BENCHMARKING: SETTING AND MEASURING ENERGY CONSERVATION, RENEWABLE ENERGY, AND CARBON EMISSION GOALS AND PERFORMANCE

Transcription

1 BENCHMARKING: SETTING AND MEASURING ENERGY CONSERVATION, RENEWABLE ENERGY, AND CARBON EMISSION GOALS AND PERFORMANCE August 12, 2010 Vic Smith PE, LEED AP, CEM MI AWWA & MWEA 2010 Joint Annual Conference Soaring Eagle Resort, August 10-13, 2010

2 It s difficult to manage what you don t measure...

3 Utility, Energy Conservation, GHG Emissions & Renewable Energy Impacts on Michigan s Water and Wastewater Industry

4 Energy Supply, Demand & Security: World Population Growth

5 Comparison of US, Iceland and France s per Capita CO2 Emissions USA Metric Tons CO2 per Capita e FRANCE ICELAND 0 China & India MBTU per Capita

6 Energy Consumption of Water and Wastewater in Perspective

7 US Demand for Electricity Is Projected to Increase at Least 30% by 2030

8 China s Demand for Electricity is Projected to Increase as much as 200% by 2030 In 2007, China had total installed electricity generating capacity of 624 Gigawatt (GW), and 3,042 billion kilowatt-hours of generation Source: Data obtained from the International Energy Agency, World Energy Outlook 2006 Even if they reduce their Metric Ton CO2 /MWh to.5 from the current.8, the resulting emissions increase in 2030 will be ~2,330 Million Metric Tons of CO2

9 Michigan Utilities U.S. Energy Information Agency

10 Michigan Utilities 61% Coal 27% Nuclear 1,478 lbs CO 2 /MWh

11 Legislation, Standards & Executive Order Impacts

12 Legislative, Legal and Political Issues, Challenges and Opportunities U.S. American Clean Energy and Security Act, H.R. 2454, passed in the House of Representatives June 2009 and was sent to the Senate: Draft Senate Climate Bill: Boxer-Kerry, Clean Energy Jobs and American Power Act, S (Both Bills Include a Cap & Trade System) Michigan Clean, Renewable and Efficient Energy Act, signed into Law October 6, 2008, mandates 10% of retail electricity sales from renewable energy resources by 2015

13 Michigan Climate Actions Michigan Governor Issues Executive Directive to Reduce State Greenhouse Gas Emissions, August 2009 Michigan Climate Action Plan, March 2009 Michigan Renewable Energy and Energy Efficiency Legislation, October 2008 Michigan Green Building Standards, September 2007 Michigan Public Benefit Fund, September 2007 DSIRE.org; Pewclimate.org

14 Legal & Political Impacts- The Landmark Case Massachusetts v. EPA; Supreme Court Ruling, April 2, 2007 Early 2007: 151 coal-fired power plants in the planning stages During 2007, 59 were refused licenses or quietly abandoned. 50 more coal plants are being contested in the courts Remaining plants will likely be challenged before permitting stage.

15 EPA Commences CO 2 Reporting Act (H.R. 2764; Public Law ), EPA has issued 40 CFR Part 98, which requires reporting of greenhouse gas (GHG) emissions from large sources and suppliers in the United States. Part 98 is intended to collect accurate and timely emissions data to inform future policy decisions. Under Part 98, suppliers of fossil fuels or industrial greenhouse gases, manufacturers of vehicles and engines, and facilities that emit 25,000 metric tons or more per year of GHG emissions are required to submit annual reports to EPA. Part 98 was published in the Federal Register ( on October 30, 2009 under Docket ID No. EPA- HQ-OAR Part 98 became effective December 29, This action included reporting requirements for 31 of the 42 emission sources listed in the April 10, 2009 proposed rule.

16 Simplified Cap & Trade Diagram

17 Actual Cap & Trade Diagram

18 Benchmarking- Leveling the Playing Field & Measuring Results

19 Energy Management Program Elements Review Select Champions, Set Goals Energy Accounting & Monitoring* Fine Tune Operations Energy Reduction Investments Energy Recovery Investments Renewable Energy Investments * A Benchmark is a point of reference from which to make comparisons

