Renewable Energy Production Opportunities at Water and Wastewater Utilities


                               Renewable Energy Production Opportunities
                               at Water and Wastewater Utilities
Reduce Operating Costs, Reliance on the Grid, and Carbon Dioxide Emissions Using
                     Renewable Energy with Little-to-No Upfront Costs
 Energy costs are a major concern for water-wastewater utilities and municipal officials. Across the U.S., municipalities spend
 almost $4 billion annually on energy, consume almost three percent of the nation's energy resources, and contribute about 45
 million tons of greenhouse gases per year.
 Power Purchase Agreements (PPAs)
 Power Purchase Agreements (PPAs) are an excellent way to initiate and fund renewable energy projects in the water sector.
 PPAs in the water sector are finance contracts between a water/wastewater utility owner, and a third-party renewable
 energy developer that owns, operates, and maintains the renewable energy system. In exchange for upfront costs and
 maintenance, the signatory must commit to buying the energy from the provider at a predetermined rate (delineated in the
 contract) for a period commonly lasting 15-20 years. This financial arrangement ensures stable and often lower-cost
 electricity with zero maintenance costs.
 Benefits to Participating Utilities
     0  FEWER UPFRONT COSTS
     0  LOWER ESCALATORS
     0  ZERO MAINTENANCE
     0  CO2 REDUCTIONS
0  AIR QUALITY PERMIT COMPLIANCE
0  RENEWABLE ENERGY GENERATION
0  REDUCED GREENHOUSE GAS EMISSIONS
0  15-30% ENERGY SAVINGS
0  LOWER OPERATING COSTS
0  STABLE ENERGY COSTS
0  LESS RISK
0  LOWER GRID DEMAND
These CA utilities have recently entered into PPAs and drastically lowered their CC>2 emissions while saving
energy and money:1
Utility Name
Inland Empire
Utilities Agency
(Solar)
Inland Empire
Utilities Agency
(Fuel Cell)
San Diego MWD
(Fuel Cell)
San Diego County
Water Authority
(Solar)
Thousand Oaks
(Solar)
Thousand Oaks
(Fuel Cell)
Rancho California
Water District
(Solar)
TOTALS:
Treatment Capacity,
Million Gallons per
Day (MGD) for
Wastewater Utilities
53 MGD
45 MGD
175 MGD
100 MGD
14 MGD
14 MGD
5 MGD
347 MGD
Expected Annual
Energy $$
Savings
$500,000
Same Price as Grid
$338,000
$85,000
$200,000
$60,000
$152,000
$1,335,000.00
Annual kWh Generation /
Generating Capacity
(kW)
30,660,000 kWh/yr
3,500 kW
24,528,000 kWh/yr
2,800 kW
39,420,000 kWh/yr
4,500 kW
15,768,000 kWh/yr
1,800 kW
5,115,840 kWh/yr
584 kW
3,679,200 kWh/yr
420 kW
9,636,000 kWh/yr
1,100 kW
128,807,040 kWh/yr
14,704 kW
*Est. Annual
C02
Reductions
(pels)
5,918,012
15,529,157
24,957,575
3,043,549
987,462
2,329,373
1,859,946
58,176,412
 If your utility would like to be added to this list, please contact Eric Byous at Bvous.Eric@epa.gov.

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* Calculations from table on previous page: CO2 Calculations are based on 2007 eGRIDsubregion output emission rates for the Western Electricity Coordinating
Council California (WECC).2 730 (average hours in a month) x if of months (9 months for off-peak demand emissions + 3 months for peak demand emissions) x kW
(project size) = kWh x eGRID CO2 Ib/kWh x capacity factor (25% for solar, 90% for fuel cells) = Estimated annual CO2 reductions. Because fuel cells have a high
capacity factor and run during off-peak hours, we calculated peak demand for biogas as 6 hours per day, and off-peak demand for 15.6 hours per day to determine
the total off-peak demand emissions.

