Course: BFM 203 Water Treatment and Control

Lecture

(7/9)

Getting Started

How does a whole utility get started on becoming more sustainable? First, remember that sustainability starts at the top. Management must buy in to sustainability practices. Most utilities begin by developing a sustainability plan. For example, the San Francisco Public Utility Commission developed a sustainability plan in 2008, focusing on long-term organizational goals and strategic planning around day-to-day activities. For more information, see their Strategic Sustainability Performance on Goals and Objectives - Fiscal Year 2010 - 2011.

More examples from USEPA are outlined below:

- Improve compliance: For example, establish collaborative partnerships with neighboring utilities to increase or maintain technical, managerial, or financial capacity or to share information and expertise."
- Reduce energy cost: For example, invest in more energy-efficient equipment or explore operational changes that can enhance energy optimization (such as pumping at night when the rate is lower).
- Reduce overall infrastructure costs to communities. For example, partner with other community agencies to coordinate infrastructure projects such as road repairs with lead service line replacement and installation of rain gardens.
- Extend the projected adequacy of current water supplies. For example, implement consumer water conservation programs, implement water metering, fix distribution system leaks, or make use of reclaimed water.

Goal setting is an important step in becoming more sustainable. In general, only set goals that reflect utility and community sustainability priorities. These goals should be broad, qualitative statements that your utility hopes to achieve. For example, consider this goal: "Utility A seeks to reduce its energy use consistent with the community's energy efficiency program."

Example Goals, Objectives, and Strategies
Goal | Objective | Strategy
Develop an approach to natural resource protection and planning that is based on watershed boundaries, wildlife habitat areas, and open space corridors. | Direct new growth to areas that are already developed and where adequate infrastructure for growth is in place. | Consider adopting the "green infrastructure" concept as a component of open space planning and site plan review.
Incorporate sound environmental practices into all municipal policies and projects. | Develop and adapt an environmental policy to guide City projects and operations in order to achieve City-wide goals of improving and sustaining environmental quality. | Identify goals for reducing water consumption. . .improving energy efficiency, [and] implementing natural landscaping techniques.
Maintain and improve the quality of wetland and waterfront areas. | Protect significant wetlands. Reduce non-point source pollution. | Require the design of stormwater management systems to maximize habitat value. Minimize runoff by clustering development on the least porous soil and using infiltration devices and permeable pavements. Limit impervious surfaces and add green spaces.

Based on goals objectives, we need to then develop evaluation criteria to help analyze a range of alternative uses (i.e., energy). For example, "Utility A evaluates all projects, in part, on their relative life cycle energy efficiency costs (e.g. installation of high efficiency pumps) and their relative ability to meet the 25 percent energy use reduction objective."

With all goals for sustainability, management has to understand the costs and plan accordingly. This strategy should reflect full life-cycle costs and adequate revenue so the system is properly funded, maintained and replaced over time. For example, "Utility A's revenue and borrowing strategy ensures sustainable financing of new projects, taking advantage of lower energy costs."

When evaluating capital expenditures consider the following factors:

- The opportunity cost of using cash that could be deployed elsewhere or kept as a liquid asset
- The need to manage and protect asset replacement funds over time
- The cost of capital (i.e., don't use cash for something you can inexpensively finance
- Whether or not benefits will accrue to future customers, which favors spreading out the repayment terms through debt financing, and
- The use life of an investment (i.e., don't borrow for 30 years if the useful life is 10 years)

After goals, objectives, strategies, and alternatives are identified, the alternatives have to be evaluated and rated. Many utilities use sophisticated scoring methods to evaluate identified alternatives. This helps the utility decide which options will help meet their goals within their budgetary needs. They then implement an implementation schedule and an evaluative process to assist in evaluating the effectiveness of the alternative implemented.