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HomeMy WebLinkAbout1995-04-24 95-193 RESOLVECOUNCIL ACTION Item No. 95-193 Date Item/subject: Supporting Passage of LD 447 to Permit Expansion of Sawyer Landfill in Hangtderi, Maine Responsible Department: ExeCUtive/Legal The Municipal Review Committee, Inc. (MRC) has requested titer cities and towns utilizing the Penobscot Energy Recovery Company (PERC) Consider endorsing LD 447. This proposed bill would allow the Sawyer Environmental Recovery Facility to explore the passibility of expanding its operation on land it presently owns adjacent to its Hampden site. Currently, Sawyer provides for the disposal of ash and front-end process residue from PERC's Operations. The bill is not approval for the expansion of the landfill. It merely allows the Sawyer facility to apply for a permit. Under current ent State law, they are barred from a applying for a permit because they did not own the property prior to September 30, 1989. The bill would move the September 30, 1989 date back to December 30, 1989, thus allowing for the permit application process to proceed. The parcel became Sawyer property in November, 1989. New landfill capacity for front-end waste i ial a existing disposal options at favorable disposal rates will probably end in the fall. Without a site near the plant, costs for trucking and disposing of the waste will increase significantly for all communities, including Sanger. , /Ami Department Head Manage 's Crnmments: INI n XjNo J> *'Cilrow/ �r nwur%{ijop>./»/ 0j .2 t' nsr / X 14 1V/k'/ Cpl frr�l l✓ �/v�/ p O /I/ /n✓ qv //C /lf/I `O� &)W City Manager Associated %rf+ik%7tion 0#W 1414'/nAl"I' kiw6j k -.!K Finance Director Legal Approval: (OVncdsr} COWn And Tyler Um6,e a tnn%lits 4 !0"f on {Ws iNm. Cicv solvc'[or Introduced For x Passage First Reading Referral to Muni Ops Page _ of Assigned to Councilor Blanchette April 24, 199595-193 CITY OF BANGOR NTLEJ �gl I Support ng pa aage oe LD 447 (117th Leg el tore, �E$p ................. _. _._ _._... .______. First Regular Session) to Permit Expansion of Sawyer Landfill in Hampden, Maine By de City Ccuma3 d all ofBanmr. RESOLVED, WHEREAS, the City of Bangor is one of 90 so-called "Charter" municipalities which are parties to legally binding Put -or -Pay waste disposal agreements with the privately owned waste -to -energy solid waste incineration facility known as the Penobscot Energy Recovery Company (FERC); and WHEREAS, under its agreement with PERC, the City of Bangor is obligated to deliver or cause to be delivered some 27,000 tons per year of municipal solid waste to the PERC facility in Orrington, Maine; and WHEREAS, PERC incineration of Bangor's municipal solid waste requires PERC t0 dispose of some 8,600± tons of resulting ash and front-end process residue per year; and WHEREAS, an additional 60 communities also have similar long-term contracts with PERC whose tonnage, when combined with that of the Charter Municipalities, totals 200,000 tons of the 248,000 tons processed at PERC in 1994; and wHEREAs, the processing of waste at PERC requires the support of ash and front-end process residue disposal facilities to handle that waste which totals some 64,000 tons generated by the charter and longterm contract municipalities; and WHEREAS, state law requires each municipality to provide for disposal facilities for solid waste emanating from normal c tial and residential sources within the municipality; and 95-193 WHEREAS, known disposal options for PERC-generated front-end NOW, THEREFORE, in consideration of the foregoing, the City of Bangor, by its City council, resolves to inform the legislature of the needs of our residents and of our businesses and to explicitly state that this Council supports the passage of LD 447 and believes the baseline criteria for considerations for any and all proposed construction or expansion of solid waste facilities are cost effectiveness and environmental soundness, and the passage of this legislation works toward that end. process residue are only available until October of 1995; and WHEREAS, it has been estimated that failure to find a cost effective disposal solution for front-end process residue will coat the 90 MatterMunicipalitiesin excess of $1,000,000 per year; and WHEREAS, the State and municipal governments have a joint duty to the taxpayers to provide cost effective meansof waste management in general, and in particular the state through the Maine Waste Management Agency has assumed the duty of providing future ash capacity to be potentially utilized by the State's waste -do -energy facilities totalling a public investment of $350,000,000; and WHEREAS, the existing disposal capacity for PERC-generated ash i finite with about seven years of life remaining with the current disposal option; and _ WHEREAS, the Charter Municipalities have developed a cost effective contractual arrangement with the PERC facility, that facility represents a $100,000,000 investment, and cost effective means of ash and front-end process residue disposal are a critical variable in maintaining the overall cost effectiveness of the PERC facility; and WHEREAS, we are familiar with the scope and content of DO 229, an Act to Abolish the Maine Waste Management Agency and LD 447, as Act Regarding Expansion of Certain Waste Disposal Facilities now pending; and WHEREAS, proximity to the PERC plant is a critical variable i determining the overall cost effectiveness of a given disposal option; and WHEREAS, the Maine Waste Management Agency maintains a overall state waste management plan and is actively pursung the development solid waste disposal capacity; NOW, THEREFORE, in consideration of the foregoing, the City of Bangor, by its City council, resolves to inform the legislature of the needs of our residents and of our businesses and to explicitly state that this Council supports the passage of LD 447 and believes the baseline criteria for considerations for any and all proposed construction or expansion of solid waste facilities are cost effectiveness and environmental soundness, and the passage of this legislation works toward that end. IN CITY COUNCIL April 34, 1995 Passed C a for 7yIer �Abst`ained CAN Em 95-193 R E 5 0 L V E Supporting Passage of LD 447 (117th Legislators, First Regular Session) to. Permit Expansion of Sawyer. Landfill i Renpden, Y�y(�P 95-193 117th MAINE LEGISLATURE FIRST REGULAR SESSION -1995 Legisksive Dansmeot ... .. - - No. 447 H.P. 326 House of Representafives, February 8,1995 "Aap Rkgmdmgthe P.xpaosovoffiamio Waste Deposal Facilitin. Received by the Clerk of We House on February 6,1995. Referredd to the Committee on " National Resources and ordered printed pursuant to Joint Rule 14 410- OVJ SHPH W. MAYO, Clerk presented by Representative GOULD of Greenville. Cosponsored by Representeives: MARSHALL of Hbot, POULIN of Oakland. e mmma..N 2 4 6 e 10 is 14 16 18 20 22 24 26 28 30 32 34 Be it enacted by the People of the State of Maine as follows: Sec. 1. 