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Home My WebLink About09.a. Receive overview of Bay Area Nutrient Regulations and the Refinery Recycled Water Exchange project Page 1 of 12 Item 9.a. CENTRALSAN SANITARYJdf A- hom CENTRAL CONTRA COSTA , . February 4, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: LORI SCHECTEL, ENVIRONMENTAL AND REGULATORY COMPLIANCE DIVISION MANAGER MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY GENERAL MANAGER SUBJECT: RECEIVE OVERVIEW OF BAYAREA NUTRIENT REGULATIONS AND THE REFINERY RECYCLED WATER EXCHANGE PROJECT Staff has prepared the attached presentation to provide an overview of Bay Area nutrient discharge regulations and their relation to the potential opportunity presented by the Refinery Recycled Water Exchange Project- a partnership between Central San, Contra Costa Water District (CCWD) and Santa Clara Valley Water District (Valley Water). Staff looks forward to reviewing this information with you and answering any questions at the February 4, 2021, Board meeting. Strateguc Plan Tie-In GOAL TWO: Environmental Stewardship Strategy 2—Anticipate and prepare for potential regulatory changes, Strategy 3— Support regional development of local water supply ATTACHMENTS: 1. Presentation February 4, 2021 Regular Board Meeting Agenda Packet- Page 55 of 104 Page 2 of 12 OVERVIEW OF BAY AREA NUTRIENT REGULATIONS AND REFINERY RECYCLED WATER EXCHANGE PROJECT Board Meeting _ - February 4, 2021 Jean-Marc Petit, Director of Engineering and Technical Services f Lori Schectel, Environmental and Regulatory Compliance Division Manager Melody LaBella, Resource Recovery Program Manager OVERVIEW OF BAY AREA NUTRIENT REGULATIONS Jean-Marc Petit, Director of Engineering and Technical Services - Lori Schectel, Environmental and Regulatory Compliance Division Manager 31 - � z February 4, 2021 Regular Board Meeting Agenda Packet- Page 56 of 104 1 Page 3 of 12 SAN FRANcisco BAY Mi Nutrient Enriched, but Not Exhibiting Typical Problems NUTRIENTS: NITROGEN AND PHOSPHOROUS Nitrogen in the Environment • Excess nitrogen can lead to eutrophication • Oxygen dead zones • Fish kills • Harmful algal blooms(HABs) 5o me forms of nitrogen are directly toxic to aquatic life • Nitrogen is the limiting nutrient in estuarine and saltwater systems - Water Resource Recovery Facilities(WRRFs)are considered point sources for nutrients like nitrogenCENTRALSAN -w ' a February 4, 2021 Regular Board Meeting Agenda Packet- Page 57 of 104 2 Page 4 of 12 POTWs: Largest Source of Nutrient Loads SVCSD Nave Patalnma rimer Canvonan FSSD Norato San hLb a{N,vso B A C W A Les Gefllnaii� - Pinole =,CCCSD CMSF -^J WCSD Diablo SASM� -:_� R,hmond BAY A R E A Tr'"6e island CLEAN WATER r�`.r AGENCIES 11 SFPUC J San Leandro Lrvermare 5' ` EBOK- OLSD DSPSD SpathSF sem, H.M.nd BACWA is a joint powers authority formed by the five largest SFO ft- �+ `�I-- Bay Area Publicly Owned Treatment Works (POTWs) N.dlneamev Unlon San San Mateo SVCLYj� --, P.J.Alta Slsc Sun-yvale I SERVICE WASTFWATER CIF NUTRIENT PC)PULATION TREATMENT PLANTS EFFLUENT LOADS TO THF BAY Collaboration : Key to Practical Nutrient Management rmil k I i JA FA�Y1,111 4 JA 14�k Watershed Stakeholders Science Practical Approach Regulation CENTRALSAN February 4, 2021 Regular Board Meeting Agenda Packet- Page 58 of 104 3 Page 5 of 12 Working Together for Practical Regulation A A C WA • B AY AREA SAN FRANCIsco ►�! A`G E N C r s = BAYKEEPERe >A BACWA Non-Govt Organizations ACUATIC (NGOs)(wastewater utilities) SC I E N C E9%0 SFEICENTER Water Boards Regional Water Board San Francisco Estuarine institute (regulatory) (science) The approach in the Bay Area for managing nutrients has received nuVonal attention and lauded for its collaboration,as evidenced by receipt of a National Environmental Achievement Award in 2079 fromJ' N A i1 0 NAL Environmental the National Association of Clean Water Agencies(NACWA) E NACWA is the nationally recognized ACht nvir t A W A 2 D S leader in legislative,regulatory,and legal clean water advocacy. 1ST NUTRIENT WATERSHED PERMIT 2014 jr W ME .-- O LOAD CAPS SUPPORT FOR SCIENCE GROUP REPORTING _ 1 8 CENTRALSAN February 4, 2021 Regular Board Meeting Agenda Packet- Page 59 of 104 4 LOAD CAPS: Not yet regulated but INCREASED FUNDING introduced in Permit's SUPPORT Fact Sheet, FOR SCIENCE Introduction of TIN REGIONAL RECOGNIZES STUDIES EARLY ACTORS CENTRAL SAN LOAD CAPS: Likely to be added to Continuation of Funding Permit with Support for Science? Compliance Schedule Establishment of Sub Incentivizing Multi-benefit Embayment-Based Caps Projects? and/or a Trading System? CENTRAL SAN Page 7 of 12 PROJECTION OF CENTRAL SAN'S TIN DISCHARGE °ro M9manlwamrana6 fia�:rain:il nM I v:ul �Tna vnmlla 4M61 roa.vn.r,=a u.w l>,eonl Cad-iIMo+e U9110 Sao ncrea9eeauel le, 1,sIi0 _ I u.