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Home My WebLink About2009-04-14; Municipal Water District; 678; Hydroelectric energy development Maerkle ReservoirCARLSBAD MUNICIPAL WATER DISTRICT AGENDA BILL AB# MTG. DEPT. 678 4/14/09 CM AUTHORIZE HYDROELECTRIC RENEWABLE ENERGY DEVELOPMENT AT MAERKLE RESERVOIR DEPT. HEAD CITY ATTY. ' CITYMGR. — £%&\/ffi&> \S / RECOMMENDED ACTION: Adopt Resolution No. 1350 , authorizing staff to proceed with the development of a hydroelectric renewable energy project at Maerkle Reservoir and to solicit proposals for design for the Carlsbad Municipal Water District. ITEM EXPLANATION: For the past decade, the City of Carlsbad has engaged in a comprehensive effort to reduce electrical consumption and to promote energy efficiency. These efforts include the development of Council Policy #71: Energy Conservation and Management, Council adoption of Quality of Life and Environmental Guiding Principles, improvements to the city's vehicle fleet fuel efficiency, numerous energy efficiency improvements to city facilities, and quantifying the municipal corporation's greenhouse gas emissions or "carbon footprint". In 2006, the State of California approved Assembly Bill 32 (AB 32). This legislation, and other subsequent state directives, has established aggressive short and long term goals regarding the use of energy and the reduction of greenhouse gases (GHG's) for the next 40 years (Exhibit 2). The state has developed a scoping plan to assist in the implementation of Air Resources Board programs and the provisions of AB 32. In early 2008, recognizing the potential impacts of AB 32 and the limitations of energy efficiency projects to reduce the city's carbon footprint, staff began to identify and evaluate potential renewable energy development opportunities within the city's boundaries. Over the last year staff has identified different renewable energy technologies available, analyzed existing regulatory structures and financial incentives, established criteria for project consideration and conducted a preliminary feasibility analysis on several projects. Staff has worked with other agencies, such as the Federal Bureau of Reclamation, the University of San Diego's Energy Policy Initiatives Center (EPIC), California Center for Sustainable Energy (CCSE), and a private consultant in this effort. DEPARTMENT CONTACT: Skip Hammann, 760-434-2856, Skip.Hammann@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED n Dn CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES Dnnn Based on its research, staff has identified several potential renewable energy projects that meet the following criteria: • Readily available technology • Financially viable • Limited operational impacts • Limited barriers to implementation While these projects can generally be classified into two main categories, solar and hydroelectric power generation, staff is proposing that Council only consider hydroelectric at this time. The California Energy Commission (CEC) has defined hydroelectric power as a renewable form of energy. Conventional hydroelectric facilities utilize dams and "run-of-river" flows, which are dependent on runoff. Modular pumped storage is a renewable form of hydroelectric power that pumps water from a lower reservoir to a higher reservoir during non-peak hours and generates hydroelectric power during high peak hours. The proposed project will utilize line pressure to drive hydroelectric turbines, provided the San Diego County Water Authority (SDCWA) continues to provide water at the current flow rates and pressures. Project Description - Hydroelectric Pressure Reducing Station(s) at Maerkle Reservoir CMWD currently employs a number of mechanical pressure reducing stations (PRS) in the municipal water system. The purpose of these stations is to reduce water pressure to appropriate operating levels throughout the water distribution system in order to maintain system integrity. These stations generally use a valve to restrict the flow of water and reduce pressure from one pipe to another. Staff's proposal is to utilize a bypass at specific pressure reducing stations and route the high pressure water through a turbine to produce electricity. The effect of water passing through the turbine will be a reduction of water pressure to the required level with the added benefit of generating electricity. Staff has identified several PRS for consideration, including Maerkle Reservoir and Aqueduct Connection #3 (Exhibit 3 - Map of Maerkle Reservoir). Maerkle Reservoir currently receives water from the San Diego County Water Authority (SDCWA) through a potable water transmission main known as Connection #3. The water pressure needed to move water through SDCWA's aqueduct is considerably higher than the pressure required to deliver water to Maerkle Reservoir. This difference in water pressure provides an opportunity to generate electricity. Based on a feasibility analysis of potential energy generation (on file with City Clerk), staff has identified opportunities to install several turbines (three different locations) along Connection #3, which would enable CMWD to generate more than 2 million kilowatt hours per year, or approximately 125% of its annual energy consumption (2007). Staff requests authorization to move forward with the development of hydroelectric pressure reducing stations along aqueduct Connection #3 at Maerkle Reservoir. Project Schedule In order to proceed as expeditiously as possible, staff is requesting authorization to solicit proposals for the design of this project. Once proposals have been submitted and reviewed, staff will return to the Board for contract approval. At that time, staff will provide the Board with a financial update. FISCAL IMPACT: Project Cost The feasibility study for the hydroelectric pressure reducing station(s) estimates construction costs of approximately $915,000. Additional project costs include engineering design services projected at $235,000, and construction management and inspection estimated at $100,000 for a total project cost at the Maerkle Site of $1.25 million. Project Payback The project is expected to generate approximately 2 million kilowatt hours of energy per year. This is equivalent to nearly 125% of CMWD's energy consumption (2007). Based on current regulatory and pricing structures, the proposed project could generate $240,000 per year. This amount reflects revenue from energy generation only for the three proposed PRS and does not include other potential revenue streams associated with this project such as Renewable Energy Credits or Carbon Credits. The projected payback for this project is estimated to be six to seven years. The anticipated life of the equipment is 20 years, which would result in positive revenue generation of more than $3 million over the projects' useful lifespan. Project Funding The preliminary estimate for the hydroelectric pressure reducing stations along Connection #3 at the Maerkle Site is $1.25 million. The funding source will be the Carlsbad Municipal Water District (CMWD), which will obtain a non-interest bearing loan from its Replacement Project Fund to its Operating Fund for the full amount of the project. The details of the loan will be finalized and a staff recommendation will be brought forward with the contract approval for the Board's consideration. Staff will also provide a review in the budgeting, operations and accounting that will need to be established to track the electrical generation and allocation of savings throughout the city from the project. Other funding sources may become available through federal and state programs; however, at this time these sources are considered uncertain and should not be relied on by the city or district. Staff will continue to pursue alternate funding sources, and if it becomes available, staff will bring them forward to the Council and Board at the appropriate time. ENVIRONMENTAL IMPACT: The project is categorically exempt from the California Environmental Quality Act (CEQA) as a Class 3 exemption pursuant to Section 15303 of the CEQA Guidelines. CEQA Guidelines Section 15303 is titled New Construction or Conversion of Small Structures. The Class 3 exemption applies to the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another. EXHIBITS: 1. Location map. 2. State of California, Air Resources Board, Draft Scoping Plan, AB 32 Magnitude of Challenge. 3. Map of Maerkle Reservoir. 4. Carlsbad Municipal Water District (CMWD) Resolution No. 1350 authorizing staff to proceed with the development of hydroelectric renewable energy at Maerkle Reservoir. EXHIBIT 1 LOCATION MAP SITE NOT TO SCALE PROJECT NAME DISINFECTION FACILITIES CHLORINE GAS SCRUBBERS REPLACEMENT PROJECT PROJECTNUMBER 5009A EXHIBIT 1 WMSN 8Y: StOfT tVMtS, CARLSBAD OfGBtfEWC DIPT. 6/02/OS C; \CAPrfM.\PlAJZ£R\SQQ$A.8iiK EXHIBIT 2 State of California Air Resources Board Draft Scoping Plan Exhibit Draft Scoping Plan Magnitude of the Challenge ARE Emissions Inventory 700 -i 600- -169 MMT CO2e Reduction 1990 Emission Baseline 80% Reduction -341 MMT CO2e 1990 2000 2004 Year 2020 2050 EXHIBIT 3 MAERKLE RESERVOIR SITE COPY #3A CONNECTION #3 CONNECTION MAIN #3B CONNECTION 1 RESOLUTION NO. 1350 2 RESOLUTION OF THE CARLSBAD MUNICIPAL WATER DISTRICT BOARD AUTHORIZING THE 3 DEVELOPMENT OF HYDROELECTRIC RENEWABLE ENERGY PROJECT AT MAERKLE 4 RESERVOIR 5 6 WHEREAS, the Carlsbad Municipal Water District has engaged in a comprehensive 7 effort to reduce energy consumption; and 8 WHEREAS, the state of California has adopted AB 32, the Global Warming Solutions 9 Act of 2006; and IQ WHEREAS, AB 32 calls for dramatic reductions in the production of green house gases; u and WHEREAS, the Board believes that the development of financially viable renewable energy projects represents a way to help achieve the goals identified in AB 32; and 13 WHEREAS, the Board has evaluated several possible renewable energy projects; and 14 WHEREAS, hydroelectric pressure reducing stations have been identified at Connection No. 3 at the Maerkle Reservoir; and 16 WHEREAS, a feasibility study has been prepared that demonstrates the economic 17 viability of this project; and 18 WHEREAS, proposed project will generate more than 100% of Carlsbad Municipal 19 Water District's current energy demands; 20 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District, as follows:22 1. That the above recitations are true and correct.23 2. That staff is authorized to proceed with the design and seek grants to assist with the financing of a hydroelectric project along Connection No. 3 at the Maerkle 25 Reservoir and solicit proposals for it. 26 27 /// 28 /// 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a special meeting of the Board of Directors of the Carlsbad Municipal Water District held on the 14th day of April, 2009, by the following vote, to wit: AYES: Board Members Lewis, Kulchin, Hall, Packard and Blackburn. NOES: None. ABSENT: None. LAUDE A. UEWIS, Chairman of the Board ATTEST: LORRAINE M. (SEAL) .Secretary April 14, 2009 LOCATION MAP Turning Water Into Energy Agenda Background Project Description Fiscal Impacts Recommendation Background State/Federal Legislation State AB 32 –Green House Gas Law SB 375 –Land Use Planning &Carbon Emissions Air Resource Board Scoping Plan AB 2466 –net metering Federal 2009 Waxman/Markey Bill Policy Council Policy #71: Energy Conservation & Management Council adoption of Quality of Life & Environmental Guiding Principles Background City Efforts Actions Residential Solar Water Heating Fleet fuel efficiency Facilities energy efficiency improvements Quantifying greenhouse gas emissions or “carbon footprint” Renewable Energy Analysis Broad team make-up USD Energy Policy Initiatives Center (EPIC) –net metering legislative analysis California Center for Sustainable Energy (CCSE) - solar assessment study Private Consultant –hydroelectric feasibility study City Staff –Public Works, Finance, City Manager Office Renewable Energy Analysis Project Criteria Readily available technology Financially viable Limited operational impacts Limited barriers to implementation Projects -Solar and Hydroelectric Project Overview Maerkle Reservoir Connection 3 Connection 3A Connection 3B Maerkle Reservoir S D C W A Project Overview Water Wheel Hydro Power Fiscal Impact Est. Electrical Output:2.2 million kwh/year Estimated Cost:$1.25 mil (Design & Const.) Projected Revenue:$240,000 per year Estimated Payback:6 years Project Life:20 years Total Revenue (net): $3+ mil over life Game Plan Short Term (12-24 months) Hydroelectric Project Offset 10% City current facility electric demand Offset 100% CMWD current electric demand Energy Efficient Street Lighting Reduces 10% City current electric demand Game Plan Long Term (24+ months) Hydroelectric Solar Fuel Cell Energy Efficiency Measures Recommendation Carlsbad Municipal Water District Board Approves Resolution No. 1350 which authorizes staff to proceed with soliciting proposals for the design of a hydroelectric project at Maerkle Reservoir Staff will return to the Board for contract authorization once proposals have been evaluated Questions ??? Information Contact Skip Hammann (760) 434-2820 skip.hammann@carlsbadca.gov April 14, 2009 LOCATION MAP Turning Water Into Energy Agenda Background Project Description Fiscal Impacts Recommendation Background State/Federal Legislation State AB 32 –Green House Gas Law SB 375 –Land Use Planning &Carbon Emissions Air Resource Board Scoping Plan AB 2466 –net metering Federal 2009 Waxman/Markey Bill Policy Council Policy #71: Energy Conservation & Management Council adoption of Quality of Life & Environmental Guiding Principles Background City Efforts Actions Residential Solar Water Heating Fleet fuel efficiency Facilities energy efficiency improvements Quantifying greenhouse gas emissions or “carbon footprint” Renewable Energy Analysis Broad team make-up USD Energy Policy Initiatives Center (EPIC) –net metering legislative analysis California Center for Sustainable Energy (CCSE) - solar assessment study Private Consultant –hydroelectric feasibility study City Staff –Public Works, Finance, City Manager Office Renewable Energy Analysis Project Criteria Readily available technology Financially viable Limited operational impacts Limited barriers to implementation Projects -Solar and Hydroelectric Project Overview Maerkle Reservoir Connection 3 Connection 3A Connection 3B Maerkle Reservoir S D C W A Project Overview Water Wheel Hydro Power Fiscal Impact Est. Electrical Output:2.2 million kwh/year Estimated Cost:$1.25 mil (Design & Const.) Projected Revenue:$240,000 per year Estimated Payback:6 years Project Life:20 years Total Revenue (net): $3+ mil over life Game Plan Short Term (12-24 months) Hydroelectric Project Offset 10% City current facility electric demand Offset 100% CMWD current electric demand Energy Efficient Street Lighting Reduces 10% City current electric demand Game Plan Long Term (24+ months) Hydroelectric Solar Fuel Cell Energy Efficiency Measures Recommendation Carlsbad Municipal Water District Board Approves Resolution No. 1350 which authorizes staff to proceed with soliciting proposals for the design of a hydroelectric project at Maerkle Reservoir Staff will return to the Board for contract authorization once proposals have been evaluated Questions ??? Information Contact Skip Hammann (760) 434-2820 skip.hammann@carlsbadca.gov Carlsbad Connection 3 Hydroelectric Feasibility Study Energistics, Inc 2.25.2009 Carlsbad Connection #3 Hydroelectric Feasibility Study TABLE OF CONTENTS TABLE OF CONTENTS ........................................................................................................................................... 2 ................................................................................................................................................. Executive Summary 6 Background ............................................................................................................................................................... 7 Project Description .................................................................................................................................................. 8 Existing Infrastructure ....................................................................................................................................... 10 System Water Flow Data ..................................................................................................................................... 11 Current City Energy Usage and C02 Emissions Data ................................................................................. 12 Base Year Energy and C02 Metrics ......................................................................................................... 12 The Proposed Project ........................................................................................................................................... 14 Turbine-Generator (Reversed Flow Pump) ............................................................................................... 14 Switchgear .......................................................................................................................................................... 14 Installation ......................................................................................................................................................... 16 Turbine Shutoff Valves .................................................................................................................................... 16 Costs ..................................................................................................................................................................... 16 Technical Assessment of Application ............................................................................................................... 19 Reverse PumpGenerator ............................................................................................................................... 19 Utility Interconnection Requirements ........................................................................................................ 19 Project Economics and Financial Factors ...................................................................................................... 20 Lifecycle and Cost-Benefit Analysis ........................................................................................................ 20 Economic Incentive Programs and Rebates ................................................................................................ 22 Incentives and Rebates ................................................................................................................................... 22 Renewable Energy Credits (REC's) .............................................................................................................. 23 Carlsbad Connection #3 Hydroelectric Feasibility Study Carbon Credits .................................................................................................................................................. 23 AB2466 . Local Government Renewable Energy Self-Generation Program ................................... 26 Feed In Tariffs (FIT) ........................................................................................................................................ 26 Investment Factors . Why Execute This Project? .......................................................... .. . .. . .. .... 27 Carbon Footprint .................................................................................................................................................. 28 Next Steps ............................................................................................................................................................ 29 APPENDIX A ......................................................................................................................................................... 30 ........................................................................................................ Carlsbad Water District Boundary Map 30 APPENDIX B ......................................................................................................................................................... 31 Carlsbad Water District List of Pressure Reducing Stations ................... .. ......................................... 31 APPENDIX C ..................................................................................................................................................... 32 Carlsbad Water District Piping and Pressure Zone Map ............................................................................ 32 APPENDIX D ........................................................................................................................................................ 83 Carlsbad Water District Pressure Reducing Station Map & Mearkle Reservior Site Map for Connection #3 .................................................................................................................................................... 33 APPENDIX E .......................................................................................................................................................... 36 Detailed Connection #3. #3A & #3B 5 Year Flow Data and Estimated Power Output Data Sheets .. 36 .......................................................................................................................................................... APPENDIX P 37 HYDRO TURBINE TYPES & SELECTION CRITERIA ................................................................................ 37 APPENDIX G ....................................................................................................................................................... 40 HYDRO TURBINE DRAWING DIAGRAMS ..................................................................................................... 40 APPENDIX H .......................................................................................................................................................... 41 HYDRO TURBINE INSTALLED COST ESTIMATE SUMMARY ................................................................ 41 APPENDIX I ............................................................................................................................................................ 42 Pump Manufacturer's Brochure & Pump Selection Data Sheets & Curves ........................................ 42 ........................................................................................................................................................ APPENDIX J 43 LIFE CYCLE COST SUMMARY ...................................................................................................................... 43 Carlsbad Connection #3 Hydroelectric Feasibility Study .......................................................................................................................................................... APPENDIX K 44 ASSEMBLY BILL 2466 ......................................................................................................................................... 44 FERC Regulation of Hydro Projects ........................................................................................................... 44 APPENDIX L ........................... ............ ................................................................................................................ 46 CONNECTION #3 DATA SUMMARY ........................................................................................................... 