Integrated Resource Plan

Integrated Resource Plan

Technical Conference 2

October 4, 2011

Today’s Meeting

• Background• Purpose of IRP • Stakeholder Process• Break• IRP Drivers and Constraints• Demand and Supply Options• Lunch• Round Table Discussion• Next Steps

www.halifaxwater.ca 2

Halifax Water – Background


• 1945 – through the Halifax Public Utilities Commission Act – Utility and Review Board begins regulating water utilities

• 1996 – Municipal amalgamation occurred – City of Dartmouth, City of Halifax, Town of Bedford and Halifax County merge

• Wastewater (WW) & Stormwater (SW) assets become responsibility of new Halifax Regional Municipality (HRM)

• Water system assets transferred from City of Dartmouth & Halifax County – Halifax Regional Water Commission

Halifax Water – Background…continued

• 2007 – HRM transferred WW & SW assets to Halifax Water• Regulatory oversight by UARB (WW & SW assets)• Required a few years to understand the value of the

inherited assets• Historical underinvestment in WW & SW assets

• 2010 – Halifax Water rate case made it clear that a long term planning approach was needed

• 2011 – NSUARB orders Halifax Water to prepare IRP


5

Regulatory Oversight

Government oversight of municipal water utilities is provided by two government agencies:

www.hrwc.ca

Nova Scotia Environment

(NSE)

Regulates water safety issues

Nova Scotia Utility and Review Board (NSUARB)

Regulates water rates

Integrated Resource Plan (IRP) Overview

• An Integrated Resource Plan (IRP) is a comprehensive planning method that:• Uses a long-term planning horizon• Recognizes environmental constraints• Includes stakeholder participation• Assesses supply-side & demand-side management

options• Uses scenario analysis• Conducts least cost financial analysis on scenarios

that fulfill the performance requirements• Recommends a preferred plan


• The purpose of the IRP is to create:• Method for evaluating alternative servicing scenarios• Long-term direction for Halifax Water• Comprehensive assessment of system & investment

options• Framework for detailed capital investment analysis

(more detailed will be done as capital needs are budgeted and approvals requested)

• Risk management plans for issues & key uncertainties facing Halifax Water

• Confidence in financial analysis in support of future rate applications to the NSUARB


Integrated Resource Plan (IRP) Overview

IRP Charter

“We will create an Integrated Resource Plan

(IRP) that provides clear direction for Halifax

Water and its rate-payers on the resources

required to develop world-class cost-effective

water, wastewater and stormwater infrastructure

systems that meets the needs of the present and

future generations. The IRP will also determine

the capital and operating costs required to

support the present and future infrastructure

systems.”


IRP Scope


• IRP will address infrastructure within Halifax Water’s mandate• Water system• Wastewater system• Stormwater system

• IRP scheduled for completion by June 2012

Halifax Watersheds


Asset Renewal


Water, Wastewater & Stormwater Infrastructure

Private and On-lotNot Included in IRP


Lakes, Streams and Rivers, Wetlands - Nova Scotia Environment

Floodplains - Nova Scotia Environment and Halifax Regional Municipality

On-Lot Drainage - Halifax Regional Municipality

and Property Owner

Major Drainage Routes - Halifax Regional Municipality

Storm Sewers, Inlets, Ditches Culverts and SWM Ponds –

Halifax Water

Stormwater Systems: Multiple Jurisdictions

Integration in the IRP


• Common planning and land use projections used to integrate requirements across all infrastructure systems

• Common decision framework and criteria used to determine integrated project/program priorities

• Wastewater priorities assessed on a sewershed basis for WWTF effluents, CSOs and SSOs

Integration in the IRP… continued


• Integrated analysis of WW & SW systems to assess impacts on WW collections and treatment facilities

• Demand & supply integration options (e.g. water efficiency) will provide benefits to both water and wastewater systems

• Common costing and financial analysis framework

15

Real time collaboration with Halifax

Water & NSUARB

IRP Process

www.hrwc.ca

NSUARB

Halifax Water

Tellus / Wright-Pierce /

Hydrologics

Genivar / XCG /

Halcrow

IRP Stakeholders

Consultation

IRP Stakeholder Process

• Technical Conferences• Terms of Reference• Assumptions & Plan Considerations• Resource Plans & Sensitivities• Resource Plan Analysis• Present Draft IRP

