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With the official start of summer just a few days away
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scientists say a mega drought across the western U.S. could get even worse
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Millions of people in the state are now under new intense water restrictions
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All right. Millions of Southern Californians are now under new water restrictions amid the state's severe drought
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My name is Riggs Echleberry, and I'm the co-founder of Origin Clear
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which is a company that is working hard to create innovative, disruptive ventures in the water industry
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We're essentially an innovation hub. So we have conventional water companies that we've created in the industrial space
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We also have new financial vehicles to create water as a service, which is a whole new area
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And we also have a division that does nothing but modular water systems to get away from the custom water
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equipment, you know, the water industry is in a way very, very backward
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And so we have some technology that creates these water systems in a box, which is very exciting
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Hi, my name is Michael. Thank you for joining. Is the problem in America only or it's worldwide clean water
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There are several different levels. Worldwide, counting everybody, only about 20% of all sewage is treated
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Now, that's not true of OECDG. countries, which do a good job of treating most of their water, but then you have places
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you know, in the undeveloped world or developing world like Bangladesh where there's virtually
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no water treatment. And even a place that's a second world country like Mexico has very
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you know, there's rivers in Mexico that look like a rainbow because there's a lot of dumping
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still going on. So I would say there's a big difference between the developed countries like
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America, European countries, Australia, and the developing countries. But even America does not reach as high a standard as, for example, Italy
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I remember having vacationed in Italy several times around a lake that was surrounded
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I guess an old volcano, was surrounded by fields that went down into the lake
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and yet the lake was pure, pristine, completely drinkable water, water even despite the, but in America, the fertilizer would have been going into that lake and
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creating all kinds of algae. So I would say that the best practices are in the European community
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America does okay, but then there's the factor of the recycling. And in that area
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probably the world leader is Israel, where almost 90% of all water is recycled. The second in the
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world is Spain with 20%. America is only 1%. And the reason for that is that we have an old
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sewage grid that only works one way. Just like the energy grid, you send your water to the city, the city processes it, and then
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sends it into the ocean or a river or whatever. Treat it, there's nothing wrong with the water, but the opportunity to recycle has been lost
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And we're seeing that as an issue in places like California where they're still struggling
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with outdated sewage systems. and they're struggling, for example, in San Diego
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they're trying to do this thing called toilet to tap. But because the central systems aren't built that way
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it's involving billions of dollars. So there's some new approaches needed in places like California
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because there's an infrastructure problem, essentially. So you think California problems can be solved
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with a little bit of money, a little bit of ingenuity, but it's not something that cannot be solved with water recycling
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Water recycling helps tremendously. Now, here is the gorilla in the middle of the room in California
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and that is that agriculture represents about 80% of all use. So, yes, we're happy that citizens are taking shorter showers, et cetera
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but the effect, the net effect is negligible overall. It's a good PR campaign, but the fact is that
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increasingly there has been a pivot toward high value crops such as nuts and so forth
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which are high water users. Now, granted, there's also been a lot of headway, you know, there's been basically
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more movement towards high value crops, which tend to use more water, but also more water efficiency
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But that's kind of dancing around the problem, which is, It a desert and the high agricultural use in California unfortunately you know it something like what is it you know billion a year
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It's a ridiculous amount of money that is, here we go. No, I apologize
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$20 billion a year in exports for agricultural products, and they have to irrigate
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And, you know, there's vast amount. of water. You know, 34 million acre feet of water per year are irrigated. Well, an acre foot can
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easily take care of four households so that right there is, you know, those 34 million means
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about 120 million people could be served with the same amount of water that is being used for
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irrigation. That's the nature of the beast because, you know, 80% of all water use in California
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is agricultural. So at some point, I think California is going to have to confront that issue
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and deal with it in a, as much as a creative way as possible. I'm reading the Public Policy
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Institute of California website here. And the, the, higher revenue crops such as nuts and grapes, which again use a lot of water
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have increased as a share of irrigated acreage from 16% in 1980 to 33% in 2015
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and up to 45% in the southern Central Valley. So lots more use of water, which generated more revenue
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but actually farm water use was 14% lower. So it's good that they are doing, they're working very hard to become more efficient, but there's limits
