THE REGIONAL MUNICIPALITY OF PEEL

WASTE MANAGEMENT STRATEGIC ADVISORY COMMITTEE AGENDA WMSAC - 1/2015 DATE: April 30, 2015 TIME: 9:30 AM – 11:00 AM LOCATION: Regional Council Chamber - 5th Floor 10 Peel Centre Drive, Suite A

Brampton MEMBERS: B. Crombie; F. Dale; A. Groves; J. Innis; M. Palleschi; R. Starr;

A. Thompson; J. Tovey 1.

ELECTION OF CHAIR AND VICE CHAIR

2.

DECLARATIONS OF CONFLICT OF INTEREST

3.

APPROVAL OF AGENDA

4.

DELEGATIONS

5.

REPORTS

5.1

Review of Waste Management Strategic Advisory Committee Mandate and Recap of the Infrastructure Development Plan (Oral)

Presentation by Norman Lee, Director, Waste Management 5.2

Peel Energy Recovery Centre Update (Oral)

Presentation by Norman Lee, Director, Waste Management (To be distributed when available)

6.

COMMUNICATIONS

6.1

Victor Lesnicki, Emterra Environmental, Email dated April 23, 2015, Regarding Emterra Enviornmental's Offer to the Members of the Waste Management Strategic Advisory Committee to Tour its Materials Recycling Facility in Burlington (Receipt recommended)

WMSAC - 1/2015 -2- April 30, 2015 7.

IN CAMERA MATTERS

8.

OTHER BUSINESS

9. NEXT MEETING

Thursday, June 18, 2015, 1:00 p.m. - 3:00 p.m. Council Chamber, 5th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario

10.

ADJOURNMENT

Review of Waste Management Strategic Advisory Committee Mandate and Recap of the Infrastructure Development Plan

Norman Lee Director, Waste Management

Region of Peel

1

Waste Management Strategic Advisory Committee April 30, 2015

5.1-1

Overview of Today’s Presentation

WMSAC Mandate

PERC status

Re-cap of Infrastructure Development Plan

Need for Infrastructure

Options under consideration – Technologies, Locations, Ownership

Key findings / Council / Endorsement

Proposed Direction and Next Steps

2

5.1-2

WMSAC Mandate

The mandate of the Waste Management Strategic Advisory Committee (WMSAC), as approved on July 3, 2014 by Regional Council (Resolution # 2014-627) is:

To provide strategic guidance on the implementation of the Waste

Reduction and Resource Recovery Strategy (WRRRS) and the Infrastructure Development Plan.

Key areas where strategic guidance may be sought by staff include:

Prioritizing initiatives during the implementation of the WRRRS

Relative merits of siting choices and development approaches for

Anaerobic Digestion for Green Bin Organics, Blue Box Material processing and Leaf and Yard Waste transfer.

3

5.1-3

4 4

Key Infrastructure Presentations and Reports

Date Presentation and Reports Resolution

RC June 27 2013 Peel Energy Recovery Centre – Approval of Business Case 2013-576

WMC Mar 6 2014 Waste Management 2014 Work Plan – Including review of the strategic infrastructure 2014-287

WMC May 1 2014 Infrastructure Development Plan – For information 2014-480

RC July 3 2014 Infrastructure Development Plan – Endorsement of the proposed direction and next steps 2014-626

WMSAC Apr 30 2015 Re-cap of the Infrastructure Development Plan and Mandate for WMSAC Today

5.1-4

5 5

To design and deliver waste management services that meet the needs of the customer in a cost-effective manner.

To reduce the negative impact of waste.