46 Carlsbad Connection #3 Hydroelectric Feasibility Study The purpose of this study was to determine the feasibility to install three, renewable energy, hydro-electric power generating stations in the Carlsbad Municipal Water District's Connection #3 pressure reducing station (PRV) which is located in and around the City owned property known as Maerkle Reservoir. Connection #3 is actually made up of three pressure reducing stations, so that the project is made up of three different generating stations. The study included the following key metrics that are needed to perform a feasibility analysis: An analysis of the potential energy recovery at each of the three sites within the boundaries of Connection #3 Research results into the types of "turbines" that are commercially available to perform the energy recovery task A study into the actual physical ability to install the proposed equipment The determination of an Installed Cost Opinion An Economic Analysis using a Life Cycle Cost Approach Next Steps After performing all of the above tasks and analyzing the results, we came to the following conclusions: The overall energy that can be recovered at Connection #3 was determined to be approximately 350 kW yielding an annual production of 2,024,565 kWhs. Since this was to be a demonstration project, the total capacity fell within a comfortable level for further investigation. We found that the energy conversion technology was commercially available and has been in use for many years. Carlsbad Connection #3 Hydroelectric Feasibility Study We found that the energy conversion technology was commercially available and has been in use for many years. Site inspections and drawings of the PRV station appeared to show that adding the proposed systems to the existing system was feasible. The Life Cycle Cost analysis yielded a simple payback of 9 years and a Net Present Value (NPV) of a 20 year cash flow of nearly $6,000,000. Although the NPV shows a good present day value over 20 years, the Simple Pay Back Period is about 2 to 4 years longer than the generally accepted 5 to 7 year pay back. There are additional economic factors that the City should consider that are beyond the scope of the study in evaluating the economic feasibility such as low interest loans, grants and feed-in tariffs. Carlsbad Connection #3 Hydroelectric Feasibility Study The Special Projects Department of the City Managers Office has requested that Energistics, Inc. perform a preliminary analysis on the use of renewable energy to offset the City of Carlsbad's operating expenses for City owned facilities. There are a number of objectives that could be reached utilizing renewable energy: reduce annual energy operating expenditures, assist Carlsbad in meeting the requirements of AB 32 becoming more carbon neutral, and create a portfolio of projects that could be used as mitigation offsets for other projects. This report is focused on one of the many possible projects that could be implemented to assist the City in achieving its carbon neutral goal, by installing a network of hydroelectric energy recovery systems. Also some additional basic information on hydroelectric facilities in California can be researched on this web site: httu://~~~.ene~n\~.ca.~ov/hvdroelectric/index. html Carlsbad Connection #3 Hydroelectric Feasibility Study Energy can be recovered within the Carlsbad Municipal Water District's (CMWD) water supply and distribution systems. It is stored within the water supply system in the form of pressure and flow which can be recovered by installing centrifugal turbine-generators at existing pressure reducing stations. The function of a pressure reducing station is to "let down" very high water pressure from water transmission pressures, to a lower pressure that can be used by the local end user. Such a system is utilized by both the County Water Authority's (CWA) water transmission system to a lower pressure for the local water distribution system and the CMWD secondary Pressure Reducing stations (PRY). Currently, pressure reducing stations reduce water pressure through special valves that essentially squeezes water through a small orifice to reduce the pressure. The same pressure reduction result can occur when water is "expanded through a turbine. The energy from flow and pressure differential rotates the turbine shaft turning a generator to make electricity. Turbine-generators can be connected directly to the electrical grid or to a local electrical load replacing the electricity usually supplied by the electric utility company. See Figure 1 below for a Simple Hydro Concept Diagram. There are some major benefits to this type of project that includes: 1. Reduce Carlsbad's annual operating cost by implementing renewable energy projects to power a portion of Carlsbad's electrical demand. 2. Use of a clean, renewable power source to provide electricity reducing Carlsbad's carbon footprint as required by AB 32. 3. The water systems typically run at higher flows in the summer months when electrical demand is the highest and utility power prices are the highest. 4. The turbines and generators are very simple and utilize well known equipment technologies of centrifugal pumps and induction motors that are familiar to most operating personnel. These "pumps" can be designed to run in reverse and act as a turbine. Staff researched the existing CMWD distribution system to identi6 possible pressure reducing stations that would be good candidates for producing electricity. There are number locations that would be worth further consideration. However, staff narrowed the Carishnd Coaneetlom #3 Hydrdedc FuslbiMy Study hmibili@ study to CMWD'B, County Water Authority (CWA) Collzldon #3 to aimplifj. the analysis. Corndon #3 is aonside~d a top catldidafe due to the apace available for the turbine iastalhtion and pmxiaai@ to the existing electrical infras-m needed to distribute the power generated. FIGURE 1 SIMPLE HYDRO CONCEPT DIAGRAM There are thme exi~ting preseure reducing stations along Connection #3 from the point of coll~lection to the CWA aqueduct and the Maerlrle Remmoir. For the purposes of this report, The *Projectm ie deiined a8 h aeparats PRV stations, all located in and around CMD's Maerkle Reservoir which they call Connection #8. The Main Connecbion # ie at the tie-in to the CWA aqueduct, Connection #3A is a pressure reducing vault at the Maerkle Reservoir site, and a~ection #3B b a pm~m redudng etation at the Maerue h88rvoh site near the discbarge to the reservoir, For more information and detda see the section titled Exbting Maatructum, 9 Carlsbad Connection #3 Hydroelectric Feasibility Study The Carlsbad Municipal Water District (CMWD) is a subsidiary district of the City of Carlsbad. CMWD's service area covers approximately 85 percent of the City, an area of about 32 square miles. Not all residents receive water from CMWD, some residents may receive water service from the Olivenhain RIunicir>al Water District or the Vallecitos Water District. The Water District map boundaries are shown in Appendix A There are three major services delivered by CMWD: water, wastewater (sewer) collection, and recycled water. CMWD currently purchases 100% of its water as treated water from the San Diego County Water Authority (CWA). Over 21,000 acre feet of water is provided annually to about 83,000 people through more than 480 miles of pipeline. The majority of the 480 miles of pipeline in the distribution system is fairly new. The CMWDfs distribution system was designed to provide adequate storage and sufficient pipeline capacity so that CMWD presently has nineteen days of storage capacity at average daily demands. Total storage in CMWD reservoirs equals 247 million gallons. The CMWD system has 95 Pressure Reducing (PRV) Stations with four water connections/pressure reducing stations where it imports and buys water from CWA. Please refer to Appendix B for a detailed list of all the PRV stations within the CMWD service territory. Appendix C contains a City Wide map showing the entire CMWD major system Potable Water pipelines, pressure zones, pressure reducing stations, water storage and pumping stations. A Google Map, Appendix D shows the locations of all CMWD pressure reducing stations. Carlsbad Connection #3 Hydroelectric Feasibility Study The project team was given five (5) years worth of manually collected daily water flow data for the four major pressure reducing stations within CMWD territory. After performing a visit to each site and averaging the five years of data for each site, it was decided to perform a more detailed study on the site known as "Connection #3", Maerkle Reservoir. This particular site actually has three pressure reducing stations. The main station, '%3" is in a location where the CMWD takes water from the CWA Aqueduct and reduces pressure from 230 psig to 178 psig. The next station, we are calling it "3A", takes the full flow from the main #3 station and further reduces pressure from 178 psig to 148 psig. Out of station #3A the flow branches off in two directions to the CMWD service territory. The data provided to Energistics shows that there is quite a variation in average flows from day to day. There are probably even significant variations during the day that are not shown in the daily logs, however, since this is the only available data, we made assumptions as necessary to design a solution. The data shown below in Table 1 is the five year averages for connection #3, 3A and 3B. A detailed list of data and calculated output is included in Appendix E. TABLE 1 CONNECTION #3 DATA There have been no considerations made for pressure differences that would be expected with changes in flow due to pipe friction. Carlsbad Connection #3 Hydroelectric Feasibility Study CURRENT CITY ENERGY USAGE AND C02 EMISSIONS DATA BASE YEAR ENERGY AND C02 METRICS We received a spreadsheet from the City of Carlsbad's accounting department which detailed the year of 2007's electric consumption data for all of the City departments. Table 2 is a summary of this 2007 energy consumption data which contains the following energy and emission highlights: Total Electrical Energy Consumed: Average Electrical Peak Demand: Total Electrical Energy Cost: Avg. Delivered Unit Cost: Total Carbon Footprint from all Sources: 15,134.752 MWhr 1.728 MW $2,200,000 $O.l2/kWhr 8.84 MMTrYear Carlsbad Connection #3 Hydroelectric Feasibility Study ELECTRIC & EMISSION SUMMARY DATA Carlsbad Connection #3 Hydroelectric Feasibility Study Each of the three pressure reducing station along Connection 3 will be re-designed in a similar fashion: turbine generator to produce electricity, electrical switch gear to control and connect into the existing electrical supply lines, control valves, and a by-pass system to completely revert back to the existing operating system if and when needed. A description of each site is not provided in detail; however a description for Connection #3B is provided which is similar to the other two proposed sites. The data for site 3B was estimated based on the flow patterns for the first two sites. If the high head site 3B listed above was able to operate at zero outlet pressure, a number of turbine options would open up, in particular impulse and cross flow turbines. An impulse turbine would operate in the 80 to 85% efficiency range. We would suggest that at least two fwed centrifugal type units be used at each site. One can be operated at the lower flow, and the other used during high flow. The type of unit proposed is a standard fixed flow and speed centrifugal pump that is used to generate power instead of consume power. Although there is a great deal of research on variable speed generators, it appears that there are not to be any commercially available at this time. The generators used for these types of installations are typically induction generators rather than the synchronous type. Standard three phase induction motors can be used as generators and the control systems are very simple and don't require voltage regulators or synchronizers. The type of turbine proposed is a fixed flow unit. The only other turbine that would be suitable for these installations would be Francis turbines. Francis turbines have a much better efficiency at the peak of the design curve (approaching go%), and they can operate at variable flows, but the cost is at least 10 times that of a centrifugal pump type turbine, and they are very difficult to be made to operate in potable water systems. Refer to Appendix F for an explanation of the various turbine types and selection criteria. The switchgear required for these installations are very basic. We have assumed that three phase 480 volt power is available at each site. Protective relays typically required by utility connected systems have been included in the basic control system package. The control system will automatically shut the unit down following a machine or utility fault. The switchgear may require a capacitor bank to improve the power factor of the induction Carlsbad Connection #3 Hydroelectric Feasibility Study generators, but this will be determined during the utility study, however, may be unlikely due to the small size of these units. It has also been assumed that the switchgear will connect to 120 volt AC power for control power. Refer to the Appendix G, Drawings, for