c/EPA
United States
Environmental Protection
Agency
Air and Radiation
6202J
EPA 430-B-96-080
December 1996
Helping Landfill Owners Achieve
Effective, Low-Cost Compliance with
Federal Landfill Gas Regulations
LANDFILL METHANE
OUTREACH PROGRAM
Recyded/Recydabte
Printed on paper that contains
at least 50% recycled fber
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ACKNOWLEDGMENTS
SCS Engineers prepared this report under Work Assignment 1-2 of U.S. Environmental
Protection Agency Contract No. 68-W6-0004. The principal authors were Mark Najarian,
P.E., and Anne Kaufmann. The authors wish to thank Tom Kerr of the U.S.
Environmental Protection Agency for guidance and comment during the preparation of
this document. Mention of trade names or commercial products does not constitute
endorsement or recommendation for use.
This document is intended to be an implementation aid for landfill owners and operators.
This document does not affect in any way the requirements of the regulations as
promulgated on March 12, 1996. Any questions or conflicts between the regulations
and this document should be directed to:
U.S. Environmental Protection Agency
Atmospheric Pollution Prevention Division
Methane Branch
Mail Code 6202 J
401 M. Street, SW
Washington, D.C. 20460
Tel: 202/233-9768
Fax: 202/233-9569
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TABLE OF CONTENTS
SECTION
PAGE
1.0 INTRODUCTION . 1
Background 1
Purpose of this Booklet 1
2.0 DETERMINING APPLICABILITY 2
Step 1: Is Your Landfill Affected by the Landfill Rule? 3
Step 2: Is Your Landfill Regulated by the NSPS or EG? 4
Step 3: Does Your Landfill Meet the Design Capacity Threshold? 5
Step 4: What are Your Landfill's Annual NMOC Emissions? 6
3.0 MEETING THE REQUIREMENTS OF THE LANDFILL RULE 7
Step 1: Submitting Compliance Reports 7
Step 2: Installing a Gas Collection System 9
Step 3: Destroying LFG at 98 Percent Efficiency 11
Step 4: Adhering to Operation/Maintenance Procedures 11
Step 5: Following Recordkeeping and Reporting Requirements 12
4.0 MEETING THE DEADLINES 12
5.0 EVALUATING LFG-TO-ENERGY OPTIONS 13
Step 1: Technical Overview 13
Step 2: Making the Economics Work 15
6.0 U.S. EPA LANDFILL METHANE OUTREACH PROGRAM RESOURCES 19
LIST OF TABLES
Table 1 How to Use This Document 2
Table 2 Applicability Examples 4
Table 3 Compliance Dates for an NSPS Landfill 12
Table 4 Energy Recovery Cost Comparison 16
LIST OF FIGURES
Figure 1 Determining Whether Your Landfill is Affected by the Landfill Rule .... 3
Figure 2 Determining If Your Landfill is Regulated Under NSPS or EG 5
Figure 3 The Landfill Rule Compliance Requirements 8
Figure 4 Schematic of a Typical Gas Extraction Well 10
Figure 5 Schematic of a Typical LFG Collection System 10
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SECTION 1.0
Background
INTRODUCTION
Until recently, emissions of landfill gas-comprised
mainly of methane, carbon dioxide, and nonmethane
organic compounds (NMOCs)-were not subject to
federal regulation. These emissions are now regulated
under the Clean Air Act as a result of the landfill New
Source Performance Standards (NSPS) and Emissions
Guidelines (EG), promulgated by the U.S. Environmental
Protection Agency (EPA) on March 12, 1996
(hereinafter "the landfill rule"). Affected municipal solid
waste landfills must collect and combust their landfill
gas (LFG). There are two compliance options under the
landfill rule-installation of a LFG collection system and
flare, or installation of a LFG collection system and an
energy recovery system.
Due to high methane concentration (typically 40 to 60
percent), landfill gas is a valuable source of fuel.
Therefore, the landfill rule presents landfill owners with
a unique opportunity to reduce the cost of compliance
by converting their methane into energy. EPA can help
owners and operators examine the options for profitable
gas-to-energy applications through its Landfill Methane
Outreach Program (LMOP). The LMOP's mission is to
reduce methane emissions from landfills by lowering
the barriers to and encouraging development of
environmentally and economically beneficial LFG-to-
energy projects.
Purpose of this Booklet
This booklet provides the basic information that the
owner/operator of a municipal solid waste landfill needs
to comply with the landfill rule. This booklet provides a
simple explanation of the landfill rule and discusses
how landfill gas-to-energy can be an attractive
compliance option.
