Application of the WFD cost proportionality principle to diffuse pollution mitigation: A case study for Scottish Lochs

http://www.sciencedirect.com/science/article/pii/S0301479711003963

Abstract: The Water Framework Directive (WFD) aims to deliver good ecological status (GES) for Europe’s waters. It prescribes the use of economic principles, such as derogation from GES on grounds of disproportionate costs of mitigation. This paper proposes an application of the proportionality principle to mitigation of phosphorus (P) pollution of 544 Scottish lochs at national and local water body scales. P loading estimates were derived from a national diffuse pollution screening tool. For 293 of these lochs (31% of the loch area), GES already occurred. Mitigation cost-effectiveness was assessed using combined mitigation cost curves for managed grassland, rough grazing, arable land, sewage and septic tank sources. These provided sufficient mitigation (92% of national P load) for GES to be achieved on another 31% of loch area at annualised cost of £2.09 m/y. Mitigation of the residual P loading preventing other lochs achieving GES was considered by using a “mop-up” cost of £200/kg P (assumed cost effectiveness of removal of P directly from lochs), leading to a total cost of £189 m/y. Lochs were ranked by mitigation costs per loch area to give a national scale marginal mitigation cost curve. A published choice experiment valuation of WFD targets for Scottish lochs was used to estimate marginal benefits at national scale and combined with the marginal cost curve. This gave proportionate costs of £5.7 m/y leading to GES in 72% of loch area. Using national mean marginal benefits with a scheme to estimate changes in individual loch value with P loading gave proportionate costs of £25.6 m/y leading to GES in 77% of loch area (491 lochs).

Highlights:
► The costs and effectiveness of methods to mitigate P pollution of Scottish lochs are examined.
► A national scale study valuing restoration of Scottish lochs to good ecological status is described.
► Proportionate mitigation cost £5.7 m/y leading to good status in 72% of the national loch area.
► A proposed loch scale approach gives proportionate mitigation in 77% of national loch area.

by A.J.A. Vinten 1, J. Martin-Ortega 1, K. Glenk 2, P. Booth 1, B.B. Balana 1, M. MacLeod 2, M. Lago 3, D. Moran 2, M. Jones 1
1. The James Hutton Institute, Craigiebuckler, Aberdeen AB15 8QH, UK; Tel.: +44(0)1224 395165; fax: +44(0)1224 31156
2. Land Economy and Environment Group, SAC, West Mains Road, Edinburgh EH6 5AT, UK
3. Ecologic Institute, Pfalzburger Strasse 43/44, 10717 Berlin, Germany
Journal of Environmental Management via Elsevier Science Direct www.sciencedirect.com
Volume 97; 30 April 2012; Pages 28-37
Keywords: Water Framework Directive; Disproportionality; Phosphorus pollution; Lochs; Screening tool; Scotland

New York City Department of Environmental Protection (DEP) Proposes Enhanced On-Site Stormwater Controls for New Construction Projects to Improve Harbor Water Quality

http://www.nyc.gov/html/dep/html/press_releases/11-91pr.shtml
On September 29, 2011 Environmental Protection Commissioner Carter Strickland proposed a rule requiring new construction and major building alteration projects to capture more stormwater runoff, provide additional capacity in the combined sewer system and reduce street flooding. New York City, like other older urban areas, is largely serviced by a combined sewer system where stormwater and wastewater are carried through a single pipe. During heavy storms, the system can exceed its capacity and must discharge a mix of stormwater and wastewater — called a combined sewer overflow, or CSO — into New York Harbor. Enhancing an already existing requirement, the rule will employ a wide range of on-site stormwater control techniques to all new development, redevelopment and major alterations in combined sewer areas. For a typical site over 5,000 square feet, DEP estimates that the rule will limit stormwater discharge to 10% of its present permitted flow to the combined sewer system using cost-effective detention, infiltration, and conservation techniques. This rule will lead to on-site control systems that are projected to reduce combined sewer overflows by as much as 800 million gallons over the next 20 years based on historic development trends. No existing homes or developments will be impacted by the new rule. The rule delivers a key component of the NYC Green Infrastructure Plan announced by Mayor Bloomberg last September.

