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Applying Water Stewardship Tools in
     North American Industry




                Dale Phenicie
       Council of Great Lakes Industries
                                           1
Study Sponsors
• Great Lakes Protection Fund (GLPF)
• Council of Great Lakes Industries (CGLI)
• National Council for Air and Stream Improvement
  (NCASI)
• Electric Power Research Institute (EPRI)
• LimnoTech (LTI)


                                                    2
Why is Industry Interested?
• Heightened focus on water
• Many water tools
• Concern that tools might become de
  facto regulation
• New opportunities



                                       3
Why So Many?




               4
Global Water Initiatives
•   Aquawareness                         •   UNEP/SETAC Life Cycle Initiative
•   Alliance for Water Stewardship       •   Strategic Water Management
    (EWP)                                    Framework (Australia minerals)
•   BIER Water Footprint Working         •   UN CEO Water Mandate
    Group                                •   Water Brief for Business
•   Carbon Disclosure Project -Water     •   Water Footprint Network
    Disclosure                           •   Water Footprint Neutrality and
•   Corporate Water Gauge                    Efficiency Project (UN)
•   Federation House Commitment to       •   Water Neutral Offset Calculator
    Water Efficiency                     •   WaterSense Certification Scheme
•   Global Environmental Management      •   Water Stewardship Initiative
    Initiative (GEMI)
                                         •   ISO Water Footprint Standard
•   Global Reporting Initiative
•   Global Water Tool (WBCSD)

    Initiatives in bold text are those selected for more detailed analysis
Key Questions
• Can water stewardship tools be useful in a water
  rich region?
• Do available tools fit high volume, low
  consumptive use industrial situations?
• Do the tools focus on evaluation of watershed
  impacts?
• Do the tools account for or “give credit” for
  industrial water recycling/reuse practices?
• Will the tools inform industrial water stewardship
  program development?
Key Questions - 2
• How do the tools fit-in with today’s industrial
  operational practices?
• How do tool metrics compare with
  data/information already being reported?
• Do the tools mesh with regulatory requirements?
• Can the tools be used to support economic
  development initiatives?
• How will the tools recognize the need to use
  water to support society’s needs, services and
  manufacture of products?
Study Approach

•   Reviewed available tools & underlying “metrics”
•   Selected metrics for evaluation
•   Applied to 4 industrial facilities
•   Developed findings & recommendations




                                                 8
Categories of Tools
•   Water use accounting
•   Business risk assessment frameworks
•   Reporting and disclosure protocols
•   Standards and certification frameworks




                                             9
What are the Most
              Common Metrics?
           Tool 1   Tool 2   Tool 3   Tool 4   Tool 5   Tool 6

Metric A              X                                   X

Metric B     X                 X        X        X        X

Metric C                       X

Metric D     X                 X                 X

Metric E     X        X        X        X        X        X



                                                                 10
What are Most Relevant to Industry?
                        Objective                     Examples
                                       Impact on water quantity
  Protect ecosystem uses
                                       Impact on water quality
                                       Availability for other users
  Not impair other human uses
                                       Reserve water for growth
                                       Establish and maintain efficient water
                                       use plan
  Sustain existing industrial use
                                       Response plans for dry periods
                                       Water reuse or recycling
                                       Maximize return flow
                                       Ethical governance
  Demonstrate good water stewardship
                                       Permit compliance
                                       Response actions where impacts
                                       Out of basin transfers (avoid)



                                                                                11
22 Metrics Evaluated
                    Indicator                                    Metrics
Withdrawal Amounts                     total volume abstracted by source
                                       total volume consumed by source
                                       water transfers (inter-basin and ground/surface)
                                       peak/average/seasonal use by source
Withdrawal Source Characterization     sources under stress
                                       amount of renewable water
Withdrawal Impact & Available Supply   relative to total available supply
                                       effect on ecosystem services
                                       effect on human services
                                       total volume discharged to receiving body
Discharge Amounts
Discharge Quality                      regulated pollutant load
                                       non-regulated pollutant load
                                       eutrophication potential
Discharge Impact
                                       effect on downstream human uses
                                       effect on ecosystem (generally)
                                       internal recycling and reuse
Recycling/Reuse
                                       external recycling and reuse
                                       water consumption per unit product
Equitable & Transparent Governance     water resource management strategy (use & disclosure)
                                       permits and other consents (withdrawals)
                                       permits and other consents (discharges)
Benefits                               economic and social benefits
Five Tools Evaluated
       Initiative                        Developer                                     Category
Global Water Tool (GWT)       World Business Council for            Managing business risk
                              Sustainable Development (WBCSD)

