Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

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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