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Publication Title | Las Gallinas Valley Sanitation District - Biogas Utilization Technologies Evaluation

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FINAL TECHNICAL MEMORANDUM

Las Gallinas Valley Sanitation District - Biogas Utilization Technologies Evaluation

PREPARED FOR: REVIEWED BY:

PREPARED BY: DATE:

PROJECT NUMBER:

Las Gallinas Valley Sanitation District Jim Sandoval/ CH2M HILL

Dru Whitlock/ CH2M HILL

Dan Robillard / CH2M HILL

April 19, 2014 479699

Section 1 - Introduction Project Vision

The Las Gallinas Valley Sanitary District (LGVSD or District) wastewater treatment plant (WWTP) needs to upgrade its aged cogeneration system by 2016 to meet new air quality standards. Accordingly, the LGVSD wants to evaluate biogas utilization alternatives to understand the long range option that best addresses economic, environmental, technical and social drivers.

Project Description

In 2012 LGVSD contracted CH2M HILL to visit the WWTP, identify the air emissions regulations and permitting issues that impact LGVSD’s equipment, and recommend a path forward for further analyses, including an evaluation of whether LGVSD should replace or upgrade its internal combustion engine and a recommended approach to track air quality and climate change regulatory and permitting issues that may impact the WWTP. The findings, recommendations and proposed second tier follow-on work items are summarized in a September 21, 2012 Technical Memorandum by CH2M HILL.

After considering the recommendations of the Technical Memorandum, LGVSD requested that CH2M HILL implement an updated version of the proposed second tier scope of services, including 1) evaluation of biogas utilization alternatives, 2) assessment of the digester heating and biogas handling systems, 3) development and operations options for a new cogeneration system, and 4) an annual update that summarizes air quality and climate change regulations that may impact LGVSD operations and developments. This technical memorandum will present the results of Tasks 1 – 3. Task 4 was delivered to LGVSD staff on January 30, 2014, as a separate technical memorandum.

Executive Summary

Four alternatives for biogas utilization were analyzed for both economic and non-cost factors: microtrubines, compressed natural gas (CNG) vehicle fill station, pipeline injection, and just removing the existing engine. The economic evaluation estimated the construction costs, the annual operations and maintenance costs, and calculated a present worth assuming a 20 year lifespan. A present worth analysis is an estimate of the value that an investment of money has over a fixed lifespan. The analysis uses a discount rate for the devaluation of equipment and an interest rate of the investment. If a present worth has a positive value, the annual operations and maintenance cost are less than the expenditures. If it is negative, the annual operations and maintenance cost are more than the expenditures.

A non-cost decision analysis methodology was also used to make subjective comparisons among the alternatives, rating them among several factors that are generally not directly affected by costs. The non-cost factors are the result of 1) the issues comparison chart that staff from LGVSD and its board filled out to determine a ranking and

LGVSD BIOGAS UTILIZATION ANALYSIS.DOCX/[INSERT DOCUMENT LOCATOR] 1 COPYRIGHT [INSERT DATE SET BY SYSTEM] BY [CH2M HILL ENTITY] • COMPANY CONFIDENTIAL

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