Energy & Emissions Strategic Plan

1. Energy & Emissions Strategic Plan EWA’s Roadmap to Energy Independence

2. Objectives • Describe EWA • Set the context for EWA’s planning process • Discuss the importance of Board leadership • Planning Goals, Process, Results\ • Big Picture Outcomes • Q&A? • 15 minutes

3. Encina Wastewater Authority • Carlsbad, California • Joint Powers Agency • 350,000 Residents • 125 Sq. Mile Service Area • $350M Asset Value • Encina Water Pollution Control Facility • Contract O & M • Regional Source Control • Regional Laboratory

4. Encina Water Pollution Control Facility

5. Context • High energy demand • High energy costs • Unfavorable tariff environment • Future energy markets unstable beyond local control • Early investment & adoption • WASTEWATER

6. Legacy Cogeneration Investment

7. Board Strategic Policy • Mission • As an environmental leader, EWA provides sustainable and fiscally responsible wastewater services to the communities it serves while maximizing the use of alternative and renewable resources. • Key Issue • Additional resource recovery and investment • creates the opportunity for energy independence • mitigate impacts arising from unstable energy markets.

8. Planning Goals • Energy Efficiency Goal • Review existing energy consumption and evaluate alternative methods to reduce consumption • Energy Production Goal • ID and evaluate technologies for increasing on-site energy production fueled by alternative or renewable fuels • Emissions Permitting Goal • Evaluate alternative emissions and permitting models in the context of energy demand & production strategies • Planning Goal • Recommend specific actions.

9. Planning Process • Current and projected future baseline • Identify energy efficiency measures (EEM) • Comprehensive technology scan & comparison • Rank technologies using defined evaluative criteria • Develop an implementation plan

10. Planning Results Energy Efficiency Goal: Review existing energy consumption and evaluate alternative methods to reduce consumption • Baseline annual electric demand 17,500,000 kWh • Secondary Treatment process = 43% of electric demand, Target: 9 EEMs, 2,000,000 kWh annual demand reduction • Aeration Header Repair • Turbo Blowers • Process Operation Changes • Variable Speed Fans & Pumps

11. Planning Results Electrical Energy Production Goal: ID and evaluate technologies for increasing on-site energy production fueled by alternative or renewable fuels. • Screened In • IC Engines, Fuel Cells, PV Solar • Screened Out • Wind Turbines, Microturbines, Water Flow Energy Capture

12. Planning Results Bio-Gas Energy Production Goal: ID and evaluate technologies for increasing on-site energy production fueled by alternative or renewable fuels. • Screened In • Alternative Fuels, Cell Lysis, Digester Enhancements, Bio-Gas Treatment • Screened Out • Sludge Heating, Bio-Gas Storage

13. Planning Results Waste-Heat Energy Production Goal: ID and evaluate technologies for increasing on-site energy production fueled by alternative or renewable fuels. • Screened In • Absorption & Adsorption Chiller, Organic Rankine Cycle • Screened Out • Steam Turbines, Solids Pyrolysis

14. Planning Results Emissions Permitting Goal: Evaluate alternative emissions and permitting models in the context of energy demand & production strategies • Screened In • Synthetic Minor • Screened Out • Title V

15. Recommended Project Summary

16. Planning Outcomes • Appropriate response to public’s growing recognition of the water-energy nexus • Good planning is a condition precedent to investment • Energy efficiency is nearly universally viewed as the most appropriate 1st investment • Sustained Board of Director’s commitment to energy independence since 2008 • Value of thoughtful resource deployment and branded communication

17. Questions? Kevin M. Hardy General Manager Encina Wastewater Authority khardy@encinajpa.com