Opposition Presentation - CPP MSW WTE

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    MajorpointsofresearchandconcernsaboutCREGCenterProject

    1. Non-standardfaultyprocessandprojectphasinganddevelopment

    2. Bestpraccesinwastemanagementnotbeingpursuedfirst,projectdrivenbywaste-to-energygoal

    3. Proposedthermalgasificaontechnologyandscaleisconsideredemerging,withtoomanyrisksandcoststhatcouldjeopardizeCPPsviability

    4. Polluon,EnvironmentalJusceissuesandneedforstrongerpubliceducaonandinvolvement

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    1. ProcessandprojectdevelopmentA. Theinternalreviewandselec3onofWTEgasifica3ontechnologywasmadewithoutthird-partyexpertanalysisofwasteandenergyop3ons.Project

    ini3atedwithoutintegratedresourceplansforDivisionofWasteorCPP.

    B. Theissueabovewasfurtherexasperatedbyanairpermitapplica3onsubmissionwithoutpriorpublicreview,basedonano-bid,high-risk

    emergingtechnologybeingconsideredatascaleandconfigura3onnotyet

    provencommercially.

    C. BaseduponaflawedWTEevalua3onprocess,anarrowRFIQwasreleasedaMerthetechnologyandvendorwerealreadyselected.Responsesare

    limitedduetoanarrowscopeanddonotaddressthewastemanagement

    componentoftheproject.

    D. GiventhecurrentstateoftheCityslimitedrecyclingprogram,inwhichtheCitystotalrecyclingrateisbelow4%withonly26%coverageofthecityand

    5-yearsofimplementa3onwithnocompos3ngprogram,theCityshouldfirst

    focusonfullyfundingrecyclingcity-wideandcarry-outandimplement

    integratesresourceplansforboththeDivisionofWasteandCPP.

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    ProjectDevelopmentProcess

    1. Assessmentofscope,goals,systems,processes,resources,technologies

    2. Expertanalysis,duediligence,reviewofbestprac3ces,developmentofop3onsandac3ons

    . Seekcommunitysupport,projectcomponentsdevelopedassessedandconfirmedasfeasible

    4. Compe33vebidding,projectpartnerdevelopment,projectcomponentsre-assessed,refined,confirmed

    5. Beginprojectimplementa3on,permitapplica3on,projectdesign,financingdeveloped

    6. Construc3onanagement,opera3ng,safetyregula3ons,phasingofprojectcomponents.

    1. Assessmentofscope,goals,systems,processes,resources,technologies-INCOPLETE[focusedonalterna3veWTE

    technologieswithnowastemanagementassessment]

    4. Compe33vebidding,projectpartnerdevelopment,projectcomponentsre-assessed,refined,confirmed[NarrowRFIQissuedwithlimitedresponsesintendedtoquasi-bidgasifica3ontechnology,nonewcompaniesrespondedforgasifica3ontechnologycomponent.]

    5. Beginprojectimplementa3on,[preliminarydesign]permitapplica3on,-BUT-projectdesign,financing-NOTdeveloped[cost$1.5millioncontractwithsingle-source]

    Standardbasedonindustrybestpracces CREGCenter

    3. Seek community support, projectcomponentsdeveloped,[internalselec3onoftechnologyandsingle-sourcevendorwithreviewbyRNR]assessedandconfirmedasfeasible

    6. Construc3onanagement,opera3ng,safetyregula3ons,phasingofprojectcomponents.

    2. Expert[Internal]analysis,duediligence,reviewof[WTE]bestprac3ces,developmentofop3onsandac3ons

    . seekcommunitysupport[requiredEPAcommentperiod]

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    2. Best practices in waste management not beingpursued first, project driven by waste-to-energy goal

    A. Needforanalysisofwastemanagementbestprac3cesandhowtocosteffec3velyimplementreduc3on,reuseandrecyclingofwaste.

    B. Insufficientanalysisdonetoseeksolu3onsformone3zingandfundingcity-wide,automatedcurbsiderecycling.Costes3matedat$29million.

    C. ZeroWastemeansestablishinggoalsandaplantoinvestininfrastructure,workforce,andlocalstrategiestoreducewasteatsources,re-useand

    recyclepriortoseekinghighercostdisposalsolu3ons.ZeroWasteisthe

    mostefficient,highestjobproducing,sustainable,energy-efficientclimate

    changesolu3ontowastemanagement.

