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HomeMy WebLinkAbout08.a.1) History of Recycled Water ProgramS ' Central Contra Costa Sanitary District August 28, 2014 TO: HONORABLE BOARD OF DIRECTORS VIA: ROGER S. BAILEY, GENERAL MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING FROM: DANEA GEMMELL, ENVIRONMENTAL SERVICES DIVISION MANAGER 051 SUBJECT: HISTORY OF RECYCLED WATER PROGRAM CHRONOLOGY Attached for your review is a chronology of the recycled water program going back to 1969 with the enactment of the Porter - Cologne Act. A fifteen minute presentation is planned at the September 4, 2014 Board meeting to highlight the key points of this eleven page document. Staff has reviewed many archived records and reports in preparing the chronology and has indicated a reference in support of each entry. If you desire to review the original document or excerpt of the larger report, we have provided this in a supplementary electronic file that has been bookmarked for easy reference. N: \ENVRSEC \Position Papers \Gemmell\2014 \9 -4 -14 \Memo - History of ReW Program Chronology 9- 4- 14.docx History of Central Contra Costa Sanitary District's Recycled Water Program 1969 The Porter- Cologne Water Quality Control Act was adopted into law by the California Legislature with an effective date of January 1, 1970. The Act is recognized as one of the nation's strongest pieces of anti - pollution legislation, and was so influential that Congressional authors used sections of the Act as the basis for the Federal Clean Water Act. 12/3/69 CCCSD and CCWD execute a Memorandum of Understanding to "carry out and coordinate a "tentative program" for (1) CCWD feasibility study on wastewater renovation; (2) CCCSD feasibility study on treatment plant sludge disposal; (3) sampling and analysis of CCWD water supplies and CCCSD wastewaters; (4) CCCSD pilot program to investigate wastewater renovation processes; (5) demonstration program on beneficial uses of renovated waters; and (6) implementation of municipal refuse and sludge disposal, wastewater renovation and water pollution control. Financing and quality and quantity standards are left to "future negotiation." (REF 2) 1970 CCCSD commission Brown and Caldwell to design expansion of wastewater treatment plant. (REF 2) 5/28/70 State Water Resources Control Board (SWRCB) prescribes water discharge requirements for CCCSD and states that restriction on "nutrients" in discharged waters will be "prescribed at the earliest practicable date." (REF 2) 1971 SWRCB rejects a report for expanding the treatment plant because water reuse was not included. (REF 1) 6/17/71 SWRCB adopts Interim Water Quality Control Plan for San Francisco Bay basin. (REF 2) 10/22/71 At a meeting with CCCSD and CCWD representatives, officials of Division of Water Quality Control, State Water Resources Control Board (DWQC- SWRCB) urge early implementation of wastewater reclamation program for industrial uses. (REF 2) 10/28/71 Order No. 71 -72 of Regional Water Quality Control Board prescribes discharge requirements for CCCSD which bar discharge of "conservative toxic or biostimulatory substances" after June 1, 1976. (REF 2) 10128171 A bill titled `An Act to amend the Federal Water Pollution Control Act: (Clean Water Act)" is introduced to the Senate by Edmund Muskie. 11/10/71 Letter to CCCSD from John Olaf Nelson (DWQC- SWRCB) suggests that CCWD - CCCSD contract should be executed by May 1, 1982, to allow Page 1 of 11 CCCSD to qualify for "clean water grant" funds within fiscal year. Nelson adds "Expenditure of clean water grant funds for treatment works necessary to reclaim the sanitary waste flow to a level suitable for reuse is entirely consistent with announced state policy." (REF 2) 4/26/72 John Nelson (DWQC - SWRCB) advises CCCSD Board that by June 1976, discharge requirements for CCCSD will bar discharge of toxic or biostimulatory substances. Nelson and consultants from Brown & Caldwell and Bechtel agree that filtration and denitrification will be necessary to meet such discharge requirements. CCCSD Board authorizes execution of Reclaimed Water Supply Contract with CCWD. (REF 2) 4/27/72 CCCSD and CCWD execute "Reclaimed Water Supply Contract" which requires CCCSD to make "best efforts" to construct water reclamation facilities by July 1, 1975. Terms include pricing, water quality standards and the wholesaling of CCCSD's tertiary- treated wastewater effluent (30 MGD maximum) to CCWD, which would then retail that water to the two nearby oil refineries. (REF 3) 4/27/72 Letter to CCCSD from Paul Bonderson (DWQC - SWRCB) confirms that "even in the absence of reclamation, filtration is definitely required to meet 1976 waste discharge requirements contained in the existing order." 