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HomeMy WebLinkAboutMWMC Agenda Packet AGENDA II.a. • • • • • • • • • • • • • • • • • • AGENDA II.b. Commission Rule 137-047-0285R (6) Sale, Transfer, and Disposal of Personal Property. (a) Authorization. The Commission grants approval of a special procurement for the sale, transfer, and disposal of Personal Property, as described in this Rule. (b) Application. This rule constitutes the Commission’s procedures for the sale, transfer, and disposal of Personal Property. This rule and these procedures do not apply to the disposition of Real Property. Pursuant to ORS 279A.065(6), the Commission has prescribed that the Commission will use these rules of procedure for the sale, transfer, and disposal of Personal Property. (c) Definitions. For purposes of these procedures regarding the sale, transfer and disposal of Personal Property, the following terms have the meanings set forth herein. Any term not defined herein shall have the definition set forth under the Oregon Public Contracting Code or the Commission Rules. In resolving conflicts resulting from discrepancies between the Oregon Public Contracting Code or the Commission Rules, the Commission Rules shall take precedence over the Oregon Public Contracting Code. (1) Personal Property. “Personal Property” means property other than Real Property. It may be tangible if it has a physical existence, or intangible, if it does not have a physical existence. (2) Real Property. “Real Property” is land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings that, if removed, would deface the structure or integrity of the building, such as plumbing, heating fixtures, etc. (d) Approval. Except as provided in Section (e)(1), aAny disposition of Personal Property, that, individually or for property of like character or not easily divisible, has a value of $1,000 or more, must be approved in advance by the MWMC Executive Officer, or his or hertheir designee. (e) Methods. The individual or department seeking to dispose, transfer, or sell Personal Property must make the following written findings: (a) the method of disposal complies with the requirements of the Oregon Public Contracting Codethis MWMC Procurement Rule; and (b) the method of disposal is in the best interest of the Commission. Factors to consider in determining the method of disposal include, but are not limited to: (a) costs of sale, (b) administrative costs, (c) processing fees, (d) disposal fees, and (e) public benefits to the Commission. The following methods may be used to dispose, transfer, or sell Personal Property: (1) Transfer to Other Government Entities. The Commission may sell or transfer Personal Property to another government entity, unless specifically prohibited by a particular State grant which funded the procurement of that property, and providing Attachment 1 Commission Rule 137-047-0285 Redline Version Page 1 of 2 the property is used for public purpose or benefit and not for resale to a private purchaser. For any such transfer, the parties must enter into a written agreement to effect agree, in writing, on such transfer. Regardless of value, tThe transfer must be approved in advance by the MWMC Executive Officer, or his or her authorizedtheir designee and is subject to the delegated authority threshold established by the Commission. (2) Sale. The Commission may sell Personal Property by auction, bids, liquidation sale, fixed price sale, trade-in, or other competitive process. Proceeds from the sale must be used for public purpose or benefit. (3) Disposal as Waste or Other Means. The Commission may dispose of Personal Property whichthat, individually, or for property of like character or not easily divisible, has a value of less than $500, or for which the costs of sale are likely to exceed sale proceeds. Such property may be disposed of by recycling, donation, or designation as waste. Individuals or departments making such a disposal shall make a record of the estimated value of the item and the manner of disposal. Disposal of Personal Property to employees of the City of Eugene, the City of Springfield, and Lane County under this subsection is strictly prohibited. Sales or transfer of Personal Property may be conducted electronically. (f) No Warranty. All Personal Property sold or transferred pursuant to this section shall be sold as-is without any warranty, either expressed or implied, or any kind unless otherwise agreed in writing by the Executive Officer or their designee. Attachment 1 Commission Rule 137-047-0285 Redline Version Page 2 of 2 Commission Rule 137-047-0285R (6) Sale, Transfer, and Disposal of Personal Property. (a) Authorization. The Commission grants approval of a special procurement for the sale, transfer, and disposal of Personal Property, as described in this Rule. (b) Application. This rule constitutes the Commission’s procedures for the sale, transfer, and disposal of Personal Property. This rule and these procedures do not apply to the disposition of Real Property. Pursuant to ORS 279A.065(6), the Commission has prescribed that the Commission will use these rules of procedure for the sale, transfer, and disposal of Personal Property. (c) Definitions. For purposes of these procedures regarding the sale, transfer and