"Combined sewer overflows remain one of the greatest challenges to water quality in New York Harbor," said Commissioner Strickland. "Our Green Infrastructure Plan seeks to control water at the source to keep it out of our sewers while balancing compliance costs. Through several years of outreach to the real estate, development and environmental communities, we have received many comments to adopt innovative and cost-effective techniques, and the final rule allows additional opportunities to use infiltration and recycling systems to meet control requirements."

The new proposed rule will reduce the amount of stormwater runoff discharged from new development projects as part of DEP's existing permitting processes. The current rule is based on a number of different factors such as existing sewer design criteria, property type, size, and drainage area of the lot. The new rule will reduce current limits for runoff to 10% of present permitted flows through the use of innovative control systems, such as blue roofs, green roofs, or subsurface gravel beds and stormwater chambers. For example, a typical one-acre site currently allowed to release 2.5 cubic feet per second under existing standards, will now be required to detain and release runoff at 0.25 cubic feet per second through some combination of on-site stormwater control systems. The cost impact of the new standard on a project's development is estimated to be an additional 0.3% to 1.5% of total costs.

The rule was developed through several task force meetings DEP conducted with the Mayor's Office of Long-Term Planning and Sustainability and its partners across city agencies. Over the past two years, DEP has received input from building industry which includes real estate, development and professional applicants, and environmental organizations, including the Real Estate Board of New York, the Regional Planning Association, American Institute of Architects, Buildings Sustainability Board, Citizens for Affordable Housing, US Green Buildings Council and the Green Infrastructure Steering Committee. Based on extensive feedback, the rule credits infiltration into soil and recycling for on-site use, which can reduce the size of stormwater control systems.

To assist with the implementation of the new rule, DEP will release a companion document, Guidelines for the Design and Construction of Stormwater Management Systems, offering guidance to the development community and applicants with the selection, planning, design and construction of on-site stormwater detention systems. The manual was developed in consultation with the Department of Buildings, and will feature guidance on siting, design and construction considerations for various stormwater control systems, as well as operation and maintenance recommendations. The guidelines will be continually updated to reflect the latest technology and best practices.

New York City Department of Environmental Protection (DEP) www.nyc.gov/dep

September 29, 2011

New York City Department of Environmental Protection (DEP) Launches Program To Improve Services, Lower Costs and Maintain Status ...

http://www.nyc.gov/html/dep/html/press_releases/11-98pr.shtml 

On November 7, 2011 the New York City Department of Environmental Protection (DEP) launched a new program, Operational Excellence, or OpX, to help make DEP the safest, most effective, cost-efficient, and transparent water utility in the nation. The program will enhance services, result in environmental benefits, and reduce costs for the nine million New Yorkers who rely on DEP for water and wastewater services. Veolia Water ("Veolia"), an international expert in water and wastewater utilities, has been hired as a consultant to develop recommendations to streamline workflows, boost productivity, identify opportunities for efficiency gains, and keep future water rate increases as low as possible. As the nation's largest municipal water and wastewater utility, DEP currently spends roughly $1.2 billion annually on operations and maintenance and aims to achieve $100 to $200 million in annual savings through the program. The innovative incentive-based agreement with Veolia Water delivers access to a worldwide network of water and wastewater services and technologies while ensuring continued government control, decision-making authority, and ownership, as well as public-employee status for DEP employees.

