Ramsey/Washington Recycling and Energy Board: Facility Committee June 23, 2016 Meeting
Item IV. a. R&E Center Operations Update
Item IV. b. Odor Mitigation Study Update
2017 Facility Budget Recommendations June 23, 2016
Item IV. c. 2017 Budget Recommendations
Budget and Finance Processes 2016 2017 Budget Process Facility Committee 2016 Budget Committee Monthly Operations Report Budget Status Report 2017 Budget Adjustment April 2016 Facility status report Discuss Facility issues to be addressed in 2017 budget addenda June 2016 Facility status report Identify Facility issues to be forwarded to Budget Committee March 2016 Operating budget review Initial Capital Expenditures Committee process April 2016 Operating and Joint Activities Budget status report Receive Facility Committee issues related to 2017 budget Discuss possible changes to 2017 budget 2017 Budget Adjustment June 2016 Operating and Joint Activities Budget status report Recommend 2017 budget addenda to full R&E Board 2016 Budget Monitoring August, October 2016 Facility status report Identify Facility issues to be forwarded to Budget Committee 2016 Budget Monitoring August, October 2016 Operating and Joint Activities Budget status report Make recommendations to R&E Board on necessary budget issues
Facility Budget Overview Operates as an enterprise fund Direct expenses; reimbursement of GRENS Budget approved October 2015: Best guess Operating Reserve Fund role Revisions to 2017 budget based on operating history January May 2016
Addendum to 2017 Facility Budget Account Description 2016 Approved 2017 Approved 2017 Proposed Revision 2017 Change 411101 Salary & Fringe Benefits Facility Manager, Asst. Facility Manager 300,559 311,569 300,559 11,010 421502 Xcel Fuel Supply Agreement 4,727,700 4,727,700 5,028,254 300,554 421522 Operating Fee Transition Facility Operator 1,100,000 950,000 950,000 0 421524 Operating Expenses 3,484,381 3,484,381 4,532,065 1,047,684 Personnel Costs 6,665,352 6,831,986 6,966,177 134,191 421531 Consulting Labor Relations 175,000 175,000 100,000 75,000 Consulting IS Superior Services 1,500 1,500 1,500 0 422304 Landfills 2,005,973 2,005,973 1,943,538 62,435 424201 Payment In Lieu of Taxes 386,000 386,000 386,000 0 424506 Transportation 5,329,618 5,329,618 6,208,333 878,715 471107 Contingent 1,155,029 1,157,794 0 1,157,794 481101 Transfer RC Bonds 0 1,096,775 1,059,150 37,625 Transfer Washington Co 0 399,285 368,730 30,555 440000 Equipment Repair and Maintenance Fund 818,730 839,198 700,000 139,198 Facility Management Expense Total 26,149,842 27,696,779 28,544,306 847,527 2017 Proposed 2016 Approved 2017 Approved Estimated Revenue/Reserve Fund Revision 2017 Change Tipping Fees ( @385,000) 26,950,000 26,950,000 26,950,000 0 Sales of Recylable Materials 1,237,467 1,237,467 700,000 537,467 Needed from Operating Reserve Fund (2,037,625) (490,688) 894,306 1,384,994 Facility Management Revenue Total 26,149,842 27,696,779 28,544,306 847,527
Action Requested: Recommend that the Budget Committee approve and forward the Addendum to the 2017 approved Facility Budget to the R&E Board.
Item IV. d. Update on Waste Designation Planning
Designation Process Statute sets out specific details to be included in a Designation Plan. Each county must also amend its current solid waste master plan. Approval sought at July 28 th R&E Board meeting. Then by both county boards in August. Approval by MPCA expected Fall 2016. Entire process estimated to take 18 months.
Designation Process If approved, each county holds public hearing. R&E Board then negotiates with licensed haulers to enter into contracts requiring delivery to R&E Center. After hauler contracts, R&E Board may proceed with implementing designation via county ordinance in 2017. Waste designation in both counties could be in place 2018.