disposal of Personal Property, the following terms have the meanings set forth herein. Any term not defined herein shall have the definition set forth under the Oregon Public Contracting Code or the Commission Rules. In resolving conflicts resulting from discrepancies between the Oregon Public Contracting Code or the Commission Rules, the Commission Rules shall take precedence over the Oregon Public Contracting Code. (1) Personal Property. “Personal Property” means property other than Real Property. It may be tangible if it has a physical existence, or intangible, if it does not have a physical existence. (2) Real Property. “Real Property” is land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings that, if removed, would deface the structure or integrity of the building, such as plumbing, heating fixtures, etc. (d) Approval. Except as provided in Section (e)(1), any disposition of Personal Property that, individually or for property of like character, has a value of $1,000 or more must be approved in advance by the MWMC Executive Officer, or their designee. (e) Methods. The individual or department seeking to dispose, transfer, or sell Personal Property must make the following written findings: (a) the method of disposal complies with the requirements of this MWMC Procurement Rule; and (b) the method of disposal is in the best interest of the Commission. Factors to consider in determining the method of disposal include, but are not limited to: (a) costs of sale, (b) administrative costs, (c) processing fees, (d) disposal fees, and (e) public benefits to the Commission. The following methods may be used to dispose, transfer, or sell Personal Property: (1) Transfer to Other Government Entities. The Commission may sell or transfer Personal Property to another government entity, unless specifically prohibited by a particular State grant which funded the procurement of that property, and providing the property is used for public purpose or benefit and not for resale to a private purchaser. For any such transfer, the parties must agree, in writing, on such Attachment 2 Commission Rule 137-047-0285 Clean Copy Page 1 of 2 transfer. Regardless of value, the transfer must be approved in advance by the MWMC Executive Officer, or their designee and is subject to the delegated authority threshold established by the Commission. (2) Sale. The Commission may sell Personal Property by auction, bids, liquidation sale, fixed price sale, trade-in, or other competitive process. Proceeds from the sale must be used for public purpose or benefit. (3) Disposal as Waste or Other Means. The Commission may dispose of Personal Property that, individually or for property of like character, has a value of less than $500, or for which the costs of sale are likely to exceed sale proceeds. Such property may be disposed of by recycling, donation, or designation as waste. Individuals or departments making such a disposal shall make a record of the estimated value of the item and the manner of disposal. Disposal of Personal Property to employees of the City of Eugene, the City of Springfield, and Lane County under this subsection is strictly prohibited. Sales or transfer of Personal Property may be conducted electronically. (f) No Warranty. All Personal Property sold or transferred pursuant to this section shall be sold as-is without any warranty, either expressed or implied, or any kind unless otherwise agreed in writing by the Executive Officer or their designee. Attachment 2 Commission Rule 137-047-0285 Clean Copy Page 2 of 2 ______________________________________________________________________________ AGENDA IV. Attachment 1 Resolution 23-13 Page 1 of 3 Attachment 1 Resolution 23-13 Page 2 of 3 Digital Signature: Digital Signature: Digital Signature: Attachment 1 Resolution 23-13 Page 3 of 3 Attachment 2 Attachment 2 ______________________________________________________________________________ AGENDA V. • • • • • M E M O R A N D U M DATE: November 14, 2023 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: James McClendon, WW Finance and Administrative Manager SUBJECT: Greenhouse Gas Inventory Report for FY 2022-2023 ACTION REQUESTED: Informational _____________________________________________________________________ ISSUE In October 2023, staff completed a Greenhouse Gas (GHG) emissions inventory on MWMC Facilities for FY 2022-2023 (FY23), and the report is attached (Attachment 1). The inventory includes data gathering and analysis of the emissions from activity at MWMC owned facilities and pump stations, and Attachment 1 explains the key findings from the FY23 accounting of the emissions inventory. BACKGROUND Staff conduct GHG emissions inventories every other year (biennially) and report on the findings to the Commission in the intervening years. The last GHG emissions report was for FY20 and presented to the Commission in September 2021. Since that time, the Renewable Natural Gas (RNG) facility was brought into service in November 2021, and staff determined that the next GHG emissions report should cover FY23 so that the inventory would include the first full year of RNG operation. Fiscal years are used for GHG emissions accounting, as that timeframe aligns with the City of Eugene’s data from the financial reporting