Illinois American Water “Green Initiatives”

1. Illinois American Water“Green Initiatives” Karla Olson TeasleyPresidentIllinois American Water

2. Our Environmental PolicyA National Endeavor • Established to clearly outline the roles and responsibilities of the operating units to support making environmental management a fundamental part of our business • Key points • Ensure compliance with all environmental regulations • Promote environmental stewardship • Ensure efficient use of natural resources

3. Green Initiatives Encouraged at the National Level for all American Water Businesses • Annual Report is published electronically • Energy usage reduced by turning off lights when rooms are not occupied • Copier set to print double-sided • Styrofoam and plastic cups replaced with cardboard and use of real glasses and mugs encouraged • “Green” IT equipment (laptops and computers) being purchased • Member of USEPA Climate Leaders program

4. Climate Leaders • Climate Leaders is an EPA industry-government partnership that works with companies to develop comprehensive climate change strategies • Partner companies commit to reducing their impact on the global environment by completing a corporate-wide inventory of their greenhouse gas (GHG) emissions based on a quality management system, setting aggressive reduction goals, and annually reporting their progress to EPA • American Water was accepted into the Climate Leaders Partnership on January 19, 2006 and is developing its greenhouse gas reduction goals

5. How Much Electricity Does the Water Industry Use? • Drinking water and wastewater consume: • 3% of domestic electricity1 • 7% of worldwide electricity • 19% of California electricity2 • Energy is the largest non labor O&M cost driver: For American Water system-wide, approximately 30% of production related expenses • Water utility energy use varies widely from 0.25 to 3.5 kWh per 1,000 gallons of drinking water produced and delivered3 • The median 50% of water utilities serving populations >10,000 had electricity use between 1.0 and 2.5 kWh/1,000 gallons3 • Electric Power Research Institute (Burton 1996) • Energy Down the Drain: The Hidden Costs of California’s Water Supply • AwwaRF 91201.Energy Index Development for Benchmarking Water and Wastewater Utilities

6. Green Initiatives by Illinois American Water What are we doing to reduce electrical consumption? • Energy Audits • Replacing old motors with motors with Variable Frequency Drives • Investigating the use of methane from landfills to provide energy to power intake pumps • Using Geothermal HVAC to heat and cool buildings (new Champaign Plant)

7. Leadership in Energy and Environmental Design (LEED)Champaign Water Treatment Plant

8. Leadership in Energy and Environmental Design (LEED) The Program • LEED is a third-party certification program and the nationally accepted benchmark for the design, construction and operation of high performance green buildings • LEED gives building owners and operators the tools they need to have an immediate and measurable impact on their buildings’ performance • LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: • sustainable site development, • water savings, • energy efficiency, • materials selection, • indoor environmental quality.

9. LEED (continued)Champaign Water Treatment Plant • Geothermal Heating and Cooling (Using the Water Wells) • Pervious Pavement to reduce storm water run off • Native Grass Planting – 15-16 of the 40 site acres will be planted Summer 2009 • 80% of the occupied space in the plant will have direct sunlight • New facility will be zero discharge, discharge water will be brought back to the front of the plant, including water off the sludge lagoons. Sanitary wastes will be treated through an on-site septic system • Dark sky lighting will be used in the parking areas to reduce fugitive light emissions from leaving site • Recycled materials were used in the new plant construction including recycled aggregate and steel • Construction Waste was recycled during the building process • Bicycle Parking and a dedicated parking spot for a hybrid vehicle • Water efficient fixtures • Variable Frequency Drive Motors to reduce electricity consumption

10. LEED CostsChampaign Water Treatment Plant • Additional Design Costs - $103,000 • Commissioning Study - $5,600 • Application for LEEDS - $2,950 • Construction Costs - $400,000 (approximately 1% of construction costs)

11. LEED Costs (continued) These costs included the following: -Prairie Grass Development -Use of Pervious Pavement -Geothermal Heating -Lighting and Electrical -White Roof Material -Low VOC Paint -Tracking of Recycle Material from site and to site

