1. Metropolitan Council Environmental Services A Clean Water Agency Presented to the Environment Committee January 27, 2009 Energy Program Update Jason Willett, Chair, MCES Energy Team

2. Background: 2006 Energy team created by MCES General Manager Bill Moore Goal: 15 percent energy reduction of purchased fossil fuel (2010 compared to 2006)

3. Status of Initiatives 1.Energy Conservation 2.Renewable Energy 3.Energy and Carbon Measurement 4.Energy Cost Savings and Financial Issues 5.Energy Collaborations

4. 1. Energy Conservation The cheapest energy is the energy you don’t use.

5. Energy Conservation and Efficiency Overview — Process efficiency, lighting redesign, and facility re-commissioning — Completed 26 energy-related studies identifying: – 40 energy saving opportunities totaling 46 million kWh ($3 million/year); of those, MCES implemented 16 measures to date = 23 million kWh ($1.4 million/year) — 24 more studies planned in 2009

6. Energy Conservation and Efficiency Completed work — Metro: Aeration study – Annual kWh savings = 6,700,000 — Metro: Enhanced maintenance in aeration process – Annual kWh savings = 4,000,000

7. Energy Conservation and Efficiency Completed work — Metro: Odor control energy improvement – Annual kWh savings = 688,000 — Metro: Instrument air compressor modifications – Annual kWh savings = 340,000

8. Energy Conservation and Efficiency Completed work — Blue Lake: Refurbished secondary aeration system – Annual kWh savings = 3,000,000 — Seneca: Refurbished secondary aeration system – kWh savings = 899,000 — Facility re-commissioning on eight facilities – Annual kWh savings = 250,000

9. Energy Conservation and Efficiency In process work — Metro: Tunnel lighting redesign – 2008 design; 2009 construction

10. Energy Conservation and Efficiency In process work — Metro Liquids Business Unit Operating Changes – 50 percent reduction sludge pump run hours – 8,000 annual hour reduction in grit collector drives – Less double pumping of sludge – Annual kWh savings = 3,000,000 — Metro: Steam Trap Program – 15% completed in 2008; remainder scheduled for 2009

11. Energy Conservation and Efficiency In process work — Rosemount: Decommissioning – Annual kWh savings = 1,500,000 (net) Rosemount Plant, 2008

12. Energy Conservation and Efficiency In process work — Energy design standards for capital projects — Employee energy campaign – 1,800 computers reconfigured to go into low energy state after inactivity – Printer default is two-sided copies – Employees to shut down computers and electronics when not in use

13. Energy Conservation and Efficiency Identified additional energy efficient improvements — Seneca: New energy efficient HVAC system — Blue Lake: New energy efficient HVAC system — Lift Station L-35: Energy efficient lighting — Lift Stations L-74, L-75: Efficient motors

14. 2. Renewable Energy Renewable energy can make us energy-independent and energy-secure.

15. R&D and Renewable Energy Completed RE — Fluidized Bed Incinerators/ cogeneration of heat and electricity

16. R&D and Renewable Energy Completed RE — Eagles Point: Thermal energy recovery from effluent

17. R&D and Renewable Energy In process RE — Empire: Micro- turbine demo project

18. R&D and Renewable Energy In process RE — Blue Lake: Design of liquids process change to anerobic digestion and substitution of produced biogas for purchased natural gas — Metro: Heat Pump – 2008: Study on energy savings opportunities from heat pump and heat recovery technologies – 2009: Initiating installation of non-condensing turbine/generator — Seneca: New scrubber heat exchanger

19. R&D and Renewable Energy Identified RE possibilities — Algae R&D — Bio-diesel from brown grease

20. R&D and Renewable Energy Identified RE possibilities — Metropolitan Counties Energy Coalition (MCEC) Wind Initiative — Xcel Energy and MCES Renewable Collaboration, possible solar farm at Blue Lake

21. 3. Energy and Carbon Measurement You can’t manage what you can’t measure.

22. Energy and Carbon Management In process work — Energy database — EPA and Energy Star Program — GHG Emissions Research — The Climate Registry (TCR) reporting

23. 4. Energy Cost Savings and Financial Issues MCES spent $17 million on energy in 2008.

24. Energy Cost Savings and Financial Issues Completed work — Carbon costing for alternatives analysis — Solar facilities economic analysis — Rebates earned in 2008: $225,000 — Peak Control Agreement savings in 2008 ≈ $350,000

25. Energy Cost Savings and Financial Issues In process work — Lift station tariff analysis and charges — Xcel Energy rate case — Monetization of emission reduction projects — FBI turbine accreditation and penalties — Peak Control Agreements—review

26. 5. Energy Collaborations

27. Energy Collaborations University of Minnesota (Institute for Renewable Energy & Environment) Xcel Energy (Process Efficiency Program & RE) Metro Energy Policy Coalition (Counties) Inter-agency Energy & Environment Team Chamber of Commerce

28. Summary Conservation: — 66% of goal complete — Over 100% of opportunities identified — More studies underway Renewable energy: — Additional possibilities being investigated Financial impact: $1.4 million/year conserved.3 rebates received (2008).3 peak control savings (2008) $2.0 million