38 MRSA §1310-X, sub -§3, 113, a repealed and replaced by PL 1991, C. 241, §1, i amended to read: B. The department determines that the proposed expansion contiguous with the existing facility and is located on property owned On December 31, 1489 bythe licensee OR 6aP6ewbee-d0.--}9P9or by a gQ129ratJon Of other business and STATEMENTOFFACT Currently, the Department of Environmental Protection may approve Ua expansion of istingcnm. ial solid waste disposal facility biomedical waste disposal- treatment facility undercertain limited circumstances. To eider such an expansion of a existing facility, the facility had to have been licensed prior to October 6, 1909: the expansion must be on lend contiguous with the facility and on property .awned by the licensee on September 30, 1989) and Me expansion must meet the needs criteria of the state plan regarding solid waste management. This bill mends the current law by allowing the Department of environmental Protectiontona sider proposal for the expansion Of existing facility if the expaisionrs to be located c contiguous property owned by the licensee, r by a corporation or other business entity under common Ownership o control with the licensee, on December 31. 1989 rather than o September 30, 1989. All other existing limitations onexpansions well as the existing r ev and approval processes will remain in place. Page 1-LSO777(1) L.O.44g EATON, PEABODY, BRADFORD IS LEAGUE, P.A. ATTORNEYS AT LAW FLEET CENTER -EXCHANGE STREET TO, BOX 1210 BANGOR, MAINE 04402.1210 FAX CAR 942 30*0 R6lar0_23, 1995 MAP [ 4 1995 OR MANASSi'S OFRCE Dear Town Manager/Municipal Officer: 95-193 I am writing you in my capacity as counsel to the Municipal Review Committee, Inc., regarding proposed solid waste legislation that is pending before the Natural Resources Committee of the Maine legislature. , More particularly, the nine member Board of Directors of the- MRC (with one abstention) passed a Resolve favoring the enactment of L.D. 447, the effect of which would allow Sawyer Environmental Recovery Facility (SERF) to investigate the expansion of its;. - landfill capacity in Hampden. SERF provides disposal services for the ash produced from the operations of the waste to energy plant of Penobscot Energy Recovery Company (PERC) in Orrington. SERF also provides for the disposal of front end process residue (FSPR) from PERC's operations. The reasons for supporting the passage of L.D. 447 are set forth in the Resolution of the MRC Board and were amplified by my testimony before the Committee last week. Copies of the Resolution and By testimony are enclosed, as well as the testimony of Mr. Sawyer. The bill is sponsored by the Committee Chairman, Representative Gould of Greenville. The Board weighed the interests of its 90 member communities and considered the opposition of the Town of Hampden whose town council voted 5-1 to oppose the legislation. Also enclosed are copies of Hampden's Resolution and an accompanying letter from the Town Manager of Hampden addressed to the Committee Co -Chairman, Senator Lord. The MRC Board concluded that it had a responsibility not to stand on the sidelines. It views its membership as one large community which generates 165,000 tons of waste annually which i processed by PERC. The Board is charged with the responsibility of interfacing with PRBC, monitoring its operations and assisting PERC 1111. 11 311111 A I.TlIH ""In 1, AMv JOHN M, MONAHAN 'HOMES 0 AMI FEARS AL DART STIFFEN 9, MONALL MEMO WELL LIME MIAMI TONS ""'All 1. 1 'All" GIONFUL A TELLS" ALLISON CALMER LOSE 111. A, MIAMI BLAME MEAN FAX CAR 942 30*0 R6lar0_23, 1995 MAP [ 4 1995 OR MANASSi'S OFRCE Dear Town Manager/Municipal Officer: 95-193 I am writing you in my capacity as counsel to the Municipal Review Committee, Inc., regarding proposed solid waste legislation that is pending before the Natural Resources Committee of the Maine legislature. , More particularly, the nine member Board of Directors of the- MRC (with one abstention) passed a Resolve favoring the enactment of L.D. 447, the effect of which would allow Sawyer Environmental Recovery Facility (SERF) to investigate the expansion of its;. - landfill capacity in Hampden. SERF provides disposal services for the ash produced from the operations of the waste to energy plant of Penobscot Energy Recovery Company (PERC) in Orrington. SERF also provides for the disposal of front end process residue (FSPR) from PERC's operations. The reasons for supporting the passage of L.D. 447 are set forth in the Resolution of the MRC Board and were amplified by my testimony before the Committee last week. Copies of the Resolution and By testimony are enclosed, as well as the testimony of Mr. Sawyer. The bill is sponsored by the Committee Chairman, Representative Gould of Greenville. The Board weighed the interests of its 90 member communities and considered the opposition of the Town of Hampden whose town council voted 5-1 to oppose the legislation. Also enclosed are copies of Hampden's Resolution and an accompanying letter from the Town Manager of Hampden addressed to the Committee Co -Chairman, Senator Lord. The MRC Board concluded that it had a responsibility not to stand on the sidelines. It views its membership as one large community which generates 165,000 tons of waste annually which i processed by PERC. The Board is charged with the responsibility of interfacing with PRBC, monitoring its operations and assisting PERC 95-193 Town Managers March 22, 1995 Page 2 to meet its obligations to the MRC communities PERC cannot function over the long haul without adequate ash and REBA disposal capacity. In our region, various towns carry various regional burdens. Bangor provides water to s unities including Hampden. it provides ewer to Hampden. communities is the host of 160 communities via PERC. Bangor is host to 200communities via the medical center and