2020 Black & Veatch

Strategic Directions

Water Report
 B
ased on a survey of roughly 300 stakeholders in the
North American sphere of water and wastewater, the
Black & Veatch 2020 Strategic Directions: Water Report
examines the issues and trends impacting today’s water
industry at a time when matters couldn’t be more complex.

About The water sector continues to be plagued by multiple challenges

This underlined by aging infrastructure in combination with an aging

workforce that puts our systems at even greater risk due to the

Report
loss of critical expertise. Increasing natural disasters impacting
water systems, including wildfires, floods and drought, highlight
the rising impacts of climate change on the resilience of our
water systems and the need for significant investment. A global
pandemic and the resulting financial havoc has multiplied the
Cindy Wallis-Lage pressure on utilities to be resilient in their services and make the
President, Black & Veatch’s sorely needed investment in supply, treatment, conveyance and
water business storage facilities. COVID-19’s spread forced federal, state and
local governments to halt businesses and industries, leaving tens
John Chevrette of millions of Americans jobless and unable to pay utility bills in a
President, Black & Veatch
time when clean water and sanitation is foundational to stopping
Management Consulting, LLC
the spread of the virus.

While the added complication of COVID-19 has further strained

the bottom lines of many water utilities, this moment of crisis
provides the opportunity to accelerate innovation in strategy,
operations and funding. Utilities will need to unleash the value of
data in their operations by using analytics and other technologies
to drive better decision-making, optimize and prioritize system
investments, and drive cost efficiencies that propel sustainable
and resilient systems.

This year’s 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
[email protected].

2020 STRATEGIC DIRECTIONS: WATER REPORT | ABOUT THIS REPORT | 2

CONTENTS

72
Overseas
Perspectives
73 I Ensuring All
Customers Have an
Equal Opportunity to
Receive Leading-Edge
30 I Addressing Service

4
Resilience and the
Scramble for Water 77 I Asia Pacific’s
Water Industry
37 I Water Resilience: Focuses on
Executive When Too Much Sustainability,
Summary of a Good Thing Resource Recovery
Isn’t Great
5 I Digital Water
Expands in Use,

82
45 I PFAS, Lead,
Importance in a Time Nitrate/Nitrite:
of Climate Change, Key Concerns for
Pandemics Drinking Water
Utilities 2020 Report
10 I As Infrastructure Background
Ages, ‘Digital Water’ 53 I Nutrient
Drives Optimization Management
Drives Wastewater
16 I Aging Investment
Infrastructure and
Workforce: Vexing 60 I The Future is
Challenges Remain Bright for Water
Recycling Strategies
23 I Utilities
Increasingly Rely on 67 I The Conundrum
Planning, Forecasting of Water Affordability:
to Mitigate the What Is It, and What’s
Impacts of Climate at Stake?
Change

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTENTS | 3

Executive
Summary
Digital Water Expands in Use,
Importance in a Time of
Climate Change, Pandemics
By Cindy Wallis-Lage

2020 STRATEGIC DIRECTIONS: WATER REPORT | EXECUTIVE SUMMARY | 4

 A
cross the spectrum of water utilities, the churn of challenges
has seldom been more glaring, squeezing stakeholders and
forcing them to think outside the box.

Aging infrastructure and the graying of the industry’s retirement-

A B OUT TH E AUTH OR bound workforce remains a vexing issue, decades in the making.
Climate change continues to assert itself in dramatic ways —
Cindy Wallis-Lage is President of from a “megadrought” gripping a large swath of the western
Black & Veatch’s water business, United States to intense flooding elsewhere — that test the ability
leading the company’s efforts to of water utilities either to provide enough water or effectively
address water infrastructure needs handle historic inundations.
around the world. A global champion
for the world’s water resources, she All of this is compounded by a global pandemic. Beyond its tragic
advocates understanding water’s true death toll, COVID-19 unleashed a worldwide financial meltdown
value and promoting its resilience so fanned by government-ordered shutdowns of businesses and
that communities may achieve their industries. Unsurprisingly, U.S. water utilities are taking an
social, economic and environmental
operational and financial hit as some of their biggest clients —
sustainability goals. Wallis-Lage has
commercial and industrial users — have halted operations and
been involved in more than 100
tens of millions of laid-off U.S. workers have stymied the ability
projects worldwide, helping public and
of households to pay their utility bills, undercutting revenue to
private entities successfully, develop,
enhance and manage their water,
water and energy providers.
wastewater and stormwater facilities
Welcome to a transformative time in the world of water, where
and infrastructure.
government and water industry decision-makers around the
globe continue to absorb how climate impacts and increased
financial constraints threaten our supply’s resilience.

Now more than ever, stakeholders faced with such complexities

continue to embrace the promise of “digital” or “smart” water.
That means harnessing data to precisely track consumption,
drive customer engagement, optimize performance and prioritize
investment dollars. Increased sustainability and resilience through
informed asset management (AM) and planning are the rewards,
along with the invaluable, holistic view of the water system.

2020 STRATEGIC DIRECTIONS: WATER REPORT | EXECUTIVE SUMMARY | 5

 Digital Water: Solutions in the Numbers

To little surprise, U.S. water utilities — the

municipalities and private companies that
provide the tens of thousands of community
Figure 1 water systems that are the backbone of this
nation’s water sector — are doing more with
In terms of data volume versus its usefulness,
less. Eighty percent of the nearly 300 North
which of the following statements best
American respondents to Black & Veatch’s
describes the current data management
2020 Strategic Directions: Water Report survey
practice at your organization?
cited aging water and wastewater infrastructure
Source: Black & Veatch
as the industry’s chief challenge. That’s an
overwhelming alignment which is independent
of the size or region of the utility and easily
eclipses other issues such as justifying capital
57.4 % improvement programs, managing capital
Collecting lots costs or system resilience.
of data but
not leveraging Enter the power of data to gain insight about
effectively when, where and how much to invest in our
20.6% systems. The opportunity to gather and integrate
Collecting lots data using our current data collection systems
of data that
is leveraged
14.6% — combine with evolving next-generation, cost-
effective sensors and smart devices — provides
Collecting
effectively the input to allow for the predictive analytics
some data
and leveraging to detect leaks, forecast usage, reduce costs
effectively and everything in between. Some 15 percent
of respondents report having a robust, fully
integrated approach to data, encouragingly
7.4% up from just 5 percent a year earlier. Some 56
Collecting percent say their data-management efforts are
some data but strengthening but not fully integrated, consistent
not leveraging with 2019’s results. Nearly 30 percent — a slight
effectively
decrease from one-third a year earlier — say
their data remains largely unintegrated in silos.

Asked separately about their data’s

meaningfulness, nearly 60 percent respondents
reported that while they were collecting “lots”
of data, it wasn’t being leveraged to actionable
information. Just 20 percent said they were
making the most of their data, with only 15
percent admitting they were corralling “some”
data and using it effectively (Figure 1).

2020 STRATEGIC DIRECTIONS: WATER REPORT | EXECUTIVE SUMMARY | 6

 Siloed data amounts to lost opportunity, costing operators
the vast benefits of expansive data harvesting that can give
meaningful insights about their entire water ecosystem. Better
date use also can guide them to higher operational efficiency,
performance predictability, maintenance planning and optimized
workforce needs. If you think of the utility’s components as its
nervous system, maximizing data collection through digital tools
can give utility managers the clearest picture of its overall health
— a forward-thinking approach.

In addition to digital water’s influences and climate change

Siloed data amounts
impacts on the water industry, and other key issues, our
to lost opportunity,
report examines:
costing operators
● Aging infrastructure: For the water industry, the pursuit of
the vast benefits
sustainability has been challenged in recent decades by
of expansive data insufferable headwinds involving the aging of both the industry’s
harvesting that can infrastructure and its workforce. With the water system in urgent
give meaningful insights need of repair, maintenance and restoration, we look at how
about their entire water sizable the sector’s concerns about each of these are — and to
ecosystem. Better date what extent they’re dealing with them. What strategies should be
use also can guide them deployed?

to higher operational ● Water reuse: Weighty issues such as population growth, climate
efficiency, performance change, regional droughts and floods are pushing the availability
of freshwater— and the need to mitigate effluent discharge —
predictability,
to the forefront of water management. As more utilities take a
maintenance planning circular economy approach to water resource management and
and optimized sustainability, what are the latest trends in water reuse, including
workforce needs. reclaimed water? What measures can utilities take to overcome
cost and public acceptance barriers to implement more water
reuse solutions?
● Water affordability: Customers expect that when they turn on
the faucet, they will get potable water at adequate pressure and
enough of it for their on-demand needs. They expect to pay for
this level of service but at reasonable prices. The question then
becomes, “Is water affordable?” The answer may become more
elusive against the backdrop of the COVID-19 pandemic, which
could challenge a utility’s reserves, how rates are structured
and how a utility looks to manage its customer services and
operations.

2020 STRATEGIC DIRECTIONS: WATER REPORT | EXECUTIVE SUMMARY | 7

 Climate Change a Key Concern

Discussed separately at length in this report, climate change —

and the increasingly worrisome predictions about it — continue
to grab attention among water utilities as one of the great
water challenges of our time. More than 80 percent of
respondents to Black & Veatch’s survey listed natural or man-
made disasters as their top resilience concern. Catastrophic
Figure 2 infrastructure failure was a distant second (56 percent), followed
What are your most by another climate change-related category — extended drought
significant resilience and supply restrictions — at 38 percent (Figure 2).
concerns?
Asked separately which elements are included in their
(Select up to three).
water supply plan, 85 percent of those surveyed said water
Source: Black & Veatch
conservation or drought management. Nearly 70 percent said

83.5%
“scenario planning,” with climate change and variability closing
out the top three at 55 percent.

Natural or man- Just half of respondents declared they were “somewhat more
made disaster confident” about their supply forecasting model now than
in recent years. Twenty-five percent said their confidence

55.7 %
is unchanged, while an identical amount said they were
“somewhat less confident” today.
Infrastructure A Pandemic Affects the Water Sector
catastrophic failure
Because the online survey for this report was conducted during
a three-week span ending on March 30, 2020 — a time when
38.1%
Extended drought/
the COVID-19 pandemic was accelerating — it’s difficult to
discern how much of an impact that global outbreak had on the
supply restrictions responses. Or whether the data would be dramatically different if
the survey was done later during the height of the virus’ spread.

34.0%
Cyber attack
Undeniably, as also discussed in this report, the pandemic
has rattled the water industry. Beyond the universal need for
reliable access to clean water for public health -- regardless of
one’s ability to pay -- the outbreak forced many commercial

30.9%
Impacts from
and industrial customers to halt operations. In turn, that has
strained utilities’ revenues and cash flows. Tens of millions of
climate change U.S. workers were laid off during the outbreak, rendering many
of them unable to pay their water bills. Around the country,
water providers suspended water and wastewater shutoffs to

12.4%
Terrorist attack
delinquent accounts, in both the interest of humanity and as
affirmation of the importance of water and sanitation in trying to
contain the virus.

5.2%
Other

2020 STRATEGIC DIRECTIONS: WATER REPORT | EXECUTIVE SUMMARY | 8

 At the time of this report, questions lingered about whether
the federal government planned to direct taxpayer aide to
municipalities, given COVID-related revenue shortfalls that likely
would impact whether investments in water infrastructure go
forward, or if the industry will face belt-tightening challenges
akin to the financial crisis more than a decade earlier.

The National Association of Clean Water Agencies (NACWA) led

a joint water sector request to Congress on May 14, 2020, to
address the coronavirus pandemic’s impacts on drinking water
systems, clean water systems and water recycling systems.
Current predictions estimate a $16.8-billion impact to clean water
utilities and a $13.9-billion impact to drinking water utilities due
to lost revenue. NACWA warned that without taxpayer help to
“As the nation grapples the industry, the revenue loss from forgiving customer debts
with the COVID-19 and providing services without payment during the pandemic
response, the nation’s ultimately would be passed on to water customers in subsequent
public clean water years and lead to future rate increases.

agencies are at the This is a time of great challenge, and with it comes an opportunity
front lines of ensuring to drive change; change that can be fueled by innovation in
Americans have reliable, strategy, operations and funding to protect human health and
critical clean water our environment and to facilitate the economic engine that
comes from infrastructure investment. 
services,” said Adam
Krantz, NACWA’s chief
executive. “The impacts
of coronavirus for clean
water agencies will be
enormous.”

2020 STRATEGIC DIRECTIONS: WATER REPORT | EXECUTIVE SUMMARY | 9

As Infrastructure Ages,
‘Digital Water’ Drives Optimization
By Jeff Stillman, Jeff Buxton, Andrew Chastain-Howley and James Strayer

W
ater utilities take on the difficult job This overhaul will rely on better use of existing
of ensuring that water always will data coupled with new sensors, information
be safe and that capacity always integration and data analytics to achieve
will be available — whether delivering drinking a sought-after result called “digital water.”
water or treating wastewater. This is becoming However, most utilities have a long way to go
an increasingly difficult task, given unforeseen with digital sensors, communications and data
events such as the COVID-19 pandemic that analytics before they can reach the desired
compound the chronic issues with aging water future state as a digital water utility.
infrastructure and an aging workforce taking its
Digital transformation of water utilities is
institutional knowledge into retirement with it.
not based on the implementation of a single
Finding the right balance of resource allocation
technology but a collection of operational
and operations activities is vital.
technologies. Those including field sensors,
The water industry is an asset-intensive, rate- communications backbones, computer
restricted industry that requires informed models and assessments coupled with
decision-making to effectively balance capital predictive software, supervisory control and
investment and rising operational expenses data acquisition (SCADA) systems, geographic
with resistance to rate increases. This makes information systems (GIS), flow and/or
the water industry notoriously complex, water quality data analysis, computerized
variable and uncertain. The industry, therefore, maintenance management systems (CMMS)
is an ideal candidate for a technological and operations management systems (OMS),
overhaul and transformation that would build as well as customer information systems (CIS).
new, data-driven solutions for effective asset The right combination of these technologies,
management, efficient operations and remote when properly integrated, will fuel digital water
system management, reducing operating costs. transformation.

2020 STRATEGIC DIRECTIONS: WATER REPORT | DIGITAL WATER | 10

The Beginning of the Utility Data Analytics Pipeline

Today, service providers generally are in at least the early stages

of implementing some element of digital water technology,
according to Black & Veatch’s annual survey of industry
stakeholders for its 2020 Strategic Directions: Water Report. This Most water utilities —
means they are collecting data in an attempt to drive smart 56 percent — indicated
decision-making. However, few utilities can say they are fully that their efforts are
digitized despite their data collections growing ever larger. strong and getting
When asked to describe current data management practices, stronger, but they
15 percent of survey respondents indicated that they have a still are not yet
robust, fully integrated approach. This achievement is worthy fully integrated.
of further study to characterize best practices among the high-
performing utilities. Most water utilities — 56 percent — indicated
that their efforts are strong and getting stronger, but they still
are not yet fully integrated. Finally, a significant minority of
utilities (29 percent) noted that their data is still largely isolated
in silos and not integrated (Figure 3).

The efforts made vary significantly depending on utility size.

While 24 percent of utilities serving 500,000 or more customers
reported that they have a robust, fully integrated approach
to data management in place, only 7 percent of smaller water
utilities said the same.

Figure 3
Which of the following statements best describes the current data management
practice at your organization, in terms of integration? (Select one)
Source: Black & Veatch

29.4%
55.9 % Data largely still in silos and not integrated

Strong, and getting

stronger, but not
fully integrated
14.7 %
Robust, fully integrated approach

2020 STRATEGIC DIRECTIONS: WATER REPORT | DIGITAL WATER | 11

 Data, But Not Insight

The vast majority of water utilities reported they

Figure 4 are collecting lots of data. Still, only roughly 20
Which of the following statements best percent of respondents say they are leveraging
describes the current data management it effectively for digital transformation, meaning
practice at your organization, in terms of that most utilities have a long way to go in their
data volume versus usefulness? push to optimize their utility data analytics
Source: Black & Veatch (Figure 4). Collecting data is a critical first step,
but it can be a significant challenge to use
that raw data to yield actionable intelligence,
improve digital water utility operations, and
effect digital transformation.
57.4%
Collecting lots Knowing where to start can be a challenge.
of data but As water utilities are highly asset- and
infrastructure-oriented, one of the best first
not leveraging
steps toward digital water is the adoption or
effectively
20.6% improvement of asset management business
practices. Additionally, a rapidly growing
Collecting lots
of data that subset of data collection is in remote system
is leveraged monitoring. Water utilities often carry high field
effectively services costs that can be addressed through
14.6% increased remote system monitoring, which is
Collecting
a major step in digital water transformation.
some data
and leveraging
effectively
7.4%
Collecting
some data but
not leveraging
effectively

2020 STRATEGIC DIRECTIONS: WATER REPORT | DIGITAL WATER | 12

 Quality
The Quality-Access-Leverage Equation:
Without having all three, a utility is not fully
optimized for digital water.
Leverage Access

The Quality-Access-Leverage Equation The Elements of Digital Water

Success as a digital utility hinges on the When asked which functions or elements they
quality, access and leverage of available data see as being included in a digital water initiative,
throughout the organization. Survey results few commonalities exist. The “digital water”
showed that significant numbers of water utility definition seems to be unclear for many (Figure
professionals — more than 90 percent — are 5). Some of the best-established systems that
positive on their views of their data quality, are widely utilized — such as SCADA, GIS, flow
labeling it “very good” or “good” and either “all and water quality data, and CMMS — were
correct” or “mostly correct,” but this may not less likely to be considered as part of a digital
be the full picture. Quality may be excellent in water initiative. This may be partly because
specific areas, but it is unlikely across the whole they have been in use for a long time already,
utility. Furthermore, access to data and effective but it also may be that these systems are
leverage of that data are key elements of a viewed as important for a particular “silo” in the
successful digital utility. organization. In practice, each of these systems
are data-rich and are important foundational
● Quality: The first element in achieving digital
elements for a digital water utility.
water efficiencies is ensuring the data being
collected is of the highest possible quality The top systems identified as part of a digital
and is appropriate to the needs of the water initiative were also some of the least
organization. widely utilized systems, such as energy
● Access: This involves not only having the data management, document management,
and ensuring that it’s correct and complete, business intelligence and enterprise
but ensuring it is available and secured within resource management. This may reflect an
technology platforms and across all business understanding that a digital water initiative is
areas that measure and manage the utility’s an effort to implement new systems. While this
assets and operations. may be true — and some new systems may be
required — integration of existing systems is
● Leverage: The utility must implement
also a key element in optimizing a digital utility.
appropriate tools, analytics, and workflows
to make the best use of the data and
leverage it for deeper insights throughout
the organization — not necessarily just the
original purpose it was collected for.

