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HomeMy WebLinkAboutItem 10 PPP 05-06-2020 Operations Committee - Interim Food Waste Facility � Interim Food Waste i N � �J Receiving Facility, P2 = 124 Pricing and Policy Discussion WWI ONE ■ :Y '! � Operations Committee Meeting ■ ■ � ,� J F% � May 6 , 2020 �y J�j -- 0011ft-Qt--A %7L-P- ,- Objectives • Help cities divert food waste from landfills • Utilize existing OCSD infrastructure • Recover energy and organics from food waste • Provide a cost-effective option for ratepayers ;t c. STATE OCSD qw MANDATE MASTER ' PROJECT STRATEGIC PLAN 2011-2020 RECOMMENDATION DESIGN ,loom Location Plant No . 2 ANN ; , y r ll Food Waste t - a- 1, ri b p a - i �- Main Entrance � � QI1 .✓4. I' 'T 'r.= r „ ' . 1 u 1. Fac 'ility Highlights • 10- 15 Year Life • 150 Wet Tons/ Day • 5-6 Trucks/ Day TO • 15 % Gas Production Increase � \kA, AMMAI ;t c. • ,`P _ ' ac rocess , �r Facility Process Storage Tank Hauler Offload Truck Pump �r Facility Process Storage Tank Hauler Offload Mixing Truck Pump Pump r Facility Process Storage Tank Hauler Offload Mixing I Transfer Truck Pump Pump Pump L Existing Digester Tanks Facility Layout Offload �► Existing •� r Pumps �' Digester • ' Tank i Transfer Pumps _ • 1 Storage - ® Tanks • Mixin � g Pumps t I �+ Facmility Layout Offload Existing • � y � � � Digester ester � , , g ' L Tank Transfer Pumps 1 • _ I 0 4MK438,1 Storage - r ® Tanks LACSD Pilot Program r_ • Mixing J \ or _ I Pumps t Y Project Budget & Schedule 7.1�Vlpz_ 11 Bud get....f'r Schedule Construction $3 . 3M Advertise Bids July 2020 Non-construction $2 . 2M Construction Award Nov 2020 Contingency $0. 8M Facility On-line Apr2022 Total Project $693M 2019 Strateg 'IC Plan WA P"r Tipping Fee Policy Question : How should OCSD structure the tipping fee for digestion of food waste ? Obleft—Qt--A Tipping Fee Basis • Tipping fee cannot exceed OCSD costs • Tipping fee transparency and notification to member agencies • Different fee for food waste from outside OCSD 's service area Cost Recovery = Overview Cost Recovery • Capital • O & M • New Faci l ity * Impact to Existing Facilities * Benefits to OCSD * More Gas = Less SCE C R � c t I O & M Ost ecovery api a MP costs ($/ton ) 5-Year Capital 1 0-Year Capital Recovery Recovery Capital Costs $23 $ 12 O&M Costs $ 18 $ 18 Subtotal $41 $30 L��11 Cost Recovery "1 NN. Benefits of Extra Gas s Quality Food Waste = Less SCE Electricity Purchased 5-Year Capital 1 0-Year Capital Recovery Recovery Savings Range ($2-9) ($2-9) Electricity ($4 ) ($4 ) Savings T F Tota I ipping ee Costs ($/ton ) 5-Year Capital 1 0-Year Capital Recovery* Recovery Capital Costs $23 $ 12 O&M Costs $ 18 $ 18 Electricity ($4 ) ($4 ) Savings Tipping Fee $37 $26 1 Comparable Agencoies 'iipping Fee Vendors Onsite Contract Cost of Project Cost Recovery • Tonnages and Food Term I M Feedstock Process OCSD - $41/ton (1-5 Years) TBD NO TBD $6.3M YES Planned $18/ton (6-10 (Construction and O&M) Years): 150 tpd LACSD $25/ton: 250-300 8 Vendors NO Year to N/A N/A Current tpd — Direct Preprocessed Year discharged into Food Waste headworks (no-co- and FOG digestion) LACSD $25-$40/ton: 100- 3 Vendors NO TBD $877,500 YES Planned 150 tpd Preprocessed Repurposing (Construction and O&M) Project Co-Digestion Food Waste Existing Food —Time Length TBD (2021) Waste Receiving Station. L im '11ar Agen Other S cies �- LA n7 9PqTipping Fee Vendors Onsite Food Contract Cost of Cost and Tonnages and Feedstock Process Term Project Recovery ===WIIL_ Jkl -.0m- AAMMOL A& I _JM ' -M East Bay $50/ton: 15-70 tpd Central Contra Costa YES (Additional 10 Years $5M YES only Municipal County Solid Waste Processing) (2014-2024) O&M utility Authority - with two District Food Waste one-year extensions Central $23.90/ton: 15-70 Marin Sanitary Service - YES (Additional 10 Years $7.8M YES Marin tpd Food Waste Processing) (2016-2026) (Co nst. Sanitation with three and O&M) Agency one-year 10 year extensions pay back L ►� 1 im '11ar Agen Other S cies [ANN . FJ.JW '7 . Tipping Fee Vendors Onsite Food Contract Term Cost of Cost Recovery • Tonnages and NOR Feedstock • Project a __a —AML Encina $0.035/gallon + Stone Brewery Waste NO 8 Years (2015- $2.3M YES Wastewater $45,000/year (CPI) and Other Vendors 2023) (Construction Authority FOG and O&M) 4 50K-80K year back gallons/week City of $0.04/gallon Clover Stornetta Dairy NO TBD $6M YES Petaluma and (Construction (Under Petaluma Poultry and O&M) 4 Construction) Processors year back — Includes $3M Grant and Energy Credits Summary Tipping Fee for Preprocess It : 1�1` Food Waste for Co=Digestion 60 50 $50/ton $41/ton (First Est. Range Five-Years) $25-$40/ton 40 30 $18/ton (Next $24/ton 20 Five-Years) 10 0 OCSD LACSD EBMUD Central Marin 0011ft-Qt--A Serv 'ice Area and Solid Waste P ov 1 rc r Ode s :73R° LC :�- City Member Agencies Organic Processing Fees: •p`� � Awwwc 6R.LA REPO/IM O� • Rate increases have tF—Rf PU°LIC.a___ ...e �•y r ItR A R/PU/t/C b-4 � y�R�wkM been applied cr�sr� 4 ����.w.�K �c r�s ra u 3 *RIMX �RA"`f!"`#C MA"S'ER � �%-� Organic a n i c Processing c e s s i n g g QRAINBOW 5 Fee: $ 100. 1 0/ton �ORAINBOW "crts cr�s (Republic) / N - W %2 R[PV/tic 0 R&R W (!)RAINBOW ■ Republic/Rainbow CR&R Waste Management Potential Food a e Slurry CIO, ►� Prov 'ider Food Waste Slurry F • Republic Services Fes].] �• �1 T C(hA REPU/LAC +' ��D RF►U/LN: REPUBLIC • Waste Management /... LIC �. BRA wrnr,�a�e.� dt► - RT..Fw�euC �R7�w.MVC �L Vj ba � Q��RUF'I-U/UC 6-An q-RA wFPueue a8 cr�s qb71 Rff f n! C TM OUSTER �� W W N1. _.._ ._.. QRAINBOW rQRAINBOW cr=ts cr�s N c rq sR - W _.v AREPU/LIC CR&R qa W ORAINBOW Tipping Fee Deal Points • Term duration of agreement • Quality ( specs ) of the food waste slurry • Price Change - Regulatory Milestones Obtaft—Qt--A Next Steps Yi . • Set OCSID food waste tipping fee • Secure agreement(s ) with potential vendor(s ) • Construct food waste receiving station • Start receiving food waste 0 f T A I utcome o ipping ee na ysis How should OCSD structure the tipping fee for digestion of food waste ? • 5-Year Capital Recovery - $ 37/ton ( Interest 3 % ) • Once capital costs have been recovered , reduce tipping fee to O& M only cost ($ 18/ton est . ) • OCSID will approach solids waste providers based on an open and a fair competitive process to secure food waste slurry 1 © l � O 4. k6i !✓In i ) R et,_