David Dunn P.E. Washington State Department of Ecology

Transcription

1 David Dunn P.E. Washington State Department of Ecology

2 Welcome This is a general overview Ask your questions at anytime 2

3 Why work to save energy at your facility? Your system is using too much energy Energy is money Energy is carbon Best use of ratepayer dollars Good public image as environmental steward Build culture of sustainability 3

4 How can you save energy? More efficient equipment More efficient processes More efficient design (proper unit sizing and turndown capacity) More efficient operation Use of renewables 4

5 How do you pay for energy projects? Public Financing Grants are (sometimes) available Performance Contracting Power Company Rebates 5

6

7 Subsidized Loan Programs State Revolving Fund Clean Water Act Safe Drinking Water Act Public Works Assistance Account WA state 7

8 State Revolving Fund (SRF) Federally capitalized Nationwide program, but state managed Revolving loan program Subsidized interest rates Principal forgiveness 8

9 State Revolving Fund interest Rates (for 2012) Idaho % Oregon % Washington - 2.3% Lower rates are offered for shorter terms and financially challenged communities. 9

10 SRF and "Green Projects" EPA requires that SRF programs invest in green projects 10% of the EPA capitalization is reserved GPR = Green Project Reserve 10

11 GPR Categories Green infrastructure Water Efficiency Energy Efficiency Environmentally Innovative 11

12 GPR Energy Efficiency Projects (from the EPA GPR guidance) Renewable energy projects Energy retrofits achieving 20% savings I/I detection equipment Energy planning and audits 12

13 GPR Projects Requiring Business Case (from the EPA GPR guidance) Efficiency projects with less than 20% savings. Implementing the recommendations of an energy audit. Replacing pumped systems with gravity systems I/I projects justified by the energy savings (pumping and treatment costs) Replacing pre 1992 motors with NEMA premium efficiency motors lighting upgrades SCADA and VFD systems 13

14 GPR Business Case Document costs and energy savings The project must maximize energy saving opportunities The project must be cost effective (energy savings payback over the useful life of the asset) 14

15 Grants Are (SomeQmes) Available American Recovery and Reinvestment Act half of the loans were forgiven 2012 Energy Efficiency Grants for Local Governments (WA state) $18 million competitive statewide For energy saving improvements 15

16

17 Performance ContracQng Alternative public works procurement method for energy projects Contractor selection by RFQ (not bid) Negotiated scope and cost Guaranteed performance Maximum project cost Energy savings Equipment performance Generally used for retrofit projects. 17

18 DefiniQons ESPC - Energy Saving Performance Contracting - A partnership between the project owner and an ESCO to accomplish energy savings projects. ESCO - Energy Services Company - A specialty contractor the develops and installs projects to improve energy efficiency and reduce operation and maintenance costs 18

19 Authorized in Most States Statutory Authority ID/OR/WA ID - Idaho Code D OR - ORS 279A.065 WA - RCW 39.35A Exact state procedures vary. 19

20 Performance ContracQng Procedures Feasibility assessment/ Preliminary Audit Hire an ESCO Develop project scope (Investment Grade Audit) Execute project Ongoing performance monitoring 20

21 Timelines and Payback The savings ($) > the debt service for the project Some jurisdictions use payback period. 3 years, 5 years, 10 years Think of the energy project as an investment (ROI) 33% ROI, 20% ROI, 10% ROI 21

22 Washington State "Energy Audits" New WA legislative requirement A condition of state loans and grants Water and Wastewater projects Requires energy efficiency incorporation into funded project Can be satisfied by met by past ESPC 22

23

24 Power UQlity Rebates Power utilities will pay you to install energy efficiency projects Let that sink in 24

25 Why would power uqliqes do that? Power utilities need to manage the power load on the grid Base power Peak times Power utilities can: Build new generation capacity Make existing generation plants more efficient Reduce the demand for power (There is a lesson here for water utilities) 25

26 What kind of help can power uqliqes provide? Technical Assistance Cash payment for Energy Conserving Measures (ECM) A percentage of the installed cost Rebate based on the actual kwh saved "Track and Tune" programs Long term partnerships to optimize operations for energy conservation. Annual system monitoring to document and evaluate progress Negotiated billing 26

27 Distributed GeneraQon Most wastewater facilities have emergency backup generation Power utilities will pay you to operate your generator during peak grid demand (rather than buy expensive power from another utility) Pay for equipment installation Pay for fuel Pay for or perform load testing and maintenance 27

28

29 In conclusion Why work to save energy at your facility? Your system is using too much energy Energy is money Energy is carbon Best use of ratepayer dollars Good public image as environmental steward Build culture of sustainability 29

30 In conclusion How can you save energy?. More efficient equipment More efficient processes More efficient design (proper unit sizing and turndown capacity) More efficient operation Use of renewables 30

31 In conclusion How do you pay for energy projects? Public financing Grants are (sometimes) available Performance contracting Power Company Rebates 31

32 Thank You! Any Final QuesQons? 32

33 AddiQonal informaqon 360/ Ecology funding program site: funding.html FY2014 Funding information: Grant and Loan listserv: 33