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HomeMy WebLinkAboutBusiness Plan DPR December 2013WATE USE WATE USE CALIFORNIA H A SPECIAL INITIATIVE: ADVANCING DIRECT POTABLE REUSE (DPR) AS A PART OF THE SOLUTION TO CALIFORNIA'S WATER SUPPLY CHALLENGES Business Plan 2012 — 2016 Vision Where direct potable reuse is widespread across California, and is a viable option for consideration by any water utility Goals To establish direct potable reuse as a water supply option that can be implemented by water utilities based on economic considerations Objective To remove by 2016 regulatory, scientific, technical, and attitudinal barriers to direct potable reuse, through rigorous scientific research; communicating the resulting findings and data through awareness programs; and, working with regulatory authorities to facilitate implementation of direct potable reuse (DPR) based on economic considerations Key Strategies 1. Define the agenda of research needed, building upon current pathways for implementing DPR 2. Raise new funds from interested and benefitting parties, dedicated to this program 3. Commission research studies and White Papers, based upon determined priorities 4. Utilize findings to develop communications /education /awareness programs 5. Recruit constituent partners to disseminate messages and coalesce support for DPR 6. Develop advocacy agenda and programs aimed at legislators, regulatory officials, local boards, and other influencers 7. Establish technical and practice recommendations for local water utilities to adapt and adopt DPR December 2013 Timing June 2012 — until funding goals reached June 2012 — until completion January 2013 — May 2013 June 2013 — August 2013 September 2013 — June 30, 2015 July 2014 -- December 31, 2014 January 2015 — December 31, 2015 Background Solicitation of constituent prospects Advocacy outreach and policy guidance Research Agenda Formulated; RFP process organized RFP for research projects and award of White Paper grants Research conducted Educational /awareness programs developed PR programs launched with partner groups The following facts provide the challenge to act and the opportunity to succeed: 1. California has adopted a goal of increasing the use of recycled water from approximately 0.65 million acre - feet per year (MAF /year), to 1.5 MAF /year by 2020, and then to 2.5 MAF /year by 2030 — approximately a four -fold increase over the next 18 years. California discharges 3.5 MAF /year to the ocean, so sufficient water is available to meet the recycling goal. However, this goal cannot be attained through the existing reliance on non - potable reuse since non - potable demand that can be feasibly served with a separate (and expensive) "purple pipe" distribution system is of insufficient magnitude to reach the State's recycling goals. Indirect potable reuse (IPR) is currently a source for water utilities that serve over seven million Californians, but IPR relies on groundwater recharge or surface water augmentation, which is infeasible in many parts of California due to unsuitable hydrogeology, groundwater contamination, and lack of surface water reservoirs. Potable reuse uses less energy than importing water and seawater desalination. The State's second largest city (San Diego) and other cities are considering direct potable reuse to supplement and stabilize their existing water supplies. 2. Furthermore, a bill passed by the CA Legislature in 2010 (SB x7 -7) aims to reduce urban water use by 20% and requires water use efficiency measures in the agricultural sector through a combination of requirements, compliance measures, and incentives. Water for agriculture is key to California's economy — especially with demand for food production projected to increase by 50% by 2050. SB x7 -7 encourages water recycling as a water use efficiency measure by counting every gallon of recycled water used to offset use of other supplies as a gallon counted toward the 20% goal. 3. California Senate Bill 918 (SB 918) was signed into law on September 30, 2010 and was sponsored by WateReuse California and Planning and Conservation League. It provides funding and a process for the California Department of Public Health (DPH) to 1) adopt regulations for indirect potable reuse for groundwater recharge by December 31, 2013; 2) adopt regulations for surface water augmentation by December 31, 2016, if an expert panel convened pursuant to the bill finds that the criteria would adequately protect public health; and 3) report to the legislature by December 31, 2016, on the feasibility of developing direct potable reuse. In addition, this initiative is also based on the results of the following efforts already undertaken by the water reuse community: 2 December 2013 • NWRI White Paper on Regulatory Aspects of Direct Potable Reuse in