pioneering solutions for campus challenges through water
TRANSCRIPT
LEADERS & VISIONARIES
Pioneering Solutions for
Campus Challenges through
Water Reclamation and Reuse Jonathan Lanciani, Sustainable Water
JoEllen Alberhasky, Arizona State University
Christine Martini, Ultra Capital
Cyndi Rottenberg-Walker, Urban Strategies
Provider:
The University Financing Foundation, Inc. Provider Number #50111227
Course Title:
Pioneering Solutions for Campus Challenges through Water
Reclamation and Reuse Course Number AIACES2016I
Speakers
Jonathan Lanciani, Cyndi Rottenberg-Walker, JoEllen Alberhasky and
Christine Martini
Date 6/8/2016
Credit(s) earned on completion of
this course will be reported to AIA
CES for AIA members.
Certificates of Completion for both
AIA members and non-AIA
members are available upon
request.
This course is registered with AIA
CES for continuing professional
education. As such, it does not
include content that may be
deemed or construed to be an
approval or endorsement by the
AIA of any material of construction
or any method or manner of
handling, using, distributing, or
dealing in any material or product. _______________________________________
____
Questions related to specific materials, methods,
and services will be addressed at the conclusion
of this presentation.
Panel members will address the nexus of natural resources, financing and sustainability through the
use of case studies providing a comprehensive water management plan and discuss innovative
financing techniques to guide facilities planning, maintenance, and operations. In addition, the panel
will illustrate how the planning for the integration of decentralized, on-site water reclamation and
reuse systems can significantly enhance critical system resiliency by de-risking utility operations
through clean sources of water.
Course
Description
Learning
Objectives
1. Identifying non-potable demand and potential reuse opportunities;
2. Examining engineering and architectural design integration;
3. Assessing local, state, and federal policies and permitting;
4. Exploring funding resources;
5. Implementing and validating projects.
At the end of the this course, participants will be able to:
PIONEERING SOLUTIONS FOR CAMPUS CHALLENGES THROUGH WATER RECLAMATION AND REUSE
T U F F U N I V E R S I T Y F A C I L I T I E S S U M M I T G E O R G I A T E C H G L O B A L L E A R N I N G C E N T E R J U N E 8 - 9 , 2 0 1 6
June 8, 2016
Jonathan Lanciani, President and CEO, Sustainable Water
Cyndi Rottenberg-Walker, Partner, Urban Strategies
JoEllen Alberhasky, Program Manager, LEED GA, CWEP, MS, Arizona State University
Christine Martini, Director, Ultra Capital
THE WATER APOCALYPSE
Together These Factors Will Completely Change Water Management
THE CYCLE OF DROUGHT
National Water Challenges Demand Immediate Action
How will you prepare for recurring droughts?
“Water Managers in 40 states expect water shortages in some part of their
state within the next 10 years.” - US Government Accountability Office
“Nearly one in ten watersheds are stressed. By midcentury, we expect to see less reliable surface water supplies in the United States. This is likely to create growing challenges for
agriculture, electrical suppliers, and municipalities.” - NOAA
2011
2012
2013
2014
2015
2016
CONTRIBUTIONS TO WATER SCARCITY
Urbanization and Growth Presents Opportunities and Risks
“Approximately six percent of total water use in commercial and institutional facilities in the U.S. takes place in educational facilities, such as schools, universities, museums and libraries. The largest uses of water in educational facilities are restrooms, landscaping, heating and cooling, and cafeteria kitchens.”
- U.S. Environmental Protection Agency
“Many states — 40 out of 50 according to the U.S. Government Accountability Office —
have at least one region that's expected to face some kind of water shortage in the next 10
years.” - Business Insider, April 2015
FIXING A FAILING SYSTEM
Resiliency Planning Must Include Water Reclamation and Reuse
“Improved conservation through changes in behavior, innovative production methods, and the utilization of technology is a realistic prospect in the face of rising costs.”
