Good Use Requires Good Measure: Using technology to understand Arizona’s water needs

Clean, fresh water is a luxury many Americans take for granted. This life essential resource is often consumed without regard for where it comes from or how much is needed tomorrow. Here in Arizona, we’re well aware that water drives our economy and everyday lives. Unfortunately, arid environments like ours rarely receive adequate rainfall to sustain the needs of our growing cities and regions.

In spite of successful public education campaigns encouraging users to reduce their water consumption, local municipalities are faced with the hard fact that current demand is outpacing supply. Each year, Arizona consumes more than 2 trillion gallons of water. While most of it, roughly 70%, goes to farmers and ranchers, Arizona residents use more than 130 gallons per day.1,2

Here are two key questions to ask: Are municipalities doing all they can to help us become better water consumers? Are they making good infrastructure investments to reduce water waste? Luckily, many municipalities throughout the nation have answered this question. They turned to automated meter reading (AMR) technologies to reduce waste by creating better monitoring systems that provide consumers and administrators with action-oriented alerts to leaks and use.

Cities and water agencies experience between 15-20% water loss as a result of system inefficiencies, leaks, etc. AMR systems can reduce that amount to around 5%, not only reducing waste but also reclaiming otherwise lost revenue.

AMR technology has been around since the 1970’s, but only in the past decade have advances in functionality and connectivity made it a worthwhile investment for municipalities to consider.

In a typical system, computerized water meters are installed on building main lines or at site-specific locations. Water use data at each unit is tracked by the hour, then sent to a nearby data storage center. Depending on how the system is set up, the data is transmitted to the municipality’s central database through an internet connection in real-time, or remotely collected by meter readers on a weekly basis.

Because of AMR technology, municipalities that make these projects a priority are better able to manage their systems and operations by:
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Detecting infrastructure leaks
Identifying site-specific waste
Monitoring use and conservation compliance
Providing detailed billing and customer support
Efficiently planning for future resource and infrastructure needs

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One of the best ways to implement an AMR system is by pairing it with a comprehensive set of infrastructure upgrades such as street light retrofits and citywide landscape automation. A comprehensive project, upgrading multiple facets of city infrastructure will help realize the greatest water and energy savings possible.

Many cities and water district leaders do not realize that while AMR systems and other projects can be a significant investment, opportunities for financing exist that allow local governments to pay for the project while guaranteeing energy and water savings through performance-based contracting. To learn more about performance-based contracting, click here: http://www.climatec.com/cities-can-afford-energy-efficiency-projects/

Before embarking on a comprehensive retrofit project, an energy service company (ESCO) will perform an independent audit of infrastructure to determine the optimal projects for energy and water savings. As a part of that audit, an ESCO will review current meter technology and determine appropriate system upgrades.

Our State is faced with many challenges. Although water is one of them, technologies like automated water meters give local governments an opportunity to be better stewards of this precious resource. Local municipalities that make strategic investments in projects like these will bolster the State’s supply and ensure their customers water needs are met for decades to come.

“Securing Arizona’s Water Future.” Arizona Department of Water Resources, n.d.Web.
http://www.azwater.gov/AzDWR/PublicInformationOfficer/documents/supplydemand.pdf
Artiola, Janick F., Ph.D., Kathryn L. Farrell-Poe, Ph.D., and Jacqueline C. Moxley, M.Sc. “Arizona: Know Your Water – A Consumer’s Guide to Water Sources, Quality, Regulations, and Home Water Treatment Options;.” University of Arizona, n.d. Web.
https://wrrc.arizona.edu/sites/wrrc.arizona.edu/files/AZ%20Know%20Your%20Water.pdf

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The Inflation Reduction Act – What Every Public Entity Needs to Know

With the passage of the Inflation Reduction Act (IRA) of 2022, the federal government has signed up for an unprecedented, long-term investment in the clean energy sector here in the USA. The high-level objectives of the IRA are to: cut inflation, create jobs and spur domestic manufacturing–all while investing in the much-needed renewal of public infrastructure. Investments in electrification and clean energy production–plus the funding to motivate public entities to act–are noteworthy given the political stalemate in Congress for the past few years.

Public sector entities (cities, counties, schools, colleges, universities and water districts, to name a few) now have access to significant federal funding (30% to 60%+) to help offset the costs of eligible clean energy and electrification projects. Funding via other grants, such as Energy Efficiency Conservation Block Grants (EECBG), adds to the pool of monies available to fund these investments, and ultimately, address failing or inefficient infrastructure.

LONG-TERM, DIRECT TAX CREDITS FOR PUBLIC SECTOR

As is typical with the federal government’s grant and funding programs, the devil is in the details. In this case, the Department of Energy, the Treasury Department (yes, the IRS), the Transportation Administration and others, have a hand in creating the programs and regulations that disperse IRA funds. More importantly, as non-tax payers, local governments, schools and special districts historically have not benefited from the traditional Investment Tax Credits (ITC) of 30%. In the past, public entities had to rely on private investors with tax equity to fund these projects using complex third-party power purchase agreements (PPAs). That changes now.

From 2024 through 2033, the IRA authorizes direct-pay, investment tax credits to public entities who build long-term clean energy assets, such as solar photovoltaic and energy storage systems; small wind systems; geothermal-powered heating and cooling systems; electric vehicle charging stations; and related infrastructure. Even though you don’t pay taxes, you now receive these tax incentives as a direct payment in the form of a rebate towards your energy project.

CASH PAYMENTS TO OFFSET 30% OR MORE OF INSTALLATION COSTS

The IRA provides tax credit funds for an unlimited number of qualifying energy projects across the U.S. over the next 10 years.

