A Customized Approach A Customized Approach to Improve Energy to Improve Energy Efficiency at Water and Efficiency at Water and Wastewater FacilitiesWastewater Facilities

Wednesday, Wednesday, September 22, 2010September 22, 2010

Louann Unger, EPA Region 5Louann Unger, EPA Region 5

Jennifer Schick, IDEMJennifer Schick, IDEM

Presentation OutlinePresentation Outline

Sustainable Water Infrastructure in Sustainable Water Infrastructure in Region 5Region 5

The importance of energy The importance of energy Management Management

Benchmarking in Portfolio Manager Benchmarking in Portfolio Manager Indiana Energy Management Pilot Indiana Energy Management Pilot

ProjectProject

ASCE 2009 America’s ASCE 2009 America’s Infrastructure Infrastructure

Report CardReport Card

Aviation D D Bridges C C

Dams D D

Drinking Water D-D-

Energy D+ D+ Hazardous Waste D D Inland Waterways D- D- Levees D- D-

Public Parks Public Parks &Recreation C- &Recreation C-

Rail C- Rail C-

Roads D- Roads D-

Schools D Schools D

Solid Waste C+ Solid Waste C+

Transit DTransit D

Wastewater Wastewater D- D-

SustainableSustainable WaterWater InfrastructureInfrastructure

The EPA Gap Analysis Report (2002) estimated if capital spending & investments in O&M remained at current levels, the potential gap in funding for water and wastewater infrastructure (vs. needs) between 2000 and 2019 would be $533 Billion

SustainableSustainable Water Water InfrastructureInfrastructure

Water shortage looms

Oct. 12, 2009 (Crain’s) — The Chicago region faces a long-term

water shortage that could hit some outlying suburbs by 2015,

much sooner than previously anticipated, according to recently

updated studies.

County Water Rates May Surge November 25, 2009 (Tribune) Customers [in a Chicago Suburb] may face a steep hike to replenish financial reserves that have all but evaporated. … considering increasing water rates 42 percent …

GAO at least 36 states are anticipating water shortages by 2013

SustainableSustainable Water Water InfrastructureInfrastructure

……has the capacity to has the capacity to consistently and consistently and reliablyreliably perform now and over a long perform now and over a long time horizon. time horizon.

Courtesy ccorley

That which is unsustainable is destined to fail at some point.

The Consequences of The Consequences of Infrastructure FailuresInfrastructure Failures

TheThe RegionRegion 5 5 SWISWI approachapproach

Better efficiency through Better efficiency through Energy managementEnergy management Asset managementAsset management Water efficiencyWater efficiency Green infrastructureGreen infrastructure

Better balance of wastewater Better balance of wastewater and water system revenue and water system revenue and cost throughand cost through

Full-cost pricing modelsFull-cost pricing models Taking full advantage of SRF-subsidized Taking full advantage of SRF-subsidized

financingfinancing

NoteNote: : IncreasesIncreases inin

RevenueRevenue w wiill ll OnlyOnly GetGet usus

SoSo FarFar

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

2008 2009 2010

Federal Fiscal Year

SRF Capitalization Grant Amount (Indiana)

Indiana DW

Indiana CW

WhyWhy FocusFocus onon EnergyEnergy

ManagementManagement? ?

Water and Wastewater treatment Water and Wastewater treatment represents about 3% of the nation’s represents about 3% of the nation’s energy consumptionenergy consumption– $4 billion spent annually for energy $4 billion spent annually for energy – Equivalent to about 56 billion kWhEquivalent to about 56 billion kWh– Equates to adding about 45 million tons Equates to adding about 45 million tons

of greenhouse gasesof greenhouse gases Energy represents a controllable cost Energy represents a controllable cost

of providing water or wastewater of providing water or wastewater services to the publicservices to the public

http://www.epa.gov/NE/eco/energy/ew-infrastructure.html

Why Focus on Energy Why Focus on Energy Management? Management?

Energy issues are not going away Energy issues are not going away and and are likely to only get more seriousare likely to only get more serious

Individual projects are fine but Individual projects are fine but something is needed to pull them something is needed to pull them togethertogether, systematically, to ensure , systematically, to ensure continued focus on energy efficiencycontinued focus on energy efficiency

EnergyEnergy managementmanagement isis anan opportunityopportunity toto addressaddress……

Climate changeClimate change Operating costsOperating costs Areas of progressAreas of progress

ResourcesResources andand EventsEvents

Energy management guidebook (2008)Energy management guidebook (2008) Energy management workshop Energy management workshop