Utilities with properly structured and vetted

data policies can collate, organize and leverage
it across systems and workgroups to ensure
integration and effective management of the
infrastructure to enable good digital water
utility data-centric decision making.
2020 STRATEGIC DIRECTIONS: WATER REPORT | DIGITAL WATER | 13
Figure 5
Which elements do you see as being included in a digital water initiative, and which elements
does your utility currently use? (Select all that apply)
Source: Black & Veatchl

Included in a digital Currently

water initiative used

SCADA
(Supervisory Control and Data Acquisition) System 19.1% 83.8%
GIS
(Geographic Information System) 19.1% 82.4%
Flow and/or water quality data 20.6% 77.9%
CMMS
(Computerized Maintenance Management System) 17.6% 69.1%
or Operations Management Sytem (OMS)

Customer information 17.6% 69.1%

Static datasets
(in-house Excel models) 20.6% 63.2%
Computer models and other
assessment/predictive software 29.4% 63.2%
Automated Meter Reading (AMR)
or Advanced Metering Infrastructure (AMI) 25.0% 63.2%
Mobile workforce solutions 22.1% 61.8%
Weather data
(rainfall, temperature etc.) 26.5% 58.8%
LIMS
(Laboratory Information Management System) 19.1% 57.4%
Dashboards and tools for accessing/
displaying info (PowerBI, Tableau, etc.) 26.5% 51.5%
Document Mgmt System (DMS)
or Information Mgmt Systems (IMS) 27.9% 48.5%
Energy management systems 29.4% 41.2%
Data analytics and/or business intelligence systems 27.9% 35.3%
ERM
(Enterprise Resource Management System) 25.0% 29.4%

2020 STRATEGIC DIRECTIONS: WATER REPORT | DIGITAL WATER | 14

Barriers to Digital Water, A B O U T T H E AU T H O R S

Utility Transformation
Jeff Stillman is the asset management practice leader
The most challenging issue to water utilities for North America. He has 25 years of experience in system
today is aging water and wastewater planning, program development, modeling, information
infrastructure, with nearly 80 percent of water system integration and business intelligence.
utilities of all sizes identifying this as their
Jeff Buxton is managing director in the Black & Veatch
biggest problem. Utilities will have a more
Management Consulting Group. He leverages more than
difficult path to a digital water initiative if their
40 years of experience within the energy, utility, information
equipment and technologies are not optimized
technology (IT), technology and industrial sectors, including
for smart water utility practices, costing them an North American and international management expertise
opportunity to be more targeted in addressing delivering business-to-business solutions. His experience
aging infrastructure and prioritizing investment encompasses strategic business planning, technology
dollars. roadmap planning, IT infrastructure management, contract
development, project financing, program management,
Additionally, many organizations report communications, change and operations management
mixed success when it comes to getting top-
level management to commit to a culture of Andrew Chastain-Howley is a director of digital water
innovation. Only 37 percent of organizations solutions for Black & Veatch. He has 30 years of experience
report that management is fully committed in water and wastewater projects in the United Kingdom,
Asia, the Middle East and North America. His expertise
to innovation, and only 28 percent report that
includes asset management, water loss control, and digital
their organizations have a clear vision and
systems and analytics.
goals established for more sustainable models
of operations in the future. Only 13 percent of James Strayer is the department head for Black &
utilities reported that the use of resources is Veatch’s planning and asset management team in North
clearly mapped and documented to provide America. He has 27 years of experience spanning planning,
transparency. design, construction, programs, and asset management
applications.
Going forward, water utilities will need to
properly deploy digital data acquisition and
wield data analytics in utility operations and
maintenance. That would preserve their existing
infrastructure, address burdensome O&M
costs, reduce water waste, determine where
new investments in infrastructure would be
most effective, and reap the benefits of smart
water analytics and data sharing to drive
intelligence-based decisions in operations
and infrastructure investment. 

2020 STRATEGIC DIRECTIONS: WATER REPORT | DIGITAL WATER | 15

Aging Infrastructure and Workforce:
Vexing Challenges Remain
By Rob Knee, Will Williams and Joe Zhou

T
his isn’t news. In fact, it’s an old and stormwater professionals who took the
and long-standing problem. survey named aging infrastructure as the most
challenging issue they face today (Figure 6).
America’s water infrastructure is
deteriorating quickly, causing increasing Many also report that the experienced workers
failures because adequate investments haven’t who have kept their water flowing for decades
been made in rehabilitation or replacement. are reaching retirement age. These dual
Not surprisingly, aging infrastructure is the problems are forcing utilities to focus on asset
major worry for respondents to Black & Veatch’s management, shift hiring practices and adopt
2020 Strategic Directions: Water Report survey. new strategies for the workforce of tomorrow.
Nearly 80 percent of the water, wastewater

2020 STRATEGIC DIRECTIONS: WATER REPORT | AGING INFRASTRUCTURE AND WORKFORCE | 16

Figure 6
From your perspective, what are the most
challenging issues facing the water,
wastewater and stormwater industry?
(Select up to three)
Source: Black & Veatch

79.4%
Aging water
19.9%
Managing
and wastewater operational
infrastructure costs

Making the Grade

26.0%
Justifying CIPs
19.1% According to the bi-annual infrastructure report
card issued by the American Society of Civil
Treatment
and/or rate technology Engineers (ASCE), the 2019 edition again gave
requirements America’s drinking water infrastructure a grade of
“D” — unchanged from 2017 but an actual, albeit

25.3 % 17.7%
Water
marginal, improvement from the “D” of 2009.

Managing conservation This worry has been years in the making. Water
capital costs utilities start in small, centralized locations and
grow as the communities they serve expand.

24.9 % 17.0%
Integrated water
Investment typically has gone into keeping up
with municipal growth and daily operations.
System resilience planning
Meanwhile, as the water system grows and
grows, the pipes that have been in the ground

22.7%
Data collection
17.0%
Condition
generally only get attention when they’re close
to failure (Figure 7). Replacing that pipe is costly
and disruptive.
and management assessment
capabilities How old is our water infrastructure? That
depends. When journalists at Circle of Blue —

9.7%
a water-oriented online news venue — queried
public works departments of U.S. cities, they
Information found that half of Philadelphia’s mains are at
technology least 90 years old, with some mains pre-dating
the Civil War. The average water main’s age in
Baltimore is 75. Whereas in San Antonio, half
the pipes were installed after 1985.

2020 STRATEGIC DIRECTIONS: WATER REPORT | AGING INFRASTRUCTURE AND WORKFORCE | 17

 In another study, Utah State University
researchers who examined some 200 water
utilities in the United States and Canada in
2018 found that 16 percent of their mains were
beyond their useful lives. Six years earlier,
only 8 percent of mains had reached the end-
of-life stage. And because a larger proportion of
pipes are reaching or exceeding their life spans,
pipes break more, resulting in a 27-percent
increase in ruptures during the six years
between the two Utah State studies.

This, of course, shows up in those American

Water Works Association and ASCE report card
statistics: An estimated 240,000 main breaks
happen annually, and 6 billion gallons of treated
drinking water go to waste each day due to
leaking pipes.

Figure 7
Once a need for infrastructure improvement has been identified, how do you know when to take
the next step and execute the project? Rank the following from 1 (most impact) to 5 (least impact).
Source: Black & Veatch

1 5
Most 2 3 4 Least
Impact Impact

When we suspect something

is about to break/fail 60.0% 24.7% 10.6% 4.7% 0.0%

When regulatory bodies

demand action 21.2% 44.7% 24.7% 7.1% 2.4%

When public opinion

demands it 5.9% 18.8% 43.5% 24.7% 7.1%

When we see other

communities taking action 0.0% 8.2% 17.6% 62.4% 11.8%

Other 12.9% 3.5% 3.5% 1.2% 78.8%

2020 STRATEGIC DIRECTIONS: WATER REPORT | AGING INFRASTRUCTURE AND WORKFORCE | 18

 Getting Smarter

The water system’s age and frailty are forcing utilities to increase
efforts related to asset management. Some are choosing to
augment these endeavors with analytics.

England’s Anglian Water supplies water to more than 6

million customers and manages infrastructure for the largest
Figure 8 water-utility territory in the country. This past year, the utility
commissioned Black & Veatch to develop a digital representation
What percentage of your
that mirrors the region’s water treatment and distribution
workers are eligible for
infrastructure. This “digital twin” will have embedded artificial
retirement in the next
intelligence capabilities that enable predictive analysis to
five years?
support decision-making and failure-prevention efforts. The
Source: Black & Veatch
digital infrastructure also is in constant dialogue with its physical
counterpart, which allows Anglian Water to simulate and test
options before implementation in the real world.

Such technology is a huge addition to utility intelligence and also

serves to address the threat to organizational knowledge: retiring
workers.

On average, survey respondents report that 26 percent of their

workers will be eligible for retirement within the next five years
(Figure 8). Twenty-five percent say that at least more than 30
1 out of 4 percent of their most experienced workers will hit retirement age
in that five-year window.
workers will be eligible
for retirement within
If a utility’s most experienced people suddenly leave en masse,
the next five years
what happens when crews need to fix a pipe that’s been in the
ground for 50 years? It’s the experienced workers who know the
quirks of the system, and that institutional knowledge will follow
them out the door.

26 percent of their workers will

be eligible for retirement within
the next five years.

2020 STRATEGIC DIRECTIONS: WATER REPORT | AGING INFRASTRUCTURE AND WORKFORCE | 19

Only 44 percent of survey respondents new generation of workers. It takes a special
could agree that their utilities had robust commitment to rush to fix a ruptured pipe at
documentation processes in place. Most — 1 a.m. when it’s 28°F degrees outside and water
83 percent — agreed that some tribal is gushing all over the street.
knowledge is lost when someone leaves.
The same is true for treatment systems. In
Sixty percent of respondents agreed with the
recent discussions with utilities about risk and
statement, “Our system has some peculiarities
resilience assessments under America’s Water
that only a small group know about” (Figure 9).
Infrastructure Act, we asked the question, “If
It’s not unusual to hear water utility workers you were without access to digital control
admit that they only have a handful of people systems or data, how well could you operate the
who could go to an older part of town and system?” A number of utilities would struggle
understand where to go on the line to redirect to find the operations manual and have fewer
the water or how to work on that specific experienced workers who could operate
type of pipe. Even worse, water utilities face treatment works without advanced online
recruiting challenges because the work is control systems.
difficult and not necessarily appealing to a

Figure 9
Please indicate to what extent you agree or disagree with the following
statements relative to workforce knowledge and process documentation.
(Select one for each row)
Source: Black & Veatch

Strongly Somewhat Neither agree Somewhat Strongly

agree agree nor disagree disagree disagree

Some tribal knowledge

will naturally be lost when
someone leaves
33.3% 49.4% 10.3% 4.6% 2.3%
Our system has some
peculiarities that only a
small group know about
12.6% 48.3% 19.5% 16.1% 3.4%
We rely on technology
to standardize many
operational processes
14.8% 39.8% 27.3% 17.0% 1.1%
We have adequate
succession planning
processes
8.0% 40.9% 22.7 % 18.2% 10.2%
We have robust
documentation that
covers all necessary 8.0% 36.4% 25.0% 22.7 % 8.0%
responsibilities
If we rely on too much data
we risk losing the human
element
5.7 % 35.2% 36.4% 12.5% 10.2%

2020 STRATEGIC DIRECTIONS: WATER REPORT | AGING INFRASTRUCTURE AND WORKFORCE | 20

Despite the grittiness of many water utility jobs, Communication skills also are considered more
water providers still have had to change what important now, according to nearly three-
they look for in new hires, too. quarters of respondents. That makes sense,
given that the people out in the field fixing a
Nearly 80 percent say digital savviness has broken pipe or meter are also the public face
become more important. That’s likely because of the utility: If they have poor communication
water utilities increasingly are using mobile skills, it can reflect poorly on the organization.
workforce management systems, meaning
workers must navigate that software on a Analytic skills are equally important, according
laptop or tablet. They also may need to be able to nearly three-quarters — 72 percent of
to use a content management system to access respondents — because these new workers
the documentation held within it (Figure 10). will need to learn quickly, before their more
experienced teammates retire.

Figure 10
When thinking about the qualities your organization looks for in a new hire, how have those
qualities changed from five years ago? (Select one for each row)
Source: Black & Veatch
Somewhat Somewhat
Much more more Same less Much less
important important importance important important
today today today today today

Digital
savviness 31.0% 48.3% 20.7 % 0.0% 0.0%

Communications
skills 19.5% 54.0% 26.4% 0.0% 0.0%

Analytical
skills 18.4% 54.0% 24.1% 2.3% 1.1%

Engineering
background 10.3% 36.8% 46.0% 4.6% 2.3%

Experience in
the industry 11.6% 34.9% 50.0% 2.3% 1.2%

College
degree 10.6% 22.4% 56.5% 9.4% 1.2%

Ability to work
odd hours 4.6% 18.4% 64.4% 9.2% 3.4%

2020 STRATEGIC DIRECTIONS: WATER REPORT | AGING INFRASTRUCTURE AND WORKFORCE | 21

Figure 11
To what extent are you making changes to attract and retain your employees?
(Select one for each row)
Source: Black & Veatch

Currently doing Planning to do No plans to do

Adjusting compensation
and benefits packages 58.0% 20.3% 21.7 %
Improving work/life balance 30.1% 28.8% 41.1%
Adding perks to the
workplace (food, drink, etc.) 24.3% 17.1% 58.6%

To attract these skills, water utility managers are A B O U T T H E AU T H O R S

raising their recruitment efforts by increasing

compensation (78 percent), improving work/ Robert Knee is principal consultant at Black & Veatch’s
life balance (59 percent) and adding workplace Management Consulting Group, where he provides
perks (41 percent) (Figure 11). organizational readiness and change management
expertise, with a focus on changes associated with
The data reflects the combination of aging customer, workforce and asset management technology
infrastructure assets, quirks and all, coupled Implementations. Knee has 10 years of experience
with critical workforce elements often closer applying his organizational psychology expertise to
to the end of their careers than the beginning, helping utility clients realize the benefits of change.
that creates a unique challenge for any
Will Williams is associate vice president of asset
essential service provider. Yet, technology management for Black & Veatch’s water business. He
and an increasing recognition of the value of has spent nearly three decades working in the United
water services may provide the key resources Kingdom, Australia, Europe, the Middle East and the
necessary to ensure the reliability of systems United States implementing asset management solutions
for decades to come. Sensor deployments, for multi-sector utility clients. Williams has extensive
metering and increasingly smart data modeling, experience in asset management planning, including
digital twins and analytics provide new levels asset failure analysis, risk and resilience assessment,
of insights that can complement institutional performance benchmarking, maintenance optimization,
knowledge (before it leaves) to create a business planning, serviceability assessment, whole
life costing, operational efficiency, business change
permanent record of critical system functions
management and infrastructure rehabilitation.
that can be studied, refined and improved.
Joe Zhou is senior managing director at Black & Veatch’s
While maintaining water and wastewater
Management Consulting Group, where he leads the
infrastructure will never be considered easy
Business, Technology and Architecture Offering group
work, deploying technologies that both reduce that includes security and resilience, asset management
operational inefficiencies like leakage and non- and analytics to provide innovative and insightful
revenue water while reducing the likelihood of consulting services to asset-intensive industries, such as
asset failures of the type that disrupt service power, oil and gas, and water. Zhou has more than 25
(and sleep) definitely lighten the load.  years of experience enabling business transformations
with digital technologies and leading business practices.

