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Home My WebLink About09.b. Update on Nutrients RegulationsItem 9.b. May 16, 2024 T O: HO NO R A B L E B O A R D O F D I R E C TO R S F RO M :L O R I S C HE C T E L , E NV I R O NME NTA L A ND R E G UL ATO RY C O MP L I A NC E D I V I S I O N MA NA G E R RE V IE WE D B Y:G R E G NO R B Y, D E P UT Y G E NE R A L MA NA G E R - O P E R AT I O NS R O G E R S. B A I L E Y, G E NE R A L MA NA G E R S UB J E C T: UP D AT E O N NUT R I E NT S R E G UL AT I O NS Attached is the Nutrients Regulations Update presentation. Strategic Plan Tie-I n G O A L TW O: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 3 - Be a partner in regional development of local water supply AT TAC HM E NT S : D escription 1. P resentation May 16, 2024 Regular Board Meeting Agenda Packet - Page 468 of 500 Page 1 of 12 1 Nutrients Regulations Update May 16, 2024 Greg Norby Deputy General Manager – Engineering & Operations Overview for Today •California State Water Resources Control Board (SWRCB) issuing the single most impactful regulation since the 1973 enactment of the Clean Water Act •Bay area wide investments of $12 billion (B) or more are required with 10 years to achieve compliance •Science not yet able to show the intended ecosystem benefits will be achieved for public’s investment •Central San asking for changes to Draft Order •Progress of 1st and 2nd Nutrient Watershed Permits •Impacts to Central San under Draft Order terms •Nutrients Compliance Roadmap •Near Term Actions •Outreach and Advocacy 2 May 16, 2024 Regular Board Meeting Agenda Packet - Page 469 of 500 Page 2 of 12 2 •Our Mission is to Protect Public Health and the Environment •Our Vision and Values support that Mission •Central San has indisputable record of commitment to our Mission •26 Years of National Pollutant Discharge Elimination System (NPDES) Compliance, one of 13 agencies nationwide •Lowest rate of sewer overflows in the state •Invested over $500 million (M) in the past 10 years •Investing $1B over the next 10 years for clean air, clean water, energy efficiency, and optimizing nutrient removal efficacy •Achieving this record while maintaining affordable cost of service to our community Central San’s Record of Commitment to Environmental Stewardship 3 •37 Publicly Owned Wastewater/Water Resource Recovery Utilities •Customers and Community Members of these Utilities •SWRCB •U.S. Environmental Protection Agency (EPA) •Non-Governmental Organization (NGO) such as San Francisco Baykeeper •Water Supply Agencies 4 Stakeholders for Nutrient Regulations May 16, 2024 Regular Board Meeting Agenda Packet - Page 470 of 500 Page 3 of 12 3 1st Nutrient Watershed Permit 2014 – 2019 •Collaboration with dischargers, San Francisco Estuary Institute (SFEI), and state •Evaluation of treatment optimization and upgrade opportunities •Annual Monitoring Reports •2018 "Nutrient Treatment by Optimization and Upgrade Study" 2nd Nutrients Watershed Permit 2019 – 2024 •Nutrient monitoring •Annual reporting •Scientific studies to develop Nutrient Management Strategy •Special studies to evaluate Nutrient Reduction Impacts of Natural Systems and Water Recycling •State signaled a regulatory framework based on “Planning Level Targets", credit for Early Actors5 Watershed Permit Overview •Courtesy Draft shared with Bay Area Clean Water Agencies (BACWA) Members in February 2024 •Intensive discussions by SWRCB, BACWA, NGOs, and EPA •Focus on state of science, timelines, and alternative regulatory frameworks to support maximum public benefits for investment •Central San meetings with senior SWRCB staff and separately with water agencies •Public Draft Tentative Order issued April 5, 2024, retained challenging terms 3rd Nutrient Watershed Permit Draft 6 May 16, 2024 Regular Board Meeting Agenda Packet - Page 471 of 500 Page 4 of 12 4 •40% reduction from 2022 baseline for nutrient loads bay-wide •10-Year Compliance Timeline of July 2035 •$12B (minimum) in capital costs to dischargers and Central San customers •Biggest regulatory move since Clean Water Act of 1973 •No significant state or federal funding assistance •$665M in capital costs for Central San •State will issue enforcement orders after 10 years •Data from single 2022 event coupled with in-progress model of massively complex systems to arrive at new limits 3rd Nutrient Watershed Permit Draft 7 Public Investment for Intended Benefits in Suisun 8 •Permit based on an acute dissolved oxygen (DO) threshold of 4 milligrams per liter (mg/L) •Less than one percent of Suisun Bay experiences a DO concentration less than 4 mg/L under 2022 event conditions •40% reduction scenario “benefit” is nearly indiscernible •Central San rate payers to invest $650M for no measurable benefit to the bay ecosystems Percent of geographic region below 4 mg/L dissolved oxygen acute thresholdGeographic Region 40% Dissolved Inorganic Nitrogen reduction BACWA scenarioCurrent 4%8%40%Entire Bay 3%85%92%Lower SF Bay 9%11%90%South SF Bay < 1%< 1%2%Central Bay < 1%< 1%< 1%San Pablo Bay < 1%< 1%< 1%Suisun Bay May 16, 2024 Regular Board Meeting Agenda Packet - Page 472 of 500 Page 5 of 12 5 9 Tentative Order •Stringent Final Effluent Limits •10-Year Timeline to Comply •Enforcement as Mechanism for Longer Compliance Schedule •Negates Ability to Move Forward with Multi-Benefit Projects •Reliance on Science Premature Proposed Adaptive Path •Best Management Practices •20-Year Timeline to Comply •Load Targets •Allow for Multi-Benefit Projects to be Developed •Further Develop Science to Ensure Reductions Achieve Intended Ecosystem Benefits 10-Year