Post on 14-Jul-2020
Item 6c
Subject: Local Resources Program Update
Purpose: Provide an overview of Local Projects Program status and new initiative to improve program performance.
Item 6c
Oral Report on Local Projects Program
Water Planning and Stewardship CommitteeItem 6cAugust 18, 2014
LRP provides incentives for development of new local projects
Recycled water to reduce imported water demandRecovered groundwater to increase regional groundwater production and sustain yield during drought without imported water replenishment
LRP expedites local project developmentIncreased use of recycled water and recovered groundwater in the regionMeet IRP and 20x2020 goalsDrought response
1980 – Orange and Los Angeles Counties Reuse Study
Recycled water potentialRegional benefits/Imported demand reduction
1982 – Program for recycled water1991 – Program for recovered groundwater
1982 1986 1991 1998 2007
Upfront Capital Funding
Fixed Incentive($154/AF)
Sliding Scale
($250/AF)
Competitive Process
Sliding Scale
($250/AF)
2007 LRP target 174,000 AFY23 projects approved 111,000 AFYRemaining target 63,000 AFY
Local Resources Program
ProgramNumber
of Projects
Contract Yield (AFY)
Deliveries to Date
(AF)
Incentives to Date
($M)
Recycling 75 307,000 2,026,000 360
Groundwater Recovery 24 113,000 719,000 127
Total 99 420,000 2,745,000 487
Metropolitan Water District of Southern
California
Recycled Water and GW Recovery
Acre ‐Feet
0
100,000
200,000
300,000
400,000
500,0001980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Recycled Water Groundwater Recovery
LRP is successful in increasing recycled water and groundwater
recovery production
Acre ‐Feet
(Excludes GW Replenishment)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Groundwater, Surface Water, LAA, Recycled Water for Direct Use
Consumptive use of local supplies is relatively flat over time
Need to do more to help meet economic and demographic growth
LRP production helped offset decline in local
supplies
LRP production is not at capacityCost remains a predominant constraint
Data shows most local projects cost more than MWD rateFinancial assistance needed, especially in early years
0
100,000
200,000
300,000
400,0001986
1990
1994
1998
2002
2006
2010
2014
Acr
e Fe
et
Fiscal year End
Project Production
Contract Yield 239 TAF123 TAF (34%)
356 TAF
2007 Public sector program85 sites3,300 AFY
2013 Foundational Actions Funding Program $3 million for 13 projects Technical studies and pilot projects
2014 On‐site retrofit Pilot Program$7.5 million over three years14 applications to date ($1 million for 1,100 AFY)
Meet 20x2020 (recycled water)Bring new projects online fasterMotivate increased production from existing projects (faster ramp‐up, expansions)
Meet IRP resource needsEnhance storage opportunitiesImprove groundwater management and sustainability
1. Update incentive amount and payment structure
2. Consider recycled water on‐site retrofit costs3. Review eligibility for other water resources4. Evaluate opportunities to provide
reimbursable services
Review Incentive amount (currently up to $250/AF)Maintain current sliding scale approachConsider payments early in contract
Would help with high cost in early yearsNeed to ensure that Metropolitan gets value
Consider a fixed incentive rateProvides stable funding opportunityNeed to ensure Metropolitan is paying the appropriate amount
Recycled water on‐site retrofitsInclude as LRP eligible costs
Other water resourcesConsider seawater desalinationConduct a study on stormwater regional benefits
Reimbursable servicesExample services: design, construction, operationMember agencies reimburse MetropolitanTo expedite project development by 2020 Pursue Federal and State grants
October 2014Board ActionBoard Action
September 2014Board Information ItemBoard Information Item
August‐September 2014Continue Discussions with Member AgenciesContinue Discussions with Member Agencies