1. SESSION: GREEN WASTE AND STANDARDS June 18, 2014, 4:00 pm. Track B THE STATE OF THE INDUSTRY FOR WASTE RECOVERY TECHNOLOGIES: A LOOK AT RELEVANT TECHNOLOGIES, THEIR SCALES AND FEASIBILITY FOR LARGE TRANSIT, TURNPIKE, AND HIGHWAYS SYSTEM Aaron Toneys, Associate, Good Company PROACTIVE ENVIRONMENTAL MANAGEMENT SYSTEM Mike Yesconis, Environmental Information Technology, Co-author S. Babusukumar. Weston LANDFILL REUSE ASTM STANDARD Marty Rowland, PhD P.E., Third Leg Consultants & Amanda Ludlow, Principal Scientist, Roux Associates

2. SESSION: GREEN WASTE AND STANDARDS The State of The Industry for Waste Recovery Technologies: A Look at Relevant Technologies, Their Scales and Feasibility for Large Transit, Turnpike, and Highways System Aaron Toneys. Associate, Good Company Policy makers and waste management professionals are beginning to recognize the nexus between landfilled solid waste and our need for domestically produced, low-carbon vehicle fuels. Pre and post-consumer food waste and difficult-to-recycle plastics are significant waste streams with potential to reduce the burden on landfills, capture the highest and best use for materials, reduce greenhouse gas emissions and provide new sources of revenue through integrated waste management. This presentation will introduce a 101 on waste recovery technologies and their potential to reduce costs and/or generate revenue and improve local and global environmental conditions. The technology focus will be on vehicle fuel production through AD and plastics-to-oil technologies. The presentation will conclude with an introduction to the significant operating and market variables to consider when assessing the feasibility of these technologies for a transportation agency. This discussion will be supported by with examples from various materials recovery feasibility studies that Aaron Toneys and his research team has performed for domestic and international agencies and materials management companies. All participants will leave with a one-page checklist for feasibility assessment for participating in or operating these technologies. Aaron Toneys, Associate of Good Company, provides clients with technical research, triple bottom line assessments, tool development, and greenhouse gas inventories. Mr. Toneys focuses on alternative fuels and the materials and energy recovery industries. His work has included technology and system feasibility studies for anaerobic digestion, plastics-to-oil pyrolysis and Fischer– Tropsch diesel. He is currently serving on workgroups to address life-cycle materials management, including Oregon DEQ’s Materials Management Workgroup to address goals and measures and EPA’s West Coast Climate & Materials Management Forum to develop a government purchasing toolkit.

3. 3 MAKING SUSTAINABILITY WORK Good Company 65 Centennial Loop, Suite B Eugene, Oregon 97401 www.goodcompany.com phone 541.341.4663 fax 541.341.6412 6/9/2015 State of the Industry for Waste Recovery Technologies Anaerobic Digestion and Plastic-to-Crude Oil Presented by Aaron Toneys Associate MAKING SUSTAINABILITY WORK Good Company 65 Centennial Loop, Suite B Eugene, Oregon 97401 www.goodcompany.com phone 541.341.4663 fax 541.341.6412

4. 4 Overview Purpose: Discuss the highest and best use for organics and difficult to recycle plastics Technology 101  Anaerobic digestion of organic materials  Plastics-to-crude oil pyrolysis Variables to assess feasibility Potential for fuel production

5. 5 Our Firm, Good Company Sustainability research and consulting firm Mission-driven, for-profit

6. 6 Highest and Best Use Hierarchy (revised)

7. 7 What is Anaerobic Digestion (AD)? Process: breaks down waste organic materials without oxygen that can produce energy, compost and environmental credits Benefits: produces renewable energy, compost and environmental commodities (RECs, RINs, offsets); waste feedstock; landfill diversion; GHG reduction Risks: feedstock sourcing, air and water emissions, permitting,logistical issues Transportation-related uses: vehicle fuel to displace diesel costs; source of compost for operations; treatment method for organic wastes (e.g., mowed, animal moralities)

8. 8 What is Anaerobic Digestion (AD)?

9. 9 GHG Comparison of Organics Disposal Source: Good Company (2011). Managing Organics to Increase Margins and Carbon Benefits. Research presented at BioCycle 2011 conference in San Diego, CA.

10. 10 Methane Yield, by Feedstock Type Source: This graphic was created based on Steppen, et al. Feedstocks for Anaerobic Digestion.

11. 11 Value of AD Products, by Energy Use Environmental Commodities Energy Source: Good Company (2011). Southern Oregon Biogas Feasibility Study. http://www.jswcd.org/Files/Biogas_Plant_Feasibility_Study-Full_Report.pdf http://www.jswcd.org/Files/Biogas_Plant_Feasibility_Study-Full_Report.pdf

12. 12 Vehicle Fuel Cost Comparison Source: Tetra Tech and Good Company (2011). Tillamook County Bioenergy Feasibility Study. http://www.co.tillamook.or.us/gov/solidwaste/(1)Documents/TillamookBioenergyFSFinalReport(03-12).pdf

13. 13 AD Feasibility Considerations Feedstock quantity, composition and seasonality Tip fees: >$50 / ton Energy prices: Displacing owned vehicle fuel in general leads to greatest value. Environmental commodity prices (REC, RIN, offset): RINs have offered greatest value in the last few years. Beware of variability due to new markets and policy change. Facility Costs  Construction: ~$1.5 million (5k tons/year facility) - ~$40 million (125k ton / year facility)  Operations and Maintenance: $20 - $100 / short ton  Grant opportunities Facility Location: proximity to feedstock and markets  Bulk compost: <50 miles from facility Existing waste contracts for you and partners

14. 14 What is Plastics-to-Crude Oil Pyrolysis? Process: Anaerobic thermal conversion of difficult to recycle plastics into synthetic crude oil Benefits: domestic fuel source, can be lower carbon, recovers storable energy, reduces landfilling, relative environmental performance will improve over time Risks: over-sized facility, highly contaminated feedstocks, and permitting uncertainty. Transportation-related uses: create value from plastic roadside waste that can’t be recycled, roadside and station waste, asphalt producers

15. 15 Plastics-to-Crude Oil Pyrolysis Feasibility State-level regulations for conversion technologies Feedstock  Plastic feedstock that are NOT otherwise recyclable  Technology Capacity: 100 tons / year - 17,000 tons / year  Composition: More LDPE and HDPE and less PET and PVC for most efficient, highest-yield conversion Production: ~80,000 barrels 17,000 ton / year facility Co-locate facility with feedstock source or refinery Crude oil price threshold: >$85 / barrel Costs  Construction: $15 - $20 million (50 tons / day)  Operations and Maintenance: ~$175 - $250 / ton of throughput ~1/3 of O&M = Balance of system

16. 16 AD and Pyrolysis Potential vs. U.S. Use

17. 17 AD and Pyrolysis Potential vs. RFS

18. 18 Thank you Feel free to contact me: Aaron Toneys, Associate 541.341.GOOD (4663) x218 associate@goodcompany.com

19. 19 Scope of Services MEASURE Product and Service Assessments Life-Cycle Assessment Enterprise Performance Assessment Greenhouse Gas Inventory Feasibility Studies and Financial Modeling Tool Development MANAGE Decision Support Climate Adaptation and Mitigation Business Plans Sustainability Plans and Management Systems Education and Training Venture Capital MARKET Market Research and Positioning Sustainability Reporting and Carbon Disclosure Business and Market Development Public Engagement and Education

20. 20 Pyrolysis compared to Incineration

21. 21 Carbon-Intensity of Pyrolysis