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HomeMy WebLinkAbout03. Draft PP re JEPA for BAB2E Coalition and Supplementary Authorization of $260,000t Central Contra Costa Sanitary District 3-b ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 1, 2014 Subject: 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 SUPPLEMENTARY AUTHORIZATION OF $260,000 TO THE FISCAL YEAR 2013 -14 OPERATIONS AND MAINTENANCE BUDGET TO COVER THE MEMBERSHIP CONTRIBUTION AND OTHER RELATED COSTS Submitted By: Initiating Dept. /Div.: Randy Schmidt Operations Department Senior Engineer 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 also required to approve a supplemental authorization of funds to the Operations and Maintenance (O &M) Budget over $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 supplemental authorization of $260,000 to the Fiscal Year (FY) 2013 -14 O &M Budget to cover the membership contribution and other related costs. FINANCIAL IMPACTS: The cost to join the Coalition is approximately $230,000 for a five -year commitment. Staff and other related costs to participate in the Coalition are estimated to be $30,000 for FY 2013 -14 and $50,000 per year over the future four years. Participation in the Coalition is not included FY 2013 -14 Operations and Maintenance Budget. The cost to participate in the coalition exceeds the $100,000 signature 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. Page 1 of 3 i POSITION PAPER Board Meeting Date: May 1 2014 subject: 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 SUPPLEMENTARY AUTHORIZATION OF $260,000 TO THE FY 2013 -14 OPERATIONS AND MAINTENANCE BUDGET TO COVER THE MEMBERSHIP CONTRIBUTION AND OTHER RELATED COSTS 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 (Attachment 1). 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's 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 (Attachment 2). The Coalition is governed by a JEPA. The cost for joining the Coalition is $230,000 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 $230,000. The total project cost is expected to be approximately $460,000. Page 2 of 3 t POSITION PAPER Board Meeting Date: May 1, 2014 Participation in the Coalition is not included in the FY 2013 -14 O &M Budget. The cost to participate in the coalition exceeds the $100,000 limit for the General Manager. A supplemental authorization of $260,000 from the O &M Fund is required to fund this effort for FY 2013 -14. 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 of the Bay Area Biosolids to Energy Coalition; and approve a supplementary authorization of $260,000 to the FY 2013 -14 Operations and Maintenance Budget to cover the membership contribution and other related costs. Attached Supporting Documents: 1. Bay Area Biosolids to Energy Coalition Brochure 2. Press Release from Coalition dated November, 2013 Page 3 of 3 ATTACHMENT 1 . . . . . . . . . . BAYAREA AS2S noelves California Enorgy Commissi rent The BAB215 Coalition has received a Pubil nte ftsohds NMI I anW: help bring to market, energy technologies, that provide Increased environmental beneft,, greater system reliability and lower costs. The 'OEnery Coalition project will demonstrate the effic."'y 0 • x " Aeot rat a' ie m 0 process high-molsture feedstock at a gy temperatures and at smaller scale than tradonal S conversion technologies and Is being done In AS2S noelves California Enorgy Commissi rent The BAB215 Coalition has received a Pubil nte NMI anW: help bring to market, energy technologies, that provide Increased environmental beneft,, greater system reliability and lower costs. The Coalition project will demonstrate the effic."'y 0 • x " Aeot rat a' ie m 0 process high-molsture feedstock at a temperatures and at smaller scale than tradonal conversion technologies and Is being done In !partnership with Lawrence Livermore National Laboratory and a private company. Chernergy Inc. ° I. Darin 115, Noreen Evans -2nd Marc e-1 16 Land Appllaatlon ad ' ' San in Mann County 2, City of Burlingame 36, 000 Jerry HIli -1 ' Y Kevin Mutien« 14 Land Application Lem, . . 1 City Livermore , Ma* De$auinre 7 Jo chana r -1 23 Land ° Ia# and � In il'(%u Ala 4< i J Hi-1 Mullen-22W 3.4 Land A , Sacramento & ,.,. 5. City of talc nd` 67,000 Lon! Hancock-ft; Nancy k€n •15th 31 La' ft R City of Jose and C 1 Richard Gordan -24th; dtwaki -25ih, ' , San JoselSanta Clara Water Pollution Control 1 Jim 1 , Mora Campos-27th 162 .: Landfill ADO Plant B nni 1 Paul Fong-20; ' Mark Ston 1,e V W,.. = :"A 70 Wesley Chesbro -1st, Lid 1 � � t AM Marc teve -111 8. Deb Diablo n Jim Frazier -11th, Lard Ap 190, Mark D ulnler Susan Bonilla -14th 32Dis , � am, L#"' 9, Dublin n n Mark DeSauln -7th i3 Sa ' Dist 130,000 , Ellen C tt -10th n Buchanan -1 31 $µ 0 el , 10. FaIrfleld-Sulsun Sewer District 131,000 Lois Walk -3rd Jim F er =11th 26 Landfill � °' 9 �''�'� �^ � ,Ti°k 11, fronho ur Snitdry� Mark t)eSaunlr- 7th ' Jirn Frazieral lth 13 ; r Laid A oCr +did DisOt, „ s 12. North San Mateo 107,000 Merry hill -13th Kevin Mullen -22nd 7 Land Application In Bola County San�tk Merced Cantles a 4 13k,Paio Alto Regional r. tl Water Quality Contra 230,000 Jerry HIII-13th Richard Gordon-24th 70 Incineration plant M 14, San Francisco Public 756 Mark Leno-11 th; Tom Ammiano -11 th; 230 Land Appl at�r and Landfill ADC' bid Commission ,OOQ Leland Yee -8th Phil Ting-19th in Soar, Son" & Memed Wa ,,.. 