... DEP Commissioner Carter Strickland said "Faced with unfunded mandates that have driven up costs, as well as the need for reinvesting in our basic infrastructure to ensure reliability for the next generation, and our desire to keep water rates in check as much as possible, now it is our turn to take our agency to the next level. The Operational Excellence program pairs us with a firm that brings a comprehensive portfolio of best management practices, a track record of boosting productivity while reducing expenses across the globe, and all while protecting existing workforces. Through this new innovative partnership, teams of DEP employees will work with Veolia to look for efficiencies across the board in operations and maintenance and then implement the best recommendations over the next four years while protecting our existing workforce and maintaining our level of service. We also know that the success of this program requires the help of the unions that represent our nearly 6,000 employees; so in addition to briefing them ahead of time, we will be working closely with them as the program moves forward. Bold steps like these are the responsible thing to do to lessen the burden on our 835,000 customers who have been absorbing several years of significant water rate increases."
...
The company's selection followed a Request for Proposals issued in April by the New York City Water Board and a competitive review process that focused on a contractor's ability to assess all aspects of agency operations for potential improvements, including labor productivity and processes, inventory management, chemical purchasing and usage, sludge digestion and disposal, and energy efficiency and management. The Veolia team includes McKinsey & Company and ARCADIS, both serving as subcontractors.DEP will draw from the Veolia team's portfolio of best management practices, including implementing system-wide improvements and saving up to 15% of operations and maintenance costs for utilities including Berliner Wasserbetriebe in Berlin, Germany and Thames Water in London, UK.  Veolia is the global water industry leader, managing more than 5,200 water facilities and 3,200 wastewater facilities around the world.
...
The OpX program is divided into two phases. First, DEP and its partner Veolia will conduct an initial evaluation and recommendation phase that will result in a final report in 2012 of recommendations on how DEP can improve productivity and reduce costs. Based on that report, DEP has the ability to accept or reject any of the proposed operational changes and cost-saving measures. Improvements that DEP chooses will be implemented over a four-year period.  Compensation for work performed includes a combination of a fixed fee and an incentive-based compensation that is calculated based on recurring savings achieved and documented.

The main objectives of the program are to:

• Review current operations and maintenance for potential improvements with a particular focus on energy usage and production opportunities, chemical usage and pricing, labor productivity, inventory management, and optimal sludge processes.
• Recommend implementable measures to improve and/or streamline operations and maintenance, increasing efficiencies, enhancing productivity, and reducing costs.
• Support public outreach, legislative initiatives, and other processes required to implement recommendations.
• Work with DEP staff to manage the implementation of the recommended initiatives.

Improving operational productivity and efficiency is a part of several goals outlined in Strategy 2011-2014, a far-reaching strategic plan that lays out 100 distinct initiatives to make DEP the safest, most efficient, cost-effective, and transparent water utility in the nation. The new plan, the product of nearly one year of analysis and outreach, builds on PlaNYC, Mayor Bloomberg's sustainability blueprint for New York City. The plan is available on DEP's website at www.nyc.gov/dep.
...
DEP manages the city's water supply, providing more than one billion gallons of water each day to more than nine million residents, including eight million in New York City. The water is delivered from a watershed that extends more than 125 miles from the city, comprising 19 reservoirs and three controlled lakes. Approximately 7,000 miles of water mains, tunnels and aqueducts bring water to homes and businesses throughout the five boroughs, and 7,400 miles of sewer lines and 95 pump stations take wastewater to 14 in-city treatment plants. DEP employs nearly 6,000 employees, including almost 1,000 in the upstate watershed. DEP has a robust capital program, with a planned $8.9 billion in investments over the next five years.

New York City Department of Environmental Protection www.nyc.gov/dep
Press Release dated November 7, 2011

Valuing Green Infrastructure in Portland, Oregon

http://www.webmeets.com/files/papers/AERE/2011/74/GreenStreets-5-24-2011.pdf
Abstract: This study uses the hedonic price method to examine if proximity, abundance, and characteristics of green street facilities affect the sale price of single-family residential properties in the city of Portland, Oregon. Different methods for measuring proximity and abundance are explored with distance based on street network, and abundance of green streets at the census tract and census block level, producing statistically significant results. Sale prices increase as distance from the nearest green street facility increases although the magnitude of this effect is small. Preliminary results find that older green streets (10 years+), and those with a large number of trees (7 or more), have a positive effect on the sale price of nearby properties.