2020 STRATEGIC DIRECTIONS: WATER REPORT | AGING INFRASTRUCTURE AND WORKFORCE | 22

Utilities Increasingly Rely on
Planning, Forecasting to Mitigate
Climate Change Impacts
By Jim Schlaman and Jon Dinges

C
limate change and the resulting above pre-industrial levels, and it projects that
fluctuations in weather events are at the current rate we will see global warming
changing the game for utilities as increase temperatures by 1.5°C between
increasing numbers of devastating floods, 2030 and 2052. The U.S. Environmental
droughts, snowpack changes and ferocious Protection Agency (EPA) warns that these
wildfires alter our assumptions about water impacts are likely to affect the hydrologic cycle,
security and supply. impacting everything from the flow of water in
watersheds to the quality of aquatic and marine
The climate change picture is bleak. According environments, not to mention the programs
to the Center for Disaster Philanthropy, there designed to protect water quality and public
were 14 billion-dollar weather and climate health and safety.
change disasters in 2019. The Atlantic hurricane
season continued its four-year streak of above- The U.S. Department of Defense (DoD)
average storms, with a record 18 named storms. considers global warming to be an existential
Flooding impacted 14 million people, with 200 threat to security, insisting to Congress in a 2015
million deemed “at risk.” And 2018 was the memorandum that “climate change is an urgent
most devastating wildfire season ever in the and growing threat to our national security,
United States, with six states breaking wildfire contributing to increased natural disasters,
records. refugee flows and conflicts over basic resources
such as food and water. These impacts are
In 2018, the United Nations’ Intergovernmental already occurring, and the scope, scale and
Panel on Climate Change (IPCC) issued a special intensity of these impacts are projected to
report that estimates human activities have increase over time.”
caused approximately 1.0°C of global warming

2020 STRATEGIC DIRECTIONS: WATER REPORT | CLIMATE CHANGE | 23

 The current COVID-19 situation also is demonstrating firsthand
the critical need for water utilities to continue to evaluate and
plan for vulnerabilities and potential system failures to mitigate
against a changing and uncertain future. Whether it’s a global
pandemic, catastrophic droughts, raging wildfires or destructive
floods, utilities must make their systems reliable and resilient to
Figure 12 meet the needs of the 21st century.

What are your most Black & Veatch’s 2020 Strategic Directions: Water Report survey
significant resilience of qualified utility, municipal, commercial and community
concerns? stakeholders looks at how today’s water industry is addressing
(Select up to three). and adapting to climate change.
Source: Black & Veatch

83.5 % Addressing Resilience Concerns

Survey data shows that climate change and its impacts are
Natural or man-
driving significant concerns around resilience. Natural and/or
made disaster
man-made disasters rank as the No. 1 threat to resilience efforts
— not surprising, given the increase in the number and intensity

55.7 %
Infrastructure
of severe weather events over the past decade (Figure 12).

Catastrophic infrastructure failure ranks second, indicating a

catastrophic failure concern that likely correlates to why more and more utilities are
turning to robust asset management programs to mitigate these
risks. Extended drought and/or supply restrictions — also tied to

38.1%
Extended drought/
climate change — ranked third, followed by cyberattack, impacts
from climate change and terrorist attack.
supply restrictions
Utilities recognize the critical need to invest in infrastructure
improvement projects. Still, their limited resources require

34.0%
Cyber attack
striking the right balance between addressing emerging needs
and executing repair and rehabilitation of existing assets. Having
a well-defined asset management and assessment program in
place allows utilities to analyze systems for vulnerabilities and

30.9%
Impacts from
catastrophic failures and mitigate those risks in a balanced and
proactive way.

climate change

12.4%
Terrorist attack

5.2%
Other

2020 STRATEGIC DIRECTIONS: WATER REPORT | CLIMATE CHANGE | 24

Figure 13
Once a need for infrastructure improvement has been identified, how do you know when to take
the next step and execute the project? Rank the following from 1 (most impact) to 5 (least impact)
Source: Black & Veatch
1 5
Most 2 3 4 Least
Impact Impact

When we suspect something

is about to break/fail 60.0% 24.7% 10.6% 4.7% 0.0%
When regulatory bodies
demand action 21.2% 44.7% 24.7% 7.1% 2.4%
When public opinion
demands it 5.9% 18.8% 43.5% 24.7% 7.1%
When we see other
communities taking action 0.0% 8.2% 17.6% 62.4% 11.8%
Other 12.9% 3.5% 3.5% 1.2% 78.8%

Most respondents (60 percent) said asset health If utilities have an asset considered vulnerable,
is the key driver of capital project prioritization they will work to fix it immediately and not wait
(Figure 13). This is particularly true for smaller for regulators to step in. When it comes
utilities: Of those that serve fewer than 500,000 to addressing emerging issues, the industry
people, 70 percent are working to stay ahead of largely is driven by regulators, with two-thirds
breakage and failure, compared to 47 percent of respondents waiting to execute infrastructure
of larger utilities. This suggests that larger, improvement projects until instructed by
more equipped utilities — armed with robust regulators. It is admittedly a nuanced situation,
asset management programs and targeted and utilities often are reticent to spend money
teams focused on condition assessments often unless instructed. The data does indicate that
facilitated by stronger financials — have these when there are resilience projects to be studied
situations under control, allowing them to look and built, the industry doesn’t appear to be
farther down the road. Smaller utilities often building projects they aren’t “told” to build.
are at a disadvantage here and remain focused For the industry to get better at resilience,
on meeting basic level of service goals. more leaders are needed who are willing to
invest when times are good and independent
of regulatory demands, to help offset impacts
when times are hard.

2020 STRATEGIC DIRECTIONS: WATER REPORT | CLIMATE CHANGE | 25

 Paying for Resilience

When it comes to funding these resilience and hardening

measures, three-quarters of respondents look to the tried-and-
true method of using rate increases to generate revenue, 55
percent consider federal grants, 53 percent look to state revolving
funds (SRFs), 40 percent plan to pursue loans, and one-quarter
When looking at the are interested in public-private partnerships (PPPs).
results parsed by
population served, These results reinforce the idea that respondents see value in
diversifying their funding, but funding still remains a substantial
larger utilities are
challenge. To address this growing client need, InfraManagement
more likely to seek Group, LLC (iMG), a wholly-owned subsidiary of Black &
assistance from the Veatch, works to identify innovative financing structures
federal government for the water industry. This includes looking to new and
than smaller utilities. innovative funding opportunities from the Water Infrastructure
Finance and Innovation Act (WIFIA), SRF, the Federal Emergency
Management Agency (FEMA), the U.S. Army Corp of Engineers and
the U.S. Economic Development Administration.

When looking at the results parsed by population served, larger

utilities are more likely to seek assistance from the federal
government than smaller utilities — 66 percent versus 48
percent. Larger utilities also are more interested in public-
private partnerships (37 percent compared to 17 percent). This
is because larger utilities, which often execute large, community
disruptive infrastructure projects, have more resources to
investigate these opportunities and have significant public
pressure to reduce the rate impacts, and must build stakeholder
buy-in through creative partnerships to successfully execute
these efforts successfully.

2020 STRATEGIC DIRECTIONS: WATER REPORT | CLIMATE CHANGE | 26

 Planning for the Future

Climate change is playing a larger role in water supply planning,

with 55 percent of respondents including it in their future
forecasting (Figure 14). This shows a shift in thinking over years
past. Water conservation and/or drought management — which
can also be a byproduct of climate change — ranked No. 1,
Figure 14
followed by scenario planning and climate change variability,
Which of the following with new surface water supplies and new reservoir storage tied
elements are included in for fourth.
your water supply plan?
(Select all that apply) In terms of timing, 43 percent of respondents are looking 11 to 20
Source: Black & Veatch years out, 24 percent are looking at the next six to 10 years, and
38 percent the next five years (Figure 15). Longer-term planning

85.1%
Water conservation
horizons play a significant role in utilities’ planning efforts,
particularly for stressed regions or those with rapidly expanding
populations. For example, in large urban water-stressed areas
and/or drought
such as Denver, Colorado — where water rights limitations and
management
water system limitations are the norm — utilities are looking 50
years out; otherwise their growth could be restricted by supply or

68.1%
Scenario planning
inability to secure adequate water rights. In arid areas in the West
and Southwest, longer-term planning horizons will be critical to
maintaining development and community growth.

Data also shows that the industry has been busy scenario
55.3
Climate change/
% planning for the future. Confidence in recent water planning and
forecasting efforts is growing, with 60 percent of respondents
variability more confident today than in recent years that their water supply
plan is robust enough to meet upcoming challenges. These
responses indicate that investments in planning technology are
31.9%
New surface
paying off. Survey data also shows utilities are beginning to favor
the sensitivity/vulnerability (S/V) analysis approach, which lets
water supplies utilities play out scenarios to identify vulnerabilities and possible
points of failure that can then be mitigated to reduce risk and
increase reliability.
31.9%
New reservoir
storage

8.5%
We do not have
a water supply plan

2020 STRATEGIC DIRECTIONS: WATER REPORT | CLIMATE CHANGE | 27

Figure 15
What is/are the planning horizon(s) of your water supply plan? (Select all that apply)
Source: Black & Veatch

18.9%
43.2%
37.8 %
2.7 %

In 5 years In 10 years In 20 years In 30 years In 40 years In 50 years

10.8%
24.3 %
16.2 %

For example, Colorado Springs, Colorado, Integrated water resources planning

recently completed such an analysis as part methodologies can guide utilities in the
of its Integrated Water Resources Plan (IWRP). development of resilient water supplies and
The city relies on multiple reservoirs along the realize multiple benefits to ratepayers, citizens
Continental Divide and a complex network of and stakeholders. Winter Haven, Florida, for
pipelines, tunnels and pumping stations to example, is developing a “One Water Master
deliver water to the population hub of the Plan” for a 50-year planning horizon. For its
Front Range. An S/V analysis examines the medium-sized utility serving approximately
“what if” scenarios. If a catastrophic wildfire 80,000 customers, Winter Haven’s planning
destroyed a watershed and the water quality is watershed scale and considers all water,
of a reservoir, could the utility still supply to the regardless of form, to be a valuable resource
necessary levels of service? If a major pump to be managed sustainably, allowing planners
station failed, could the utility reroute water to think holistically and work to optimize
through its system to continue to meet demand management of water resources to satisfy
even as it works to repair the asset? A combined multiple objectives, some of which may conflict.
40 percent of respondents are “definitely” or
Winter Haven is driving resilience in its
“probably” pursuing the S/V analysis approach,
solutions by developing optimization tools to
while 26 percent are considering it.
manage water across a spectrum of hydrologic
A supplemental approach also could conditions, from drought to flood and in
be a ”digital twin,” an integrated digital between. In addition, the “One Water” planning
representation of physical assets that provides approach in Winter Haven is evaluating the full
historical, current and predictive analysis in scope of benefits provided by nature-based
near real-time. By combining information solutions. Working to restore the natural
technology (IT) and operations technology hydrology of the watershed will provide benefits
(OT), users can simulate scenario options for water supply, flood control, water quality,
before actioning them in the real world, natural systems, recreation and even improved
helping enhance customer experience by quality of future development.
optimizing performance of existing assets.

2020 STRATEGIC DIRECTIONS: WATER REPORT | CLIMATE CHANGE | 28

The topic of climate change may be highly A B O U T T H E AU T H O R S
politicized, but the effects are being felt today,
and without action, we expect to feel them Jim Schlaman is the director of planning and water
even more tomorrow. The world is also now resources for Black & Veatch’s water business and serves
grappling with the impact of COVID-19, which on the One Water Council for the U.S. Water Alliance.
may affect how water utilities prioritize their Over the past 19 years, he has worked across the country
infrastructure improvement projects going on all types of planning and water resources projects.
forward. A sudden shift in environmental and including water supply and reuse/alternative water supply
climate change regulations would have a long- evaluations, integrated planning and water quality studies,
term impact on how utilities approach projects. and stormwater/flood control planning and design projects.

Jon Dinges is senior water resources planning leader for

Black & Veatch survey data shows that climate
Black & Veatch’s water business. With 25 years of experience
change is driving significant concern around
in civil and environmental engineering, Dinges focuses on
resilience, and it is playing an increasingly
water resource management. He is skilled in water supply
important role when it comes to water supply
assessment and integrated planning, watershed assessment
planning. Innovative new planning and and restoration, and resource management planning,
resilience approaches such as integrated water among other critical areas.
resources planning methodologies can offer
a path forward for utilities, helping them to
develop new water supplies while benefiting
rate payers, citizens and stakeholders.

No matter which route they choose, utilities

must act now to embrace and address climate
change as they work to mitigate an increasingly
uncertain future. 

2020 STRATEGIC DIRECTIONS: WATER REPORT | CLIMATE CHANGE | 29

Addressing Resilience
and the Scramble for Water
By Karen Burgi, Jo Ann Jackson, Kevin Laptos, Ed Rectenwald and Jim Schlaman

A
ccess to clean water remains a critical aquifers used for groundwater supply,
component of any community, but and other conditions that will challenge
unfortunately, water stresses are a water systems.
reality for far too many, particularly those in
This shift helped drive utilities and
the arid West and Southwest. Concerns over
municipalities in water-stressed areas to get
funding, aging infrastructure and resilience are
more aggressive on reuse, collection and
not new, echoing the worries and priorities of
storage. But now the world is grappling with
years past.
an unprecedented situation — a global health
The reach and scope of resilience continues crisis brought about by COVID-19, which is
to evolve. The Global Water Forum defines driving new concerns around health and
infrastructure resilience as “the ability to safety planning, workforce continuity planning,
reduce the magnitude and/or duration of financial and capital reprioritization, as well
disruptive events” and measures effectiveness as reassessing vulnerability planning. Aside
by the ability to recover rapidly from such an from concerns about sourcing and securing
event. But while the basic concept of resilience appropriate water supplies, does resilience in
remains the same, global events continue to the time of COVID-19 mean that utilities should
shift and evolve, introducing newer and now incorporate pandemics into their resilience
bigger threats. planning?

Twenty years ago, the events of 9/11 caused Black & Veatch’s 2020 Strategic Directions:
regulators to focus on bioterrorism and Water Report survey of qualified utility,
cybersecurity. Then the focus shifted to climate municipal, commercial and community
change, which science suggests is driving a stakeholders looks at how today’s water
variety of conditions including: more frequent industry has been addressing resilience to
arid conditions, drought cycles, higher rainfall date and introduces new insight into how
intensity events, sea-level rise and lateral or the industry can move forward.
upward migration of higher salinity water into

2020 STRATEGIC DIRECTIONS: WATER REPORT | SCRAMBLE FOR WATER | 30

Supply Remains Top Concern

Survey data shows that water utilities consider but it does reinforce that utilities desire to
their water treatment plants to be the most diversify their supplies for greater resilience
resilient of their three main systems — and are more broadly looking for sustainable
treatment, distribution and supply. Nearly groundwater sources to do so (Figure 17).
two-thirds (62 percent) of respondents see
Meanwhile, 39 percent are looking to reuse,
their treatment systems as “highly or
which is more common in water-stressed areas
moderately resilient” to adverse events
— in fact, Arizona, California, Florida and Texas
(Figure 16).
are all leading the charge in treating wastewater
When it comes to distribution, respondents for beneficial uses, including looking increasingly
were slightly less certain, with 56 percent at potable reuse opportunities to address water
considering these systems resilient and supply resilience needs. A small number (12
44 percent considering them susceptible. percent) of respondents said they are seeking
Responses around supply were even closer, new desalination/brackish sources, a solution
with 53 percent reporting confidence and that is more common in coastal states that
47 percent considering this the weakest link, are dealing with saltwater intrusion into their
and “highly or moderately susceptible” to groundwater supplies.
adverse events.
In the arid West and Southwest, the simpler
When it comes to bolstering water supply, solutions for supply have been exhausted,
43 percent of respondents are seeking requiring utilities to reach deeper into their
groundwater resources and 27 percent are pockets to consider more substantial projects
seeking new surface water sources. These such as water reuse and desalination/
answers are most likely regional in nature, brackish solutions.

Figure 16
Thinking about resilience in your community’s water system, which components are most and
least susceptible to adverse events? (Select one for each row)
Source: Black & Veatch

Moderately Moderately
Highly susceptible susceptible resilient Highly resilient

Stormwater 16.9% 38.5% 32.3% 12.3%

Supply 19.1% 28.1% 34.8% 18.0%

Distribution 12.4% 31.5% 37.1% 19.1%

Treatment 12.2% 25.6% 41.1% 21.1%

2020 STRATEGIC DIRECTIONS: WATER REPORT | SCRAMBLE FOR WATER | 31

Figure 17
What steps are you taking to bolster water supply resilience? (Select all that apply)
Source: Black & Veatch

42.9 % 38.8%
Adding reuse
12.2%
Seeking new
20.4%
We are not taking
Seeking new capabilities desalination/ any such steps
groundwater brackish sources
sources

26.5%
Seeking new surface 10.2%
water sources Other

Embracing New Models of Collaboration

A trend across the industry — no matter

where the utility is located — is to become
more proactive when it comes to sourcing and
building resilient water supplies, and to invest
in a future need that has not been entirely
realized yet. Many of these efforts are regional
A trend across the industry —
in nature, and organizations are coming
no matter where the utility is located together and embracing collaboration as they
— is to become more proactive when work to address water scarcity, thereby sharing
it comes to sourcing and building the proverbial burden. For example, the Water,
resilient water supplies, and to Infrastructure and Supply Efficiency (WISE)
invest in a future need that has program in central Colorado demonstrates
the strides that can be made when different
not been quite realized yet.
communities partner together to solve their
problems.

WISE is a regional partnership that provides

new supply by combining unused capacities
from Aurora Water’s Prairie Waters Project
and Denver Water. When Denver and Aurora
have excess supply, 10 entities in nearby
Douglas County can buy the extra water.
WISE involves a total of 12 entities working
together to supply customers with water while
minimizing the expenses required to develop
new infrastructure and water rights. Similar
programs also are happening in southern
Colorado, Arizona and California.

2020 STRATEGIC DIRECTIONS: WATER REPORT | SCRAMBLE FOR WATER | 32

 Responding to Mandated Assessments

After 9/11, the Public Health Security and Bioterrorism

Preparedness and Response Act of 2002 (Bioterrorism Act
of 2002) was passed, requiring some 8,400 community water
Figure 18 systems to assess vulnerabilities and prepare emergency
response plans. Originally, the act was designed to address
Have you conducted
vulnerabilities due to bioterrorism, but today, utilities recognize
vulnerability assessments
that vulnerability is more than bioterrorism or cybersecurity
since those required by the
and must address internal threats and climate change.
Bioterrorism Act of 2002?
(Select all that apply) Survey data shows that water and wastewater utilities are
Source: Black & Veatch
actively responding to the mandates by conducting resilience
and vulnerability assessments, with a combined 54 percent

38.0%
Yes, currently
having done so within the past year, and 22 percent having done
so within the last two to three years (Figure 18). This shows that
utilities are taking threats seriously and addressing vulnerabilities
conducting
to become more resilient.