5/18/72 At the request of SWRCB for justification of the need for nitrogen removal to satisfy water pollution requirements, Brown & Caldwell provides study entitled "Nutrient Control in North San Francisco Bay" authored by R.C. Bain and L.N. Hoag of B &C. In Letter to CCCSD, D.H. Caldwell concludes "Studies have indicated that nitrogen is the major nutrient which limits algal growth in Suisun Bay ... The removal of nitrogen in the treated effluent discharged to Suisun Bay will allow the discharge prohibition on biostimulatory substances [of Order 71 -72] to be met." (REF 2) 6/13/72 CCCSD applies for state and federal grant to enlarge existing wastewater treatment plant to 45 MGD primary treatment and provide 30 MGD advanced treatment, commonly referred to as the Stage 5A project, at estimated cost of $42.8M. SWRCB requires construction of project into two phase, Phase I (Wastewater Treatment and Reclamation) and Phase II (Filtration Facility). (REF 2) 6/15/72 Letter to Gary Horstkotte (CCCSD) from Nelson states that Grant Application included "only facilities needed to meet wastewater discharge requirements ... Those portions of the project necessary for reclamation aspects will be certified for a grant just as soon as long awaited Page 2 of 11 amendments to the Federal Water Quality Control Act are enacted." (REF 2) 10/5/72 CCCSD enters into contract with SWRCB for a 78.5 percent grant of all federally eligible costs on 5A Phase 1 project. (REF 5) 10117172 Clean Water Act vetoed by President Nixon. Senate votes to override veto. 10118172 House votes to override veto and Clean Water Act becomes law. 12/29/72 CCCSD enters into contract with EPA for a 78.5 percent grant of all federally eligible costs on 5A Phase 1 ($54.7M cost estimate). Subsequent amendments to grant bring the final total to $61.8M. (REF 5) 8/21/73 CCCSD issues Notice to Proceed to Peterson - Simpson (P /S) on 5A -I project with bid of $47,648,000. (REF 2) 6/27/74 CCCSD enters into contract with EPA for a 78.5 percent grant of all federally eligible costs on 5A Phase 2 ($15M cost estimate) projects. Subsequent amendments to grant bring the final total to $16.6M. (REF 5) 9/17/74 Order No. 74 -95 of SWRCB set new National Pollutant Discharge Elimination System (NPDES) standards for CCCSD which are much lower than standards set by Order No. 71 -72 and do not require removal of bio stimulants (i.e. nitrogen and phosphorus). (REF 2 and 4) 11/18/74 CCCSD awards contract for 5A -II Project to Fred J. Early Company. (REF 2) 2/6/75 Letter from Fred Dierker ( SWRCB) which notes that "denitrification of your discharge should not be necessary at this time" because the Tentative Water Quality Control Plan for the San Francisco Bay Basin indicates that "algal productivity in the northern extremity of San Francisco Bay" is already limited by "turbidity." Dierker adds "Since, however serious concern exists that reduced Delta overflows may result in decreased turbidity levels which in turn may make nitrogen concentrations the governing factor, I urge the District to make provisions for the installation of facilities which would provide capability for removal of nitrogen from its effluent whenever such removal becomes necessary ... I hope the above will provide the planning guidance which you requested." (REF 2) 4/9/76 CCCSD Negotiation Committee confirms decision to lease site to CCWD for construction of a sodium ion exchange water softening facility (NaX Plant) with associated storage tanks, distribution mains, valves and appurtenances to transport and distribute reclaimed water to the refineries. CCWD spends in excess of $6M on facility. (REF 2 and 10) Page 3 of 11 4/1977 Fred J. Early Company, general contractor for 5A -II project files suit against CCCSD for $2.7M. (REF 2) 9/8/77 CCWD accepts reclamation facilities, including Filter Plant, associated structures (Forebays, Clearwell, Utility Pumps and Industrial Pipelines) and ancillary equipment. See attachment 1 for map. (REF 2 and 6) 11/1977 Startup of secondary treatment processes