1 MWMA Annual Meeting March 5, 2001 Shelley Cohen Landfill Methane Outreach Program Discover the Power Potential of Landfill Gas

2 Presentation Summary F What is the LMOP F What is Landfill Gas? F How can Landfill Gas (LFG) be Used? F Why is the EPA is promoting LFG utilization F State of the Industry F What Does the Future Hold: Issues and incentives driving the Landfill Gas Industry F How Can the LMOP Help

3 What is the LMOP? F Voluntary public/private outreach program F Mission: Create alliances between States, energy users, communities, and the LFG industry to help them overcome barriers to project development. F Works hand-in-hand with regulations to ensure low-cost compliance F Provides a range of products and services to facilitate project development

4 Why is EPA Promoting Landfill Gas Utilization? F Methane is a potent greenhouse gas F There are many cost effective options for reducing and controlling emissions F Helps offset cost of compliance with NSPS/EG F Other benefits — Improves landfill management — Reduces local air pollution — Reduces odors — Creates jobs — Improves economic development near landfills

5 F Tangible community environmental initiative F Helps meet Utility Climate Challenge goals F Reductions may be reported under 1605(b) F Enhances public relations internally and externally F Lowest cost renewable resource on a levelized kWh basis on a levelized kWh basis Why is EPA Promoting Landfill Gas Utilization?

6 What is Landfill Gas?  Landfill Gas (LFG) is created when waste in a landfill decomposes under anaerobic -- or oxygen free -- conditions  LFG is approximately: — 50% methane — 47% carbon dioxide — 3% air toxins F LFG has the heat value of medium BTU fuel F Landfills are the largest human made methane source

7 How Can Landfill Gas (LFG) be used? F Landfill gas can be used a variety of ways: — boiler fuel — electricity — leachate evaporation — niche applications: to heat a greenhouse, vehicle fuel, upgrade to pipeline quality F LFG is the only energy source that, when used, actually removes pollution from the air

8 Direct Gas Sales F Gas pumped to nearby customer for use in boiler F 100+ operational projects F Pipelines miles F Easy, proven technology F minimal processing requirements F cost effective — $1.50 to 3.50 per MMBtu q Pipeline length q Collection system in- place Cleaver Brooks 20,000 lb/hr Boiler

9 Electrical Generation F Over 200 projects F Electricity sold to utility, nearby customer, or on-site F 869 MW on-line F Size kW - 50 MW F Tend to have high avoided costs F Utilities can be difficult to deal with F $1,000-$1,500 per KW (capital costs) Caterpillar kW genset

10 Combustion Gas Turbine Solar 3 MW Gas Turbine Milwaukee, WI

11 Steam Turbine 50 MW Steam Turbine Whittier, CA

12 Pipeline Quality Gas Upgrades F Inject into natural gas pipeline F 14 projects on-line F Cost effective at larger landfills (>4 mill cf/day landfill gas) F Beneficial in areas where natural gas prices are high F High capital costs due to processing requirements to remove nitrogen, other constituents F Strict quality specifications F $3.60 to $4.15 per MMBtu 10 MMcfd Selexol Plant, Fresh Kills, NY

13 Fuel Cells  Chemically convert gas to electricity  Demonstration phase  High efficiency  Minimal emissions  High cost  Limited track record of performance  Approximately $3,000 per kW Northeast Utilities 200 kW Fuel Cell

14 Microturbines F A high speed turbo-charged generator that produces stationary power F Available in sizes ranging between 25kW to 75 kW. F Low emissions F Multiple fuel capacity F Light weight/small size F Does not require pretreatment of the fuel F Lower maintenance costs ($.01 per KWhr) F Limited track record of performance F $700 to $1200 per kW F Cost is expected to reduce to half in the next five years Allied Signal Parallon 75

15 Vehicle Fuel F Compressed landfill gas (CNG) F Liquified landfill gas (LNG) - CryoFuels® F Early stages of development F LNG/CNG price lower than diesel fuel cost F Reduce use of fossil fuels F Reduce local ozone pollution F Small percentage of alternative-fuel vehicles F Limited track record of performance F Retrofit = $3,500 to $4,000 per vehicle F Fueling station = $1,000,000  Fuel price = $.48 to $1.26 per gallon

16 Niche Alternatives F Great application for smaller landfills F OTHERS F Leachate Treatment F Produce high purity carbon dioxide Greenhouse

17 Summary of Technology Applications F Selection of technology is site specific F Technologies exist for low and high volumes of LFG production F Many proven/cost effective ways to utilize LFG

18 State of the Industry F Landfill gas to energy project development has been around in the US since the 1970s. F There are over 318 successful landfill gas to energy projects in the US. — 318 Operational Projects — 56 Projects Under Construction — 118 Planned Projects (approximately)

19 State of the Industry

20 Federal Legislation Driving the LFG Industry F New Source Performance Standards and Emission Guidelines (NSPS/EG) — LFs over 2.50 Million Tons of WIP — LFs emitting over 50 megagrams of Non-Methane Organic Compounds (NMOCs) F Utility Deregulation Legislation (under debate) — Consumers choose power provider, and power type — Consumers willing to pay more for renewables — LFG acknowledged by the Federal Government as renewable — Legislation may require power providers include renewable energy as part of their power offerings

21 Federal Incentives Driving the LFG Industry F Tax Credit — Section 29: cents per kilowatt hour. Expired ‘98 — Section 45: proposed legislation to provide a tax credit for certain renewables, including landfill gas. F Subsidy — Renewable Energy Production Incentive (REPI): 1.5 cents per kilowatt hour F Federal Grants — LFG qualifies for many Federal grants.  Other incentives such as grants and loans are available at the state and local levels. — Many states want to address local air quality concerns while promoting sustainable community development.

22 Incentives Continued — Executive Order: requires Fed. facilities to examine ways to increase energy efficiency and use renewable energy — Emission Reductions Reporting for Credits: Potential legislation to provide credits for voluntarily efforts to reduced ghg emissions. Credits may have $ value. — Communities are interested in ways to clean the environment, using LFG can help communities reach pollution reduction goals. Case Study: EPA research facility in CA just signed an agreement with SMUD to purchase 100% renewable energy -- 40% is landfill gas

23 EPA Project Assistance - Technical & Networking Support F Technical information and support — E-PLUS evaluation software — Project Development Handbook — Template of landfill profiles — Economic incentives information F LFGE networking and information exchange — Workshops — Industry Ally expert list — Ally Update fax-out — LMOP Report

24 EPA Project Assistance - Community Relations Support F Public recognition and communications support — Promotional toolkit — Trade press PSA’s — Event support — Communications support F Marketing information — Green power information — Community education materials F Pilot green pricing program support

25 Interested? What Next? F Contact LMOP Territory Manager F Investigate candidate landfills in area ~ EPA can help! F Create partnerships and gather support F Think about project options and opportunities — Think about projects ‘of scale’ — Think out of the box — Think sustainably: consider the economic, environmental, and community benefits F JOIN THE LMOP AS AN ALLY OR PARTNER!

26 Becoming an LMOP Ally or Partner F Four Ally/Partner Programs — Energy Ally — Industry Ally — State Ally — LMOP Partner F Voluntary/non-binding

27 Contact Information F Shelley Cohen Program Manager — — F 5ht Annual LMOP Conference & Project Expo -- December Washington, DC Watch the web site for more information