Accelerating Action, Luncheon Keynote by Jerry Kauffman, University of Delaware

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Accelerating Action, Luncheon Keynote by Jerry Kauffman, University of Delaware

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Accelerating Action, Luncheon Keynote by Jerry Kauffman, University of Delaware

  1. 1. Delaware River Redux Oct 29, 2013 Gerald Kauffman University of Delaware
  2. 2. Water Wooter
  3. 3. Policy History Science Economics
  4. 4.  Federalist model of shared power in water management  1961 DRBC Compact manages “without regard to political boundaries.”  Global model of efficient watershed governance.  4 states, 24 counties, and 838 municipalities  8 Senators, 25 Members of HR  19 federal, 43 state, 14 interstate agencies  Use charges on water allocations ($0.08/1000 gal.).
  5. 5. USDA NRCS USFS Commerce NOAA NWS Interior NPS USFWS USGS Defense USACOE Congress United States President Barack Obama EPA 8 Senators Homeland Security FEMA Coast Guard 25 Congressmen 3 Counties Delaware Governor Jack Markell Wilmington 37 Towns Del. Riverkeeper Natural Lands Trust Del. Estuary Program Nature Conservancy Sierra Club WRADRB 11 Counties Camden Trenton 330 Towns New York Governor Andrew Cuomo Delaware River Basin Commission New Jersey Governor Chris Christie Pennsylvania Governor Corbett 6 Countiies New York City 35 Towns 17 Counties Philadelphia Allentown 125 Towns
  6. 6. The Delaware River Basin 13,000 sq mi 8.2 million people 11th most populous state Drinking water: 5% of U.S. 1st, 7th largest metro. economies Del. (74% of pop.) NJ (35% of pop.) NY (55% of pop.) Pa. (43% of pop.)
  7. 7. Population Delaware River Basin 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
  8. 8. Population Change Delaware Basin, 2000-2010 600,000 492,942 500,000 400,000 313,485 300,000 200,000 Ba si n el . D Yo rk ew N Je rs ey ew N M ar yl an d el aw ar e 0 ni a 3,708 843 Pe nn sy lv a 100,000 D 94,752 80,155
  9. 9. -20,000 -40,000 -60,000 Ches ter, Pa. Berk s, P a. Montgomery, P a. Philadelphi a, Pa . Northampton, Pa . New Cas tle, Del . Lehi gh, Pa. Monroe, Pa. Bucks, Pa. Glouc este r, NJ Pi ke, Pa. Burlington, NJ Kent, Del. Mercer, NJ Cumbe rland, N J Warren, NJ Delaware, Pa. Sussex, Del. Carbon, Pa. Camde n, NJ Sussex, NJ Wayne, P a. Ocean, NJ Hunterdon, NJ Salem, NJ O ran ge, NY Monm outh, NJ Cecil, Md. Leba non, Pa. Sulli van , NY Ulster, NY Gree ne, NY Luzerne, Pa. Lackawan na, Pa . Br oome, NY Sc huylk ill Delaware, NY Cape M ay, NJ Population Change by County Delaware Basin, 2000-2010 60,000 40,000 20,000 0
  10. 10. 1609
  11. 11. 1682
  12. 12. 1682
  13. 13. 1739
  14. 14. 1800s
  15. 15. 1885
  16. 16. 1945 HMS Nelson
  17. 17. 1945
  18. 18. 1961
  19. 19. DO in the Delaware River (Sharp 2010)
  20. 20. 1961: 1972: 1996: 2013: JFK signs DRBC Compact. Congress authorizes Clean Water Act Congress adds Del. Estuary to National Estuary Program. Delaware River revival is underway.
  21. 21. American shad Bald Eagle Nesting Pairs in the Delaware River Basin 50 40 30 20 10 Delaware New Jersey New York Pennsylvania 20 06 20 04 20 02 20 00 19 98 19 96 19 94 0 19 92 Nesting Pairs 19 90 Bald Eagles
  22. 22. Wastewater treatment 90% BOD removal: $95 M/year Natural recycling capacity of wetlands reduces 3.5 lb/acre/day of BOD per day to treat remaining 10%. 463,000 acres of wetlands in Del. Estuary watershed Can treat 590 million lb of waste/year Wetlands removal costs: $2.00/lb BOD/year Wetlands replacement value: $1.18 billion/year
  23. 23. 123,000 jobs $4.3 billion wages $24 billion sales $25 million sport fishing non-market value $1 million in commercial fish landings Wetlands replacement value $638 million.
