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Home My WebLink About12.c.1) CWMP Workshop-Consider new Board policy on energy12.c.1) COMPREHENSIVE WASTEWATER MASTER PLAN UPDATE Board Workshop Part C1 Consider New Board Policy on Energy June 16, 2016 AGD PART C1 CONSIDER A NEW BOARD POLICY ON ENERGY 6/20/2016 1 WORKSHOP OUTLINE A. Treatment Plant (TP) Master Plan Status Update • Master Plan Drivers & Goals • Treatment Plant of the Future • Key Findings and Preliminary Recommendations • Preliminary Updated CIP Costs — TP Only • Next Steps B. Brief Status Update on Collection System Master Plan • Collection System Model Update • Introduction to Sewer Replacement Program using InfoMaster ipyt Stpnc C. New Board Policies Discussions and Considerations 1: Consider an Energy Policy • 2: Consider a Privat( ier Laterals Policy CWMP GOALS AND LOS C1NMP Levels of Service (LOS) Goals Strive to meet regulatory requirements 'Always work to comply with local, state and federal regulatory requirements. A 1.Critical facilities will be on-line within prescri bed targets after catastrophic events (e.g., udden failures, earthquakes, floods,fire, acts of terrorism, etc.). Iwork to improve sanitary sewer ovedlow(SSO) occurrence rate of no more than 3.5 SSOs per 100 miles per year. Be a fiscally sound and effective water sector utility Develop a cost effective program to maximize recycle water in coordination with water agencies. The program must have a benefiticosts ratio of at least one or greater within 15 years. L Developa program that maximizes energy efficiency and self-sufficiencythat has a benefitfcosts ratio of at least one or greater within 5 years. Develop long-term resource recovery projects that have a benefit/costs ratio of at least one or greater within 5 years. Provide exceptional customer se ry ice 'LimitOdors to within the fence line of the treatment plantfacility. 'Provide recycledwater (e.g., resident alfill stations andcomrnerci al hydrants) alignedwith service area customers' demands. evelopa process for assessingcustornersatisfaction, expectationsforDistrictservices, and desire for general information. Develop a public education outreach program that provides pollution prevention education and is n11..1.666101-1 inn niicfnmar'c rdacira fnr nanaral infnrmatinn Projects should reduce adverse impacts on the publicandthe environmentthrough sustainable practices that minirrd¢e waste, maximize resource recovery, and embrace innovation. Respondto emergency calls in less than 20 minutes during Districtworking hours endless than40 minutes during non -working hours. 3 6/20/2016 2 THE CWMP ADDRESSES FOUR MAJOR CAPITAL IMPROVEMENT DRIVERS t Drivers Descriptions 1 2 3 4 Aging Infrastruc Capacity ReguI ■ Sustainability Maintain performance and reliability of existing assets to ensure reliable collection and treatment of wastewater Increase capacity of existing facilities to accommodate planned growth for the communities we serve esign s o pro uman ea an s e nr,lir ro-In on+ R. DInn f,- - nn+ii-inn+o„1 firh roe -r, 11-n+l,r,i Minimize life -cycle costs, maximize benefits, and achieve economic stability through optimization, resiliency, resource recovery, and energy projects NET ZERO ENERGY • What Does Our Current Energy Profile Look Like? • What is Net Zero Energy? • Can We Get There? • Options to Reach Net Zero Energy 6/20/2016 3 CURRENT TREATMENT PLANT ENERGY PROFILE CCCSD ENERGY SOURCES PROFILE MM BTU/Day Natural gas 5341 CCCSO STEAM GENERATION PROFILE MMBTU/Day sada, Biala!, CCCSD ELECTRIC PROFILE PG3E Cagenenlien 95% KW ENERGY EVALUATIONS ASSUMPTIONS Projected future energy demand based on meeting level 2 nutrient removal using alternative L2 (MLE + MBR). 