                              CEO-led global organization
Water Footprint (WFN)         Water Footprint Network               Water use accounting

                              Network of corporations, NGOs,
                              academics and governments
Global Reporting Initiative   Global Reporting Initiative (GRI)     Reporting and disclosure
(GRI)
                              International multi-stakeholder
                              network of experts
CDP Water Disclosure          Carbon Disclosure Project Water       Reporting and disclosure
Project                       Disclosure

                              Non-profit organization holding
                              corporate climate change database
                              and acting on behalf of investors
European Water                European Water Partnership (EWP)      Standards and certification
Stewardship (EWS)
Standard                      Regional initiative of Alliance for
                              Water Stewardship (AWS) which is
                              developing an international
                              standards and certification program
                                                                                                  13
Four Pilot Industries




                        14
Consumers Energy J.H. Campbell
         Generating Complex
• Grand Haven, Michigan
• 2,000-acre site
• 1450 MW coal-fired power
  plant
   – Once-through cooling



                                     15
Water Flows at J.H. Campbell Plant
                                                                                                            Evaporation                              Forced Evaporation
                                                                                                                                                                0.67
                                                                                                                   0.029
                                                                                                                                     734.1
                                                                                                                                                 Lake Michigan (Outfall 001A)
                           350.47   a                                                                      Discharge Canal
          Lake Michigan

Total                                                            Units 1, 2, & 3
intake                                                                                                                       0.657
738.52                                                                                                                       (Outfall 001B)
 MGD                                                                                               Evaporation
(2010)                                       0.09 (gw to sw - ash pond)
                                                                                                        0.055
           Pigeon Lake                        0.341 contained in boiler
                           388.05 a                        steam cycle

                                  Demin. Consumption                                                                                        Leachate
                                                                                                          Ash Pond System
                                                                                                                                         Retention Ponds
                                            0.0168
                          0.431                                             1.021 (Outfall 001C)

Total                                                                                                              4.4
intake                    0.01                               0.01         Groundwater Discharge
0.744                                   Sanitary System
                                                                             (septic systems)               Pigeon Lake
 MGD      Groundwater
                                                                                                           (Outfall 002A)
(2010)


                          0.303 (RAP Wells) (gw to sw)



                                                                                                                                                                                16
Site Boundary Delineation
                                Can Affect Results
• Forced evaporation due to thermal
  discharge contributes to
  consumption
          Consumers Consumption Calculations
        1,200,000

        1,000,000

         800,000
m3/yr




         600,000

         400,000

         200,000

               -
                    Calculation usingState
                        Reported to          Also including pond Also including forced
                    State methodology              and canal          evaporation
                                                 evaporation
                                                                                              October 9, 2008
                                                                                                                17
                                                       Source: http://edcsns17.cr.usgs.gov/NewEarthExplorer/
Lafarge NA Cement Plant
– Located in Bath, Ontario on Lake Ontario
– Produces Portland cement
– About 4 square mile site area




                                             18
Lafarge NA Cement Plant
                          CKD Landfill
                             Site




                            Quarry



                             Plant



                          MISA Pond
                          and Lagoon
    Intake      Outfall

                                19
Definitions Can Affect Results
• What is “Consumption” ?
• 3 results:
  361,873 m3/yr
  805,601 m3/yr
  - 299,108 m3/yr (negative value)




                                     20
Shell Sarnia Manufacturing Centre
• Located in Corunna, Ontario on St. Clair River
• Produces refined oil products (fuels, petrochemicals,
  solvents)
                 Water Intake
                                               Effluent Outfalls




            St. Clair River



                                                                   21
Flow measurements Not Always
     Suitable for Metrics Calculations
• Volume withdrawn is less than volume discharged
  plus volume evaporated
   – Possibly due to condensate blowdown, rainfall influx into
     system, and possible discrepancies with inlet and outlet
     meters
• Negative consumption calculated by one tool
• But measurement precision is suitable for current
  regulatory requirements and company uses.