How to Get Started:
S Know the type of energy you wish to generate and propose a site.
S Obtain permission from the building owner/managers.
S Calculate your energy needs based on average and peak demands.
S EPA strongly recommends the completion of a comprehensive energy audit (completed by an auditor
experienced in water/wastewater) as part of any energy management effort.
S Know your energy costs so you can negotiate savings.
S Consider adding grants and other rebates to increase your savings.
S Contact your utility to determine their requirements including: additional metering requirements and departing
load charges which may affect your decision.
S Research the feed-in tariff guidelines for your energy provider and negotiate the terms. Consult the Federal
Regulatory Commission's website for advice: http://www.ferc.gov/industries/electric/gen-
info/mbr/authorization.asp#skipnavsub.
S Contact a PPA firm to get the ball rolling. Once you have chosen a firm, you can request preliminary designs and
pricing.

Industry Advice:
A Before signing a PPA, consult other entities that have entered into a PPA with the power provider you're
considering. This will give your utility a true indicator of their quality of work and customer service.
4 To ensure better pricing for everyone over the term of the PPA, negotiate a joint3 Request for Proposal (RFP)
and PPA. If the project is large enough, renewable energy companies will likely visit the site, draft preliminary
designs, and estimate project costs.
A Consult an attorney who is familiar with renewable energy contracts.
A Ensure the "cap of power"4 is included in the PPA and that the RFP specifies the company that will be
responsible for repairs and maintenance. Repairs and maintenance should be done in a timely manner;
therefore, the contract should specify travel time, ability to obtain parts, etc.
A Negotiate the escalator (energy utility rate) based on past utility trends.
A Don't install more renewable energy than you need, unless the cap of power is included in the PPA.
4 Ensure that the contract includes the latest renewable energy technology available by consulting with industry
professionals and other entities that have entered into PPAs.
4 Make certain that the project adheres to local planning and building codes.
4 Set performance standards in the PPA. Provide incentives for equipment operation during times where grid
power is most expensive and financially incentivize the PPA to reward outstanding performance.
http://www.epa.gov/cleanenergv/documents/egridzips/eGRID2010Vl 0 vear07 SummarvTables.pdf
"joint" definition: a collaborative effort involving multiple municipally-owned facilities, buildings, lots, etc. within a political boundary such as a city or a county.
4 _.._.,.
The "cap of power" has to do with the Feed-in Tariff contractual guidelines. Will your utility be charged by its renewable energy provider for generating excess
electricity? Can your utility sell the excess electricity back to the grid? If so, how much? These are questions that all utilities should try and answer.

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Learn More:
California Solar Center: http://www.californiasolarcenter.org/sppa.html
EPA Webinar: http://www.epa.gov/greenpower/events/iuly28 webinar.htm
Solar Alliance:  http://www.solaralliance.org/home/index.html
Solar Electric Power Association: http://www.solarelectricpower.org/
Solar Energy Industries Association: http://www.seia.org/
California Public Utilities Commission: http://www.cpuc.ca.gov/PUC/energy/Procurement/Procurement/ppa.htm
DOE Sample PPAs: http://wwwl.eere.energy.gov/femp/financing/ppa sampledocs.html
Fuel Cell PPA Sample: http://www.green.ca.gov/EnergyPrograms/FuelCells.htm
Thousand Oaks Solar RFP: http://www.ci.thousand-oaks.ca.us/civica/filebank/blobdload.asp?BloblD=13765

Technical Assistance:
1)  Solution Center: EECBG and SEP grantees and sub-grantees are eligible for technical assistance, which includes RFP
    reviews http://wwwl.eere.energy.gov/wip/solutioncenter/.
        >  The Solution Center's sidebar contains a wealth of information on various renewable energy systems
           including: events calendars, "peer-peer resources/' project resources, case studies, and a guide for local
           governments.
2)  NREL Technical Assistance Webinars: They provide information on state and local policies and programs affecting
    renewable energy and energy efficiency technology deployment, project financing, and technical innovations that
    can drive market growth http://www.nrel.gov/applying technologies/state local  activities/webinars.html.
        >  Technical Assistance: Utilities can request assistance in the following categories: program design, project
           assistance, contract assistance, financing policy and programs, planning, policy analysis, and skills
           development: http://www.nrel.gov/applying technologies/state local activities/technical  assistance.html.

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