Download - TM 7: Michigan’s Blue Economy - Detroit...Michigan’s Blue Economy. 3.0 Water Challenges in the United States ... the High Plains, groundwater recharge can take years, intensifying

TM‐7

TM‐7: Michigan’s Blue Economy

1.0 Executive Summary ABlueEconomyintegrateswaterresourceswithjobsanddevelopment.Michigan’sBlueEconomyintendstogrowbusinessesandjobsinwater‐enabledandwater‐relatedsectorsbyutilizingourabundantresources–water,academia,engineeringandmanufacturingworkforces.InInnovatingfortheBlueEconomy:WaterResearchattheURC,AndersonEconomicGroup,LLCdefineswater‐enabledandrelatedindustriesaskeyportionsofthestate’seconomythatproduce,implement,oraresignificantlyaffectedbywater‐relatedresearchandinnovation.Thisincludeswatertechnologyproducersandserviceproviders,aswellasindustriesthatareaffectedbychangesinboththequalityandquantityofavailablewaterandtoregulationsgoverningthequalityofwaterrunofforeffluent.

JohnAustin,Director,MichiganEconomicCenteratPrimaCivitas,isstudyingMichigan’sBlueEconomyandwrites:“Michiganhasauniqueopportunitytobecomealeaderinthisemerging‘BlueEconomy,’usingwaterinsmartandsustainableways,solvingglobalwaterproblems,andleveraginguniquewaterassetsforeconomicandcommunitydevelopment.”iAustinconcludesthatMichiganhasacompetitiveadvantageinwater‐enabledandwater‐relatedindustries.Forexample,Michigan’sshareofemploymentintheseindustriesisfourthinthenation.

However,Michigan’seconomy,asithasbeenhistorically,isstilldependentupontheautoindustryandmanufacturing.Attherecentpeakoftherecession,unemploymentreached14.2%.1Between2000and2010,employmentinthemanufacturingsectorlost323,500jobs;24%ofthislossoccurredbetween2008and2009.2Despiterecentgrowth,wearestillfacinganunemploymentrateof7.5%.3Therefore,itisimportanttoask:howdoweexpandwater‐enabledandrelatedsectorsinMichigantodiversifyoureconomy?Austinhasdefinedasetofcriticalsuccessfactorsforthistask:

1. LeadersandstakeholdersmusttakeactiontogrowtheBlueEconomy.

2. EnablewatertechnologyproductandservicefirmstooperateandgrowinMichigan.Watertechnologyproductsincludefilters,cleaners,bio‐digestersandinfrastructurecomponents.Watertechnologyservicesincludeengineering,ecosystemservices,infrastructuredesign,informationsystems,sensors,andfinancialservices.ii

3. Communitiesmustdedicatethemselvestowaterplace‐makinginordertoachievelong‐termeconomicbenefits.Waterplace‐makingincludesbusinessesandeconomicdevelopmentdrivenbywaterrestoration,wateraccess,andamenitydevelopment.iii

4. MakegrowingtheBlueEconomyaregionalpriority.

DWSDisoneofthenation’soldestandlargestwaterandsewerutilities.Ithasa1,079squaremilewaterserviceareaincludingDetroitand129suburbancommunities,anda947squaremilewastewater

1BureauofLaborStatistics,EconomyataGlance:Michigan,August2009.2AmericanManufacturing,InYourState:Michigan.(americanmanufacturing.org/in‐your‐state‐MI).3BureauofLaborStatistics,EconomyataGlance:Michigan,June2014.

TM‐7 Water Master Plan Update

TM‐7

serviceareaincludingDetroitand76suburbancommunities.Thewatersystemcontains3,840milesoftransmissionanddistributionmainsandthesewersystemcontainsmorethan3,000milesofsewerpipes.Asignificantregionalforce,DWSDcansupportandpromoteAustin’svisionforMichigan’sBlueEconomy.

In2009,FederalJudgeJohnFeikenspromptedDWSDtoexploreaBlueEconomyvision.InMarch2010,theTechnicalAdvisoryCommittee(TAC),thepartnershipbetweenDWSDanditssuburbanwholesalewatercustomers,establishedaBlueEconomyCommitteetoperformamarketsurveyandpublishfindings.Michigan’sBlueEconomy:SustainableResourceandBusinessDevelopmentwastheresult.Thisreportfoundthatthecapacityandqualityofourwaterandwastewatersystemsalonewouldnotattractwaterintensivecompanies.Economicincentives,afocusontechnologyinnovation,andsupportofeconomicdevelopmentinitiativesthroughoutreachandbrandingwouldberequired.iv

Intheyearssincethe2010report,DWSDhasundergonesignificantrestructuring,includingareconfiguredBoardofWaterCommissionersandanewDirector,SueMcCormick.Centraltothe“new”DWSDisanincreasedleveloftransparencybetweentheutilityanditscustomers.Theutilityiscurrentlyengagedinanaggressiveoptimizationproject,whichisalreadyyieldingsignificantsavings.

TheDirectorbelievesDWSDcanandshouldhavearoleintheBlueEconomy.SheseesDWSDas“aninnovativeprimarypartner”,andDWSDhasthepotentialtobenefitfrominnovativetechnologiesregardinginfrastructure,watermanagement,waterquality,andnewenterprisesresultingfromcollaborativeresearch.Thefollowingrecommendationsstemfromthisvision:

1. Developa10‐yearBlueEconomyPlanwithAnnualGoals

Thereareopportunitiestoexpandthesizeofthewater‐dependentindustryandcommerceintheregionalwaterservicearea.Foodandbeverageindustryisasectorthatisofparticularinterest.TheGovernorofMichiganhascalledforRegionalProsperityPlanswhichdefineintegratedregionalvisionsandplanstoleverage,redevelopandcreatemulti‐jurisdictional,multi‐facetedwaterfront,andwatershedcommunityeconomicdevelopment.vUsingitsCustomerOutreachprocess,DWSDcanfacilitateand/orsponsorthedevelopmentofBlueEconomythemedRegionalProsperityplanningwithitscustomersandotherregionalBlueEconomystakeholders.

2. ContinuetoSupportWaterStewardshipProgramsinMichigan

Watercanbeusedasadevelopmenttool,butitisalimitedresource.Sustainableandresponsibleuseofwaterisincreasinglyimportanttocommercialusers.ContinuingtosupportWaterStewardshipProgramswouldallowDWSDtofurtherdemonstrateitscommitmenttoprotectingMichigan’swaterresources.

3. LeverageDWSD’sOrganizationalOptimizationfortheBlueEconomy

DWSDisundergoingabest‐in‐classefforttooptimizetheorganization’sproductionandservicedeliveryprocess.Inorderforwater‐enabledandwater‐relatedindustriestooperatesuccessfully,sustainableinfrastructureisessential.Thesameholdstrueforattractingandretainingnewcustomers.ThisrecommendationcallsforDWSDtoestablishaBlueEconomyLiaisonwithintheCommercialOperationsGroup.Thisliaisonwouldbeabletoworkwithotheragencies,program


TM‐7

Michigan'sBlueEconomy

Communitiesaroundthe

State

Water‐enabledandRelatedIndustry

DevelopmentOrganizations Academia DWSD

offices,andcorporationstocoordinateBlueEconomyactivitiesforitshighvolumecustomers.SeeFigure1‐1.

DWSD’s2010BlueEconomyreportfocusedonwaystosellmorewater,respondingtoJudgeFeikens’objectivetoattractwaterintensivebusinessestotheregiontoalleviateunemployment.ThereportdefinedacomprehensivestrategytoaccomplishFeikens’goal.Today,fouryearslater,webelievethatthefutureofMichigan’sBlueEconomyrestsinresearch,sustainability,recreationandtourism,butnotwaterintensiveindustries.Whileunemploymentisstillamajorconcern,especiallyinDetroit,thereareimportantobstaclestoattractingwaterintensivebusinessestotheregion.Waterisnotseenasacriticalexpensefactorinmostbusinessesyet.Asforthefoodandbeverageindustries,wherewaterisacriticalexpensefactor,thestate’swaterrateslegislationdoesnotallowutilitiestoofferdiscountedwaterratestoattractbusiness.Finally,thisstudyconcludesthatamigrationofbusinessesthatarehighvolumewaterusersfromwaterstressedregionstothewaterrichGreatLakeswillnotoccurintheforeseeablefuture.

