1. Ramsey-Washington Project Board September 25, 2014 1 Waste Delivery & Project Governance Issues Sara Bergan Kevin Johnson Stoel Rives LLP Ramsey-Washington Project Board September 25, 2014

2. Ramsey-Washington Project Board September 25, 2014 2 Metro Waste Processing Statute Minn. Stat. § 473.848 –Restricts disposal of unprocessed Mixed Municipal Solid Waste (MMSW) unless it has been certified as unprocessible MPCA’s 2011 Revised Policy Plan –Maximize use of existing resource recovery facilities –Begin enforcing §473.848 –Criteria for determining when MMSW unprocessible 2012 MPCA Report to Legislature on § 473.848 –Landfills not in compliance with restriction on disposal –Proposes amending landfill permits to restrict landfills from accepting unprocessed metropolitan MMSW

3. Ramsey-Washington Project Board September 25, 2014 3 Metro Statute Litigation 8.16.13: WM Petition for Declaratory Order Prohibiting MPCA Enforcement 12.20.13: ALJ Dismisses Petition –Determines MPCA strategy is a rule but is exempt from rulemaking procedure –MPCA Policy Plan is exempt from rulemaking –MPCA action merely enforces § 473.848 8.11.14: Court of Appeals Affirms ALJ 9.10.14: WM Petitions MN Supreme Court 11.10.14: Supreme Court Deadline to Grant or Deny

4. Ramsey-Washington Project Board September 25, 2014 4 Implications of Enforcement How Could Enforcement Impact the Newport RDF Facility? –Would Appear to Have Potential to Increase MMSW Delivered –However, MPCA to Enforce Only at MN Landfills Ramsey-Washington: ~80,000 tons MMSW Landfilled –36,000 (Advanced: Eau Claire, WI Facility) –22,000 (WM: Elk River and Spruce Ridge Facilities in MN) –22,000 (Republic: Pine Bend Facility in MN) –Current Out-of-State Landfilling Could Continue –Potential to Increase Out-of-State Landfilling Depending Upon Waste Management and Republic Response What’s Next?

5. Ramsey-Washington Project Board September 25, 2014 5 Waste Designation Benefits Capture 80,000 Tons MMSW Currently Landfilled More Focused, Predictable Long Range Planning Mitigate Risks of Private Sector Ownership Changes More Transparent Financing of Waste Management Services Potential for Increased Waste Reduction & Recycling Other Environmental Benefits of More Robust System, Such as Greenhouse Gas Reduction

6. Ramsey-Washington Project Board September 25, 2014 6 Waste Designation Costs Cost and Risk of Public Ownership & Operation Potential Route Adjustments for Haulers Landfills Currently Receiving Waste Will Be Impacted Hauler Opposition and Potential Legal Challenges

7. Ramsey-Washington Project Board September 25, 2014 7

8. Ramsey-Washington Project Board September 25, 2014 8 Waste Designation Process Considerations: –Joint Designation Plan –Designated Service Areas –Wastes Subject to Designation –Designated Facilities/System –Consistent MPCA Policy Plan, Master Plans and Designation Plan –Potential Continued Use of Hauler Agreements

9. Ramsey-Washington Project Board September 25, 2014 9 Governance Options Two Primary Options: Joint Powers Board (Minn. Stat. § 471.59) –Ramsey-Washington is currently utilizing Waste Management District (Minn. Stat. § 115A.62-.72) –Entirely new undertaking; Statute not yet used –MPCA has not promulgated required rules

10. Ramsey-Washington Project Board September 25, 2014 10 Governance Options Joint PowersDistrict FormationKnown, Low Risk, Opportunity to Revise Complex and Time Consuming; Higher Risk Organization CharacteristicsCounty Board Involvement Mandatory Separate and Distinct Governmental Entity; Pros and Cons PowersCounties Can Delegate Powers Held in Common and Subsequently Modify Once Power is Ceded to District Would Be Difficult to Retrieve Revenue & Debt AuthorityCounties Can Delegate Bonding and Service Charge Authorities Similar EmploymentLikely Involve County Employment System Employees Directly Employed by District LiabilityLiabilities of Joint Powers Board Could Reach Back To Counties Liability Resides with District