£EPA
United States
Environmental Protection
Agency
Office of
Water & Waste Management
Washington DC 20460
September 1979
SW
Solid Waste
Resource Recovery
Management Model
Overview
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RESOURCE RECOVERY
MANAGEMENT MODEL
Overview
This overview (SW-768) of the Resource. Recovery Management
Model (available from the Superintendent; of Documents) was
prepared for the Office of Solid Waste under contract no.
68-01-5809.
U.S. ENVIRONMENTAL PROTECTION AGENCY
1980
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AC KNOWLE DGEMENT S
EPA selected organizations and people with extensive practical
experience in the field to assist in development of the Resource Re-
covery Management Model and this companion Overview. The Metrek
Division of The MITRE Corporation prepared the Management Model and
Overview under contract to EPA (Contract No. 68-01-5809) printed as
MTR's 79W00320 and 79W00437, coauthored by R. T. Felago and P. J.
Stoller. To ensure that the Model will meet the needs of those re-
gional, state, and local officials from whom it is intended, its
preparation was guided by an Advisory Board of public sector leaders
in the field of resource recovery. EPA expresses its appreciation
to these dedicated people for their active involvement in and es-
sential contributions to the preparation of this document. The
members of the Advisory Board are listed below:
Dr. James G. Abert
Vice President
National Center for Resource Recovery, Inc.
Mr. Joseph Boren
Former Vice President
Connecticut Resources Recovery Authority
Mr. Russell L. Brenneman
President
Connecticut Resources Recovery Authority
Mr. Franchot Buhler
Executive Director
State of Florida Resource Recovery Council
Mr. Herbert Iwahiro
Chief, Division of Planning and Resource Recovery
State of California Solid Waste Management Board
Mr. Gene L. Neff
Deputy Director of Public Works
Baltimore County, Maryland
(also representing the American Public Works Association)
Mr. Jerold A. Prod
Member and Former Chairman
State of California Solid Waste Management Board
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\
? UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D C 20460
October 1, 1979
PREAMBLE
In this country progress has been painfully slow in expanding
the recovery of energy and materials from municipal waste. It is
disturbing to realize that the slow progress is not being acceler-
ated significantly by the present energy crisis and mounting land
disposal issues. However, there is a clear reason for that slow
advancement, and with the publication of this document, the Environ-
mental Protection Agency is addressing what numerous studies and
inquiries have identified as the most significant deterrent to
implementing resource recovery projects, that is, the incredibly
complex planning process.
The many factors which contribute to the complexities are
quite elusive and often not thoroughly understood by those attempt-
ing a project. As a result, numerous projects have failed to ad-
vance very far, have fallen short of their technical objectives, or
have had extensive time delays and incurred unreasonable additional
costs. Communities contemplating a resource recovery project have
not been able to capitalize readily on the experiences of others in
attempting to avoid such problems. The Management Model and this
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companion Overview were developed to provide that kind of informa-
tion and assistance.
Before undertaking development of the Model, EPA consulted many
people about the need for such an aid and the uses it may serve.
They were unanimous in support of developing the Model and believed
it should help communities avoid the problems associated with:
inadequate analysis of waste streams and disposal issues; inadequate
study of available options, economic considerations, and political
sensitivities; inadequate market analyses; insufficient public par-
ticipation; and inadequate timing and budget projections, as well as
the problems associated with the turnover of project personnel and
elected officials.
The Model was developed with two goals in mind: first, to
provide a comprehensive description of all the activities necessary
to conduct a resource recovery project; and second, to present this
information in a form that is easy to understand, and which lends
itself to assisting those responsible for the day-to-day management
of a project.
EPA engaged The MITRE Corporation to develop the details of the
Model. In addition, to ensure the broadest experience as input, EPA
assembled an Advisory Panel of seven men whose unique qualifications
of knowledge and experience in this field are widely recognized.
Their role in guiding both EPA and MITRE in preparing the Model was
significant, and their services are given separate acknowledgement
elsewhere in the front of this document.
In addition to the broad input from the Advisory Panel, reviews
of the draft Model obtained from some 50 recognized authorities in
the field of resource recovery, including EPA headquarters and re-
gional office staff, EPA Technical Assistance Panels contractors,
private industry, financial advisors, management and engineering
consultants, and professional associations. Many comments were re-
ceived, virtually all in strong support of the effort. Some con-
cerns were expressed, however, regarding the size (or bulk) of the
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Model, its rigidity, usefulness, level of detail, extensive use of
abbreviations, estimates of work effort and funding, network logic,
time frames, and certain series of activities. All of these con-
cerns were carefully considered by the Advisory Panel, and all but a
few comments were accepted as appropriate and resulted in modifica-
tions to the final document. In response to the expressed concern
about the size of the Model, this abbreviated version was prepared
for elected officials and other decision-makers at all levels.
In summary, the Model is designed as a roadmap, charting a
course through the entire spectrum of resource recovery activities
required for a thorough planning effort, and reflecting the experi-
ences of many professionals who have covered the route. The Model
should be the basis for all planning action; experience has shown
that the indicated activities must be considered in order to avoid
overlooking important steps. Many projects have suffered serious
setbacks by attempted "shortcuts". It is axiomatic that no standard
procedure will cover every conceivable situation at every possible
location. If a strong justification is made by the project manager,
the Model can be tailored to suit local requirements, AS LONG AS THE
RISKS ARE UNDERSTOOD. The detailed information referenced in each
activity will help the manager to understand those risks. In pro-
viding the foundation for the planning and forcing such thoughtful
analysis, the Model will have served its purpose.
It is the intention of this Agency to update the Model and
Overview in future years as experience dictates. For that reason,
constructive criticisms are earnestly solicited.
Albert A. Peter, Jr,
Director
Land Disposal Division
(Former Director
Resource Recovery Division)
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ABSTRACT
This document provides an overview of the Resource Recovery
Management Model which has been developed by the U. S. Environmental
Protection Agency to assist regional, state, and local officials in
developing plans, reaching decisions, and managing and conducting
procurements for resource recovery facilities and services. The
Model provides a comprehensive description of the activities neces-
sary to conduct a resource recovery project. A full presentation of
the Model is provided in the EPA publication, Resource Recovery Man-
ju
agement Model. That publication of about 600 pages is designed
for use by the project manager, the person responsible for planning
and managing the project on a day-to-day basis .**
This Overview is designed for use by those responsible for es-
tablishing policy and monitoring the project to insure that the
project meets the needs of the jurisdictions involved. It briefly
describes the Model, why the Model was developed, and how the Model
is adapted for use on a project. A copy of the "Master Network" is
provided — a flow chart which illustrates the interrelationships
among all "Master Activities", or major tasks. Also included are
abbreviated versions of the Master Activity sheets summarizing the
activities. The Overview thus provides sufficient information for a
general understanding of what must be done to carry out a resource
recovery project.
For information on obtaining the Resource Recovery Management
Model, contact: Resource Recovery Branch/Office of Solid Waste,
U.S. Environmental Protection Agency, Washington, DC 20460
(202/755-9140).
JU JU
The Environmental Protection Agency expects to hold Project
Management Workshops for those interested in implementing resource
recovery. They will use the Management Model as a workshop text.
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RESOURCE RECOVERY
MANAGEMENT MODEL
OVERVIEW
Table of Contents
Page
Key Questions 1
The Need for a Management Model and Overview 2
Description of the Model 3
The Phases 3
Master Network and Master Activity Sheets 4
Subnetworks and Activity Sheets 4
Major Issues 5
Public Participation 5
Environmental Considerations 5
Waste Reduction 6
Source Separation 6
Phase-over Planning 7
Project Communications 8
Assessment of Industry Roles and Offers 8
Adapting The Model for Use 9
Small Scale Systems 10
Time Frames 10
Task Completion 11
Summary of Costs and Critical Path Durations 12
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RESOURCE RECOVERY
MANAGEMENT MODEL
OVERVIEW
Resource recovery refers to the collection and use of solid
waste, generally residential and commercial waste, for the produc-
tion of energy and materials. It can be carried out either at a
central processing facility or by source separation (setting aside
of recyclable materials at their points of concentration), or both.
This effort has gained recognition over the last decade as a partial
solution to two major problems confronting this country: the need
for environmentally sound disposal of solid wastes, including the
need to reduce dependence on land disposal; and the need for alter-
nate energy sources and increased energy conservation. The prospect
of more communities using resource recovery, one means of addressing
these problems, as a method for solid waste management has stimu-
lated rapid growth in both large and small-scale systems technology.
The Model is intended to assist communities along the complex path
to implementation of a resource recovery project.
Key Questions
In considering resource recovery the following key questions
must be addressed and resolved:
• Is sufficient refuse available to support a resource
recovery project, and can the refuse be committed in the
long term to a project?
• Do realistic long-term markets for energy and materials
products exist?
• Are sites and technologies available which are
environmentally sound and politically acceptable?
• Do local laws permit procurement options and necessary
contractual agreements?
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• Is the project financially feasible?
• How does resource recovery compare to the non-recovery
disposal alternatives?
Failure to address any one of these key questions may make
project implementation impractical. The inability to obtain any
critical item, such as a facility site, energy market, or adequate
waste supply can spell the termination, or at least the postpone-
ment, of a project. The Management Model shows what tasks must be
done and where in the planning process they should be accomplished.
The Model is presented in considerable detail, which is necessary
for those with limited experience in the field and useful as a
checklist for those with more experience. This Overview, with con-
siderably less detail, enables quick and easy tracking of the proj-
ect and oversight review.
The Need for a Management Model and Overview
Review of recent experience in resource recovery projects
indicates that some of the difficult decisions were not addressed in
a timely and proper manner; thus time, effort and money have been
wasted. Use of the Model and Overview should "close the gate" on
continuing a project where a needed decision has not been made; once
a decision is reached, the "gate" will be opened to allow the proj-
ect to continue with the next major phase. These gates are politi-
cal decisions conducted publicly based upon written documentation.
Delays in decision-making are often caused by a change in
project manager or key officials, as well as changes in laws and
regulations. Because of the considerable time span over which plan-
ning and procurement of resource recovery facilities take place such
changes are almost inevitable. The Model provides a systematic way
of charting progress, thus helping to maintain project continuity
and avoid unnecessary retracing of steps.
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By identifying all activities and decisions and their proper
relationships, the Management Model should bring about better de-
cisions and smoother implementation with less redundancy of effort.
Description of the Model
The Phases. The process consists of six phases. The Model
deals with four. Phases, I, II, and III are Feasibility Analysis,
Procurement Planning, and System Procurement. These are preceded
by a Phase 0, Initial Resource Recovery Feasibility Screening, which
include certain steps necessary to decide if there is a strong rea-
son not to study and plan for a resource recovery project. The
numeral 0 is used to stress that this phase is less formal than
others — the purpose is to investigate in rough terms whether local
conditions preclude consideration of resource recovery.
