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HomeMy WebLinkAboutItem 9 PPP 05-13-2020 Administration Committee - Interim Food Waste Facility_REVISEDInterim Food Waste Receiving Facility, P2-124 Pricing and Policy Discussion Administration Committee Meeting May 13, 2020 •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 Objectives History STATE MANDATES 2011-2020 OCSD BIOSOLIDS MASTER PLAN 2015 RECOMMENDATION P2-124 PROJECT DESIGN 2018-2020 OCSD 2019 STRATEGIC PLAN Location –Plant No. 2 Main Entrance Food Waste Facility Highlights •10-15 Year Life •150 Wet Tons/Day •5-6 Trucks/Day •15% Gas Production Increase Facility Process Hauler Truck Facility Process Offload Pump Storage Tank Hauler Truck Facility Process Offload Pump Mixing Pump Storage Tank Hauler Truck Facility Process Offload Pump Mixing Pump Transfer Pump Storage Tank Existing Digester Tanks Hauler Truck Facility Layout Offload Pumps Mixing Pumps Transfer Pumps Storage Tanks Existing Digester Tank Facility Layout LACSD Pilot Program Offload Pumps Mixing Pumps Existing Digester Tank Transfer Pumps Storage Tanks Project Budget & Schedule Schedule Advertise Bids July 2020 Construction Award Nov 2020 Facility On-line Apr 2022 Budget Construction $3.3M Non-construction $2.2M Contingency $0.8M Total Project $6.3M 2019 Strategic Plan Tipping Fee Policy Question: How should OCSD structure the tipping fee for digestion of food waste? Tipping Fee Basis •Tipping fee cannot exceed OCSD costs •Tipping fee transparency and notification to member agencies •Different fee for food waste from outside OCSD’s service area Cost Recovery -Overview Cost Recovery •Capital •O&M •New Facility •Impact to Existing Facilities •Benefits to OCSD •More Gas = Less SCE Cost Recovery –Capital, O&M Costs ($/ton) 5-Year Capital Recovery 10-Year Capital Recovery Capital Costs $23 $12 O&M Costs $18 $18 Subtotal $41 $30 Cost Recovery –Benefits of Extra Gas Quality Food Waste = Less SCE Electricity Purchased 5-Year Capital Recovery 10-Year Capital Recovery Savings Range ($2-9)($2-9) Electricity Savings ($4)($4) Tipping Fee -Total Costs ($/ton) 5-Year Capital Recovery* 10-Year Capital Recovery Capital Costs $23 $12 O&M Costs $18 $18 Electricity Savings ($4)($4) Tipping Fee $37 $26 Comparable Agencies Agency Tipping Fee and Tonnages Vendors and Feedstock Onsite Food Process Contract Term Cost of Project Cost Recovery OCSD - Planned $26 -$37/ton: 150 tpd TBD NO TBD $6.3M YES (Construction and O&M) LACSD Current $25/ton: 250-300 tpd –Direct discharged into headworks (no-co- digestion) 8 Vendors Preprocessed Food Waste and FOG NO Year to Year N/A N/A LACSD Planned Project (2021) $25-$40/ton: 100- 150 tpd Co-Digestion 3 Vendors Preprocessed Food Waste NO TBD $877,500 Repurposing Existing Food Waste Receiving Station. YES (Construction and O&M) –Time Length TBD Other Similar Agencies Agency Tipping Fee and Tonnages Vendors and Feedstock Onsite Food Process Contract Term Cost of Project Cost Recovery East Bay Municipal Utility District $50/ton: 15-70 tpd Central Contra Costa County Solid Waste Authority - Food Waste YES (Additional Processing) 10 Years (2014-2024) with two one-year extensions $5M YES only O&M Central Marin Sanitation Agency $23.90/ton: 15-70 tpd Marin Sanitary Service - Food Waste YES (Additional Processing) 10 Years (2016-2026) with three one-year extensions $7.8M YES (Const. and O&M) 10 year pay back Other Similar Agencies Agency Tipping Fee and Tonnages Vendors and Feedstock Onsite Food Process Contract Term Cost of Project Cost Recovery Encina Wastewater Authority $0.035/gallon + $45,000/year (CPI) 50K-80K gallons/week Stone Brewery Waste and Other Vendors FOG NO 8 Years (2015- 2023) $2.3M YES (Construction and O&M) 4 year back City of Petaluma (Under Construction) $0.04/gallon Clover Stornetta Dairy and Petaluma Poultry Processors NO TBD $6M YES (Construction and O&M) 4 year back – Includes $3M Grant and Energy Credits Summary Tipping Fee for Preprocess Food Waste for Co-Digestion 0 10 20 30 40 50 60 OCSD LACSD EBMUD Central Marin $26-$37/ton Est. Range $25-$40/ton $50/ton $24/ton Service Area and Solid Waste Providers 125 3 City Member Agencies Republic/Rainbow CR&R Waste Management Organic Processing Fees: •Rate increases have been applied •Organic Processing Fee: $100.10/ton (Republic) Potential Food Waste Slurry Providers Food Waste Slurry •Republic Services •Waste Management Tipping Fee Deal Points •Term duration of agreement •Quality (specs) of the food waste slurry Next Steps •Set OCSD food waste tipping fee •Secure agreement(s) with potential vendor(s) •Construct food waste receiving station •Start receiving food waste Outcome of Tipping Fee Analysis How should OCSD structure the tipping fee for digestion of food waste? •5-Year Capital Recovery option-$37/ton (Interest 3%) •10-Year Capital Recovery option-$26/ton •OCSD will approach solids waste providers based on an open and a fair process to secure food waste slurry Questions Thank You