at 5A -I plant. (REF 2) 9/1/78 P/S files suit against CCCSD for additional costs, delay and disruption of construction work. (REF 2) 11/16/78 CCCSD files cross complaint against P/S for $20.08M. (REF 2) 2/1979 A report titled "Economic Evaluation of Wastewater Reclamation at the Central Contra Costa Wastewater Reclamation Facility" notes that "Based on the lower discharge standards now in force, the District is incurring costs for wastewater treatment solely to meet the industrial reuse requirement .... At this time the CCCSD is subsidizing treatment cost to provide water for industrial reuse." The report estimates that "all wastewater received at the plant must be treated to the "higher, reuse level in order that 20 MGD (about 50 to 65 percent based on average flows of 30 to 44 MGD) of the water can be reused for industrial cooling." "The requirement to remove phosphorous was estimated to cost CCCSD approximately $2.8 million more annually (in 1976 dollars) than to meet NPDES conditions." (REF 8 and 29) 3/14/79 CCCSD discharges P/S as contractor for 5A -I project. (REF 2) Late 1970s CCCSD operates Filter Plant (5A -11 project) at (<1 MGD) for use by treatment plant and for small number of industrial customers on or near District property, adjacent to the treatment plant, which were referred to as the "hotel users." (REF 7) 1/16/80 Letter to CCWD from Nels Carlson (Board President) confirms agreement to enter into joint studies to prepare for renegotiation of the final price for reclaimed water "to equitably adjust the net costs so that the Sanitary District is not paying for costs of treatment above what is required for water pollution control." (REF 2) 11/81 Fred J. Early Co. v. CCCSD is settled by CCCSD paying $650,000 plus the $1 M contract retention. (REF 2) 4/20/84 CCWD files a lawsuit against CCCSD to recover their expenses for their NaX facilities (sodium ion exchange water softening facility, storage tanks, mains, valves, and appurtenances) constructed in anticipation of retailing CCCSD's tertiary- treated wastewater to the refineries. (REF 10) Page 4 of 11 12/12/85 CCCSD signed a settlement agreement with the US EPA and the SWRCB for the 5A1 and 5A11 project, due to significant difficulties during construction which increased Project cost, increased operational expenses and extensive litigation. After a significant review by EPA and SWRCB, conclusions included: • That the project was the "first major projects to proceed to construction after passage [of Clean Water Act] "; • Due to change I permit requirements ... the project has been converted from advanced treatment to biological secondary treatment "; • "CCCSD was strongly encouraged by EPA and SWRCB to develop and construct a proiect which would provide reclaimed water for reuse and recycling... the decision ... was reasonable at the time such decision was made.;" • "Phase I difficulties and attendant costs were occasioned by circumstances and beyond the reasonable control of and without fault on the part of CCCSD;" • All costs were deemed reasonable, necessary and eligible for reimbursement and within 60 days of the agreement final payment would be issued. For 5A -1 project, EPA/SWRCB paid $54,215,594 with the District share of $11,481,037 for a total $65,696,361 on wastewater expansion. For 5A -11 proiect, EPA/SWRCB paid $14,396,186 with the District share of $3,182,238 for a arand total $17.578.426 on the filter Ip ant. As a condition of the settlement, due to the "major underutilization of the Phase II facilities, CCCSD agreed to: 1. "Maintain in operable condition all Phase II facilities until January 1, 2000; 2. Continue to study and promote the cost - effective use of reclaimed water within its service area; 3. Within two years after the date of full execution of the settlement agreement, develop and submit a program to the reasonable satisfaction of EPA and SWRCB for additional utilization of Phase II facilities. The goal of the program to be developed will be the eventual, full, cost effective utilization of Phase II facilities." (REF 5 and 6) Page 5 of 11 6/30/86 CCCSD receive $10.6 million in reimbursement for Capital Grants from EPA. (REF 27) 9/26/1986 Board approves agreement with CCWD and $88,566 in funds to conduct a joint study toward implementing a practical joint water reclamation project. According to the position paper, the "study will satisfy the grant termination conditions for the Stage 5A project." The scope includes defining water quality criteria, identifying markets for reclaimed water and investigating funding sources. (REF 23) 8/15/88 Reclaimed water is delivered as part of a demonstration project to cooling towers at Shell and Tosco for six and seven months. The total delivered is in excess of 100 million gallons. 