Resource Recovery Program Annual Update FY13

Transcription

1 Resource Recovery Program Annual Update FY13 Sustainability/Energy Committee October 22, 2013 W:\NAB\ESD\R2\EBMUD Board\Board Memos and Presentations\CY 2013\WW_Resource_Recovery-Update_FY13

2 Presentation Overview FY13 In Review The Competitive Landscape Food Waste Updates The Year Ahead

3 FY13 in Review R2 Revenue Budgeted $7.3M Actual $9.3M (up slightly from FY12 of $9.1M) Low strength waste (brines and other non-energy producing liquids) make up ~60% of revenues Energy Power generation of 5.5MW; increase of 25% over FY12 Value of R2 power estimated at ~$2M 4.5 Megawatt Turbine was not operational for full year

4 R2 Tip Fees in Review

5 Renewable Energy Production

6 Competitive Landscape Competition from other WWTPs: Fresno and Sacramento Regional County Sanitation District were the first to become competitive, accepting a variety of wastes Napa Sanitation District accepts Fats Oils and Grease (FOG) & winery waste Central Marin Sanitation District - FOG waste and is starting local food waste

7 Food Waste Updates Food Waste - the largest local, contractable, and therefore sustainable source of organics Central Contra Costa Solid Waste Authority (CCCSWA) CURRENT 8 tons per day commercial source separated organics (CSSO) FUTURE Contracts expire in 2015 Currently reviewing new franchise proposals Up to 15 tons per day CSSO District is not a franchise proposer but has submitted a draft term sheet to CCCSWA to continue processing services Note: CCCSWA-EBMUD program selected as one of 2 finalists for 2013 Sustainable Contra Costa s government award (award will be announced Oct 30)

8 Food Waste Updates Recology CURRENT 15 tpd San Francisco Multi-Family sector organics Contamination a major hurdle to expansion of this sector FUTURE Major focus for San Francisco is Multi-Family organics Received City of Oakland and StopWaste okay for full-scale facility construction; next step is CalRecycle solid waste permit PROPOSED RECOLOGY PILOT 2- year, minimum 25 tpd CSSO pilot scale facility using Doda technology District to provide land (0.8 acres), non-potable water, and power to pilot Recology to pay $37/ton tip fee Contract amendment targeted to come to Board in November

9 Food Waste Updates City of Oakland FUTURE Up to 80 tons per day CSSO starting in 2015 Anticipated to select Waste Management or California Waste Solutions as franchisee in Dec/Jan City Council has a stated interest in EBMUD AD for organics City staff suggested that RFP respondents and EBMUD talk about processing options; District Staff engaging with respondents District Staff is exploring opportunities to make a full (preprocessing and processing) proposal to the City to have material directed to EBMUD

10 FY14 Outlook Grow brine and other low strength revenue producing waste streams (~60% of R2 tip fee revenue) Focus on Food Waste processing contracts will continue

11 Updated Energy Policy Sustainability/Energy Committee October 22, 2013

12 Overview GHG Overview Summary GHG Reduction Goal Plan to Meet Goal Next steps

13 Sources of GHGs

14 Committee Meeting Summary Sustainability/Energy Committee (July 23) Carbon-free for indirect emissions 50 percent reduction in direct emissions Purchase of TRECs will support development of local renewable energy projects and jobs Finance Committee (September 24) Concurred with recommendation Sustainability/Energy Committee District will select least-cost option to meet GHG reduction goals

15 Existing vs New Policy Existing Policy Considers only renewable energy Focuses on use and generation of renewable energy Establishes annual $200,000 cash flow limit on new renewable energy projects New Policy Considers all energy use Focuses on use, generation and purchase of renewable energy Projects must provide economic benefit and projects to reduce GHG emissions compared against the purchase of TRECs Establishes long-term GHG emissions reduction goals Least-cost option will be selected to meet GHG reduction goals

16 Revised Energy Policy Goals Indirect Emissions: Carbon-free by 2040 Direct Emissions: 50% reduction by 2040 ~$1.8M for 2013 to 2040 based on current TREC price ~$168,000 for the last year based on current TREC price 50,000 45,000 GHG Emissions (MT CO2) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Est GHG Emissions PG&E Offset REC & GHG Projects Cap - 100% by Emissions

17 Indirect Emissions Programs and Projects Efficiency upgrades (e.g., pumps and lighting) Renewable energy projects (e.g., photovoltaic and inconduit hydropower) Community Choice Aggregation programs (e.g., Richmond CCA) Expanded use of WAPA power Water conservation Purchasing tradable renewable energy credits (TRECs)

18 Indirect Emissions Programs and Projects TRECs currently the least cost and easiest to implement option TRECs baseline for comparison Criteria for selecting programs/projects Criteria 1: Project or program provides an economic benefit to the District Criteria 2: If further reduction in GHG emissions is necessary, compare the cost per lb CO 2 reduction to the cost of purchasing TRECs and select the least cost option

19 Briones In-Conduit Hydro Capture energy from water released from Briones Reservoir to Orinda WTP Annual generation ~1,100 MWh 216 tons GHG reduction annually SGIP grant (up to $445,000) Estimated cost $1.4M to $1.8M years payback with grant Preparing RFP for design (Nov 2013)

20 Camanche PP PV System 5 MW PV System covering 5 acres Annual generation ~ 12,500 MWh 2,200 tons GHG reduction annually Estimated cost $17.5M Evaluate other locations and options to determine if there is an economic benefit

21 Direct Emissions Programs and Projects Federal CAFE standards Reducing vehicle miles traveled Alternative energy sources Work with industry to increase overall vehicle fuel economy and efficiency Purchasing carbon offsets

22 Direct Emissions Programs and Projects Equipment Type Passenger and Light Trucks Percent of Fleet Project Percent Reduction Overall Fuel Reduction 63% 55% 35% Large Trucks 20% 50% 10% Heavy Equipment 17% 30% 5% Strategy Federal CAFE standards expected to increase 50% by 2040 compared to Reduce vehicle miles traveled, improved vehicle efficiency, alternative fuel, electric PTO Improved vehicle fuel efficiency, alternative fuels TOTAL 100% 50%

23 Carbon Sequestration and Offsets Capture and long-term storage of CO2 Many types of sequestration (e.g., reforestation) Carbon offset similar to REC but used to offset Scope 1 emissions Participate in voluntary carbon offset market to meet GHG emissions goal

24 Next Steps Present revised Energy Policy to Board of Directors for consideration

25 Questions