November 8-10, 2006 Westin Mission Hills Resort Rancho Mirage, California aglf

1. November 8-10, 2006 Westin Mission Hills Resort Rancho Mirage, California www.aglf.org 26th Annual Fall Conference Water Supply, Demand, and Financing: New Models and New Opportunities by Lynn Sherman lsherman@winstead.com 1

2. □ Lawyer □ Lobbyist □ □ Water Developer Fast-Talking Texan X X X X

3. Lynn Sherman “He’s just as full of (expletive) as a Christmas turkey. I promise you.” Harvey Everheart General Manager, Mesa Underground Water Conservation District, quoted in the San Antonio Express News, August 13, 2006

4. Let’s go

5. How much of the Earth’s water is usable by humans? less than 1%

6. 0

7. Where is our renewablefreshwater in the United States?

8. Available Precipitation 1934 to 2002 Available Precipitation = monthly precipitation — potential evapotranspiration. Source: Roy, Summers, and Goldstein, Sustainable Water Resources Roundtable presentation, March, 2004.

9. 0

11. DEMAND

12. U.S. Population Growth Since 1850 Population Year

13. Where will population growth occur in the future?

14. Calif., New Mex., Ariz., and Nev. willincrease populationby more than 50% between 1995 & 2025. Source: GAO, July 2003, “Freshwater Supply: States’ Views of How Federal Agencies Could Help Them Meet the Challenges of Expected Shortages,” GAO-03-514, Figure 20.

15. Density in 2025 Source: S. Roy, et al., November 2003, “Water Sustainability in the United States and Cooling Water Requirements for Power Generation,” Universities Council on Water Resources, Water Resources Update, issue 126, Pages 94-99..

16. All these people require water. Lots of it!

17. Total Nationwide Usage in gallons per person per day 1,500 to 2,000 gallons per person

18. California, Texas, & Florida account for¼ of all withdrawals. Which states use the most water? Source: USGS, “Estimated Use of Water in the United States in 2000,” Circular 1268.

19. Where is usage most intense? Source: USGS, “Estimated Use of Water in the United States in 2000,” Circular 1268.

20. Breakdown of Uses (excluding hydroelectric power) USGS

21. What are the trends for “consumptive” uses?

22. municipal growth is in Irrigation ≈ 65% Source: derived from USGS’s “Estimated Use of Water in the United States” published every 5 years from 1950 to 2000.

23. 180 gallons a day Personal Household Use post-2000 145 gallons a day 1950

24. The US leads the world in water usage.

25. Only 3% of tap water is used for drinking. Source: American Water Works Association, ““Residential End use of Water”.

26. Over Used and Under Supplied

27. 0 for the geographically challenged… Source: WaterGAP 2.0 - December 1999

28. Source: Lieutenant General Robert B. Flowers, Chief of Engineers, U. S. Army Corps of Engineers, before the Subcommittee on Water Resources and Environment, Committee on Transportation and Infrastructure, United States House of Representatives, May 7, 2003.

29. Within the next 10 years, 36 states expect shortages under normalwater conditions; underdrought conditions, 46 statesexpect shortages. Source: GAO, July 2003, “Freshwater Supply: States’ View of How Federal Agencies Could Help Them Meet the Challenges of Expected Shortages, GAO-03-514.

30. Cities surveyed that do not have an adequate 20-year water supply? ___ 35% Source: U.S. Conference of Mayors Urban Water Council, “National City Water Survey 2005.”

31. Basis of planning = Drought

32. “at least some part of the United States has experienced severe or extreme drought conditions every year since 1896.” Source: GAO, July 2003, “Freshwater Supply: States’ Views of How Federal Agencies Could Help Them Meet the Challenges of Expected Shortages,” GAO-03-514, p. 15.

33. Areas Prone to Drought 1895 to 1995 Source: GAO, July 2003, “Freshwater Supply: States’ Views of How Federal Agencies Could Help Them Meet the Challenges of Expected Shortages,” GAO-03-514, Figure 3.