The LMOP
has
partnered
with state
agencies,
LANDFILL METHANE Utilities, the
OUTKEACH PROGRAM [_FG-tO-
energy industry, financiers
and gas end users through
one of three LMOP Ally
programs:
The State Ally Program,
The Utility Ally Program,
and
The Industry Ally
Program.
Through membership in the
LMOP, Allies receive:
Public recognition,
Technical, financial and
regulatory information,
and
Promotion of LFG-to-
energy as an
economically and
environmentally
beneficial technology.
The LMOP can help landfill
owners and operators
affected by the landfill rule
identify the best options for
achieving maximum environ-
mental protection under the
landfill rule at the lowest
possible cost.
For the full text of the landfill
rule, see Federal Register,
March 12, 1996 (Volume
61, Number 49), 40 CFR
Parts 51, 52, and 60,
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TABLE 1. HOW TO USE
Question
Is my landfill affected by the rule?
If my landfill is affected, what do I
do next?
What are the deadlines?
Could I produce energy from the
gas generated at my landfill?
How can I find other information
regarding the landfill rule and LFG-
to-energy?
THJS DOCUMENT |
Section to Consult |
Section 2.
Step 1
Step 2
Step 3
Step 4
Section 3.
Step 1
Step 2
Step 3
Step 4
Step 5
Section 4.
Section 5.
Step 1
Step 2
Section 6.
Determining Applicability 1
Is your landfill affected by the landfill
rule?
NSPS or EG - Is your landfill regulated
by the NSPS or EG?
Design Capacity - Does your landfill
meet the design capacity threshold?
Annual NMOC Emissions - What are
your landfill's annual NMOC emissions?
Meeting the Requirements
Submit Compliance Reports
Install Gas Collection System
Destroy LFG at 98 Percent Efficiency
Operation/Maintenance
Recordkeeping and Reporting
Meeting the Deadlines
Evaluating LFG-to-Energy Options
Technical Overview
Making the Economics Work
U.S. EPA Landfill Methane Outreach
Program Resources
SECTION 2.0
DETERMINING APPLICABILITY
The following sections describe the steps involved in
determining whether your landfill is affected by the
landfill rule:
Step 1 - Is your landfill affected by the landfill rule?
Step 2 - If so, is your landfill regulated by NSPS or
EG?
Step 3 - Does your landfill meet the design capacity
threshold?
Step 4 - What are your landfill's NMOC emissions?
It is critical to remember
that your landfill is not
regulated by the landfill rule
unless it meets all of the
-tendfill rule criteria,
including;
Dates of operation;
Permitted size; and
NMOC emissions
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Step 1: Is Your Landfill Affected by the Landfill Rule?
All municipal solid waste (MSW) landfills that were
active on or after November 8, 1987 are potentially
affected by the landfill rule. MSW landfills that
accepted hazardous waste in the past (i.e., co-disposal
landfills) are subject to the landfill rule; however,
hazardous waste landfills (RCRA Subtitle C) that accept
minimal amounts of municipal waste are nd subject to
the landfill rule. Figure 1 provides an easy way to
determine your landfill's status under the rule.
FIGURE 1
DETERMINING WHETHER YOUR LANDFILL
IS AFFECTED BY THE LANDFILL RULE
Does (or did) the landfill accept
municipal solid waste (MSW)?
Yes
Was the landfill active on or after
Novembers. 1987?
Yes
Is the total permitted
capacity greater than
or equal to 2.5 million Mg of waste?
Yes
Are the landfill's NMOC
emissions greater than
or equal to 50 Mg/yr?
Yes
Installation of gas
collection and control
system required.
No
>>
No
No
Not regulated under
landfill rule
No
Exempt from any further
evaluationneed only submit
design capacity report to the
air quality division within
your state's environmental
agency. See Section 2.2.
Reevaluate NMOC emissions
on an annual basis for every
year the landfill accepts waste.
.._ Submit evaluation lo the air
quality division within your
state's environmental agency.
3
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Step 2: Is Your Landfill Regulated bv the NSPS or EG?
Once you have determined that your landfill is affected
by the landfill rule, you must determine whether it is
regulated by the New Source Performance Standards
(NSPS) or Emission Guidelines (EG). Table 2 lists
several possible scenarios. Figure 2 can help you
determine whether your landfill is considered "new"
(and thus regulated by the NSPS) or "existing"
(regulated by the EG) under the landfill rule.
"New landfills" are those that began construction or
acceptance of wastes for the first time on or after
May 30, 1991 or that made a modification since
May 30, 1991 that will increase overall emissions. New
landfills are regulated under NSPS and should have submitted
initial design capacity reports by June 10, 1996.
"Existing landfills" are those that were active on or after
November 8, 1987 and did not have a design capacity permit
modification, or other modification that affects overall
emissions, dated since May 30, 1991. Existing landfills are
regulated by the EG, and do not have to submit initial design
reports until their state develops a plan that is approved by
EPA.
