Cooling Tower Operations Sewer Credits and Incentives

Can I Get Sewer Credits for Boiler Water or Just Cooling Towers?

Commercial steam boiler room with pressure gauges

Quick Answer

Yes — sewer credits are not limited to cooling towers. Steam boiler systems qualify wherever you can document water that enters the building but never reaches the sewer: steam vented to atmosphere, steam consumed by humidification or kitchen equipment, and condensate that is lost rather than returned to the boiler. Boiler blowdown does not qualify, because that water goes down the drain. The buildings with the most to gain are those running steam boilers — hospitals, universities, hotels, and industrial facilities — where steam losses can reach tens of thousands of gallons per month. The documentation requirement is the same as for cooling towers: metered proof of non-sewer volume, usually from a submeter on the boiler makeup line plus condensate return data. Buildings with both a cooling tower and a steam boiler can combine both losses in one application.

When most people think of sewer credits, they think of cooling towers — and for good reason, since cooling tower evaporation is typically the largest non-sewer water use in a commercial building. But cooling towers aren’t the only qualifying water use. Boiler systems, particularly in buildings with steam heating, can also generate significant sewer credit savings that many facility managers overlook.

How Boilers Lose Water

Steam boiler systems lose water through several mechanisms that parallel cooling tower losses. The most obvious is steam that’s generated and distributed throughout the building for heating — some of this steam is consumed (vented to atmosphere through safety valves, cooking equipment, or humidification systems) and never returns to the boiler as condensate. This is water that enters your building through the meter but never reaches the sewer.

Boiler blowdown is another qualifying loss. Like cooling towers, boilers concentrate dissolved minerals as water evaporates into steam. Regular blowdown removes this concentrated water — and while blowdown water does go to the sewer, the steam losses do not. Additionally, condensate return losses from leaking steam traps, failed condensate pumps, or condensate that’s deliberately dumped (in once-through steam systems or where condensate is contaminated) represent water that left the boiler room but didn’t reach the sewer.

The U.S. Department of Energy’s guidance on steam systems documents the multiple pathways through which steam boilers consume water that bypasses the sewer system entirely.

What Qualifies for Credits

The key qualification for any sewer credit is the same regardless of the source: you must be able to document the volume of water that doesn’t reach the sewer system. For boiler applications, the qualifying losses typically include steam vented to atmosphere (through safety valves, atmospheric vents, or process equipment), steam used for humidification that enters the air stream, condensate that isn’t returned to the boiler and doesn’t go to the sewer, and deaerator vent losses.

Boiler blowdown generally does NOT qualify for sewer credits because that water goes to the drain. However, the steam losses that blowdown replaces — the reason you need makeup water in the first place — do qualify. This distinction matters when you’re calculating your credit amount and presenting data to the utility.

Most utilities that offer sewer credits for cooling towers also accept boiler loss documentation. The application process is essentially the same — you need metering data that quantifies your non-sewer water consumption. A submeter on the boiler makeup water line, combined with metering on the condensate return (if applicable), gives you the data you need.

Combining Boiler and Cooling Tower Credits

Buildings that have both cooling towers and steam boilers are in the strongest position for sewer credits because they can combine both sources of non-sewer water loss into a single application. A hospital, for example, might evaporate 200,000 gallons per month through its cooling towers and lose another 50,000 gallons per month through its steam system — qualifying for credits on 250,000 gallons rather than just 200,000.

The EPA’s WaterSense program for commercial buildings recommends accounting for all non-sewer water uses when pursuing utility bill reductions, not just the single largest source.

When filing your sewer credit application, presenting both cooling tower and boiler data in a single package demonstrates thoroughness and makes a stronger case to the utility reviewer. It also means you’ll capture the full savings potential rather than leaving boiler-related credits on the table.

Running the Water Balance on Your Boiler

Before you invest in meters or applications, estimate your credit potential with a simple water balance: Steam losses = Makeup water − Blowdown − (Condensate dumped to drain). Everything on the left side of that equation is water you’re buying that never reaches the sewer. If you already log boiler makeup — many buildings do, as part of their water treatment program — you can build a first estimate from existing records in an afternoon.

Two numbers drive the size of the opportunity. The first is condensate return rate: a tight steam system returns 80 percent or more of its condensate, while a system with failed steam traps, long uninsulated runs, or once-through equipment may return half that. The second is operating season — steam losses peak in the heating months, which makes boiler credits a natural complement to cooling tower credits that peak in summer. Together they can smooth your documented non-sewer volume across the entire year instead of concentrating it in one season.

What the Utility Will Ask You to Prove

Utility reviewers see far fewer boiler applications than cooling tower applications, so expect more questions and prepare tighter documentation. A strong boiler credit package typically includes:

  • Makeup water metering on the boiler feed line — a dedicated submeter, read monthly, is the anchor of the application.
  • Condensate return data, either metered or supported by an engineering estimate of return rate for your system type.
  • Blowdown accounting that shows you are excluding blowdown from the claimed credit — utilities check for this, and claiming blowdown is the fastest way to get an application rejected.
  • A one-page system description: boiler type and pressure, where steam is consumed, and which losses are vented versus drained.
  • Twelve months of history where available, so the reviewer can see the seasonal heating pattern rather than a single cherry-picked month.

If your utility has no formal boiler credit category, apply under the general sewer credit or “water not returned to sanitary sewer” provision in the tariff — the legal basis is identical to the cooling tower case.

Common Boiler Systems That Qualify

Not every building with a boiler qualifies for meaningful credits. Small hot water boilers in closed-loop heating systems lose very little water — the same water circulates continuously, and makeup requirements are minimal. The buildings most likely to benefit are those with steam boilers (especially high-pressure industrial systems), buildings with once-through steam systems that don’t return condensate, facilities with steam-powered kitchen equipment (hospitals, universities, large hotels), and buildings that use steam for direct humidification.

Ready to Find Out What You Could Save?

RPM Water Equity Solutions helps commercial facilities recover money lost to sewer billing assumptions. If your building has cooling towers, you may be paying sewer charges on water that never reaches the sewer system.

Request your free assessment today and find out how much you could recover.

Don’t Leave Boiler Credits on the Table

If your building has a steam boiler system, it’s worth investigating whether the water losses qualify for sewer credits in your municipality. The documentation requirements are similar to cooling tower credits, the application process is the same, and the savings are just as real. Many facilities focus exclusively on cooling tower evaporation and miss the additional savings available from their boiler systems — savings that could add thousands of dollars per year to their bottom line.


Mark Mason

Mark Mason writes about commercial water management, sewer credits, and cooling tower operations for RPM Water Equity Solutions. RPM helps commercial buildings stop paying sewer charges on water that never reaches the sewer — recovering credits through submetering, evaporation credit programs, and 24/7 water monitoring, backed by 200+ utility partnerships across 36 states.

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