File #: 2003-0170    Version:
Type: Motion Status: Passed
File created: 4/14/2003 In control: Utilities Committee
On agenda: Final action: 6/2/2003
Enactment date: Enactment #: 11712
Title: A MOTION establishing policy direction for leveraging the energy potential of King County's asset base and waste streams to increase revenues, reduce operating costs and capture untapped energy resources from the county's waste streams in an environmentally conscious manner.
Sponsors: Julia Patterson, Larry Phillips, Jane Hague, Rob McKenna, David W. Irons, Kathy Lambert, Cynthia Sullivan, Larry Gossett, Dwight Pelz, Carolyn Edmonds, Dow Constantine
Indexes: Energy, Wastewater
Attachments: 1. Motion 11712.pdf, 2. 2003-0170 Transmittal Letter.doc, 3. Staff Report 05-20-03, 4. Staff Report 4-22-03
Drafter
Clerk 05/21/2003
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A MOTION establishing policy direction for leveraging the energy potential of King County's asset base and waste streams to increase revenues, reduce operating costs and capture untapped energy resources from the county's waste streams in an environmentally conscious manner.
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      WHEREAS, over the past several years, King County has experienced unprecedented increases in energy costs from suppliers of electricity, natural gas and steam because of issues related to west coast energy supply and demand, market manipulation by wholesale suppliers, utility infrastructure, and energy deregulation, and
      WHEREAS, King County desires to provide affordable, stable and predictable municipal services to its customers in an environmentally responsible manner, and
      WHEREAS, it is prudent and desirable for King County to leverage its multiple municipal, agricultural and livestock waste streams to extract greater energy value where it is cost-effective and appropriate to improve air emissions and water quality and mitigate impacts to fish and wildlife, and
      WHEREAS, King County recognizes the need for greater facility and operational energy efficiency and development of new energy resources, to the extent feasible, to provide a greater level of self-sufficiency and independence from energy market volatility and deficiencies, and
      WHEREAS, King County recognizes that active management of energy supply and usage is necessary to provide predictable and affordable municipal services, and
      WHEREAS, extreme volatility and unpredictability in 2000 and 2001 west coast wholesale energy markets drove county electricity purchases to $28.3 million (sixty-nine percent by the wastewater treatment division), and
      WHEREAS, the wastewater treatment division experienced a $10 million budget shortfall in the 2002 wastewater treatment division's operating budget requiring that sewer rates be increased eighteen percent in 2002 for increased energy costs and new financial policies necessary to retain a favorable bond rating which was also adversely impacted by high energy costs, and
      WHEREAS, wastewater treatment division's proactive management of electricity costs reduced electricity purchases in 2002 to $9.6 million (a forty-nine percent reduction), and
      WHEREAS, King County acknowledges that the Pacific Northwest Power Planning Council in drafting its Fifth Regional Power Plan is forecasting total consumption of electricity to grow at an average yearly rate of 1.33 percent through 2025 which would require three hundred fifty megawatts of a additional electricity generation each year, and
      WHEREAS, King County recognizes the intrinsic value of developing energy generation resources from the county's multiple waste streams in the Puget Sound basin and its contribution to the regional power supply, and
      WHEREAS, King County recognizes that developing digester gas generation at its wastewater treatment facilities can provide an environmentally sound, economic alternative to existing energy purchases and provide a heightened degree of plant reliability and public safety, and
      WHEREAS, King County desires to gain the greatest energy value from digester methane gas at its existing and planned wastewater treatment facilities by installing electrical generation facilities for onsite consumption of energy output to improve air emissions and mitigate the volatility and unpredictability of energy prices that negatively impact the price of municipal services, and
      WHEREAS, generating electricity from digester gas at the South and West Point treatment plants can produce approximately fifty-four million "green" kilowatt hours of energy from available methane digester gas, equivalent to the annual electricity requirements of five thousand four hundred households, and
      WHEREAS, Cedar Hills regional landfill has received approximately twenty-five million tons of municipal solid waste since it opened with projected disposal tonnage of approximately one million tons per year through its permitted lifetime, and
      WHEREAS; Cedar Hills regional landfill currently collects approximately thirteen million cubic feet per day of landfill gas that is flared to the atmosphere at its north flare station;
      WHEREAS, King County recognizes the potential energy value of the Cedar Hills landfill gas waste stream in the form of "green" landfill gas converted to "green" electricity to serve the equivalent annual electricity requirements of approximately sixteen thousand King County households in contrast to continued flaring of the methane gas to the atmosphere, and
      WHEREAS, King County further recognizes that the sale of landfill gas at Cedar Hills will provide the added benefit of generating annual revenue to the county, and
      WHEREAS, King County recognizes the need to promote the efficient use of all resources through sustainable development, and
      WHEREAS, King County recognizes that sustainable development strengthens our local economy, improves and protects the quality of the environment and enhances the quality of life and well-being of all of the people of King County.