Two Key Objectives for Waste Management

Approved on July 3, 2014 by Regional Council (Resolution # 2014-627)

5.1-5

Population Projections

6

Pop

ulat

ion

__ Total Population – Growth Plan Amendment 2 (2013) __ Total Population – Growth Plan (2006)

2021 Pop 1,559,000

2031 Pop 1,766,000

2041 Pop 1,988,000

2021 Pop 1,511,000

2031 Pop 1,634,000

2041 Pop 1,723,000

5.1-6

Blue Box Tonnage Projection

7

5.1-7

Organics and Yard Waste Tonnage Projection

8

5.1-8

Garbage Tonnage Projection

9

5.1-9

10 10

Infrastructure Development Plan The Infrastructure Development Plan identifies needs, assesses options

and recommends how infrastructure can be developed in a coordinated and cost effective manner.

The Infrastructure Development Plan takes the development of PERC into account

The Infrastructure Development Plan includes recommendations regarding size, technology, location and ownership of:

Blue Box Material processing capacity Organics processing capacity Waste material transfer capacity

5.1-10

Peel Region built up area

11 Locating infrastructure in built up area reduces

the need and cost to transfer waste

5.1-11

12 12 12

PERC Status

Council approved the final business case for the Peel Energy Recovery Centre and directed staff to issue a Request for Prequalification (RFQ) followed by a Request for Proposals (RFP) for a 300-400,000 tonne per year facility utilizing a design, build, operate and maintain (DBOM) contract structure.

The approved business case identified the PIWMF site as the location for base bids but allows alternate bids at alternate sites.

Staff has been working diligently on the procurement, the power purchase agreement, environmental approvals and a communications plan for the Project.

5.1-12

13

The Environmental Screening Process

We are here

5.1-13

Public Consultation & Communications

14

5.1-14

Consultation: Stakeholder Agencies

Peel Public Health

Toronto and Region Conservation Authority

Ministry of the Environment & Climate Change

City of Brampton City of Mississauga Town of Caledon

Greater Toronto Airport Authority

Hydro One Networks

Hydro One Brampton

Ontario Power Authority

York Region Public Health

Aboriginal Organizations

Independent Electricity System Operator

Community Interest Groups

Ministry of Aboriginal Affairs

Toronto Public Health

5.1-15

Outreach Summary: 1st Open Houses Delivered the Notice to more than 41,000 households and businesses within a 5-7 km

radius of the proposed site

Translated the Notice into Punjabi and Urdu (the majority of non-English speaking residents and business owners with the study area – Census data)

Published the Notice in 12 full-page colour newspaper ads that ran across the local municipality newspapers for four consecutive weeks leading up to the events

Emailed/Mailed the Notice to stakeholder agencies, community interest groups, government agencies and aboriginal organizations and individuals/ agencies who signed up for project updates via the project website or the Region’s Call Centre

Published a story in the Region’s Connect to Peel newsletter

Ran mobile sign ad (1 month prior at Steeles Ave. and Torbram Rd.)

Issued news release and media advisories

Announced on the Region’s Social Media Twitter accounts

Announced on various web pages (home, news, public events, etc.) on the Region’s corporate and project website PeelEnergyRecovery.ca

16

5.1-16

Summary of Public Feedback to Date Notice of Study Commencement After issuing the Notice of Study Commencement, the Region received 40 comments from residents / stakeholders (telephone, mail and email). Approximately 60% were inquires, 33% were supportive and 6% noted concerns. The noted concerns were concentrated on: potential emissions, smells, truck traffic and the proximity to residential neighbourhoods.

Public Open House Response The June 19 and 24 Public Information Session were attended by a total of 56 people. Generally, the comments were positive in nature. Most residents who left a comment form had questions regarding the location and project construction details.

Resident Surveys In the fall of 2012, the Region conducted a Waste Disposal Survey of 800 Peel residents (a representative sample of the population) to find out what residents thought about landfill and energy-from-waste as long term disposal options for Peel resident’s garbage.