Phase I, Feasibility Analysis, includes an evaluation of the
feasibility of resource recovery and preliminary identification of
alternatives among forms of resource recovery, including source
separation and codipsosal. This phase should develop the basis for
a decision to terminate, postpone, or proceed. It also includes
activities necessary to construct a preliminary implementation
strategy; activities such as project team organization and securing
required resources.
Phase II, Procurement Planning, further develops all elements
leading to system procurement, including obtaining options to pur-
chase sites with associated environmental analysis and public meet-
ings, strengthening market and waste supply commitments, risk allo-
cation, and selection of a preferred procurement and financing
approach.
Phase III, Procurement, covers the steps required for system
procurement, including contracting for waste supply, markets, con-
struction, and operation (if applicable), obtaining necessary pre-
construction permits (and associated environmental analysis), and
obtaining in the debt or equity capital to finance the project. .
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Additional Phases IV and V, not covered by this Model, are the
two major phases of a resource recovery project for which the planning
and procurement are conducted. Phase IV — Construction, Shakedown,
and Acceptance — includes the three major steps which are generally
a part of the construction contract. Phase IV is completed when
Phase V — the long term operation of the facility — commences.
Towards the end of Phases 0, I and II, a formal report (or
statement) is prepared documenting the results and presenting a
recommended course of action and associated budget for the next
phase. Using the report as a basis, a political/public decision is
made either to proceed or terminate.
Major Issues
Major ongoing issues which must be considered in all phases
include:
- Public participation
- Environmental considerations
- Waste reduction
- Source separation
- Phase-over planning
- Project communications
- Assessment of industry roles and offers.
Public Participation. History has taught us that early and
continuing presentation of issues to the public is essential in
gaining public confidence in any program. Not only should the
public be informed early, but also continuously for the duration of
the project. The importance of this cannot be over-emphasized, nor
should the lessons be forgotten of the consequences of past failure
to do this. Without public dialogue the project may be undermined
for no more sufficient reason than a perceived lack of an informed
and well-structured process or for the substantial reason that the
project does not meet the community's goals and desires.
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The public may be involved in the project development in many
ways, such as public meetings and hearings, presentations, advisory
groups, newsletters, assistance and coordination. The presentation
of issues at an early stage promotes an atmosphere of openness and
mutual trust.
Environmental Considerations. Depending upon the individual
State and local environmental assessment requirements, different
environmental analyses may be necessary. The Model contains three
types of environmental review. The first is an initial screening
in the Feasibility Analysis phase; the second is a refinement of the
environmental criteria and analytical work, principally site selec-
tion (Procurement Planning phase); the third may be an assessment
or a full environmental impact statement which is system-specific
and occurs after selection of a system or completion of preliminary
design (Procurement phase).
In areas of air quality non-attainment, additional monitoring
of ambient air may be required prior to design and construction of
the facility. This action may be initiated early and may continue
throughout a large part of each phase, depending upon local require-
ments and local customs. Use of the Model should allow careful and
timely consideration of all environmental restrictions which have
typically impacted on resource recovery projects.
Waste Reduction. Waste reduction generally refers to reducing
the quantity of solid waste generated so that there is simply less
waste for disposal in landfills, for resource recovery, or for
source separation. The reuse of beverage containers is an example
of waste reduction because fewer containers enter the municipal
waste stream.
Waste reduction and resource recovery are compatible. The only
adjustment needed in the resource recovery planning process is a
revision of the estimates of solid waste quantity and composition
which will be available to the resource recovery system, based on
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predicted effects of all reasonably foreseeable waste reduction
systems. The Model does not detail a method for introducing water
reduction but allows ample opportunity for a project manager to factor
waste reduction into the overall resource recovery management plan.
Source Separation. Source separation is defined as the setting
aside of recyclable waste materials at their point of generation for
segregated collection, transport, and delivery to specialized waste
processing sites or final manufacturing markets.
The Model encourages development of a source separation pro-
gram, either independently or in conjunction with a larger scale
program. In some cases, source separation may be the only viable
choice among recovery programs for a particular locality.
A preliminary review of source separation potential is called
for in Phase 0, followed by a feasibility study of source separation
in Phase I. If the Phase 0 screening indicates source separation as
a possibility, and the Phase I feasibility analysis indicates ex-
pectation of a sound program, then the implementation process for
source separation is carried out in Phase II. If, however, the Phase
0 screening indicates a strong resource recovery program through source
separation, the Model provides the mechanism for skipping over Phase I
and proceeding directly to the implementation process in Phase II.
Phase-over Planning. Most resource recovery projects represent
long-term solutions to solid waste disposal for communities. One
must, however, count on substantial time to elapse between the ini-
tiation of resource recovery planning and the actual commencement of
resource recovery plant operation. The transition from the existing
solid waste management system to the initiation of the long-term
resource recovery program is the phase-over period.
In many cases interest in resource recovery is initiated by a
need to abandon the current system, such as an incinerator with ex-
cessive emissions or a landfill reaching capacity. In such cases,
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the program manager has two concurrent tasks — the first is to plan
for the shorter term phase-over solid waste management needs, and
the second is to plan for the long-term resource recovery program.
Although phase-over planning is required immediately, it should
progress and be compatible with the long-term planning represented
by the Management Model. While the two planning functions are often
concurrent, and while some of their respective activities may be
interdependent, the two planning activities may be separate and dis-
tinct; where possible, the same project manager or task force should
be involved in both activities. The primary problem is to avoid
actions of a short term or "phase-over" nature that are inconsistent
with the long-range goal.
It is not the purpose of this Model to address phase-over plan-
ning. Despite the need for such planning and the points of interde-
pendence with resource recovery planning (e.g., site selection and
size, residual disposal), the Management Model is designed to assist
the project manager in implementation of only the resource recovery
program. Concurrent functions, scheduling constraints and other
problems facing the municipality must be resolved by the project
manager responsible for these areas.
Project Communications. There is a need in every resource re-
covery project to maintain contact with members of the participating
organizations, especially during periods of low activity. For ex-
ample, after letters of intent are received from markets, there is
little activity within the project while public presentations and
political decisions are made. Continuous contact should be main-
tained during this period with markets and member municipalities so
that they are kept up to date and interest in participation is not
lost.
Assessment of Industry Roles and Offers. Throughout the course
of the project, private industry may occasionally offer to solve the
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solid waste problem being addressed by the resource recovery project.
The project manager should realize that the key questions page 1
must still be answered. If industry has progressed in answering
more of these questions than the community, it may be appropriate to
entertain involving that industry in the process at this time using
the Model as a guide to monitor their progress.
It should also be realized that the selection of one firm above
others may be subject to reexamination (and possibly reversal) at a
later date. Such a selection therefore constitutes a risk of wasting
both the government's and private industry's time and money, thus the
selection should be made only after careful consideration of its legal
and political implications.
Master Network and Master Activity Sheets. The first level of
information provided in the Model is the Master Network and Flow
Chart, which illustrates 60 Master Activities spread throughout the
four phases. They show the major work items which must be addressed,
their recommended sequence, and the amount of time likely to be needed
for each Master Activity (see Time Frame and Task Completion, below).
They are accompanied by Master Activity Sheets which summarize each
Master Activity; its purpose, requirements, necessary resources, and
other pertinent data, as well as references and sample documents.
The body of this Overview is comprised of the Master Network, a
simplified Master Flow Chart, and extracts from the Master Activities.
Subnetworks and Activity Sheets. Virtually all of the Master
Activities are comprised of a number of more detailed activities;
thus a second level of networks, designated Subnetworks, is pro-
vided in the Model, but not in this Overview. Nearly every Master
Activity has an accompanying Subnetwork with associated Activity
Sheets.
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Adapting The Model
The Management Model naturally cannot be expected to illustrate
the implementation needs of every individual project; its purpose is
to present the activities common to most projects and their suggested
sequence. Some activities will undoubtedly be tailored to individual
project requirements. This specific tailoring should be performed at
the local level by the project manager in conjunction with the
project team responsible for resource recovery implementation.
Many municipalities may begin using this Model while their
individual projects are already in one of the four phases. Use of
the Model does not require return to the start of Phase 0, but the
user is encouraged to continue from the current point to completion
via the steps of the Model. If an activity that a municipality has
not yet considered appears earlier in the logic sequence in the
Model than the point of entry by the municipality, that step should
be completed before proceeding further. If, however, all previous
steps have been essentially completed, then progressing immediately
via the route outlined by the Model is encouraged.
The individual exploring resource recovery on behalf of the
muncipality should use the document in the following manner:
1. Read the introductory sections and become familiar
with the overall structure.
2. Review the Master Flow Chart and the Master Network
to understand the entire scope of the project.
3. Review the Master activity sheets in conjunction with
the Master Network to understand in greater detail the
work level required and the necessary references and
sample documents so that acquisition of appropriate
documents can begin early.
4. Understand where in the sequence of the Model the
individual's particular project stands by reviewing
the Master Network and Subnetworks with associated
activity sheets to determine which activities have
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already been addressed (this may be a complex task,
requiring assistance).
5. Proceed according to the work sequence illustrated
on the Master Network or tailor the sequence to the
local conditions. If changes in sequence are neces-
sary, the reasons for these changes should be noted
in a memorandum to the project file.
6. Proceed to the first Master Activity sheet required
by that sequence, review the Subnetwork and Activity
Sheets, and begin the actions outlined therein.
Small Scale Systems
Much resource recovery planning activity is expected to be
directed toward small scale "modular" facilities. Although the
general procedure provided by the Model, as well as activity sequence
and interrelationships, are the same for both large-scale and small-
scale systems, time and cost estimates are comparatively smaller for
projects of smaller scope and lesser complexity.
Time Frames
Resource recovery projects are quite complex, requiring a large
number of activities, inputs, and decisions to be meshed smoothly in
order to succeed. The average times in weeks shown on the Model are
illustrative only; they indicate how much time is required to accom-
plish the activities, given a team of people with some experience in
resource recovery, and with average complications. However, setbacks
can occur in a project which can take months, or even years, to
rectify. Activities such as facility siting, test case litigation,
or securing raulti-municipal waste supply arrangements can drag on
and on.
During development and review of the Model, considerable dis-
cussion was given to the "fast-track" method of procurement planning.
From a management standpoint, fast-tracking means paralleling some of
10
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the activities now shown as sequential. The Model represents a
conservative approach to resource recovery implementation by its
sequencing. If, however, the project director and project manager,
in conjunction with the consultant and project team examine care-
fully the options of either waiting for the activity to be completed
or accepting the risk and moving on, then this paralleling of activ-
ities, or fast-tracking can be used. The model indicates how to
reduce risks by sequencing activities, but allows for the possibility
of increasing risks in order to reduce the time required. If every-
thing works out time may be saved; if not, time and money may be lost.