Bangor International AirporOrono is host to the entire state when it supports and serves the University. Since the advent of PERC's waste to energy plant, many of the burdens or potential nuisances n Hampden as the host community of the landfill have been alleviated. It no longer receives municipal solid waste including raw garbage, which nos deposited inside the PERC plant in Orrington for processing. Thenow a tient odors, birds and other nuisance aspects of such a MSW landfill are history. The trucks at the I-95 interchange going to SERF is only 1% of the total traffic cunt and makes up only ] 1/2% of the traffic volume on the one-half mile stretch on the Emerson Mill Road in Hampden - proximate to I-95. (Included in these counts are logging and other non -solid waste haulers using SERF's scales.) Basically, SERF concentrates on the needs of PERC. Both of them concentrate on meeting the needs of the 160 communities in Maine which they serve well. SERF's volume is 99.5% from instate sources. PERC's volume i 99% instate. Much of the public does not appear to understand (and some people do not want to understand) that the capacities of these two private providers overwhelming in fact and i operation are dedicated to the needs of the State of Maine so long as Maine chooses to use them. Remember Presently, the member c smunities have a coat effective, cost preventative system which literally is paying dividends (i.e. a rebate is due from PERC shortly). Tipping fees at PERC are the lowest in the State. I£ PERC losses control of its disposal costs, the increased testa will be passed through to the communities. Please do review the information contained in the MRC Resolve and the testimony. Please note that L.D. 949 isnot an approval of a landfill expansion. It simply allows SERF to apply for a permit. An extensive review process and approval by the USE, Maine Waste Management Agency and the Town of Hampden would be required. 95-193 Town Managers March 22, 1995 Page 3 You are invited to contact Your legislators and members of the Natural Resources Committee. A listing of the Committee members is enclosed. If your council or board wishes to pass a Resolve, it may want to use the enclosed Resolve of the Town of Levant as a model and forward the Resolve, duly certified, to Representative Gould, Chairman of the Natural Resources Committee, at State House Station 82, Augusta, ME 04333, as well as to the State legislative representative of your municipality. If you have any questions or comments, please call the NEC President, Gerald Kempen (Orono Town Manager at 866-2556); Greg Lounder (Clerk of the MRC at 942-6389) or myself. Very truly yours, Thomas M. Brown TMH:np Enclosure Municipal Review Committee M Sm 2579 • saaw. wm 04402.x5". POPP42 5x5 • s=90IP4z.asas I' IELA.1i Resolution: to recognize the need for and to support efforts to pursue the attainment of additional disposal capacity for Front End Process Residue and Incinerator Ash generated as by-products of the waste -to-energy process at the Penobscot Energy Recovery Company plant in Orrington, Maine. Merea3, the Municipal Review Committee Incorporated, acting through its Board of Directors, serves as a representative of some 90 Charter Municipalities in the administration of legally binding Par or -Pay waste disposal agreements with the privately owned waste tocnergy, solid waste incineration facility known as the Penobscot Energy RecoveryCompany (PERQ; Whereas, an additional 60 communities also have similar long-term contrach, with PERC whosetonnage, when combined with that of the Charter Municipalities, totals ,000 tons of the 218,000 tons procused at PERC in 1994; Whereas, 1M processing of waste at PERC requires the support of ash and front end process residue disposal facilities to handle the that waste which totals some 64,000 tons generated by the charter and long term contact municipalities; Whereas, state law requires each municipality to provide for disposal facilities for solid waste emanating from normal commerelal and residential sources within the municipality; Whereas, Known disposal options for PERC generated From End Process Residue areonly available until@Iober of 1995; Whereas, failure an find a cost effective disposal solution for front end process residue will cast Charter Municipalities an additional $1,000,000 per year, Whereas, the State and municipal gcvemmenis have ajoint duty to the taxpayers to pmvide coat effective means of waste manageracut in general, and in particular the some through the Maine Waste Management Agency has assumed the duty of providing future ash capacity to be potentially utilized by the State's waste-tocnergy facilities totalling a public investment of $350.000.000; Whereas, tM existing disposal capacity for PERC generated ash is finite with about oven years of life remaining with the current disposal option; Whereas, the Charter Municipalifiesmjoyarnsteffecaveprivatetpubbc relationship with tM PERC facility, that facility represents a $IW,000,000 investment, and a con effective means of ash and front end process residue disposal are a critical variable in maintaining the overall cost effectiveness of the PERC facility; 95-193 Whereas, we are familiar with the scope and content of L.D. 229, an Act to Abolish the Maine Waste Management Agency and L.D. 447, an Acs Regarding Expansion of Cement Waste Disposal Facilities now pending Whereas, proximity to the PERC plant is acritiW variable in determining the overall cost effectiveness of a given disposal option; and Whereas, Me Maine Waste Management Agency maintains an overall state waste management plan and is actively pursuing the development solid waste disposal capacity; NOW, TherefOre, inconsideration of the foregoing, the Municipal Review Committer, Inc. Board of Directors resolves to inform the legislature of the needs of our member communities, of our residents, and of nor businesses and to explicitly state that skis Board: 1. supports the passage of L.D. 447 2. views as being crucial, in the event that L.D. 229, the act to abolish the Maine Waste Management Agency, is passed in some form that this Legislature clearly reassign that agency's duties and functions to another appropriate catity to perform at necessary tasks and meet all objectives in a timely fashion. 