OWASA BOARD APPROVES CONTRACT WITH THE UNVERSITY FOR USE OF RECLAIMED (HIGHLY TREATED WASTEWATER) FOR NON-DRINKING PURPOSES. On March 23rd, the OWASA Board of Directors unanimously approved a contract with the University of North Carolina at Chapel Hill for the financing, construction, operation and maintenance of a reclaimed water use. Please click here to read the entire news release.

BASICS
SUMMARY OF CONTRACT BETWEEN OWASA AND THE UNIVERSITY
LOCATION OF THE RECLAIMED WATER USE SYSTEM
BENEFITS OF REUSE
SAFETY AND TECHNICAL FEASIBILITY
FINANCIAL CONSIDERATIONS

BASICS

What are “reclaimed water,” “water reuse,” and a “reclaimed water system?"

"Reclaimed water ” is water that has been previously used, but has gone through advanced treatment, such as occurs at OWASA's Mason Farm Wastewater Treatment Plant, so that it can be recycled back into the natural environment or safely used for allowable non-drinking purposes.

A “reclaimed water system” is a system through which reclaimed water is treated, pumped, and delivered for use in accord with State and Federal standards.

(Note: Some communities call their reclaimed water "reuse" or "recycled" water, and their systems "water reuse" or "recycled water" systems.)

Does OWASA plan to have a reclaimed water system?

OWASA is working with the University of North Carolina at Chapel Hill to have a reclaimed water system in operation by March, 2009. That system will enable us to distribute reclaimed water through a network of pipes that will initially serve the University's main campus. The reclaimed water will be used as an alternative source of water in certain facilities where it is not necessary to have drinking water.

We also plan to have the ability to fill tanker trucks with reclaimed water at our Mason Farm Wastewater Treatment Plant.

Why are OWASA and the University pursuing the use of reclaimed water?

By using reclaimed water instead of drinking water, we will reduce our community's risk to droughts. Reclaimed water will enable us to reduce withdrawals from our reservoirs and will reduce demands at our drinking water treatment plant. This will allow us to defer the need for costly development of additional water supplies and expansion of the water plant, thereby providing long-term savings for our customers. Reducing the amount of water discharged from the Mason Farm Wastewater Treatment Plant will also help us protect the quality of water in Morgan Creek.

How have OWASA and the University evaluated the costs, operating feasibility and safety of a reclaimed water system?

After the severe drought of 2001-2002, OWASA and the University agreed to jointly study the feasibility of using reclaimed water to meet certain water needs on the University's main campus. Hazen and Sawyer, a national engineering consulting firm, was hired to assist with the study.
Based on that work, OWASA and the University concluded that it was environmentally, economically, and technically feasible to develop a reclaimed water system that would initially serve the University's main campus area.

How will reclaimed water be used, and in what facilities?

The University will initially use reclaimed water in cooling towers at four chilled water production plants on the south side of the main campus (Phase 1). Those chiller plants help cool the air and equipment in buildings on the main campus. Those are the South Chiller, East Chiller, Thermal Storage Chiller, and North Chiller.

Future phases of the reclaimed water system could provide reclaimed water service to other cooling towers on the campus, for irrigation of athletic fields and landscaped areas, and for other purposes.

How much reclaimed water is expected to be used in our community?

Reclaimed water demand is expected to be about 530,000 gallons per day when the reclaimed water system goes into operation in the spring of 2009. That will equal about 6% of the community's total demand for drinking water.

In the long term, reclaimed water use could increase to 13 percent or more of the community's water demand.

Following is a list of the key potential reclaimed water demand centers on the main campus, and their projected average day reclaimed water demands.

The graph below illustrates the effects of the planned reclaimed water use system on OWASA's total raw water demand, i.e., on the need to withdraw water from the Cane Creek/University Lake/Stone Quarry reservoir system.  The solid diamonds represent actual raw water demand since 1980; the dashed line is the “expected” demand curve previously reported in OWASA's 2001 Comprehensive Water and Sewer Master Plan; the solid red line is the revised demand projection (without the use of reclaimed water) based on more recent forecasts, including detailed University development plans that were not available in 2001.  The green represents the range of projected water demands assuming the water demands for the recliamed water use scenario now under consideration.