34. Adequacy of Stored Supplies During a Significant Drought Source: S. Roy, et al., October 2005, “Evaluation of the Sustainability of Water Withdrawals in the United States, 1995 to 2025,” Journal of the American Water Resources Association, calculated using typical withdrawals and the lowest 3-year rolling average precipitation between 1934 and 2002 based on data from Solley et al. (1998) and CPC (2003).

35. Another Perspective: Thermoelectric Cooling Constraints Source: S. Roy, et al., November 2003, “Water Sustainability in the United States and Cooling Water Requirements for Power Generation,” Universities Council on Water Resources, Water Resources Update, issue 126, Pages 94-99..

36. Breakdown of types of water used

37. Breakdown of types of water used 0 Reclaimed Water (for all uses, except hydroelectric) 515 bgd = Estimated dependable yield for contiguous United States (1980) ↨ Surface Water ≈ 80% Groundwater ≈ 20% 0 Source: USGS, “Estimated Use of Water in the United States in 1975,” Circular 765, Table 4, citing Woodward (1957), p. 49, with minor modifications. Source: derived from USGS’s “Estimated Use of Water in the United States” published every 5 years from 1950 to 2000.

38. Are we keeping up? NO

39. ALMOST ON PAR WITH 50’S DROUGHT Developed Supplies Per Capita 1950’s TODAY

40. NEEDED SUPPLIES POPULATION DOUBLES IN 2050 UNPARALLELED GROWTH EXISTING SUPPLIES DECREASE BY 20% DAM BUILDING ERA “NO DEVELOPMENT” PERIOD FUTURE 1980’s to Date 1960’s-1980’s Water Development Timeline DEVELOPED SUPPLIES 1950’s DROUGHT

41. Number and Capacity of Large Reservoirs Completed by Decade Source: GAO, July 2003, “Freshwater Supply: States’ Views of How Federal Agencies Could Help Them Meet the Challenges of expected Shortages,” GAO-03-514.

42. Currently, our “dam builders,” the Bureau of Reclamation and the Corps of Engineers, have only one large water storage project underway!

43. In addition, our reservoirs are silting up at a rate of about 1.5 million acre-feet a year. Source: GAO, July 2003, “Freshwater Supply: States’ Views of How Federal Agencies Could Help Them Meet the Challenges of Expected Shortages,” GAO-03-514 (citing a 1995 Resources for the Future report).

44. 2005 card How is America’s water and wastewater infrastructure graded? D- Grade= American Society of Civil Engineers, Infrastructure Report Card 20005

45. What about water quality?

46. According to the EPA, 45% of assessed waters nationwide do not fully meet water quality standards Source: ASCE, et al., September 2004, “All Dried Up: How Clean Water is Threatened by Budget Cuts.”

47. Also, conditions of coastal areas are largely Fair to Poor. Source: EPA, December 2004, “National Coastal Condition Report II. Office of Research and Development/Office of Water,” EPA-620/R-03/002 (evaluating the overall national and regional coastal condition between 1997 and 2000).

48. So, there’s a lot to be done

49. How much will it cost over the next 20 yrs? Between $245 billion and $1.2 trillion Depends on who you ask. Sources: EPA, June 2005, “Drinking Water Infrastructure Needs Survey and Assessment,” EPA 816-R-05-001; General Accounting Office (GAO), March 2004, “Water Infrastructure: Comprehensive Asset Management Has Potential to Help Utilities Better Identify Needs and Plan Future Investments,” GAO-04-461; Congressional Budget Office (CBO), Nov. 2002, “Future Investment in Drinking Water and Wastewater Infrastructure”; EPA, Sept. 2002, “Clean Water and Drinking Water Infrastructure Gap Analysis”; Water Infrastructure Network (WIN), April 2000, “Clean and Safe Water for the 21st Century – A Renewed National Commitment to Water and Wastewater Infrastructure.”

50. More than half is for currentneeds Source: EPA, June 2005, “Drinking Water Infrastructure Needs Survey and Assessment,” EPA 816-R-05-001.