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Staff Reports - East Bay Municipal Utility District

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EBMUD<br />

AGENDA NO.<br />

MEETING DATE January 22, 2013<br />

TITLE<br />

WASTE TO BIODIESEL PHASE II RESEARCH ASSISTANCE SERVICES<br />

El MOTION • RESOLUTION • ORDINANCE<br />

RECOMMENDED ACTION<br />

Authorize an amendment to the agreement with <strong>Bay</strong> Systems Consulting, Inc. (<strong>Bay</strong> Systems) in an amount<br />

not to exceed $120,000 for specialized biodiesel research assistance services. These funds will be fully<br />

reimbursed by the California Energy Commission (CEC).<br />

SUMMARY<br />

In 2011, the <strong>District</strong> received a $1 million grant from the CEC to investigate low-cost methods for<br />

producing biodiesel from waste grease and oils. If successful, the outcome from this work could allow<br />

agencies to cost-effectively produce biodiesel from wastes to fuel diesel fleets. In February 2011, the<br />

<strong>District</strong> executed a $150,000 agreement with <strong>Bay</strong> Systems to provide technical support for Phase I of the<br />

grant-funded work, which consisted of researching and identifying potential low-cost alternatives.<br />

Additional funding for this agreement is needed for the <strong>District</strong> to complete Phase II of the project, which<br />

consists of evaluating technologies identified in Phase I of the study. <strong>Bay</strong> Systems has unique, specialized<br />

expertise in biodiesel production and pilot testing. This $120,000 amendment, which would bring the total<br />

contract amount up to $270,000, will provide funding to allow <strong>Bay</strong> Systems to provide an additional year<br />

of technical assistance to complete the project.<br />

DISCUSSION<br />

Current methods for converting waste grease into biodiesel are costly to build and operate, and therefore,<br />

provide little potential for widespread use. The <strong>District</strong> recently completed the first phase of the CEC<br />

grant-funded study and identified several potential low-cost alternatives for converting waste grease into<br />

biodiesel at a bench-scale level. In the next and final phase of this study, a pilot facility will be constructed<br />

and operated to test the most promising alternatives at a scale sufficient to evaluate the alternatives'<br />

potential performance and economics at full-scale. A conceptual design of facilities to cost-effectively<br />

manufacture biodiesel from waste grease and oils is the goal for the final work product. If successful, this<br />

design could potentially be implemented at wastewater treatment facilities to fuel diesel fleets or possibly<br />

other diesel vehicles in the surrounding communities.<br />

Funds Available: FY13<br />

Budget Code: WWC/924/7999/2006832/5231<br />

DEPARTMENT SUBMITTING<br />

DEPARTMENT MANAGER or DIRECTOR<br />

APPROVED<br />

WASTEWATER<br />

David R. Williams<br />

G^peral Manager<br />

Contact the Office of the <strong>District</strong> Secretary with questions about completing or submitting this form.<br />

BDl PS 1008

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