18 Sausalito Merin City Sanitary District 18,000 Noreen Evans -2nd Marc Levine -10th 3.4 Landfill ADC In Madn County 16, South Bayside Q0 2,0<� Leland Yee -8th; Kevin Mullen -22nd; 14 LandflN, San Joaquin County System Authority Mark Leno -11th Richard Gordon -24th 17. Union Sanitary Bbl Quirk -2 Land Application In .Solana and District 330,000 Ern Cdubeit -10th Bob Wieckowskl°25th 53 Sacramento Co.'s, Carnet In Merced Co. & Landfill ADC 18. Vallejo Sanitation -120 �0 Noreen Evans -2nd Susan BarDla -14th 48 Land Application, Sonora County and Flood Control District Lois Wolk -3rd; 19. West County Wastewater 01s#rict 95,000 Loni Hancock -9th Mandy Skinner-15th 15 Landfill, Contra Costa County � .,. WE Note: If all blosollds In the BAB2E Coalition were to be hauled for land application, it would be the equivalent to 31 trucks per day. 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 blosolids management issues impacting residents and the environment around the Sant Francisco Bay Area. ADC = Alternative Daily Cover Rev. 12/10/2013 2013 Request for Proposals BAB2E Advocacy Two Request for Proposals were received in October Advocacy for state and federal funding, policy 2013 offening B2E pmjects which could be installed and regulations to incentivize and accelerate 132E within one, or more, of the 19 member Coalition technology innovation and deployment continued facilities. Each proposal presented innovative in 20i3: emerging technologies that could repurpose blosolids and benefit our environment. Interviews were * Federal: Senate and House Energy and undertaken November 2013 and both proposals are Water Committee Appropriations bill now under review by the Coalition. language directing/encouraging the inclusion of blosollds within the definition of B2E Technology Demonstrations anoncellulosle feedstock for the purposes of BAB2E secured close to $1 Million through the allocating resources. California Energy Commission's PIER program and is e State: Advocating for allocation • funds seeking funding through the Department of Energy under the state Alternative Renewable Fuel (DOE). Water Environment Research Foundation and Vehicle Technology Program and for (WERF) is under contract to provide Independent Vrft YrftAnk or�"�-"Aa Printed on Recycled Paper A -a--a- w i+a aewra.er BAY ARFA Bay Area 810solids-to-Energy Project J��!�1sofids 2 November ,2013 www.ba' areabiosolids.com Formed in 2007, the Bay Area Biosollds to Energy Coalition ISA82E) is comprised of nineteen agencies representing a population of over four million people. BAB2E is developing biosolids to energy approaches to diversify biosolids management options which include alternatives that will not be dependent on agricultural use of biosolids or the need to send biosolids to landfills. The project goals are to maximize renewable energy and resource potential in biosolids, and minimize greenhouse gas emissions. The Coalition is actively exploring the next generation of technologies that utilize non - combustive conversion processes to produce alternative vehicle fuels and clean energy. Three projects are being planned to demonstrate the effectiveness of emerging technologies to maximize the value of biosolids as a renewable energy /fuel feedstock The BA82E Coalition is working with Lawrence Livermore National Laboratory and Chemergy Inc. on a project to demonstrate the efficacy of a converting blosolids to energy utilizing an electrochemical conversion process. Chemergy inc. is a private company whose technology is of interest due to its unique, innovative approach designed to process high - moisture feedstock at moderate temperatures and at smaller scale than traditional conversion technologies. Lawrence Livermore will provide multi - disciplinary expertise in chemistry, engineering, and materials science to model and optimize the efficiency of this new technology. The $1.75 million project is jointly funded by the California Energy Commission and Chemergy Inc. The City of San Jose, In <partnership with Harvest Power was awarded a $1.9 million grant from the California Energy Commission to study the technical, economic, and permitting feasibility of the German based Agnion Energy gasification technology, for converting wood waste and blosolids into a syngas appropriate for use as a vehicle fuel. Through the feasibility study analysis, completed with HDR Engineering and URS Corporation, Agnion determined that demonstration was not feasible with their current business model. While Harvest Power has decided not to continue with the project, San Jose staff has already short listed other vendors to complete the demonstration phase of the project. South Bayside System Authority is working with BioForceTech to demonstrate a biological drying system that utilizes an insulated reactor, in which air is injected and biological organisms are maintained to optimize the respiration and remove the water vapor. With the proper balance, no external or additional heat is expected to be required for the drying. A second stage, pyrolysis conversion, is now getting underway.