- American Society of Civil Engineers, 2013 Report Card for America’s Infrastructure
Suggested Solutions… Raise Awareness for the True Cost of Water
Increase Costs for Water and Wastewater Services
Develop and Harness New Technologies
Increase Private Financing
Implement Water Reuse & Expand Water Recycling
TIGHTENING GOVERNMENTAL REGULATIONS
Unfunded Mandates Drive Rate Increases
The federal & state regulatory environment is constricting to eliminate ground and surface water pollution as well as provide greater control over critical water resource management. A few regulatory issues driving water reuse:
A move toward water withdrawal limitations
Federal mandates to resolve CSO & SSO issues
Stricter nitrogen & phosphorus discharge standards
Stricter drinking water testing parameters
Water Withdrawal Limits
Combined Sewer Overflows
Point Source Pollution Control
HOW RATES COMPARE NATIONALLY
The Average Combined Water and Sewer Rate is $15.72 / 1,000 Gal.
CAMPUS GROWTH IS CONTAGIOUS
Careful Planning for Population and Square Foot Growth Necessary
SUPPORT FOR WATER RECLAMATION & REUSE
Decentralized Reclamation & Reuse Becoming Nationally Accepted
Decentralized wastewater systems help communities reach the triple bottom line of “
“
sustainability: good for the environment, good for the economy, and good for the people.
- US EPA, Decentralized Wastewater Treatment: A Sensible
Solution
A SUSTAINABLE WATER CYCLE…DECENTRALIZED WATER RECLAMATION & REUSE
Risk Management | Cost Savings | Environmental Responsibility
Before
After
FLEXIBILITY: INDEPENDENCE & RESILIENCE
Multiple Benefits Allow for Cross Facility Collaboration
Zero Discharge:
reduced contribution
to CSOs and
wastewater discharge
to environment
Expands Muni.
Infrastructure Capacity
Reliable & local
water supply
Protects valuable
research experiments
Reduces
freshwater
withdrawal
Additional On-
Site Storage
Minimum recovery time
Lower Life
Cycle Costs
PROJECTED COST OF WATER & SEWER SERVICES
Hundreds of Millions of Dollars Demands Executive Attention
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9
Y10
Y11
Y12
Y13
Y14
Y15
Y16
Y17
Y18
Y19
Y20
Y21
Y22
Y23
Y24
Y25
Y26
Y27
Y28
Y29
Y30
CAGR @ 3% CAGR @ 5% CAGR @ 7% CAGR @ 10%
2016 Volume and Rates- City of Atlanta
Purchased Water: 1.1 MGD Sewer Discharge: 650 Kgal/Day Water Rate: $8.24 per 1,000 Gal Sewer Rate: $20.98 per 1,000 Gal
$404 M
$802 M
$564 M
$1.4 B
TUFF University Facilities Summit
June 8, 2016
In association with:
Vanasse Hangen Brustlin, Inc.
Michael Van Valkenburgh Associates Inc.
KPMB Architects
BFJ Planning
Burns & McDonnell
Level Infrastructure
Mills + Schnoering Architects
Nitsch Engineering
Rickes Associates Inc.
Sustainable Water
Two Twelve
U3 Advisors
Van Note-Harvey Associates
Vermeulens
ZGF Architects
PR INCET ON UN IVE R S ITY
2026 Campus Plan Study
2
Concurrent University Planning Initiatives
3
The Campus Plan is a comprehensive and holistic planning
effort addressing current and future needs for:
• Architecture, landscape and design
• Space utilization
• Transportation
• Sustainability and resiliency
• Stormwater management
• Natural resources
• Civil engineering
• Real estate
• Wayfinding and graphic design
• Project specific site planning
Scope of the Campus Plan
4
The Integrated Infrastructure Master Plan is a comprehensive
planning effort addressing current and future needs for:
• Energy production and distribution (thermal and electrical)
• Heating/cooling
• Communications and information technology (IT)
• Domestic, sanitary, and storm water management
• Water conservation
• Energy Efficient Building Visioning
Scope of the Integrated Infrastructure Master Plan
5
Scope of the Princeton Sustainability Plan
Sustainability Planning Coordination
• Sustainability planning,
the Infrastructure Master
Plan (IMP) and the
Building Energy Visioning
Study are embedded
within the Campus Plan
• The plans and studies all
test, inform and add
value to one another
Building
Energy
Visioning
Study
Campus Plan Sustainability
Planning IMP
6
Current CP Study Area
Boundary
2026 CP Study Area
Boundary
Note: Not all lands within the
study area are owned by
Princeton University 7
Campus Plan Study Areas
Draft Campus Plan Sustainability Framework
Strengthened sustainability ethos 8
Reduced Water Use: Targets
Reduce overall water use on campus
Individual
users Systems
9
Campus Plan
Considerations
• Continue incorporating low-
water use standards in
building system designs
• Consider implementing water
reclamation facility for campus
• Identify opportunities to affect
increased behavior change
through campus design and
infrastructure
• Recognize regional benefits,
campus-as-lab and place-
making potential of a water
reuse facility
Reduced Water Use: Considerations
10 Water reuse facility, Emory University
Frick Chemistry Rainwater Collection, Princeton
Level of Investment/
Change
LAND USE COST POLICY/ BEHAVIOR CHANGE
high
mi
d
low
savings
today
In association with:
Vanasse Hangen Brustlin, Inc.
