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Home My WebLink About04.a. Recycled Water Policy Discussion (Continued) Page 1 of 24 Item 4.a. CENTRAL SAN July 26, 2021 TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE FROM: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECYCLED WATER POLICY DISCUSSION (CONTINUED) In response to a request from the Real Estate, Environmental & Planning Committee (REEP) Committee, staff has prepared the attached presentation, which will be brought to the full Board on August 5, 2021. The purpose of the presentation is to provide background to assist the Board in determining its direction to staff on how to proceed with the development of future recycled water projects that use Central San's wastewater supply. Staff will continue the discussion presented at the July 20, 2021 REEP Committee meeting and looks forward to finalizing the review of this presentation and policy questions and receiving the Committee's input at this meeting. Strategic Plan Tie-In GOAL TWO: Environmental Stewardship Strategy 3—Support regional development of local water supply ATTACHMENTS: 1. Presentation July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 4 of 40 Page 2 of 24 4 I CENTRAL SAN RECYCLED WATER POLICY DISCUSSION (CONTINUED) Melody LaBella, P.E. - _ Resource Recovery Program Manager Real Estate, Environmental & Planning (REEP) Committee Meeting July 26, 2021 711K,M PRESENTATION OUTLINE 1 . Overview of Central San's Recycled Water Initiatives 2. Review of Central San's Water Recycling Efforts 3. Central San's Board Recycled Water Initiatives 4. Constraints Associated with Recycled Water 5. Summary of Current Commitments 6. Policy Questions 7. Questions/Discussion/Direction CFNTPALSAN July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 5 of 40 1 Page 3 of 24 1 . OVERVIEW OF CENTRAL SAN'S RECYCLED WATER INITIATIVES CURRENT CENTRAL SAN RECYCLED WATER INITIATIVES Treatment 1 w• "•' - Plant ' u� Suisun Bay Discharge r r Plant Filter Plant Advanced Refinery Recycled Utility & Treatment Water Clearwell Facilities Water Exchange I y ; Project � J Martinez Refineries Zone 1 Recycled .............. , Water `•• � � Diversion by Golf Temporary ��'•� Courses: Diversion by :•ConCosta (Santa Clara • Diablo Count DERWA N Club �• Watjer District Valley Water • Mora a Count Club (1 CWD) District) Concord Reuse !L ProjectCENTRALSAN q I July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 6 of 40 2 Page 4 of 24 2. REVIEW OF CENTRAL SAN'S WATER RECYCLING EFFORTS ORIGINAL REFINERY PROJECT FACILITIES • Forebays and Applied Water Pumps • Filter Plant • Clearwell Status: Project was constructed, but never moved • Conveyance Facilities forward. • Distribution Storage Tanks ' 6 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 7 of 40 3 Page 5 of 24 CENTRAL SAN'S ZONE 1 RECYCLED WATER PROGRAM • Central San owns and operates a recycled water distribution system called "Zone 1 ." • In 2020, Central San sold -217pi million gallons of recycled water. • Central San's Wastewater Treatment Plant uses about 1 e million gallons per day (MGD) of .,•m, recycled water. [j ccrao s,,.,an,aa CENTRALSAN ZONE 1 RECYCLED WATER DISTRIBUTION SYSTEM DETAIL AREA 1 Facrciae YrweCYMma„ » 1 lse.Weave nMf cewmp(onl ■ ,Yr1 ". • I l 1 w � O Q 0 E,eeny uw.m. 5 � y 11 ..... . 7 w � CENTRAL SAN .� ' cccso weereba NRler srelem 8 V - July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 8 of 40 4 Page 6 of 24 ZONE 1 PIPELINE CUSTOMERS •Contra Costa Country Club Golf Course •Buchanan Fields Golf Course •Diablo Valley College •Mt. Diablo Unified School District •Pleasant Hill Recreation and Park District •Contra Costa County; •Business in the Diamond Blvd. area of Concord •Coco San Sustainable Farm CENTRALSAN1 COMMERCIAL TRUCK FILL PROGRAM • Provides recycled water to licensed contractors for construction activities such as dust control, soil compaction, and plant establishment. • Contractors can access recycled water via purple fire hydrants or from Central San's Commercial Fill Station. • Recycled water provided through this program is free of charge. R One of Central San's three hydrants(left)and a portable meter(middle)that contractors can use to obtain Central San's recycled water. Central San's Fill Station(right). 