1. Presented by Ed Harvey and Doug Jeavons BBC Research & Consulting 3773 Cherry Creek N. Drive Suite 850 Denver, Colorado 80209 www.bbcresearch.com November 17, 2000 Introduction to Study of Economic Impacts of Enhanced Aquifer Protection

2. Idaho Department of Environmental Quality  Sponsoring agency, contract manager BBC Research & Consulting (Denver)  Natural resource economic and financial consultants ERO Resources (Boise)  Geohydrology and environmental science engineers Idaho Legislature, citizens of Pocatello and Bannock County  Audience The Study Team

3.  Increasing demands and declining water quality in LPRV aquifer  Potential for conflict between growth, development and water quality objectives  Need for a comprehensive view of protection alternatives and their impacts  Desire to avoid or minimize unintended consequences Why Do This Study?

4. Study Objectives  Characterize enhanced aquifer protection  Describe baseline scenario without enhanced protection  Examine economic and fiscal impacts, costs and benefits of enhanced protection

5. Simplified View of the Water Use Cycle in the LPRV

6. Economic Implications of Strategies to Address Water Quality Deterioration in the LPRV

7. Task 1 – Characterization of Enhanced Aquifer Protection Relative to Current Status Rathdrum Prairie sensitive resource examination Identification of existing LPRV water quality issues and measures to address them Definition of implementation scenario

8. Task 2 – Description of Baseline Scenario Without Enhanced Aquifer Protection Current profile  Land Use  Economic/demographic activity  Water needs  Characterization of water supply sources  Water use discharge  Utility costs and other fiscal conditions  Household water user costs Planning horizon definition Baseline projections

9. Task 3 – Economic and Fiscal Impact Analysis of Enhanced Aquifer Protection Completion of the Rathdrum Prairie Case Study Projected changes in hydrologic conditions Changes in utility costs Impacts on LPRV residents and other water users Projected impacts on:  Land use changes  Economic activity  Demographic changes  Fiscal impacts Scenario comparison Cost benefit analysis Draft report

10. Timeline Task 1 Working Paper/Legislative Progress Report  Late December 2000  ID areas in need of further examination after this study Task 2 Working Paper  Late February 2001 Task 3 Working Paper  April 2001 Presentations and Final Report  April/May 2001

11. The first shot at an enhanced aquifer protection scenario will be developed Generalized estimates of hydrologic/water quality effects over time will be developed, with and without enhanced aquifer protection Key economic and fiscal impacts, costs and benefits will be identified How Far Will This Study Take Us?

12. A Plea For Realistic Study Expectations  Time and financial resources are limited  Issues will be uncovered during course of work  All of the questions will not be answered in the Spring 2001 Report, but the costs and benefits of aquifer protection will be evident  Further inquiry and additional public input are possible after the Spring 2001 Report is completed

13. We Want to Hear From You!  What did we leave out in the work scope?  What are the data and information sources we should rely on?  What are the key concerns with groundwater degradation?  What are the key concerns with aquifer protection?