HomeMy WebLinkAbout03.a. Review draft Position Paper to approve the Hydrothermal Processing of Wastewater Solids (HYPOWERS) Pilot Project for California Environmental Quality Act (CEQA) and permitting purposes, District Project 7358 Page 1 of 13
Item 3.a.
CENTRAL SAN BOARD OF DIRECTORS
. , , .
POSITION PAPER
. , 0
DRAFT
MEETING DATE: JANUARY28, 2019
SUBJECT: REVIEW DRAFT POSITION PAPER TO APPROVE THE HYDROTHERMAL
PROCESSING OF WASTEWATER SOLIDS (HYPOWERS) PILOT
PROJECT FOR CALIFORNIA ENVIRONMENTAL QUALITYACT
(CEQA)AND PERMITTING PURPOSES, DISTRICT PROJECT 7358
SUBMITTED BY: INITIATING DEPARTMENT:
AMANDA SCHMIDT, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES-
PDS-PLANNI NG AND APPLI ED RESEARCH
REVIEWED BY: DAN FROST, SENIOR ENGINEER
DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL
SERVICES
ISSUE
Board of Directors' (Board) approval of the HYPOWERS Pilot Project, District Project (DP) 7358 is
required prior to the filing of a Notice of Exemption under Central San's California Environmental Quality
Act (CEQA) Guidelines and to apply for necessary permits from local, regional, and state agencies.
BACKGROUND
In 2016, Central San agreed to be the host site for the HYPOWERS pilot project that will test an
emerging technology to produce renewable fuels from wastewater solids. A consortium led by the Water
Environment and Reuse Foundation was chosen by the Department of Energy(DOE)to design a waste-
to-energy pilot project. The consortium includes Central San, DOE's Pacific Northwest National
Laboratory (PNNL), Genifuel Corp., Marathon Petroleum Company (previouslyAndeavor, Tesoro), and
other partners.
The HYPOWERS system integrates with wastewater processing to enhance existing wastewater
treatment processes and achieve substantial environmental benefits, including reduced fossil fuel
consumption and mitigating emissions of greenhouse gases. Presently, Central San uses conventional
methods for solids separation which includes centrifuges to dewater the sludge stream before incineration
with multiple hearth furnaces coupled with waste heat recovery. The HYPOWERS project will divert,
dewater, and process a portion of the wastewater solids (approximately 16.5 wet US tons per day, which
January 28, 2019 REEP Committee Meeting Agenda Packet- Page 3 of 29
Page 2 of 13
equates to approximately 8% of Central San's solids) and produce biofuels, instead of incinerating and
recovering waste heat from them.
HYPOW ERS utilizes Hydrothermal Processing (HTP)technology to convert organic solids to biofuels. I n
the first step, known as Hydrothermal Liquefaction (HTL), dewatered sludge is processed at high
temperature and pressure, converting a portion of the organic content to biocrude.After the biocrude is
separated, the HTL aqueous effluent will be recycled to the headworks of the wastewater treatment plant.
Design provisions will be made to enable a portion of the HTL effluent water to be processed in the PNNL
Catalytic Hydrothermal Gasification (CHG) mobile unit. In this second step, the remaining organic matter is
converted into a gas, primarily consisting of methane and carbon dioxide. Within the project, this gas is
referred to as biogas, which lacks sulfur, siloxanes, and other impurities typically found in biogas produced
in anaerobic digesters.
Central San's existing furnaces and waste heat recovery system continue to serve Central San well. While
Central San continues to rely on the remaining life of those systems, exploration will continue on new,
innovative solids handling and resource recovery alternatives that could provide long-term cost savings,
and minimize greenhouse gas emissions and dependence on imported fuels. Central San's continued
participation in the HYPOW ERS project is a key success measure in Central San's fiscal year(FY) 2018-
20 Strategic Plan Goal Six: Embrace Technology, Innovation and Environmental Sustainability.
From 2017 to present, Central San has been participating in Phase 1 of the HYPOWERS project, which
includes various planning, research, and preliminary design activities. The anticipated completion of the
Phase 1 work is March 2019. Phase 2 consists of final design, construction, operation, and
decommissioning of the pilot system and is anticipated to begin in Summer 2019. Central San's role in
Phase 2 of the pilot is to continue to participate as a key project team member, to host the pilot system at
the treatment plant, and to provide access to Central San wastewater solids and other utilities required
(e.g. electricity, natural gas, water, and instrument air).