year, which is key to the accounting for supply-chain, utilities, and other emissions calculated from actual expenses. One new addition in the FY23 GHG emissions report is inclusion of the RNG facility and accounting for the community benefit from consuming conditioned biogas (byproduct of anaerobic digestion) which is injected into NW Natural Gas’s pipeline connection at the treatment plant and marketed as renewable natural gas. Another significant change for FY23 is the GHG emissions accounting for supply chain and related emissions, specifically pertaining to an update of the Global Warming Potential (GWP) AGENDA VI. Memo: Greenhouse Gas Inventory Report for FY 2022-2023 November 14, 2023 Page 2 of 3 -Communication Packet- and emissions factors. The GWP values and emissions factors are provided by the Intergovernmental Panel on Climate Change (IPCC), a scientific body of the United Nations, and the federal Environmental Protection Agency (EPA), respectively. Updating the GWP values and emissions factors is key to accurate GHG accounting for supply chain and upstream energy production (Scope 3), which is currently the second largest source of emissions at MWMC facilities. DISCUSSION In general, the purpose of conducting the biennial GHG inventory and producing the report is to assist the MWMC with:  Sustaining the commitment to “achieve and maintain high environmental standards” (Key Outcome #1 in the MWMC budget document)  Referencing to a vetted study on GHG emissions from which to assess operational and environmental performance  Inviting discussion on incorporating GHG emissions reduction strategies into future project planning  Continuing to identify opportunities to reduce GHG emissions The GHG Emissions Inventory Report on MWMC facilities in FY23 provides the following:  Comparisons of current emissions to the emissions reported in previous inventory years  The offset of GHG emissions (benefits) from displaced conventional natural gas for the community, displaced conventional natural gas for process heating (i.e., the boiler and engine generator), carbon sequestration by poplar trees, and smaller benefits from other MWMC activities  Recent and upcoming community involvement in GHG emissions reduction action items  An appendix including detailed explanations on the data gathering and methodology used in the GHG inventory report The grand total FY23 GHG emissions from anthropogenic activity at MWMC facilities was 9,518 MT CO2e which is approximately 11% lower than the FY20 emissions (10,676 MT CO2e). Listed below is a brief summary of the results from the FY23 inventory:  The largest overall source of GHG emissions in FY23 was from the wastewater treatment and biosolids management processes (direct emissions, or Scope 1). Total Scope 1 emissions increased from the prior reporting year by 6%, which was mostly due to the increased demand for conventional natural gas and electricity since the RNG facility was brought into service. In addition, the sludge lagoons at the Biosolids Management Facility (biosolids lagoons) are the largest source of methane emissions at MWMC facilities, which is the other significant contributor to Scope 1 direct emissions. Methane and nitrous oxide are two of the most potent greenhouse gases. For FY 2022-2023, while the total volume of digested solids pumped from the treatment plant to the BMF was consistent with that of prior years (~5,407 Memo: Greenhouse Gas Inventory Report for FY 2022-2023 November 14, 2023 Page 3 of 3 -Communication Packet- dry metric tons), the volume of solids in the lagoons has accumulated and been retained longer (approx. 3 years), which will off-gas more methane. Similarly, the processed biosolids that are land applied will off-gas nitrous oxide.  The greatest benefit from MWMC activity regarding GHG emissions reduction was at the Biocycle Farm, as growth in the biomass of poplar trees sequestered -4,946 MT CO2e. The second greatest reduction activity was from the RNG facility and the assumed community benefit of purchasing renewable natural gas marketed by NW Natural. The assumed benefit is the displacement of conventional natural gas that would have been used by consumers, amounting to -3,225 MT CO2e in FY23, which is roughly equivalent to taking 724 gasoline- powered passenger vehicles off the road for one year. The next GHG emissions inventory for MWMC facilities is scheduled to be completed in summer-fall 2025 and will be conducted for the FY25 timeframe once the data become available. ACTION REQUESTED None. ATTACHMENT 1) Greenhouse Gas Inventory Report for FY 2022-2023 Greenhouse Gas Inventory Report for FY 2022-2023 October 2023 Attachment 1 Page 1 of 13 FY 2022-2023 GHG Emissions Report | Page 1 Introduction This report presents the results of an inventory conducted to quantify the Greenhouse Gas (GHG) emissions for FY 2022-2023 from the regional wastewater treatment plant, Biosolids Management Facility (BMF), and regional pump stations serving the Eugene-Springfield Metro Area in Lane County, Oregon — facilities that are operated and managed through partnership in the MWMC. The inventory also includes emissions data for wastewater pump stations that are owned independently by the cities of Eugene and Springfield. The data gathering and