Michael Van Valkenburgh Associates Inc.
KPMB Architects
BFJ Planning
Burns & McDonnell
Level Infrastructure
Mills + Schnoering Architects
Nitsch Engineering
Rickes Associates Inc.
Sustainable Water
Two Twelve
U3 Advisors
Van Note-Harvey Associates
Vermeulens
ZGF Architects
TUFF University Facilities Summit
June 8, 2016
Water Works
at ASU
Sustainability: The Four Goals for ASU
City of Tempe’s Water & Sewer Rates for 2016: $5.52 Thus, ASU’s Current Reclaimed water usage is: 2,687,809 gal Or, Less than 1% of total water demand.
Major Metros-Rising Water & Sewer Rates
Source:
Tempe 2016
Arizona’s Latest Headlines
Arizona
Headlines
Are
Adjusting
….Arizona
USP Initiatives FY2016-17
• Zero Water Waste 1.0 • Create foundations for Water Information System • Partner with grounds and facilities to get to work
• Zero Water Waste 2.b • Reduce water consumption by 50 percent and, • Eliminate 100 percent of campus water effluent by 2020
USP Goals
Strategies/
Opportunities
Increased Efficiencies
a. Cooling Towers
b. Plumbing Retrofits
c. Irrigation Improvements
per the Master Plan
Optimize Sources of Water, Matching
Quality with Use
a. Wastewater
Reclamation
b. ASU’s SRP’s water right
to urban irrigation supply
ASU’s Tempe Campus Water Use Profile
‘Water Works’ Provides the Opportunity to REDUCE ASU’s water and wastewater usage by 36%, Or more…
Water Works: The Concept
• ASU’s Wastewater is directed to Water Works - an onsite reclamation facility
• Biological processes used to reclaim the wastewater.
• Water is of a suitable quality to use:
• In cooling towers
• For irrigation • In toilets
Internal
Stakeholders
Operations a. FM Exec Management
b. Central Plant
c. CHP
d. Grounds
e. Univ Architecture (OUA)
f. Real Estate
g. Business Operations
h. Engineering
i. GIOS
Internal
Stakeholders
Education & Research a. School of Engineering
b. School of Sustainability
c. DCDC
d. Center for Environmental
Biotechnology
e. OKED
f. Morrison Institute
g. College of Technology &
Innovation
h. WP Carey Business Sch
i. Walton Sustain Solutions
Who are the External Stakeholders?
Status to date: No Red Lights!
Potential Stakeholders:
Centers, Initiatives, and Programs 14 Opportunities
Experts
• Water Quality 20
• Water, Environment, & Climate 30
• Water Resources Management/Policy 45
• Water & the Humanities 15
• Water in Transdisciplinary Programs 3
Total Potential Stakeholders 127
Financial Analysis
• Evaluated Water Performance Agreement opportunity • High level Preliminary Analysis completed and presented by Sustainable Water
• WP Carey student evaluation supported findings
=
Let The ASU Living Laboratory Begin….
