Metropolitan Council

1. Metropolitan Council Environmental Services Metropolitan Council Energy Update October 14, 2008 Presented to Environment Committee By Jason Willett

2. Why Energy Focus? • Substantial Cost of Operations • Rising Rates • Preparing for Climate Change Costs & Regulations • State Initiative • Energy Independence & Security • Midwest Governor’s Cap & Trade • Renewable Energy Standard

3. 2007 Energy Costs Metro Transit and Environmental Services Divisions Metro Transit BUS LRT Electricity $1,670,355 $1,702,560 * Natural Gas 1,839,684 45,832 Fuel 16,469,860 0 $19,979,899 $1,748,392 TOTAL COST: $21,728,291 MCES Electricity $13,509,612 Fuel Oil 27,049 Natural Gas 2,724,430 MotorVehicle Fuel 570,845 $16,841,937 TOTAL COST: $16,841,937 *$963,441 is for train propulsion.

4. Council’s Energy Partnerships • Xcel Energy • University of Minnesota • MEPC (Metro Counties) • State Agencies • The Climate Registry • Minnesota Chamber of Commerce

5. MCES Energy Strategies • Conservation • Renewable Energy Generation • Financial Strategies • Climate Change Regulatory Preparation

6. ConservationGoal: 15% reduction of purchased (fossil fuel) energy • Process Efficiency Program • 26 studies completed (10-1-08) • 24 studies scheduled (2009) • 11 actions taken • 16,000,000 kwh savings estimated • $1,000,000 savings per year estimated • $5,000,000 of energy improvements budgeted over next 5 years • Energy Management System • Employee Energy Campaign • Work Instruction for Operations Staff • Design Guidelines for Engineering

7. A. Conservation • 2008 Energy Intern Work • Green House Gas-N2O Emissions • Centrate Treatment @ Metro • Dissolved Oxygen Set Point Optimization & Control Changes • Optimization of Blowers & Sequencing • 2009 Energy Interns (possible) • Greenhouse Gas Modeling • Phosphorus Reduction • Aeration Efficiency Engineering • Emissions Reporting

8. ConservationLighting Design

9. A. ConservationMetro Tunnel Existing

10. Conservation Metro Tunnel Proposed

11. Conservation • Energy Management System • Accomplishments • Reviewed several vendors’ energy management software and service. • Joined with Transit to send out a request for information. • Developed real time electric energy use reports for Metro, Seneca, and Blue Lake. • Tracking historical use for all wastewater treatment facilities on a monthly basis. • Developed an energy metric that allows us to measure impact of our energy measures at Metro.

12. Conservation Energy Management System

13. Conservation Energy Management System Plans • Obtain electric interval meter data for all facilities • Incorporate gas and other utility information into energy reports. • New metering so real time gas and electric information can be displayed. • Incorporate rate models for billing analysis. • Develop energy metrics for other facilities and sub processes. • Develop energy dash boards and reports.

14. ConservationEmployee Energy Campaign October 2008 – October 2009 • IS will be reconfiguring all 1800 desktop computers to drop into a very low energy state after 60 minutes of inactivity • All printers will be defaulted to print two-sided copies • Employees will be requested to: • Shut down computers when absent from their desks for long periods of time or at the end of the work day • Turn off task lighting when not needed or at the end of the work day • Turn off any additional electrical items (fans) when not needed or at the end of the work day

15. B. MCES Renewable Generation • Steam Energy Optimization • Heat Recovery Study • Auxiliary Boiler • Alternative Biofilter Humidifier • Steam Trap Maintenance Program • Microturbine Demo Program at Empire • Thermal Recovery at Eagles Point • Biogas Generation & Reuse at Blue Lake • 1,075,000 therms/year at approximate value of $800,000/year

16. B. MCES Renewable Generation(Contd) • Algae-to-Fuel Research with University of Minnesota • $1m work plan, began on 7/1/08 • $0.5 funding secured from State • MEPC/County Wind Initiative • Xcel/Council Solar Farm Concept • 1-2 MW at Blue Lake Plant • Likely RFP in January

17. B. MCES Renewable Generation(Contd) • Other Ideas • Energy crop at Empire • Fats, oils, grease extraction for energy • Screenings digestion for biogas • Small hydro at Rosemount or Eagles Point

18. Metropolitan Energy Policy Coalition (MEPC) Wind Initiative Council joined MEPC on December 2006 • MEPC/RMEB Explore Wind Initiative • 2006/2007: Avant/Lindquist Business Concept • 2007: LCCMR grant $200k for technical fiscal analysis • 2008: Legislative Bill • Clarify local gov’t authorities under CBED • Counties may own, bond and tax for renewable energy • Counties may pre-pay for energy

19. MEPC Wind Initiative (Continued) • HGA Consultant Team Hired in 2008 • Phase 1 analysis complete in August of 2008 • Concept: develop approximately 10 Megawatt wind farm • Sites in SW Minnesota identified (e.g. Lyon County Landfill) • Shows financial feasibility (with reasonable cost assumptions)

20. MEPC Wind Initiative (Continued) • Phase 2 Analysis • Execute contract with Stoehl Rieves • Negotiate with utility for power and purchase access • Lyon County decision? • Next: Determine “Coalition of the Willing” (Joint Powers Agreement) • Seek additional legislation (to finance project) • December AMC meeting – decision?

21. C. Financial Strategies • Peak Control Agreements with Xcel Energy • Hedging Contracts to Stabilize Natural Gas Costs • Carbon Emissions Cost Added to Energy Cost for Future Engineering Options Analyses • Analysis of Wind & Solar Economics • Review of Tariff Options for Lift Stations

22. C. Financial Strategies(Continued) • Energy Services Agreement withCenterPoint for N.G. Discount • TBD: Accreditation to Minimize Possible Penalties for FBI/Cogeneration • TBD: Review of “Monetization” Possibilities for Emissions Reductions • TBD: Analysis of Break-Even Point on Peak Control Agreements • Possible: Participation (with Chamber of Commerce) in Rate Case(s)

23. D. Climate Change Regulatory Prep • The Climate Registry • Reporting all 2008 emissions • To be verified in 2009 • Protocol development • MEPC Forum for Administrators: 11/20/08 • Cap & Trade Status

24. Council Policy? • To frame and focus Council’s energy actions • Conservation: investment directive • Biofuels directive (to support state agriculture) • Renewable energy directive • Energy financial management • Energy budget stabilization goal • Energy in community planning, assistance • Partnerships