Figure1‐1:LeveragingDWSD’sOrganizationtoFacilitateBlueEconomyStakeholders


TM‐7

2.0 Introduction Withone‐fifthoftheworld’sfreshwatersupplyatourdoorstep,MichigancanbealeaderinBlueEconomyindustryandresearch.TheGreatLakes,alongwithMichigan’smanyriversandinlandlakes,havehelpedthestatetoprosperviashipping,agriculture,fishing,andproductioninthemanufacturingsector.Withover3,000milesofGreatLakesshorelineandmorethan11,000inlandlakes,waterremainscentraltoeverydaylifeinMichigan.

Michiganhasaclearcompetitiveadvantageinwater‐enabledandwater‐relatedindustries.Thisadvantagecanbeeconomicallybeneficialtotheresidentsofthestatewithoutabandoningourhistoricdedicationtowaterstewardship.DetroitandSoutheastMichiganalsohaveamplerealestate,worldclassresearchuniversities,andDWSD,whichisoneofthenation’slargestwaterutilities.ThecombinationoftheseassetspresentsMichiganwiththeopportunitytodevelopandpromoteaqualityoflifeadvantagefoundnowhereelse.ThisreportwilllayoutthewaysinwhichDWSDcansupportMichigan’sBlueEconomy.

3.0 Water Challenges in the United States Thenationisfacingaglobalwaterchallengecharacterizedbyrapiddepletionofmanyofourfreshwatersources.AccordingtotheUN,morethantwothirdsoftheworld’spopulationwillfacewaterscarcityby2025.Waterscarcityhasincreasinglybecomeaconcern,andasaresult,almostallregionsaremakingeffortstopromotesustainablewateruse.Onaglobalscale,only2.5%oftheworld’swaterisfresh,andapproximately21%ofthisfreshwaterislocatedintheGreatLakes.viAsaresultofpopulationgrowth,climatechange,andincreasedusebyagriculturalandutilitysectors,theworld’sfreshwatersupplyisrapidlydepleting.Agricultureisresponsiblefor70%ofthisusageanddemandforfoodcontinuestogrowwiththepopulation.

Climatechangeisaffectingwateravailabilityandqualitythroughincreasedevaporation,decreasedrecharge,increaseddemand,andrechargecontamination.Coupledwithlowprecipitation,inareasliketheHighPlains,groundwaterrechargecantakeyears,intensifyingtheeffectsofwaterscarcity.Waterusagetendstoincreasewithincreasesintemperature.Ournation’salreadystressedwatersupplywillonlycontinuetobecomemorestressed.WatersuppliesintheSouthandWestinparticular,mayfaceincreasedriskaspopulation(anddemand)grows,rainfalldecreasesandthelengthofdroughtsincrease.

WecanlooktotheseindicatorstopredictashiftinpopulationaswellasindustryfromtheWesttotheGreatLakes.Whilethelikelihoodofalargeshiftoccurringnowislow,developingandadvancingframeworkforaBlueEconomywouldhelppreparetheregionandthestateforafutureinflux.

3.1 The Ogallala Aquifer: A Case Study

Manyofournation’sregionsrelyonaquifersfortheirfreshwatersupply.Forexample,theOgallalaAquiferconstitutes80%oftheHighPlainsAquiferinthecentralUnitedStates.Kansas,Texas,andNebraska,thenation’stopthreegrainproducers,sitatopthemajorityoftheOgallala.The347,000km2aquiferviiistrappedbetweenacalcifiedtoplayer(impervioustogroundwaterrecharge)andalayerofbedrockbelow.Annualprecipitationislightandisoutpacedbyevapotranspirationrates.Thenaturalrechargerateissoslowthatdepletionoutpacesrecharge.InKansas,Nebraska,andTexas,theannualdepletionrateis100%to140%abovereplacement.”viii


TM‐7

SomefarmersinNorthwestKansasarecurrentlyworkingonreducingdepletionby20%overafiveyearperiod.Thisinitiative,coupledwithotherconservationtechniques(i.e.allfarmersagreeingtocutdepletionby20%immediately)couldextendthepeakyearofextractionfrom2040to2070.ixAnextremereductioninpumpingof80%wouldberequiredtoachievelongtermsustainabilityinKansas,yetthesedrasticmeasureswouldnotsupporttheagriculturalindustriesthataredependentupontheaquifer.OngoingcollaborationbetweenFederalandStateentities,aswellastheHighPlainsstates,isworkingtowardconservation;yet,itislargelyunderstoodthateventheseeffortswon’tpreservetheaquiferforever.

TheOgallalaAquiferisjustonecaseofarapidlydiminishingwatersupply.Weareseeingwaterscarcityinsomeofthenation’stopagriculturalregions,especiallyinCalifornia.WithCaliforniafacingoneofthemostseveredroughtsonrecord,GovernorBrowndeclaredadroughtStateofEmergencyinJanuary2014,anddirectedstateofficialstotakeallnecessaryactionstoprepareforwatershortages.xThe2010BlueEconomyReportsuggestedthataninfluxofresidentsandbusinessescouldoccurasaresultofwaterdepletionintheWest.Increasingscarcityhasthusfarfailedtocauseanexodusfromwater‐stressedtowater‐richareaslikeMichigan,butinthefuturethismaychange.


TM‐7

Figure3‐1:MapoftheOgallalaAquifer(Source:USGSCircular1323)


TM‐7

4.0 Blue Economy Initiatives in Michigan MichiganthoughtleadershavebeenexploringaBlueEconomyforseveralyears.Thereasonsareobvious,asnotedbelow.Thissectionsummarizesthemostvisibleinitiativestodate.

MichiganhasfreshwateraccessunrivaledoutsideoftheGreatLakesRegion,whichprovidesanabundantsupplyofwaterandcontributestoanexpansivetransportationnetwork.

World‐classacademicinstitutionsarelocatedinMichigan.SoutheastMichiganisanchoredbytheUniversityResearchCorridor(URC),consistingofMichiganStateUniversity,theUniversityofMichigan,andWayneStateUniversity.

Michiganhasanationalcompetitiveadvantageinwater‐enabledandwater‐relatedsectors.

WaterscarcityintheWestcreatesthelongrangepotentialfortheBlueEconomyinMichigan.

RealestatesuitableforcommercialandresidentialoccupancyisreadilyavailableinSoutheastMichigan.

MichiganthoughtleadershavebeenexploringaBlueEconomyforseveralyears.Thereasonsareobvious,asnotedbelow.Thissectionsummarizesthemostvisibleinitiativestodate.

MichiganhasfreshwateraccessunrivaledoutsideoftheGreatLakesRegion,whichprovidesanabundantsupplyofwaterandcontributestoanexpansivetransportationnetwork.

World‐classacademicinstitutionsarelocatedinMichigan.SoutheastMichiganisanchoredbytheUniversityResearchCorridor(URC),consistingofMichiganStateUniversity,theUniversityofMichigan,andWayneStateUniversity.

Michiganhasanationalcompetitiveadvantageinwater‐enabledandwater‐relatedsectors.

WaterscarcityintheWestcreatesthelongrangepotentialfortheBlueEconomyinMichigan.

RealestatesuitableforcommercialandresidentialoccupancyisreadilyavailableinSoutheastMichigan.

4.1 Green Jobs for Blue Waters

In2009,theGovernorofficeannouncedtheGreenJobsforBlueWatersprogram,tobemanagedbytheMichiganEconomicDevelopmentCorporation(MEDC).ThegoalofthisstatewideinitiativewastoestablishMichiganasaleaderinthewatertechnologysector.ThisinitiativeresultedfromformerGovernorJenniferGranholm’striptoIsraelin2008.TheGovernorwantedtofosterpartnershipssurroundingwatertechnologywithIsrael,aworldleaderinthefield.Michiganisaprimelocationtoresearch,test,andimplementnewwatertechnologiesandinnovations.Keyeffortsincluded:

AnMOUbetweenMichiganandIsraelforthedevelopmentofjointwatertechnologyprojects,withmatchingfundsfromIsrael.

