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Home My WebLink About07. Review Anaergia’s request for leasing portion of Kiewit property Page 1 of 3 Item 7. CENTRALSAN SANITARYJdf A- hom CENTRAL CONTRA COSTA , . March 18, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY GENERAL MANAGER SUBJECT: DISCUSS A REQUEST RECEIVED FROM ANAERGIA SERVICES FOR AN OPTION TO LEASE A PORTION OF THE KIEWIT PROPERTYTO DEVELOPA BIO-ENERGY PROJECT Central San has received a request (Attachment 1)to lease a portion of the Kiewit property to develop an Anaergia Bio-Energy project that could benefit both Central San and the region. As proposed, the project would be completely independent from Central San with no commitment of inputs and would be a lease only endeavor at this time, but could be interconnected with treatment plant operations. Anaergia has requested a commitment for the land after a one-year period, so they can perform a feasibility study to build a financial model and to secure other partners. Anaergia is hesitant to dedicate resources to the study unless Central San can assure them that the land will be available for lease at the conclusion of the study. Anaergia has provided a high concept process flow diagram (Attachment 2)that could provide benefits beyond a typical lease arrangement. The dotted lines represent interconnections that could potentially be achieved. Staff would need to perform its own feasibility study, utilizing the On-Call Agreement, to see if these interconnections have merit for Central San. Staff provided a verbal report to the Real Estate, Environmental and Planning Committee on February 22, 2021 regarding Anaergia's request to lease a portion of the Kiewit property and possible benefits for Central San. Strateguc Plan Tie-In GOAL THREE:Fiscal Responsibility Strategy 2—Ensure integrity and transparency in financial management ATTACHMENTS: 1. Letter from Anaergia dated February 9, 2021 2. Proposed Process Flow Diagram March 18, 2021 Regular Board Meeting Agenda Packet- Page 258 of 340 Page 2 of 3 ATTACHMENT 1 e Anaergia Anaergia Services 5780 Fleet Street,Suite 310 Carlsbad,CA 92008 USA +1.760.436.8870 www.anaergia.com Mr. Roger S. Bailey, General Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 February 9, 2021 Dear Mr. Bailey, Anaergia hereby expresses interest in building and operating a Bio-Energy facility on vacant land to the east of Central Contra Costa Sanitary District's wastewater treatment plant. This is the 3.56 acre parcel currently vacant plus the 5 acres currently leased by the Highway 4 contractor. In order to determine the volume and value of inputs and outputs, a feasibility study is required. Anaergia requests a twelve-month window in order to conduct this study at our own expense. In exchange, we request that the described acreage be made available for our use, in its current condition, at the end of the study period, in case the feasibility study proves favorable. If the project is not found to be feasible, Anaergia will relinquish its option to lease the land. In general, the potential facility would receive wet fraction of municipal solid waste and convert it to biogas, fertilizer, and clean water. Economic benefits of this facility to Central San might include the following: • Rental revenue • Biogas to replace Landfill Gas for the furnace • Biogas to replace Natural Gas for the CHP unit • Electricity Non-economic benefits might include the following: • Regional solution for compliance with SB1383 • Buffer capacity for managing WWTP residuals • Energy resilience via nearby source of renewable natural gas • Recycled water could be supplied to the Water Exchange program I look forward to discussing this request, and to arranging the necessary details. Best Regards, Andrew Benedek CEO March 18, 2021 Regular Board Meeting Agenda Packet- Page 259 of 340 ATTACHMENT 2 CCCSD worOil �y Dewatering Wastewater Treatment Combined I =� I Furnace Heat and Power (CHP) I Water Exchange I — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — I i ee- o I Dewatering Anaerobic Digester Ammonia • i Stripping "�11.01 Lb F Thickening Gas Conditioning 1 Biological Treatment �G CHP Feedstock Storage I �� Slurry Receiving Draft � Inrk Flow Diagram Anaergia March 18, 2021 Regular Board Meeting Agenda Packet- Page 260 of 340 Item 7. (Updated presentation as given at meeting) DISCUSS A REQUEST RECEIVED 1 wl FROM ANAERGIA SERVICES TO LEASE A PORTION OF THE KIEWIT PROPERTY TO DEVELOP A BIO-ENERGY PROJECT Jean-Marc Petit Director of Engineering and Technical Services - Board Meeting March 18, 2021 CENTPALSAN1 1 ergia - sreprwmnpw�okau are..a:aemca udn •f.�aa..x�mm Mr.RppF$,6aiey Genera Markaxv Larval Cpnva Cacu 9an�4ky O�atrc! 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