Energy Advisory Committee

Montpelier Energy Advisory Committee Montpelier City Hall December 19th, 2017, 7:00 p.m. Attendance: Members: ​Anne Watson, Kate Stephenson, Karl Johnson, Geoff Fitzgerald, Dan Costin, Barry McPhee, Chris Damiani, Barbara Conrey, Amy Gamble, Jared Duval, Brent Ehrlich Other Attendees: Mike Hastings and Larry Doyle from ESG Approval of Agenda: ​Geoff moved to approve the agenda with the addition of discussion about upcoming goals. It was seconded by Dan Costin and approved unanimously. Approval of October Minutes: ​Geoff moved to approve the minutes. It was seconded by Dan Costin and approved unanimously. Public Comment: ​No public comment was offered. ESG Organics to Energy project update: Received update from Larry Doyle and Mike Hastings from ESG. They reviewed the history of the project up until this point. Aging infrastructure costs are higher than originally projected, $9 Million up from $3.5 Million. As a result they shifted their project, and as a result the Organics to Energy Project has been designed to only take 21,000 gallons per day (gpd) above what’s being processed now, instead of 34,000 gpd. If they build the combined heat and power (CHP) part of the project, the electricity produced will be sold to the grid. This will go through VEPP. The OE project with CHP is projected to produce 130% of what the plant uses in electricity. All but one building at the WRRF will be heated through this project, offsetting 100% of the plant’s heating fuel oil usage. If the population grows in the next 20 years, does that present any problems? No. There will still be plenty of capacity for treating liquid sewage. If suppliers don't manifest, what happens? ESG will guarantee 12,000 gpd, which is enough to cover the debt service. Any additional waste received (between 12,000 and max of 21,000 gpd) would generate additional revenue for the city. Geoff moved that we pass a resolution in support of the ESG project. Dan Costin seconded it. It was unanimously approved. RESOLVED The Montpelier Energy Advisory Committee hereby voices its continuing support for the Organics to Energy Project, including the CHP (co gen) component, proposed by Energy Systems Group (ESG). The Committee has devoted considerable time and effort to the project and it is fully aware of the project scope and costs. From a cost/energy perspective, the project remains a win-win for the City and an important component of the City’s goal of achieving net zero by 2030. If undertaken, the Water Resource Recovery Facility will be able to heat virtually every building on site, including the digesters, with bio gas produced by the Organics to Energy Project and it will be able to generate enough power with the excess bio gas to offset more electrical energy than is consumed through plant operations. Although there are risks, the Committee is convinced that the City has managed and can continue to manage those risks effectively through guarantees provided by ESG, so that, worst case scenario, the cost of project, over and above the required aging infrastructure work, will be effectively offset by the increased revenue and decreased costs of operation. Best case scenario, meaning that the City is able to run at full increased capacity, the project with have a positive impact on the City’s municipal budget Motion to adopt resolution moved by Dan Costin, seconded by Barb Conrey. Passed By Unanimous vote ​ ​ day of December 2017. Dated this 19th Budget: MEAC is required to submit a draft budget to City Council for FY19 by January 3rd. We are planning to use our current $5k MEAC budget to replicate successful models like Weatherize Upper Valley. We would like to continue that work in FY19 and request the same budget allocation in the next fiscal year. We could also use the funds to work with VEIC to look at their LEAP+ model to get a more refined image of the energy, based on actuals, rather than projections. Vital Communities runs Weatherize Upper Valley and they could give us some numbers on staff time required, and will be producing a guide for other towns to follow their model. If we do not use our full $5k allocation by the end of the fiscal year, can any excess go into the revolving loan fund? Kate will ask Todd Provencher. Georgetown Energy Prize: Fargo, ND was the final winner. Montpelier was the only Finalist from the northeast and also the smallest city to be recognized in the top 10. Kate will coordinate with Sue Allen on the press release. Future Agenda Items: Due to time constraints, the following items were moved to a future meeting: Review MEAC Priorities for 2018 and draft FY19 budget Legislative preview for 2018 session Updates from Working Groups Additional topics for future meetings: EAN update on new Community Energy Dashboard functionality Maura Adams presentation on modern wood heat initiative at the Northern Forest Center Digital Display: We need a place to put it in town. Jared will ask his building’s landlord on State St. Adjournment:​ 8:36pm. Moved by Geoff Fitzgerald, seconded by Dan Costin. Unanimously approved.