The solid black step-shaped lines represent the capacity of OWASA's reservoir system under existing and future stages of development and under estimated 30-year recurrence and drought-of-record (2002) conditions.  The capacity under “Existing System” is the estimated combined 30-year safe yield of Cane Creek Reservoir, University Lake, and the existing Stone Quarry Reservoir with existing raw water pumping and transmission capacities. The capacity of “Quarry Pump Improvements” shows the estimated combined 30-year safe yield of Cane Creek Reservoir, University Lake, and existing Stone Quarry Reservoir with existing raw water transmission capacities and the planned upgrade of the Stone Quarry Reservoir pumping station. This new pump station will allow us to more effectively use the supply available from the existing Stone Quarry Reservoir. The capacity under “Expanded Quarry” shows the estimated combined 30-year safe yield of Cane Creek Reservoir, University Lake, and the enlarged Stone Quarry Reservoir (assuming a capacity of 2.4 to 3 billion gallons) with proposed long-term raw water pumping and transmission capacities.

With the planned reclaimed water use system and increased water conservation, under most hydrologic conditions OWASA's existing water supply sources may be adequate to meet the projected demand for water between now and the time the expanded Stone Quarry Reservoir comes on-line in the mid-2030s.

How much will the reclaimed water use system cost to build, and who will pay for the system?

The initial phase of the reclaimed water use system will cost about $11 million to design and build. That includes the University's cost to connect its facilities to the system, as well as the cost of any special treatment equipment needed at those facilities to enable the use of reclaimed water. Future expansion of the reclaimed water use system to the northern part of the campus could cost the University an additional $3 to $4 millon.

The capital, operating and maintenance costs of the reclaimed water system will be paid for by the users of reclaimed water service. Initially, the University will be the sole reclaimed water customer, so it will initially pay all of the construction and operating costs of the system.

Has OWASA received any Federal or State grants for the reclaimed water use project?

We have received State and Federal grants totaling nearly $2.5 million, to help pay part of the capital costs. The NC Clean Water Management Trust Fund awarded OWASA a $1,866,000 grant to pay for the engineering design and permitting costs for the project. We also have been awarded a Federal grant of more than $625,000 for the project, through the U.S. Environmental Protection Agency's State and Tribal Assistance Grant program. Congressman David Price provided invaluable assistance in the successful effort to obtain Federal grant funding for the project.

Please click here for more information about the grant from the NC Clean Water Management Trust Fund and here for more about the federal grant for reclaimed water system project.

Have OWASA and the University entered into a contract for the reclaimed water use system?

In February 2004 OWASA and the University entered into a Letter of Understanding outlining the general terms and conditions under which both parties would move ahead with planning, design, financing, and construction of the reclaimed water use system. The Letter of Understanding commits both parties to work on developing a detailed reclaimed water use system contract that further defines how the system will be developed, operated, maintained and financed.

In February, 2006, The University and OWASA representatives completed the drafting of a 28-page contract regarding the reclaimed water use system under this proposed agreement:

OWASA will own the reclaimed water use system.


The University will finance (from a State funding authorization) all costs of the initial design and construction of the reclaimed water use system from the Mason Farm Wastewater Treatment Plant in Chapel Hill to the southern part of the University campus, except for the costs pad for with State Federal grant funds for the project.


The University and any other future reuse customers will pay for the operating, maintenance, management costs of the system; and for any future extensions, replacements, renovations or other capital improvements to the reclaimed water use system.


The OWASA Board will have the sole right to determine the rates and fees for the reclaimed water use system.


The reclaimed water use system may be further extended in the future to serve additional campus facilities and/or off-campus locations at the expense of the entity to be served by the extension.

LOCATION OF THE RECLAIMED WATER USE SYSTEM

Where will the reclaimed water system be built initially?

At start-up, the system will provide reclaimed water to the University for use as cooling tower make-up water in four chilled water production (chiller) plants on the southern part of the main campus. This will require the installation of about 14,200 feet of reclaimed water distribution pipes running from OWASA's Mason Farm Wastewater Treatment Plant up to the main campus.

Below is a map showing the general layout for Phase 1 of the reclaimed water use system.

To minimize construction costs and disturbances, the University is designing and installing reclaimed water mains concurrently with ongoing construction work on the main campus. The University has installed, or has under construction, about 6,000 feet of the reclaimed water distribution system piping as part of campus construction projects now underway.

Can the reclaimed water system be expanded further for the long term and will other customers be able to use reclaimed water?

Our plans call for consideration of extending the reclaimed water pipes further throughout the main campus. Phase 2 of the system could, for example, include additional reclaimed water pipes to serve other facilities on the main campus, such as the Cogeneration Plant, and to provide reclaimed water for irrigation of certain athletic fields and landscaped areas. In any case, operating experience with the first phase of installation will help us understand the feasibility of extension of the system for other use.

Also, the system can be expanded in the future to serve other reclaimed water customers where practical.

Will the reclaimed water system on the main UNC campus also serve the proposed Carolina North project?

We believe it would be more cost-effective to build a separate reclaimed water system to serve Carolina North when it is developed. The reclaimed water system for Carolina North could be planned and built as an integral part of that project, thereby reducing Carolina North's demand on the community's drinking water supplies and water treatment plant.

SAFETY AND TECHNICAL FEASIBILITY

Is reclaimed water safe to use? Have any health and safety studies been completed for the planned reclaimed water use system?

With proper treatment and safeguards, the use of reclaimed water in accord with applicable standards not a threat to public health. The U.S. Environmental Protection Agency has concluded that “properly implemented non-potable reuse does not entail significant health risks…” (EPA; 1992)

The University and OWASA had a special study undertaken to confirm the safety of the planned reclaimed water use system. The study was done by Dr. Mark Sobsey, a nationally-recognized expert in environmental microbiology who specializes in water, wastewater, and reclaimed water. Dr. Sobsey conducted special sampling and analyses to determine the potential public health risk. He concluded that with the planned treatment system, “pathogens will be reduced to negligible levels in OWASA reclaimed water and there will be no realistic opportunity for human exposure to pathogens from the beneficial uses of the reclaimed wastewater.”

Dr. Sobsey's report also stated that: “The highly effective performance of the proposed OWASA water reclamation system treatment train of biological denitrification, UV irradiation and free chlorine disinfection in reducing fecal indicator microbes, provides a scientifically sound basis for recommending that the proposed water reclamation facility be implemented.”

For more information about Dr. Sobsey's report, please contact Ms. Margaret Holton, Water, Wastewater and Stormwater Manager in the University's Energy Services office at 919-843-0364 or by e-mail to mdholton@energy.unc.edu .

How will OWASA disinfect and otherwise treat wastewater to make it safe for use?

OWASA will disinfect the reclaimed water using a two-stage “multiple barrier” process. First, reclaimed water will be disinfected with ultraviolet light, which has been proven to be highly effective at removing harmful bacteria and pathogens in water and wastewater. Chlorine will then be added to further disinfect the reclaimed water and to help ensure that bacteria do not regrow in the reclaimed water system pipes.

What safety, environmental and health standards apply to reclaimed water?

The North Carolina Department of Environment and Natural Resources has established regulations for the production, distribution and use of reclaimed water (pdf format). Those regulations require that reclaimed water meet certain water quality standards to protect public health. Reclaimed water must not exceed the following limits:

	Biological Oxygen Demand	10 milligrams per liter
	Ammonia Nitrogen	4 milligrams per liter
	Total Suspended Solids	5 milligrams per liter
	Fecal Coliform Bacteria	14 colony forming units per 100 milliliters

There are no Federal standards for reclaimed water. However, the U.S. Environmental Protection Agency has developed guidelines for the production, delivery and use of reclaimed water.

What monitoring and testing will be done to ensure the safety of reclaimed water?

Reclaimed water quality will be monitored regularly for the regulated parameters to ensure that it consistently meets applicable health standards. On-line monitoring equipment will be installed to provide continuous feedback about the chemical and physical, quality of reclaimed water.

