HomeMy WebLinkAboutItem 02 IMERF Presentation AGENDA ITEM SUMMARY Meeting Date: 11/20/2023
Meeting Type: Regular Meeting
Staff Contact/Dept.: Dan Hurley/Lane
County Public Works
Staff Phone No: 541-682-6910
Estimated Time: 40 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Promote and Enhance
our Hometown Feel
while Focusing on
Livability and
Environmental Quality
ITEM TITLE:
INTEGRATED MATERIAL AND ENERGY RECOVERY FACILITY (IMERF)
ACTION
REQUESTED:
To received feedback from the Council and provide answers to questions or
concerns.
ISSUE
STATEMENT:
Lane County is considering entering into an agreement with Bulk Handling
Systems (BHS) to build and operate an Integrated Material and Energy Recovery
Facility (IMERF) in Goshen, Oregon. The facility would process residential
garbage, commingled recycling, and organic waste to produce marketable recycling
commodities and biogas for transportation. The facility would divert over 80,000
tons of material from the County’s landfill annually and would serve as a regional
recycling hub for southwest Oregon.
ATTACHMENTS: 1. Memorandum Dated November 13, 2023
2. November 2023 IMERF Update
3. PowerPoint Presentation
DISCUSSION/
FINANCIAL
IMPACT:
Provided in attachments 1 and 2.
Page 1 of 6
AGENDA COVER MEMO
Memorandum Date: November 13, 2023
Order Date: November 20, 2023
TO: Springfield City Council
PRESENTED BY: Dan Hurley, Public Works Director
Lane County
Jeff Orlandini, Waste Management Division Manager
Lane County
AGENDA ITEM TITLE: Lane County’s Proposed Integrated Material and Energy Recovery
Facility (IMERF)
I. AGENDA ITEM SUMMARY
Lane County is considering entering into an agreement with Bulk Handling Systems
(BHS) to build and operate an Integrated Material and Energy Recovery Facility (IMERF)
in Goshen, Oregon. The facility would process residential garbage, commingled recycling,
and organic waste to produce marketable recycling commodities and biogas for
transportation. The facility would divert over 80,000 tons of material from the County’s
landfill annually and would serve as a regional recycling hub for southwest Oregon.
II. BACKGROUND
Lane County is the Solid Waste Authority for Lane County. Lane County owns and
operates the Short Mountain Landfill as well as 15 transfer stations serving all of Lane
County’s residents.
In 2015, the Oregon State Legislature passed legislation updating the Opportunity to
Recycle Act. As a part of this process, Lane County was required to provide a materials
recovery goal to be achieved for 2025 and beyond. Recovery goals are used to encourage
waste reduction, recycling, and diversion of waste from landfills. Lane County selected
63% recovery rate for this voluntary goal. This goal is listed in ORS 459A.010. Lane
County currently achieves an approximate 53% recovery rate.
In July 2019, the Lane County Board of Commissioners adopted the updated Solid Waste
Management Plan (SWMP) as a Special Purpose Plan of the County’s Rural
Comprehensive Plan (Ordinance No. PA 1377 & 19-04). The plan notes that the
Department of Environmental Quality (DEQ) identified food waste as the single largest
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waste stream entering the landfill. Organic wastes, including food waste, decay in the
landfill and produce methane - a potent greenhouse gas.
In December 2019, the Board approved the revised 2018-2021 Lane County Strategic
Plan adding the following Key Strategic Initiative: Pursue programs to reach a 63%
waste recovery rate by 2025.
In February 2020, the Board adopted Order and Resolution 20-02-04-04, establishing a
Climate Change Strategy for Lane County that included goals to reduce greenhouse gas
emissions from County operations.
In October 2020, the Board approved the first phase of the County’s Climate Action Plan.
The plan identified the Short Mountain Landfill as the highest contributor (77%) of
greenhouse gas emissions from County operations. The Action Plan recommended
construction of an Anaerobic Digestion system at the Short Mountain Landfill as a key
action for lowering emissions from the landfill.
In December 2021, Waste Management Division staff presented on past action taken and
next steps in advancing materials management in Lane County. A local manufacturer of
waste processing systems, Bulk Handling Systems (BHS), presented on waste processing
technologies in use in other communities that may be viable in Lane County.