The compliance requirements for the NSPS and the EG are
basically the same unless a given state decides to alter its
state rule from the EG. Each state should have an approved
EG by April 12, 1997. Because NSPS is administered by
EPA, whereas EG is implemented by the states, the beginning
dates for compliance will be different for NSPS and EG
landfills. Section 4.0 provides information regarding
compliance timelines.
The dates that are
important in determining
whether the landfill is
affected by the landfill
rule are the date the
landfill commenced
construction and the
dates the landfill has
actively accepted waste.
TABLE 2. APPLICABILITY EXAMPLES
Scenario
Regulation
Landfill closed prior-^o-November-8, 1987
Landfill closed between November 8, 1987 and May 30, 1991
Landfill active with design capacity permit issued before May 30, 1991
Landfill active with design capacity permit modification issued after
May 30. 1991
Landfill accepts first waste after May 30, 1991
Exempt
EG
EG
NSPS
NSPS
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FIGURE 2
DETERMINING IF YOUR LANDFILL IS REGULATED
UNDER NSPS OR EG
Landfill active on or after
Novembers, 1987?
Yes
Was landfill closed
between November 8,1987 and
May 30,1991?
No
Was landfill active before
May 30,1991
with no modification
since May 30,1991?
No
Landfill not regulated under
landfill rule.
Yes
Yes
Landfill regulated under
New Source Performance Standards
(NSPS)
Landfill
regulated
under
Emissions
Guidelines
(EG)
Step 3; Does Your Landfill Meet the Design Capacity
Threshold?
After you have determined whether your landfill is
regulated by the NSPS or EG, the next step in
determining if your landfill is affected by the landfill rule
is to evaluate the landfill's design capacity. If the total
permitted capacity is below 2.5 million Mg of waste
(2.75 million tons) or 2.5 million cubic meters (3.27
million cubic yards), the landfill is exempt from further
evaluation, and you need only submit a design capacity
report to the air quality division within your state's
environmental agency.
All landfill cells wust-be converted-to the same-units.
If, for example, one cell was permitted in tons and an
active cell was permitted for cubic yards, convert both
cells to the same units and add them together. An
amended design capacity report and an emissions
report will be required if the design capacity of the
landfill is expanded to above 2.5 million Mg.
What is a megagram
(Mg} or cubic meter?
- 1 Mg = 1.10
tons
1 cubic meter **
1.31 cubic yards.
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Step 4: What are Your Landfill's Annual NMOC
Emissions?
If your landfill is above the design capacity threshold,
you must determine the landfill's annual emissions of
non-methane organic compounds (NMOCs). The test
methods and procedures to determine NMOC emissions
are found in §60.754 of the landfill rule. EPA has
developed the Landfill Air Emissions Estimation Model
(LAEEM) to help landfill owners calculate their NMOC
emissions.
The LAEEM model requires basic information about a
landfill-e.g., size, age, and annual waste accepting
rate-to calculate annual NMOC emissions. If a
landfill's NMOC emissions are greater than or equal to
50 Mg/year, the landfill rule requires the installation of a
gas collection and control system.1
In addition to basic inputs related to the landfill's
operating information, the LAEEM model also allows
landfill owners to input site-specific values for their
landfill's NMOC concentration. It is important to note
that the default NMOC concentration provided in the
landfill rule is conservative. Therefore, the landfill rule
allows landfill owners to test for site-specific NMOC
concentration and enter it into the model.2 If site
testing reveals lower NMOC concentration, the
resultant annual NMOC emissions that are calculated
from this input value will be lower.
If you plan to do the
reports and calculations
yourself, it is important
to obtain a copy of
EPA's LandfiliAir
Emission Estimation
Model. It may be
downloaded from the
OAQPS-TNN Bulletin
Board by dialing (919)
541-5742.
The scope of this booklet does not cover system
design. Make sure the system is designed to address
the specifics of your site; a system designed for a
nearby landfill may not be the most effective design for
your site. For more information on system design, you
should consult the "Enabling Document for the New
Source Performance Standards and Emission Guidelines
for Municipal Solid Waste Landfills," developed by U.S.
EPA, No. EPA-_45a/Rr9 6-004. -This document is
available free of charge through EPA's Technology
Transfer Network Bulletin Board System under the
Clean Air Act Amendment Technical Information area.
This is known as "Tier 2" calculation. By replacing the
default NMOC concentration with a site-specific value,
the landfill's estimated NMOC emissions may fall below
50 Mg/year and thus exempt the landfill from the
requirement to install a gas collection and control
system.