• One-on-One Stakeholder Meetings• Early identification of issues


March 24, 2011

October 4, 2011

December 6, 2011

March 6, 2012

May 9, 2012


Technical Conference

2


1

IRPTerms of

Reference


3

Assemble Resource

Plans

Stakeholder Meetings

IRP Drivers Demand /

Supply Options

Assumptions

Finding the Preferred IRP


Evaluate Performance/Assess Costs


Prepare Draft IRP


Halifax Water Integrated

Resource Plan

Candidate Plan Analysis

Finding the Preferred IRP…continued

What We Heard

• Have Halifax Water to be the leader on a number of issues outside Halifax Water’s mandate• watershed planning• on-site systems monitoring and programs• land use planning• stormwater management

• Explain the jurisdictional constraints across the infrastructures

• Broaden the IRP outreach to include the general public• Prepare ratepayers / stakeholders for the rate increases

that will likely come out of the subsequent rate application



Break

IRP Integrates Three Drivers


GROWTHCOMPLIANCE

ASSET RENEWAL


Asset Renewal

Current Asset Profile

•Water System• Large Water Supply Plants – 3• Small Community Water Supply Plants – 2 • Small Community Well Systems – 3 • Storage – 18 Reservoirs• Pumping Stations – 20 • Transmission/Distribution Mains – 1,307 km• Control chambers – 110• Appurtenances ~21,000• Water Meters – 79,000+• Dams – 6



•Wastewater System• Harbour Solutions Wastewater Treatment Facilities – 3• Large Wastewater Treatment Facilities – 4 • Small Community Wastewater Treatment Facilities – 8• Pumping Stations – 172• Sewers – 1,400 km• Storage – 5• Appurtenances ~22,000



•Stormwater System

• Storm Sewers – 789 km

• Cross culverts – 8 km (estimated)

• Ditches – 130 km

• Retention Ponds – 25

• Appurtenances ~32,000


Expected Asset Lives

• Tools & work equipment 5 – 30 years• Office equipment, transportation 3 – 10 years• Pumping equipment 5 – 20 years• Treatment works equipment 10 – 20 years• Water meters 20 – 25 years• Service connections 50 – 60 years• Distribution reservoirs 75 years• Structures, buildings 50 – 100

years• Water, wastewater & storm pipes 60 – 100 years


Infrastructure Asset Serviceability

• The capability of a system of assets to deliver a reference level of service to customers and to the environment now and into the future• Assets are not maintained for their own sake but for

the service they perform• Service indicators used to measure Levels of Service

• e.g. Service outages of water (target 200 connection hrs./1000 customers per year)


“Serviceability to Customers and the Environment”

28www.halifaxwater.ca

HW Corporate Balanced Scorecard

• HRWC embarked on a Continuous Improvement Program in 1999

• Introduced the concept of Corporate Balanced Scorecard (CBS) in 2001

• Developed a new mission statement in 2007• Identified critical success factors (CSFs) in

support of the new mission (e.g. High Quality Drinking Water)


HW Corporate Balanced Scorecard

• Developed organizational indicators (OIs) to measure performance (e.g. Bacteriological tests – target 99.3% free of Total Coliform)

• With the 2007 merger, Halifax Water expanded the CSFs and OIs across wastewater and stormwater infrastructure

• Periodic reviews of the CSFs and OIs are done to confirm the continued relevance of specific performance indicators or in response to changing requirements

• Provides the basis for establishing Levels of Service


System Asset Management (OIs)

• Water supply leakage target of 200-210 L/service connection/day

• Inflow and Infiltration (I&I) target of 200 inspections on private property/year

Major Asset Renewal Issues

• Inherited wastewater and stormwater systems asset renewal deficit • Recapitalization needed over 30 year timeframe across

all wastewater and stormwater asset classes • Water systems will also require renewal of key assets

• Pockwock WSP 34 years old in need of refurbishment• Transmission mains require timely replacement to

avoid catastrophic failure and strengthen system• Halifax Water extending Asset Management Program

• Improving knowledge of assets and determination of optimal asset renewal rates


IRP Asset Renewal Assumptions


2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

2053

2054

2055

2056

2057

2058

0

1000

2000

3000

4000

5000

6000

7000

Asset Replacement Projections - Forcemains2009 to 2059

Year

Repl

acem

ent D

olla

rs (1

000s

)

IRP Asset Renewal Assumptions

• Renewal requirements and rates will be determined individually for each asset class

• Renewal rates will be based upon:• Current condition• Expected remaining asset life• Current performance with respect to existing Levels

of Service indicators• Industry benchmarks

• Best professional judgment will be applied where there are data gaps

• Preliminary, rough estimates for minimum asset reinvestment – $67M/year ($1.6B over 25 years)