20 Fundamental Energy & CO 2 Benchmark Calculations Electricity kwh/mg = Annual kwh MG/Year MT CO 2 /Year = Annual MWh x 1,478 lb/mwh (1) 2,200 lb CO 2 /MT (2,5) Natural Gas Therms/MG (3) = Annual Therms MG/Year, (or) Therms/HDD = Annual Therms Annual Heating Degree Days MT CO 2 /Year = Annual Therms lb CO 2 /MMBTU (4) 2,200 lb CO 2 /MT (2,5) (1) From US Energy Information Agency 2008 Data for Michigan Electric Utilities (2) One Metric Tonne equals 2,200 pounds (3) One Therm is 100,000 BTU or 100 MBTU. To convert to MBTU/MG, multiply by 100. To convert to equivalent kwh/mg, multiply MBTU/MG by (4) US EPA Data for Carbon Dioxide emitted combusting one million BTU (one MMBTU) of Natural gas (5) To convert MT CO2/Year to lbs CO2/MG, divide by (MG/Year x 2,200)

21 Saginaw- Energy Benchmark for Electricity and Natural Gas Electricity: 7,503 MWh/yr* 7,880 MG 952 kwh/mg (Plant & Distribution) 765 kwh/mg (Plant Only) Natural Gas*: ~130,000 Therms/yr 16.5 Therms/MG Other Constituents: Vehicles Off-Site Processing 3,414 BTU/kWh ~472 kwh/mg Equivalent * FY 2008

22 Saginaw- Carbon Footprint for Electricity and Natural Gas Electricity: ~8,000 MWh/yr 1,478 lbs CO2/MWH* 2,200 lbs/metric Ton (MT) ~5,300 MT CO2/yr Natural Gas: ~130,000 Therms/yr 100,000 BTU/Therm lbs CO2/MBTU** ~670 MT CO2/yr * From EIA Michigan Electricity Summary Data for 2008 **From EIA Energy & Carbon Units Conversion Table, 2004 Other Constituents That Could Be Evaluated & Added: Chemicals Vehicles Any Off-gassing Construction/Renovation Credits for Trees

23 USEPA Energy Star- Portfolio Manager Input

24 USEPA Energy Star- Portfolio Manager Performance Metrics

25 WWTP Process GHG IPS N 2 O Headworks CO 2 Grit Primary CH 4 + CO 2 AD Sources Secondary N 2 O + CO 2 Tertiary

26 Summary of USEPA s Current WWTP Recommended Emission Factors (July 09) CO 2 CH 4 N 2 O 1.37 g / g COD 0.30 g / g COD 0.09 g / g COD 5.1 g / cap / yr Anaerobic Processes Only All Activated Sludge Processes Source: Inventory of US GHG Emissions and Sinks: USEPA

27 What About Process-Released GHG Emissions? (WWTP GHG Resource) Local Government Operations Protocol For the quantification and reporting of greenhouse Gas emissions inventories Developed in partnership by: California Air Resources Board California Climate Action Registry ICLEI Local Governments for Sustainability The Climate Registry

28 System Energy Management & Benchmarking- Getting Below the Surface

29 Energy Costs by Source (Michigan City WTP- 2005) 27% 53% 20%

30 Energy Costs by End Use- (Michigan City WTP- 2005) HVAC Fans, 2% Air Conditioning, 10% Building Electric, 5% Vehicles, 6% Low Lift Pumps, 10% Process, 3% Heating, 27% Booster Pumps, 6% High Lift Pumps, 41%

31 Energy Costs by End Use- (Mishawaka WWTP- 2007) Blowers $ x 1, Process Pumps Blowers Misc Proc 35.0 Lights 17.6 Fans 43.8 Process Pumps 72.4 AC & Pumps 33.2 Misc Proc 32.0 Lights 16.7 Fans 41.6 AC & Pumps 28.1 Heating Heating 85.2 Before 2004 After % Electricity 22% Natural Gas

32 2005 Electric Costs (Michigan City WTP- 2005) Demand Cost $ Usage Cost $ Total Cost $ MG $35, $30, $25, $20,000 $15, MG $10, $5, $- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0

33 2005 Gas Usage and Cost Usage Therms Usage Cost $ Therm/Degree Day Usage Therms & Usage Cost ($) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0

34 Advanced Treatment Impacts Health July 14, 2009 Chicago water: In public reports, city silent over sex hormones and painkillers found in treated drinking water LP, High Output UV Pharmaceutical chemicals aren't on list of substances in water that require public notice Ozone RO/Membrane