5 MGD and 15 MGD Recycled Water based on using MBR, RO, and UV. Converting steam system to electrical system. Electric power generated using an ORC fueled by waste heat (solids) and LFG. Future use of natural gas to make electricity using a new gas turbine. 6/20/2016 4 RANGE OF ENERGY PROFILES EVALUATED CURRENT (MHF) Conversion efficiency — 5% BASELINE AND ALTERNATIVE 51 (MHF/FBI) Conversion efficiency — 8-9% ALTERNATIVE S2 (AD + FBI) Conversion efficiency — 17% ALTERNATIVE S3 (THP AD) Conversion efficiency — 20% Energy Produced By Source (MMBTU/day) 2,500 2,000 1,500 1,000 500 0 Solids Solids Waste Heat + Biogas CURRENT ENERGY PROFILE PG&E NG SOLIDS CCCSD ENERGY SOURCES PROFILE land011gac ]3% Electricity Electricity MMBTU/Day 6/20/2016 5 COMPARISON OF SOLIDS ALTERNATIVES BY ENERGY SOURCE 2,500 t0 2,000 0 1,500 lA } Di c 1,000 } 500 0 PG&E NG LFG SOLIDS NG NG NG LFG LFG LFG SOLIDS SOLIDS SOLIDS Current Baseline Alt 51 Alt S2 Alt S3 (MHFs) (FBIs) (AD/FBI) (AD) Electricity Produced By Source (kW) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 CURRENT ELECTRICAL PROFILE feat' NG Current CCCSD ELECTRIC PROFILE „ext_ 6/20/2016 6 ELECTRICAL PRODUCTION BY SOLIDS ALTERNATIVES TO MEET DEMAND Electricity Produced By Source )kW) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 PG&E NG o0a yuV f � W 3 Current Projected SOLIDS Baseline Alt 51 Alt S2 (MHFs) (FBIs) (AD/FBI) NET ZERO ENERGY Alt S3 (AD) DEFINITION AND STRATEGY 6/20/2016 7 WHAT IS NET ZERO ENERGY? • Terminology • Grid Independence • Energy Neutrality • Energy Independence • Net Zero Energy DEFINITION OF NET ZERO ENERGY Definitions In addition co establishing a definition for ZEB, shown below, it was dear that definitions were needed to accommodate the collections of buildings inhere renewable energy resources were shared To meet this need. the team provided variations on the ZEB definition. The bold text represents key terns than are further addressed in the nomenclature and guidelines. Zero Energy Building (ZEB) An energy-efficient building where. on a source energy basis. the actual annual delivered energy is less than or equal to the on -size renewable exported energy. Zero Energy Campus An energy-efficient campus where. on a source energy basis, the actual annual delivered energy is less than or equal to the on-site renewable exported energy. Zero Energy Portfolio An energy-efficient portfolio where. on a source energy basis. the actual annual delivered energy is less than or equal to the on-site renewable exported energy. Zero Energy Community An energy-efficient community where. on a source energy basis. the actual annual delivered energy is Iess than or equal lo the on-site renessable exported energy. Source US Department of Energy 6/20/2016 8 NET ZERO ENERGY DEFINITION FOR CCCSD A net zero energy Plant of the Future for CCCSD would use enough renewable energy to meet its own annual energy consumption requirements. Master Plan Team Suggestion: • No Imported Fossil Fuels— Natural Gas (NG) • Independence from Electricity Grid (Annual Average Basis) STRATEGIES To ACHIEVE NET ZERO ENERGY Energy Efficiency Improvements (VFDs, LED Lighting, Electric High Efficiency Blowers, New Air Diffusers, SRT Control for Activated Sludge, More Efficient Processes, more instrumentations and controls) Anaerobic Digesters Play a Key Role By Allowing Imported Carbon Energy Source (FOG or Food Waste) Biogas from Co -Digestion is Typically the Most Economical Way of