Water Quality & Economics: Bridging the Information Gap

Environmental Federation of Oklahoma 24th Annual Meeting October 15-16, 2015

Water Quality and the Economy…

•  What is GRDA…GRDA at a glance •  Complexity of the Watershed •  Obvious Relationships •  Not-so-obvious Relationships •  Economic Challenges

Grand River Dam Authority’s – Grand River Energy Center

GRDA Unit 3: 495 MW •  Combined cycle gas plant

•  To be fueled by Oklahoma natural gas

•  Reduces coal usage

•  Potentially most efficient in the U.S.

•  Online by Summer 2017

GRDA Unit 1 & 2: 812 MW •  Unit 2 Upgrades

•  New components to meet EPA MATS

(mercury and air toxic standards

•  Only coal fired generator in Oklahoma

already equipped with Scrubber

•  To be completed in calendar year 2015

GRDA and HydroPower… • 2nd only to Oklahoma Water Resource Board

• Surface Water Rights

Pensacola Dam (120MW) Constructed 1938-40 for $28 million. Updated construction cost: $300+ million.

Salina Pumped Storage (260MW) Constructed 1968-72 for $30 million. Updated construction cost: $350+ million.

Robert S. Kerr Dam (114MW) Constructed 1962-64 for $40 million. Updated construction cost: $280+ million

Water Quality and the Economy…

•  What is GRDA…GRDA at a glance •  Complexity of the Watershed •  Obvious Relationships •  Not-so-obvious Relationships •  Economic Challenges

Kansas Baxter Springs, Burlington, Chanute, Columbus, Council Grove, Emporia, Erie, Galena, Oswego,

Hartford, Hillsboro, Humbolt, Inola, Marion, Parkerville, Parsons, Pittsburg

Missouri Aurora, Anderson, Carthage,

Goodman, Golden City, Joplin, Lamar, Noel, Neosho, Pineville, Rocky Comfort, Stella, Stotts,

Washburn, Webb City, Wheaton, Seneca

Oklahoma Grove, Miami, Wyandotte, Afton, Fairland

Arkansas Bentonville, Bella Vista, Gravette, Pea Ridge, Sulphur Springs

Complex Political Boundaries

Water Quality and the Economy…

•  What is GRDA…GRDA at a glance •  Complexity of the Watershed •  Obvious Relationships •  Not-so-obvious Relationships •  Economic Challenges

Grand Lake …�Oklahoma’s Premiere Recreational Destination…

…And At Times, Oklahoma's 3rd Largest City!!!

Blue Green Algae Bloom, Grand Lake, 2011

Blue-Green Algae

Tulsa World: June 25, 2011

Grove Sun: June 28, 2011

Tourism Impacts

Ponca City News: June 28, 2011

Lawton Constitution: July 2, 2011

Ada Evening News: July 21, 2011

Tourism Impacts

Durant Daily Democrat: July 3, 2011

Enid New and Eagle: July 21, 2011

Grand Lake Boat Density

Grand Lake …�Oklahoma’s Premiere Recreational Destination…

Grand Lake’s development contributes to a broad tax base.

Tulsa World: August 29, 2011

Medical Costs: (OK Health Dept)

Grand Lake Report: August 22, 2011

National Headlines

Bacteria

Water Quality and the Economy…

•  What is GRDA…GRDA at a glance •  Complexity of the Watershed •  Obvious Relationships •  Not-so-obvious Relationships •  Economic Challenges

airflow

Warm Water WithHigh Dissolved Oxygen

Cold Water WithHigh Dissolved

Oxygen

Air vent connected tozones of subatmospheric

pressure in turbine

Cold Water WithLow Dissolved Oxygen

•  2 MW Loss/Unit * 6 Units @ Pensacola (120 MW Facility) •  Low Dissolved Oxygen Season (May through October) •  10% Loss in Efficiency for the Hydro-Facility

Dissolved Oxygen (Economic Costs to Ratepayers)

Stop Log

Stop Log

Stop Log

Stop Log

“Sluice log” spill zone

•  500 ≈ cubic feet/second •  May through October

•  $ Lost Revenue

Dissolved Oxygen (Economic Costs to Ratepayers)

Treatment Costs:

From OWRB:

Final Report: CA # 2P-96690801, Project 4, Developing In-Lake BMPs to Enhance Raw Water Quality of Oklahoma’s Sensitive Water Supply

Lake Thunderbird Parameters •  Total Organic Carbon •  Turbidity •  Nutrients •  Bacteria…

Sedimentation (Conservation/Restoration Costs)

Law Suites

•  Water Works says nitrate levels have surged in the Raccoon and Des Moines rivers, including in recent weeks, requiring extra steps to make the water safe for drinking. Such steps cost up to $7,000 a day and will require tens of millions of dollars in plant upgrades if high nitrate levels continue in the years ahead, said Bill Stowe, Water Works’ chief executive.

•  Tom Oswald, president of the Iowa Soybean Association and a corn and bean farmer in Cherokee County bordering Buena Vista County, noted the state's nutrient reduction strategy for agriculture is just two years old. Since the initiative was established, more than 1,600 Iowa farmers have invested $4.2 million to implement new practices on their farms to better protect water quality.

January 8, 2015

Associated Press: May 9, 2015

Water Quality and Economics…

•  What is GRDA…GRDA at a glance •  Complexity of the Watershed •  Obvious Relationships •  Not-so-obvious Relationships •  Economic Challenges

Des Moines Water Works Investments: •  $7,000/day * 365/days/year

•  = $2.2 Million/year •  $2.2 Million ÷ 500,000 Customers

•  = $4.4/year/Customer

Iowa Soybean Association: •  $4.2 Million ÷ 1,600 members

•  = $2,625/member

Federal Programs

EQUIP WRP RCPP

Conservation and Restoration Programs

City/County/State

Critical Infra-Structure Upgrades Waste Water Treatment Plants

How Do We Overcome Complex Political Boundaries?

Des Moines Water Works Investments ≈ $4.4/year/Customer Iowa Soybean Association ≈ $2,625/member

Questions?

Environmental Federation of Oklahoma 24th Annual Meeting October 15-16, 2015