Over the past 20 years Portland has invested $1.4 billion in physical infrastructure projects to reduce combined sewer overflows. These projects, which are scheduled to be completed in December 2011, will reduce the number of overflows to the Willamette River to an average of four times each winter and once every third summer (Portland Bureau of Environmental Services 2011). Projects are funded, in large part, by Portland’s combined sewer/water bills, which are amongst the highest in the country (Frank 2011). Further rate increases to fund large capital projects may not be politically feasible, so in 2008 the city launched a new strategy, the $55 million “Grey to Green” program, to control stormwater runoff. Program goals include planting 33,000 yard trees and 50,000 street trees, adding 43 acres of ecoroofs, controlling invasive plant species, purchasing over 400 acres of natural areas, and constructing 920 new green street facilities.
...
Green streets are a low-impact development technique that use “vegetated facilities to manage stormwater runoff at its source” and include curb extensions, street planters, and rain gardens as well as “simple” green streets, which involve changes to existing planting areas between curbs and sidewalks.... Additional benefits attributed to these facilities include increased property values, traffic calming, better bike access, enhanced pedestrian safety, and added green space and wildlife habitat. These facilities “are more cost-effective than piping stormwater to a treatment plant” ...and are increasingly being promoted by city managers as an effective means for controlling stormwater runoff.

While green space and wildlife habitat have been estimated to increase the sale price of single-family residential properties (Donovan and Butry 2010; Mahan, Polasky, and Adams 2000; Netusil 2006), literature examining the relationship between green street facilities and the sale price of single-family residential properties is extremely limited. Ward et al. (2008) estimate that properties located in low-impact development project areas in Seattle, Washington sold for 3.5-5 percent more than properties in the same zip code located outside project areas. Williams and Wise (2009) reach the opposite conclusion finding that lots in Gainesville, Florida with low-impact development stormwater systems are valued less than lots that use conventional approaches.
...
Home characteristics are of the expected sign and magnitude across specifications—a property’s sale price is estimated to increase at a diminishing rate as lot size and building square footage increase. Additional full and half bathrooms, increases in elevation (a proxy for views), and neighborhood characteristics such as percentage white and median income at the census tract level, are also found to have a significantly positive effect on sale price. Land cover variables on a property and in surrounding buffers are included to avoid omitted variable bias because green streets are often located in areas with a high percentage of impervious surface area.

Tree canopy on a property, and in surrounding buffers, is found to have a positive but diminishing effect on a property’s sale price; water, which is only present in the 200-foot to ¼ mile and ¼ mile to ½ mile buffers, has a large and significant effect on sale price.
...
The economic magnitude of proximity, however, is small—increasing a property’s distance from a green street by 1,000 feet is estimated to increase its sale price from $430 (1/4 mile street network) to $851 (1/4 mile Euclidean).
...
The EPA estimates that between $331 and $450 billion of investment is needed over a 20-year period (2000 to 2019) to replace or update the existing sewer infrastructure in the United States.
...
by Noelwah R. Netusil 1, Zachary Levin 1 and Vivek Shandas 2
1. Reed College, Department of Economics, 3203 SE Woodstock Boulevard, Portland, Oregon 97202
2. Portland State University, Nohad A. Toulan School of Urban Studies and Planning, Portland, Oregon 97201
Association of Environmental and Resource Economists www.aere.org/ 2011 Summer Conference Seattle, Washington http://www.webmeets.com/AERE/2011/
June 10, 2011
Keywords: low impact development; green streets; hedonic price method; stormwater; Portland, Oregon

New Tactics and Billions to Manage City Sewage

http://www.nytimes.com/2011/10/20/nyregion/new-york-city-set-to-commit-2-4-billion-on-storm-water-control-tactics.html
The Bloomberg administration is set to commit $2.4 billion in public and private investment to applying new environmental technology to an old problem: the flow of untreated sewage and storm water into New York City’s waterways.