analytical framework applied by staff to produce this report quantifies the GHG emissions resulting from MWMC activities in FY 2022-2023 that contribute to increasing global CO2 levels. The framework also quantifies the MWMC activities that are beneficial to our environment—those which reduce, sequester, or offset GHG emissions. Page 4 of the report outlines MWMC’s contribution of information towards community action planning for local and regional GHG emissions reduction. The Appendix to the report describes the GHG methodology, illustrates the GHG emissions totals, and provides more detailed support to explain the FY 2022-2023 results. Not included in the report is an evaluation of MWMC’s progress toward GHG emissions reduction as goals and targets have yet to be established. Significant Changes in the FY 2022-2023 Report The initial GHG emissions report for MWMC facilities was prepared and presented to commissioners in 2012, which included data gathered for calendar year 2010. Since that time, GHG emissions inventories have been prepared in every other fiscal year (biennially) and presented to the commission in the intervening years. Prior to this report, the previous GHG emissions inventory reported on data from FY 2019-2020 and was presented to commissioners in September 2021. Due to significant changes in the operational footprint since then, primarily caused by inclusion of the Renewable Natural Gas (RNG) facility at the treatment plant in November 2021, staff determined that the next GHG emissions report should be postponed to report on data from the fiscal year 2022-2023 timeframe, thereby allowing for a dataset of activity with the RNG facility in service for an entire year. Now included in this report is also an accounting of the biogas produced at the treatment plant, marketed through NW Natural, to show the environmental benefit of commodifying the biologically produced methane from the anaerobic digesters (i.e., renewable natural gas). Recorded Change in Global CO2 Levels Global CO2 Measurement: 420ppm (August 2023) Data Source: NOAA reconstruction from ice cores and modern instrumental data Retrieved From: National Aeronautics and Space Administration (NASA) on October 5, 2023, at https://climate.nasa.gov/vital-signs/carbon-dioxide/ Attachment 1 Page 2 of 13 FY 2022-2023 GHG Emissions Report | Page 2 Another significant change in the FY 2022-2023 inventory includes reporting on supply-chain emissions calculated from more current emissions factors available from the federal Environmental Protection Agency (EPA) and updated global warming potential values (GWP) from the Intergovernmental Panel on Climate Change (IPCC), a scientific body of the United Nations. Prior to this report, the emissions factors and GWPs for supply chain were 7-20 years old and now obsolete, so the tools used to calculate the emissions from supply-chain activity have been updated accordingly. GHG EMISSIONS SUMMARY A summary of the GHG emissions from operational activity in FY 2022-2023 is illustrated in Figure 1 below. The benefits from activity during the same timeframe are illustrated in Figures 2 and 3. Figure 1 – GHG Emissions1 FY 2022-2023 total emissions were 9,518 MT CO2e, which is on trend with prior reporting years. Compared to inventory results from FY 2019-2020, emissions from capital projects were 78% lower, while operating-related emissions were 2% higher than the prior reporting period. The higher emissions were due to increases in the consumption of purchased natural gas and electricity (operating activities) resulting from the inclusion of the RNG facility in November 2021. Figure 2 – Community Benefit of RNG By applying the emissions factor for compressed natural gas (CNG), the closest comparable emissions factor for Renewable Natural Gas (RNG), the assumed benefit from the community purchasing RNG marketed by NW Natural was -3,255 MT CO2e. Referring then to the federal EPA equivalencies calculator, -3,255 MT CO2e is roughly equal to taking 724 gasoline-powered passenger vehicles off the road for one year. 1 Emissions data and methodology detail provided in the Appendix. Attachment 1 Page 3 of 13 FY 2022-2023 GHG Emissions Report | Page 3 Figure 3 – Environmental Benefits at Biocycle Farm In addition to the RNG, other benefits from MWMC activities as either CO2 displacement or sequestration were a total of -6,554 MT CO2e in FY 2022-2023, which is less than in FY 2019-2020. The Biocycle Farm lost poplar-tree biomass due to harvesting of Management Unit 3 (MU3) and there are fewer trees on MU1 and MU2, even though those trees are nearing maturity. Nonetheless, for FY 2022-2023, the poplar trees sequestered -4,946 MT CO2e at Biocycle Farm. CLIMATE BENEFITS FROM MWMC ACTIVITIES While wastewater treatment activities generally contribute to GHG emissions, some activities have reduced GHG emissions. The beneficial activities at MWMC facilities with the greatest effect were from the processing and commodification of RNG, emissions displacement (e.g., less need for conventional fertilizer at Biocycle Farm, displaced need for conventional natural gas), and carbon sequestration (e.g., CO2 captured by the soil and poplar trees at the Biocycle Farm). The GHG inventory accounting methodology (protocol) used to calculate