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If, after running your landfill's inputs through the LAEEM
model, your landfill's NMOC emissions are greater than
or equal to 50 Mg/yr, the landfill rule allows you to sub-
stitute a site-specific gas generation rate for the default
value to calculate NMOC emissions (this is known as
Tier 3 Analysis}.3
However, testing for the site-specific gas generation rate
is far more costly than testing site-specific NMOC con-
centration during Tier 2 analysis. Therefore, it may not
be cost-effective to undertake Tier 3 testing.
Sample report forms for the design capacity report and
the emission calculation reports are provided in the
landfill rule Enabling Document.
SECTION 3.0
MEETING THE REQUIREMENTS OF THE
LANDFILL RULE
Figure 3 (see next page) outlines the requirements for
compliance with the landfill rule. The five main
requirements for complying with the rule are:
Submitting compliance reports,
Installing a gas collection system,
Destroying the LFG at 98 percent efficiency,
Adhering to specified operation and
maintenance procedures, and
Following specific recordkeeping and reporting
requirements.
Each of these is discussed in the following sections.
Step 1: Submitting Compliance Reports
As mentioned previously, if a landfill's design capacity is
below 2.5 million Mg oj: its annual NMOC emissions are
below 50 Mg, the landfill owner is only required to sub-
mit a design capacity report to the State air agency. If
the design capacity is at or above 2.5 million Mg, the
landfill must submit annual emission reports until
emissions exceed 50 Mg/yr or the landfill closes.
LandfiHs that are
affected by NSPS were
required to submit
reports as early as
June 10, 1996.
Compliance schedules
for landfills regulated by
EG depend on the date
that the State Flan for
implementing EG
requirements is
approved by the
Administrator.
By replacing the default gas generation rate with a
measured site-specific value, the landfill's estimated
NMOC emissions may fall below 50 Mg/year and thus
exempt the landfill from the requirement to install a gas
collection and control system.
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FIGURE 3. THE LANDFILL RULE COMPLIANCE REQUIREMENTS
MSW Landfill
<2.5
million Mg.
Submit
amended
design
capacity
Design
Capacity
2 2.5 million Mg.
Submit design
capacity report to
State Air Agency
NMOC < 50 Mg/yr.
Determine
Annual NMOC
emissions
NMOC > 50
Mg/yr.
Submit design
capacity
report to
State Air
Agency.
Submit annual
emissions
reports until
emissions
exceed
50 Mg/yr or
the landfill
closes.
Install gas
collection &
control system.
Destroy
landfill gas at
98%
efficiency.
Operate system
for minimum of
15 yrs. System must
remain in operation until
landfill has dosed, and
annual NMOC rate
falls below 50 Mg.
Submit annual report
outlining the following:
- downtime
- sytem failure
- locations of surface
monitoring exceedances, and
- locations of new wells or
equipment installed.
8
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If you plan to test your landfill's NMOC concentration or
gas generation rate (e.g., perform a Tier 2 or Tier 3
analysis), you should begin this process as early as
possible to provide sufficient time to evaluate
emissions, submit reports, and design the gas
mitigation system, if necessary.
Step 2: installing a Gas Collection System
A typical landfill gas collection system consists of:
Vertical extraction wells,
A header system,
A blower,
Water (or condensate) knockout equipment, and
An energy-producing combustion device or gas flare.
Figure 4 shows a typical gas extraction well. The
extraction wells generally are drilled to approximately
75 percent of the refuse depth. The header system is a
network of pipes that ties the wells together. The
blower extracts gas from the wells through the header
system to either a flare that burns the gas or to an
energy-producing combustion device (such as internal
combustion engines or gas turbines). Because LFG
moisture content is much greater than natural gas,
condensate traps are important to remove condensate
that collects in the system. Figure 5 depicts the major
components of a collection and control system. It is
important to note that LFG mitigation systems generally
are tailored to site-specific details. For example, if you
plan to install future cells on top of existing cells,
horizontal collectors could be placed so that the
controls are outside of the refuse. This allows system
monitoring and wellhead adjustment to continue even
though refuse is placed on top of extraction wells.
Additionally, surface extraction wells should be used if
the landfill's water level is very high. Vertical wells are
more effective in deep (over 40 feet) refuse with a low
water level. Installing a synthetic cover reduces cover
maintenance, the number of wells required, and the
surface monitoring frequency. Professional engineers
must certify the design of the LFG collection system.
Qualified engineers can help owners/operators reduce
costs and insure system reliability.
If a landfill owner intends
to put in a gas collection
and control system, the
design phase may be
commenced at any time
and the landfill does not
need to test the gas
concentration or flow rate.
