ZERO LANDFILL: ORGANICS

SBWMA Environmental Goals:“Triple-Zero”

ZeroOrganics to

Landfill

ZeroOrganics to

Landfill

1Zero

Recyclables to Landfill

ZeroRecyclables to Landfill

2Zero

Net GHG in Operations

ZeroNet GHG in Operations

3

Our goals also conform to State Mandates

• Reduce waste 75% by 2025 (vs. 2014 levels)

• SBWMA currently at 50%

• organics to landfill = methane/GHGs

• Organics-Specific Diversion Laws:• AB 32-Global Warming Act (2006) • AB 341-Mandatory Commercial Recycling Act (2011) • AB 1594-Yard Trimmings & ADC LF Limits Act (2014) • AB 1826-Mandatory Organics Recycling Act (2014) • SB 1383-Short-Lived Climate Pollutants Act (2016)

New Gen. Legislative Mandates

DIVERSION PROBLEM: Agency Diversion is Not Meeting Future Goals

75% Goal

Note: 10% diversion-boost from “Single Stream” recycling, making recycling convenient for users

25% Diversion Gap

Organics is Largest % of Waste Stream

1. Mixed Paper (Wet), 11.2%

2. Mixed Paper (Dry), 3.6%

3. OCC, 1.6%4. AluminumUBC's, 0.2%5. Tin Cans, 0.4%

6. MixedMetals, 1.9%

7. PETEContainers, 0.3%

8. HDPEContainers, 0.5%

9. FilmPlastics, 3.8%

10. All OtherPlastic,3.8%

11. CRVGlass, 1.5%

12. Other Glass, 0.2%

13. Lumber, 9.5%

15. Compostables/Food Waste, 31.3%

16. Textiles,4.1%

17. Interts,2.6%

18. Haz Waste, 0.0%

19. E‐Waste, 0.6%

20. Fines, 1.5%

21. Refuse, 20.4%

Residential Waste Commercial/MFD Waste

Organics/food waste is largest single category of landfilled material for both

Residential & Commercial/MFD

So What are Barriers to Increasing Organics Diversion?

1.Sorting Organics out of Garbage2.Disposing of Organics other than in

Landfill in cost efficient way

SORTING ISSUE: Contamination

Lack of compost facilities = capacity crisisTotal cost for Organics (T&D at $75-$80ton) more than landfilling • Cost increasing at 4% per year average • Long-haul costs for Organics BVO (70 miles/trip)~100K/year saving)• Future transportation cost will increase due to traffic

COMPOST COST PROBLEM: Organics to Compost – Costly & Scarce

$40.77 $42.19 $43.65 $45.19

$49.70 $51.19 $52.73

$32.00 $32.91 $33.85 $34.32 $33.82 $34.60 $35.71

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

2011 2012 2013 2014 2015 2016 2017

SBWMAComposting Cost per Ton

Republic Newby Island Organics Recology BVO/Grover Composting

Current: Comm./MFD w/Organic Service = Approx. 20%Current: Comm. Organic (SSO) Lifts = 7%Double Organics Lifts to 14% = Increase of $2.5M/year in Collection Costs

Adding Commercial Organics Collection is Expensive (And Does Not Solve the Contamination issue)

What’s the Solution? ZLF Proposes O2E

1. Target Organics to meet diversion & GHG goals

2. Current Approach = inadequate/expensive Diversion problem “Sorting”/contamination problem Compost-cost problem Expanding commercial SSO = higher collection costs/rates

Solution: Enhanced Processing at Shoreway & Organics-to-Energy at nearby Waste Water Plant (WWTP)

O2E Process Flow

Organics sorted from garbage at Shoreway or

at generator

Organic waste converted into clean slurry at

Shoreway

Clean slurry delivered to WWTP for conversion to

Green-Energy

Full O2E System Process Flow

Polished Organics

Extracted Organics

OREXOrganics Extraction Organics Polishing

MSW

MSW SortingMSWWWTP AD

MSW Sort In-feed 700 TPD

(@50ton/hr)

Power and/orBioCNG

Organic to WWTP

200 TPD(4 loads/day)

SortedOrganics

MSW/SSO

O2E Pilot Equipment at Shoreway Transfer Station

Storage Tanks

Truck Load Out

Shredder, Orex Press, Polisher

Organics-to-Energy(O2E) Phasing

Phase 1: O2E Pilot

• Validate full 02E system diversion

• Validate WWTP AD partnership

Phase 2: Full O2E (MSW Sort System)

• Eliminate Organics to landfill

• Eliminate Recyclables to landfill

• Reduce GHG emissions from LF + trucking

Phase 3 (optional): CNG / Bio-CNG

• Convert Collection Fleet to CNG

• Replace diesel with BioCNG

O2E Pilot - Source of Funds

SBWMA CapEx

FY 18/19 Budget has $2.25M Capital dedicated for O2E Pilot

Pilot equipment can be repurposed in Full-System

The Pilot does not obligate SBWMA to build Full-System but pilot is revenue positive and budget approved by BOD

Cost of Equipment (Net of CalRecycle Grant)$5,000,000 Estimated Equipment Installed Cost

$250,000 Installation Contingency

($1,800,000) CalRecycle – Repurpose SF Orex Press

($1,200,000) CalRecycle – Equipment Grant

$2,250,000 Total SBWMA CapEx Cost

($1,000,000) Potential Other Grants

O2E Pilot Project - Financial Summary

O2E Pilot Cost Category (Based on ~20,000 tons/year) $/Ton Total $/Yr.

