October 17, 2024
By Morgan Shimabuku, Senior Researcher, Dr. Christine Curtis, Researcher, and Heather Cooley, Director of Research, Pacific Institute; Grace Harrison, Associate Project Manager of Water Equity Research and Dr. Gregory Pierce, Director of the Human Right to Water Solutions Lab, UCLA Luskin Center for Innovation; Dr. Sri Vedachalam, Corvias Infrastructure Solutions, LLC
Imagine a Day Without Water
As we join the US Water Alliance today in commemorating the 10th anniversary of Imagine a Day Without Water, the project team reaffirms our collective efforts in advancing water affordability. Through this project, we explore innovative solutions to promote sustainable water management and equitable access. Our work in exploring the success of water efficiency and conservation programs that address the needs of low-income communities reflects our dedication to ensuring that every drop counts in building a resilient future for all.
Key Takeaways
- Utility participants underscored that long-term water efficiency efforts can reduce the need for capital investments and new water supplies, thereby advancing affordability.
- Innovative approaches, such as adjusting a bill after a leak is repaired, supports affordability and helps utilities incentivize customers to save water.
- Designing inclusive programs that help reach low-income communities more effectively can help with affordability and efficiency.
- Workshop polling revealed challenges utilities still face in balancing water conservation and affordability, such as improving public awareness of existing programs.
- Utilities are seeking partnerships with community-based organizations to pursue water efficiency for low-income households to offer a “friendlier face.”
Project Overview
The Pacific Institute, Corvias Infrastructure Solutions (CIS), the University of California Los Angeles (UCLA) Luskin Center for Innovation, and the University of North Carolina (UNC) Environmental Finance Center are collaborating on The Water Research Foundation (WRF) project 5179, Feasibility and Applicability of Emerging Utility-Led Innovations in Addressing Affordability.
The project aims to help utilities nationwide improve customer engagement and the reach and impact of their water and wastewater affordability programs in the United States. Water efficiency and conservation have proven successful in helping utilities and the households they serve save water and reduce utility bills.1 This blog focuses on innovative approaches utilities can take and their challenges in advancing water affordability through efficiency and conservation.
Insights from the May 2024 Workshop
In May 2024, the project team convened the third of four virtual workshops.2 We discussed how water efficiency and conservation can support household affordability. Participating organizations included twelve participants representing six water utilities, two national (U.S.) nonprofit agencies, and two organizations that work directly with local communities.3
An initial poll showed varying levels of knowledge about the intersection of water efficiency, conservation, and affordability. Seven workshop participants indicated that they knew “quite a bit” while four expressed that they knew “some things” or “a little bit,” and one expressed that they knew “nothing at all” on the topic.
The workshop included breakout groups to foster conversation and ensure all participants’ experiences were incorporated. Participants shared positive experiences and challenges about the role and use of water efficiency and conservation to support affordability, especially for low-income households. This blog post synthesizes the poll results and the discussion from the workshop.
Workshop Poll Results
What Challenges Do You Face with Balancing Water Conservation with Affordability in Your Community?
The goal of this project is to highlight innovative approaches utilities are pursuing to help address household water affordability. However, identifying the barriers and challenges to achieving this goal can help clarify a path forward. To this end, the project team asked workshop participants to identify the key challenges in balancing water conservation with affordability. They were asked to select all that apply.
As shown in the chart below, the results revealed that the most significant challenge is public awareness and participation. The next most selected key challenges were inadequate funding and inaccessibility of conservation programs for low-income households. Other key challenges included technical limitations, regulatory issues, the challenge of reconciling conservation and efficiency programs with affordability, and “other.” Notably, no participants selected the option, “this challenge does not resonate,” suggesting that balancing conservation and affordability is a universal challenge for water and wastewater utilities.
Which Local Partners Do You Think Would Most Effectively Improve Water Efficiency and Affordability in Your Area?