Compliance FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Treatment Plant $65,775,000 $84,425,000 $123,324,000 $123,675,000 $148,911,667 $143,816,667 $137,316,667 $132,366,667 $129,166,667 $130,666,667 Collection System $23,327,000 $34,002,000 $31,333,000 $31,625,000 $32,675,000 $29,875,000 $29,875,000 $30,030,000 $30,530,000 $30,530,000 General Improvements $5,235,000 $5,075,000 $4,525,000 $2,725,000 $2,725,000 $2,475,000 $2,475,000 $2,475,000 $2,475,000 $2,475,000 Recycled Water $250,000 $2,318,000 $3,318,000 $3,318,000 $3,068,000 $2,918,000 $2,718,000 $1,318,000 $6,825,000 $6,825,000 Contingency $5,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total CIP $99,587,000 $125,820,000 $162,500,000 $161,343,000 $187,379,667 $179,084,667 $172,384,667 $166,189,667 $168,996,667 $170,496,667 Percent of Baseline 123.4% 117.4% 152.2% 148.8% 176.8% 177.0% 178.7% 168.3% 164.7% 170.4% $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 10-Year Compliance Treatment Plant Collection System General Improvements Recycled Water Contingency FY 2024-25 (Current Proposal) $590M increase over current baseline Impact to Current 10-Year Capital Improvement Program (CIP) is Approximately $600M 10 May 16, 2024 Regular Board Meeting Agenda Packet - Page 473 of 500 Page 6 of 12 6 Impact on Projected Rates Over 20 Years 11 10 year compliance period results in 25% higher rates and debt. •$758M in new debt for 10-year compliance •25% higher rates in 10 years •$603M in new debt for 20-year compliance •Response letter to SWRCB submitted May 8, 2024 •SWRCB Hearing for adoption June 12, 2024 •Petition for abeyance; preserves legal and administrative options •Updated financial modeling for rates •Nutrients treatment roadmap development •Advocacy and outreach to seek alternative path •Legal Counsel consultation on litigation options 12 Near Term Pending Actions May 16, 2024 Regular Board Meeting Agenda Packet - Page 474 of 500 Page 7 of 12 7 Nutrients Management Road Map Objectives of Nutrient Management Road Map Project: •Identify optimal nutrient removal alternatives for Central San that incorporate future water recycling to augment the region’s water supply •Reducing nutrient discharge •Integrate with other ongoing capital projects to maximizing the lifecycle value of existing assets •Inform the development of a Board Nutrient Management Policy 13 Road Map Objectives Intensification Membrane Aerated Biofilm Reactor (MABR) & Densification Optimization of Treatment Systems Performance Spilt Stream Treatment Nature Based Solutions (Multipurpose Basins) New Treatment Facilities Water Reuse Partnerships Building Blocks of the Nutrients Road Map 14 May 16, 2024 Regular Board Meeting Agenda Packet - Page 475 of 500 Page 8 of 12 8 Overview of Central San’s Nutrient Management Roadmap Development Step 01 Step 02 Step 03 Step 04 Step 05 Define Project Goals, Issue Request for Proposal, Select Consultant and Peer Review Team Define Project Goals, Issue Request for Proposal, Select Consultant and Peer Review Team Identify optimization opport- unities and ways to maximize the value of existing assets Identify optimization opport- unities and ways to maximize the value of existing assets Refine best scoring alternatives and consider phasing, design, and construction Refine best scoring alternatives and consider phasing, design, and construction Narrow alternatives, conduct workshops, include peer review comments, and advance the best scoring alternative Narrow alternatives, conduct workshops, include peer review comments, and advance the best scoring alternative Develop Pre-Design Report and Board Nutrient Management Policy Develop Pre-Design Report and Board Nutrient Management Policy 15 Outreach to Central San Communities Developed Central San Foundational Elements: •Detailed talking points for all messaging •Calculations made for all financial impacts to communities served •Website created to host messaging, letters, graphics, and collateral for all external audiences •Central San homepage urging call to action •Infographics to share the Central San story of proposed nutrient regulation impacts •Concord costs and messaging to support partner outreach for city residents 16 May 16, 2024 Regular Board Meeting Agenda Packet - Page 476 of 500 Page 9 of 12 9 Outreach to Central San Communities Engagement: •Public comments made at May 2024 Mayor’s Conference •Discussions with city Councilmembers/Managers •Detailed Concord financial update regarding partnership costs •East Bay Leadership Council •Central San Academy Alumni Requests for Public Comment Letters specifically drafted with: •Financial impacts for each city/town •Financial impacts for each chambers •Communities/individuals inside and outside Central San’s service area 17 Outreach to Central San Communities Media: •Helped support placement of a nutrient story in East Bay Times with BACWA •Sit down interview with Lamorinda Weekly •Request call to action story in Rossmoor News Social Media: •Multiple posts with graphics, engagement, and calls to action on Nextdoor, X (formally Twitter), Facebook, Instagram, and LinkedIn 18 May 16, 2024 Regular Board Meeting Agenda Packet - Page 477 of 500 Page 10 of 12 10 Outreach to Central San Communities Social media posts 19 Outreach to Central San Communities Cost share infographic 20 May 16, 2024 Regular Board Meeting Agenda Packet - Page 478 of 500 Page 11 of 12 11 Outreach to Central San Communities 21 2-page flyer Outreach to Central San Communities 22 Website banner and web page May 16, 2024 Regular Board Meeting Agenda Packet - Page 479 of 500 Page 12 of 12