The survey results showed: 68% supported building a new energy-from-waste (EFW) facility within the Region, amongst Brampton residents

this number is higher at 73% Of those that support EFW, 75% think the region should still use EFW even if it is more expensive than landfill

These survey results are consistent with findings from Waste Management’s 2009 and 2011 surveys

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5.1-17

List of Technical Studies

18

5.1-18

PERC – Next Steps

Update cost estimates to account for PPA terms, change in value of Canadian dollar, and feedback from government agencies and prequalified vendors

Review alternate site provisions given feedback from prequalified vendors

Finalize PPA terms

Issue RFP

19

5.1-19

Need for Blue Box Processing Capacity

The MRF is operating at near capacity.

Processing equipment nearly 10 years old Typical service life. Maintenance costs are increasing.

Trend is towards lighter packaging materials. Volume of Blue Box material increasing more than tonnage.

MRF can not accommodate quantities (especially volume) and types of packaging materials expected in the future.

20 20

5.1-20

Options for Blue Box Material

New MRF requires minimum 10,000 m² versus 8,000 m² (existing) Bulkier material = bigger tipping

floor New sorting technology (optical)

requires more space Potential new products = more

storage area

Staff considered: Expanding existing MRF at PIWMF. Developing a new MRF in built-up

area to allow direct delivery. Developing a new remote MRF

requiring transfer and haulage. Both Public and Private ownership. Private operation.

21

2 OSU 9 OSU

5.1-21

Need for Organics Processing Capacity

The PIWMF and Caledon Composting facilities together can not process tonnage of organics currently collected. 55,000 Tonnes processed by Peel. 31,000 Tonnes processed by 3rd party

processor.

Implementation of bi-weekly collection in 2016 will significantly increase amount of Green Bin organics collected.

Green Bin processing options: Co-composting with yard waste Anaerobic Digestion

22 22

5.1-22

Co-Composting Options for Organics

Staff Considered: Expanding PIWMF and Caledon

Composting facilities and maintaining Peel Curing facility.

Developing a new composting facility for Green Bin, Leaf and Yard Waste. New 22 Hectare site in remote

location required. New provincial composting guideline

sets separation distance requirement at up to 1km.

Continued public ownership and operations of Peel’s sites & private ownership and operations of new site

23

5.1-23

Anaerobic Digestion Options for Organics

Development of new Anaerobic Digestion facility for Green Bin organics would require. Building space of less than 10,000 m² A site of 3-4 hectares.

Staff considered: Development of new Anaerobic Digestion

facility in built-up area to allow direct delivery.

Developing new remote Anaerobic Digestion facility requiring transfer and haulage.

Both public and private ownership.

All Anaerobic Digestion options include transfer of Leaf and Yard Waste to remote composting facility.

24 * Excess of 31,000 tonnes sent to 3rd Party processor in 2013

5.1-24

Need for Transfer Capacity

Having access to a reliable drop off point is crucial to the effective and efficient operation of the waste collection fleet.

If processing facilities are not located within built-up area of Peel, transfer stations will be required.

If processing facilities are located within the built-up area of Peel, direct delivery is possible.

MRF, AD and EFW can be sited in built-up area.

Leaf and Yard waste composting can not be sited in built-up area so Leaf and Yard Waste transfer is necessary.

25 25 * Collection represents approximately 2/3 of total cost

5.1-25

Comparative Analysis of Cost and Risks

The facility options were combined into 42 potential systems

The potential systems were compared on the basis of: All-in cost Reliability / Risk.

All-in costs included Financing costs and repayment of capital Operating and maintenance costs Major life cycle costs Potential revenue streams Residual value at end of planning period

38 individual risks were considered spanning the full life cycle of the system. (ie during Planning, Procurement, Construction, Operations, etc.)

26

5.1-26

All-In Cost vs Relative Risks

Low cost, low risk options were considered in more depth Preferred system depends on location of the Peel Energy Recovery Centre (PERC)

27

5.1-27

Key Findings PIWMF does not have enough space to meet all of Peel’s 2041 transfer and processing needs , even

without PERC. Use of remote processing facilities requires new transfer facilities and haulage of waste materials,

which increases cost. Locating facilities in built up area to allow direct delivery is preferred.

MRF and AD can be located in built up area. Composting can not.

