1、2021 Black&Veatch Strategic DirectionsWater Report 2021 STRATEGIC DIRECTIONS:WATER REPORT|ABOUT THIS REPORT|2About This ReportCindy Wallis-LagePresident,Black&Veatchs water businessThe year 2020 supplied no shortage of challenges yet provided the water industry with an opportunity to find new ways o

2、f doing business and collaborating.Black&Veatchs 2021 Strategic Directions:Water Report examines the issues and trends impacting todays water industry based on a survey of more than 200 stakeholders in the United States sphere of water,wastewater and stormwater.The COVID-19 pandemic,initiated in ear

3、ly 2020 and continuing in 2021,created financial stress on many utilities,complicating existing industry challenges such as such as the continued aging of infrastructure and workforce.Intensifying natural disasters wildfires,floods and drought impacted water systems,highlighting the rising effects o

4、f climate change,testing the resilience of infrastructures,and reinforcing the need for significant investment.While water utilities responded admirably to the fallout from COVID-19,the global pandemic required all utilities to be more resilient in their services and make sorely needed investment in

5、 supply,treatment,conveyance and storage facilities.In forcing federal,state and local governments to halt businesses and industries,the pandemic left tens of millions of Americans jobless and unable to pay utility bills,further straining the bottom lines of many water utilities.Still,that crisis am

6、plified the opportunity and need to accelerate innovation in strategy,operations and funding,with utilities compelled more than ever to unleash the value of data in their operations.Without question,analytics and other technologies drive better decision-making,optimize and prioritize system investme

7、nts,and drive cost efficiencies that propel sustainable and resilient systems.This years report dives into these issues and many more,providing in-depth analysis by leading industry experts.We welcome your questions and comments regarding this report and/or Black&Veatch services.You can reach us at

8、MediaI.2021 STRATEGIC DIRECTIONS:WATER REPORT|CONTENTS|3C O N T E N T SC O N T E N T S4Executive Summary:From COVID-19 to Climate Change,Challenges Press Water Industry to Grow Resilience,Embrace Technology9 As Climate Change Concerns Rise,Utilities Must Elevate Thoughts of Resilience13Decarbonizing

9、 the Water Industry17Sustainable Solutions,Data Use and Integrated Solutions Plugged into a Circular Economy Will Drive Tomorrows Water Infrastructure35 Unsettled Regulatory Landscape Deters Decontamination Upgrades39 Despite Barriers During a Pandemic,Growth in Reuse Drives Participation in the Cir

10、cular Economy43 From the Catskills to the Gulf,Projects Prove Promise of Green,Sustainable Infrastructure47 Food for Thought:NextGen Agriculture May Help Satisfy Worlds Growing Appetite20 Weathering COVID-19:A Water Utility Success Story,With Lessons Learned24 Water as a Business:Data,Innovation and

11、 Planning Drives Value27 The Politics of Water31 Attention to Data-Driven Digital Twins Rising,Though Jury Still Out on Return on Investment2021 STRATEGIC DIRECTIONS:WATER REPORT|4Executive Summary:From COVID-19 to Climate Change,Challenges Press Water Industry to Grow Resilience,Embrace Technology

12、By Cindy Wallis-LageWith thousands of water utilities across the U.S.,challenges run deep.Aging infrastructure remains the chief issue,prompting concerns about the resiliency of assets well past their prime.Climate change worries are driving difficult discussions about hardening the infrastructure a

13、nd how to pay for it to withstand droughts,floods,wildfires or extreme shocks,such as Februarys deep freeze in Texas that disrupted water services to millions.The need for greater,more reliable cybersecurity is more pronounced,after hackers in February exploited a security vulnerability in a Florida

14、 water treatment plants operating system and tried to taint the local water supply.Thankfully,a plant supervisor,through his computer interface,noticed the hack in progress and intervened before any real damage was done.Technology advances from process intensification to data analytics and artificia

15、l intelligence continue to light a way forward,helping utilities and industry optimize asset performance,reduce costs,save energy,achieve regulatory compliance and bolster security.Such challenges and opportunities are at least familiar territory.The COVID-19 pandemic hit the industry in 2020 seemin

16、gly out of nowhere,creating uncertainty about safety and further straining the bottom lines of many water utilities.Yet,the sector as a whole rose to the challenge,demonstrating remarkable agility and adaptability through its front-line professionals in keeping the water flowing,true to its mission

17、of delivering a clean,reliable and safe supply.This 2021 Strategic Directions:Water Report details that backdrop and the complexities of the transforming U.S.water,wastewater and stormwater industries.Backed by expert analyses of responses to a survey of more than 200 U.S.stakeholders,the report bri

18、ngs into focus a sector challenged as always on multiple fronts while advancing“One Water,”the premise that integrated and holistic water resource management the value of all water regardless of history must be considered when drafting plans and making investment decisions.2021 STRATEGIC DIRECTIONS:

19、WATER REPORT|5Digital Water Holds the Key as Infrastructure Continues AgingTo little surprise,the aging of the U.S.water industrys infrastructure continues to be a core issue.Three-quarters of survey respondents listed aging infrastructure as their foremost challenge,far outdistancing issues such as

20、 making the case for capital improvement programs(34 percent),system resilience(30 percent)and managing capital costs(26 percent)(Figure 1).Taken together,the issues magnify the case for digital water solutions as utilities need to“do more with less.”Leveraging digital technology provides the opport

21、unity to harness data precisely,which leads to enhanced capabilities in tracking consumption,driving customer engagement,optimizing performance,driving efficiencies and prioritizing investment dollars.Greater sustainability and resilience through informed asset management and planning are the reward

22、s,along with an invaluable,holistic view of the water system.20202021Aging water and wastewater infrastructure 79.4%74.8%Justifying CIPs and/or rate requirements26.0%33.6%System resilience24.9%30.3%Managing capital costs25.3%25.6%Managing operational costs19.9%21.8%Data collection and management22.7

23、%20.6%Water conservation17.7%17.2%Treatment technology19.1%15.1%Condition assessment capabilities17.0%14.3%Integrated water planning17.0%11.8%Information technology9.7%10.9%Leveraging digital technology provides the opportunity to harness data precisely,which leads to enhanced capabilities in tracki

24、ng consumption,drives customer engagement,optimizes performance and prioritizes investment dollars.Figure 1From your perspective,what are the most challenging issues facing the water,wastewater,and stormwater industries today?(Select the TOP THREE most challenging issues)Source:Black&Veatch 2021 STR

25、ATEGIC DIRECTIONS:WATER REPORT|6Its undeniable that data can guide utilities to higher operational efficiency,greater performance predictability and better maintenance planning,along the way boosting insight about when,where and how much to invest in the systems.The opportunity to gather and integra

26、te information using current data collection systems combined with evolving next-generation,cost-effective sensors and smart devices enables predictive analytics to detect leaks,forecast usage,reduce costs and everything in between.But Black&Veatchs survey finds that many utilities are missing out,c

27、onceding that theyre harvesting more data but lack insights about what to do with it all.Roughly two-thirds of respondents categorize their data management practice as robust and strengthening but not fully integrated,up slightly from a year earlier.An additional three in 10 respondents say their da

28、ta is unintegrated and siloed,consistent with the 2020 survey.Just 5 percent called their data management robust and fully integrated.In a separate question,half of respondents say theyre collecting lots of data but not effectively leveraging it to actionable information,down from 60 percent in 2020

29、(Figure 2).The bottom line:Siloed data keeps utilities from having a complete and clear picture of their assets and operations and how best to invest in them.In addition to digital waters influences on the water industry,our report examines:Climate Change:Utilities and communities face an evolving c

30、hallenge to harden their water,wastewater and stormwater infrastructure and assets against drought,flooding,wildfires and other weather-related disasters that appear to be gaining in terms of frequency 30.0%Data largely still in silos and not integrated5.0%Robust,fully integrated approach17.0%Collec

31、ting lots of data that is leveraged effectivelyFigure 2Which of the following statements best describe the current data management practice at your organization?(Select one for each set)Source:Black&Veatch 11.0%Collecting some data but not leveraging effectively22.0%Collecting some data and leveragi

32、ng effectively65.0%Strong,and getting stronger,but not fully integrated50.0%Collecting lots of data but not leveraging effectively2021 STRATEGIC DIRECTIONS:WATER REPORT|7and intensity as a result of climate changes.Impacts from climate change ranked fifth among respondents most significant perceived

33、 resilience concerns.By beginning or advancing the planning process for operational resilience in the near term,utilities can help to provide water security in the future.Contaminant Removal:Many water utilities will have to upgrade their systems to meet new maximum contaminant levels(MCLs).The MCLs

34、 namely per-and polyfluoroalkyl substances(PFAS),or so-called“forever chemicals”that dont easily biodegrade.Momentum looks to be building at the state and federal levels(e.g.,H.R.2467,the PFAS Action Act of 2021)to study treatment technologies and establish limits for PFAS in water sources.Tomorrows

35、 Infrastructure:More utilities are deploying digital capabilities,including digital mapping to catalog utility systems and assets,evidence that digital technology is taking a firmer hold across the water and wastewater industry.Work is happening that pushes past data analytics to introduce new oppor

36、tunities in digital water,from treatment innovations to advances in Internet of Things(IoT)integration.Politics of Water:The water and wastewater industry is chronically underfunded,and the value of water often is misunderstood and underappreciated.Hope is springing anew in the sector that significa

37、nt,instrumental investments in water infrastructure may be on the horizon,given the new presidential administrations proposal of a robust funding package.COVID-19 and the Water SectorAcross the spectrum of water utilities,the COVID-19 pandemics impact was profound from the moment it began its sweep

38、through the U.S.in early 2020.Industries and businesses shuttered,forcing tens of millions of layoffs that,in turn,produced delinquencies in water bills,cutting into the revenues and cash flows of utilities big and small.By and large,they suspended water and wastewater shutoffs to past-due accounts,

39、both as a humane gesture and as an acknowledgement of the importance of water and sanitation during a health crisis,regardless of ones ability to pay.Some utilities forgave the unpaid amounts;others deferred them through extended payment plans.Work is happening that pushes past data analytics to int

40、roduce new opportunities in digital water,from treatment innovations to advances in Internet of Things(IoT)integration.2021 STRATEGIC DIRECTIONS:WATER REPORT|8Closures of big commercial and industrial(C&I)water customers adversely impacted utility revenues and cash flows as water demand shifted to r