9/16/91 Presentation to CCCSD Board on Industrial Recycling Efforts in Response to Drought notes that since July 1991, CCCSD was providing approximately 40 million gallons per month to Shell and Tosco. Reclaiming water was costing the refineries $1,000 per day or $525 per acre -foot. (REF 28) Early 1990s CCCSD's response to the requirements in the grant settlement agreement was to investigate how to maximize the beneficial use of the grant- funded reclamation facilities to produce recycled water for industrial and irrigation customers. Since the Refinery Project didn't move forward and CCCSD could not purvey recycled water without agreement from the appropriate water retailers (namely CCWD and EBMUD), the following projects were investigated for implementation: • Zone 1 Project in CCWD's Service Area • Lamorinda Project in EBMUD's Service Area (REF 31) 3/1993 Construction of the recycled water distribution pipeline began in the early 1990s as a part of Pleasant Hill Relief Interceptor Projects to take advantage of cost savings due to common trench construction. (REF 12) 6/10/93 At Public Comment Period for Draft FY 1993 -94 Capital Improvement Budget, Mr. Parke Boneysteele, resident and former Member of the Board of Directors (Terms: November 1967- January 1992 and December 1994 - November 2006), stated "the District is now coming to a point where it appears that water reclamation will be economically feasible not only because of the increased cost of water but the fact that water may not be available at all. Mr. Boneysteele urged the Board to remember that the District has a commitment to proceed with water reclamation, and ...urged that funding be provided for the water reclamation projects that are Page 6 of 11 necessary to fulfill that commitment. By eliminating that funding the District will have violated a fundamental commitment. Mr. Boneysteele stated that this is not just an economic issue, it is a moral issue. The District has agreements with the federal and state governments. The District should take no action that would prevent reclaiming water in the future." (REF 28) 6/30/93 The breach of contract lawsuit filed by CCWD, in April of 1984, was dismissed by the Superior Court of California, County of Contra Costa. (REF 17) 5/25/94 CCCSD buys about 83,000 feet of the abandoned Shell Pipeline (in Lamorinda area) for $1 with the intention of converting to recycled water pipeline and transferring it to EBMUD in the future. (REF 20) 11/2/94 CCCSD signs General Agreement for Recycled Water with CCWD. The purpose of this agreement was to "facilitate development of recycled water projects by either District" and it set forth the terms and conditions under which recycled water could be purveyed to customers within CCWD's service area. This agreement also terminated the Reclaimed Water Supply Contract that was originally signed in 1972. (REF 17) 1/31/95 CCCSD and EBMUD execute a "Water Recycling Planning Agreement" to explore the possibility using the abandoned Shell pipeline to distribute CCCSD's recycled water to the Lamorinda area. After CCCSD spent $447,000 to study the project, prepare cost estimates, and staff time for putting the abandoned pipeline into service, EBMUD determined that it was not a cost - effective project, so the effort was discontinued. (REF 13 and 14) 8/1995 In order to produce and deliver unrestricted tertiary recycled water that complied with Title 22, California's Code of Regulations for the production of recycled water, CCCSD spent $4.1 M on DP 7162 to modify the existing Filter Plant and Clearwell and construct approximately 4,350 feet of 24- inch recycled water distribution pipeline. Other improvements added include pumps, motors, valves, pipes variable frequency drives, controls, electrical equipment, hypochlorite system and an alum polymer system. As a result of this project, the rated capacity of the Filter Plant dropped from 30 MGD to 3.8 MGD. (REF 11 and 22) 11/22/95 CCCSD and CCWD sign the Project- Specific Agreement