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Home My WebLink About2012-01-10; City Council; 745; AUTHORIZATION TO SUBMIT SGIP GRANT APPLICATION FOR HYDROELECTRIC PRESSURE REDUCING STATION AT MAERKLE RESERVOIR PROJECT NO 5025CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL 1 5 AUTHORIZATION TO SUBMIT SGIP GRANT APPLICATION FOR HYDROELECTRIC PRESSURE REDUCING STATION AT MAERKLE RESERVOIR, PROJECT NO. 5025 DEPT. DIRECTOR3CJ>^:^ MTG. 01/10/2012 AUTHORIZATION TO SUBMIT SGIP GRANT APPLICATION FOR HYDROELECTRIC PRESSURE REDUCING STATION AT MAERKLE RESERVOIR, PROJECT NO. 5025 CITYATTORNEY DEPT. UTIL AUTHORIZATION TO SUBMIT SGIP GRANT APPLICATION FOR HYDROELECTRIC PRESSURE REDUCING STATION AT MAERKLE RESERVOIR, PROJECT NO. 5025 CITY MANAGER ^jQ^ RECOMIVIENDED ACTION: Adopt Resolution No. authorizing SGIP Grant Application for Hydroelectric Pressure Reducing Station at Maerkle Reservoir, Project No. 5025. ITEM EXPLANATION: The Maerkle Resen/oir site is located approximately one mile north of Faraday Avenue near the eastern limits of the City of Carlsbad as shown on Exhibit 1 Location Map. The site is accessed from Applewood Lane in the City of Vista. The proposed project will receive high pressure water from the San Diego County Water Authority's Connection No. 3, and will then convert this pressure to electrical power through a hydroelectric generator prior to discharging the water to either the 10 million gallon (MG) Maerkle Tank or 200 MG Maerkle Dam. Self-Generatlon Incentive Program (SGIP) - The SGIP provides financial incentives for the installation of distributed generation technologies installed on the customer's side of the utility meter. The electricity generated by the system provides a portion of the customer's entire electric load. The California Public Utility Commission recently reapproved funding for the SGIP program in 2012 through 2016, and for the first time made pressure reduction turbines (hydroelectric generators) eligible for funding in order to promote that technology. The SGIP program is managed by the California Center for Sustainable Energy. The application period for 2012 grants began November 15, 2011 with a first come first served approval process. The SGIP grant incentive amount is based on the Maerkle Reservoir's on-site demonstrated annual power consumption (kWh) instead of the size of the hydroelectric generator. Based on the most recent 12 month average power consumption of 30 kW at the site (refer to Exhibit 2), the SGIP funding would be approximately $37,500, regardless ofthe hydroelectric equipment capability. Staff recommends that the Board approve submitting an application to the California Center for Sustainable Energy to obtain an SGIP grant. FISCAL IMPACT: The project cost includes ali capital and engineering costs and is estimated at $1,740,000 using Zeropex and $1,290,000 using Canyon-Hydro. The amount appropriated from the Water Replacement Fund for the Hydroelectric Pressure Reducing Station at Maerkle Reservoir, Project No. 5025 is $2,000,000. Therefore, no additional appropriation is required. It is estimated that energy savings would result in a 10 year payback period. DEPARTMENT CONTACT: William Plummer 760-602-2768 Bill.Plummer@carlsbadca.gov FOR SECRETARY'S USE ONLY. BOARD ACTION: APPROVED ^ DENIED • WITHDRAWN • AMENDED • CONTINUED TO DATE SPECIFIC • CONTINUED TO DATE UNKNOWN • RETURNED TO STAFF • BOARD RECEIVED THE • REPORT/PRESENTATION OTHER-SEE MINUTES • Page 2 ENVIRONMENTAL IMPACT: The project is categorically exempt from CEQA as a Class 3 exemption pursuant to Section 15303 of the CEQA Guidelines - New Construction or Conversion of Small Structures. The Class 3 exemption applies to construction and location of limited numbers of new, small facilities or structures and installation of small new equipment. A "Notice of Exemption" was filed with the County of San Diego on October 18, 2011 EXHIBITS: 1. Location Map 2. SDG&E Billing Summary for Meter Number 01856725 3. Resolution No. 1434 of the Board of Directors of Carisbad Municipal Water District (CMWD) for authorization to submit a Self-Generation Incentive Program (SGIP) Grant Application to California Center for Sustainable Energy for Hydroelectric Pressure Reducing Station at Maerkle Reservoir, Project No. 5025. LOCATION MAP NOT TO SCALE PROJECT NAME PRESSURE REDUCING HYDROELECTRIC FACILITY AT MAERKLE RESERVOIR PROJECT NUMBER 5025 EXHIBIT 1 DRAm BY: SCOTT EVANS, CARLSBAD UTIUVES DEPT 8/18/10 C: \UVLVES DEPARTUENT\DESIGN DI\^SI0N\PLUUUER\5025.DWS CITY OF CARLSBAD S&W # MERKL 5300 SUNNY CREEK RD C, CARLSBAD, CA 92010-7140 Account # 9522964244 Meter # 01856725 EXHIBIT 2 Total Charge ($) 5,964 4,47 2,982 1,491 06/10 08)10 10flO 12/10 02/11 04/11 06/11 08/11 10/11 Billing Ex Gen Billed kWh Demand Other Total Date* Days Rate kWh kWh Charges Demand Charges Taxes Charges Charges Jun-10 30 ALTOU 0 17,440 $1,434.97 46.40 $1,040.01 $8.03 $152.13 $2,635.14 Jul-10 32 ALTOU 0 12,160 $1,010.37 64.00 $1,028.58 $5.60 $123.26 $2,167.81 Aug-10 29 ALTOU 0 11,040 $909.44 68.80 $1,247.58 $5.08 $117.37 $2,279.47 Sep-10 31 ALTOU 0 33,280 $2,756.41 120.00 $2,549.11 $15.31 $236.83 $5,557.66 Oct-10 31 ALTOU 0 42,400 $3,618.10 94.40 $1,891.33 $19.50 $287.40 $5,816.33 Nov-10 29 ALTOU 0 39,520 $3,460.98 96.00 $1,651.96 $18.17 $273.06 $5,404.17 Dec-10 30 PAT1 0 13,280 $1,139.63 38.40 $511.44 $6.11 $130.30 $1,787.48 Jan-11 33 RATI 0 37,920 $3,104.54 94.40 $1,319.37 $18.88 $259.01 $4,701.80 Feb-11 29 RATI 0 16,320 $1,272.00 51.20 $633.36 $8.65 $141.80 $2,055.81 Mar-11 30 RATI 0 27,040 $2,097.08 91.20 $1,261.97 $14.33 $196.66 $3,570.04 Apr-11 31 RATI 0 6,880 $517.41 35.20 $501.50 $3.65 $93.62 $1,116.18 May-11 30 RATI 0 10,720 $786.10 38.40 $521.20 $5.68 $113.66 $1,426.64 Jun-11 30 RATI 0 12,000 $882.32 36.80 $750.35 $6.36 $119.81 $1,758.84 Jul-11 32 RATI 0 16,160 $1,195.59 73.60 $1,424.29 $8.57 $141.82 $2,770.27 Aug-11 29 RATI 0 23,840 $1,761.05 64.00 $1,285.86 $12.63 $181.45 $3,240.99 Sep-11 30 RATI 0 12,000 $865.96 22.40 $413.17 $6.36 $120.42 $1,405.91 Oct-11 31 RATI 0 18,080 $1,351.52 86.40 $833.96 $9.58 $151.69 $2,346.75 Total: 517 0 350,080 $28,163.47 $18,865.04 $172.49 $2,840.29 $50,041.29 Dates represent SDG&E billing months H 16 17 18 19 20 RESOLUTION NO. 1434 1 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF 3 CARLSBAD MUNICIPAL WATER DISTRICT (CMWD), FOR AUTHORIZATION TO SUBMIT SELF-GENERATION INCENTIVE 4 PROGRAM (SGIP) GRANT APPLICATION TO CALIFORNIA CENTER FOR SUSTAINABLE ENERGY FOR 5 HYDROELECTRIC PRESSURE REDUCING STATION AT MAERKLE RESERVOIR. PROJECT NO. 5025. 6 " 7 8 9 10 WHEREAS, the Carlsbad Municipal Water District (CMWD) is organized and operates under the Municipal Water District Law of 1911, Division 20 (commencing with Section 71000) of the California Water Code, and is a subsidiary district to the City of Carisbad; and WHEREAS, in 2001, the California Public Utilities Commission (CPUC) established the Self-Generation Incentive Program (SGIP) to encourage the development and commercialization ^ 1 of new distributed generation (DG) technologies; and 12 WHEREAS, in 2009, the Legislature passed and the Governor signed Senate Bill (SB) 13 412 (Stats. 2009, ch. 182) which authorized the CPUC, in consultation with the California Air ^4 Resources Board (CARB), to determine what technologies should be eligible for the SGIP based .^g on GHG emissions reduction, and SB 412 extended the sunset date ofthe SGIP from January 1, 2012 to January 1, 2016. WHEREAS, the California Center for Sustainable Energy is managing the SGIP for customers of San Diego Gas & Electric and provides monetary grants for pressure reduction turbine projects with an incentive level of $1.25/watt to provide an incentive to finance renewable and waste energy capture projects through SGIP; and WHEREAS, any local government participating in the RES-BCT tariff (AB 2466) are eligible for incentives up to the total annual electrical load (kWh) at the Site where the generating system 22 Is located, and the hydroelectric generator system's annual production capacity may not exceed 23 the total annual electrical load at the Site where the generating system is located and the 24 benefiting Site(s) combined. 25 WHEREAS, the Local government Site participating in the RES-BCT tariff (AB 2466) must comply with the 1 MW cap per site and the proposed hydroelectric generator is in the range of 26 150 kW which is less than the 1 MW cap; and 27 28 1 WHEREAS, a Reservation Request Form must be completed, and all required 2 attachments secured, and Applicants must submit their application package to the Program 2 Administrator for the California Center for Sustainable Energy to request a SGIP grant. ^ NOW, THEREFORE, BE IT RESOLVED by the Board of the Carisbad Municipal Water District, California, as follows: 5 ^ 1. That the above recitations are true and correct ^ 2. That the Executive Director or Director of Utilities for City of Carisbad is hereby 8 authorized to apply for a SGIP grant through the California Center for Sustainable 9 Energy to construct the Hydroelectric Pressure Reducing Facility at Maerkle 10 Reservoir, Project No. 5025 11 3. That if recommended for funding by the California Center for Sustainable Energy, ^2 CMWD's Board of Directors supports the application submitted to accept an incentive of $1.25/watt and payment of an application fee equal to 1 percent of the requested incentive amount, estimated at approximately $375, which fee amount is based on an incentive payment of $37,500; and 4. That if recommended for funding by the California Center for Sustainable Energy, CMWD's Board of Directors authorizes and ensures the capability of CMWD to provide matching funds in the form of a cash and in-kind contributions in the amount specified in the application. 5. That if recommended for funding by California Center for Sustainable Energy, 2^ CMWD will work with the Califomia Center for Sustainable Energy to meet 21 established milestones to comply with SGIP requirements. 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// 13 14 15 16 17 18 19 lo