Maine Water Utilities Association Managing your System and Supply for Efficiency September 9, 2010 Augusta, Maine

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1 Maine Water Utilities Association Managing your System and Supply for Efficiency September 9, 2010 Augusta, Maine Normand R. Lamie, P.E. Chief Engineer Maine Department of Health and Human Services Maine Center for Disease Control & Prevention Division of Environmental Health Drinking Water Program

2 State Revolving Fund 2010 Green Project Reserve A Business Case Estimating the Value of Water Loss for a Water Main Replacement Projects

3 2010 Clean Water and Drinking Water State Revolving Fund - 20% Green Project Reserve Public Law included the language Provided, that for fiscal year 2010, to the extent there are sufficient eligible project applications, not less than 20% of the funds made available under this title to each State for Drinking Water State Revolving Fund capitalization grants shall be used by the State for projects to address green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities.

4 Four categories of GPR Projects Green Infrastructure Water Efficiency Energy Efficiency Environmentally Innovative

5 Green Infrastructure The preservation and restoration of natural landscape features, such as forests, floodplains and wetlands, coupled with policies such as infill and redevelopment that reduce overall imperviousness in a watershed. Categorical Green i. Pervious or porous pavement ii. Biorentention iii. Green roofs iv. Rainwater harvesting/cisterns v. Grey water use vi. Moisture and rain sensing irrigation equipment Business Green i. Green infrastructure projects mimic natural hydrologic conditions ii. Projects capture, treat, infiltrate, or evapotranspire stormwater on the parcels where it falls and does not include inter basin transfers of water.

6 Water Efficiency Use of improved technologies and practices to deliver equal or better services with less water including conservation and reuse efforts, as well as water loss reduction and prevention, to protect water resources for the future. Categorical Green i. Installing or retrofitting water efficient devices such as plumbing fixtures and appliances ii. Installing any type of water meter in previously unmetered areas iii. Replace existing broken/malfunctioning water meters, or upgrading existing meters with AMR iv. Distribution system leak detection equipment v. Conduct water audits, leak detection studies, and water use efficiency baseline studies vi. Automatic flushing systems vii. Recycling and water reuse projects that replace potable sources with non-potable sources Business Green i. Water meter replacement with traditional water meters ii. Distribution pipe replacement or rehabilitation to reduce water loss and prevent water main breaks iii. Storage tank replacement/rehabilitation to reduce water loss

7 Energy Efficiency The use of improved technologies and practices to reduce the energy consumption of water projects, use energy in a more efficiency way, and/or produce/utilize renewable energy. Categorical Green i. Renewable energy generation which is part of a larger public health project (such as solar, wind, geothermal, hydroelectric, micro-hydroelectric, bioenergy, etc) ii. Conducting energy audits, assessments, and optimization studies iii. National Electric Manufacturers Association (NEMA) Premium energy efficiency motors Business Green i.. Projects should include products and practices which will decrease environmental impacts, such as reducing greenhouse gas emissions ii. Energy efficient retrofits and upgrades to pumping systems and treatment iii. Installation of variable frequency drives (VFDs) iv. Automated and remote control systems (SCADA)

8 Environmentally Innovative Environmentally innovative projects include those that demonstrate new and/or innovative approaches to delivering services or managing water resources in a more sustainable way. Categorical Green i. US Building Council LEED certified water system facilities Business Green i. Design practices that reduce carbon footprint ii. Projects that achieve the goals/objectives of utility asset management plans

9 The 20% Green Requirement for the 2010 Maine DW-SRF 2010 DW-SRF "Green Projects" TOTAL Green Value: $ 3,736,451 Total 2010 DWSRF Capitilization Grant $ 13,573,000 % Green Goal 20% ACTUAL GREEN 28% 2010 DW-SRF "Green Projects" Categorical Business Case TOTAL Green Infrastructure $ 400,000 $ - $ 400,000 Water Efficiency $ 127,125 $ 911,405 $ 1,038,530 Energy Efficiency $ 301,921 $ 301,921 Environmentally Inovation $ 1,996,000 $ - $ 1,996,000 TOTAL $ 2,825,046 $ 911,405 $ 3,736,451 76% 24%