a simple electrical single line diagram of Connection #3A. The centrifugal pump turbine units are typically compact, but by the time you add two units and the required turbine shut off valves (TSV) and switchgear, there is a moderate amount of space required. We have assumed that there is adequate space available. Additional considerations required for these installations are the relatively high pressures involved and the probable need for isolation valves. The first two sites will require 250 pound flanges and heavy wall pipe. If the water system may not be shut down for extended periods to service the turbines, then isolation valves must be installed on the downstream side of the turbines. The TSVs ahead of the turbines will double as isolation valves for the upstream side of the system. Since two turbines are proposed for each site, some pipe pre- fabrication will be required, essentially two systems that will parallel the existing PRV. The switchgear will be relatively compact with two medium sized cabinets that may be installed inside a building or even outdoors. A small capacitor cabinet, if required, will also mount on or near the switchgear cabinets. The switchgear will connect to the generator at 480 volts, with the only other required connection to a speed sensor mounted at either end of the generator. See Appendix G for a flow diagram and mechanical interconnection for Connection 3A. Each turbine will require a turbine shutoff valves (TSV) to control flow to start and stop the units. Typically a butterfly valve is used as a TSV with a hydraulic operator and a large weight to close the TSV after a power outage. The hydraulic unit will open the TSV in a controlled manner during start up to minimize water pressure fluctuations in the water system. As water begins to flow, the turbine will begin to spin. As the turbine and generator reach nominal operating speed, a synchronous speed to grid frequency of 60 Hertz, the control system will close the generator and capacitor contactors, putting the unit on line. As the TSV opens completely, the generator will produce its full output. During a normal shutdown, the TSV is closed first, and as the power output reaches zero, the generator and capacitor contactors are opened. When an emergency shutdown occurs, either initiated by the operator or a protective relay limit or by a utility fault, the generator and capacitor contactors open immediately while the TSV closes in a controlled manner to Carlsbad Connection #3 Hydroelectric Feasibility Study minimize pressure fluctuations in the water system. The generator and turbine will experience an over speed condition during an emergency shutdown that requires the appropriate equipment rating. As with all mechanical systems that transform one form of energy into another, there are efficiency losses with each piece of equipment. Typically an induction generator can be assumed to be about 93% efficient. The turbines are more efficient at the higher flow rates, and that is why we have suggested using two turbines to be operated one at a time, rather than two at the same time to accommodate the high flow periods. The vendor supplying the equipment quotes predicted a combined turbine and generator system efficiency of 75 to 77%; however, we are very reluctant to use this number in the performance calculations. Therefore, we assumed efficiency for a typical centrifugal pump used as a turbine to operate in the range of 65% to 75%, especially since we don't know the exact pressures during operation. This gave us a turbinelgenerator combined efficiency of 60% to 70%. For design purposes, the lower number should probably be used. If a Francis turbine were used at any of the 3 sites, efficiency could be as high as 90 to 93%; however the initial cost of the turbine is at least 10 times that of a centrifugal pump turbine. If the outlet pressure was zero at the third site, an impulse turbine could be used with efficiencies as high as 80 to 84%, but at a cost 5 to 8 times as high as a centrifugal pump turbine. We don't suggest using any kind of belt drives or gear boxes as either of these can introduce as much as another 10% loss in efficiency. We have provided cost estimates for the turbine, generator and switchgear based on prices provided by various vendors and our experience with similar equipment. These costs and the equipment suggested are based only on the initial data provided by the City and our subsequent high level power production analysis. It should be noted that the data provided by the City only had flow data recorded on a daily basis and did not include companion pressure differentials. For a more complete picture of the possible power output and production, the data should be confirmed on an hourly basis and include companion differential pressure data. Carlsbad Connection #3 Hydroelectric Feasibility Study The estimated cost for the turbine, generator and basic control system package at each site are listed below: Site #3 $118,000 Site #3B $88,900 These prices above do not include bypass piping, valves, power house structures, utility interconnection requirements, utility metering, transformers, station service, monitoring systems, installation, shipping, markup, or taxes. A "Project" installed cost estimate was developed and integrates the individual major equipment costs into one overall estimate. This estimate has the following assumptions: Each site is physically located separate from each other. Sites 3 and 3A will be located within a new underground structure and that station service (lights and outlets), monitoring systems and transformers either already exist or can be easily tapped into. The bypass piping, or piping required to connect the turbines, was described in the Installation section above. Each turbine will require at least one TSV, and most likely a downstream isolation valve. Each valve must meet National Sanitation standards. In addition, the TSV must be automatically operated with a failsafe closing mechanism. The estimated cost for the TSV, isolation valve and installation at sites #3 and #3A is $25,000. Site #3B will require much smaller equipment since the pressures and flow are lower, so the valves are estimated to cost $15,000. The utility will require various protective relays and equipment as part of the installation. In addition, most require a manual disconnect switch to isolate the generator controls from the utility power. Estimated cost of a manual disconnect is $1200. The basic control system package includes the typical protective devices required by the utility, but does not include a manual disconnect switch. The utility may require additional devices or power factor correction capacitors, but with the size of the units, that is not likely. Carlsbad Connection #3 Hydroelectric Feasibility Study We have not included the cost to negotiate the agreement with the utility, or any special distribution system facilities that the utility might require the project owner to finance. There should not be any special facilities required since these projects are relatively small and should have a minimal impact on the utility system. Since the protective relay equipment is included in the basic controls package, the switchgear installation and manual disconnect is estimated at $4,700 per site. Finally, there will be the cost of installing the generator, turbine and controls. Each of the turbines and generators will be mounted on a common frame. The frame will simply bolt to the slab floor. The estimated cost to install each turbine and generator combination is $5,000 per unit, or if two units are installed at a site, $10,000 per site. Summary of Costs The estimated cost for the three site Project with double generator units at each site to accommodate the flow ranges throughout the year based on the output flow data in Appendix E is $1,158,000. On an incremental basis this results in $3,457/kW installed. Appendix H is a Total Cost Estimate Summary of the installation costs for the three proposed Connection 3 solutions. The cost summary details out major cost items and includes typical General Contractor soft costs. Typical non-renewable energy projects of this output capacity cost an average of about $2,20O/kW so one can determine that this project would be more expensive on an incremental basis. However, the renewable energy project enjoys a few more revenue streams that are not available to conventional power system. The Section on Financial and Economic Factors will explore this more completely. Carlsbad Connection #3 Hydroelectric Feasibility Study It was determined after some research that "hydro-turbines" in the size range that would fit into the project were not commercially available. We found hydro-turbines starting in about the 1 MW capacities and on up to several hundred megawatts and, then, in sizes as small as 500 watts to about 3 kW. The larger capacities were obvious Utility scale types of equipment and the smaller sizes were for very small commercial and residential installations. There was a gap in between which was found to be filled by the reversible pump-generator (induction motor) manufacturers. These types of pumps have been manufactured for at least 50 years with very little changes in design giving them high marks for technical feasibility. Using centrifugal pumps and hydraulic turbines has been utilized numerous times over the years giving additional comfort in knowing that this application does indeed work. Additionally, many technical papers and handbook chapters can be found on the subject. Refer to Appendix I for a manufacturer's brochure on the type of pump selected for this Project. The design requirements for interconnection to SDGE utility system are uniformly set fourth in a standard set of guidelines known as Rule 21. This set of rules dictates the utility's grid protection device requirements and the physical arrangement of disconnects and metering. These rules also include device requirements to prevent generator fault current contributing to the utility system in the event of a grid fault. A complete copy of SDGE's Rule 21 can be downloaded by going to the following link: htt~://www.sd~e.com/tm2/~df/elec elec-rules erule2l.odf Carlsbad Connection #3 Hydroelectric Feasibility Study PROJECT ECONOMICS AND FINANCIAL FACTORS LIFECYCLE AND COST-BENEFIT ANALYSIS The life cycle cost model is overviewed in Appendix J and shows the financial considerations of the project development. The first year is an investment year where the initial engineering will be performed, equipment purchases contracted and construction started and will conclude the construction and begin the commissioning of the project. Due to anticipated electrical and gas utility escalations, the savings will increase over the term. Maintenance will also increase as these contracts are traditionally adjusted yearly by a published Consumer Price Index (CPI). The cost estimate that was developed is a conservative estimate due to the preliminary nature of this feasibility study and design. Therefore, the savings estimate is very conservative. The 20 year Life Cycle Analysis includes the following key inputs and revenue streams: Inputs o Project installed costs o Estimated displaced electric energy o City financing rate o Operations & Maintenance costs o Escalation rates Outputs o Electric Energy Savings o Renewable Energy Payments o Carbon Credit Payments Carlsbad Connection #3 Hydroelectric Feasibility Study The Life Cycle Cost analysis yielded a simple payback of 9 years and a Net Present Value (NPV) of a 20 year cash flow of nearly $6,000,000. Although the NPV shows a good present day value over 20 years, the Simple Pay Back Period is about 2 to 4 years longer than the generally accepted 5 to 7 year pay back. There are additional economic factors that the City should consider that are beyond the scope of the study in evaluating the economic feasibility such as low interest loans, grants and feed-in tariffs. The following Section overviews all of the currently know economic incentive programs and alternative revenue streams that are or may be available to enhance this project's economics. Carlsbad Connection #3 Hydroelectric Feasibility Study ECONOMIC INCENTIVE PROGRAMS AND REBATES Producing energy from a renewable energy source, such as water potential in this case, opens up many doors with respect to capital incentive and rebate programs, special credits for energy production, special credits for reducing green house gases and creative methods to "store" energy produced and redistribute that energy. The following sub sections briefly outline the many programs that this particular project may have the opportunity to take advantage of which will assist in the project to become a financially successful project. INCENTIVES AND REBATES Since the City of Carlsbad is a municipal entity, it is not eligible to receive any tax benefits for installing and owning renewable energy projects. However, there are usually other types of incentive programs available to them since they purchase energy from utilities. Usually, the incentive programs are financed by utility rate payers and, therefore, allows municipals to take advantage of the incentive programs. One such California program is the Self Generation Incentive Program; htt~://www.sdenerm7.orrr/uploads/2008 SGIP Handbook-rl- 080516.