    D. Bestprac3cesintheindustrypointtovariable-ratefeesandotherincen3vesforresiden3alandcommercialwastestreams.

    E. Residentsperceivecurrentflat$8.50feeandotherpolicesaspuni3veNOTE:feesunsetsin201andwillrequireCouncilsre-approval.

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    SolidWasteAssociaonofNorthAmerica(SWANA)

    WastetoEnergyasaPartIntegratedSolidWasteManagement

    Policy-TheuseofwastetoenergytechnologyshouldbeconsistentwiththeUSEPAs

    currentwastemanagementhierarchyandlocalgovernmentintegratedsolidwastemanagementplans,thatincludeexisngandplannedwasteprevenon,wastereducon

    andrecyclingprograms.Permingofwastetoenergyfacili3esshouldbeconsistentwith

    theestablishedlongtermneedsoflocalgovernmentandtheirintegratedsolidwaste

    managementplans

    USEPA-WhatIsIntegratedSolidWasteManagement?

    acomprehensivewasteprevenon,recycling,composng,anddisposalprogram.Aneffec3veISWsystemconsidershowtoprevent,recycle,andmanagesolidwastein

    waysthatmosteffec3velyprotecthumanhealthandtheenvironment

    Donotneglecttoaskforthecommunitysinputindevelopingyourplan,soastoensureaninformedpublicandtoincreasepublicacceptance

    2. Best practices in waste management - continued

    hp://epa.gov/climatechange/wycd/waste/downloads/overview.pdf REF:SWANATECHNICALPOLICYT-8,1/12/2012

    hp://swana.org/Portals/TechnicalPolicies/T-8_WTE_PR.pdf5

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    hp://www.epa.gov/osw/nonhaz/municipal/wte/nonhaz.htm

    hp://green3e.naem.org/tag/waste-management-strategies

    2. Best practices in waste management - continued

    Designedtoshowthemostenvironmentallypreferableop3onsforwastemanagement

    hierarchyplacesemphasisonreducing,

    reusing,andrecyclingthemajorityofwastes.

    [4]Capturingthematerialvaluethroughrecyclingshouldbeconsiderednext.

    [5&6]Combusonorgasificaonwithenergyrecovery,orWTE,istheenvironmentallypreferablerouteformixedsolidwastesthatareneitherrecyclablenorcompostable .

    [7]LandfillingMSWistheleastpreferredop3on.However,communitydecisionsarebasedbothonenvironmentalandeconomicfactors.

    [1]ReducingMSWgenera3onmosteffec3ve

    [2]Reusingmaterialssecondbestmethod.

    [3]Source-separatedyardwaste compostedaerobicallytoproducesoilcondi3oner

    ...mixedfoodandyardwastes,canbeanaerobically

    digestedtogeneratemethaneforenergygenera3onandacompost

    productthatcanprovidesoilamendmentvalue.

    Integrated Waste Management Hierarchy (EPA)

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    3. Proposed gasification technology and scale of project has toomany risks and costs and could jeopardize CPPs viability

    A.Gasifica3ontechnologiesforprocessingSWareconsideredemergingandhavenotbeenprovedatthescalebeingproposed.

    B. Therearecurrentlynocommercial-scale,SWgasifica3onsystemsopera3ngintheUS.Therearefewerthan20inthe

    world,allappeartobeusingmorehomogeneousfeedstocksandnonearedesignedformorethan70to100tonsperday(TPD)

    throughput.ostarerela3velysmall,i.e.,>10TPD.

    C. Cityfundscommiedsofarapproach$2millionwithanother$250,000pendingforhiringconsultanttoreviewresponsestoRequestForInforma3on&Qualifica3onfocusedongasifica3on.

    D.Detailedfinancingop3onshavenotbeenevaluated;likelyuseofhigh-cost,long-termpowercontractfortechnologythatcannot

    beconsideredreliable;costoffacilityisest.at$180-$00million.7

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    Reliability:

    gasificaonsystemshavelimitedMSWoperanghistoryonwhichtorely theydonothave

    sufficientexperiencetodrawconclusionsforreliabilityofoperaon.

    Environmental/Air:

    turbinemanufacturersarereluctanttoguaranteeperformanceonunitsfueledbysyngasfrom

    MSW.

    CostsandRevenueStreams:

    Theonlytechnologieswithdependablees3matesforcapitalandopera3ngcosts,basedonlongexperienceintheU.S.,aretheprovenmass-burn/waterwall,mass-burn/modularandRDF/dedicated

    boilertechnologies.Alloftheothershavecostes3matesthatarespecula3ve,theore3cal,ormarket

    driven.Unlessavendorscostproposalsarebackedbysubstanalguaranteesofperformance,they

    cannotbeconsideredreliable.