In March 2022, Waste Management Division issued a Request for Proposals (RFP) for
Waste Recovery Facilities to help the County meet or exceed its 63% recovery goal. After
a competitive process, the County selected Bulk Handling Systems (BHS) to enter into a
contract to further explore building a Waste Processing Facility located near Short
Mountain Landfill.
In April 2022, the Board added the following objective to the 2022-2024 Strategic Plan:
Fully vet the construction of a waste processing facility for the Short Mountain Landfill.
In July 2023, the Division identified a potential property in Goshen for the IMERF and
entered into a Purchase & Sale Agreement (PSA) pending approval by the Board of
County Commissioners.
In September 2023, County staff provided and update to the Board of Commissioners on
the vetting status for constructing a waste processing facility including cost estimates from
the 30% design plans for the facility.
III. POLICY ISSUES
Oregon Revised Statute (ORS) 459.015 (1) (d): “It is in the best interests of the people of
Oregon to extend the useful life of solid waste disposal sites by encouraging waste
prevention and the recycling and reuse of materials, and by requiring solid waste to
undergo volume reduction through recycling and reuse measures to the maximum extent
feasible before disposal. Implementation of waste prevention and recycling and reuse
measures will not only increase the useful life of solid waste disposal sites, but also
decrease the potential public health and safety impacts associated with the operation of
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disposal sites.”
Per ORS 459.085, with respect to areas outside of cities, the Board of County
commissioners may adopt ordinances to provide for the regulation, licensing or
franchising of salvage businesses or the operation of salvage sites where such action is
found necessary to implement any part of a solid waste management plan applicable in
the county.
IV. FINANCIAL CONSIDERATIONS
Approval of the IMERF would require increases to solid waste disposal fees (tipping fees)
in order to maintain current levels of service while supporting the new facility operations.
The County is continuing negotiations with BHS to develop an operating agreement. The
final agreement will include revenues to Lane County including an annual host fee. The
agreement will also include ongoing expenses in receiving the waste byproducts from the
sorting facility.
The proposed agreement would require the County to develop the site and construct a
suitable building to house the sorting equipment. The 30% design for the facility
estimated costs for site preparation and building construction at approximately $55
million. BHS would be responsible for supplying the sorting equipment and operating
the facility to meet established performance thresholds. BHS estimates the processing
equipment costs to be approximately $100 million.
Final costs for the construction and operation of the facility will be reduced through tax
credits, grant opportunities, and possible funding assistance from the State. Specific tax
federal tax credits will only be available if construction of the facility begins by the end
of 2024.
V. ANALYSIS
To fully vet the construction of a mixed waste processing facility, the project has been
evaluated through the Strategic Lenses outlined in the Board’s strategic plan:
Stewardship of Resources, Equity, and Collective Impact. Strategic lenses are
perspectives from which strategic priorities and goals should be viewed, as well as
questions that should be asked before strategies are implemented.
Stewardship of Resources
• How will we pay for this?
The Waste Management Division operates out an Enterprise Fund. It is self-
supported through user fees. The fund does not receive any money from taxes or
the General Fund. The County estimates an increase in fees of 11% per year four
years in order to maintain current levels of service and cover the costs of the
IMERF. A 3% CPI increase is included in the 11% to account for projected
inflationary adjustments needed for overall operations regardless of this project.
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Tipping fee increases are predicted to reduce to 8% in year five, and 5% in year six.
It has been estimated using data from the City of Eugene that for the typical
customer using curbside waste collection, an 11% landfill fee increase would result
in a monthly curbside increase of 50-60 cents. Rate impacts to commercial
customers vary significantly depending on the amount of waste generated.
Estimates provide by Sanipac calculated an average increase to commercial
accounts from the IMERF at approximately 3% per year for the next 6 years for the
average commercial customer.
• Is what we are proposing sustainable?
The proposed tipping fee increases would provide sustainable funding for the life
of the facility. The processing facility is estimated to extend the life of the landfill
by 20+ years while producing 1 million diesel gallon equivalent of natural gas per
year via anaerobic digestion. Additionally, the facility will house a process line for
recyclable materials that will be able to handle all of Lane County’s recycling as
well as take from neighboring counties, meeting the standards of the Recycling
Modernization Act. Siting a processing facility in Lane County will avoid
transportation of recyclable materials that are currently trucked to
Portland/Vancouver area recovery facilities.