for Zone 1 and set a geographical boundary to where CCCSD had rights to purvey recycled water and established normal and dry year recycling limits of 1162 AF and 1626 AF, respectively. See attachment 2 for map. (REF 16) Page 7 of 11 3/12/98 CCCSD receives a low- interest state revolving fund (SRF) loan for $2.9 million, with a 20 -year repayment schedule, to construct the backbone recycled water distribution pipeline from the pumps downstream of the Clearwell south to Boyd Road in Pleasant Hill as a part of Zone 1. (REF 15 and REF 19) 5/14/98 Project is completed to install 5,500 feet of distribution pipeline and connect the first recycled water customers, beyond the "hotel users" on CCCSD buffer property, in Zone 1. Customers included Diablo Valley College, Contra Costa Country Club Golf Course, Buchanan Fields Golf Course, Chilpancingo Park, Pleasant Hill Corporation Yard, Frank Salfingere Park and the Pleasant Hill Community Center. (REF 21) 12/19/99 CCCSD purchased the remains of CCWD's NaX Plant (sodium ion exchange water softening facility) for $5,000. (REF 24) 8/18/2000 A Recycled Water Master Plan is completed by RMC. The Master Plan listed potential projects and associated costs to recycle 70% of the District's secondary effluent. Guiding principles identified include: • "Comply with the terms of the Clean Water Program Grant Termination Agreement wherein CCCSD agreed to actively continue to pursue recycled water projects; • Maximize the beneficial use of Clean Water Program Grant Funded Reclamation Facilities to produce recycled water for industrial and irrigation customers; • Recover operating and maintenance costs ... on an ongoing basis through the sale of recycled water; • Recover capital costs for new recycled water facilities over a 30 -year period with interest through the sale of recycled water; • Coordinate and cooperate with local, state and federal water agencies to provide recycled water as a safe, environmentally, beneficial, reliable and cost effective alternative water supply. (REF 25) 9/2004 Recycled Water Needs Assessment 10 -Year Plan identifies an expansion scenario to establish boundaries for the assessment to add customers to build out Zone 1 from 1.5 MGD to 2.8 MGD over the next ten years. The expenditure plan is proposed as "$400,000 per year over the next 10 years. This is just enough budget to connect remaining future Zone 1 customers... Total water demand will grow to about 3.8 MGD including treatment plant demands at 1 MGD." (REF 26) Page 8 of 11 9/6/05 Letter from EBMUD confirms they have no intention of moving forward with the Lamorinda Recycled Water Project and that they are not interested in acquiring the Shell Pipeline from CCCSD as was originally planned. (REF 9) 3/19/09 Board votes to terminate General Agreement with CCWD. While it was very helpful initially in establishing the Zone 1 Agreement, the agreement was found to not be conducive to development of a large scale industrial reuse project. (REF 18) 9/2011 CCCSD was awarded $1.03M to construct the Concord Landscape Project (DP 7299). (REF 30) 4/23/13 A construction contract was awarded to Platinum Pipelines for $2.15M to install about 2.3 miles of new distribution pipelines for the Concord Landscape Project, with the potential to connect up to 36 additional customers. Construction was completed in late Fall 2013. The system has been charged, but has not connected any of the customer demand, aside from making available a recycled water hydrant that was installed as part of the project. (REF 32) Current Currently, at peak demand, a total of 35 Zone 1 customers use <1.5 MGD of recycled water and the Treatment Plant uses 1.1 MGD of recycled water, leaving approximately 1.2 MGD of available capacity. (2013 Recycled Water Annual Report) Page 9 of 11 Attachment 1 Refinery Recycled Water Project Infrastructure IWO PIP �;-• -- � -µ%Vi • t� j Legend �■ CCWD Pipelines and Tanks CCCSD Pipelines Page 10 of 11 Tesoro Refinery CCCSD Treatment Plant Attachment 2 Zone 1 Project Area Map � ZONE 1 RECYCLED WATER PROJECT _- �.ENTRAL CONTRA COSTA SAN[TARY,DISTRICT WWTP 413TINEZ Jgp4 I ¢ �r �Fa _S CENTER AVr VIKTNG PLEASANT HILL '° 1 m • 1 Kau, iV sava RD am paR GEAR" p.'�,� —,--. R41� 24 Page 11 of 11 t4 � l F i CONCORD i I � , WALNUT ccw�, CREEK LEC M: —•-- CMD -Mrtlnu wear CM im MAV) bmrMwy Ina ��• Zane 1 boudw Ts wwww M" 1 Vii'+ TrwwWslon Mah 01wra ar