41、esidential areas,where displaced workers suddenly found themselves working remotely.Two-thirds of respondents to Black&Veatchs survey reported that the outbreak had at least a moderate impact on their day-to-day operations.But the sector weathered the storm and learned from it.More than two-thirds o

42、f respondents credited COVID-19 for their organizations increased consideration of technology,pointing to the pandemic-forced remote working practices of their employees.Thirty-two percent report giving more thought to customer engagement,with 29 percent saying theyre supporting increased remote ope

43、rations and automation(Figure 3).As the survey shows,utilities appear to be moving beyond their historical business activities and increasing their engagement with digital and electronic management approaches.Water,wastewater and stormwater utilities found that perhaps their data management wasnt as

44、 robust as they thought during the operational challenges of COVID-19,inspiring them to ramp up efforts to harness and optimize use of information.Despite its impacts,the pandemic amplified the opportunity and need to accelerate innovation in strategy,operations and funding to protect human health a

45、nd the environment,along the way greasing the economic engine that comes from infrastructure investment.More than ever,the industry is at a crossroads to invest in its systems,leverage new funding sources,collaborate with partners,plan its systems holistically and prioritize water as a way to revita

46、lize,rejuvenate and equitably build our communities of the future.Now is the time for the water industry to make change.ABOUT THE AUTHORCindy Wallis-Lage is president of Black&Veatchs water business,leading the companys efforts to address water infrastructure needs around the world.A global champion

47、 for the worlds water resources,she advocates understanding waters true value and promoting its resilience so that communities may achieve their social,economic and environmental sustainability goals.Wallis-Lage has been involved in more than 100 projects worldwide,helping public and private entitie

48、s successfully develop,enhance and manage their water,wastewater and stormwater facilities and infrastructure.Figure 3Would you say that your organization is giving more consideration to technology because of COVID?(Select all that apply)Source:Black&Veatch67.8%Yes,remote work for professionals31.5%

49、Yes,more consideration to customer engagement 29.4%Yes,more remote operation/automation 18.9%Yes,more remote monitoring/diagnostics 20.3%No Providers of drinking water,treated water and stormwater solutions have tended to give thoughts of climate change a relatively cold shoulder,given their other d

50、emands ranging from chronically aging infrastructure and workforces to shifting regulations.A new iceberg should give them pause.In May 2021,a slab of ice bigger than Rhode Island at roughly 105 miles long and 15 miles wide,covering more than 1,600 square miles sheared off an Antarctic ice shelf,mak

51、ing it the worlds biggest iceberg.Such calving events arent uncommon,but scientists who have seen Antarctic ice shelves rapidly disintegrate in recent years suspect climate change.The suspicion of climate change induces concerns about rising sea levels and related questions about the resiliency of w

52、ater utilities,particularly along low-lying coastal areas.As impacts of climate change manifest themselves elsewhere in the form of expansive,seemingly more common droughts,flooding,hurricanes and wildfires,questions arise.Are utilities and communities doing enough to harden their water,wastewater a

53、nd stormwater infrastructures and assets against such threats?Or are they at least starting to plan for such upgrades in the interest of dependable water security and supply?The short answer is that theres much more the industry needs to be doing to become resilient,according to a survey of more tha

54、n 200 U.S.water industry stakeholders surveyed for Black&Veatchs Strategic Directions:Water Report.Impacts from climate change ranked fifth among respondents most significant perceived resilience concerns,which was outdistanced handily by potential catastrophic infrastructure failure the top choice,

55、at roughly two-thirds of respondents.Those results may have been influenced by the powerful mid-February winter storm that blanketed much of Texas with snow,ice and record low temperatures,knocking out power and heat to millions of homes and businesses for days and disrupting water service.Natural o

56、r human-made disasters some associated with climate change came in second at nearly six in 10 respondents(57 percent),down dramatically from last years 84 percent.Extended drought and water supply restrictions followed at 44 percent,with climate change impacts next at 29 percent,relatively unchanged

57、 from the previous year(Figure 4).2021 STRATEGIC DIRECTIONS:WATER REPORT|9As Climate Change Concerns Rise,Utilities Must Elevate Thoughts of ResilienceBy Ed Rectenwald,Jim Schlaman and Andrew Smith2021 STRATEGIC DIRECTIONS:WATER REPORT|10The Texas deep freeze highlighted in dramatic fashion an often

58、-overlooked fact our energy,electricity,water,transportation and communications infrastructure systems are intertwined.When one system fails,it can create cascading catastrophes.Increasingly extreme weather events should compel water utilities many underfunded and starved for capital to proactively

59、and thoughtfully plan for ways to harden their assets as a backstop.Last year alone,a historically busy Atlantic hurricane season produced 30 named storms,including a half dozen major hurricanes.Severe wildfires burned millions of acres of land in California,Colorado and Oregon and elsewhere around

60、the globe while flooding inundated portions of Louisiana,Michigan and Tennessee.Midway through 2021,much of the western U.S.remained gripped by drought and wildfires.Resiliency Remains a Lesser PriorityTo little surprise,projects meant to ensure or enhance water quality the chief mandate of water pr

61、oviders held the most sway among the surveys respondents,with roughly four in 10 casting that as the highest prioritization.Efforts to bolster the conditions of assets or to replace them altogether was the principle priority of one-quarter of respondents,followed by 20202021Infrastructure catastroph

62、ic failure55.7%67.4%Natural or man-made disaster83.5%57.3%Cyberattack34.0%56.2%Extended drought/supply restrictions38.1%43.8%Impacts from climate change30.9%29.2%Terrorist attack12.4%5.6%Figure 4What are your most significant resiliency concerns?(Select up to three concerns)Source:Black&Veatch Three

63、-quarters of larger systems surveyed said water conservation and/or drought management was part of their blueprint,compared to 63 percent of smaller systems.2021 STRATEGIC DIRECTIONS:WATER REPORT|11addressing capacity and growth(17 percent)and operations and efficiency(12 percent).Projects meant to

64、bolster resiliency drew just 5 percent,with nearly three in 10 labelling resilience as their lowest priority(Figure 5).The takeaway:Many system managers direct their energy and focus on meeting state and federal water quality standards and simply keeping the system running.For managers,any issues be

65、yond the jobs operational requirements tend to get kicked down the road as“tomorrows crisis”something to address only after todays crises are managed.Bigger water utilities those serving at least 500,000 people listed resiliency as their third-highest priority,behind water quality and matters involv

66、ing asset condition or replacement.For utilities with fewer than 500,000 customers,resilience languished at the bottom of five priority choices,underscoring that resilience planning is a luxury for those smaller water systems.A similar split between larger and smaller water utilities surfaced when r

67、espondents were asked about elements of their water plan.Three-quarters of larger systems surveyed said water conservation and/or drought management was part of their blueprint,compared to 63 percent of smaller systems.Officials at systems of various sizes had roughly the same responses about scenar

68、io planning and new reservoir storage.But a large gap emerged when it came to climate change or variability,with half of respondents at larger utilities saying such factors were part of their water roadmap compared to 17 percent of smaller water systems(Figure 6).The Value of Water and Climate Chang

69、es ImpactThe U.S.built a lot of water and wastewater infrastructure in the 1950s and 1960s,but capital spending since has dropped off sharply.Until systems break,water and wastewater functions remain an“out of sight,out of mind”business.But breakdowns are becoming more frequent,given the prevalence

70、of aging infrastructure stressed by population growth and migration.20.9%16.3%12.8%9.3%25.6%19.8%16.3%11.6%11.6%24.4%17.4%15.1%17.4%15.1%9.3%23.3%19.8%16.3%29.1%4.7%Water qualityCondition/replacementOperations/efficiencyCapacity/growthResiliency1 Highest priority 2 3 4 5 Lowest priority Figure 5How

71、are the following types of projects being prioritized by your organization?Rank the following from 1(highest priority)to 5(lowest priority).Source:Black&Veatch Average2.32.73.03.43.626.7%40.7%31.4%34.9%30.2%2021 STRATEGIC DIRECTIONS:WATER REPORT|12As worries about climate change escalate and citizen

72、s,regulators and other stakeholders demand greater resiliency in such critical infrastructure utilities big and small would be well-served to strategize thoughtfully now about upgrades,knowing that such projects are years in the making.Water and wastewater utilities should begin by having earnest,ho

73、nest conversations about the value of water with their boards,critical stakeholders and customers,pressing the salient point that the environment is not static.Whether on the coast or in Americas breadbasket,its not about the infrastructures performance over past decades but what challenges the asse

74、ts will have to handle sooner or later.Its far cheaper to repair or replace assets now,before systems weaken and fail,than playing catchup and pointing fingers when trouble strikes.ABOUT THE AUTHORSEd Rectenwald is a hydrogeology national practice lead for Black&Veatchs water business.With 26 years

75、of technical and management experience,he successfully has managed projects and teams across the globe related to design,permitting,construction,expansion and operation for wellfields,Class V aquifer storage and recovery(ASR),aquifer recharge and Class I injection well systems.Jim Schlaman is the di

76、rector of planning and water resources for Black&Veatchs water business and serves on the One Water Council for the U.S.Water Alliance.During the past 19 years,he has worked across the country on all types of planning and water resources projects.including water supply and reuse/alternative water su

77、pply evaluations,integrated planning and water quality studies,and stormwater/flood control planning and design projects.Andrew Smith is the national watershed,stormwater and flood management practice lead for Black&Veatchs water business in the Americas.Based in Kansas City,Smith leads the developm

78、ent and delivery of a range of solutions ranging from watershed management and green infrastructure to complex hydraulic modelling and design.He is a recognized leader in the fields of strategic program development and asset management for stormwater.Figure 6Which of the following elements are inclu

79、ded in your water supply plan?(Select all that apply)Source:Black&VeatchBy Population ServedLess than 500,000500,000 or moreWater conservation and/or drought management62.9%75.0%Scenario planning57.1%60.7%New reservoir storage37.1%32.1%Climate change/variability17.1%50.0%New surface water supplies14

80、.3%32.1%We do not have a water supply plan14.3%3.6%2021 STRATEGIC DIRECTIONS:WATER REPORT|13As the water and wastewater industry replaces its aging infrastructure and continues to seek ways to reduce energy consumption,is there a greener,more sustainable way to approach water and wastewater systems

81、in the future?Black&Veatchs 2021 Strategic Directions:Water Report survey shows progress being made when it comes to sustainability.Opportunity for this is high,given that the industry can address the physical construction of its assets by considering more sustainable alternatives to traditional con