3. requests that Us Ugislature insist certain that the present efforts to site Me on - called Carpenter Ridge Special Waste Landfill in Penobscot County, upon which several million dollars have been spent to date, continue to be adequately funded and pursued to completion of the permitting process by an agency that bas an advocacy role which is contingent with the Governors "Maine is on the move" attitude. 4. believes the baseline criteria for considerations for any and all proposed construction or expansion of solid waste facilities are cost effectiveness and environmental soundness, but is currently neutral on ownership status. 5. is willing to artist the Legislature in conjunction with public service agencies such as the Kesmebee Valley Council of Governments and the eastern Maim Development Corporation in examWng the needs of and the cost to she public for the availability of solid waste technical assistance services currently administered by the Maim Waste Management Agency. This msolumm was adopted by a vote of the Municipal Review Committee Im. Board of Directors on March 9, 1995. /e/ Gerald Kempen, President /a/ Joshua Day /a/ Flay Kamm, Vice President /s/ John Giroux /at Robert Farrar, Treasurer IS/ Dennis Cox Abstained Marie Baker /s/ Lyle Dever Laity Folsom Attest, True Copy Be ory A.IAorder Clerk Municipal Review Committee, Tnc. 95-193 TOWN OF LEVRN 0 T TP.O. Box 220 t Le t, bmine 04456 f 207A8L7660 f FIXd8b7237 March 7, 1995 Gerry Kempen, President Municipal Review Committee 10 Franklin Street Bangor, ME 04401 Dear Mr. Kempen Please accept the following as an official objection from the Town of Levant reference. the Board of Director's lack of action on the part of a 90 member community regarding Sawyer Environmental's request for the Municipal Review Committee (MRC) to support L.D. 447 at the board meeting of March 2, 1995. - Succinctly stated, it seems inadvisable to Levant that the Directors saw fit to put the personal agenda of one community ahead of the long term benefit of the other 89. In the past, Levant has felt it necessary to remind the Directors of their primary responsibility to the member communities in protecting the relationship with Penobscot Energy Recovery Corporation (PERC). Presumed in that responsibility is the relationship of appending interest for all long term cost effective solid waste disposal issues for that membership. Given the above, Levant is incredulous that the Directors felt the need to tie their decision to Sawyer's request to the decision of a single town council. Hampden's "personal agenda" contends that it should be the State's responsib- ility to pick up the tab for future waste disposal sites, however, Hampden's present preference not to host future capacity should not be an element in the decision making process at the MRC's Board Meeting. Directors do not represent single municipalities at that Board Meeting - they represent a 90 member c mmunityl Again, let the Town of Levant punctuate the fact to the Directors that the personal agenda of any single municipality within the membership should not take precedence over the long term benefit of the remainder of the membership. MRC Board of Directors - March Y, 1995 Page 2 In reality, that resulting impact of the Board's lack of support of this L.D. may not be realized to the membership in the form of greater transportation costs for some time. It cannot be forgotten that the MRC Board had the opportunity to support and encourage a local enterprise to provide long term capacity but chose to allow a single member to make that choice for than. The Town of Levant has chosen to adopt a resolution supporting L.D. 447 and further will participate in the Public Hearing scheduled in Augusta on Monday, March 13, 1995. The Town of Levant will alsoencourage other member communities to insist that the MRC Board of Directors - fulfill their obligation to the entire membership wherever and whenever opportunity arises. THE LEVANT BOARD OF SBLECTMER -; ��,; avid Cowallis, ai� pians Benson Nanna¢ BOUSTe2 ,iisholm Paul Nichols cc: Sawyer Environmental Recovery Facility - Dort Meagher Town of Hampden - Marie Baker, Manager Rep. Robert Yackobitz Rep. Julie Winn Sen. Chuck Cianchette 95-193 TORN OF LEVANT P.O. BOX 220 LEVANT, MAINE 04456 (207)884-7660 Resolve, Stating the Position of the Town of Levant in Regard to L.D.447, Entitled An A n WSte Disposal Facilities By the Board. of Selectmen for the Town of Levant., Maine: RESOLVED, WHEREAS, The Town of Levant utilizes Penobscot Energy Recovery (PERC)� for disposal of solid waste; WHEREAS, PERC Utilizes Sawyer Environmental Recovery Facility for disposal of combustion ash and Front End Processed Residue (FSPR); WHEREAS, It isin the interest of the future disposal needs for the Town of Levant to encourage and support the development of a current and very successful solid waste disposal operation at Sawyer Environmental Recovery Facility; WHEREAS, Location and capacity is a crucial component to the equation for cost effective disposal for all types of municipal solid waste; THEREFORE, BE IT RESOLVED BY THE BOARD OF SELECTMEN THAT THE TOM OF LEVANT will, without reservation, officially support L.D. 447 by participating in discussion at the Public Hearing in Augusta on Monday, March 13, 1995 as well as conversations with other charter member communities. AND, BE IT FURTHER RESOLVED, THAT: Copies of this Resolve be forwarded Senator Chuck Cianchette, Representative Robert Yackobitz, and Representative Julie Winn to urge the support their representation in Augusta may afford. LEVANT BOARD OFF SEEELECTMEN DATE: MARCH 8, 1995 (�a Cn6rman �. chrs of D/�eane Benson Norman Bou real Mirac t/�� March 9, 1995 The Honorable State Senator Willis A Lord Chair, Natural Resources Committee York, Maine Re Legislative Docket 047, An act regarding the expansion of chain waste disposal facilities. Dear Senator Lord'. The Town of Hampden, Maine has a commercial landfill called Sawyer Environmental Facility located within its boundaries. This S.E.R. F. conglomeration oflandfills has been in existence since 1974. On site there is a conventional landfill, Secure I, Secure 11, Secure III and the possibility of Secure IV. For over twenty (20) years Hampden residents have tolerated garbage truck traffic, sometimes 24 hours a day. They have seen an influx of seagulls, odors of all varieties, (some extremely obnoxious), dust, clay -lined roads, trash being hauled in from every coma of the northeastem part of the United States, state of the an technology in solid waste only to be replaced by new state of the art technology in solid waste and continuous concerns with private drimong wells, clean, healthy air and quality of life every Maine citizen desires. In the fall of 1991 the Maine Waste Management siting board held a public hearing in Hampden regarding a proposed special wane landfill to be located in Hermon, just a f miles from the Hampden town line and the SERF facility. ett that time Hampden citizens testified they were outraged to think the state would even consider siting another landfill in the immediate vicinity. By December the proposed site was scrapped_ Now, in March of 1995, the state still hes no alternative site for special waste. 