    3. Proposedthermalgasificaonandrisksofadopngemergingtechnology - continued

    REF:ee3ngtheFuture:Evalua3ngthePoten3alofWasteProcessingTechnologiestoContributetotheSolidWasteAuthoritysSystem

    SolidWasteAuthorityofPalmBeachCounty,Florida,2009.ByGershman,Brickner&Braon,Inc.

    hp://www.swa.org/pdf/SWAPBC_White_Paper_9-2-09.pdf

    GasificaonFaciliesinoperaonworldwide:

    Sevenplantscurrentlyopera3nginJapan,withatleasttwoofthemfiringSW[185tons/day]Thereare20smallerfacili3esinEuropeandAsia.ostofthemare

    rela3velysmall(>10tons/day),withnonedesignedformorethan70tonsperday

    throughput.

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    Waste-to-EnergyandConversionTechnologiesundertheCommercialicroscopeIncludingProjectsCurrentlyUnderDevelopment

    PresentedviaWasteConversionCongressWestCoast,December6 th,2011hp://www.gbbinc.com/speaker/GershmanWCCWC2011.pdf10

    3. Proposedthermalgasificaonandrisksofadopngemergingtechnology - continued

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    Waste-to-EnergyandConversionTechnologiesundertheCommercialicroscopeIncludingProjectsCurrentlyUnderDevelopment

    PresentedviaWasteConversionCongressWestCoast,December6 th,2011hp://www.gbbinc.com/speaker/GershmanWCCWC2011.pdf

    EconomicFactors

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    3. Proposedthermalgasificaonandrisksofadopngemergingtechnology - continued

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    Waste-to-EnergyandConversionTechnologiesundertheCommercialicroscopeIncludingProjectsCurrentlyUnderDevelopment

    PresentedviaWasteConversionCongressWestCoast,December6 th,2011hp://www.gbbinc.com/speaker/GershmanWCCWC2011.pdf

    Opinion:TrendsfortheFuture

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    3. Proposedthermalgasificaonandrisksofadopngemergingtechnology - continued

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    ReachingGreaterDiversionEconomically

    SWANANorthCarolinaChapterConference2008August27,2008-Alterna3veTechnologiestoLandfillsor:

    TheResurgenceofWaste-To-Energy(WTE)andConversionTechnologies(CT)andDontForgetoreRecyclingToo!

    ByHarveyGershman,Gershman,Brickner&Braon,Inc.hp://www.gbbinc.com/speaker/wte.pdf1

    3. Proposedthermalgasificaonandrisksofadopngemergingtechnology - continued

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    CPPcharacterizaonofmaturityof

    thermalgasificaonMSWprojects: Privatesector,biomasscombuson facility,200tons/dayofMSWandbio-fuels,$210millionproject,NOTE:Landleases3llinprocess,unlikelytobebuiltin2012.Ini3alpermitapplica3onincludedburningpetroleum

    coke,thatfuelsourcehasbeenremovedfromconsidera3on.

    1-2MW,Privatesector,WTEplasmaarcgasificaon,

    25tons/dayMSW.NOTE:demonstra3onplant,nocosts

    availablefromcompany.Privatesector,biomassgasificaonproject,250,000tons

    ofwoodwasteperyear,690tons/day,$225millioncost,iniallyesmatedat$160million.

    NOTE:Regionhashistoryofu3lizingmassburnfacili3es,three

    incineratorprojectsbuiltinthe1980spromotedbytheStateof

    Connec3cut.

    Privatesector,thermalplasmaproject, 668tons/day(600tonsMSW&60tonsres).Note:Originallyplannedfor60W,,000ton/day.Nopredic3onsonwhenitwillbe

    opera3onal,pendingfinancing.

    PrivateSector,275tons/day,with25-yearbio-fuelpurchasefromCityofEdmonton,pre-sortedMSW,

    100,000tonsperyear. NOTE:Resultofseveralyearsofresearchandover6,000hoursoftes3ngandvalida3on,at

    Enerkem'spilotandcommercialdemonstra3onfacili3esinQuebec.

    1. 16.5MW,MSWtoRDF+BiomassfuelSt.Croix,USVirginIsland,ConstruconSpring2012

    1.

    2.

    3.

    4.

    5.

