Asset Management – NPDES
Requirements and
Coordination with SAW
Presented at MWEA Process Seminar
November 5, 2014
Phil Argiroff, P.E.
MDEQ - WRD
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Water Resources
Protect and Monitor
4 Great Lakes
3,288 miles of Great
Lakes shoreline
11,000 inland lakes
36,000 river miles
5.5 million acres of wetlands
70,000 acres of critical dunes
For swimming, fishing, drinking water and aquatic ecosystems.
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Framework of Presentation
What is DEQ’s posture on AM, and what is AM
Discuss status of AM Program implementation in
NPDES permits
Briefly discuss SAW program; for Asset Management
Present how AM requirements can be coordinated with
Stormwater/Asset Management/Wastewater (SAW)
grant
3
MDEQ’s Posture on Asset
Management (AM)
• Governor’s 2011Infrastructure Message - sustainability and AM for wastewater and water
• DEQ is supportive of AM for wastewater and water
• DEQ has started a NPDES regulatory initiative for WWTPs/collection systems, and now has a state grant program (SAW) for AM with the potential for a grant
• Assistance for AM program development
4
In wastewater systems, an "asset" is a component of
a facility with an independent physical and functional
identity and age (e.g., pump, motor, clarifier, etc.).
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What is an Asset?
Asset Management is…
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…maintaining a desired level of service for what you want the assets to provide at the lowest life-cycle cost. Lowest life-cycle cost refers to the best appropriate cost for rehabilitating, repairing or replacing an asset.
Asset Management is…
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…a framework being widely adopted as a means to pursue and achieve sustainable infrastructure.
1. What is the current state of my assets?
2. What is my required "sustainable" level of
service?
3. Which assets are critical to sustained
performance?
4. What are my minimum life-cycle costs?
5. What is my best long-term funding strategy?
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Five Core Questions of AM
A high-performing asset management program incorporates detailed asset inventories, operation and maintenance tasks, and long-range financial planning to build system capacity, and it puts systems on the road to sustainability.
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AM Programs
Prolonging asset life and aiding in rehabilitation,
repair and replacement decisions through efficient
and focused operations and maintenance
Meeting consumer demands with a focus on system
sustainability
Setting rates based on sound operational and
financial planning
Budgeting focused on activities critical to sustained
performance
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Benefits of AM
Meeting service expectations and
regulatory requirements
Improving responses to emergencies
Improving the security and safety of
assets
Reducing overall costs for both
operations and capital expenditures
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Benefits of AM (cont.)
MDEQ’s Efforts to Include AM in
NPDES Permits
Started in FY2013, adding AM program requirements to all reissued major municipal WWTP permits
The first with this requirement was Detroit WWTP -
33% of treated municipal discharge in MI, history of poor equipment maintenance. Appropriate to be first with AM requirements
Summary of core requirements – current state, level of
service, critical assets, minimum life cycle costs, and long term funding
Will add AM requirements to minor permits that receive
AM grants 12
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What is an Asset?
Both Parts 31 and 41 of NREPA, PA 451
allow us to implement requirements
Permit Language Requires an Approvable
AM Plan to implement the AM Program,
addressing: Staffing
Mapping Collection System
Inventory, Assessment, and Criticality of Fixed Assets
Budget and Rate Sufficiency
Annual Report
AM NPDES Permit Language
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DEQ/SAW Program
The Great Lakes Water Quality Bond 2002
PA 562 of 2012 authorized money for Stormwater, Asset Management Wastewater or SAW program
$450M is allocated to provide grants and loans for SAW. $97M was available for FY 2014, and $97M is available for FY 2015
Grants are available up to $2M per municipality
Applications were accepted starting Dec 2, 2013 on a first come first served basis.
On December 2, 2013 673 applications totaling $541M were received.
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Financial Assessment Program
DEQ reviews financial and legal
documents
Onsite visit
DEQ prepares a Financial Action Plan
Follow-up as necessary
Asset Management /CUPSS
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Asset Management Plan
Workbook
Asset Inventory Table 1
Directions
A. List assets
B. Enter asset information
C. To add more assets use insert function
D. Enter information in highlighed
cells
E. Remaining cells will calculate automatically.
A B C D O P Q
Collection Assets Capacity Material Location Probability of
Failure
Criticality of
Asset
Business
Risk
Pump #1 5 5 25
Enter asset 5 5 25
Enter asset 3 3 9
Enter asset 0
Enter asset 0
Enter asset 0
Enter asset 0
Rate
Methodology Table 4
Directions
A. To add more line item expenses use insert function and add rows then copy first line item row to new rows to
transfer formulas
B. Enter information in
highlighed cells
C. Remaining cells will calculate automatically.
(select one)
<<< Click at left and select flow units (million cubic feet or millions of gallons)
0.00 <<< Enter annual billable flow in units selected above
0 <<< Enter typical quarterly flow of single-family home in units selected above
(select one)
<<< Click at left and select the type of fixed units
0 <<< Enter number of fixed units
Expenditures Budget Option 1 Option 2
Variable Fixed
100% 100%
Operatio
n,
Maintena
nce and
Repair
(OM&R)
Salaries $ - $ - $ -
* Insurance $ - $ - $ -
* Dental $ - $ - $ -
* MERS $ - $ - $ -
* Medicare $ - $ - $ -
* FICA $ - $ - $ -
* Disability $ - $ - $ -
Unemployment Insurance $ - $ - $ -
Postage $ - $ - $ -
Bank Charges $ - $ - $ -
Calculate Rate Option 1 Option 2
Flow units $ $ -
Fixed units $ - S
Quarterly Bill for single-family
home $ $
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EPA has a Sustainable Infrastructure webpage
devoted to water and wastewater systems:
http://water.epa.gov/infrastructure/sustain/
Click on “Asset Management”
Includes links to a number of AM guidance
documents
“Asset Management: A Best Practices Guide”
“Building an Asset Management Team”
“Asset Management: A Handbook for Small
Public Water Systems—STEP Guide Series”
EPA Resources
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Coordination of NPDES
requirements with a SAW grant
NPDES permit requirements are not
contingent upon being awarded a
SAW grant
However, within reason the
schedule of AM implementation can
consider a grant
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Lessons Learned
Lots of tools out there
Time consuming but doesn’t have to be
expensive
AM is a long term program – incremental steps
Regulations in place for NPDES, SAW for
assistance
DEQ is adjusting permit language as we are
implementing the program
DEQ is working on providing better outreach
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Questions
Contacts: Phil Argiroff, P.E., Permits Section Chief
517-290-3039
Matt Staron, P.E., Permits Section
517-335-4491
Charlie Hill, P.E. Wastewater Specialist
906-228-4527
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