Wheelabrator Technologies Inc A Waste Management Company WastetoEnergy

Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy • Proven Commercial Technology • Environmentally-Sound; Sustainable • Economic Wheelabrator Technologies Inc. A Waste Management Company

Wheelabrator Experience and Qualifications • Wheelabrator – a wholly owned subsidiary of Waste Management – WM has been on island for more than 15 years • Operate 21 facilities – 16 Waste –to-Energy – 609 MW – 5 other energy plants – 227 MW • Over 30 years of operating experience • Serves more than 500 municipalities Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy • A key component of a well developed solid waste management plan • Reduces waste volume by over 90%, conserving landfill capacity while providing renewable energy to the island • U. S. Environmental Protection Agency: Waste-to-energy plants generate electricity “with less environmental impact than almost any other source of electricity. ” Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy Provides More than Just Disposal • Reduces: - greenhouse gases (European Environmental Agency Briefing 01 -2008, ISSN 1830 -2246) - dependence on imported oil • Complements Hawaii’s sustainability goals and recycling Wheelabrator Technologies Inc. A Waste Management Company

Waste to Energy • What would the plant accept? – County municipal solid waste remaining after recycling – confidential documents/records (assured destruction) – Incidental waste tires • What would the plant not accept? – Green waste – Post-sorted recyclables – Hazardous waste – Medical waste Wheelabrator Technologies Inc. A Waste Management Company

Location of Project Wheelabrator Technologies Inc. A Waste Management Company

Waste to Energy Plant (attached to County Sort Station) Wheelabrator Technologies Inc. A Waste Management Company

Waste to Energy Plant (not attached to County Sort Station) Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy Technology Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy Environmentally-Sound Sustainable Wheelabrator Technologies Inc. A Waste Management Company

Environmental Compliance • Highly regulated facility – Oversight would be by: • County • Hawaii Department of Health (multiple branches) • U. S. EPA (multiple branches) • Continuous emissions monitors • Extensive, annual emissions testing with DOH oversight • An initial Environmental Analysis Report to be completed under the initial contract phase. • If project moves forward after initial period, the permit process will occur over 1 -2 year period with much public input Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy Overview • Full time Environmental, Health and Safety specialist at all Wheelabrator facilities • All of Wheelabrator’s facilities certified by OSHA as among the safest worksites in the Country – Voluntary Protection Program Star workplaces – New plants will be, too • All workers are subject to initial and annual health screenings Wheelabrator Technologies Inc. A Waste Management Company

Recently Raised Issues Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy Technology “Old Technology”? ? ? • Constantly improving the Technology – Fourth generation of boiler design since the 1970’s – Reduced maintanence – Improved energy per ton of trash • Collaboration between Wheelabrator and Von Roll (Switzerland) – Von Roll : second largest waste-to-energy vendor in the world – Working relationship for more than 30 years Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy “No one’s building these plants anymore” • Europe - 100 new waste-to-energy plants by 2020 • Finland plans to triple it’s waste-to-energy capacity by 2016 • A new waste-to-energy unit began operation in 2007 in Florida, with another to be completed by 2009 • Expect contracts for three more plants to be issued in US in 2008 Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy and Recycling Wheelabrator Technologies Inc. A Waste Management Company

• Recycling needs to be addressed regardless of Disposal Method chosen by County • Recycling and Waste-to-Energy are NOT mutually exclusive - Waste-to-energy and recycling are compatible and complimentary Wheelabrator Technologies Inc. A Waste Management Company

Wheelabrator Technologies Inc. A Waste Management Company

Waste-to-Energy Economic Wheelabrator Technologies Inc. A Waste Management Company

Economic • Total Cost of Project includes: – Construction Cost – Operating cost (offset by tip fee and electric revenues) • Wheelabrator has estimate of construction cost – working to refine and firm-up guaranteed number • County does not have a firm power price yet – Power Price drives final economics Wheelabrator Technologies Inc. A Waste Management Company

Economics • Waste-to-Energy - higher capital cost - lower operating costs • New Landfill -high capital cost -high, and escalating, operating cost • Trucking to West Side Landfill - low capital cost - high, and escalating, operating cost • Barging to Mainland -low capital cost - high, and escalating, operating cost Wheelabrator Technologies Inc. A Waste Management Company

Impact of Energy Price Increases on Costs of Alternatives • Between 1997 and 2007, oil prices increased at 14% per year. • Increasing oil prices increase the cost of landfilling, trucking and barging. • Increasing oil prices decrease the cost of wasteto-energy Wheelabrator Technologies Inc. A Waste Management Company

Impact of Energy Price Increases on Waste-to-Energy Income Lifetime cost of new landfill is $263 million At 1% increase in energy price, waste-to-energy lifetime cost is $251 million At 3% energy price increase, waste-to-energy lifetime cost is $169 million Wheelabrator Technologies Inc. A Waste Management Company

Finishing the Process • Within 180 days after signing contract: - Wheelabrator refines lump sum capital cost - County negotiates with HELCO on electric sales Both numbers are needed so County can make an informed decision. County can make a “go” or “no go” decision on cost. • Within 270 days after signing contract: - Wheelabrator completes Environmental Analysis Report County makes a “go” or “no go” decision with this information • County can terminate at each step -- at no cost to County Wheelabrator Technologies Inc. A Waste Management Company