City officials announced ... that the State Department of Environmental Conservation had tentatively assented to a proposal by the city to introduce infrastructure to retain storm water before it reaches the sewer system and overloads it.  The approach reflects a shift from traditional sewage-control methods like underground storage tanks and tunnel systems to techniques like green roofs with plantings, porous pavement for parking lots and depressions for collecting water in parks.
...
The federal Environmental Protection Agency promotes these newer forms of infrastructure as a cost-effective and environmentally preferable alternative to conventional overflow management.

Sewer overflows are the biggest water-quality problem in the metropolitan region, preventing many waterways from meeting federal standards for fishing, swimming and healthy habitats for wildlife. Each year, up to 30 billion gallons of overflow enters New York Harbor, Jamaica Bay, Newtown Creek and other waterways.

The city plans to spend $1.5 billion of its own money in the next 20 years on the infrastructure project. An additional $900 million in private investment is to be secured by imposing requirements for residential and commercial development, like limits on the amount of runoff allowed from a new project. (The city will still spend $1.6 billion more over the same period on traditional sewage-control projects.)
...
City officials said features like plantings would help reduce the sewage overflows by 40 percent by 2030 and cut the city’s sewer management costs by $2.4 billion over 20 years, helping to keep water bills down for utility customers

by Mireya Navarro
FOR FULL STORY GO TO: 
http://www.nytimes.com/2011/10/20/nyregion/new-york-city-set-to-commit-2-4-billion-on-storm-water-control-tactics.html
The New York Times www.NYTimes.com

October 19, 2011

Conservation of resources in the pulp and paper industry derived from cleaner production approach

http://www.sciencedirect.com/science/article/pii/S0921344911001467
Abstract: This paper analyses the utilization of water and recycled fiber from waste paper for ... production in one Serbian cardboard mill. Water and fiber consumption, wastewater generation and its characteristics, as well as sludge recirculation were monitored during production of various paper types, with different grade and weight. The aim was to evaluate production rationality and running stability concerning water and fiber utilization and possibilities for their conservation. Cleaner production measures inside the mill and in the effluent treatment plant were suggested for the improvement of wastewater quality and water conservation. Savings in water and fibers were estimated, with ... respect to economic and environmental aspects of proposed cleaner production measures.

Highlights:

► Analyzed cardboard mill has high water consumption and low fiber use efficiency.
► Suggested cleaner production measures provide 50% decrease in water consumption.
► End-of-pipe measures increase fiber and filler recovery for estimated 28%.
► The investment of 865,000 € would bring total savings of ca. 3.0 M € in 9 months.
► We have confirmed that cleaner production pays-off in a cardboard production.

by Darja B. Žarković^a , Vladana N. Rajaković-Ognjanović^b, Ljubinka V. Rajaković^c

a	Belgrade Polytechnic College, University of Belgrade, Brankova 17, Belgrade, Serbia

b	Faculty of Civil Engineering, University of Belgrade, Bulevar Kralja Aleksandra 73, Belgrade, Serbia

c	Faculty of Technology and Metallurgy, University of Belgrade, Karnegijeva 4, Belgrade, Serbia

Resources, Conservation and Recycling via Elsevier Science Direct www.ScienceDirect.com

Volume 55, Issue 12, October 2011, Pages 1139-1145 
Keywords: Water; Fiber; Conservation; Paper mill; Cleaner production

Forging the Link: Linking the Economic Benefits of Low Impact Development and Community Decisions.

https://lists.epa.gov/read/archive?id=245622
The University of New Hampshire (UNH) Stormwater Center, the Virginia Commonwealth University and the Antioch University New England have released: Forging the Link: Linking the Economic Benefits of Low Impact Development and Community Decisions.

Forging the Link (FTL), is a comprehensive curriculum examining cost as one of the primary barriers to the implementation of low impact development (LID).