IdentifyingandcoordinatingBlueEconomystakeholdersonastateandnationallevel.


TM‐7

DevelopmentofacomprehensivewatersectordatabasethatidentifiesMichiganwaterresourcesandMichigancompaniesinvolvedinthewatersector.

4.2 H2Opportunities

In2011,theOaklandCountyWaterResourcesCommissionerusedhisofficetoestablishH2OpportunitiestopromoteMichiganasadevelopmentgroundforwaterpurification,conservation,andutilizationtechnologies–allindemandaroundtheworld.H2Opportunitieshasnostaffandpaysnosalariesbutgoesafterstate,federalandfoundationgrantsthatbecomecapitaltoattractcompaniessuchasIsrael‐basedMiya–developeroftheleak‐detentionsystem–toMichigan.H2OpportunitieshasbroughtthreeothercompaniestoMichigan.Oneistestingaprocesstoextractelectricityfromwastewater.Anotherisdevelopingmodularwatertreatmentequipmentthatwouldbeuseful,forexample,inresidentialareaswheresepticcapacityhasbeenexhausted.Ademonstrationsystemisbeinginstalledatasprawlingyear‐roundcampnearEvartinthenorthernLowerPeninsula.Yetanothercompanyisamplifyingforwatertreatmentthemedicaltechnologythat’susedtoinjectoxygenintobloodwithoutcausingdangerousbubbles.xi

4.3 Macomb County Blue Economy Strategy

MacombCountyhastraditionallybeenanationalleaderinwater‐relatedbusinessandisknownforitsnearly32milesofLakeSt.ClaircoastlineandtheClintonRiver,withitsmanytributaries.UnderthedirectionofMacombCounty’sExecutiveMarkHackel,anewinitiativeisunderwaytocelebratethemanyaspectsthatareknownasMacomb’sBlueEconomy.Withover50activemarinas,aworld‐classrecreationalboatingandfishingindustry,andnumerouspublicandprivateaccesspointsprovidingmanyotherwaystoenjoythewater,MacombCountyhasalargeBlueEconomyopportunity.TheMacombCountyDepartmentofPlanning&EconomicDevelopmentisdevelopinglandandwaterplanningprogramsandprojectstocreatesustainableoutcomesthatwillbeexperiencedforgenerationstocome.xii

4.4 University Research Corridor

TheUniversityofMichigan,MichiganStateUniversityandWayneStateUniversityformtheUniversityResearchCorridor(URC).TheURCvisionis“touniteandlead,playingakeyroleincreatingavibrantMichiganeconomythatleveragestheintellectualcapitalofitsthreepublicresearchuniversities,toworkproactivelytoattracttheknowledgeeconomybusinessesthatcanfindtheresearchactivitythatfeedsnewenterprise,educatestheworkforceandplantstheseedsforthenewindustriesoftomorrow.”

TheURCisamajorcontributortoMichigan’sBlueEconomy.TheachievementsandgoalsoftheURCaredetailedinInnovatingfortheBlueEconomy:WaterResearchattheURC,areportwrittenbyAndersonEconomicGroup.Thereport,presentedattheDetroitRegionalChamber’s2014MackinacPolicyConference,revealedthattheURCreceivedapproximately$300millioninawardsforwaterrelatedresearchandoutreachbetweentheyearsof2009and2013.Annually,3,400+graduatesemergefromtheURC,andspecializeinwater‐relatedindustriesandrelatedareasoffocusincludingGreatLakesrestoration,watermonitoringandfilteringtechnologies,agriculturerelatedresearch,policyresearchrelatedtosolvingforwaterrelatedissues,andclimateandweatherresearchontopicsconcerningwaterquantityandquality.


TM‐7

4.5 Governor Snyder’s Water Strategy

Michigan’sWaterStrategyresultedfromGovernorSnyder’srequesttocreateavisionformanagingwaterqualityandquantityinthefuture.ThePreliminaryFrameworkforMichigan’sWaterStrategywaspublishedin2013bytheOfficeoftheGreatLakesandtheMichiganDepartmentofEnvironmentalQuality.Thiswaterstrategyaimstosteerwater‐relatedpolicyinallformsforthenext30yearstowardsustainable,beneficialuse.

TheOfficeoftheGreatLakesalsocommissionedawhitepaperentitledWater,Michigan,andtheGrowing“BlueEconomy.”WrittenbyJohnAustin4,DirectoroftheMichiganEconomicCenter(MEC)atPrimaCivitas,thestudydefinestheBlueEconomy,howwaterhasbeenimportanttooureconomy,andhowitwillbesignificantinthefuture.ThereportalsooutlinestheopportunitiesandchallengesfacingMichiganinitsefforttofueleconomicgrowthwithwater.AccordingtoAustin,Michigancanbealeaderinwaterresearch,education,conservation,clean‐up,management,andnewwater‐technologyenterprise,alongsidemakingourlakesandriversthecenterpieceofcommunityeconomicdevelopment.

Austin,theMEC,andGrandValleyStateUniversity’sAnnisWaterResourcesInstitute,arenowworkingonanewreport.Thereportprimarilyfocusesonthreeareas:waterresearch,largevolumewaterusers,andwatertechnologyproductsandservices.ContributorstothereporthaveidentifiedBlueEconomyinitiativesaswellasfurtheringAnderson’sindustryresearch.ThereportwilllaythefoundationfororganizingandpromotingtheBlueEconomyInitiativeincommunitiesacrossMichigan.

AccordingtoMarySueColeman,formerPresidentoftheUniversityofMichigan:

TheURCismakingimportantcontributionstointerdisciplinaryresearch,includingworkbeingdoneintheUnitedStatesandCanadathroughtheCouncilofGreatLakesGovernors,theGreatLakesRestorationInitiative,andtheInternationalJointCommission.

4.6 DWSD’s Blue Economy Thought Leadership

TheconceptofaDWSDBlueEconomystrategyoriginatedinitiallyin2009inthechambersoftheHonorableJudgeJohnFeikens,whofosteredadialoguewithregionalstakeholderstoexplorethepossibilitiesoftheBlueEconomy.OneofthekeyoutcomeswasarequestforDWSDtotakealeadershiprole.DWSDcontractedalocalconsultingfirmtoproduce:AProposalforaBlueEconomy.AsMichigan’sautomotiveeconomycontracted,waterusageintheSoutheasternMichigandeclinedalmost20%.ThisproposalfocusedonattractingwaterintensivebusinessestogrowwaterusageintheDWSDsystem.

InMarch2010,theTAC,theDWSD‐suburbanwatercustomerpartnershipthathasspentseveralyearsbuildingacollaborativerelationshipbetweentheregion’smajorsupplierofwateranditscustomers,charteredaBlueEconomyCommitteetoconductamarketsurvey.ThecommitteedevelopedascopeofworkthatwouldsurveyregionalbusinessesthatmighthaveaninterestinbuildingaBlueEconomyandmulti‐nationalcompaniesthatusedhighvolumesofwaterintheirproductionprocesses.

RegionalinterviewsfocusedoncurrentMichiganbusinessconditions,corporatedecisionsonlocatingnewplantsandthecurrentperceptionofDWSDwaterandwastewaterquality,costandservice.These

4JohnAustinisthearchitectofthe‘BlueEconomy’inMichigan.Inhis2007studyHealthyWaters,StrongEconomy,AustinmakestheargumentthatutilizingtheGreatLakesresources,bothphysicalandintellectual,foreconomicgrowthisaviablestrategyforMichigan.


TM‐7

interviewsprovidedafundamentalunderstandingofcorporateprioritiesandhowwaterfitsintothosedecisionsindifferentmarketsectorsaswellastheimportanceofwaterinnovation.Threemajorpointsemerged:

DWSDwaterandwastewatersysteminfrastructurealoneisinsufficienttoattractnewplantsandfacilitiestoincreasesystemusageandregionalemployment.

DWSDwaterandwastewatersysteminfrastructurecanbeaneconomicdevelopmenttool.

SoutheastMichigancanbranditselfasasustainablewaterinnovationhubwithacademic,business,governmentandregionaleconomicdevelopmentcollaboration.