    ActualProjectData:

    2. 20MW,MSWGasificaonPlantOregon,OperaonalOct.2012

    3. 37.5MW,WasteGasificaonPlantPlainfield,Conneccut,OperaonalDec.2013

    4. 22MW,MSWPlasmaGasificaonSt.LucieCountyFL,Operaonal4thQTR2013

    5. 10MGallons,MSWGasificaonEthanolEdmonton,Alberta,Operaonal4 thQTR2012

    SelectMSWtoEnergyProjects

    REF:Publicee3ngPresenta3on1/19/2012(Rev.1/25/2012)

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    3. Proposedthermalgasificaonandrisksofadopngemergingtechnology - continued

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    Citysconsultant-RNRreportedin2009concernoverproposed

    scale&feedstockascomparedtoknownfacilies:

    4.3.2GasificaonTechnologyOverview;4.3.3ReferenceGasificaonFacility-Excerpt

    IntheClevelandWTEProjectReview(page15),PEGstatesthatKinseihasmorethan250systemsinopera3on,

    processingeverythingfromSWtochemicals,oil,hospitalwaste,plas3c,rubber,3resandotherindustrial

    hazardousandnon-hazardouswaste.ostofthesesystemsarequitesmallinsize(-0tons/day).In

    responsetothequesonregardingthethroughputcapacityoftheexisnggasifiers,PEGmenonedthatmostofthefaciliesinJapanhavegasifierswithacapacityof40-100tons/day,considerablylessthanthe

    proposedfacilitys300to600tons/day.

    6.1TechnicalIssue;6.1.2Gasificaon-Excerpt

    Thefollowingkeyissuesarenoted:

    1. TheKinseiGasificaonproposedbyPEGisnotaverywellknowngasificaontechnologyithasnotpreviouslybeenproposedbyanyothertechnologysuppliersinresponsetothemanyRFPs

    thathavebeenissuedbyotherU.S.ciesorcounes.

    2. ostoftheKinseigasifica3onunitsaresmallerinsize.ThedesignandoperaonofagasificaonunitforaheterogeneousmateriallikeMSWwillbechallenging,and,insomecases,thedifferent

    subsystemswillbedifficulttosizeproperlyPEGhasproposedmul3pleunitstoaccommodatethe

    SWthroughputforthisproject.

    REF:ClevelandSWEFeasibilityStudyTechnicalAnalysis-RNRConsul3ng,2009

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    ConcernsregardingcapitalOutlayProjeconsthatvarygreatly:2009RNRConsul3ngStudyusingPrincenton

    EnvironmentalGroups(PEG)Esmatesbasedon

    2,000tons/daythroughput

    2012Esmatesbasedon560tons/day

    throughput,1/19/2012presenta3on

    December2011newsarcle

    cingPeterTeins(PEG)

    esmatewithfinancing:

    hesnegoateda$300millionfinancingpackage

    ifthecitychoosesaKinseiplant.

    TheysteriousisterTien;ThemanwhosoldClevelandonvisionsofprosperityisn'tallheclaimstobe

    byaudeL.Campbell,December7th,2011,hp://www.clevescene.com/cleveland/the-mysterious-mister-3en/Content?oid=2772517

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    ConcernsRegardingCapitalOutlayProjecons&FeedstockThroughputRates 2009RNRStudy:

    Conversiontechnologysuppliers

    withmanyyearsofexperience

    indesignandopera3onofSWEfacili3eses3matethe

    costforanequivalent1,000to

    1,200ton/daySWEfacility

    u3lizingthermalconversionor

    conven3onalmassburntechnologiestobemuchhigher

    thanthecostprovidedbyPEG REF:RNRStudy,2009,6..2GeneralIssues,Table7.CapitalandO&CostsforSWEFacili3es

    [Regardingfeedstock]:PEGassumedthehea3ngvalueofthefeedstock(pellets)at10,000BTU/lbwithamoisturecontentoflessthan10%.Thesefuelpelletsconstuteonlypartofthegasificaonfeedstock.Initslatestsubmial,PEGmen3onedthatmajorhaulerscouldsupplyaddionalhighBTUindustrialandcommercialwastesuch

    asscrapresandautofluffWithoutdetailedcalcula3onsusingrealdatafromanexis3ngfacility,itisdifficulttorely

    onthesenumbers.Thermalconversion,suchasusinggasifica3ontechnologytoprocessSW,isanewandinnova3ve

    technologythatisonlyincommercialopera3onoverseas.PEGsproposedfacilityisintheconceptstage.