For Spring, 2016 USP worked with WP Carey Supply Chain Management students to conduct 3 evaluations addressing different aspects of this potential project. Specifically, this resulted in:
• 12 students involved • Barrett’s honors credit awarded • Real world experienced • Sustainability concepts taught • Group dynamics experienced • Business principles applied • Everyone learned, USP included!
Stakeholder Analysis: Water Reclamation Project
Contributing students: Elizabeth Coh, Alex Smithberg, Calum Robertson, Kyan Palmer, Alex Hebrank, Amanda Monty In collaboration with: University Sustainability Practices and Antonio Printezis
What the Stakeholders are saying…
• Bruce Rittman - Director, Center for Environmental Biotechnology, Biodesign - School of Sustainable Engineering and the Built Environment
Q: Impact on research: A: “ The wetland part of the reclamation project is of interest. Currently I have some technology that has proven successful in the lab and is ready for testing on a larger scale… to address inconsistent water demand… Another part of the water reclamation project is what is done with the pollutants that are removed from the water. Some of these pollutants have an energy value…. Another potential research project …is what should be done with the solid waste…. So, a project like this is would be great for my own personal reasons. ”
What the Stakeholders are saying…
• Rolf Halden - Director for Environmental Security, Biodesign Institute
- School of Sustainable Engineering and the Built Environment
Q: Impact on research: A: “ If a water reclamation project was established at ASU, access to the wastewater would become much easier than it currently is. A constraint to the research is access. This project would remove that which will be tremendously helpful… Having a project as ASU would allow for additional research to be done on water treatment efficiency …clean drinking water is a real challenge in different areas of the world. If additional methods could be created to provide quick low cost wastewater treatment solutions, this would be a real benefit.”
What the Stakeholders are saying…
• Francois Perreault - Senior Sustainability Scientist, Global Institute for Sustainability
- School of Sustainable Engineering and the Built Environment
Q: Impact on research:
A: “ My lab works on emerging desalination technologies such as forward osmosis, membrane distillation, or capacitive deionization. These technologies can be investigated … linked to salinity in the reuse of wastewater in cooling tower.
..working several years on fouling control strategies in membrane processes…Having access to wastewater treatment system on campus will allow for scale-up research to real systems and test to control fouling in a water reuse facility.”
Living Building
Class to assist in
next steps
• Award $250,000
• Goal: to advance the sustainability of
Arizona’s water future
• Required:
• Scalable in size, i.e.
• Replicable
• Community collaboration
• Local Government encouraged
• Innovation
• Encouraged applications
include water reuse and
wastewater management
• Pilot & shovel ready projects
acceptable
Next Steps….
• Management guidance
• Initiate Advanced Feasibility Analysis before Procurement Process
• Involve ADEQ and ADWR
• Continue Site evaluation
• Continue dialogue with Catellus and partners re: Athletic District
• Continue dialogue with OKED re: potential funding/partnership with Research & Education focus
• Partnership firmed up and AZ Water Prize Grant application completed
• Fall, 2016 – Living Laboratory Class focuses on Water Works concept, both USP and OUA co-teach.
Q & A
A g r i c u l t u r e • E n e r g y • W a t e r • W a s t e
Project Finance for Small-to-Mid-sized Sustainable Real Asset Projects
Confidential 2
Ultra Capital finances small to mid-size $5M-$50M sustainable real asset projects in agriculture, energy, water and waste
O v e r v i e w
Real Asset Vehicle $200M-$300M
10%+ stabilized yield after full deployment 14%-16% net IRR (11% discount rate, 5-7 year exit) 5 year liquidity with options to continue
8% preferred return 150 bps management fee 15% profit interest Alternative terms for investors seeking 15+
year ownership of real assets
Tax efficient structures Low correlation to other asset classes Expertly managed assets with low-risk profile
Investment features
Financial features
Financial terms
We aggregate uncorrelated infrastructure projects into a Real Asset Vehicle This document is for informational and discussion purposes only. A private offering of an interest in the Real Asset Vehicle will be made solely on the basis of a confidential Private Placement Memorandum
Confidential 3
Bridging the gap between institutional investors and developers
O v e r v i e w
Ultra Capital’s goal is to deliver consistently underwritten and risk managed projects at scale
$200 billion represents the mid-term market size for small and mid-size projects across our four sectors. These sectors are expected to grow more quickly than the entire infrastructure sector which is forecasted to grow by 25 % annually during the next decade. Estimates are based on an aggregation of data from McKinsey, IFC (2015), TIAA-Creff (2015), JP Morgan (2015) and others.
