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HomeMy WebLinkAboutReal Estate, Environmental and Planning MINUTES 01-23-25LCENTRALSAN REGULAR MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT REAL ESTATE, ENVIRONMENTAL & PLANNING COMMITTEE MINUTES Thursday, January 23, 2025 9:00 a.m. C',nmmittaa Chair Barbara Hockett Member Tad Pilecki Guests: Kevin Davis, Black & Veatch Corporation (/eft after Item 4.a.) Derek Wrust, Black & Veatch Corporation (left after Item 4.a.) BOARD OF DIRECTORS: MICHAEL R. MCGILL President FLORENCE T WEDINGTON President Pro Tent BARBARA D.HOCKETT JEAN KUZNIK TAD J. PILECKI PHONE: (925) 228-9500 FAX.• (925) 372-0192 www.centralsan.org Staff. Roger S. Bailey, General Manager (arrived during Item 4.a.) Katie Young, Secretary of the District Edgar Lopez, Capital Projects Division Manager Lori Schectel, Environmental and Regulatory Compliance Division Manager Melody LaBella, Resource Recovery Program Manager Nitin Goel, Optimization Division Manager Blake Brown, Laboratory Program Administrator Colleen Henry, Environmental Compliance Program Administrator Eileen Hansen, Deputy Secretary of the District Karen DeLong, Administrative Services Assistant 1. Call Meeting to Order Chair Hockett called the meeting to order at 9:00 a.m. 2. Public Comments None. Real Estate, Environmental & Planning Committee Minutes January 23, 2025 Page 2 3. Committee Charter a. Review Committee Charter as set forth in Board Policy No. BP 013 — Standing Committee Protocols, Guidelines and Charters Ms. Young will remove the 2024 line on the President section. There were no other changes. COMMITTEE ACTION: Reviewed and recommended Board approval. 4. Items for Committee Recommendation to the Board a. Review draft Position Paper to authorize the General Manager to execute a professional engineering services agreement with Black & Veach Corporation (BV) in an amount not to exceed $2,400,000 for the Energy Management, District Project 100055 (Project) and find that the Project is exempt from the California Environmental Quality Act (CEQA) Mr. Goel introduced the guests from BV and reviewed the draft Position Paper included in the agenda materials. He stated that the project aims to quantify current District energy demands as well as 20 years from now, including consideration of energy generation and storage options. Chair Hockett asked how the Board action on NetZero would be integrated into this project, and how energy needs 20 years from now can be determined. Mr. Goel replied that this project will consider various greenhouse gas (GHG) reduction scenarios to aid the Board in determining if a Net Zero commitment or some other GHG reduction target is appropriate for Central San. In response to an inquiry from Chair Hockett regarding the role of the centrifuges, Mr. Goel responded that solids are blended in a tank and the resulting sludge is pumped to the centrifuges. In the centrifuges, the solids content is increased from three percent to 23 percent, de -watering the sludge. He stated that both centrifuges and cake pumps are included in the solids project replacement plans. Some other treatment plants that incinerate sludge are not concerned with recovering heat. Member Pilecki added that steam is not the most efficient way to recover the heat energy, which is one reason that other alternatives are being considered. Member Pilecki inquired why there is a loss of Metric Million British Thermal Units (MMBTU's) from the waste heat boiler. Mr. Goel explained that the primary function of the combined heat cycles is electricity production. Mr. Goel continued reviewing the presentation, highlighting the projects that are planned over the next 20 years. He stated that by reducing leaks and Real Estate, Environmental & Planning Committee Minutes January 23, 2025 Page 3 replacing pipes in the first aeration basin, there was a 10 percent reduction in air demand. Running the electric blowers requires electricity and may increase costs, especially as Pacific Gas & Electric (PG&E) costs continue to rise. One of the options that BV will evaluate as part of this energy management project is the conversion of steam to electricity. The benefit to electrical blowers is they are easier to operate and maintain compared to steam driven blowers. As the steam blowers are approaching the end of their useful lives, it is timely to consider alternatives. Member Pilecki inquired whether the new Substation 55 project (DP100040) will address the electrical safety issue previously discussed with the Board, to which Mr. Goel replied that it would. Chair Hockett asked whether the oxygen supply for the Membrane Aerated Biofilm Reactor (MABR) cassettes exists currently or will be additional. Mr. Goel responded that a small, controllable blower could be added for the cassettes, or it could be handled off our existing aeration system. Member Pilecki mentioned that there are two additional projects, recycled water and a regional biosolids facility, which will require an ability to be flexible with the need to accommodate anticipated increased energy demands. Mr. Goel agreed that it is important and stated that a separate strategy will be developed for these projects. Member Pilecki opined that those future energy needs should be anticipated now and integrated into the current projects. Chair Hockett asked if electrical wires will be put underground. Mr. Lopez replied that it was up to PG&E. Member Pilecki asked whether when this project is finished, the District could operate as a self-contained entity. Mr. Goel added that a third generator could be considered for complete electrical self-sufficiency. Ms. LaBella continued reviewing the presentation, beginning with anticipated greenhouse gas emissions reduction. She explained that BV was consulted to evaluate three greenhouse gas reduction scenarios (50%, 75% and 100%) and to estimate the associated cost, so that the Board can make a fully informed decision on a potential Net Zero or greenhouse reduction commitment. Chair Hockett stated that the Green New Deal has been dismantled and inquired how that would affect planning going forward. Mr. Davis shared that BV's Government Affairs team believes, for now, that plans in California already in place will continue. Member Pilecki added that $500 billion will be invested in artificial intelligence (Al) resulting in a projected energy shortage of about 12 percent in 30 years. Mr. Davis stated that BV has developed large data center sites, which include building their own power facilities to Real Estate, Environmental & Planning Committee Minutes January 23, 2025 Page 4 support the sites. Member Pilecki opined that this is timely for the