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If you're going to use high water usage, you know, when I take a bunch of grapes, most of those, that bunch of grapes is water
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And that gets taken. It can't be reused. It gets taken to a grocery store in New York City or whatever and consume there
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So that water leaves California and it can never reclaim. So I think at some point we're going to have to confront the nature of the agriculture use in California
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I got you. So from your point of view, it's agricultural need for water
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Actually, what's taking most of the Californian water out. Regular consumers most likely are not going to suffer really badly, meaning, yeah, they have, what's it
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called sporadic turnoffs and turn-ons of water in their households, but it's not like they're going to end up in the complete desert without any water around them
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Most likely Californians will just spend less water on the agriculture. That's your point of view
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I actually think that residential users are going to suffer because the government has already shown that they're going to start doing rationing
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They're encouraging a lot. And by the way, the populations in California
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California have been very, very supportive. Per capita water use has declined from 231 gallons
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per day in 1990 to 180 gallons per day in 2010, and it continues to fall. In fact, 2015
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it was 146 gallons per day. So they're doing a fine job, mostly by reducing landscape watering
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but there's going to be requirements for long-term reductions. If you are a big water user for landscape, I can tell you that, because I've been a water
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user in California, your water bill goes crazy. So, yeah, desert plants, of course
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But what I'm saying is all that stuff is going to be, you know, it's going to be hard
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for residential users and there's going to be sacrifice. but it doesn't accomplish that much in numerical terms
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The real gains are in the agricultural area, and unfortunately, $20 billion a year is a big vote
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It is very hard to get rid of that revenue for California
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So they're in a tough place. It's really, really hard for them to get rid of their, you know
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get rid of avocados and instead plant barley. It's going to be very hard
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I would like to move to the next subject. You've mentioned that water recycling equipment could be purchased and installed in a single household
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Can you talk a little bit about it? What is it? Do you work with such equipment or can you just advise our consumers a little bit about water recycling for a single home The best what we deal with is of course we work at the housing development use level
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because let me just say something about, you know, single family. It's a very competitive market
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There are systems for water recycling. For example, Fuji water has an excellent system for making, taking you off the grid
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and you don't need a sewage connection if you have a single family home
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And they do a fine job. It's, I don't know, $10,000, $12,000. We don't try and compete with that because they do a fine job already
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And as you know, a whole home water purification is also very mature
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What we like to do is intervene at the housing development level to work with the developers
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and so that they have an opportunity to locate the entire development away from conventional
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water sources. And where Origin Clear comes in is we have a program that enables them to not pay
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up front for them the equipment, but rather pay by the gallon, as if they were still getting it
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from the city. So we call that water on demand. It's a basically, it creates a water as a service
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We have investors who purchase the equipment. And then these housing developments can just
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enjoy the three parts, as I said, the incoming clean water, the water, the treatment of the
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black water, and the recycling of what we call the gray water, all on a completely self-sufficient
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basis. And I think that's the future because more and more residential requirements are outstripping
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the availability of sewage. Let's take, for example, Miami-Dade County, which built about, you know
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It expanded very fast without any kind of urban planning back almost 100 years ago
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And what was installed was over 100,000 septic tanks were installed throughout the county, very widely spread
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And so the county has come up with a proposal because septic tanks are terrible. As the water levels rise due to saltwater intrusion, et cetera, it's become a problem
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So they want to replace all those septic tanks with. hard sewage. Well, that's $6 billion in today's money, probably be about eight or ten by the time
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it's built, 20 years of disruption, et cetera, et cetera. The better solution is to simply run a rebate
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program and let people install their own self-sufficient water treatment. So these, the, you know
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do-it-yourself water treatment, I believe is the solution to a lot of problems in America
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and it enables a lot more utilization of the water, be it residential, industrial
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agricultural. With your plan price per gallon of water, how does it impact consumers' wallet? Is it less
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expensive? Is it more expensive? What is the pricing structure there? Price has been skyrocketing for
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water. Water rates are not very regulated. You would think they would be, but they're not. And so
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the water rates over a 10-year period that I'm looking at here tripled
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versus ordinary core inflation. So water rates were already taking off even before the current inflationary phase
