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HomeMy WebLinkAbout07.a. Authorize joining Bay Area Biosolids to Energy Coalition (BAB2E)Central Contra Costa Sanitary District Ia. ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: October 3, 2013 Subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A JOINT EXERCISE OF POWERS AGREEMENT TO BECOME A MEMBER OF THE BAY AREA BIOSOLIDS TO ENERGY COALITION, DISTRICT PROJECT NO. 7312, AND APPROVE A CONTINGENCY ALLOCATION OF $260,000 FROM THE TREATMENT PLANT PROGRAM OF THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET Submitted By. Initiating Dept. /Div.: Curtis W. Swanson Operations Department Director of Operations REVIEWED AND RECOMMENDED FOR BOARD ACTION: K. Alm R. Bailey Counsel for the District General Manager ISSUE: Board authorization is required for the General Manager to execute a Joint Exercise of Powers Agreement (JEPA). Board authorization is required to allocate Capital Improvement Budget (CIB) contingency funds greater than $100,000. RECOMMENDATION: Authorize the General Manager to execute a JEPA to become a member in the Bay Area Biosolids to Energy Coalition (Coalition); and approve a contingency allocation of $260,000 from the Treatment Plant Program of the Fiscal Year (FY) 2013 -14 CIB to cover the membership contribution and other related costs. FINANCIAL IMPACTS: The cost for joining the Coalition is $226,572 for the next five years. Staff and other related costs to participate in the Coalition are estimated to be $33,000 for FY 2013 -14. Staff and related costs are estimated to be $190,000 for the future four years. Participation in the Coalition is not included as a project in the FY 2013 -14 CIB. The cost to participate in the coalition exceeds the $100,000 contingency allocation limit for the General Manager. ALTERNATIVES /CONSIDERATIONS: The Board could decide not to participate in the Coalition. The District could conduct its own studies of alternative biosolids technologies. However, participation in the Coalition would be less expensive than the District conducting separate studies alone. C:\ Users \danderson\HppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Bay Area Biosolids to Energy Coalition 10- 03- 013.doc Page 1 of 3 POSITION PAPER Board Meeting Date: October 3, 2013 subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A JOINT EXERCISE OF POWERS AGREEMENT TO BECOME A MEMBER OF THE BAY AREA BIOSOLIDS TO ENERGY COALITION, DISTRICT PROJECT NO. 7312, AND APPROVE A CONTINGENCY ALLOCATION OF $260,000 FROM THE TREATMENT PLANT PROGRAM OF THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET BACKGROUND: The Coalition is made up of 19 wastewater agencies in the San Francisco Bay Area. This group is working to develop alternative biosolids management solutions to maximize energy production and minimize greenhouse gases. The Coalition was formed in 2007 and membership in the Coalition has grown over the past six years. More information about the Coalition is in the attached brochure. The District has followed the activities of the Coalition for a number of years, but has declined to participate in it. The main reason was that staff did not see a benefit in participation as the District is already incinerating its biosolids and recovering the waste heat to produce steam for powering the Treatment Plant. The other wastewater agencies are digesting their biosolids and using the digested solids to make compost, or by land application or landfilling. Staff believes that it is now beneficial for the District to participate in the Coalition. The District is using older multiple hearth incineration technology that may require significant capital expenditures or outright replacement for both regulatory and component lifecycle reasons. Also, the District Wastewater Treatment Facility is a potential choice for a regional biosolids operation because of its location near major transportation routes (truck and rail), and available land. Lastly, a regional biosolids project would act as a both a back -up for handling the District's biosolids should the multiple hearth furnaces become inoperable, or as a secondary process method to diversify the District's solids handling options. The Coalition has received a $1 million grant from the California Energy Commission to evaluate new biosolids to energy technologies over the next few years. Last week, the Coalition broke ground on construction of a demonstration project of a technology to convert biosolids into hydrogen gas, which in turn would be used to produce electricity by means of a fuel cell. The demonstration project is being constructed at Delta Diablo Sanitation District's Wastewater Treatment Facility in Antioch, California by a partnership of Lawrence Livermore National Laboratory and Chemergy. See the attached press release. . The Coalition is governed by a JEPA. The cost for joining the Coalition is $226,572 for the next five years. The amount of the cost is proportional and is based on the District's wastewater flow. Staff costs over the five -year project life are estimated to be $223,000. The total project cost is expected to be approximately $450,000. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Bay Area Biosolids to Energy Coalition 10- 03- 013.doc Page 2 of 3 POSITION PAPER Board Meeting Date: October 3, 2013 Subject-* AUTHORIZE THE GENERAL MANAGER TO EXECUTE A JOINT EXERCISE OF POWERS AGREEMENT TO BECOME A MEMBER OF THE BAY AREA BIOSOLIDS TO ENERGY COALITION, DISTRICT PROJECT NO. 7312, AND APPROVE A CONTINGENCY ALLOCATION OF $260,000 FROM THE TREATMENT PLANT PROGRAM OF THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET Participation in the Coalition is not included as a project in the FY 2013 -14 CIB. The cost to participate in the coalition exceeds the $100,000 contingency allocation limit for the General Manager. A contingency allocation of $260,000 from the CIB Treatment Plant Program is required to fund the project for FY 2013 -14. There are $711,000 in contingency funds authorized for the Treatment Plant Program of the 2013 -14 CIB. If the contingency allocation is approved by the Board, there will be $451,000 remaining in the Treatment Plant Program Contingency Account. An expenditure of $260,000 for this project would increase the total estimated expenditures for the FY 2013 -14 CIB Treatment Plant Program Budget to $10.1 million. COMMITTEE RECOMMENDATIONS: Participation in the Coalition was considered and recommended by the Enterprise Committee on September 9, 2013. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a Joint Exercise of Powers Agreement to become a member in the Bay Area Biosolids to Energy Coalition; and approve a contingency allocation of $260,000 from the Treatment Plant Program of the FY 2013 -14 CIB to cover the membership contribution and other related costs. Attached Supportinq Documents: 1. Bay Area Biosolids to Energy Coalition Brochure 2. Press Release from Lawrence Livermore Laboratory dated September 11, 2013 C:\ Users\ danderson \AppData \Local\Microsoft \Windows \Temporary Internet Files \Content.Outlook\DVCG8C5G \Bay Area Biosolids to Energy Coalition 10- 03- 013.doc Page 3 of 3 ® Class B Ban/Practi l Ban M Restncted Use Reasonable M Urnited 2012 Request for Qualifications Through a Request for Qualifications process, BAKE has identified a range of promising technologies for realizing our resource recovery goals emphasizing energy. The technologies include innovative, ready -to- deploy options as well as emerging options with potential for smaller scale deployment. 132E Technology Demonstrations BAKE secured close to $1 Million through the California Energy Commission's PIER program and is seeking funding through the Department of Energy (DOE). Water Environment Research Foundation (WERF) is under contract to provide independent peer review through a panel of independent industry researchers and specialists. BAKE Advocacy Advocacy for state and federal policy and regulations to incentivize and accelerate 132E technology innovation and deployment. In 2012, BAB2E offered language for the following: • US Senate Clean Energy Act and California Energy Commission's RPS Eligibility Guide- book and Overall Program Guidebook to ensure biosolids are eligible as a renewable. • State AB 1532 to ensure B2E eligibility in allocation of GHG allowance revenue. • US Senate Committee on Appropriations Energy & Water FY 2013 Appropriations Bill to add language directing DOE to include biosolids from wastewater treatment for allocation of renewable energy funding. The energy potential contained in wastewater and biosolids exceeds by ten times the energy used to treat it, and can potentially meet up to 12% of the national electricity demand. That's enough to power New York City, Houston, Dallas and Chicago annually. National Assoclatlon oJClean WaterAgencles (2009) Printed on Recycled Paper BAY AREA Biosolids I°Energy Nineteen San Francisco Bay Area agencies, representing four million residents, have come together to seek a local, sustainable solution to biosolids management. Maximizing a renewable energy resource potential while minimizing GHG Footprint. U.S. treatment plants produce over 7.2 million metric dry tons of Biosolids annually. The Bay Area Biosofids to Energy coalition is committed to creating energy from biosolids utilizing state-of-the- art technology to generate clean and renewable energy resources of value to society and the environment. Today's Biosolids = Tomorrow's Clean Energy Biosolids contain latent energy that can be tapped via combustion of methane gas or a variety of technologies. The conversion process for biosolids involves heating the material to break down the solids and create gases that are converted to energy. Biosofids to energy conversion may utilize a range of processes including pyrolysis, gasification, steam reform, fluidized bed reactor and arc plasma. Biosolids to Energy is the Green Choice With additional capital investment, the United States wastewater industry has the potential to be energy self - sufficient and support the integration of advanced technology to become a net energy producer, helping to meet our nation's goals for renewable energy. Aligned with Environmental Initiatives • Converting Biosolids and green waste to energy • Helping meet California Global Warming Solutions Act (AB32), Renewable Portfolio and