edu www.efc.unc.edu