$1.43M sought to go green; Stimulus funds for water plant.

Byline: Nick Kotsopoulos

WORCESTER - The city is seeking $1.43 million in federal stimulus funds through the state to finance three "green energy" projects at its water filtration plant in Holden.

The planned upgrades would reduce the amount of electricity and natural gas that has to be purchased to operate the filtration plant, resulting in an estimated annual savings to the city of roughly $55,000, according to city officials

City Manager Michael V. O'Brien said the American Reinvestment and Recovery Act has made funding available, through the state Department of Environmental Protection's State Revolving Fund, to help municipalities with renewable energy projects at water filtration plants.

He said the low-interest loans are "100 percent principal forgiven."

Robert L. Moylan Jr., commissioner of public works and parks, said the DEP's State Revolving Fund has included the city's three projects in its 2009 Intended Use Plan. He said applications for the funding must be filed with the state by Sept. 15.

The projects are:

Installation of a 150-kilowatt solar photovoltaic system and associated electrical upgrades.

Installation of 24-kilowatt hydroelectric generator at the Lynde Brook transfer main pipeline to capture the power of the water that flows by gravity from Lynde Brook Reservoir in Leicester to Holden Reservoir No. 2, where the water filtration plant is located. About 6 million gallons of water a day flow from Lynde Brook to Holden Reservoir No. 2.

Upgrades to the ventilation system that will reduce natural gas consumption used for heating the filtration plant.

Mr. Moylan said the three projects are expected to reduce the amount of electricity that has to be purchased to operate the filtration plant by about 14 percent, translating into an annual savings of about $39,000. In addition, the savings in natural gas would be about $16,000 annually, he said.

Electricity and natural gas for the plant, which treats about 23 million gallons of water a day, is paid for out of revenue generated from water bills. That means the savings in the plant's operating costs would benefit local water users, according to city officials.

"Because of significant capital expenditures renewable energy projects, while desirable from an environmental and energy independence perspective, are not generally cost effective," Mr. Moylan wrote in a report that goes before the City Council tonight. "However, with 100 percent of the capital investment funded through federal stimulus dollars, the cost to the city will be minimal and the savings will be realized almost immediately.

"This may be a one-time opportunity to get federal funds that will benefit Worcester water ratepayers and help the city meet its energy efficiency goals," he added.

To meet the Sept. 15 deadline, the city manager is asking the council tonight for authorization to file the city's funding application.