1 - CENTRALSAN - July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 9 of 40 5 Page 7 of 24 RESIDENTIAL FILL STATION The Residential Fill Station Program allows central Contra Costa County residents to - ,. pick up recycled water free of charge at "dFz our Household Hazardous Waste (HHW) facility in Martinez for hand-watering lawns, landscaping, and gardens. How to use this program: • Complete an Application/Use Agreement and a brief training class on the proper use of recycled water • Brings containers with watertight lids; 1 gallon minimum to 300 gallon maximum • Use appropriately-sized containers and vehicles for transport(water is heavy!) • Unlimited trips allowed _ CURRENT INVESTMENT IN RECYCLED WATER FACILITY IMPROVEMENTS - PHASE 1A - $35.8 MILLION (M) rReplace Backwash Motors ) cled Water Storage: eplace East Clearwell ith two new above round storage tanks (steel or pre-stressed concrete) • Clearwell Overflow Structure Modifications • Rehabilitation one Filter (#3)and Mechanical/ Instrumentations on others • Upgrade Chemical Feed _ Upgrade/Replace Electrical Gear New Recycled Pump Station • Applied Water Pump �� —� Electrical Facility Station(AWPS) Replace Substation 40-2400V • Replace Variable Frequency Drives for AWPS 12 CENTRALSAN July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 10 of 40 6 Page 8 of 24 DUBLIN SAN RAMON SERVICES DISTRICT - EAST BAY MUNICIPAL UTILITY DISTRICT RECYCLED WATER AUTHORITY (DERWA) DIVERSION M 17 16 22 C'o M5 .f-. ' - af 6 a5 ^ Ram on P, . S �..' M15 MID[ 22 9 G MIL16GUIDING PRINCIPLES FOR CENTRAL SAN'S AGREEMENT WITH DERWA 1 . No Adverse Financial Impact to Central San 2. No Adverse Financial Impact to Concord and Clayton 3. Consistency with Existing Bond Covenants 4. Consistency with Proposition 218 5. Community Acceptance 6. Temporary Nature 7. Mitigation of Technical and Operational Impacts 8. Benefits to Central San Customers 9. Facilitate a Sustainable Solution to the Region's Water Supply Shortage ' 14 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 11 of 40 Page 9 of 24 3. CENTRAL SAN'S BOARD RECYCLED WATER INITIATIVES CENTRALSAN1 CONCORD NAVAL WEAPONS STATION REDEVELOPMENT 2.1 MGD BY 2035 To 6.3 MGD AT BUILDOUT 2040+ • Will serve letter to provide recycled water to the new development • Development to be located both within City of Concord and Central San services areas R • Central San to produce (;�►Tic.orcl the recycled water and wholesale it to CCWD • CCWD responsible for AAA ;�` sale and distribution of Project Status: On Hold CONTRA COSTA recycled water pending selection of a new WATER DJSTRICT master developer by City of Concord ' 16 CENTRALSAN July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 12 of 40 8 Page 10 of 24 RECYCLED WATER WHOLESALE OPPORTUNITIES STUDY • The study's objective was to understand the water market and demand for Central Esc San's potential supply of recycled water. Recycled Water WhttieSOie ppp�gtunttie9 Centra]Contra Costa sanitary District • In 2015, the REEP Committee provided the Board Meeting following guidance on the study: 2016 • Favor projects with year-round recycled water demand. • Favor a small number of large projects RMC Water and Environment(now Woodard over many small projects. and Curran)was hired by Central San to complete the study. • The following slides are excerpts from a presentation provided to the Board in February 2016. ' 17 CENTRAL SAN Overview Map of Potential Opportunities : . - Reservoir San Pablo Reservoir LEGEND Los Vaqueros � CCCSDWWTP ; = - EBMUDAqueduct CCWD CanalReservoir DSRSD Facilities Upper Reservoir Iv- CVP/SWP Facilities July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 13 of 40 9 Page 11 of 24 Market Assessment ��= Indirect Potable(IPR) Direct Potable .P • CCWD Canal • EBMUD Mokelumne • EBMUD Mokelumne • Local Golf Courses Aqueduct#1 or#2 Aqueduct#1,2,or 3 • Local refineries • EBMUD San Pablo • CCWD Mallard Reservoir • Export to Ag— Reservoir Bollman WTP Delta Mendota • EBMUD Briones Res. Canal(DMC) • EBMUD Upper San • Export to DERWA Leandro Res • Export to Delta • Lafayette Reservoir milk iablo Los Vaqueros Reservoir • CCWD Clayton Wastewater groundwater recharge F Send San Ramon • DSRSD groundwater Ene tives Pump Station to recharge DSRSD ated Alt #1 Recycled Water to Refineries Shell Refinery Tesa�` i� ti • Utilizes existing infrastructure • 20 mgd demand °^ ,x 4RMC 20 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 14 of 40 10 Page 12 of 24 Alt #2 Recycled Water to DIVIC Approximately 40 miles to CVP pump facility Could potentially utilize all CCCSD's effluent Augment - • • Supplies Bay Area Regional Reliability Partners (BARR) • CCWD EBMUDk,l,.iw+,. .