California, prepared by James Crook, Ph.D., P.E., and sponsored by the National Water Research Institute, April 2010. • Direct Potable Reuse Workshop — Workshop Report, prepared and sponsored by the California Urban Water Agencies, National Water Research Institute, and WateReuse California, September 10, 2010. • Direct Potable Reuse: A Path Forward, prepared by George Tchobanoglous, Harold Leverenz, Margaret Nellor, and James Crook, and sponsored by the WateReuse Research Foundation and WateReuse California, February 2011. • Water Reuse: Expanding the Nation's Water Supply Through Reuse of Municipal Wastewater, National Research Council, Water Science & Technology Board, January 2012. What WateReuse Expects to Accomplish Interest in DPR — the introduction of highly treated recycled water into a potable water supply distribution system or into a raw water supply immediately upstream of a water treatment plant — is increasing because of diminishing potable water supplies, difficulty in expanding the use of non - potable water in communities in California, the success of large indirect potable reuse (IPR) projects (Tchobanoglous et al., 2011), and challenges facing the discharge of wastewater effluent into the environment. The National Research Council's Water Science & Technology Board evaluated potable reuse (NAS, 2012) and found that 1) engineered processes can provide public health protection on par with currently - permitted natural barrier systems, and 2) the risk of contaminant exposure in the two planned potable reuse scenarios does not exceed the risk encountered from existing water supplies, and may be orders of magnitude lower. As a result, the use of DPR as a water supply alternative is receiving greater interest as an approach to augment potable water supplies and maximize recycled water use. The implementation of DPR would occur on a case -by -case basis, taking into consideration site - specific environmental and economic factors (Tchobanoglous et al., 2011). The decision to pursue DPR will involve factors associated with IPR in addition to other considerations specific to DPR. For communities that have limited groundwater recharge or reservoir augmentation options, DPR may offer the only approach to large -scale recycled water use. Other drivers include: the technologies to purify wastewater are well established; DPR may offer a cost - effective approach to diversifying a water portfolio; DPR may require less energy than other alternatives; and DPR avoids potential water quality issues associated with groundwater and surface water sources (Tchobanoglous et al., 2011; NAS, 2012). DPR would provide communities with another viable water supply alternative to increase water supply, diversify water portfolios, and provide maximum flexibility in managing water supply choices. Core Programmatic Activities Under This Initiative • Core programmatic activities to be undertaken include the following: Outreach and Education • Technical Research 3 December 2013 Each is described below. Outreach and Education Outreach and education of key stakeholder groups is needed. Key stakeholders groups include legislators, regulators, water professionals, water agency and other key regional policy- makers, environmental advocates, and ratepayers. Education and outreach will take different forms depending on the targeted stakeholder group(s). For purposes of this plan, the education and outreach effort is divided into two parts: regulatory /legislative and other stakeholders. The regulatory /legislative effort follows the model established by SB 918, which charges DPH with responsibility for evaluating the feasibility of DPR. The technical research program described in the next section is designed to meet DPH's needs in this regard. A regulatory /legislative outreach effort is needed to establish a liaison between the program and DPH to ensure that research is conducted and other activities undertaken in a manner consistent with DPH needs and obligations under SB 918. This liaison effort is expected to include meetings and possibly funding for and facilitation of expert panels to be convened to advise DPH. To assist the State meet its goals for additional recycling through additional potable reuse, including DPR, changes to State regulations and statute are needed. An initial list of barriers to such recycling and some possible solutions have been identified by WateReuse California, and barriers /solutions related to potable reuse are as follows: Barrier Solution 1. Water Board regulation of recycled water projects Clarify in statute that no RWB permit or approval is with no Basin Plan nexus and /or minimal water needed for tertiary recycled water use in settings in quality impacts. which recycled water is not discharged to land, The only current permitting structure for recycled