Offsetting Other Power Costs Alternative Energy (Solar, Wind) Can Help Offset Imported Natural Gas or Grid Power For CCCSD, Alternatives Are Compared Against the Cost of Producing Power On -Site with Natural Gas and/or the Cost of Imported Grid Power Investigate alternative solids to energy processes (e.g.; gasification, pyrolysis) .AD 6/20/2016 9 SUPPLEMENT DIGESTER BIOGAS DRODUCTION WITH IMPORTED FOG • FOG / High Strength Wastes • 20,000 to 50,000 gallon/day Facility* • Energy produced = 480 kW to 1,150 kW Capital Costs = $4M to $5M Significant Competition for Hauled Waste (e.g.; EBMUD) Assumed Tipping Fee = Zero to $0.01 /gal Payback Period 50,000 Gallon/day: 4 to 15 years 20,000 Gallon/day: 9 to »30 years * 20,000 gpd based on potential estimated FOG available for our service area * 50,000 gpd based on max digester capacity to accept FOG CD 50,000 GALLON PER DAY FOG FACILITY PAYBACK ESTIMATE Discounted Cash Flow for FOG Facility $ 25,000,000 $ 20,000,000 $15,000,000 $10,000,000 $5,000,000 SOP } SO/Gallon YiPPln4 Fee 15e1 NacLral has' Irl 1 1 1 1 1 1 15 -$5,009,000 zo z5 -$10,000,000 Years 6/20/2016 10 20,000 GALLON PER DAY FOG FACILITY PAYBACK ESTIMATE Discounted Cash FIow for FOG Facility $8,000,000 $6,000,000 G&E\ $4,000,000 1 $2,000,000 So- $0 t1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 10 15 20 25 `�acu�al Gasl r r r r -$2,000,000 _�oaloN� r r -$4,000,000 -$6,000,000 Years RENEWABLE ENERGY OPPORTUNITIES • Wind Turbine • Solar Panels 6/20/2016 11 POTENTIAL RENEWABLE ENERGY LOCATIONS AT CCCSD Shell Refinery to North-west 36 10 39 9 9 22 <1 1 1 128 Buchanan Field Airport SOLAR POWER ALTERNATIVES Alternative 1: 7 MW Solar Power Peak Production: • Goal: Avoid net metering (no financial benefit for sending excess production to grid) • 1.2 MW Average Annual Production • Only Provides Net Zero Energy during peak production • Imported grid/natural gas required when solar is not at peak • Area Required: -75 usable acres • Capital Investment: $19M NAM 9,000 COW COW LAW SOLIDS I SCUDS 7 MW 1.2 MW 6/20/2016 12 SOLAR POWER ALTERNATIVES Alternative 2: 12 MW Solar Power Peak Production: • Goal: Maximize production with available area • -1.9 MW Average Annual Production Used By CCCSD • Peak 5MW of excess power sent "free" to grid • Annual Average >0.2 MW of excess power sent "free" to grid • Area Required: —Need all 128 usable acres • Capital Investment: $32M HOMO 9p00 epee COW 5.0 4.0 3.0 zpe0 1.0 eA is �a3 M 3 SOLIDS 12 MW MW SOLAR PAYBACK - DISTRICT OWNED PANELS Discounted Cash Flow of Solar Facility $30,000,000 $20,000,000 $10,000,000 $- 0 $(10,000,000) $(20,000,000) $(30,000,000) $(40,000,000) Years I I I I I I I I 1 1 1 1 1 20 25 30 4[ SI 6/20/2016 13 SOLAR SAVINGS - POWER PURCHASE AGREEMENT FOR 7 MW Discounted Cummulative Cash Flow $35,000,000 $30,000,000 525,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 20 -Year Total Discounted Savings = $8,200,000 $- ;1111111111111I1I111111111111;; 0 5 10 15 20 25 30 Years ALSO SOLAR SAVINGS - POWER PURCHASE AGREEMENT FOR 12 MW Discounted Cummulative Cash Flow $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- .II a III 5 III 11111111 10 15 Years 20 -Year Total Discounted E"--- Savings = $12,700,000 IIIA III 20 25 30 6/20/2016 14 WIND POWER ALTERNATIVE 1. 