~df, however, there are no available incentives in this program for hydro-electric power, even though it is considered a renewable "fuel". There is a small grants program for which this Project may be eligible through the California Energy Commission's Emerging Rebate Program. The specifics on this program can be downloaded from this web site: This particular program is an Energy Innovations Small Grant (EISG) Program and provides up to $95,000 for hardware projects and $50,000 for modeling projects to small businesses, non-profits, individuals and academic institutions to conduct research that establishes the feasibility of new, innovative energy concepts. Research projects must target one of the PIER R&D areas, address a California energy problem and provide a potential benefit to California electric and natural gas ratepayers. Renewable energy credits (XECe) represent a right b market characteristics asmciated with a "Green" or environmentally Ken@ generating &cili@ and energy wcurity. Renewable Energy '/',--,,- producer^ of "greenm power can sell RECs as well as the power iteelf, increasing their profite, while other interests can buy or trade RECs for reasom ranging fmm improving corporate image to samg regulatory compliance. When RECs are traded, the entity purchasing the RECs gain8 the right to claim environmental benefits. Renewable Energy Certihtes are dm commonly referred to as Green Tags, Renewable Energy Credib, Tradable Renewable Certacates (TRCe), and environmental attributas. RECsr will most likely be atsigned to SDGE and will, therefore, appear on the Citfe utility bill aa a credit. They are calculated at about $O.O!2kWh and are shown in the Life Cycle Cost Andysb as a revenue stream. Edssione trading (or emission trading) is an admhis-tive approach used ta control pollution by providing economic incentives for achieving reductions in the emissions of poUutajlts. It is somethee ded cap and trade. Carlsbad Connection #3 Hydroelectric Feasibility Study A central authority (usually a government or international body) sets a limit or cap on the amount of a pollutant that can be emitted. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which A coal power plant in Ohio. Due to emissions represent the right to emit a specific amount. The total amount of allowances and credits cannot exceed the cap, limiting total emissions to that level. Companies that need to increase their emission allowance must buy credits from those who pollute less. The transfer of allowances is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed. Thus, in theoly, those that can easily reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest possible cost to society. There are active trading programs in several pollutants. For greenhouse gases the largest is the European Union Emission Trading Scheme. In the United States there is a national market to reduce acid rain and several regional markets in nitrous oxide. Markets for other pollutants tend to be smaller and more localized. The City of Carlsbad may have the possibility to contract with Poseidon to purchase the Carbon Credits produced by the Hydro Project. The REC's are shown in the Life Cycle Cost Analysis as a revenue stream. The revenue is calculated at $lO/off-set-ton-year. Shown below are maps of the United States and of the world, by clicking on the maps you can read more about how the trading markets work and how each area trades credits. These maps are provided courtesy of: Element Markets LLC 3555 Timmons Lane, Suite 900 Houston, TX 77027 USA P: 281.207.7200 F: 281.207.721 1 contactus@elc?n1t?11t1narkeL8.com Carbon Credits Gives Incentives to Businesses to Clean Up the Environment - Carbon offsets represent reductions in GHG emissions as a result of project activities. Carlsbad Connection #3 Hydroelectric Feasibility Study Project types span various categories: methane capture at landfills, in agriculture or at coal mines; forestly; energy efficiency; and renewable projects which displace coal/natural gas generation. Institutions and individuals purchase offsets for multiple reasons: To manage carbon liabilities To advance corporate sustainability goals while minimizing costs To support the development of a "green" brand To comply with existing market regulations or to anticipate future regulations To understand and gain expertise in emerging carbon markets Additionally, organizations can purchase offsets to support specific project types or in specific geographies. High-quality carbon credits are those that are real, measurable, permanent, and additional. Real: - The project reductions must be proven to have genuinely taken place. Consequently, it's important that emissions reductions are verified by an objective third party. Measurable: - Emissions should be quantified using recognized measurement tools or in accordance with robust methodologies. Permanent: - Reductions should be permanent and unlikely to be reversed. Additional: - The project. activity should not be one which is mandated by any local or federal regulations. Moreover, revenue from the sale of credits should contribute significantly to ensuring that the project is viable. Recently, Assemble Bill 2466, the Local Government Renewable Energy Self-Generation Program was voted into law and Chapterized in September of 2008. This bill, now law, allows for municipals to generate renewable power at one location and "net meter" that power to other locations owned by the municipal. In effect, any excess renewable power generated at one facility can be exported on the utility grid to other facilities and the amount of power exported can be netted against the other facility's meter. Chapter 540 is the actual legislation and was added to the California Public Utilities Code. A copy of this legislation can be found in Appendix K. Carlsbad Connection #3 Hydroelectric Feasibility Study The major resultant of this legislation has no physical rnoneta~y value, but it does eliminate the "old way of approaching energy installations. A municipal does not have to build a renewable project at every City owned facility, and can now instead, build one larger facility (which is usually less expensive due to economies of scale) and use that one facility to supply power to its other facilities up to 1 megawatt in capacity. This legislation also grants the ability for the City to generate renewable energy at one site and export through the utility grid to any of its other facilities without any other add-on fees such as paying the utility a "Wheeling" tariff. FEED IN TARIFFS (FIT) The California Public Utilities Commission (CPUC) has approved long-term prices for the state's utilities to buy renewable energy from their customers. For seven of the state's utilities, the so-called "feed-in tariff," was approved in February 2008 and applies to renewable energy systems located at public water and wastewater facilities, but for Pacific Gas and Electric Company (PG&E) and Southern California Edison (SCE), a separate feed- in tariff applies to any customer-located renewable energy system up to 1.5 megawatts in capacity. The tariff requires signing a long-term contract for 5, 10, or 15 years, but the price is adjusted based on the time of day of the power generation. For instance, for a system producing power throughout the day, a 15-year contract signed in 2008 would earn about 15 cents per kilowatt-hour on a summer weekday, while a system generating power from 8 a.m. to 6 p.m. (such as a solar power system), would earn about 22 cents per kilowatt-hour under the same circumstances. Overall, the tariffs range from 8 to 31 cents per kilowatt- hour. A Feed-in Tariff (Feed-in Law, solar premium or Renewable Tariff) is an incentive structure to encourage the adoption of renewable energy through government legislation. The regional or national electricity utilities are obligated to buy renewable electricity (electricity generated from renewable sources such as solar photovoltaics, wind power, biomass, and geothermal power) at above market rates set by the government. Also known as Renewable energy payments the higher price helps overcome the cost disadvantages of renewable energy sources. The rate may differ among various forms of power generation. Carlsbad Connection #3 Hydroelectric Feasibility Study The following factors were identified as beneficial investment characteristics of this Project: 1. Provides an Annual Utility Budget savings to offset operating cost 2. Provides protection against energy price volatility 3. Provides greater overall energy efficiency 4. Lowers site emissions, thereby lowering carbon footprint 5. Creates C02 emission credits, (Carbon Credits) 6. Creates renewable energy credit commodity, (RECs) 7. Creates a good Public Relations image Carlsbad Connection #3 Hydroelectric Feasibility Study By implementing this project, the City of Carlsbad can reduce its Carbon Footprint by 807 MMT per year. This amount was determined by using the following factors: The annual electricity "displaced" by installing the hydro-power facilities in kwh. Emissions of carbon dioxide (C02) based on the fuel*. (this is the Fuel Conversion Factor, provided by the IEAI) An example calculation would be: 2,024,565 kwh per year electricity displaced x 878.71 lbs carbon dioxide (C02) per MWh* I 1,00012,204.62 = 806.9 metric tonslyear C02. Appendix L summarizes the carbon footprint as Green House Gas Reduction amounts for each of the three sites at Connection #3. Carlsbad Connection #3 Hydroelectric Feasibility Study If the economics as outlined above are within the required return requirements acceptable to the City, then the following next steps should be implemented: The assumptions used to develop our conclusions should be converted into facts. The main assumptions requiring further evaluation are the construction feasibility and integration as well as interconnection costs. A preliminary design of each power station should be performed and an application for interconnection should be submitted to SDGE. It should be noted that the data provided by the City only had flow data recorded on a daily basis and did not include companion pressure differentials. For a more complete picture of the possible power output and production, the data should be confirmed on an hourly basis and include companion differential pressure data. Additonal research should be performed to conclusively determine exactly what the REC's. FIT'S and Carbon Credits revenue stream will be. Obtain three equipments bids for the reverse flow pump-generators, Turbine Shut- Off Valves and the paralleling switchgear. Re-run the Life Cycle Cost Analysis and make a final determination of the disposition of the Project. Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX A CARLSBAD WATER DISTRICT BOUNDARY MAP Water Districts I Water District OLWENHAIN CARLSBAD 7635 Faraday Av Carlsbad, CA 92008 (760) 602-2420 VALLECITQS 201 Vallecitos de Oro San Marcos, CA 92069 (760) 744-0460 OLIVENHAIN 1 966 Ol iven haain Rd Encinitas, CA 92024 (760) 753-6466 J:\eargl92\produe$\pl~nnkl@rl W.OnWater Dm.rmcd 1 July 2005 Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX B 78 79 80 81 82 83 84 85 86 87 Z6 77 3 80 81 &? 