District as energy costs are likely to increase considerably. Ms. LaBella shared that as part of this work the Board's Energy and Climate Change policies will be modified accordingly to match the Board's decisions on this project. Mr. Goel resumed the presentation review, discussing the project approach, schedule, and tasks. Member Pilecki asked what the efficiency of the steam turbine generator would be compared to today's current state. Mr. Goel stated that the steam turbine generator operates with an estimated efficiency of ten to fifteen percent, with the remaining energy lost during the conversion process. However, he emphasized that integrating electrical energy will be a transformative improvement. He further clarified that the primary objective is to optimize the system for more efficient energy conversion into electrical power. The District, working with BV, will be considering a full range of options and will plan accordingly. Member Pilecki mentioned problems on a previous project with BV and asked what BV and staff would do to ensure the issues do not recur. Mr. Davis assured the Committee that this project would not have similar issues and that he is committed to ensuring a good experience and that the right resources are provided for this project. Mr. Goel responded that staff will employ the best project management practices and conduct weekly meetings with BV. Mr. Bailey stated that a clear scope change process is crucial for success and is in place for this project. Mr. Lopez added that project planning and expectations for all parties will be clear and contracted. Mr. Goel added that an independent consultant, Brian Goldman, who has worked with the District for over two years is an electrical subject matter expert who is trusted and available. Mr. Lopez also stated that there are employees involved who are being developed. Chair Hockett requested that staff be included in the project to grow our internal expertise, so that we don't have to rely solely on external consulting resources. Mr. Goel continued with the financial impacts section of the presentation. Member Pilecki stated that as some energy projects had been deferred from the ten-year Capital Improvement Plan window, this will be an opportunity to re-evaluate. Member Pilecki requested that the recycled water and biosolids projects be included in the Position Paper as well as the integration and development of the electrical team into the project. COMMITTEE ACTION: Recommended Board approval with suggested additions. Real Estate, Environmental & Planning Committee Minutes January 23, 2025 Page 5 5. Other Items a. Receive an update on the most recent meeting of the Bay Area Clean Water Agencies (BACWA) Ms. Schectel advised that the last Executive Board Meeting was on Friday, January 17, and the next will be on February 21. Key topics covered at the January meeting included: • BACWA Communications Strategy The Bay Area Pollution Prevention Group (BAPPG), which is a full BACWA Committee, focuses on pollution prevention communications and has a National Pollutant Discharge Elimination System (NPDES) nexus. A recently added ad -hoc communications committee supports communications on nutrients and the value of water and wastewater treatment. The goal is to have the ad -hoc committee become a fully supported committee in the future and for the two to work together on overlapping issues. Focus areas for the ad -hoc committee include wastewater basic communications and resource recovery. The focus for the BAPPG spring campaign is Per- and Polyfluoroalkyl Substances (PFAS). • Per- and Polyfluoroalkyl Substances (PFAS) In December the Environmental Protection Agency (EPA) distributed a draft Human Health Water Quality Criteria focused on human cancer risk. BACWA will be working on comments, and we will be discussing this with the regional board at our next joint meeting in the spring. On January 14, the EPA released their Risk Assessment of Perfluorooctanoic acid (PFOA) and Perfluorooctane sulfonic acid (PFOS) in sewage sludge. This could set the stage for future regulatory actions. The EPA's proposed methods update rule would bring new PFAS analytical methods, but are not yet Clean Water Act approved. Senate Bill 903, a ban on PFAS in products where avoidable, will likely be re -introduced this year. The EPA's planned influent PFAS study survey has not yet been distributed so it is unlikely that it will come out. The Bay Area Air Quality Management District (BAAQMD) has rebranded to Bay Area Air District (BARD). The quarterly collaborative workgroup meeting with BACWA was held on Monday, January 13. One focus of Real Estate, Environmental & Planning Committee Minutes January 23, 2025 Page 6 discussion was the slow pace of permitting. BAAD are hiring more staff and working on ways to ensure timeliness. The annual regulatory update, including a more in-depth discussion of potential regulatory implications, will be presented to this Committee in March. • Nutrients The San Francisco Public Utilities Commission (SFPUC) is working to get a coalition of BACWA agencies together to help acquire funding for nutrient reduction projects so that all costs do not fall on ratepayers. SFPUC will be managing the process as they have resources available for this effort which may take five years or more to see funding. The first major Nutrient Permit Compliance milestone is coming out this week. A request for information from HDR will be due from agencies to the Regional Water Board on February 19, 2025. The Nutrient Science Program will be hiring a new program manager to help ensure better communication and organization. Recent and potential upcoming funding will also help move forward additional scientific studies and communications. • BACWA Annual Meeting This meeting will be held on May 2, 2025 at the David Brower Center in Berkeley. In addition to regular topics, it may include a Pollution Prevention Panel and a Climate Change and Emergency Response Panel which would be timely considering the recent fires in Southern California. COMMITTEE ACTION: Received the update. 6. Announcements Ms. LaBella announced that the solar array on the Lagiss Property is connected to the grid, has received its Permit -to -Operate from PG&E, and is now generating power credits for Central San. 7. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items COMMITTEE ACTION: Received the list and provided input to staff. Real Estate, Environmental & Planning Committee Minutes January 23, 2025 Page 7 7. Future Scheduled Meeti Thursday, February 13, 2025 at 9:00 a.m. Thursday, March 13, 2025 at 9:00 a.m. Thursday, April 24, 2025 at 9:00 a.m. 8. Adjournment —at 11:01 a.m.