However, knowledge of the
gas concentration and
expected flow rate
provides more information
to the engineers designing
the system; therefore, early
tests could save the landfill
owner money in the long
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FIGURE 4. SCHEMATIC OF A TYPICAL GAS EXTRACTION WELL
VALVE
SPECIAL BACWIU.-
BOTTOM Of
TRASH"
VARIES
FIGURE 5. SCHEMATIC OF A TYPICAL LFG COLLECTION SYSTEM
BLOWER /FLARE
STATION
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Step 3: Destroying LFG at 98 Percent Efficiency
Under the landfill rule, the gas collection and control
system constructed is required to destroy the landfill
gas at an efficiency of 98 percent. The landfill rule also
requires surface monitoring to evaluate collection
system efficiency. The two principal LFG destruction
methods are LFG energy recovery and flaring. LFG-to-
energy should be evaluated at each landfill site to
determine whether it is cost-effective, as it offers
landfill owners an opportunity to mitigate the costs of
compliance with the landfill rule. As with the collection
system design, the LFG destruction/control device
should be chosen with the landfill's specific
characteristics in mind. See Section 5.0 to learn how
to evaluate LFG-to-energy at your landfill.
If energy recovery is not an option, the other acceptable
LFG destruction method is to flare the gas. Both open
and enclosed flares are acceptable; however, open
flares have the following disadvantages: less efficient
combustion, aesthetic complaints, and the difficulty of
testing emissions. Enclosed flares, on the other hand,
while being more expensive, tend to be more reliable
and efficient because the landfill operator can adjust
the air flow to reduce unburned hydrocarbon and other
volatile emissions.
Step 4: Adhering to Operation/Maintenance Procedures
Compliance with the landfill rule extends beyond the
installation of a gas collection and control system.
Once the gas collection system is operational, it can be
shut down only if it has been running at least 15 years,
the landfill is closed and the annual NMOC emission
rate is less than 50 Mg. Note that all three conditions
must be satisfied before a gas collection system can be
shut down under the landfill rule.
Each-LFG well head ortrencti must be monitored t>n a
monthly basis for pressure, temperature, and gas
quality (i.e., concentrations of methane, nitrogen, and
oxygen). The operator must also ensure that the
system is operating with a vacuum at each extraction
point and is operating with minimal air infiltration. In
Note that the rute does
not require minimum
efficiency for the
collection system, as it
is difficult, if not
impossible, to measure.
See the full text of the
LF rule for exact
specifications for system
monitoring (40 CFR Part
60.755), This text is
available free of charge
through EPA's
Technology Transfer
Network Bulletin Board
System under the Clean
Air .Act Amendment
Technical Information
area.
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addition, the operator must monitor the landfill surface
regularly to ensure that the methane concentration is
less than 500 ppm above background at the surface of
the landfill. Both the well monitoring and surface
monitoring require certain procedures to correct any
unacceptable emissions rates. Such procedures may
include wellfield or wellhead adjustments, and/or the
installation of additional extraction points.
Step 5: Following Recordkeeping and Reporting
Requirements
The landfill rule contains specific recordkeeping and
reporting requirements, including the type of
information that must be recorded from the landfill's
monitoring program. The landfill operator must submit
an annual report outlining downtime, system failure,
locations of surface monitoring exceedances, and
locations of new wells or equipment installed. Reports
must be kept in accessible files. Consult the rule in the
40 CFR Parts 60.756 and 60.757 for more information
on recordkeeping and reporting requirements.
SECTION 4.0 MEETING THE DEADLINES
A timeline for compliance was established for NSPS
landfills based on the March 12, 1996 publication date
of the final landfill rule. Table 3 lists the important
compliance dates for the NSPS. Existing landfills can
wait until a timeline is established by their state.
However, because it will take approximately one year
for states to establish their plans, EG landfill owners
can add one year to the following dates to get a rough
estimate of what their EG compliance dates might be.
TABLE 3. COMPLIANCE DATES FOR AN NSPS LANDFILL
REPORT/ACTIVITY DUE DATE
Design capacity and NMOC emission report 06/10/96
NMOC report with gas concentration test(optional) 12/07/96
NMOC report with gas generation rate test 06/10/97
(optional)
Design plans for collection and control system 06/10/97
System installation 12/10/98
Performance test/1 st annual report 06/10/99
The Annual Report must
outline the following:
Downtime;
System Failure;
* Location of surface
monitoring
exceedances; and
Location of new
wells or equipment
Installed.
12
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SECTION 5.0
EVALUATING LFG-TO-ENERGY
OPTIONS
Step 1: Technical Overview
As discussed in Section 4, the landfill rule requires that
collection systems convey LFG to a control device that
is capable of destroying 98 percent of NMOC's found in
LFG. While landfill owners need only install a flare to
comply with the landfill rule, they should investigate the
options for energy recovery wherever possible. The
Landfill Methane Outreach Program has developed the
Project Development Handbook specifically to help
landfill owner/operators evaluate whether gas-to-energy
is an attractive option for their landfill.