                                                                 22
NewPage Escanaba
           Pulp and Paper Mill
• Produces about 700,000 metric tons/yr paper and
  455,000 metric tons/yr of pulp




                                                    23
Relevance of Green and Grey
     Water Footprints?




                              24
Key Findings
• Potential for significant value
• No one tool provides all the answers
• Devil in the details
• Context is critical to defining value
• Some metrics are redundant, insufficient or
  missing
• Tools only partially address water stewardship
  evaluation needs

                                               25
The ‘Ideal’ Tool
• “Low maintenance” – One-time implementation, minimal
  ongoing maintenance
• Minimum resource intensive (personnel/cost)
• Compatible with today's highly automated/technology
  based systems
• Non-duplicative of existing reporting systems, compatible
  with existing legislative/regulatory governance systems
• Focused on stewardship demonstrations, incorporate social
  and economic elements
• Provide information and outputs that can be transported
  into other tool systems
• Produce local benefits that encourage tool use
Questions for Tool Developers
              and Users
• How can water stewardship tools incorporate
  social and economic considerations in their
  assessments?
• What tool design provisions can be made to
  make them resource efficient?
• How can tools be made to work in concert
  with regulatory structures?
• What are the incentives for tool use by
  industrial facilities?
For more information…




http://www.cgli.org/waterfootprint/FinalCGLI_Rrt_PhaseII_May2012.pdf   28
Project Personnel
CGLI
• Project Director
     – George Kuper: ghk@cgli.org – 734 663-1944
• Project Manager
     – Dale Phenicie: dkphenicie@mindspring.com – 770 487-7585
• Communications Director
     – Evelyn Strader: StraderCo@AOL.com – 248 340-7062
• Office Assistant
     – Janet Rieke: JR@CGLI.org – 734 663-1944
LimnoTech
• Wendy Larson: wlarson@limno.com – 734 332-1200
     – Principal Investigator
• Paul Freedman
     – Advisor
NCASI
• Paul Wiegand: pwiegand@ncasil.org – 919 941-6417
     – Principal Investigator
• Barry Malmberg
     – Project Analyst
EPRI
• Todd Maki: tmaki@epri.com – 650 855-2162
     – Principal Investigator
                                                                 29
Questions?




             30

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Tools for Assessing Industrial Water Stewardship-Phenicie, 2012

