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Home My WebLink About03.a. Review draft Position Paper approving proposed revisions to Board Policy No. BP 027 - Energy, reflecting the Committee's input from the January 30 and February 19, 2019 meetings Page 1 of 6 Item 3.a. Algi CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: APRIL 16, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER APPROVING PROPOSED REVISIONS TO BOARD POLICY NO. BP 027 - ENERGY, REFLECTING THE COMMITTEE'S INPUT FROM THE JANUARY 30 AND FEBRUARY 19, 2019 MEETINGS 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 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, February 19, and April 16, 2019, Administration Committee meetings. The Committee supported/did not support staff's recommended changes to the Energy Policy. April 16, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 4 of 348 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 (in strikeout) 2. Updated Energy Policy April 16, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 5 of 348 Page 3 of 6 ATTACHMENT 1 Number: BP 027 Authority: Board of Directors -==--- Effective: August 4, 2016 Revised: CENTRALSAN Reviewed: Initiating Dept./Div.: Engineering & Technical Services Department BOARD POLICY ENERGY D I I C7, v ZP) E FniRirnize imported grid power and fessil fuels, by implerneRting eRergy effiGienGy and greeRheuse gas (GHG) erniSSOeRS. Te strove towards net zero eRergy at the DiStFiGt'S wastewater treatment plant nampi is in Martine DEFINITIONS 1 Net Torn Energli• For the Tnt'swastewater rcatrnontt Gams, Net Zero ERergy is defiRed as: ss a r rni iremen its. rC" (Refer • S department of Ene g-y) �-en r I 2. Renewable E-ne..,,,,I.-- Energy, typically On the form of which is supplied frorn e e geothermal, hydropower, and Marinus ferms of hiemass. These energy seuFGee s are Gen�T d renewable sources because they are GontiRUOUSly repleRished on the Earth (RefereRGe: US Gn\nrenmental RreteGtlnn Anens\I /I SEPA\1 e biogeRiG or e that absorbs iRfrared ra'at19`•'R the atmosphere (Reference: I ISEDA) 4 /1nthrnpn spin Ir,HG n*siens• r_'HG emissions that are prod Une`t as a direst result. of hurnan aGtiVities eF are the result ef Ratural PFOGesses that have been ,human activities (RefereRGe: USE April 16, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 6 of 348 Page 4 of 6 Number: BP 027 DISTRICT ENERGY POLICY Page 2of3 a. DiFeGt emiSSQRS are from sourGes that are OWRed Or GORtr011ed by the Do (Reference: I ISCDA) from soi�rnes evened er nulled by another entity (D� ronno-- I ICCDA\ rr�rn-�varcc�vvvrrca-vrC-err cr"..,.,� ��c ercrr G, Ca ifornia Assembly Rill 32 4R32) Galifornia Global Warming Solutions Ad-of 2006.-- Te law seeps to fight Ge through a GOMprehensiye program GalifOFRia Air ResourGes Board (GARB) to develop regulations and mar menhanisms that Will tFlUtthe state's�HGamissions te 1990 levels by 207l1�� redUGtiOR statewide. AB32 requires GARB to take a variety of actieRs aimed at redUGing the state's impant OR the glimato 7. Cost effedive PFoieGt-.-- PrE)jeGts that meet the fE)IIE)WORg minimum requiremeRtS: a. PrejeGtS requiring Gapital investment must have a simple paybaGk peried ef net. more than 15 dears b. Projects that dO ROt require capital iRvestmeRt (e.g. power purGhase agreements /DDAs\ energy coniine agreements and energy sa�iings performanGe GentraGts\ o , rnt q-t Aaffer a Ret present value of saViRgS when Gompared to the Gost of using the rlistri Gt's evicting energy soi FGes and provide positive Gash flow within 5 dears PIDUCY It is Central San'sthe policy of Central Can to implement energy conservation, energy a-ed-efficiency measures; and otorenewable energy recovery and generation projects that are cost-effective and improve the reliability of Central San's wastewater treatment plant, pumping stations, buildings and facilities, while striving to maintain full regulatory compliance. In applying this Policy, Central San willen Goy irage and promote an energy mapagement 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. April 16, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 7 of 348 Page 5 of 6 Number: BP 027 DISTRICT ENERGY POLICY Page 3 of 3 (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 Central San's existing energy sources and provide positive cash flow within 5 years. identoly and implement Gest_effentove enerGY Genseniatien ani enerav effiGienGi measures to reds iGe overall enerav usaae and neotc Cost effeGtive pFojeGt;S for the e the following goals: a b. Strive towards Net Zero Energy in Central San's wastewater treatment plant4hat strides towards Net Zero Energy b. IdGRtify arld implement energy effiGiency Improvement projects to redUGe GOsts and overall energy i sane wastewater solids, and hiooac e Gapt ure and Genvert waste heat from treatment prenesses into energy. f. Import high strength wastes te ORGrease en site renewable energy geReratien. Increase the GeCt-effeGti.,e use of renewable energy, such as solar and/or wind power. d. Consider potential human health, safety and environmental impacts. reduGe dorent arld iRdirent anthrepogeniG GI-IG en*Sienc , ,,.,, state, arld federal r`_Hr`_ requirements. [Original Retained by the Secretary of the District] April 16, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 8 of 348 Page 6 of 6 ATTACHMENT 2 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 Central San's policy to implement energy conservation, energy efficiency measures and renewable energy recovery and generation projects that are cost-effective and improve the reliability of Central San's wastewater treatment plant, pumping stations, 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 Central San's existing energy sources and provide positive cash flow within 5 years. b. Strive towards Net Zero Energy in Central San's wastewater treatment plant. c. Increase the use of renewable energy, such as solar and/or wind power. d. Consider potential human health, safety and environmental impacts. [Original Retained by the Secretary of the District] April 16, 2019 Regular ADMIN Committee Meeting Agenda Packet- Page 9 of 348