https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
  • Resources
    • Back
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Subscribe to GovPro
    • Manage GovPro Subscription
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
acc.com

Administration


Viewpoint: From trash to treasure

Viewpoint: From trash to treasure

Methane, a clean-burning fuel source, also can be an untapped revenue stream for cash-strapped cities and towns, and a jobs generator.
  • Written by Jeffrey Karp and Stephen Batiste
  • 24th November 2010

Municipal landfills hold potential treasure that can benefit the environment and community coffers. The rubbish buried in municipal landfills emits methane, a greenhouse gas that can be captured and used to fuel power plants, manufacturing facilities, homes and more. But methane is more than a clean-burning fuel source. It also can be an untapped revenue stream for cash-strapped cities and towns, and a jobs generator for the local economy.

Municipalities can capitalize on that asset by creating landfill gas-to-energy (LFGE) projects. According to the U.S. Environmental Protection Agency (EPA), there are approximately 2,300 active or recently closed landfills nationwide. About one-quarter of those have operational LFGE systems. More than 500 others are potential candidates to develop LFGE projects, and around 350 of those are in the municipal sector.

Through a survey and interviews with landfill owners in Tennessee, we found municipal officials often do not consider LFGE projects because of perceived obstacles — the landfill does not emit enough methane gas; the quality of the gas is questionable; project financing is not available; it does not make economic sense to own and manage an LFGE project. But, in many cases, such hurdles do not actually exist or can be cleared with assistance. The common assumption about size, for example, is often mistaken. Even landfills with 1 million tons of waste can support small LFGE projects, and provide financial and environmental benefits.

Is your municipal landfill a good LFGE candidate? The EPA’s Landfill Methane Outreach Program (LMOP) defines a candidate landfill as one that is:

  • accepting waste or has been closed for five years or less;
  • has at least 1 million tons of waste; and
  • does not have an operational LFGE project or one under construction.

Becoming educated on the issues seems to be the primary challenge. But that does not mean the decision-makers in interested communities need to become experts. There are project consultants, developers and attorneys who can provide the technical, financial and legal assistance to evaluate whether a municipal landfill is a good candidate for an LFGE project.

Begin by referencing resources, including the EPA’s LMOP website, which includes an up-to-date and comprehensive LFG Energy Project Development Handbook.

Understanding the quality and quantity of a landfill’s gas supply is vital to determining if a municipality should build an LFGE project. A variety of techniques — such as computer modeling, review of landfill records, and site-specific investigations — can more accurately predict LFG supply and quality.

The standard model for financing a project is for a municipality to partner with a gas provider, developer or other end-user who will help defray the costs. Local governments that choose not to partner with a developer may find that financing becomes more complex and can require specialized financing expertise.

Payment to the municipalities can occur in several ways, including:

  • Royalty payments. The developer builds the facility, owns the gas and pays a royalty to the landfill owner. Developer royalty rates can range from 10 to 30 percent.
  • Purchase of gas and sharing of income. The developer builds and pays for the new gas collection facility, and either owns or buys the extracted gas from the landfill owner, such as at a fixed or indexed price. The developer and landfill owner also share income received from the sale of the environmental attributes, such as renewable energy credits.
  • Payments while the project is under development. The developer pays a fixed monthly rental fee or makes certain milestone payments while the project is under development, and prior to beginning commercial operations.

A landfill may seem an unlikely place to find an environmental and economic asset, but that is what it can become as an LFGE project. By thinking creatively and consulting appropriate advisors, officials may find that their community’s methane gas can be part of its treasure.

What do you think? Tell us in the comment box below.

Jeffrey Karp is a partner at Sullivan & Worcester LLP, a full-service law firm with offices in Boston, New York, and Washington, D.C. The firm’s climate practice draws on its environmental, renewable energy, project finance, corporate, and tax practices to offer the legal services necessary to undertake an LFGE project.

Stephen Batiste, P.E., is a solid waste practice leader at Brown and Caldwell with more than 20 years of experience in issues related to solid waste, including landfill planning and design, permitting, landfill gas reuse, and operation and maintenance. Brown and Caldwell is based in Walnut Creek, Calif.

Related Stories

  • Turning landfill gas (LFG) into money
  • County uses landfill gas, recyclables to produce asphalt
  • City exports landfill gas to power a nearby ethanol production facility
  • Counties convert methane gas from waste to electricity
  • City diverts landfill gas, produces ‘green’ power

Tags: Administration Economy Public Works & Utilities

Related


  • American City & County's 2020 Exemplary Public Servant of the Year Award
    Nominees for American City & County's Exemplary Public Servant of the Year award are judged on their recent accomplishments and the impact these actions had on their communities
  • American City & County’s 2020 Crown Communities Awards
    Projects nominated for American City & County's annual Crown Communities Awards are judged on uniqueness, short- and long-term value to the community and effective/innovative financing.
  • 2020 Crown Communities winner: Rock Hill, S.C.'s My Ride
    Rock Hill, S.C.’s My Ride project is a great example of how a city can solve multiple issues with one innovative project. My Ride is an all-electric, fare-free, fixed-route bus system that operates within Rock Hill (pop. 75,000). Seven electric buses ferry passengers over four routes that span across major corridors in the city. The […]
  • How small cities are tackling lead service line replacement
    “We move Heaven and earth,” says Montana Birt. A transplant from Georgia, Birt is a pastor in a local church in Thorp, Wisc., the smallest of cities with a population of just more than 1,600. His more earthly endeavor, however, involves digging up and replacing lead pipes that threaten to poison his neighbors’ water in […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Online sales tax collections proving essential for many state and local governments during COVID-19
  • Pennsylvania county will light up its buildings with hydro-electric power
  • Hi-tech sewers can help safeguard public health, environment and economies
  • Three ways the public sector can minimize remote workforce PC refresh headaches

White papers


Discover How Public Sector Officials are Monitoring and Managing Overtime in This New White Paper

22nd February 2021

How to Assemble a Successful Government Grant Proposal

5th February 2021

The Rise of Procurement’s Next Normal

5th February 2021
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

ASCE releases 2021 Report Card for America’s Infrastructure dlvr.it/Rtvck5

3rd March 2021
AmerCityCounty

Updating the assessor report: A new approach dlvr.it/RttvDv

3rd March 2021
AmerCityCounty

2020 Crown Communities winner: Phases 2 and 3 of Minot, N.D.’s Mouse River Enhanced Flood Protection Plan dlvr.it/RtrWMC

3rd March 2021
AmerCityCounty

Rethinking worker’s compensation with alternative dispute resolution dlvr.it/RtqmMx

2nd March 2021
AmerCityCounty

2020 Crown Communities winner: Harris County, Texas, Precinct 2’s ACCESS2HEALTH SmartPod dlvr.it/Rtm06B

1st March 2021
AmerCityCounty

How technology can ensure equitable access to the COVID-19 vaccine dlvr.it/RtlLNC

1st March 2021
AmerCityCounty

American City & County’s 2020 Exemplary Public Servant of the Year Award dlvr.it/RtZbX2

26th February 2021
AmerCityCounty

American City & County’s 2020 Crown Communities Awards dlvr.it/RtZbVz

26th February 2021

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X