  • 1. Applying Water Stewardship Tools in North American Industry Dale Phenicie Council of Great Lakes Industries 1
  • 2. Study Sponsors • Great Lakes Protection Fund (GLPF) • Council of Great Lakes Industries (CGLI) • National Council for Air and Stream Improvement (NCASI) • Electric Power Research Institute (EPRI) • LimnoTech (LTI) 2
  • 3. Why is Industry Interested? • Heightened focus on water • Many water tools • Concern that tools might become de facto regulation • New opportunities 3
  • 5. Global Water Initiatives • Aquawareness • UNEP/SETAC Life Cycle Initiative • Alliance for Water Stewardship • Strategic Water Management (EWP) Framework (Australia minerals) • BIER Water Footprint Working • UN CEO Water Mandate Group • Water Brief for Business • Carbon Disclosure Project -Water • Water Footprint Network Disclosure • Water Footprint Neutrality and • Corporate Water Gauge Efficiency Project (UN) • Federation House Commitment to • Water Neutral Offset Calculator Water Efficiency • WaterSense Certification Scheme • Global Environmental Management • Water Stewardship Initiative Initiative (GEMI) • ISO Water Footprint Standard • Global Reporting Initiative • Global Water Tool (WBCSD) Initiatives in bold text are those selected for more detailed analysis
  • 6. Key Questions • Can water stewardship tools be useful in a water rich region? • Do available tools fit high volume, low consumptive use industrial situations? • Do the tools focus on evaluation of watershed impacts? • Do the tools account for or “give credit” for industrial water recycling/reuse practices? • Will the tools inform industrial water stewardship program development?
  • 7. Key Questions - 2 • How do the tools fit-in with today’s industrial operational practices? • How do tool metrics compare with data/information already being reported? • Do the tools mesh with regulatory requirements? • Can the tools be used to support economic development initiatives? • How will the tools recognize the need to use water to support society’s needs, services and manufacture of products?
  • 8. Study Approach • Reviewed available tools & underlying “metrics” • Selected metrics for evaluation • Applied to 4 industrial facilities • Developed findings & recommendations 8
  • 9. Categories of Tools • Water use accounting • Business risk assessment frameworks • Reporting and disclosure protocols • Standards and certification frameworks 9
  • 10. What are the Most Common Metrics? Tool 1 Tool 2 Tool 3 Tool 4 Tool 5 Tool 6 Metric A X X Metric B X X X X X Metric C X Metric D X X X Metric E X X X X X X 10
  • 11. What are Most Relevant to Industry? Objective Examples Impact on water quantity Protect ecosystem uses Impact on water quality Availability for other users Not impair other human uses Reserve water for growth Establish and maintain efficient water use plan Sustain existing industrial use Response plans for dry periods Water reuse or recycling Maximize return flow Ethical governance Demonstrate good water stewardship Permit compliance Response actions where impacts Out of basin transfers (avoid) 11
  • 12. 22 Metrics Evaluated Indicator Metrics Withdrawal Amounts total volume abstracted by source total volume consumed by source water transfers (inter-basin and ground/surface) peak/average/seasonal use by source Withdrawal Source Characterization sources under stress amount of renewable water Withdrawal Impact & Available Supply relative to total available supply effect on ecosystem services effect on human services total volume discharged to receiving body Discharge Amounts Discharge Quality regulated pollutant load non-regulated pollutant load eutrophication potential Discharge Impact effect on downstream human uses effect on ecosystem (generally) internal recycling and reuse Recycling/Reuse external recycling and reuse water consumption per unit product Equitable & Transparent Governance water resource management strategy (use & disclosure) permits and other consents (withdrawals) permits and other consents (discharges) Benefits economic and social benefits
  • 13. Five Tools Evaluated Initiative Developer Category Global Water Tool (GWT) World Business Council for Managing business risk Sustainable Development (WBCSD) CEO-led global organization Water Footprint (WFN) Water Footprint Network Water use accounting Network of corporations, NGOs, academics and governments Global Reporting Initiative Global Reporting Initiative (GRI) Reporting and disclosure (GRI) International multi-stakeholder network of experts CDP Water Disclosure Carbon Disclosure Project Water Reporting and disclosure Project Disclosure Non-profit organization holding corporate climate change database and acting on behalf of investors European Water European Water Partnership (EWP) Standards and certification Stewardship (EWS) Standard Regional initiative of Alliance for Water Stewardship (AWS) which is developing an international standards and certification program 13
