Program and Policy Innovations at the Water-Energy Nexus

Electrochemical Society Energy-Water Nexus Symposium

Meredith Leigh Younghein, JDWater/Energy Analyst

California Public Utilities CommissionState Water Resources Control Board

Big Picture Questions:

• What is the potential for saving energy and reducing GHGs via the water sector in CA?

• When water efficiency programs save energy and reduce GHGs, how do we account for these savings? – What is the value to energy and water ratepayers? – What is the value to California?

Water and Climate

AB 32 forms the basis for most climate and energy activities in California: AB 32 Scoping Plan (2008) Goals for Water : • Water Efficiency: �20% by 2020• Water Recycling: �23% municipal by 2030• Water System Energy Efficiency: �20% = 4400Gwh/yr• On-site generation at water agencies �2100 Gwh/yr• Water/Energy Team of the Climate Action Team Oversight

CPUC-Past Efforts on Water-Energy

• Three comprehensive studies on Water-Energy Relationship in California (2009-2012)

• Water-Energy Pilot Projects (2007-2011) – Leak/loss detection and pressure management– Landscape irrigation efficiency – High efficiency toilets– Ozone laundry– More

• All materials can be downloaded via: http://www.cpuc.ca.gov/PUC/energy/Energy+Efficiency/Water-Energy+Nexus+Programs.htm

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CPUC Energy Efficiency Guidance Decision 12-05-015

DIRECTIVES FOR WATER/ENERGY:

• Document water savings benefits from Energy Efficiency projects • Expand Agricultural programs for water/energy • Work with Local Governments and Regional Energy Networks • Determine potential for program expansion in 2015

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Current Water/Energy Activities

Investor Owned Utilities, via energy efficiency programs: 1) increase targeting of agricultural and industrial customers--the

largest end users of water in the state.2) Target programs with small and medium water utilities 3) Develop programs with water agencies for leak-loss

detection/remediation and pressure management services for water entities

4) Develop cost-effectiveness method for joint-water energy savings projects

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Current Program Portfolio:Reducing Energy used by Water Sector

• Energy Efficiency programs: – “Industrial” Custom projects for water agencies/utilities/districts – Local Government and Institutional Partnerships– Agricultural: pumping & irrigation efficiency

• Integrated Demand Side Management – Encouraging DR and DG simultaneously with EE improvements

• Continuous Energy Improvement – create and implement strategic energy management plans at water

agencies

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New Activities: Aimed at Embedded Energy Savings

• Commission Guidance Decision (May 2012) – IOUs to expand water-energy efficiency programs,

including: » leak/loss detection and

pressurization studies at water utilities

» Joint water/energy programs for industrial and agricultural customers

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Examples of New Water/Energy Programs

• SoCalEdison: Leak/Loss Audits/Repairs and Pressurization Studies– South Bay Cities Council of Governments: Cities of: El Segundo,

Lomita, Manhattan Beach, and Inglewood– City of Westminster

• San Diego: Commercial Landscape Irrigation Efficiency– New technologies: moisture sensors, weather prediction

• SoCalEdison: Continuous Energy Improvement Cohort– Public Water Agencies in Orange County

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Energy Innovations in Water

• Water Agencies in CA are leaders in on-site renewable generation

• Traditional: on-site biogas fired engines at Wastwater/Sanitation Facilities

• New/emerging: Fuel cells, on-site wind/solar, in-conduit hydro, transportation fuels, pipeline injection

Inland Empire Utilities Agency Overview

Service Area• 240 Square Miles• 850,000 People• 7 Facilities

• Wastewater Treatment (4)• Water Treatment (1)• Biosolids Treatment (2)• Composting Facility (1)

• Platinum LEED Headquarters Building

0

3,000

6,000

9,000

12,000

15,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Su

mm

er

Pe

ak

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ad

(k

W)