Regulatory Compliance

Regulatory Perspectives

• Principal regulation specific to each system • Water – Nova Scotia Environment (NSE),

Health Canada• Wastewater – NSE, Environment Canada• Stormwater – NSE, HRM

• Considers three perspectives• Existing – Current regulatory requirements• Expected – Regulatory requirements in near future• Future – Possible future regulatory requirements


Existing Water System Regulation

• Guidelines for Canadian Drinking Water Quality http://www.hc-sc.gc.ca/ewh-semt/water-eau/drink-potab/guide/index-eng.php

• Nova Scotia Environment• Capacity• Drinking Water Quality• Monitoring & Reporting

• Halifax Water Response• Water Quality Management Plan• Compliance Monitoring and Reporting• CBS – Organizational Indicators


http://www.hc-sc.gc.ca/ewh-semt/water-eau/drink-potab/guide/index-eng.php

http://www.hc-sc.gc.ca/ewh-semt/water-eau/drink-potab/guide/index-eng.php


Water System OIs

• Percentage of water supply plants meeting product regulations of their permits (ongoing)

• Bacteriological tests (Monthly target of 99.3% free of Total Coliform)

• Customer satisfaction about water quality (Target of 85% rating water quality as good to excellent) (annual)


Expected Water System Requirements

• Halifax Water adopted OIs for expected requirements (extended goals) for five drinking water parameters that exceed current compliance requirements for residual disinfectant (chlorine), trihalomethanes (THM), haloacetic acid (HAA), particle removal, corrosion control (lead)

• Meet all current compliance requirements

• Meet most but not all OI extended goals for the water quality parameters

• Water Quality Master Plan being implemented to reach compliance for all extended goals


Future Water Regulatory Requirements

• Continued emphasis on reducing disinfection by-products e.g. THMs, HAAs and other compounds

• Ensuring distribution system water quality • Residential lead • Minimum disinfectant residual

• Ongoing assessment of microbial risk (e.g. Quantitative Microbial Risk Assessment (QMRA))

• New contaminants


IRP Water System Assumptions

• Water supply systems meet current compliance requirements

• Water Quality Master Plan through operational improvements will meet extended goals

• Future regulatory requirements will emerge (may result in different assumptions and scenarios for future IRPs)


Current Wastewater Treatment Facility Regulation• Nova Scotia Environment

• Capacity• Effluent Quality• Monitoring & Reporting• Biosolids Quality

• Canadian Food Inspection Agency – Fertilizer Act • Biosolids Quality

• Halifax Water Response• Wastewater Treatment Facilities Compliance Plan

(DRAFT)• Compliance Monitoring and Reporting• CBS – Organizational Indicators


• Environment Canada – Atlantic Canada Wastewater Guidelines Manual (2006)

Combined Sewer Overflows (CSOs)• All new sewer systems be designed as separate sewers• Requirements for CSO treatment specified by the

regulatory agency having jurisdiction• Reduce, where possible and practical, the frequency and

duration of CSOs to minimize impacts on receiving water

Current Wastewater Treatment Facility Regulation


• Environment Canada – Atlantic Canada Wastewater Guidelines Manual (2006)

Sanitary Sewer Overflows (SSOs)• Chlorination unless waived by the regulatory agencies• Alarmed and equipped to indicate frequency and duration

of overflows, and designed to permit manual flow measurement

• All overflows should be recorded and reported to the regulatory agencies

Current Wastewater Treatment Facility Regulation


Wastewater System OIs

• Percentage of wastewater treatment facilities meeting discharge regulations of their permits (excludes Harbour Solutions plants)

• # of CSO and SSO events per year • # of public health and environmental regulatory

infractions resulting in a written warning• # of public health and environmental regulatory

infractions resulting in a conviction

Expected WWTF Regulatory Requirements

• Environment Canada – Draft Wastewater Systems Effluent Regulations (WSER - 2011)• National Performance Standards – minimum

requirementscBOD5 <= 25 mg/LTSS <= 25 mg/LTRC <= 0.02 mg/LUn-ionized ammonia <=1.25 mg/L at 15 ˚C

• Effluent Discharge ObjectivesBased on the result of Environmental Risk

Assessments (ERA’s)Site specific – assimilative capacity of the

receiver

Expected WWTF Regulatory Requirements

• Halifax Harbour Solutions plants will require upgrade to secondary treatment to comply with expected Environment Canada WSER