If monitoring results indicate that the reclaimed water does not meet the relevant standards, then the distribution and use of reclaimed water will be halted until reclaimed water quality returns to acceptable levels.

The Mason Farm Wastewater Treatment Plant is operated and maintained by highly trained people who will be trained in the safe operation, supervision and monitoring of the reclaimed water use system.

What uses of reclaimed water are allowed under NC standards and considered safe?

North Carolina 's reclaimed water standards provide that reclaimed water can be used for:

•  Irrigation of parks, playgrounds and landscaping
•  Industrial cooling (such as in cooling towers at chiller plants that cool buildings)
•  Flushing toilets and urinals
•  Decorative fountains
•  Commercial laundries
•  Firefighting
•  Construction, street sweeping, dust control

Reclaimed water is NOT approved for human ingestion or food preparation.

Is reclaimed water use a new technology?

Reclaimed water is used in nearly 2,000 communities around the country. Most reclaimed water use systems are in Florida, California and other parts of the arid southwest. Several systems have been operating successfully and safely for decades.

Reclaimed water use is a newer practice in North Carolina. Cary, Charlotte-Mecklenburg Utilities District, Johnston County, Raleigh, Zebulon and Sanford are some of the localities in our State that have reclaimed water systems in operation.

How will people know where reclaimed water is being used in our community?

As required by State standards, we will inform the public and employees by posting signs in areas and facilities where reclaimed water is used. We will also inform the public through other means, such as newsletters, news articles, educational workshops, this website, etc.

Is reclaimed water harmful to plants?

In many communities that have reclaimed water use systems, most of the reclaimed water is used for landscape irrigation. Based on the initial studies of the quality of reclaimed water that will be produced at the Mason Farm Wastewater Treatment Plant, that water will be suitable for landscape irrigation.

Will reclaimed water be kept separate from drinking water?

Separate pipes must be used to carry drinking water and reclaimed water. State standards require that reclaimed water pipes and facilities be clearly marked to help assure that reclaimed water is not mixed with drinking water.

Reclaimed water pipes must either be colored purple or be stamped or marked “CAUTION: RECLAIMED WATER – DO NOT DRINK” or be installed with a purple identification tape and a purple polyethylene vinyl wrap. All meter boxes, valve boxes and other equipment must be colored purple and marked to indicate that they are only for reclaimed water.

BENEFITS OF REUSE

How will reclaimed water use benefit the overall community?

Reclaimed water use will benefit our community in many ways:

•  Allows us to meet our non-drinking water needs in a more cost-effective way while freeing up the community's valuable drinking water supply and treatment capacity to meet essential needs.

•  Lowers the risk for all customers during water shortages due to droughts or other conditions.

•  Better enables us to optimize the use of our locally-protected water supplies.

•  Helps defer the need for certain long-term capital improvements due to the reduced demand for drinking water.

•  Helps defer the potential need to develop costly facilities to obtain water from Jordan Lake.

•  Helps protect water quality by reducing the discharge of pollutants such as nitrogen and phosphorus to Morgan Creek, which flows into Jordan Lake. As on land nitrogen and phosphorus are fertilizers for plant growth. Limiting nitrogen and phosphorus is important in controlling the growth of algae in Jordan Lake.

Reclaimed water will provide the University and UNC Hospitals an alternative water source for allowable non-drinking purposes in droughts, water main breaks, and other emergencies, thereby helping to ensure that critical facilities such as chiller plants will have adequate water in such emergency conditions.

For example, in April 2005 when a 20-inch water line was broken by a contractor, water service to the UNC Hospitals' chiller plant was temporarily interrupted. If reclaimed water service had been available, service to that facility would not have been affected by the water main break.

Will reuse affect the quality of treated wastewater that OWASA recycles in Morgan Creek from the Mason Farm Wastewater Treatment Plant?

The reclaimed water use system will reduce the quantity but not the quality of treated water that the Mason Farm Wastewater Treatment Plant releases into Morgan Creek. The quality of that water is required to meet strict standards specified in the State's permit for the plant.