Bioenergy Action Plan goals • Decreasing Greenhouse Gases • Significantly reducing truck miles - presently at over 800,000 miles annually • Meet or exceed stringent San Francisco Bay Area air quality standards. BAB2E receives California Energy Commission Grant The BAKE Coalition has received a Public Interest Energy Research (PIER) grant of nearly $11M from the California Energy Commission for a biosolids to energy demonstration project. The PIER mission is to develop, and help bring to market, energy technologies that provide increased environmental benefits, greater system reliability and lower system costs. Through its work, the coalition has identified several promising technologies that could help meet the goal of converting biosolids to high - value, useable energy, including renewable electricity, drop -in fuel, and hydrogen. Demonstrations to show these technologies work with biosolids at a commercial scale are essential to enable their use in our industry. p ®_t � u u t - �� u:.:.M'N Ixl n �..•.w �e ,��Sinta k .a `�� ,.,..,..n /4!j� Water D a� n rF 1. Central Mann 115,000 Noreen Evans -2nd Marc Levine -10th 16 Land Application and Landfill ADC Sanitation Agency Participating Agency I District Ellen Corbett -101h; Bob Wieckowski -25th; los Prq ?;es in Mann County 2. City of Burlingame 36,000 Jerry Hill-138t h Leland Yee -8t Kevin Mullen -22nd 14 Land Application & Landfill 3. City of Livermore 80,270 Mark DeSaulnier -7th Joan Buchanan -16th 23 Land Application and Landfill ADC Mark Stone -29th in Alameda County 4. City of Millbrae 22,000 Jerry Hill -13th Kevin Mullen -22nd 3.4 Land Application and Landfill ADC, Marc Levin -10th Solano, Sacramento &Merced 5. City of Richmond 67,000 Loni Hancock -911h; Nancy Skinner -15th 31 Landfill, Contra Costa Co. 6. City of San Jose and DSRBDl NSNIC Us 7� *4Q�711broe � Richard Gordon -24th; Palo lt *San Jose San Jose/Santa Clara Participating Agency I District Ellen Corbett -101h; Bob Wieckowski -25th; los Prq ?;es \ Water Pollution Control 1,400,000 Jim Beall -15th; Nora Campos -27th 162 Landfill ADC Plant Bill Monning -17th Paul Fong -281h; Mark Stone -29th 7. City of Santa Rosa 230,000 Noreen Evans -2nd Wesley Chesbro-1st; 100 Land Application, Landfill & Marc Levin -10th Compost 8. Delta Diablo Sanitation 190,000 Mark DeSaulnier -7th Jim Frazier -11 1th; 32 Land Application in Solano Co. District Susan Bonilla -14th and Landfill ADC 9. Dublin San Ramon 130000 Mark DeSaulnier -7th Joan Buchanan -16th 31 Dedicated Land Disposal in Services District , Ellen Corbett-10th Alameda County 10. Fairfield- Suisun Sewer District 131,000 Lois Wolk -3rd Jim Frazier -11th 28 Landfill ADC, Solano County use Sanitary Dis trict rict District 34,000 Mark DeSaulnier -7th Jim Frazier -11th 13 Land Application and Landfill 12. North San Mateo 107000 Jerry Hill•13th Kevin Mullen-22nd 7 Land Application in Solano & County Sanitation District , Merced Counties 13. Palo Alto Regional Water Quality Control 230,000 Jerry Hill -13th Richard Gordon -24th 70 Incineration Plant 14. San Francisco Public 756 000 Mark Leno -11 th; Tom Ammiano -11th; 230 Land Application and Landfill ADC Utilities Commission Leland Yee -81h Phil Ting -19th in Solano, Sonoma & Merced Co's 15. Sausalito Merin City Sanitary District 18,000 Mark Leno-3rd Marc Levine -10th 3.4 Landfill ADC in Merin County 16. South Bayside 200,000 Leland Yee -8th; Kevin Mullen -22nd; 14 Landfill, San Joaquin County System Authority Mark Leno -11th Richard Gordon -24th 17. Union Sanitary Bill Quirk -20th; Land Application in Solano and District 330,000 Ellen Corbett -10th Bob Wieckowski -25th 53 Sacramento Co.'s, Compost in Merced Co. & Landfill ADC 18. Vallejo Sanitation and Flood Control District 120,000 Noreen Evans -2nd Lois Wolk -3rd; Susan Bonilla -14th 49 Land A pplication, Sonoma County 19. West County Wastewater District 95,000 Loni Hancock -9th Nancy Skinner -15th 15 Landfill, Contra Costa County Note: If all biosolids in the BAB2E Coalition were to be hauled for land application, it would be the equivalent to 31 trucks per day Bay Area Biosolids to Energy Project Partners 'k 6anta Rosa * FOOD y vSFCD CMSA 7f WCWD D 8 State of V Rictmond I8D California - - - -_ � r� Poelrk Oeeen �Sen Diego What are Biosolids? Biosolids are the end result of all domestic waste which is discharged from homes and commercial establishments after undergoing extensive physical, chemical and biological treatment. Biosolids are carefully monitored and must be used in accordance with regulatory requirements. Who is the BAB2E Coalition? Nineteen San Francisco Bay Area agencies have come together to create the Bay Area Biosolids to Energy Coalition. Operating under a Joint Exercise of Powers Agreement (JEPA), these environmental stewards are dedicated to ensuring clean water supplies and actively working together to address biosolids management issues impacting residents and the environment around the San Francisco Bay Area. ADC = Alternative Daily Cover Project Highlights: 1. Proactively and collaboratively respond to increasing need for new approaches within wastewater industry which reduce risk and maximize resource recovery. 