• Three community WWTFs will require upgrade to comply with expected Environment Canada WSER chlorine residual requirements

• One WWTF (Eastern Passage) is being designed to comply with expected Environment Canada WSER (currently under expansion/upgrade)


Future WWTF Requirements

• Discharge to limited receiving streams or lakes

• Increased requirements for advanced nutrient removal nitrogen and phosphorus

• Requirements for emerging pollutants

• e.g. personal care products, pharmaceuticals and endocrine disruptors


Expected CSO/SSO Requirements

• Environment Canada - Wastewater Systems Effluent Regulations (WSER - 2011)

• Monitoring and Reporting (5 years)• Duration of overflow• Volume• No of days in month• Annual report

• Development of CSO Management Plan


Future CSO/SSO Requirements

• CSO• No increase in CSO frequency related to development

or re-development unless it occurs as part of an approved CSO management plan

• No CSO discharge during dry weather, except during spring thaw and emergencies

• Floatable material will be removed, where feasible• SSO

• SSO frequencies should not increase due to development or re-development

• SSOs should not occur during dry weather, except during spring thaw and emergencies


IRP WWTF Assumptions

• A number of existing WWTFs are a current compliance priority

• Harbour Solutions WWTFs will require upgrade to meet expected Environment Canada WSER requirements

• A number of other WWTFs will require upgrade to meet WSER requirements

• The WWTFs discharging to sensitive receiving streams and lakes will likely require significant upgrades beyond current effluent limits or WSER requirements over the planning period of the IRP (could require very costly treatment system upgrades to serve small customer base)


IRP CSO/SSO Assumptions

• Halifax Water will be developing plan to improve overflow compliance

• SSO• Fresh water discharges• Set target frequency based on events per average year• Prioritization by public health & receiving water impacts

• CSO• Marine water discharges• Set target frequency for recreational areas based on

events per aquatic recreation season (e.g. NW Arm)• Set target frequency for other marine waters based on

events per average year• Prioritization by public health & receiving water impacts


CSO/SSO Knee-of-the-Curve Analysis


Current Stormwater System Regulation

• Nova Scotia Environment (NSE)• Water Strategy• Stormwater approvals• Watercourse alterations• Wetlands Conservation Policy• Floodplain delineation and management• Erosion and Sediment Control Guidelines


Current Stormwater System Regulation

• Halifax Regional Municipality• Land use planning• Stormwater management and planning• Development approvals• Stormwater Management Guidelines• Lot grading


Future Stormwater System Regulation

• Watershed based planning and requirements• Ecosystem based requirements• Water balance criteria • Water quality requirements• Climate change adaptation• Low Impact Development


Growth


Growth Forecasting

• Actual growth rates for period 1996 to 2006 ~ +0.8%• Based on estimates for Regional Plan (2006 – 2026)

by HRM Planning • 2006 - 2026 growth rates extended to 2041• Range of growth rates being considered by IRP

• Low ~ 0.47%• Baseline ~ 0.81%• High ~ 1.14%


Growth Forecasting

• Growth allocation as per 2006 Regional Plan targets:• Rural areas ~25%• Suburban ~ 50%• Regional Centre ~ 25%

• Includes three suburban greenfield areas as per Regional Plan :• Port Wallace• Susie Lake• Sandy Lake


Funding of Growth

• Benefits-based funding approach will be used for growth (i.e. those who benefit should pay)

• Rate-based funding will cover regulatory and asset renewal system improvements

Rate of Growth Determines Timing of Needed Infrastructure Expansion



IRP Growth Assumptions

• IRP will plan infrastructure to meet requirements of future growth in a timely manner

• Planning period 2011 - 2041• IRP will follow Regional Plan/HRM Planning growth

projections• IRP will include a range of growth rates

• Low ~ 0.47%• Baseline ~ 0.81%• High ~1.14%


Demand Reduction Options


Demand Reduction Options*

*IRP Terms of Reference


Water Demand Reduction Options

• Water options aggregated into• Leakage reduction (e.g. non-revenue water, customer

leakage reduction, etc.)• Indoor/outdoor water efficiency

• Water rates considered in separate study• Water efficiency may also benefit wastewater system


Wastewater Demand Reduction Options

• Wastewater options aggregated into• I/I reduction (e.g. lateral repairs, lining, manhole

rehabilitation, extraneous flow reduction, construction standards)

• Impact of water efficiency• Wastewater rates considered in separate study• Wastewater effluent recycling or grey water reuse not

considered at this time (would require engagement of Nova Scotia Environment)