surface water or groundwater, such as industrial water exists in Porter Cologne. As a result, the uses. Clarify that permitting authority rests with the Regional Water Boards (RWBs) regulate all recycled local building official in consultation with CDPH. Rely water uses regardless of the nexus with or impact on DPH's existing fee - for - service authority to fund on beneficial uses. The requirement to secure this if possible. permit coverage from the RWBs, while Move ATPW from Porter Cologne to a division simultaneously complying with more relevant dedicated to ATPW and establish DPH as the public health requirements, represents an permitting authority for potable reuse projects (right unnecessary burden and cost on water end users, now these are all groundwater recharge) which use recycling agencies, and RWBs. One example is ATPW because of limited potential for water quality indoor industrial reuse, where the RWBs generally degradation and strong interface with the potable issue permits for uses that are entirely within the water supply. Write this language broadly enough to regulatory sphere of the plumbing code and Titles cover raw water augmentation projects (discussed in 17/22 of the California Code of Regulations. bullet 3 below) so they can be accommodated when Another example is potable reuse with ATPW, regulations are developed. where the level of treatment (which is appropriate Establish a procedure for RWB review of ATPW for the planned reuse as domestic water supply) projects with a Basin Plan nexus to assure that the effectively results in a product that will not project is protective of identified beneficial uses. adversely impact water quality or beneficial uses. 4 December 2013 Barrier Solution 2. Current law (as established by SB 918, enacted in Distinguish between raw and treated water 2010) does not distinguish between "raw water augmentation with ATPW (both were called "direct augmentation" and potable reuse, which limits potable reuse" in SB 918). project development. Authorize DPH to permit raw water augmentation Raw water augmentation, which would allow ATPW and develop regulations only if criteria are to be blended with raw water sources upstream of recommended by an expert panel. drinking water treatment plants is considered between DPR and IPR; the role of natural treatment and environmental buffers in "direct potable reuse" under SB 918, when in fact, public acceptance; opposition to DPR; why the public accepts DPR. this practice could be implemented with multiple • Develop survey questions and perform the survey. barriers on par with indirect potable reuse projects. • Use agreed -upon terminology and information obtained from stakeholder surveys. The estimated cost of this activity through 2016 is $850,000. An outreach and education program to address other stakeholder groups is expected to address the following needs: Research Need Description 1. Develop • Develop water recycling terminology that is understandable by stakeholders and Appropriate consistent with regulations to instill credibility and product confidence. Terminology . Examples where the resolution of key terms is needed include product water, non - potable reuse, and DPR versus IPR. 2. Survey • Identify stakeholders. Stakeholders . Determine the purpose of surveys. For example, how the public differentiates between DPR and IPR; the role of natural treatment and environmental buffers in public acceptance; opposition to DPR; why the public accepts DPR. • Develop survey questions and perform the survey. 3. Develop • Use agreed -upon terminology and information obtained from stakeholder surveys. Messages . Identify the audience (which should include supporters, opponents, the water reuse community, the water community). • Identify key objectives and the content of messages. 4. Develop a • Determine when to initiate outreach so that efforts are proactive and consider all Communications supply alternatives. Strategy • Incorporate experience learned from successful and unsuccessful potable reuse projects and other critical factors. • Identify the types of information and methods of communication that will be most useful. • Identify strategies for community leaders /decision makers and the press. • Identify strategies to work with opponents. 