1 2014 ACEC Annual Convention,Water Control--Federal Markets Session 2014 ACEC Annual Convention, Washington, DC April 29, 2014
2 Agenda The Nature Conservancy Overview Strategic SituationTNC’s Water Infrastructure Priority America’s Watershed Initiative America’s Watershed Report Card Communities of Practice Questions and Discussion 2
3 The Nature Conservancy (TNC) and WaterTNC 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…
4 A scarce resource… Global recognition that water is a fundamental risk…this is the first key point. Water: 97% salty; 2.5% ice. We run the whole show on half of one percent. The supply is constant – never changes.
5 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!
6 Drought pushes Mississippi river water levels to historic low Drought Burns Livestock Industry Drought pushes Mississippi river water levels to historic low Disaster Declared in 26 States as Drought Sears in U.S. Worst drought in decades could affect U.S. energy markets Iowa crop losses soar past $1 billion What is changing? Our demand – population is growing; food production needs to double; largest consumer of water – agriculture – needs to double by 2050, and projections are that water use by agriculture will grow by 19%. And we’re not doing a very good job of managing it. U.S. Drought Persisting Seen as Threat to Corn, Soybeans
7 How the world solves its problems today…Global annual expenditure water, 2010 Total ~$ 500 billion1 500 bn Water Resources Infrastructure, $20 billion Desalination, $15 billion Drinking Water, $60 billion Waste Water, $80 billion Industrial, $15 billion Capital expenditures, ~$200 billion Operating expenditures, ~$300 billion Source: EDA, University of Wisconsin, Milwaukee
8 Global Infrastructure InvestmentSource: McKinsey Global Institute/McKinsey Infrastructure Practice, January 2013
9 Total Public Spending on Infrastructure( , in 2009 Dollars) ($B) O&M Spending Water Resources Capital Spending Water Resources O&M Spending Source: CBO Study, “Public Spending on Transportation and Water Infrastructure”, November 2010
10 USACE Program Trends FY01-16 Military Civil Total USACE FY 08 FY 03Program (Budget Authority) ($M) FY 08 Total USACE FY 03 FY 15 Military Civil Fiscal Year FY13 Constant $ (Apr 13) Military = MILCON, RDT&E, RE, Reimb, OCO, ARRA Civil = Direct+Reimb, FY05-13 Incl Supplemental
11 USACE Civil Works Backlog USACE Civil Works Backlog[Construction] Billions Backlog Projects by Business Line
12 USACE Operations & Maintenance Backlog ?
13 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. Civil Works Transformation…Panel members yesterday told you a great deal about our progress in each of the four transformation initiatives: Planning Modernization, Budget Development, Methods of Delivery and Infrastructure Strategy. In a few minutes BG Jackson will bring you up to date on how some of these initiatives are being carried out in the South Atlantic Division. What does a “transformed” USACE Civil Works program look like?
14 Partnering to advance our Nation’s WaterwaysWater Infrastructure Priority Strategies Shape Policy (e.g., WRDA) Build the Partnership (e.g., AWI) Demonstrate Success [Help] tell the [USACE] Story Help [USACE] transform the Civil Works process Continue to [help USACE] partner with stake-holders, industry and beneficiaries of the systems [Help] Facilitate a Watershed approach Help the Nation prioritize efforts and projects Outcomes (by 2020) Systems Approach to Watershed Management and Budgeting Double the National investment in Water Resources Infrastructure (to $10 bil/year) Develop alternative financing strategies to attract $100 mil in private capital Existing USACE Water Resources Infrastructure optimized as multipurpose projects, to include environmental benefits (Target: 50%) New Federal investments in Water Resources Infrastructure incorporate natural infrastructure components (Target: 80%) Transparent Facility Management/Asset Management approach to managing national water infrastructure
15 Water Infrastructure PriorityFocus on a National Scale Initial Steps: Determine where the Federal investment is actually going by watershed (2 and 4 digit HUC) 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) Analyze the actual funding level vs. requirements Develop findings and draw conclusions Inform National dialogue Make policy recommendations or suggestions 15
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17 Hydrologic Unit Codes (HUCs)What is a Watershed? Name Level Digits Average Size # of HUCs Example Name Example Code (Square Miles) (Approx) (HUC) Region , Upper Miss River Subregion , Illinois River Basin , Mackinaw Subbasin ,200 Mackinaw Watershed , Upper (40-250K acres) Mackinaw Sub , Bray Creek watershed (10-40K acres) Federal budget focus is above the line
18 Agenda The mission of America’s Watershed is to promote collaborative solutions to watershed-wide land- and water-use challenges that optimize benefits for society, the economy and nature Collaboration of groups, industry, agencies and non profits Committed to seeking mutually beneficial outcomes in contrast to single purpose advocacy. support the strong leadership present in many tributary watersheds – Whole watershed - America's Watershed also seeks to link and augment these efforts, creating a broader partnership that can serve as a unified voice for the whole system, and support the effective resolution of issues that span multiple regions— not brand new – the key leaders have been working on these issues for decades, working together for more than 5 years - summit 2012, intercoastal summit 2010, previous gatherings and initiatives prior
19 Water Resource Region Report CardsDiverse Sectors Flood Protection Water Supply Environment Recreation Navigation Agriculture Water Supply Flood Protection Energy & Industry more than half the goods and services consumed by the citizens of the United States are produced with water that flows through the larger watershed Mississippi River. More than 500 million tons of cargo move up and down the river annually – agricultural and industrial products gateway to the world; front door to bring in imports from the world to the interior of North America Vibrant fishing and seafood industry Outdoor recreation The Mississippi River basin is America’s heartland - producing crops, goods, cities and our history Water Resource Region Report Cards (Relationship to the ASCE Report Card?)
20 Multi-Purpose Reservoirs National/Global OutcomesTNC Operational Foundation Build an Enduring Capability and Influence NAFW Community of Practice (CoP) Demonstration Projects Thru CoPs North America Team Local Project Delivery Teams Navigation Aquatic Ecosystems Water Mgmt & Control Multi-Purpose Reservoirs Stream Connectivity Hydropower Governance Water Supply? Water Quality? When Reinforces National/Global Outcomes Replicated At Scale Influences Shapes Policy Multi-State Watersheds CoP – Community of Practice 1/21/2014
21 Questions & Discussion21