Task Completion
Project participants must use their judgement to decide when the
tasks are essentially complete. Consider as an extreme example for
illustrative purposes, the task of sampling boilers in the project
area in the search for energy markets: There are 20 individual
boilers in an area, and 18 (including all the largest) have been
located, with some believed to offer good potential. Collectively,
the boilers have the potential to use 2 or 3 times the energy avail-
able in the waste, then the boiler analysis task may be considered
complete. On the other hand, consider where only 2 of the 20 boilers
have been found, and they happen to be two of the largest. They do
not, however, have the potential to use all the energy available. In
this case, it is premature to consider the task complete. Judgements
as to where in the middle of these extremes the task is complete must
continually be made by those responsible for the project.
Summary of Costs and Critical Path Durations*
Table I summarizes the costs and the critical path times that
*Critical path time refers to the elapsed time measured along the
critical path of activities. The critical path is comprised of the
activities which add up to the longest time to complete the network:
this path of longest duration then is the shortest elapsed time in
which the entire network can be completed. The time along the critical
path is not found simply by adding elapsed time of sequentially number
activities. The critical path time, therefore, is the elapsed time
indicated on the Master Network and in the estimating data in Table I.
11
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represent averages for a hypothetical area of approximately 500,000
population with more than one community participating. The ranges
given for time requirements are indicative of how project activity
may be affected by the number of participating communities, total
population, local opposition, environmental and other permit
requirements, and sometimes the legislative and judicial processes.
Cost will vary accordingly. A sliding scale for costs can be applied
to both larger and smaller projects, varying roughly according to
population. The critical path times will also vary considerably
with population; generally, small-scale systems should be imple-
mented sooner, and larger scale systems, involving more communities,
will take longer.
Table I, indicates the range of total cost to the community for
project management, administration, in-house staff, and consultants
in each Phase. In some cases, the cost may be considerably lower
than that indicated by simple population proportion, due to the fact
that some elected and appointed officials in smaller areas may donate
their time. In other cases, costs may be considerably higher, due to
unique unforeseen complications. In the case of financial advisors,
the prospect of a future bond sale may result in financial consulting
being performed without fee, since compensation from the bond issue
is anticipated.
It should be noted that the cost and duration data for Phase
III are given separately for the three types of contracts: archi-
tectural/engineering (A/E), turnkey, and full-service. The dura-
tion is longer and costs are higher for A/E because facility design
is completed and a construction contractor is selected during Phase
III; in the other approaches, design is completed in Phase IV. The
overall time needed to arrive at commencement of construction is
shorter for A/E, however, because the communities usually require
more time to complete procurement and contracts with turnkey and
12
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full-service vendors. The extra time spent for the latter approaches
may buy lower risks in terms of satisfactory long-term plant
operation.
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TABLE I
SUMMARY OF AVERAGE COSTS (1979 DOLLARS)
AND CRITICAL PATH DURATION
Phase 0
001-007
Totals (Funding)
(Critical Path Duration)
Phase I
101 Organize Project Team and
Public Information Process
102 Secure Required Resources
103 Screen Environmental Re-
quirements
104 Conduct Technology Analysis
105 Analyze Waste Stream
106 Perform Detailed Energy
Market Analysis
107 Analyze Existing Disposal
Options
108 Conduct Material Market
Analysis
109 Conduct Source Separation
Feasibility
110 Perform Preliminary Envi-
ronmental Analysis
111 Establish Transportation
Analysis Model
112 Perform Preliminary Site
Analysis
113 Perform Financial, Legal,
and Institutional Anal-
ysis
114 Develop Project Alterna-
tives
115 Establish Political/Public
Decision Process
116 Develop Recommendations and
Report
117 Obtain Political/Public
Decision to Proceed
Totals (Funding)
(Critical Path Duration)
Funding
($K)
5
$5K
7
9
4
5
9.5
10
4
6.5
6
3
3.5
3.5
8
9
1
10
3
$102K
Duration
(Calendar
Weeks)
6
6
8
12
4
4
6*
15*
3
15*
4
4
4
4
6
5
1
5
8
66*
Duration Range
(Calendar Weeks)
Low
3
3
3*
7
2
3
3
7*
2
6*
2
2
2
2
3
3*
1*
3
3
39
High
10
10
13
31
8
11
14
24
6
19
7
8
8
8
12
14
2
20
16
164
*Rounded to the nearest whole week.
14
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TABLE I (Continued)
Phase II
SSI Perform Detailed Source
Separation Feasibility
SS2 Develop Source Separation
Program
SS3 Execute Program
Totals (Funding)
(Critical Path Duration)
201 Define Project
202 Draft Environmental Assess-
ment and Determine Site
Priorities
203 Secure Sites
204 Update Project Definition
and Costs
205 Strengthen Waste Supply
Commitments
206 Structure Risks to Resolve
Institutional Problems
207 Strengthen Market Commit-
ments
208 Update Project Definition
and Costs
209 Select Technology(s), Risk
Assignment, Procurement
and Financing Approach;
Write Report
210 Obtain Political/Public
Decision to Proceed
Totals (Funding)
(Critical Path Duration)
Funding
($K)
25
25
8
$58
5
18
16
5
24
30
22
6
15
Duration
(Calendar
Weeks)
29
27
16
72
4
11
18
4
20
25
18
4
6
Duration
(Calendar
Low
16
17
8
41
2
7
11
2
10
12
10
2
3
Range
Weeks)
High
61
52
28
141
6
18
63
8
40
52
28*
7*
11
10
$15 IK
12
80
41
20
178
Phase III
(TURNKEY)
301 Establish Administrative 10
Framework
302 Produce RFP 25
303 Acquire Contractor 90
304 Perform Environmental 25
Assessment
*Rounded to the nearest whole week.
10
22
55
31
14
26
15*
19
37
136
76
15
-------
TABLE I (Concluded)
Phase III (concluded)
305 Acquire Waste Supply Con-
tracts
306 Secure Preconstruction
Permits
307 Perform Preliminary Design
308 Acquire Market Contracts
309 Secure Financing
Totals (Funding)
(Critical Path Duration)
(A/E)
311 Establish Administrative
Framework
312 Acquire Preliminary Design
313 Secure Preconstruction
Permits
314 Perform Environmental
Assessment
315 Acquire Waste Supply Con-
tracts
316 Acquire Design and Con-
tractor
317 Acquire Market Contracts
318 Secure Financng
Totals (Funding)
(Critical Path Duration)
(FULL SERVICE)
321 Establish Administrative
Framework
322 Produce RFP
323 Acquire Contractor
324 Perform Environmental
Assessment
325 Secure Preconstruction
Permits
326 Acquire Waste Supply Con-
tracts
327 Acquire Market Contracts
328 Perform Preliminary Design
329 Secure Financing
Totals (Funding)
(Critical Path Duration)
Funding
($K)
65
25
15
7
10
$272K
10
650
25
25
65
1,590
7
10
$2,382K**
10
25
90
25
25
65
7
15
25
$287K
Duration
(Calendar
Weeks)
24
26
20
8
14
132
10
30
26
31
24
72'
8
14
157
10
22
55
31
26
24
8
20
38
156
Duration Range
(Calendar Weeks)
Low High
16
13
13
6
11
72
5
22
13*
15*
16
45
6
11
98
5
14
26
15*
13
16
6
13
28
168
39
34
20
26
386
19
40
38
76
168
102
20
26
329
19
37
136
76
39
168
20
34
60
89
420
*Rounded to the nearest whole week.
**Includes total fee for preliminary and detailed design; varies widely with
project size.
16
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MASTER ACTIVITY: OVERVIEW OF PHASE o number
I 000
PURPOSE: To ascertain if there are any local conditions which obviate the need to investigate
RR in detail by conducting a preliminary investigation which considers the critical ingredi-
ents of a RR program.
DESCRIPTION: The vital ingredients necessary for a viable RR program are investigated in a
preliminary manner to obtain a conclusion of whether or not any of them are missing to such
an extent that a RR program would not be viable. If available, data from reasonably recent
studies and reports may be used.
MAJOR DECISIONS: To preclude or defer further consideration of RR, or proceed into Phase I
subject to the availability of staff and funds; whether or not to proceed to Phase II source
separation; appropriated budget to proceed.
MASTER ACTIVITY*. EVALUATE NON-RECOVERY DISPOSAL OPTIONS AND ., um er
ASSOCIATED ENVIRONMENTAL ISSUES I
003
PURPOSE: To develop a brief narrative (less than 10 pages) discussing the prospects for dis-
posing of the community's solid waste by non-recovery approaches, e.g., incineration without
heat recovery or landfill. This task also determines, on a preliminary basis, whether exist-
ing landfill or incineration systems are sufficiently adequate environmentally, economically,
and in terms of long-term capacity so as to preclude the need to pursue RR as a potential
waste disposal solution.
DESCRIPTION: The narrative should look ahead at least 10 years. If appropriate, the need to
procure new landfill sites should be discussed and major obstacles described. A rough cost
estimate for future disposal (including transportation to the disposal site) is developed.
This estimate is both on a per ton and an aggregate annual basis. The status of existing
landfills and incinerators in terms of available current capacities and remaining life, po-
tential for regionalization, environmental soundness and regulatory compliance, and cost is
evaluated. (See MA 105 and MA 107 for steps in a more detailed analysis.)
MAJOR DECISIONS: None
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: SAMPLE CITIZEN AND POLITICAL INTEREST number
I 002
PURPOSE: To determine on a preliminary basis whether citizen and political interest in RR is
sufficient to warrant exploring RR as a viable option, or sufficiently negative to preclude
it as a possibility. This is done by developing a brief narrative documenting the views of
various citizen and environmental groups and leaders on the subject of RR. This sampling
is also used to determine if there are strong opponents or proponents of RR in elected or
appointed positions.
DESCRIPTION: In most cases, the extent of citizen and political interest will be known.
Other cases will suggest the need for public hearings, meetings, or perhaps an informal
opinion poll conducted by contacting a list of selected local (elected and appointed) offi-
cials, citizen and public interest group representatives, and others knowledgeable about
the local political scene and solid waste activities and plans. Also the positions taken
by the press and other communications media are examined.
MAJOR DECISIONS: None.
MASTER ACTIVITY; CONDUCT PRELIMINARY MARKET SURVEY !•»___
003
PURPOSE: To determine on a preliminary basis whether the lack of acceptable local markets for
recovered energy and materials would preclude RR and to develop preliminary estimates of the
revenue that could be expected if various types of RR approaches were implemented locally.
DESCRIPTION: Major industries and utilities are contacted to assess interest in being con-
sidered as a market for RR. In some areas of the country it may be helpful for preliminary
identification to sight stacks visually from atop a tall building. Demand for steam, RDF,
and electric power is estimated, and potential energy revenues are calculated based on the
local price of fossil fuel. Material markets are contacted (See A 10801 - A 10805 for steps
in a more thorough investigation). On the basis of local fuel costs, develop an estimate of
the likely revenue that could be expected for refuse based energy if sold as RDF/dRDF, steam
and electricity. Note any major changes in fuel types utilized which are expected to take
place locally, such as a conversion of several major boilers from oil to coal. Also esti-
mate likely prices for steel and aluminum scrap, probably based on nearest area sales price
figures. The latter should be of sufficient accuracy for the analysis of MA 007.