83 84 & WPS WPS WPS WPS WPS 88 89 @ CALAVERA PUMP STATION BUENA VISTA PUMP STATION ELLERY PUMP STATION ECR RECLAIMED PUMP STATION ENClNAS RC TREATMENT PLANT PS CRC WCLS 5950 EL CAMINO REAL CMWD CONTROL ROOM CENTER MAERKLE UPPER CHLORlNATlON ST 3600 BLK College BI (NE corner of College BI & CVDJ 1600 BLK OF BUENA VISTA DR 2300 BLK JANIS WAY APPROX 2877 FT NIE OF COLLEGE BLVD AND CANNON RO 5203 SUNNY CREEK RD 2200 ELK LA COSTA AVE UO ECR 700 FT N OF (NORTH) TAMARACK AV ON COLLEGE BLVD WEST CORNER OF ZONE 5 PARK WPS MAERKLE LOWER CHLORIANT1ON ST C RESERVOIR (FUTURE RC) PRS ADAMS INFLUENT TO MRKLI PRS OMWD FIRE CONNECTION PRS OCEANSIDE INTER-TIE CAMINO HILLS RC PRS 90 91 92 93 94 95 SE CORNER OF BLACKRAIL RD & POlNSETTIA LN 5203 SUNNY CREEK RD 194 FT NW OF RICH FIELD DR AND COLLEGE BLVO ECR @ PAR SE CORNER ECR @ PAR SE CORNER CBD CBD D SITE RC PUMP STATION CBD CBD CBD NA POT CBD CBD CBD CBD CBD CBD 96f 94 97 1 95 @ @ 90 91 92 @ POT POT POT - POT RECL POT POT POT RECL CBO CBD CBD CBD CBD CBD CBD wps 1 MAERKLE PUMP STATION WPS NORTH COLLEGE RC PUMP STATION WCLS PRS PRS PRS ITC PRS RECL 6450 EL CAMINO REAL POT POT RECL POT RECL POT RECL WPS WPS PRS SALK PRS 1 SALK AVE WIO EL CAMINO REAL CBD POINT D PUMP STATION POINT D RC PUMP STATION PRS APPROX. 682 FT NIE OF AOMIN. BLDG. WHIPTAIL PRS 1 WHIPTAIL LOOP NIO FARADAY AVE CBD RECL Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX C CARLSBAD WATER DISTRICT PIPING AND PRESSURE ZONE MAP @ City of Carlsbad Potable Water - *- IYYY- mm- krap- - Rrm* 1m m m sw -m -YI L.. -an -t# -m -7 " l -a -+* , - -119 - no -m -m -I# -100 - 1010 #rpl* mw.r-- lllYw- u- 0- Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX D CARLSBAD WATER DISTRICT PRESSURE REDUCING STATION MAP & MAERKLE RESERVOIR SITE MAP FOR CONNECTION #3 CITY OR CARLSBAD WATER PIIES3URE REDUCING STATIONS Carblmd Connectlm #3 HydroeMe F~~IbIllty Study APPENDIXD WRKLE OVERALL WATER PIPING PLAN Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX E DETAILED CONNECTION #3, #3A & #3B 5 YEAR FLOW DATA AND ESTIMATED POWER OUTPUT DATA SHEETS ( A8 YO -ION FOR VARIABLE FLOWS I Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX F HYDRO TURBINE TYPES & SELECTION CRITERIA Carlsbad Connection #3 Hydroelectric Feasibility Study Tvoes of Turbines The POtentisl energy in the water is converted into mechanical energy in the turbine, by one of two fundamental and basically different mechanisms: The water pressure can apply a force on the face of the runner blades, which decreases as it proceeds through the turbine. Turbines that operate in this way are called mctlon turbine. The turbine casing, with the runner fully immersed in water, must be strong enough to withstand the operating pressure. In the second case, the water pressure is converted into kinetic energy before entering the runner. The kinetic energy is In the form of a high-speed jet that strikes the buckets, mounted on the periphery of the runner. Turbines that operate in this way are called turbine. As the water after striking the buckets fails into the tail water with little remaining energy, the casing can be light and serves the purpose of preventing splashing. Imoulse Turbines Pelton turbines Pelton turbines are impulse turbines where one or more jets Impinge on a wheel carrying on its periphery a large number of buckets. Each jet issues through a n~le with a needle (or spear) valve to control the Row. They are only used for relatively high heads. The axes of the nozzles are in the piane of the runner. To stop the turbine - e.g. when the turbine approaches the runaway speed due to load rejection- the jet may be deflected by a plate so that it does not impinge on the buckets. In this way the needle valve can be closed very slowly, so that overpressure surge in the pipeline is kept to an acceptable minimum. Any kinetic energy leaving the runner is lost and so the buckets are designed to keep exit velocities to a minimum. The turbine casing only needs to protect the surroundings against water splashing and therefore can be very light. Turgo turbines The Turgo turbine can operate under a head in the range of 30-300 meters. Like the Pelton it is an impulse turbine, but its buckets are shaped differently and the jet of water strikes the piane of its runnar at an angle of 20'. Water enters the runner through one side of the runner disk and emerges from the other. Whereas the volume of water a Pelton turbine can admit is lhniied because the water leaving each bucket interferes with the adjacent ones, the Two runner does not present this problem. The resulting higher runner speed of the Turgo makes direct coupling of turbine and generator more likely, improving its overall efficiency and decreasing maintenance cost. Cross-flow turbines This impulse turbine, also known as Banki-Michel in remembrance of its inventors and Ossberger after a company which has been making it for more than 50 years is used for a wide range of heads werlapping those of Kaplan, Francls and Pelton. It can operate with discharges between 20 Itreslsec and 10 cubic meters per second and heads between 1 and 200 meters. Water enters the turbine, directed by one or more guide-vanes located in a transition plece Upstream ofthe runner, and through the first stage of the runner, which runs full with a small degree of reaction. Flow leaving the first stage attempts to uosses the open center of the turbine. As the fkw enters the second stage, a compromise direction is achieved which causes signKlcant shock losses. The runner is built from hvo or more parallel disks connected near their rims by a series of curved blades. Their efficiency is lower than conventional turbines, but remains the same level for a wide range of flows and heads. Reaction turbines Francis turbines. Frands turbines are radial flow reaction turbines, with fixed runner blades and adjustable guide vanes, used for medium heads. In the high speed Francis the admission is always radial but the outlet is axial. Frands turbines can be set in an open flume or attached to a penstock. For small heads and power open Rumes are commonly employed. Steel spiral casings are used for higher heads, designing the casing so that the tangential velocity of the water is constant along the consecutive sections around the circumference. Small runners are usually made in aluminum bronze castings. Large runners are fabricated from stainless steel plates, welded to a cast steel hub. Kaplan and propeller turbines Kaplan and propeller turbines are axial-flow ream turbines, generally used for low heads. Large Kapian turbines have adjustable runner blades and may or may not have adjustable guide vanes. if both blades and guide-vanes are adjustable it is descrlbed as "double-regulated". If the guide-vanes are fixed It is "Singls-regulated'. Unregulated propeller turbines are used when both flow and head remain practically constant, and are most common in micro-hydro applications. Draft tubes and diftuser tubes In reaction turbines, to reduce the kinetic energy still remaining in the water leaving the runner a draft tube or diiser stands between the turbine and the tail race. A well-designed draft tube allows, within cartein limits, the turbine to be installed above the tailwater elevation without losing any head. As the kinetic energy is propoltional to the square of the velocity one of the draft tube objectives is to reduce the outlet velocity. An effident draft tube would have a conical sedi0n but the angle cannot be too large, othetwise flow separation will occur. The optimum angle is 7' but to reduce the draft tube length, and therefore its cost, sometimes angles are inaeased up to 15'. Drafl tubes are particularly impo~lant in high-speed turbines, where water leaves the runner at vely hlgh speeds. In horlzontai axis machines the spiral casing must be well anchored in the foundation to prevent vibration that would reduce the range of discharges accepted by the turbine. Carlsbad Coltneetloa #3 HydmkWc FmibULty Study Exphation of Turbine Selections fhe am wenl besic types of turbtnes, each opastm most Mecthly In a cemh pressure and fkw range. Many times the htrblne types am chamcbdd but their &Wive "head mngem. The llst Mow shows generally accepbd values by tuhlne fyp : IIaQamk - In Fwt Kaplan and Propller 2<H*40 6*H< 125 Fnnck 10c H c3~1 30<H<375 Pelton M)cH*1300 150cH ~5000 Banki - Michdl 3eHc250 9sHe750 Turgo 6OcHc260 60<Hc76O The graph Wow Is andher useful dooi which includes flow hfonnatlon, so the turbine selection is more refined. The vertiual mls unb are for Head in Meters, and the hotkonbl axls for flow in cubic meters pet mnd. Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX G HYDRO TURBINE DRAWING DIAGRAMS t .......................................................................... 7 I I - Qwowmmcclst~oawn '6' ' UDIEPW~A~CX~CXI~~ WAWaRM.Q-#l ! I, ! CIWSEAICORM) I ! I t - KuLQJnn5aF IIR- @ rrxcrxwm~ mIm-v*UT @ tlxllxcfm @ 16 x 1s x 16' m i I 1 @ WxWxicrm ! 1r I .............................................................. I-"- '- U(VRIEQ 00mr:ean -WI*T I i PAC ! - 6 p.ac 8 lKml ImE 1 >-u+ m4- W BDOR*x(E -------, m-m- IaQAacc orm CONCEPTUAL ROW MAGRAM CiTY OF CARLSBAD CONNECTION 3A FLOW DIAGRAM .... -(.. M- 1 a (. .aw 4 Notes: 51 51~ Ora-current retoy 59/27 Ovcndlaqe /Undsno(lopo rdoy 40 Loss Of oxsilation rdoy 32 Rmw power ray 64R Rotor earth-faun remy 51LE Earth-fault rsby Yoin Transforms HYDRO PROJECT Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX H HYDRO TURBINE INSTALLED COST ESTIMATE SUMMARY .-".-. -...-. ---.- -..".".... , . 8ase Contract Subtouls - 5 Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX I Confidential Ea GOULDS PUMPS Goulds 3400 Double Suction Pumps ITT Engineered for life Goulds 3400 I I The Most Complete Line of Double Suction Pumps in the Industry Small Capacity - 3408A Flows to 8,000 GPM Capacities to 6,000 GPM (1.363 m3/h) Heads to 570 feet TDH (174 m) Temperatures to 250" F (120'C) Working pressures to 175 PSI (1207 kPa) - Medium Capacity - 3409,341 0 Flows to 12,000 GPM Capacities to 12,000 GPM (2,725 rn3Ih) Heads to 850 feet TDH (259 m) Temperatures to 250' F (120°C) Working pressures to 400 PSI (2758 kPa) Large Capacity - 3420 Flows to 65,000 GPM Capacities to 65,000 GPM (14,762 m3/h) Heads to 400 feet TDH (122 m) Temperatures to 275'F (1 35°C) Working pressures to 200 PSI (1 379 kPa) Extra Large Capacity - 3498 Flows to 225,000 GPM Capacities to 225,000 GPM (51,098mYh) Heads to 800 feet TDH (244 m) I Temperatures to 275' F (135°C) 3498 Working pressures to 250 PSI (1,724 kPa) 250- 800 200 150: 988 4 1m- 3 75 - 2 e 10 7 100 500 1000 5.000 10,000 50.000 100,000 200,WO opadty. U.S. GPM 50 100 500 1,000 5,000 10,000 50,000 Capacity. Cubk Meten Per Hwr 3 --:ge Large Small Capacity Mechanical seals standard Dimensions VIEWED FROM PUMP END LEFT HAND ROTATION RIGHT HAND ROTATION EDISCHARGE 25 NPT PT NPT .25 NPT BOTH NOZZLES BOTH NOZZLES 80TH NOZZLES (GAUGE) +A 4 (DRAIN) + A+ (GAUGE) I FLANGES ARE 125Y FFPERANSI 816.1. HOLES STRADDLE SUCTION P 0.94 HOLES 4 PLACES FMX 4 PLACES DISCHARGE PUMP FWT DIMENSIONS DISCHARGE FOOT FOOT .25 NPT VEN .5 NPT EN% Materials of Construction ,. Caslng Cast Imn >rp 8. &- lmdler I Bronze mdlw Wear rino lomionan Bronze All dimmrionr are in inch- (mml and an mt to be urcd for mnrtruaion or instaliation prporn. standard mtation is right hand IW. Optiowl mtation is left hand (CW. Small Capacity Model 341 0 (Heavy Duty) : ...-? Horizontal or Vertical Mounting Alloy constructions not Grease or flood oil lubricated bearings Packing or mechanical seals 1 INPRO VBX labyrinth bearing available (including cartridge isolators standard and split type seals) n ,l-J.--. ~als of Construction MINIMUM HE*OROOM REWIRED TO REMOVE UPPERHUF CISIffi 0.4217 37.540 Ur75081) llYJU92l 17.62M 7.7.50572) 17mO B.54(1@3) 21.750U) 13M)W 15.m081) 2tWOS9) 2168(9853 WCMN mGE WOE WE 1wz.i~ aigm 17~0 xm(6101 3amm51 z1.w~) 13~~0303 ibmm xw(6101 mm 17m(686) ~nom) I 1~4.15 21.75~) 13~)~ iami4m zs.m(w ISWI~IP AI dumnsonr an m nrha lmml and are na m bcrwdbr ronltrucuon or nsta facaon prrporn S~CI W.ll.486 llld. 3&10. BilD21 6 W.22 anlurn#md wth ZSO#iF dsrnargcflanpc a3 standam Standad mmaon 0s ngnl hand (0 Optlona mtatoon 6 la wnd ICW std umgs w care lSOURi 01 300UW 1 angor Model 3400 Standard Design Features for a Wide Range of Heaw-Dutv Industrial. Munic~al and d~~opr.tia~~in pk.ai"hcbr.&"gWlmp~tIot.50" durm mMn. HEAW OW SHAFTS DsgndfanininuC"~inhcta*lW ~~rs~,h.nnrl.nd~wM. - sht skem arr rvaihM an a wn0y ofnu&linddi.%,~nNk~ndhud malo.rua.3~ h!