1. Anaerobic Digestion and the Path Towards Zero Waste Paul Relis Senior Vice President CR&R Incorporated July 14,2009

2. The AD Context in California In 2007 approximately 38 million tons of municipal solid waste (MSW) was disposed of in California landfills. (35 million tons as of 2008) MSW landfills are the second largest anthropogenic source of methane and are an important source of greenhouse gas (CHG) emissions. To an increasing extent landfill gas is being captured and converted to energy, thus reducing greenhouse gas emissions.

3. Co-Locating AD Plants at MRF/Transfer Stations But another and even more effective way of capturing methane gas is to intercept waste that would otherwise go to a landfill and process it in an AD facility co-located at a MRF/Transfer Station.

4. An AD Case Study for California CR&R, a recycling and waste services company serving about 2.5 million customers in Southern California has teamed up with ArrowBio, developers of an innovative wet MRF and AD process.   The Arrow system has been vetted by Los Angeles City and County, as part of a two-year assessment of alternative technologies.

5. AD Plant Case Study City of Los Angels RFP Process The City of Los Angeles is in the final stages of selecting one or more alternative technologies to contract with over a twenty-year timeframe. The ArrowBio AD technology has been highly rated. The City of Los Angeles has long-range goal to reduce dependency on landfill, produce green energy and green jobs for the City.

6. AD Case Study County of Los Angeles CR&R and Arrow Ecology’s AD technology has also been selected by LA County after a two- year evaluation of technologies, both AD and thermal, from around the world. The County is working with CR&R and Arrow to develop an AD project over the next two years.

7. AD Benefits Major GHG reductions Recovery of renewable energy, soil products and recyclables-bumping diversion rates approaching 90%. The technology integrates recycling with renewable energy and GHG reduction objectives Economic development through the design, construction and operation of AD plants in California

8. 8 System Benefits Intercepts and converts biodegradable waste to green energy before it is placed in landfills Recovers more recyclables Biogas is cleaner than landfill gas with a methane content of 65-70% Modular and scalable Reduced transportation impacts

9. Dry sorting and plastic bag opening MAIN VAT LIGHT FRACTION FLOW HEAVY FRACTION FLOW Ferrous metals Second stage Non-Ferrous metals Glass Stones, Sand First stage Hydro-Mechanical Separation First stage Hydro-Mechanical Separation Process Flow PET HDPE Textile, Leather LDPE SECONDARY VAT Un-Sorted or Sorted MSW INPUT Landfill Second stage Biological anaerobic digestion Second stage Biological anaerobic digestion Bulky & negative items

10. First stage Hydro-Mechanical Separation First stage Hydro-Mechanical Separation Process Flow Second stage Biological anaerobic digestion Second stage Biological anaerobic digestion Acitogenic Reactors Methanogenic Reactor & Digesters First Class Soil Amendment Biogas -> CNG Biodegradable material from first stage

11. Energy Value of 50,000 tons of MSW Using ArrowBio wet MRF and AD Process Energy Value of 50,000 tons of MSW Using ArrowBio wet MRF and AD Process Production of 100 % green energy - biomethane. According to CARB this fuel has an emissions impact that is about 6X lower than fossil-fuel derived natural gas. Produces an estimated equivalent of 760,000 gallons/year – enough to power 80 heavy duty trucks (transportation option) Or about 1.3 megawatts of electricity

12. More than 99.5 % methane recovery –Global Warming Potential (GWP) of CH 4 is 21 times higher than CO 2 Upgraded biogas exceeds Sempra and PG&E quality requirements Pure and green CO 2 – a commercial value – can be captured

13. Biogas Upgrade Plant

14. Aerial View of Proposed 150 TPD Facility at the Project Site

15. 100 Truck LNG Fleet Serving South Orange County

16. and Green Fuel Potential for California The GHG emission reductions from converting 10,000,000 tons of biodegradable solid waste to biomethane derived fuel is 2,400,000 tons/year. Converting 10,000,000 tons of biodegradable solid waste per year to biomethane could fuel approximately 16,000 heavy duty trucks per year.

17. Conclusions Bridge funding through programs like AB 118 and the South Coast Air Quality Management District’s technology grant programs and/or early implementer contracts like the one under consideration by the City of Los Angeles are essential to building an AD infrastructure in California. More public education and awareness of the benefits of AD is needed.

18. The path towards zero waste will require advanced technology in addition to continued efforts to promote reycling, composting and waste prevention.