Equity
• How does this impact everyone in our community?
The landfill is a resource for all residents to meet our community’s long-term
needs for safe and responsible solid waste disposal. Extending the life of the
landfill is a benefit for everyone and succeeding generations. Likewise, reducing
the emissions and the long-term environmental liability of the landfill benefits
everyone. Increasing fees also carries an impact. However, a $2/month increase
spread over four years seems reasonable for the multiple benefits to be gained. In
addition to the environmental benefits, the proposed facility would enable
residents to again recycle plastics that were discontinued from collection in the
current system, such as plastic tubs and plastic film.
To help offset the impact to low income residents, a new discount is proposed at
County transfer stations to offer a $1 off per load discount for customers
receiving Supplemental Nutrition Assistance Program (SNAP) benefits by
showing their Oregon Trail Card (EBT).
• Have we sought feedback from key stakeholders?
The Waste Management Division has held regular meetings with the Solid Waste
Stakeholder Group which comprises of representatives from cities, waste haulers,
and businesses and non-profits connected to the waste and recycling industries.
County staff have regularly provided updates and solicited feedback since the
inception of this project.
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Collective Impact
• Are we including the right partners?
BHS was selected through a competitive process over two other proposals
because of the quality of the proposal in achieving desired outcomes and the
proven track record of the company. Each of following outcomes were met or
exceeded with the proposed solution.
• Increase diversion of materials from the landfill to achieve a 63% county-wide
recovery rate.
The solution will enable the County to achieve over a 70% recovery rate.
• Significantly reduce greenhouse gas emissions from Short Mountain.
The processing facility is estimated to reduce over 100,000 tons of CO2 equivalent
emissions annually.
• Create local, sustainable economic development and jobs.
The project would provide approximately 190 construction jobs, 65 ongoing jobs to
operate the facility, and over $270 million in economic impacts benefiting Lane
County over the life of the project.
• Construct and operate at an affordable cost to the rate payer.
Annual fee increases will be kept to 50-60 cents per month for an average
household using curbside garbage service.
• Use proven processing systems.
BHS is a worldwide leader in supplying waste processing equipment. The
company has constructed numerous waste processing facilities, including several
in California that staff have visited to observe the facilities in operation.
• Achieve the above in a Public-Private Partnership format.
The proposed agreement would partner Lane County as the owner of the facility
and the landfill with BHS, as a private firm supplying and operating the
equipment. BHS would shoulder approximately 70% of the investment into the
facility.
• Is this the most effective solution?
Lane County’s recycling rate has plateaued in recent years, with the most recent
annual analysis indicating a slight decrease in the recovery rate, despite
numerous initiatives and education campaigns. A waste processing facility is the
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only solution anticipated to enable the County to meet the goals described above.
The County requested proposals and evaluated two other potential solutions. The
BHS proposal was evaluated to be the most effective solution.
VI. TIMING/IMPLEMENTATION
On November 28, County staff will return to the Board to provide additional updates on
the IMERF including a draft contract with BHS and proposed increases to solid waste
disposal fees to support construction and operation of the facility.
On December 5, the Board of Commissioners will have the opportunity to decide whether
to approve a contract with BHS, increases to solid waste fees, and the PSA to acquire the
proposed property.
VII. ATTACHMENTS
1. IMERF 2-Page brief
2. A PowerPoint presentation will be provided
Attachment 1 Page 6 of 6
On December 5, 2023, the Lane County Board of County Commissioners will decide whether to move forward on a state-
of-the-art Integrated Material and Energy Recovery Facility (IMERF) to be constructed in Goshen, Oregon. The IMERF
would be the most technologically advanced waste processing facility in the country and would utilize technology and
equipment designed and built by a local manufacturer, Bulk Handling Systems (BHS). BHS is a world leader in developing
sorting systems for the solid waste and recycling industries, and is headquartered in Eugene, Oregon. The facility would
process residential garbage, commingled recycling, and organic waste to produce marketable recycling commodities and
biogas for transportation. The facility would divert over 80,000 tons of material from the County’s landfill annually and
would serve as a regional recycling hub for southwest Oregon. The next update to the Board of County Commissioners is
scheduled for November 28.