MAJOR DECISIONS: Whom to contact.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: CONDUCT PRELIMINARY WASTE SUPPLY ASSESSMENT number
004
PURPOSE: To determine on a preliminary basis whether there are any waste supply problems
which are likely to preclude development of a RR system.
DESCRIPTION: Estimate potential waste quantities for municipal/commercial and nonhazardous
industrial refuse, separately identifying waste which is under municipal control and which
is privately collected. Consider different region sizes up to, for example, a 30-mile radius
or 1 million tons per year. Also identify any legal or other restrictions on directing waste
or having "put-or-pay" provisions in community contracts. Estimate the percent paper, steel,
aluminum, and glass and from the literature choose a value for waste as fuel RDF/dRDF and for
mass burning. A fairly rough estimate is sufficient as input to MA 007.
MAJOR DECISIONS: None.
MASTER ACTIVITY: ASSESS SOURCE SEPARATION POTENTIAL •••••«•••••
005
PURPOSE: To determine in a preliminary way whether source separation is precluded as a
possible option.
DESCRIPTION: The potential for a successful source separation program is evaluated by review-
ing a) the available markets for newsprint and paper, glass bottles and containers, and cans;
b) local attitudes toward voluntary versus mandatory source separation wastes; c) organiza-
tions and firms, including municipal waste collectors, that might now be 'or would become in-
volved in the collection, transportation, and/or marketing of the materials. This includes
a preliminary analysis of the economics of source separation. (See Activities under MA 109,
MA SSI, MA SS2, MA SS3 for a complete analysis.)
MAJOR DECISIONS: Whether pursuit of a source separation program should be continued or
precluded.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY; ASSESS ECONOMICS, ENVIRONMENTAL IMPACTS, AND PROCUREMENT number
METHODS OF RECOVERY TECHNOLOGIES «i^^«—••
I 006
PURPOSE: To identify possible RR system concepts to determine on a preliminary basis whether
the economics of RR are sufficiently competitive in the local environment to warrant further
consideration of RR as an option; also to produce a 3-4 page analysis of existing technolo-
gies, economics, environmental impacts, and procurement methods.
DESCRIPTION: Review the state-of-the-art in RR technology. Make rough projections of tipping
fees for RR based on literature cost data for selected technologies, local energy prices and
typical cost factors, O&M and revenue escalation rates. Develop alternatives based on pro-
cessing stations, communities involved (total tonnage), transportation network and transfer
stations, potential markets, possible participant and organizational roles. Consider options
in terms of procurement methods and risk allocation among participants. (See Activities
under MA 104, MA 105, MA 106, MA 107, MA 108, MA 111, MA 205, MA 209 for more complete anal-
ysis.) The result is a 3-4 page report evaluating the extent of technology development,
where used, and related success factors. For each proposal and site (where possible) the ex-
tent of environmental impact, or its uncertainty.
MAJOR DEiiblONS: Validity of data; extent of detail needed; format of narrative descriptions.
MASTER ACTIVITY: TEST APPROPRIATENESS OF PROCEEDING numoer
007
PURPOSE: To decide to defer or preclude consideration of RR or to initiate if possible, a
feasibility study, i.e., Phase I; to compare the results of MA 006 with traditional disposal
such as landfill, and to decide the technical approaches which appear feasible; to calculate
landfill upgrading and cost of operation in a given year (e.g., 5 years hence) as well as RR
in that year.
DESCRIPTION: If source separation is the only viable recovery system, proceed to Phase II,
MA SSI.The narrative developed as part of MA 007 tests initial estimates by describing
different procurement methods, relative costs, the need for local appropriations, and their
risks. The narrative serves as an educational tool, and basis for future discussion. Eval-
uate the results of MA 001 through MA 006. Then make a technical and public/political
decision on the merits and advisability of continuing to pursue RR. Briefly document the
conclusions, with supporting data, following careful review with concerned agencies and
individuals. Terminate effort if recovery is precluded. Otherwise, proceed into Phase I.
MAJOR DECISIONS: To preclude or defer further consideration of RR, or proceed into Phase I
subject to the availability of staff and funds; whether or not to proceed to Phase II source
separation; appropriated budget to proceed.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY". ORGANIZE PROJECT TEAM AND PUBLIC INFORMATION PROCESS number
101
PURPOSE: To involve all involved and affected parties from the beginning in order to develop
a project which can be accepted in the community and to develop people who understand the
project's evolution and can sell it to their constituents.
DESCRIPTION: The project director and project manager utilize their knowledge of the local
area to select and solicit members for the project team. The team's first task is to estab-
lish written policy goals and guidelines to be used for guiding the project.
MAJOR DECISIONS: What groups to involve in the project; the project objectives - what to ac-
complish, by when, what other parameters will affect the project; issues which might be ad-
dressed are procurement options, user fees, service area participants, nonmunicipal waste,
and related items.
number
MASTER ACTIVITY! SECURE REQUIRED RESOURCES •' "^
102
PURPOSE: The project scope is defined, based on the policy goals and guidelines developed ir>.
the previous master activity and allocated to in-house staff and consultants are hired.
DESCRIPTION: The project scope is defined and allocated to in-house staff and consultants.
In-house staff is committed, or hired and committed, and consultants are hired.
MAJOR DECISIONS: which tasks in-house staff is capable of performing; which consultants
to hire.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: SCREEN ENVIRONMENTAL REQUIREMENTS number
I 103
PURPOSE: Many environmental requirements can impact on costs and facility siting. These re-
quirements must be established very early so that they can be incorporated into the planning
process.
DESCRIPTION: Detailed information on air quality, air emission requirements, surface and
ground water use and restrictions, zoning restrictions, permits and permitting process, and
review (governmental and public) requirements is gathered.
MAJOR DECISIONS; A preliminary definition of the RR system aspects to be assumed for purposes
of environmental review (e.g., number of transfer stations, tons per day disposed).
MASTER ACTIVITY: CONDUCT TECHNOLOGY ANALYSIS r •
PURPOSE: To ascertain the availability, capabilities, advantages, disadvantages, and appro-
priateness of the various technologies for recovering the resources in solid waste.
DESCRIPTION: From past experience, telephone calls to manufacturers, suppliers, and managers
of existing facilities, and a literature review, the required information is obtained and
analyzed.
MAJOR DECISIONS: Whether or not all the required data has been obtained; whether or not the
obtained data is valid; format for technology presentation.
RESOURCE RECOVERY MANAGEMENT MODEL
-------
MASTER ACTIVITY; ANALYZE WASTE STREAM number
I 105
PURPOSE: The economics of RR projects are sensitive to changes in throughput, since it affects
the revenues derived from both the tipping fee and the sale of recovered energy and materials
(via central processing or source separation or both). Therefore, it is extremely important not
to overestimate the tonnage available. Seasonal variations in refuse generation must be known
to determine peak throughput rates and storage requirements. Compositional analysis is the
basis for determining the recoverable quantity of materials and energy, which in turn is used
to estimate revenues. Sludge quantities, composition, and disposal needs are used in determin-
ing whether co-disposal of sludge and refuse is feasible. All data should be agreed upon by
the involved agencies.
DESCRIPTION: Data from multiple sources are obtained and analyzed, and inconsistencies are
rectified.Weighing surveys and compositional analyses are conducted where applicable. Sludge
quantities, characteristics, and future disposal needs are defined. The effects of existing
source separation programs are factored into the estimates.
MAJOR DECISIONS: Credibility and adequacy of collected data; whether data should be supple-
mented: whether to perform weighing surveys.
MASTER ACTIVITY*. PERFORM DETAILED ENERGY MARKET ANALYSIS |N nu „ e,f
106
PURPOSE: To obtain a complete picture of the possible energy markets in the area since the
energy market is one of the key components of a RR project; the number of alternatives is con-
strained by the number of markets and therefore they must be identified as completely as
possible. This includes establishing general familiarity with the potential markets, their
technical constraints, the individuals involved, and the institutional questions which may
arise. All these items are necessary to explore because their results will set the tone for
conducting many remaining activities in the project.
DESCRIPTION: Utilizing lists of known fossil fuel users, a telephone screening is conducted.
The promising users are visited. Utilities in the area are factored from others. The basic
technical parameters are solicited and compiled in easily compared form. The availability of
energy is determined. Risks specifically related to the technologies available are noted.
Facilities are visited, demand and loads are recorded, and the match between demand and supply
of energy is made. Plans for the future are noted. A preliminary pricing formula is produced
for potential energy markets. Several meetings with the most likely markets are conducted
leading to a letter of interest. Letters of interest are solicited.
MAJOR DECISIONS: Identifying potential and viable markets; amount of fuel discount; whether
or not to solicit price in letter of interest.
RESOURCE RECOVERY MANAGEMENT MODEL
-------
MASTER ACTIVITY: ANALYZE EXISTING DISPOSAL OPTIONS number
107
PURPOSE: To examine the costs of existing facilities or readily obtainable facilities and
their ability to continue in their current mode of operation, consistent with applicable en-
vironmental codes. These facilities may be landfills, incinerators, other processing tech-
nologies, current sludge disposal lagoons, spreading areas and other disposal facilities.
DESCRIPTION: This activity looks at all existing facilities, assesses their conditions, and
analyzes whether or not they could be upgraded and the associated costs. The current system's
strengths and shortcomings must be clearly understood, as well as the cost to rectify those
facilities. A particular market may lend itself readily to retrofitting an incinerator, for
example, or a landfill may be easily and inexpensively expanded. These considerations are
analyzed completely.
MAJOR DECISIONS: Credibility of existing data or emissions testing; parameters for calcula-
tions; level of detail; role of neighboring areas; validity of findings; whether sludge dis-
posal facilities are sufficient in the long term, and co-disposal is therefore unnecessary,
number
MASTER ACTIVITY: CONDUCT MATERIAL MARKET ANALYSIS • i
108
PURPOSE: To obtain information on local markets for materials recovered from a central RR
facility and/or a source separation program. It is important to obtain market requirements
(specifications) for the recovered materials so that a determination can be made on the type
of technology and processing necessary to meet those requirements.
DESCRIPTION: A list of possible markets for the various materials is compiled and surveyed,
potential markets are identified and letters of interest are solicited. Existing source
separation programs are identified and analyzed, existing markets are identified, constraints
and plans for the future are noted.
MAJOR DECISIONS; Whether or not the initial list of possible markets is reasonably complete;
whether or not the survey questionnaire is complete and requests the necessary information.
RESOURCE RECOVERY MANAGEMENT MODEL
-------
MASTER ACTIVITY*. CONDUCT SOURCE SEPARATION FEASIBILITY number
I 109
PURPOSE: To obtain a solid basis for deciding whether or not to pursue implementation of a
source separation RR program.
DESCRIPTION: Collection practices are examined in detail, potential markets and their re-
quirements are identified, system parameters are developed, and a realistic system configura-
tion is developed with associated costs and revenues.
