HomeMy WebLinkAbout03.a. Review draft Position Paper approving proposed revisions to Central San's Board Policy No. BP 027 - Energy Page 1 of 7
Item 3.a.
CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: JANUARY30, 2019
SUBJECT: REVIEW DRAFT POSITION PAPERAPPROVING PROPOSED REVISIONS
TO CENTRAL SAN'S BOARD POLICY NO. BP 027 - ENERGY
SUBMITTED BY: INITIATING DEPARTMENT:
MELODY LABELLA, RESOURCE RECOVERY ENGINEERING AND TECHNICAL SERVICES-
PROGRAM MANAGER PDS-RESOURCE RECOVERY
DAN FROST, SENIOR ENGINEER - PLANNING
AND APPLIED RESEARCH
REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ISSUE
Revisions to Board of Directors (Board) policies must be approved by Central San's Board.
BACKGROUND
As part of the preparation of the Central San's Comprehensive Wastewater Master Plan, staff brought
forward a proposed Energy Policy, which the Board approved on August 4, 2016. This policy is now up
for its biennial review and staff would like to propose revisions to simplify the policy, while maintaining its
original intent.
ALTERNATIVES/CONSIDERATIONS
The Board could elect to leave the existing policy as is.
FINANCIAL IMPACTS
Staff's proposed revisions to the Board's Energy Policy result in no financial impacts, as the cost-
effectiveness criteria remains the same.
COMMITTEE RECOMMENDATION
This item was reviewed at the January 30, 2019, Administration Committee meeting. The Committee
January 30, 2019 Special ADMIN Committee Meeting Agenda Packet- Page 3 of 20
Page 2 of 7
supported/did not support staff's recommended changes to the Energy Policy.
RECOMMENDED BOARD ACTION
Approve the proposed revisions to BP 027 - Energy.
Strategic Plan re-In
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 2- Manage costs
GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability
Strategy 2- Reduce reliance on non-renewable energy
ATTACHMENTS:
1. Updated Energy Policy
2. Updated Energy Policy- Redlined
January 30, 2019 Special ADMIN Committee Meeting Agenda Packet- Page 4 of 20
Page 3 of 7
Number: BP 027
Authority: Board of Directors
Effective: August 4, 2016
Revised:
Reviewed: CENTRALSAN
Initiating Dept./Div.: Engineering & Technical Services
Department
BOARD POLICY
ENERGY
It is the policy of the District to implement energy conservation, energy efficiency
measures and renewable energy recovery and generation projects that are cost-
effective and improve the reliability of the District's wastewater treatment plant, pumping
stations, and other District-owned buildings and facilities.
In applying this Policy, Central San will:
a. Implement cost-effective energy conservation, energy efficiency and renewable
energy projects that meet one of the following criteria:
(1) Capital investments must have a simple payback of not more than 15 years.
(2) Power purchase agreements, energy service agreements, and/or energy savings
performance contracts must offer a net present value of savings when compared
to the cost of using the District's existing energy sources and provide positive
cash flow within 5 years.
b. Identify and implement energy conservation and energy efficiency measures to
reduce overall energy usage and costs.
c. Recover renewable energy from wastewater and wastewater solids, including
capturing and converting existing waste heat from treatment processes into usable
energy.
d. Increase the use of renewable energy, such as solar, wind and/or imported biomass.
e. Consider potential human health, safety and environmental impacts.
f. Strive towards Net Zero Energy at the District's Treatment Plant (i.e. produce
enough renewable energy to meet the plant's annual energy consumption
requirements).
[Original Retained by the Secretary of the District]
January 30, 2019 Special ADMIN Committee Meeting Agenda Packet- Page 5 of 20
Page 4 of 7
Central Contra costa
Number: BP 027 Sanitary District
Authority: Board of Directors
Effective: August 4, 2016
Revised: ===
Page 5 of 7
Number: BP 027
DISTRICT ENERGY POLICY
Page 2of4
5. Types of GHG Emissions,- Direct and iRdireGt GHG emiSSOORs are defiRed as folio
a. Dir,-Gt emiSSieRs are from sourGes that are OWRed Or GeRtr011ed by the Do
(Referero: I I S C DA)
from sni FGes owned Or Gentrolled nn r entity(ReferenGe: I ICGDA\
rrv�-n-avcrr�rrca-vr i-r entity ��rcr-r
G: Ca fernia Assembiv Rill 32 (AB32) ('alifornia Global W-aFming Solutions Ad-of
2G/1/�Te law cooks to fight Glimate Ghange through a GOMnrehenciye program
California Air ResourGes Board (GARB) to develop regylatiORs and market
mechhani sms t t Will Ut the s-tate's (_'I-G emissions to 1990 levels by 2020 5%
redyGtmon statewide. AB32 requires GARB to take a variety of actions aimed at
T g the Jtate's impact on the Glimate
7. Cost efteGtive Pr-ejed-c.-' Projects that meet the f0I10WiRg MiRiMum requiremeRtS:
a. PrejeGts requiring Gapital investment must have a simple paybaGk period of not
more than 15 years
b. Projects that dO Rot require capital iRvestmeRt (e.g. power purchase agreemeRtS
(P PAs) energy coniine agreements and energy savings perfermanGe GentraGts\
f e
District's evicting energy sni ircec and provide positive Gash flew within 5 dears
PQL bt
It is the policy of the District to implement energy conservation, energy and-efficiency
measures; and otorenewable energy recovery and generation projects that are cost-
effective and improve the reliability of the District's wastewater treatment plant, pumping
stations, and other District-owned buildings and facilities.
1.In applying this Policy, Central San willenGn„rage and promote an energy
management approach that will pursue:
ie•
2.
a. Implement cost-effective energy conservation, energy efficiency and renewable
energy projects that meet one of the following criteria:
(1) Capital investments must have a simple payback of not more than 15 years.
(2) Power purchase agreements, energy service agreements, and/or energy savings
performance contracts must offer a net present value of savings when compared
January 30, 2019 Special ADMIN Committee Meeting Agenda Packet- Page 7 of 20
Page 6 of 7
Number: BP 027
DISTRICT ENERGY POLICY
Page 3 of 4
to the cost of using the District's existing energy sources and provide positive
cash flow within 5 years.
b. Identify and implement ^^ct-^ff^GWL energv conservation and energy efficiency
measures to reduce overall energy usage and costs.
3. Cost effeGtive pi;9jects for the DiStFiGt'S wastewater treatment plant Gampus and
the following goals:
identiNinay and imnl^menting energy genseryatmen and ^ffiniomont
Un^ everoll ^n^r i ,�cov ^ and nr�oto ons overalla. Develop a GOst effeGtive energy program for the
,
S wastewater treatment plarA
that stroyes towards Net Zorn Energy.
and Q1
c-.—Rlnnroocinrvoo nnnnr unities t Gest_eff^nt0y@-lyhot recover renewable energy from
wastewater and;wastewater solids, including , ons "i^^^c c
Vic. Gapturinlce and converting existing waste heat from treatment processes into
usable energy.
e. Impert high strength wastes t en site renewable energy generati
Increaseacee the Gest-^ f^^tiuse of renewable energy, such as solar, wind and/or
imported biomass .
d.
e. Consider potential human health, safety and environmental impacts.
f. Strive towards Net Zero Energy at the District's Treatment Plant (i.e. produce
enough renewable energy to meet the plant's annual energy consumption
requirements).
^� — —
January 30, 2019 Special ADMIN Committee Meeting Agenda Packet- Page 8 of 20
Page 7 of 7
Number: BP 027
DISTRICT ENERGY POLICY
Page 4of4
4. Cost effeGtive projeds for the District's wastewater treatmeRt plaRt
regional, sae,ttand federal (_I- G requirements
[Original Retained by the Secretary of the District]
January 30, 2019 Special ADMIN Committee Meeting Agenda Packet- Page 9 of 20