Assessing Financial Condition EFC...U.S. EPA’s ENERGY STAR® Webinar December 5, 2013 Webinar •...
Transcript of Assessing Financial Condition EFC...U.S. EPA’s ENERGY STAR® Webinar December 5, 2013 Webinar •...
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Attendee List
http://efc.sog.unc.edu
U.S. EPA’s ENERGY STAR®
Webinar
December 5, 2013 Webinar
• David Tucker, Project Director, The Environmental Finance Center at UNC Chapel Hill
• Laura Dufresne, The Cadmus Group, Inc., Consultant to EPA’s ENERGY STAR Program
• Neil Zobler, Catalyst Financial Group, Consultant to Cadmus in support of EPA’s ENERGY STAR Program
• Kudret Ütebay, The Cadmus Group, Inc., Consultant to EPA’s ENERGY STAR Program
Dedicated to enhancing the ability of governments and
other organizations to provide environmental programs and
services in fair, effective and financially sustainable ways.
How you pay for it matters!
efc.sog.unc.edu
www.efcnetwork.org
9/19/2014
Smart Management for Small Water Systems *under a Cooperative Agreement with the US EPA
• The EFCN will provide training and technical assistance to small public water systems in all
fifty states and five territories to help local water systems achieve and maintain compliance
with the Safe Drinking Water Act.
• Workshops and trainings will be provided in these areas:
– Asset Management
– Water Loss Reduction
– Water System Collaboration
– Fiscal Planning and Rate Setting
– Energy Management
– Funding Coordination, and
– Managerial and Financial Leadership
Smart Management for Small Water Systems
http://www.efcnetwork.org
A Few Words on ENERGY STAR
ENERGY STAR is a U.S.
Environmental Protection
Agency (EPA) voluntary
program that helps
businesses and individuals
save money and protect
our climate through
superior energy efficiency.
Agenda
• Introduction to ENERGY STAR® and Portfolio Manager® – Laura Dufresne, The Cadmus Group, Inc. (EPA Contractor)
• Live Demonstration of Portfolio Manager for Water & Wastewater Plants – Laura Dufresne and Kudret Utebay, The Cadmus Group, Inc. (EPA Contractor)
• Demonstration of the Cash Flow Opportunity Calculator – Neil Zobler, Catalyst Financial Group, Inc. (EPA Contractor)
• Q & A Session
Objectives
• Become familiar with the features and benefits of the ENERGY STAR Portfolio Manager tool.
• Learn how to create a Portfolio Manager account, add new properties & enter utility data.
• Find out how to apply project economics training from previous workshops, with the help of the ENERGY STAR Cash Flow Opportunity Calculator.
• Pose your questions to ENERGY STAR experts.
Energy Use in Water and Wastewater
Services
• Drinking water and wastewater services: – Account for 3-4 percent of national energy consumption
– Produce more than 45 million tons of greenhouse gas (GHG) emissions per year
• Drinking water and wastewater plants are typically the largest energy consumers of municipal governments, accounting for 30-40 percent of total energy consumed.
• Energy as a percent of operating costs for drinking water
systems can reach as high as 40 percent and is expected to increase 20 percent in the next 15 years due to population growth and tightening drinking water regulations.
Source – http://water.epa.gov/infrastructure/sustain/energyefficiency.cfm (July 2013) 11
Clean Energy Opportunity
• Studies estimate that 15-30 percent of potential savings
are “readily achievable” in water and wastewater plants.
These savings would provide:
– Financial returns in the thousands of dollars, and
– Payback periods of only a few months to a few years.
• Combining energy efficiency optimization/modifications,
energy recovery, and on-site clean power generation =
Zero Net (or Near Zero Net) Energy.
– Some wastewater plants generate as much energy as they use in a given year!
Source – http://water.epa.gov/infrastructure/sustain/energyefficiency.cfm (July 2013)
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How Can Water and Wastewater
Utilities Get Involved Now?
• Get started with ENERGY STAR. Whether you're new to
energy management or ready to take your program to the
next level, EPA’s ENERGY STAR program can help you
accomplish your goals.
• Utilize ENERGY STAR resources to: – Build an energy program
– Improve energy performance
– Benchmark energy use
– Communicate and educate
• Visit http://www.energystar.gov/buildings to start
improving energy performance today.
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A Strategic Approach
to Energy Management
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This approach is based
on the successful
energy management
practices of thousands
of commercial and
industrial organizations.
The Value of Benchmarking
Consistent
benchmarking in
buildings results in
energy savings and
improved performance.
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Source:
http://www.energystar.gov/ia/business/downloads/datatrends
/DataTrends_Savings_20121002.pdf?8d81-8322
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• ENERGY STAR Portfolio Manager is an effective management tool – it helps business and organizations by offering a platform to:
– Assess whole property energy and water consumption
– Track changes in energy, water, greenhouse gas emissions, and cost over time
– Track green power purchase
– Share/report data with others
– Create custom reports
www.energystar.gov/benchmark
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• Portfolio Manager is also a metrics calculator – it provides key performance metrics to integrate into a strategic management plan.
