Produces green energy from organic waste.

Reduces greenhouse gas emissions.

Saves Palo Alto millions of dollars.

Energy available during power outages.

Palo Alto’s dump has closed

Our composting operation could cease

Palo Alto’s organic waste would get trucked to Gilroy.

The Z-Best composting facility near Gilroy is 53 miles from Palo Alto.

Further than:• Santa Cruz• San Francisco• Marin Headlands• Walnut Creek• Martinez• Tracy

Zero Waste Initiative90% diversion by 2021

vs.

Climate Protection Plan15% CO2 reduction by 2020

Local Threats from Climate Change

• Bay Rise/Creek Flooding

• Water/Food Shortages

• Wildfire Hazards

Palo Alto established a Blue RibbonTask Force on Composting

The BRTF recommended anaerobic digestion, a process using microorganisms in enclosed vessels to break down organic waste into methane and compost.

Each year Palo Alto’s organics could fill a Each year Palo Alto’s organics could fill a football field the height of City Hallfootball field the height of City Hall

130,000 Cubic Yards

Palo Alto has one of only twosewage sludge incinerators in CA

Palo Alto has one of only twosewage sludge incinerators in CA

Impacts

• 6,000 tons of CO2 produced per year.

• $1,000,000 worth of energy used per year.

• $230,000/year paid to dispose of waste ash.

Yard & Food

Biosolids

Generator

13,500 tonsgarden & farmcompost

5,600 tonscommercialcompost

21,000 tons Yard Trimmings & up to 22,000 tons Food & Compostables

16,000 tonsWastewaterBiosolids

Methane

Green electricityfor 1,400 homes

Usable heatFor wastewater processes

Anaerobic Digestion Waste Transformation

AD would reduce our greenhouse gases by 20,000 tons/year

Locally-generated energy would be available even when the grid goes down

East Palo Alto Plane Crash - February 2010

The only possible site is at the landfillnext to the Wastewater Treatment Plant

The facility would require undedication of10 acres (8%) of the 126-acre landfill

An equal amount of parkland could be dedicated elsewhere in Palo Alto

Former Los Altos Water Treatment Plant site

Savings from an AD facility could help maintain our world-class parks

Foothills Park

Or complete 92% of Byxbee Park(no funds currently exist)

To qualify the Initiative for the ballot we needed 4,356 valid signatures

We submitted 6,023 signatures, 5,128 were valid

What we learned from the study

Building a new incinerator would be prohibitively expensive - $314.8 million.

Anaerobic digestion gets cheaper over time, whereas the alternatives get more expensive.

The high cost estimates for DAD are immaterial.“It is likely that the lower cost options would provide a suitable system for the City

with the quantities of food scraps and yard trimmings available in the City.”

Wet anaerobic digestion for biosolids and food waste, followed by aerobic composting with yard waste, could still be our best option.

“Should the voters approve the November 2011 Ballot Initiative and establish a location for a Palo Alto Energy/Compost Facility, staff would return to Council and recommend new actions to more fully consider the possibilities of co-managing biosolids and organic refuse. One idea is to utilize the new acreage (should it be approved by voters) for the aerobic finishing step following anaerobic digestion, some or all of which would occur at the Plant site.”

Alternative Yard Food Biosolids

1a DAD - PA DAD - PA DAD - PA

2 Gilroy DAD - SJ Incineration

2a Gilroy DAD - SJ WAD - PA

3 Gilroy Gilroy Incineration

3a Gilroy Gilroy WAD - PA

Likely Alternatives

Financial Scenario 1

Public ownership and financing.

15% grant on construction costs assumed.

No site rent cost included.

Costs for CO2 “carbon adder” included.

30% contingency for DAD options.

15% contingency for export options.

Financial Scenario 2

Private ownership and financing at market rate.

15% grant on construction costs assumed.

$108,000/year site rent cost included.

Costs for CO2 “carbon adder” included.

30% contingency for DAD options.

15% contingency for export options.

"Scenario 2 contains staff’s suggested assumptions.”-Staff report

Financial Scenario 3

Private ownership and financing at market rate.

No construction grant assumed.

$908,000/year site rent cost included.

No CO2 “carbon adder” included.

30% contingency for DAD options.

No contingency for export options.

Under Scenario 1, DAD would save$30-80 million over the first 20 years

Alternative Year 1/ton Year 20/ton 20 Year Total

1a $86 $50 $71,993,438

2 $93 $486 $139,527,960

2a $89 $477 $134,349,833

3 $103 $129 $94,312,261

3a $97 $121 $89,266,458

Under Scenario 2, DAD would save$18-68 million over the first 20 years

Wet Anaerobic Digestion

Could process food scraps with sewage sludge, as is being done by EBMUD and others.

Digestate could be:• Composted aerobically with yard waste.• Turned into energy pellets.• Turned into biochar.

WAD is a proven technology• Would reduce contingency from 30% to 0-15%.• Would make private financing less risky.

Could increase green energy production and eliminate more greenhouse gas emissions.