TheinterviewsalsorevealedabroadrangeofinterestintheBlueEconomyconcept.Thefollowingareconsistentthemesandrepresentativecommentsfromthesecompanies:

SoutheastMichiganwater,wastewaterandenergyinfrastructureisacompetitiveadvantage,butcorporateawarenessoutsideofMichiganislimited.

Sustainablewaterdevelopmentbrandingcouldbeimportantto“GreenCompanies.”

Companiesrecognizetheneedforwater,wastewaterandstormwaterinnovation,andareespeciallyimportanttomostoftheinterviewset,especiallythosecompanieswhichconsiderthemselves“HighTech”.

Michigan’senvironmentalacademicprowess,regulatoryopennessandworld‐classinfrastructuresupporttheBlueEconomyconcept.

5.0 Blue Economy Initiatives outside of Michigan 5.1 Ontario: Blue Economy Initiative

RoyalBankofCanada(RBC),theWalterandDuncanGordonFoundation,andtheCanadianWaterNetwork(CWN)foundedOntario’sBlueEconomyInitiative(BEI)in2011.Ontario’sguidingvaluesfortheBEIare:sustainability,transparency,efficiency,stewardship,andleadership.TheBEIhasestablishedfourfocusareas:

1. ThevalueofwatertoCanada’seconomy

2. Globalwateropportunities

3. Thevalueofwaterinagriculture/goodproduction

4. Innovativesmartwaterandwastewaterinfrastructure–“cityofthenearfuture”xiii

TheBEIperformsresearchaswellasprojectssurroundingthesefocusareas.Todate,theBEIhascompletedfivepublicationsregardingOntario’sBlueEconomyprocess.Thereportsareavailableat:http://www.blue‐economy.ca.

CanadaisoneoftheUnitedStates’largesttradingpartnersandisthenumberoneimporterofMichiganexports,accountingfor44%or$12.2billionworthofexportsin2013.MichiganandCanadatrade


TM‐7

upwardsof$204millioningoodsandserviceseachday.xivEffortsbytheMichiganEconomicDevelopmentCorporation(MEDC)tosolidifythistradepartnershipincludeestablishingaCanadatradeofficepartneredwiththeCouncilofGreatLakesGovernors.ThereisanopportunityforcollaborationbetweenMichiganandOntario,sharingbestpracticesandinnovativetechnologiesinthewaterenabledandwaterrelatedindustries,furtherenabledbytheproximitybetweenDetroitandWindsor.

5.2 Milwaukee: Global Compact City

In2009,TheUnitedNationsdesignatedMilwaukeeasaGlobalCompactCity;adesignationforselectcitiesthat“showcaseprogressonissuesthatinvolvehumanrights,environmentalism,healthorlaborstandards.”Milwaukeeisoneoftwocitiesintheworldthatfocusesonwater.Jamshedpur,Indiaistheother,specificallydedicatedtoindustrialsewagetreatmentprojects.Thereare13membercitiesintheGlobalCompactCitiesProgram.ThisdesignationgivesMilwaukeeglobalrecognitionasaninternationalhubofwatertechnology.xv

In2009,TheMilwaukeeWaterCouncilwasestablishedbyagroupofbusinessandgovernmentleaders,andacademiaintheMilwaukeearea.Itisanon‐profitorganizationdedicatedtothepromotionandadvancementofwatertechnologyandinnovation,research,economicdevelopmentandentrepreneurship.TheWaterCounciladvanceswatertechnologyandinnovationthroughBusiness,Research,Entrepreneurship,andWisconsin(BREW).BREWisanacceleratorprogramforfreshwaterstartupsthatprovidescapital,networking,andtrainingforentrepreneurs.

EachyeartheWaterCouncilhostsaglobalWaterSummit,agatheringofindustry,watersectorandgovernmentleadersandprofessionals(SeeAppendixA).TheWaterSummitisnotonlyanetworkingandinformationsharingopportunity,butanopportunitytopushwaterissues,challenges,andachievementstotheforefront.Thethemeofthe2014WaterSummitwasThrivingintheGlobalWaterEconomy.ThespeakersandbreakoutsessionsattheWaterSummithighlightedthefactthatfreshwaterchallengescannotbeaddressedinisolation.ThreemaintopicareasemergedfromtheWaterSummit:

Interconnectednessandholisticrelationshipsbetweenthewatersector,privatesector,publicsector,government,andacademiaareessentialforasuccessfulBlueEconomystrategy.

Acultureofacceptancewithregardtochangeandinnovationmustbeinstilledinthewatersector.

Waterscarcityisacrisisaffectingournation,notjustdevelopingnations.Wemustlearnfromourcrises,addressingboththerisksandopportunitiesinvolved.

TheSummitimpresseduponattendeesthattheymustbewillingtochange.Whilewaterscarcitydoesnotappeartobeapressingissueforourregionnow,itmaybeinthefuture.AsKimMarotta,DirectorofSustainabilityatMillerCoorssaid:“Waterisabout80%investmentinhumancapital,but20%iscultural.”Changedoesnothappenovernight,nordoesithappenalone.PrecedentshowsthatcollaborationinteractionbetweenvariousactorsandgroupsfueltheinnovationrequiredtobuildaBlueEconomy.

6.0 Blue Economy Food and Beverage Regional Market Analysis ThestateofMichiganemploys718,704peopleinwaterrelatedindustries,xviaccountingfor21.3%oftotalemploymentinthestate.Over80industriesandsubsectorsoftheseindustriesmakeupthewater‐


TM‐7

enabledandwater‐relatedjobsinMichigan.(DWSDdesignatescompaniesinthesesectorsasSignificantIndustrialUsers.)ThissectionexploresaneconomicdevelopmentstrategytargetingtheseuserstoaugmentdemandforDWSDwaterservice.

Waterisaprimaryingredientinfoodandbeverageindustryproducts.Mostbeveragemanufacturersusemunicipalsourcesforwater.Softdrinksarecomprisedof90‐99%water,andsoftdrinkproductionrequiresstrictqualitystandards.xviiInadditiontothedrinkitself,thebottles,labelsandpackagingconsumewaterduringtheproductionprocess.ForNorthAmericancompanies,ittakes1.39literstomake1literofwater.That’slessthantheglobalaverageofaliterofsoda,whichrequires2.02litersofwater.xviiiWithsuchalargewaterfootprint,softdrinkproducersneedabundantandhighqualitywaterreadilyavailable.

Inordertoanalyzethisopportunity,wecomparedMichigan’sfoodandbeveragemanufacturingdatatosimilardatafromtwocategories–WaterRichandWaterStressedstates.TheWaterRichcategoryincludesOhio,Illinois,IndianaandWisconsin.TheWaterStressedcategoryincludestheHighPlainsandCalifornia.TheHighPlainshasasignificantmarketshareofthefoodmanufacturingindustryandislargelysuppliedbytheOgallalaAquifer.Aloomingconcernforthisindustryisaquiferdepletion(asnotedpreviously).StudyingmarketdataintheWaterStressedcategoryprovidessomeinsightintohowmuchmarketsharemaybeavailabletoMichiganifwaterscarcityturnsintoatruecrisis.

6.1 Water Stressed Category – High Plains5 and California

AsshowninTables6‐1and6‐2,Michiganisnotaleaderinemploymentorestablishmentsineitherindustry,butdoeshaveasizeablepresenceinbothsectors.Californiaclearlyhasthelargestmarketshareoffoodandbeverageproduction,packagingandbottling.YetfreshwatersuppliesinCaliforniahavebeeninperilforyears.Whilepercapitadailywaterusewithinthestatehasbeendecliningoverthelasttwoandahalfdecadesxix,populationgrowth,persistentdrought,andpoorwatermanagementarestressingonlimitedfreshwaterresources.

Table 6‐1: 2012 Food Manufacturing Industry – Michigan, High Plains and California

State Michigan Kansas Nebraska Texas California

No. of establishments 780 282 293 1,666 3,421No. of paid employees 29,443 28,101 34,712 89,341 152,205Annual Payroll ($1,000) 1,259,285 1,037,688 1,307,847 3,073,518 6,395,047

DataSource:U.S.CensusBureau,CountyBusinessPatterns,2012Note:numberofpaidemployeescalculatedforpayperiodincludingMarch12

Table 6‐2: 2012 Beverage Manufacturing Industry (aggregated)6 – Michigan, High Plains and California

State Michigan Kansas Nebraska Texas California

No. of establishments 131 25 25 255 1,381No. of paid employees 3,810 546 373 8,474 36,921Annual Payroll ($1,000) 169,230 23,369 12,660 447,710 2,088,953


5OftheHighPlainsStates,thetopthreeproducersareKansas,Nebraska,andTexas.6Seelistofreferencesforbreakdownofsoftdrinkandbottledwatermanufacturing.


TM‐7

6.2 Water Rich Category– Great Lakes States

ResultsaresimilarwhencomparingMichigantoneighboringGreatLakesstates.Michigandoesnotdisplayadominantpresenceineitherthefoodmanufacturingorbeverageindustries.Despitethisfact,thetwoindustriesaccountformorethan33,000jobsinMichiganalone.Forthisreason,economicstrategiesshouldremainfocusedonmaintainingtheprosperityoftheseindustries.

Table 6‐3: 2012 Food Manufacturing Industry – Great Lakes States

State Michigan Indiana Illinois Ohio Wisconsin

No. of establishments 780 478 1,162 910 955No. of paid employees 29,443 33,291 70,925 52,187 62,002Annual Payroll ($1,000) 1,259,285 1,397,914 3,222,596 2,187,497 2,651,312


Table 6‐4: 2012 Beverage Manufacturing Industry (aggregated)7 – Great Lakes States

State Michigan Indiana Illinois Ohio Wisconsin

No. of establishments 131 77 114 117 100No. of paid employees 3,810 2,408 3,447 4,496 3,019Annual Payroll ($1,000) 169,230 89,252 164,600 219,845 144,150


6.3 Breaking out the Beverage Industry

Bychartingthepercentoftotalemploymentofthebeveragemanufacturingindustrybystate,wegainaclearerpictureoftheimpactthesectorhasoneachstate’seconomy.ThepercentageoftotalemploymentoccupiedbythebeveragemanufacturingindustryinCaliforniaismorethantwotimesthesecondhigheststate(Wisconsin).ThismaycreateopportunityforMichiganandotherWaterRichRegionstocapitalizeuponbeveragemanufacturingbusinessesthatareforcedtoleaveCaliforniaforawaterrichstate.

7Seelistofreferencesforbreakdownofsoftdrinkandbottledwatermanufacturing.


TM‐7

Figure6‐1:BeverageManufacturingIndustryEmploymentforFY2012(Source:U.S.CensusBureau,2012ACS1‐yrestimates,2012CountyBusinessPatterns)

6.4 U.S. Food & Beverage Manufacturing Sector Performance

ContributorstoDWSD’s2010BlueEconomyReportwereaskedwhetherornottheyfeltmarketsweresaturatedwithrespecttofoodandbeverageindustries.AccordingtoJayRichardson,“Wecertainlyarenotsaturatedandthefactisthattheopportunityisglobalforwaterandtechnologyprocesses.”ButasshowninChart2,thegrowthshowninbothsectorsfollowing2008isminisculeandrepresentspost‐recessionrecovery.Thus,improvementsinperformancebeginningin2009shouldnotbeviewedasenoughgrowthtosuggestthatMichiganshouldaggressivelypursuefoodandbeveragemanufacturers.


TM‐7

Figure6‐2:U.S.FoodandBeverageManufacturingSectorPerformance2007‐2012(Source:U.S.CensusBureau,AmericanFactFinder,CountyBusinessPatterns,2007‐2012)

6.5 Examples of Current Blue Economy Opportunities

VernDaleProductsInc.isanexampleofanexpandingDetroitbasedfoodprocessingcompany.VernDaleproducesroller‐driedwholemilk,aprimaryingredientinhighqualitychocolate.PromptedbyEuropeancustomers,thefamilyownedbusinessisbuildinga$20million82,000squarefootplantinDetroittoaccompanytheircurrentplantwhichisalsolocatedinthecity.VernDaleProductsistheonlyroller‐driedmilkproducerinthenation,andthemajorityofthemilkusedintheirproductionprocessisMichiganmade.SomeforeignchocolateproducersareexpandingtheirU.S.operations,creatingnewopportunitiesforVernDaleProducts.

Distilleriesandbreweriesarealsogrowingintheregion.ThumbKnuckleLLCandTwoJamesSpiritsaretwonewoperationsopeningdistilleriesandtastingroomsinpreviouslyvacantwarehouses.TwoJamesSpirits,locatedinCorktown,isthefirstlicenseddistilleryinDetroitsinceprohibition,andopeneditsdoorsin2013.ThumbKnuckleDistilleryLLC,locatedinHazelPark,expectstoopenitsdoorsinOctoberof2014ina12,000squarefootspaceinanabandonedlumberyard.

6.6 Conclusion: Food/Beverage Market Not Driver for Blue Economy

TheaforementionedexamplesillustratethechallengeofpursuingafoodandbeveragesectionexpansionstrategyinMichigan.BothcompanieswillprobablynotbecomesignificantpurchasersofDWSDwater.ThefollowinganalysisofDWSD’ssignificantindustrialusersprovidesfurtherinsight.

Today,DWSD’ssignificantindustrialusers’totalaveragedailyflowis2.2MGD.Thisequatesto0.4%oftheaveragedaily2013waterproductionof546MGD.Twentythreecompaniesareresponsibleforthe2.2MGDdemand.Inordertoreachanominalgoalof25MGDby2035,DWSDwouldhavetoincrease


TM‐7

salesofwatertohighvolumeusersby22.8MGD.TherearefourfoodandbeveragecompaniestodayintheDWSDserviceareathatuse187,000to395,000gallonsperdayofwater.Theregionwouldhavetoattractapproximately80morecompaniesofthissizetoachievethe25MGDgoal.ThisunlikelyscenariotranslatestobringingfournewcompaniesperyeartoSoutheastMichiganforthenext20years.

7.0 Recommended Blue Economy Strategies for DWSD Growingpopulationsandlong‐termunsustainabilityofwaterdemandintheWesternU.S.areleadingindicatorsthattheBlueEconomycouldbringmoreeconomicdevelopmenttoSoutheastMichigan.Michiganstandsatthefrontierofsupplyingwater‐enabledandwater‐relatedindustries.Yet,evenwithabundanthighqualitywater,wecannotrelyonWesternwaterscarcityforeconomicgrowth.ItmaytakedecadesforaneconomicshiftfromwaterstressedregionstowaterrichregionslikeMichigan.DWSD’scapacityandMichigan’sfreshwatersupplycannotbedisputed,yetthesearenottheonlyfactorsinabusinessrelocationdecision,evenforahighvolumewateruser.Transportationcosts,taxincentives,developmentrequirements,laborcosts,andcostofwater/sewerservices,arekeyfactorsinrelocationorexpansiondecisions.Therefore,followingrecommendationsfocusonaholisticefforttogrowSoutheastMichigan’sBlueEconomy.

1. WaterResearchCollaboration

TheemergingWaterMasterPlancallsforrepurposingoneormoreofDWSD’sfivewatertreatmentplants.UtilizingaportionofwatertreatmentplantasaResearchCenterpresentsauniqueopportunitytorealizeseveralofthecriticalsuccessfactorsofMichigan’sBlueEconomy.Forexample,theMichiganEconomicCenterandAnnisWaterResourcesInstitutevisioncallsforconcentratedcollaborationstodevelopandcommercializekeywatersolutions.DWSDcanprovidethephysicalcapitalforthesecollaborationsintheformofaWaterResearchCenter.

ThededicationofaportionofaplantasaResearchCenterwouldbeacatalystforfacilitatingcollaborationbetweenacademia,andthepublicandprivatesectors.Responsiblewateruseineconomicdevelopmentthroughadvancesininnovationandwatertechnologycouldgofromconceptualtopractical.Creatinganinnovationandtechnologyhubwhereuniversitiesandcollegesofallcaliberscancometogetherwithprivateindustrywillfacilitateknowledgespillovers,advancesinwaterresearchandinnovation,andtrainingwaterresourceexperts,allwhileincreasingcoordinationamongcurrentwaterresearchprograms.Austin’sreportrecommendscreatinga“PureMichiganWaterTechnologyAcceleratorxx,”similartoTheWaterCouncil’sGlobalWaterCenteracceleratorprogram.AWaterResearchCenterhasthepotentialtobeaspringboardforthisproposal.

