December 11, 2013

Chip Reeves, Bar Harbor Public Works Director MRC Board President 2

 Founded in 1991 to manage Municipal Solid Waste (MSW)  187 member cities and towns 3

 Restructuring PERC – twice (1991 and 1998)  More than $52.7 million returned to member communities  Over $21 million in Tip Fee Stabilization  $2.3 million in Operating Budget Stabilization 4

 Affordable  Long-Term  Environmentally Sound 5

 We’re planning ahead and have exciting opportunities  We have the right team in place 6

Greg Lounder, MRC Executive Director 7

 PERC has an excellent service record  PERC has excellent environmental performance  PERC is too large to operate at capacity in this region 8

 PERC must adapt to compete economically after 2018  "Adapt" means reduce MSW management costs or enhance project revenues through new technology or otherwise  PERC extension effort is ongoing, but an alternative is needed 9

 MRC & members need to make their own future  MRC & members must prepare to control their own fate  MRC & members must prepare to control an alternative integrated facility(ies)  Full preparation includes potential new facility development 10

 Find and get control of a site  Start the permitting process  Shop for the most appropriate technology and vendor 11

 Following member action and support over the next days  By February 1, 2014, MRC will seek DEP approval for a public benefit determination (PBD) for an integrated MSW recycling/processing and residuals disposal facility 12

George Aronson, MRC Technical Consultant 13

 Reduce waste generation  Recover materials for recycling/ composting  Recover energy from waste  Manage residuals in a secure landfill 14

1.Get the size and scale right a)Provide incentives to reduce and divert MSW (avoid GAT penalties) b)Serve Maine MSW without relying on out-of- state MSW 2.Create high-value products with stable markets 3.Factor in sorting, collection and haul costs 4.Use technologies that address challenges 15

5.Get technology to match MSW management needs and product markets 6.Business development approach to match MRC capabilities and risk profile 16

Waste Type Technology Recyclable materialsMixed-MSW sorting; quality control Organic materialsComposting; anaerobic digestion (AD) with further processing Combustible materialsMixed MSW sorting; remove contaminants & densify 17

1.Public vs. private ownership 2.Appetite for cutting-edge technology 3.Willingness to change collection & delivery formats for recycled materials 4.Acceptable range of MSW tip fees 5.Appetite for municipal delivery guarantees (gats) vs. GO debt 18

YearEvent 2014 Confirm technology and business concepts Secure municipal support Initiate permitting process 2015 Procure vendors, reach agreements Continue permitting process 19

YearEvent 2016 Secure charter municipality approvals Secure financing Continue permitting process 2017 Complete permitting process Complete development & begin construction 2018 Begin commercial operation 20

Sophie Wilson, Orono Town Manager MRC Treasurer 21

 Be an ambassador back to your community for MRC  Request local approval of the resolve you will find on your chair  We would like to get this done in 45 days to show our unity 22

1.Support our planning effort 2.Support use of a reserve established for this purpose 3.Enhance our strength in numbers 23

 Collaboratively among communities  Focused on self-reliance and controlling our own future  Driven by our mission 24

Any Questions? Greg Lounder – Executive Director Tel: