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Council authorizes Clean Water SRF application for compost facility energy upgrades

Merrimack Town Council · September 25, 2025
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Summary

Merrimack authorized accepting a Clean Water State Revolving Loan up to $500,000, with up to $250,000 in principal forgiveness, to add variable frequency drives and air‑monitoring controls at the town composting facility to cut electricity use and address air‑permit compliance.

Town staff described sharp increases in electricity use after recent blower upgrades at the composting facility and asked the council to authorize accepting a Clean Water State Revolving Fund loan of up to $500,000 with potential principal forgiveness of up to $250,000 to fund energy control measures.

The staff presentation explained that six replacement fans installed to meet NFPA 820 safety standards required the facility to run at higher airflow, which tripled prior electric consumption measured in kilowatt‑hours. An energy audit recommended two energy conservation measures (ECM 1 and ECM 2): installing variable frequency drives (VFDs) on motors and adding an air‑monitoring system so fans run only as needed. Town staff said the package cost estimate for the controls and monitoring is about $318,000 and projected a payback of roughly 3.4 years.

Staff also reported biofilter ammonia compliance issues caused when higher airflow dried the filter and said the proposed controls would both save energy and help meet air‑permit requirements. Acceptance of the loan would still require a town warrant vote and governor and council approval for state funds. The council moved and approved the authorization and directed staff to place the warrant item as required.

Tom Thornton moved the authorization; the motion included town manager authority to sign documents and to place the appropriation on the town warrant. The motion passed by voice vote 6–0–0.

Next steps: staff will refine bids, confirm forgiveness amounts with the state, and bring a warrant article for resident approval.