Florida Public Service Commission Workshop

1
Safe Waste Disposal and Clean Energy Solutions
For Generations To Come.

• Florida Public Service Commission Workshop
• Renewable Electrical Generation
• from Municipal Solid Waste
• Presented by
• Joseph R. Treshler
• Covanta Energy, Inc.

July 26, 2007
2
Introduction

• Highlight the current contribution Energy from
  Waste (EFW) makes to Renewable Energy Production
• Quantify the potential for EFW to provide
  additional Renewable Energy
• Identify vehicles to promote Renewable Energy
  growth
• Background on Covanta Energy

3
The Role of Renewable Electricity Generation in
the United States
Non-Hydro Renewable 2
9 of electrical generation is renewable
3,970,000 GWh
88,000 GWh
Source US Department of Energy, Energy
Information Administration 2004 Report
4
Energy from Waste Generates 34 of the Nations
Biomass Renewable Electricity
Other BioMass 4

• is a leader in renewable generation
• 7,800 GWh produced from Covanta owned and
  operated facilities
• 32 Energy from Waste Facilities
• 6 Wood Waste Facilities
• 6 Biogas Facilities
• Provides nearly 10 of the Nations Non-Hydro
  Renewable Energy

Wood 62
Biomass 67
Energy From Waste
34
Source US Department of Energy, Energy
Information Administration 2004 Report
Total U.S Biomass Renewable Generation
60,000 GWh
5
EfW Technology
EfW is a specially designed energy generation
facility that uses household waste as fuel and
helps solve some of societys big challenges
Clean, renewable electricity Reduces greenhouse
gas emissions Safe, reliable waste disposal
Recover metal, preserves land and Ground water

• Dependence on fossil fuels
• Climate change
• Population growth
• Resource management

6
Industry Overview of Energy from Waste

• US EPA -- EFW disposes of 13 of the nations
  waste
• 89 facilities
• 29 million tons per year
• 36 million people served
• 27 states
• Generation capacity in excess of 2,700 MW
• 16 million MWhrs of renewable power generated
  annually

7
Proven, Utility Grade Technology
Exclusive North American licensee for Martin GmbH
Reverse Acting Stoker Grate technology
successfully processed more refuse worldwide than
any other system available,
8
Floridas Renewable Generation Capacity is Quite
Low
Current FL generation Capacity 51,569 MW
Current FL renewable generation Capacity 1,081 MW
or 2 of the states capacity
Includes 1080.7 MW Renewable Energy Generation
Source FL PSC
9
The Power of EFW in Florida

• One ton of MSW
• Has the energy equivalent of
• One barrel of fossil fuel oil or 10 MCF of
  natural gas!
• EFW is a proven source of Florida renewable
  energy
• Annually Floridians generate 31.2 million tons of
  MSW which is the energy equivalent of 31.2
  million barrels of oil.
• Currently 6.5 million tons (17,900 tons per day)
  of MSW can be processed annually by Floridas 12
  EFW Facilities.
• This eliminates the need for 6.5 million barrels
  of oil or 65 million MCF of natural gas.
• 506 MW of renewable electrical energy is
  generated on a daily basis by Floridas EFW
  Facilities
• Saving annually over 8,125 acre feet of precious
  landfill space through volume reduction.

10
The Environmental Benefits of EFW

• Produces renewable electricity with less
  environmental impact than almost any other source
  of electricity
• US EPA April 14, 2003
• Provides a net reduction in Green House Gas
  Emissions (GHG)
• Displaces CO2 (GHG eqv 1) that would otherwise be
  generated as a result of producing electricity
  from other fossil fuels sources
• Eliminates the release of uncollectible Methane
  (GHG eqv 21) from raw Municipal Solid Waste
  Landfills
• Recycling of the Ferrous and Non-ferrous metals
  recovered following the EFW process avoids the
  GHG emissions that would be associated with the
  smelting of virgin ores

11
More EFW is Being Done

• By 2010, Renewable Energy from Florida EFW is
  planned to increase by 85 MW
• Lee County 20 MW
• Hillsborough County 17 MW
• Palm Beach County 28 MW
• Pasco County 20 MW
• Bringing to 591 MW the EFW Renewable Energy made
  available while processing less than 25 of the
  Florida MSW being generated.

12
More EFW Can Still Be Done

• Over 18 million tons of raw MSW is still being
  landfilled every year in Florida.
• EFW Technology can convert this waste into
  approximately 1130 MW of new Renewable Energy
• A significant number of highly developed areas of
  the State still heavily dependent on land filling
  raw MSW as their primary method of solid waste
  management.
• Orange County 1,820,638 TPY
• Duval County 1,483,456 TPY
• Brevard County 704,476 TPY
• Volusia County 499,242 TPY
• Collier County 477,095 TPY
• Manatee County 343,095 TPY
• Seminole County 303,015 TPY
• Sarasota County 297,421 TPY
• Developing new EFW capacity to manage the nearly
  6 million tons of MSW available from these areas
  alone would increase the States Renewable Energy
  generation by approximately 372 MW while
  increasing our energy independence by the
  equivalent of approximately 6 million barrels of
  oil each year.
• This will only be possible with the right
  incentives

13
Encouraging Florida Renewables

• Current Situation
• 63 of Floridas electrical generation is fueled
  by oil and gas
• Low energy payment rates and contracting
  structures that have been offered since the early
  1990s for new EFW capacity inhibited further
  development
• Florida has no functional wholesale electricity
  markets to support EFW or other renewable energy
  development local utilities are the only buyers

