In July, 2012, the City of Reno solicited statement of qualification from energy services companies to perform an operational audit of the Truckee Meadows Water Reclamation Facility. Ameresco, Inc. was selected and a contract for the audit was approved by Spark’s City Council in August, 2012. Ameresco performed the audit during 2012-13. This audit identified measures that would reduce the cost of operations at TMWRF by reducing electricity, chemical or fuel consumption. These energy conservation measures were described in detail in the Financial Grade Operational Audit, along with other measures that were deemed unsuitable for TMWRF.

Discussion: The Financial Grade Operational Audit performed by Ameresco identified $24,911,589.00 of improvements to maintain the integrity of the plant and lower energy, chemical, and operational costs. The Audit also provides a plan for a path to net-zero energy. In order to achieve these goals, TMWRF is looking to retrofit the facility with a variety of different arrangements and making the plant 45% energy independent. As a result, the plant would save $1,122,887 a year in energy, chemical and operational costs guaranteed through a performance contract. Table 1, attached, summarizes the proposed Energy Conservation Measures (ECM) recommended by Ameresco. Table 2 shows the guaranteed construction costs as well as the associated savings for each Energy Conservation Measure (ECM). The contract also includes the related work of repairs to the digester lids and the near-term dewatering improvements. This work is necessary for the other portions of the project to be functional. Both the digester lid repair and the near-term dewatering improvements are listed in the TMWRF 5-year Capital Improvement Plan. The cost-sharing between the City of Sparks and the City of Reno is shown in Table 3, attached.

KEY PROJECT BENEFITS:

•Operational Permit Compliance Benefits: Ostara nutrient recovery system will stabilize phosphorous limit compliance for river discharge per Truckee River Operating Agreement and Nevada Division of Environmental Protection regulations. It will also recover approximately 7% of the ammonia from the centrate, reducing the loading to the nitrification towers.

•Substantial rebuild of the dewatering process. The current equipment was installed in 1978 and is at the end of its service life. The proposed project will replace the process equipment and provide confidence for continued treatment ability.

•Air Quality Permit Compliance: Cogeneration system is highly encouraged by Washoe County Regional Air Quality Department and US EPA.

•Digester lid repairs are needed to meet current air quality standards.

•Path to Energy independence: Plant will be nearly 50% net energy and provide renewable energy to NV Energy portfolio standard.

•Local Jobs and Economic Support: Local equipment distributors, local subcontractors, and 75% local labor.

•Leverage Capital Expenditures: Use reserves to fund additional CIP projects beyond the approved 5 year CIP to yield lower operating costs.

•Lower Operating Costs: Reduce annual operating costs by at least $1.12 million/year.

Per NRS 332.360, PacificWest Energy Solutions was selected as the Third Party Consultant to review the project proposal on behalf of the cities. The findings are summarized in the Executive Summary as “After a thorough review and consideration of all project documentation and discussions, PacificWest has determined that the current project savings analysis, energy assumptions, and anticipated scope of work feasibility appear to be reasonable and sound. The investment grade operation audit analysis developed and provided by Ameresco has been deemed thorough and sufficient for TMWRF's purposes of accuracy and feasibility with regard to the overall project implementation.” The retrofits and upgrades proposed for TMWRF will not only help maintain the plant but also ensure quality production accompanied with savings in both energy and money. By making these upgrades, TMWRF advances its goals towards net zero energy and improves the treatment process of wastewater and the final product.