95-(93 95-193 March 9, 1995 The Honorable State Senator Willis A. Lord York. Maine The Town of Hampden and its cltize s have made a good faith efl'on to contribute to the states solid waste needs. Granted. we all need to look at the "big picture", but sometimes it's too easy to say- let someone else do it, not in my backyard and so forth. Hampden is doing it - a host community for a long term dump! Take a drive up '95, your first sighting of Hampden is the Sawyer mountain. Community pride has its limits... Previously the State Legislature enacted laws providing for no additional commercial landfills and siting dates for expansions thereof, now consideration for a dramatic change exists. Think about it, there were deep seated reasons for the original state laws and granted, government needs to downside but solid waste needs cannot be swept under the rug or go back to the former way of doing business. The Town of Hampden and its Town Council wish to go on record as being opposed to LD 4,147; enclosed is a Resolution adopted by the Hampden Town Council at their regular meeting on March 6, 1995. Thank you for your consideration. MGB/dww Enclosure cc: Senator W. John Hathaw Senator Richard P. Pullin Representative Roy L. Nckerson Representative Debra Plowman Representative Jam W. Said Representative June C. Meres Representative Ernest C. Greenlaw Very truly yours, Mrs. Made G. Baker Town Mang" Senator Mon Cfanchette Representative Catharin L. Damran Representative John P. Marshall Representative Thomas E. Poulin Representative Randall L. Barry Representative David C. Shish �e TP 9P Hn PGEH PAGE 9: 95-193 M. HAMPDEN TOWN COUNCIL RESOLUTION ON PROPOSED AMENDMENT TO 38 M.S.R.A. :21310—E 13) 181 WHEREAS, the Town of Hampden has been notified of a proposed revision to E.S.R.A. Title 38, 1310-A 13) (B) regarding expansion of solid waste facilities; and, WHEREAS, a commercial landfill facility has operated in the Town of Hampden since 1974; and, WHEREAS, under current state law existing commeral solid waste facilities may expand Via DEP approval and r certain and limited circumstances; and, WHEREAS, the proposed revision could enable a com- mercial landfill facility in Hampden to expand beyond ex- isting boundaries. NOW THEREFOR HE IT HERSEY RESOLVED, that the Town of Hampden go on record through its town officials to state its opposition to the proposed amendment to 38 M-S.R.A., 8 1310-x (3) )B). � t!pvsU William AT/ - Town Council McYO Attestf Vnli11] j2oGIA I]//W Paula Newcomb- Town Clerk Date• 3' FJ- e6 95-193 TESTIMONY OF THOMAS M. BROWN BEFORE THE COMMITTEE ON NATURAL RESOURCES MARCH 13, 1995 STATE HOUSE -AUGUSTA, MAINE IN SUPPORT OF THE PASSAGE OF L.D. 44'1 SPONSORED BY REPRESENTATIVE GOULD Senator Lord, Representative Gould and Members of the committee My name is Thomas M. Brown. I am an attorney for the Municipal Review Committee, Inc. and a member of the Eaton, Peabody law firm in its Bangor office. The committee, or MRC as it is often called, is a non-profit corporation with a membership of 90 communities headquartered in Bangor. Charter members range from Millinocket to Saileyville to Mount Desert to the Rockport -Rockland area to the Boothbay Region to Greater Waterville to Guilford, Dover and Dexter to Greater Bangor -- 165,000 tons of solid waste s delivered to the Penobscot Energy Recovery Company (PERC) by MRC communities in 1994. Coat -tailing our membership are more than 60 other communities with an additional 40,000 tons of trash annually who also have long term contracts with PERC. In a very real sense, the MRC has a $100,000,000 mission in the form of a public and private investment in the PERC plant i Orrington. This investment is the result of a truly fine collaboration among many MRC communities, Sawyer Environmental Resources Facilities (SERF) and PERC owners during the mid -1980's. These three entities, meaning the non-profit MRC, PERC, and SERF have accomplished much -- but ancillary facilities to support the PERC plant must still come on line asexisting landfill capacities to receive its ash and its front end process residue (FEPR) are exhausted. Permit me to back up to the inception of this very creative collaboration so that you will know how much has been accomplished, how it has been accomplished, why it was accomplished and what we, as various regions and as a state, must continue to accomplish in order to avoid putting critical infrastructure at risk. In the early 1980'x, the handwriting an economic and environmental walls was clear -- without cost effective and environmentally sound management and disposal of solid waste, Maine's economy eventually would be savaged and the natural environment would suffer greatly, as well. In our region, the City of Brewer, through the leadership of Rene Perry, its then City Manager, brought many of the communities in the Penobscot wasteshed together. These communities pooled several hundred thousand dollars. These sums were supplemented by grants from the DEP. They hired a Connecticut engineering firm, Eastern Maine Development Corporation and the Eaton, Peabody law 95-193 firm -- and they spent that money wisely on engineering studies, demographic studies and assessments of various alternative waste management approaches -- all Co the end of attaining the greatest public good for the greatest number of communities. This effort resulted in a decision that for the largely rural area under consideration a 20-25 megawatt waste to energy plant was necessary. It also was desirable that the facility have a capacity to Process annually upwards of 275,000 tons of the types of solid waste which are suitable for combustion in a manner that would enhance recycling and reuse efforts, as well as preserve existing