MAJOR DECISIONS: Whether the system is feasible or not; whether system is to be separate
curbside collection or self-haul to central collection points.
number
MASTER ACTIVITY! PERFORM PRELIMINARY ENVIRONMENTAL ANALYSIS I*™"™"•"•••
110
PURPOSE: To identify potential environmental problems and areas of environmental concern and
to provide environmental input into the development of project alternatives.
DESCRIPTION: Since many environmental concerns must be analyzed on a site specific basis,
this Master Activity should be performed in conjunction with MA 112.
A preliminary examination is made of air, water, noise and other environmental
impact categories. Site-specific requirements for air monitoring are determined, and the
projected impacts of different technologies are estimated and compared. The results may
form the basis for limiting the number of alternatives or constraining the conceptual design
of alternative scenarios.
MAJOR DECISIONS: Whether or not the existing air quality monitoring network is adequate.
RESOURCE RECOVERY MANAGEMENT MODEL
-------
MASTER ACTIVITY: ESTABLISH TRANSPORTATION ANALYSIS MODEL number
r_
PURPOSE: To prepare for later analysis of RR system transportation costs and evaluation of
alternative solutions. Transportation analysis can provide input to the determination of
facility scale, technology, and site.
DESCRIPTION: Transportation modeling can range from a rough cost estimate of a likely solution
calculated by hand to complex computer modeling, which can optimize the transportation con-
figuration for a region and also identify the system technology, scale, and site which would
best meet system objectives at the lowest cost. The extent of transportation analysis is de-
pendent upon service region size, potential markets for recovered materials and energy, avail-
able facility sites, existing waste transportation and disposal arrangements, and the depth
of analysis requested by interested citizen committees and representatives.
MAJOR DECISIONS: Extent of analysis desired for project and level of sophistication of the
technique of analysis; identification of desired outputs (costs, transportation configurations,
sensitivity analysis, economically preferred technology and scale).
MASTER ACTIVITY! PERFORM PRELIMINARY SITE ANALYSIS •——•—•
112
PURPOSE:
To establish the most desirable and probable sites for different components of the
RR system, including intermediate source separation, processing sites, residue landfill sites,
transfer station sites, and RR facility sites.
DESCRIPTION: Since environmental constraints can have an important bearing on site selection
and site ranking, this master activity should be performed in conjunction with MA 110.
The site analysis includes preliminary identification of site, estimate of
reasonableness based on environmental, socioeconomic, logistical, and public acceptability
criteria. The sites are nominated and preliminary analyses are performed for proximity to
markets, and site acceptability for all other aspects of the system.
MAJOR DECISIONS: Site ranking.
RESOURCE RECOVERY MANAGEMENT MODEL
-------
MASTER ACTIVITY*. PERFORM FINANCIAL, LEGAL, AND INSTITUTIONAL ANALYSIS number
nr
PURPOSE: To understand all constraints, issues, and risks facing the RR program so that
options can be formulated.
DESCRIPTION: Each RR project will have unique financing, legal, and institutional constraints
which must be recognized and addressed. This Blaster activity identifies all those issues,
recognizes the constraints and analyzes the options available for structuring the program.
MAJOR DECISIONS: Which constraints should be changed, which should remain and be worked
around; what are the options if the constraints are not changed.
MASTER ACTIVITY*. DEVELOP PROJECT ALTERNATIVES _____
114
PURPOSE: To specify all the possible projects which are reasonable to consider, and to
develop the rationale for the reason other projects are either not possible or are unreason-
able. The major potential alternatives are first formulated, then evaluated to set the stage
for the recommended plan and alternative.
DESCRIPTION; Taking into account waste quantity and composition, market, site, and techno-
logical requirements, the alternatives which are technically feasible are formulated. For
each alternative, the issues of regionalization, transportation, risks, financial, legal, and
institutional arrangements are analyzed and assessed, and conclusions are reached for each as
to: service area, transportation network, preferred financial and institutional arrangements,
risk assignments, technology configurations, potential sites, co-disposal potential, the
integration or independent operation of a source separation system, waste supply. Often, the
advantages and disadvantages of each project configuration are given.
MAJOR DECISIONS: Distillation of a myriad of possibilities into the most appropriate
alternatives.
RESOURCE RECOVERY MANAGEMENT MODEL
-------
MASTER ACTIVITY; ESTABLISH POLITICAL/PUBLIC DECISION PROCESS number
115
PURPOSE: To set up the process, which will be compatible with the public information process,
by which decisions will be made and adhered to. There is usually an established protocol in
municipalities for approaching key individuals and organizations which will be party to the
decision (a concurrence list).
DESCRIPTION: This task relies on precedent, protocol, imagination, and interface with the
public decision process in order to elicit a binding decision on the part of the municipality.
The ongoing public information process is factored into the decision, as well as the decision
of the elected officials.
MAJOR DECISIONS: Protocol required; mechanism for proceeding.
number
MASTER ACTIVITY; DEVELOP RECOMMENDATIONS AND REPORT —•___.
116
PURPOSE: To select a course of action to be pursued that will achieve the goals and is con-
sistent with the policy and guidelines set down in MA 101.
DESCRIPTION: The method for determining the order of preference of alternatives is developed
and used to select the recommended alternative. A draft Feasibility Analysis report is
written (including recommendations and an action plan) and distributed to the project team
for comment. The project team develops a consensus of revisions to the draft. The revisions
are made and the final Feasibility Analysis is adopted by the project team.
MAJOR DECISIONS: Whether or not the recommendations are consistent with the wishes of the
Community, whether or not to recommend co-disposal, whether or not to recommend source sepa-
ration, budget proposal for next phase.
RESOURCE RECOVERY MANAGEMENT MODEL
-------
MASTER ACTIVITY: OBTAIN POLITICAL/PUBLIC DECISION TO PROCEED number
nr
PURPOSE: To present information, obtain feedback and elicit a conscious decision from all
participants in the decision process, using criteria established in MA 115 to decide when
the overriding factor or consensus has been realized.
DESCRIPTION: All decisions to proceed with, postpone or terminate a RR project are made con-
sciously by the public decision process. There are many sublevels of decision which must be
factored in before the decision reaches the public and political realm. Then a consensus
or majority opinion is reached, based on input of the project team, wherein the future of
the project is clearly decided.
MAJOR DECISIONS; To proceed with, postpone or terminate the project; whether or not to
proceed with co-disposal; whether or not to proceed with source separation; the amount
of money appropriated for the next phase.
MASTER ACTIVITY*. PERFORM DETAILED SOURCE SEPARATION FEASIBILITY p__
SSI
PURPOSE: To refine the market requirements, system configuration and the estimates of per-
cent participation, percent recovery, costs, and revenues.
DESCRIPTION: A project team is formed; in-house staff is committed; consultants are hired; if
necessary a public opinion poll may be conducted (dependent on size of municipality) to estab-
lish the level of participation; separation and collection procedures are defined; quantity
estimates of recovered materials are derived, based on the percent participation obtained from
the public opinion poll; market requirements and prices are obtained; institutional and legal
requirements are defined; and system configuration, costs, and revenues are established.
MAJOR DECISIONS: Political/public decisions to proceed with source separation program.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: DEVELOP SOURCE SEPARATION PROGRAM number
SS2
PURPOSE: To structure a source separation program which is tailored to the local community
and meets its goals, requirements, and needs in accordance with the Political/Public Decision
To Proceed (A SS108).
DESCRIPTION: Based on the results of the political/public decisions in MA SSI, the program is
defined and tested, the resulting separated materials are brought to the potential markets,
and letters of interest are solicited based on the sample recovered material. The institution-
al and legal framework, as well as the publicity/public education program, is developed.
MAJOR DECISIONS: Political/public decision to proceed including the adoption of institu-
tional and legal framework (e.g., adopt ordinance mandating source separation, change franchise
contracts) and adopted budget adjustments (e.g., for publicity/public education, recycling
center, purchase of trucks).
MASTER ACTIVITY: EXECUTE PROGRAM number
SS3
PURPOSE: To commence operation of the source separation program in accordance with the
Political/Public Decision To Proceed (A SS207).
DESCRIPTION: Facilities are constructed, equipment is purchased, program is publicized, con-
tracts and ordinances are enforced, contracts on recovered material are signed after bids
have been recieved, all as described and decided on during the Policitical/Public Decision
To Proceed (A SS207).
MAJOR DECISIONS! Contractor selection and contract terms; size, type, and operational
parameters of the facilities.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY*. DEFINE PROJECT number
I 201
PURPOSE: To define elements of the RR project based on the Political/Public Decision (MA 117)
and all previous data, to develop strategies for removing any institutional barriers and for
furthering waste supply and market commitments, and to estimate the costs of the project.
This master activity may be unnecessary and can be reduced in scope or omitted if MA 117 has
not significantly changed the recommendations made in MA 116.
DESCRIPTION: The project to be pursued is outlined. Transportation, tipping fee, and life
cycle costs are estimated. Major elements to be addressed in this phase are identified in-
cluding roles, responsibilities, timetable and budget. Strategies for removing any insti-
tutional barriers and for furthering waste supply and market commitments are outlined.
MAJOR DECISIONS: The major problems to be addressed in the procurement planning phase;
"responsibilities of the in-house staff, consultants and other participants, scope and cost
of Phase II; whether or not additional weighing surveys are necessary.
MASTER ACTIVITY; DRAFT ENVIRONMENTAL ASSESSMENT AND DETERMINE SITE ,, i
PRIORITIES ,
202
PURPOSE: To identify potential environmental impacts of the proposed project and to estimate
costs associated with resolving these impacts; to evaluate and establish the priorities of
nominated system sites; and to write a draft environmental assessment report for use during
the process of securing sites (MA 203).
DESCRIPTION: The environmental impacts of the project are identified in quantitative and
qualitative terms for the areas of air and water quality, zoning and land use, traffic,
historical significance, and aesthetics. The associated effect of resolving these impacts
on project economics is estimated. Nominated sites are ranked based on the above impact
analysis and a draft environmental assessment report is prepared.
MAJOR DECISIONS; Quantification of impacts; procedure to rank sites; the amount of detail
required based on project parameters, local conditions, and State (and possibly Federal)
requirements.
RESOURCE RECOVERY MANAGEMENT MODEL
-------
MASTER ACTIVITY: SECURE SITES number
I 203
PURPOSE: To gain public acceptance of the proposed site(s) and to obtain purchase options
on preferred site(s).
DESCRIPTION: The Draft Environmental Assessment is presented to the elected officials and
community groups. Elected officials from participating communities and the respective com-
munity groups are solicited for project support. System sites and associated environmental
impacts of the resource recovery project are presented to the public via public meetings
for their comments. Potential site owners are approached and land purchase option agree-
ments are signed for the preferred site(s).
MAJOR DECISIONS: Environmental impacts are perceived to prohibit the resource recovery sys-
tem; price to be paid for the sites; incentives to be offered to the host communities;
should the sites be acquired by eminent domain.