82、crete and steel.Additionally,the industry can confront its own energy-intensive nature by investing in renewable energy and energy recovery programs to help keep water and wastewater plants humming.Top Drivers,Strategies Toward SustainabilitySurvey data shows that financial drivers(56 percent)and st

83、rong consumer demand(42 percent)outrank political pressure(36 percent)when driving the water industry to set sustainability goals.These motivations illustrate how sustainability awareness has evolved.Only a decade ago,political pressure was the primary driver as the government Decarbonizing the Wate

84、r IndustryBy Jay Kemp and Jason Rowell2021 STRATEGIC DIRECTIONS:WATER REPORT|14wielded the U.S.Environmental Protection Agency(EPA)to enact change through both regulation and funding by supporting state revolving loan funds.Cost continually is a consideration,but utilities can stretch their funding

85、by investing in existing assets.In the wastewater industry,this approach is called“intensifying the process,”to get more performance out of existing process units.A lot of concrete water and wastewater infrastructure already exists,and improving the efficiency and effectiveness of these assets allow

86、s the industry to avoid costly new construction and lower its carbon footprint.The survey also found that renewable energy,water loss mitigation and new/alternative water supplies are key components in many sustainability strategies,as utilities reconsider how they manage their product to reduce ene

87、rgy needs and losses(Figure 7).The sustainability strategies seek more efficient use of water and energy resources with subsequent decreases in carbon emissions.Decarbonization is a unifying principle of sustainability.Renewable natural gas(RNG)derived from biogas a byproduct of wastewater treatment

88、 offers the immediate potential to aid in decarbonizing the natural gas grid,because the infrastructure is in place.RNG directed to vehicle fuel is incentivized by the EPA Renewable Fuel Standard and California Low-Carbon Fuel Standard.Renewable portfolio standards for natural gas are on the horizon

89、.These opportunities can help the industry decarbonize while leveraging incentives to help make it cost-neutral or even profitable.Improved leak detection with no-dig technology is driving improvements in addressing water loss.Identifying and fixing leaks saves energy and the resource itself.Water r

90、euse also is Figure 7Does your organization have a strategy to become more sustainable?If so,whats included in that sustainability strategy?(Select all that apply)Source:Black&Veatch48.9%Renewable energy 43.8%Water loss mitigation 32.1%New/alternative water supplies 24.1%Decarbonization goals7.3%Low

91、-carbon building materials21.2%None of the aboveRenewable natural gas derived from biogas a byproduct of wastewater treatment offers the immediate potential to decarbonize the natural gas grid,because the infrastructure is in place.2021 STRATEGIC DIRECTIONS:WATER REPORT|15gaining momentum because of

92、 pre-existing technologies.Water reuse has great potential for commercial and industrial users as well.Although only 7 percent of respondents said they plan to integrate low-carbon building materials into their overall sustainability strategy,a separate question in the survey found that a combined 6

93、1 percent would be willing to consider the use of sustainable building construction materials even if they cost more.Low-carbon material may be produced by emerging technologies that have historically carried a higher price tag.These solutions include removing carbon dioxide from or permanently stor

94、e it in concrete,or by using legacy materials such as ductile iron pipe,which is made from recycled iron and is more sustainable than plastic.The industry can recoup the added cost through incentives or pass them on to ratepayers,opening the door for future adoption.Proposed Funding in the Infrastru

95、cture Bill When polled on the Biden Administrations proposed American Jobs Plan,59 percent of respondents showed support for including decarbonization incentives in the federal bill,while 41 percent did not.This suggests that water and wastewater utilities may have other priorities,such as upgrading

96、 aging infrastructure and implementing new systems rather than decarbonizing.It also could mean that respondents may not see themselves as significant emissions contributors when compared to carbon-heavy industries such as power,transportation,and the commercial and industrial sector.But when asked

97、which components of the American Jobs Plan are expected to pass Congress,respondents anticipate all of Bidens water infrastructure measures to advance,albeit at a lower budget amount than proposed(Figure 8).Figure 8Which water components of Bidens infrastructure plan do you think will eventually pas

98、s in Congress?(Select one per row)Source:Black&Veatch$45 billion to replace 100%of lead pipes and service lines$56 billion in grants and low-cost flexible loans to states,tribes,territories and disadvantaged communities$10 billion to monitor and remediate PFAS31.8%12.1%11.2%44.8%31.8%6.4%11.8%50.0%2

99、4.4%8.6%20.8%46.2%Will pass mostly unchangedWill pass at a lower budget amountWill pass at a higher budget amountWill not pass as written2021 STRATEGIC DIRECTIONS:WATER REPORT|16Nearly nine out of 10 respondents expect to see some money allocated to replace lead pipes and lines in the U.S.,although

100、45 percent expect to see a lower number than the proposed$45 billion.Responses were similar when it came to the proposed$56 billion in grants and loans,with 88 percent expecting some amount of funding to be provided.There was less confidence in funding to mitigate per-and polyfluoroalkyl substances(

101、PFAS)in drinking water.Looking to Biogas for Energy,RevenueMethane in biogas is an energy source that can offset purchased energy or produce a revenue stream when sold with incentives.According to Black&Veatchs survey,some 61 percent of wastewater utilities are leveraging methane in some way(Figure

102、9).The 32 percent only using some of their methane likely burn it to produce the heat required to support the anaerobic digestion process that generates the biogas.The 29 percent that makes full use includes those that have invested in RNG production or combined heat and power(CHP)systems,closing th

103、e loop on their energy cycle.Overall,the water industry is investing in forward-thinking strategies around sustainability,with efforts that support decarbonization playing a heavy role.Although carbon-intensive industries may have a larger impact when it comes to lowering emissions,the water and was

104、tewater industry continues to adopt technologies and trends that support sustainability,particularly when it comes to better managing existing assets and considering renewable energy opportunities.ABOUT THE AUTHORSJay Kemp is a project manager and senior process engineer with Black&Veatchs water bus

105、iness.Kemp is experienced in energy-saving wastewater technologies and biogas-to-energy service offerings,including biogas upgrades for vehicle fueling systems.He supports utility and industry clients by providing a range of energy solutions that help reduce operating costs,generate revenue and gain

106、 additional capacity of fixed assets.Jason Rowell is an associate vice president and global decarbonization solutions manager with Black&Veatchs power business.With more than two decades of experience including 13 years with Black&Veatch Rowell directs the development and implementation of industry-

107、leading sustainable decarbonization solutions across multiple industry sectors.He is a renowned expert in deploying and promoting the adoption of hydrogen technologies at scale and sits on the board of directors with the California Hydrogen Business Council.32.3%We make some use of the methane thats

108、 created38.7%We make little to no use of the methane29.0%We take full advantage of our methaneFigure 9To what degree is your utility taking advantage of the biogas(e.g.methane)produced during treatment from an energy and revenue standpoint?(Select one)Source:Black&VeatchSustainable Solutions,Data Us

109、e and Integrated Solutions Plugged into a Circular Economy Will Drive Tomorrows Water Infrastructure By Sandeep SathyamoorthyTechnology is taking a firmer grip across the water and wastewater industry,pushing past data analytics to introduce new opportunities from improvements in treatment technolog

110、y to advances in Internet of Things(IoT)integration.Early adopters are seeing returns while others are just starting to embrace digitization,with the Ohio Rural Water Associations turning to digital mapping to catalog its utility system and assets as a case in point.Amid estimates that the world wil

111、l invest tens of trillions of dollars in infrastructure in the next two decades,utilities are weighing their options around data and sustainability as they look to design tomorrows water infrastructure.Strategically Developing Sustainable SolutionsSustainability continues to play a starring role as

112、utilities prepare and plan for their future infrastructure.This is particularly true when it comes to efforts that support decarbonization renewable energy,decarbonization goals and low-carbon building materials.When asked,in a survey of more than 200 U.S.water industry stakeholders for Black&Veatch

113、s 2021 Strategic Directions:Water Report,which components they plan to include in their sustainability strategies,respondents pointed to renewable energy,water loss mitigation and new/alternative water supplies as their top three focus areas(Figure 10).With one-third of utilities planning to include

114、 new or alternative water supplies in their sustainability strategies,the survey also asked whether respondents plan to consider potable reuse.A combined 56 percent said potable reuse will likely increase in their region;36 percent said probably not,and 8 percent said definitely 2021 STRATEGIC DIREC

115、TIONS:WATER REPORT|17Organization TypeUtilities*Non-UtilitiesRenewable energy56.5%36.5%Water loss mitigation55.3%25.0%New/alternative water supplies37.6%23.1%Decarbonization goals20.0%30.8%Low carbon building materials3.5%13.5%None of the above11.8%36.5%Figure 10Does your organization have a strateg

116、y to become more sustainable?If so,whats included in that sustainability strategy?(Select all that apply,by organization type)Source:Black&Veatch*Non-utilities include consulting firms,educational institutions,OEMs,research or analytical laboratories,and other stakeholders27.5%Very confident61.3%Som

117、ewhatconfident7.5%Very unconfident3.7%Somewhat unconfidentFigure 11How confident are you in the accuracy of your data captured from sensors?Source:Black&Veatch2021 STRATEGIC DIRECTIONS:WATER REPORT|18not.Potable reuse increasingly is a primary or secondary driver,particularly in arid regions of the

118、U.S.where sustainable water supplies are at a premium,such as Arizona,California,Nevada and Texas.A Growing Embrace of DataWater and wastewater utilities are becoming more comfortable utilizing data derived from online sensors,according to Black&Veatchs survey.A combined 89 percent of respondents re

119、ported they are“somewhat”or“very”confident in the accuracy of their data(Figure 11).Ninety-five percent said separately that their confidence is increasing.In the 2020 Strategic Directions:Water Report,most respondents indicated they were collecting a high volume of data but not leveraging value.Thi

120、s illustrates increased awareness that data both digital and analog can inform decision-making,from process management to large asset maintenance and rehabilitation.The increasing adoption of sensors and real-time data in the water industry is linked to continued improvement of sensor technologies a

121、nd reduction in sensor costs.Seeing this return on investment continues to reinforce their decision to collect,manage and analyze this critical information.Organizations continue to build knowledge capital and skillsets around managing smart technologies,maximizing data utility through analytics and

122、 data-driven decision making.Utilities with teams that specialize in these areas will continue to improve operations and maintenance going forward,allowing them to increase trust and reliance on data.This validation will continue to build additional confidence,resulting in a growing willingness to i

