Ramsey/Washington County Resource Recovery Project. Direction on Technology and Policy Evaluation April 29, 2014

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1 Ramsey/Washington County Resource Recovery Project Direction on Technology and Policy Evaluation April 29, 2014

2 The Policy Questions to be Answered in 2015 Looking ahead to the future (20 30 years): 1. How should processing of MSW be integrated into the solid waste system in the East Metro area? 2. What should be the role of the Counties with regard to integrating processing into the solid waste system? Ramsey/Washington County Resource Recovery Project 2

3 Action Requested Today 1. Establish guiding principles for waste processing system changes; 2. Narrow the range of technologies to further evaluation in 2014; and 3. Identify policy options to further evaluate in Ramsey/Washington County Resource Recovery Project 3

4 First Decision i Establish guiding principles for waste processing system changes. Why? To serve as a touchstone t as specific issues are debated and decided allowing the Counties to test tthe integrity it of decisions. i Ramsey/Washington County Resource Recovery Project 4

5 Guiding Principles 1. Plan for a year horizon; 2. Build on the current system and allow changes in processing to emerge over time; 3. Assure flexibility 4. Manage risks; and 5. Pivot the view from waste to resources to add value to the local economy and the environment. Ramsey/Washington County Resource Recovery Project 5

6 Guiding Principles Frame the future role of waste processing with a year horizon, build on the current system and allow changes in processing to emerge over time, assure flexibility, manage risks, and pivot the view from waste to resources to add value to the local economy and the environment. Ramsey/Washington County Resource Recovery Project 6

7 Second Decision: Identify the specific processing alternative(s) the counties should further research and develop in Ramsey/Washington County Resource Recovery Project 7

8 Technology Review Alternative Technologies for Municipal Solid Waste, July, 2013 Preliminary Technical Status ofthenewport and Two Xcel Combustion Facilities, October 2013 Preliminary Resource Recovery Feasibility Report, January 2014 Technology Comparative Analysis, January 2014 Ramsey/Washington County Resource Recovery Project 8

9 Technologies Individually Reviewed RDF production Gasification Pyrolysis Plasma arc Mass burn Anaerobic digestion Mixed waste processing Plastics to fuel Ramsey/Washington County Resource Recovery Project 9

10 Combined Technologies Combining technologies that may fit the East Metro Comparedcombinations and evaluated using several factors Financial i analysis Ranking Ramsey/Washington County Resource Recovery Project 10

11 Combined Technologies: What might be possible for East Metro Discontinue county involvement in waste processing with an increased focus on source separated recycling and organics management, and a reliance on landfilling MSW Contract with a vendor other than RRT for waste processing at an existing facility, such as the Elk River Facility owned and operated by GRE. Current RDF System using Newport and Xcel combustion units as they currently exist Newport with Mixed Waste Processing and Gasification Newport with Anaerobic Digestion and Gasification Newport with Mixed Waste Processing and Anaerobic Digestion Mixed Waste Processing and Anaerobic Digestion Mass Burn Ramsey/Washington County Resource Recovery Project 11

12 ntal Technology echnical inancial nvironm e erm itting itin g T F E P S R eliability le x ib ility otal F T Current RDF System Newport with MWP/Recycling and Gasification MWP/Recycling/Organics with AD Mass Burn Sanitary Landfill Newport with MWP/Organics with Anaerobic Digestion and Gasification Newport with MWP/Organics with Anaerobic Digestion and Xcel RDF Combustion

13 Recommended: Rule these out for further study Discontinue county involvement e in waste processing, with an increased focus on SSO and recycling, with landfilling of MSW Plastics to fuel Mass burn Newly developed anaerobic digestion Newly sited and developed mixed waste processing Landfilling Ramsey/Washington County Resource Recovery Project 13

14 Recommended: Continue to Evaluate Role of source separation and mixed waste processing for organics and recycling to meeting recycling and organics targets Use the current system as a base to make change including potential use of GRE Source Separated Organics and Mixed waste processing with organics to existing/planned anaerobic digester (Sanimax) RDF to Gasification Ramsey/Washington County Resource Recovery Project 14

15 Proposed Issues for Further Evaluation in 2014 Technology Waste Assurance Ownership Governance Role of source separation and mixed waste processing for organics and recycling to meeting recycling and organics targets Regulatory/Waste Designation (Flow Control) Public Ownership Continuing to examine the joint exercise of powers Use the current system as a base to makechange change; including potential synergy with the Great River Energy processing facility in Elk River. Source Separated Organics and Mixed waste processing with organics to Sanimax Economic Incentive /Market Participant Public blicentities Monitor Regulatory/State enforcement of Private Ownership Public/Private Ownership Waste Management District RDF to Gasification Economic Incentive/Hauler Rebates Economic Incentive/Service Agreement with Private Facility Owner Economic Incentive/Use of Hauler Collected Service Charge

16 Policy Review Waste Assurance Governance Ownership Ramsey/Washington County Resource Recovery Project 16

17 Waste Assurance The key economic issue related to any processing alternative and ownership option selected. Two Categories Regulatory Economic incentive Ramsey/Washington County Resource Recovery Project 17

18 Recommend rule these out: Regulatory: County public collection Economic incentive: zero tipping fee Ramsey/Washington County Resource Recovery Project 18

19 Recommend continue to evaluate Regulatory Waste Designation (Flow Control) Monitor State enforcement of Economic Incentive Hauler Delivery Agreements Market Participant Public Entities Hauler Rebates Service Agreement with Pi Private Facility Owner Use of Hauler Collected Service Charge as an economic incentive Ramsey/Washington County Resource Recovery Project 19