MASTER ACTIVITY*. UPDATE PROJECT DEFINITION AND COSTS .. . i. n
204
PURPOSE: To estimate project costs more accurately based on secured site(s), to develop
strategies for removing any institutional barriers to the envisioned project configuration
and to present them to the elected officials if major changes (in the project or in the
elected officials) have developed since the previous presentation.
This MA may be reduced in scope if no significant changes have been made to the proj-
ect during MA 203.
DESCRIPTION: Facility costs are refined based on the amount of waste estimated (taking into
account existing, expanding, or new source separation programs) and the preliminary agree-
ments with the energy and materials markets obtained in Phase I. Previously calculated
(A 20102) transportation costs are revised if necessary and incorporated to estimate tipping
fees and life cycle costs for the different procurement approaches.
Detailed strategies are developed for removing any institutional barriers which block
the preferred configuration, and furthering waste supply and market commitments. These
strategies have been outlined in Phase I and MA 201. Any changes caused by developments
between then and now are made and additional details are added as necessary. These stra-
tegies are pursued in MA 206, MA 205 and MA 207, respectively.
MAJOR DECISIONS: Whether or not to perform this master activity if the preferred site(s) has
been obtained. If the site(s) actually obtained is significantly different, this master ac-
tivity may involve major restructuring of the project.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: STRENGTHEN WASTE SUPPLY COMMITMENTS number
205
PURPOSE: To secure the waste stream and estimate accurately the types and tonnages to be
included in the RR project. Legal questions of waste stream control and contracting are
addressed in MA 206; MA 205 deals with non-institutional questions of securing the waste
stream related to municipal intent or desire to deliver waste to the RR system.
DESCRIPTION: Accurate information regarding the amount and content of the waste supply is
collected. Each community must decide the waste tonnage for which it will be responsible.
Level of expected commitment of waste from the commercial and industrial waste of each com-
munity is established.
MAJOR DECISIONS: The waste tonnage each town should control and for which it will be respon-
sible; methods of waste stream control available for commercial/industrial waste; whether to
establish a community committee to analyze risks and possibly obviate the need for new legis-
lation in MA 206.
MASTER ACTIVITY; STRUCTURE RISKS TO RESOLVE INSTITUTIONAL PROBLEMS L
206
PURPOSE: To structure risks according to the favored scenarios of MA 113, MA 114, MA 117,
MA 201 and MA 204 and to seek the legislative action or the community action in attempting
to effect the favored scenario. The legislative changes and community action will dictate
the risk structure. If attempts at those changes or actions are successful, the scenario
stands are structured. If attempts at those changes or actions are unsuccessful, the results
are incorporated to prepare a favored scenario for risks, or perhaps to determine the only
possible course of action open to the community.
DESCRIPTION: MA 113, MA 114, MA 117, MA 201 and MA 204 already have stated the desired proj-
ect posture. In so doing, contracting constraints as well as financing, procurement, and
energy sales constraints were identified, and the course of action which should be pursued
to rectify unwanted constraints was identified. In some cases the course was modified leg-
islation; in other cases the decision was to work with the legal mechanism in place. This
activity pursues the legislative changes indicated. If the legislation is partly or wholly
unsuccessful, this master activity incorporates the results of the legislative process, and
sets a course of action for risk assignment. One arrangement or several different institu-
tional arrangements are constructed which will result in that desired risk posture. The re-
sults of this activity are then factored into the overall project position of MA 209. If no
legislative changes are required, and the method for proceeding is not altered by MA 205,
the project definition of MA 204 holds unamended.
MAJOR DECISIONS: If appropriate legislation was identified, how to draft the legislation; if
defeated, whether to return next session or just work around the problem; the mix of institu-
tional arrangements which should result in an acceptable risk posture.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: STRENGTHEN MARKET COMMITMENTS number
207
PURPOSE: To secure market commitments for energy and materials in the form of letters of
intent to purchase. Legal questions and barriers to securing markets are addressed in MA 206,
but this activity addresses the intent and desire to participate on the part of the market
regardless of whether the legal mechanism or precedent exists to allow participation by the
market with the municipality or vice-versa.
DESCRIPTION: The lead agency recontacts viable energy and material markets to determine:
a) the intent of the market to cooperate in the project, b) purchase requirements and con-
tract terms.
MAJOR DECISIONS: Which market to approach; whether or not to include a pricing formula
in the letter of intent; whether or not to develop a draft contract.
number
MASTER ACTIVITY: UPDATE PROJECT DEFINITION AND COSTS .
208
PURPOSE: To update project cost estimates based on secured sites, further commitments from
waste suppliers and markets and the decisions and options from the selection of technology(s) ,
risk assignment, procurement and financing approaches developed concurrently during MA 209.
DESCRIPTION: Facility costs are refined based on secured sites, the amount of waste committed
(taking into account source separation) and the preliminary agreements with the energy and
materials markets. Previously calculated (MA 201 and MA 204) transportation costs continue
to be incorporated to estimate tipping fee and life cycle costs. This master activity is
performed in conjunction with MA 209 and adjusted accordingly.
MAJOR DECISIONS: Whether or not to perform this master activity, since if very little change
in the project has occurred during MA 205, MA 206, and MA 207, the results of either MA 201
or MA 204 may be used.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY; SELECT TECHNOLOGY(s), RISK ASSIGNMENT, PROCUREMENT number
~~ ' AND FINANCING APPROACH: WRITE REPORT •—•--•—i
209
PURPOSE: To provide definitive information on the scope of the RR system and the risks which
the project participants are to assume. This information is needed for the Political/Public
Decision to proceed.
DESCRIPTION: Based on the analysis of energy and materials markets, waste quantity and com-
position (taking into account source separation programs), environmental impacts and site(s),
the preferred RR technology(s) is selected. Previous cost analyses have assumed specific
technologies; now, however, the desired technology is formally stated. The project team
also decides on the amount of risk to assume in the project and how the RR system is to be
owned and operated.
MAJOR DECISIONS; Selection of most appropriate technology(s), procurement and financing
approach and risk assignment.
MASTER ACTIVITY; OBTAIN POLITICAL/PUBLIC DECISION TO PROCEED
210
PURPOSE: To obtain an official decision to proceed with the project as defined in Phase II
from all involved agencies.
DESCRIPTION; A proposed project scope has been developed by the project team with the coop-
eration of some elected officials. However, in this master activity, all participating
elected officials formally accept the project structure, and then make a decision to proceed
to Phase III. While elected officials may agree with the project, they should get public
reaction and support before they make a decision to proceed. Part of the activity is for
the elected officials of both the lead agency and any participating communities to come to
a conscious decision to endorse the project, to so state the support, and to demonstrate
their commitment by resolution to appropriate the required funds budgeted for Phase III in
MA 209.
MAJOR DECISIONS; Whether or not to proceed with the project structure, risk assignment,
and procurement and financing approach.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY; ESTABLISH ADMINISTRATIVE FRAMEWORK (TURNKEY) number
I 301
PURPOSE: To identify and secure commitments from the public and private organizational
resources necessary to carry out the procurement process and to structure and schedule this
process so as to accommodate the required inputs.
DESCRIPTION: During Phase II, the elected officials have selected or created a lead agency
for Phase III. This agency now reviews the project status and then determines and obtains
commitments from the project team participants, hires consultants, establishes and maintains
liaison with involved agencies, plans for public and industry involvement, and outlines the
approach for soliciting and evaluating proposals from private industry (some or all of this
may already be established and does not have to be repeated).
MAJOR DECISIONS: Selection of lead agency and key personnel; composition of the project
team for Phase III; selection of consultants; plans for public and industry involvement;
procurement plan and schedule.
MASTER ACTIVITY*. PRODUCE RFP (TURNKEY) •
302
PURPOSE: To specify the content and organization of proposals from potential contractors, and
to acquaint the proposers with the various technical, managerial, financial, and institutional
aspects of the project; to indicate clearly the desires of the lead agency in seeking a turn-
key approach. To prequalify contractors and obtain their input on a draft RFP (optional).
DESCRIPTION: The RFP should clearly transmit the proposal requirements of the lead agency to
the potential proposers. These requirements produce proposals of sufficient content and uni-
form organization for comparable and effective evaluation. An RFQ may be issued to select
companies for the receipt of the RFP, thereby limiting the subsequent number of proposals.
The turnkey approach implies certain needs and expectations on the part of the lead agency,
and the intent should be clearly stated in the RFP. This master activity is designed for pro-
curement of either large or small scale systems, or a combination of the two. Regardless of
size, the same areas should be addressed and resolved. The RFP is built on the system -
large or small - defined and refined in MA 007, MA 116, MA 201, MA 204 and MA 209. If necessary,
waste quantities are updated, taking into account source separation programs and new, expanded
and upgraded sewage treatment plants (for co-disposal projects), and the anticipated effects
of source reduction. An optional step is to produce and issue an RFP in order to prequalify
contractors and obtain their input on the draft RFP.
MAJOR DECISIONS; Whether or not to issue RFQ; selection of qualified proposers; definition of
parameters in RFP.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY; ACQUIRE CONTRACTOR (TURNKEY) number
I 303
PURPOSE: To engage the services of a contractor to carry out the project as defined in
the RFP.
DESCRIPTION: The contractor is selected following an extensive evaluation of proposals and
is contracted following either a sequential or simultaneous negotiation procedure. The
contract negotiations actually begin upon receipt of proposals and are continued through
proposer presentations until it is decided either that one company is superior or that further
elaboration is required with a limited number of them. After selection of a preferred pro-
poser, a second proposer should be selected as an alternate in the event of unforseen diffi-
culties with the preferred contractor. A key consideration is the responsiveness of the
proposals to the RFP; no further negotiation is needed if a proposer meets all the require-
ments of the RFP and the proposed system is acceptable according to the principal criteria.
MAJOR DECISIONS: Evaluation and ranking of proposals; sequential or simultaneous negotiations;
final form of contract.
number
MASTER ACTIVITY: PERFORM ENVIRONMENTAL ASSESSMENT (TURNKEY) f^———
304
PURPOSE: To prepare an environmental assessment in conjunction with securing permits where
necessary to assure all involved agencies, the markets, and the public that the project is
viable.
DESCRIPTION; The environmental assessment required varies widely among municipalities in
complexity and review criteria. In some cases it may not be necessary to perform an environ-
mental assessment. Where it is required, the assessment is usually done by a consultant for
U.S. EPA or a State environmental agency and considers all air, water, noise, safety, and
aesthetic requirements.
MAJOR DECISIONS: Identification of the critical items for the system; what level of detail
the assessment should involve; whether or not to directly involve the turnkey contractor.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY; ACQUIRE WASTE SUPPLY CONTRACTS (TURNKEY) iTumber
305
PURPOSE: To develop final agreements between the lead agency and communities for the supply
of waste. This is the key agreement between the lead agency and the communities which identi-
fies the service to be provided, the risks to be borne by either party, and the method of
compensation to reflect such service and related risks. If a co-disposal project is being
pursued, proper commitments of sewage sludge are also pursued.
DESCRIPTION: The communities and the lead agency will negotiate a contract for the supply
of waste, whose revenues will partially offset the costs and act as security for financing.