5. Implement the • Use the information developed by the prior tasks to implement elements of the Communications Communications Strategy that are not project- specific. Strategy The Australian Water Recycling Centre of Excellence (AWRCE) has undertaken a project to develop a "National Demonstration Education and Engagement Program" (NDEEP). The goal of the $10 million project is that key 5 December 2013 stakeholders in Australia see recycled water as acceptable 'alternative water' for augmenting drinking water supplies. The NDEEP is expected to support successful public engagement and addresses stakeholder concerns through the provision of contemporary scientific information on water recycling for drinking purposes. The project is managed by the University of New South Wales. The NDEEP is expected to provide valuable information that can be used to further the California DPR initiative. The estimated cost of this programmatic area is $1.3 million. Technical Research Five technical research topics were developed in the Direct Potable Reuse: A Path Forward study and 14 were identified in the NAS report. These research topics are the basis of the science and technology component of the DPR Development Program. Once these research areas are completed, the knowledge base would be available to support DPH's evaluation of DPR pursuant to SB 918 and potentially to design and develop operating plans for proposed DPR projects. SB 918 requires DPH to convene a panel of experts to provide technical advice regarding the feasibility of DPR. Since a goal of the DPR Initiative is to provide the necessary research to support the feasibility evaluation, input from the panel to confirm the needed technical research is considered necessary. Key technical research has been initiated based on the Direct Potable Reuse: A Path Forward study and NAS studies and consultation with DPH and technical experts pending formal review by the SB 918 panel. These research projects currently in progress and planned for 2013 are as follows: 0 December 2013 Budget and Research Project Title Funding Mix DPR Projects Launched Prior to the California DPR Initiative (2011— early 2012) Monitoring for Reliability and Process Control of Potable Reuse $400,000 by WRRF Applications (WRRF 11 -01) $1,450,000 by Research Team Equivalency of Advanced Treatment Trains for Potable Reuse $375,000 by WRRF (WRRF 11 -02) $868,000 by Research Team Evaluation of Risk Reduction Principles for Direct Potable Reuse $232,814 by WRRF (WRRF 11 -10) $87,000 by Research Team Guidelines for Engineered Storage Systems (WRRF 12 -06) $100,000 Award Pending $1,107,814 by WRRF (pre -DPR Initiative) Total Funding Applied Before the DPR Initiative Was Launched $2,005,000 by Research Team $3,112,814 combined total 0 December 2013 Scheduled DPR Research Projects (formulated in late 2012 and board - approved in early 2013) Integrated Management of Sensor Data for Real -Time $250,000 Decision Making Model Public Communications Plan for Advancing Direct $300,000 Potable Reuse (DPR) Acceptance CCP Assessment to Quantify Robustness and Reliability of $250,000 Multiple Treatment Barriers of DPR Scheme Evaluation of Source Water Control Options and the Impact $100,000 of Selected Strategies on Direct Potable Reuse (DPR) Blending Requirements for Water from DPR $100,000 Treatment Facilities DPR Demonstration Project $2,100,000 Packed Bed Removal of Organic Oxidation Products from an $175,000 RO -AOP Treatment Trains Total Planned Funding: $3,275,000 Total of Scheduled Research Funding $4,382,814 budgeted by WRRF in FY2013 (FY2013 commitments; does not include future funds to be $2,005,000 scheduled from contractors 2013 remitted through this DPR Initiative) $6,387,814 combined total budgeted Roles WateReuse Research Foundation The mission of the WateReuse Research Foundation is to conduct and promote applied research on the reclamation, recycling, reuse, and desalination of water. The Research Foundation is an educational, nonprofit public benefit 501(c)(3) corporation that conducts applied research on behalf of the water and wastewater community for the purpose of advancing the science of water reuse, recycling, reclamation, and desalination. The Foundation's research covers a broad spectrum of issues, including chemical contaminants, microbiological agents, treatment technologies, salinity management, public perception, economics and marketing. The Foundation's research supports communities across the United States and abroad in their efforts to create new sources of high quality water while protecting public health and the environment. It is the only "water non - profit" organization focused exclusively on water recycling and desalination, and after 12 years of facilitating academic style independent research (141+ projects launched; 75 still active) exclusively on the science of water reuse, it is uniquely qualified to lead, manage and direct new scientific ventures into IPR and DPR. 7 December 2013 Additionally, with its privileged relationship with California water agencies and their allies that facilitate much of the nation's water reuse history, the WateReuse Research Foundation is the natural choice to execute this program, and can ensure appropriate treatment of California's unique situation and needs. The WateReuse Research Foundation will be responsible for