The FTL curriculum demonstrates:
1. the ecological benefits of LID with respect to water quality, aquatic habitat and watershed health
2. the economic benefits of using both traditional and innovative infrastructure to manage stormwater
3. the capability of LID to be used as a climate change adaptation planning tool to minimize the stress on urban stormwater management infrastructure

The curriculum consists of a series of case studies from around the country presented in a resource manual, PowerPoint presentation, and delivery and facilitation guides. It is available and designed for organizations that are tasked with educating on the topic of nonpoint source pollution and/or climate change for a municipal decision maker audience such as Nonpoint Education for Municipal Officials (NEMO), Coastal Training Programs (CTP), Sea Grant engagement experts, Cooperative Extension Agents, National Estuary Program (NEP) staffs, or other non-governmental organizations.

Forging the Link is a social-science and research based curriculum developed in partnership with end users (NEMO, CTP, Sea Grant, etc) and the intended audience (municipal decision makers). The FTL was funded by CICEET and NOAA and can be found at: http://www.unh.edu/unhsc/forgingthelink
...
Economic Benefits Associated with the Use of LID:
• Whole project cost savings for new development by reduction of drainage infrastructure
• Land development savings from a reduced amount of disturbance
• Higher property values of 12 to 16 percent
• Reduction in home cooling by 33 to 50 percent from the use of natural vegetation and reduced avement area.

Three LID Case Studies that identify the scales at which there are clear economic incentives:
...
Residential Site: Boulder Hills
This LID condominium community features a porous asphalt road and incorporated porous pavements and rooftop infiltration systems. The benefits included: improved local permitting, positive exposure for
the developers, an 11 percent reduction in the amount of disturbed land and a stormwater management cost savings of 6 percent compared to a conventional design. Although porous asphalt was more costly, cost savings are realized through the reduction in drainage piping, erosion control measures, catch basins, and the
elimination of  curbing, outlet control structures, and stormwater detention ponds.

Commercial Site: Greenland Meadows This retail shopping center features the largest porous asphalt installation in the Northeast. The 56-acre development includes porous asphalt, landscaping areas, a large gravel wetland and other advanced stormwater management. Costly conventional strategies were avoided, and there was a cost savings of 26 percent for stormwater management.

Combined Sewer Overflow
On a larger scale, communities are faced with the challenges of managing their combined sewer overflows to reduce the discharge of untreated sewage into waterways.  These large often outdated systems carry
price tags in the billions of dollars to store, separate and treat. By combining a gray and green approach the costs and volumes of stormwater are significantly reduced. For example, the city of Portland, Oregon was
able to save an estimated $63M as compared to an estimated $144 million, by considering a green approach, and the city of Chicago, Illinois, was able to divert over 70 million gallons of stormwater from their CSO, in one year.

For more information contact Robert Roseen, PhD, Director, UNHSC, Robert.roseen@unh.edu or Todd Janeski, Environmental Scientist, Virginia Commonwealth University, tvjaneski@vcu.edu.

U.S.Environmental Protection Agency NonPoint Source Information Email List www.EPA.gov 
http://www.unh.edu/unhsc/forgingthelink
August 9, 2011

Editorial: MSD rate increase worth the price in clean water, economic benefit: STLtoday.com

http://www.stltoday.com/news/opinion/columns/the-platform/article_71c3d30b-9466-5251-9cb7-5e8e2c3414e0.html
In a series of public hearings over the next month, area residents will have an opportunity to be heard about the massive rate increase coming to area sewer bills over the next several years.

Because the Metropolitan Sewer District failed to upgrade its system for decades, it is being forced by the U.S. Environmental Protection Agency to spend more than $4 billion in the next couple of decades doing what it should have been doing all along.

The status quo is what results when one of the oldest and largest sewer systems in the country doesn't keep up with growth. In heavy rains, MSD's combined stormwater-sanitary sewer system dumps raw sewage into rivers, basements and backyards. That hasn't been permitted for decades, but MSD had not gotten around to fixing it.

Folks testifying at public hearings should remember: It's not all MSD's fault.

It's our fault, too, and the fault of our parents, for not doing what our grandparents and great-grandparents did before us: Agree to tax themselves at a reasonable level to pay for the infrastructure that will enable future growth.

