1. Clean Watersheds Needs Survey (CWNS) 2012 Gap Approach Option June 22, 2010

2. 2 Overview 1)Introduction to the Wastewater Infrastructure “Gap” Approach 2)Gap Approach in Pennsylvania’s 2008 Governor’s Sustainable Infrastructure Report 3)Gap Approach Option in CWNS 2012 4)Sample State CWNS Gap Data Collection Form 5)Mock CWNS Data Entry Portal modifications for Gap Approach 6)Appendix – CWNS Categories

3. 3 1)Introduction to the Wastewater Infrastructure Gap Approach

4. 4 What do we mean by Wastewater Infrastructure “Gap?” Wastewater Infrastructure Treatment Plants, Pump Stations, Pipes Gap Total 20-Year Needs (capital, O&M, debt service) Projected 20-Year Revenues = 20-Year Gap

5. 5 How is gap calculated? It is calculated on a facility- or system-basis for a given year. Gap for that facility or system can then be totaled for a 20-year period. By extrapolating from a sample set of systems, the Gap for all facilities and systems in a state can then be estimated.

6. 6 2) Gap Approach in Pennsylvania 2008 Governor’s Sustainable Infrastructure Report

7. 7 Pennsylvania’s 2008 Governor’s Sustainable Infrastructure Report PA collected data from sampled facilities Condition and Replacement Costs of Facility Assets (Pipes, Treatment Plant Unit Processes,…) Current and Projected O&M and Capital Costs Existing Debt Service Current and Projected Revenues Asset Management Practices

8. 8 Funding the Needs in Pennsylvania The Governor’s Report found a total 20-year water and wastewater infrastructure funding gap of $43.8 B ($28.3B of that was wastewater) Total available funding (grants plus cash-value of low-interest loans) was $2.1 B Complete Report at: http://www.portal.state.pa.us/portal/server.pt/community/sustainable _water_infrastructure_task_force/10565

9. 9 Chart from Governor’s Report 9 MHI = Median Household Income

10. 10 Governor’s Report data used for statewide policy decisions… Statewide information on where subsidy dollars should go to make the greatest difference Data to support recommendations for legislative or regulatory change Promote better management (Asset Management) and Full Cost Pricing

11. 11 Pennsylvania can do Gap Approach to CWNS 2012 with same resources as Traditional Method Spend more time on each system involved, but do a sample rather than document the needs in all systems CWNS 2012 Gap Approach data elements are significantly fewer than PA Gap data elements Data collection form and CWNS DEP will allow data collection w/o site visits to many systems Less documentation requirements than Traditional Method

12. 12 3) Gap Approach Option in CWNS 2012

13. 13 CWNS 2012 Gap Approach Option For Wastewater Treatment Plants & Sewer Systems: Switch to Sample Survey Collect more detailed data per facility -documented & asset condition based capital needs -O&M costs -revenues For Stormwater, Decentralized Systems, NPS Projects: Use the Traditional Documentation Methods and census approach

14. 14 EPA would provide randomly sampled selections of facilities for each State Except for large facilities, a facility sampled in one survey would be exempt from samples in the next survey Sample designed for estimating State needs to within 25% of true value at 95% confidence level CWNS 2012 Gap Approach Option

15. 15 Average sampling rates –Small Facilities (Pop<10k): 10 - 25% –Medium Facilities (Pop:10k-100k): 30 - 60% –Top 3% Facilities:100% CWNS 2012 Gap Approach Option

16. 16 CWNS 2012 Gap Approach Option Level of Effort Estimates Based on PA’s Gap Approach Experience

17. 17 Capital needs component of States’ Gap totals – extrapolated to account for all systems in these States - will be included in the “Official Needs” section in the CWNS 2012 Report to Congress Entire suite of States’ Gap data would be summarized in a new Gap Analysis section of the CWNS 2012 Report to Congress The Gap Approach Option in the 2012 Report to Congress

18. 18 ProsCons Provides complete State-levelDoes not support watershed assessment of Needs, & other sub-State area Revenues, Gapsdisplays & analyses that require census CWNS data Encourages surveyed facilities Potential Mitigation: For State to perform asset management uses only (not for inclusion and other comprehensive in the Report to Congress) assessments & management States could continue to techniques collect & enter into CWNS “traditional” CWNS data for all non-Gap sampled facilities CWNS 2012 Gap Approach Option Pros & Cons to States

19. 19 4) Sample State CWNS Gap Approach Data Collection Form

20. 20 5) Mock CWNS Data Entry Portal modifications for Gap Approach

21. 21 Gap Analysis Data Areas not Requiring DEP changes LocationLocation FlowFlow DischargeDischarge EffluentEffluent Needs by DocumentsNeeds by Documents Capital CostCapital Cost

22. Allows a federal user to set and unset GAP facilities Allows searching Gap facilities Indicates Gap facility 22

23. Indicates Gap Facility Year and first month of local fiscal year 23

24. Number of connections or accounts 24

25. 25 Asset Failure Modes ModeDefinition 1. Capacity Volume of demand exceeds design capacity Growth, system expansion 2. Level of Service Functional requirements exceed design capability Codes/permits: NPDES, CSOs, SSOs, OSHA, noise, odor, life safety; service, etc 3. Mortality Consumption of asset reduces performance below an acceptable minimum level Physical deterioration due to age, usage (including operator error), acts of nature 4. Efficiency Performs ok, but cost of operation exceeds that of feasible alternatives “Pay-back” period Tactical Aspects

26. 26 Not applicable to Asset Management Analysis Needs

27. 27

28. 28 By default facility address zip code is populated. Lookup will allow selection of other service areas zip codes Revenue & expenses is a sub tab under Needs tab Future year values for 20 years will be auto-populated based on year 1 and using escalation factors from Department of Labor and other sources. Auto-populated values can be updated. If the auto-populated values are updated the future values will be re-calculated accordingly. Calculated using zip code(s)

29. 29 For More Information, Contact Michael Plastino cwns@epa.gov 202-564-0682

30. 30 6) Appendix CWNS Categories

31. 31 CWNS 2008 Categories 31