Processing a large quantity of Green Bin organics at composting facility represents a considerable risk.

AD is therefore preferred for Green Bin Organics. Processing Green Bin Organics at privately-owned facilities (AD or Composting) represents a

considerable risk. Public ownership of Green Bin processing facilities is therefore preferred (3rd party operation

is okay) All system options include the development of a new L&YW transfer facility in built-up area. Construction of PERC will be a large undertaking and will require the entire PIWMF site for material

storage and construction operations. The PIWMF will not be available for waste management operations during the three-year construction period of the PERC.

Interim transfer and processing of Blue Box material and Green Bin organics will be required while new long term infrastructure is being developed.

28

5.1-28

Preferred System (if PERC at PIWMF)

If PERC proceeds as planned and is located at PIWMF, then the preferred option includes: PERC and an AD facility at PIWMF. A new MRF located within built-up

area. A new Transfer Station for L&YW

located within built-up area. Blue Box Material and Green Bin

Organics would be direct-delivered to the processing facilities.

L&YW would be delivered to a new Transfer facility and hauled to remotely located processing facilities.

29

5.1-29

Preferred System (if PERC in built-up area)

If PERC is not located at PIWMF, but at a location in within built-up area that allows direct-delivery, then the preferred option includes: Expansion of Blue Box Material

processing capabilities within existing PIWMF building.

a new AD facility at the PIWMF. a new transfer facility for L&YW

located within built-up area Blue Box Material, Green Bin

Organics and Garbage would be direct delivered to processing facilities.

L&YW would be delivered to a new Transfer facility and hauled to remotely located processing facilities.

30

5.1-30

Preferred System (if PERC is remote)

If PERC is located remotely, such that direct delivery is not possible, or if PERC fails and garbage is sent to landfill then then preferred option includes: A new AD facility and a new

Transfer Station at the PIWMF. A new MRF located within built-up

area A new transfer facility for L&YW

located within built-up area Blue Box Material and Green Bin

Organics would be direct delivered to processing facilities.

Garbage and L&YW would be delivered to a new Transfer facility and hauled to remotely located processing facilities.

31

5.1-31

Financial Implications

The capital identified in the 10-year capital plan for waste processing facilities was reduced from $139.8 million to $138.7 million in the 2015 capital budget process to reflect the lower cost of the preferred system.

The total operating cost (including maintenance and reserve contributions for major life cycle repairs) of the preferred system is slightly less than the projected total operating cost of the current system factoring in growth tonnage and CPI adjustments.

32 As approved in the 2015 Budget process

5.1-32

Proposed Direction and Next Steps

For all possible siting outcomes for the PERC, the optimum system for Waste Management Infrastructure includes these common components: A new MRF located within built-up area. A new AD facility within built-up area, possibly co-located with PERC at the

PIWMF site. A new Leaf and Yard Waste transfer facility located in built-up area and The continued operation of the Peel Curing Facility and the Caledon

Composting Facility.

Staff is investigating technologies, siting and approaches to implement Anaerobic Digestion for Green Bin Organics, Blue Box Material processing and Leaf and Yard Waste transfer. All will be located in the built-up area of Peel where direct-delivery is

possible.

33 Endorsed by Regional Council on July 3, 2014 (Resolution # 2014-626)

5.1-33

Proposed Direction and Next Steps

For Blue Box Material:

Depending on the ultimate location of PERC, either the existing MRF will be expanded or a new MRF be developed in built-up area.

MRF ownership can be either public or private. To maximize competition for a new MRF, staff will consider and if

appropriate initiate the process to acquire a suitable site in built-up area to be offered to proponents via competitive procurement process.

Staff will secure interim transfer and processing as needed. Staff will develop and issue procurement documents as needed.

