The Wastewater Treatment Division for the Public Works Department, has recently become aware of an energy project incentive program available to the City of Billings.  The Public Works Department is asking Council to approve a Project Incentive Agreement between the City of  Billings and NorthWestern Energy for an energy rebate for the possible installation of a new high speed turbo blower at the Wastewater Treatment Plant in Fiscal Year 2015. The rebate would be for energy saved by replacing a current blower with a new, energy efficient high-speed turbo-blower. The incentive rebate will be reduced after January 15, 2014, so this agreement must be signed by both parties before that date in order to receive the higher rate.  Note that the project does not need to be constructed by January 15.  The agreement states the incentive will be $145,000.

The project would install a new single high-speed turbo-blower for a total estimated cost of $280,000.  This project is expected to be included in the FY 2015 budget for the Public Works Department.   .

The City Council may:

• Approve the agreement with NorthWestern Energy, or
 
• Not approve the agreement.  If the agreement is not appoved the City would not receive the project incentive if the project is constructed.

If the agrement is approved and the project is constructed the City is expected to receive $145,000. 

Staff recommends that the City Council approve and authorize the Mayor to sign the Project Incentive Agreement with NorthWestern Energy for the replacement of an existing blower at the Wastewater Treatment Plant with a new high-speed turbo-blower.