Another piece of legislation — America’s Water Infrastructure Act

16.0 %
Yes, in the past year
(AWIA), signed into law in October 2018 — requires all community
water systems and utilities that serve more than 3,300 people to
conduct risk and resilience assessments and develop or update
their emergency response plans. AWIA and market conditions are
22.0%
Yes, in the past 2-3 years
driving utilities to assess and implement strategies that mitigate
vulnerabilities

Survey results show that the AWIA mandate has led to at least

12.0%
Yes, 4+ years ago
one-third of survey respondents to make system changes to
address identified vulnerabilities — 22 percent reported that
they had to expedite plans, and 8 percent had to make even
more substantial changes, as they were not planning to conduct

16.0%
No
vulnerability assessments before AWIA. A combined half said the
mandate had “little to no” or “minimal” impact on their plans,
as they had already planned to conduct assessments, while 20
percent anticipated no impact at all.

2020 STRATEGIC DIRECTIONS: WATER REPORT | SCRAMBLE FOR WATER | 33

Addressing Public Health

When it comes to the status of system

improvements projects, three-quarters
of survey respondents said they have either
completed or are working on system
improvement recommendations from previous
vulnerability assessments. An additional 17 Results show that
percent are planning and scoping projects utilities prioritize
now, while 8 percent said they have no projects that have the
projects underway. most significant impact
Looking at combined No. 1 and No. 2 rankings, on public health.
which denote the highest priority as assigned by
the question, results show that utilities prioritize
projects that have the most significant impact
on public health — water/quality, condition/
replacement and operations/efficiency ranked
most important, followed by capacity/growth
and then resilience (Figure 19).

Figure 19
How 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
1 5
Highest 2 3 4 Lowest
Priority Priority

Water quality
40.7% 14.3% 19.8% 15.4% 9.9%

Condition/
replacement 30.8% 18.7% 20.9% 18.7% 11.0%

Operations/
efficiency 3.3% 36.3% 24.2% 20.9% 15.4%

Capacity/growth 16.5% 15.4% 18.7% 17.6% 31.9%

Resilience 8.8% 15.4% 16.5% 27 .5% 31.9%

2020 STRATEGIC DIRECTIONS: WATER REPORT | SCRAMBLE FOR WATER | 34

Condition/replacement remains a top concern
as aging infrastructure starts to require more
maintenance and upkeep, spurring increased
involvement in rehab and replacement
programs. Operations/efficiency was the third-
highest priority, as that keeps systems running
— a particularly important concern during this
time of COVID-19 disruption. Capacity/growth
Condition/replacement
was more evenly split. remains a top concern
as aging infrastructure
Of the five areas, resilience ranked last, which
starts to require more
was unsurprising, given that the first four
maintenance and upkeep.
areas all are driven by regulatory requirements
and are fundamental to the mission of a
utility. Unlike water quality and public health,
resilience is not mandated besides the studies
recently required by AWIA. Although critical
and necessary, resilience shores up the other
systems, but as a result, often ends up taking
a backseat to these higher priorities and may
be perceived as an added expense to those
associated with basic operations.

The data shown in Figure 20 — where 27 percent

said they have no formal process to prioritize
projects but defer to those that are required
for health and safety reasons and regulatory
requirements — validates this conclusion.

Figure 20
Do you have a process for including and prioritizing resilience projects in your capital
improvement program? (Select one)
Source: Black & Veatch

59.5 % 27.0%
We have no formal pro-
3.4%
Addressing resilience
10.1%
No, no we have
Yes, these projects cess, but projects that needs would be great, no process for
are evaluated along are required for health but we have other including/prioritizing
with other capital & safety reasons and needs that are of resilience projects
projects using a formal regulatory requirements greater importance
prioritization process take top priority

2020 STRATEGIC DIRECTIONS: WATER REPORT | SCRAMBLE FOR WATER | 35

The reach and scope of resilience continues to A B O U T T H E AU T H O R S
evolve as communities pursue access to clean
and sustainable water, particularly for those Karen Burgi is a regional planning lead for Black & Veatch’s
in water-stressed areas. Concerns over aging water business. Over the past 27 years, she has worked with
infrastructure, funding and resilience are deeply communities throughout the central and western United
familiar, but today we see new threats, such as States on water distribution and wastewater collection
COVID-19, that are challenging water systems in system master planning, helping communities evaluate
new ways.  trends, prepare for growth, prioritize needs and consider
long-term sustainability and reliability.

Jo Ann Jackson leads Black & Veatch’s 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 United
States. Her experience includes six years in the public sector,
where she helped implement Florida’s first direct potable
reuse pilot and served as a utility representative on Florida’s
Potable Reuse Commission.

Kevin Laptos is the national distribution and collection

system planning practice leader for Black & Veatch’s water
business. For 30 years, he has specialized in planning and
modeling of water distribution and wastewater collection
systems, including rehabilitation, resilience, design and
operations studies.

Ed Rectenwald is a hydrogeology national practice lead

for Black & Veatch’s water business. With 24 years 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 director of planning and water

resources for Black & Veatch’s water business and serves on
the One Water Council for the U.S. Water Alliance. Over 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 supply evaluations,
integrated planning and water quality studies, and
stormwater/flood control planning and design projects.

2020 STRATEGIC DIRECTIONS: WATER REPORT | SCRAMBLE FOR WATER | 36

Water Resilience: When Too Much
of a Good Thing Isn’t Great
By Laura Adams, Mark Fountain, Prabha Kumar, Ed Rectenwald and Andrew Smith

D
uring the spring of 2019, record-breaking That searing experience, coupled with increased
floods inundated the Midwest, causing recognition of the vulnerability of low-lying
some of the biggest inland waterways — coastal areas to seawater surges, has spurred
the Illinois, Missouri, Arkansas and Mississippi concerns about the resilience of our nation’s
rivers — to overflow their banks, disrupting water infrastructure, according to industry
lives and submerging farms, businesses and stakeholders surveyed for Black & Veatch’s
homes across more than a dozen states, from 2020 Strategic Directions: Water Report.
North Dakota and Minnesota to Mississippi and
Louisiana. In at least 400 counties across 11
states, the floods overwhelmed the water and
wastewater treatment facilities.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RESILIENCE | 37

Building Resilience

In the survey of nearly

300 respondents, natural or
man-made disasters (nearly
84 percent) and catastrophic
failure of infrastructure Figure 21
(56 percent) were the two What are your most significant resilience concerns?
most significant resilience (Select up to three).
concerns they cited (Figure Source: Black & Veatch

21). An interesting finding

also is that respondents
appear to rank the impacts of 83.5 % 38.1%
Extended drought/
12.4%
Terrorist
climate change much lower, Natural or man- supply restrictions attack
made disaster
and they do not necessarily
correlate changes in climate
34.0% 5.2%
55.7 %
with natural or man-made
disasters. Cyber attack Other
Infrastructure
Concurrent with resilience
catastrophic
concerns, respondents
indicated that all aspects
failure
30.9%
Impacts from
of their systems — from
climate change
stormwater to water supply
and water distribution,
Figure 22
and water and wastewater
treatment systems — are Thinking about resilience in your community’s water system,
susceptible to adverse events. which components are most and least susceptible to adverse
More than half of respondents events? (Select one for each row)
— 55 percent — reported Source: Black & Veatch

their stormwater systems Highly Moderately Moderately Highly

susceptible susceptible resilient resilient
to be highly or moderately
susceptible to adverse events.
In contrast, more than Stormwater 16.9% 38.5% 32.3% 12.3%
60 percent of respondents
considered their treatment
systems to be highly Supply 19.1% 28.1% 34.8% 18.0%
or moderately resilient
(Figure 22).
Distribution 12.4% 31.5% 37.1% 19.1%

Treatment 12.2% 25.6% 41.1% 21.1%

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RESILIENCE | 38

Utility leaders express significant concerns over cycle, often watershed-based, and recognizing
resilience, and they understand which of their the interconnections between various uses —
systems are most susceptible. Yet the planning both human and ecological.
and execution of initiatives doesn’t align with
Utilities are embracing programmatic ways
these perspectives. With respect to the timing
to be more resilient through features such as
of executing infrastructure improvements, the
integrated planning and community-based
respondents indicate that execution is primarily
partnerships. The survey indicates that nearly
driven by an impending failure, a regulatory
half of the respondents — 49 percent — are
driver and/or customer demand — in other
“actively trying” to evolve toward such an
words, largely reactive rather than proactive
approach. More than one in five said they
resilience building measures (Figure 23).
already have a programmatic approach that
However, the tide of reactive management may enables a holistic planning and effective
be changing as a more proactive programmatic leveraging of resources. While 20 percent said
approach to planning and building resilience they would like to follow this approach but
is gaining ground consistent with the concept haven’t prioritized it, 9 percent declared that
of “One Water.” This concept means water they do not yet see a value in a programmatic
planning with a view of the complete water approach (Figure 24).

Figure 23
Once a need for infrastructure improvement has been identified, how do you know when to take
the next step and execute the project? Rank the following from 1 (most impact) to 5 (least impact)
Source: Black & Veatch
1 5
Most 2 3 4 Least
Impact Impact

When we suspect something

is about to break/fail 60.0% 24.7% 10.6% 4.7% 0.0%

When regulatory bodies

demand action 21.2% 44.7% 24.7% 7.1% 2.4%

When public opinion

demands it 5.9% 18.8% 43.5% 24.7% 7.1%

When we see other

communities taking action 0.0% 8.2% 17.6% 62.4% 11.8%

Other 12.9% 3.5% 3.5% 1.2% 78.8%

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RESILIENCE | 39

Perhaps not surprisingly, the survey shows, utilities serving populations of more
than 500,000 have been more proactive in adopting programmatic approaches
to resilience planning.

Practitioners at utilities serving more than 500,000 customers were more than
twice as likely as smaller utilities (32 percent vs. 14 percent) to have already
implemented a programmatic approach to resilience. Although these larger utilities
are evolving toward a defined approach, mid-size and smaller utilities — those that
serve fewer than 500,000 customers — tended to respond that either they didn’t
see the value of a programmatic approach to resilience planning, or that while
they would like to implement such an approach, they don’t consider it a priority
(Figure 25).

Figure 24 Figure 25
To what degree is your organization moving To what degree is your organization moving
toward a programmatic approach to toward a programmatic approach to
resilience planning (e.g. EPA integrated resilience planning (e.g. EPA integrated
planning, community-based partnerships, planning, community-based partnerships,
etc.)? (Select one) etc.)? (Select one by population served)
Source: Black & Veatch Source: Black & Veatch

48.8 %
Less than 500,000
500,000 or more

We are actively trying We already have a

to evolve toward a
programmatic approach
programmatic approach
to resilience
13.7 % 32.4%

We are actively trying

22.1
We already have
%
19.8 %
We would like to
to evolve toward a
programmatic approach
49.0% 50.0%
a programmatic but it’s not a priority
approach for us
We would like to but
to resilience
it’s not a priority for us 23.5% 14.7 %

9.3% We do not see the value in

We do not see
the value in a
a programmatic approach
to resilience
13.7 % 2.9%
programmatic
approach to
resilience

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RESILIENCE | 40

Organizational Capacity

In the United States, there are tens of

thousands of water and wastewater systems,
and similarly numerous municipalities
managing stormwater programs. Such a highly
fragmented system constrains organizational
capacity and makes proactive resilience
planning, execution of initiatives and adequate
funding an ongoing challenge, especially for Figure 26
many small and mid-size utilities. Would you be open to cooperative
agreements with similar organizations
Digital transformation and multi-agency
to collaborate on digital information
collaborations are valuable tools that utilities
processes, plans and standards?
can leverage to enhance organization capacity
(Select one)
and build resilience.
Source: Black & Veatch

Two-thirds of respondents said they would

definitely or probably be open to cooperative
agreements with peer organizations to
collaborate on digital information processes,
plans and standards. About 30 percent were
ambivalent, responding they “might or might
48.5%
Probably yes
not” be interested in such a collaboration
(Figure 26).

In our experience, available resources and 29.5%

organizational culture are two chief reasons Might or
might not
for the gap between respondents’ openness to
multi-agency resilience planning and the actual
implementation of collaborative initiatives to 17.6%
mitigate vulnerabilities of their systems. It’s a Definitely yes
troubling disconnect, but not one limited to
the water industry. 4.4%
Probably not
Despite the broad openness to collaboration
on digital transformation, the realities of
organizational culture and “who pays for
what?” too often impede making multi-agency
agreements a reality. Barriers such as limited
trust, diverse demographics, local politics and
attitudes on ownership and control, along with
the ever-present pressure on funding, impede
effective collaboration, leaving communities
even more exposed to the next disaster or
infrastructure failure.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RESILIENCE | 41

 Agency and utility leaders must engage
during periods of non-emergency to prepare
and upgrade with efforts that benefit their
customers and communities.
Figure 27
How would you rate your
organizational capacity to
plan, design, deliver and
maintain stormwater
Trust-building, due diligence in working out the details of
management services
collaborative approaches and defining other strategies for
in your community?
multi-agency agreements all are actions critical to enhancing
(Select one)
Source: Black & Veatch
organization capacity and developing resilience to tackle adverse
events. The time to engage in these actions is before the river

43.7 %
starts rising — or ahead of the time a major distribution system
failure occurs. Agency and utility leaders must engage during
Adequate capacity periods of non-emergency to prepare and upgrade with efforts
that benefit their customers and communities.

33.3 % Strategically investing in multi-agency resilience planning will be

repaid several times over the next time a city or county avoids
Some capacity disruption by natural or man-made disasters or a catastrophic
failure of infrastructure.

16.7 %
Limited capacity
When asked to rate their organizational capacity to deliver
stormwater management services, more than four out of 10
respondents — 44 percent — said they had “adequate” capacity
to plan, design, deliver and maintain such offerings to their

6.3%
Very limited
communities. An additional one-third said they had “some”
organizational capacity to address the range of responsibilities
from planning and design to delivery of services (Figure 27).
capacity
Today, there are just over 1,700 user-fee-funded stormwater
utilities nationwide. As the 2018 Black & Veatch Stormwater
0.0%
Absolutely
Report indicated, even those municipalities that have established
a dedicated stormwater user-fee-funding mechanism indicated
no capacity inadequacy of funding. A combination of factors that include
lack of political will; lack of robust stakeholder education on
stormwater issues and risks of inaction; inadequate enabling
legislation in some states; and the risk of legal challenges
impede a broader adoption of user-fee-funding for stormwater
management.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RESILIENCE | 42

Stakeholder Engagement

At the core, the services that public utilities

provide — whether it’s water, wastewater or
stormwater — are customer-centric, meaning
initiatives to build infrastructure, operations,
financial resilience and organizational capacity
can succeed only if there is buy-in from
customers and support from decision-makers.
Figure 28
Utilities are deploying stakeholder education How much stakeholder education and
and engagement in their resilience planning in engagement are you including in your
hopes of proactively staying ahead of frequent resilience planning? (Select all that apply)
and more intense wet weather events. Yet, the Source: Black & Veatch

question lingers whether they’re doing enough

outreach and garnering engagement — and
40.2%
59.8%
with the right people. The survey indicates
that six in 10 respondents were engaging Engaging with
the region
with decision-makers, who likely would be
Engaging with
responsible for green-lighting the development decision makers
of a resilience plan. Only half of respondents
even indicated that they were engaging with 34.5%
their communities. Fewer are working at the
city and regional level (Figure 28). 50.6
Engaging with
% Engaging with
the city

Utility leaders typically demonstrate a higher

8.0%
the community
level of stakeholder engagement when there is
a significant change such as a stormwater user None of
fee or a customer assistance program. Similarly, the above
engaging in holistic resilience planning and
successful execution of initiatives, robust and
consistent stakeholder engagement is critical.
There is an opportunity to engage local business
groups, neighborhood associations, community
organizations, regional partners and other
diverse stakeholders to ensure that plans are
holistic and provide maximum benefit to the
community.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RESILIENCE | 43

Through the formal recognition AB O U T T HE AU T H O R S
of climate change and the
mounting worries it evokes, Laura Adams is Black & Veatch’s Ed Rectenwald is a hydrogeology
complacent or slow responding green infrastructure practice lead. national practice lead for Black &
water utilities need to identify A 14-year veteran of the company, Veatch’s water business. With 24
new mechanisms to bolster Adams leads a multi-disciplinary years of technical and management
their systems’ resilience. team with deep experience in experience, he successfully has
Such utilities should step program development and planning, managed projects and teams across
off the sidelines, investigate design and construction, and the the globe related to design, permitting,
proactive strategies and seek maintenance of green infrastructure. construction, expansion and operation
The team is creating innovative for wellfields, Class V aquifer storage
to implement thoughtful
solutions to revitalize communities, and recovery (ASR), aquifer recharge
investments to mitigate the
restore natural resources, and and Class I injection well systems.
potential havoc of future
address climate resilience.
extreme weather events Andrew Smith is the national
and potential environmental Mark Fountain is a Black & Veatch watershed, stormwater and flood
shocks. Driven collaboration water resources practice leader. He management practice lead for Black
may hold the key, recognizing provides the expertise and leadership & Veatch’s water business in the
the significant influence of to guide diverse project teams as they Americas. Based in Kansas City, Smith
stakeholders and their role engage with technical leadership, leads the development and delivery
directors and marketing managers of a range of solutions ranging
in defining a community’s
at client companies. A registered civil from watershed management and
vision toward achieving
engineer in New Mexico, Arizona and green infrastructure to complex
tomorrow’s sustainable
Nevada, Fountain has more than 15 hydraulic modeling and design. He
water infrastructure. 
years of professional experience in is a recognized leader in the fields of
civil engineering strategic program development and
asset management for stormwater.
Prabha Kumar is a director in Black
& Veatch’s Management Consulting
Group and assists utilities nationwide
with water, sewer and stormwater
financial consulting and business
advisory services. She also is a
national practice lead for stormwater
utility consulting and specializes
in stormwater utility feasibility
studies, utility development and
implementation. With her expertise
in stakeholder facilitation, she helps
utilities with both internal stakeholder
education and engagement and
external public education and
outreach.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RESILIENCE | 44

PFAS, Lead, Nitrate/Nitrite:
Key Concerns for Drinking
Water Utilities
By Nicholas Burns, Dustin Mobley, Christopher Tadanier and Emily Tummons

U
tilities entrusted to supply sustainable, Man-made chemicals — notably decades-old
clean drinking water have their hands full per- and polyfluoroalkyl substances (PFAS)
eliminating contaminants of emerging known as “forever chemicals” because they
concern and ensuring that reactions in the don’t easily biodegrade — have joined nitrates/
distribution system do not produce separate nitrites and lead as the water contaminants
contamination issues. of greatest concern to drinking water
stakeholders surveyed. The results represent
Simple physical and chemical treatment a combination of stakeholder concern for
methods that include sedimentation, filtration removing these contaminants at drinking water
and disinfection have long been the standard treatment facilities as well as the health and
in drinking water purification. As the Black environmental concerns from contaminants
& Veatch’s 2020 Strategic Directions: Water found in potable water or water sources. Almost
Report survey shows, dealing with certain 50 percent of stakeholders cited PFAS as a chief
contaminants — some at the behest of evolving contaminant of concern, followed by nitrate and
regulations — are proving increasingly challenging. nitrite at 34 percent and lead at 26 percent, with
other contaminants all below 20 percent. (Figure 29).

