News

Welcome to the Spring 2009 issue of the LMOP Gasette!

• Feature Articles
  • LFG and the Economic Stimulus Bill
  • POET Ribbon Cutting in South Dakota
  • LFG Energy Project Milestones
  • LMOP Outreach Activities in KS & NE
  • EPA Proposes First National Reporting on Greenhouse Gas Emissions
  • RGGI Landfill Offset Filing
• Funding Opportunities
• Online Resources
• Methane to Markets
• New LMOP Partners
• How to Contact LMOP

Many of the sites listed on this page are not on the EPA Web site.
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FEATURE ARTICLES

LFG and the Economic Stimulus Bill

The American Recovery and Reinvestment Act of 2009 (ARRA), enacted in February 2009, contains significant financial incentives for state and local governments to implement “green” projects. Experts estimate that the Act directs $71 billion to the development of clean energy. In order to help our Partners leverage the renewable energy provisions to develop LFG energy projects, LMOP developed a fact sheet titled “Federal Incentives for Developing Landfill Gas Energy Projects (PDF).” (7 pp., 160 KB, About PDF) Key ARRA provisions affecting LFG energy include:

• Additional Funding for Clean Renewable Energy Bonds (CREBs) and Qualified Energy Conservation Bonds. Adds an additional $1.6 billion and $800 million respectively to these two bond authorizations.
• Extension of Production Tax Credit (PTC) In-service Deadline. LFG energy projects need to be completed by the end of 2013 to be eligible.
• Option to Elect an Investment Tax Credit (ITC) in Lieu of PTC. Developers of LFG energy facilities installed in 2009 through 2013 can opt for a one time 30 percent ITC instead of receiving the PTC.
• Choice to Elect a Cash Grant in Lieu of ITC. A new short-term program, administered by the U.S. Department of the Treasury, to provide a grant covering up to 30 percent of the tax basis for the facility in lieu of receiving an ITC.
• Advanced Energy Manufacturing Tax Credit. Authorizes the Department of the Treasury to issue $2.3 billion in investment tax credits to encourage the development of renewable energy manufacturing. The Department, in consultation with the Department of Energy (DOE), will develop program guidelines.
• Grant Money Provided for Renewable Energy and Energy Efficiency. DOE is distributing money under the Energy Efficiency and Conservation Block Grant (EECBG) Program and the State Energy Program, most of which will be directed to State Energy Offices for redistribution to local governments. (EECBG also includes a competitive grant component.)

LMOP has identified a number of resources that may assist developers and landfill operators interested in learning more about these potential financial incentives. They include:

Reports and Analyses
Congressional Research Service, Energy Provisions in the American Recovery and Reinvestment Act of 2009, March 3, 2009.

EPA State and Local Branch, American Recovery and Reinvestment Act of 2009: State and Local Guide to U.S. EPA Climate Energy Program Resources (PDF) (29 pp., 834 KB), March 12, 2009.

Lawrence Berkeley National Laboratory and National Renewable Energy Laboratory, PTC, ITC, or Cash Grant? An Analysis of the Choice Facing Renewable Power Projects in the United States (PDF) (21 pp., 476 KB), March 2009.

Webcasts and Presentations
EPA State and Local Branch, Using EPA Resources to Maximize Clean Energy in Economic Recovery Spending Webcast, March 5, 2009.

Doug Lamb, Hunton & Williams, Economic Stabilization Act - Energy Tax Credit Bond Provisions (PDF) (32 pp., 432 KB), LMOP Conference, January 2009.

Web sites
EPA Recovery
EPA State and Local Climate and Energy Economic Recovery Resources
DOE State Energy Program
DOE Listing of State Energy Offices
ICLEI Economic Recovery Funding Updates

POET Ribbon Cutting in South Dakota

A successful LFG energy project was the result of LMOP Energy Partner POET's and LMOP Community Partner Sioux Falls Regional Sanitary Landfill's hard work and cooperation. Swarupa Ganguli, LMOP, joined with POET CEO Jeff Broin, City of Sioux Falls Mayor David Munson, and many others for this ribbon cutting on March 27, 2009, at the Sioux Falls Regional Sanitary Landfill in South Dakota. This is one of only three projects in the country in which LFG is used in the production of ethanol. Currently, POET uses approximately 1,250 standard cubic feet per minute of LFG captured at the landfill. The gas is transported via a 10-mile pipeline to POET’s ethanol plant.

