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Home My WebLink About06.a. Review draft Position Paper approving proposed revisions to Central San's Board Policy No. BP 027 - Energy, reflecting the Committee's input from January 30, 2019 meeting Page 1 of 6 Item 6.a. CENTRAL SAN BOARD OF DIRECTORS . , , . POSITION PAPER . , DRAFT MEETING DATE: FEBRUARY 19, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER APPROVING PROPOSED REVISIONS TO CENTRAL SAN'S BOARD POLICY NO. BP 027 - ENERGY, REFLECTING THE COMMITTEE'S INPUT FROM JANUARY30, 2019 MEETING SUBMITTED BY: INITIATING DEPARTMENT: MELODY LABELLA, RESOURCE RECOVERY ENGINEERING AND TECHNICAL SERVICES- PROGRAM MANAGER PDS-RESOURCE RECOVERY REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE Revisions to 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 and cost-effectiveness criteria. 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 and February 19, 2019, Administration Committee meetings. The Committee supported/did not support staff's recommended changes to the Energy Policy. February 19, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 4 of 97 Page 2 of 6 RECOMMENDED BOARD ACTION Approve the proposed revisions to BP 027 - Energy. Strategic Plan Tie-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- Redlined 2. Updated Energy Policy February 19, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 5 of 97 Page 3 of 6 Number: BP 027 Authority: Board of Directors - Effective: August 4, 2016 Revised: ' CENTRA A Reviewed: Initiating Dept./Div.: Engineering & Technical Services Department BOARD POLICY ENERGY PURPOSEDiStFiGt'S wastewater treatment plant Gampus, GGIleGtiGR system faGilities, pump , . . . 0 mperted grid power and fessil fuels, by implementiRg energy effiGieRGy and wastewater treatment plant campus in Martine DEFINITIONS 1 Net Zero -nerrr,i• For the DiStTr+t'� s�scewatreatment plant Gampus, Neter Energy is defined as: ss A wastewater treatment plaRt Gampus that uses er predUGes- eROUgh renewable energy to meet its OWR anRual energy GORSUMPtOOR ments��n reg„ire " (Refere • S Department of Energy) r T I hydropower,it 2. Renewabie E-ne.R.Y.' ERergy, typically OR the form ef eleGtriGity, which is supplied from and various nrms of hiemass.These energy seUrrGey are GeR�sideered renewable sourGes because they are GeRtiRUeUSIy repleRished OR the Earth (RefereRGe: US Rnyirenmental Drntentinn Agenn\/ /I ICRRA\\ riarld,atiOnOrthe atmosphere (RefereRce: I ISEDA) of humaR aGtivities er are the result Of Ratural preGesses that have been - rhi-u"�'rmaR activities (RefereRGe: I ISEDA) February 19, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 6 of 97 Page 4 of 6 Number: BP 027 DISTRICT ENERGY POLICY Page 2of3 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 Warming 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 menhhani 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 impaGt 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 Distrigt'c evicting energy sni irgec 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, while striving to maintain full regulatory compliance. In applying this Policy, Central San willeRGo„rage and promote ap energy management appreaGh that will pursue: a. Identify and 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. February 19, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 7 of 97 Page 5 of 6 Number: BP 027 DISTRICT ENERGY POLICY Page 3of3 (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. a --A imnlomen+ nes+_effen+i..o enerrni r+ensenia+ion and energ,i effir ienn�i measw es to re-uGe eyerall merry ,sage anr•I nests - , the following goals: identof-v and imnlomen+ ener.-y- effir ienn�i imnre�iement nreiegts +e redUGe nests an eyerall enerrrni ,sage , S wastewater treatment plant that strides towards Net Terri Energy energy uisag4a= wastewater and hierras o Capture and gender+ waste heat from treatment nrogesses into energy. f. Impert high strength wastes to inGrease on-site renewable energy generation. b. Consider potential human health, safety and environmental impacts. Cost-effeGtive pifejedS f9r the DistridS wastewater treatment plant Garnpus that rerdUGe rdiregt and indire Gt anthrenegeniG (_'I-I(`_ emissiens Ogtiye management of (`_I-I(`_ emissions to gomnhi with AB32 and other regional , state, rd anfederal GH— rem,iremants, [Original Retained by the Secretary of the District] February 19, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 8 of 97 Page 6 of 6 Number: BP 027 Authority: Board of Directors ="--- Effective: August 4, 2016 Revised: CENTRALSAN Reviewed: 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, while striving to maintain full regulatory compliance. In applying this Policy, Central San will: a. Identify and 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. Consider potential human health, safety and environmental impacts. [Original Retained by the Secretary of the District] February 19, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 9 of 97