CAPEX (Budget amount of $2.25M) 11.54 225,000

OPEX 10.95 213,504

Organic Slurry to WWTP (T&D) 26.25 511,875

Residual Disposal to Landfill (T&D) 14.43 281,434

Total Cost of O2E Pilot $63.17 $1,231,813

Assumptions: Financial summary based on processing commercial organics Does not include cost of preprocessing test batches of MSW at MRF Tip fee for slurry at WWTP to be determined based on contamination levels $2.25M CapEx straight-line depreciation over 10-years

Business As Usual Cost Comparison $/Ton Total $/Yr.

Current Cost of Transport & Compost $69.20 $1,349,400

O2E Full-Project Financial Summary

O2E Full-Project Cost Category (Based on ~200,000 tons/year) $/Ton Total $/Yr.

CAPEX Depreciation (Financing not Included) 8.24 1,500,000

OPEX (Sort System Operations) 9.75 1,774,803

Organic Slurry to WWTP (T&D) 8.40 1,528,800

Residual Disposal to Landfill (T&D) 48.24 8,779,680

Total Cost of O2E $74.63 $13,583,283

Business As Usual Cost Comparison $/Ton Total $/Yr.

Disposal Cost (Landfill, Compost & Transport) 72.00 13,104,000

Additional Organics Collection Cost 13.74 2,500,000

Total BAU Cost (without O2E) $85.74 $15,604,000

Full Project Financing Assumptions and Details

Full-Project approval and construction planned for year 2020

Full-Project CapEx est. $15-20M depending on need for transfer station expansion

Grants are possible but not included in CapEx projections

SBWMA Bond Refinancing can provide +$10M of project CapEx

Finance cost for remaining $5-10M CapEx estimated $500K

Forecast Benefits

O2E Key Environmental Benefits

SBWMA Sort System will:

Remove 90% of recyclable containers & cardboard

Remove 90% of food waste in MSW

Clean organic material (or “fraction”) for delivery to WWTP

WWTP Anaerobic Digestion will:

Convert organic slurry to green energy to achieve Zero Net GHG

Potential for BioCNG fuel to “Deep Green” collection fleet

O2E Full System Projected Overall SBWMA Diversion

Projected Diversion – 67%

O2E Project will Increase

SBWMA Diversion 16%

Benefits of Partnering with WWTP

Reduced hauling cost vs. compost

Leverage existing WWTP infrastructure

WWTP self-generation of power

Future BioCNG pipeline opportunity

Ratepayer benefits (SVCW & SBWMA ratepayer overlap)

Demonstrates interagency cooperation

No need for composting, reducing burden already limited composing operations

Demonstrates success for future grant funding requests

O2E Phase 3: Potential BioCNG Fleet Fuel SVCW partnership - Potential to pipe-back BioCNG to fuel fleet

This option is not included nor required to justify O2E

BioCNG production would meet/exceed current fleet needs

How Would it Work?

All SBWMA organics are digested by SVCW

Biogas is “cleaned” and compressed into BioCNG

SVCW provides/sells BioCNG to the SBWMA for fueling truck fleet at Shoreway

Financial Case for BioCNG Project

The O2E/BioCNG project represents the single greatest action that the Agency can take to mitigate GHG & climate change

SUPPORT SLIDES

SBWMA Technology Partner - Anaergia

Integrated Solutions Provider

Processing Waste

Municipal Solid Waste

Collected Food Waste

Wastewater Biosolids

Clean Water

Renewable Gas

Agricultural Waste

Fertilizer

Renewable Power

Recyclables

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Anaergia Major Projects

Limassol, Cyprus Processes 140,000 TPY of MSW using OREX and a suite of Anaergia technologies to produce biogas, recyclables, and RDF to achieve 89% recoveryOperational: September 2017

Toronto CanadaProcesses 70,000 TPY of OFMSW using OREX at RecologyOperational in April, 2019

Goa, IndiaProcesses 36,000 TPY of MSW using OREX and a digester to produce electricity, biogas, and refuse derived fuel (RDF) achieving a 94% recovery.Operational: March 2016

Cardiff, UKProcesses 42,000 TPY of SSO food waste using OREXOperational: December 2016

Cape Town, South AfricaProcesses 140,000 TPY of MSW using OREX to produce wet fraction for AD and bio-methane.Operational: March 2017

SingaporeProcesses 35,000 TPY of SSO with 25% contamination using OREX and a digester and generating 2MW of power.Operational: November 2016

O2E Benefits – (Diversion, Energy, and GHG)

Electricity Production

BioCNG Production

Pilot

Full Scale

OREX Throughput  TPY 

% of 2020 Goal Food Waste Only 

% of 2025 Goal Food Waste Only 

MWh production

MTCO2e Avoided 

Gal Diesel Offset 

MTCO2eAvoided

75 tpd  19,500  38%  31%  9,275  1,589  520,132  7,836 

200  tpd  52,000  102%  83%  24,733  4,239  1,387,017  20,896

300  tpd  78,000  154%  124%  37,100  6,358  2,080,526  31,344

O2E Implementation Schedule

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Organic Waste Sorting at Shoreway

SVCW, Redwood City

O2E Full Scale Project at SBWMA

Organic Slurry Digestion at

WWTP