Eric Hansen, P.E.Capital Planning Program

CPUC Recycled Water Order Instituting Rulemaking (R. 10-11-014)San Francisco

January 20, 2012

Workshop 3:Understanding Wholesale and Retail Recycled Water Costs,

Distinct Customer Classes, Revenue Requirements, and Recycled Water Rates

≠ RateCost

Rate ≠ Cost

SBWR Transmission Pump Station

SBWR System• 120 Mile Pipeline• 4 Pump Stations• 2 Reservoirs 9.5MG• 615 Customers• 10 MGD or 10K AFY• 3 Billion Gallons

San Jose/Santa Clara Water Pollution Control Plant

Dumbarton Bridge

Artesian Slough (Discharge)

South San Francisco Bay (Silicon Valley)

SBWR System and Potential Extensions

What is SBWR?

San José/Santa Clara Water Pollution Control PlantJoint Powers Authority Administered

by the City of San José

South Bay Water Recycling ?

Do all tributaries agencies receive recycled water?

Who else benefits?

Serves over 1,500,000 people that live and work in the 300-square mile area encompassing San Jose, Santa Clara, Milpitas, Campbell, Cupertino, Los Gatos, Saratoga, and Monte Sereno.

Developer Pays

Government Pays

“…design and construction of demonstration and permanent facilities to reclaim and reuse water in the San José metropolitan service area"

(Title XVI of Public Law 102-575 Reclamation Projects Authorization and Adjustment Act of 1992, Section 1607)

• $6.46 million offered towards construction of up to 10 projects

• 8 projects with an estimated cost of $14.77 million selected for construction, operation by 9/30/11

• Additional projects may be built if significant cost savings or additional funds are available.

2009 American Recovery and Reinvestment Act Funded Projects

SBWR Phase 1C Projects Project Cost AFY

1. SC Central Park $4.30 1102. SJ Airport $1.72 1003. SCIndustrial 1 $0.75 3004. SBWR Laterals &Garden $0.98 1055. SJ State University $0.79 1356. SC Industrial 2 $1.90 1407. SC Industrial 3A $5.30 5008. SJ School Extensions $1.14 100Total Phase 1C Improvements 14.78 1500-

2000

Statewide Inter-regional Cooperation

Lake Perris

Kern Water BankCros s Val ley Canal

Isabel laR es erv o ir

S uc c essLak e

Coas ta l B ranc h

LakeK aw eah

Pine Fla t Res .

Mi llerton Lake

S an Luis R es. andO ' Nei l l Forebay

Tule

New D on Pedro R es erv o ir

Lak e McC lure

N ew Melones R eser voi r

N ew Hogan Res ervo ir

Pardee Res er vo i r

Cam anc he R eser voi r

South B ayAqueduc t

TracyP um ping

Plant

N. Bay Aque.

LakeBerr yes s a

Far Wes tRes ervo i r

Fols om Lak e

Fols om S. Canal

New Bul lards BarReser vo i r

Lak e Or ov i l le

Kesw ic k Lak e

Whisk eytow n R es.

Cla i r EngleLake Shasta Lak e

Hetch H etchy Aqueduc t

Am eric an R iver

Common issues Share toolsPolitical “clout”

BARWRPBARWRP

SCCWRRSSCCWRRS

BARWC Brings Communities Together and Promotes Sustainable Water Use

40-Year Partnership

$53 million

Membrane Filtration

Filtrate Storage Tank

Cartridge Filters

Product Water Storage Tank

Strainers

Influent Pumps

RO Transfer Pumps

High Pressure RO Pumps

Reverse Osmosis

RO Reject toCCT No. 1-3 Influent

MF Backwash Waste to Headworks

Secondary Treatment

Tertiary Treatment

Nitrified Secondary Effluent

Chlorine Contact Tanks

SF Bay

UV

Transmission Pump Station

SBWR Recycled

Water

108” SBWR Diversion Pipeline

Cl2

Proposed South Bay Advanced Recycled Water Treatment Facility

SJ/SC WPCP and SBWRExisting Treatment Facilities

Cl2SO2

Outfall

Membrane Filtration

Filtrate Storage Tank

Cartridge Filters

Product Water Storage Tank

Strainers

Influent Pumps

RO Transfer Pumps

High Pressure RO Pumps

Reverse Osmosis

RO Reject toCCT No. 1-3 Influent

MF Backwash Waste to Headworks

Secondary Treatment

Tertiary Treatment

Nitrified Secondary Effluent

Chlorine Contact Tanks

SF Bay

UV

Transmission Pump Station

SBWR Recycled

Water

108” SBWR Diversion Pipeline

Cl2

Proposed South Bay Advanced Recycled Water Treatment Facility

SJ/SC WPCP and SBWRExisting Treatment Facilities

Cl2SO2

Outfall

Comparison of Advanced Treatment Methods for Partial Desalting of Tertiary Effluents http://www.usbr.gov/pmts/water/publications/reportpdfs/report097.pdf

$300/AF$2.5 million/7,300AF$330/AF

San José‘s Green Vision Goal #6

San José’s Ordinance…

Benefit Occurrence Measured Water supply Very common Often

Water supply reliability Very common Rarely Effluent disposal Very common Sometimes

Public health Situational Rarely Watershed benefits

Upstream Very common Rarely Downstream Common Common Restoration Situational Rarely

Energy conservation Situational Sometimes Economic development Situational Rarely

Some Unmeasured Benefits of Water Reuse

Recycled Water Rates…?

Retailer Agreements Require an Economic IncentiveGround Water Rate FY 11-12 - $569/AF

Irrigation Discount ($105)/AF

Irrigation Wholesale Rate - $464/AF

Industrial Discount ($325)/AF

Industrial Wholesale Rate - $244/AF

Other Incentives…

• U.S. Green Building Council and LEED Certification

• The right thing to do…

Sustainabilit

y

GREENFUTURE GENERATIONS

South Bay Water Recycling“Providing drought proof, high-quality water for our community.”

SAFERight Thing To Do

Uses?

Industrial = Cooling, Manufacturing, Dual Plumbing

N+1N+1 redundancy is a form of resilience that ensures system availability in the event of component failure.

“Data center power generators that activate when the normal power source is unavailable.”

Silicon Valley Power and PG&E

Recycled Water and Potable Water

Where are the windows?

Data Center

Other Benefits of Water Reuse

Benefits What does this mean?

What Else?

Locally Sustainable Water Supply

Not Subject to Regulatory Droughts

Less impacted by imported water rate increases

Pay bills during regulatory droughts

Economy becomes robust, demand increases

Energy Conservation Can we get benefits from State on energy reduction?

Economic Development Can we get benefits from State?

Tax incentives to convert?

Drought Proof N+1 Backup in a catastrophe

≠ RateCostRate ≠ Cost

Benefit = Cost?