20 Proposed Issues for Further Evaluation in 2014 Technology Waste Assurance Ownership Governance Role of source separation and mixed waste processing for organics and recycling to meeting recycling and organics targets Regulatory/Waste Designation (Flow Control) Public Ownership Continuing to examine the joint exercise of powers Use the current system as a base to makechange change; including potential synergy with the Great River Energy processing facility in Elk River. Source Separated Organics and Mixed waste processing with organics to Sanimax Economic Incentive /Market Participant Public blicentities Monitor Regulatory/State enforcement of Private Ownership Public/Private Ownership Waste Management District RDF to Gasification Economic Incentive/Hauler Rebates Economic Incentive/Service Agreement with Private Facility Owner Economic Incentive/Use of Hauler Collected Service Charge

21 Governance Alternatives Joint Exercise of Powers Intergovernmental Service Agreement Legislative il i Established Entity Waste Management District Ramsey/Washington County Resource Recovery Project 21

22 Recommendation Rule out Intergovernmental service agreement Legislatively established entity Continue to Evaluate Joint exercise of powers Waste management district Ramsey/Washington County Resource Recovery Project 22

23 Proposed Issues for Further Evaluation in 2014 Technology Waste Assurance Ownership Governance Role of source separation and mixed waste processing for organics and recycling to meeting recycling and organics targets Regulatory/Waste Designation (Flow Control) Public Ownership Continuing to examine the joint exercise of powers Use the current system as a base to makechange change; including potential synergy with the Great River Energy processing facility in Elk River. Source Separated Organics and Mixed waste processing with organics to Sanimax Economic Incentive /Market Participant Public blicentities Monitor Regulatory/State enforcement of Private Ownership Public/Private Ownership Waste Management District RDF to Gasification Economic Incentive/Hauler Rebates Economic Incentive/Service Agreement with Private Facility Owner Economic Incentive/Use of Hauler Collected Service Charge

24 Ownership Types of ownership evaluated Public ownership Private ownership Public/private combined ownership Issues associated with ownership Benefits and risks of Form of ownership Form of financing Form of operating Ramsey/Washington County Resource Recovery Project 24

25 Ownership Options Recommendcontinueto continue to evaluate Public ownership Private ownership Public/private ownership alternatives Ramsey/Washington County Resource Recovery Project 25

26 Proposed Issues for Further Evaluation in 2014 Technology Waste Assurance Ownership Governance Role of source separation and mixed waste processing for organics and recycling to meeting recycling and organics targets Regulatory/Waste Designation (Flow Control) Public Ownership Continuing to examine the joint exercise of powers Use the current system as a base to makechange change; including potential synergy with the Great River Energy processing facility in Elk River. Source Separated Organics and Mixed waste processing with organics to Sanimax Economic Incentive /Market Participant Public blicentities Monitor Regulatory/State enforcement of Private Ownership Public/Private Ownership Waste Management District RDF to Gasification Economic Incentive/Hauler Rebates Economic Incentive/Service Agreement with Private Facility Owner Economic Incentive/Use of Hauler Collected Service Charge

27 Proposed Issues for Further Evaluation in 2014 Technology Waste Assurance Ownership Governance Role of source separation and mixed waste processing for organics and recycling to meeting recycling and organics targets Regulatory/Waste Designation (Flow Control) Public Ownership Continuing to examine the joint exercise of powers Use the current system as a base to makechange change; including potential synergy with the Great River Energy processing facility in Elk River. Source Separated Organics and Mixed waste processing with organics to Sanimax Economic Incentive /Market Participant Public blicentities Monitor Regulatory/State enforcement of Private Ownership Public/Private Ownership Waste Management District RDF to Gasification Economic Incentive/Hauler Rebates Economic Incentive/Service Agreement with Private Facility Owner Economic Incentive/Use of Hauler Collected Service Charge

28 Pending Board Approval Further work on technology and policy issues, including meetings with stakeholders Technology tours/meetings Cancel June meeting Progress report to Project Board at July 24 th meeting Report to Project Board at September 25 th meeting Ramsey/Washington County Resource Recovery Project 28

29 The Policy Questions to be Answered in 2015 Looking ahead to the future (20 30 years): 1. How should processing of MSW be integrated into the solid waste system in the East Metro area? 2. What should be the role of the Counties with regard to integrating processing into the solid waste system? Ramsey/Washington County Resource Recovery Project 29

30 Ramsey/Washington County Resource Recovery Project

31 Technology Timing Issues Processing Agreement with RRT in Effect RDF Technology currently in use Modifications to current RDF technology could be on line Xcel Combustion Units Under Contract to RRT Xcel Combustion Units Can Safely and Reliabilty Operate if planned maintenace occurs Mixed Waste Newport could be on line Density separation of Newport could be on line Anaerobic Sanimax could be on line RDF Gasification some location could be on Line

32 Continuum of County Involvement in Waste Processing Category Waste Assurance Ownership More Waste Designation Public Ownership County Contracts with haulers for delivery of waste Public/Private Joint Ownership Private facility contracts with haulers for waste; County subsidy to facility County pays haulers a rebate for processing at any facility Private Ownership with a Service Agreement Market-driven merchant approach Private Ownership with no service agreement

33 Questions to keep in mind With regard to selection of processing technology, what policy tool is the best fit for the counties in deciding which technology ( ies) will process waste over the next years? With regard to assuring a supply of waste for processing over the next years, what policy tool (s) will be most appropriate for the counties to implement? What are the risks associated with the various policy tools? Which governance and ownership structure will best position the East Metro area to implement various policy tools for the next 30 years? Are there any further policy analyses needed prior to decision making in April? Ramsey/Washington County Resource Recovery Project 33

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