Purchased from Grid

Food Waste to Energy

Wind

Solar

Conservation / Efficiency

Fuel Cell

IEUA--Peak Power Independence by 2020

IEUA Fuel Cell

Technology Benefits• All Power Used On-Site• Heat Recovered for Process• PPA – No Capital Outlay• $0.126/kWh + 2.5%/yr

• On-Line 1/1/13• Run on 75/25 Biogas/NG Blend• 2.8 MW gross output• Manufactured by Fuel Cell

Energy

Fuel Cell Operation Uptime

• Average uptime of 89% since 1/1/13

• Operating on biogas 69% of time

• Major issue • Dimethyl sulfide

breakthrough degraded pre-converter catalyst

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fuel Cell Uptime

Operation Uptime Digester Gas Operation

9/6/13 - Dimethyl

Sulfide breakthrough

resulted in catalyst

degradation and DG 10/8/13 – Fuel Cell

shut down for

catalyst

replacement

March 2013 - NG

PRV failed due to

variable flows;

PRV upgraded

Fuel Cell Power Generation

• 2.35 MW when operational

• Overall average of 2.14 MW

• 89% of expected power output

• Power Cost ~$0.146/kWh

• Includes NG costs

0

500

1,000

1,500

2,000

2,500

3,000

Po

we

r O

utp

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(kW

)

Average Fuel Cell Power Output (Jan 2013 - Oct 2013)

Overall Average Power Output

Digester Gas Cleaning System(Key Component of Fuel Cell System)

• Iron sponge for H2S removal

• Moisture removal

• Compression to 20 psig

• Regenerable activated carbon system

• Backup activated carbon system

• Polishing media

IEUA Fuel CellPower Purchase Agreement (PPA)

Public Sector Role (IEUA)

• Provides host site and fuel

• Purchases electricity

generated

• Recovers heat for digestion

process

Private Sector Role (UTS BioEnergy/Anaergia)

• Funds all project costs

• Design and construction

• Operations & Maintenance

• Owns asset

Ellis Avenue

Digesters

OCSD

Fuel Cell

Demonstration

ProjectFountain Valley, CA

War

d S

tree

tFueling

Station

MainEntrance

Orange CountyWater District

Fuel Cell Site

Energy Station

Orange CountySanitation DistrictProject Participants:

• South Coast AQMD

• CARB

• US Dept of Energy

• National Fuel Cell

Research Center

(UC Irvine)

• Fuel Cell Energy

• Air Products &

Chemicals, Inc.

Fuel Cell Power Generation, Hydrogen Production and

Fuel Consumption from Commissioning to Present

3-Year Fuel Cell Demonstration Project

June 1, 2011 to

May 31, 2014

Water Recycling Innovations

• California water agencies produce >500,000 AF3 of recycled water for various purposes*:– Irrigation (agricultural and urban)– Groundwater replenishment– Indirect Potable re-use– Habitat Enhancement– Recreational Reservoir replenishment *Source: Assn. of CA Water Agencies

Water Recycling Innovations

Orange County Groundwater Replenishment System: 2008-present• Joint project: Orange Co. Sanitation and Water

District• Total production >120 billion gallons• Powered (in part) by OCSD Biogas • Less energy intensive than imported supplies

=GHG reductions

Orange County Cont….

3 Step Treatment Process:(post tertiary wastewater treatment)1) Microfiltration2) Reverse-Osmosis3) UV Disinfection

Opportunities at Data Centers

• Utilize wastewater biogas to either power on-site fuel cells or co-located biogas powered engines/ turbines

• Utilize recycled water for cooling needs• Examples: UCSD fuel cell uses biogas • Various data centers being located near WWTP to use

recycled water• Advocating for data centers to locate near WWTPs in

Bay Area

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Low Carbon Fuel Standard

• California Air Resources Board Program to measure life-cycle carbon intensity of transportation fuels

• Staff Proposal to certify “pathway” for wastewater biogas converted to CNG/LNG

• Initial estimate: -65.3 g CO2e / MJ • Negative CI = fuel credits under LCFS