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTAMINANT REMOVAL | 45

Figure 29 PFAS: One Big Family Tree of Chemicals
Which of the following contaminants are of
A large family of more than 5,000 man-made
chief concern? (Select up to three)
Source: Black & Veatch
chemicals, PFAS have been used for decades
in industrial and consumer products. They are
Drinking Water
ubiquitous, found in nearly every home and
business – in items such as non-stick cookware,
PFAS 48.6% firefighting foams, grease-resistant takeout
food packaging, waterproof outerwear, stain-
Nitrate-Nitrite 34.3% resistant carpeting and personal care products.

Two specific PFAS chemicals —

Lead 25.7 % perfluorooctanoic acid (PFOA) and
perfluorooctane sulfonate (PFOS) — are of
Pharmaceuticals 20.0% particular concern. Use of those chemicals
was voluntarily discontinued nearly two
Other (NET) 20.0% decades ago, but true to their moniker as
“forever chemicals” they persist and are
Sediment 11.4% still found in surface and groundwater.

Federal and state regulators took steps in 2019

Arsenic 8.6% to tighten drinking water regulation of PFAS,
with the U.S. Environmental Protection Agency
Chromium 8.6% (EPA) expected to amplify oversight this year
beyond the EPA’s current non-enforceable
Legionella 8.6% health advisory (HA) level of 70 parts per trillion
(ppt) for the sum of PFOA and PFOS. Some two
Pesticides 8.6% dozen states have policies that include HAs
about PFAS in drinking water ranging from
Ammonia 5.7 % 10 ppt to 40 ppt for individual PFOA or PFOS
compounds or a sum of PFAS compounds as
Copper 5.7 % low as 20 ppt (i.e., Vermont and Massachusetts).
It seems likely that some of these states will
Nitrogen 5.7 % move forward with tougher regulations on
those substances in 2020 or shortly thereafter,
which is what happened with New Jersey in
Radium 5.7 %
June 2020, when it established maximum
contaminant levels (MCLs) of 13 ppt for PFOS
Salts 5.7 % and 14 ppt for PFOA, which are some of the
lowest in the country.
Chloramine 2.9%

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTAMINANT REMOVAL | 46

PFAS Detection, Monitoring Expected to Climb

While PFAS has drawn increasing scrutiny, Nearly half of respondents indicated they
it is not surprising to see that nitrite/ monitor and have detected PFAS, which was
nitrate, metals and biologicals are the most the highest value for contaminants that are
commonly monitored and detected groups of not currently regulated (Figure 30). One-third of
contaminants by drinking water facilities, since respondents said they are monitoring for PFAS
these groups include regulated contaminants but haven’t detected any. These monitoring
like lead, copper, iron, heavy metals, coliforms, and detection values are expected to increase
viruses and nitrification byproducts of nitrite as PFAS were included in the EPA’s unregulated
and nitrate. contaminant monitoring rule (UCMR) 5.

Figure 30
Do you routinely monitor for the following contaminants? If so, have you detected them?
(Select one per row)
Source: Black & Veatch
Monitor and Monitor but Do not
have detected have not detected monitor

Nitrate-Nitrite 65.7 % 28.6% 5.7 %

Metals 55.9% 35.3% 8.8%

PFAS 46.9% 31.3% 21.9%

Biologicals 37.5% 53.1% 9.4%

Pesticides 27.3% 51.5% 21.2%

Pharmaceuticals 12.9% 25.8% 61.3%

Micro-plastics 10.3% 17.2% 72.4%

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTAMINANT REMOVAL | 47

 Regulatory Questions Make PFAS Efforts Murky

When it comes to removing PFAS from water, regulatory

uncertainty abounds. Without clarity on future regulatory limits,
it is difficult for utilities to confidently set treatment goals or
Figure 31 identify the appropriate treatment technology. Sixty percent of
respondents pointed to that lack of clarity as their biggest limiting
What’s the greatest
factor for their utility’s quest to deal with PFAS in water supplies.
limiting factor for your
Lacking health science guidance and the cost and recovery of
utility addressing PFAS
water treatment options are a distant second and third, each
in your water supplies?
garnering less than 20 percent (Figure 31).
(Select one)
Source: Black & Veatch
Ultimately, drinking water utilities are faced with producing a
finished product that meets regulatory standards, while also

57.1
Regulatory uncertainty
% responsibly disposing of waste streams. It’s clear that emergent
PFAS chemicals in water sources are posing unique challenges
for water utilities as they often necessitate advanced treatment
technologies and hinder traditional approaches to handling waste

17.2%
Lack of health
streams. Scientists and regulators remain in an early stage of
discerning the effects of PFAS on human health and developing
technologies to remove them from water. But as the science
science guidance
progresses, PFAS regulatory activities are expected to accelerate
increasing pressure on utilities to remove them.

14.3%
Budgetary and/
or rate payer
considerations

11.4%
Other

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTAMINANT REMOVAL | 48

Confidence Plentiful that Contaminants will be Removed

As for the confidence level of their utility’s ability water, but these facilities are less effective at
to meet current and still-evolving contaminant removing certain chemicals. For that reason,
levels established by state and federal agencies, respondents indicated similar concern over
responses were varied. One-third voiced the presence of chemicals in their water
extreme confidence in their adherence to source as in the treated water.
dynamic standards for various contaminants,
Drinking water stakeholders cited more
slightly more than those who considered
concern over biological contaminants in the
themselves very or moderately confident. No
treated water than in the source water, which
respondent reported lacking confidence in their
could be an indication of the recognition
utility’s compliance (Figure 32).
that biological contaminants like coliforms
The unspoken caveat behind those responses and viruses are regularly present in many
could come down to money, as is often the case upstream water sources and confidence in
for a utility. Compliance with certain standards treatment systems abilities to remove then
could be technologically possible, but at what under normal operation. The level of concern
cost? for biological contaminants downstream in a
drinking water system encompasses both the
Traditional drinking water treatment plants recognition of the possibilities of treatment
are very effective at removing biological and failures and the opportunity for regrowth in
physical contaminants such as sediment the distribution system.
and organic materials from the influent

Figure 32
How confident are you in your utility’s ability
to meet current and future contaminant level
requirements set forth by state and federal
agencies?
Source: Black & Veatch

31.6% Very confident

34.2%
Extremely
confident
31.6% Moderately confident

2.6%
Slightly
confident

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTAMINANT REMOVAL | 49

If sudden changes are
observed in the loading rate
of physical contaminants,
like sediment and plastics,
it can cause upsets in utility
operations, resulting in
excess solids production or
more frequent backwashing
of treatment processes to
meet treatment goals. This Figure 33
explains the higher concern What kinds of contaminants is your organization most concerned
of physical contaminants in about in your community’s water? (Select all that apply)
the source water rather than Source: Black & Veatch

the treated water.

Upstream Downstream
(pre-treatment) (post-treatment)

28.6% 45.7 %
Biological

45.7 % 40.0%
Chemical

45.7 % 25.7 %
Physical

8.6% 5.7 %
Other

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTAMINANT REMOVAL | 50

 Lead Remains a Priority

With nearly 26% of drinking water respondents

listing lead as a contaminant of concern, the
third highest result (Figure 29), it is clear that it
remains a priority for drinking water providers.

In 2019, the EPA proposed revisions to the

Lead and Copper Rule that would increase
monitoring requirements and create a lead
Figure 34 trigger level that is lower than the current action
Are there unknown pipe materials in your level based on the presence of lead in drinking
distribution system? (Select one) water at the tap. These changes primarily
Source: Black & Veatch impact systems that have remaining distribution
piping and components containing lead, such as
lead service lines, lead solder and brass fixtures.

Removing lead service lines is mainly a

challenge in the Upper Midwest and East Coast,
where housing and infrastructure tends to be
52.6% older than the rest of the nation. Removing lead
No, not at all service lines across the United States could cost
more than $30 billion, and many of the service
lines cross onto private property and are only
partially owned by the drinking water utility.

When asked whether there were unknown

pipe materials in a drinking water utility’s
10.5% water distribution system, more than half
Yes, a moder-
ate amount
2.6% encouragingly responded “no, none at all”
Yes, many (Figure 34). The high level of “no” responses
service lines could be due to greater asset diligence following
34.3% of unknown lead release events in Washington, D.C., in 2004
Yes, some material and in Flint, Michigan, in 2015 and 2016. Those
adverse events could have forced water utility
managers to identify, with more specificity than
ever before, what materials were used for pipes,
valves and meters in their distribution systems.

Still, more than 40 percent of respondents

answered some variation of “yes” to this
question, possibly indicating that detailed
asset inventories are under way or will be
conducted when required by regulations.

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTAMINANT REMOVAL | 51

Overall, the contaminants our drinking A B O U T T H E AU T H O R S
water facilities are tasked to remove is an
everchanging list with ongoing adjustments Nick Burns is the director of water treatment technologies
to regulated levels. These facilities are at Black & Veatch. He has 19 years of experience with
designed with multiple levels of treatment advanced water and reuse treatment technologies, and
using a combination of chemical, physical and has worked in Australia and the Mideast, with project
sometimes biological processes to produce experience throughout the United States. He leads a team
finished water that meets regulatory standards. of drinking water process engineers solving treatment
issues across North America.
The challenge facing regulators and utilities,
especially when considering PFAS, is agreeing Dustin Mobley is the drinking water PFAS leader at
Black & Veatch. He has more than a decade of water
to a required target treatment level that is both
process experience in the evaluation and design of water
appropriate and achievable. Looking at the
and wastewater treatment processes for municipal water
survey results in Black & Veatch’s 2020 Strategic
treatment clients. His responsibilities have included
Directions: Water Report, the overall picture that
engineering studies, conceptual design, front-end
emerges is of an industry confident in its ability engineering design, detailed design, and procurement
to provide high quality drinking water meeting of water and wastewater equipment. Most recently, he
current and future water quality target.  has been involved in pilot testing and full-scale design of
activated carbon and ion exchange technologies for the
removal of PFAS from drinking water.

Christopher Tadanier is the West Region water process

leader within the Water Technology Group at Black &
Veatch. He specializes in source water quality evaluation,
water treatment process selection and design, and
environmental chemistry. He has performed dozens of
water quality and treatability evaluations related to a
variety of drinking water supply and treatment projects.

Emily Tummons is a drinking water process engineer and

lead and copper corrosion control leader. She has designed
and conducted water quality and corrosion studies for
potable water treatment systems involving desktop, bench-
scale and pipe-loop evaluations to optimize corrosion
control in the distribution system. She also has been
involved in process optimization studies and regulatory
reviews for municipal drinking water treatment facilities.

2020 STRATEGIC DIRECTIONS: WATER REPORT | CONTAMINANT REMOVAL | 52

Nutrient Management Drives
Wastewater Investment
By Scott Carr, Leon Downing, Patrick Dunlap and Andrew Shaw

T
he U.S. Environmental Protection Agency (EPA) describe excessive nutrients
(phosphorus and nitrogen) in our waters as one of America’s most pervasive,
costly and challenging problems. An overabundance of nutrients leads to
severe problems ranging from toxic algal blooms to complete eutrophication.
These problems negatively impact the quality of water used for consumption,
recreational waters and aquatic life.

A range of human activities including runoff from agriculture, stormwater,

wastewater treatment plant discharges and other nutrient sources into
waterbodies are often to blame. But, responses to Black & Veatch’s 2020 Strategic
Directions: Water Report survey — an annual survey of qualified utility, municipal,
commercial and community stakeholders — show that wastewater utilities are
actively working to improve effluent quality and meet regulatory requirements.

2020 STRATEGIC DIRECTIONS: WATER REPORT | NUTRIENT RECOVERY | 53

 When it comes to planning for future
permitting, the data shows that
wastewater utilities are planning to
act sooner than originally planned.

Growing Adoption

Nutrient regulation has been a “hot topic” for to 56 percent of respondents. Meanwhile,
the past 30 years. Historically, the issue was the number of utilities who are not currently
relegated to specific regions around the United permitted, and have no plans for future permits,
States, such as in the Great Lakes, Long Island dropped 10 percent to 19 percent in this year’s
Sound, Chesapeake Bay and Florida. But today, survey (Figure 35).
nutrient management affects more than two-
When it comes to planning for future
thirds of the country. Activity only continues
permitting, the data shows that wastewater
to grow, ramping up in the Midwest due to the
utilities are planning to act sooner than
drive to reduce hypoxia caused by the discharge
originally planned, with 16 percent shortening
of nutrients in the Mississippi River into the Gulf
their timelines expecting nutrient limits in their
of Mexico and in the West as California looks
permits within the next five years — double
at nutrient management in the San Francisco
the number of respondents from last year. And
Bay area.
9 percent are planning beyond the five-year
Survey data shows that the number of mark, down from 14 percent last year. More
wastewater utilities whose facilities are and more, nutrient removal of some kind is
permitted for phosphorus, total nitrogen, or becoming abundant in the United States.
both, has increased 6 percent over last year,

Figure 35
Are any of your facilities permitted for phosphorous, total nitrogen or both?
If not, are there future expectations for such permits? (Select one)
Source: Black & Veatch

19.1%
55.9% Not currently and no plans for future permits
28.8% last year
Yes, currently
permitted
50.0% last year 16.2%
Not currently, but planned for next 1-5 years
7.6% last year

8.8%
Not currently, but planned for beyond 5 years
13.6% last year

2020 STRATEGIC DIRECTIONS: WATER REPORT | NUTRIENT RECOVERY | 54

 Anaerobic Digestion

More wastewater utilities also are implementing

anaerobic digestion, with 62 percent of
respondents responding affirmatively,
The process long has versus 55 percent last year. There are several
drivers for this shift, including pressure on
been the mainstay of
landfills accepting unstabilized solids, as
medium to large utilities
well as regulatory and social pressures on
because of the benefits chemical stabilization and thermal conversion
of mass reduction, processes. Anaerobic digestion reduces the
energy recovery, and mass of biosolids and the odor potential, which
ability to use the contribute to greater flexibility with biosolids
product as a fertilizer management options. In addition, the process
generates biogas that can be recovered for
and soil amendment.
energy production. Anaerobic digestion also
is compatible with or necessary for other
advanced stabilization processes that will create
an even higher quality biosolids product.

The process has long been the mainstay of

medium to large utilities because of the benefits
of mass reduction, energy recovery, and the
ability to use the product as a fertilizer and soil
amendment. Numerous small utilities also have
benefited from incorporating the process. In
addition to the drivers previously noted, more
utilities now are looking at their digesters as
assets that can be exploited for revenue and
energy generation using co-digestion with high
strength wastes.

Utilities can receive revenues from waste

haulers in the form of tip fees and use these
organics to create additional biogas that can
be used for electric power production or as
a renewable fuel for powering vehicles. New
regulations at the state level limiting landfill
disposal of organics, such as the proposed
California Rule SB 1383, also are contributing
to the increased interest in using anaerobic
digesters to treat a broader range of organic
wastes. All these drivers have led utilities to
bring back into service mothballed digesters,
expand existing digestion capacities or replace
stressed processes with new digestion systems.

2020 STRATEGIC DIRECTIONS: WATER REPORT | NUTRIENT RECOVERY | 55

Nitrogen and Phosphorous

As the use of anaerobic digestion increases,

expect to see the use of sidestream treatment
rise. Survey data shows that wastewater utilities
are increasingly using sidestream treatment to
remove ammonia, with 27 percent of utilities
stating that they conduct sidestream treatment,
up from 20 percent in 2019. A combined 42
percent are either actively planning for or
considering integrating the technology
(Figure 36).

