HomeMy WebLinkAboutPP_Amendment Authority Increase RNG FacilityRenewable Natural Gas Facility Design Consultant Amendment Authority
Mark Van Eeckhout
July 10, 2020
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Project Summary/Status
Consultant History
Request Approval of Resolution 20-10
Commission questions?
Presentation summary
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2012-2013: Phase 1 study
2013-2016: Phase 2 study
2015: Triple bottom line (TBL) assessment
December 2016 – Biogas Credit Sale RFP (#1) (Trillium)
December 2017/June 2018 – RNG Phase I & II Consultant Selection
October 2018 – RNG Interconnection Agreement (NWN)
October 2019 – Biogas Credit Sale RFP (#2) (BlueSource)
May 2019 – Pre-Purchase BioGas Processing Equipment (Greenlane)
April 2020 – RNG Facility Construction Award (DSL)
Biogas-RNG Utilization History
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Recent Site Pictures (Foundation & Drain/Conduits)
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Consultant Scope
Two phase project – Phase 1 – Predesign, read off list of activities,
Phase 2 only with Commission approval of a contract amendment
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Increase Amendment Authority Reasoning
Complex project with lengthy study and design process and multiple stakeholders
Design changes necessitated by changing pre purchase biogas processing equipment (Air liquide to Greenlane)
Technical Changes:
Redesign of the Hydrogen Sulfide tank access to help Maintenance Staff access
Changes originating with NWN on gas routing from the Receipt Point Facility to River Rd.
The need for a separate Compressor Room to limit noise concerns
Design changes driven by biogas processing equipment submittal changes.
Sub-Consultant support for noise studies and arborist support.
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Project Budget Summary
CTC at $14M
Traking Changes Pending from
Consultant increase
Permit Changes DSL
Added NG line to Generator
Increase in NWN costs
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Request Commission approval of Resolution 20-10 for the increase design consultant amendment authority to $2,200,000.
Request Approval of Resolution 20-10
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Questions ?
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Project Summary/Status
Project working towards goal to reduce/eliminate biogas flaring
Agreements to date:
Design and Construction Support Services (Kennedy Jenks)
Need to amend contract for Construction Support Services.
Interconnection Agreement with North West Natural Gas (NWN)
Updating contract to include Receipt Point Facility
Pre-Purchase of BioGas Equipment with Greenlane LLC.
Equipment delayed due to supply issues due to Covid
Off-Taker agreement in place with BlueSource - Resolution 19-15
City of Eugene Permits completed
COVID-19 Updates & Cost to Complete/PayBack (As Best We Know)
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Potential benefits and risks of investment in RNG
Benefits:
Improved Greenhouse Gas (GHG) emissions reduction
Utilizes biogas that is now flared
Potentially short payback period
Improved operational flexibility
Infrastructure investment for current and future rate payers
Creates potential for future local vehicle fueling with MWMC RNG
Risks:
Short payback heavily relies on Federal and State renewable fuel programs and associated markets – no guarantees
Requires substantial capital investment
Biogas quality must meet equipment requirements
RNG must meet NW Natural interconnection requirements
Complexity of transactions required
Be careful not to refer to flaring, refer instead to under-utilizing energy resources
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