Confidential 4
Advances in technology paired with increasing resource values are driving a paradigm shift towards distributed, smaller-scale infrastructure
This infrastructure will require over a trillion dollars of project financing within the next decade
Centralized Utility Scale Distributed Small and Mid-sized
M a r k e t
Conventional Project Finance
High transaction costs disproportionate to small project scale
Deal structures that don’t meet developer needs Unwieldly, long-duration transaction timelines Lacks flexibility Frequently unavailable for smaller projects
M a r k e t
Confidential 5
Developers need a reliable capital source and an experienced partner in order to scale
Conventional project finance is not well-suited to these projects
Conventional Project Financiers
Unfamiliar with new technologies Designed for one-offs, not programmatic
deployment Not configured to manage (let alone assist) small
projects Inconsistent availability of capital
Conventional Project Finance
High transaction costs disproportionate to small project scale
Deal structures that don’t meet developer needs Unwieldly, long-duration transaction timelines Lacks flexibility Frequently unavailable for projects
Conventional Project Financiers
Unfamiliar with new technologies Designed for one-offs, not programmatic
deployment Not configured to manage (let alone assist) small
projects Hodge-podge of small, fragmented capital
M a r k e t
Confidential 6
Ultra Capital delivers the Capital, Structure, and Processes for today’s Sustainable Infrastructure Projects
Sector and technical expertise Expansive network Streamlined investment process means
efficient, repeatable transactions Ability to scale as a long-term partner
Ability to finance all or part of capital stack
Asset ownership flexibility
Return requirements adjust as risks decrease over lifetime of the relationship
Ult ra A dva ntage
Confidential 7
Finance Spanning the Project Lifecycle
Confidential 8
Seasoned & Practical Team Cost-advantaged sector knowledge:
won’t “haircut” your assumptions due to unfamiliarity
What may be “deal-killer” to others, Ultra resolves through thoughtful deal structures
Development Support
Large team with extensive industry & financial expertise, and network reach
Assistance to find additional opportunities, accelerate growth, and improve economics
Broad Investment Mandate Energy, Water, Waste, Agriculture
New projects or existing assets
United States, Canada, Mexico & Caribbean- for now
Freedom to Scale Capital available for repeatable projects Reliable partner committed to the
industry Project execution & management tools
that reduce developer cost and time Less time fundraising, more time
developing
Value Adding Long Term Investor
Ultra Advantage
Confidential 9
Access To Ultra’s proprietary Project Development & Management Systems increases efficiency, accelerates growth, & lowers costs for developers
` ````````````````
01 | Budgeting Tool 02 | Model/Risk Analysis 03 | Project Tracking
04 | Project Status Report 05 | Contract Management 06 | Cash Management
Ultra Advantage
Confidential 10
Ult ra A dva ntage
Collectively managed over $50 billion of capital in various asset classes
Deep operational & development expertise across all four sectors
BP The Carlyle Group
FrontPoint Partners Goldman Sachs
IBM J.H. Whitney
Morgan Stanley Oliver Wyman
Russell Investments Soros Fund Management
Tides Foundation Tiger Management
Zurich Insurance
Babcock & Brown Bechtel
Clean Power Finance ComVentures
Equilibrium Capital Hannon Armstrong
Pequot Capital PIMCO PG&E
SkyBridge Capital Summit Global
Wit Capital
Access to Ultra’s Network & team experience as Investors, Operators, Entrepreneurs, Project Managers, and Developers
Accomplished Professionals Enterprise Tenure C Level Directors and Advisors
Project Prof i le
Confidential 11
Proven development track record Financial alignment to project’s success Limited technology risk Strong customer relationships Positioned to scale if provided with
competitive, flexible, quick capital Interest in long term, multi-project
partnership with capital provider
Project and Developer Characteristics
This concludes The American Institute of Architects
Continuing Education Systems Course
The University Financing Foundation, Inc.
Contact Information
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