34 Endorsed by Regional Council on July 3, 2014 (Resolution # 2014-626)

5.1-34

Proposed Direction and Next Steps For Green Bin organics:

An AD facility will be developed as the long term solution The Peel Curing facility will be utilized for secondary processing. The Caledon Composting Facility will continue to operate. Ongoing operation of the Caledon Composting facility and the Peel Curing

facility be reassessed once the AD system is operational. Staff will investigate technologies and approaches for implementing

Anaerobic Digestion to process Green Bin Organics. Staff will secure interim transfer and processing as needed. Staff will develop and issue procurement documents as needed.

35 Endorsed by Regional Council on July 3, 2014 (Resolution # 2014-626)

5.1-35

Proposed Direction and Next Steps For Leaf &Yard Waste:

A new Peel-owned transfer facility will be developed within the built-up

area. A portion of the Leaf and Yard Waste will be hauled to the Peel Curing

Facility to meet Peel’s needs for the secondary processing operation. The excess Leaf and Yard Waste will be hauled to and processed at

private facilities. Staff will initiate the process to identify and acquire suitable sites for new

Leaf & Yard Waste Transfer facilities within Brampton or Mississauga. Staff will secure interim transfer and processing as needed. Staff will develop and issue procurement documents as needed.

36 Endorsed by Regional Council on July 3, 2014 (Resolution # 2014-626)

5.1-36

Key Focus Areas and Timelines

Waste Reduction and Resource Recovery Strategy (WRRRS): Timing / Priority of 3Rs initiatives

PERC: Appropriate involvement for council / councillors given the ongoing

procurement process Approach to alternate sites Key terms of procurement documents

Infrastructure Plan - General: Timing of various facilities Extent of co-location of facilities

37

5.1-37

Key Focus Areas and Timelines

Blue Box MRF: Potential impact of EPR legislation Facility sizing Facility siting Facility ownership Key terms of procurement documents

38

5.1-38

Key Focus Areas and Timelines

Green Bin AD: Material sources composition (pet waste / diapers) Technology options Facility sizing Facility siting Biogas utilization options Procurement approach (REOI? or RFQ? Prior to RFP) Key terms of procurement documents

39

5.1-39

40 40 40

Questions

5.1-40

Waste Management Strategic Advisory Committee

Items Related to Reports Thursday, April 30, 2015

ITEM 5.2

Peel Energy Recovery Centre Update (Oral) Presentation by Norman Lee, Director, Waste Management

NOT AVAILABLE AT

TIME

OF DISTRIBUTION

(To be distributed when available)

1

Jurrius, Stephanie

From: Victor Lesnicki <victor.lesnicki@sympatico.ca>

Sent: April 23, 2015 9:29 AM

To: Jurrius, Stephanie

Cc: Lee, Norman; Paulina Leung

Subject: Emterra Environmental offer to tour of Materials Recycling Facility

Good Morning.  I have been requested by Norm Lee to send this email request to you directly as an item to be included in your SWMAC meeting of April 30th, 2015.  During recent conversations with Mayor Thompson and Councillor Ron Starr, I had suggested that since members of the current WMSAC deal with general waste management activities, a tour of Emterra’s Material Recycling Facility in Burlington may be of interest as  general background information of recycling facilities.  Emterra Environmental wishes to offer  a tour of its Materials Recycling Facility (MRF) in Burlington for any interested members. This particular  MRF is a single‐stream sorting facility and highly mechanized with state‐of‐the‐art optical sorters and equipment. It would also give members an opportunity to discuss general collection and processing issues since Emterra currently operates processing facilities throughout Ontario and several western Provinces. Dates which we suggest are June 8th and/or June 29th.  We would be pleased to follow up on any interest  expressed by any member and make suitable arrangements.  Thank you,  Victor Lesnicki    

COPY TO: FOR:

Chair Committee CAO WMSAC

Corporate Services Council

Public Works Service Innovation, Information

and Technology

Health Services File

Human Services

Finance

Peel Living

LEGISLATIVE SERVICES

REFFERRAL TO _____________________________

RECOMMENDED

DIRECTION REQUIRED _______________________

RECEIPT RECOMMENDED ____________________

April 30, 2015

6.1