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So, and in some places, there are as high as 14% of the residential budget, which is ridiculous
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So that's another reason for people to become self-sufficient. You know, I never thought I'd say it, but, you know, the preppers were right
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You need to have a plan for taking care of yourself in this current environment and that includes water
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So what's your current price per water in some of your installations
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How does it match up to the town's water in comparable locations
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Is it similar? Is it 20% higher? Is it 20% lower? How does it compare
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Well, okay, there's two things. First of all, by adopting our waters of service program, we enable and we're really talking about businesses or communities, right
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So we're not talking about a single family homes, but if it is residential, it will be a community of homes or it's a business
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And those by committing to a long-term contract for water service, they can limit their increases
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So it's a way to cap the inflation increases by going into our programs
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That's number one. Number two, by doing their own treatment, they're able to reuse their water the way they normally cannot
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not And that and I give you an example in a brewery you can reuse about 50 of the water without using the water for beer just for washdowns and steam vessels and so forth And so if you can get a 50 increase in water use for every dollar you spend that a win
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So I would say a combination of service contracts that cap the increases to some reasonable inflation index
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and also reuse of water to get more turns out of the water
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Does your system produce drinkable water as an end product? Is it a drinkable water
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Exactly. Currently, we're about to inaugurate. Hotels are beginning to install whole hotel water systems
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And we have such a high-end hotel chain. Unfortunately, we can't disclose yet
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They're launching in July with our system. And what they've chosen to do is all the water coming into the hotel is pure, whether it's
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for kitchen, showers, anything. And that, I think, is going to become a trend
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And so we have a well-priced system that is certainly very affordable for a business or a community
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that does the full reverse osmosis, which is what you need to get rid of those
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what's called the forever chemicals, the PFAS, as they call it, the things that are in Teflon and so forth
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there's really only one way to get rid of those. and that's with reverse osmosis, and that's what you have to use to clean the incoming water
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In my home, for example, I don't have reverse osmosis for the entire home
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I have just a plain 0.2 micron filter, but in my kitchen sink, I have a tap that is RO water
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and that's what we drink from. And that's really what you have to do. Another question I have, so the hotel installs your system
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Do they install a duplicate system right next to it? what happens if your system breaks
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I want this hotel, which I can tell you, it's located in, it will be located in Nashville, Tennessee
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You can always switch. The city water will not kill people immediately
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So it's not like they're going from pure water to no water
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They're going from pure water for the brief amount of time that might be down
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They'll have to, there'll be tap water. But remember that these systems on service contract, they're easy to swap out
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we have local service providers who come in, they swap out the filters
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whatever is broken down about it. These are very simple systems. It's just like a refrigerator breaking down
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Generally, you have enough time before the fridge starts to warm up that you can fix it
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Similarly, with incoming water, as I say, nobody loves, you know, it's strange, Michael
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Once upon a time, we all drank pure, drank tap water and it was okay
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That's now become a no-no. but, you know, if it's two, three hours, five hours on tap water, it's not the end of the world
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My experience with water filtration is lots and lots of maintenance because filters get clogged up and they need to be clean
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So that's my question. How do you address regular maintenance? How does it occur
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This is a complex system and it needs to be addressed properly
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People can invest in redundant systems that typically do. don't. That's the truth of it. Because, again, you're not going from pure water to no water
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You're going from pure water to treated water, which many, many people would say, old-fashioned
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people would say it's just fine. So we haven't run into people who are willing to invest in redundant
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systems, as put it that way. Quality-wise, do you have any data comparing your water to
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bottled water being sold in the stores? Bottle water is typically purified using reverse osmosis
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There is an issue with bottled water being in plastic, and there's some data that the plastic can contaminate the water
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especially if you let the bottle get hot, you know, or you let it get warm
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But there's not a huge difference in quality. I would say that if you have a standard bottled water that comes out of 7-11
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it will be reverse osmosis treated, it'll be pure, and it'll be very similar to the water you can get from one of our water systems
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The difference, of course, is that we're not using a ton of plastic bottles
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I mean, that's the big difference. You guys watching this video, please sign up for Best Consumer Channel
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It means a lot like this video and Riggs. Thank you very much. Thank you for joining us today