technical and public acceptance research with input from WateReuse California. As a hallmark of this program and plan, WRRF will utilize its process and structures for soliciting proposals for original research, the evaluation of submissions, and the commissioning /contracting of awards to investigators and consultants. The Foundation's Research Advisory Committee (RAC), composed of a cross section of academic, technical and operational experts, will formulate RFPs, White Paper criteria, and their issuance. With each proposal submission for research or expert analyses, separate Project Advisory Committees (PACs) will be formed, using scoring tools and evaluative processes to ensure rigorous evaluation and fair selection of prospective awards. Research contracts will be awarded using agreement templates calling for measurable deliverables, budget discipline, and periodic reporting and adherence to proposal objectives. WateReuse California The mission of the California Section of the WateReuse Association, a nonprofit organization, is to promote the responsible stewardship of California's water resources by maximizing the safe, practical, and beneficial use of recycled water and by supporting the efforts of the of WateReuse Association. Outreach is a key aspect of the mission of WateReuse California at the state and local levels. As such, WateReuse California is actively engaged in working with appointed and elected officials to affect both regulations and legislation that will move recycled water projects forward in a streamlined manner. WateReuse California also provides our membership with expert testimony to support local projects that are consistent with our mission, as well as assists new, existing, and challenging water recycling projects. WateReuse California will be responsible for implementing the education and outreach component and providing input to technical and public acceptance research. National Water Research Institute The National Water Research Institute (NWRI) is expected to be a valuable partner in non - advocacy elements of this effort, including convening panels of experts consistent with SB 918. NWRI, along with WateReuse California, will play a particular close and technical role working with California Department of Public Health (CDPH), including the development of their needs, the formation of the expert panels, their public education and dissemination requirements, and the next steps to developing subordinate regulations and legislation needed to meet the goals for feasibility of DPR. Other Organizations The Bureau of Reclamation, Environmental Protection Agency, Water Research Foundation, and the Water Environment Research Foundation may consider some of the needed research to be within their traditional areas of interest and, if so, partnerships will be formed to conduct research for our mutual benefit. 0 December 2013 Funding — Financial Requirements The following table summarizes the estimated cost of the three program areas: Program Area Estimated Cost Through 2016 ($ millions)a Education and Outreach Regulatory /Legislation $0.85 Other stakeholders 1.30 Future and Additional Technical research $3.85b Total $6 .00a a These are estimates; the December 2012 research planning workshop identified many millions more needed to undertake all 22 identified research topics. Numbers subject to change as preliminary research yields new opportunities and as the regulatory and political climate evolves. b The total estimated cost of technical research is $6.25 million, and the WateReuse Research Foundation estimated share of this is $3.85 million, with the balance provided by research project participants. This estimate does not reflect input from DPH. We have estimated that $6 million would be the minimum required to undertake this initiative in all aspects — a body of original research; launching public awareness programs; and a coordinated track of outreach and engagement with key officials and interested parties. This is a minimum; of course, public relations and education campaigns can consume many millions more by themselves. Accordingly, we have established as a goal $10 million as needed to ensure full implementation of the plans with the highest quality and completeness. The estimated start -up requirement of $6 million is designed to be "new money' — newly derived funds above and beyond annual dues and fees paid by members to the sponsoring organizations. External funding from companies, professional firms, philanthropists, and private foundations is welcome and will be sought. The base $6 million (estimated need) would be sought from four primary sources: • 20 -30+ major public water agencies in California; • 10 -15 consulting engineering firms doing business in the water reuse industry; and • The California Water Foundation in the