Celebrants cutting the ribbon for the POET LFG energy project at the City of Sioux Falls, South Dakota landfill in March 2009.

The City of Sioux Falls will benefit from the revenue generated through the sale of LFG and carbon credits that are associated with the destruction of methane. The environmental benefits of this project include both direct methane emissions as well as the offsetting of fossil fuels.

LFG Energy Project Milestones

Florida
On January 17, 2009, Highlands County, Florida began operating the first government owned and operated asphalt plant in Florida at its landfill. The plant is currently running on approximately 25 percent LFG and the county plans to reach 100 percent LFG utilization in the future. The plant is able to run at different speeds, so operators can vary asphalt production to LFG availability, allowing them to minimize the use of fuel oil. The landfill is expected to produce enough methane to aid production of 1,060 tons of asphalt per day. Florida’s Innovative Recycling Grant Program provided a $1.65 million grant to cover half the project costs.

Sources: Trey Christy, “County’s Asphalt Plant Now Using Landfill’s Methane Gas to Operate,” The News Sun, February 17, 2009, and Jim Konkoly, “County Asphalt Plant is Almost Ready,” Highlands Today, October 10, 2008.

Georgia
Earlier this year, Renewable Solutions Group and LMOP Industry Partner Republic Services, Inc. announced the opening of Winder Renewable Methane Facility—Georgia’s first high Btu LFG facility. LFG collected from Republic Services’ Oak Grove Landfill near Atlanta is processed and sold as pipeline-quality gas. The facility can produce up to 2,500 million Btu (MMBtu) per day of gas for sale. At design capacity, the facility will produce about 1 million MMBtu each year. The Municipal Gas Authority of Georgia purchases the gas as a locally produced, cost-effective source of renewable energy for its residential and commercial customers.

Source: Renewable Solutions Group, “Renewable Solutions Group and Republic Services of Georgia Commences Gas Deliveries from High Btu Landfill Gas Project in Georgia,” January 13, 2009.

Ohio
On March 5, 2009, Bellefontaine Gas Producers LLC began operating its LFG energy project at the LMOP Industry Partner Republic Services-owned Cherokee Run Landfill in Bellefontaine, Ohio. The renewable energy project is owned by Bellefontaine Gas Producers LLC, which is a joint venture between LMOP Industry Partners DTE Biomass Energy and Shaw Environmental, Inc. The project utilizes three Caterpillar engines with a generation capacity of 4.8 megawatts (MW) and plans to sell energy produced at the facility to PJM Interconnection regional transmission organization under a long-term power sales agreement.

Sources: DTE Energy, “DTE Biomass Energy Project Begins in Ohio,” March 5, 2009, and Energy Current, “Ohio Landfill Gas-to-Energy Project Fired Up,” March 6, 2009.

LMOP Outreach Activities in KS & NE

On March 24-26, 2009, LMOP participated in the 2009 Kansas Works Conference on recycling, composting, and household hazardous waste. The event was organized by Kansas Department of Health and Environment (KDHE), which became an LMOP State Partner in 2007. This was the first year that the conference had a technical track focused on LFG, which was well attended by approximately 50 people. Sam Sunderraj of KDHE, Swarupa Ganguli of LMOP, Lori Hamburg of LMOP Industry Partner SCS Engineers, Mike Tabor of LMOP Community Partner Seward County, Kansas, and Cynthia Mitchell of LMOP Endorser Midwest Assistance Program presented during the LFG track of the conference. LMOP also networked with local landfill regulators and operators to discuss how the program can assist with LFG energy project development in their communities. While in Kansas, the LMOP team joined Sam Sunderraj of KDHE in conducting landfill site visits to Barton County Landfill, APAC-Reno Landfill, Johnson County Landfill, Allen County Landfill, Butler County Landfill, Reno County Landfill, Ford County Landfill, Finney County Landfill, Seward County Landfill (2009 LMOP Community Partner Award Winner), and the City of Salina Landfill.

The Midwest LMOP team also visited some former Project Expo Sites in Nebraska with representatives of the Nebraska Department of Environmental Quality (NDEQ) and EPA Region 7 Regional Coordinators Gayle Hubert and Nicole Cruise. Sarpy County Landfill in Springfield and Bluff Road Landfill in Lincoln were visited and both landfills are in the process of determining the best LFG energy projects for their sites.