1.9 MW Peak Production: • Goal: Maximize production with available area • —0.7 MW Average Annual Production Used By CCCSD • Area Required: -103 usable acres based on wind data • Capital Investment: $5.2M COM 5660 4666 3666 z660 !660 a3 1.6 M 3 .1105. soups 11.9 MW ] 0.7 MW WIND PAYBACK - DISTRICT OWNED Discounted Cash Flow for Wind Facility $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- $(5,000,000) $10,000,000) I I I I III 0 10 Years cat 6/20/2016 15 ALTERNATIVE ENERGY CONSIDERATIONS District can export power to grid but would not receive revenue from PG&E for all the power Explore ability to export power to nearby customers to help optimize use of variable power Battery storage is cost prohibitive but a possibility depending on available grant funding Self Generation Incentive Program is available for wind power Wind and solar require land — could select one or the other or both (Not yet evaluated) Energy evaluation is for a 20 year plan (i.e.; based on future demands) COMPARISON OF SOLIDS ALTERNATIVES BY ENERGY SOURCE 2,500 2,000 i o' 1,500 500 0 PG&E NG LFG SOLIDS Current ■ NG NG LFG LFG NG NG LFG LFG SOLIDS SOLIDS SOLIDS SOLIDS Baseline Alt 51 Alt 52 Alt 53 (MHFs) (FBIs) (AD/FBI) (AD) 6/20/2016 16 COMPARISON OF SOLIDS ALTERNATIVES BY ENERGY SOURCE WITH FOG AND SOLAR Energy Produced By Source (MMBTU/day) 2,500 2,000 1,500 1,000 S00 0 PG&E NG SOLIDS SOLIDS NG FOG SOLIDS SOLIDS SOLIDS Current Baseline Alt 51 Alt S2 Alt S3 (MHFs) (FBIs) (AD/FBI) (AD) * Based on 50,000 gallon per day FOG facility and 12 -MW Solari ELECTRICAL PRODUCTION BY SOLIDS ALTERNATIVES TO MEET DEMAND Electricity Produced By Source (kW) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 PG&E 1,000 NG 0 Current Projected 1 IIO SOLIDS 1 NG SOLIDS NG ■ SOLIDS 1 Ib ■ SOLIDS Baseline Alt 51 Alt S2 Alt S3 (MHFs) (FBIs) (AD/FBI) (AD) 6/20/2016 17 ELECTRICAL DEMAND OF SOLIDS ALTERNATIVES WITH FOG AND SOLAR Electricity Produced By Source (kW) 10,000 9,000 6,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 u Current Projected Baseline Alt 51 Alt 52 Alt 53 (MHFs) (FBIs) (AD/FBI) (AD) * Based on 50,000 gallon per day FOG facility and 12 -MW Solar PG&E NG 0 O 0 CC Wind Potential I NG 1FG '501105 SOLIDS �FG SOLIDS rum Irk SOLIDS SOLAR FOG SOLAR FOG Solar Only $32M 16 Year Payback FOG Only $5M 4-15 Year Payback Solar & FOG $37M 16 Year Payback ALTERNATIVE ENERGY FINDINGS Incineration alone (Base case or S1) will not reach Net Zero Energy With Anaerobic Digestion S3 or with Anaerobic Digestion followed by Incineration S2, energy efficiency is maximized With FOG Co -Digestion (S2 or S3), net zero energy can be achieved for treatment process energy demands With FOG Co -Digestion and Solar, net zero energy can be achieved for treatment process energy demands and 5 MGD recycled water wholesale project Net Zero Energy and Zero Discharge are competing goals 6/20/2016 18 MASTER PLAN RECOMMENDATIONS • Consider including anaerobic digestion as part of the District's future solids handling portfolio • If anaerobic digestion is implemented, include a FOG program and co -digestion • Continue to explore solar and/or wind as a potential renewable energy source for the District (re-evaluate as net metering rules & tariffs are modified) • Pilot innovative solids technologies (e.g.; gasification, pyrolysis) to determine if more efficient and economical solids waste to energy alternatives are feasible DOES THE BOARD WANT A POLICY ON ENERGY? • Agree on Definition of Net Zero Energy for CCCSD • Is the Board Interested in Pursuing a FOG Program if Anaerobic Digestion is Implemented? • Is the Board Interested in Investing in Renewable Energy (Solar or Wind)? • District owned solar versus PPA? • Invest As Required To Achieve Net Zero Energy? • Achieve Net Zero Energy Only With Projects That Have A Payback Of Less Than 15 Years? Or a Different Payback? 6/20/2016 19 QUESTIONS OR FEEDBACK? AZD 6/20/2016