The base tax credit under the IRA starts at 30% of eligible system costs. For typical systems under 1 Megawatt (MW) in size (per tax year), it may increase with entitlements of 10% for designated low-income areas, 10% for labor compliance requirements, 10% for community solar projects, plus up to 20% for systems located in designated Energy Communities. Systems exceeding 1 MW in size must comply with strict labor compliance and domestic content regulations to receive the tax credit subsidies.

Keep in mind that federal tax credit will be reduced by 15% if tax-exempt funds (e.g. municipal leases, tax-exempt bonds, etc.) are combined to pay for eligible systems.

A chart from Statista showing how the Inflation Reduction Act will affect U.S. emissions — Source: Martin Armstrong, Statista

TAX FORMS AND FILINGS ARE REQUIRED TO RECEIVE PAYMENT

Since fiscal public officials will be required to review, approve and file tax forms, you’re strongly recommended to consult your municipal financial advisor or tax professional regarding your IRA application strategy.

A public entity must first pay the cost of installing the eligible system, place the system into service, file a pre-registration form with the IRS and then wait for the IRS to respond with a system registration number. Once the public entity has the registration number, the special tax forms for your tax credit application are filed with your annual tax filing.

START NOW, OR YOU WILL LOSE OUT ON A TREMENDOUS FEDERAL SUBSIDY

As the saying goes, “Rome wasn’t built in a day.” The federal government has set aside a huge amount of funding for eligible public sector entities, and you may only capitalize on these funds if you take ACTION.

Form a working group of stakeholders, create a realistic energy modernization plan, then issue an RFP to procure an experienced, full-service energy services firm. After the project is developed, implemented and placed in service, your municipal financial advisor will work with your energy services company to maximize the federal tax credit subsidies for your particular community. Not to mention, the program as a whole will allow you to check major boxes for your Climate Action Plan (CAP) and meet State mandates for greenhouse gas emission reductions before 2030.

California ratepayers saw utility expenditures double in the last 5 years as public utilities posed double-digit year-over-year rate increases. These trends are expected to continue. Many public agencies are finding traditional, piecemeal approaches fall short in today’s construction economy due to staff bandwidth constraints, cost escalations, labor shortages and supply chain disturbances. As operating and capital budgets tighten across the board, it’s incumbent upon public sector leaders to get smart on streamlined project delivery methods and creative funding solutions. With more funding available than ever before, now is the time to implement your climate action initiatives if you haven’t already.

Learn more about why public agencies should invest in energy infrastructure now.

AUTHORS

Thomas Jackson, Corporate Vice President Major Projects, Climatec LLC a Robert BOSCH Company
Bruce Dickinson, President, Eagle Energy Solutions, LLC

JIG-SAW partners with Climatec to bring Smart Stadium technology to San Diego Padres (MLB)

- Climatec and JIG-SAW partner to bring wayfinding technology to Petco Park.

- JIG-SAW’s IoT technology will be supported by Climatec in design, deployment, and service.

- Installed technology will reduce operational and maintenance costs, extend the life of equipment, and create improved amenities for Padres fans.

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San Diego, CA: JIG-SAW and Climatec, LLC. have partnered to transform Petco Park, home of the San Diego Padres, into a connected and intelligent venue using JIG-SAW IoT technology. Through this collaboration, JIG-SAW and Climatec will enable complete visibility and control of the stadium to make Petco Park the definitive sports experience for fans and the Padres. The first phase of the project will be complete in mid-August as the Padres unveil interactive signage providing wayfinding directions and showcasing promotions for fans.

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Earlier this year, JIG-SAW announced a partnership agreement with the San Diego Padres, an American professional baseball team competing in Major League Baseball (MLB), to provide JIG-SAW IoT technology for creating and managing networks of smart equipment. This technology will help the Padres by reducing operational and maintenance costs, extending the life cycle of equipment, and creating improved amenities for their fans.

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To integrate the unique applications enabled by JIG-SAW software, JIG-SAW partnered with Climatec, an industry leader for advanced building and energy solutions. This partnership is set to revolutionize the landscape by seamlessly integrating JIG-SAW's groundbreaking IoT communication software technology into a centralized command center, expertly supported by Climatec in design, deployment, and service.

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JIG-SAW’s IoT communication software technology provides an open and scalable foundation to connect and manage any device with any platform. The interactive signage and upcoming solutions will aggregate and analyze data by taking advantage of JIG-SAW IoT integration driver on Tridium’s Niagara, the connected product management platform for stadium operations. Climatec seeks to leverage the new capabilities that JIG-SAW software offers, integrating ready-to-deploy packages that reduce installation costs, simplify maintenance, and unleash invaluable data insights for data-driven decision making, supercharging operating revenue.

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JIG-SAW and Climatec will collaborate to solve the digital transformation challenges of the Padres stadium and promote the solutions as case studies for other residential, commercial, industrial, and institutional facility operators across the nation and beyond.

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About JIG-SAW

JIG-SAW is a software technology company that specializes in IoT Data Control Services. Our mission is to accelerate the time-to-market for IoT applications and bridge the operational technology (OT) and IT gap. For more information, visit https://www.jig-saw.com/

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About Climatec

A Bosch Company: For over 40 years, Climatec has steadily invested in the people, technology, and services needed to be its customers’ trusted business partner. Today, Climatec is one of the leading providers of building technology and energy solutions in the nation with over 1,000 associates across Arizona, California, Nevada, New Jersey, New York and Texas. Climatec’s technology partners include the world’s leading suppliers of building automation, security and life safety, and energy efficiency technologies. And since 2015, Climatec has proudly been part of the Robert Bosch group of companies. For further information see www.climatec.com.

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