-.. San Francisco PUC Alameda Co. WD Santa Clara Valley WD rnR� Zone 7 Marin Municipal WD Bay Area Water Suppliers & Conservation Agencies (BAWSCA) ;rY DSRSD PIP July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 15 of 40 11 Page 13 of 24 Recommended Next Steps from Wholesale Opportunities Study Ek- Initiate Discussions to Continue Evaluation Refinery RW exchange with CCWD for raw water IPR/DPR augmentation through EBMUD San Luis Delta Mendota Water Authority & Reclamation (Agriculture) Regional Reliability Partners IPR/DPR as a local reliable supply alternative CCWD Would serve as a critical partner in all alternatives through exchanges REFINERY RECYCLED WATER EXCHANGE PROJECT CONCEPT Martinez Refineries 4D,kaS4pp�y Los Vaqueros r Reservoir LOSE VAQUEROS; RESERVOIR■ EJ(PA PROOJE` i Transfer-Bethany Valley Water Contra Costa Pipeline South Bay (Santa Clara Water District (proposed) Aqueduct Valley Water (CCWD) District) CENTRALSAN July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 16 of 40 12 Page 14 of 24 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 . The three partner agencies are currently working to extend the termination date to June 30, 2022. ' 25 CENTRALSAN 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 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 17 of 40 13 Page 15 of 24 WATER EXCHANGE PROJECT — NEXT STEPS Extend the termination date of the current MOU to June 30, 2022 Presentation to Valley Water's Recycled Water Committee on July 28, 2021 Finalize the cost allocation Complete the Preliminary Feasibility Evaluation Report Meet with the US Bureau of Reclamation? Determine if the project will proceed to a more-detailed Feasibility-level Evaluation CENTRALSAN SATELLITE WATER RECYCLING FACILITIES (SWRFS) • Diablo Country Club (DCC) • MOUs executed in 2012 and 2015 • Requesting Demonstration Project • Moraga Country Club = • MOU executed in 2016 • Rossmoor • Recent request for an MOU • Others? (-Ten other golf courses in Central San's service area) CENTRALSAN July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 18 of 40 14 Page 16 of 24 4. CONSTRAINTS ASSOCIATED WITH RECYCLED WATER ' 29 CENTRAL SAN CONSTRAINTS ASSOCIATED WITH RECYCLED WATER A. Water Service Duplication Laws B. Cost and Cost Recovery C. Preference for Large Recycled Water Users D. Seasonal vs. Year-round Recycled Water Demand E. Finite Volume of Wastewater in Dry Months '30 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 19 of 40 15 Page 17 of 24 A. WATER SERVICE �=;-�---= DUPLICATION LAWS The water agencies within Central San's Service Area have purveying rights over the distribution of water: -` • East Bay Municipal Utility - 4 District (EBMUD) • Contra Costa Water District (CCWD) • City of Martinez • Dublin San Ramon Services District (DSRSD) ' 31 CENTRAL SAN EXAMPLE WITH EBMUD - LAMORINDA PROJECT A° [eNf1Yy WSfA ct,raw 1m3 .- 51nf C6TmCt -_ MARTINEZ CONCORD n � EBMUD Sp PLEWNT HILL In 1994, Central San purchased an abandoned WALNUT Shell fuel pipeline to distribute recycled water to the CREEK RNIM Lamorinda area for landscape irrigation. $ AYETTE �. Status: Project halted by EBMUD due to opposition during the public environmental review process. OAKLAN a MORAGA G, �A '32 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 20 of 40 16 Page 18 of 24 ZONE 1 EXAMPLE WITH CCWD — ZONE 1 RECYCLED WATER PROJECT M[CF • 1996 Agreement with CCWD sW1TUV�ISTR[Lr w " I"� • 14 miles of purple pipelines • —50 metered customer connections • Primarily landscape irrigation Fs�p 4 CONCORD • Truck Fill Program P 'T HILL : , — • Residential Fill Station , -° Alai ��``� CONTRA COSTA WALNUT WATER DISTRICT s CREEK Status: Central San owns and operates Zone 1 24 �•�+�w Hv 6•rww I CENTRAL SAN 33 B. COST AND COST RECOVERY • Production and distribution of recycled water is expensive. • Advanced tertiary treatment facilities are required. • Distributing recycled water to homes and parks "Wastewater is the requires underground piping. last new water supply in California." • New recycled water regulations are very stringent on monitoring requirements. • Beneficiary pays. • Central San's Board has requested that future Water 4.0recycled water projects be cost-neutral to - ratepayers. David See&S. 34 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 21 of 40 17 Page 19 of 24 C. PREFERENCE FOR LARGE RECYCLED WATER USERS • Central San's Board previously indicated a preference for projects with large recycled water demands over projects with small recycled water demands. REFINERY RECYCLED WATER EXCHANGE PROJECT CONCEPT XNMnIn ..,�.. . Aq . � '35 D. SEASONAL VS. YEAR-ROUND RECYCLED WATER DEMAND • Projects with