Small-Scale Municipal Solid Waste Energy Recovery Systems

This volume is designed to give local government elected officials and their staff the background information they need on the state of the art in small­ scale municipal waste-to-energy project development. It will, of course, be of interest to many others in the field. The small-scale segment of the municipal waste energy recovery industry has grown and changed in many ways in recent years. With increasingly stringent environmental regulations pushing up the costs of landfilling, as well as today's higher prices for oil and natural gas, the economics of small-scale systems are attractive to smaller communities or counties which might at one time only have considered joining a multijurisdictional large-scale project. The difficulties involved in devel­ oping a project that envelops numerous governmental entities are discouraging, and a small, local project may be more readily achievable. Gershman, Brickner & Bratton, Inc. hopes this book will be of assistance to those who are considering such a project, providing guidance and encouragement, as well as practical information on technologies, eco­ nomics, energy markets, financing, environmental issues, and the pitfalls of project development.

1. Introduction.- 2. Market Development of Energy Recovery.- Historical Overview.- Factors Shaping the Market.- Conventional Fossil Fuel and Electricity Costs.- Disposal Costs.- Landfill Practices.- Haul Distance.- Development Authorities.- 3. Solid Waste Characteristics.- Quantity.- Composition.- Energy Content.- 4. Markets.- Potential Markets.- Thermal Energy.- Steam.- Hot Water.- Hot Air.- Supply/Demand Considerations.- Electricity.- Industrial Energy Market Summary.- Cogeneration.- Refuse-Derived Fuel and Materials Recovery.- Refuse-Derived Fuel.- Ferrous Metals.- Glass.- Aluminum.- Nonferrous Metals.- Wastepaper.- Market Development.- Identifying a Market.- Commitment Stage.- Contract Stage.- Conclusion.- 5. Small-Scale Technology.- Mass Burning.- Direct Combustion.- Modular Incineration.- Problems.- Refuse-Derived Fuel (RDF).- RDF Processing.- Refuse-Derived Fuel Co-fired with Coal.- Refuse-Derived Fuel Dedicated Boiler.- Background.- Current Status.- Future Developments.- Vendors.- Problems.- 6. Small-Scale System Economics.- The Base Case—Conventional Waste Management Systems.- Transportation Network.- Existing Refuse Collection System.- Analysis Parameters.- Calculation of Haul Distances.- Residue Disposal.- Additional Considerations.- Transportation Cost Analysis.- Transportation System Cost Estimation Procedure.- Waste-to-Energy Project Costs.- Capital Costs.- Operations and Maintenance Costs.- Waste-to-Energy Project Economics.- Revenues.- Life Cycle Costs.- Economics of Cogeneration Systems.- 7. Financing Alternatives for Small-Scale Solid Waste-to-Energy Projects.- Types of Tax-Exempt Financing Available to Waste-to-Energy Facilities.- General Obligation Bond Financing.- Municipal Revenue Bonds.- Industrial Development Revenue Bonds.- Leveraged Leasing.- Creative Financing Techniques.- Deferred Equity.- Step Financing (Deferred Principal Repayment).- Variable Rate Financing (Floating Rate Securities).- Variable Rate Demand Bonds.- Adjustable Rate Bonds.- Daily Adjustable Tax-Exempt Securities.- Federal Tax Benefits of Private Ownership.- Accelerated Cost Recovery System Depreciation.- Investment Tax Credits.- Interest Deductions.- Typical Steps Necessary to Bring a Bond Issue to Market.- Critical Project Elements Evaluated by the Investment Banking Community to Determine the Financeability of a Waste-to-Energy Project.- Credit Backing.- Demonstrated Expertise of Project Contractors and/or Engineers.- Independent Feasibility Study.- Back-up Landfill or Other Facility Capacity.- Revenue Sufficiency.- Reserves.- Adequate Sources of Capital.- Continuous Supply of Solid Waste.- Long-Term Market(s) for Energy.- Insurance.- Demonstrated Compliance with Laws and Regulations.- Favorable Rating by Recognized Rating Agencies.- 8. Environmental Issues.- Sources of Air Pollutants.- Types of Air Pollutants.- Particulates.- Nitrogen Oxides (NOx).- Sulfur Oxide (SOx).- Carbon Monoxide (CO).- Total Hydrocarbons (THC).- Lead (Pb).- Hydrogen Chloride (HCl) and Hydrogen Fluoride (HF).- Beryllium (Be) and Mercury (Hg).- Dioxins.- Federal Air Pollution Control Laws and Regulations.- National Ambient Air Quality Standards (NAAQS).- Prevention of Significant Deterioration (PSD).- New Source Performance Standards (NSPS).- National Emission Standards for Hazardous Air Pollutants (NESHAP).- Air Pollution Control Equipment.- Electrostatic Precipitators.- Fabric Filters.- Electrostatic Granular Filter.- Scrubbers.- Sources and Control of Wastewater Discharge.- Federal Laws and Regulations.- National Pollutant Discharge Elimination System (NPDES).- National Pretreatment Standards.- Residue and Ash.- Resource Conservation and Recovery Act.- State Environmental Standards.- Summary.- 9. Project Development.- Past Examples.- Stages of a Project.- Project Building Blocks.- Institutional Setting.- Roles That Can Be Taken.- Procurement Alternatives and Risks.- Procurement Documentation.- Negotiations.- Public Involvement.- 10. Three Small-Scale Waste-to-Energy System Case Studies.- Auburn, Maine.- Background.- Technology.- Markets.- Economics.- Project Evaluation.- Madison, Wisconsin.- Background.- Technology.- Markets.- Economics.- 1984 Project Summary.- Project Evaluation.- Pittsfield, Massachusetts.- Background.- Markets.- Technology.- Economics.- Project Evaluation.