Provisions for existing or future source separation programs; transportation costs; separate
industrial/commercial wastes; and previously committed host community incentives are considered
for inclusion in these agreements as appropriate. Bond and other counsel, depending on the
form of financing, will review the legality and efficacy of the document, at which time it
must be approved by each participating community, which may involve a substantial educational
effort. If a co-disposal project is being pursued, the commitment of sewage sludge and septic
wastes (treated as appropriate) is sought for inclusion in the system. In the case of a
single municipality or single controlling agent, the waste supply may be readily available
without specific community contracts, and this task is virtually unnecessary.
MAJOR DECISIONS: What risk posture to take on industrial/commercial waste; whether to take a
hard or soft negotiating posture on draft contracts; what risks the lead agency should take
and what risks the communities should take.
MASTER ACTIVITY; SECURE PRECONSTRUCTION PERMITS (TURNKEY) ——«~—*»
306
PURPOSE: To secure necessary permits such as air quality, NPDES, construction, operation,
and highway permits where required before extensive design is performed. Principally to
assure the lead agency; the financial community (if revenue bond financing is anticipated);
the market(s); participating communities; and the public that the project is viable and will
meet all regulatory requirements.
DESCRIPTION: Depending on State and local requirements, various types of permits may need to
be secured prior to final design and construction in order for the project to have a reasonable
probability of success. Some of the permits are contingent upon an acceptable site plan, ex-
pected emissions and effluents. The permits are issued. This master activity is performed in
conjunction with MA 307 since meeting permit requirements may cause modifications to the con-
tractor's proposed design.
MAJOR DECISIONS: Which agencies should be contacted; which permits should be applied for
during this master activity, whether or not design modifications are necessary to meet the
permit requirements.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY*. PERFORM PRELIMINARY DESIGN (TURNKEY) number
(Performed in Conjunction with Master Activity 306) ^
307
PURPOSE: To produce technical information from the turnkey contractor for preconstruction
permits which are pursued for the purposes stated in MA 306; to assure that the proposal
(and the contractor's preliminary design) meets the permit requirements of MA 306 and the
environmental requirements of MA 304.
DESCRIPTION: Certain major preconstruction permits, such as air quality or water quality
(e.g., for cooling water), may require additional technical data for evaluation bv the
regulatory agencies. Other examples of potential permit requirements are zoning approvals
contingent on landscape architecture or solid waste facility permits requiring rodent and
odor control details. Any preliminary design work in support of meeting permit require-
ments is performed as part of this master activity.
MAJOR DECISIONS: Level of effort required to support permit submittals; level of detail
of design work; source of funds to perform enough of the design to support MA 304 and MA 306.
number
MASTER ACTIVITY: ACQUIRE MARKET CONTRACTS (TURNKEY) f«i__.
308
PURPOSE: To develop final agreements by conversion of preliminary commitments or letters of
intent obtained during Phases I and II into contractually binding documents between the lead
agency and the buyer(s) of energy (and materials).
DESCRIPTION: The lead agency will negotiate and secure contracts for sale of energy and
materials.Revenues from such contracts will partially offset the cost of RR. Negotiations
for the sale of energy to utilities should include liaison with the PUC. In the case of RDF
production, final contracts may not be deemed necessary at this time, depending on the amount
of risk which the lead agency (and possibly the communities in a multi-jurisdictional project)
is willing to bear. For materials recovery it may be desirable to wait for the facility to
become operational before contracting for the sale of the product.
MAJOR DECISIONS: What level of compensation is appropriate; what risks should be borne by the
lead agency; what risks should be borne by the market; whether or not to seek materials market
contract(s).
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY*. SECURE FINANCING (TURNKEY) number
309
PURPOSE: To secure capital for the construction of RR and related facilities.
DESCRIPTION: There are basically two financing methods available when a governmental organi-
zation owns the facility. General obligation bond financing is the method often used for
financing publicly-operated projects and places the faith and credit of the sponsoring juris-
diction behind the project. Municipal revenue bond financing pledges the project revenues
to guarantee the debt, thus shifting some of the risk from the owner to the user (if they
are one and the same, there is no substantial difference between the two methods). Some
States offer umbrella bond sales for obtaining a lower interest rate. The risks, however,
usually remain with the local government. State or Federal aid in the form of grants, loans
or loan guarantees may also be available; however, since the terms and conditions of these
vary with State and project, they are not discussed here; the exact method of financing is
project and locale specific.
MAJOR DECISIONS: Type, details, and timing of bond issue.
MASTER ACTIVITY*. ESTABLISH ADMINISTRATIVE FRAMEWORK (A/E) •••••••—•
311
PURPOSE: To identify and secure commitments from the public and private organizational
resources necessary to carry out the procurement process and to structure and schedule
this process so as to accommodate the required inputs.
DESCRIPTION: During Phase II the elected officials have selected or created a lead agency
for Phase III. This agency now reviews the project status and then determines and obtains
commitments from the project team participants, hires consultants, establishes and maintains
liaison with involved agencies, plans for public and industry involvement, and outlines the
approach for soliciting and evaluating proposals from private industry (some or all of this
may already be established and does not have to be repeated).
MAJOR DECISIONS: Selection of lead agency and key personnel; composition of the project
team for Phase III, selection of consultants; plan for public involvement; procurement plan
and schedule.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: ACQUIRE PRELIMINARY DESIGN (A/E) number
I 312
PURPOSE: To have an engineer perform the preliminary design of the appropriate facilities
and address the critical environmental issues which are necessary to: a) decide on the
appropriate plant configuration; b) obtain preconstruction permits; c) obtain waste supply
and market contracts; d) satisfy concerns of project impact; and e) refine project economics.
DESCRIPTION: The engineer performs preliminary design (40% of total design work) and
addresses all issues related thereto. Close liaison is maintained with agencies issuing
permits for the facility, and their input and comments are solicited. If necessary, waste
quantities are updated taking into account source separation programs, and new, expanded
or upgraded sewage treatment plants (for co-disposal projects), and the anticipated effects
of source reduction.
MAJOR DECISIONS: Whether to use A/E already on the team or to seek another; what percentage
of the total design to complete; source of funds for the preliminary design.
MASTER ACTIVITY: SECURE PRECONSTRUCTION PERMITS (A/E) »—•——«
313
PURPOSE: To secure necessary permits such as air quality, NPDES, construction, operation,
and highway permits where required, before extensive design is performed; to assure the
financial community that the project is indeed viable, and to assure communities and markets
that the project is viable.
DESCRIPTION: Depending on local requirements, various types of permits may need to be secured
for the project to have a reasonable probability of success. Some of the permits are con-
tingent upon an acceptable site location, plan, expected emissions and effluents. The permits
are issued.
MAJOR DECISIONS: Conceptual design; which permits should be pursued earliest.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY*. PERFORM ENVIRONMENTAL ASSESSMENT (A/E) number
31'J
PURPOSE: To prepare an environmental assessment in conjunction with securing permits where
necessary to assure all the involved agencies, the markets, and the public that the project
is viable.
DESCRIPTION: The environmental assessment required varies widely among municipalities in
complexity and review criteria. In some cases it may not be necessary to perform an environ-
mental assessment. Where it is required, the assessment is usually done by a consultant for
U.S. EPA or a State environmental agency and considers all air, water, noise, safety, and
aesthetic requirements.
MAJOR DECISIONS: Identify the critical items for this system and what level of detail the
assessment should involve.
number
MASTER ACTIVITY; ACQUIRE WASTE SUPPLY CONTRACTS (A/E) |——•—•
315
PURPOSE: To develop final agreements between the lead agency and communities for the supply
of waste. This is the key agreement between the lead agency and the communities which identi-
fies the service to be provided, the risks to be borne by either party, and the method of
compensation to reflect such service and related risks. If a co-disposal project is being
pursued, proper commitments of sewage sludge are also pursued.
DESCRIPTION: The communities and the lead agency will negotiate a contract for the supply of
waste, whose revenues will partially offset the costs and act as security for financing.
Provisions for existing or future source separation programs; transportation costs; separate
industrial/commercial wastes; and previously committed host community incentives are con-
sidered for inclusion in these agreements as appropriate. Bond and other counsel, depending
on the form of financing, will review the legality and efficiency of the document, at which
time it must be approved by each participating community, which may involve a substantial
educational effort. If a co-disposal project is being pursued, the commitment of sewage sludge
and septic wastes (treated as appropriate) is sought for inclusion in the system. In the case
of a single municipality or single controlling agent, the waste supply may be readily available
without specific community contracts, and this task is virtually unnecessary.
MAJOR DECISIONS^ What risk posture to take on industrial/commercial waste; whether to take a
hard or soft negotiating posture on draft contracts; what risks the lead agency should take
and what risks the communities should take.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: ACQUIRE DESIGN AND CONTRACTOR (A/E) number
316
PURPOSE: To complete final design and acquire the contractor(s) who will construct the RR
facility according to the design.
DESCRIPTION: The preliminary design (with any revisions required by MA 313 and MA 314) is
used as the base for completing the final design including drawings, specifications, bid and
contract documents. The procurement procedure should follow the local community's standard
bidding procedures for acquiring a lowest responsible bidder for the construction project.
MAJOR DECISIONS: Whether or not the design meets all the permit and environmental constraints
of MA 313 and MA 314; whether or not to accept construction bids and sign the construction con-
tracts; whether one contract or multiple contracts is required or desirable.
MASTER ACTIVITY; ACQUIRE MARKET CONTRACTS (A/E) •
317
PURPOSE: To develop final agreements by conversion of preliminary commitments or letters of
intent obtained during Phases I and II into contractually binding documents between the lead
agency and the buyer(s) of energy (and materials).
DESCRIPTION: The lead agency will negotiate and secure contracts for the sale of energy and
materials.Revenues from such contracts will partially offset the cost of RR. Negotiations
for sale of energy to utilities should include liaison with the PUC. In the case of RDF
production, final contracts may not be deemed necessary at this time, depending on the amount
of risk which the lead agency (and possibly the communities in a multi-jurisdictional project)
is willing to bear. For materials recovery it may be desirable to wait for the facility to
become operational before contracting for the sale of the product.
MAJOR DECISIONS: What level of compensation is appropriate; what risks should be borne by
the lead agency; what risks should be borne by the market; whether or not to seek materials
market contract(s).
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY: SECURE FINANCING (A/E) number
I 318
PURPOSE:
To secure capital for the construction of RR and related facilities.
DESCRIPTION: There are basically two financing methods available when a governmental
organization owns the facility. General obligation bond financing is the method often
used for financing publicly-operated projects and places the faith and credit of the
sponsoring jurisdiction behind the project. Municipal revenue bond financing pledges the
project revenues to guarantee the debt, thus shifting some of the risk from the owner to
the user (if they are one and the same, there is no substantial difference between the two
methods). Some States offer umbrella bond sales for obtaining a lower interest rate. The
risks, however, usually remain with the local government. State or Federal aid in the
form of grants, loans, or loan guarantees may also be available; however, since the terms
and conditions of these vary with State and project, they are not discussed here. The
exact method of financing is project specific.