Stormwater Demand Reduction Options

• Stormwater demand reduction not within Halifax Water jurisdiction and hence not considered at this time

• HRM’s Regional Functional Stormwater Plan should examine this issue

• Halifax Water collaborating and providing input into the Regional Functional Stormwater Plan

Impact of Demand Reduction on Required Infrastructure Capacity


• Cost ($) of demand reduction must be balanced by benefits ($) from deferred infrastructure expansion

Current I/I Estimates for Selected WWTFs


WWTFWastewaterADF (m3/d)

Water ConsumptionADF (m3/d)

Percent I/I

EASTDartmouth 52,520 28,148 52%Eastern Passage 17,500 9,629 50%North Preston 575 355 45%

WESTMill Cove 22,200 12,703 49%

WESTHalifax 104,900 52,017 55%Lakeside Timberlea 3,800 2,263 46%Herring Cove 12,700 6,781 52%Percent I/I = 1-(90% of Water Consumption / Wastewater) 18-Aug-11

ADF = average daily flow


I/I Reduction Studies

• Areas shown represent historical studies where I/I was identified/quantified and efforts made to identify sources


Halifax Urban Core Water Demand

2006/07 2007/08 2008/09 2009/10 2010/1136,000,000

36,500,000

37,000,000

37,500,000

38,000,000

38,500,000

39,000,000

39,500,000

40,000,000

40,500,000

41,000,000

Cubic Metres

• Indoor/outdoor water use declined 5.9% since 2006/07

• Corresponds to ~ 1.2% per year reduction


IRP Demand Reduction Assumptions

• IRP will examine both water system and wastewater system demand reduction options• Water will include: leakage reduction and

indoor/outdoor water efficiency• Wastewater will include: I/I reduction and indoor water

efficiency• Stormwater demand reduction not included at this time

• A range of water and wastewater system demand reduction levels of implementation will be considered


Supply Options


Supply Options*

*IRP Terms of Reference


Water Supply Options

• Water supply options address expansion & upgrade needs• Water supply options aggregated into:

• Water treatment, pumping, transmission, storage and distribution new facilities and/or upgrade, and expansion of existing facilities to meet growth or regulatory drivers

• System operational improvement and optimization to enhance capacity or treatment

• Integration of above• Leakage and metering will be addressed in demand

reduction• Halifax Water already has a well advanced source water

protection program including strategic land management


Wastewater Supply Options

• Wastewater system supply options address system expansion and upgrade needs

• Wastewater system supply options aggregated into:• Wastewater treatment, pumping, transmission, storage

and collection new facilities and/or upgrade, and expansion of existing facilities to meet growth or regulatory drivers

• System operational improvement and optimization to enhance capacity or treatment

• Integration of above• Receiving water quality will be considered in setting

wastewater supply option priorities• Strategic land management needs consideration


Stormwater Supply Options

• Stormwater system supply options address system expansion and upgrade needs

• Stormwater system supply options aggregated into:• Stormwater collection (pipes, culverts and ditches) and

storage new facilities and/or upgrade and expansion of existing facilities to meet growth or regulatory drivers

• New deep storm sewers will be considered as part of the I/I reduction approach (look for cost share opportunities)

• Impacts of stormwater quality on receiving waters and strategic land management for stormwater planning fall outside HW mandate (will require a multi-party approach such as through the Regional Functional Stormwater Plan or watershed based management approach)


IRP Supply Options Assumptions

• IRP will examine water system, wastewater system and stormwater system supply options that fall within the mandate of Halifax Water and that address system expansion and upgrade needs

• Options will include:• New facilities and/or upgrade and expansion of

existing facilities to meet growth or regulatory drivers• System operational improvement and optimization to

enhance capacity or treatment


IRP Supply Options Assumptions … continued

• Integration of growth and regulatory upgrades and expansions with operational improvements and optimizations

• Review of Policy and Procedures (e.g. stormwater responsibilities – who does what?)

• New deep storm sewers will be considered as part of the I/I reduction approach (look for cost sharing opportunities)

• Strategic land management is relevant to water and wastewater systems at this time


Lunch


Round Table Discussion


Next Steps

• Consider comments received in relation to Technical

Conference #2 (deadline October 18, 2011, 4:00 PM)

• Issue summary of meeting actions and key points

• Assemble resource plans and supporting information

• Prepare for Technical Conference #3 and issue

information package


Next Steps


Questions or Comments?

Integrated Resource Plan

Documents

Transcript of Integrated Resource Plan