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Resiliency Means Business! Resources to Assist Your Water Utilities with Preparedness

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RPO AmericaRPO America

New tools from the U.S. Environmental Protection Agency, the Environmental Finance Center Network, and others have been created and updated to assist community water utilities with developing resilience in the face of heightening threats from both natural hazards and malevolent acts like cyberattacks. COGs, EDDs, RPCs and other regional organizations are well-positioned to serve as technical assistance providers to support these small and rural utilities. During this session, you’ll learn more about resiliency issues facing these systems and hear about readily available capacity building resources as part of the Environmental Finance Center Network’s programs, supported under a cooperative agreement with US EPA. 

Resiliency Means Business! Resources to Assist Your Water Utilities with Preparedness

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www.efcnetwork.org
October 18, 2022, Pittsburgh
Trainer: Jack Kartez, New England Environmental Finance Center
Water Resiliency Means Business (for you too…)
Training for small and rural drinking water utilities and roles for regionals
NADO Annual Training Conference
This program is made
possible under a
cooperative agreement
with US EPA.
The Environmental Finance Center Network:
Building TMF Capacity for Small Water Systems
EFC Network Can Give Free Tech. Assistance
• Southwest Environmental Finance Center at the University of New Mexico
• Syracuse University Environmental Finance Center
• Environmental Finance Center at The University of North Carolina at Chapel Hill
• Environmental Finance Center at Wichita State University
• Environmental Finance Center at Sacramento State
• New England Environmental Finance Center at the University of Southern Maine
• Environmental Finance Center at the University of Maryland
• Government Finance Officers Association (GFOA)
• National Association of Development Organizations (NADO)
• Mississippi State University Extension
• Environmental Finance Center West
• Great Lakes Environmental Infrastructure Center at MTU
The Small Systems Water and Wastewater Teams
www.EFCNetwork.org
Dr. Jack Kartez – Some Trainer Background
Practice Areas: Natural Hazards & Disaster Planning
Climate Adaptation Planning & Finance
Organization Development
Local Government Finance
Founding Faculty, Texas A&M Hazard Reduction & Recovery Center, 1991
Co-Founder,, Emeritus Director New England Environmental Finance Center, 2001

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Resiliency Means Business! Resources to Assist Your Water Utilities with Preparedness

