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HomeMy WebLinkAbout17.a. Receive update on the Refinery Recycled Water Exchange Project cost allocation Page 1 of 8 Item 17.a. CENTRALSAN SANITARYJdf A- hom CENTRAL CONTRA COSTA , . June 17, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY GENERAL MANAGER SUBJECT: RECEIVE UPDATE ON THE REFINERY RECYCLED WATER EXCHANGE PROJECT COST ALLOCATION In order to complete the final task of the Work Plan associated with the Memorandum of Understanding between Central San, Contra Costa Water District, and Santa Clara Valley Water District (Valley Water)for a Preliminary Feasibility Evaluation of the Refinery Recycled Water Exchange Project (Water Exchange Project), Central San and Valley Water hired Raftelis Financial Consultants, Inc. to work in conjunction with HDR, I nc. to establish a framework for cost sharing on the project. The basis of the proposed cost allocation is that Central San would contribute the amount of capital and operation and maintenance costs that would be required for Central San to independently build, operate, and maintain an advanced treatment process that would allow Central San to remove an equivalent amount of total inorganic nitrogen as the Water Exchange Project. The details of the proposed cost allocation are included in the attached presentation and will be reviewed, in advance, at the June 14, 2021, Real Estate, Environmental and Planning Committee meeting. Strategic 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 June 17, 2021 Regular Board Meeting Agenda Packet- Page 136 of 168 Item 17.a. (Handout - Updated Presentation) IAA* w UPDATE ON REFINERY RECYCLED WATER EXCHANGE PROJECT COST ALLOCATION Melody LaBella, P.E. Resource Recovery Program Manager Board Meeting June 17, 2021 1 REFINERY RECYCLED WATER EXCHANGE PROJECT CONCEPT Martinez Refineries i Los Vaqueros Reservoir LOSE t, VAQUEROS; RESERVOIR■ EJ(PA PROJE T i A ® Transfer-Bethany Valley Water Contra Costa Pipeline South Bay (Santa Clara (proposed) Aqueduct Water District Valley Water (CCWD) District) CENTRALSAN 1 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 CENTRALSAN ' 3 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 Vol4 CENTRALSAN 2 1 op- ©I CENTRAL SAN Water Exchange Cost Sharing 1` 1 May 2021 Overview of Water Exchange Alternatives Costs for 21,600 AFY Recycled Alternative 1 — Targeted Nitrogen Removal Water Delivery Capital Costs Treatment $444 M Conveyance $ 49M Total Capital $493 M Ezsling PSTs EPEES• &111,Se nda, •:.- rrP.B mn! Disi.r-!.on N— 0&M($/yr) $ 12M DA6ng Crlc• GMF C:•' Cfearwwll roz; L Unit Cost $1,5001AF M114 ww- New Treatment Processes To Refineries Lower flows required due to changes in refinery operations DRAFT MGD=million gallons per day 6 3 Cost Sharing Basis at 16.5 mgd delivery Status Quo seasonal effluent Alternative 1: Nutrient Watershed TIN per capita load projection ( ) SeasonalceDate(2Targep p y ) • Compliance until 2051 23 ears 5,000 Permit3 2025 ColmplianceDate(2035) (1 percent per year increase p ( years) 5'070 Senwnel P6nnirg Le�N Teigat=9,300 ky-�I x Y 4,000 0 ♦ ♦ •♦/X Z F + — 3,000 c Upper and Lower Range of Status Quo rir TIN Discharge Loads 2,000 1,000 —Status Quo with Ex_Zone 1 —Alternative 1 Targeted Nutrient Reduction 0 2010 2020 2030 2040 2050 2050 �•ar DRAFT Cost Sharing Basis at 16.5 mgd delivery Status Quo seasonal effluent Alternative 1: Nutrient Watershed Seasonal nN Target IN per capita load projection Compliance until 2051 (23 years) 5,000 Permit3(2025) Ccrrpliance Date(2035) {1 percent per year irtcreasel No Water Exchange: 5 000 sea,o a as ,g Latl r•,ge-4,00 • 24 mgd parallel treatment ��ata x`•�e • Compliance until 2054(20 years) 4,000 J • 1 F — 3,000 cUpper and Lower Range of Status Quo N TIN Discharge Loads air —Status Quo with Ex.Zone 1 —Alternative 1 Targeted Nutrient Reduction —No Water Exchange Alemative o — 2010 2020 2030 2040 2050 2060 r.ar DRAFT 4 No Water Exchange — Parallel Treatment Return Fk— Exkunp. EPS Costs for 24 MGD Parallel Existing!+ M B New Chlorine Emtln - Treatment Train: Existing PEP$ ';. Existing Sec., -fjD 8GMF Contact BxJn ��11 PSTs Treatment D sidaction To Zana 1. New Flow —.---JM lllrlAy Wawr Capital Costs Equaii2ation (4MGp Treatment $225 M - Iwrs Conveyance $ M Total Capital $225 M New BNR Train(AGS) 0&M($/yr) $5.0 M GS Constant-Flow Parallel Treatment DRAFT Cost Sharing Approach • Central San could contribute to the cost of providing the equivalent TIN load reduction as the Water Exchange Alternative 1 (i.e., Central San contributes the cost of the No Water Exchange Alternative) • Can be applied to any size delivery scenario DRAFT 10 5 • Sharing Summary 16.5 mgd delivery Total No Water Exchange WEX Alternative 1 (24 mgd) Capital •0 OperatingTotal RecycledTotal 00 CapitalValley Water CapitalCentral San • i RecycledValley Water 00 Central San TIN Load Reduction Cost($/kg TIN) $80 $90 DRAFT Central San Commodity Charge(negotiable) t t Recycled Water Treatment and Conveyance- to to Alternative 1 40 YR PV and 100 YR PV Recycled Water Distribution(included above) O&M Labor Cost :• :. ERecycled Water Cost Subtotal Central San Cost Allocation RMI ~ Net Recycled Water Cost with Central San t t t Avoided Cost/Cost Benefit Allocation Transferable Recycled Water Cost Assumes 50%Yield to Valley Water USBR CVP Cost of Service for exchange CCWD Conveyance t CCWD Storage SBA Conveyance ', t •t Transfer Bethany Pipeline Conveyanceo :• :. CCWD Avoided Costs(PRELIMINARY) t t Net Water Conveyance Cost Subtotal , Preliminary Net Water Cost Estimated Range CENTRALSAN QUESTIONS/DISCUSSION i6ka.— ' 13 7