Nobody will be happy about having sewer rates double in the next 20 years, and then double again a decade or so after that. But even when MSD bills rise from their current average of $27 to more than $80 per month when all the work is done, they still will be below the rates that many people pay in cities of comparable size to St. Louis.

And this is what the public will get in return: clean, safe water and one of the most massive economic development and jobs projects in our city's history.
...
Billions of dollars will be spent beginning next year on reconstructing the country's fourth-largest sewer system. That means an infusion of construction jobs, engineering contracts, concrete work and all the ancillary economic benefits of $4.7 billion in spending.

For political reasons, our community put off this work for decades. Now it's time to pay the piper. When our region needs an economic boost, investing in a massive construction project that will make our water clean for the next generation makes good sense.

To make the project work and deliver immediate economic benefits, voters — probably in next April's municipal elections — will need to approve a bond issue of around $1 billion. Otherwise, the work will be delayed, take longer and cost even more.
...
By the Editorial Board STLtoday.com, August 13, 2011

FOR FULL EDITORIAL GO TO:
http://www.stltoday.com/news/opinion/columns/the-platform/article_71c3d30b-9466-5251-9cb7-5e8e2c3414e0.html

Cost-efficiency of rainwater harvesting strategies in dense Mediterranean neighbourhoods

http://www.sciencedirect.com/science/article/pii/S0921344911000103
Abstract: Rainwater harvesting (RWH) presents many benefits for urban sustainability and it is emerging as a key strategy in order to cope with water scarcity in cities. However, there is still a lack of knowledge regarding the most adequate scale in financial terms for RWH infrastructures particularly in dense areas. The aim of this research is to answer this question by analysing the cost-efficiency of several RWH strategies in urban environments. The research is based on a case study consisting of a neighbourhood of dense social housing (600 inhabitants/ha) with multi-storey buildings. The neighbourhood is located in the city of Granollers (Spain), which has a Mediterranean climate (average rainfall 650 mm/year). Four strategies are defined according to the spatial scale of implementation and the moment of RWH infrastructure construction (building/neighbourhood scale and retrofit action vs. new construction). Two scenarios of water prices have been considered (current water prices and future increased water prices under the EU Water Framework Directive). In order to evaluate the cost-efficiency of these strategies, the necessary rainwater conveyance, storage and distribution systems have been designed and assessed in economic terms through the Net Present Value within a Life Cycle Costing approach. The pipe water price that makes RWH cost-efficient for each strategy has been obtained, ranging from 1.86 to 6.42€/m3. The results indicate that RWH strategies in dense urban areas under Mediterranean conditions appear to be economically advantageous only if carried out at the appropriate scale in order to enable economies of scale, and considering the expected evolution of water prices. However, not all strategies are considered cost-efficient. Thus, it is necessary to choose the appropriate scale for rainwater infrastructures in order to make them economically feasible.

by R. Farreny 1 and 2, X. Gabarrell 1 and 3 and J. Rieradevall 1 and 3
1. SosteniPrA (ICTA-IRTA-Inèdit), Institute of Environmental Science and Technology (ICTA), Universitat Autònoma de Barcelona (UAB), 08193 Bellaterra, Barcelona, Catalonia, Spain
2. Inèdit Innovació SL, UAB Research Park, Carretera de Cabrils, km 2. IRTA, 08348 Cabrils, Barcelona, Spain
3. Department of Chemical Engineering, Universitat Autònoma de Barcelona (UAB), 08193 Bellaterra, Barcelona, Catalonia, Spain
Resources, Conservation and Recycling via Elsevier Science Direct www.ScienceDirect.comVolume 55, Issue 7; May, 2011; Pages 686-694
Keywords: Ecocities; Life Cycle Cost; Net Present Value; Rainwater infrastructures; Urban retrofit

Sewers, Swaps and Bachus - NYTimes.com

http://www.nytimes.com/2011/04/23/opinion/23nocera.html
... Jefferson County, Alabama's, ... congressman is Spencer Bachus, the Republican ... [who] chairs the House Financial Services Committee.