landfill capacity. The next decision that was made by the 20 participating communities was .that private enterprise should design, build, own and operate the facility as well as site the facility. Therefore, the engineers, the lawyers and the staff of EMDC developed a Request for Proposals. In tandem, one of my partners and I drafted legislation that became the Maine Refuse Disposal District Enabling ACC in order to permitmmunities Co form appropriate legal entities for all types of facilities for the management of solid waste. The next phase included the selection of Penobscot Energy Recovery Company (BERC). Over a period of several months a standard form of contract was negotiated which was to have a term of 30 years in order to afford communities a long-term solution with a predictable coat for the management of a large portion of each community's solid waste. The core communities proceeded to form their refuse disposal district known as Penobscot Valley Refuse Disposal District while PERC went about securing $86,000,000 in tax free financing with the help of FAME. In order to obtain financing, FERC had Co demonstrate to its lenders that it would be able to obtain an adequate power sales contract with a power company. Further, PERC bad to demonstrate that it had enough tonnage under contract at a price that would support PERC's financial projections. The tonnage capacity for PERC was presold in two ways. The initial District members signed contracts, each guaranteeing to deliver to PERC a specified amount of tonnage annually and SERF contracted for a large block of tonnage that it allocated among an additional 50 communities. These contracts are commonly referred to as "put or pay agreements", for if a community does not put their guaranteed a ual tonnage, it still is obligated to pay the tipping fee for the guaranteed amount of tonnage. -2- 95-193 SERF also agreed to provide two other essential functionsit contracted with PERC to see to the disposal of PERC's ash and to the disposal of glass and grit, as well as other non -combustibles that are not suited either for recycling or combustion. I have outlined for you the evolution of the $100,000,000 PERC Plant, why it ticks and what makes it tick. The facility has been constantly in operation in Orrington ince February 1988. 1 happen to live in Hampden across the Penobscot River from the plant and use the stack as my windsock. I have often said that what comes out of the stack is not a problem. A very real problem for the economy of Maine would be visited upon us only if nothing comes out of that stack. As many of you are at least somewhat aware, a giant blip appeared on the proverbial screen in August 1989. PERC announced that revenues from power sales were significantly less than had been projected and further that costs of operating the processing lines were Ear greater than the original projections. PERC documented its losses to date and presented updated projections based upon actual operating history, as wellasconvincingly explained that the owners were not going to pour more millions of dollars down a hole. To all appearances, the project was headed into a straight liquidation under Chapter v of the Bankruptcy Code without even stopping at Chapter 11 for an attempt at financial rehabilitation under the protection of the Bankruptcy Court. At this juncture, the only communities who were organized into a trading or negotiating group was the now 30 member District. However, ninety communities were being served by the plant in 1989, one-half of them being so-called SERF communities. The towns coalesced around the District and SERF. I borrowed what became the overruling philosophy for the vast majority of the 98 communities from the booked entitled All i Need to HL..... 1,earmad in Kindergarten,namely, that the communities needed to "hold hands and stick together". The District and SERF promptly organized and underwrote a 9 member negotiating team consisting largely of municipal officials selected from District communities, SERF communities and previously non-aligned communities served by PERC. This negotiating committee came to be known as the Committee to Analyze PERC or "CAP^. CAR engaged my firm, staff from EMDC and a consulting firm to assist in fact finding and negotiations. In addition, .SERF volunteered its attorney to assist CAP. _3 At the request of CAP, most Communities agreed to an interim fee of $40 per ton which was e than a 100£ increase in the average contractual tippingfee. This approach stabilized the plant for the next 18 months as most communities followed the lead of CAP. CAP proceeded to evaluate the plant technology, debt load, environmental performance, efficiencies and the like. - The goal of CAP became one of establishing an equitable arrangement between the private owners and area communities at a stable cost to area communities. The plant essentially was a good plant in need of significant modifications which could be made over time. Those modifications could (and were) financed through a $4,000,000 contribution by the designer and builder of the plant, additional capital contribution by the owners and increased tipping fees from the communities. As negotiations progressed, a strong municipal monitoring role evolved in order to assure the financial health and environmental soundnessof the plant. This role continues in the form of isersight by the successor to CAP. The C is this successor. It MRnow a permanent fixture which works both to assure that the terms of the renegotiated solid waste arrangement are fulfilled by all parties and to assure that there are ancillary facilities and services in place in order for PERC to serve the 160+ communities sending waste to PERC every day. The communities served by PERC and SERF encompass more than 254 of the Population of this State. You may then add all of the trash and other solid waste generated by our tourists. The Board of Directors of the MRC have passed a Resolution by a vote of 8 to 0 with one abstention. The abstaining member is the Town Manager of Hampden. Hampden is the host community for SERF's special waste landfill including the ash capacity for PERC. This Resolution which I deliver to you today guynorts the passage of LD 447. However, the MRC Board realizes that the passage of LD 447 does not assure the development of additional ash capacity or of additional FEPR capacity by SERF. It is necessary that SERF have an opportunity to explore, test and otherwise investigate an expansion of its existing facility. Not only is the State stalled in its obligation to locate, replacement ash disposal capacity, but known disposal options for cost effective disposal of FSPR in Maine are only available into October of this year. Then, life will become very expensive - we get to ship 35,000 tons of FSPR out of state for an additional $1,000,000 expense to the communities each year at a minimum. Such is money that can be put to better use by the communities. 