MIRA Update & Redevelopment Initiative for Solid Waste Management
The project involves assessing MIRA's financial and facility conditions, challenges faced in CT's solid waste management policy, along with a redevelopment initiative for sustainable waste disposal. Key aspects include financial reports, facility constraints, policy goals, and the planned redevelopment partnership aiming for improved waste infrastructure and reliability.
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MIRA Update to the Towns 1. Project Condition Report 2. Redevelopment Initiative 3. Challenges 4. Potential Paths to Success 5. The Outlook for Solid Waste in CT
MIRA Financial Condition Report MIRA Business Status 51 Municipalities under contract through 2017 Additional waste from ~20 non contracting towns Electric Power sales revenue is lower ($0.03/kwh vs $0.12/kwh historically) FY 2020 $83/ton MSW tipping fee $0/ton recycling fee o Actual costs are $104/ton o Non disposal fee revenue subsidizing tipping fee o Recycling costs will increase in 18 months (Tip fee will remain $0/ton) December 10 2019 2
MIRA Facility Condition Report MIRA facilities: Trash to energy Facility 720,000 tons/year o Reliability/Capacity constrained Recycling Processing MRF: 75,000 tons/year, Major capital renovation required. Jet Peaking Facility: 160 MW Secures in 2022 (minimal salvage value). Transfer stations: Modest investment required. o Watertown, Essex, Torrington, Ellington (standby) Trash to Energy Facility suffering poor availability and capacity utilization due to insufficient capital renewal, replacement and deferred maintenance. Major capital renovation required. December 10 2019 3
Project Challenges CT Solid Waste Management policy o Reduce , Reuse, Recycle, Recover: Provides for Trash to Energy as preferred method of Disposal over Landfills. o State self sufficiency in waste disposal (no dependence on other states) o Certification of Need: No excess capacity to be developed o Environmental Justice prioritized December 10 2019 4
MIRA Redevelopment Initiative Multi year DEEP RFP process selected SACYR-ROONEY (SRRT) MIRA Negotiated Non-Binding Term Sheet Comprehensive Development Agreement by November 2020 o Experienced Intl. Developer partnered with U.S. Construction Firm o Renovate and operate Trash to Energy facility and in future, if viable, build and operate additional diversion/recycling infrastructure. 30 year term $4 mm PILOT to Hartford Utilization of existing infrastructure $330 mm Capital Investment (By MIRA), diversion facility investment by SRRT Assured reliability and 85% capacity for 30 years FIRM Tipping fee subject only to COLA and Change in Law adjustments Fees: $145/ton MSW $0/ton recycling, Uniform Municipal Pricing December 10 2019 5
Project Challenges cont Municipal Interests in Solid Waste Disposal (Contractual & Statutory) o Publicly owned, Net cost of operation fee structure, Non Profit o Uniform disposal fee (same fee to all participating Towns, at transfer stations and plant) o Equitable redistribution of surplus project revenues (refunding of fee overpayments) o No disposal fee for single stream recycling / potential recycling rebate o Reliability-capability, assurance of service o Public supervision and control, utilization of Private sector contractors o Eligibility for enforceable flow control of private hauler waste o Competitive Cost December 10 2019 6
Regional Disposal Market Southbridge, Mass. 300,000 TPY Chicopee, Mass. 365,000 TPY Millbury, Mass. 480,000 TPY Hartford 720,000 TPY Bristol 220,000 TPY New York, New Jersey, points south and west >1,000,000 TPY Lisbon 180,000 TPY Preston 230,000 TPY Wallingford TS 140,000 TPY Bridgeport 760,000 TPY December 10 2019 7
Town Update and Project Status Truck and Train Destinations: Mega Landfills December 10 2019 8
Project Challenges Market Options, Relative Costs and Prices: o Costs and prices for various disposal options depend upon many variables including : distance, fuel price, road taxes, state DOT regs and weight limits, rail access, landfill fees, taxes, energy price, and more. o Historically MIRA has established a relative CEILING on state Disposal fee prices o The future market for disposal will likely be limited by the cost of transport to western and southern mega landfills The cost for a firm commitment of waste disposal capacity, transported to a EPA certified, Subtitle D landfill via truck or Train FOB Central CT is estimated to be $85 to $95/ton (2023) December 10 2019 9
Potential Paths to Success To be competitive at $95/ton tipping fee the Project requires additional revenue. o General Obligation Bond for the renovation and refurbishment of the Publicly owned facility o Power Purchase agreement to provide electric revenue sufficient to maintain operations ($0.11/kwh vs the wholesale price of $0.04/kwh). o Creation of renewable energy credits (RECs) applicable to publicly owned, non profit Trash to Renewable energy facilities serving municipalities (similar to present solar and wind RECs). o Statewide law and regulation restricting or taxing export of waste from Connecticut. (allows for instituting sufficient tipping fees, $145/ton) December 10 2019 10
The Outlook for Solid Waste In CT Existing 4 Private facilities will continue to operate albeit with poor business performance for the owners. Recycling Markets will recover slowly and settle at a value insufficient to drive economic recycling expansions. Disposal prices in CT will rise to the cost of Export by 2022 (~$90-95/ton) but certain areas will enjoy/suffer significant differentials based on location, other (dis)advantage. South Meadows Publicly owned facility will: o Be renovated and operating for another 30 years ,or o Be shut down and 1/3 of the state s waste will be exported via truck or rail. December 10 2019 11
MIRA Update to the Towns Thank You Questions: Tom Kirk MIRA Tkirk@CTMIRA.Org
MIRA Facility condition report December 10 2019 13