... Back when too many people viewed derivatives as glittering innovations with magical powers to hedge against risk — Jefferson County was ordered by the Environmental Protection Agency to upgrade its sewer system. To finance the new sewers, it issued bonds totaling nearly $3.2 billion.

After the sewer system was completed, the county moved all that debt from fixed rates to variable rates. It did so because some investment bankers at JPMorgan persuaded the county to purchase derivative contracts, in the form of interest rate swaps, that would supposedly allow it to avoid paying higher interest if rates went up. ...

At first, this arrangement worked well enough. Though the cost of the sewers was bloated beyond belief — they were originally supposed to cost $1 billion — the county made its bond payments. The bank reaped handsome fees from its swaps contracts.

But the financial crisis caused those clever hedges to go blooey. Indeed, the swaps not only failed to protect the county from losses — they actually exacerbated the losses. In addition, two of its bond insurers had their credit rating lowered because they had also insured lots of toxic subprime derivatives. The downgrade triggered huge hikes in interest and principal for Jefferson County.*

Today, the county is broke; according to The Birmingham News, it may run out of cash by July. It is toying with a bankruptcy filing — which, if it happened, would be the largest municipal bankruptcy in history.

Though the county no longer has to pay fees to JPMorgan — the bank agreed to void the swaps as part of a settlement with the Securities and Exchange Commission — its bond debt for the sewers now totals almost $4 billion. The Birmingham News described Jefferson County as a “poster child” for all that can go wrong when municipalities start playing with unregulated derivatives peddled by Wall Street sharpies.

Has Spencer Bachus, as the local congressman, decried this debacle? Of course ... In a letter last year to Mary Schapiro, the chairwoman of the S.E.C., he said that the county’s financing schemes “magnified the inherent risks of the municipal finance market.” (He also blamed, among other things, “serious corruption,” of which there was plenty, including secret payments by JPMorgan to people who could influence the county commissioners.)

... As chairman of the Financial Services Committee, he is uniquely positioned to help make sure that similar disasters never happen again....

Among its many provisions related to derivatives — all designed to lessen their systemic risk — is a series of rules that would make it close to impossible for the likes of JPMorgan to pawn risky derivatives off on municipalities. Dodd-Frank requires sellers of derivatives to take a near-fiduciary interest in the well-being of a municipality.

You would think Bachus would want these regulations in place as quickly as possible, given the pain his constituents are suffering. Yet, last week, along with a handful of other House Republican bigwigs, he introduced legislation that would do just the opposite: It would delay derivative regulation until January 2013.
...
For two more years ... the industry will add trillions of dollars worth of “financial weapons of mass destruction” (to use Warren Buffett’s famous description) to the $466.8 trillion of unregulated derivatives already in existence. How can this possibly be good?
...
By JOE NOCERA
The New York Times http://www.nytimes.com
Op-Ed dated April 22, 2011
FOR FULL OP-ED GO TO:
http://www.nytimes.com/2011/04/23/opinion/23nocera.html

Benefits of Investing in Water and Sanitation

http://www.oecd-ilibrary.org/environment/benefits-of-investing-in-water-and-sanitation_9789264100817-en
The provision of water supply, sanitation and wastewater services generates substantial benefits for public health, the economy and the environment. Benefit-to-cost ratios can be as high as 7 to 1 for basic water and sanitation services in developing countries.

Wastewater treatment interventions, for example, generate significant benefits for public health, the environment and for certain economic sectors such as fisheries, tourism and property markets.

The full magnitude of the benefits of water services is seldom considered for a number of reasons, including the difficulty in quantifying important non-economic benefits such as non-use values, dignity, social status, cleanliness and overall well-being. Also, information about the benefits of water services is usually hidden in the technical literature, where it remains invisible to key decision-makers in ministries.

This report draws together and summarizes existing information on the benefits of water and sanitation.

Organization for Economic Cooperation and Development (OECD) www.OECD.org
Publication Date : March 17, 2011
ISBN : 9789264100817 (PDF) ; 9789264100541 (print)
DOI : 10.1787/9789264100817-en