95-193 The MRC Resolution also addresses LD 229 and the need for this state to continue its efforts to site the so-called caxpenter Ridge Special Waste Landfill in Penobscot County. At the hearing on that LD, the Vice Chairman of the MRC Board, Elery Keene, will testify as to the concerns expressed in the Resolution. Maine has 4waste to energy plants representing an investment of $350,000,000. Each must be supported by ancillary facilities. They are a very critical part of this State's infrastructure and of this State's well being -- just as are roads, bridges, airports, water, sewer and the University system. I respectfully suggest that the Legislature heed the advice of the MRC communities and their partners and pass LU 447. One final note of caution: PLEBES do not assume that by lifting the general prohibition against the development of new commercial landfills by private enterprise, you would successfully address the problem -- you will not] We tried that in 1989 at a place in Washington County known as Township 30. The three private developers who were encouraged to do so by the PERC communities spent $600,000 apiece and failed. PERC, SERF and a third partner were burned badly. This episode made it eminently clear that state government is the only realistic answer over the long haul for siting landfills. The State can always hire private enterprise to build and operate them. I submit 16 copies of the Resolution and my prepared testimony, as well as materials pertaining to MAC membership and the MRC President's Annual Report to the membership. PERC, SERF and the MRC Board invite you to tour our facilities in Orrington and Hampden. For years, I have been concerned that the residents of Maine, including legislators, know too little of the portion of their State which lies North and East of their hometowns. But, now that you have recently returned from your bus tours, I feel more at ease in this respect. The MRC Board would like to be involved in the work sessions. Thank you. wiwresyni 5- LD 667 AN ACT REGARDING THE E RMSIGN OF CERTAIN wA5TH DISPOSAL FACILITIES TESTIMONY OF R. TON SAMYER, SR., pRSSIDENT SAMFER ENVIROM ENTAL SERVICES 95-193 senator Lord, Representative Could, members of the natural Re®eurces Committee, it is my pleasure to appear before you today in Support Of LD aav, AN ACT Regarding the Expansion of Certain waste Disposal Facilities. my nape is Tom Sawyer, and I am President Of Saner Environmental Services in Hampden, Maine. As any of you may know, sawyer Environmental Services has been a key player in addressing Maine's wants management needs for over 30 years. In general, our company provides services involving the transportation of solid waste, the recycling and processing Of items such as tires, paper, metal, glass, and weed debris, and the operation of a commercial sanitary landfill, licensed by the Department of Environmental Protection, to dispose of ash and nen-hazardous special wastes. Our company anticipates playing a role in Maine's solid waste disposal issues for the decades to come. we firmly believe that the private sector, working with appropriate governmental oversight, has a strong and positive role to play in resolving Maine's solid waste needs. In ostler for our company to engage in the kind of long range planning that is necessary in order to make the most economic and environmentally sound decisions, we are here before you today to address one aspect of the current law which we believe is unnecessarily restrictive and should he changed. 95-193 Before discussing the specific elements of LD 447, I would note briefly that you are scheduled to consider this afternoon, LD 229, AM ACT to Abolish the Maine Haste Management Agency. I understand that part of that bill includes a provision which. would entirely remove the limitations or moratorium on the development or expanaien of commercial solid waste disposal facilities. To the extent this Committee and this Legislature as A whole should decide to pace LD 2290 which would lift the current moratorium on commercial Solid waste disposal facilities, the iSenes raised by LD 447 become moot. If the Legislature decides it is not prepared to completely lift the moratorium; I believe LD 447 provides a reasonable alternative, in that it maintains the moratorium on new commercial facilities, sad the limitations on expanding existing facilities, while allowing for a reasonable opportunity to address Maines future waste capacity needs. "der current law, the Department of environmental protection may license an expansion of an existing come ..Jai solid waste disposal facility under certain limited circumstances. After September 30, 1989, the law prohibited the Department from approving any new commercial solid waste disposal facilities within the State of Maine. Again, under current law, the expansion of an existing commercial solid waste disposal facility can to considered and approved by the Department of Environmental if: 1. The facility had been previously licensed prior to October 8, 1989) 2 - 95-193 2. The proposed expansion is contiguous with the existing facility and is located an property owned by the licenses on September 30, 1999) and 3. The Department and/or Maine Waste Management Agency determines that the proposed expansion is consistent with the pravicions of the State waste management plan by meeting the capacity needs and being consistent with the needs identified in that plan. In general, LD 447 would maintain all of these current restrictions an the eapaaedon of a commercial solid waste disposal facility, The bill before you would modify current law alightly by amending the limitation that a proposed expansion would have to be on property owned by the licensee on September 30. 