Because the LFG is 50 percent methane-a valuable
source of energy-collected landfill gas may be
harnessed for fuel, which can be sold to mitigate the
cost of installing the collection system and can even
generate a profit. The most common energy recovery
options are local gas use, electricity generation, and
pipeline injection.
Assessment of the requirements for energy at the site
and in the surrounding area, and evaluation of the
project economics help to determine the appropriate
option for a specific landfill. Additional information
regarding the main energy recovery options is provided
below.
Local Gas Use. Local gas use is the simplest and most
cost-effective option for using the recovered gas.
Medium-Btu LFG is delivered via pipeline from the
landfill to nearby equipment, such as boilers and
engines. Prior to transporting LFG to a user,
condensate and particulates must be removed through a
series of filters and/or driers to clean and upgrade the
LFG to a minimum of 35 percent methane. The
feasibility of this-option is generally determined by the
distance needed to transport the gas to a potential end
user. In general, distances up to 5 miles are feasible.
If local gas use appears favorable, the first step is to
contact potential end users to determine their interest.
The LMOP's Protect
Development Handbook
contains detailed infor-
mation on LFG-to-energy
technology options and
costs, assessing project
economics, identifying
services, and obtaining a
permit, among other
things, and can be
obtained by calling t-
888-STAR-YES (toll
free).
13
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Electricity Generation. LFG also can be used to
generate electricity for on-site use or for distribution
through the local electric power grid. The two most
commonly used technologies for generating electricity
are internal combustion (1C) engines and gas turbines.
1C engines are stationary engines, similar to
conventional automobile engines, that can use medium-
quality gas to generate electricity. An advantage of 1C
engines is that a number of them may be utilized at the
start of a recovery project and phased out or moved to
alternative utilization sites as gas production decreases.
1C engines can also be easily turned on and off and are
therefore suitable for supplying intermittent power
needs. This flexibility makes 1C engines a more
attractive option for smaller landfills. One disadvantage
of 1C engines is that they have higher emissions of
nitrogen oxide (NOx) than gas turbines.
Gas turbines typically require higher gas flows and are
therefore more suitable at large landfills. Because gas
turbines must run constantly, they are used to generate
electricity that will be distributed through the electric
power grid on a continuous basis. Gas turbines are
relatively compact, have low operations and
maintenance costs, and have lower emissions of NOx
than 1C engines.
Emerging technologies for electricity generation, such
as steam turbines and fuel cells, are being tested for
use with LFG. In addition, some landfills are beginning
to use landfill gas as a vehicle fuel, where they convert
the LFG into liquified natural gas, compressed natural
gas, or methane. Steam turbines consist of a
conventional gas/liquid fuel boiler and a generator that
produces electricity. They are currently only used at
very large landfillsi.e., those where gas flows are
greater than five million cubic feet per day (MMcfd).
Fuel cells create energy by combining the hydrogen
found in LFG with oxygen in an electrochemical
reaction. Their modularity, small capacity, high
efficiency, quiet operation, and low environmental
impact may make them the ideal technology for power
generation with LFG. However, fuel cells are not as
cost-effective as the other energy recovery options.
Gas-to-Energy Case Study
Puente HHIs Landfill.
Whfttfer. California
Puente HHIs is the largest
landfill energy recovery
power project in the United
States. It has been opera-
tional since the early
1980s.
The landfill receives
12,500 tons of waste per
day, and collects over 30
MMcfd from 400 vertical
wells and 50 mites of
horizontal collection piping.
The Los Angeles County
Sanitation District, which
operates the landfill, uses
the landfill gas in three
ways:
» to generate almost
50 MW of power m
a boiler/steam tur-
bine configuration,
located at the
landfill;
as vehicle fuel, in
the form of
compressed natural
gas;
as fuel for a boiler
at Rio Hondo
College, Jocated
one-mile away.
14
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Upgrade to High-Btu Gas. If a pipeline carrying
medium- or high-quality gas is nearby and there is no
local gas user available, pipeline injection may be an
attractive option. To assess the feasibility of pipeline
injection, the proximity, capacity, and gas quality
specifications of the pipeline should be determined.
Upgrade to high-Btu gas also requires treatment of the
LFG to remove carbon dioxide and other impurities. As
a result, this option is more expensive than local gas
use or electricity generation.
Step 2: Making The Economics Work
EPA estimates that over 700 landfills in the U.S. can
cost-effectively install LFG energy recovery systems.