Utility participants were asked to identify local partners that could most effectively improve water efficiency and affordability in their area. The results in the next chart highlighted community organizations and local governments as the most effective partners. Housing organizations, the energy sector, and private sector companies were also noted as helpful partners.
Workshop Discussion on How Utilities Can Expand the Reach of Low-income Efficiency Programs
During the workshop’s breakout sessions, participants shared their experiences with the role water efficiency and conservation play in supporting affordability for households and as a way to maintain more affordable water rates. The following sections highlight key themes and examples from these discussions.
Efficiency and Conservation as Long-Term Cost-Saving Measures
Participants highlighted that efficiency and conservation efforts can reduce the need for expensive infrastructure projects, helping to maintain affordable water rates. By lowering water demand, utilities can defer or avoid the costs of developing new water sources and infrastructure.
One participant who worked for a mid size utility in an eastern state noted a “major decision” this year to cancel a large infrastructure project due to reduced water demand through efficiency and conservation efforts. Several participants from utilities also stated the importance of addressing water uses that were driving peak demand to reduce the need for new water supplies. Another participant noted that their utility focused their efficiency and conservation efforts on outdoor water use, as it was the main driver of their peak demand.
However, some participants noted limitations to the impacts on long-term cost savings of efficiency and conservation. A participant from a large urban utility that has been implementing efficiency programs for decades stated that achieving further water savings were constrained by the success of their past efforts, a phenomenon sometimes referred to as demand hardening.
Savings for Households from Fixed and Variable Costs
Utilities sometimes face short-term challenges posed by fixed costs that are not substantially offset by reduced water consumption. Participants generally agreed that while efficiency reduces the need for new water sources and related infrastructure, the fixed costs of maintaining and operating existing infrastructure remain substantial.
Utilities typically include non-volumetric fixed charges on customer bills. These fixed charges can make up a substantial portion of household water bills, particularly for low-usage customers, making it challenging for efficiency and conservation practices to have a meaningful impact on bill affordability. One utility participant explained how they have structured their customer assistance program to incentivize conservation. They do this by discounting 100% of the fixed charge for income-qualified customers. By applying the discount to the fixed charge (versus the volumetric charge), customers enrolled in the assistance program only pay for what they use and can further reduce their water bill by using less water.
Enhancing Affordability through Household Leak Detection and Repair Programs
Participants emphasized leak detection and repair programs as effective measures to conserve water and enhance affordability for low-income households. They also noted that catching leaks can help households prevent or reduce damage to their homes.
Utilities are using Advanced Metering Infrastructure (AMI) technologies to automatically flag potential leaks. One utility remarked that their AMI system has enabled them to be more proactive with leak notifications, particularly with renters and tenants. Another utility deploys in-unit leak monitoring devices, including in rental units and apartment buildings. They noted that this expansion had helped to reach more low-income households.
After a leak has been detected, utilities can take different steps to help find and repair the leak in the residence. One utility had developed resources to help tenants and landlords find and fix the leak themselves. After a tenant or landlord fixes the leak, the utility offers an “emergency water loss adjustment” on the utility bill. This may serve as a motivating factor for fixing the leak.
Another utility had created a leak repair fund, available only to households enrolled in their customer assistance program. However, demand for funding for leak repairs outstripped the availability of funds (the utility participant noted that they felt this was a good problem to have).
Innovative Household Water Efficiency Programs
Many residential water efficiency programs are designed to accommodate owner-occupied, single-family households with disposable incomes. These programs, such as rebates for high-efficiency fixtures or appliances, require the participant to foot the up-front cost and install the device themselves. This design can exclude low-income renters and apartment dwellers that cannot afford upfront costs and who cannot replace existing fixtures and appliances.