10 Categorically Green Projects CATEGORICALLY GREEN PROJECTS Project ID # PROJECT Total Project Cost % Green Green Value Bangor Water District $ 1,846, % $ 1,846, L Lewiston Water Division $ 500,000 15% $ 75, A Auburn Water District $ 500,000 15% $ 75, Pittsfield Water District $ 508,500 25% $ 127, Bar Harbor Water Division $ 323,850 77% $ 250, Bangor Water District $ 346,137 15% $ 51,921 Set-Aside Watershed Protection Land Acquisition Set-Aside $ 400, % $ 400,000 Total Categorically Green Projects: $ 4,424,487 64% $ 2,825,046

11 Business Cases for Water Main Replacement Projects BUSINESS CASE PROJECTS Project ID # PROJECT Total Project Cost % Green Green Value Passamaquoddy Project # 1 $ 606, % $ 100, Passamaquoddy Project # 2 $ 409, % $ 49, Bath Water District $ 659, % $ 31, Rangeley Water District # 1 $ 378, % $ 105, Rangeley Water District # 2 $ 357, % $ 36, Old Town Water District $ 524, % $ 53, Island Falls Water Department # 1 $ 796, % $ 85, Island Falls Water Department # 2 $ 240, % $ 30, Hampden Water District $ 721, % $ 40, Caribou Utilities District $ 284, % $ 52, Portland Water District, Project D $ 500, % $ 29, Portland Water District, Project E $ 625, % $ 44, Portland Water District, Project G $ 149, % $ 10, Presque Isle Water Department $ 450, % $ 46, Calais Water Department $ 695, % $ 48, Lewiston Water Division $ 945, % $ 145,962 TOTAL (all water main replacements) $ 4,977,778 18% $ 911,406

12 Water Efficiency Distribution pipe replacement or rehabilitation to reduce water loss and prevent water main breaks. REQUIRES a Business Case for each pipeline Project

13 State of Maine Drinking Water Program developed a standard method for estimating the value of water loss for a Water Main Replacement Project that meets EPA s GPR Business Case Analysis criteria.

14 Using Annual Reports to MPUC Page W-12 provides a detailed analysis of utilities water production and consumption information. Specific details include Production Water (line 15), Revenue Water (Line 17), as well as estimated water losses from bleeders, blow-offs, main breaks, service leaks, and main flushing. Page W-9 provides the total length of mains in service. Page W-2 provides the water production cost

15 From Annual Reports to MPUC With this information, one can calculate the estimated water loss in gallons per foot of pipe per day. Using the average water loss per foot and the specific pipeline proposed for replacement, one can allocate water losses associated with the proposed pipeline project. Using the water production cost information one can calculate the Annual Projected Value of Water Loss associated with the proposed project.

16 Allocating water loss by age of pipe Knowing that older water mains and services will typically be the source of more leaks, or water losses, a ratio to distribute water losses by the age of mains. Pipes 0 to 25 years old are not expected to leak therefore no water loss is attributed to pipes less than 25 years old. Pipes 26 to 50 years old will account for 10% of all water losses. Pipes 51 to 75 years old will account for 30% of water losses and pipes older than 75 years will represent 60% of all pipeline water losses.

17 Calculating the value of water loss The MPUC allows depreciation of water distribution mains over a 75 year period. Using the MPUC time period (which should be the absolute minimum that a new water main will remain in service, or economic life) a Present Value (PV) calculation can be made of the an Annuity (Annual Value) of Water Loss using a 1% value of money over 75 years. The resulting PV can be compared with the Project Cost Estimate to determine the % of project expense attributed to the value of reduced water loss.

