To

Mayor and Council

Subject

Environmental Services Agreement between Columbus Power Producers, Limited Liability Corporation (CPP) and Columbus Consolidated Government (CCG).

Initiator

Ron Smith

Recommendation

Permit the City Manager to enter into a contract with Columbus Power Producers \n \n to develop beneficial uses for landfill gas produced at Pine Grove and \n \n Schatulga Road Municipal Solid Waste (MSW) Landfills.

Approval

Pending

Background

In February of 2017 the Council approved to allow Enerdyne Power Systems to

investigate the possibilities for the beneficial use of existing landfill gas

from Pine Grove MSW Landfill and Schatulga Road MSW Landfill. CPP, LLC and

Enerdyne Power Systems are different sections of the same company under the

same ownership. CPP has responded to the investigation and has found that the

amount of landfill gas will be sufficient for a viable project or projects and

would like to proceed with the installation of equipment necessary for

extraction of landfill gas.

Analysis

Landfill gas is a "Green House Gas" and as such, the Environmental Protection

Division (EPD) requires landfill owners to control landfill gas emissions by

destruction of the gas thru a flare or by capturing the gas and using it in a

beneficial way. CPP, LLC is willing to capture the landfill gas for use in a

beneficial way by selling the energy the gas produces on the commercial market.

Since the gas belongs to CCG we are required to deal with in an acceptable

manner. Using the gas as a means of producing electricity is an acceptable

manner.

Financial Considerations

CPP will install a gas collection system at it's sole expense, to include the

purchase of all materials, design of the system, modification of the system as

needed, obtaining permits to construct and operate the gas collection system

and operation of the gas collection system at the landfill in accordance with

applicable requirements. CPP will, at its discretion and at it's sole expense,

purchase, design, install and operate a power plant to generate electricity.

CPP agrees to pay the CCG for the gas as set forth in the contract Article 2;



Article 2.3 (a)(i) - Power production - For that portion of the Landfill Gas

used by the Power Plant solely for the production of electricity, beginning on

the first date that the power plant actually produces electricity, CPP shall

pay CCG an amount equal to Forty Cents ($0.40) for each MMBtu (Million British

Thermal Units) of Landfill Gas used by the Power Plant for the production of

electricity that CPP may sell to an unrelated third party.



Article 2.3 (a)(ii) - Landfill Gas - For that portion of the Landfill Gas that

is sold to a third party for use as a fuel, CPP shall pay CCG the amount of

Fifty Cents ($0.50) for each MMBtu of Landfill Gas.



Article 2.3(b) - Economic Price Adjustment - CPP agrees to a price adjustment

of 1% of the price of landfill gas beginning on the 5th anniversary from the

commencement date and a flat rate increase of 1% on each subsequent anniversary

Projected Annual Fiscal Impact Statement

CPP will have the right to take all actions reasonably necessary to develop and

operate a power generation facility at no cost to the CCG. CPP will share

revenue from power production with CCG as described in Article 2, section

2.3(b) and 2.4

Legal Considerations

CPP will have exclusive rights to use CCG's landfill gas and shall have

exclusive rights to develop and sell energy obtained from use of CCG's landfill

gas.

Recommendations/ Actions

CCG will remain responsible for compliance with all regulatory requirements

relating to normal operation of the CCG, MSW landfills as well as all reporting

required to satisfy all landfill operational permits.

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