  24. 24. The Delaware River Basin in Del., NJ, NY, and Pa. contributes: 1. $25 billion in annual economic value from recreation, water quality, water supply, ecotourism, forest, agriculture, open space, and port benefits. 2. Ecosystem goods and services worth $21 billion per year, net present value (NPV) = $683 billion. 3. Over 600,000 jobs with $10 billion in wages.
  25. 25. Fish Landings $34 million $0.60/lb 58 million lb source: NMFS
  26. 26. Skiing $325 million 1,753 jobs 9 ski areas 1,005 acres 1 mgd 1.9 million ski visits source: PSAA 2010
  27. 27. Paddling $362 million 4,226 jobs Gear: $66 mil Trips: $296 mil 620,860 paddlers source: Outdoor Industry Assoc. 2006
  28. 28. Upper Del. & Del. Water Gap NRA $41.2 million 448 jobs 367,000 visitors 113 miles Natl. Wild & Scenic River Over 70,000 acres source: Cordet et al. USNPS, USFS 1990
  29. 29. USFWS (Carver and Caudill 2007) 16,000 acres 4th most visited refuge 271,000 recreational visits (2006) 80% visitors from other states 6th most valuable refuge $20.2 million to economy, food, lodging, equip., travel $13.4 million from bird watching alone 198 jobs with $5.5 million income FY06 annual budget $804,000, benefits $20.2 million Benefit-cost ratio of 23:1.
  30. 30. Canoe/Kayak/Rafting $9 million 225 jobs 37 liveries 225,000 visits source: Canoe Liveries in Del., NJ, NY, Pa.
  31. 31. Powerboating $395 million 232,000 registrations  NY, Del., Pa., NJ ranked 3rd, 7th, 17th, and 23rd in sales  source: National Marine Manufacturers Assoc. 2010
  32. 32. Fishing, Hunting, Bird Watching Fishing $576 million (18 trips/angler, $53/trip) • Hunting $340 million (16 trips/hunter, $50/trip) • Bird Watching $561 million (13/trips/yr, $27 trip) Source: USFWS 2006
  33. 33. America’s Founding Fish
  34. 34. Shad Fishing $6.5 million 63,000 trips $102/trip Pa. Fish & Boat Commission, 2011
  35. 35. Wild Trout Fishing $29 million 350 jobs (Maharaj, McGurrin, and Carpenter, 1998)
  36. 36. Delaware Water Gap Natl. Rec. Area $100 million 7,600 jobs 4,900,000 visits 490,000 local trips 3,600,000 non-local trips 490,000 motel visits 240,000 camp overnights Stynes and Sun (2002)
  37. 37. Public Water Supply State Del. NJ NY Pa. Supply (mgd) 40 284 800 679 Value ($4.78/1000 gal) $70 $495 $1,396 $1,185 1,803 mgd $3,146 million Public Water Supply Withdrawals Delaware River Basin DE, 40 mgd NJ, 284 mgd PA, 679 mgd NY, 800 mgd
  38. 38. Ecosystem Goods and Services Wetlands - $6.8 billion Farms - $4.8 billion Forests – $8.6 billion Ecosystem Services Value Delaware River Basin $ billion/yr 10 8 6 4 2 0 Del. NY NJ Pa.
  39. 39. Natural Capital Value of Ecosystems in the Delaware River Basin 10,000,000,000 $8,591 M $5,759 M 6,000,000,000 $4,823 M 4,000,000,000 at er Fo re st we tla nd s Ur ba n $412 M Sa ltw pe n O $180 M wa te r e $166 M ar in M 0 $44 M $1,055 M Fa Fr rm es la hw nd at er we tla nd s 2,000,000,000 Be ac h/ du ne $/yr 8,000,000,000
  40. 40. >600,000 jobs ($10 billion in wages)  Marine & Water-related Construction  Fishing & Aquaculture  Ship/Boat Building  Tourism/Recreation  Marine Transportation  Hunting/Fishing/Wildlife Recreation-related  Farming  Water/Wastewater Utility  Ports  Watershed Protection/Management
  41. 41. Recreational benefits of improved water quality in the Delaware Estuary (FWPCA 1966) Total Marginal DO BOD/COD % Benefits Benefits Objective Summer Residual Pollution ($1964) ($1964) (mg/l) (lb/day) Removal ($ million) ($ million) 92%I 4.5 100,000 160-350 98% II 4.0 200,000 90% 140-320 20-30 III 3.0 500,000 75% 130-310 10-10 IV 2.5 500,000 50% 120-280 10-30 V 0.5 status quo 0 0