2. Diversity biosolids management options with technologies which can create high - value, useable energy such as renewable electricity, drop -in fuel and hydrogen. 3. Advance knowledge and acceptance of new conver- sion technologies and potential energy products which benefit our communities and protect the environment. The San Francisco Bay Area generates over 158,000 dry metric tons of biosolids each year - enough to fill AT &T ballpark to 51 ft. Rev. 01/08/2013 DSRBDl NSNIC Us 7� *4Q�711broe � . Livermore y un , ingame B8AA yy1 Palo lt *San Jose Participating Agency I District Locations los Prq ?;es \ �Sen Diego What are Biosolids? Biosolids are the end result of all domestic waste which is discharged from homes and commercial establishments after undergoing extensive physical, chemical and biological treatment. Biosolids are carefully monitored and must be used in accordance with regulatory requirements. Who is the BAB2E Coalition? Nineteen San Francisco Bay Area agencies have come together to create the Bay Area Biosolids to Energy Coalition. Operating under a Joint Exercise of Powers Agreement (JEPA), these environmental stewards are dedicated to ensuring clean water supplies and actively working together to address biosolids management issues impacting residents and the environment around the San Francisco Bay Area. ADC = Alternative Daily Cover Project Highlights: 1. Proactively and collaboratively respond to increasing need for new approaches within wastewater industry which reduce risk and maximize resource recovery. 2. Diversity biosolids management options with technologies which can create high - value, useable energy such as renewable electricity, drop -in fuel and hydrogen. 3. Advance knowledge and acceptance of new conver- sion technologies and potential energy products which benefit our communities and protect the environment. The San Francisco Bay Area generates over 158,000 dry metric tons of biosolids each year - enough to fill AT &T ballpark to 51 ft. Rev. 01/08/2013 Attachment 2 ;k, a, , September 11, 2013 Researchers plan to demonstrate bioener2y Researchers from Lawrence Livermore National Laboratory (LLNL) and Florida -based Chemergy Inc. plan to demonstrate an innovative bioenergy technology that converts wastewater treatment plant byproducts into hydrogen gas to produce electricity. The $1.75 million project will demonstrate an integrated system on a limited industrial scale at the Delta Diablo Sanitation District (DDSD) facility in Antioch, Calif. "Our job is to lend our multi - disciplinary expertise in chemistry, engineering and materials science to model and optimize the efficiency of this new technology," said chemist Bob Glass, the LLNL project leader. "We want to use this demonstration project as a model to encourage the widespread use of biosolids for energy production." The demonstration project will be funded jointly by the California Energy Commission and Chemergy, and sponsored by the Bay Area Biosolids to Energy (BAB2E) Coalition. DDSD is spearheading this renewable energy effort for the coalition. According to coalition spokesperson Caroline Quinn, "The Chemergy technology is of interest because of its innovative approach utilizing a chemical process for high - moisture feedstock at moderate temperatures and at smaller scale than traditional conversion technologies. The coalition is specifically focused on combustion -free processes that can maximize the renewable energy potential of biosolids." The demonstration project will start in mid - October and Glass anticipates that in about a year the Antioch wastewater treatment plant will be processing one ton per day of wet biosolids and will be producing up to 30 kW of electricity. The electricity, in turn, will be used to power select functions at the plant. Chemergy uses a patent - pending technology that integrates two established chemical processes. First, thermochemistry is used to produce heat, non - greenhouse gas carbon dioxide and a hydrogen compound from wet biosolids. Secondly, the hydrogen compound is decomposed to produce renewable hydrogen gas. In this demonstration, the hydrogen gas will be used as a fuel and fed into fuel cells provided by CERL and the U.S. Dept. of Energy (DOE) —to generate electricity. It is believed that the technology to be demonstrated by LLNL and Chemergy may convert wet biosolids into hydrogen at less than $2 /kg, making it useful both for stationary power as well as for transportation fuel. As part of the demonstration studies, the scientists will examine the system's performance and efficiency, and the durability of the materials, among other aspects of the technology, Glass said. One reason LLNL researchers are well- suited to work on this project is because of their lengthy involvement in the DOE's hydrogen and fuel cell programs, where scientists have conducted major work on hydrogen production, storage, use and safety, Glass said. "While the project has technological hurdles to overcome, it offers the potential for wastewater treatment agencies to diversify biosolids management options and reduce associated truck transportation costs, fossil fuel use and greenhouse gas generation, while producing clean energy," Glass said.