Model
The model is a public private partnership.
The local government agrees to provide a long term, i.e 20 years, supply contract for all the incoming municipal solid waste (MSW), aka garbage, and construction/demolition (C&D) waste which cannot by recycled and is otherwise buried in a hole emitting greenhouse gases. (GHG’s)
The local government also provides most of the tipping fee it receives from haulers who dump the trash at the landfill. These fees range from $30 to $75 per ton. The amount of the tipping fee which the local government transfers is, at a minimum, the avoidance cost from not operating the landfill. These would include both the operating costs as well as the capital costs. Capital costs avoided can be significant because of compliance with stricter environmental regulations, closing landfill cells, and acquiring new land for more landfill space.
The local government would lease 5 to 7 acres at or near the landfill to site the plant so the project can take advantage of existing infrastructure.
The local government would fast track the permitting process and assist with federal and state environmental requirements and any financial assistance programs.
The private company would finance, build, operate, maintain and own the plant. The capital investment for such plants range from $30 million to $100 million, depending on the size and technology.
A local utility would purchase all the green electricity from the plant under a long term PPA so that there would be both an ‘intake agreement (waste supply contract) and an ‘offtake agreement (PPA) to facilitate the financing of the plant. Several federal assistance programs are available through the DOE and USDA to provide loans or loan guarantees, if necessary. Subsidies and incentives are not required to make these community energy plants viable.
The revenue from the sale of carbon credits and renewable energy credits would be shared between the private company and the local government. Revenue from these two sources should increase significantly with cap and trade legislation and a national renewable portfolio standard.