Thiscornerstonesuggestionhasaprecedent.ProfessorKevinFitzsimmons,withtheUniversityofArizonaCollegeandAgricultureandLifeSciences,hassubmittedaproposaltoPimaCounty,Arizonatorepurposeadecommissionedwastewatertreatmentplantasaresearchcenter.Currentlythecountyhasearmarked$32milliontodemolishthewastewaterplant.Iftheproposalisapproved,thefacilitywouldbeusedforaquacultureandwateruseresearch.ThisplanwasinspiredbyAquilaInternational,aVersaillesaquaculturecompany,whichraisesfishindecommissionedwastewatertanksandlagoons.

KentuckyStateUniversityhashadsuccessinestablishingsustainableaquacultureoperationsatadecommissionedwastewatertreatmentplant.Thisreuseispurportedtocreatejobs,eliminate


TM‐7

demolitioncoststhatwouldbeincurredbymunicipalities,andgeneraterevenueforthecommunitiesthesereclaimedwaterfacilities(RWF)arelocatedin.Furthermore,buildingthenewfacilitiesadjacenttothereclaimedfacilitiesallowsreclaimedwatertobeusedinaquacultureoperations.

2. Developa10‐yearBlueEconomyPlanwithAnnualGoals

ThenotionofaMichiganBlueEconomyhasbeengainingtractioninrecentyears,sparkingactionfromvariousinstitutionsandprominentgovernmentalfigures.

UniversityResearchCorridor–TheURCspecializesinwaterinnovationandtechnology.Morethan3,400studentsgraduatefromtheURCinstitutionseachyearpreparedtoworkinwaterenabledandwaterrelatedindustries.

MacombCounty–The“MacombCountyBlueEconomyStrategicDevelopmentPlan,”releasedin2012,setforthfivedetailedrecommendations,tailoredtowardtourismandrecreationalimprovementsanddevelopments.Threecoreprinciplesguidedtheprocess:environmentalstewardship,economicdevelopment,andqualityoflife.

GreatLakesRegionInitiatives–TheCouncilofGreatLakesGovernors,CouncilofGreatLakesIndustries,GreatLakesRestorationInitiativeandtheGreatLakesCommissionareallworkingtocoordinatetheGreatLakesstatesandprovincestofacilitateenvironmentalstewardship,protection,andeconomicdevelopmentsurroundingpreciousfreshwaterresources.

MichiganEconomicCenteratPrimaCivitas–JohnAustinandGrandValleyStateUniversity’sAnnisWaterResourcesInstituteareadvancingtheworkofMichigan’sWaterStrategyandlocalBlueEconomyInitiativestoencourageparticipationacrossthestate.

DWSDcanpromotecollaborationamongstthesevariousinitiativesbysupportingandencouragingthedevelopmentof“RegionalProsperityPlans’8calledforbyGovernorSnyder.

Theplancanstartwithanalysisoftheexisting23largefoodandbeveragecompaniescurrentlybuyingDWSDwater.Thesecompaniescollectivelyuse2.2milliongallonsofwaterdailyandemployapproximately2,900people.Agoalcanbeestablishedforincreasingwaterusebyfoodandbeveragecompaniesandotherwater‐dependentindustry.DWSD’sindustrialwatersaleshavefallenfrom44MGDto23MGDinthelast15years.Agoalrestoresmuchofthe44MGDindustrialwaterovera10to20‐yearperiodwouldbeambitious.Inadditiontohighqualityandabundantwatersupply,theregionalwaterserviceareahasastrongtransportationnetworkandavailableland.GrowingwaterscarcityinotherpartsofthecountrycoulddrivegrowthforBlueEconomybusinessinMichigan.

DWSDhasconsiderableexpertiseincreatingandfacilitatingregionalcollaboration.In2003,DWSDinitiatedapartnershipprocesswiththeirSuburbanWholesaleWaterCustomersinconjunctionwiththedevelopmentoftheWaterMasterPlanUpdate.

ATechnicalAdvisoryCommittee(TAC)wasestablished,withsixco‐chairs,fivefromthesuburbsandonefromDWSD.TheTACmeetsquarterlyandconductsitsbusinessaccordingtoby‐laws,whichweredevelopedjointlybyDWSDandthecustomersandapprovedin2008.Asignificantaccomplishmentincludesjointlydevelopinganew30‐yearmasterwatercontract,whichhasbeensignedby75suburbancommunities.


TM‐7

(Note:TheWaterCouncilandthecityofMilwaukeealsoprovideagoodbaselineforcollaborativeaction.Milwaukeehashadsuccessinestablishingaunifiedwaterhub,bringingtogetherprivatebusiness,academicinstitutionsandthewatersector.)

3. ContinuetoSupportWaterStewardshipProgramsinMichigan

Michiganhas3,288milesofGreatLakesshoreline,andnearly21%oftheworld’sfreshwatercanbefoundintheGreatlakes.Yet,theworldisfacingawatercrisis,withmorethan2/3oftheworld’spopulationexpectedtofacewaterscarcityby2025.Usingourresourceswiselyandpromotingsustainabilitywillhelpcarryourregionintothefuture.BlueEconomystewardshipwillhelpmoveMichiganintoaneconomicallyandresourcevibrantfuture.Watercanbeusedasadevelopmenttool,butwecanusewatersmartly,improvingwaterqualityandavailabilityaswell.ABlueEconomythatfitswithanenvironmentallyconsciousvisionofourstateaswellaswaterstewardshipwouldbeideal.KeywaterstewardshipinitiativesincludetheMichiganWaterStewardshipProgram(MWSP)andtheMichiganCleanWaterCorps(MiCorps).

4. LeverageDWSD’sOrganizationalOptimizationfortheBlueEconomy

DWSDisundergoingabest‐in‐classefforttooptimizetheorganization’sproductionandservicedeliveryprocesses.HelpinghighvolumewateruserswithwaterefficiencyandreducingtheircostsiscentraltoAustin’svisionforgrowingMichigan’sBlueEconomy.

CreatinganeducationalinterfaceforDWSDcustomers,particularlycommercialusers,onsharingbestpracticessurroundinguseandtreatmentwillaidthesecustomersinbecomingmorecosteffective,moresustainable,andbetterstewardsofwater.Additional,recommendationsforworkingwithcustomersinclude:

EstablishingaBlueEconomyLiaisonwithintheCommercialOperationsGrouptoworkwithandaddressconcernsofSignificantIndustrialUsers.

Demonstratethebenefitstocustomers,theenvironment,andtheeconomythatresultfrominvestinginsustainableinfrastructure,andmaintainingtheseassetsintothefuture.

Trackindicatorsofemploymentgrowthandwatersalesinindustrial/commercialsectorsduringthe5‐yearreviewsoftheWaterMasterPlan.

TM‐7

Appendix A: Water Summit 2014 Summary Report

AlysonBove,ProjectInnovationsGraduateInternattendedTheWaterCouncil’sWaterSummit2014inMilwaukee,WisconsinonJune18and19.CarlJohnsonofCDMSmith,theDWSDWaterMasterPlanUpdateProjectManagerdirectedBovetoattendtheWaterSummitinordertomakecontactwithseveralactorsinMilwaukee’swatersector.

InreferencetotheBlueEconomy,MilwaukeepresentsaparallelcasetoMichigan.StrategicallylocatedontheshoresofLakeMichigan,theabundanceoffreshwatersurroundingMilwaukeehasprovidedconsiderableeconomicadvantages.Thecitywasfoundedonwetindustriessuchasbreweriesandtanneries;butmostofthoseindustrieshaveleftthecity,leavingitswaterutilitywithexcesscapacity.Milwaukeedidnotestablishitselfasaglobalwaterhubovernight.Ittookyearsofcommitmentandcollaborationtocreatechangeanddevelopment.IndevelopingitsBlueEconomy,Milwaukeereliedonprivatesectorleadership.ThiscommitmentfromprivateindustryacceleratedthedevelopmentofMilwaukee’sglobalwaterhub,aswellastheGlobalWaterCenter.

Keynotes and Speakers: DeanAmhaus,President&CEO,TheWaterCouncil

RichMeeusen,President,CEO,&Chairman,BadgerMeter,Inc.andCo‐Chair,TheWaterCouncil

GlenDaigger,President,InternationalWaterAssociationandSeniorVicePresident&ChiefTechnologyOfficer,CH2MHILL

Dr.LawrenceSpinelli,DirectorofOutreach&PublicAffairs,OverseasPrivateInvestmentCorporation(OPIC)

LisaDownes,DirectorofFreshwaterStewardship,NorthAmerica,TheNatureConservancy/AllianceforWaterStewardship

BrigadierGeneralDanielR.Ammerman,Commander,353rdCivilAffairsCommand

PaulJones,ExecutiveChairman,A.O.SmithCorporationandCo‐Chair,TheWaterCouncil

PaulReiter,StrategicCounseltotheInternationalWaterAssociationandPresident,ReiterIWS

DavidEJGarman,Dean,SchoolofFreshwaterSciences,UW‐MilwaukeeandPast‐President&FormerChairman,InternationalWaterAssociation

ElizabethThelen,DirectorofEntrepreneurship&TalentandDirectorofTheBREW–TheWaterCouncil

LeeSwindall,VicePresident,BusinessandIndustryDevelopment,WisconsinEconomicDevelopmentCorporation

GovernorofWisconsin,ScottWalker

TM‐7 Michigan’s Blue Economy

TM‐7

Workshops Attended: 1. AWaterUtilityCEO’sGuideforBusinessGrowthThroughMaximizingROI:Presenter:Tim

Waldron,Chairman,InternationalWaterAssociationWaterLossSpecialistsGroup&FormerCEO,WideBayWaterCorporation

TimWaldron,inkeepingwiththethemeofinnovatingforchange,declaredthatthewaterindustryisverytraditional.Keycommentsincluded:tochangethingsisnotalwayseasy…weneedtolookattheproblemsdifferentlyandacceptchange...motivationtochangemustbegivenbyleaders...thejobofawaterutilityCEOistoinspireandgivevision...weareconstantlydealingwithcomplexity,and asawholestandtobenefitfromaddressingthesecomplexitiesinnewways.

2. InvestinginTheWaterCouncil’sFuture:BuildingaBrightBlueFutureforInnovationExchange:Presenters:DeanAmhaus,President&CEO;TheWaterCouncil,DavidEJGarman,Dean,SchoolofFreshwaterSciences,UW‐Milwaukee;DouglasSchaedler,President&CEO,inno360Inc.;MichaelJTurilloJr,Co‐Founder&Chairman,inno360Inc.andCo‐Founder,InnovationExchange,LLC.

ThegoalofthispaneldiscussionwastopromotetheInnovationExchange,acollaborativeplatformforresearchandknowledgesharing.TheExchangeallowsexistingtalentsinMilwaukeetoconnectwitheachotherandalsowithtalentsaroundtheworld,attackingbarrierserectedbyintellectualpropertyconcernsinboththeprivatesectoraswellasacademia.Theplatformcreatesa‘non‐threateningatmosphere’anda‘collaborativeenvironment’fordiscovery.

3. NOWATER,NOBEER!Presenter:KimMarotta,DirectorofSustainability,MillerCoors

UponmergingofMillerandCoorsin2008,thejointcompanystrengtheneditssustainabilityinitiativebyreducingwaterusageinproductionaswellasexploringinnovativetechniquesforreducingwaterwasteoncorporateandfamily‐ownedsourcefarms.AsDirectorofSustainabilityforMillerCoors,KimMarottadeclaredthatwaterisnotonlyanissueforthecompany,butforeveryone:“Collaborationandcooperationareneededtoengenderchangenotonlyinthewatersector,butinallpublicandprivatesectorsaswell.”

MillerCoorsbelievesthatwaterefficiencyisessentialnotonlytotheirsuccess,butforthefutureofourglobalwaterresourcesaswell,whichiswhytheyadvocatedoingeverythingpossibletoreducetheamountofwaterused.Byallowingworkerstoparticipateinthedecisionmakingprocesswithrespecttochangingstandarddailypractices,andinstillingacultureofwaterstewardship,MillerCoorsreducedtheamountofwaterusedtoproduce1barrelofbeerfrom4.1barrelsin2008,tolessthan3barrelsinMayof2014.Lastyearalone90milliongallonsofwaterweresavedinMilwaukeebreweries.

4. AttackingWaterLoss:Georgia’sNewWaterMindset:Presenters:WillJernigan,DirectorofWaterEfficiency,CavanaughInc.;JasonBodwell,SRFProgramManager,GeorgiaEnvironmentalProtectionDivision(EPD);M.SteveCavanaughJr.,President&CEO,Cavanaugh


TM‐7

AsaresultoftheWaterStewardshipActof2010(stimulatedbysearingdroughts)thestateofGeorgiafocusedonreducingwaterdemand,reducingunaccountedforwaterandimprovinginfrastructure.

TM‐7

Appendix B: Bibliography and Endnotes


TM‐7

TM‐7

Appendix C: Bibliography and Endnotes

Bibliography CadillacDesert:theAmericanWestanditsDisappearingWater–M.Reisner,1993

EcosystemservicesprovidedbyplayasintheHighPlains:potentialinfluencesofUSDAconservationprograms–LorenM.Smith,DavidA.Haukosetal.

GroundwaterAvailabilityintheUnitedStates,Reilly,T.,K.Dennehy,W.Alley,andW.Cunningham,2008

InnovatingfortheBlueEconomy:WaterResearchattheURC–AlexL.Rosaen,Director,AndersonEconomicGroup,LLC–CommissionedbytheUniversityResearchCorridor,2014

MacombCountyBlueEconomyStrategicDevelopmentPlan–MacombCountyDepartmentofPlanningandEconomicDevelopment,CommissionedbyCountyExecutive,MarkHackel,2012

ProposalforBlueWaterEconomyStudy‐‐2009

Michigan’sBlueEconomy:SustainableResourceandBusinessDevelopment–DWSDBlueEconomyCommittee,July2010

PeakWaterLimitstoFreshwaterWithdrawalandUse–PeterH.GleickandMeenaPalaniappan

PrioritiesforAdvancingGreatLakesRestorationandEconomicRevitalization(PrioritiesforFY2012)‐GreatLakesCommission,2009

RangeLivestockProduction,Food,andtheFuture:APerspective–JerryL.Holechek

Review:groundwatermanagementpractices,challenges,andinnovationsintheHighPlainsaquifer,USA—Lessonsandrecommendedactions‐Sophocleous,M.,2010

StrategicPlanfortheGreatLakesCommission(through2012)–GreatLakesCommission

2012AnnualReport–GreatLakesCommission,2013

TheVitalCommons–APolicyAgendafortheGreatLakesCentury‐MatthewMendelsohn,ReuvenShlozberg,JoshHjartarson,andNevilleMcGuire,2011

WaterintheWest–AndrewFahlund,MinL.JannyChoy,andLeonSzeptycki,2013

Water‐levelchangesintheHighPlainsaquifer,predevelopmentto2005and2003to2005.U.S.GeologicalSurveyScientificInvestigationsReport–V.McGuire

Water,MichiganandtheGrowing“BlueEconomy”JohnAustin,Director,MichiganEconomicCenteratPrimaCivitas–CommissionedbytheGovernor’sOfficeoftheGreatLakesforMichigan’sWaterStrategy,2013

WaterQualityintheHighPlainsAquifer,Colorado,Kansas,Nebraska,NewMexico,Oklahoma,SouthDakota,Texas,andWyoming,1999‐2004.‐Gurdak,J.,P.2009.