    [Note:Researchthusfarshowsnoevidenceofanoperaonalthermalgasificaonwaste-to-energyfacilityof

    comparablescalethatisusingsolelyMSW.Anycomparablesizefacilityinoperaonorbeingplannedappeartouse

    amorehomogeneous(i.e.,woodorrebio-massetc)oranaddedpercentageofhomogeneousfeedstockwith

    higherBTU/lbrangsthatareusedtoincreasetotalfeedstockenergycapacity.

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    ReviewofCitysRequestforInformaon&Qualificaons

    KinseiSangyosresponseprovidesinforma3ononapproximately100opera3ngandcommercialfacili3eswith

    capaci3esofbetween1-60tonsperday.Theynoteatotalof

    260systemsinopera3on.

    Theirreferencetechnologyisa5tonperday,SWtosteam

    facilityinHoengseong-Gun,KoreathatopenedinNovember,

    2005.Addi3onalreferencefacili3esincludethree40,24,and12

    tonsperdayfacili3es,allusingindustrialsolidwastetoashbeinginopera3onssince200,2006and2011respec3vely.

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    SummaryofResponsestoCitysRequestforInformaon&Qualificaons

    Company

    Thermal

    ConversionTechnologyProviders

    Waste

    HandlingEquipmentSuppliers

    ProjectDevelopers

    Consultants FinancialServiceCompanies

    1. Alternative Resources, Inc. X

    2. ARCADIS-Malcolm Pirnie X

    3. Cleveland Thermal X

    4. Compact Cooling Solutions X

    5. DLZ X

    6. Dongara Pellet Plant LP & Remasco X

    7. Envision Waste Services X

    8. Gershman, Brickner & Bratton, Inc. (GBB) X

    9. HDR Engineering, Inc. (HDR) X X X

    10. Indiana Recycling and Renewable Fuels X X X

    11. Kinsei Sangyo X X X

    12. Middough X

    13. Municipal and Financial Services Group X

    14. Ralph Tyler Companies X

    15.SAIC Energy, Environment &Infrastructure, LLC (SAIC)

    X

    16. Wells Fargo Securities X

    17. WSI Management Inc. X X X

    5 3 10 4 3

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    A. Industryexpertswarnaboutopposionbyenvironmentalistandthepublicregardingfirstdemonstranghighrecyclingpercentagesandconcernforemissions.ComingunderEPAregula3onsdoesnteliminate

    theneedforpublicbuy-inearlyonintheprojectsdevelopment.

    Emissionsinclude500lbsoflead,260lbsofmercuryand79tonsof

    par3culateP(F+C)peryear.

    B. Thoughpresentedasacleansourceofenergy,gasifica3onproducesthesamepollutantsasstandardincinerators.Thefacilitywouldbethe

    largestemierofmercury,wouldincreaseleadairemissionsupto

    6%andwouldbeoneofthebiggestregionalsootemiers.All

    incinera3on,includinggasifica3on,wastestheenergyandresourcesin

    municipalsolidwaste.

    C. EnvironmentalJus3ceconcernsincludethosewholiveclosestwillbeimpactedbyemissions;pollutantscanbecarriedlongdistancesandcan

    persistintheenvironmentfordecades;noairmodelingprovidedsince

    requestsmadeinDecember.Commentsclose2/23.

    4. Polluon,EnvironmentalJusceissuesandneedforstrongerpubliceducaonandinvolvement

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    Emission information developed from CPP public information and permit application

    showing the application amounts at 92% use and the Ohio EPAs limits of use at 72%:

    AirModeling:Projectteamhasnotyet

    respondedtorequestsfor

    airmodelingdatathat

    couldbeunderstoodby

    thepublic.Thisdatawas

    requestedinDecember

    2011.Itislikelythis

    informa3onwillnotbe

    madeavailablepriorto

    EPAPublicComment

    periodbeingclosed.This

    informaonwould

    providedetailsof

    emissionlevelsandesmaonsofdirecons

    anddistancestraveled.

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    StateandRegionalPolluonrankings&EmissioninformaonMercuryandParculateMaer

    Ohioranksworstinthecountryfortoxicairpolluon.TheAmericanLungAssocia3onsStateoftheAir2011reportgives

    CuyahogaCountyafailinggradeforozoneand

    parculatepolluonlevels.

    Theeight-countyClevelandmetropolitanareais

    rankedashavingthenaons12thhighestlevelof

    year-roundparculatepolluon.

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