Only about 140 projects in the U.S. are currently
converting LFG into energy. With the landfill rule in
place, many more projects will come online in the next
few years. Each landfill owner needs to assess
whether they can make the economics work at their
landfill. Assessing project economics involves
estimating the costs and revenues, developing a cash
flow model, and obtaining appropriate financing.
Gas Utilization Costs. Gas or electricity sales offset the
total expense of a gas collection system and energy
recovery equipment. If your landfill is required under
the landfill rule to install a gas collection and control
system, you should consider the expenditure as a sunk
cost. Costs of recovering and using LFG are dependent
on the amount of gas involved and the energy recovery
technology used.
Energy Sales Revenues. Depending upon the type of
energy produced, a landfill owner may realize one of
several revenue streams, as seen in Table 4.
Financing Approaches. There are several sources of
capital for landfill gas-to-energy projects, including
private equity financing, project financing, municipal
bonds, or direct municipal funds. In addition, EPA is
working with utilities and states to develop innovative
and alternative financing mechanisms.
Gas-to-Energy Case Study
The Battteboro Landfill
Vermont
This is one of the oldest
landfill gas recovery
projects in the country.
When energy recovery
began in 1983, the landfill
contained Jess than 1
milfion tons of waste. The
approximately 11,000
cubic meters of gas
collected per day in the
landfill are used in 1C
engines to generate less
than 1 MW of electricity,
which is sold to the local
utility.
The LMOP has developed
*E-Plus" software which
helps landfill owners
assess the economic ,
potential of various LFG-to-
energy options at their
landfill. To order this
software, call toll free 1-
888-STAR-YES
II -888-782-7937)
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TABLE 4. ENERGY RECOVERY COST COMPARISON
Energy Recovery
Option
Local Gas Use
Electricity Generation
Pipeline Injection
Equipment
Gas Utilization Equipment
(boilers, engines, etc.)
Pipeline
Operation & Maintenance
(O&M)
1C Engines (including
auxiliary equipment,
interconnections, gas
compressor, construction,
and engineering)
Gas Turbines (including
auxiliary equipment,
interconnections, gas
compressor, construction,
and engineering)
Operating Costs
Pipeline Construction
Gas Cleaning and
Compression Equipment
Operating Costs
Approximate Price
$ 120,000 for 10,000 Ib/hr
boiler to $300,000 for an
80,000 Ib/hr boiler
$100,000 -$200,000 per
kilometer
Similar to O&M costs
associated with using
conventional fuels
$900 to $1,200 per net k;W
output
$ 1 , 1 00 to $ 1 ,300 per net kW
output (for landfills with less
than 5 million tons waste in
place)
$0.01 to $0.025 per kWh of
electricity produced
$100.000 -$200,000 per
kilometer
$25,000 per rrrVminute of
gas flow (assuming LFG is 50
percent methane)
$600 per hp (for compression
costs - 7.2 hp/m3/min is
required to compress the gas
to lOOpsi)
Potential Revenues
The savings that are
achieved by
offsetting energy
purchases.
Typical gas price: $2
- $5 per MMBtu
Electric Buyback
Rate: $0.02/kWh to
$0.06/kWh
Displacement of On-
Site Energy
Purchases
Thermal Energy
Revenues:
$1.5/MMBtuto
$6/MMBtu for steam
Tax Credits/Subsidies
Local distribution
companies will
purchase processed
LFG for same price as
natural gas.
Typical gas price:
$1.5 to $3.0 per
MMBtu
Sources: U.S. EPA (1995), Turning a Liability into an Asset: A Landfill Gas-to-Energy Project Development
Handbook, Atmospheric Pollution Prevention Division, Office of Air and Radiation, Washington, DC,
1995.
U.S. EPA (1996), A Guide for Methane Migration Projects, Gas-to-Energy at Landfills and Open
Dumps, Atmospheric Pollution Prevention Division, Office of Air and Radiation, Washington, DC,
1996.
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Private Equity Financing - Private equity financing
involves an investor who is willing to fund part or
all of the landfill gas-to-energy project in return for
a significant share of project ownership. Potential
equity investors include equipment vendors, fuel
suppliers, and industrial companies. Landfill
owners should keep in mind that equity investors
will likely expect to receive benefits-such as
equipment sales, service contracts, or energy
suppliesin addition to a portion of the project's
cash flow.
Project Finance - Project finance is a method for
obtaining commercial debt financing where lenders
look to a project's projected revenue stream rather
than the assets of the developer/sponsor to ensure
repayment. The biggest advantage of project
finance is the ability to use others' funds for
financing without giving up ownership control.
The best opportunities for landfill gas projects to
secure project financing are generally with the
project finance groups at smaller investment
capital companies, banks, and law firms, or at one
of several energy investment funds. The primary
disadvantages of project finance are the high
transaction costs and lender's high minimum
threshold for investment.