the emissions from MWMC facilities does not subtract the displaced and sequestered emissions from the total amount of MT CO2e that was released through operational activities in FY 2022-2023. The following benefits of MWMC operational activities are explained for reference only. Displaced GHG Emissions  Displaced Community Consumption of Conventional Natural Gas ( -3,255 MT CO2e) Total GHG emissions from operating activity in FY2022-2023 were 9,518 MT CO2e and it’s important to note that the higher operating emissions compared to all prior inventory reporting years also included activity that resulted in the production of Renewable Natural Gas (RNG), which in turn provided a downstream community benefit while providing a financial benefit to MWMC. However, as pertaining to GHG emissions accounting protocol, since the RNG is commodified and sold through NW Natural, the community RNG benefit cannot be applied to offset the emissions accounting for MWMC activity in FY 2022-2023. In short, the community benefit of RNG does not subtract from the GHG emissions accounting because MWMC is selling the biogas to NW Natural and also earning revenue from the sale of RIN credits (Renewable Identification Numbers).  Displaced Conventional Natural Gas for Process Heating from Boiler ( -707 MT CO2e) During times when the RNG facility is taken out of service and undergoing maintenance, the plant’s boiler for heating the anaerobic digesters will be switched over to run on biogas. The boiler is engineered to be fueled with either conventional natural gas or digester biogas to reduce the need for flaring at the waste-gas burner. Therefore, during those short periods of time, the biogas used for the boiler is displacing the need for purchased natural gas. For most of the year, however, the boiler is being fueled with conventional natural gas, as the goal is for maximum uptime from the RNG facility and revenue from selling the renewable natural gas. Attachment 1 Page 4 of 13 FY 2022-2023 GHG Emissions Report | Page 4  Displaced Conventional Natural Gas for Supplementary Process Heating ( -149 MT CO2e) The plant’s 800KW engine generator (EG) is also sometimes brought into service when the RNG facility is offline, which thereby displaces the use of conventional natural gas with biogas from the anaerobic digesters. At those times, the EG is fueled with digester biogas and used to supplement the boiler to provide optimal digester heating. Another passive benefit of running the EG is the generation of some electricity, thereby displacing some of the need for purchased electricity from EWEB. For the FY 2022-2023 reporting period, by aggregating those short periods of run time, the EG produced roughly 557,724 kilowatt hours (kWh) of electricity, which reduced the EWEB bill by approximately $42,951 for the year.  Displaced Conventional Fertilizer ( -121 MT CO2e) At the Biocycle Farm, the substitution of biosolids for conventional fertilizer as a soil amendment displaces the emissions that would have otherwise been created in the production of conventional fertilizers. Carbon Sequestration  Carbon Sequestration by the Soil ( -631 MT CO2e) When biosolids are applied to soil, a proportion of the organic carbon remains trapped and therefore increases the health and sequestration potential of the existing soil.  Carbon Sequestration by Biocycle Poplar Trees ( -4,946 MT CO2e) The Biocycle farm has been in operation since 2004 when Management Unit #1 (MU1) was planted with 35,000 trees. Two subsequent units were planted for a total of 88,000 trees as of 2008. Comparing the three management units, MU3 is the largest in area and contains more trees than either MU1 or MU2. During the FY 2022-2023 timeframe, MU3 was devoid of trees, as the unit was harvested in summer 2022 and not replanted until late spring 2023. In comparison to MU3, the other management units are smaller in area and contain fewer trees, and a large portion of the trees on MU2 were ruined by the 2017 ice storm, further reducing biomass. Accounting for all biomass on the farm in FY 2022-2023, the total sequestration by the growth of poplar trees was -4,946 MT CO2e. Projecting out to the next reporting timeframe (i.e., the FY 2024- 2025 report), it is likely that the total MT CO2e sequestration from growth of biomass at the Biocycle Farm will be less than presently, assuming that the trees on MU1 and MU2 will be harvested in that timeframe. Furthermore, the recently replanted MU3 will begin to sequester more CO2 once the replanting grows into a larger biomass of trees, but it will take a longer period of time to see gains in carbon sequestration by the recently replanted trees, as larger trees sequester more carbon dioxide. Attachment 1 Page 5 of 13 FY 2022-2023 GHG Emissions Report | Page 5 RECENT AND UPCOMING GREENHOUSE GAS REDUCTION ACTION ITEMS The following GHG emissions reduction related activities are currently underway or being discussed for future action. MWMC is currently contributing innovative and significant climate action projects on a regional scale that align with the goals and intent of the City of Eugene Community Climate Action Plan (CAP 2.0).  