EPA Proposes First National Reporting on Greenhouse Gas Emissions

On March 10, 2009, the U.S. EPA proposed the first comprehensive national system for reporting emissions of greenhouse gases produced by major sources in the United States. The proposed rule (40 CFR 98) would apply to suppliers of fossil fuel and industrial chemicals, manufacturers of motor vehicles and engines, as well as large direct emitters of greenhouse gases with emissions equal to or greater than a threshold of 25,000 metric tons per year. This threshold is roughly equivalent to the annual greenhouse gas emissions from just over 4,500 passenger vehicles. The vast majority of small businesses would not be required to report, because their emissions fall well below the threshold. Approximately 13,000 facilities, accounting for about 85 to 90 percent of greenhouse gases emitted in the United States, would be covered under the proposal.

For more information on how the proposed rulemaking affects the landfill industry, please visit EPA's Web site. The following information is available on the Web site:

• Preamble and proposed mandatory greenhouse gas reporting rule text
• Information sheets for each of the source categories covered in the proposed rule
• Answers to frequently asked questions
• Information on the public comment period, including directions for submitting written comments

The proposed rule was published in the Federal Register on April 10, 2009. The public comment period closes on June 9, 2009. Instructions for providing comments are available on EPA’s Web site.

RGGI Landfill Offset Filing

The Regional Greenhouse Gas Initiative (RGGI), an agreement among ten states in the Northeast, establishes a market-based cap-and-trade program to reduce carbon dioxide emissions from the region’s fossil fuel powered plants. RGGI requires the utilities in the region to cap their carbon dioxide emissions at current levels until 2014, and cut emissions by 10 percent by 2018. Beginning this year, utilities will have three years to buy allowances equal to their emissions. Each state is allocated a certain amount of carbon dioxide allowances, which they can distribute per their state rules. According to RGGI Inc., a nonprofit organization supporting the RGGI states, approximately 85 percent of the allowances have been auctioned to date. In the March 2009 auction, the allowance clearing price was $3.51.

Under the terms of RGGI, electricity generators can purchase offset allowances to meet up to 3.3 percent of their total emissions. Provisions triggered with high allowance prices also allow more offsets to be used for compliance. Landfill methane capture and combustion qualifies as an eligible offset creation mechanism; however, offsets must meet a standard of being real, surplus, verifiable, permanent, and enforceable. Key requirements for landfill offsets are:

• Eligible projects are limited to non-New Source Performance Standard landfills.
  
  
• For projects with an electric generation component, project sponsors must transfer the legal rights to any attribute credits (e.g., renewable energy) generated (except RGGI offset allowances) to the state regulatory agency.
  
  
• Applications are due no later than six months after project initiation (exception for projects undertaken between December 20, 2005 and December 31, 2008, which need to apply by June 30, 2009).

At the January 2009 LMOP Conference, Christopher Sherry from the New Jersey Department of Environmental Protection spoke about RGGI. Interested readers can view his presentation to learn more about offset criteria.

FUNDING OPPORTUNITIES

Madison County, New York, Deadline: May 4, 2009
Madison County has issued a request for proposals (PDF) (37 pp., 7 MB) from companies that are interested in developing a facility in the County’s Agriculture and Renewable Energy Park. The facility will utilize approximately 438,000 therms per year of excess heat generated by an LFG energy facility located at the County’s landfill in the Town of Lincoln. The proposer will be responsible for identifying a proposed location for the excess heat utilization facility and operating all pipelines and ancillary facilities required to move the excess heat from the LFG energy facility tie-in point to the excess heat utilization facility.

Blue Sky Community-Based Renewable Energy Projects, Deadline: May 15, 2009
Through the Blue Sky program, Pacific Power and Rocky Mountain Power are offering funding for eligible renewable energy technologies, such as LFG energy projects that generate electricity, to advance small and medium sized community-based renewable energy projects. These projects must be located in either Rocky Mountain Power (parts of Utah, Wyoming, and Idaho) or Pacific Power (parts of Oregon, Washington, and California) service areas. Projects can be funded up to 100 percent of the total project costs, but need to be locally owned, have a capacity of less than 10 MW, be interconnected to the utility grid, and expect to be operational within two years of the receipt of funding. Installations that provide direct financial benefit to a for-profit-business will only be considered if it is a Blue Sky participant (i.e., purchases a certain level of renewable power from the utility).