123、nvest in advanced IoT technology,a critical consideration as industry begins to address replacing its aging assets and embrace a fully connected,integrated system in the future.Building Tomorrows InfrastructureWith this data in hand,what does the future of water infrastructure look like in America?T

124、he Biden Administration has laid out significant funding in its proposed American Jobs Plan.As written,the legislation would allocate$111 billion to ensure clean,safe drinking water,including$56 billion to modernize drinking water,wastewater and stormwater systems.Utility organizations are enthusias

125、tic about the opportunity to develop and implement a broad range of integrated solutions targeting clean energy,resilient water supply and delivery and sustainable solutions to support achievement of U.N.sustainable development goals.Equally exciting is the potential to use 2021 STRATEGIC DIRECTIONS

126、:WATER REPORT|19this funding to enhance the workforce.This infrastructure bill is an opportunity to re-energize and revitalize the water industry similar to the boom in spending following the Clean Water Act.Wastewater utilities,for example,historically have been stewards of the environment,and this

127、 remains an important guiding principle.Today,some utilities are exploring sustainable solutions to help achieve this goal.This requires a multi-faceted approach to reduce the number,environmental footprint and cost of inputs(e.g.,air,energy,chemicals)and incorporates opportunities to upcycle system

128、 inputs into resources that can be used elsewhere(e.g.,soil amendments,biomaterials,renewable energy).This paradigm shift undoubtedly will result in some exciting and novel innovations in the industry.When planning tomorrows infrastructure,strategists should focus on opportunities to integrate every

129、 component of the water life cycle into a broader circular economy system.Water and wastewater utilities could invest in renewable energy,either by purchasing it from a provider or generating their own electricity on-site.Some utilities have sizeable land parcels that could support the development o

130、f on-site renewable energy generation.As the low-carbon fuel standard market continues to drive up the price of natural gas,many utilities are considering renewable natural gas(RNG).This gas could be used to produce materials that can be employed in higher-value industries.One example:the production

131、 of packing chips that go into Amazon boxes.A utility could co-locate a wastewater plant next to a factory that produces those chips and use the outputs from the plant to help produce those materials.The waste then would go to an adjacent recycling facility.Data centers,as another example,require la

132、rge amounts of high-quality water for cooling and could be co-located next to a wastewater plant,with the treated water used to cool the plant.The heated water then would be pushed back into the wastewater plant in a closed loop.Conceptually speaking,lets assume the plant is using 20 percent of the

133、flow in the closed loop.Each time it cycles through,it raises the temperature of the wastewater by one or two degrees.This could benefit the biology,offering a better way to integrate the treatment facility into a true circular economy system.The possibilities for reimagining tomorrows water infrast

134、ructure are boundless if utilities continue to prioritize integrated solutions,sustainability and data management in planning and implementation.However,the water industry has to remain mindful of ensuring innovation equity,where utilities of all sizes have access to these advanced IoT technologies

135、as they chart this exciting course forward.Doing so will help drive these integrated,smart,connected and sustainable engineered ecosystems.ABOUT THE AUTHORSandeep Sathyamoorthy serves as global practice and technology leader for innovation and applied research with Black&Veatchs water business.An in

136、dustry expert with a track record of successfully leading applied research in wastewater treatment and reuse,Sathyamoorthy is responsible for driving innovation and research across the areas of water and wastewater treatment,sustainability,energy efficiency,solids and organics management,and digital

137、 water,analytics and artificial intelligence.The water industry has to remain mindful of ensuring innovation equity,where utilities of all sizes have access to these advanced IoT technologies as they chart this exciting course forward.2021 STRATEGIC DIRECTIONS:WATER REPORT|20Weathering COVID-19:A Wa

138、ter Utility Success Story,With Lessons LearnedBy Ann Bui,Zeynep Erdal and Gary Hunter The challenges facing utilities that supply water and those that rid it of pollutants are well-known,well-documented and enduring.Aging infrastructure and an aging workforce remain chronic issues.Evolving regulatio

139、ns,tight budgets and the rising demand for greater resilience against climate change and the increasingly extreme weather events it brings have challenged utilities to adequately prioritize resilience and infrastructure renewal needs.The continued impacts of COVID-19 on communities have made the cha

140、llenges more pronounced.But what has emerged is a sector long notorious for being slow to innovate or transform that rose to the challenge and continued to deliver its essential services by being remarkably agile and adaptable.Amid the pandemics sweep,water,wastewater and stormwater interests kept t

141、he water flowing and the pumps running despite considerable challenges,including staffing issues due to quarantines and lower revenues resulting from payment delinquencies by ratepayers suddenly jobless because of pandemic-related shutdowns.One-quarter of respondents to a Black&Veatch surey of more

142、than 200 U.S.water industry stakeholders said the pandemic significantly impacted their day-to-day operations,with more than one-third 36 percent saying it affected 2021 STRATEGIC DIRECTIONS:WATER REPORT|21them moderately.An additional 28 percent said it only had a small impact,indicating that utili

143、ties could adapt and continue to provide excellent service to their customer base.Utilities serving smaller populations(fewer than 500,000 people)perceived COVID-19 as having less of an impact operationally,with 22 percent labeling the effect extreme or significant,compared to 31 percent of utilitie

144、s with customer bases above that threshold(Figure 12).Such results were promising if not surprisingly low in terms of disruption,perhaps reflecting that automation among utilities mitigated the leaner shifts forced by the pandemic.Or it might illustrate that utilities adapted nimbly to the day-to-da

145、y impacts of the virus by implementing social distancing guidelines or factoring the loss of infected,quarantined workers into their scheduling plans.By and large,the survey found that utilities managed to avoid large-scale,COVID-19-related staffing cuts.Eighteen percent of respondents said they tri

146、mmed their workforces in some capacity.The upside:such downsizing,however nominal and always as a last resort,could and should incentivize cross-training of employees a proven way to ensure that workers efficiently gain resilience in the workforce.This effort also provides additional opportunities f

147、or staff resiliency due to changes in the utilitys workforce.Remote Working:The New Normal?The merits of remote work in the water utility space during the pandemic proved to be an awakening for many utilities,given Utilities adapted nimbly to the day-to-day impacts of the virus by implementing socia

148、l distancing guidelines or factoring the loss of infected,quarantined workers into their scheduling plans.28.3%Small impact 5.8%No impact at all 5.8%Extreme impact24.6%Significant impact35.5%Moderate impactFigure 12What impact has COVID had in your day-to-day operations?(Select one)Source:Black&Veat

149、ch2021 STRATEGIC DIRECTIONS:WATER REPORT|22that more than two-thirds of respondents(68 percent)cited the outbreak for fanning their use of technology to transition to remote work for continued service.An additional three in 10 credited the pandemic with feeding their consideration of technology for

150、better customer engagement or more remote operations and automation(Figure 13).To what extent remote working continues may depend on each utilitys structure.However,those who continue offering the flexibility to do the job off-site may find worker recruitment and retention easier.The Big Picture Pos

151、t-COVID-19:A Holistic Evaluation of CybersecurityEven as water utilities deftly pivoted to remote working to weather the COVID-19 storm,taxing their information technology crews in the process,it also highlighted the imminent need to strengthen the cybersecurity of their digital systems and data net

152、works.As the pandemic lingers,utilities should seize the moment to think holistically and examine their robustness against cyber threats.When considering cybersecurity,it is important to account for the ever-increasing array of operating systems that remote workers use and the prospect that their te

153、chnology tools may be vulnerable.Fresh evidence that cyber threats are real surfaced in February when an older version of Windows and a vulnerable cybersecurity network allowed a hacker to access a Florida water treatment plants computer system,ABC News reported,citing a memo by federal investigator

154、s.Authorities said the hacker used a remote access program shared by workers at the plant in Oldsmar,Florida,just northwest of Tampa,and tried to taint the water supply of the city with a caustic chemical.The hacker was thwarted by a plant manager who spotted the chemical being tampered with and imm

155、ediately returned the system to normal before any major damage occurred.Oldsmar officials disabled the remote-access system since the attack,according to reports from The Associated Press.However,officials warned other city leaders in the region about the incident and suggested they check their syst

156、ems.Experts say municipal water and other systems can be easy prey for hackers because the computer infrastructure of local governments tends to be underfunded.Figure 13Would you say that your organization is giving more consideration to technology because of COVID?(Select all that apply)Source:Blac

157、k&Veatch67.8%Yes,remote work for professionals31.5%Yes,more consideration to customer engagement 29.4%Yes,more remote operation/automation 18.9%Yes,more remote monitoring/diagnostics 20.3%No 2021 STRATEGIC DIRECTIONS:WATER REPORT|23COVID-19 and the Utility WorkforceIn an industry dealing with the ch

158、ronic issue of an aging workforce,roughly three-quarters of respondents(74 percent)report theyre holding the line on outsourcing work.Nineteen percent say theyre outsourcing more,predominantly in their engineering and technical staffing ranks and,to a lesser degree,IT and operations functions.Such o

159、utsourcing could be in response to retirements in the sector that has grappled with an aging workforce or to the exodus of younger workers chasing other opportunities(Figure 14).In the interest of cost savings,more outsourcing may gain momentum in an industry striving to jettison its reputation as s

160、low-footed and become more known for being agile.The sector already leaped in that direction by staring down COVID-19s challenges.Now comes the time to think about proactive steps for new or recurring crises.Taking stock of and folding in positives and lessons learned during the pandemic can be an o

161、pportunity to enhance operations blueprints for the next challenge.ABOUT THE AUTHORSAnn Bui is a managing director and co-leads Black&Veatch Management Consulting Groups strategy advisory water market business.Besides providing clients with strategic financial management strategies,her responsibilit

162、ies include driving growth and innovation to water utilities in the areas of financial and advisory planning,advanced metering,customer experience,asset integrity and enterprise risk management services.Bui has more than 30 years of experience with clients in North and South America,Europe,and Asia.