PRINCIPAL GOALS OF PROJECT:
• Significantly reduce greenhouse gas emissions from the landfill
• Divert recyclable materials from waste that would otherwise be
landfilled
• Create local, sustainable economic development and jobs
• Use proven recycling processing systems
• Leverage public-private partnerships
• Construct and operate at an affordable cost to the rate-payer
BENEFITS FOR LANE COUNTY AND OREGON
The IMERF represents a fundamental transformation for Lane County’s handling of municipal solid waste. Processing of
waste to extract recyclables and energy is a major, comprehensive step forward. It will serve as a model for other
counties in Oregon and across the country. Project benefits include:
• Mitigation of methane from Short Mountain Landfill - the largest source of greenhouse gas (GHG) emissions from
County operations. Equivalent reduction of taking 20,000 cars off the road for the next 25 years.
• Achieve a materials recovery rate over 70% and extend the remaining life of the County’s municipal solid waste
landfill by more than 20 years.
• Produce over 1 million diesel gallon equivalents per year of renewable natural gas (RNG). Fuel would be available for
use in local transportation fleets and would have a negative carbon intensity under Oregon’s Clean Fuels Program.
• Two-year construction project utilizing local companies – creating 190 high-paying manufacturing jobs during
construction and 65 ongoing family wage jobs for the operation of the facility for the next 25 years.
• Over $270 million in economic impacts benefiting Lane County over the life of the project.
PROJECT FEATURES
• Advanced materials processing equipment to recover recyclable materials from solid waste headed to the landfill
• Sorting equipment for commingled recycling to reduce long haul shipment of locally collected recycling for processing
• Anaerobic digester to convert recovered organic wastes into Renewable Natural Gas (RNG) for transportation fuel
• Visitor and Educational Center for schools, community groups and other interested residents and businesses
LANE COUNTY
INTEGRATED MATERIAL AND ENERGY RECOVERY FACILITY (IMERF)
November 2023 Update
Attachment 2 Page 1 of 2
PROJECT COSTS: TOTAL = $150 MILLION
• Lane County will construct the building housing
the processing equipment.
o Building cost: $50 million
- minus tax credit $15 million
Construction cost to Lane County = $35 million
Lane County would issue a Capital Improvement
Bond in Spring of 2024 to cover up-front costs.
Bond will be paid back over time through
revenue from landfill tipping fees.
• BHS will construct and install the equipment for
the facility including the anaerobic digester; and
provide all funding required.
o Equipment cost = $100 million
BHS will supply and operate the equipment and
will generate revenue over time through waste
processing fees, sale of recyclable commodities,
and sale of biogas.
IMPACT TO GARBAGE RATES
Lane County currently has some of the lowest garbage rates in the state – primarily because the County owns the Short
Mountain Landfill that does not operate to make a profit. Starting with low rates, the rate increases needed to fund the
project would be a relatively low impact to the average residential customer. Lane County is proposing two 11%
increases to landfill rates in the first two years of the project. The landfill disposal cost is approximately 20-30% of a
customer’s residential garbage bill - so for most residents, these increases would amount to less than a $2/month
increase in the first two years of the project. Additional increases are expected at roughly the same amounts in the
following two years and tapering down in years five and six. The County is seeking federal and state funding to help
offset future increases. Rate impacts to commercial customers vary significantly depending on the amount of waste
generated. Estimates provided by a large local hauler estimate an average increase of 3% per year for the next 6 years
for the average commercial customer. Low-income assistance is proposed to offset fee increases for self-haul customers
at each of the 15 transfer stations operated by Lane County. Residents qualifying for Supplemental Nutrition Assistance
Program (SNAP) benefits would receive $1/off each load with their Oregon Trail (EBT) Card.
Bulk Handling Systems (BHS) is headquartered and has its main manufacturing facility in
Eugene, Oregon. BHS has built some of the largest and most durable Material Recovery
Facilities in the world – and they are achieving the highest throughput, recovery, and purity
rates in the industry. Bulk Handling Systems was selected through a competitive Request
for Proposal process to design, build and operate the IMERF.
The public-private partnership between BHS and Lane County envisions an infrastructure investment that that will
leverage tax incentives, along with state and federal funding opportunities to benefit all of Lane County’s residents.