Dewatering of anaerobically digested biosolids Figure 36

results in a concentrated return flow that can
Do you conduct sidestream treatment to
be mitigated using sidestream treatment, which
remove ammonia or are you considering
can be a stable, cost-effective way to remove
such a process? (Select one)
ammonia, helping utilities adhere to ammonia
Source: Black & Veatch
and total nitrogen limits. Deammonification is
the most efficient way to remove ammonia-
nitrogen for many facilities.

30.8%
No, not currently and
not considering it
35.0% last year

26.9%
Not currently but
are starting to
26.9% consider it
22.5% last year
Yes, we currently
do sidestream
treatment to
remove ammonia
20.0% last year
15.4%
Not currently but
actively planning
for it in the future
22.5% last year

2020 STRATEGIC DIRECTIONS: WATER REPORT | NUTRIENT RECOVERY | 56

 Phosphorous recovery also is increasing. Today,
22 percent report performing phosphorous
recovery of some kind, up from 18 percent in
2019. A combined 44 percent either are actively
planning for or considering the technology
(Figure 37). This reflects a growing interest in
recovering phosphorous, and as a result, the
increasing adoption of proprietary technologies
such as struvite harvesting systems. The
number of responding wastewater utilities not
conducting phosphorous removal also dropped
5 percent to 34 percent today.

The top operational driver behind

phosphorous recovery is the need to reduce
struvite buildup in the anaerobic digestor and
on the pipes and equipment, helping to prevent
damage to equipment and reduction in system
capacity. Phosphorous removal also plays a
critical role in total nutrient management for
Figure 37 the beneficial use of biosolids. When looking
Do you recover phosphorous or are you at the beneficial use of biosolids in agriculture,
considering such a process? (Select one) the ratio of nitrogen to phosphorous is not
Source: Black & Veatch favorable and can result in the overapplication
of phosphorous. Removing the phosphorous
broadens the potential application of biosolids
in agricultural areas. Both technologies —

34.0% sidestream treatment to remove ammonia

and phosphorous recovery — will continue to
No, not currently and improve, mature and come of age, leading to
not considering it increased adoption.
38.5% last year

22.0%
Yes, we
currently
20.0%
Not currently,
recover
but are starting
phosphorous
to consider it
17.9% last year
25.6% last year

24.0%
Not currently but
actively planning
for it in the future
17.9% last year

2020 STRATEGIC DIRECTIONS: WATER REPORT | NUTRIENT RECOVERY | 57

 New Technologies Offer New Opportunity

Like others in the water utility space, wastewater utilities

increasingly are embracing advanced control, using sensors
and automation technology as they search for new solutions
in nutrient management. The survey found that 63 percent
of wastewater utilities either are using or planning to use
controls, sensors and/or automation to optimize nutrient
removal (Figure 38).

Like others in the This has not always been the case, with utilities previously
water utility space, hesitant to install online analyzers or sensors in their plants.
Back in 2002, a Water Environment Research Foundation (WERF)
wastewater utilities
study found that “ the dependability and accuracy of the primary
increasingly are sensors is still cited … as the single largest impediment to wide-
embracing advanced scale, successful implementation of automation. Participants …
control, using sensors confirmed that sensor accuracy and reliability continue to be a
and automation problem area.”
technology as they
Today, the technology has improved, the knowledge base has
search for new solutions grown and modern sensors are far more robust, allowing for
in nutrient management. comprehensive nutrient monitoring that continuously observes
and analyzes flows and nutrient data. As a result, utilities are
turning to technology as they pursue improved process stability,
better effluent quality, increased energy efficiency and improved
capacity. These technologies are even driving new approaches
such as the ABAC (ammonia-based air flow control) strategy, an
advanced air flow control strategy that has grown in popularity
over the last few years.

Figure 38
To what degree are you considering controls, sensors and/or
automation to optimize removal of nutrients? (Select one)
Source: Black & Veatch

28.8%
Under
consideration
36.5%
Considered and
implemented
26.9%
Considered, plan
to implement

7.8 %
Not yet
considered

2020 STRATEGIC DIRECTIONS: WATER REPORT | NUTRIENT RECOVERY | 58

Trends in Nutrient Removal

Nutrient removal will continue to advance as by Black & Veatch to develop design guidelines,
regulations tighten, encouraging heightened operational tools, and modeling best practices
focus on total nutrient management. Enabled for S2EPBR configurations.
by more sophisticated technology and advanced
There’s no doubt that wastewater utilities are
treatment processes, utilities can now exert a
actively working to advance nutrient recovery,
smarter, more targeted approach, backed by
improve effluent quality and meet tightening
better control and automation.
regulatory requirements, as demonstrated by
This approach also is offering new, synergistic the industry data collected in Black & Veatch’s
ways to reduce energy use — always a major survey.
cost driver in wastewater treatment — and
Enabled by new approaches, utilities are
increase energy recovery. For example, new
investigating advanced treatment options and
treatment methods that involve less aeration
more sophisticated technologies. Ultimately,
can remove more nutrients using less energy
this will allow them to exert a smarter, more
and less carbon. This enables improved
targeted approach, expanding nutrient removal
primary treatment to divert more carbon
and recovery across the United States. 
over to anaerobic digestors also in order to
create methane gas that can be used for
energy recovery. A B O U T T H E AU T H O R S

Another trend that will continue is the increased Scott Carr is a global practice and technology leader
use of biological phosphorous removal over for biosolids and residuals management within Black
older chemical removal processes. New & Veatch’s water business. He has focused his 35-year
approaches to enhanced biological phosphorus career on biosolids and residuals management,
removal (EBPR) are being explored and including processing and beneficial use of biosolids.
adopted, enabling biological phosphorous
Leon Downing is a principal process engineer and
removal on projects where it was not previously
innovation leader for Black & Veatch’s Water Technology
feasible. Sidestream enhanced biological
Group, where he provides technology leadership and client-
phosphorus removal (S2EBPR) is a different
focused support. A senior process engineer, Downing has
way of implementing biological phosphorous guided and assisted in major resource recovery projects
removal and offers two key advantages: across the United States, United Kingdom, Australia, and
The first is that S2EPBR makes phosphorus Denmark. He is an expert in wastewater treatment and
removal reliable for plants without enough resource recovery.
influent carbon — or influent carbon with the
right characteristics — to perform traditional Patrick Dunlap is a wastewater process engineer within
Black & Veatch’s water business, specializing in phosphorus
biological phosphorus removal. The second
removal, wastewater aeration systems, and advanced
advantage is that S2EBPR offers capital cost
process control. He has 10 years of experience on
savings in retrofits.
wastewater projects across all regions of the United

For example, a facility may have had capacity States and in the Asia-Pacific Region.

constraints where a retrofit for enhanced Andrew Shaw is a global practice and technology leader
phosphorous removal and the corresponding in sustainability and wastewater for Black & Veatch. He
process redesign would have been far has more than 25 years of experience in wastewater
too expensive. To remedy this, the S2EBPR treatment design projects in the United Kingdom, Australia,
process can repurpose other tanks on-site, Asia and North America. His expertise includes nutrient
mitigating the issue and allowing a capital removal, computer modeling, instrumentation, process
efficient upgrade. A current Water Research optimization and life cycle assessments.
Foundation project (Project 4975) is being led

2020 STRATEGIC DIRECTIONS: WATER REPORT | NUTRIENT RECOVERY | 59

 The Future is Bright
for Water Recycling
Strategies
By Zeynep Erdal, Jo Ann Jackson and Andrew Shaw

F
Figure 39
inding more water sources is no longer enough. The future
Do your sustainability goals rests in smart strategies that reuse what we’ve already got.
and metrics include water
reclamation and reuse? A survey of nearly 300 water industry stakeholders for
(Select one) Black & Veatch’s 2020 Strategic Directions: Water Report reveals
Source: Black & Veatch that utilities increasingly are adopting water reclamation and
recycling strategies to bolster their water resilience and reduce
effluent discharge in their overall water-management plan —
and provide local supply availability even in the time of global
pandemics such as COVID-19.

58.3% Faced with the specter of climate change and increasingly

extreme weather events, the survey’s findings reveal that an
Yes expanding portfolio of water reuse strategies as a sustainability
goal is becoming the norm, with nearly six in 10 respondents
saying water reclamation and reuse are part of their sustainability
goals and metrics (Figure 39).

This isn’t surprising. Water reclamation gives water utilities

more options in meeting the needs of growing populations in
41.7 % increasingly strained natural ecosystems.
No

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RECYCLING | 60

 Two-thirds of respondents indicated they are exploring water
reuse implementation options more today, as compared to five
years ago — a strong indicator of how water reuse is becoming
much more common. One-fifth of those said they are using reuse
solutions “much more” than five years ago (Figure 40).

When it comes to water resilience, adding water reuse

Figure 40 capabilities is the most widely used strategy that smaller utilities
How has reuse utilization are taking and ranks as the No. 2 strategy for utilities serving
changed from five years ago? populations of at least 500,000 (Figure 41).
(Select one)
Source: Black & Veatch It’s all reflective of approaching water management via the
“circular economy” theory being adopted by businesses and

65.4%
institutions of all types. Two-thirds of survey respondents
indicated they are familiar with core principles of the circular
economy, including designing for the future, incorporating
More used today
technology, collaborating to create joint value and using waste
as a resource. Other tenets may involve preserving and extending

30.8%
About the same
what’s already there, prioritizing regenerative resources and
rethinking the model.

Many water utilities have been leaders in this space for decades.
Incorporating these principles into water management and reuse
3.8% strategies requires analyzing the method that works best based
by region and size, bringing the public on board and, of course,
Slightly less
used today finding creative ways to pay for it.

Figure 41
What steps are you taking to bolster water supply resilience?
(Select all that apply, by population served)
Source: Black & Veatch

Less than 500,000 500,000 or more

Seeking new
groundwater sources 29.0% 64.7 %
Adding reuse capabilities 35.5% 47.1%
Seeking new surface
water sources 25.8% 29.4%
Seeking new desalination/
brackish sources 9.7 % 17.6%
Other 9.7 % 11.8%
We are not taking any such steps 22.6% 17.6%

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RECYCLING | 61

 Implementing Water Reuse Strategies

Balancing the need for more water versus the liability of too
much water — plus regional requirements — are influencing
what reuse strategies utilities already have started to implement.

Groundwater recharge is an obvious solution and a means

Overall, a regional
of potable reuse by way of groundwater injection where
breakdown of water
appropriate to “bank water” for future use. It is widely used, and
reuse strategies required, in the arid West in the United States. Not surprisingly,
reveals that utilities are a regional breakdown of the survey showed that respondents
implementing a broad from Western states indicated groundwater recharge was a
portfolio of solutions primary strategy in their water recycling portfolio, with urban and
even though what agricultural reuse tying for second.
they are most likely Northeastern utilities picked groundwater recharge, industrial
to execute differs reuse and urban reuse in an across-the-board tie for their
by region. most popular water reuse strategy. Midwest utilities also chose
groundwater recharge as the strategy they were likeliest to use —
with industrial reuse, surface water augmentation, potable reuse
and environmental enhancement tying for second. In the South
covering U.S. states between New Mexico and Virginia, where the
largest portion of utilities by region had yet to adopt any water
reuse strategies, the most popular adopted or supported strategy
by survey respondents is potable reuse, including surface water
augmentation and groundwater recharge.

Overall, a regional breakdown of water reuse strategies reveals

that utilities are implementing a broad portfolio of solutions even
though what they are most likely to execute differs by region.
This reflects, especially for larger and more mature institutions,
that they are implementing more than one water reuse strategy
to be adaptable to changing conditions. It also highlights the
differences in water scarcity versus water abundance as utilities
respond to regional influences on water resilience. At the
same time, they deal with a multitude of local stressors on
their systems.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RECYCLING | 62

 Effluent Disposal Plays a Factor in Reuse Efforts

While more than 40 percent of respondents chose risk

mitigation, resilience and/or water scarcity as their main reason
for water reuse, effluent disposal also is a factor in water
recycling strategies. More than one-quarter — 28 percent —
of respondents chose effluent disposal as their main reason
Figure 42 for their community reuse program (Figure 42).
What is the main reason why
In the case of Florida, recycling water began as a way of
your community has a water
mitigating effluent disposal.
reuse program? (Select one)
Source: Black & Veatch
Starting in the 1960s, Florida began water reclamation efforts to

40.4%
divert effluent disposal for Tallahassee agriculture, according to
a University of Florida Institute of Foods and Sciences document.
By the 1970s, those efforts broadened into reclaiming water for
For risk mitigation,
landscape irrigation.
resilience and/or
water scarcity
Today, the vast majority of Florida counties reclaim their
wastewater. Florida citizens reuse wastewater to irrigate their

27.7 %
Effluent disposal
private and public lawns, and roughly 820 million gallons of
reclaimed water were used for public benefit purposes in 2019,
according to a Florida Department of Environmental Protection
report.

23.3%
To bolster our full
Now, as Florida grapples with a shrinking groundwater supply,
the stage has been set for the state to expand into potable reuse
sustainability portfolio strategies, according to a new strategic plan released by the
Florida Potable Reuse Commission.

4.3%
For nutrient trading Florida citizens reuse wastewater to
irrigate their private and public lawns,
and roughly 820 million gallons of
4.3%
Other
reclaimed water were used for public
benefit purposes in 2019, according to
a Florida Department of Environmental
Protection report.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RECYCLING | 63

Bringing the Public on Board — It’s All How You Market It

The good news is that overall public acceptance Even facing historic droughts, initial attempts
of potable reuse programs, while still a for potable water reuse in the state failed to
significant factor, appears to be increasing. gain public acceptance.

Engineering and technical advances have In 2008, however, the Orange County Water
improved, ensuring safety, and more private District of California, in partnership with the
and non-profit organizations are promoting Orange County Sanitation District, began a
the need for a “One Water” or an integrated successful groundwater replenishment
water strategy. system treating 100 million gallons per day
of wastewater and replenishing local drinking
Overall, survey respondents indicated that water aquifers. Bolstered by a decade of
after groundwater recharge, potable reuse was emphasis on public education, engagement
solidly part of their reclamation use portfolio. and smart engineering, and building on their
Sixteen percent of respondents chose potable expertise in water recycling going back to the
reuse as a water reclamation strategy, tying with Water Factory 21 project, media coverage
urban reuse and just slightly less than industrial was positive and public support widespread.
and surface water augmentation, which came in Today, the final expansion of that system
at 17 percent (Figure 43). is in construction, taking the total capacity
But as California learned, a successful potable from 100 million to 130 million gallons per
reuse program hinges on public acceptance, day. The system has recycled more than 314
and a thoughtful marketing campaign can billion gallons since inception, and on its 10th
make all the difference. anniversary set a Guinness world record for the
most wastewater recycled to drinking water in
As the University of California-Davis Policy 24 hours.
Institute for Energy, Environment and the
Economy has reported, California lawmakers Other regions can not only learn from — but
looking to meet state requirements for an reap the benefits of — the public acceptance
increase of one million acre-feet of reused shift in favor of potable water reuse led by
water per year by 2020 and two million by successful efforts as seen in California’s Orange
2030 have mandated that treated wastewater County.
be recycled for drinking by 2023.

Figure 43
What types of water reuse/reclamation does your utility conduct and/or support? (Select all that apply)
Source: Black & Veatch

29.9%
Groundwater recharge
17.2%
Industrial reuse
16.1%
Potable reuse
13.8%
Agricultural reuse
4.6%
Other

36.8
None of the above
% 17.2%
Surface water
16.1%
Urban reuse
13.8%
Environmental
enhancement
augmentation

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RECYCLING | 64

Overcoming the Biggest Barrier to Reuse: Paying for It

Overwhelmingly, survey respondents indicated Cost was even more of a factor for utilities
the biggest barrier to doing more reuse is cost. serving fewer than 500,000 customers.

In a survey question asking respondents to Lack of public acceptance was almost twice
select up to three barriers to doing more reuse, as likely to be selected by larger utilities than
costs to build and execute easily was the biggest smaller ones. Both groups similarly selected
obstacle. Lack of public acceptance was still revenue from reused water systems not
significant but less than half that of the barrier justifying the program’s existence (Figure 45).
of costs. Revenue from reused water systems
also was considered a barrier, ranking as the
third most significant barrier to implementing
reuse strategies (Figure 44).