  • 15. Consumers Energy J.H. Campbell Generating Complex • Grand Haven, Michigan • 2,000-acre site • 1450 MW coal-fired power plant – Once-through cooling 15
  • 16. Water Flows at J.H. Campbell Plant Evaporation Forced Evaporation 0.67 0.029 734.1 Lake Michigan (Outfall 001A) 350.47 a Discharge Canal Lake Michigan Total Units 1, 2, & 3 intake 0.657 738.52 (Outfall 001B) MGD Evaporation (2010) 0.09 (gw to sw - ash pond) 0.055 Pigeon Lake 0.341 contained in boiler 388.05 a steam cycle Demin. Consumption Leachate Ash Pond System Retention Ponds 0.0168 0.431 1.021 (Outfall 001C) Total 4.4 intake 0.01 0.01 Groundwater Discharge 0.744 Sanitary System (septic systems) Pigeon Lake MGD Groundwater (Outfall 002A) (2010) 0.303 (RAP Wells) (gw to sw) 16
  • 17. Site Boundary Delineation Can Affect Results • Forced evaporation due to thermal discharge contributes to consumption Consumers Consumption Calculations 1,200,000 1,000,000 800,000 m3/yr 600,000 400,000 200,000 - Calculation usingState Reported to Also including pond Also including forced State methodology and canal evaporation evaporation October 9, 2008 17 Source: http://edcsns17.cr.usgs.gov/NewEarthExplorer/
  • 18. Lafarge NA Cement Plant – Located in Bath, Ontario on Lake Ontario – Produces Portland cement – About 4 square mile site area 18
  • 19. Lafarge NA Cement Plant CKD Landfill Site Quarry Plant MISA Pond and Lagoon Intake Outfall 19
  • 20. Definitions Can Affect Results • What is “Consumption” ? • 3 results: 361,873 m3/yr 805,601 m3/yr - 299,108 m3/yr (negative value) 20
  • 21. Shell Sarnia Manufacturing Centre • Located in Corunna, Ontario on St. Clair River • Produces refined oil products (fuels, petrochemicals, solvents) Water Intake Effluent Outfalls St. Clair River 21
  • 22. Flow measurements Not Always Suitable for Metrics Calculations • Volume withdrawn is less than volume discharged plus volume evaporated – Possibly due to condensate blowdown, rainfall influx into system, and possible discrepancies with inlet and outlet meters • Negative consumption calculated by one tool • But measurement precision is suitable for current regulatory requirements and company uses. 22
  • 23. NewPage Escanaba Pulp and Paper Mill • Produces about 700,000 metric tons/yr paper and 455,000 metric tons/yr of pulp 23
  • 24. Relevance of Green and Grey Water Footprints? 24
  • 25. Key Findings • Potential for significant value • No one tool provides all the answers • Devil in the details • Context is critical to defining value • Some metrics are redundant, insufficient or missing • Tools only partially address water stewardship evaluation needs 25
  • 26. The ‘Ideal’ Tool • “Low maintenance” – One-time implementation, minimal ongoing maintenance • Minimum resource intensive (personnel/cost) • Compatible with today's highly automated/technology based systems • Non-duplicative of existing reporting systems, compatible with existing legislative/regulatory governance systems • Focused on stewardship demonstrations, incorporate social and economic elements • Provide information and outputs that can be transported into other tool systems • Produce local benefits that encourage tool use
  • 27. Questions for Tool Developers and Users • How can water stewardship tools incorporate social and economic considerations in their assessments? • What tool design provisions can be made to make them resource efficient? • How can tools be made to work in concert with regulatory structures? • What are the incentives for tool use by industrial facilities?
  • 29. Project Personnel CGLI • Project Director – George Kuper: ghk@cgli.org – 734 663-1944 • Project Manager – Dale Phenicie: dkphenicie@mindspring.com – 770 487-7585 • Communications Director – Evelyn Strader: StraderCo@AOL.com – 248 340-7062 • Office Assistant – Janet Rieke: JR@CGLI.org – 734 663-1944 LimnoTech • Wendy Larson: wlarson@limno.com – 734 332-1200 – Principal Investigator • Paul Freedman – Advisor NCASI • Paul Wiegand: pwiegand@ncasil.org – 919 941-6417 – Principal Investigator • Barry Malmberg – Project Analyst EPRI • Todd Maki: tmaki@epri.com – 650 855-2162 – Principal Investigator 29