form of a matching grant; • Private foundations and philanthropists, water technology and equipment manufacturers, and other companies using or impacting water in their business operations. The fundraising plan calls for, first, water agencies to support the initiative by providing approximately $2 million, which will hopefully convince the California Water Foundation to provide matching funds, or a seven - figure grant. Together, with these standards of giving, we will approach CEOs of major consulting engineering firms and ask them to provide $2 million as their "fair share," taking into account the fact that they would benefit by a) conducting some 9 December 2013 of the research and b) being awarded future design /build /operate contracts which will result from DPR implementation. External prospects, motivated by such "internal" leadership, would be asked to donate a like aggregate amount. We believe we can secure $2 million from large strategic foundations in the State focused on water issues, and an additional $4 million from private philanthropists who care about environmental, resource, and development issues pertaining to California. In order to be successful overall, we need a number of pledges from water agencies at the six - figure level ($100,000 +), and from consulting engineering firms, we need several pledges at the $250,000+ level as well as a host of others at six - figures. These are the standards of giving needed to ensure $6 million and up to $10 million is raised. To date, progress in reaching out to water agencies has been good, shown as follows: PLEDGES CONFIRMED BY BOARDS OR BY AUTHORITY OF GMs Metropolitan Water Dist. of So. California (Jeffrey Kightlinger, Debra Man) $500,000 Dublin San Ramon Services District (Bert Michalczyk /David Requa) $150,000 Water Replenishment District of SoCal (Robb Whitaker) $110,000 South Orange County Agencies (c /o Joone Lopez) $108,000 Moulton Niguel, El Toro, Santa Margarita, South Coast, Laguna Beach County, Trabuco Canyon, San Clemente Orange County Water District (Mike Markus) $100,000 West Basin Municipal Water District (Rich Nagel) $100,000 Santa Clara Valley Water District (Jim Fiedler) $100,000 Eastern Municipal Water District (Paul Jones) $100,000 Los Angeles County Sanitation Districts (Grace Robinson Chan) $100,000 Orange County Sanitation District (Robert Ghirelli /James Ferryman) $ 50,000 Western Municipal Water District (John Rossi) $ 50,000 Irvine Ranch Water District (Paul Cook) $ 50,000 City of Santa Rosa Utilities Department (David Guhin) $ 50,000 Sonoma County Water Agency (Grant Davis) $ 50,000 Three Valleys Municipal Water District (Richard Hansen) $ 50,000 Upper San Gabriel Valley Municipal Water District (Shane Chapman) $ 50,000 City of San Diego Water Deaprtment ( Marsi Streirer, Amy Dorman) $ 50,000 Las Virgenes Municipal Water District (Dan Pedersen) $ 50,000 Delta Diablo Sanitation District (Gary Darling) $ 40,000 Marin Municipal Water District (Larry Russell, Krishna Kumar) $ 30,000 Elsinore Valley Municipal Water District (Norris Brandt) $ 25,000 Town of Windsor, CA (Richard Burtt) $ 20,000 Burbank Water & Power (Ronald Davis, Bill Mace) $ 20,000 Los Angeles Dept. of Public Works (Adam Ariki) $ 20,000 Las Gallinas Valley Sanitation District (Mark Williams) $ 20,000 10 December 2013 City of Pleasanton, CA (Daniel J. Smith) $ 10,000 Rancho California Water District (Matthew G. Stone) $ 10,000 Castaic Lake Water Agency (Dan Masnada) $ 10,000 Sacramento Regional County Sanitation Dist. (Prabhakar Somavarapu) 10,000 TOTAL COMMITMENT FROM WATER AGENCIES: $2,033,000 REQUESTS MADE —Attended Leadership Dinner and /or Received Individual Briefings San Diego County Water Authority (Maureen Stapleton, Toby Roy) City of Los Angeles, Bureau of Sanitation (Enrique Zaldivar) Monterey Regional Water Pollution Control District (Keith Israel) Central Contra Costa Sanitary District (Don Berger) Helix Water District (Mark Umphres) Padre Dam Municipal Water District (Allen Carlisle) San Alijo Joint Powers Authority Water Reclamation (Michael Thornton) Ventura Water (Shana Epstein) TOTAL POTENTIAL REPRESENTED IN REQUESTS MADE: $200,000+ REMAINING MAJOR AGENCIES — Those We Need to Solicit San Jose Water Company El Dorado County Water Agency Long Beach Water Department Estero Municipal Improvement District City of San Diego Public Utilities, Water Ops Fairfield Public Works Water Division City of San Jose Environmental Services Foster City Public Works Fresno Department of Public Utilities Ramona Municipal Water District Golden State Water Company The Amador Water Agency Goleta West Sanitary District Anaheim Public Utilities Hi- Desert Water District Apple Valley Ranchos Water Companies Humboldt Bay Municipal Water District Azusa Light & Water Imperial Irrigation District Bolinas Community Public