35 Advanced Water Treatment Energy Impacts 1. UV disinfection against Cryptosporidium for large water utility: 20 to 200 kwh/mg a. Lower limit: Filtered Lake Michigan Water; Upper limit: Filtered River Water b. Lower limit: Low pressure, high output UV system; Upper Limit: Medium pressure system 2. Ozone for large water utilities: 40 to 500 kwh/mg a. Lower limit: taste and odor control, oxidation of Fe/Mn; Upper limit: disinfection against Cryptosporidium, oxidation of EDCs b. Lower limit: Great Lake waters (water with low ozone demand); Upper limit: River waters (water with high ozone demand) 3. Microfiltration/Ultrafiltration (low pressure membranes) for removal of microbial pathogens: 400 to 1,000 kwh/mg a. Lower limit: warmer water (FL, AZ); Upper limit: colder water (MI, IL) 4. Nanofiltration/Reverse Osmosis (high pressure membranes) for removal of EDCs: 500 to 5,000 kwh/mg a. Lower limit: warmer water; Upper limit: colder water b. Lower limit: water with low TDS; Upper limit: water with high TDS c. Lower limit (for RO): system with energy recovery systems, which are used to transfer energy from RO effluent to feed water (expensive devices); Upper limit: without energy recovery systems

36 Advanced Water Treatment Energy Impacts

37 Benchmark Energy Usage for Various Water Sources Program on Technology Innovation: Electric Efficiency Through Water Supply Technologies A Roadmap, EPRI, June 2009

38 Benchmark Water System Energy Usage for Various Geographic Locations Program on Technology Innovation: Electric Efficiency Through Water Supply Technologies A Roadmap, EPRI, June 2009

39 Comparative Wastewater Energy Consumption Factors * ACHIEVING STRINGENT EFFLUENT LIMITS TAKES A LOT OF ENERGY! Hugh Monteith(1), Youssouf Kalogo(1) and Nuno Louzeiro(2), (1)Hydromantis, Inc., (2)XCG Consultants Ltd. ** ** * Gal/m3; Multiply by 3.8 for kwh/mg ** Added to Base Energy Consumption Factor

40 Wastewater RO Benchmark Effect ACHIEVING STRINGENT EFFLUENT LIMITS TAKES A LOT OF ENERGY! Hugh Monteith(1), Youssouf Kalogo(1) and Nuno Louzeiro(2), (1)Hydromantis, Inc., (2)XCG Consultants Ltd.

41 Renewable Energy

42 Saginaw Goes Carbon Free- Solar Photo Voltaics to Replace kwh Saginaw WTP: ~8 M kwh/yr ~130,000 Therms/yr ~5,970 Metric Tons CO2/yr (5,300 Elec., 670 NG) Solar PV to Replace Electricity Consumption: ~7.1 MW Collector Capacity ~19 Acres ~$49,000,000

43 Saginaw Goes Carbon Free- Wind Turbines to Replace kwh Saginaw WTP: ~8 M kwh/yr ~130,000 Therms/yr ~5,970 Metric Tons CO2/yr Wind Turbines to Replace Electricity Consumption: ~4.6 MW Turbine Capacity ~915 Acres ~$11,400,000

44 Saginaw Goes Carbon Free- Biofuel to Replace Natural Gas Saginaw WTP: ~8 M kwh/yr ~130,000 Therms/yr ~5,970 Metric Tons CO2/yr Corn Production to Replace Natural Gas Consumption: ~740 Acres ~$480,500 Fuel Cost

45 Saginaw Goes Carbon Freeor New Forest to Offset CO2 Emissions Saginaw WTP: ~8 M kwh/yr ~130,000 Therms/yr ~5,970 Metric Tons CO2/yr New Forest to Offset Carbon Emissions: ~1.5 MT/acre, estimates vary widely ~8,950 Acres

46 Some Conclusions Develop Benchmarks from Evaluation of End Uses of Energy When Evaluating Energy Projects, Include Evaluation of Economic Returns Energy Efficiency Improvements Almost Always Trump Renewable Investments Be Prepared for Potential Carbon Accounting Requirements Enter Your Facility Data in Portfolio Manager

47 Questions?

48 From The Supreme Court To Alberta, Canada To Michigan Natural Gas Prices No New Coal-Fired Plants Utilities Forced To Use Natural Gas Gas Demand Increases, Pushing Up On The Supply Curve We Used To Buy Safety Valve Supply From Alberta Oil Price Rises Above $100 Per BBL Alberta Has Huge Reserves Of Oil Sand That Requires Huge Amounts Of Recovery Energy It s More Economic For Alberta To Use The Gas For Oil Recovery Than To Export It