Figure 44
What are the major barriers to more water reuse? (Select up to three)
Source: Black & Veatch

54.7 %
Cost prohibitive to
18.6%
Revenue from reused
9.3%
Technological
11.6%
Other
build and execute water doesn’t justify the barriers
program’s existence

24.4%
Lack of public
12.8%
Lack of regulatory
8.1%
Too much regulatory
15.1%
None of the above
acceptance support complication

Figure 45
What are the major barriers to more water reuse? (Select up to three, by population served)
Source: Black & Veatch
Less than 500,000 500,000 or more

Cost prohibitive to build and execute 59.2 % 45.5%

Lack of public acceptance 18.4% 33.3%
Revenue from reused water doesn’t justify the program’s existence 18.4% 18.2%
Lack of regulatory support 14.3% 12.1%
Technological barriers 6.1% 12.1%
Too much regulatory complication 8.2% 6.1%
Other 12.2% 12.1%
None of the above 12.2% 18.2%
2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RECYCLING | 65
In some cases, utilities simply may be A B O U T T H E AU T H O R S
overwhelmed by asset management and repairs
of existing infrastructure, and not taking a step Zeynep Erdal leads integrated solutions for Black & Veatch,
back to look at the overall picture in water where she specializes in “One Water” solutions that integrate
resource management. Investment in water resource recovery and resilience. She has close to 25 years
reuse can offset other water utility costs when of experience in water reclamation projects around the
approached in a holistic framework. world and is a recognized expert in treatment technologies
focusing on the water-nutrient-energy nexus as well as
When it comes to costs, utilities may be integration of used water and water recycling solutions.
unaware of increasing grant opportunities that
can help to offset water reuse investments as Jo Ann Jackson leads Black & Veatch’s national “One
Water” planning practice. She brings more than 35 years of
federal and state legislators begin embracing
experience developing integrated solutions to wastewater,
more water reuse as a solution to water
stormwater and water supply projects across the United
resilience.
States. Her experience includes six years in the public sector,
In February of 2020, the U.S. EPA released where she helped implement Florida’s first direct potable
reuse pilot and served as a utility representative on Florida’s
the new “National Water Reuse Action Plan.”
Potable Reuse Commission.
Focused on water reuse as “a valuable, perhaps
necessary component of integrated water Andrew Shaw is a global practice and technology leader
resources on planning to ensure safe and in sustainability and wastewater for Black & Veatch. He has
reliable sources of water at the federal, state more than 25 years of experience in wastewater treatment
and local levels well into the future,” that new design projects in the United Kingdom, Australia, Asia and
report includes a section on finance support North America. His expertise includes nutrient removal,
compiling federal funding sources. computer modeling, instrumentation, process optimization
and life-cycle assessments.
Searching for new resources, even aggressively
asking potential partners for help, plus
positioning for grant-funding and stimulus
money for shovel-ready projects is a smart
strategy for utilities looking to invest in water
reclamation projects.

The bottom line: Black & Veatch’s survey results

reveal an increasingly positive outlook for
water reclamation as a real solution for overall
resilience efforts.

Efforts to tighten up the cycle of water through

reuse and exploring options for better ways
to work with the natural and man-made water
cycle are — not surprisingly — a wise water
utility strategy in a world increasingly adopting a
circular economy framework as the answer for
future sustainability and resilience. 

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER RECYCLING | 66

The Conundrum of Water Affordability:
What Is It, and What’s at Stake?
By Mike Orth, Ann Bui and Bruce Allender

F
or decades, talk of water has rested on The COVID-19 pandemic is challenging how
philosophical premises, ranging from we all view what is normal. Pandemics beyond
arguments that it’s a human right to national disasters take utility planning for
insistences that it’s a property right or even a water utilities to a new level, along with
commodity. Regardless of the philosophical different operational practices to ensure that
posture, potable water is anything but free. affordability of supply of service stays in place
Utilities incur costs to get the water, treat it for its customers. The drop in revenues that
to safe drinking standards and then supply it utilities experience during a pandemic challenge
through an often-aging system of pipes and a utility’s reserves, how rates are structured
pumping stations to the consumer. Customers and how a utility looks to manage its customer
expect that when they turn on the faucet, they services and operations.
will get potable water at adequate pressure and
Only with time will the extent of COVID-19’s
enough of it for their on-demand needs. They
financial implications on the water industry
expect to pay for this level of service but
become clearer. But Black & Veatch’s survey
at reasonable prices.
of nearly 300 water industry stakeholders
The question then is, “Is water affordable?” That for this 2020 Strategic Directions: Water Report
depends on who you ask — and more precisely adds insights about the elusive value of water,
what defines “affordable.” beginning with how the decision-makers in that
space define it.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER AFFORDABILITY | 67

 Water Affordability: The Industry’s Perception

Conventional wisdom would cast water affordability as providing

water at a reasonable price to customers. Black & Veatch’s survey
shows it’s not that simple.

Figure 46 More than two-thirds of respondents described affordability

as more than merely charging enough to provide customers
What does water
with safe drinking water or wastewater services. It’s also about
affordability mean
funding capital improvements or for covering operations and
to you? (Select one)
Source: Black & Veatch
maintenance — a nod to addressing the industry’s vexing issue
of aging infrastructure. Nearly one-quarter of respondents —

67.4
24 percent — consider affordability as providing a basic level of
% water service (Figure 46).

Charging enough to A scant 4 percent identified affordability as keeping rates as low

serve customers AND as possible or discounting the charge to fixed- or low-income
make improvements
customers.

The industry’s prevailing, broader definition of affordability isn’t

23.9 %
Providing a basic level
necessarily a bad thing. Still, it requires effectively explaining
it to ratepayers by educating them that it is about more than
of water at an affordable simply the charge for water flowing through the tap — and the
price to all customers infrastructure to remove used water. And that needed funding
for infrastructure upgrades may be influenced by city councils,

4.4%
boards or other civic overseers who may decide rate increases
through the prism of election cycles.
Keeping rates as
low as possible As much as consumers expect wastewater to be removed and
safely disposed of to protect the environment, they expect
reliable, clean and safe drinking water, making it incumbent on
4.3%
Giving a discounted amount
the utility to help customers understand and appreciate the
cost involved in providing that resource and service. One-third
of water to fixed-income / of respondents to Black & Veatch’s survey said their customers
low-income customers probably don’t understand what it takes to supply them with
clean, potable water, as well as wastewater and stormwater
services. In addition, one in five respondents lamented that their
customers don’t have the baseline knowledge about the service
they receive (Figure 47).

Bridging that education divide facilitates utilities making a case

for modest rate increases to underwrite long-overdue upgrades
of increasingly strained infrastructure — or to save for when that
infrastructure fails. In the fallout of the COVID-19 outbreak, many
expect significant pressures to further defer rate increases until
the economy recovers and the millions of jobs are returned.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER AFFORDABILITY | 68

Figure 47
Do you think your customers understand what it takes to provide clean,
potable water, wastewater, and stormwater services? (Select one)
Source: Black & Veatch

22.2% Definitely not

6.7 % Definitely yes
33.3%
Probably not 15.6% Probably yes

22.2% Might or might not

Customer Assistance, Discounts Figure 48

Which of the following
Because the online survey for this report was conducted
statements best reflect any
during a three-week span ending on March 30, 2020 — during
water rate discount programs
which the COVID-19 pandemic was accelerating — it’s difficult
(e.g., customer assistance
to discern how much of an impact that global outbreak had on
programs, discounts for
the responses. More specifically, whether utilities either by
senior citizens, etc.) in your
outside mandates or voluntary gestures of goodwill broaden
area? (Select one)
their customer service when it comes to offering discounts to Source: Black & Veatch
customers in need.

Through the timing of this survey, 40 percent respondents

say they’re not compelled by regulators to offer rate-discount
programs to seniors or others, so they don’t, perhaps, because
37.8%
No regulation, but
we DO offer them
of the administrative work required. A similar amount — 38
percent — report that in the absence of regulatory guidance,
they have such programs. Just 11 percent say they are required
to offer discounts or customer aid (Figure 48). 40.6%
No regulation, but we
It’s unclear whether the COVID-19 pandemic will dramatically DO NOT offer them
influence more water utilities to offer discounted services long-
term. Many water utilities — often at the behest of their states
or municipalities — are giving customers financially strapped by
outbreak-forced layoffs a break by maintaining service to those
10.8%
Regulations mandate
behind in payments. Some utilities are required to go a step that we DO offer them
further and turn shut-off customers back on. That’s keeping in
mind that shutoffs are one of the few enforcement tools utilities
have to collect on past-due accounts.
10.8%
Regulations mandate that
we DO NOT offer them

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER AFFORDABILITY | 69

 Financial Resilience

Commissioned by two leading trade groups — the American

Water Works Association (AWWA) and the Association of
Metropolitan Water Agencies — an assessment released in
April 2020 indicated an aggregate financial impact of COVID-19
Figure 49 on drinking water utilities of approximately $13.9 billion,
Which of the following representing an overall 16.9 percent financial toll. Wastewater
statements best describe utilities were expected to lose an estimated $16.8 billion in lost
your utility’s financial revenues, along with the costs of maintaining sewer access.
resilience situation? The National Association of Clean Water Agencies (NACWA)
(Select one) warned that without taxpayer help to the industry, the revenue
Source: Black & Veatch
loss from forgiving customer debts and providing services

51.1%
without payment during the pandemic ultimately would be
passed on to water customers in subsequent years and lead
to future rate increases.
We have substantial cash
reserves should an adverse Often saddled with the costly need to upgrade their chronically
event occur
aging infrastructure but constrained in doing so by the rates
they manage to collect, utilities generally aren’t considered to be

31.1%
We have cash reserves but
flush with cash. But a majority of respondents to Black & Veatch’s
survey suggest they’ve got enough on hand to weather a setback.

one major event would be When asked to gauge their utility’s financial resilience, slightly
detrimental more than half — 51 percent — report they have “substantial”
cash reserves to withstand an adverse, isolated event. Thirty

4.4%
We have little to no cash
percent of respondents said they have cash reserves, though
a major event would be “detrimental” (Figure 49).

reserves set aside for

major adverse events

13.4%
Other (specify)

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER AFFORDABILITY | 70

Left to question is what they perceive to A B O U T T H E AU T H O R S
be a “substantial” amount in the bank, and
whether those who say they have it have false Mike Orth is executive vice president and executive
confidence. Is it considered enough to get them managing director of Black & Veatch’s water business in
through a catastrophic event like a flood that the Americas. Orth guides the company’s growth efforts in
puts them out of operation for a few months? supply, storage, treatment, and conveyance by delivering
Or are they viewing their reserves as simply projects for clients through both traditional methods and
the amount to get past a service-disrupting alternative solutions such as design-build, performance
infrastructure or equipment failure? How contracting, and public-private partnerships.
much money on hand is the right amount?
Ann Bui is a managing director and leads Black &
Veatch Management Consulting Group’s water market
COVID-19 and its financial fallout may answer
business. Besides providing clients with strategic financial
much of that, showing just how fiscally ready
management strategies, her responsibilities include driving
water and wastewater providers are in dealing
growth and innovation to water utilities in the areas of
with something that suddenly sinks their
financial and advisory planning, advanced metering,
revenues through delinquent accounts and customer experience, asset integrity, and enterprise risk
lost customers. Utilities would be well-served management services. Bui has more than 30 years of
using this pandemic as a learning moment experience with clients in North and South America, Europe,
by strengthening their cash reserves — at and Asia.
least enough to cover four to six months of
Bruce Allender is chief operating officer of
costs, with perhaps a line of credit on standby.
infraManagement Group LLC, a wholly-owned subsidiary
Moreover, the need for innovative approaches
of Black & Veatch. He has more than 25 years of experience
to address the affordability and develop
in the water and wastewater sector and has been part of
strategies and programs assisting those in
teams that have proposed and implemented design-build
need will continue to be an ongoing concern — and public-private partnerships in North America, Australia
pandemic or not.  and Asia Pacific for the water and wastewater municipal
and industrial marketplace.

2020 STRATEGIC DIRECTIONS: WATER REPORT | WATER AFFORDABILITY | 71

Overseas
Perspectives

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES | 72

Ensuring All Customers Have
an Equal Opportunity to Receive
Leading-Edge Service
By Mark Kaney

T
he more you can spend to achieve exciting time with digital transformation gaining
successful outcomes, the greater the pace, a renewed appetite for innovation, and
likelihood of success. Since the 2013 the opening up of the sector to tech start-ups.
Australian Grand Prix, no Formula 1 team other Against this backdrop, is there a chance that
than Red Bull, Ferrari or Mercedes has won a customers of bigger water companies — with
Grand Prix. The “Big Three’s” spending power more to invest in innovation — enjoy better
consistently outstrips the rest of the pack. outcomes, better customer experience, than
During the 2019 season, won by Mercedes — customers of smaller, less affluent water
with Ferrari second and Red Bull third — the companies? This matters when you are dealing
Big Three spent more money than the other with natural monopolies like water companies,
seven teams combined. because few customers can choose their
supplier, creating the potential for a postal code
During the 2018/19 British Premier League lottery in digital water services.
season, Liverpool paid £43m to football agents
— more than any other club — followed by Innovation is a prime mover for better
Chelsea (£26m) and Manchester City (£24m). services and customer experience. It follows
City beat Liverpool to the title by one point, that the more a water company can spend
Chelsea finished third. During the same season, on innovation, the greater the likelihood that
Championship clubs’ combined pay-outs to the company’s customers will enjoy a better
agents totaled £50m. experience. It also follows that the converse
is true. If the chance to invest in innovation
Could we see something similar apply to the is limited, customer experience is less likely
water industry in England and Wales? It’s an to improve.

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: UNITED KINGDOM | 73

While smaller companies may have the advantage of being nimbler and
better-suited to adopting new technologies from start-up companies —
with less proof of scalability — they are taking on greater risk than those
able to afford proven heritage brands.

The bigger the innovation investment, the For the smaller water companies and new
greater the pool of partners and suppliers water entrants, initiatives on this scale likely are to
companies can draw from. Access to technologies be too expensive, and difficult to resource
and approaches not traditionally associated with effectively, to undertake alone. By partnering
the water sector is enhanced, so is the ability to with Anglian, however, the much smaller
create multi-company top-tier alliances. Essex & Suffolk Water was able to participate
in September 2019’s three-day Innovate East
It’s definitely the case that the bigger water event. Customers of those companies unable
companies are making significant investments to take part in major innovation initiatives
in initiatives intended to foster innovation. may not enjoy the benefits of any successful
Anglian Water’s “Future Water Company” innovations that arise.
initiative uses the Newmarket region of While justly rewarding good performance,
its operating area as a proving ground for the comparative competition model which
innovators and technologies promising the underpins economic regulation of the water
greatest benefits. At Newmarket, the utility is industry in England and Wales reinforces this
working with more than 100 partners on 62 disparity in the ability to invest in innovation.
different projects to achieve zero leakage and The companies best placed to achieve their
bursts; 100 percent customer satisfaction; outcome delivery incentives typically will be
water consumption of 80 liters per person per those most able to invest in innovation. With
day; zero pollution and flooding; 100 percent performance measured relative to self year-
compliant and chemical-free drinking water; on-year, the companies with the most to invest
carbon neutrality; and building a circular in successful outcomes will accrue even more
economy that eliminates the concept of waste. funding for further innovation, with their
For the second consecutive year in 2019, customers seeing better, cheaper service
United Utilities ran its award-winning and greater speed-to-value.
Innovation Lab program. The 2019 focus While smaller companies may have the
was on how innovative companies can help the advantage of being nimbler and better-suited
utility develop systems thinking and improve to adopting new technologies from start-up
service using various connected customers; companies — with less proof of scalability —
empowered, knowledgeable colleagues; right they are taking on greater risk than those
information, right place, right time; and the able to afford proven heritage brands.
future of water.
With no incentive to share innovation across
During the summer of 2019, more than 3,000 the sector, this propensity to variable speed
people from nearly 700 leading organizations innovation will grow. This risk of a postal code
around the globe attended Northumbrian lottery in customer experience is likely to be
Water’s Innovation Festival. The aim of the exacerbated by the cost of investing in leading-
five-day event was to come up with innovative edge, data and artificial intelligence-driven
solutions to some of the biggest challenges technologies.
faced by society and the environment.

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: UNITED KINGDOM | 74

 Seemingly cognizant of this and recognizing that part of the
solution lies in some form of sector-wide mechanism to foster
While smaller and share innovation, Ofwat — the water industry’s economic
companies may have regulator for England and Wales — ran a consultation in 2019
the advantage of being on its own proposals to drive “transformational innovation” in
nimbler, and better the sector. The proposals centered upon:
suited to adopting new ● A collectively funded innovation competition during AMP7*
technologies from start- ● Rewarding the successful roll-out of innovative solutions at the
up companies — with end of AMP7 as part of PR24**
less proof of scalability ● Creating a company-led innovation in water center of excellence
— they are taking on ● Proposals on ways to make better use of data
greater risk than those
able to afford proven Ofwat opted for the innovation competition, collectively-funded
heritage brands. by the water companies, to provide up to £200m of additional
funding for innovation during AMP7 (2020-25). When designing
the competition, the regulator will try to address the concerns of
smaller water companies that a lack of resources, compared to
their larger counterparts, may hamper access.

Entrance to the competition is restricted solely to the water

companies. Although Ofwat hopes for collaborative bids —
with water companies, the supply chain and other stakeholders
working together — there remains the challenge of how to
access quickly and fairly the innovation capabilities of the
supply community. The competition’s structure, in effect, means
innovation coming from the supply chain will be largely dictated
by the procurement choices of each water company.

As the innovation initiatives described previously show,

water companies typically look to the supply chain to develop
innovative technologies and ways of working. The utilities
have shown a willingness to trial and adopt innovation borne
of the supply chain; but not to expose customers, owners and
shareholders to the financial risks inherent in undertaking
large-scale research and development of their own.

Consequently, to succeed, any initiative to create

“transformational innovation” needs to facilitate supply chain
involvement at a sector-wide level. As Ofwat’s consultation
document noted, “Supply chain companies report facing slow
commercial deployment, and often having to trial their new
technologies independently on each incumbent water company.”
Finding a viable alternative is vital to speed-up the nurturing of
innovation from good idea to something with the potential to
offer tangible value for customers, shareholders and owners.