163、Zeynep Erdal leads integrated solutions for Black&Veatch,where she specializes in water infrastructure solutions that integrate resource recovery and resilience.She has 25 years of experience in water reclamation projects around the world and is a recognized expert in treatment technologies and inno

164、vation,focusing on the water-nutrient-energy nexus as well as integration of water system solutions.Gary Hunter is a principal wastewater process specialist who focuses on disinfection and public health issues throughout the world.He has more than 36 years of experience focusing on providing innovat

165、ive treatment solutions that protect the public and environment while being sustainable and resilient.Figure 14Would you say your organization is outsourcing more or less compared to previous years?(Select one)Source:Black&Veatch 6.5%Less 19.4%MoreWhich functions are you outsourcing more?(Select all

166、 that apply)Engineering/technical staff 63.0%Information technology(IT)staff 33.3%Operations staff 22.2%Finance/accounting staff 14.8%Administrative staff 11.1%Human resources(HR)staff 11.1%Marketing/sales staff 11.1%Other functions 14.8%74.1%About the same2021 STRATEGIC DIRECTIONS:WATER REPORT|24Wa

167、ter as a Business:Data,Innovation and Planning Drives ValueBy Chris deBarbadillo,Kent Lackey,Bo Poats,Jeffrey Stillman and James StrayerA Virginia wastewater district serving hundreds of thousands of homes and businesses is thinking big and looking ahead.The Hampton Roads Sanitation District is stri

168、ving to demonstrate what is doable and investing mightily to show it.The districts billion-dollar“Sustainable Water Infrastructure for Tomorrow”program,or SWIFT,looks to eventually inject 120 million gallons a day of treated wastewater into a shrinking aquifer to replenish it,lessening the amount th

169、ats released into rivers.According to the Daily Press of Norfolk,Virginia,the district hopes to have five plants running by 2030.The project more than underscores the notion that bold ideas can and do take root in a sector that has been slow to change.It reflects that it doesnt always have to be bus

170、iness as usual,as Black&Veatchs 2021 Strategic Directions:Water Report bears out.Based on expert analyses of a survey of more than 200 U.S.water industry stakeholders,the report shows that water utilities are fostering innovation in an evolving sector.And more than anything,theyre increasingly lever

171、aging data to drive better decision-making,optimize and prioritize system investments and drive cost efficiencies that propel sustainable,resilient systems and results.Data,Data Everywhere,But Wheres the Intelligence?Rapid advances in business intelligence software and computing and data analytics a

172、re providing the opportunity to gather and integrate existing data with evolving next-generation,cost-effective sensors and smart devices.Such 2021 STRATEGIC DIRECTIONS:WATER REPORT|25rich data sources can be overwhelming,but they also allow for predictive analytics to detect leaks,identify overflow

173、s,forecast usage,predict failures,inform investments,reduce lifecycle costs and much more.But even though Black&Veatchs survey shows a growing appreciation for the value of data,its typically not harnessed for maximum potential.Half of respondents said theyre collecting large amounts of data but not

174、 leveraging it effectively,while slightly more than one-fifth(22 percent)say theyre gathering just some data and putting to good use(Figure 15).Nearly two-thirds of respondents described their data management practice as strong and strengthening,yet not fully integrated.Thats up 9 percentage points

175、from 2020.At first blush,that appears to be an improvement,but it actually reflects a reduction of utilities reporting a robust,fully integrated approach(from 15 percent in 2020 to just 5 percent in 2021).This suggests that during the COVID-19 pandemic,utilities awakened to additional data utilizati

176、on options and the fact that their use of data wasnt as robust as they previously believed.An additional 30 percent said their data is siloed and unintegrated,unchanged from the previous year.The surveys findings appear to reflect that water utilities are discovering that their old way of doing busi

177、ness was fine when they had limited amounts of data coming in,but the tsunami of data being collected requires a more robust approach to capture its full potential.The Need for InnovationIts not easy fostering innovation in organizations that have,in many cases,operated for more than a century based

178、 on legacy systems,given organizational inertia and the mindset that“weve always done it that way.”But the old business model build essential infrastructure and charge the public for their share of the asset no longer is viable.Black&Veatchs survey found that water and wastewater leaders are trying

179、to foster innovation in various ways,typically in relation to organizational culture.Six in 10 respondents say their organization is promoting innovation through open lines of internal communication and by empowering employees to make decisions.However,its important to note that these are minimum co

180、nditions Figure 15Which of the following statements best describe the current data management practice at your organization?(Select one for each set)Source:Black&Veatch30.0%Data largely still in silos and not integrated65.0%Strong,and getting stronger,but not fully integrated50.0%Collecting lots of

181、data but not leveraging effectively5.0%Robust,fully integrated approach22.0%Collecting some data and leveraging effectively11.0%Collecting some data but not leveraging effectively17.0%Collecting lots of data that is leveraged effectively2021 STRATEGIC DIRECTIONS:WATER REPORT|26for innovation,as oppo

182、sed to voicing proactive encouragement.More than half said theyre also doing so by folding innovation into their strategic plans(Figure 16).Innovation is a process blending leadership and management much like implementing a safety program you can neglect it,allow it or encourage it with culture and

183、appropriate programs.The survey results suggest that companies in the water industry remain in an early stage of maturity when it comes to innovation.The development of innovation metrics will be helpful in signaling the management commitment to data analytics to drive innovation.Innovation wont cha

184、nge the laws of physics or enable water to be teleported from one location to another.But a disciplined inquiry into other ways an organization could envision,fulfill or expand its mission often shines a light on managerial practices or processes that are limiting thinking or action.As the Hampton R

185、oads project shows,water and wastewater utilities looking to survive and thrive as their business environment evolves need to approach innovation as they would any other managerial task:taking tangible steps,breaking down silos and committing to leveraging data to its fullest potential.Pick a desire

186、d end state,create specific measurable goals and metrics to guide progress,set up processes to nurture innovation and measure progress,and ultimately require accountability.ABOUT THE AUTHORSChris deBarbadillo is plant optimization practice leader and a client director in Black&Veatchs water business

187、.She has 33 years of experience in wastewater process engineering,design,operations and research,including nine years of utility experience.Kent Lackey is the East Region managing director for Black&Veatchs water business.He has 26 years of experience supporting all facets of the water industry,from

188、 utility and infrastructure planning to design and construction of water,wastewater and reclaimed water systems facilities and infrastructure.Bo Poats is an asset lifecycle risk management practice leader in the infrastructure modernization offering group of Black&Veatchs Management Consulting.He br

189、ings 40 years of enterprise in risk management,strategic planning and implementation to multiple public and investor-owned utilities.Jeffrey Stillman is Black&Veatchs asset management practice leader for North America.He has 25 years of experience in system planning,program development,modeling,info

190、rmation system integration and business intelligence.James Strayer is the department head for Black&Veatchs planning and asset management team in North America.He has 27 years of experience spanning planning,design,construction,programs and asset management applications.Figure 16How does your organi

191、zation promote and foster innovation?(Select all that apply)Source:Black&Veatch59.3%By having an open line of communication58.6%By empowering employees to make decisions 52.1%By including innovation in our strategic plan 47.1%Through our culture 44.3%By being open-minded 32.9%On a case-by-case basis

192、28.6%By having a department or cross-functional team for innovation15.7%By trying to prevent overwork and employee burnout 2021 STRATEGIC DIRECTIONS:WATER REPORT|27The Politics of Water By Ann Bui,Pamela Lemoine,Francesca McCann,Jim Schlaman and Anna WhiteWith the water and wastewater industry chron

193、ically underfunded,questions around the value of water constantly are in play.The economic impacts of COVID-19 exacerbated this situation.However,the industry is optimistic that it could see game-changing improvements to water infrastructure with the new presidential administration proposing a robus

194、t infrastructure funding package.COVID-19 Impacts on BudgetsAt the start of the COVID-19 pandemic,utilities were concerned that their budgets would be seriously damaged by the financial havoc that was sure to come from the outbreak shutting down the worlds economy.But data from Black&Veatchs 2021 St

195、rategic Directions:Water Report survey of more than 200 stakeholders in the U.S.water industry shows that while some budgets were impacted,the damage was not nearly as significant as originally feared.A few factors helped soften the blow.As businesses shuttered,there were shortfalls on the commercia

196、l and non-residential side,but as schools closed and working professionals shifted their work into their homes,residential usage increased,helping mitigate the drop in commercial revenue.The influx of cash from three rounds of federal stimulus money also helped reduce the impact of increasing delinq

197、uencies.2021 STRATEGIC DIRECTIONS:WATER REPORT|28It would be foolish,however,to minimize the economic damage caused by the pandemic.The tourism,leisure,hospitality and restaurant industries were sent reeling by the global lockdown.According to the Brookings Institute,cities and regions reliant on to

198、urism and hospitality e.g.,Kahului,Hawaii;Atlantic City and Ocean City,New Jersey;Las Vegas,Nevada;Orlando,Florida;Myrtle Beach,South Carolina;and the Gulf Coasts of Mississippi and Alabama,places that employ one-third of their workforce in these industries continue to face economic hardship.As a re

199、sult,a combined 20 percent of survey respondents reported reducing their capital program budgets,while 31 percent adjusted their operations and maintenance(O&M)budgets(Figure 17).The impacts were significant for those utilities who did experience economic fallout.The pandemic also caused city leader

200、s around the nation to hesitate when it came to enacting revenue increases,either foregoing them entirely or drastically reducing them,forcing utilities to reduce budgets.This hesitancy will continue as leaders make decisions about upcoming budgets,giving the pandemics impacts a“long tail”that is un

201、certain at this time.Delaying necessary rate adjustments generally will result in more O&M and capital costs as aging assets continue to deteriorate,so the short-term relief from no rate increases may give way to potentially much larger future adjustments.Investigating Funding OptionsUtilities have

202、several options when it comes to capital project funding.Survey data shows that Figure 17Has COVID-19 led to a shortage in your budgets?(Select one for each row)Source:Black&VeatchCapital program budget9.8%80.4%9.8%Yes,we have a shortage of over 10%Yes,we have a shortage of 5-10%No,budget is similar

203、 to previous yearsOperations and maintenance budget69.5%9.8%20.7%utilities prioritize state revolving funds(SRFs),federal grant programs,Water Infrastructure Finance and Innovation Act(WIFIA)funding,Federal Emergency Management Agency(FEMA)programs,and public-private partnerships(PPPs)as they consid

204、er various funding sources.Nearly two-thirds of respondents(62 percent)consider SRFs as an alternative funding source.Run by the U.S.Environmental Protection Agency(EPA)and administered at the state level,the Clean Water and Drinking Water SRF programs are a federal-state partnership.The The pandemi

205、c also caused city leaders around the nation to hesitate when it came to enacting revenue increases,either foregoing them entirely or drastically reducing them,forcing utilities to reduce budgets.2021 STRATEGIC DIRECTIONS:WATER REPORT|29programs and partnership provide communities with flexible,low-

206、cost financing to address their highest priority water quality infrastructure projects.In addition,nearly one-third of utilities are considering WIFIA,the federal credit program administered by the EPA to accelerate investment in water and wastewater infrastructure by providing long-term,low-cost su

