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 InvestmentEnginesGeneratorsBlowersDigester Heat Phase III53-350 kWh2-350kWh100% Phase IV53-350 kWh2-350 kWh100% Phase V44-750 kWh5 – In Array100%

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 1.Energy Efficiency Goal Review existing energy consumption and evaluate alternative methods to reduce consumption 2.Energy Production Goal ID and evaluate technologies for increasing on-site energy production fueled by alternative or renewable fuels 3.Emissions Permitting Goal Evaluate alternative emissions and permitting models in the context of energy demand & production strategies 4.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 ElementEst. $ROI in YrsPriority EEMs2.3M0.2-251/1 Alternative Fuel2.0M2.53/2 Gas Treatment & Exhaust Catalysts3.0M2.52/3 5 th IC Engine1.0M2.84/4 Renewable Fuel Chiller1.4M6.45/5 6 th IC Engine3.1M246/6

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 1 st 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