Prior to starting Phase 2 (Summer 2019), an agreement will be developed between Central San and the
HYPOW ERS pilot owner/operator. The agreement would clarify roles and responsibilities related to the
project (addressing various topics such as liabilities, insurance requirements, decommissioning, utilities,
emissions compliance, liquid return stream requirements, lease/access agreements, and operational
coordination agreement).
The proposed agreement and project budget with estimate of in-kind Central San contributions will be
brought to the Board for approval. Budget for the HYPOW ERS project is included in the Capital
Improvement Budget under DP 7358 for FY 2018-19.
CEQA
Staff has concluded that this project is exempt from CEQA under Central San's CEQA Guidelines
Section 15262, Feasibility and Planning Studies, since the project involves only feasibility or planning
studies for possible future actions which the agency, board, or commission has not approved, adopted, or
funded. The project does not require the preparation of an Environmental Impact Report or Negative
Declaration, but does require consideration of environmental factors. This section does not apply to the
adoption of a plan that will have a legally binding effect on later activities. Approval of this project will
establish the Board's independent finding that this project is exempt from CEQA.
ALTERNATIVES/CONSIDERATIONS
The Board may delay or decline to approve the project. If the Board does so, Central San may not be able
to continue to participate as a key project team member and as the project host site. This could adversely
impact the ability for HYPOW ERS to complete the demonstration project.
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Page 3 of 13
FINANCIAL IMPACTS
This position paper only approves the project for CEQA and permitting purposes, it does not approve a
project agreement, nor award a construction contract. A separate position paper for the agreement and
Central San budgetary commitment will be brought to the Board for approval.
COMMITTEE RECOMMENDATION
The Real Estate and Environmental Planning Committee reviewed this item on January 28, 2019
and did/did not recommend approval of the project for CEQA and permitting purposes.
RECOMMENDED BOARD ACTION
Approve the HYPOWERS Pilot Project for CEQA and permitting purposes.
Strategic Plan Tie-In
GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability
Strategy 2- Reduce reliance on non-renewable energy, Strategy 3- Encourage the review and testing of technology to
optimize and modernize business operations
ATTACHMENTS:
1. Location Map
2. Presentation
January 28, 2019 REEP Committee Meeting Agenda Packet- Page 5 of 29
Page 4 of 13
DETAIL
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January 28, 2019 REEP Committee Meeting Agenda Packet- Page 6 of 29
Page 5 of 13
Attachment 2
ow
HYDROTHERMAL PROCESSING OF
WASTEWATER SOLIDS
(HYPOWERS) PROJECT UPDATE
Dan Frost, Senior Engineer
Real Estate & Environmental Planning
Committee Meeting
January 28, 2019
HYPOWERS CONVERTS
WASTEWATER SOLIDS INTO BIOFUELS
I HydrothermalBiocrude
Wastewater & Biogas
Solids Processing
Technology Possible
Nutrient
Recovery
➢ High temperature & pressure processes
convert wet biomass into biofuels
➢ Targets state &federal renewable energy incentives
➢ Minimizes biosolids disposal needs
CENTRALSAN
1
January 28, 2019 REEP Committee Meeting Agenda Packet- Page 7 of 29
Page 6 of 13
HYPOWERS LEVERAGES LEADING
RESEARCH, UTILITY, & INDUSTRY EXPERTISE
