HomeMy Public PortalAboutExhibit RC 99- Illinois American Water Letter to MSD 06-29-23June 29, 2023
Metropolitan St. Louis Sewer District (“MSD”)
Amy Fehr, Board of Directors Chairwoman
Board of Directors
Brian Hoelscher, Executive Director and CEO
2350 Market Street
St. Louis, MO 63103
Dear Chairwoman Fehr, Board of Directors, and Executive Director/CEO Brian Hoelscher,
As the largest water/wastewater utility company in the nation, American Water understands the
importance of developing opportunities to both take advantage of biosolids as a valuable resource
and maximizing benefits to communities and our environment, while keeping costs low for rate
payers. Illinois American Water is in the early stages of evaluating alternatives for disposal of
biosolids from our Metro East wastewater treatment plants. Biosolids costs are one of the largest
expenses for wastewater utilities and account for some of the largest capital expenditures in our
region. One of the alternatives we are currently evaluating, subject to regulatory approvals, is
construction of an Advanced Resource Recovery Facility that would collect wastewater biosolids
from wastewater plants and other facilities (farming, oil/grease generators) and process those
solids with state-of-the-art anaerobic digestion technology. The process would reduce total solids
volume while generating a sustainable supply of renewable natural gas to be used for a variety of
purposes, including heat and electrical generation.
We understand that MSD is well down the path of planning to construct new sludge incinerators
and while it is not our intention to disrupt that process, our initial evaluation of a regional biosolids
facility indicates substantial benefit potential for both utilities. We would like to invite MSD to
explore participation in this regional biosolids handling solution – an approach that is innovative;
cost effective; leverages the best that government and the private sector in both Illinois and
Missouri have to offer; and could eventually include the entire metropolitan St. Louis area
through:
Substantially reduced capital investment needs as compared to MSD’s incinerator
replacement project.
Regionalized sludge processing, to manage low volatile content excursions that MSD
experiences during heavy rain events. Additionally, this facility will be able to adjust to
future regulatory requirements.
Earlier availability than MSD’s incinerator project, allowing for phased implementation, if
needed.
Maximized generation of renewable natural gas that can be used as a resource for our
region.
Exhibit RC 99
Accessing potential benefits of the Federal Inflation Reduction Act and drawing down on
incentives meant to help finance projects such as the Advanced Resources Recovery
Facility.
Development of a facility that would allow other wastewater utilities in our region to
eliminate the need to operate and upgrade expensive biosolids operations of their own,
which in turn could expand the financial, environmental, and community benefits that are
possible through this innovative approach to biosolids handling and disposal.
Our region is at a crossroads for how biosolids will be managed in the future. The volume of
biosolids produced by MSD’s Lemay and Bissell Point Wastewater Treatment Plants could take
the concept of an Advanced Resources Recovery Facility from a local biosolids solution to one that
is scalable over time for use by the entire metropolitan area, on both sides of the Mississippi River.
The benefits stemming from such innovation and leadership could pay dividends for our
community – and associated customers – for generations to come. As such, we hope MSD’s Board
of Trustees and MSD staff will join us in exploring this unique opportunity and potential project.
Thank you for your time and consideration.
Sincerely,
Rebecca B. Losli, PE
President, Illinois American Water
300 N. Water Works Drive
Belleville, IL 62223
rebecca.losli@amwater.com
Office: (618) 239-2207
Cell: (314) 262-2055