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Managing Energy at Your Small Drinking Water System

– A Workshop Series for Georgia U=li=es

C. Wayne King Auditorium 625 W. Third Street, Jackson, GA 30233 05/28/15 (Workshop 2)

http://efc.sog.unc.edu @EFCatUNC 2

Dedicated to enhancing the ability of governments and other organizations to provide environmental programs and services in fair, ef fect ive, and financially sustainable ways through:

•  Applied Research •  Teaching and Outreach

•  Program Design and Evaluation

How you pay for it matters

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About the Environmental Finance Center Network (EFCN) The Environmental Finance Center Network (EFCN) is a university-based organization creating innovative solutions to the difficult how-to-pay issues of environmental protection and improvement. The EFCN works with the public and private sectors to promote sustainable environmental solutions while bolstering efforts to manage costs.

This program is offered free of charge to all who are interested. The Project Team will conduct activities in every state, territory, and the Navajo Nation. All small drinking water systems are eligible to receive free training and technical assistance.

The Smart Management for Small Water Systems Program

What We Offer

Individualized technical assistance, workshops, small group support, webinars, eLearning, online tools & resources

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Who We Are

•  Environmental Finance Center at University of Louisville •  Environmental Finance Center at University of Maryland, College Park •  Environmental Finance Center at University of North Carolina at Chapel Hill •  Environmental Finance Center at Wichita State University •  EFC West •  Great Lakes Environmental Finance Center at Cleveland State University •  New England Environmental Finance Center at University of Southern Maine •  Southwest Environmental Finance Center •  Syracuse University Environmental Finance Center

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•  Asset Management"•  Energy Use and Efficiency!•  Meeting Regulatory Compliance"•  Fiscal Planning and Rate Setting"•  Multi-funding Coordination"•  Communications and Decision-making"

•  Water Loss Reduction"•  Working with Other Water Systems"•  Financing"•  Funding Programs"•  Managing Small Utilities in Drought"

Areas of Expertise

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Energy Management Workshop Series •  In-‐depth workshop focused on building system-‐specific energy management plans

•  Aim is to create a peer network – Workshop 1: CollecQng data and geRng started – Workshop 2: Priori=zing and funding projects – Workshop 3: ImplemenQng, progressing, and special topics


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Workshop 2 Agenda Start Time Topic

9:00 Welcome Back, Progress Updates, and QuesQons

10:00 Review of Workshop 1

10:30 Project PrioriQzaQon

11:00 IntroducQon to Financing Energy Management Projects

11:30 Lunch (On Your Own)

12:30 Energy Performance ContracQng (Chris White, GEFA)

1:30 Energy ConservaQon and Energy ProducQon Financing (Jason Bodwell, GEFA)

2:30 Close-‐out Discussion and Homework

3:00 End Day


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CEUs Update

•  Approved for 15 CEUs for Management & Safety (MS)

•  Course Number: CE-‐5-‐MS-‐0415-‐EFC-‐013116-‐0001

•  Course Title: Energy Management For Small Water Systems


Smart Management for Small Water Systems

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Review of Energy Pricing from Workshop 1

“Energy efficiency saves water—in Georgia approximately 0.8 gallons of water is required to produce one

kilowa@-‐hour of electricity from coal and nuclear energy.”

Source: Energy Efficiency: Georgia’s Highest Priority, Southface hep://www.southface.org/default-‐interior/documents/energy-‐efficiency-‐whitepaper.pdf


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Base charges/Customer charges/Service availability

•  Typically charged on a per meter basis regardless of consumpQon

•  Typically covers administraQve costs of providing service to the customer / access to the grid


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ConsumpQon Charges (by kWh)

•  Charged on monthly, per kWh basis •  Typically covers the cost of fuel •  Can vary based on season •  Can vary based on Qme of day


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kWh – like odometer (consumpQon)

kW – like speedometer (demand)


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Demand Charges •  Charged on a kW basis (or kVa)

– Real power versus apparent power •  May be charged against the customer’s peak demand or the uQlity’s peak demand (coincident peak)

•  Typically covers capital costs, parQcularly for peaking capacity

•  Is there a Ratchet Charge? where the highest demand or consumpQon that occurs in 1 year will determine demand or energy charges for the next year.

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What is your demand charge?