  • 1. www.efcnetwork.org October 18, 2022, Pittsburgh Trainer: Jack Kartez, New England Environmental Finance Center Water Resiliency Means Business (for you too…) Training for small and rural drinking water utilities and roles for regionals NADO Annual Training Conference This program is made possible under a cooperative agreement with US EPA.
  • 2. The Environmental Finance Center Network: Building TMF Capacity for Small Water Systems
  • 3. EFC Network Can Give Free Tech. Assistance
  • 4. • Southwest Environmental Finance Center at the University of New Mexico • Syracuse University Environmental Finance Center • Environmental Finance Center at The University of North Carolina at Chapel Hill • Environmental Finance Center at Wichita State University • Environmental Finance Center at Sacramento State • New England Environmental Finance Center at the University of Southern Maine • Environmental Finance Center at the University of Maryland • Government Finance Officers Association (GFOA) • National Association of Development Organizations (NADO) • Mississippi State University Extension • Environmental Finance Center West • Great Lakes Environmental Infrastructure Center at MTU The Small Systems Water and Wastewater Teams
  • 6. Dr. Jack Kartez – Some Trainer Background Practice Areas: Natural Hazards & Disaster Planning Climate Adaptation Planning & Finance Organization Development Local Government Finance Founding Faculty, Texas A&M Hazard Reduction & Recovery Center, 1991 Co-Founder,, Emeritus Director New England Environmental Finance Center, 2001
  • 7. Certificate of Completion We are happy to provide certificates to registered attendees; but cannot guarantee that you will be able to get specific PDH or CEU credit. You must attend the entire session • You must register and attend using your real name and unique email address • Certificates will be sent via email within 30 days and are for your personal records. Again, we cannot guarantee that this session will meet your CEU or PDH requirements. If you have questions or need assistance, please contact smallsystems@syr.edu.
  • 8. • Why is there a need to help community water facilities? • What is the current “Risk and Resilience” national rule? • What are tools and concepts used for TA? • What is risk anyway? What are emerging risks? • What role is there for regionals? Session Themes: Water Utility Resilience (and you)
  • 10. It’s not just Jackson or Flint What Are the Challenges Facing Water Utilities?
  • 15. New York State alone 2021
  • 16. Funding for Public Water Supply Enterprises Operations & Maintenance • Customer Rates for Service • Property Taxes (Municipal- operated) • Realized Efficiencies Capital Investment • Revenue & G.O. Bonding • Loans-State Revolving Funds (SRF*); Other State Appropriations; Some USDA Rural Development • One-Time Grants (Some SRF has forgiveness; some opportunities to combine w/ CDBG projects) • Presidential Disaster Recovery Funding (but no better resilience) • Hazard Mitigation Grants (e.g., FEMA-BRIC, better resilience) • * SRF $ plus-ups from BIL legislation.
  • 21. Tools, Tools, Tools … Please Bear With A Brief Overview
  • 22. For a Copy, email: jackk@maine.edu Over 30 hyperlinks to tools, principles
  • 23. Links to tools are listed with guidance in your guided fact sheet (“Tools”). ASSESS PLAN TRAIN RESPOND RECOVER
  • 27. 1. Emergency Response Plan Status (yes,no, trained/exercised) 2. National Incident Management System (NIMS) [training/use] 3. Mutual Aid and Assistance Arrangements [scope, local-WARN-interstate] 4. Emergency Power for Critical Operations (EPCO) [1 or more days backup] 5. Minimum Daily Demand/Treatment (MDDT) [backup storage, 1 or more days] 6. Critical Parts and Equipment [lead time to acquire/deploy, 1 or more days] 7. Critical Staff Resilience (CSR) [percent of staff cross-trained or available for backup] 8. Business Continuity Plan (BCP) 9. Utility Bond Rating 10.GASB Assessment = asset management % coverage of assets index 11.Unemployment Rate in Service Area [% above/below national average] 12.Median Household Income [percent above/below state average] ** EPA “Vulnerability Self-Assessment Tool” – a research-based tool The Utility Resilience Index in VSAT**
  • 28. sk Emergency/Disaster Management Cycle vVs. Risk & Resilience Management
  • 29. Risk management allows entities to operate more effectively in environments of uncertainty by providing the discipline and structure in which to address these issues … risk management is interrelated with … an entity’s governance, performance management and internal controls. The process of risk management provides the rigor and structure necessary to identify and select among alternative risk responses … to reduce risk, and the methods and techniques [for selecting responses]. … The process would include support and buy-in from upper levels of management and stakeholders. SOURCE: Heavily condensed from USGAO, 2006, “Risk Management—Further Refinements Needed to Assess Risks & Prioritize Protective Measures at Ports and Other Critical Infrastructure.” GAO 06-91, p. 104. Risk Management: Broad Definition
  • 30. Basic Hazard Vulnerability Analysis (Qualitative Risk) Assets Threats
  • 32. same categories as SS checklist
  • 35. $ + X Risk Threat Asset = p X Risk to critical infrastructure such as water systems is a function of threat likelihood (probability), vulnerability of an asset, and consequences if the threat is realized. [ ] Risk is more than Vulnerability
  • 37. • Hazard: Flood Losses to Plant • Consequence Level (expected loss in event): $ 500,000 • Likelihood: 2% each year • Cost of Mitigation: $3,000,000 (present dollars) Oops! • Yet: Probability of Event Over 20 Year Asset Life = 1.0 Risk Analysis: Quantifying Decisions Into Cost-Benefit Terms (Is Difficult)
  • 39. Identifying and Prioritizing Risk (standard engineering view)
  • 40. A Basic Framework (Model) for Risk Prioritization
  • 42. Approaches to Uncertainty •No Regrets Actions • Co-benefits Vital •Staged/Phased Action •The “Freeboard” Approach—Do A Little More
  • 44. Review Potential Strategies & Cost Priorities-Drought Assets
  • 48. EPA CREAT – Climate Resilience Evaluation & Awareness Tool –
  • 50. "Resilience is a journey, not a destination” SOURCE: “Water in a Changing Climate: reducing risks, leveraging opportunities and enhancing resilience”. White Paper, March 2022: WSP Engineering and Alliance for Global Water Adaptation
  • 51. Two Focus Topics Relevant to Regionals • Cybersecurity – For Your Utilities (and for You) • Community-Based Water Resiliency
  • 58. And … In a few more steps, this scenario further escalates—all files are locked up for everybody, a co-worker sounds the alarm and eventually an IT contractor is brought in to diagnose, wipe machines and recover what files can be recovered from the last backups. Unfortunately, the intrusion also captured files used in the water utility’s SCADA system (Supervisory Control and Data Acquisition) which digitally operates and monitors water treatment processes.
  • 59. EPA’s February 2021 Re-assessment of Cyber Threat Likelihood for Water Infrastructure
  • 61. From the experts: cybersecurity user best practices • Have a Cybersecurity Emergency Response Plan • Maintain an updated inventory of hardware and software • Perform regular cyber threat and vulnerability monitoring • Establish complex passwords and a good password policy • Use multifactor authentication • Update or patch software regularly • Utilize reputable antivirus and malware software • Remove or disable unused features, ports, software, and devices • Use network firewalls • Limit remote connections to SCADA* systems • Install independent cyber-physical safety systems (cut-outs) There are other basic practices as well…see links in the resource document. * Supervisory Control and Data Acquisition systems And… most important of all train everyone in what to do … and not! See the “Guided Tools” Document for Resources, Next Steps
  • 62. Community-Based Water Resiliency Beyond Traditional Mutual Aid and State WARN (Water/Wastewater Agency Response Networks)
  • 66. Areas Ripe for Regional (COG, EDD) Help • $$$ Money (of course …) • Accessing the Federal Aid Expansion (ARPA, BIL) • Promote Use of Fiscal Health Tools (like from EFCs) • Promote Blended Projects—such as CDBG and SRF • Knowledge and Organization • Understanding of Risk • Climate Trends • Cyber Threats • Collaboration (and connection) with regional partners—CBWR, Regionalization IF appropriate (a third rail…) • Workforce, Workforce, Workforce! • Other Engagement in the CED
  • 67. Blogs
  • 69. How Can, or Should, Your Regional Organizations Engage With the Water Sector to Support Water Lifeline Resiliency?