U.S. DOE Energy Efficiency and Conservation Block Grant Program, Direct Formula Grants, State Deadline: May 26, 2009; Local Government Deadline: June 25, 2009
On March 26, 2009, the U.S. DOE released guidance and allocation amounts for entities eligible for direct formula Energy Efficiency and Conservation Block Grant (EECBG) grants. The list of eligible entities is available on the DOE Web site. This money can be used to fund projects that reduce energy use and fossil fuel emissions, including the purchase and implementation of technologies to reduce, capture, and use methane generated by landfills. Each state that receives a grant under the program is required to redistribute at least 60 percent of the amount received to provide subgrants to units of local government that are not eligible for direct formula grants. Contact your State Energy Office to request information on your state’s plan for awarding subgrants under the EECBG program.

To obtain a copy of the DOE funding opportunity announcement, which contains complete information for grantees on the program and application process, go to FedConnect and search for Reference Number DE-FOA-0000013. For general questions regarding the EECBG Program, call 1-877-EERE-INFO between 9 a.m. and 7 p.m. EPT, Monday-Friday.
 
In addition the direct formula grants discussed in the March 26, 2009 announcement, DOE will issue a future request for proposals related to the competitive grant part of the program. All cities and counties will be eligible to apply for these grants regardless of population.

Annapolis Renewable Energy Park, Deadline: May 26, 2009
The Northeast Maryland Waste Disposal Authority, on behalf of the City of Annapolis, Maryland, is seeking a developer to join in a public-private partnership for the development of the Annapolis Renewable Energy Park using the practical application of alternative fuels and renewable energy generation on a 500-acre parcel located near the City. The parcel includes two closed landfills. The developer will be responsible for the project development, including ownership, financing, permitting, construction, operations, and energy marketing. The Solicitation of Interest and associated documents are available online on the Authority's Web site. A non-refundable evaluation payment in the amount of $1,000 is due with the response.

Pennsylvania Energy Development Authority, Deadline: May 29, 2009
The Pennsylvania Energy Development Authority (PEDA) is offering grant funding for clean, alternative energy projects, including those that involve biologically derived methane gas, such as LFG. All proposed projects must include a research component. Preference will be given to projects that have matching funds, can demonstrate revitalization or redevelopment of brownfields, or the expansion of businesses and job growth. Additionally, since the money comes in part from the ARRA, projects must begin within 120 days of the grant agreement and be completed within 18 months. PEDA can also provide funding for businesses interested in locating or expanding their alternative energy manufacturing or production operations in the Commonwealth. PEDA will consider grant applications for amounts up to $1.5 million. Funding for projects may be used for capital equipment, construction associated with capital projects, and land acquisition. A total of $21 million is available under this solicitation.

Wisconsin Focus on Energy Grant, Deadline: May 29, 2009
Focus on Energy works with eligible Wisconsin entities to install cost-effective renewable energy projects. They recently released a request for grant proposals for renewable energy projects, including LFG energy, which produce electricity, thermal energy, or biogas/methane. The grant is intended for those systems that generally cost more than $2 million but less than $5 million. The individual grants are capped at $500,000 and cannot exceed 25 percent of the cost of the renewable energy system. Businesses, organizations, institutions, and federal, state, county, local, or tribal governments and residents are eligible for Focus on Energy incentives if their renewable energy system will displace electricity or natural gas use and the applicant purchases the displaced energy from a utility participating with Focus on Energy.

Arizona Public Service Company, Deadline: June 4, 2009
Arizona Public Service Company (APS) is seeking competitive proposals for renewable energy totaling 45,000 megawatt-hours (MWh) annually from small generation resources to meet the requirements of APS' Small Generation Pilot Program. Eligible renewable technologies include LFG energy. APS is not seeking distributed energy resources in this solicitation. The minimum project size is 1,500 MWh per year and the commercial operation date must be no later than December 31, 2011. A non-refundable submission fee of $2,000 per respondent is required in order to qualify proposal(s) for consideration.

Los Angeles Department of Water and Power, Next Deadline: June 25, 2009
To help reach its Renewable Portfolio Standard goal, LMOP Energy Partner Los Angeles Department of Water and Power (LADWP) is seeking proposals to acquire approximately 1,000 gigawatt-hours per year of energy and dependable capacity from eligible renewable resources. LADWP prefers proposals that offer immediate facility ownership, or Power Purchase Agreements (PPAs) that offer an early facility ownership option. LADWP will also consider ownership of undeveloped sites, in which the sites could be fully permitted and the resource fully assessed before this request for proposals expires, as well as traditional PPAs in which the owner of the renewable facility will sell the energy output to LADWP.

