Hunts Point Energy Strategy

Presented to: Hunts Point Food Distribution Center Energy Strategy Plan- Phase1 Table of Contents - 1 Table of Contents Introduction Executive Summary Section 1: Site Investigation 1.1 Introduction 1.2 Tenant Site Investigation Summary 1.3 Electrical and Thermal Load Profiles 1.4 Conclusion Section 2: Energy Conservation Measures (ECMs) 2.1 Introduction 2.2 Summary of Potential ECMs by Tenant 2.3 Conclusion Section 3: Utility Assessment 3.1 Introduction 3.2 Electrical Assessment 3.3 Natural Gas Assessment 3.4 Conclusion Section 4: CHP Evaluation 4.1 Introduction 4.2 Combined Heat and Power (CHP) 4.3 Existing Energy Use and Costs 4.4 Methodology 4.5 Recommended CHP Technology 4.6 Permitting 4.7 Economic Analysis 4.8 Benefits and Incentives 4.9 Conclusion Section 5: Solar Evaluation 5.1 Introduction 5.2 Solar Photovoltaics 5.3 Solar Thermal 5.4 Regulatory Hurdles 5.5 Benefits 5.6 Conclusion Section 6: Fuel Cells Evaluation 6.1 Introduction 6.2 Benefits and Hurdles 6.3 Conclusion Hunts Point Food Distribution Center FINAL Energy Strategy Report- Phase 1 Table of Contents - 2 Section 7: Regulatory Impact 7.1 Introduction 7.2 Interconnection 7.3 Predevelopment Considerations for District Generation 7.4 Development Options for Distributed Generation 7.5 Transmission and Distribution Alternatives for District Generation 7.6 Conclusion Section 8: Potential Development 8.1 Introduction 8.2 FDC Vacant Sites and Development Projects 8.3 Conclusion Section 9: Appendix Appendix 1 Precedents Appendix 2 Con Edison Fault Map Appendix 3 CHP Utility Analysis Appendix 4 CHP Cost Estimates Appendix 5 Interconnection Application Process Schematic Hunts Point Food Distribution Center FINAL Energy Strategy Report- Phase 1 Introduction Introduction Introduction The New York City Economic Development Corporation (NYCEDC) teamed with DMJM Harris to produce a preliminary Energy Strategy Plan for the Hunts Point Food Distribution Center (FDC) located in the Bronx, New York. Situated on 329 acres, the Hunts Point Food Distribution Center is among the largest distribution centers in the world. Approximately $2 billion in gross annual revenues are generated by the Produce Market alone. The success and growth of the FDC is vital to the economic development of the Hunts Point peninsula as well as the South Bronx. NYCEDC, as administrator of the FDC, is currently exploring a number of development projects at the FDC. Among these is an energy strategy that will both reduce current energy consumption and supply a substantial portion of the energy needs of the FDC with distributed generation (DG). In coordination with the Hunts Point Vision Plan and PlaNYC, this report is the first phase of an energy strategy plan that seeks to identify economically and environmentally viable energy approaches for the Food Distribution Center. Hunts Point FINAL Energy Strategy – PHASE 1 Acknowledgements This project could not have been completed without the input and assistance of many individuals and organizations. First and foremost, the staff of the NYCEDC namely, Alison Kling, Jim Gallagher, Eric Wilson, Josh DeFlorio, Jen Becker, Liz Kim, Cindy Lo, and Mike Delaney who provided invaluable assistance throughout the duration of this project. Other notable contributors to the success of this project include: George Maroulis, Market Manager of the New Fulton Fish Market Steve Bettencourt, Director of Maintenance of the New Fulton Fish Market Caleb Haley Inc. of the New Fulton Fish Market Bruce Reingold, General Manager of the Hunts Point Cooperative Market Brian Kenny, Operations Manager of the Hunts Point Cooperative J.R. McIntyre, General Manager of the NYC Terminal Produce Cooperative Market Michael Muzyk, President of Baldor Specialty Foods Rocco D’Amato, Chief Executive Officer of Bazzini Nuts Ruben DeMille, Plant Facilities Manager of Krasdale Food Distribution Center Sigmund Balka, Vice President of Krasdale Food Distribution Center Phil Del Prete, Chief Executive Officer of R. Best Produce Rich Brown, Customer Project Manager of Con Edison Morton Kevelson, Senior Distribution Engineer of Con Edison Jim Barry, Customer Project Manager of Con Edison Len Van Ryn, Staff Council of the New York State Public Service Commission James Denn, Director of Public Affairs of the New York State Public Service Commission Luis Carrio of the NYC Department of Environmental Protection Anthony Fiore, Acting Director of Enforcement Policy and Implementation of the NYC Department of Environmental Protection Kathryn Garcia, Assistant Commissioner, Office of Strategic Projects of the NYC Department of Environmental Protection Jacob Felix Pierre, Energy Manager of the NYC Department of Environmental Protection Lou Bartolo, NYPA Ariella Rosenberg Maron, Deputy Director-Mayor’s Office of Operations of the Office of Long Term Planning & Sustainability Without the support of these people and parties, this report would not have been possible. Thank you. Hunts Point FINAL Energy Strategy – PHASE 1 Executive Summary Executive Summary Executive Summary - 1 Executive Summary The New York