6.1. SR 04-09-2012 - Laserfiche WebLink

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GREAT RIVER. E! ER~Y~ A IMPACT OF DELAYED ENFORCEMENT OF MN STATUTES, 473.848 The delay could mean the loss of 100 jobs and 30 megawatts of controllable baseload renewable energy. Further study is not necessary. MN Statutes, section 473.848 requires metropolitan area waste haulers to bring mixed municipal solid waste (MSW) to a resource recovery facility before sending it to a landfill. Implementing the 2007 law can be accomplished with simple communication tools for haulers, landfills and resource recovery companies. Waste flow forecasts, email updates, websites, hauler contracts and other tools can be used to ensure that enforcement is conducted fairly, reasonably, efficiently and with minimal MPCA resources. An implementation plan also could include input from a roundtable discussion between haulers, landfills and processing companies. Resource recovery has the potential to compete with landfilling now and into the future. Great River Energy's goal is to have our tipping fees at market (i.e., landfill) prices by 2016. We have stable pricing for long-term hauler contracts through 2024. We have made significant improvements to our resource recovery project. We have already significantly reduced tipping fees by recycling more and producing higher-value recyclables. We can continue to operate acost-effective project and possibly expand our separation equipment to recover different types of materials. For instance, plastic recovery will increase recycling in the metro area and provide a revenue source. The cost gap between resource recovery and landfilling is getting smaller and will continue to shrink. Even with significant efficiency improvements, Great River Energy's Elk River Resource Recovery Project is unable to produce competitively priced electricity at less than full capacity. This valuable resource recovery option may not be available if the Legislature delays enforcement of MN Statutes, section 473.848. This would mean the loss of 100 highly skilled, good-paying jobs and 30 MW of controllable, baseload renewable energy. There is enough waste in the metro area to support an integrated solid waste management system. Great River Energy's resource recovery facility needs an additional 100,000 tons of MSW per year to operate at capacity. Currently, more than 2 million tons of non-recycled MSW is generated in the metropolitan area each year. About 1 million tons of MSW is sent to landfills annually. After the state's resource recovery facilities are at capacity, landfills will receive the remaining material. If resource recovery facilities close, haulers will have no option other than disposal at monopoly landfills. In this case, Minnesota will go back to a time when the majority of its waste was managed at the very bottom of the solid waste management hierarchy and with a marketplace void of competition. Enforcing MN Statutes, section 473.848 will prolong the life of metro area landfills, ensuring safe and effective waste management for years to come, and delay the need to site, permit and construct a new metro area landfill. Efforts to site and construct landfills in or near the metro area have been extremely challenging. Costs associated with implementing MN Statutes, section 473.848 are manageable and will amount to only pennies for each household. The consumers' cost to dispose of waste is approximately 80 percent collection and 20 percent disposal. As a result, the additional $20/ton in tipping fees to send MSW to recovery facilities will have a minimal impact on consumers. Contact: Stacey Fujii, Great River Energy, 612-309-5404, sfujii@grenergy.com March 5, 2012 C,reat Ricer Ener~~ • 7'?3QQ EIm Creek Boulevard • Maple Crove, MN 55369-4718 • 7b3-445-5000