year-round demand maximize Central San's potential opportunity to supply recycled water. • California Senator Hertzberg has attempted several pieces of legislation to ban wastewater discharges to the ocean/bays. • Zero discharge is very challenging because supply and demand are inverted. • There is no feasible means to store on-site (EBMUD or CCWD reservoirs would require a higher level (potable reuse) of treatment). • Central San's Board has favored projects with year-round over seasonal recycled water demand (limited to dry season recycled water demand (limited to dry season capacit�� '36 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 22 of 40 18 Page 20 of 24 E. FINITE VOLUME OF WASTEWATER IN DRY MONTHS • Seasonal recycled water demand is highest when WATER SUPPLY VERSUS WATER DEMAND influent wastewater flows are at their lowest. • Commitment to recycled water projects is governed by dry-season capacity. • Other factors may further reduce dry-season o-.. ___. ___ wastewater supply in the future. • Governor can issue orders for water conservation during droughts. • Senate Bill 606 (Hertzberg)and Assembly Bill 1168 (Friedman) require reduction in indoor water consumption. • Current proposal by Department of Water Resources is 47 gallons per person per day(gpcd)by 2025 and 42 gpcd by 2030. • Use of home gray water recycling is increasing. Central San's Board has favored projects with year- round demand over seasonal use of recycled water, limited to dry-season capacity. CFNTRAI SAN 5. SUMMARY OF CURRENT COMMITMENTS July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 23 of 40 19 Page 21 of 24 CURRENT COMMITMENTS • Plant Utility Water • Zone 1 • DERWA Diversion (Temporary) • Concord Community Reuse Project (Naval Weapons Station Redevelopment) — Will Serve Letter MOUS: • Refinery Recycled Water Exchange Project • Diablo Country Club SWRF • Moraga Country Club SWRF ' 39 C. POLICY QUESTIONS -� l 4 July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 24 of 40 20 Page 22 of 24 POLICY QUESTION #1 • Should staff continue in accordance with the previous Board direction given regarding the commitment to serve the Concord Naval Weapons Station Redevelopment? • This includes: • An additional Filter Plant infrastructure project (Phase 2 project to be financed by the others); • Central San is the producer and wholesaler. CCWD is the distributor and retailer; and • Committing approximately 2 MGD of dry-season recycled water supply to the first phase of the development by 2035 and up to 6.3 MGD of dry-season recycled water supply for the ultimate build-out of the development in 2040+. '41 CENTRAL SAN POLICY QUESTION #2 • Should staff continue in accordance with the previous Board direction given regarding continuation of the Refinery Recycled Water Exchange project? • This project has an MOU until June 30, 2022, which includes: • Finalizing the cost allocation • Completing the Preliminary Feasibility Evaluation Report �i4z CFNTPAL SAN July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 25 of 40 21 Page 23 of 24 POLICY QUESTION #3 • Should staff continue in accordance with the previous Board direction given regarding the MOU for the Diablo Country Club SWRF? A. Does the Board want to continue the MOU for the Diablo Country Club Golf Course for a cost-neutral SWRF Project? B. Does the Board want to consider granting "Demonstration Project" status to Diablo Country Club SWRF Project? • Starting with a single demonstration project would allow Central San to gauge impacts from this approach of diverting wastewater from the collection system and returning the process solids (waste activated sludge) before committing to additional SWRF Projects. '43 CENTRAL SAN POLICY QUESTION #4 • Should staff continue in accordance with the previous Board direction given regarding MOUs on Satellite Water Recycling Facilities for other golf courses? • Does the Board want to continue the MOU for the Moraga Country Club Golf Course? (Currently on hold — no communication since 2018.) 44 CFNTPALSAN July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 26 of 40 22 Page 24 of 24 POLICY QUESTION #5 • Should staff discuss or entertain new MOU requests for SWRFs for other golf courses? • Staff recently received a request from Rossmoor/Golden Rain Foundation to execute an MOU for a cost-neutral SWRF Project. • Other golf courses may express interest in similar MOUs. 45 CENTRAL SAN 7. QUESTIONS/DISCUSSION/DIRECTION CFNTPALSAN July 26, 2021 Special REEP Committee Meeting Agenda Packet- Page 27 of 40 23