1989. The proposed change would require that the licensee, or a corporation or other business entity under common Ownership or control of the licensee, would have to have owned the property by December 31, 1989. All the other restrictions regarding ne expansion would remain in place. In the spring of 1999, before the current law which I just described to you had even been enacted, one of the Sawyer companies was in the process of negotiating for the purchase of a parcel of property contiguous to its sainting facility. Negotiations proceeded throughout the spring, summer, and fall of 1989, Culminating with a purchase and sale agreement being signed on October 3, 1989. The closing for the purchase of this same parcel (commonly referred to as the MCGuff I Parcel) occurred On November 3, 1989. A copy of the McGuff I Parcel in shown on the site plan sketch which I have attached to my testimony. 3- 95-193 The McDuff I Vernal is approximately 15 acres. Although no extensive hydrogeologital testing on the McDuff I parcel hoe been conducted, Sawyer Environmental Services believes this parcel could be an environmentally sound site for future waste disposal purposes. However, because this parcel was not owned by the licensee On September 3o, 1989, it cannot even be considered for Potential disposal development under the current restrictive Provisions in the law. LO 447 would merely allow this Mcguff I Parcel to be considered as a poeeible site for the expansion of Sawyer's commercial solid waste disposal facility. Obviously, before this Site could actually be approved for solid waste disposal purposes, it would used to go through the extensive application and approval process by the Department of Environmental protection, the Maine paste management Agency, and the TO" of Hampden. Long before this bill was printed in LD form, our company met with officials from the Town of Hampden on numerous Occasions to inform them of our plans to promote this proposed legislation, as well as share with them some of our company'• long range planning Heals- These meetings involved a positive exchange of information which we da a company welcome, and look forward to continuing in the future. Despite hearing our arguments with regard to this legislation, last week the Hampden Town Couwwdl voted to oppose this legislation. Although I anticipate you will hear directly from the Town with regard to the position it is taking on this matter, I think it is worth noting that the Council's position in opposition was not unanimous, and that -a- 95-193 there were Only three residents who spoke in opposition to the bill at last weeks Town Council meeting. Tt is also worth noting, that despite being requested to do no, the Town Council for the neighboring Teen of Hereon refused to oppose this legislation. Although local concerns must be taken into consideration, we believe that the regional, even statewide, needs and policy considerations involved with this issue must outweigh the Potential local Objections from the Town Of Hampden. These regional concerns will be presented to you in more detail through the testimony of the Municipal Review Committee. The Municipal Review Committee is made up of go municipalities within the central and eastern Maine area, organized to address its member municipalities' solid waste needs. The Board of Directors for the Municipal Review committee voted unanimously (with the Town Of Hampden'• representative abstaining) to support W 447. Again, the Municipal Review Committee's position will be presented in greater detail in testimony which will follow my The issues relating to this legislation which we believe have statewide policy implications, or at the very least regional implications, include the following: 1. The determination whether the privets sector should continue to have a role to play in the resolution of waste management needs in the State of Maine; - 5 - 95-193 2. The regional need for the capacity to handle construction and demolition (C6b) debris and front End Processing Residue (FSPR) debris is becoming more pressing; 3. The impact on municipalities which need to dispose of these wastes, as municipal deep sieve become unavailable or are required to close, by requirement of state and/or federal law; 6. The need to maintain regional and statewide capacity to handle spatial waste, Sika ash from the regional waste to energy facilities; and S. Whether the current date restriction regarding ownership Of the property inadvertently would result in a lees environmentally sound site being approved. We believe that the proposed change contained in Lb 667 provides the oovortunity to address the policy issues enumerated above. Without making the proposed Change, this Legislation is, by default, refusing to address very real solid waste issues which simply will not go away oa their om. In summary, there is no sound public policy reason for maintaining the limited restriction this bill attempts to modify. The September 30, 1989 deadline for acquiring an ownership interest has no spacial significance other than the fact that that was the date on which the laws enacted during that Legislature became effective. Septmmber 30, 1969 was not a date Which was consciously c110een by the Legislature at the time that law vau enacted, or a date which holds any particular - 6 - 95-193 significance tachy. In fact, since the original enactment of this law in 1999, the Legislature has already modified this same eeptember 30, 1989 deadline as it related to another limitation on the expansion of onamarcial solid waste disposal or bio -medical waste disposal facilities. That earlier modiligatian changed the September 30, 1999 deadline to October 5, 19a9 in order to accommodate a commernial bio -medical waste disposal facility which was licensed on October 5, 1989, five days after the previously cat statutory deadline Of September 30, 1999. LD 497 would Out change the overall intent of the law which was passed in 1989, or eliminate the restrictions to an axpencian Of an existing commercial solid waste disposal facility. on the contrary, this legislation would allow for thoughtful and comprehensive evaluation Of the potential expansion of existing commercial solid waste disposal capacity within the strict regulatory processes in place. Without this proposed legislative change, that evaluation itself would not even be possible. Thank you for the opportunity to address you, and I would be happy to attempt to answer any questions you might have. 7 - 4Iwpll11 �. +.! 9f `a\ a J i .a -c- f'n:'.:"e'"..aeg 95-193