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Rate opQons that can reduce your energy bills

•  Time-‐of-‐use rates •  InterrupQble rates •  Net metering •  On-‐bill financing Remember that GA Power allows you to make

one switch per year


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GA Power Demand Side Management Rider

•  This fee is charged to “commercial” accounts, but not “industrial” ones

•  Generally water systems are regarded as “industrial,” BUT, some of your accounts e.g. admin building may be considered “commercial”

•  You can apply for certain rebates and incenQves for your “commercial” accounts…


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Source: hep://business.georgiapower.com/rebates/?

bhp=rm_trending_rebates_link2



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Caution: With Installing New Equipment: Capital Investments are Just the Tip of the Iceberg…

Source: Adapted from Steve Allbee, USEPA

Acquisi=on

Cost

Maintenance

Refurbish Refurbish

Disposal

35-‐40%

60-‐65%

Asset Life


PROJECT PRIORITIZATION Determining Your Highest Impact Projects



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Typical Energy End-Uses in Public Surface Water System

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Factors AffecQng Energy ConsumpQon in Public Drinking Water Systems

•  Technical requirements •  Source of water •  PopulaQon served •  Water treatment •  Potable water storage •  DistribuQon system

•  Source of electricity •  Plant building energy use •  Unaccounted-‐for-‐water •  Demand management

Lawrence Berkeley NaQonal Lab

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PotenQal High Impact Projects

•  Water system opQmizaQon •  Pumping system efficiencies •  Motor management •  Promote water conservaQon •  Reduce heaQng and cooling load for admin buildings and well-‐houses

•  Use of renewable energy


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Water System OpQmizaQon

Energy Efficiency

Water Quality

System Performance

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Typical CharacterisQcs of an OpQmized System

•  Keeps sources constant •  Uses storage efficiently •  Eliminates re-‐pumping •  Is properly designed •  Uses least expensive water first •  Improved pressure management •  Uses the cheapest rate schedule •  Has reduced water loss •  Considers water quality


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Pumping System Efficiencies

•  OpQmize pump system efficiency •  Reduce pumping flow •  Reduce pumping head •  Avoid pump discharge throeling

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Motor Management

•  Install high efficiency motors •  Automate to monitor and control •  Variable frequency drive applicaQons •  Correctly size motors •  Properly maintain motors •  Improve power factor


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Manage Motor Inventory •  Plan Ahead! When a motor goes out is not the Qme to decide

which one you need •  Resources

–  Department of Energy’s MotorMaster+ •  Sovware tool to help you compare and understand motor decisions

– Motor Decisions Maeer: hep://www.motorsmaeer.org •  Motor Planning Kit •  Simple Savings Spreadsheet

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Renewable Energy

•  Solar •  Micro-‐Hydro •  Biogas (Wastewater)

•  Wind


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Improve Energy Reliability •  Water uQliQes should be able to provide criQcal systems

with adequate backup power •  Energy planning process should idenQfy opportuniQes to

improve energy reliability –  ProtecQon against complete loss –  IdenQfy changes in power quality that can damage equipment and/or

–  InsQtute operaQng procedures to address changes in overall power availability


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Possible Areas of EvaluaQon

•  Raw and Finished Water Pumping

•  Chemical Mixing •  Backwashing •  Well Systems •  OzonaQon

•  Load Shiving •  DistribuQon •  Supervisory Control and Data AcquisiQon (SCADA)

•  Energy Efficient Motors

And… System Water Loss


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Categories for Energy Efficiency OpportuniQes

•  Capital program or equipment replacement •  Process change •  OperaQonal change •  AutomaQon or controls •  Maintenance improvements •  Business measures


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Step 5: PrioriQze OpportuniQes for ImplementaQon

•  The final product of this step is a short list of energy efficiency opportuniQes that have been selected and carefully evaluated out of the list of opportuniQes generated in the previous step

•  IdenQfy a consistent method to compare and rank opportuniQes (consider both the monetary and non-‐monetary)


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Think – Pair -‐ Share

•  What are your seasonal trends? •  Can you see changes in operaQons? •  How do changes in price compare to changes in energy use?

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ENERGY STAR Commercial Buildings Program •  Offers a strategic approach to energy management

•  Enables building owners, managers, and tenants to save money & protect the environment

•  Provides organizaQons with measurable informaQon on energy savings and greenhouse gas emissions reducQons from commercial buildings

•  Builds on strong ENERGY STAR brand recogniQon •  ENERGY STAR on a building = Superior Energy Performance

•  Benchmarking is the first step

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Want to do more?


