Agenda Item #
Columbus Consolidated Government
Council Meeting
06/13/2017
Agenda Report #
TO: Mayor and Council
SUBJECT: Environmental Services Agreement between Columbus Power
Producers, Limited Liability Corporation (CPP) and Columbus Consolidated
Government (CCG).
INITIATED BY: Ron Smith
Recommendation: Permit the City Manager to enter into a contract with
Columbus Power Producers to develop beneficial uses for landfill gas produced
at Pine Grove and Schatulga Road Municipal Solid Waste (MSW) Landfills.
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: Recommend the Council allow the City Manager to enter
into an agreement with CPP to develop and sell landfill gas and share in
revenue earned from the beneficial use of landfill gas. 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.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING The City Manager to enter into a contract with
Columbus Power Producers to develop beneficial uses for landfill gas at Pine
Grove and Schatulga Road Municipal Solid Waste (MSW) Landfills. ____________
WHEREAS, The Columbus Consolidated Government desires to use the landfill gas
produced by Schatulga Road and Pine Grove Municipal Solid Waste Landfills in a
beneficial way which would both be environmentally friendly as well as generate
revenue for the Integrated Waste Fund, and;
WHEREAS landfill gas is a green house gas which is regulated by the Georgia
Environmental Protection Division and as a regulated must be either used or
destroyed to prevent or limit harm to the environment, and;
WHEREAS Columbus Power Producers (CPP) has proposed a beneficial use for
landfill gas as a fuel to generate power and CPP would like to develop this
beneficial use at no cost to the Columbus Consolidated Government (CCG), and;
WHEREAS, CPP agrees to share revenue earned from the production of Electrical
Power with the CCG;___________
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY
RESOLVES AS FOLLOWS: The City Manager be empowered to enter into a contract
with Columbus Power Producers, LLC for the development of a landfill gas
extraction system and beneficial use of said landfill gas
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the
_________day of _____________, and adopted at said meeting by the affirmative
vote of
_____________members of said Council.
Councilor Allen voting __________
Councilor Baker voting __________
Councilor Barnes voting __________
Councilor Davis voting __________
Councilor Garrett voting __________
Councilor Henderson voting __________
Councilor Huff voting __________
Councilor Turner Pugh voting __________
Councilor Thomas voting __________
Councilor Woodson voting __________
________________________ _________________________
Tiny Washington, Clerk of Council , Mayor
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