(Lafayette, 2008)(Lafayette, 2008) Energy management brochure (2009)Energy management brochure (2009) Energy efficiency & nutrient control Energy efficiency & nutrient control

workshop (Edwardsville, 2009)workshop (Edwardsville, 2009) Portfolio Manager Assistance (2010)Portfolio Manager Assistance (2010) Energy management pilot EPA Reg. 5 Energy management pilot EPA Reg. 5

& IDEM (Statewide, 2009-2011)& IDEM (Statewide, 2009-2011)

Designed to help utilities:Designed to help utilities:

Systematically assess current Systematically assess current energy costs and practicesenergy costs and practices

Set measurable performance Set measurable performance improvement goals improvement goals

Monitor and measure progress Monitor and measure progress over time over time

Uses a management system Uses a management system approach for energy approach for energy conservation, based on the conservation, based on the successful Plan-Do-Check- Act successful Plan-Do-Check- Act process [based on process [based on Environmental Management Environmental Management Systems (EMS)Systems (EMS)

Customized Approach to Improve Energy Efficiency

www.epa.gov/waterinfrastrcture/bettermanagement_energy.htm

““Customized”Customized”

A flexible process to take A flexible process to take advantage of emerging advantage of emerging opportunities and unique opportunities and unique circumstances of each utility. circumstances of each utility.

GuidebookGuidebook ApproachApproach“P-D-C-A”“P-D-C-A”

1. Make a commitment

2. Pay attention

3. Write things down

4. Do the work and Check the results

5. Let others know

6. Repeat

http://www.freedigitalphotos.net/image/s_handshake3.jpg

How to Customize Your How to Customize Your Energy ManagementEnergy Management

1.Make a commitmentVisibility, commitment and involvement are keys to success.

• Establish energy improvement leadership (key individuals)

• Gain top management commitment (board, mayor)

• Get employee buy-in

2. Pay attention• Find the bills and identify baseline energy useFind the bills and identify baseline energy use

• Identify energy-using assets and practices Identify energy-using assets and practices

• Develop measurable energy objectives and Develop measurable energy objectives and

targets targets

• Establish an energy champion / energy teamEstablish an energy champion / energy team

Consider your energy ChallengesConsider your energy Challenges What have you done already?What have you done already? What is missing?What is missing?

How to Customize Your How to Customize Your Energy ManagementEnergy Management

USEPA OW Energy Workshop 2008

3. Write things down• Define your priorities to help focus energy Define your priorities to help focus energy

goals goals

• Use decision criteria to rank prioritiesUse decision criteria to rank priorities

• Write down your energy improvement planWrite down your energy improvement plan

• Monitor and measure progressMonitor and measure progress

How to Customize How to Customize Your Energy Your Energy ManagementManagement

How to Customize Your Energy How to Customize Your Energy ManagementManagement

4. Do the work and Check the results• Provide support and resources to carry out

the plan• Allow for a dynamic and adaptable process

http://farm1.static.flickr.com/246/523072112_9f96719d85.jpg

5. Brag• Peers, employees, management, communityPeers, employees, management, community

• Say it in terms people understand Say it in terms people understand

• Get the recognition you deserveGet the recognition you deserve

How to Customize Your How to Customize Your Energy ManagementEnergy Management

Benchmark: Benchmark:

Compare energy use of your facility Compare energy use of your facility to a national average of similar to a national average of similar facilities. facilities.

Compare energy use against a Compare energy use against a baseline to track energy use and baseline to track energy use and improvements.improvements.

ENERGY STAR provides a free online ENERGY STAR provides a free online benchmarking tool called Portfolio benchmarking tool called Portfolio Manager.Manager. 2323

Fuel Efficiency

MPG

Is 18 MPG high or low for an automobile? Answer: Low

Energy Performance

EPA Benchmarking

Is 1500 kWh/MG high or low for a wastewater plant?

How Well Does the Facility Perform?How Well Does the Facility Perform?

Answer: Don’t know

2424

Enter energy consumption and cost data into your a Portfolio Manager Account.

This tool helps o benchmark energy performance, o assess energy management goals

over timeo identify strategic opportunities for

savings.

Benchmarking withBenchmarking withPortfolio Manager for Portfolio Manager for

WastewaterWastewater

Space Types Eligible for Space Types Eligible for ENERGY STAR RatingENERGY STAR Rating

Hospitals

CourthousesWaste Water Treatment Plants

Retail Office Buildings Hotels

Financial CentersMedical Office

Buildings

Warehouses Dormitories Supermarkets Schools

2626

Access to Portfolio ManagerAccess to Portfolio Manager

www.energystar.gov/benchmarkwww.energystar.gov/benchmark

It’s free, requires user name and It’s free, requires user name and password, and allows multiple password, and allows multiple users.users.

Information is secure and Information is secure and confidential. confidential.

