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/waste water 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
0	LOWER ESCALATORS	0
0	ZERO MAINTENANCE	0
0	C02 REDUCTIONS	0
AIR QUALITY PERMIT COMPLIANCE
RENEWABLE ENERGY GENERATION
MINIMAL OUTLAY AND OVERSIGHT
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 COa emissions while saving
energy and money:1
Utility Name
Treatment Capacity,
Million Gallons per
Day (MGD)for
Wastewater Utilities
Expected Annual
Energy $$
Savings
Generating
Capacity (kW)
*Est. Annual
CO2
Reductions
(pds)
Inland Empire Utilities
Agency (Solar)
53 MGD
$500,000
3,500 kW
5,918,012
Inland Empire Utilities
Agency
(Fuel Cell)
45 MGD
Same Price as Grid
2,800 kW
15,529,157
San Diego MWD
(Fuel Cell)
175 MGD
$338,000
4,500 kW
24,957,575
San Diego County Water
Authority (Solar)
100 MGD
$85,000
1,800 kW
3,043,549
Thousand Oaks (Solar)
14 MGD
$200,000
584 kW
987,462
Thousand Oaks
(Cogen)
14 MGD
$60,000
940 kW
5,194,501
Rancho California Water
District (Solar)
5 MGD
$152,000
1,100 kW
1,859,946
TOTALS:
347 MGD
$1,335,000
15,224 kW
61,041,540
1
If your utility would like to be added to this list, please contact Eric Byous at Byous.Eric@epa.gov.

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* C02 Calculations are based on 2007 eGRID subregion output emission rates for the Western Electricity Coordinating Council California (WECC)/ 730 (average hours
in a month) x # of months (9 months for off-peak demand emissions + 3 months for peak demand emissions) x kW (project size) = kWh x eGRID C02 lb / kWh x
capacity factor (25% for solar, 90% for fuel cells) = Estimated annual C02 reductions. The calculations for peak and off- peak demand were calculated separately and
added together for the total C02 emissions. 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 for three months (90 days), which is, 540 hours of the total 8760 hours in a year.
How to Get Started:
/ Know the type of energy you wish to generate and propose a site.
/ Obtain permission from the building owner/managers.
/ Calculate your energy needs based on average and peak demands.
/ 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.
/ Know your energy costs so you can negotiate savings.
/ 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/eiectric/gen-
info/mbr/authorization.asp#skipnavsub.
S Contact a PPA firm to get the bail roiling. Once you have chosen a firm, you can request preliminary designs and
pricing.
Industry Advice:
4 Before signing a PPA, consult other entities that have entered into a PPA with the power provider you're
considering. This will give utilities 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 joint 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.
4 Consult an attorney who is familiar with renewable energy contracts.
4 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.
4 Negotiate the escalator (energy utility rate) based on past utility trends.
4 Don't install more renewable energy than you need, unless the cap of power is included in the PPA.
Ensure that the contract includes the latest renewable energy technology available by consulting with industry
professionals and other entities that have entered into PPAs.
Make certain that the project adheres to local planning and building codes.
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.
2	http://www.epa.gov/cleanenergy/documents/egridzips/eGRID2010Vl 0 year07 SummarvTables.pdf
3	Joint meaning: a collaborative effort involving multiple facilities, cities within a county, etc.
4
The "cap of poww' 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
Solar, Thousand Oaks 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 to 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/applving technologies/state local activities/technical assistance.html.

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