Further implementation of the Renewable Natural Gas (RNG) Program. The goal is for the RNG facility to condition 100% of the biogas generated at the wastewater treatment plant for transmission and distribution by NWNatural and reduce the need for flaring. Current RNG facility uptime is roughly 50% per year with a goal of 90% uptime, which could take another 1-2 years to achieve. Current operational activity in support of GHG reduction:  Ongoing adherence to the ISO 14001 standard for Environmental Management System (EMS) compliance. The longstanding goal of the EMS program is to reduce energy use, reduce the volume of solid waste, and rely less on non-renewable vehicle fuels, and the objectives met in FY 2022-2023 toward the goal included the implementation of a new Laboratory Information Management System (LIMS software), which has significantly reduced paper waste and enabled more granular control of staff time needed for preparing documentation specific to permit requirements. In addition, the City of Eugene Public Works Fleet division has adopted R99 renewable diesel for all road licensed diesel-fueled vehicles. Community Partners: Lane County and City of Eugene MWMC’s community partners have publicly stated their intent to reduce GHG emissions within their respective organizations and issued the following directives:  Incorporate energy efficient technologies and green building design into new capital construction and refurbishment of buildings (e.g., energy efficient HVAC systems, repurposed road paving materials, etc.).  Purchasing from local service and material providers when possible.  Reduce vehicle miles traveled by promoting teleconferencing (e.g., webinars, conference calls, online seminars) or utilize bus, bike, or other low-carbon transportation options.  Expand urban tree canopy cover through new and replacement tree planting.  Replace gasoline and diesel fleet vehicles with electric, hybrid-electric, and/or renewable natural gas (RNG) fleet vehicles.  City of Eugene’s Climate Recovery Ordinance (CRO), which implemented climate neutral operations in 2020 through the purchase of Renewable Energy Credits (RECs).  Lane County’s Climate Action Plan for Operations, including specific emissions reduction targets through purchase of RECs and other purchased carbon offsets, and a goal to reduce overall GHG emissions by 72% by 2040.  City of Springfield’s comprehensive planning to implement the Climate Friendly and Equitable Communities (CFEC) administrative rules for land use, transportation, and community development. Attachment 1 Page 6 of 13 FY 2022-2023 GHG Emissions Report | Page 6 CONTACT INFORMATION & ADDITIONAL RESOURCES City of Eugene staff James McClendon, Ivan Campbell, and Yashara Lund conducted the FY 2022-2023 inventory of MWMC’s greenhouse gas emissions. Support on the preparation of the emissions inventory was provided by Sharon Olson (WW Technical Analyst, retd.) and Claudia Denton at Parametrix (dba Good Company), a leading provider of professional consultation and services for sustainability planning in the public and private sectors. For more information, call or email: James McClendon, 541-682-8608 JMcclendon@eugene-or.gov Ivan Campbell, 541-682-8618 ICampbell@eugene-or.gov Yashara Lund, 541-682-8607 YLund@eugene-or.gov Attachment 1 Page 7 of 13 Appendix | Page 1 Appendix GREENHOUSE GAS ACCOUNTING: EMISSIONS SCOPES The main sources of emissions from MWMC facilities include wastewater treatment process emissions, conventional natural gas usage, electricity usage, and supply chain purchases. GHG emissions are categorized into three Scopes according to the protocol, defined as follows:  Scope 1 emissions are direct emissions which originate from equipment and facilities owned and operated by MWMC, primarily from fossil fuel combustion and wastewater treatment processes.  Scope 2 emissions are indirect emissions from purchased electricity.  Scope 3 emissions are all other indirect emissions that result from the activities at the MWMC Facilities, but where the direct sources are controlled by other entities or service providers, such as construction of capital projects, production and transport of supply-chain related purchases, solid waste disposal, employee commute and business travel, and energy production, transmission and distribution losses (T&D). GREENHOUSE GAS ACCOUNTING: METHODOLOGY The inventory used for this FY 2022-2023 GHG report follows the Local Government Operations Protocol (LGOP), which was developed jointly by The Climate Registry and affiliated organizations.2 The LGOP protocol only requires the reporting of emissions in Scopes 1 and 2 as defined by the World Resources Institute. Therefore, this inventory has been expanded to include several additional Scope 1 process emission sources specific to biosolids management as well as shared emission categories from Scope 3. The use of these tools to measure additional emissions sources has enabled a more accurate inventory of GHG emissions from MWMC facilities. The protocols and methods used to account for the additional Scope 1 and Scope 3 emissions sources are documented in Good Company’s Carbon Calculator (G3C) and the G3C-Wastewater module, which are used to calculate emissions specifically for this inventory. The additional Scope 1 emissions sources were estimated using either the LGOP (for emissions associated with denitrification