Supplemental Water:

Lessons Learned

Ed ClericoOctober 1, 2015

Water Reuse: Case Studies/Tourswww.naturalsystemsutilities.com

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28 Years - 61 Systems

Gillette Stadium, Foxboro, MA

Spurred economic development

along Route 1 corridor including

shops, restaurants and offices

The Solaire,

Battery Park, NYC

1st residential water reuse

project in the U.S.; LEED-

Platinum

Copper Hill Elementary School,

East Amwell, NJ

1st public school water reuse

system

Bristol-Meyers Squibb, NJ

1st Pharmaceutical WWT/Reuse

system in the US

MacDonald Island, AB, Canada

Integrated Water Reuse and Heat

Recovery system utilizing treated

wastewater effluent for irrigation

and flush water while also

recovering the effluent heat for pool

heating within the rec center.

61 = 8 direct reuse sewer mining only + 17 combined direct

and indirect reuse (handling 100% of wastewater flow) + 36

indirect reuse only (20 are within regulated utility). Capacities

range from15,000 gpd – 500,000 gpd.

Durst Halletts Point 1,

Queens NYC

District scale

redevelopment with in-

building water reuse

and thermal energy

recovery systems

Emory University,

Atlanta GA

400,000 GPD existing

infrastructure sewer

mining retrofit with

water reuse for cooling

and flushwater3

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Regulations

5

Reuse Regulations

Parameter NYC NJRI (Unrestricted

Reuse) MA (Class A) MA (Class B) DE CT

pH 6.5-8.0 6-9 6-9 6.5-8.5 6.5-8.5 -

Total Nitrogen - < 10 mg/L < 10 mg/L < 10 mg/L < 10 mg/L - < 10 mg/L

TSS < 10 mg/L < 5 mg/L < 5 mg/L < 5 mg/L < 10 mg/L < 10 mg/L< 30 mg/L (Max. Instantaneous) < 20 mg/L (Avg Monthly)

BOD < 10 mg/L - < 10 mg/L < 10 mg/L < 30 mg/L < 10 mg/L< 30 mg/L (Max. Instantaneous) < 20 mg/L (Avg Monthly)

Total Phosphorous

< 15 mg/L

Turbidity < 2.0 NTU < 2.0 NTU < 2.0 NTU < 2.0 NTU < 2.0 NTU < 5.0 NTU

Total Coliform< 100 per 100

mL

Fecal Coliform< 14 col/mL (Max. Instantaneous) < 2.2 col/mL (Weekly Median)

< 2.2/100 mL< 14 col/mL (Max. Instantaneous) ND (Weekly Median)

< 100 col/mL (Max. Instantaneous) < 14 col/mL (Weekly Median)

< 20/100 mL < 4 col/100mL

E. Coli < 2.2 col/100mL - - - - -

Loading Rate - < 2 in/wk - - - -

Min. Cl Residual or UV dosage

-1.0 mg/L (15 min.

contact time) or 100 mJ/cm2

0.5 mg/L (30 min. contact time) or 75

mJ/cm2- - -

Key Lessons Learned

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• Customer Drivers Vary Widely

• Pollution prevention – protecting the pristine, restoring the polluted

• Water conservation – scarcity of supply

• Economic benefit – property value, affordability, community economic vitality, resiliency

• Delivery Mechanism Greatly Affects Innovation Potential – DBO and DBOO allow for flexibility and accountability

• Innovation drives value

• Performance Is Not Just O&M – System Stewardship - the responsible overseeing and protection of something considered worth caring for and preserving. Adequate performance requires RME as system steward.

• Regulatory framework greatly affects innovation potential – prescriptive regulations stymie innovation and create scapegoat dynamics. The “appliance” approach works best.

• Integrated Systems Approach Provides Best Value To All Stakeholders

Existing Case Studies: BPC

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Over 10 years of operating data. ZERO permit exceedancesand ZERO user complaints/public health concerns

System automatically controlled/monitored with alarms. Licensed Operator On-Site 2 days/wk, less than 4 hours per day (8 hours / wk)

Achieving >55% Water Use Reduction

Achieving >65% Sewer Discharge Reduction

100% Reclaimed Water For Cooling Tower Make-up

Reduced strain on municipal/centralized infrastructure

Existing systems being retrofitted & new systems being developed with thermal energy recovery for NET ZERO/NET POSITIVE ENERGY water reuse

Existing Case Studies: BPC

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Multiple small scale systems serving densely populated areas. High efficiency MBRs – high quality water, small foot print