LADWP will consider proposals from new and existing renewable energy projects, including LFG energy. The minimum project size for some of the categories, including LFG, is 1 MW. LADWP will consider projects located within the Western Electricity Coordinating Council area that are able to deliver energy to an approved delivery point on the LADWP system. Proposals will be accepted by LADWP on a rolling basis at any time until March 11, 2010. The request for proposals and associated documents can be downloaded from the LADWP Web site.

Colorado Carbon Fund, No Deadline
The Colorado Carbon Fund provides high-quality carbon offsets for sale to individuals,
businesses, and government agencies interested in mitigating their carbon footprint. The organization is currently recruiting innovative greenhouse gas offset projects, of which LFG capture with energy recovery is eligible. The Climate Trust, in partnership with the Governor’s Energy Office, is responsible for evaluating and contracting to buy the emission reductions from projects in Colorado. More details regarding the requirements of the offset generation are provided on the Colorado Carbon Fund Web site.

ONLINE RESOURCES

More Questions and Answers on LMOP Web Site
In response to questions from its Partners and the public, LMOP expanded the frequent question section on the LMOP Web site to answer 10 common queries, such as:

• Do LFG energy projects conflict with waste diversion?
• How do flaring LFG and LFG energy projects compare with regard to controlling fugitive emissions?
• Do "wet cell" landfill practices increase greenhouse gas emissions?

If you have suggestions about other questions LMOP should add, contact LMOP.

U.S. Greenhouse Gas Inventory Report
In April, EPA released its 2009 report entitled, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007. In 2007, landfills were the second largest anthropogenic source of methane emissions in the United States, behind enteric fermentation. The report, which analyzes sources of greenhouse gas emissions, found that overall greenhouse gas emissions during 2007 increased by 1.4 percent from the previous year. The report contains a section on LFG which states that net 2007 methane emissions from landfills were approximately 10 percent lower than 1990 levels. This net decrease is the result of increases in the amount of LFG collected and combusted, which has offset the additional methane generation resulting from an increase in the amount of municipal solid waste landfilled during the timeframe. Congratulations to LMOP Partners for contributing to this reduction!

LFG and the Ceramic Industry
In January 2009, Ceramic Industry published a report entitled, “Harnessing a Renewable Energy Resource.” The report, written by Rachel Goldstein of LMOP and Chad Leatherwood of SCS Engineers, an LMOP contractor, highlights the use of LFG in the ceramic industry. Given the current economic climate, energy costs and energy conservation are becoming increasingly important to ceramic manufacturers. The report describes various LFG applications in the industry. Examples of facilities utilizing LFG energy include two LMOP Award winning projects: LMOP Energy Partner Jenkins Brick in Alabama and EnergyXchange Renewable Energy Center in North Carolina.

METHANE TO MARKETS

Landfill Subcommittee Meeting
In January 2009, the Methane to Markets Partnership held its Partnership-wide meeting in Monterrey, Mexico. Participants interested in landfills spent the first day touring the SIMEPRODESO Landfill near Monterrey. This LFG energy project was the first biogas recovery and electricity generation project in Latin America and provides electricity to the regional subway system, the governor’s mansion, and several other government buildings.

After touring the landfill, participants heard technical case studies from landfill operators and Project Network members from Mexico and Argentina. Representatives from the Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT) shared their experiences with recovery and use of methane as a clean energy source, and the Landfill Gas Modeling Panel reported on their experience using the LMOP’s new Mexico and China Models. The last day of the conference focused on the Landfill Subcommittee’s administrative agenda.

Mexico
On March 26 and 27, 2009, LMOP traveled to Mexico to hold a training workshop on the updated Mexico Landfill Gas Model. The Model was first developed by LMOP in 2003 as a tool to help landfill owners and operators, end users of LFG, and other interested parties evaluate the feasibility and potential benefits of collecting and using LFG for energy recovery in Mexico. LMOP collected additional field data and applied advanced modeling techniques to update and refine the Mexico Landfill Gas Model. The workshop introduced the new model and featured training exercises on how to use it. After the workshop, participants toured the HASAR Landfill and biogas project in Guadalajara.

NEW LMOP PARTNERS

LMOP welcomes the following new Partners:

To learn more about these Partners, please visit the Partner page on the LMOP Web site.

HOW TO CONTACT LMOP