and discharge of effluent) or the Canadian Ministers of the Environment’s Biosolids Emissions Assessment Model (BEAM) for emissions associated with biosolids storage, drying and land application. Displaced emissions from conventional natural gas are calculated to be the same as an equal quantity of natural gas purchased from NW Natural. BEAM was used to estimate benefits associated with displaced conventional fertilizer and soil carbon sequestration from land application of biosolids. Carbon sequestration by poplar trees at the Biocycle Farm was calculated using the methodology specified by the Climate Action Reserve’s Urban Forest Protocol.3 2 The Local Government Operations (LGO) Protocol was developed in collaboration among The Climate Registry (TCR), the California Air Resources Board (CARB), the California Climate Action Registry (CCAR, now the Climate Action Reserve), and ICLEI Local Governments for Sustainability. The LGO Protocol follows the same format as The Climate Registry’s General Reporting Protocol (GRP). 3 Climate Action Reserve (CAR) Urban Forest Protocol can be found at http://www.climateactionreserve.org/how/protocols/urban-forest/ Attachment 1 Page 8 of 13 Appendix | Page 2 GREENHOUSE GAS ACCOUNTING: SUMMARY OF INVENTORY DETAILS Scope 1 emissions include process related emissions from wastewater treatment and biosolids processing, which increased in FY 2022-2023 in comparison to the previous reporting years, amounting to 5,123 MT CO2e or an increase of 6% as shown in Figure 1. Scope 2 emissions are the result of consuming electricity and are the lowest emissions of the three scopes for FY 2022-2023 and in all reporting years. Scope 2 emissions were 677 MT CO2e, a decrease of 14% from FY 2019-2020. Emissions from electricity are calculated according to the Market Based emissions factor for Scope 2 electricity (i.e., local utilities in Oregon only) instead of the Location Based emissions factor (i.e., an average for the Northwest Power Pool region). Figure 1 - MWMC Facilities Emissions by Scope Scope 3 emissions result from the purchase of goods and services for operational activity, capital projects, travel, solid waste disposal, and upstream energy production. Scope 3 emissions were 3,718 MT CO2e for FY 2022- 2023, a decrease of 27% from FY 2019-2020. The volume of supply chain emissions in FY 2022-2023 was similar to the same-type emissions from 2010-2016, before a period of intensive capital construction occurring from 2017-2020 (e.g., maintenance building expansion, digester #4 construction, ESB/Laboratory building construction, and RNG facility construction). For the FY 2022-2023 timeframe, after applying more current GWP values and EPA emissions factors for the supply chain sub-category, Scope 3 is now the second largest source of emissions at MWMC facilities after Scope 1. Wastewater treatment and the biosolids process are currently the greatest source of GHG emissions (Scope 1). Figure 2 - Overview of the MWMC Facilities’ Greenhouse Gas Emissions * Other sub-category represents emissions from refrigerants, natural gas, and non-fleet fuels. Attachment 1 Page 9 of 13 Appendix | Page 3 Scope 1 – Direct Emissions Details Wastewater Treatment and Biosolids Process Emissions GHG inventory protocol for the accounting of greenhouse gas emissions distinguishes human-caused emissions (anthropogenic) from the greenhouse gases stemming from natural processes (biogenic). Anthropogenic GHG emissions are those emissions associated with human activities dependent largely on the combustion of fossil fuels such as the burning of oil, coal and gas and process emissions from industrial activities resulting in the methane and nitrous oxide released from the treatment of wastewater. Biogenic emissions are part of the natural biogeochemical cycling of carbon. Biogenic emissions are carbon dioxide released from the combustion of non-fossilized, biologically based materials such as biogas and biofuels (e.g., biodiesel) and natural processes such as the decomposition of organic materials. For FY 2022-2023, wastewater treatment and biosolids process emissions accounted for nearly half (49%) of anthropogenic Scope 1 emissions at 3,436 MT CO2e, comprised of roughly 41% methane and 59% nitrous oxide. As shown in Figure 3, land-applied biosolids is the largest source of anthropogenic nitrous oxide, whereas the biosolids lagoon process is the largest source of methane release4. Figure 3 - MWMC Facilities Anthropogenic Emissions for FY 2022-23 The sludge lagoons at the Biosolids Management Facility (biosolids lagoons) are the largest source of methane emissions at MWMC facilities. For FY 2022-2023, the total volume of digested solids pumped from the treatment plant to the BMF was consistent with that of prior years (~5,407 dry metric tons), and the lagoons will off-gas biogenic methane at differing rates from year to year due to a range of conditions, primarily depending upon how long the solids in the lagoons have accumulated and been retained (~3 years). 