MAJOR DECISIONS: Type, details, and timing of bond issue.
MASTER ACTIVITY' ESTABLISH ADMINISTRATIVE FRAMEWORK (FULL SERVICE) number
321
PURPOSE: To identify and secure commitments from the public and private organizational
resources necessary to carry out the procurement process and to structure and schedule
this process so as to accommodate the required inputs.
DESCRIPTION: During Phase II the elected officials have selected or created a lead agency
for Phase III. This agency now reviews the project status and then determines and obtains
commitments from the project team participants, hires consultants, establishes and maintains
liaison with involved agencies, plans for public and industry involvement, and outlines the
approach for soliciting and evaluating proposals from private industry (some or all of this
may already be established and does not have to be repeated).
MAJOR DECISIONS: Selection of lead agency and key personnel; composition of the project
team for Phase III; selection of consultants; plans for public involvement; procurement plan
and schedule.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY*. PRODUCE RFP (FULL SERVICE) number
I 322
PURPOSE: To specify the content and organization of proposals from potential contractors
and to acquaint the proposers with the various technical, managerial, financial, and
institutional aspects of the project including risk allocation and revenue sharing. To
obtain comments on a draft RFP (and other input) from potential contractors. To prequalify
potential contractors (optional).
DESCRIPTION: The RFP should clearly transmit the proposal requirements of the lead agency
to the potential proposers. These requirements produce proposals of sufficient content
and uniform organization for comparable and effective evaluation. An RFQ may be issued to
select companies for the receipt of the RFP, thereby limiting the subsequent number of
proposals. This master activity is designed for a full service procurement of either large
or small scale systems, or a combination of the two. Regardless of size, the same areas
of concern should be addressed and resolved. The RFP is built on the system, large or small,
and defined and redefined in MA 007, MA 116, MA 201, MA 204 and MA 209. If necessary,
waste quantities are updated, taking into account source separation programs and new, ex-
panded or upgraded sewage treatment plants (for co-disposal projects), and the anticipated
effects of source reduction.
MAJOR DECISIONS: Whether to issue RFQ; selection of qualified proposers; definition of
parameters in RFP.
MASTER ACTIVITY: ACQUIRE CONTRACTOR (FULL SERVICE) f™"^"™1™"^
323
PURPOSE: To engage the services of a contractor to carry out the project as defined in the
RFP.
DESCRIPTION: The contractor is selected following an extensive evaluation of proposals and
is contracted following either a sequential or simultaneous negotiation procedure. The con-
tract negotiations actually begin upon receipt of proposals and are continued through pro-
poser presentations until it is decided either that one company is superior or that further
elaboration is required with a limited number of them. After selection of a preferred pro-
poser, a second proposer should be selected as an alternate in the event of unforeseen
difficulties with the preferred contractor. A key consideration is the responsiveness of the
proposals to the RFP. Further negotiations are needed even if a proposer meets all the re-
quirements of the RFP and the proposed system is acceptable according to the principal criteria,
since detailed contractual language will have to be agreed to by all parties to the transaction.
MAJOR DECISIONS: Evaluation and ranking of proposals, sequential or simultaneous negotiations,
final form of contract.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY; PERFORM ENVIRONMENTAL ASSESSMENT (FULL SERVICE) number
1324
PURPOSE: To prepare an environmental assessment in conjunction with securing permits where
necessary to assure all involved agencies, markets, and the public that the project is viable.
DESCRIPTION: The environmental assessment required varies widely among municipalities in
complexity and review criteria. In some cases it may not be necessary to perform an environ-
mental assessment. Where it is required, the assessment is usually done by a consultant for
U.S. EPA or a State environmental agency and considers all air, water, noise, safety, and
aesthetic requirements.
MAJOR DECISIONS: Identification of the critical items for the system; what level of detail
the assessment should involve; whether or not to directly involve the full service contractor.
number
MASTER ACTIVITY; SECURE PRECONSTRUCTION PERMITS (FULL SERVICE) ——-—m
325
PURPOSE: To secure necessary permits such as air quality, NPDES, construction, operation,
and highway permits where required, before extensive design is performed, principally to
assure the lead agency; the contractor (if contractor equity is involved); the financial
community (if case revenue bond financing is anticipated); the market(s); participating
communities and the public that the project is viable and will meet all regulatory requirements.
DESCRIPTION: Depending on State and local requirements, various types of permits may need
to be secured prior to final design and construction for the project to have a reasonable
probability of success. Some of the permits are contingent upon an acceptable site plan,
expected emissions and effluents. The permits are issued. The master activity is performed
in conjunction with MA 328, since meeting permit requirements may cause modifications to the
contractor's proposed design. The permit applicant will be either the lead agency or the
full service contractor, depending on the type of financing employed and the contractual
arrangements of the project.
MAJOR DECISIONS: Which agencies should be contacted; which permits should be applied for
during this master activity; whether or not design modifications are necessary to meet the
permit requirements; whether the lead agency or the full service contractor should be the
applicant for the permits.
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY; ACQUIRE WASTE SUPPLY CONTRACTS (FULL SERVICE) number
I 326
PURPOSE: To develop final agreements between the lead agency or the full service contractor
and communities for the supply of waste. This is the key agreement for the communities and
identifies the service to be provided, the risks to be borne by either party, and the method
of compensation to reflect such service and related risks. If a co-disposal project is
being pursued, proper commitments of sewage sludge are also pursued.
DESCRIPTION: The communities and the lead agency or the full service contractor will negoti-
ate a contract for the supply of waste, whose revenues partially offset the costs and act as
security for financing. Provisions for existing or future source separation programs; trans-
portation costs; separate industrial/commercial wastes; and previously committed host communi-
ity incentives are considered for inclusion in these agreements as appropriate. Bond and
other counsel, depending on the form of financing, will review the legality and efficacy of
the document, at which time it must be approved by each participating community, which may
involve a substantial educational effort. If a co-disposal project is being pursued, the com-
mitment of sewage sludge and septic wastes (treated as appropriate) is sought for inclusion
in the system. In the case of a single municipality or single controlling agent, the waste
supply may be readily available without specific community contracts, and this task may be
unnecessary unless the lead agency is to contract with the full service contractor for the
supply of waste, which only reduces the scope.
MAJOR DECISIONS; What risk posture to take on industrial/commercial waste; whether to
take a hard or soft negotiating posture on draft contracts; what risks the lead agency
or the full service contractor should take and what risks the communities should risk.
MASTER ACTIVITY; ACQUIRE MARKET CONTRACTS (FULL SERVICE) .••—___
327
PURPOSE: To develop final agreements by conversion of preliminary commitments or letters of
intent obtained during Phases I and II into contractually binding documents between the lead
agency or the full service contractor and the buyer(s) of energy (and materials).
DESCRIPTION: The lead agency or the full service contractor (depending upon the contractual
agreements arrived at in MA 323) will negotiate and secure contracts for sale of energy and
materials. Revenues from such contracts will partially offset the cost of RR. Negotiations
for the sale of energy to utilities should include liaison with the PUC. In the case of RDF
production, final contracts may not be deemed necessary at this time, depending on the amount
of risk which the lead agency or the full service contractor (and possibly the communities
in a raulti-jurisdictional project) is willing to bear. For materials recovery it may be
desirable to wait for the facility to become operational before contracting for the sale of
the product.
MAJOR DECISIONS: What level of compensation is appropriate; what risks should be borne by
the lead agency; what risks should be borne by the market; whether or not to seek materials
market contract(s).
RESOURCE RECOVERY MANAGEMENT MODEL
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MASTER ACTIVITY; PERFORM PRELIMINARY DESIGN (FULL SERVICE) number
(Performed in Conjunction with Master Activities ••^•••••^^
324 and 325) I
PURPOSE: To produce technical information from the full service contractor for preconstruc-
tion permits which are pursued for the purposes stated in MA 325; to assure that the proposal
(and the contractor's preliminary design) meets the requirements of MA 324 and MA 325.
DESCRIPTION: Certain major preconstruction permits, such as air quality or water quality
(e.g., for cooling water) may require additional technical data for evaluation by the
regulatory agencies. Other examples of potential permit and environmental requirements
are zoning approvals contingent on landscape architecture or solid waste facility permits
and public hearings requiring rodent and odor control details. Any preliminary design work
in support of meeting permit requirements is performed as part of this master activity.
MAJOR DECISIONS: Level of effort required to support permit submittals; level of detail of
design work; source of funds to perform enough of the design to support MA 304 and MA 306.
MASTER ACTIVITY: SECURE FINANCING (FULL SERVICE) r
329
PURPOSE: To secure capital for the construction of the RR and related facilities; to choose
one or some combination of a number of financing alternatives that provides capital at the
lowest cost consistent with the level of risk that a public jurisdiction is willing to take.
DESCRIPTION: A number of financing options exist, including partial loans and grants,
municipal general obligation bonds, municipal revenue bonds, 100% corporate financing, 100%
tax-exempt revenue bonds. Equity participation can provide lowest cost financing based upon
current tax laws, but also is the most complex to implement. In some situations, the method
of financing may be supported by loan guarantees. Any or all of these methods may be used
depending on the size and locale of the project. The more complex approach of leveraged
financing is illustrated in A 32902 and A 32903. Other approaches can also be used.
MAJOR DECISIONS; Type of financing to pursue; establishment and approval of local financing
authority for tax-exempt bonds; timing of bond issue.
* U.S. GOVERNMENT PRINTING OFFICE 1980 O— 311-726/3704
RESOURCE RECOVERY MANAGEMENT MODEL
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EPA REGIONS
U.S. EPA, Region 1
Solid Waste Program
John F. Kennedy Bldg.
Boston, MA 02203
617-223-5775
U.S. EPA, Region 2
Solid Waste Section
26 Federal Plaza
New York, NY 10007
212-264-0503
U.S. EPA, Region 3
Solid Waste Program
6th and Walnut Sts.
Philadelphia. PA 19106
215-597-0980
U.S. EPA, Region 4
Solid Waste Program
345 Courtland St., N.E.
Altanta, GA 30308
404-881-3016
U.S. EPA, Region 5
Solid Waste Program
230 South Dearborn St.
Chicago, IL 60604
312-353-2197
U.S. EPA, Region 6
Solid Waste Section
1201 Elm St.
Dallas, TX 75270
214-767-2645
U.S. EPA, Region 7
Solid Waste Section
324-E 11th St.
Kansas City, MO 64108
816-374-3307
U.S. EPA, Region 8
Solid Waste Section
1860 Lincoln St.
Denver, CO 80295
303-837-2221
U.S. EPA, Region 9
Solid Waste Program
215 Fremont St.
San Francisco, CA 94105
415-556-4606
U.S. EPA, Region 10
Solid Waste Program
1200 6th Ave.
Seattle, WA 98101
206-442-1260
uo 1855c
SW-768
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