12. Establishing Native Shortgrass PrairiesEast St. Louis Water Plant Post-Planting Pre-Planting • Benefits: • Reduced Maintenance • Increase Biodiversity (attracts wildlife) • Carbon Sink • Aesthetically Pleasing

13. Recycling Efforts East St. Louis Water Treatment Plant • Paper • Cardboard • Plastic • Scrap Metal (ferrous and non-ferrous) • Fluorescent Bulbs (using the “BulbEater”) • Aerosol Cans • Batteries (rechargeable and dry cell) All Other Districts • Various programs

14. Environmental Management System (EMS)Pontiac Water Treatment System An EMS is a process in which you identify how your business operations impact the environment. As a result of identifying these impacts, objectives are set to reduce and or eliminate the impacts. • Implemented in Pontiac, IL in early 2009 • EMS established to “green up” the district • Environmental Stewardship Objectives Set (to name a few) - Eradicate Phragmites (exotic plant) - Recycle Mercury Thermostats - Recycling of materials (paper, steel, aluminum, batteries)

15. Piasa Creek Watershed ProjectBackground • 16 million gallons per day water treatment facility in Alton, Illinois built to replace 100 year old facility susceptible to flooding • Old plant had site specific exemption as part of National Pollutant Discharge Elimination System (NPDES) for direct discharge of residual solids and backwash water to Mississippi • IEPA determined that existing site specific exemption and NPDES did not apply to the new plant

16. Piasa Creek Watershed ProjectImplementation Plan Benefits • $4 million investment in watershed protection & restoration results in net savings of over $3 million in capital and operating costs • Reduces sediment in watershed two times (6,700 tons per year) the discharge of the new treatment plant by 2010 • Reduces truck travel over historic, scenic byways; air pollution; landfill space • In Piasa watershed: reduced erosion and pollution, improved water quality, storm water control, fish and wildlife habitat, stream bank stabilization

17. Piasa Creek Watershed Project Boy Scout Camp Glazebrook Park Sediment Basin

18. Piasa Creek Watershed ProjectImplementation Plan Benefits • For their efforts, Illinois American Water and Great Rivers Land Trust won a 2002 Governor’s Pollution Prevention Award from the Illinois Department of Natural Resources • Practices used: Land acquisition, conservation easements, wetlands restoration, educational programs Projected benefits ahead of schedule and greater than expected!!

19. Residuals Management • Water and wastewater treatment plant residuals beneficially reused rather than sent to landfill. • Reduces cost by 10% - 70% • Conserves landfill capacity • Reduces trucking of waste material • Agronomic Value • Soil Conditioner • Reduce Fertilizer Application • At ILAW we land apply water treatment residuals at Peoria, Streator, and Champaign and land apply wastewater residuals at all of our Chicago Metro wastewater plants

20. Residuals Management

21. Pharmaceuticals in Drinking Water • Partnership with Illinois Environmental Protection Agency (IEPA) • ILAW asked to join the Medication Education Disposal Solutions Action Committee (MEDS) • 1st meeting was held in ILAW’s Pontiac District • ILAW External Affairs Manager – Karen Cotton is the Chair of the MEDS Communication and Education Committee • Focus of MEDS is to work with IEPA on the proper disposal of pharmaceuticals so they do not get into our groundwater and water ways • Committee is working on developing website where citizen’s can go to find a disposal site for their pharmaceuticals • www.epa.state.il.us/medication-disposal/

22. Environmental Grant Program • Grant Program was established in 2008 • A way for ILAW to encourage and support Environmental Projects in our districts • Last year, a grant was awarded to Tri-County Regional Planning Commission for an “Illinois River Watersheds Public Awareness Program” • $3,000 was awarded and was used to place advertisements in two area newspapers to promote the work the commission had completed on the local watershed management plan and to promote their developed website • Applications for the 2009 Grant Program are currently being accepted