HomeMy WebLinkAbout13 Community Biomass PartnershipTRUCKEE DONNER
Public Utility District
MEETING DATE: August 3, 2022
TO: Board of Directors
FROM: Brian Wright, General Manager
AGENDA ITEM #13
SUBJECT: Consideration of Joining Local Public Partners in a
Feasibility Study for Local Biomass Energy Generation
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
a. Receive the presentation from Wildephor Consulting Services, LLC and provide
feedback to staff
b. Authorize the General Manager to execute a reimbursement agreement with the
Town of Truckee in substantially the form approved by counsel for the District's
participating share in the cost of a Biomass Feasibility Study conducted by
Wildephor Consulting Services, in an amount not to exceed $30,000
BACKGROUND:
In May 2021, the Board of Directors adopted the District's 2021-2024 Strategic Plan,
outlining four key strategic initiatives including, 100% clean renewable energy, community
broadband, local clean generation and undergrounding of overhead utilities. The District
continues to pursue opportunities related to each of these initiatives. Measureable
progress has been made with regards to achieving a 100% clean renewable energy
portfolio and the exploration of community broadband opportunities. The District's
purchased power portfolio is expected to exceed 70% in renewables with the addition of
the Red Mesa Solar Project in 2023, the anticipated Horse Butte Wind facility expansion
project, as well as geothermal energy purchase agreements currently in negotiations. The
District has established a committee of local stakeholders to provide preliminary review of
local broadband opportunities and has received professional consulting proposals for a
community broadband scoping study for Board consideration.
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In the summer of 2021, Truckee Town Council authorized the Town Manager to enter into
an agreement with Wildephor Consulting Services, LLC to complete a Bioenergy Scoping
Study, in partnership with Truckee Tahoe Airport District (TTAD) and Truckee Fire
Protection District (TFPD). The cost of this scoping study was shared equally among the
partner agencies at a total expense of $19,200 or $6,400 per entity. The specific objectives
of the scoping study were to do the following:
1) Define specific problem to be solved — defining the "triple bottom line" economic,
environmental and social objectives of the project partners
2) Collect and compile relevant data — identify potential heating and power loads as
well as the type and quantity of biomass feedstock
3) Develop range of candidate solutions — evaluate a range of potential viable
technology solutions to address the defined problem to be solved
4) Establish appropriate evaluation criteria — assessment of triple bottom line
evaluation criteria
5) Evaluate candidate solutions —summary of attributes each candidate solution offers
6) Identify preferred solution(s) —identify potentially viable solutions that maybe used
as a basis for more rigorous feasibility assessment and conceptual design
development
In February 2022 Town Council received an update on the initial scoping study and
authorized Town staff, with the public partner agencies, to proceed with a second phase
scoping study to further refine the details of the seven options and develop final
recommendation for up to two options to advance into a detailed feasibility study. The initial
study first looked at different solutions, baselining them against continuing to dispose of
green waste at the Eastern Regional Landfill (ERL). In the second phase scoping study,
Wildephor determined that two possible options, Biomass Gasification Power and
Combined Heat and Biochar, were likely the most promising options. As a part of this
process, Wildephor looked at biochar as a revenue source, however more work is needed
in this area to determine viability and revenues in this emerging market.
A final scoping study was completed (Attachment 1) and presented to the partner agencies
for review, which included a recommendation to further evaluate two options, a Biomass
Gasification Power facility and a combined heat and biochar (CHAB) system. The study
identifies the biomass gasification power plant as the most feasible option. On June 16,
2022 Town Council authorized a contract in the amount of $120,000 with Wildephor
Consulting Services, LLC to complete a bioenergy feasibility study, anticipating that local
public agencies would continue the partnerships and financial contributions.
ANALYSIS/BODY:
With the biomass gasification power facility being identified as one of the options to be
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evaluated in the initial scoping study, the Town of Truckee reached out to District staff to
participate in the initial development workshops providing technical details related to local
electric utility infrastructure, logistics of a potential energy generation facility within the
service territory, as well as the basic components of purchase power agreements.
Following several workshops with the partner agencies and Wildephor, the potential
development of a 1 MW power generation facility emerged as one of the favorable options
to pursue through a feasibility study. Initial discussions outlined a generation facility to be
located within the District's Martis Valley Substation service territory, in close proximity to
the airport, Town Hall facilities and fire station.
The findings and recommendations presented by Wildephor outline the next steps being a
more detailed feasibility study to include a conceptual design of the facility, estimated
capital and operating costs, feedstock procurement and management strategies, and life -
cycle financial models. In addition, and supplemental to the feasibility study, the District
will need to engage engineering consultation to evaluate the capital improvements to the
existing electric utility infrastructure necessary to accommodate the integration of a local
generation facility.
Recognizing that further evaluation of the power generation facility option would benefit
from a more in-depth participation from the District, the partner agencies have proposed
the TDPUD joining as a fourth public partner in subsequent stages of the project. One of
the District's strategic initiatives identified in the updated 2021-2024 Strategic Plan include
the pursuit of local clean generation. The proposed biomass gasification facility is in
alignment with this initiative and therefore staff is recommending Board consideration.
Goals and Objectives:
This item is in support of the following goals and objectives:
District Code1.05.020 Obiectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient and fiscally responsible
manner.
Strategic Goals:
3. Engage with our customers and communities in a welcoming and transparent way to
identify opportunities.
4. Take the best of private sector thinking to modernize the utility and add value to our
Communities
FISCAL IMPACT:
The District's FY22 and FY23 budgets include $160,000 total each year for the Board's
four strategic initiatives (GL account'/2.1.923.00.756), of which none of these funds have
been spent to date.
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The proposed one fourth partnership by the District in the community bioenergy feasibility
study would include a contribution of $30,000. This does not include the yet to be
determined costs for an initial engineering study to determine the infrastructure
requirements necessary to accommodate a local generation facility. Staff will present a
recommendation related to the engineering study for the Board's consideration at a later
date.
In a separate item, staff is recommending $86,900 to be allocated for the Community
Broadband Initial Scoping Study. Sufficient funds are available for each of these strategic
initiative studies.
ATTACHMENTS:
Truckee Bioenergy Scoping Study
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