  42. 42. River basin firm internalizes the externalities Effluent charges should be considered as a method for attaining water quality improvement. At an effluent charge of 10 cents per pound of BOD, the agency would collect $7 million per year (rent on the assimilative capacity of the stream). A charge of 8 to 10 cents per pound of oxygen- demanding material discharged produces relatively large increases in critical dissolved oxygen levels;
  43. 43. Consumer surplus is the difference between the amount that consumers actually pay and the amount that they would have been willing to pay. Consumer Surplus Supply Price ($/1000 gal) Demand Quantity (gal)
  44. 44. Marginal Costs (MC) $ Marginal Benefits (MB) qp D.O. (mg/l)
  45. 45. State Urban (%) Ag (%) Forest (%) NY 2% 11% 87% PA 23% 20% 57% NJ 17% 29% 54% DE 25% 28% 46% DRB 17% 20% 62%
  46. 46. Drainage Nitrogen Unit N River Basin Area Load Load (mi2) (ton/yr) (ton/mi2/yr) Susquehanna 27,490 73,040 2.7 Delaware 11,819 50,525 4.3 Potomac 14,658 44,707 3.0 Hudson 13,363 28,711 2.1 James 10,339 17,482 1.7 Connecticut 11,261 17,236 1.5
  47. 47. Nitrogen Loads Delaware River Basin Agriculture 14,625 tons/yr 29% Suburban/ Urban 7,073 tons/yr 14% Atmospheric Deposition 6,063 tons/yr 12% Wastewater 23,241 tons/yr 45%
  48. 48. 9% 16% 28% 29% 7% 8% 3%
  49. 49. ut ri em en tP n la n n) tio te s it $27.65 ra qu an ag uc Si (M ea re d ew de X pg ra O ys te tM U NO t. N et ro f ($/lb N) 80 ac ul tu re C ov er C La ro ps nd R et C ir e on m se en rv t at io n Ti lla ge G ra ss Bu ffe Fo rs re st R Bu es ffe to rs re d W et la nd Fo s re st Bu ffe rs en W W TP ne er M gm wa te rR 100 N wa t St or m Ai rb or St or m Per-Pound Costs of Reducing Nitrogen Pollution in the Chesapeake Bay Region $92.40 $75.00 60 40 $21.90 20 $7.00 0 $4.70 $3.30 $3.20 $3.20 $3.10 $1.50 $1.20
  50. 50. Nitrogen Marginal Abatement Cost Curve Delaware Basin N Load Reduction (million lb/yr) 50 40 Wastewater Treatment 30 Atmospheric Deposition Urban/Suburban Stormwater BMPs Agricultural Conservation 20 10 0 0 100 200 300 400 Costs to Reduce N Loads by 32% ($ million) 500
  51. 51. Increased Value (%) 20% Increased Property Value Due to Improved Water Quality (EPA 1973) 15% 10% 5% 0% 0 1000 2000 3000 Distance from Water (ft) 4000 5000
  52. 52. Resources for the Future water quality ladder (Carson and Mitchell 1993)
  53. 53. Benefits of improved water quality in the Delaware River in $2010 Category Use Recreation Commercial Indirect Use Water Supply Nonuse Existence/Bequest Total Activity Existing Value (DO 3.5 mg/l) ($ million/yr) Low High Benefits (DO 5 mg/l) ($ million/yr) Low High Viewing, Boating, Fishing Boating Fishing Shad fishing Bird/Wildlife Watching Waterfowl Hunting Swimming Beach Going Fishing Agriculture Navigation Property Value Municipal Water Supply Industrial Water Supply 4.5 159 216 0 307 1.4 0 6 34 0 81 333 196 140 5.6 350 337 6.5 325 16 0 50 34 0 81 333 196 140 55 46 129 0 15 0.1 0 2 0 8 7 13 12 8 68 334 202 3.9 33 1.6 0 16 17 188 16 27 24 17 WTP Boatable to Fishable WQ 102 151 76 115 1,580 2,025 371 1,063
  54. 54. Beneficiary Pays Approach  France: Agencies de L’eau collect user charges (redevance) from dischargers. Water parliaments advise on water use fees.  Germany: Ruhr Water Associations (Genossenschaften) financed by user charges.  Mexico: National Water Commission oversees 25 river basin councils and 6 basin commissions funded by user fees.  Portugal: 15 river basin authorities funded by user (withdrawal) and polluter (discharger) pays principles.  Australia: In 1985, Murray Darling Basin Ministerial Council organized. Funded by user/discharge fees and water trade market.
  55. 55. $2.8B $403M $4.8B $917M
  56. 56. 5 Annual Economic Value Delaware River Basin $4.2 billion $ billion/year 4 $2.8 billion 3 2 1 $0.9 billion $0.4 billion 0 Marcellus Shale Recreation/Water Gas Quality Drinking Water Supply Forests
  57. 57. Questions?

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