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Use Lowest Cost Water First •  Determine the total unit cost of using each source

•  Know the limitaQons of each source (water rights, capacity, water quality)

•  Understand the addiQonal cost of using more than one source or pump staQon at once

•  Have prioriQzed source operaQon plans that maximize the use of lower cost water

Source: Steve Jones/Hasen, Allen, and Luce


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Use Lowest Cost Water First •  Automate the prioriQzed operaQon plan as much as possible.

•  Use proper PRV seRngs and controls seRngs that don’t allow high cost water to be used over low cost water.

•  Keep higher cost water where it is needed •  Maximize the use of lower cost water in the areas of the system where it can be used

Source: Steve Jones/Hasen, Allen, and Luce


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Energy Management Program -‐ Basic Steps

•  Step 1. Establish OrganizaQonal Commitment •  Step 2. Develop a Baseline of Energy Use •  Step 3. Evaluate the System and Collect Data •  Step 4. IdenQfy Energy Efficiency OpportuniQes •  Step 5. PrioriQze OpportuniQes for ImplementaQon •  Step 6. Develop an ImplementaQon Plan •  Step 7. Provide for Progress Tracking and ReporQng

Source: NYSERDA


INTRODUCTION TO FINANCING ENERGY MANAGEMENT PROJECTS



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More TradiQonal Sources of Financing…

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•  Pay as you go (current receipts) •  Save in advance and pay •  Pay later (someone loans you money) •  Grants (let someone else pay)

Ways To Pay


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Where does the money come from? •  Loans •  Grants •  Bonds •  User fees •  Assessments •  Impact fees •  Taxes

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•  Application for the grant can be expensive – staff time and money

•  Applications can take months to process

•  Often lots of strings attached

•  Often require a percentage match

•  Lots of competition

•  Difficult to sustain

Grants Aren’t Completely Free Money

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$0$2$4$6$8

$10$12$14

Total (in 2000 Dollars)

CWSRF

EPA Line Item

Construction Grant

Grants Have Been Replaced by LoansEPA Wastewater Spending by Type (billions of dollars)


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“Energy-‐Specific” Sources of Financing


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Energy Performance Contracts

•  Contract with an ESCO for the evaluaQon, recommendaQon, or implementaQon of energy conservaQon measures

•  Payments made over Qme

•  Energy savings guaranteed to exceed costs


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Energy Performance Contracts •  Concept: Savings are guaranteed by Energy Services Company

(ESCO) –  for the life of the project –  If the annual savings are not met, the ESCO is supposed to write a check for

the shorxall –  Aver performance contracQng, the budget remains the same as energy

savings pay for the facility improvements

•  The main differenQator between ESCOs and other energy efficiency contractors is the guarantee of energy savings which is specified as part of the terms of an energy savings performance contract (ESPC) Source: hep://www.naesco.org/what-‐is-‐an-‐esco


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Source: hep://gefa.georgia.gov/sites/gefa.georgia.gov/files/related_files/document/Financing%20ConservaQon%20Projects.pdf


LUNCH

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#1: E.M. Planning for Small Water Systems and the NYSERDA Model (12/02/14)

#2: E.M. Teams, Baselines, and Data Collection (03/03/15)

#3: E.M. Project Ideas, Prioritization Methods, and Implementation Planning (06/09/15)

#4: Special Financing Models for E.M. Projects (TBA: September 2015)

Find Money in the Water System Budget: Energy Management (E.M.) Webinar Series

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•  2:00 – 3:00 PM EDT, Tuesday, June 9, 2015 •  Instructors:

–  Steve Kubler, Installation Technician, AWI, and former manager of water system at Chanute, Kansas

–  David Tucker, Project Director, EFC at UNC-Chapel Hill

•  Register here at: http://efcnetwork.org/webinar-energy-management-3/

ENERGY MGT. WEBINAR #3:Find Money in the Water System Budget: Energy Mgt. Project Ideas, Prioritization Methods, and Implementation Planning

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•  Solar •  SCADA systems •  Others?

Potential Topics for 3rd Workshop


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Homework Develop an acQon plan for energy iniQaQve(s): •  Explain the resources needed, including a budget and financing plan (including calculaQng the payback Qme where relevant)

•  IdenQfy key stakeholders •  Come prepared to talk about these items for about 10-‐15 minutes during workshop 3

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