18 DW-SRF 2010 Project Proposal for Green Project Reserve Methodology using format from EPA s June 22, 2009 guidance for GPR business cases ESTIMATE OF VALUE OF WATER LOSS WORKSHEET 1 Date: 5-Mar-10 2 PWSID # System BATH WATER DISTRICT 4 Project Name Main Replacement Project 5 Location Centre Street 6 Engineering Consultant Wright-Pierce, Daniel Flagg, P.E. 7 Existing Main size, age, and type 6" and 8" cast iron unlined pipe 8 Proposed New Water Main size and type 12" Ductile Iron cement lined pipe 9 New Main Pipe Length 2, Estimated Project Cost $ 659,022 Note: Data from Utilities Annual Report (2008) to Maine Public Utilities Commission 2008 Page Line Description Units W Total Production Water gallons per year 377,223,000 W Total Revenue Water gallons per year 333,686,000 W Total Non-Revenue Water gallons per year 43,537,000 W Percent Non-Revenue Water 12% W Utility Usage - treatment gallons per year 1,932,000 W Utility Usage - hydrant flushing gallons per year 3,250,000 W Utility Usage - bleeders gallons per year 6,268,000 W Utility Usage - all other (running customers & blow-offs) gallons per year 6,950,000 W Fire Protection gallons per year 1,300,000 W Main Breaks gallons per year 2,000,000 W Flushing Mains gallons per year 75,000 W Total Accounted for Non-Revenue Water gallons per year 21,775,000 W Total Unaccounted Non-Revenue Water gallons per year 21,762,000 Estimated Water Loss From ALL Breaks, Leaks, & Bleeders gallons per year 37,055,000 (PUC Accounts total of lines 14, 26,31,35 and 37) % of Water Loss of Total Production Water 10% (PUC Lines 14,26,31,35,37 divided by Line 15) Estimated Value of Water Loss Worksheet for Bath Water District W-9 9 Total Transmission Mains feet 55,369 W-9 23 Total Distribution Mains feet 228,477 Total Mains in Service feet 283,846 miles 54 Estimated Distribution System Losses: Loss Water per mile of pipe gallons per mile per year 689,284 Loss Water per foot of pipe per year gallons per foot per year 131 Loss water per foot of pipe per day gallons per foot per day 0.36 Water loss will vary with age of water main - assume Straight line projection as follows: 0 to 25 year old pipe 0 % of Total Loss gallons per mile per year - 26 to 50 year old pipe 10% of Total Loss gallons per mile per year 68, to 75 year old pipe 30% of Total Loss gallons per mile per year 206,785 over 75 year old pipe 60% of Total Loss gallons per mile per year 413,570 All Loses: 689,284 Age of Main to be replaced years 100 Length of Main to be Replaced mile 0.47 CALCULATED WATER LOSS - FOR PROPOSED PROJECT gallons per year 195,819 W-2 29c Total PRODUCTION COST of Water $/year $ 1,162,359 W Total Production Water 1,000 gallons per year 377,223 Production Cost of Water per 1,000 gallons $ 3.08 PROJECTED ANNUAL VALUE of WATER LOSS per year $ 603 Annual Savings $ 603 PV Factor ( uniform series present worth factor (1%, 75 years): $ Present Value of Savings over Economic life of pipeline: $ 31,730 Project Cost $ 659,022 PV Percent of Project Cost: 5% ESTIMATED % Green 5% $ Amount Green $ 31,730

19 Project Details ESTIMATE OF VALUE OF WATER LOSS WORKSHEET 1 Date: 5-Mar-10 2 PWSID # System BATH WATER DISTRICT 4 Project Name Main Replacement Project 5 Location Centre Street 6 Engineering Consultant Wright-Pierce, Daniel Flagg, P.E. 7 Existing Main size, age, and type 6" and 8" cast iron unlined pipe 8 Proposed New Water Main size and type 12" Ductile Iron cement lined pipe 9 New Main Pipe Length 2, Estimated Project Cost $ 659,022