Economic Development Corporation (NYCEDC) commissioned DMJM Harris to assess sustainable energy approaches for the Hunts Point Food Distribution Center (FDC), located in the Hunts Point neighborhood of the South Bronx. The FDC is the site of the City’s major wholesale markets, including the Hunts Point Cooperative Market (Meat Market), the New York City Terminal Produce Market (Produce Market) and the New Fulton Fish Market at Hunts Point (Fish Market). As the FDC is entirely City-owned property, NYCEDC, on behalf of the City, administers long-term leases to these and other food-related businesses. In addition to the major markets, other tenants included in this report are: • Krasdale Food Distribution Center • Bazzini Nuts, Inc. • R. Best Produce • Baldor Specialty Foods, Inc. • Anheuser Busch • Citarella • Sultana Distribution Services, Inc OBJECTIVES This report has five components: 1. Existing energy consumption patterns of individual tenants, including facility electrical and thermal load profiles, current condition of the facilities, potential energy conservation measures (ECMs) and interviews to understand tenants’ receptivity to district generation. 2. Utility infrastructure assessment, including an evaluation of the Con Edison distribution system for its ability to provide the electrical load needed for future FDC growth and to accept power onto its grid. 3. Feasibility assessment of a combined heat and power (CHP) plant based on the energy needs of FDC tenants. The plant was sized to supply the electrical load of the entire FDC. An economic feasibility analysis is included. 4. Evaluation of applicable alternative energy technologies, including solar and fuel cells. 5. List of regulatory impacts, including an investigation of the utility interconnection requirements, issues such as franchise rights and fault current, and the application process required to utilize Con Edison’s grid for district generation. PRINCIPAL RESULTS Existing Energy Consumption The ten FDC tenants investigated in this report purchase an estimated 168,066,405 kWh of electricity and 185,141 MMBTUs of fuel annually at a cost of $25.7M. The estimated aggregate peak load of these ten facilities is about 23 MW. The facilities have constant heavy refrigeration loads but the overall load profiles are typical in that the peak electrical load occurs in the summer, while peak thermal load occurs in the winter. The majority of gas consumption is due to heating rather than processing. Hunts Point Food Distribution Center FINAL Energy Strategy Report- Phase 1 Executive Summary - 2 The majority of the tenants were very proactive about energy savings. However, some easily implementable ECMs were identified for each facility. The ECMs recommended in this report cost a total of $3.5M, however would reduce annual electricity consumption by 2.7 MWh, generating a total annual savings of $479,102 to FDC tenants, equating to a 7.3 year payback. Of the major wholesale markets, the Meat Market has only four electric meters and charges subtenants for common power on a square foot basis that is incorporated into their leases. Subtenants at the Fish and Produce Markets each have at least one electric meter tied directly to Con Edison. The advantage of common power, such as at the Meat Market, is that a single entity may have more negotiating leverage in purchasing greater amounts of power. However, individually-metered subtenants tend to be more energy conscious since they are responsible for the bill. Because the tenants in both the Fish and Produce Markets are submetered, The specific usage histories and utility agreements for these tenants would have to be investigated further if a developer were to be brought onboard to provide third party power generation. Utility Infrastructure Assessment The majority of the FDC is on a 480 V network. This is not an optimal arrangement for receiving power supply from a distributed source, such as would be the case with district generation. However, Con Edison’s South Bronx network is served by a newly upgraded delivery system and there is enough capacity to support an additional demand of 10-20MW, the projected load if the FDC expands to full capacity. The Meat Market is the sole tenant on 13kV power, while the other tenants are on 480 V feeders. 13kV power is preferable for the integration of a CHP plant, and should be incorporated into future FDC developments, if possible.1 Combined Heat and Power The benefits of CHP are that it could provide power at a greater efficiency and lower emissions rate than a central power plant. It would also reduce the burden on the grid during peak loads. Further, the Meat Market, with its central cooling load, could reduce its electrical consumption by up to 2.2 MW if it were to utilize the steam produced by a CHP facility to run a steam turbine coupled to the ammonia chillers. The ideal site for a CHP is next to the Meat Market utility building because it would be in close proximity to incoming Con Ed 13kV service and near the ammonia refrigeration system.

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