207、pplemental loans(Figure 18).PPPs ranked relatively high,at 26 percent.Building Resilient Infrastructure and Communities(BRIC),a FEMA disaster mitigation program rather than a disaster response,ranked seventh at 11 percent.The community-based partnership(CBP),a relatively new delivery model,showed 9

208、percent consideration,and utilities appear increasingly interested in CBPs.But not every utility takes advantage of these programs.When asked why not,43 percent of respondents said they were“administratively too burdensome,”while 23 percent said the programs“are too restrictive.”This has been a comm

209、on refrain since the inception of these programs,though most states have made concerted efforts to decrease the administrative burden and make programs easily accessible.The question now:Are utilities banking on the pending American Jobs Plan legislation,the large-scale infrastructure funding packag

210、e proposed by the Biden Administration?Infrastructure Funding Isnt a Cure-AllAs originally written,the proposed infrastructure funding package of the American Jobs Plan could allocate$111 billion in funding to improve the water and wastewater industry,including$10 billion to monitor and remediate PF

211、AS;$45 billion to replace lead pipes and service lines;and$56 billion to modernize drinking water,wastewater and stormwater systems(a drop in the bucket compared to the$1.3 trillion that is estimated to be needed).In late July,a bipartisan group of U.S.senators reached a deal meant to address sticki

212、ng points that had stalled the infrastructure package,calling for more than$550 billion in new federal investments in infrastructure over five years.The release of the bills full text was pending.The Biden Administrations proposed package is robust,but the chances that it will pass as drafted are sl

213、im.Although the additional funding would be significant for the industry,it should not be at the expense of using existing funding options.Utilities still should apply for the many existing low-interest Figure 18 Which of the following sources has your utility looked into for capital project funding

214、?(Select all that apply)Source:Black&Veatch62.4%State revolving funds(SRF)56.5%Other federal grant programs31.8%Water Infrastructure Finance and Innovation Act(WIFIA)27.1%FEMA programs25.9%Public-private partnerships(PPPs)17.6%Community development block grants10.6%Building Resilient Infrastructure

215、and Communities(BRIC)9.4%Community-based partnerships2021 STRATEGIC DIRECTIONS:WATER REPORT|30loan and grant programs and explore P3s and community-based partnerships.The possibility of this extra funding would be meaningful in helping move infrastructure renewal forward,but it does not remove the d

216、uty from utilities to have their own solvent revenue streams in place.While the funding could allow utilities to accelerate certain critical initiatives such as addressing unforeseen issues that include PFAS and lead service line replacement it is not a panacea.Let this be a call to action that inve

217、sting in water,wastewater and stormwater infrastructure must remain a high priority even if this additional federal funding comes to fruition.The industry still is woefully underfunded,and utilities must continue to manage spending,look at capital prioritization and advocate for financial support wh

218、ile pursuing traditional and alternative funding sources.And if this once-in-a-lifetime funding package allocates money for critical priorities,it will not solve all the industrys problems.The uphill battle for infrastructure investment will remain,and utility customers still will have to contribute

219、 to the cost of reliable water infrastructure.Its up to the industry to not use this potential new funding as a crutch,but rather to leverage it to the fullest to maximize long-term investments in water,wastewater and stormwater.ABOUT THE AUTHORSAnn Bui is a managing director with Black&Veatch Manag

220、ement Consulting,where she leads the water market business.Besides providing clients with strategic financial management strategies,her responsibilities include driving growth and innovation to water utilities in the areas of financial and advisory planning,advanced metering,customer experience,asse

221、t integrity and enterprise risk management.Bui has more than 30 years of global experience with clients in North and South America,Europe and Asia.Pamela Lemoine is a principal consultant with Black&Veatch Management Consulting.She has more than 30 years of experience providing water,wastewater and

222、stormwater utilities with strategic financial planning,cost of service and rate design studies,affordability analyses,cost/benefit analyses and a broad range of strategic financial and management consulting services.She is a member of the American Water Works Association and the Water Environment Fe

223、deration and regularly participates in National Association of Clean Water Agencies conferences and committees.She also serves on the EPAs Environmental Financial Advisory Board.Francesca McCann is a business development director with the InfraManagement Group at Black&Veatch.McCann leads the compan

224、ys alternative funding and financing practice.A leader in the U.S.water industry with expertise in investments,public-private partnerships and project development,McCann served as CEO for Abengoa Water USA,where she successfully led the$3.4-billion Vista Ridge Project in San Antonio,Texas.She also f

225、ounded a consulting company,Global Water Strategies,and started her water career in 2003,covering the water sector for Wall Street.Jim Schlaman is the director of planning and water resources for Black&Veatchs water business and serves on the One Water Council for the U.S.Water Alliance.Over the pas

226、t 19 years,he has worked across the country on all types of planning and water resources projects,including water supply and reuse/alternative water supply evaluations,integrated planning and water quality studies and stormwater/flood control planning and design projects.Anna White is a principal co

227、nsultant with Black&Veatch Management Consulting,where she leads stormwater user fee development and implementation and stormwater rate study projects.White specializes in projects involving cost of service and rate determination,revenue bond determination and financial reviews of operations for wat

228、er,wastewater and stormwater utilities in the public sector.Her economics background and experience with computer modeling and software applications have been utilized in developing financial analyses of municipal water and wastewater utilities.The industry still is woefully underfunded,and utilitie

229、s must continue to manage spending,look at capital prioritization and advocate forfinancialsupportwhilepursuing traditional and alternative funding sources.2021 STRATEGIC DIRECTIONS:WATER REPORT|31Aging infrastructure has remained water utilities biggest pain point throughout the nine years of Black

230、&Veatchs annual Strategic Directions:Water Report.Relief is now available in the form of advanced simulation technologies,such as digital twins,that give utilities greater situational awareness of asset performance as it happens,allowing them to do more with less and operate more efficiently.Digital

231、 twins provide a real-time digital counterpart of a physical object or process,using historical and current data to help predict and maximize performance.They work by integrating system performance data,connecting source systems and aggregating asset information to provide a digital simulation of op

232、erating assets and systems.The technology can be built on design criteria,calibrated based on historical data,refreshed with current real-time sensor-driven data and used to test and predict future performance.Black&Veatch created one of the worlds first water utility digital twins for Anglian Water

233、 in the United Kingdom.The company was tasked with“creating a digital representation of the Newmarket regions water treatment and distribution infrastructure and embedding Hybrid Adaptive Real-time Virtual Intelligence(HARVI),an artificial intelligence(AI)provided by its strategic partner EMAGIN,int

234、o the digital twin.This enables predictive capabilities and intuitive decision support and intervention,”according to WaterWorld.Attention to Data-Driven Digital Twins Rising,Though Jury Still Out on Return on InvestmentBy Jeff Buxton,Brian Melton,Chris Murphy and Doug Preece 2021 STRATEGIC DIRECTIO

235、NS:WATER REPORT|32Anglian Water is hoping to use the digital twin technology to help it achieve its seven goals for the region:Zero leakage and bursts100-percent customer satisfactionWater consumption of 80 liters per person per dayZero pollution and flooding100-percent compliant and chemical-free d

236、rinking waterCarbon neutralityBuilding a circular economy that eliminates the concept of waste from the processes.The Digital Twin DifferenceA differentiator from a traditional model is that the twin can have constant dialogue with its physical counterpart by combining information technology and ope

237、rations technology.This enables users to simulate scenario options before applying them in the real world.The technology supports this by constantly comparing what is expected from the model to what is being experienced in actual operations.The work is done by combining multiple internal and externa

238、l data sources across the asset base and comparing this with the digital twin model using machine learning and predictive analytical techniques.This provides improved insights that support better decisions,leading to better outcomes in the physical world.For example,a digital twin can:Support qualit

239、y and supply teams by integrating weather and raw water quality data with asset availability from supervisory control and data acquisition(SCADA)systems across the network.This creates a predictive view of operating scenarios and performance deterioration as well as root cause identification,allowin

240、g users to intervene before an event occurs.Take near-real-time condition performance data from critical assets to predictively determine maintenance activities.Help with maintenance activities,supporting better pre-planning of the work and overlaying work orders within spatial models,leading to acc

241、urate identification of asset location.Providing,in addition,a more connected experience for accessing documentation needed to perform the work.Adifferentiatorfromatraditional model is that the twin can have constant dialogue with its physical counterpart by combining information technology and oper

242、ations technology.2021 STRATEGIC DIRECTIONS:WATER REPORT|33Putting Data to WorkAccording to the 2021 Strategic Directions:Water Report survey of more than 200 U.S.water industry stakeholders,water utilities see value in simulation modeling,particularly when it comes to improving asset management,dis

243、tribution system efficiencies,training environments,simulated plant expansions and upgrades and production system efficiencies(Figure 19).From this data,it could be construed that utilities see digital twins as making a meaningful difference in the operation and asset management of aging infrastruct

244、ure.The return on investment offered by the data-driven,decision-making digital twins may be more valuable than utilities current digital strategies,helping justify the investment.Utilities have a growing sense of urgency and motivation to put to work the data they gather.This requires a strategy th

245、at spans the breadth of data collection to data-driven decision-making.Digital twins can make a valuable contribution to that strategy,but they are of greatest value to utilities with a mature,integrated data program.These models will only be as good as the data upon which they are based;without sol

246、id historical data to build the model and real-time performance data to re-calibrate it continuously,the technology risks becoming a stranded asset.A crawl-walk-run approach can yield compounding value to a maturing organization,with the digital twin in the run phase.This 62.8%Asset management:movin

247、g from schedule-based maintenance to preventative and predictive 52.6%Distribution system efficiencies:adjust operations based on simulated versus actual performance 52.6%Training environment for new operators and other staff 46.2%Simulations for plant expansion or site upgrades 39.7%Production syst

248、em efficiencies:adjust operations based on simulated versus actual performance 35.9%Testing of new processes or solutions in a digital setting 21.8%Community outreach opportunities11.5%Improving customer engagement:modeling behind the meter to create precise customer profiles 10.3%Ability to offer n

249、ew services to customers Figure 19Where do you see the most value for simulation modeling?(Select all that apply)Source:Black&Veatch2021 STRATEGIC DIRECTIONS:WATER REPORT|34builds upon foundational steps such as defining the data that best supports the simulation model,ensuring that the data properl

