2012 CAFR - Encina Wastewater Authority

ENCINA WASTEWATER AUTHORITYTRANSMITTAL LETTERFiscal Year Ended June 30, 20124. Execution of EWA’s Comprehensive Asset Management Plan (CAMP) enables EWA and itsMember Agencies to effectively and efficiently deliver important public health services.5. Additional resource recovery and investment creates the opportunity for energy independence.6. Fiscal responsibility is a primary decision criterion.7. Continuous improvement and regional partnering sustain excellence.8. Public affairs outreach builds community understanding of EWA, its Mission, and its Vision.9. Heightened regulatory scrutiny presents opportunities and challenges that may impactoperation, maintenance, and administration of the Encina Joint Facilities.Future PlansEnergy and EmissionsThe Board of Directors received and filed an Energy and Emissions Strategic Plan (EESP) in April 2011.The EESP identifies improvement projects that will move the EWPCF toward energy independence.Technologies were presented into seventeen scenarios largely structured around key electricalgenerating technologies including internal combustion engine generators, fuel cells and solarphotovoltaic panels. An interactive model was developed to evaluate the scenario variables includingcost, self generation capacity, air emissions rate, and energy purchases. The scenarios that leveragedexisting assets and expanded engine based systems were generally more cost effective than fuel cell orsolar panel based scenarios.Elements of the top ranked scenario recommendation include energy efficiency measures, engineexhaust catalyst and biogas treatment, waste to energy process, additional absorption chiller capacity,and a fifth cogeneration engine. The year 2020 projected results from investing about $11,700,000 are:• Increasing self generated electricity from 52% of demand to about 95% of demand.• Increasing self generated total energy from 57% of demand to about 81% of demand.• Reducing carbon monoxide emissions from 97 ton/year to 27 ton/year.• Reducing operations and maintenance cost of related facilities from $3.2 million/year to $2.5million/year.Biosolids ManagementThe production of Class A biosolids pellets by the Phase V facilities gives the Authority opportunities forbeneficial reuse in markets that are not available to Class B biosolids products. EWA’s BiosolidsManagement Plan (BMP) establishes long-term strategies that ensure EWA successfully manages thereuse and disposal of Class A biosolids pellets and Class B biosolids cake as operating and/or marketconditions change over time.The BMP identifies two tiers of markets. Tier 1 was implemented in the last year and includes landfilldisposal, contract agriculture, and biofuels. The current agreement with CEMEX for purchase of Class A