4 Wastewater lagoons in the US are significant contributors of methane emissions, contributing approximately 2,300,000 metric tons per year. See Harper, L.A. "Methane emissions from an anaerobic swine lagoon." Journal of Atmospheric Environment. Retrieved 2 November 2011. Attachment 1 Page 10 of 13 Appendix | Page 4 Scope 2 – Indirect Emissions Details, Electricity Electricity Emissions Scope 2 emissions resulting from the consumption of electricity decreased by 14% between the FY 2019-2020 inventory and the FY 2022-2023 inventory period. The Market Based emissions factor has been applied to all inventories from 2010 to 2023 for the comparisons between reporting years. The market-based emissions factor for this report is specifically for Eugene Water and Electric Board (EWEB) and Springfield Utility Board (SUB), which distributes electricity primarily from the Bonneville Power Administration (BPA), whose electricity is mostly generated from low-carbon sources such as hydropower and wind. Electricity Use Emission Factors Which emissions factor is used to calculate GHG emissions from electricity use is one significant assumption in the accounting protocol. An emissions factor is a representation of the carbon intensity per unit of electricity (e.g., MT CO2e per megawatt hour). Both EWEB and SUB emissions factors decreased significantly from 2020 to 2023, as shown in Table 1. Emissions factors change from year to year because they are largely influenced by the water year and the amount of hydroelectricity available from Bonneville Power Administration and utility-owned generation resources. During the FY 2022-2023 reporting year, even though the treatment plant consumed more electricity than in the prior reporting year, because the emissions factors for EWEB and SUB were lower, the GHG emissions from purchased electricity were lower than in FY 2019-2020. Table 1 – Market Based Emissions Factors for EWEB and SUB EWEB MT CO2e / MWh SUB MT CO2e / MWh MWMC Facilities Total Consumption in MWh CY 2014 0.014 0.017 18,407 FY 2015-2016 0.010 0.012 17,122 FY 2017-2018 0.015 0.012 16,384 FY 2019-2020 0.055 0.020 15,557 FY 2022-2023 0.030 0.010 17,840 While there was a notable increase in electricity usage at MWMC facilities evident in FY 2022-2023, primarily due to the inclusion of the RNG facility at the treatment plant, the end result is that total GHG emissions from electricity usage (Scope 2) shows a year-over-year (YoY) decrease because the market-based emissions factor for EWEB and SUB was decreased for the same timeframe. As shown in Figure 4, although GHG emissions decreased by 14% from the prior reporting period, the regional treatment plant location continues to be the largest source of Scope 2 emissions among all MWMC facilities. Attachment 1 Page 11 of 13 Appendix | Page 5 Figure 4 - Emissions from Electricity Consumption – Scope 2 Scope 3 – Indirect Emissions Details, Supply Chain Scope 3 emissions are from the purchase of goods and services for operating activity, capital construction, travel, solid waste disposal, and upstream energy production. Scope 3 emissions were 3,718 MT CO2e in FY 2022-2023, a decrease of 27% from FY 2019-2020. The decrease in emissions was mainly due to completion of the RNG facility construction and an update to the EPA emissions factors and GWP values for supply-chain and related activity. The emissions sub-categories for Scope 3 are illustrated in Figure 5. These are the emissions resulting from the production, delivery, and use of building materials, fuels and energy products, and all other supplied goods and services. Scope 3 also includes emissions from business travel in non-MWMC vehicles and the landfilling of solid waste, which for FY 2022-2023 showed a 25% decrease. Figure 5 - Categories of Indirect Emissions – Scope 3 Attachment 1 Page 12 of 13 Appendix | Page 6 The capital construction category includes all capital construction emissions during the reporting period FY 2022-2023. Construction activities that utilize concrete, steel, and other building materials produce a substantial GHG emissions footprint. Other emissions are produced mainly from purchases related to maintenance of buildings, facilities, and equipment. Capital construction supply chain declined 78% in FY 2022-2023 (YoY). Upstream energy production includes emissions from MWMC’s supply chain purchases of energy products. Scope 1 and Scope 2 emissions account for ‘tailpipe’ emissions from combusting fossil fuels. Scope 3 emissions from upstream energy result from the extraction, transportation, refinement, and distribution of energy products used in MWMC-owned equipment or used in the generation of electricity consumed by MWMC facilities and equipment. For example, methane leakage during natural gas extraction and transport falls under the category of upstream energy production within Scope 3. Upstream energy emissions increased 70% in FY 2022-2023 (YoY) due to greater need for the purchasing of conventional natural gas for process heating. The operations supply chain category includes chemicals used in the treatment processes at MWMC facilities. Chemicals, replacement parts, and components comprise a large proportion of the materials and supplies emissions. Purchases of vehicles, heavy equipment, laboratory supplies, and professional services are also accounted for in operations supply chain emissions. Operations supply-chain emissions decreased 10% in FY 2022-2023 (YoY), largely due to updating of the GHG accounting methodology. Attachment 1 Page 13 of 13