14
Encouraging Florida Renewables

• The Future
• 81 of Florida capacity additions are currently
  proposed to be fueled by oil and natural gas
• Renewables including EFW must be a part of
  changing this future
• Executive Order 07-127 signed by Governor Crist
  at the Climate Change Conference limits allowable
  GHG for electric utilities
• Executive Order 07-127 requires utilities to
  produce substantial additional amounts of
  electricity from renewable sources

15
Encouraging Florida Renewables

• The Future (Continued)
• Recent Supreme Court Ruling United Haulers
  Association Inc. vs. Oneida-Herkimer affecting
  the landmark 1994 flow-control decision in CA
  Carbone vs Clarkstown
• New (and renewed) EFW contracted energy
  generation must be valued based on avoiding the
  most expensive fossil fuels
• Development of a functional and liquid wholesale
  electricity and renewable credit trading markets
  will stimulate growth
• Long-Term fairly priced energy contracts will
  encourage new project financing
• Encourage/require Renewable Portfolio Standard
  (RPS) to encourage the development of new
  renewable energy generation in the state

16
DSIRE www.dsireusa.org


June 2007
Renewables Portfolio Standards
ME 30 by 2000 10 by 2017 goal - new RE
MN 25 by 2025 (Xcel 30 by 2020)
VT RE meets load growth by 2012
WA 15 by 2020

• NH 23.8 in 2025

WI requirement varies by utility 10 by 2015
goal
MA 4 by 2009 1 annual increase
MT 15 by 2015
OR 25 by 2025 (large utilities) 5 - 10 by
2025 for smaller utilities
RI 15 by 2020
CT 23 by 2020
IA 105 MW

• NV 20 by 2015

• NY 24 by 2013

• NJ 22.5 by 2021

• CO 20 by 2020 (IOUs)
• 10 by 2020 (co-ops large munis)

IL 8 by 2013

• PA 18¹ by 2020

CA 20 by 2010
MO 11 by 2020

• MD 9.5 in 2022

NM 20 by 2020 (IOUs) 10 by 2020 (co-ops)

• AZ 15 by 2025

DE 10 by 2019

• DC 11 by 2022

VA 12 by 2022
TX 5,880 MW by 2015
State RPS
HI 20 by 2020
State Goal

• Minimum solar or customer-sited RE requirement
• Increased credit for solar or customer-sited RE
• ¹PA 8 Tier I / 10 Tier II (includes
  non-renewables) SWH is a Tier II resource

Solar water heating (SWH) eligible
17
EFW A Proven Component of Floridas Renewable
Energy Future

• Florida ( 22 other states and Washington DC)
  define EFW as Renewable Energy
• To date 12 states and Washington DC define EFW as
  eligible for Renewable Portfolio Standards
• Efficiently recovers/exports over 550 KWhrs/per
  ton of MSW processed
• EFW is clean - Exceeds requirements of the Clean
  Air Act US EPA
• Most advanced pollution controls of any energy
  generation source
• Reduces landfill requirements in excess of 90
• Eliminates the release of toxic emissions and
  GHGs (especially methane) from raw waste
  landfills
• EFW and recycling are compatible Recycling rate
  of EFW communities exceeds the national average
  by over 5

18
Key Elements of a Successful Renewable Portfolio
Standard

• Establishes clear annual targets that must be met
  by any load serving entity selling electricity to
  end-users in the state (private, public, munis,
  etc.)
• Ensures aggressive targets to foster renewable
  energy innovation and development
• Clearly defines qualifying technologies/fuels
• Allows markets to foster technology development
  without favoring specific technologies or fuels
• Allows Renewable Energy Certificate (REC)
  trading as separate product from traditional
  capacity, energy, and ancillary service produced
  by a generator
• Establishes independently operated entity to
  operate trading markets and monitor/verify REC
  generation, use, and load serving entity
  compliance
• Contains compliance, enforcement, and penalty
  provisions
• Defines Alternative Compliance Payment (ACP) in
  the 50 to 80/MWh range to be paid by any load
  serving entity that does not meet the RPS annual
  target
• Uses the funds generated by the ACP to support
  renewable generation RD and energy efficiency
  programs

19
Florida has a beautiful precious environment
that needs to be protected. This should be our
issueGov. Charlie Crist
20
Additional Information
21
Covanta Energy Corporation

• The 32 EFW facilities Covanta operates
• Dispose of nearly 5 of nations waste
• Process about 15 million tons
• Produce about 1,200 megawatts of clean, renewable
  energy.
• Generate nearly 10 of the Nations Non-Hydro
  Renewable Energy
• In Florida, Covanta operates
• 4 EFW facilities
• Pasco County, FL
• Hillsborough County, FL
• Lee County, FL
• Lake County, FL
• These facilities
• Process over 1.25 million tons per year of MSW
• Generate about 114.5 megawatts per hour

22
EFW Energy is Renewable Energy
Municipal Solid Waste (MSW) is a sustainable
resource for local power

• MSW is biomass.
• EFW efficiently converts energy value of MSW to
  electricity and/or steam
• EFW contributes to fuel diversity
• EFW facilities are located near power users,
  increasing cost efficiency.
• EFW avoids vehicle fuel consumption/emissions
  associated with increasingly distant
  transportation to landfills.
• EFW avoids landfill greenhouse gases and toxic
  emissions

23
EFW A Success Story
Upgrading of the emissions control systems of
large combustors to exceed the requirements of
the Clean Air Act Section 129 standards is an
impressive accomplishment. The completion of
retrofits of the large combustion units enables
us to continue to rely on municipal solid waste
as a clean, reliable, renewable source of energy.
With the capacity to handle approximately 15
percent of the waste generated in the US, these
plants produce 2,800 megawatts of electricity
with less environmental impact than almost any
other source of electricity. -- letter to IWSA
from Assistant Administrators Jeff Holmstead and
Marianne Horinko, US EPA February 2003