Utility District Lassen Municipal Utility District California Water Service Company Lodi Calleguas Municipal Water District Mammoth Community Water District Camarillo Sanitary District Marina Coast Water District Camrosa Water District Mesa Consolidated Water District Carlsbad Municipal Water District Merced Irrigation District Carmichael Water District Modesto Irrigation District Central Basin Municipal Water District Mojave Water Agency Central Coast Water Authority Montecito Water District Chino Basin Watermaster Monterey Park Public Works Citrus Heights Water District Monterey Peninsula Water Mgt District Coachella Valley Water District Oakdale Irrigation District Crescenta Valley Water District Otay Water District Cucamonga County Water District Palmdale Water District Davis Public Works Department Palo Alto Desert Water Agency Palo Alto Utilities Department Dominguez Services Corporation Park Water Company 11 December 2013 Pasadena Water & Power Redding Rincon del Diablo District Rio Linda /Elverta Community Water District San Benito County Water District San Bernardino Valley Municipal Water District San Juan Water San Lorenzo Valley Water District Santa Barbara Santa Clara Public Utilities Santa Monica Water Division Shasta Lake Sierra Pacific Resources - Water Soquel Creek Water District South San Luis Obispo Cty, Wastewater Utility Southern California Water Company Southwest Water Company Stege Sanitary District Stinson Beach County Water District Suburban Water Systems Sweetwater Authority Tehachapi- Cummings County Water District Thousand Oaks /Camarillo District Turlock Irrigation District Union Sanitary District Vallecitos Water District Valley Center Municipal Water District Vandenberg Village Community Services District Vista Irrigation District Walnut Valley Water District Yucaipa Valley Water District Top prospects in the consulting engineering sector (having significant "water business ") are as follows: AECOM Kennedy /Jenks Alan Plummer Associates Lee & Ro Black & Veatch Malcolm Pirnie /ARCADIS Brown & Caldwell MWH Global Carollo Engineers Parsons CDM Smith RBF Consulting /Baker CH2M Hill RMC Water and Environment Epcor Water Separation Processes Inc (SPI) GHD Stratus Consulting Greeley & Hansen Suez Environnement Hazen & Sawyer Tetra Tech HDR Engineering /Stetson Trussell Technologies H2O Engineering URS Corp. Jacobs Engineering Veolia Leadership has already been shown by ten large /major consulting engineering firms, either globally or with significant presence and markets in California. We've received six pledges at $250,000 each; four at $150,000 and three other pledges under $100,000 each. We have also received a $250,000 pledge from United Water /Suez. Together, these pledges from firms doing business with water agencies total $2,500,000 in support! These pace- setting pledges, especially those at $250,000, will inspire other leading consulting engineering firms to make similar, or extraordinary, pledges in turn — we expect two more pledges at the $250,000+ level, and a host of other pledges yet to come. Securing such will ensure our ability to raise a lot more than the budgeted $2 million in pledges from this important constituent sector. What a success to date! Furthermore, TrojanUV, a leading supplier to the industry, has pledged $250,000 as well. We are just beginning to approach this allied sector to join in, and believe at least another $2 million can be raised from it. 12 December 2013 With the $2,023,000 raised to date from water agencies, the $2,500,000 raised to date from consulting engineering firms, and with TroianUV's $250,000 pledge, we've achieved a grand total of $4,783,000 to date in support of this Initiative on behalf of California and its water future. Additionally, six water agencies in the Bay Area along with Los Angeles Department of Water and Power banded together through the Water Research Foundation to amass $600,000 in support, specifically designated for three of the essential DPR research projects from the agenda. With this allied support, a grand total of $5,383,000 has been raised to advance DPR in and for California. Significant momentum and results have been achieved by the first two crucial internal sectors — water agencies and consulting engineering firms. As our efforts continue, we seek to expand the circle of support, but we are well on the way to success, hitting key fundraising markers to date. Support from the water industry is key to eliciting external confidence and support as well. Larger pledges first set the pace and evoke other large, extraordinary pledges. Leadership attracts other leading entities, those synonymous with the industry, and those wanting to capitalize on the future. These three precepts represent our overall strategic philosophy which guides our efforts. 13 December 2013