Notas del editor

  1. Heightened focus on waterGreater attention on water use performanceGreater international dialogueMany water toolsNeed for industry to understand emerging toolsExpectation for industry participationConcern that tools might become de facto regulationConcerns of water availability and access Focus on industrial effectsNew opportunitiesAbility to inform tool developmentImproved environmental reporting & leadership
  2. We identified almost 2 dozen tools, many came out or were updated during the course of our project.Water Footprint Network (WFN)Alliance for Water Stewardship (AWS) / European Water Stewardship (EWS) StandardGlobal Reporting Initiative (GRI)World Resources Institute (WRI) Aqueduct ProjectWBCSD Global Water Tool WWF-DEG Water Risk FilterCarbon Disclosure Project (CDP) Water Disclosure ProjectCERES Aqua GaugeGEMI Global Water Tool and Local Water Tool
  3. As Dale said, a key question related to the relevance of the water stewardship tools to Great Lakes industries. So in the early stage of our project we were interested in gaining a better understanding of the many “water stewardship tools” out there. So our Study Approach started with a review of the tools.We conducted a workshop for Great Lakes stakeholders to help improve understanding and awarenessWe then took a closer look to identify and select the underlying metrics in the toolsBy “metrics” I mean the numeric units of measurement – for example volume of water consumption - and the narrative descriptions in the tools.We selected a subset of metrics and applied them to 4 pilot industries and I’ll share a few examples with you today.Then we synthesized the findings
  4. We felt the need to categorize the “water stewardship tools” and we chose these 4 categoriesIn some cases one could argue that certain tools belong in a different category, but this worked for usFor example:Accounting: Water FootprintBusiness Risk: Ceres Aqua GaugeReporting: CDP Water DisclosureCertification: Alliance for Water StewardshipSee report for description of available tools organized by these categoriesNext step was to decide which tools to test. Rather than making that decision up front, which would require presupposing which were most relevant, we decided to select the underlying metrics that were most relevant to our project and test those.
  5. We created a large matrix and were most interested in the most common metrics – means they are important to a wide range of stakeholders.
  6. We were also interested in the metrics with relevance to large industrial water users
  7. So we had 88 separate results
  8. Most of the metrics were captured by these 5 tools.
  9. Coal-fired power plantCement plantOil refineryPulp and paper millConsumers Energy Power plantGrand Haven, Michigan on Lake MichiganLafarge North America Cement plantBath, Ontario on Lake OntarioEscanaba Paper Company, Subsidiary of NewPage Corporation Paper millEscanaba, Michigan on Lake MichiganShell Canada Oil refinerySarnia, Ontario on St. Clair River
  10. Lake MichiganLarge site – we realized that all of the pilot facilities were large sites with many complex processes and we need to get a handle on them first.Surface water intakes from Pigeon Lake and Lake Michigan (3,500 feet off shore)Surface water discharges to Lake Michigan (2,600 feet off shore)
  11. This diagram is simplified. Understanding water flows is complicatedSurface Water Intakes (~738 MGD)Surface Water Discharge (~738 MGD)Groundwater (0.734 MGD)
  12. Boundary of the site can affect results.Discharge is 2,600 feet off shore
  13. Discuss water withdrawal and discharge and how GRI defines withdrawal to be water drawn into the site boundary for ‘any use’ Storm water is not used. Affects GWT calculation of consumption.
  14. Results can vary significantly due to different definitions. We learned that it is really important to pay attention to definitions…This was eye opening for us and the industry.Industries are getting requests for information on water use and consumption – Make sure you understand what they really want.Reported consumption at the plant provided on the surveyReported consumption at the plant PLUS evaporation from quarry and stormwater pond (EWP and WFN)Withdrawal minus discharge (storm water collected on site is not accounted for as a withdrawal because it is not ‘used’ – just collected and discharged. (GWT based on GRI)
  15. Capacity ~75,000 barrels of crude oil daily
  16. Data needs can be significant
  17. Potential for significant valueTells a favorable story about Great Lakes water useEnables comparison of water use to available supplyProvides framework for reporting on regulatory environment, best practices and economic benefitsEffective mechanism for identifying gaps in knowledgeNo one tool provides all the answersIncreased understanding of differences between water footprinting and other toolsNo existing tools support optimal allocation of water resources by accounting for environmental, economic & social considerationsDevil in the detailsData precision, site boundaries and metric definitions can significantly affect resultsMeasurements sufficient for regulatory reporting or internal management are often insufficient for metrics calculationsWater budgets can be challenging due to spatial boundary & data availabilityContext is critical to defining valueMetrics alone have limited valueA large water footprint may be sustainable where water supply is sufficient to support the useImportant to consider return flows and contextImpacts must be assessed at the local level and consider:Magnitude and timing of use Location of withdrawal and discharge pointsVolume and quality of dischargeSome metrics are redundant, insufficient or missingMany metrics designed to address water scarcity concernsLess useful for water abundant regionToo much water is often a concernBut metrics not generally designed to address stormwater issuesGrey water footprint found to have limited valueMetrics for recycling/reuse can not account for tradeoffs such as increased energy use, in some cases increased consumption and costsTools only partially address water stewardship evaluation needsPrimary focus is on water quantityInvasive species, habitat loss, legacy contaminants not addressedNo guidance for assessing ecosystem impactsFocused on information gathering and discussion frameworksStructure for describing water stewardship practices but no guidelines for what is “good” or “bad” practice