Reclaimed water use will reduce the quantity of water that is reycled into Morgan Creek by about six to fifteen percent of the plant's average daily discharge to the creek.

Our projected average-day wastewater discharge in 2008-09, when reclaimed water use is projected to begin, is about 8.5 million gallons a day (MGD).  At start-up, the projected average-day demand for reclaimed water is projected to be 0.53 MGD – slightly more than 6% of the projected discharge.  Within 20 years, our average-day wastewater discharge is projected to be about 13.25 MGD, whereas our projected average-day demand for reclaimed water is about 2 MGD under the maximum buildout scenario for the main campus.  That would be about 15% of the projected average-day flow.  From this, it is projected that even with the reclaimed water use system in place, there will be a net increase in our average-day discharge to Morgan Creek (Year 2008/2009:  8.5 MGD – 0.53 MGD =  7.97 MGD average-day net discharge; Year 2028:  13.25 MGD – 2 MGD Reuse = 11.25 MGD average-day net discharge).

FINANCIAL CONSIDERATIONS

How much will reclaimed water use system affect OWASA's drinking water revenues?

The use of reclaimed water will reduce the volume of drinking water that we sell, which will in turn affect our drinking water revenues somewhat.

This same revenue reduction could occur if the water demand reduction resulted from water conservation efforts (such as replacement of older water-wasting toilets with new low-flush models) or if major water user(s) discontinued operations.

Will the use of reclaimed water affect OWASA's rates for drinking water?

An increase in water rates and/or a decrease in expenses would be needed to ensure that OWASA has sufficient drinking water revenues as the reclaimed water use system is implemented.

The actual level of the required offsetting increase in the water rate will depend on several factors such as:

•  the rate at which the reclaimed water system is implemented over a period of years;

•  other demand factors such as customer growth and per capita water use;

•  demand management efforts that may be initiated;

•  the extent to which OWASA can offset revenue losses by cost reductions and deferrals in a given budget year; and

•  how much of OWASA's fixed costs that are now recovered through the drinking water rate will be recovered through the reclaimed water rates.

Although the reclaimed water use system may require some near-term increases in water rates, the reclaimed water system is expected to provide substantial cost savings over the long term through the deferral of major water supply and treatment facility expenditures. This will reduce certain long-term capital costs that OWASA customers would otherwise bear, thereby helping to keep water rates lower than they would be without a water reclaimed water use system in place.

Will reclaimed water affect OWASA's sewer revenues and sewer rates?

The use of reclaimed water is not expected to affect OWASA's sewer revenues or the volume of wastewater that must be treated. Therefore, there will be no effect on rates for sewer service.

FOR MORE INFORMATION

Who can I contact for more information about OWASA's and UNC's water reclaimed water use efforts and plans?

For information about OWASA's plans to produce and provide reclaimed water, we invite you to contact:

Patrick (Pat) Davis, Utility Manager Generalist
OWASA
400 Jones Ferry Road
Carrboro , NC 27510-0366
Telephone: 919-537-4210 E-mail: pdavis@owasa.org

For information about the University's plans to use reclaimed water on the main campus, please contact:

Margaret Holton
Water, Wastewater and Stormwater Manager
UNC Energy Services
Giles Horney Building, CB #1855
Chapel Hill, NC 27599-1855
Telephone: 919-843-0364 E-mail to mdholton@energy.unc.edu

Where can I get more information about relcaimed water use?

Following are links to some other Websites with information on reclaimed water use and reclaimed water.

WateReuse Association www.watereuse.org

U.S. Environmental Protection Agency (EPA) www.epa.gov/region9/water/recycling/index.html

EPA's Reclaimed Water Use Guidelines www.epa.gov/ORD/NRMRL/pubs/625r04108/625r04108.pdf

Florida Department of Environmental Protection www.dep.state.fl.us/water/reuse/index.htm

Pinellas County , Florida www.pubgis.co.pinellas.fl.us/pcuweb_live/reclaimed/index.cfm

Irvine Ranch Water District , California www.irwd.com