Stakeholder input sought through early July City and township administrators, elected officials, and staff Recycling coordinators Haulers Ad hoc planning committees Business community Online at www.morevaluelesstrash.com Draft available around June 20 th
Jul. 28, 2016 R&E Board approves and recommends Master Plan Amendment, Designation Plan to County Boards Aug. 16, 2016 Ramsey & Washington County Boards approve Master Plan Amendment, Designation Plan, submit to MPCA for approval Dec. 31, 2016 MPCA review and approval Of Master Plan and Designation Plan (120 day review period) Apr. 2017 Ramsey & Washington County Boards discuss and approve submitting proposed designation ordinances and contracts for MPCA review Feb. Mar. 2017 R&E Board negotiates waste delivery agreements with haulers and others Jan. 2017 Public hearing to take testimony on Designation May Jul. 2017 MPCA review of contracts and ordinances (90 day review period) Aug. Nov. 2017 County Boards approve contracts and ordinances; includes 60 day statutory waiting period Dec. 2017 Designation is implemented
Item V. a. 2016 Capital Improvement Budget Update
Item VI. a. Updates on Emerging Technologies
Update on Emerging Technologies for MSW and RINs R&E Board Facility Committee meeting June 23, 2016
Emerging Technologies for MSW Game Changers Gasification Pyrolysis Plasma Arc Mixed Waste Processing Plastics to Fuel
Emerging Technologies In 2013 Barrel of Oil was $108.00 Gallon of Gasoline $4.28 Number of Companies 165 In 2016 Barrel of Oil is $46.21 Gallon of Gasoline $2.05 Number of Companies < 20
Emerging Technologies So what happened? Grant/loan funding dried up Cost/benefit went away Technical issues Show me
Where Did the Funding Go? DOE and USDA grants and loans dried up $250,000,000 from 2008-2013 for USDA $23,000,000 from 2014-2018 for USDA ARRA - $600,000,000 for DOE in 2008 In 2016 $90,000,000 for DOE
Cost/Benefit Capital costs are $200M or more Private equity challenging Concept not proven at large scale Investor risk Output costs down over 50%
Technical Issues Indian River Bioenergy Center It is all in the bugs Fulcrum/Sierra Biofuels Construction expected late 4 th quarter 2014 Biorefinery expected to reach commercial operation early 3 rd quarter 2016 Enerkem Edmonton Still in Commissioning Abengoa Now EPCM for Fulcrum
Technical Issues Agilyx Contamination and supply challenges Now focused on Polystyrene Plasma Power Left Iowa because they learned MSW to be extremely political and very competitive Air Products Offloads two large plasma gasifiers in Teesside (operational challenges)
Not ALL Bad News Clearing the decks Enerkem is in the lead Fulcrum issued $200M for procurement for their Nevada plant Ineos Bio has indicated they would be producing ethanol in 2016 Other technologies focused on plant feedstock to avoid the variability of MSW
Not ALL Bad News Plant in Tennessee using gasification on wood waste, scrap tires and sewage sludge. Produce electricity Europe opportunities available RES Polyflow plastic to fuel plant in Ashley, Indiana Pearl Harbor has waste gasifier (10 TPD) Enerkem considering entering the TC market
Mixed Waste Processing Proven technology Commodity markets for recyclables make private investment difficult New machinery to separate by density and shape at the same time Needed to meet higher recovery/recycling goals Likely to be led by public agencies
Where is this Going? PUBLIC/private partnerships Securing funding sufficient to construct No free lunch Europe may see faster growth Continue to see small scale plants Twin Cities market ideal
Why Produce Ethanol from Waste? Economics RINs (renewable identification number)
RIN Codes Fuel Types and RIN D Codes
RIN Needs Renewable Fuel Standard (RFS) Mandate, by Type, 2008-22
Show Me The Money Corn Ethanol Cellulosic Ethanol
Take Aways Using Emerging Technologies (even AD) that produces transportation fuels has income from RINs Understand the market dynamics with RINs and impacts to development If gasification can produce 100 gallons of ethanol per ton, RINs can be >$100 per ton!
Conclusions Emerging Technologies are not Dead! Projects will be more Public/private partnerships Positive financial benefits for waste to ethanol continue If it works
Questions
Item VI. b. Enerkem and SKB Gasification Project
Item VI. c. Process for New Technology Evaluation and Site Visits
Alternative Technology Pathway Task 2016 2017 2018 2019 Waste sorts X X Processing equipment X X Request for Expressions of Interest for MWP X X Request for Proposals for MWP X Installation and operating MWP X X Facility improvements X X Organics X Permits X X Financing X
Alternative Technology Site Visits Options: 1) Southern tour half day MWP equipment Education center Blue Bag organics hand sort 2) Northern tour half day MWP equipment Anaerobic digestion discussion Question: When should site visits be scheduled?