THE 0 J,S.DEPARTMENT OF
Water ENERGY
Pacific Northwest Research
NATIONAL LABORATORY FOUNDATION ❑❑❑ MERRICK"
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❑❑❑ & CQMPANY
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Over 16 Public Agencies&Other Project Partners Not Shown ``! 3
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PROJECT ROLES
HYPOWERS
• Host Agency for the Pilot • Overall Project
• Lead Public Agency for Management
California Environmental • Design, Fabrication, &
Quality Act (CEQA) Site Construction
Compliance • Own, Operate, & Maintain
• Air & Liquid Permitting Pilot
Coordination • Regulatory Compliance
• Participate throughout
Project
W CENTRAL SAWN
2
January 28, 2019 REEP Committee Meeting Agenda Packet- Page 8 of 29
• . , • . A •
■
16.5 Tons Per Day 14,000 Cubic Feet
(or 8%) of 328 Gallons Per Day Per Day Biogas
Central San Solids Biocrude Oil Possible (Mobile Unit
Will Process Less)
1 Ton Per Day 2.4 Gallons Per 16 Gallons Per
Nutrient Rich Minute Minute
Ash Slurry Hydrothermal Liquid Dewatering Liquid
to Treatment Plant to Treatment Plant
�cC
CENTRALSAN
Pre-2017 2017 2018 2019
2015 - 2016
WRF* (Water Research
Foundation) Conducts
Independent Evaluation of
er 1
Genifuel Technology
r�sd.rcir.nBecomes WRF Most
Followed Technology
R J
CENTRAL SAN
Page 8 of 13
PHASE 1 TIMELINE
• - •
2016
WRF Submits Proposal for
DOE (U.S. Department of
AL-kA Energy) Funding,
- _ with Central San as
the Host Agency
PHASE 1 TIMELINE
•
2017
U.S. DEPARTMENT OF
' ENERGY
Selects & Awards $1.21VI for
HYPOWERS Project Phase 1
(Planning & Design)
CENTRALSAN
4
January 28, 2019 REEP Committee Meeting Agenda Packet- Page 10 of 29
Page 9 of 13
PHASE 1 TIMELINE
Pre-2017 , •
2017 - 2018
✓ Validation Testing, Sampling, & Bench Testing
s i
■
9
CENTRALSAN
PHASE 1 TIMELINE
Pre-2017 ' = = •
2018 - 2019
Yonceptual Design
.'ermting Strategies
raft Technical, Economic, & Other Report Deliverables
it
repare Plan for Phase 2
Additional $3M California Energy Commission (CEC)
Grant Funding led by SoCal Gas
5
January 28, 2019 REEP Committee Meeting Agenda Packet- Page 11 of 29
Page 10 of 13
PHASE 1 TIMELINE
Pre-2017 2017 •
2019
❑ Request Board of Directors Approval of Project
for CEQA & Permitting Purposes (February 2019)
❑ Finalize Phase 1 Deliverables
❑ Phase 1 Completion (March-April 2019)
❑ Request Board of Directors Approval for
Pilot Agreement (Spring/Summer 2019)
Anticipated Phase 2 Start (Summer 2019)
PHASE 2 ANTICIPATED TIMELINE
im Lllllllllllllllll� =I &
2020
❑ Complete Final Design
❑ Equipment & Contractor Procurement
❑ Pilot Fabrication & Testing
❑ Site Modifications/Construction
66h�._ - �11... - 11
NOMENOMENEWURTW M, 6
January 28, 2019 REEP Committee Meeting Agenda Packet- Page 12 of 29
Page 11 of 13
PHASE 2 ANTICIPATED TIMELINE
1 1 1 1 EM
2021 - 2022
❑ Develop Operating Procedures
❑ Operate Pilot
❑ Test Products & Co-Products
❑ Update Techno-Economic Evaluations
` 13
PHASE 2 ANTICIPATED TIMELINE
2023
❑ Finalize Project Reports
❑ Demobilize Pilot & Restore Site
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PRELIMINARY DESIGN - PILOT LOCATION
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PRELIMINARY DESIGN 3-D LAYOUT
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January 28, 2019 REEP Committee Meeting Agenda Packet- Page 14 of 29
Page 13 of 13
RECOMMENDATION
Board of Directors approval of the
HYPOWERS Pilot Project (DP7358) for
CEQA and permitting purposes
11
QUESTIONS OR COMMENTS
9
January 28, 2019 REEP Committee Meeting Agenda Packet- Page 15 of 29