&mozn +m*rs qmi&b.!anad*Nndnd forsnwhm. HEAW DUrY CSINGS . . BALANCED DESIGN / :' Du.lroM-6ai*llllltllltllltLbCccrl h: ~l.Wumlu~Mlt~op"Ie ' nop.daaabrx-~ncapadywat , imM hi hd. ~rnbind *nd, &.hb ~ni~for~bb~theIUDI*rrii degd br hi d*bW, nd bw ""in,-. , , . Model 3410 pump sm. / LARGE INLET ARM ~Nm~-nd-mvmnh clu*thwmhci&. STUFFING BOX ,'- ~~~",d~~~~"9 omagcnd,plk~am~*awkmnit theapF&&m. , - POSmVE UQUID SWNG RENRNABLE IMPELLER WEAR RINGS m&d,kkd~"h+hbrpnnn~ nma of ,""Pi* *nm .nd pmBI om+ hubsfmmuslr SMdrdon hvand-bw oh & w0 * w. Op6op6oI I" an&. - DOUBLE ROW THRUST BEARING LABYRINTH BEARING PROTECIION PRO Services" Extending Equipment Life ... I Product Repair (all types and brands of rotating equipment) Service Center Repair Field Service Perk Supply Rdiabllity Improvement Imntory Management Replacement/Exdrange Turnkey Repairllnstallation *Training Optimization of Assets Predictive AnalysislCondiim Monitoring Root Cause Failure Analysis Pump & System Assessments Upgrades - Medlanical& Hydraulic Maintenance Management/Conbact Maintenance Technical Expertise . Fast Turnaround Factory Trained Emergency Service - Service Personnel 24 hourdday, 7 dayslweek Quality IS0 and Safely Certified PmSm~rt'~ encompasses the latest technology* In condition monltorlng to transform your Predictive Maintenance pmgram lnto a Plant Pmfltabllity pmgram. It provides a at- effective solution to malntalning uptime on all of your rotating equlpment. ProSmart continuously monitors, analyzes and annunciates an alarm when critical criteria is not met. By Identifying, diagnosing, and sounding an alert to potential equipment problems before they have a chance to manifest lnto unexpected downtime or catastrophic failure. ProSmart helps to assure plant profitability. I PmSmarl delivers benefits that go right to me bonom line. , Extends equipment life Optimlzes wstly *walk arounds" by skilled personnel Can help reduce overall equlpment failures and the wst of downtime Sends alerts prior to potential catastrophic process failures Automatically alerts personnel to machine problems Consolidates data for equlpment optimization ('Patent pending) ProSmart Is a wireless machinery monitoring system that collects and analyzes operating data automatically every 5 seconds. Integrated analysis capabilities provide enhanced data and reporting functions. PUMPS MART System Options Energy savings - Provides for pump protection Low flow protection (torque-based) when low levels are encountered in standpipe Provides upper speed limit to protect motor and drive from .excessive load Provides lower speed limit to allow Model 3500XD air removal system to work satisfactorily Several proven control schemes allow for the maximum benefit of variable speed drive system Allows for future operating condition with same pump Allows for same pump size to be used when multiple pumps are involved with large TDH variations among them Allows for one impeller diameter (and Back Pullout) to be used for multiple pump installations - minimize inventory for critical services . . . .- :... Model: 3409 Size: 8x12-22M Group: S 60Hz RPM: 1785 Stages: 1 Job/lnq.No. : Purchaser : UNDEFINED End User : Item/Equip.No. : Service : ro~aule vvarer Order No. : Operating Conditions Liquid: Water Temp.: 70.0 deg F Issued by : Darryl Franklin Quotation No. : DF08-12-03 01 Date : 12/05/2008 Pump Performance Published Efficiency: 64.0 % Suction Specific Speed: 9,978 gpm(US) ft iated Pump Min. Hydraulic Flow: 740.6 gpm Min. Thermal Flow: N/A S.G.Nisc.: 1.000/1.000 cp iated Total Flow: m Non-Overloading Power: 114.5 hp TDH: Imp. Dia. First 1 Stg(s): 12.5000 in NPSHa: NPSHr: 8.9 R Solid size: Shut off Head: 184.4ft % Susp. Solids Vapor Press: (by wtg): Max. Solids Size: 1.3200 in Notes: 1. The Mechanical seal increased drag effect on power and efficiency is not included, unless the correction is shown in the appropriate field above. 2. Magnetic drive eddy current on power and efficiency is not included. 3. Elevated temperature effects on performance are not included. 4. Non Overloading power does not reflect v-beltlgear losses. Based on CDS A-8344-5 [@GOULDS PUMPS CENTRIFUGAL PUMP CHARACTERISTICS Model: 3409 Size: 8x12-22M Group: S 60Hz RPM Variable Stages: 1 Job1inq.No. : Purchaser : UNDEFINED End User : Item/Equip.No. :( Service : Potable w Order No. : Operating Conditions Liquid: Water Temp.: 70.0 deg F S.G.Nisc.: 1.00011.000 cp Flow: 2,100.0 gpm TDH: 120.0 fl NPSHa: 40.0 fl Solid size: % Solids: Max. Solids Size: 1.3200 in Issued by : Darryl Franklin Quotation No. : DF08-12-03 01 Date : 12/05/2008 Pump Performance @ 1785 RPM Actual Pump Eff.: 64.0 % Suction Specific Speed: 9.978 gpm(US) fl Actual Pump Power: 100.5 hp Mln. Hydraulic Flow: 740.6 gpm Total Power Loss: 0.00 hp Min. Thermal Flow: NIA Rated Total Power: 100.5 hp Imp. Dia. First 1 Stg(s): 12.5000 in NPSHr: 8.9 fl Non-Overloading Power: 114.5 hp Shut off Head: 164.4 R Vapor Press: Notes: 1 .The Mechanical seal increased drag effect on power and efficiency is not included, unless the cqrrection is shown in the appropriate field above.2. Magnetic drive eddy current and viscous effect on power and efficiency IS not 1nciuded.3. Elevated temperature effects on performance are not included.4. Non Overloading power does not reflect v-beitlgear losses. Based on CDS A43444 [~G~ULDS PUMPS CENTRIFUGAL PUMP CHARACTERISTICS Model: 3409 Size: 10x14-20s Group: M 60Hz RPM: 885 Stages: 1 Job/lnq.No. : Purchaser : UNDEFINED End User : Item/Equip.No. Service : ro~aola vvarar Order No. : Operating Conditions Liquid: Water Temp.: 70.0 deg F S.G.Nisc.: 1.000/1.000 cp Issued by : Darryl Franklin Quotation No. : DF08-12-03 01 Date : 12/05/2008 Pump Performance Published Efficiency: 80.0 % Suction Specific Speed: 10,293 gpm(US) R iated Pump Min. Hydraulic Flow: 1.114.2 gpm iated Total I Min. Thermal Flow: N/A - I I . ia. First 1 St-. . 17.6000 il NPSHa: 40.0 n NPSH~: 5.0 n Solid size: Shut off Head: 80.9 ft % Susp. Solids Vapor Press: (by Wg): Max. Solids Size: 1.6300 in . -~~~~ ~ Notes: 1. The Mechanical seal increased drag effect on power and efic ency s not included, unless the correction is shown in the appropriate field above. 2. Magnetic drive eddy current on,power and efficiency 1s not included. 3. E~evateo tmperatJre effects on performance are not included. 4. Non Overloading power does not reflect v-be.Ugear losses. Bared on CDS A45675 [@OULDS PUMPS CENTRIFUGAL PUMP CHARACTERISTICS Model: 3409 Size: 10x14-20s Group: M 60Hz RPM Variable Stages: 1 Job/lnq.No. : Purchaser : UNDEFINED End User : Item/Equip.No. : 4 Setvice : rotame water Order No. : Operating Conditions Liquid: Water Temp.: 70.0 deg F S.G.Nisc.: 1.000/1.000 cp Flow: 2,100.0 gpm TDH: 70.0 ft NPSHa: 40.0 ft Solid size: %Solids: Max. Solids Size: 1.6300 in Issued by : Darryl Franklin Quotation No. : DF08-12-03 01 Date : 12/05/2008 Pump Performance @ 885 RPM Actual Pump Eft.: 60.0 % Suction Specific Speed: 10,293 gpm(US) ft Actual Pump Power: 46.5 hp Min. Hydraulic Flow: 1,114.2 gpm Total Power Loss: 0.00 hp Min. Thermal Flow: NIA Rated Total Power: 46.5 hp Imp. Dia. First 1 Stg(s): 17.6000 in NPSHr: 5.0 ft Non-Overloading Power: 53.2 hp Shut off Head: 80.9 ft Vapor Press: Notes: 1. The Mechanical seal increased drag, effect on power and eMciency is not includea, unless the correction is shown in the appropriate fie.d above. 2. Magnetic dr~ve eody current on power an0 efficiency is not included. 3. Elevated temperatJre effects on performance are not included. 4. Non Overload~ng power does not reflect v-beltlgear losses. Bsred on CDS A45675 @GOULDS PUMPS CENTRIFUGAL PUMP CHARACTERISTICS I Model: 3409 Size: 8x12-21 Group: S 60Hz RPM: 1785 Stages: 1 ( Date : 12/05/2008 Job/lnq.No. : Purchaser : UNDEFINED End User : Issued by : Darryl Franklin Item/Equip.No. Quotation No. : DF08-12-03 01 Service : , .,.--,- ..-.-, Order No. : Operating Conditions ----mp Performance Liquid: Water Suction Specific Speed: 11,805 gpm(US) ft Temp.: 70.0 deg F Actual Pump Power: 247.6 hp Min. Hydraulic Flow: 1,485.5 gpm S.G.Nisc.: 1.000/1.000 cp Total Power Loss: 0.00 hp Min. Thermal Flow: NIA Non-Overloading Power: 426.0 hp 40.( NPSHr: Solid size: Shut off Head: % Solids: Vapor Press: Max. Solids Size: 1.0000 in Notes: 1.The Mechanical seal increased drag effect on power and efficiency is not included, unless the correction is shown in the appropriate field ebove.2. Magnetic drive eddy current and viscous effect on power and efficiency is not included.3. Elevated temperature effects on performance are not included.4. Non Overioad~ng power does not reflect v-beltlgear losses. Model: 3409 Size: 8x1241 Group: S 60Hz RPM: 1785 Stages: 1 Job/lnq.No. : Purchaser : UNDEFINED End User : Item/Equip.No. : Service : Potable Water Order No. : Operating Conditions Liquid: Water Temp.: 70.0 deg F S.G.Nisc.: 1.00011.000 cp Flow: 1.800.0 gpm TDH: 338.0 ft NPSHa: 40.0 ft Solid size: Max. Solids Size: 1.0000 in Issued by : Darryl Franklin Quotation No. : DF08-12-03 01 Published Efficiency: Rated Pump Efficiency: Rated Total Power: Non-Overloading Power: Imp. Dia. First 1 Stg(s): NPSHr: Shut off Head: Vapor Press: Date : 12/05/2008 Pump Performance 62.0 % Suction Specific Speed: 11,805 gpm(US) ft 62.0 % Min. Hydraulic Flow: 1,485.5 gpm 247.6 hp Min. Thermal Flow: N/A 426.0 hp 17.7000 in 11.0ft 349.8 ft Notes: 1. The Mechanical seal increased drag effect on power and efficiency is not included, unless the correction is shown in the appropriate field above. 2. Magnetic drive eddy current on power and efficiency is not included. 3. Elevated temperature effects on performance are not included. 4. Non Overloading power does not reflect v-belffgear losses. Based on CDS A48014 BGOULDS PUMPS CENTRIFUGAL PUMP CHARACTERISTICS Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX J LIFE CYCLE COST SUMMARY Carlsbad Connection #3 Hydroelectric Feasibility Study -- APPENDIX K ASSEMBLY BILL 2466 FERC REGULATION OF HYDRO PROJECTS Assembly Bill No. 2466 CHAPTER 540 An act to add Chapter 7.5 (commencing with Section 2830) to Part 2 of Division I of the Public Utilities Code, relating to energy. I Approved by Goveniar September 28.2008. Filed with Secretary of State Scpte~liber 28,2008.1 AB 2466, Laird. Local govermnent renewable cnergy sclf-generation program. Under existing law, the Public Utilities Colnrnissioll is vested with regulatory authority over public utilities. Existing law permits a private energy producer to generate electricity not generated fro111 conventional sources, as defined, solely for its own use or the usc of its tenants, or to or for any electrical corporation, state agency, city, county, district, or an associati011 thereof, but not the public, without becoming a public utility subject to the general jurisdiction of the commission. Existing law requires the co~nnlission to review the charges paid by electrical corporations to private energy producers for electricity not generated fiom collventional power sources and to review standby and transmission charges lnadc by electrical corporations to private energy producers and, afrer the review, to adjust those charges to encourage the generation of electricity from other than conventional power sources. Existing law authorizes the City of Davis to receive a bill credit, as defined, to a benefiting account, as defined, for electricity supplied to the electrical grid by a photovoltaic facility located within and partially owned by the city and requires the colnmission to adopt a rate tariff for the benefiting account. This bill would authorize a local government, as defined, to receive a bill credit, as defined, to a designated benefiting account, as defined, for electricity exported to the electrical grid by an eligible renewable generating facility, as defined, and requires the commission to adopt a rate tariff for the benefiting account. Under existing law, a violation of the Public Utilities Acr or an order or direction of the commission is a crime. Because the provisions of this bill would require an ordcr or other action of the colnlnission to ilnplelnent and a violation of that order or action would be a crime, the bill would impose a state-mandated local program by creating a new crime. The California Constitution requires the statc to reitnburse local agencies and school districts for certain costs mandated by the statc. Statutory provisions establish procedures for making that reimburscmcnt. This bill would provide that no reimbursement is required by this act for a specified reason. Ch. 540 -2- The people oftile State ofCali$o~*rtiu do etract as foliols.