Rialto Wastewater Utility:
Solids Handling and Microgrid Projects
City of Rialto continues to innovate in infrastructure– *2012-2022: first 10 of 30-year public-private partnership; first in nation, labor-led *Sustained A- credit rating, annually reviewed
*2019: S1 Wastewater Plant Progressive Design Build (PDB) completed *Ahead of schedule & under budget
*2020: Microgrid Progressive DB begins, critical Solids Handling added 2021 *2022: Bids in, Guaranteed Maximum Price (GMP) achieved; Solids Handling at 10% *2023: Ready to access $17M Inflation Reduction Act cash subsidy, $1.2MM SGIP grant Rialto Infrastructure Innovation
* Solids Handling Equipment: Critical Condition
🚩 Equipment must be replaced ASAP to ensure continuous plant operation; project benefits from 30-50% Investment Tax Credit (ITC) refund because tied to Microgrid * Microgrid Asset: Economic & Regulatory Drivers
🟢 ECONOMIC: Protect rates using ITC plus annual $1M+ currently going to electricity & gas 🚩 REGULATORY 1: Achieve Power Backup Compliance, Title 23 Title 23 requires redundant power supply sufficient to support plant operations; existing system not compliant, Microgrid including Electrical Upgrades achieves compliance 🚩 REGULATORY 2: Achieve Methane Flaring Compliance, SCAQMD Rule 1118.1 SCAQMD Rule 1118.1 requires elimination of flaring produced in solid waste treatment; plant currently flares 100%, Microgrid converts methane to electricity in CHP Engine * Financials: Funding optimizes Rialto’s WIFIA funds, SRF, grants & ULLICO/Table Rock funds (RWS) Why were these projects initiated?
* On-site generation & emergency power back-up
* Supplies over 83% of energy needs
* Eliminates flaring of methane
The Rialto Microgrid: What will it look like?
$17.8MM in Microgrid Incentives
Investment Tax Credit (ITC) of estimated $16.7MM value
30-50% cash rebate for eligible costs
Solids Handling costs eligible if tied to microgrid
IRA Section 13102(f)(3)
Electrical system costs eligible if tied to microgrid
Self-Generation Incentive Program (SGIP) of $1.1MM value * 50% cash rebate for cost of Battery Energy Storage System (~$1.1MM value) * Deadlines:
🚩 Battery ordered by March 25, 2023
🚩 Battery and Solar PV system installed and commissioned by April 2024 – long lead time requires battery order to be placed in February
Microgrid
Necessary Plant Upgrades
Microgrid GMP
$20.6MM
Electrical Upgrades + Demo GMP
$10.9MM
ITC+SGIP Reduction
$17.8MM
Solids Handling Estimate
$13.8MM
Net Cost
$2.8MM
Initial Contingency - Solids
$10.6MM
Necessary Projects Total Cost
$24.7 - 35.3MM
Avoided Energy Costs (Lifecycle)
$30MM+
Economic Analysis
Action Items
February 14th Council Meeting
Approve Solids progress to 60% Design and GMP – $1,113,600 (DIF Funds) Order Solids shop drawings to complete competitive bid process for Solids Handling equipment – $720,000 (DIF Funds) Order battery and substation to meet $1.1MM SGIP grant deadline and lock prices - $1,333,463 deposit (RUA funds) April 11th Council Meeting
Complete Microgrid GMP review and give Notice to Proceed