Transcript National Waterways Conference The Trend Toward Declining

Water Control-Federal Markets
Session
2014 ACEC Annual
Convention,
Washington, DC
April 29, 2014
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Agenda
1. The Nature Conservancy Overview
2. Strategic Situation
3. TNC’s Water Infrastructure Priority
4. America’s Watershed Initiative
►
America’s Watershed Report Card
5. Communities of Practice
6. Questions and Discussion
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The Nature Conservancy (TNC) and Water
TNC is the largest water NGO in the world
•
•
•
•
$50 Million+ of water rights transactions
$2 Billion mobilized for source water protection
Over 38,000 square miles of blue conservation
400+ staff focused on freshwater…
A scarce resource…
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What does the World Economic Forum say is the
highest global risk in terms of both impact and likelihood?
Not nuclear war…
Not cyber attacks…
Not major financial collapse…
But WATER CRISIS!
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Drought Burns
Livestock Industry
Disaster Declared in 26
States
as Drought Sears in U.S.
Iowa crop losses soar past $1 billion
Drought pushes
Mississippi river water
levels to historic low
Worst drought in decades
could affect U.S. energy
markets
U.S. Drought Persisting Seen
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as Threat to Corn,
Soybeans 6
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How the world solves its problems today…
Global annual expenditure water, 2010
Total ~$ 500 billion1
500 bn
Operating
expenditures,
~$300 billion
Capital
expenditures,
~$200 billion
Source: EDA, University of Wisconsin, Milwaukee
• Water Resources
Infrastructure, $20 billion
• Desalination, $15 billion
• Drinking Water, $60 billion
• Waste Water, $80 billion
• Industrial, $15 billion
Global Infrastructure Investment
Infrastructure Investment as Percentage of GDP
9
8
7
6
5
4
3
2
1
0
8.5
5
4.7
3.9
3.6
3.3
Source: McKinsey Global Institute/McKinsey Infrastructure Practice, January 2013
2.6
2.6
1.8
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Total Public Spending on Infrastructure
(1956-2007, in 2009 Dollars)
O&M Spending
Capital Spending
Total Capital
Total
Operations and
Maintenance
(O&M)
Water Resources
Capital Spending
Water Resources
O&M Spending
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
($B)
200
190
180
170
160
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
Source: CBO Study, “Public Spending on Transportation and Water Infrastructure”, November 2010
Water
Transportation
& Resources
Capital
Water
Transportation
& Resources
O&M
USACE Program Trends
FY01-16
Program (Budget Authority) ($M)
60,000
FY 08
49,331
50,000
44,311
Total USACE
40,504
40,000
36,432
32,795
31,731
FY 03
23,905
27,991
26,940
22,279
19,158 19,384
30,319 31,948 30,817
26,736
FY 15
27,999
24,648
22,896
22,291 22,558
20,771
20,291
18,725
18,620
21,340
15,458
23,047
30,000
19,733
17,575
20,000
17,720
16,187
Military
13,470
10,648 10,944
8,510
8,440
8,447
8,320
9,452
9,899
Civil
10,000
12,092
8,433
8,028
9,390
6,928
6,860
6,821
0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Fiscal Year
FY13 Constant $ (Apr 13)
Military = MILCON, RDT&E, RE, Reimb, OCO, ARRA
Civil = Direct+Reimb, FY05-13 Incl Supplemental
USACE Civil Works Backlog
[Construction]
Billions
$70
$60
$50
$40
$30
$20
$10
$0
$60B
Backlog Projects by Business Line
Environmental
Infrastructure,
5%
$1.5B
Shore
Protection,
10%
Construction
Funds
(annual)
USACE
Backlog
Environmental
20%
Flood
Damage
Reduction,
35%
Navigation Inland, 5%
Navigation Ports, 20%
USACE Operations &
Maintenance Backlog
?
The Future
• Desired End State: Nation has resilient,
reliable and sustainable infrastructure that
assures our national and economic
security.
• Transparency, Communication and
Shared Responsibility are keys to
ensuring that we can meet the Nation’s
infrastructure challenges.
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Partnering
to
advance
our
Water Infrastructure Priority
Nation’s Waterways
Strategies
• Shape Policy (e.g., WRDA)
• [Help] tell the [USACE] Story
• Build the Partnership (e.g., AWI)
• Demonstrate
Success
•Help [USACE]
transform
the Civil Works process
(by 2020)partner with stake•ContinueOutcomes
to [help USACE]
1. Systems Approach to Watershed Management and Budgeting
• Double and
the National
investment in Water Resources
Infrastructure
(to $10
holders, industry
beneficiaries
of
the
systems
bil/year)
•
Develop alternative financing strategies to attract $100 mil in private capital
•[Help] Facilitate
a Watershed approach
2. Existing USACE Water Resources Infrastructure optimized as
multipurpose projects, to include environmental benefits
•Help the Nation
prioritize efforts and projects
(Target: 50%)
3. New Federal investments in Water Resources Infrastructure
incorporate natural infrastructure components (Target: 80%)
4. Transparent Facility Management/Asset Management
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Water Infrastructure Priority
Focus on a National Scale
Initial Steps:
1. Determine where the Federal investment is
actually going by watershed (2 and 4 digit HUC)
2. Categorize by Business Line (e.g., Navigation,
Flood and Coastal Storm Damage Reduction,
Environmental Protection and Restoration,
Hydropower, Recreation, Water Supply) and type
of funding (Planning, Construction and O&M)
3. Analyze the actual funding level vs. requirements
4. Develop findings and draw conclusions
5. Inform National dialogue
6. Make policy recommendations or suggestions
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Hydrologic Unit Codes (HUCs)
What is a Watershed?
Name
Level Digits Average Size # of HUCs Example Name
(Square Miles) (Approx)
Example Code
(HUC)
Region
1
2
177,560
21
Upper Miss River
07
Subregion
2
4
16,800
222
Illinois River
0713
Basin
3
6
10,596
370
Mackinaw
071300
Subbasin
4
8
700
2,200
Mackinaw
07130004
Watershed
5
10
227
(40-250K acres)
22,000
Upper
Mackinaw
0713000401
Subwatershed
6
12
40
(10-40K acres)
160,000
Bray Creek
071300040103
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Federal budget focus is above the line
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Agenda
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Environment
Recreation
Navigation
Energy & Industry
Supply
WaterSupply
Water
Agriculture
Flood Protection
Diverse Sectors
Water Resource Region Report Cards
(Relationship to the ASCE Report Card?)
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TNC Operational Foundation
Build an Enduring Capability and Influence
NAFW Community
of Practice (CoP)
North America Team
Demonstration
Projects
Thru
CoPs
Local Project Delivery Teams
Outcomes
Shapes Policy
1/21/2014
Influences
When
Reinforces
Navigation
Aquatic Ecosystems
Water Mgmt & Control
Multi-Purpose Reservoirs
Stream Connectivity
Hydropower
Governance
Water Supply?
National/Global Water Quality?
Replicated
At Scale
Multi-State Watersheds
CoP – Community of Practice
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Questions & Discussion
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