Municipal Bond Financing - Municipally owned
landfills occasionally issue tax-preferred municipal
bonds to finance gas-to-energy projects. The
biggest benefits of using this financing method are
that it is the most cost-effective financing method-
-the resulting debt has an interest rate that is
often 1 to 2 percent below commercial debt--and
the debt repayment can be extended over the life
of the facility (typically 20 or more years). Terms
for securing municipal bond financing vary
according to the type of bond, method of
qualification and the state or municipality in which
the bond is issued. The primary disadvantage of
municipal bond funding is the barriers faced by
municipalities in issuing bonds.
Assess Project
Economics
Cost Analysis:
develop estimates
for capita! costs,
operations and
maintenance
expenses,
- Benefits Analysis:
compare revenues
generated, emissions
avoided.
Create an analysis of
cash flows.
Compare project
costs and benefits to
assess economic
feasibility.
Compare options.
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Direct Municipal Funding - Landfill gas energy
projects can also be funded directly through the
operating budget of a city, county, landfill
authority, or other municipal government. The
advantages of this financing method are that it
eliminates interest charges on project debt and has
less lender due diligence requirements; the
disadvantage is that municipalities may face
difficulties raising revenues.
Other Potions - The LMOP is also working with its
State and Utility Allies to develop sources of
financing for LFG-to-energy projects. For example,
the LMOP is currently investigating the feasibility
of state-sponsored revolving funds for landfill gas-
to-energy projects. These funds could be
capitalized through the issuance of tax-exempt
bonds and would offer low interest loans to landfill
owners looking to finance landfill gas collection
and energy recovery systems. The fund would
"revolve," that is, continue to supply financing to
new landfill gas projects as previous projects make
good on their loans.
Tax Credits and Incentives. Tax credits and federal
incentive payments can significantly improve project
economics. Currently, Section 29 of the Internal
Revenue Code offers tax credits for the recovery and
use of landfill gas. Additionally, the U.S. Department of
Energy's Renewable Energy Production Incentive (REPI)
program provides an incentive to publicly-owned
facilities that generate electricity from renewable
energy sources (including landfill gas.)
Section 29 - The Section 29 tax credit is available
to landfill gas projects that have their collection
system installed and in operation by July 1, 1998.
The tax credits apply only to landfill gas that is
produced and then sold to an unrelated third party.
In order to take advantage of Section 29 credits,
project developers may create a separate
company, or bring in another party. The current
value of the credit is $1.005 per MMBtu.
Examples of Capital
Cost Elements
» LFG Equipment
« Construction
- WellfieJd
- Blower Station
- Other Construction
* Emissions Controls
« Interconnections
« Gas Compression
and Treatment
« Engineering
* Soft Costs
Currently, Section 29 tax
credits are only available to
projects that signed a gas
rights contract by
December 31,1996, and
that actually install an
operational collection
system by June 30, 1998.
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REPI - Section 1 212 of the Energy Policy Act of
1992 provides a subsidy of 1.5 cents per kilowatt
hour to renewable energy electrical power projects
owned by a state or local government or nonprofit
electric cooperative. NOTE: The availability of
funding for REPI payments is subject to annual
appropriation by Congress.
SECTION 6.0 U.S. EPA LANDFILL METHANE
OUTREACH PROGRAM RESOURCES
A key objective of the Landfill Methane Outreach
Program (LMOP) is to provide landfill owners and
operators, developers of landfill gas-to-energy projects,
utilities, and other potential project participants with
information to increase awareness of project LANDFILL METHANE
opportunities and enhance understanding of the energy, OLTTREACH PROGRAM
environmental, and economic benefits of landfill energy
recovery. Various technical outreach materials have
been developed to overcome informational barriers to
the development of energy recovery projects.
Contact the LMOP Hotline or utilize the LMOP Home
Page to request outreach materials or to obtain more
information. Information currently available through
LMOP includes:
. Fact Sheets
Utility Ally Program
Industry Ally Program
Landfill Gas Direct Use
Documents
Landfill Gas-to-Energy Project Development
Handbook
Landfill Gas Energy Recovery Financing
Workshop Proceedings
- Profiles of Candidate Landfills for Selected
States
Software
Landfill Gas Energy Recovery Project
Evaluation Software (E-Plus)
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For more information, contact:
EPA Landfill Methane Outreach Prograrn
U.S. EPA, 401 M Street, SW,
Mail Stop 6202J
Washington, DC 20460
Hotline: 888-STAR-YES (1-888-782-7937)
Fax: (703) 934-3895
Internet Home Page:
http://www.epa.gov/lmop.html
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