Innovation Driven Value

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Hot Water Tank (~30% building demand)60°C / 140°F

Heat Pump

Electric Energy for Treatment = 5% of building demands (350 kWh/day: single high-rise building scale, prior to optimization)

Recovered Heat = 65,500 Btu/hr (~400 kWh/day)

ho

t w

ater

loo

p

reu

se w

ater

loo

p

23 °C75 °F

13°C55°F

Mac Island Subcontractor/Client Testimonial:“The temperature in competition pool became to hot, but I will adjust the boiler heat exchanger lower than normal set point, so can use more heating from glycol heating” – Jonathan German, RRC/MIPC“Delivering enough free heat to actually overheat the competition pool!” - Andrew Byrnes, DEC

DBOO Example Structure

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RME

Sponsor/Developer

Site/Client/End User

Capital Agreement

LenderEquity

Investor

DesignBuild

OperatorRegulator

Service Contract

Technology, Delivery & Performance

Lease/Easement

ServiceAgreement / WPA

Appropriate Risk/Reward Dynamics are Critical for Success

• Economic Viability: Service is affordable and provides quality of life benefits to End User and economic benefit to sponsor, lender and investor

• RME is financially secure and provides performance guarantee

• Regulator is informed and empowered to enforce

• Debt & Equity investors could include combination of public and private sectors

• Having the end user as the RME creates conflicts

Permitting, Enforcement

Optimal Financial Risk Criteria

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• Scale is at least 100,000 gpd

• Timing (time to revenue < 2 years)

• Regulatory Environment Clear (not rate based rate of return regulated & environmental or reuse regulations exist)

• Cost of water >$10/1,000gallons

Supplemental Information

Standard Wastewater Treatment

Wastewater Treatment

Surface or groundwater discharge far from the source

Anaerobic Digester

Wastewater Treatment with Some Energy RecaptureOur Existing System

Electricity

Organic Matter

Wastewater Treatment

Energy Recovery Node

Surface or groundwater discharge far from the source

Anaerobic Digester

Wastewater Treatment with Some Energy Recapture

Electricity

Organic Matter

Wastewater Treatment

Energy Recovery Node

Surface or groundwater discharge far from the source

Anaerobic Digester and

CHP

Wastewater Treatment andNon-Potable Water Reuse Loop

Wastewater Treatment Including Integrated Water Management

Electricity

Organic Matter

Non-potable water reuse

Groundwater RechargeWastewater Treatment

Energy Recovery NodeGreen Stormwater Management

Anaerobic Digester and

CHP

Wastewater Treatment andNon-Potable Water Reuse Loop

Wastewater Treatment With Integrated Water Management Including Nutrient Capture

Nutrients

Electricity

Organic Matter

Non-potable water reuse

Groundwater RechargeWastewater Treatment

Energy and Nutrient Recovery Node

Green Stormwater Management

Hydronic Heat Capture

Anaerobic Digester and

CHP

Wastewater Treatment andNon-Potable Water Reuse Loop

District Thermal Energy Loop

Smart Sewer: A Resource Recovery System that Treats Wastewater

Nutrients

Electricity

Organic Matter

Non-potable water reuse

Groundwater Recharge

Heat

Wastewater Treatment

Heat

Energy and Nutrient Recovery Node

Green Stormwater Management

Water and Thermal Energy Recovery Node

Hydronic Heat Capture

Anaerobic Digester and

CHP

Non-Potable Water Reuse Supply

District Thermal Energy Loop

Water and Thermal Energy Recovery Node

Nutrients

Electricity

Organic Matter

Non-potable water reuse

Groundwater Recharge

Heat

Wastewater Treatment

Heat

Energy and Nutrient Recovery Node

Green Stormwater Management

Unit & Economic Processes

MEMBRANE BIOREACTOR

WASTEWATER

TREATEMENTNODE

FOOD WASTE DIGESTER

SLUDGE DIGESTER

TREATED

EFFLUENTSTORAGE

TANK

LOCAL NON-POTABLE WATER

REUSE APPLICATIONS

DIGESTATE SOLD AS HIGH-VALUEFERTILIZER FOR

LAND APPLICATION

DIGESTATE TO IN-VESSEL COMPOST

TO CLASS A BIOSOLIDS

COMBINEDHEAT AND

POWER

HEAT PUMP

LOCAL HEAT APPLICATIONS TO REPLACE FUEL OIL

TIPPING FEE REVENUE FROM

FOOD WASTEACCEPTANCE

GREENWAYS/OPENSPACE

GROUNDWATER RECHARGE

RESTORED URBAN STREAMS

POCKET WETLANDSELECTRICITY OR

CNG PRODUCED TO SELL TO USERS OR

TO PIPELINE

Integrated Water Resource Management

Reuse Applications:

Toilet Flushing

Cooling Tower Make-UpWater

Landscape Irrigation

Laundry

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Potable Water

Wastewater

Discharge to Sewers

Transfer to treatment

Membrane Bio ReactorUV/Ozone Disinfection

Reuse Water

ReservoirTo Irrigation

Distributed Water Reuse System Schematic

Aerobic Membrane Filters

Flush Water

Cooling Tower

Anoxic

Transfer to treatment

Stormwater Feed Tank

Wastewater Feed Tank

Laundry Water

Cooling Water

Co

olin

gWastewater

Re

use

Wat

er

Stormwater overflow

Highly variable

1

2

34

51 Wastewater collected for treatment

2 Stormwater collected for treatment where appropriate

Biological treatment

Final polishing and disinfection

Storage for nonpotable reuse 5

4

3 WW/Heat Pump

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Completed Project Case Study: Battery Park, NYC

Wastewater Optimization:

• Installed 25,000 – 100,000 gpd onsite

WWT for buildings

• Assisted 9 buildings be LEED Gold

• 48% reduction in water use

• 56% reduction in WW discharge

Investment Value (pro forma):• $1.5mm capital requirement• 25% water reuse tax credit

Key Partner: Albanese Group

Similar Projects in Pipeline

• West 57th St

• New School

Note: Operated continuously through Hurricane Sandy when Battery Park was submerged and without power for a week

NSU Proposition: DBO Urban Infill WWT/Reuse

The Visionaire Building Integrates a Multi-Functional System With Existing Infrastructure

Project Summary

• Achieve 55% Water Use Reduction, 64% Sewer Discharge Reduction and 100% Reuse For Cooling Tower Make-up

• Simple implementation for single building/owner

− More cost effective than NYC water & sewer (at 95,000 GPD scale)

− Lower energy use than NYC utility infrastructure

Value Proposition

• Proven resource stewardship that reduces lifecycle cost

• Intelligent design recycles formerly wasted resources

− Energy

− Water

− Nutrients

Economics• 25% Credit on Water & Sewer Bill offsets

operating cost 5.00

7.00

9.00

11.00

13.00

15.00

17.00

19.00

2005 2007 2009 2011 2013 2015 2017 2019 2021 2023

$/k

ga

l

Year

NYC W&S Rate vs. Reuse Costs

NYC Projected W&S Rate

100,000 GPD Reuse Cost

Date of Project Launch: 2004

Gillette Stadium, Foxboro MA – New England Patriots

• Intensive applications of wastewater treatment and water reuse that set new standards of performance.

• Gillette Stadium provides a case study of developer and community economic benefits coupled with environmental gains.

Gillette Stadium- Economic Growth Engine

Distributed Water Market Drivers are at an Inflection Point

1. Engineering Specialists Develop Experience in Niches

2. Environment & Public Health Regulations Expand

3. Incumbent Centralized Infrastructure Ages

4. Technology Tested in the Field

1. DBOO Platform Allows Solutions to Scale

2. Falling Subsidies / Demand for New Project Financing

3. Distributed Solutions Extend Capacity at Lower Cost

4. Innovative Technology Enhances Sustainability

Water Service Rate Trends in Major Cities

Past

Present

Capital Cost Factors - NYC

• Construct tanks as integral part of foundation walls to economize – concrete represents approximately 35% of costs

• $45/GPD capacity for small system of 25,000 GPD = $1 M

• $21/GPD capacity for medium system of 300,000 GPD = $6.3 M

• $16/GPD capacity for larger system of 500,000 GPD = $8 M

MBR Basic System Cost

0

10

20

30

40

50

60

70

80

90

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

Gallons Per Day (GPD)

Co

st

$/G

PD

Single building scale benefits from added heat recovery advantages

At neighborhood scale, costs competitive with municipal infrastructure

Operating Cost Factors – NYC

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Date

An

nu

al O

perati

ng

Co

sts

Base NYC Cost With No

Reuse

B- 25% reuse-25%

incentive

NYC Comprehensive Water Reuse Incentive Program – 25% rate reduction

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Date

An

nu

al O

perati

ng

Co

sts

Base NYC Cost With No

Reuse

B- 25% reuse-25%

incentive

500,000 GPD Water Reuse Economics

Comprehensive Water Reuse Incentive Program – 25% rate reduction