�inl vur ioai ,y1 W Hi510 1 ma—wn _ eTluenl l IM yer capAa _ yIp M=6!10]90 kaacaml� �� ,rW a SeafoW vknnnlno level O,SW Tar0e1.0.106 k0May 'L.fW ------------------- .. ____–____– ------------------------ s O,1W 49W F lele M TIN M. :f,lW a;.d= TIN M.ivv�l.i k:r�l=0 00091 3,500• J� k�pldk.pII6 3,aW 3.100 2,900 2.700 'N owdum Lo10 F: "ds Plwom LwN Tugrt 45W Y.� Lendltlen 100 -ver xw.increesa :Oao E�aeK TN Lae0llae.ses hoer re.r 2.1W _rmu<„1 rw Ina.ver U"vrvIe 1,900 7032 IMM TINQOr90 woplim4w Okwsmft —eema„Irw ia.,verLerwravrolenor- I.T00 7w5 Ca"TIN wcipw 1W 000691 kp16ka w . a 1•sm 4611 dl[1 7v31 10-01 IOU lOL1 Zvi �11 CENTRALSAN _ OVERVIEW OF THE REFINERY RECYCLED WATER EXCHANGE PROJECT _ _ Melody LaBella, P.E. Resource Recovery Program Manager ' 12 February 4, 2021 Regular Board Meeting Agenda Packet- Page 61 of 104 6 Page 8 of 12 REFINERY RECYCLED WATER EXCHANGE PROJECT CONCEPT Martinez # Refineries s oeaS' ,# Los Vaqueros ',. •` Reservoir LOSE VAQUEROSan RESERVOIR■ EXPANSIONS PROJECT QL�! Transfer-Bethany - _ VoUm-Water Contra Costa Pipeline South Bay (Santa Clara (proposed) Aqueduct Water District Valley Water (CCWD) District) ' 13 CENTRALSAN MEMORANDUM OF UNDERSTANDING (MOU) On April 30, 2018, a three-way MOU was executed between Central San, CCWD, and Valley Water to conduct a Preliminary Feasibility Evaluation of the Refinery Recycled Water Exchange Project On July 3, 2019, Amendment 1 was executed, extending the termination date to June 30, 2020 On June 22, 2020, Amendment 2 was executed, extending the termination date to June 30, 2021 ' 14 CENTRALSAN February 4, 2021 Regular Board Meeting Agenda Packet- Page 62 of 104 Page 9 of 12 WORK PLAN DEVELOPED JUNE 2018 Central San, CCWD, and Valley Water staff collaborated to develop a Work Plan called for in the MOU Tasks included: ,,. Review and update costs Central San previously developed to provide recycled water for refinery use B. Review refinery water quality requirements C. Evaluate/estimate the project's yield D. Develop updated cost estimates E. Allocate costs, based on beneficiary pays F. Final report ' 15 PRELIMINARY FEASIBILITY EVALUATION What We've Learned So Far: The cost to produce and deliver recycled water to refineries is $1 ,500/acre-foot. (1 acre-foot = —326,000 gallons) Delta water supply yield is a complicated issue. The average yield is estimated at 50%. The drier the water year, the higher the water supply yield. The Water Exchange Project represents an opportunity for Central San to reduce its discharge of nutrients (TIN). ' 16 CENTRALSAN February 4, 2021 Regular Board Meeting Agenda Packet- Page 63 of 104 8 Page 10 of 12 IMPACT OF WATER EXCHANGE PROJECT ALTERNATIVES ON CENTRAL SAN'S FUTURE TIN DISCHARGE E.D00 w�rn�i]a35� - Sw.oM ial xorapi lr�w'.r+wewj�a�nll aaRrii Oea'aWln Ow EN101! 5.000 =.W.Pav- LeM Tags:.,dap Nye z 3,�0 ♦ uppraM laver .... was a ser�s ow P"Obel�ll.Lase. nn.m Refinery Recycled Water Exchange Online 2029 —nr...an f.M O"P G vKn —Pa+Swr FqM.}�ui.mnw. 2040 2LG0 20&1 ar ' 17 CENTRALSAN CHALLENGES • Having interested/willing customers • Water supplier (Valley Water) • Refineries • Evolving refinery demands • Changes in demand for gasoline • Economics • Delta water supply yield CENTRALSAN February 4, 2021 Regular Board Meeting Agenda Packet- Page 64 of 104 9 Page 11 of 12 OPPORTUNITIEP Talking to the refineries (via CCWD) to find a win-win Finding cost efficiencies Working with the refineries to adjust water quality requirements Exploring the possibility of upgrading existing water treatment systems at the refineries Delivery by public-private partnership Bay Area nutrient regulations could potentially bring other public agency investors via nutrient trading Talking with US Bureau of Reclamation leadership to seek different consideration of the water supply yield, being a r Delta offset CENTRALSAN POLICY ISSUES FOR BOARD CONSIDERATION Should Central San reduce its nutrient discharges to the Bay ahead of regulatory requirements to do so? Is the Board willing to support that early investment? ' 20 CENTRALSAN February 4, 2021 Regular Board Meeting Agenda Packet- Page 65 of 104 10 Page 12 of 12 QUESTIONS/COMMENTS/DISCUSSION ' 21 CENTRALSAN February 4, 2021 Regular Board Meeting Agenda Packet- Page 66 of 104 11