Develop criteria that will work Develop criteria that will work best at your wastewater plantbest at your wastewater plant

Project feasibility Project feasibility Opportunities for renewable Opportunities for renewable

energy energy Energy reduction potentialEnergy reduction potential Availability of fundingAvailability of funding Existing need for equipment Existing need for equipment

upgradeupgrade Return on investmentReturn on investment Regulatory requirementRegulatory requirement Support of other prioritiesSupport of other priorities Ease of implementationEase of implementation

www.thedailygreen.com/.../energy-meter-lg.jpg

Brag:Brag:New England Case StudyNew England Case Study

Total Project Cost

Annual Energy Savings

Estimated Operating Cost Savings

Simple Payback

Efficiency Maine Incentive

Payback After Incentive

$59,870 375,940 kWh

$30,074* 2 years $14,968 1.5 years

29

BATH WATER DISTRICT

Replaced throttling valves with variable frequency drives on two 75 HP raw water pumps and three 150 HP treated water distribution pumps

* Assumes $0.08 / kWh blended cost in 2003source: JTurgeon EPA Region 1

Bravo!

How to Customize Your Energy How to Customize Your Energy ManagementManagement

1.1. Make a commitmentMake a commitment

2.2. Pay attentionPay attention

3.3. Write things downWrite things down

4.4. Do the work and check resultsDo the work and check results

5.5. BragBrag

6. Repeat6. Repeat• Apply lessons learnedApply lessons learned

• Adjust and correct as you get toward your Adjust and correct as you get toward your goalsgoals

• An on-going processAn on-going process

Indiana Energy Management Indiana Energy Management Pilot Project 2009-2011Pilot Project 2009-2011

September 2009 – Pilot kick off

October 2009 to February 2010 – EPA and IDEM visited the utilities to look at plants

October 2009 to May 2010 - Monthly all hands, check-in calls. Energy Management assistance by GETF

June 2010 to August 2010 – Technical assistance on-site provided by IDEM and Siemens

September 2010 - Mid-project workshop will share lessons learned and identify energy reduction targets

September 2011 – Final report

Angola WW Logansport DW and WWBloomington WW Mishawaka DW and WWSouth Bend WW Valparaiso DW and WWLafayette WW West Lafayette WW

Project ParticipantsProject Participants

Project ComponentsProject Components

Energy Use BenchmarkingEnergy Use Benchmarking– Portfolio ManagerPortfolio Manager– Collecting baseline data- trackingCollecting baseline data- tracking

Energy Management assistanceEnergy Management assistance– Technical assistance from EPA, IDEM, SiemensTechnical assistance from EPA, IDEM, Siemens

Roundtable Discussions and monthly Roundtable Discussions and monthly trainingstrainings

Facility ImprovementsFacility Improvements PartnershipsPartnerships

– Idea sharing among participantsIdea sharing among participants

Project’s Expected Project’s Expected ResultsResults

Pilot communities gain knowledge Pilot communities gain knowledge about energy management and have about energy management and have customized energy management planscustomized energy management plans

EPA and IDEM gains a set of case EPA and IDEM gains a set of case studies and a worked examples of the studies and a worked examples of the Guidebook available to share with other Guidebook available to share with other facilitiesfacilities

Pilot communities are established as Pilot communities are established as leaders in their industry and set leaders in their industry and set example for other communities as example for other communities as energy leadersenergy leaders

Energy Energy Management Management Next StepsNext Steps

Work on an improved Portfolio Work on an improved Portfolio Manager, and Guidebook Manager, and Guidebook supplementsupplement

Gather and distribute lessons Gather and distribute lessons learnedlearned

Continue to work with pilot utilitiesContinue to work with pilot utilities Provide outreach tools on energy Provide outreach tools on energy

management. management.

Resources Resources

Portfolio Manager Quick Reference Portfolio Manager Quick Reference GuideGuide

http://www.energystar.gov/ia/business/http://www.energystar.gov/ia/business/downloads/PM_QuickRefGuide.pdfdownloads/PM_QuickRefGuide.pdf

Energy Management GuidebookEnergy Management Guidebookhttp://www.epa.gov/owm/http://www.epa.gov/owm/

waterinfrastructure/pdfs/waterinfrastructure/pdfs/guidebook_si_energymanagement.pdfguidebook_si_energymanagement.pdf 3636

Contact InformationContact InformationLouann UngerSustainable Water Infrastructure CoordinatorU.S. EPA Region 5 Water Division(312) 353-5089Unger.louann@epa.gov

Jennifer SchickChief, Pollution Prevention BranchIndiana Department of Environmental ManagementOffice of Pollution Prevention and Technical Assistance(317) 234-5286jschick@idem.IN.gov