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Tac Draft Minutes 02-25-13

Tac Draft Minutes 02-25-13

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Published by L. A. Paterson
Technical Advisory Committee MPRWA Minutes 02-25-13
Technical Advisory Committee MPRWA Minutes 02-25-13

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Published by: L. A. Paterson on Mar 02, 2013
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Burnett, Stoldt, Riedl, Israel, Seigfried, Riley
Members Absent:
Huss, Narigi
Staff Present:
Executive Director, Legal Counsel, Clerk
Chair Burnett reported on a meeting he attended with the California Coastal Commission andCal Am to discuss permitting issues for the Monterey Peninsula Water Supply Project testwells. They also discussed the process of for obtaining parallel permits and requested that theAuthority host monthly meetings to stay informed about the project application status. Heindicated that several action items resulted from the meeting for Cal Am to follow up with. ChairBurnett also took the opportunity to recognize two staff members for their efforts towardsubmitting testimony to the California Public Utilities Commission prior to the deadline onFebruary 22, 2013.
Chair Burnett opened the item to public comments for items not on the agenda and had norequests to speak.
1. February 4, 2013On a motion by Member Stoldt seconded by Member Riley and carried by the following vote,the Monterey Peninsula Regional Water Authority TAC approved the minutes of February 4,2013 as amended.AYES: 6 DIRECTORS:Burnett, Riedl, Siegfried, Israel, Narigi, RileyNOES: 0 DIRECTORS: NoneABSENT: 2 DIRECTORS: Huss, Narigi
MPRWA TAC Minutes Monday, February 25, 20132ABSTAIN: 0 DIRECTORS: None
2. Receive Report and Discuss Outside Agency Actions Regarding the Monterey Peninsula WaterSupply Projecta. Monterey County Board of Supervisors - (Burnett)Chair Burnett reported that the Monterey County Board of Supervisors supported and adoptedthe Authority’s position statement as well as discussed the issue of the statement of principles.The Governance committee document was unanimously approved and the Board appointed tothe governance committee the primary representative Supervisor Potter and an alternaterepresentative the Supervisor from the Salinas region. Chair Burnett acknowledged it as animportant step to have a united voice with all six member city mayors and all five supervisors tohave the same stance. The Board endorsed the statement of principles in general, but did notformally adopt the position statement as their own due to pending litigation and settlementagreement with Cal Am. Chair Burnett opened this item to public comment, and having norequests to speak, turned to the next report from Member Stoldt.b. Monterey Peninsula Water Management District - (Stoldt)Member Stoldt reported on the Monterey Peninsula Water Management District Board meetingon January 30, 2013 and approved similar actions including stronger support for Ground WaterReplenishment, and pending the identification of non substantive changes, approved theGovernance document. MPWMD re-endorsed the concept of a public contribution as well asseveral other financial suggestions. The Board voted 6-0 to oppose surcharge two, andcontinued to endorse further evaluation of backstops. The issue of project sizing, a generalstatement of support, was deferred to a special meeting on February 12, 2013 where the Boardagreed with the demand forecast and project sizing, facility sizing 1,252 acre/feet with GWR,1,952 acre/feet without GWR.Chair Burnett opened the item for comments from the public. Sue McCloud spoke to a letterpublished in the Monterey Herald opinion page from Member Stoldt, thanking him for making acomplicated project more understandable to the public. She then suggested publication of thesame Article in the Salinas Californian. Nelson Vega questioned why Member Stoldt did notinclude the costs per acre foot because he thinks the public is only concerned about the costand if the project can be built He then requested that the Authority help Cal Am attain the sourcewater need for the MPWSP project. With no further requests to speak, Chair Burnett closedpublic comment.c. Monterey Regional Water Pollution Control Agency - (Israel)Member Israel deferred to report on this item until Agenda Item 4.d. Monterey Regional Waste Management District Presentation of Availability of Landfill Gas forPower Generation (W. Merry)
MPRWA TAC Minutes Monday, February 25, 20133William Merry from the Monterey Regional Waste Management District made a presentation onefforts to make the landfill gas (LFG) to energy project viable enough to sell power to adesalination facility. The District has been producing energy through the landfill gas to energyprogram for 30 years. Mr. Merry discussed that the LFG program is an economic benefit for asmall to medium landfill however there have been many lessons learned over the course of theproject. He discussed one project that the District undertook that consisted of an energypurchase agreement with PG&E that was an economic loser to the District due tounforeseeable energy cost fluctuation.Mr. Merry then discussed different types of purchase agreements and optimal markets to selltheir converted power and indicated that PG&E has a strangle hold on adding new generationto the grid. That would be a disincentive to go forward with energy production, but anagreement with the MPWSP project would be an over the fence or direct access agreementand would not be subject to PGE fees. He also indicated that the District currently has theopportunity to sell gas as boiler fuel and in the future is considering increasing generation ofenergy to 7 megawatts. Mr. Merry also explained that the District is exploring the option to turnthe landfill gas into compressed natural gas to fuel vehicles and currently has an informalagreement with the MRWPCA to run vehicles on the alternative fuel. Mr. Merry furtherexplained that efforts to diversify opportunities to utilize landfill gas is a redundancy that smallproducers can use to stay profitable. He encouraged the Authority to urge Cal Am to considerthe District energy as a way to close the loop by buying local energy.Items/challenges that would need to be addressed if the MPWSP would consider Purchasingpower from the District:
The district is actively engaged in making decisions for the next 10 to 20 years. Theyneed to use the LFG productively or flare it off.
Addressing the imbalance: if the demand is higher than the supply? On a growth scale.They are producing 24/7. Tolerance for supply changes
Identification of the redundancy requirements
Identification of the demand including: continuous, average demand; maximum; andseasonal
Identification of the tolerance for electric power supply to be down (in the event of aPG&E mandated shut down, or Natural Disaster)
What is facility’s power redundancy requirements/plan
What is facility’s anticipated down time?
What would MPWSP be willing to pay for power on a kilowatt-hour basis? District willneed to be paid at market rates
When would MPWSP wish to negotiate, sign a power sales agreement?Mr. Merry answered questions from the TAC. Member Siegfried asked if the District had theability or would consider selling the LFG in raw form to the desal facility instead of processing itat your facility, so that the facility would be able to use that heat generated during combustionto make the process more efficient. Mr. Merry responded by discussion of the supply sourceand lifespan of the landfill. Regulations from the state are requiring greater diversion from thelandfill. On the waste water side, there is a push to develop power generation through solids.Over the last 5 to 7 years, the generation of waste to the landfill has decreased by 35% which is

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