CITY OF TAUNTON REGIONAL SOLID WASTE MANAGEMENT FACILITY: AN UPDATE

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1 CITY OF TAUNTON REGIONAL SOLID WASTE MANAGEMENT FACILITY: AN UPDATE Presented to 7 th Annual Massachusetts Chapter of SWANA Recycling & Solid Waste Conference Westborough, Massachusetts October 1, 2009 Presented by Steven Torres, City Solicitor City of Taunton, MA (508) James J. Binder, P.E., Principal; Susan M. Higgins, Director of Solid Waste Management Alternative Resources, Inc. (978) and William Lawrence, Esq. Pannone, Lopes, Devereaux & West LLC

2 Project Intent Private company finance, permit, design, build, and operate a Regional Solid Waste Management Facility to maximize beneficial use of waste, reduce greenhouse gas emissions, provide renewable energy Accept/process City and regional municipal solid waste Provide Host Community benefits Free waste disposal for City waste Royalty for regional waste Other possible waste/product revenue sharing Provide hub for research 2

3 Preferred Site Characteristics 10 to 20 useable acres Zoned industrial Access from major highway (I495) without passing through residential neighborhoods Rail served Status Purchased by City in

4 Key Contractor Services Process City waste Aggregate and process regional waste Permit SWMF Finance SWMF Design, build, operate SWMF Market product Dispose of any residue Provide interim service for City Waste, if SWMF not operational by June 30, 2013 Operate Drop-Off Facility Starting July 1, 2013, Saturdays, 7:00 AM 3:00 PM 4

5 RFQP: Acceptable Technology Options Traditional Technologies Composting Co-composting Transfer Facility Emerging Technologies Thermal Gasification Aerobic and Anaerobic Digestion Hydrolysis Chemical and Mechanical Processing Technologies not being considered Landfill Incineration (Traditional Waste-to- Energy) Transfer to Landfill or Incineration Facilities 5

6 SWMF General Specifications Size: from 100TPD to 1,800 TPD Can be staged: full buildout within 10 years Waste Delivery: 7 AM to 3 PM, Monday-Saturday Enclosed waste compartments on delivery vehicles Access limited to specified roads Totally enclosed waste receiving, handling and processing, and product storage and loading Air emissions, wastewater discharge, noise and odor control must meet all Federal, State, City permit requirements No objectionable odor or noise beyond property boundary Design to minimize water use Architectural Treatment: modern, high-tech appearance, buffer with native plantings that allows facility to be compatible with its surroundings Visitors and Public Education Center required At a minimum, buildings must meet LEED certification requirements 6

7 Business Principles Requesting free disposal of City waste Requesting royalty payment per ton for regional waste, with guarantee of Minimum Annual Payment; possible other revenue sharing (PILOT $3.18/Ton) Rent payment for site: $18,200 monthly ($218,400 annually); allowance to be negotiated Environmental Fund: $1,000,000 at project financing Reimbursement of City development costs: $1,750,000 at project financing Environmental Intern Program (UMass-Dartmouth and Taunton High School) 1 full-time equivalent intern from each Contract Monitoring Costs: $115,000/year Providing for City option to purchase SWMF at end of term Demanding good neighbor Showcase facility Stringent environmental controls Neighborhood and community acceptance Neighborhood Advisory Committee (SWMF $20,000/year) Payment for Emergency City Services Used: Fire, Police 7

8 Key Terms and Conditions of Contract Host Community Payment Contractor agrees to pay the City a monthly host community payment for hosting the SWMF Contractor additionally provides an annual Minimum Host Community Payment 8

9 Key Terms and Conditions of Contract (continued) General Terms and Conditions Term Contract effective on Contract Date and shall continue until 20 th anniversary of Acceptance Date Contract may be renewed for two, five-year terms Ownership and Financing Contractor shall own the SWMF City shall own the Site Contractor solely responsible for cost of SWMF design and construction 9

10 Key Terms and Conditions of Contract (continued) City option to acquire or remove SWMF At end of term, City has option to: Acquire the SWMF for $1.00; or Require Contractor to remove the SWMF and restore the site to useable condition Lender cure rights Parties shall negotiate typical lender cure rights 10

11 Key Terms and Conditions of Contract (continued) Contract security Guaranty agreement Construction performance bond Operations bond Required insurance Contractor shall obtain specified forms of contract insurance, including business interruption insurance up to amount of Minimum Host Community Payment Ground lease City and Contractor shall enter into a separate ground lease for the Site 11

12 Evaluation of Proposals Minimum Evaluation Criteria Qualifications of Proposers- technical, financial, corporate integrity Viability of Technology track record and technical approach LEED certification for buildings Evidence of ability to provide private financing Acceptance of Mandatory Contract Terms Technical and Business Proposal Evaluation Comparative Criteria for Ranking Price Proposal Evaluation Value Ranking 12

13 Proposals Received Six Submittals: International, U.S. and Massachusetts Companies Size Facility: 750 to 1800 TPD All include materials recovery, thermal conversion (gasification) and production of electricity Gasification Types Pyrolysis High Temperature Gasification Plasma Gasification Technologies either in commercial operation overseas or in U.S. or with Demonstration Facility in U.S. 13

14 Proposals Received (continued) Most pre-clean syngas prior to combustion Sulfur Mercury Most vitrify ash Types of waste received Post-recycled MSW all proposals C&D some proposals Food waste, other green waste some proposals Sewage sludge all proposals Landfill Diversion: exceeding 90% by weight (boost to zero waste ) 14

15 Materials Recovery Pre-processing Traditional recyclables Ferrous; Aluminum Pre-cleaning of gas, recovery products Sulfur Mercury Post-conversion product recovery Metals Vitrified ash Zinc concentrate Salt 15

16 Energy Recovery Net electricity to grid: 8 MW to 60 MW Potential for combined heat and power: Industrial Park 16

17 Business Offers Host Community Benefits Free waste disposal: most proposals Payment in lieu of taxes (minimum: $3.18 per ton ): all proposals City development costs ($1.75 million): all proposals Site rent payment ($218,400 annually): all proposals Annual City Monitoring Fee ($115,000): all proposals Annual NAC Fee ($20,000): all proposals Sharing in materials, energy sales: some proposals Market Tip Fee: Upper $40s to Mid $80s/ton 17

18 Issues/Opportunities Permitting restrictions on Thermal Gasification with on-site combustion of gas: Moratorium (DEP currently revising SWMP: focus on materials recovery and energy production) Waste Supply: Aggregate sufficient waste Green Communities Act (July 2, 2008) Confirm Eligibility for Renewable Energy Credits Confirm Eligibility for Alternative Energy Credits Financing: obtaining ARRA, DOE support 18

19 Anticipated Schedule Proposal Submission Due Date June 23, 2009 Proposal Evaluation June-October 2009 Contract Negotiation October January 2010 Permitting, Other February Environmental Approvals June 2011 Design, Construction, Start-up July June 30, 2013 Operations by June 30,

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