Innovative approaches to program design and outreach can help make these traditional programs accessible to more households. For example, one utility participant shared how they simplified access by mailing water-saving devices directly to households that requested them. There was also a workshop participant from a utility that figured out a way to send rebate checks to renters (who are not always the utility account holders). At this utility, they allow the account holder to send an email to the utility on behalf of the renter who is owed the rebate as verification. While this doesn’t get around the challenge of upfront costs for the renter, it does provide an avenue for non-account holders to be reimbursed for efficiency upgrades.
Another approach discussed to help utilities expand the reach of low-income efficiency programs is partnerships, such as with nonprofit organizations, government programs, or energy utilities, discussed in the next section.
Role of Nonprofit Organizations
Nonprofit organizations play a crucial role in helping utilities implement water efficiency and affordability programs. They can help with community engagement and raising awareness about program options, identifying and distributing funding, and many already have lists of qualified low-income households.
One participant highlighted their nonprofit’s success in securing federal funding to offer a suite of water affordability programs, including water efficiency programs, for low-income households. They planned to serve communities across the entire county in which they operate. This demonstrates another benefit of working with nonprofits – their reach can extend beyond utility provider boundaries and reach communities that may otherwise not have access to efficiency or affordability offerings.
Staff at nonprofit organizations may be considered more approachable and culturally competent than utility staff. A participant noted that, in some ways, nonprofit staff are “a friendlier face” for customers, and another stated that community-based organizations have a more personal understanding of the languages and cultures of different groups in the community. However, a challenge noted by participants who work with local nonprofits was availability of limited funds, capacity, and high staff turnover, which can hinder programmatic goals over time.
Leveraging Government Programs
Coordination with government programs, such as the Supplemental Nutrition Assistance Program (SNAP), was highlighted as an effective way to qualify utility customers for affordability and efficiency efforts for low-income households. Federal programs can also be sources of funding. One participant noted that a large county in their state had used American Rescue Plan Act (ARPA) funding to create affordability programs that included efficiency and conservation.
Collaborating with Energy Utilities
Collaboration with energy utilities can also enhance efficiency, conservation, and affordability efforts. In many places, energy utilities have well-established efficiency programs for low-income households, allowing water and wastewater utilities to partner or collaborate. One participant noted that when there is already a program from an energy provider in place, the “infrastructure” for other installations, such as high-efficiency toilets, is easier to implement.
Similarly, reaching low-income qualified households and recruiting program participants was enhanced by partnerships. Yet an ongoing barrier to partnering with energy utilities noted by multiple participants was related to sharing customer data. One participant noted that even though their energy utility was within the same municipal government, there was still a lot of hesitation in sharing information.
Conclusion and Next Steps
The workshop highlighted the role that water efficiency and conservation play in supporting household affordability. Participants shared ways that their organizations pursued affordability through efficiency and conservation, as well as the benefits, trade offs, and challenges of various approaches.
The insights gained from this workshop will guide the next steps in our project as we continue to document and promote emerging utility-led innovations in addressing affordability. The fourth workshop for this project, focused on measuring outcomes in affordability efforts, was held in September 2024. Stay tuned for the final blog in the series!
Footnotes
- Efficiency efforts primarily focus on improving infrastructure and adopting technology that helps to maximize the effectiveness of water use and minimize waste. Conservation efforts primarily focus on adopting practices and behaviors that lead to the prudent and mindful use of water, such as taking shorter showers or only running the dishwasher when full. ↩︎
- Organizations that participated in the workshop included Alameda County Water District (CA), Alliance for Water Efficiency, Austin Water, City of Durham Dept. of Water (NC), City of Westminster (CO), East Bay MUD (CA), Elevate, Mile High Youth Corp, the National Association of Clean Water Agencies (NACWA), the Natural Resources Defense Council (NRDC), and San Antonio Water (TX). ↩︎
- The utilities participating in the workshop would all be considered “very large” by EPA drinking water regulations (wastewater utilities do not have the same type of size classifications). However, for the purposes of discussion in this blog, utilities serving populations less than 500,000 are deemed “midsize utilities,” while those serving greater than 500,000 are designated “large utilities.” ↩︎