250、y reflects the operational systems performance,and instituting the tools to leverage the model for asset and operational system analysis.Bridging the Knowledge GapA digital twin relies on data.Without the insights of the people who are intimate with how assets have been designed,built and behave and

251、 what the assets need to do and not do the data is far less useful,and the digital twin will deliver less value.For this reason,expertise from a wide variety of disciplines across the utility sector provides essential insights during a digital twins development.This makes the digital twin an accessi

252、ble repository of the institutional knowledge of people who know the water and wastewater assets emulated by the digital twin.The return on investment this represents is difficult to quantify.However,the benefits could be significant at a time when knowledge management is a source of concern,and an

253、aging workforce means a great deal of real-world expertise is being lost.The digital twin also can serve as a training resource.It is a repository of institutional knowledge,and,as a virtual resource,the digital twin is a lower-risk option than training on live assets.Its also worth noting that soft

254、ware vendors are beginning to enable commercial solutions more focused on digital twins aspects,which will lead to larger adoption of specific capabilities.The Anglian Water case study stands as a landmark project at the forefront of digital twins,helping to drive adoption of these advanced simulati

255、on technologies.There is no doubt that digital twins offer new progress towards the digital transformation of water services.ABOUT THE AUTHORSBrian Melton is a chief technologist at Black&Veatch,where he helps embrace digital transformation and recognize its impact on project delivery for the compan

256、ys water business.During his 21 years at Black&Veatch,Melton has had the opportunity to be a part of some of the largest infrastructure projects around the globe,including mining,hydropower,and water and wastewater treatment,conveyance and storage.He has an extensive background in building informati

257、on modelling with respect to infrastructure projects.Doug Preece is a managing director in the Black&Veatch Management Consulting Group.He has more than 35 years of utility experience working with utilities and energy producers to develop strategic plans and solutions to improve operational efficien

258、cies and reduce risks.Preeces knowledge and experience spanning field operations,engineering,business,information technology and consulting enables him to assist clients with their most challenging,multi-faceted issues.Jeff Buxton is managing director in the Black&Veatch Management Consulting Group.

259、He has more than 40 years of experience within the energy,utility,information technology(IT),technology and industrial sectors,including North American and international management expertise delivering business-to-business solutions.His experience encompasses strategic business planning,technology r

260、oadmap planning,IT infrastructure management,contract development,project financing,program management,communications,change and operations management.Christopher Murphy is the global chief technology officer for Black&Veatch.Over the past 38 years,he has worked in a myriad of industries,taking on r

261、oles in software engineering,customer support,sales engineering and software partner engineering.His experiences include IT strategy,technology alignment and rationalization,product and solution ideation,development and road-mapping,business capability consulting and both security and privacy advoca

262、cy.2021 STRATEGIC DIRECTIONS:WATER REPORT|35Unsettled Regulatory Landscape Deters Decontamination UpgradesBy Prabha Kumar,Dustin Mobley and Mark Steichen When it comes to reducing contaminants such as per-and polyfluoroalkyl substances(PFAS)so-called“forever chemicals”that dont easily biodegrade man

263、y water utilities eventually will need to upgrade their systems to meet new maximum contaminant levels(MCLs).The extent of upgrades and associated capital investment for which utilities will have to plan will depend on the stringency of new regulations,the existing levels of PFAS in their water sour

264、ce and types of water treatment technologies in place at their treatment facilities.The pending PFAS regulations on the horizon arent spurring immediate action because water providers dont yet know when those MCL limits will take effect or what the required reductions will be.For now,water utilities

265、 are left waiting on greater clarity and certainty of future PFAS regulations.Thats the takeaway from responses to the survey of more than 200 water industry stakeholders for Black&Veatchs 2021 Strategic Directions:Water Report.Significant majorities of survey respondents from water utilities big an

266、d small said the trigger for their organization to begin designing and implementing technology to limit PFAS,1,4-dioxane and NDMA contaminants would be“regulatory action by MCL”(Figure 20).Figure 20What will be the trigger for you to begin design and implementation to limit PFAS/1,4-dioxane/NDMA con

267、taminant in drinking water,biosolids and municipal effluent?(Select one,by population served)Source:Black&VeatchLess than 500,000500,000 or moreRegulatory action by MCL82.1%61.5%Health advisory level 10.2%30.8%Public perception7.7%7.7%2021 STRATEGIC DIRECTIONS:WATER REPORT|36Some utilities expect pr

268、oactive initiatives will be necessary soon.While 43 percent of respondents envision no timeline for regulatory activity,more than one-third expect that theyll need to provide a PFAS management or treatment solution within the next five years(Figure 21).Current Regulatory LandscapeAs of mid-2021,12 s

269、tates already have existing or pending PFAS MCLs for water providers to meet.Each state has established its own regulatory MCL threshold and rulemaking process.This means there are differing regulatory limits state to state and different timelines for compliance.In addition,several states have healt

270、h advisories or other guidance related to these substances.Such advisories are not enforceable but can impact public perception one of the factors utilities balance when it comes to treating for contaminants of this type.Meanwhile,the U.S.Environmental Protection Agency(EPA)has a non-enforceable hea

271、lth advisory on two of the approximately 7,000 PFAS compounds.The EPA limit is seven times higher than what some states have established as their drinking water MCL.When the EPA comes up with MCL levels,all states will need to comply.However,the EPA in March 2020 made a positive determination to beg

272、in developing an MCL for several PFAS.The regulatory process is lengthy,and it likely will be several years before proposed MCLs are issued,giving water utilities some time to develop plans to comply before the new rules are enforced.Bolstering the EPAs seriousness about addressing PFAS,the agencys

273、new administrator,Michael Regan,issued a memorandum in April 2021 calling for the creation of a new EPA Council on PFAS to develop strategies that optimize the use of the agencys authorities,expertise and partnerships to address PFAS.The council seeks to enhance ongoing efforts that include collecti

274、on of new data on 29 PFAS compounds,soliciting data on the presence and treatment of PFAS in wastewater discharges and developing new drinking water standards for other PFAS.Figure 21When do you foresee that you may need to provide a PFAS management/treatment solution?(Select one)Source:Black&Veatch

275、35.1%Inthenext5years from now42.9%No timeline22.1%Beyond5years from now2021 STRATEGIC DIRECTIONS:WATER REPORT|37If the EPA doesnt act quickly,Congress may compel action.Introduced in May 2021,H.R.3291 requires an amendment to the Safe Drinking Water Act,aiming to provide assistance to areas and wate

276、r systems affected by PFAS or lead.The resolution also seeks to mandate the EPA to implement primary drinking water regulations for PFAS,1,4-dioxane and other toxins.Technologies as Diverse as UtilitiesThirty-six percent of survey respondents said a lack of regulation is their foremost barrier to lo

277、wering PFAS concentration in drinking water.Such a response may be unsurprising,given that a water system cant make plans to comply with MCL levels that havent yet been established.Regarding additional barriers,one-third of respondents cited capital costs,while 16 percent said efficacy of the treatm

278、ent process was the greatest impediment.The upshot:water providers already are thinking about potential regulation (Figure 22).Without question,the technology to remove something that is an exceedingly small fraction of waters makeup is a costly proposition.Depending on the MCLs that regulators iden

279、tify,the technologies available for water providers to comply may have significant capital and operating expenses.Water treatment systems vary significantly across the tens of thousands of water utilities in the U.S.All these systems meet the basic regulatory requirements for high-quality drinking w

280、ater,but most technologies applied in traditional water treatment are not effective at PFAS removal.Thus,the cost incurred by utilities for PFAS removal will depend on the technologies now in use.Figure 22What is the largest barrier to lowering PFAS concentration in drinking water?(Select one)Source

281、:Black&Veatch36.1%Lack of regulation to prevent PFAS in the supply32.8%Capital cost 16.4%9.8%4.9%Operating cost Efficacy of the treatment process/managementFootprint to implement the treatment technology2021 STRATEGIC DIRECTIONS:WATER REPORT|38These technologies include granular activated carbon(GAC

282、)absorption,ion exchange(IX)and reverse osmosis(RO).These technologies and processes are not in place at many utilities and will require a plan for implementation.RO would require two or three times the space of those filters.Put simply,these technologies could double or triple the necessary footpri

283、nt of existing facilities.Additionally,the technology selected could mean the need for more water,media regeneration and replacement,and brine removal.Against the backdrop of the regulatory uncertainty is this fact:Three-quarters of respondents picked aging infrastructure as the top challenge facing

284、 their industry,down from 79 percent last year.While utility managers dont yet know what MCLs they will need to meet with PFAS-reduction investments,they do know they need to prioritize their infrastructure repair,upgrade or replacement decisions.The regulatory landscape may be filled with uncertain

285、ty today,but its poised to have a big impact on how utilities provide safe water in the future.ABOUT THE AUTHORSDustin Mobley is the drinking water PFAS leader at Black&Veatch.He has 14 years of water process experience in the evaluation and design of water treatment processes for municipal and indu

286、strial water treatment clients.He specializes in piloting and full-scale design of GAC and ion exchange technologies for the removal of PFAS removal from drinking water.Mark Steichen is the director of wastewater treatment technologies and the facilities business line at Black&Veatch.He has 31 years

287、 of experience in municipal wastewater treatment plant design and specializes in biological nutrient removal.Steichen leads a highly specialized group of wastewater treatment process engineers that deliver tailored treatment solutions for clients throughout the U.S.and globally.Prabha Kumar is a man

288、aging director in Black&Veatch Management Consulting.She has more than 22 years of experience providing financial planning and cost of services studies,business transformation and utility development and implementation consulting services to water,wastewater and stormwater utilities.Kumar also is a

289、national practice leader at Black&Veatch for stormwater utility,as well as for funding development and implementation services.Lack of regulation is the largest barrier to lowering PFAS concentration in drinking water.2021 STRATEGIC DIRECTIONS:WATER REPORT|39Despite Barriers During a Pandemic,Growth

290、 in Reuse Drives Participation in the Circular EconomyBy Zeynep Erdal,Jo Ann Jackson,Andrew Shaw,Ann Bui and Robert ChambersUtilities have a nuanced relationship with water reuse.It represents an effective way to manage the demand and supply balance and offers potential revenue streams.Yet,these fac

291、tors appear to be outweighed by the fact that utilities must prioritize needs,which can shift depending on external factors.To bolster resilience,the benefits of other water sources may be preferred in transitional periods when these needs shift.However,there are regional exceptions.The need for a r