Attachment 2 Page 2 of 2
Material Recovery
Facility
and Anaerobic Digestion
&
Organics Processing
Facility
Attachment 3 Page 1 of 16
Objectives
•Increase diversion of materials from the
landfill to achieve a minimum 63%
county-wide recycling rate
•Significantly reduce greenhouse gas
emissions from Short Mountain
•Create local, sustainable economic
development and jobs
•Construct and operate at an affordable
cost to the rate payer
•Use proven processing systems
•Achieve the above in a Public Private
Partnership format
Attachment 3 Page 2 of 16
Key Features
•State-of-the-art materials processing facility to
recover commodities from solid waste headed to
the landfill
•Processing of commingled recyclables from local
collection programs to provide local capacity and
reduce long haul shipments for processing
•Recovery and conversion of organic waste into
Renewable Natural Gas (RNG) through anaerobic
digestion
•Bio-drying of the pathogen-free organics for
reuse as soil amendments, slope stabilization and
daily cover at the landfill
•A Visitor and Educational Center for schools,
community groups and other interested residents
and businesses
Attachment 3 Page 3 of 16
Local Jobs
& Economic
Impact
•$135+ million construction value with $35
million of site development and building work
•Chambers Construction
•Farwest Steel
•BHS
•Annual economic revenue from plant
operations of more than $38 million
•Total direct jobs estimated during design,
fabrication, and construction of the IMERF is
more than 190 high-paying manufacturing
and construction jobs
•Generates over $200m in Lane County
regional economic activity
•Facility employment for the next 25 years
estimated at more than 65 at the facility;
paying prevailing wages and benefits
Attachment 3 Page 4 of 16
Regional Economic Impact
Direct Jobs Annual Value Supplier Jobs Annual Value Induced Jobs Annual Value Total Jobs Annual Value Lifetime Impact
Construction Jobs -Chambers 95 $12,160,000 84 $5,434,000 131 $4,588,500 310 $22,182,500 $33,273,750
Construction Jobs -BHS 75 $5,062,500 66 $3,300,000 104 $3,622,500 245 $11,985,000 $17,977,500
Construction Jobs -Farwest Steel 25 $1,500,000 22 $1,100,000 35 $1,207,500 82 $3,807,500 $5,711,250
Total Construction Jobs 195 $18,722,500 172 $ 9,834,000 269 $ 9,418,500 636 $ 37,975,000 $ 56,962,500
Operating Jobs 65 $4,875,000 29 $1,462,500 58 $2,024,750 152 $8,362,250 $145,613,094
Construction Materials $70,000,000
Projected Economic Impact $272,575,594
Economic Impact Model Asumptions
Construction Jobs Duration = 18 months
Operating Jobs Duration = 25 years which is
the length of the contract
* Model developed by Onward Eugene
Attachment 3 Page 5 of 16
Greenhouse
Gas Reductions
•Decrease of 88,000 tons per year of
CO2 emissions
•Organics processing removes
significant volatile organics through
AD and aerobic composting
•Reduction of carbon emissions from
transport of materials to distant
processors
Attachment 3 Page 6 of 16
RNG
Production
•The facility will produce 1,150,000 diesel
gallon equivalent (DGE) per year of biogas
upgraded to pipeline quality Renewable
Natural Gas (RNG)
•Produces Negative Carbon Intensity RNG
fuel under Oregon’s Clean Fuels Program
Attachment 3 Page 7 of 16
Recyclables
•Recyclables recovered from the
system will be sold as commodities
•Adding a separate system to
process Commingled Recyclables
under Oregon Recycling
Modernization Act
•Expanded list of acceptable
materials to include wider range of
plastics
Attachment 3 Page 8 of 16
Education
Center
Dedicated Education Center for for community
tours of the system and information about waste
& recycling in Lane County
Attachment 3 Page 9 of 16
Key Terms of
Public Private
Partnership
•Lane County develops and owns the site and
buildings
•BHS to fund entire buildout of recycling and
renewable energy infrastructure
•Meets Lane County’s solid waste and climate
action plans
•Facility development and opening within 24
months
Attachment 3 Page 10 of 16
Lane County IMERF
Attachment 3 Page 11 of 16
Lane County IMERF
Attachment 3 Page 12 of 16
Process Equipment
Attachment 3 Page 13 of 16
Process Equipment
Attachment 3 Page 14 of 16
Renewable Biogas
Attachment 3 Page 15 of 16
Lane County Integrated Material
and Energy Recovery Facility
A Public Private PartnershipAttachment 3 Page 16 of 16