– Energy consumption (source, site, weather normalized)
– Water consumption (indoor, outdoor)
– Greenhouse gas emissions (indirect, direct, total, avoided)
– ENERGY STAR 1-to-100 score (available for many building types and wastewater treatment plants)
– Compare to national median energy use intensity (site, source)
– Compare baseline year vs. current year (energy, water, ghg)
www.energystar.gov/benchmark
Benchmarking Wastewater
Treatment Plants
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• ENERGY STAR 1 – 100 score available – Based on Water Research Foundation survey
– Accounts for sources of energy used, geography/ weather
• Data Needed: – Energy use for all fuels - monthly
– Average Daily Influent Flow (million gal/day – MGD)
– Average Influent Biochemical Oxygen Demand (BOD) Concentration - average over 12 months (mg/l)
– Average Effluent BOD Concentration - average over 12 months (mg/l)
– Plant Design Flow Rate - treatment design (MGD)
– Trickle Filtration Process (yes/no)
– Nutrient Removal (yes/no)
Benchmarking Drinking Water
Systems
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• Can compare energy use per flow to national median
• Data Needed: – Energy use for all fuels - monthly
– Average Daily Influent Flow (million gal/day – MGD)
– Property information
View Results and Progress
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• Recommended Performance Metrics ENERGY STAR Score (Wastewater)
National Median Site EUI (kBtu/gpd)
National Median Source EUI (kBtu/gpd)
Percent Better than National Median Site EUI
Percent Better than National Median Source EUI
Site EUI (kBtu/gpd)
Source EUI (kBtu/gpd)
Weather Normalized Site EUI (kBtu/gpd)
Weather Normalized Source EUI (kBtu/gpd)
Weather Normalized Site Electricity Intensity (kWh/gpd)
Weather Normalized Site Natural Gas Intensity (therms/gpd)
Site EUI - Adjusted to Current Year (kBtu/gpd)
Source EUI - Adjusted to Current Year (kBtu/gpd)
View Results and Progress (cont.)
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• Water or Wastewater Greenhouse Gas Emissions Total GHG Emissions Intensity (kgCO2e/gpd)
Direct GHG Emissions Intensity (kgCO2e/gpd)
Indirect GHG Emissions Intensity (kgCO2e/gpd)
Biomass GHG Emissions Intensity (kgCO2e/gpd)
• Water or Wastewater Cost Performance Metrics: Investment in Energy Projects, Cumulative ($/GPD)
Estimated Savings from Energy Projects, Cumulative ($/GPD)
Live Demonstration of Portfolio
Manager
www.energystar.gov/benchmark
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Benchmarking Steps: Add Meters
Enter monthly values for
the meter and upload it
into your Portfolio
Manager account
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Comparing Plants
Energy Use and Cost vs Flow at similar sized plants
$45,233 $47,764
$88,176
$73,739
$115,053
$149,349
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2.3 1.9 1.7 1.9 2.1 2
Average Daily Flow (MGD)
kB
tu/G
PD
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$/M
GD
Energy Use per Flow (kBtu/GPD)
Energy Cost per Flow ($/MGD)
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Total
Project
Cost
Annual
Energy
Savings
Estimated
Operating
Cost
Savings
Simple
Payback
Local
Electric
Utility
Rebate
Payback
After
Incentive
$56,000 250,000
kWh
$34,500 1.6 years $21,000 1 year
Burlington, VT Main Wastewater Treatment Plant
• Design flow of 2.0 MGD but routinely treats 1.0 MGD
• Replaced one of their 75 hp centrifugal blowers with a 50 hp
Turbo blower and new DO probe for automated control (DO
target is 2.5 mg/L)
Case Study 1
Total Project
Cost
Annual
Energy
Savings
Estimated
Operating
Cost Savings
Simple
Payback
$13,500 72,000 KWh $9,176 1.5 years
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City of Bartlett , TN, Wastewater Treatment Plant
• 1.0 MGD, secondary treatment using two mechanically aerated oxidation ditches
• Installed optical DO sensor integrated with VFD speed control of the oxidation ditch rotor aerator.
• DO control setpoint of 1.2 mg/L
Case Study 2
For more information:
http://www.energystar.gov/buildings
Ask a Question:
http://www.energystar.gov/buildingshelp
Email:
Katy Hatcher, EPA
Laura Dufresne, The Cadmus Group, Inc.
Questions Regarding Portfolio
Manager
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Financing Energy Efficiency
Upgrades with ENERGY STAR
Neil Zobler, President
Catalyst Financial Group
In Support of EPA’s ENERGY STAR® Program
2013
Financial Value Tools
• Building Upgrade Value
Calculator – Commercial Real
Estate
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• Cash Flow Opportunity
Calculator – All Sectors
What Does it Do?
1. How much new energy efficiency equipment can be purchased from the anticipated savings?
2. Should this equipment purchase be financed now or is it better to wait and use cash from a future budget? (avoid paying interest)
3. Is money being lost by waiting for a lower interest rate?
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Addresses three critical questions about
installing energy efficiency projects:
Cash Flow Opportunity Calculator
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Download at: http://www.energystar.gov/buildings/tools-and-resources/financial-resources
Download at: http://www.energystar.gov/buildings/tools-and-resources/financial-resources
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Cash Flow Opportunity Calculator
Questions?
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Katy Hatcher, US EPA, National Manager, Public Sector
(202) 343-9676
Consultants to EPA
Neil Zobler, President
Catalyst Financial Group, Inc.
203-790-4177
Laura Dufresne
The Cadmus Group, Inc.
Kudret Utebay, LEED AP
The Cadmus Group, Inc.
(703) 247-6138
Visit www.energystar.gov to learn more!
Ask a Question at www.energystar.gov/BuildingsHelp
Some EFCN Resources
Tools, trainings, assistance and resources for small
water systems: www.efcnetwork.org
Environmental Finance blog
(EFC UNC)
efc.web.unc.edu/
EFC Boise State
University newsletter
http://efc.boisestate.edu/Publications/tabid/59/Default.aspx
http://efc.sog.unc.edu
Thank you!
David Tucker
EFC at University of North
Carolina, Chapel Hill
919-966-4199
Kudret Utebay
Senior Associate
The Cadmus Group, Inc.
703-247-6138
Laura Dufresne, PE
The Cadmus Group, Inc.
Neil Zobler President Catalyst Financial Group, Inc. [email protected] 203-790-4177