TheWaterTable:TheShiftingFoundationofLifeonLand–AlexanderN.Glazer,GeneE.Likens

WorkPlan(FinalMay2012)–GreatLakesCommission,2012

http://www.paddlefishfarming.com/wastewater.html

http://www.rwlwater.com/az‐using‐decommissioned‐wastewater‐plant‐for‐research/


TM‐7

https://swes.cals.arizona.edu/highlight/aquatic‐research‐station‐proposed‐decommissioned‐sewage‐treatment‐plant‐0

http://azstarnet.com/news/local/govt‐and‐politics/something‐fishy‐is‐afoot‐at‐old‐wastewater‐plant/article_d19ef236‐e341‐5d07‐b74c‐38b82cde7c57.html

http://www.mi.gov/som/0,1607,7‐192‐‐213434‐‐,00.html

http://record.umich.edu/print/2923

http://www.brookings.edu/~/media/research/files/reports/2007/9/04gleiecosystem%20austin/0904gleiecosystem_austin.pdf

http://www.michigan.gov/deq/0,4561,7‐135‐3313_3677_64891‐‐‐,00.html

http://www.ijc.org/files/tinymce/uploaded/Allan‐Water%20Strategy%2014%20Mar%202013.pdf

http://blog.grantswhisky.com/2010/06/how‐much‐water‐in‐grant%E2%80%99s/

http://www.foodproductdesign.com/blogs/trending‐foods/2014/06/food‐beverage‐industry‐poised‐for‐growth‐in‐2014.aspx

http://www.grantthornton.com/issues/library/survey‐reports/food‐and‐beverage/2014/03‐High‐hopes‐timid‐growth.aspx

https://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Documents/food‐beverage‐outlook‐survey‐2013.pdf

http://www.foodprocessing.com/articles/2014/2014‐food‐and‐beverage‐industry‐outlook/

http://origin.library.constantcontact.com/download/get/file/1102115567562‐407/FoodBeverageStudy_2014.pdf

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/12/how‐long‐before‐the‐midwest‐runs‐out‐of‐water/

http://web.mit.edu/12.000/www/m2012/finalwebsite/problem/groundwater.shtml#backg

http://www.circleofblue.org/waternews/2013/world/study‐cut‐groundwater‐use‐from‐ogallala‐aquifer‐in‐kansas‐now‐benefit‐later/?utm_source=rss&utm_medium=rss&utm_campaign=study‐cut‐groundwater‐use‐from‐ogallala‐aquifer‐in‐kansas‐now‐benefit‐later

http://www.michiganbusiness.org/cm/files/Water%20Industry%20in%20Michigan.pdf

http://www.grandhaventribune.com/article/943596

http://cgli.org/mission‐vision/

http://www.circleofblue.org/waternews/2010/world/towards‐a‐blue‐economy‐michigan%E2%80%99s‐freshwater‐future/

http://www.circleofblue.org/waternews/2010/world/the‐price‐of‐water‐a‐comparison‐of‐water‐rates‐usage‐in‐30‐u‐s‐cities/

http://www.epa.gov/climatechange/impacts‐adaptation/water.html

http://www.epa.gov/climatechange/impacts‐adaptation/greatplains.html

http://www.aquatechnology.net/productionanalysis.html

http://www.madehow.com/Volume‐2/Soft‐Drink.html

http://online.wsj.com/news/articles/SB123483638138996305


TM‐7

http://pacinst.org/publication/bottled‐water‐and‐energy‐a‐fact‐sheet/

http://thewaterproject.org/bottled_water_wasteful

http://www.civilengineering‐digital.com/civilengineering/may_2014?pg=53#pg72

http://www.waterfootprint.org/Reports/Hoekstra‐2008‐WaterfootprintFood.pdf

http://www.waterfootprint.org/Reports/Report50‐NationalWaterFootprints‐Vol1.pdf

http://www.waterfootprint.org/?page=files/Softdrinks

http://www.waterfootprint.org/Reports/Ercin‐et‐al‐2011‐CorporateWaterFootprint‐Softdrink.pdf

http://agleadersmi.com/Documents/PowerPoint%20Presentations/Wenk%20‐%20The%20Importance%20of%20Imports%20and%20Exports.pdf

http://www.greatlakesmetrochambers.com/pdf/Canada‐Michigan‐Trade.pdf

http://tradebenefitsamerica.org/sites/default/files/BRT‐State‐Study_Michigan_0.pdf

http://thewaterproject.org/water_scarcity_in_us

http://www.climate.gov/news‐features/featured‐images/climate‐change‐increase‐water‐stress‐many‐parts‐us

http://www.huffingtonpost.com/2013/09/24/watersheds‐stressed‐study‐supply‐water_n_3983176.html

Endnotes iAustin,John.Water,MichiganandtheGrowing“BlueEconomy.”Nov.5,2013.WhitePaperCommissionedbyGovernor’sOfficeoftheGreatLakesforMichigan’sWaterStrategy.pp.2.iiBlueEconomy–WaterBasedBusiness–Overview,JohnAustin,AlanSteinman,DeviHaria,2014.pp.3iiiBlueEconomy–WaterBasedBusiness–Overview,JohnAustin,AlanSteinman,DeviHaria,2014.pp.3.ivMichigan’sBlueEconomy:SustainableResourceandBusinessDevelopment.TACBlueEconomyCommittee.July2010.pp.40.vBlueEconomy–WaterPlace‐making–Overview,JohnAustin,AlanSteinman,DeviHaria,2014.Pp22.vi"GreatLakes:BasicInformation."UnitedStatesEnvironmentalProtectionAgency.N.p.,n.d.Web.6Aug.2014.<http://www.epa.gov/greatlakes/basicinfo.html>.viiGlazer,AlexanderN.,andGeneE.Likens."TheWaterTable:TheShiftingFoundationofLifeonLand."Ambio7.41(2012):n.pag.NationalCenterforBiotechnologyInformation.Web.4Aug.2014.<http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3472013/>.viiiWillLimitedLand,Water,andEnergyControlHumanPopulationNumbersintheFuture?EhrlichandEhrlich1997ixSteward,DavidR.,PaulJ.Bruss,andXiaoyingYang,etal."TappingunsustainablegroundwaterstoresforagriculturalproductionintheHighPlainsaquiferofKansas,projectsto2110."PNAS110.37(2013):n.pag.ProceedingsoftheNationalAcademyofSciencesoftheUnitedStatesofAmerica.Web.4Aug.2014.<http://www.pnas.org/cgi/doi/10.1073/pnas.1220351110>.x“CaliforniaDrought.”Ca.gov.Web.11Aug.2014.<http://www.ca.gov/drought/>.xi“Water’spotentialforstateeconomyiscleartoMcCulloch”byRonDzwonkowski,Dec.4,2011,DetroitFreePressxiihttp://www.makemacombyourhome.com/blue.htmlxiii"GuidingFramework."BlueEconomyInitiative.N.p.,n.d.Web.6Aug.2014.<http://www.blue‐economy.ca/about/guiding‐framework>. xiv“FY14CanadaTradeProfile.”PureMichigan.Apr.2014.<www.michiganbusiness.org/cm/Files/Export_Assistance/MI‐Canada‐Trade‐Profile.pdf>


TM‐7

xvSchmid,John.“U.N.namesMilwaukeeawatertechnologyhub.”MilwaukeeWisconsinJournalSentinel.Apr.27,2009.<http://www.jsonline.com/business/43835922.html>.xviRosaen,AlexL.,AndersonEconomicGroup,LLC.InnovatingfortheBlueEconomy:WaterResearchattheURC.2014.pp.9.xvii“WhitePaper–WatertreatmentforbeveragesandSoftdrinksindustry.”BlueIWaterTechnologies.Web.5Aug.2014.<http://www.blueitechnologies.com/products‐applications/white‐papers/>.xviii Gustafson,ThomasA."HowMuchWaterActuallyGoesIntoMakingABottleOfWater?"NPR.N.p.,30Oct.2013.Web.5Aug.2014.<http://www.npr.org/blogs/thesalt/2013/10/28/241419373/how‐much‐water‐actually‐goes‐into‐making‐a‐bottle‐of‐water>. xixKaldani,Davina."WaterSupply‐UnsustainableCalifornia:TheTop10Issues."Editorial.CaliforniaCommonSense.cacs.org,11June2014.Web.5Aug.2014.<http://cacs.org/research/unsustainable‐california‐the‐top‐10‐issues‐facing‐the‐golden‐state‐water‐supply/>.xxBlueEconomy–WaterBasedBusiness–Overview,JohnAustin,AlanSteinman,DeviHaria,2014,pp.13.