20 Note: Data from Utilities Annual Report (2008) to Maine Public Utilities Commission 2008 Page Line Description Units W Total Production Water gallons per year 377,223,000 W Total Revenue Water gallons per year 333,686,000 W Total Non-Revenue Water gallons per year 43,537,000 W Percent Non-Revenue Water 12% W Utility Usage - treatment gallons per year 1,932,000 W Utility Usage - hydrant flushing gallons per year 3,250,000 W Utility Usage - bleeders gallons per year 6,268,000 W Utility Usage - all other (running customers & blow-offs) gallons per year 6,950,000 W Fire Protection gallons per year 1,300,000 W Main Breaks gallons per year 2,000,000 W Flushing Mains gallons per year 75,000 W Total Accounted for Non-Revenue Water gallons per year 21,775,000 W Total Unaccounted Non-Revenue Water gallons per year 21,762,000 Estimated Water Loss From ALL Breaks, Leaks, & Bleedegallons per year 37,055,000 (PUC Accounts total of lines 14, 26,31,35 and 37) % of Water Loss of Total Production Water 10% (PUC Lines 14,26,31,35,37 divided by Line 15)

21 Loss Water per mile of pipe = Water Loss / Total Pipelines 37,055,000 gallons / 54 miles = 689,287 W-9 9 Total Transmission Mains feet 55,369 W-9 23 Total Distribution Mains feet 228,477 Total Mains in Service feet 283,846 miles 54 Estimated Distribution System Losses: Loss Water per mile of pipe gallons per mile per y 689,284 Loss Water per foot of pipe per year gallons per foot per y 131 Loss water per foot of pipe per day gallons per foot per d 0.36 Water loss will vary with age of water main - assume Straight line projection as follows: 0 to 25 year old pipe (0% of total loss) gallons per mile per y - 26 to 50 year old pipe (10% of total loss) gallons per mile per y 68, to 75 year old pipe 930% of total loss) gallons per mile per y 206,785 over 75 year old pipe (60% of total loss) gallons per mile per y 413,570 All Loses: 689,284

22 Calculated Water Loss = Loss per Mile X Pipe length replaced = 37,055,000 gal per mile / 0.47 miles = 195,819 gallons Age of Main to be replaced years 100 Length of Main to be Replaced mile 0.47 CALCULATED WATER LOSS - FOR PROPOSED PROgallons per year 195,819 W-2 29c Total PRODUCTION COST of Water $/year $ 1,162,359 W Total Production Water 1,000 gallons per year 377,223 Production Cost of Water per 1,000 gallons $ 3.08 PROJECTED ANNUAL VALUE of WATER LOSS per year $ 603 Projected Annual Value of Water Loss = Calculated Water Loss X Production Cost = 195,819 gallons X 3.08 per thousand gallons = $603 per year

23 Present Value of $603 over 75 years with 1% interest = $31,730 Green Value = $31,730 over 75 year economic life of pipe Annual Savings $ 603 PV Factor ( uniform series present worth factor (1%, 75 years): $ Present Value of Savings over Economic life of pipeline: $ 31,730 Project Cost $ 659,022 PV Percent of Project Cost: 5% ESTIMATED % Green 5% $ Amount Green $ 31,730

24 Summary Bath Water District Project Replacing existing 6 and 8 cast iron unlined pipe with new 12 ductile iron cement lined pipe Total Estimated Project Cost = $659,022 Total calculated water saved = 195,819 gal/year Total value of annual water saved = $603 Present Value of 75 years worth of savings = $31,730 Green value = $31,730 or about 5% of project cost

25 Green Value will vary with: Amount of non-revenue water Age of pipeline being replaced Project Cost Cost of production water Green in 2010 Pipe Replacement Projects ranged from 4.8% to 27.9% with average of 18% (correlation with unaccounted water)

26 QUESTIONS?