~: SECTION 1. Chapter 7.5 (commencing with Section 2830) is added lo Part 2 of Division 1 of the Public Utilitics Code. to read: 2830, (a) As used in this sectjon, the following terms have the following meanings: (1) "Benefiting account" means an electricity account, or more than one account, located within the geographical boundaries of a local government, that is mutually agreed upon by the local governlnent and an electrical corporation. (2) "Bill credit" means an amount of money credited to a benefiting account that is calculated based upon the time-of-use electricity generation co~l~ponent of the electricity usage charge of the generating account, lnultiplied by the quantities of electricity generated by an eligible renewable generating facility that are exported to the grid during the corresponding time period. Electricity is exported to the grid if it is generated by an eligible rellewable generating facility, is not utilized onsite by the local government, and thc electricity flows through the meter site and on to the electrical corporation's distribution or transmission infrastructure. (3) "Eligible renewable generating facility'' means a generation facility that has a generating capacity of no morc than one megawatt, is an eligible renewable energy resource pursuant to the California Renewables Portfolio Standard Program, is located within the geographical bounda~y of, and is owned, operated, or on property under the control of, the local governlnent, and is sized to offsct all or part of thc electrical load of the benefiting account. For these purposes, premises that are leased by a local gover~unent are under the control of thc local government. (4) "Generating account" means tlle time-of-use electric service account of the local governlnent where the eligible renewable generating facility is located. (5) "Local government" means a city, county, whether general law 01. chartered, city and county, special district, school district, political st~bdivision, or other local public agency, if authorized by law to generate electricity, but shall not mean the slate, any agency or dcpartnlent of the state, or joint powers authority. (b) Subject to the limitation in subdivision (h), a local government may elect to receive electric service pursuant to this section, if all of the following conditions are met: (1) The local government designates one or morc benefiting accounts to receive a bill credit. (2) A benefiting account receives service under a time-of-use rate schedule. -3- Ch. 540 (3) The benefiting account is the responsibility of, and serves property that is owned, operated, or on property under the control of the same local governnlent that owns, operates, or controls the eligible renewable generating facility. (4) The electrical output of the eligible renewable generating facility is metered for timc of use to allow calculation of the bill credit based upon when the electricity is exported to the grid. (5) All costs associated with the metering requirelnalts of paragraphs (2) and (4) are the responsibility of the local government. (6) All costs associated with interconnection are the responsibility of the local government. For purposes of this paragraph, "interconnection" has the same meaning as defined in Section 2803, except that it applies to the intcrconnection of an eligible renewable generating facility rather than the energy source of a private energy producer. (7) The local government does not sell electricity exported to the electrical grid to a third party. (8) All electricity exported to the grid by the local government that is generated by the eligible renewable gencrating facility becolncs the properly of the electrical corporation to which the facility is imerconnected, but shall not be counted toward the clectrical corporation's total retail sales for purposes of Article 16 (commencing with Section 399.11) of Chapter 2.3 of Pan I. Ownership of the renewable energy credits, as defined in Section 399.12, shall be the same as the ownership of the renewable encrgy credits associated wit11 electricity that is net ~netered pursuant to Section 2827. (c) (I) A benefiting account shall be billed for all electricity usage, and for cach bill component, at the rate scl~edule applicable to the benefiting account, including any cost-responsibility surcharge or other cost recovery mechanistn, as determined by the commission, to reimburse the Departtnent of Water Resources for purchases of electricity, pursuant to Division 27 (commencing with Section 80000) of the Water Code. (2) The bill shall then subtract the bill credit applicable to the benefiting account. The generation cotnponent credited to the benefiting account rnay not include the cost-responsibility surcharge or other cost recovely mechanism, as determined by the commission, to reimburse the Departlnent of Water Resources for purchases of electricity, pursuant to Division 27 (commencing with Section 80000) of thc Water Code. The electrical corporation shall ensure that thc local government receives the full bill credit. (3) If, during the billing cycle, the generation component of the electricity usage charges exceeds the bill credit, thc benefiting account shall be billed for the difference. (4) If, during the billing cycle, the bill c~dit applied pursuant to paragraph (2) exceeds the generation component of the electricity usage charges, the difference shall be carried forward as n financial credit to the next billing cycle. (5) After the electricity usage charge pursuant to paragraph (I) and the credit pursuant to paragraph (2) are dcter~nined for the last billing cycle of Ch. 540 -4- a 12-month period, any remaining credit resulting fiom the application of this section shall be reset to zero. (d) The comlnission shall ensure that the transfer of a bill crcdit to a benefiting account does not result in a shifting of costs to bundled service subscribers. The costs associated with the transfcr of a bill credit shall include all billing-related expenses. (e) Not more frequently than once per year, and upon providing the electrical corporation with a minitnuin of 60 days' notice, the local government may elect to change a benefiting account. Any credit resulting fro111 the application ofthis section earned prior to the ciianp in a benefiting account that has not been used as of the date of the change in the benefiting account, shall be applicd, and may only bc applied, to a benefiting account as changed. (f) A local governnlcnt shall provide the elcctrical corporation to which the eligible renewable generating facility will be interconnected with not less than 60 days' notice prior to the eligible renewable generating facility becoming operational. The electrical corporation shall file an advice letter with the commission, that complies with this section, not later than 30 days after rcceipt of the notice, proposing a rate tariff for a benefiting account. The commission, within 30 days of the datc of filing, shall approve thc proposed tariff, or speciFy conforlning changes to be made by the electrical corporation to be filed in a new advice letter. (g) The local govcrllment ]nay taminate its election pursuant to subdivision (b), upon providing the electrical corporation with a minilnuln of 60 days' notice. Should the local government sell its interest in the eligible renewable generating facility, or sell the clcctricity generated by the eligible renewable generating facility, in a manner other than rcquired by this section, upon the datc of either event, and the earliest date if both events occur, no further bill credit pursuant to paragraph (3) of subdivision (b) may be camcd. Only credit earned prior to that date shall be made to a benefiting account. (h) An elcctrical corporation is not obligatcd to provide a bill credit to a benefiting account that is not designated by a local government prior to thc point in time that the combined statewide cumulative rated generating capacity of all eligible renewable generating facilities within the service territories of the state's three largest electrical co~.porations reaches 250 megawatts, Only those eligible renewable generating facilities that are providing bill credits to benefiting accounts pursuant to this section shall count toward reaching this 250-megawatt limitation. Each electrical corporation shall only be required to offer servicc or contracts under this section until that electrical corporation reaches its proportionate share of the 250-megawatt limitation based on the ratio of its peak denland to the total statewide peak demand of all electrical corporations. SEC. 2. No reimburselnetrt is required by this act pursuant to Scction 6 of Article XlII B of the California Constitution because the only costs that may be incurred by a local agency or scllool district will be incurred because this act creates a new crime or infraction, elin-linates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of -5- Ch. 540 Section 17556 of the Government Code, or changes the definition of a crixne within the meaning of Section 6 of Article XlIl B of the California Constitution. -* Carlsbad Connection #3 Hydroelectric Feasibility Study Regulation of Hydro Projects Access to water and the use, control and diversion of water flows is subject to federal and state regulation, Other regulations apply to any physical alteration of a stream channel or bank that may affect water quality or wildlife habitat. This is true regardless of whether or not the stream is on private property. If your project will have minimal physical impact, and you are not planning to sell power to a utility, there is a good chance that the legal process will not be too complex. There are many local, state, and federal regulations that govern, or will effect, the construction and operation of a hydroelectric power plant. The larger the system, the more complicated, drawn out, and expensive the permitting and approval process will be. Penalties for not having the permits or necessary approvals can be severe. You will not escape the consequences by pleading ignorance. Although the legal process may seem burdensome, the intention of the laws is to protect all users of the resource, including the plant, fish, and animal communities that utilize the water. When planning a hydroelectric system, your first point of contact should be the county engineer. He or she will be the most informed about what restrictions govern the development and/or control of water resources in your area. The two primary federal agencies that you will need to deal with are the Federal Energy Regulatory Commission (FERC) and the U.S. Army Corps of Engineers. Try contacting the nearest office to you to see if they will assist you; both may be listed in the U.S. government section of your phone book. FERC is responsible for licensing all non-federal government hydroelectric projects under its jurisdlction. A hydroelectric project is within the jurisdiction of FERC if any of the following conditions apply: the project is on a navigable waterway; the project will affect interstate commerce (i.e,, if the system is to be connected to a regional electric transmission grid); the project uses federal land; or the project will use surplus water or waterpower from a federal dam. You will need to consult with FERC in order to determine whether or not your project falls under FERC's jurisdiction. If it does, then you will need to apply for a license or exemption from FERC. The FERC application process will require contacting and consulting other federal, state and local government agencies, and providing evidence that you have done so. Carlsbad Connection #3 Hydroelectric Feasibility Study APPENDIX L CONNECTION #3 DATA SUMMARY .\ CONNECTION #3 DATA SUMMARY SITE CONNECTION #3 CONNECTION 3A CONNECTION 3B ALL S~S TOTAL ANNUAL DESIGN FLOWRATE, CFS 9.4 Max Kilowatts Capacity, kW (Net) 90.0 Approximate Annual Energy Produced, kwh 678,888 9.4 4.0 391,666 51.9 106.9 248.8 Design Total Head, ft Design Flowrate, gpm Cia-val I$ 47,000 1 156.1 691 4,216 1201 4,216 16" Main Line Size, inches 10" 954,012 2,024,565 Cla-val 21" 3351 1,795 $ 1 14,481 1 380.2 $ 242,948 806.9 Valve Type Cla-val .$ 81,467 1 270.6 - -- ANNUAL REVENUE @ $O.lZlkWh GREEN HOUSE GAS REDUCTION, MMTC02IYEAR