“Water is the oil of the 21st century”

Andrew Liveris

CEO, Dow

Aug 2008

On-Demand Pumps(Residential hot water recirculation*)

Do they make sense for

Sierra Vista, AZ & consumers?

* Based on Generalized Model for Hot Water Recirculation Analyses ©

Structured Plumbing(pump at water tank)

Structured Plumbing(O/D pump at faucet)

Since June 2000(water)

1 2 3 4 5 6 7 8 9 100

20

40

60

80

100

120

Annual Wasted Water

June 2000 - Jul 2009

Acr

e F

eet

None

Since June 2000(water)

1 2 3 4 5 6 7 8 9 100

20

40

60

80

100

120

Annual Wasted Water

June 2000 - Jul 2009

Acr

e F

eet

None

Recirc

Since June 2000(water)

1 2 3 4 5 6 7 8 9 100

20

40

60

80

100

120

Annual Wasted Water

June 2000 - Jul 2009

Acr

e F

eet

None

Recirc

On Demand

Since June 2000(power)

1 2 3 4 5 6 7 8 9 100

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Annual Wasted Power

June 2000 - Jul 2009

Po

we

r C

os

t ($

)

None

Since June 2000(power)

1 2 3 4 5 6 7 8 9 10$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Annual Wasted Power

June 2000 - Jul 2009

Po

we

r C

os

t ($

)

Timer

None

Since June 2000(power)

1 2 3 4 5 6 7 8 9 10$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Annual Wasted Power

June 2000 - Jul 2009

Po

we

r C

os

t ($

)

Timer

On Demand

None

June 2000 Policy Consequences*(Policy: timer pumps)

• Wasted water reduction -43%

• Energy costs increase +99%

• Consumers not using ~ 40%

* Derived from updated Generalized Model Analyses for on-demand recirculation pumps, Aug 2010 ©

2009 Predicted Community Outcome(Wasted power and water)

Costs

Power $2.2M Water 217K

Treat (city) 210K

Acre Feet 290* (95M gals)

CO2 emitted; MT 2,780

* 4.4% of annual water usage

SV Outcomes

• Analysis did not include:– Fort Huachuca– Mobile homes– Pre-June 2000 apartments– Commercial enterprises– Government buildings

• Understated

Consumer’s Perspective(Annual, per unit)

N/R Timer O/D

Power $149 $297* $57

Water, gals 8,767 4,982ª 1,198 cost $20 $11 $3

* Weighted power costs based on electric and gas hot water tank mix of 1:4

ª Weighted average for only timer pumps operating 4 or 16 hr/day = 2460 gal

Breakeven time(years)

Gas Electric

Timer pump

replace 1.4 0.9

defective .7 .5

New construction* .6 .4 * Breakeven years without recirculation return loop is zero; lower initial cost.

(Comment: non-recirculated installation is done for convenience.)

Conclusions & Actions

• Pumps save energy and water• Lack of awareness • New construction smart decision• City rebates; EOP cost avoidance• Could be an early USPWD grant initiative

• IRS tax credit proposal• SV updating plumbing code• SSVEC rebate proposal

Presentation Ends

2009 Predicted Community Outcome(Wasted power and water; two scenarios)

Costs Base Relaxed

Power $2.2M $3.8M Water 217K 310K

Treat (city) 210K 299K

Acre Feet 290 413

CO2 metric tons 2,780 4,813

A Recent DIY Installation

“We installed an on-demand pump in our home about two months ago.  In a day, Helen and I were ‘used to it.’  I wish we had done this 20 years ago!”

Gene Manring• Former Cochise County Supervisor• Former Exec Dir, SV Chamber of Commerce• Board member, SV Symphony• Director, SSVEC• June 20, 2010

SV Water Data(Source: Water Usage; SV Info, Apr 14, 2009)

City* Analysis• Bella Vista 2852 2852• FHU 1126 1126• PDS WC 1372 1372• AZ Water 1157 1157• PDS GC 384 0• City of SV 159 0• Cloud 9 Estates 26 26• TOTAL 7,076 AF 6,533 AF• Daily Usage (GPCD, g/pp/day*) 138 127 * Population: 45,908

Decomposition of Plumbing

• Pumps themselves

• Plumbing design: structural waste

• Water/energy nexus: – Water: costs, gallons, and acre-feet plus invisible– Energy: costs, kWhr, and therms

• Recirculation expenses: – plumbing design– by life-style

Standard to OD Plumbing Comparison(DR Horton Study, 2005)

Standard to OD Plumbing Comparison(DR Horton study, 2005)