The economic development and landfill disposal benefits of waste-to-energy systems

1. Jeremy O’Brien, P.E. Director of Applied Research Solid Waste Association of North America The economic development and landfill disposal benefits of waste-to-energy systems

2. SWANA Applied Research Foundation • Founded in 2001 • 35 Local Government and Corporate Subscribers • Conducts applied research on topics submitted by and voted on by Subscribers • Four Research Groups – WTE, Disposal, Recycling and Collection

3. SWANA Applied Research Foundation – FY2012 WTE Group Subscribers

4. ARF WTE Research

5. Today’s Topics • The Economic Development Benefits of Waste-to-Energy Systems • The Landfill Disposal Benefits of WTE Systems Covanta Burnaby Renewable Energy, Inc.Burnaby, British Columbia (BC)

6. WTE Systems and Economic Development • The economic development benefits of WTE systems are local, proven and significant • These benefits need to be documented and communicated to: • local elected officials • city and county managers, and • chambers of commerce.

7. MSW Management and Economic Development • Proper MSW management is needed by every community for: • Public health and sanitation • Community aesthetics • Economic development • To spur economic development, MSW systems must be: • Cost-effective • Reliable • Sustainable over the long term Naples, Italy – November 2010

8. Economic Development Benefits of WTE Systems • Long-term savings in waste disposal costs • Retention of disposal dollars in the local economy • Creation of high quality jobs that cannot be outsourced

9. Long-Term Savings in Waste Disposal Costs • 2009 average U.S. tipping fees (Biocycle Magazine) • Landfills - $44.09 per ton • WTE Facilities - $67.93 per ton • WTE costs can be lower than landfills over the long run due to: • Repayment of facility bonds before end of service life. • Control over capital and operating costs through long-term contracts.

10. Over the long run, WTE costs are lower • Repayment of facility bonds before end of service life. • Average age of U.S. Facilities – 23 years • Many have paid off - or will soon pay off - original bond financing. • 40-year or more facility life appears likely. • Control over capital and operating costs • Annualized capital costs are fixed • Operating costs controlled through contract. • Not true for contracted landfill disposal.

11. Lancaster County Resource Recovery Facility • 1,200 TPD (36 MW) mass-burn facility • Began operations in 1991 • Financed by $135.6 million in tax-exempt revenue bonds • Issued in 1990 • Will be retired in 2015

12. Long-Term Savings in Waste Disposal Costs • Analysis of Lancaster County RRF Costs • Based on historical performance and cost data for 2004-2010 • Estimated costs for waste disposal in remote regional landfill (2011$) • Modern Landfill (Republic) – 22 miles from Lancaster • Gate rate - $58 per ton. • Assumed transfer cost - $3.50 per ton • Assumed haul costs - $1.50 per truck mile/20 ton payload

13. Long-Term Savings in Waste Disposal Costs

14. Long-Term Savings in Waste Disposal Costs

15. Long-Term Savings in Waste Disposal Costs (2011$) • LCSWMA RRF Costs • $17 million per year • $673 million (40 years) • Remote landfill disposal Costs • $21 million per year • $952 million (40 years) • Savings • $279 Million

16. Retention of Disposal Dollars in the Local Economy

17. Creation of High-Paying Jobs That Can’t Be Outsourced

18. WTE and Economic Development in Clark County, Idaho • Clark County, ID • Closure of Idaho Potato Plant • Loss of 60% of private sector employment • Clark County WTE Facility • 250 tpd gasification facility • Creation of 35 jobs • Salary range of $42k-$85k • Total annual employee compensation - $1.5 million. • Total economic development benefits over 25 years- $976 million.

19. WTE and Economic Development in Clark County, Idaho • "The EIRSWD and its Commissioners have an extraordinary vision for a 21st Century economic development engine fueled by our Waste-to-Energy Technology." EBR_EBdaily. "Waste-to-Energy Plant Coming to Idaho.” Energy Business Daily, February 21, 2011.

20. The Landfill Disposal Benefits of WTE Systems • WTE landfill disposal rates are low • A significant portion of the landfilled waste has been stabilized.

21. The Landfill Disposal Index • "Waste management performance should be based on "tons landfilled" per capita (i.e. the fewer tons landfilled per capita the more sustainable the solid waste system.)“ Dr. Nicholas Themilis, Columbia University

22. MSW-LDI’s for WTE Communities1

23. Per Capita Disposal Rates for Selected Zero Waste Communities

24. Using the MSW Landfill Disposal Index

25. WTE-Based SWM System – Other Environmental Benefits • Waste Stabilization • Metals Recycling From WTE Ash • Avoidance of Long-Haul Transport • Reduced Fuel Usage • Reduced Accidental Risks • Reduced Road Wear and Tear • Displacement of Non-Renewable Fossil Fuels

26. In summary • The local economic development benefits of WTE systems are proven and significant. • The landfill disposal rates of WTE systems are very low on a per-capita basis. • A significant port (40%) of the landfilled waste has been stabilized.

27. Jeremy O’Brien, P.E. Director of Applied Research Solid Waste Association of North America The economic development benefits of waste-to-energy systems