M&C Review


COUNCIL ACTION:  Approved on 5/14/2019 

DATE: 5/14/2019 REFERENCE NO.: **C-29124 LOG NAME: 60VC-RENOVAR
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of a Gas Supply Agreement with Renovar Arlington, LTD., for the City to Provide Digester Gas from the Village Creek Water Reclamation Facility (COUNCIL DISTRICT 5)

RECOMMENDATION:

It is recommended that the City Council authorize the execution of a gas supply agreement, including up to two one-year renewals, with Renovar Arlington, LTD., for the supply of digester gas from the Village Creek Water Reclamation Facility.

 
DISCUSSION:

The Village Creek Water Reclamation Facility (VCWRF) is the City's only wastewater treatment plant, serving a growing population of retail and wholesale customers. The City has a history of beneficial reuse of byproducts generated from the wastewater treatment process.

Over the past 15 years, the City has been using biogas from the Arlington Landfill, combined with biogas from the wastewater sludge digestion process, to provide fuel for a gas turbine that provides electricity to the VCWRF. Renovar Arlington Ltd (RAL) has recently purchased the biogas assets at the Arlington Landfill and has invested in the design and construction of a renewable natural gas (RNG) treatment facility. The RNG facility has the ability to clean landfill and digester biogas to pipeline quality natural gas standards for injection into a common carrier natural gas pipeline, with transportation to a qualified end user to generate Renewable Identification Number (RIN) credits under the EPA Renewable Fuel Standards Program. These credits can be sold to obligated parties needing these credits for regulatory compliance. This RNG facility is ready to start operation, at which point the supply of landfill gas to VCWRF will be initially reduced and then cease.

As part of the proposed agreement, the City would send biogas generated at the VCWRF to the RNG facility at the Arlington Landfill, taking advantage of the existing gas pipeline connecting the two facilities. The generation of electricity at the VCWRF would still continue, but would utilize natural gas in lieu of landfill gas. Under the terms of this agreement, RAL would provide monetary compensation to the City for the supply of digester gas in the form of a royalty payment. In addition, RAL will pay for the costs associated with compression and dehydration of digester gas at VCWRF, the costs to install the gas analyzer and metering equipment, and the costs for compliance with the EPA Renewable Standards Program.

This agreement is for a term of three years, with two one-year options for renewal.

This project is located in COUNCIL DISTRICT 5

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon approval of this recommendation, the Water Department is responsible for the collection and deposit of funds due to the City under this agreement.

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Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Chris Harder (5020)
Additional Information Contact:
Chris Harder (5020)

 
 
ATTACHMENTS
  60VC-RENOVAR.pdf
  renovar1295redact.pdf