      NOW, THEREFORE, BE IT MOVED by the Council of King County:
      A.  King County shall promote and expedite projects and operational initiatives at department of natural resources and parks facilities that leverage the energy potential of its asset base and waste streams to increase revenues, reduce operating costs and capture untapped energy resources from the county's waste streams in an environmentally responsible manner.
      B.  King County shall maintain a heightened degree of energy self-sufficiency and independence from the influence of external energy market supply, volatility and unpredictability to insure stable, predictable and affordable municipal services.
      C.  King County shall leverage the energy value of methane gas within existing and future county waste streams to provide a cost-effective sources of either electricity or natural gas, or both, while improving air emissions, water quality and fish and wildlife habitat.
      D.  King County's department of natural resources and parks shall evaluate the county's municipal, agricultural and livestock waste streams for potential opportunities to extract energy value in a manner that either creates new revenue and reduces costs or improves air emissions, water quality and fish and wildlife habitat, or both, for the county and its constituents.
      E.  King County shall proactively manage all county energy use, supply, and generation through involvement on a local, regional and national level with regulatory agencies, governments, utilities, trade allies and suppliers.
      F.  King County' s department of natural resources and parks shall adopt sustainable design and development as a guiding principle that both demonstrates and produces enduring benefits to the citizens of King County.  Project design elements shall incorporate concepts that minimize long-term impacts to the environment.  The Leadership in Energy and Environmental Design (LEEDTM) Rating System shall be used to rate the performance of King County's buildings and guide project design.  The LEED rating system components include:  sustainable site design; water efficiency; energy and atmosphere; indoor environmental quality; and materials and resources.  The department of natural resources and parks shall seek, at a minimum, a "certified" LEED rating for all capital related facility projects.
      G.  The King County department of natural resources and parks should only pursue capital improvements and operational initiatives intended to implement the policies contained in this motion when it can be demonstrated that the project or operational initiative provides a net benefit to rate payers and/or county residents over the life of the project.  Benefits can include increased revenues, reduced operating costs, greater energy self sufficiency, development of renewable resources, reduced discharge of pollutants or other environmental benefits, reduced public health risks, improved public safety, operational efficiencies or utilization of waste materials that the county is required to manage.  The executive shall provide the council with written information concerning proposed projects or operational changes to document evaluation of the following:
        1.  How the proposed project or operational initiative implements the energy policies adopted by this motion.
        2.  The lifetime costs and benefits of any capital project designed to implement these policies, including;
          a.  The cost of construction, operation and maintenance of the capital improvement;
          b.  The operating savings to be achieved through the capital improvement; and
          c.  Anevaluation of the length of time it would take for the county to recoup its financial investment in the project or operational initiative.
        3.  Other benefits of the capital improvement, such as the environmental benefit, the benefit to public health, improved public safety, the operational efficiencies, the improved utilization of waste materials that the county is required to manage;
 
development of a renewable resource, protection of the county from unpredictable and volatile market events.
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