292、obust water supply outweighs other issues and priorities,predominantly in the water-scarce Southwest.When asked about steps to bolster water supply resiliency,respondents to a survey of more than 200 U.S.water industry stakeholders for Black&Veatchs 2021 Strategic Directions:Water Report revealed th

293、at they viewed seeking new groundwater sources as a more attractive option than reuse in regions where such resources are available.Respondents also indicated interest in seeking new surface water sources to bolster resiliency.The appetite for pursuing new resources to bolster existing programs rath

294、er than reusing existing ones is clear(Figure 23).In 2020,20 percent of respondents were not taking steps to improve resilience,and this increased to 30 percent of respondents for 2021.Just as much as water supply resilience has not been the highest priority for many utilities the past two years,reu

295、se programs also have not been a focus.This is a trend or development to watch in the coming years to assess whether this was a COVID-19 pandemic-driven outcome.For utilities with reuse programs,the predominant driver by a significant margin is to reduce water scarcity;this is true throughout most o

296、f the Northeast,Midwest,South and West regions.Figure 23What steps are you taking to bolster water supply resiliency?(Select all that apply)Source:Black&Veatch38.1%Seeking new groundwater sources28.6%Adding reuse capabilities15.9%Seeking new surface water sources11.1%Seeking new desalination/brackis

297、h sources30.2%We are not taking any such steps2021 STRATEGIC DIRECTIONS:WATER REPORT|40Primary markets for reused water typically are commerce,agriculture and industrial.Black&Veatchs survey found that although insufficient revenues were cited as a significant barrier to more reuse,a lack of public

298、acceptance and reuse programs costs were the chief barriers.So,reuse is insufficiently priced,lacks public acceptance in specific geographies and can be costlier than other alternatives due to its limited customer base.Despite that,the tide may be about to turn in favor of reuse as it still is recog

299、nized as a meaningful contributor to utilities demand/supply balance management strategies.Potable Reuse Levels to GrowReuses lack of public acceptance typically can be attributed to potable reuse.Despite this,in regions except the Midwest,utilities anticipate a rise in potable reuse.In the West,an

300、overwhelming 88 percent of respondents expect an increase in potable reuse due to years of public education campaigns and trusted regulatory frameworks.Another resason may be the success of drought-driven water conservation measures.As increasing populations and industrial activity add to pressure o

301、n water supplies,an emphasis on new water sources,rather than conservation,may be necessary to supplement the supply.Successfully delivering the predicted increases in potable reuse requires ongoing education programs to build public confidence and acceptance.This already has been achieved in some a

302、reas,and the best practices developed in the most arid communities will need to be implemented beyond these regions.Such programs will need to foster an understanding of the value of water as part of the strategy to underpin the acceptance of potable reuse.The Impact of Federal FundsA greater unders

303、tanding of waters value may help increase willingness to implement and accept rate increases to fund water reuse programs,but such benefits may not be the most impactful.Of greater significance in addressing the cost barrier to reuse programs may be the Water Infrastructure Act of 2020 and the Drink

304、ing Water Infrastructure Act of 2020.The bills propose multi-billion dollar planned authorizations for infrastructure projects.Under the bills,the U.S.government hopes to reauthorize a water reuse program called the Alternative Water Source Grants Program.This program would be available nationwide t

305、o help communities invest in and implement water recycling projects.In June 2021,the House Transportation and Infrastructure Committee also passed the Water Quality Protection and Job Creation Act of 2021(H.R.1915),which will take the first step A greater understanding of waters value may help incre

306、ase willingness to implement and accept rate increases to fund water reuse programs,but such benefitsmaynotbethemostimpactful.2021 STRATEGIC DIRECTIONS:WATER REPORT|41in authorizing major investments in water recycling programs and resources while helping communities across the country adopt water r

307、euse as a resource management tool.The package includes two key priorities for WateReuse Association members:language authorizing Congress to appropriate up to$1 billion for the Alternative Water Source Grants program,and a provision creating a federal interagency working group on water reuse.In add

308、ition,the U.S.Senate in April 2021 voted to adopt the Drinking Water and Wastewater Infrastructure Act of 2021,which will make major investments in water recycling programs and resources.Barriers to More ReuseWhen it comes to their perceived chief barriers to doing more reuse,more than six in 10 res

309、pondents(62 percent)pointed to it as being cost prohibitive to build and execute,followed by the lack of public acceptance(46 percent).Regulatory reform could be helpful,with 27 percent of respondents citing regulatory complications as a barrier to reuse.An additional 19 percent pointed to a lack of

310、 regulatory support.There currently are no federal standards for potable water reuse,and some states still have no framework for it.The creation of a national guideline or standards may enable more reuse.The development of guidelines and standards that reflect technological advances in our ability t

311、o implement,monitor and control reuse systems while also ensuring public safety and resiliency will be critical.As outlined by the World Economic Forum,a circular economy is“an industrial system thats restorative or regenerative by intention and design.It replaces the end-of-life concept with restor

312、ation,shifts towards the use of renewable energy,eliminates the use of toxic chemicals that impair reuse and return to the biosphere,and aims for the elimination of waste through the superior design of materials,products,systems and business models.”Across the U.S.water sector,familiarity with that

313、appears to be growing.In 2020,nearly 60 percent of respondents were entirely unfamiliar with the concept;by 2021,this had fallen to 36 percent.Most utilities some six in 10 see themselves as participating in the circular economy(Figure 24).Four in 10 respondents saw their biogas and nutrient removal

314、 programs as an element of the circular economy.Few utilities,however,believed they were taking full advantage of biogas as a resource,including,most notably,none of the respondents in the South.However,this does not trouble the utilities;asked whether they believed they were missing an opportunity

315、with regard to 35.6%Not familiar at all20.0%Slightly familiar17.8%Very familiar26.6%Moderately familiarFigure 24How familiar are you with the term“circular economy”?(Select one)Source:Black&Veatch2021 STRATEGIC DIRECTIONS:WATER REPORT|42biogas,the majority of respondents felt they were not.It would

316、seem many utilities believe the amount of biogas generated was insufficient to make such projects worthwhile.Hydrogen and DecarbonizationAccording to the National Renewable Energy Laboratory,demand for hydrogen in the U.S.could reach as much as 41 million metric tons per year by 2050,a four-fold inc

317、rease over current requirements.Biogas reforming is a proven pathway to renewable hydrogen.In the latest Black&Veatch survey,for the first time,6 percent of utilities reported seeing hydrogen production as part of their contribution to the circular economy.The amount by which that figure increases i

318、n the coming years will significantly be governed by the extent to which utilities adopt a more product-orientated mindset.Looking ahead to our 2022 report,well be monitoring the impact of water infrastructure and drinking water infrastructure legislation on the affordability of reuse programs,the g

319、rowth of potable reuse driven by growing drought conditions in Southwest and beyond,and the value that water companies ascribe to participation in the hydrogen economy.ABOUT THE AUTHORSZeynep Erdal leads integrated solutions for Black&Veatch,where she specializes in water infrastructure solutions th

320、at integrate resource recovery and resilience.She has 25 years of experience in water reclamation projects around the world and is a recognized expert in treatment technologies and innovation,focusing on the water-nutrient-energy nexus as well as integration of water system solutions.JoAnn Jackson l

321、eads Black&Veatchs National One Water Planning Practice.She brings more than 35 years of experience developing integrated solutions to wastewater,stormwater and water supply projects across the U.S.Her experience includes six years in the public sector,where she helped implement Floridas first direc

322、t potable reuse pilot and served as a utility representative on Floridas Potable Reuse Commission.Andrew Shaw is a global practice and technology leader in sustainability and wastewater for Black&Veatch.He has 28 years of experience in wastewater treatment design projects in the United Kingdom,Austr

323、alia,Asia and North America.His expertise includes nutrient removal,computer modeling,instrumentation,process optimization and life-cycle assessments.Ann Bui is a managing director and co-leads Black&Veatch Management Consulting Groups strategy advisory water market business.Besides providing client

324、s with strategic financial management strategies,her responsibilities include driving growth and innovation to water utilities in the areas of financial and advisory planning,advanced metering,customer experience,asset integrity and enterprise risk management services.Bui has more than 30 years of e

325、xperience with clients in North and South America,Europe and Asia.Robert Chambers is a principal consultant on Black&Veatchs Management Consulting Group strategic advisory team.Chambers has served and supported municipalities in developing,communicating and educating various stakeholders about the p

326、urpose and value of business plans,which have included long term financial plans,capital acquisitions and system expansion alternatives,customer rate and affordability scenarios,energy management planning and strategic planning roadmaps.2021 STRATEGIC DIRECTIONS:WATER REPORT|43In order to protect so

327、urce water,respond to climate change manifested in rising sea levels,or to mitigate the increased risk and frequency of inland flooding,utilities tasked with handling stormwater are awakening to the promise of green infrastructure.The problem:The movement to a newer way of thinking remains slow,give

328、n the urgency of addressing stormwater runoff that the U.S.Environmental Protection Agency(EPA)calls“one of the fastest growing sources of pollution.”Rainfall on roofs,parking lots and roads means pollutants flow into storm sewers and ultimately into rivers and streams.But the issue with these pollu

329、tants could be mitigated through the planned use of wetlands,forests and grasslands.Green,sustainable infrastructure is a solution not just for contamination of water;it also can support resiliency to climate change and the increasing frequency of flood events.Environmental activists,elected leaders

330、 and governmental overseers are taking note,pressing for better,more environmentally friendly ways of managing stormwater through such strategies as permeable pavement and open channels instead of pipes or soil,vegetation,wetlands and other natural elements to store and infiltrate stormwater.Stormwa

331、ter managers hope for funding relief,perhaps from federal taxpayers through infrastructure spending bills pending in Congress.From the Catskills to the Gulf,Projects Prove Promise of Green,Sustainable InfrastructureBy Laura Adams,Stephanie Bache,Lisa Fewins,Jason Haney and Jagmeet Khangura2021 STRAT

332、EGIC DIRECTIONS:WATER REPORT|44To the EPA,green infrastructure is cost-effective,resilient and replete with community benefits,including the risk-management equation of reducing potential hazards to property that could be flooded or otherwise impacted.Some locales and regions have dived aggressively

333、 into using green infrastructure,either at a regional scale or as a distributed solution to reduce stormwater contamination,combat climate change and protect against more frequent flood events.In Louisiana,the states$50-billion,50-year“Coastal Master Plan”includes a remarkable vision:the“Mid-Barataria Sediment Diversion”project,which calls for punching a large hole in a Mississippi River levee and