Clean  Water  State Revolving Fund
            Green Project Reserve
                                                                               Clean Water
                   Case Study: Inland Empire Utility Agency

         Creating a Sustainable Wastewater Utility in California

   The Inland Empire Utilities Agency (IEUA) - a regional wastewater service provider and distributor of
   wholesale water and recycled water that serves 242 square miles in the western portion of San
   Bernardino County - received more than $30 million in financing from the American Recovery and
   Reinvestment Act (ARRA). IEUA used these federal funds to invest in water recycling and reuse that will
   save money and reduce energy usage and greenhouse gas emissions by the utility. The financing, which
   was for six projects, was administered by the California State Water Resources Control Board's Clean
   Water State Revolving Fund (CWSRF) program and qualified for the CWSRF Green Project Reserve.

   Four of the projects were for the purchase and modification of an existing reservoir and the installation
   of approximately 30,200 linear feet of pipeline that will transport recycled water to customers and
   recharge groundwater, resulting in the conservation of over 1 million gallons of water per day1. An
   energy efficiency project involved the replacement of a belt press system that supports the dewatering
   system at one of lUEA's regional water recycling plants, thereby reducing the percentage of water in
   filter cake by an additional 5 to  10 percent, which reduces the weight of processed sludge and decreases
   energy costs and carbon dioxide emissions associated with the disposal of processed sludge.  Finally, a
   green infrastructure project will improve the water quality of the Chino Creek Watershed and improve
   wildlife habitat by restoring the degraded riparian ecosystem.

   Water and energy use in California are significant issues with water supplies becoming increasingly
   stressed as demand continues to grow while the state tries to recover from a three-year drought that
   left water reserves severely depleted and many areas coping with water allotment cuts. Looking
   forward, the state faces ongoing water shortages for millions of acres of agriculture and 25 million
   Californians, and climate change is expected to further exacerbate water shortages in the arid
   Southwest, including California.

   Because water uncertainties will continue to plague California, the challenge for water and wastewater
   utilities is to utilize water as efficiently as possible.  IEUA is responding aggressively to this challenge by
   integrating sustainable planning into its operations. It operates five water-recycling facilities for 880,000
   residents  and has spent the last six years implementing a comprehensive strategy to reduce energy use
   and expand water recycling capacity.

   About one-third of the water distributed by IUEA is imported from the Metropolitan Water District of
   Southern  California, which requires approximately six times the  energy to supply IEUA customers
   compared to a local groundwater well.  Electricity is the second biggest cost in lUEA's operating budget.
   In FY 2011 and 2012, IUEA allocated $5.4 million of its $44.2 million operating budget for electricity
   costs. (Available at http://www.ieua.org/news_reports/docs/2011/TYCIP/FY2011_12O&MVol_l.pdf)
   Additionally, the service area of IEUA is expected to grow by 50  percent over the next 20 years to  about
   1.3 million people, further increasing water supply pressures and energy needs.
   1 Represents the portion of the project funded with CWSRF ARRA funds.
    EPA-832-F-12-024                      CWSRF  Green  Project  Reserve   1

As a result, IEUA is increasing investments in local supplies by adopting a strategy that capitalizes on
conservation, water reuse, and stormwater capture in local groundwater aquifers.  In the past five years,
IEUA has invested more than $350 million in new water infrastructure, including a 75-mile pipeline
distribution system to deliver recycled water from four existing facilities to industries, parks, schools,
and golf courses, among other customers. IEUA plans to increase its water reuse to more than 50
million gallons per day by 2012. This water reuse will offset imported water, resulting in energy savings
of approximately 7,500 kWh per million gallons of water, which will ultimately save consumers 10 to 20
percent on their monthly water bills. The ARRA-funded CWSRF projects are a key component of this

IEUA is determined to become energy self-sufficient to reduce long-term costs of providing service to its
customers and mitigate the causes and impacts of climate change.  IEUA intends to be off the electric
grid by 2020 through energy conservation measures and significant utilization of renewable energy and
new generation technology. For instance, IEUA has a LEED  Platinum Administrative Building complex
that consumes a mere 15  percent of the energy of a traditional building without sustainable energy
management.  IEUA also conducts energy audits of all its facilities, including wastewater treatment
facilities, and has expanded renewable energy usage by installing solar panels, using biogas, and
replacing older vehicles with hybrid and electric vehicles.  It also composts all of the biosolids its service
area produces every year  (nearly 75,000 tons) and sells the product to city parks, golf courses, and
landscapers as fertilizer. These sustainable  energy management practices reduce air pollution and CO2
emissions, thereby mitigating climate change.

Extensive and ongoing infrastructure upgrades by IEUA that are funded in part by ARRA and non-ARRA
CWSRF program funds will position IEUA as a model of sustainability for other water and wastewater
utilities in California and beyond.  Utilities that are energy self-sufficient and conserve and maximize
limited water resources will be better positioned to cope with growing demand and climate
uncertainties.  Ultimately, these improvements are not just beneficial for the environment; they are
essential for the provision of affordable and effective wastewater services for communities over the
long term.

For more information please contact the California Clean Water State Revolving Fund Program
 EPA-832-F-12-024                        CWSRF  Green  Project  Reserve   2