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Home My WebLink AboutCM CMSA Methan Capture-food Waste to Energy Technologyn. .::54orl 1� &4 , Agenda Item No: Meeting Date: July 6, 2009 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: City Manager Prepared by: Stephanie Lovette, Development Coordinator City Manager Approval: SUBJECT: RESOLUTION OF THE SAN RAFAEL CITY COUNCIL SUPPORTING CONTINUED RESEARCH ON UTILIZING METHANE CAPTURE -FOOD WASTE TO ENERGY TECHNOLOGY AT THE CENTRAL MARIN SANITATION AGENCY FACILITY RECOMMENDATION: Adopt Resolution. BACKGROUND: In 2005, Mayor Boro became one of the initial signatories of the U.S. Mayors Climate Protection Agreement. The City of San Rafael has implemented a number of programs and projects to address climate change. On April 20, 2009, the City Council approved a Climate Change Action Plan. As part of the City's efforts to address climate change, City staff is working with partner agencies to develop new projects and technologies to mitigate or reduce the local carbon footprint, including reducing or recapturing methane gas. The City's Climate Change Action Plan Policy L-13 addresses converting organic waste to energy. One source of methane in Central Marin is commercial food waste. Marin Sanitary Service ("MSS") estimates that 12% of the local solid waste stream is made up organic waste including commercial food waste. Approximately 50% of the solid waste, after recyclable materials are removed, that is transported for disposal at Redwood Landfill is food waste. The Central Marin Sanitation Agency ("CMSA") has been recovering methane generated in their wastewater treatment digesters and using that biogas to provide power for their facilities. Currently, 50% of CMSA's power is generated from this biogas. The City of San Rafael accepted a $20,000 grant from Pacific Gas and Electric ("PG&E") on March 17, 2008 to develop a report on methane capture feasibility in the Central Marin area. CMSA funded an additional $25,000 for the study. City and CMSA staff prepared a Request for Qualifications, interviewed qualified firms and chose Kennedy/Jenks Consultants to undertake the work. Kennedy/Jenks completed their work and presented their findings to the CMSA Board on January 13, 2009 and to the San Rafael City Council on February 2, 2009. FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paee: 2 The study investigated the feasibility of processing local commercial food waste with CMSA's existing anaerobic digesters to be used as fuel for the engine generator to produce energy to power CMSA facilities. This proposed food waste processing system would be similar to the system utilized by the East Bay Municipal Utilities District. ANALYSIS: The study identified that the City of San Rafael, CMSA and the Marin County community would gain the following benefits from using food waste to generate biogas. • Reduce greenhouse gas emissions locally in Marin County • Divert up to 15 tons of commercial food waste from Redwood Landfill with a possibility of additional future diversion from residential food waste • Provide over 50,000 cubic feet per day of methane biogas and 230KW of renewable energy to the CMSA facilities • Enable CMSA to achieve greater energy self sufficiency and potentially export excess power, estimated to be up to 200 kilowatts • Maximize the use of CMSA existing infrastructure Since the February presentation, the following actions have occurred: • CMSA Board approved a work plan for the pre -design of the project • CMSA received letters of interest to provide the required food waste from MSS and Mill Valley Refuse Service • CMSA received a legal opinion that CMSA has the statutory authority to pursue the project • CMSA approved a pre -design contract with an engineering firm • Several grant sources have been identified for the facilities design and construction • Project revenue sources have been identified • Preliminary discussions held with PG&E regarding purchasing energy that is generated in excess of CMSA plant operation requirements The City of San Rafael was the lead agency on the study and received the initial PG&E grant. The San Rafael City Council received a report on the results of the study on February 2, 2009. At that time, it was noted that San Rafael will have planning and design approval over the capital improvements at both the CMSA and MSS facility. Now that the CMSA Board has approved the work plan, CMSA staff plans to offer presentations on the project concept to cities and towns in their service area. To date, CMSA staff has given presentations on the concept to the cities of San Rafael, Larkspur and Corte Madera, and the Town of Fairfax. Larkspur has passed a resolution supporting the project exploration and Fairfax and Corte Madera will be considering a resolution of support in the near future. FISCAL IMPACT: None to the City of San Rafael at this point. The estimated cost of the food separation facility proposed to be located at MSS is $1.1 Million, with a net annual savings of $185,000 per year and a payback of 5.5 years. The estimated capital cost of the food waste processing facility at CMSA is $2.7 Million with a net savings of $450,000 per year and a minimum payback of 3.8 years and a maximum payback of 6 years, depending on revenue streams. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2e: 3 The City of San Rafael has an Agreement with MSS to provide refuse and recycling collection services within the City and the City establishes the maximum rates collected by MSS for such services. Therefore, MSS must also provide costs estimates and rate impacts of this program for the City's approval. OPTIONS: Staff recommends the City Council adopt the resolution supporting continued research on utilizing methane capture -food waste to energy technology at the CMSA facility. The City Council could take the following actions: • Reject the Resolution. Staff does not recommend this option because the food to waste technology has the potential to implement the City's Climate Change action plan, reduce the County's carbon footprint and provide additional alternative energy sources. • Direct staff to modify the Resolution. ACTION REQUIRED: Adopt resolution. RESOLUTION NO. RESOLUTION OF THE SAN RAFAEL CITY COUNCIL SUPPORTING CONTINUED RESEARCH ON UTILIZING METHANE CAPTURE -FOOD WASTE TO ENERGY TECHNOLOGY AT THE CENTRAL MARIN SANITATION AGENCY FACILITY WHEREAS, in 2005, Mayor Boro became one of the initial signatories of the U.S. Mayors Climate Protection Agreement on behalf of the City of San Rafael; and WHEREAS, the City of San Rafael has implemented a number of programs and projects to address climate change and on April 20, 2009, the City Council approved a Climate Change Action Plan; and WHEREAS, commercial food waste in local landfills creates methane gas that contributes to global warming, the City of San Rafael seeks new technology to reduce the methane gas impact; and WHEREAS, the Central Marin Sanitation Agency (CMSA), a regional wastewater agency, provides wastewater treatment and disposal service to the City of San Rafael and Marin Sanitary Service (MSS), a solid waste hauler and leader in recycling, provides solid waste collection and disposal service to the City of San Rafael pursuant to a Franchise Agreement; and WHEREAS, the Central Marin Sanitation Agency is capturing methane produced in two anaerobic digesters and is utilizing the methane to power a portion of the plant and Marin Sanitary Services has undertaken a pilot project to compost food waste; and WHEREAS, Pacific Gas and Electric awarded a $20,000 grant to the City of San Rafael to fund a report on methane capture feasibility, and the Central Marin Sanitation Agency contributed an additional $25,000 for the study; and WHEREAS, a Request for Proposal was issued by the City, in conjunction with the Central Marin Sanitary Agency, and eligible consultants were identified and interviewed and Kennedy/Jenks Consultants was deemed to be the most qualified consultant; and was subsequently hired to undertake such study, and WHEREAS, the study was completed and the findings that commercial food waste could be collected in San Rafael and other parts of the CMSA service area and processed with existing infrastructure at CMSA to produce energy were presented to and accepted by the San Rafael City Council on February 2, 2009; and WHEREAS, the CMSA Board of Directors has approved the continued research, exploration, and engineering study of the methane capture -Food -to -Energy (F2E) concept; and WHEREAS, a future F2E project, if implemented, would help implement the City's Climate Change Action Plan Policy L-13 to convert organic waste to energy and would provide many benefits to the community including: diverting food waste from the Redwood Landfill, reduction of greenhouse gas emissions in San Rafael and Marin County, energy independence for CMSA, reduction of CMSA operating costs, and the potential to export energy to the utility grid. THEREFORE BE IT RESOLVED, that the City Council supports and encourages CMSA and MSS to continue their exploration of the F2E concept as it is a local renewable energy project that aligns with AB32, the Global Warming Solutions Act, U.S. Mayors Climate Protection Agreement, and the City's Climate Change Action Plan. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 6`h day of July, 2009 by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ESTHER C. BEIRNE, City Clerk