/PHXWater @PHXWater Largest potable water provider in Arizona 8 treatment plants Produce 100 billion gallons of water (270kaf/yr demand) 12,000 miles of water and sewer mains (540 sq mi) Treat 63 billion gallons of wastewater 1,470 employees $1.25B 5-yr Capital Improvement Program Serve 1.5 million water and 2.5 million wastewater customers @PHXWater /PHXWater

Challenge: Drought & Shortage Phoenix is not particularly vulnerable to natural disasters No earthquakes, tornados, hurricanes, volcanos, few floods, no blizzards But it is very hot and always dry Dendrochronology tells us that mega-droughts occur in our watersheds that literally decimate civilizations Desert cities know the value of water Therefore, Phoenix is built for drought In a broad sense, every water-related action the City and its residents have undertaken since the City was founded has been for the purpose of mitigating or responding to drought. All of these activities are undertaken to ensure public safety, economic opportunity, and quality of life in a desert community that basically exists in perpetual drought. We do not focus on flash-in-the-pan efforts; we do not tend to be reactionary. Rather, we rely on strategic, methodical planning over the long term. Source: NYPost.com

Sustainability Historic focus on ensuring sustainable water supplies to provide for growth and continued availability during drought Strategies: Took the long-term view, planning out for 100+ years Acquired more surface water supplies than needed under non- drought conditions to provide a buffer during surface water shortages Acquired physically and legally diverse supplies Colorado River, Salt & Verde River, groundwater, reclaimed water, water stored underground Directly tied the ability to grow to adequate water supplies through the State’s 100-year Assured Water Supply rules

Sustainability Strategies: In the 1980’s central Arizona adopted major groundwater legislative reform through the 1980 groundwater management act. With some limited exceptions, it outlawed fossil groundwater mining and set a goal of “safe yield” for local aquifers that were enforced through the 100-year assured water supply rules. Strategies: Successful conversion in the 1980’s from dependence on fossil groundwater mining to renewable surface water supplies Intentionally saved fossil groundwater supplies for future generations Invested hundreds of millions of dollars into surface water treatment plant infrastructure

Sustainability Strategies: Settled disputes over water rights with Indian communities, agricultural districts, and rural communities Salt River Pima-Maricopa Indian Community, Gila River Indian Community, White Mountain Apache Tribe, San Carlos Apache Tribe, Fort McDowell Indian Community Settlements brought certainty, created benefits for all communities, and developed new relationships

Sustainability Strategies: Reclaimed all wastewater and re-used it for nuclear power generation, agriculture, local wetlands, and in exchange for surface water supplies Began very aggressive water conservation programs in the 80’s, focus on changing culture Used rate structure to discourage outdoor use Residential GPCD now 100 30% lower than peak in ’96

Phoenix embraced a desert lifestyle

Phoenix neighborhood 2007 Percent of total area of parcel covered by turf.

Phoenix neighborhood 2010 Percent of total area of parcel covered by turf.

Phoenix neighborhood 2013 Percent of total area of parcel covered by turf.

Phoenix’s Water Supplies Salt & Verde River Water Supply 60% of demand Rights are appurtenant to the Project lands Phoenix’s rights are very senior in the Salt/Verde system Water allocations governed by local board, that can vote to reduce allocations to protect reservoir levels SRP developed wells that can also feed into the canal system as a redundant supply during drought Phoenix uses only half of its entitlement There is “give” in the system Resilient System

Phoenix’s Water Supplies Colorado River Water Supplies 40% of demand Canal owned by feds, operated by CAP Phoenix water rights are contractual Phoenix uses 66% of its Colorado River entitlement CAP rights are junior in the lower basin Water allocations handled through the most complex governance system possible: “The Law of the River” CAP has no well redundancy Water Phoenix does not use is turned back to CAP and reallocated to the next highest priority user Every single acre-foot available on the Colorado is allocated every single year No “give” in the system Not a Resilient System

Addressing System Risk Phoenix has good plumbing, diverse supplies, can withstand shortage…BUT Phoenix is vulnerable to a Colorado River system crash Have given up wells in pursuit of sustainability Phoenix can meet only about 3% of its peak demands with wells

Local/Regional Resiliency Strategies Drill more wells! Fast! Phoenix-Tucson partnership Phoenix stores Colorado River water in Tucson aquifers During shortage on the Colorado River, Tucson pumps that stored water out of its well field Tucson’s Colorado River water is delivered to Phoenix surface water treatment plants Tucson benefits in the short term with higher water tables and lower pumping costs Phoenix benefits long term with assured surface water deliveries

System Level Resiliency Strategies Ultimate Colorado River Resiliency goal is a system with some “give” Phoenix wants to collectively address Lower Basin resiliency problems Colorado River System Conservation program System water provides a buffer against drought, climate change, helps provide hydrological and political stability Source: Gonzo fan 2007 Wikimedia Commons

Phoenix Colorado River Resiliency Fund Phoenix is willing to support new approaches and partnerships Council approval of a Colorado River Resiliency Fund $5-6M/YR To be used for various resiliency efforts Storage of unused Colorado River water in Tucson and local aquifers Additional production and recharge wells Watershed protection strategies Other system efforts (e.g., expanded system conservation)

As a reminder, around 60% of the water utility’s expenses are related to capital.

Smart pipeline management $11B divided by 75 years is $145M/yr. Currently we spend around 7000/75 = 93 miles per year. Currently we replace between 20-25 per year. CIP provides for us to gear up to 30-35 miles per year. 24% of our pipes are 50 years old or older 348 miles of pipe need to be replace in the 2020’s, approximately 35 miles per year.