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: UNITED KINGDOM | 75

 Data will be at the core of genuinely In contrast to IPR, when it comes to data,
water companies are starting to show a much
transformational innovation.
greater willingness to share. Yorkshire Water is
setting a precedent with an open data initiative
partnership with the Open Data Institute,
Adjunct to this is the tendency from many water using Datamill North as a data repository. The
companies to want to own the intellectual company is considering giving independent
property rights (IPR) for all supply-chain data scientists access to data streams including
derived innovations they adopt. This acts as a water consumption, water resources, leakage
disincentive to suppliers because they do not and bio resources.
get a sustainable return on their investment A two-tier, postal code lottery, for water services
in innovations. This serves as a barrier to the is in no ones’ interest; especially at a time when
supply chain making a sector-wide contribution our industry is facing more intense scrutiny
to transformational innovation as there is than ever before. There is no silver bullet, but
a propensity for the wealthiest companies the fact the regulator has put forward concrete
to monopolize the best ideas, which risks proposals to foster innovation is a welcome
contributing to the development of a postal step. As we move toward Industry 4.0 — and
code lottery for the best water services. The the role of data, artificial intelligence, and
journey from a great idea to the ultimate cost machine learning underpin everything we
and service benefit to the customer has many do — embracing open data now and creating
barriers; and the chances of that idea becoming an industry that encourages and enables
real and making it to a customer, let alone all innovation from all, will help us future-proof
customers, reduces at each hurdle. world-class quality and consistency of service
Data will be at the core of genuinely for all. 
transformational innovation. To mitigate against * AMP7 is the seventh five-year asset management
the risk of a two-tier provision of water services period (AMP) to be delivered by water companies
data needs to be fully accessible to all, with the in England and Wales since privatization in 1989;
returns on investment mainly residing with the AMP7 runs from 2020 to 2025.
ability to turn data into information. Currently,
the trend is toward seeing how data can be ** PR24 is the regulatory price review (PR) of water
monetized. We need to move to a position company funding, due in 2024, which will set
where the wisdom and insights which data revenues and requirements for AMP8 (2025-2030).
informs are valued, rather than the data itself.
A B O U T T H E AU T H O R
To enable this change, could water companies
and the supply chain create and have access
to a central open data resource? This will Mark Kaney is Black & Veatch’s asset management director
help foster a sector-wide innovative culture for Europe. He has more than 20 years of experience in the

by making the building block of digital utilities industry. Prior to joining Black & Veatch, Kaney held
senior asset management positions in both asset-owning
innovation — data — available to all. The role
and consultancy organizations, and served as head of
that open data must play in driving innovation
digital development. He is actively involved with the Institute
is acknowledged in Ofwat’s innovation
of Asset Management, where he is as an endorsed assessor
competition plans, “There will be an ‘open and with a seat on the IAM Council and British Water, serves
by default’ approach to data and learning …” as the International Business Mentor for Europe.

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: UNITED KINGDOM | 76

Asia Pacific’s Water Industry Focuses
on Sustainability, Resource Recovery
By James Currie, Andy Kwok, William Yong

A
mid climate change and growing As of April 2020, the United Nations estimates
urbanization, Asia Pacific’s water that the population of Southeast Asia is more
networks are getting more complex than 667 million, with half of the population
and extensive. Increasing incidences of extreme urban. On the one hand, the growing urban
weather that changes rainfall patterns, affecting population increases the demand for water,
rainfall availability and distribution, are one which puts a strain on water resources and
aspect of climate change that regional water infrastructure. Conversely, cities are well-
leaders are addressing. positioned to provide more integrated and
sustainable water use and waste management.
In April 2020, Australia’s Bureau of Meteorology
reported that the top end was experiencing two Recognizing the value of that integration and
wet seasons of low rainfall. In the same month, sustainability, Asia Pacific water leaders are
Indonesia reported that floods damaged homes identifying possibilities for resource recovery in
in Banten, Bengkulu and East Kalimantan, and urban water infrastructure to continue building
at least 2,000 people were affected. resilient, livable cities. Digital transformation
is one tool that the region is investing in
Other challenges the region is facing arise to support better infrastructure lifecycle
from rapid urbanization and aging water management decisions and strategies.
infrastructure.

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: ASIA PACIFIC | 77

Digital Transformation
Reframes Water Sector

Digital transformation allows water utilities

to explore new ways to enhance productivity
and achieve planning and operations
efficiency in stormwater, water and
wastewater management.

Asia Pacific water leaders are progressively

incorporating water infrastructure with sensors
Regional Progress:
and communications infrastructures to relay
Australia Invests in Integrated
data from the sensors to control centers. Data
Water Systems
is analyzed at treatment works and central
control facilities. In some cases, artificial Fishermans Bend Sustainability Hub in Melbourne,
intelligence is incorporated into the analytics Australia, is an integrated water system that will
and control system. optimize locally available water, minimize water
and sewerage loads, reduce flooding and transform
For water and wastewater assets, technologies urban amenities.
such as data analytics, robotics and asset
Fishermans Bend is the largest inner-city high-
management tools are alerting water utilities
density redevelopment in Australia and one of the
of potential operations issues in advance and world’s largest urban renewal projects, with a high
identifying productivity opportunities. focus on sustainability.

Robotics are used, for example, in automated South East Water’s objective for this project is to
lab analysis to test more samples in the create a water-sensitive community that secures
same amount of time. Data-driven asset Melbourne’s livability and set a new benchmark
management offers the opportunity to take in sustainable urban design. Potential outcomes
anticipated for the integrated water system include:
preventive actions before equipment failure,
flood reduction with 400ML rainwater reuse, 45
minimizing infrastructure lifecycle costs while
percent reduction in mains water consumption;
ensuring network reliability. Smart meters a drought-resilient urban forest; and 50 percent
are encouraging conservation efforts as they reduction in treated wastewater discharge.
provide users with data that may influence
their water consumption. South East Water will design, construct and operate
the robust integrated water system to deliver a
reliable recycled water supply. The system will tap
on “Smart Grid” technology to maximize the capture
Asia Pacific water leaders
of rainwater for reuse in buildings. That technology
are progressively incorporating also will enhance flood mitigation in the area.
water infrastructure with
Future developments include a precinct scale
sensors and communications treatment plant that will mine the city’s sewage
infrastructures to relay data from and treat it to a high recycled water standard at a
the sensors to control centers. significantly lower cost than smaller building-scale
systems. Reticulated recycled water will be supplied
through the precincts to create drought-resilient
green spaces that enhance livability.

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: ASIA PACIFIC | 78

 For a water utility, a
digital twin offers the
prospect of helping
enhance customer
experience ...

By creating digital twins of water facilities, Regional Progress:

regional water utilities have an opportunity to Hong Kong Increases Resource
take insights to a more advanced level. A digital Recovery Capacity
twin is an integrated digital representation of
physical assets that provides historical, current The Drainage Services Department (DSD) of
the Government of the Hong Kong Special
and predictive analysis in near real-time. What
Administrative Region is investigating the upgrade
separates the digital twin from a traditional
of the Tai Po Sewage Treatment Works (STW).
model is that the twin is in constant dialogue
with its physical counterpart through combining Tai Po STW, built inside Tai Po Industrial Estate (TPIE),
information technology (IT) and operations is the second-largest secondary sewage treatment
technology (OT) enabling its users to simulate works in Hong Kong. Tai Po STW serves the TPIE,
Tai Po, Lam Tsuen and Ting Kok areas.
scenario options before actioning them in the
real world. One objective of the Tai Po STW upgrade is to
increase the capacity of sewage treatment, biosolids
For a water utility, a digital twin offers the management, energy recovery and sewage discharge
prospect of helping enhance customer disposal to support the housing and economic needs
experience, without increasing bills to fund of the Tai Po District. Another objective is to provide
improvements, by optimizing performance of facilities to receive and digest sludge from the
existing assets and increasing the efficiency sewage treatment works in eastern New Territories
with which they are operated and maintained. for co-digestion with pre-treated food waste.
Featuring a compact design, the upgraded STW
A digital twin supports this by facilitating
is anticipated to accommodate the new regional
systems thinking — combining multiple internal
sludge treatment facilities and future expansion.
and external data sources across the asset base
with predictive analytical techniques served Core innovations that will be assessed for the Tai
through multiple functional views. This Po STW upgrade include:
enables improved insights that support better ● Uncertainty-based dynamic process modelling,
decisions, leading to better outcomes in the which enables the use of statistical techniques
physical world. in combination with process models to evaluate
solutions. It provides the ability to right-size
With foresight, many Asia Pacific utilities process systems and equipment.
are identifying the components of a digital ● Low-energy solutions, including biological
transformation program to address their social nutrient removal incorporating sustainable
and economic development requirements. nitrogen removal strategies.
● High solids digestion, a compact solution that
offers more effective management of high
strength feedstocks.

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: ASIA PACIFIC | 79

In Australia, the Intelligent Water Networks
(IWN) Program is a partnership between
Victoria’s peak industry association, VicWater,
various water utilities and Victoria’s Department
of Environment, Land, Water and Planning.

The objective of IWN programs is to assess

new technologies and innovations that meet
common challenges such as population growth,
aging infrastructure and climate variability
in a more efficient manner. Its Big Data and
Analytics Program helps Victorian water utilities,
like Lower Murray Water and East Gippsland
Water, transition into “digital utilities” by Regional Progress:
exploring new and emerging technologies Singapore Harnesses Water-Energy-
designed to manage better and integrate data. Waste Nexus
Lower Murray Water and East Gippsland Water Singapore’s Tuas Nexus is the world’s first fully
piloted a solution to demonstrate aggregation energy self-sufficient greenfield facility in a compact
and analysis of data from distributed assets, footprint that will integrate used water treatment
including smart meters and sensors, with web- and waste management in a single facility. It was
named the “Most Innovative Water-Energy Nexus
based visualization of this data. Key business
Project” at the International Desalination
outcomes include saving time and reducing
Association (IDA) World Congress 2019 in Dubai,
human errors as the digital platform was able United Arab Emirates.
to incorporate data from different sources,
perform calculations on the data and use the Tuas Nexus integrates and co-locates Singapore’s
data in reports and dashboards. The utilities National Water Agency Public Utilities Board’s
(PUB) Tuas Water Reclamation Plant (Tuas WRP)
benefitted from faster and better decision
with the National Environment Agency’s (NEA)
making on issues and assets as the platform
Integrated Waste Management Facility (IWMF).
provided a single point for data access to real- This new way of treating used water and municipal
time data, organized it and provided self-service solid waste will allow Singapore to effectively
visualization tools. harness process synergies from the water-
energy-waste nexus.

Tuas WRP will be the first of its kind in Singapore

The objective of Intelligent to co-digest used water sludge and food waste in
Water Networks programs is the same plant to enhance biogas production. The
to assess new technologies and biogas produced will be used to further enhance
the overall thermal efficiency of the waste-to-energy
innovations that meet common
process and electricity production at the IWMF.
challenges such as population Electricity generated at IWMF will be supplied to
growth, aging infrastructure and Tuas WRP for its operations. Excess electricity will
climate variability in a more be exported back to the grid.

efficient manner.

continued to next page

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: ASIA PACIFIC | 80

Asia Pacific water leaders recognize that
success requires proven expertise in the
design, construction and management of
critical infrastructure; underpinned by leading-
edge capabilities in data analytics, artificial
intelligence and machine learning. They see the
value in augmenting utility infrastructure with
sensors, wireless connectivity and data analytics
to create cyber-physical systems that enhance
the planning, operation and management of
utility assets.

To tap on the opportunities, regional water Regional Progress:

leaders are collaborating with partners Singapore Harnesses Water-Energy-
who can add value at every point along the Waste Nexus Continued
infrastructure lifecycle. In turn, these partners Several other innovative synergies between the two
are systematically fostering new ways of work facilities significantly enhance energy and resource
by sharing deep institutional knowledge to efficiency, reduce emissions, minimize land take and
keep Asia Pacific water leaders ahead of improve reliability, resilience and sustainability.
rapid changes. 
Tuas WRP is a core component of the Deep Tunnel
Sewerage System (DTSS) Phase 2 project. The
DTSS is a superhighway for Singapore’s used water
A B OUT TH E AUTH ORS management, using deep tunnels to convey used
water by gravity to three centralized treatment
plants strategically located in coastal areas.
James Currie is a director of Black & Veatch’s water
business across Australia and New Zealand. He has 35 The IWMF is a world-class integrated facility that
years of experience in water and wastewater projects receives and treats municipal solid wastes, recyclable
in United Kingdom, Singapore and Southeast Asia, and wastes collected under the National Recycling
Australia, where he has been resident since 2008. He has Programme, food wastes separately collected across
particular experience in large-scale, multi-disciplinary Singapore, and dewatered used water sludge from
projects and programs. the TWRP.

Andy Kwok is the managing director of Black & Veatch’s

North Asia Pacific water business. In this role, he is
responsible for the management and sales of the company’s
water business in Hong Kong, mainland China and Vietnam.
Kwok has 27 years of experience in water and integrated
infrastructure projects.

William Yong is managing director of Black & Veatch’s

Southeast Asia water business. With more than 39 years
of experience in project management, design, construction
supervision and commissioning, Yong has worked in
Australia, Hong Kong and Singapore.

2020 STRATEGIC DIRECTIONS: WATER REPORT | OVERSEAS PERSPECTIVES: ASIA PACIFIC | 81

2020 Report
Background
The Black & Veatch 2020 Strategic Directions: Water Report is a
compilation of data and analysis from an industry-wide survey.
This year’s online survey was conducted from 3 March through 30
March 2020 and reflects the input of 279 qualified utility, municipal,
commercial and community stakeholders in North America.
Because the survey was administered online, the amount of self-
selection bias is unknown; therefore, no estimates of sampling
error have been calculated. The following figures provide additional
details on the participants in this year’s survey.

2020 STRATEGIC DIRECTIONS: WATER REPORT | 2020 REPORT BACKGROUND | 82

INDUSTRY TYPE POPULATION
Which of the following BEST describes What is the estimated population served by
your organization? your organization? (Select one choice)
(Select one) Source: Black & Veatch

Source: Black & Veatch

31.1% Less than 100,000

40.9% Water, wastewater
or stormwater plant 27.4% 100,000-499,999
17.6% Consulting firm that offers 14.7% 500,000-999,999
water or wastewater management solutions
8.9% 1,000,000-1,999,999
13.3% Local government or municipality
with knowledge of local water/wastewater/ 17.9% 2,000,000 or more
stormwater issues

12.5% Combined utility that provides water or

PRIMARY BUSINESS REGION
wastewater services and other utility services (such
as electric or natural gas utility services) In which regions of the United States is your
organization located and/or provide services?
(Select all that apply).
15.7% Other Source: Black & Veatch

New England 10.7%

SERVICE TYPE Mid-Atlantic 12.8%
Please identify all of the services provided
by your utility. (Select all that apply) North Central 31.0%
Source: Black & Veatch
Great Plains 13.2%
82.7% Drinking water Southeast 33.5%
67.9% Wastewater South Central 16.9%
Southwest 28.1%
28.2% Stormwater
Rocky Mountain 14.0%
12.2% Electricity Northwest 22.3%
9.0% Solid waste Other U.S. locations 11.2%

2.6% Natural gas

2020 STRATEGIC DIRECTIONS: WATER REPORT | 2020 REPORT BACKGROUND | 83
 LEGAL NOTICE

Please be advised, this report was compiled primarily based on information

Black & Veatch received from third parties, and Black & Veatch was not requested
to independently verify any of this information. Thus, Black & Veatch’s reports’
accuracy solely depends upon the accuracy of the information provided to us and
is subject to change at any time. As such, it is merely provided as an additional
reference tool, in combination with other due diligence inquiries and resources of
user. Black & Veatch assumes no legal liability or responsibility for the accuracy,
completeness, or usefulness of any information, or process disclosed, nor does
Black & Veatch represent that its use would not infringe on any privately owned
rights. This Survey may include facts, views, opinions and recommendations
of individuals and organizations deemed of interest and assumes the reader
is sophisticated in this industry. User waives any rights it might have in respect
of this Survey under any doctrine of third-party beneficiary, including the
Contracts (Rights of Third Parties) Act 1999. Use of this Survey is at users sole
risk, and no reliance should be placed upon any other oral or written agreement,
P +1 913 458 2000 representation or warranty relating to the information herein.

E [email protected] THIS REPORT IS PROVIDED ON AN “AS-IS” BASIS. BLACK & VEATCH DISCLAIMS
W bv.com ALL WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR NON-INFRINGEMENT. BLACK & VEATCH, NOR ITS PARENT COMPANY,
© Black & Veatch Corporation, 2020. All Rights MEMBERS, SUBSIDIARIES, AFFILIATES, SERVICE PROVIDERS, LICENSORS, OFFICERS,
Reserved. The Black & Veatch name and logo DIRECTORS OR EMPLOYEES SHALL BE LIABLE FOR ANY DIRECT, INDIRECT,
are registered trademarks of Black & Veatch
Holding Company. REV 2020-06 INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR
RELATING TO THIS REPORT OR RESULTING FROM THE USE OF THIS REPORT,
INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS, USE, DATA OR
OTHER INTANGIBLE DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.

In addition, user should place no reliance on the summaries contained in the

Surveys, which are not intended to be exhaustive of the material provisions of any
document or circumstances. If any point is of particular significance, reference
should be made to the underlying documentation and not to this Survey. This
Survey (and the content and information included therein) is copyrighted and is
owned or licensed by Black & Veatch. Black & Veatch may restrict your access to
this Survey, or any portion thereof, at any time without cause. User shall abide
by all copyright notices, information, or restrictions contained in any content or
information accessed through this Survey. User shall not reproduce, retransmit,
disseminate, sell, distribute, perform, display, publish, broadcast, circulate, create
new works from, or commercially exploit this Survey (including the content and
information made available through this Survey), in whole or in part, in any manner,
without the written consent of Black & Veatch, nor use the content or information
made available through this Survey for any unlawful or unintended purpose.