EPA-600/R-95-035
                              March 1995
     LANDFILL GAS ENERGY UTILIZATION
        EXPERIENCE: DISCUSSION OF
      TECHNICAL AND NON-TECHNICAL
      ISSUES, SOLUTIONS, AND TRENDS
                     by

                 Michiel Doom
          E.H. Pechan & Associates, Inc.
          3500 Westgate Drive, Suite 103
          Durham, North Carolina 27707
             %
                 John Pacey
                 F.H.C., Inc.
          Pebble Beach, California 93953

                Don Augenstein
                    I.E.M.
           Palo Alto, California 94306
          EPA Contract No. 68-D1 -0146
Work Assignment Nos. 1/015, 1/022, 2/031, and 2/034
                Project Officer

               Susan Thorneloe
  Air and Energy Engineering Research Laboratory
       U.S. Environmental Protection Agency
   Research Triangle Park, North Carolina 27711
                 Prepared for

      U.S. Environmental Protection Agency
       Office of Research and Development
            Washington, DC. 20460

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                                 TECHNICAL REPORT DATA
                          (Please read Instructions on the reverse before comple
 1. REPORT NO.
  EPA-600/R-95-035
                            2.
                     PB95-188108
 4. TITLE ANDSUBTITLE
 Landfill Gas Energy Utilization Experience: Discus-
  sion of Technical and Non-technical Issues, Solutions,
  and Trends
             5. REPORT DATE
              March 1995
            6. PERFORMING ORGANIZATION CODE
 7. AUTHOR(S)
 M. Doom (Pechan),  J. Pacey (F. H. C. ,  Inc.), and
  D. Augenstein (I.E.M.)*
                                                       8. PERFORMING ORGANIZATION REPORT NO.
9. PERFORMING ORGANIZATION NAME AND ADDRESS
 E.H. Pechan and Associates, Inc.
 3500 Westgate Drive
 Durham,  North Carolina 27707
                                                       10. PROGRAM ELEMENT NO.
             11. CONTRACT/GRANT NO.gg- DJ-Q146
             Tasks 1/15,1/22, 2/31, and
             2/34 (Pechan)	
 12. SPONSORING AGENCY NAME AND ADDRESS
 EPA, Office of Research and Development
 Air and Energy Engineering Research Laboratory
 Research Triangle Park, NC  27711
             13. TYPE OF REPORT AND PERIOD COVERED
             Task Final; 1/92-9/94
             14. SPONSORING AGENCY CODE
              EPA/600/13
 15. SUPPLEMENTARY NOTES AEERL project officer is Susan A. Thorneloe,  Mail Drop 63, 919/
 541-2709. (*)  F.H. C. ,Inc.,  Pebble Beach,  CA  93953; and J. E. M., Palo Alto, CA
 94306.
 16. ABSTRACT rj-^g repOrf discusses technical and non- technical considerations associated
 with the  development and operation of landfill gas to energy projects. Much of the
 report is based on interviews, and site visits with the major developers and operators
 of the more than 110 projects in the U. S. The report also provides the history and
 trends of the landfill gas industry in the U.S. Graphs illustrate how the influence of
 reciprocating internal combustion (RIC) engines, compared to other utilization op-
 tions, has steadily increased over time. The report summarizes information on new
 landfill gas utilization technologies,  including vehicular fuel systems and fuel cells.
 Overall results of programs to demonstrate  the operational feasibility of innovative
 technologies appear quite promising. For example, fuel cell technology for landfill
 gas has many potential advantages over conventional technologies, including its high
 energy efficiency, minimal by-product emissions,  and minimal labor and mainten-
 ance. The use  of fuel cells may be economically feasible before the  turn of the cen-
 tury.  Some of the non-technical problems and solutions described in the report are
 associated with the development  of energy utilization options including project eco-
 nomics,  barriers,  and incentives.
                              KEY WORDS AND DOCUMENT ANALYSIS
                 DESCRIPTORS
                                           b.IDENTIFIERS/OPEN ENDED TERMS
                         c. COSATI Field/Group
 Pollution          Fuel Cells
 Earth Fills        Greenhouse Effect
 Energy Conversion Techniques
 Gases
 Energy
 Automotive Fuels
Pollution Control
Stationary  Sources
Landfill Gas
13B
13 C
10A
07D
14G
21D
10 B
04A
 3. DISTRIBUTION STATEMENT
 Release to Public
                                           19. SECURITY CLASS (This Report)
                                           Unclassified
                                                                    21. NO. OF PAGES
                             292
20. SECURITY CLASS (This page)
Unclassified
                         22. PRICE
EPA Form 2220-1 (9-73)
                                        M-12

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                      NOTICE

This document has been reviewed in accordance with
U.S. Environmental Protection Agency policy and
approved for publication.  Mention of trade names
or commercial products does not constitute endorse-
ment or recommendation for use.

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                                           ABSTRACT
Clean Air Act (CAA) regulations under consideration for new and existing municipal solid waste landfills are
expected to  require approximately 500 to 700 sites to install and maintain a landfill gas extraction and
control  facility to reduce landfill emissions,  which include nonmethane organic compounds, toxics, and
greenhouse gases. The Air and Energy Engineering Research Laboratory (AEERL) of the United States
Environmental Protection Agency (EPA) is conducting ongoing research to provide information on energy
conversion options for landfill gas utilization  as a  means of assisting landfill owner/operators that may be
affected by the CAA regulations.

This report is a follow on to an earlier publication entitled:  "Landfill Gas  Energy Utilization: Technology
Options and  Case Studies" (Augenstein and Pacey, 1992).  The 1992 publication provides information on
the different options for landfill gas utilization which are illustrated by case studies. The focus of this new
report is on technical  and non-technical considerations associated with the development and operation of
landfill gas to energy projects.  Much of the information used to generate this report is from interviews and
site visits with the major developers and operators of the more than 110 projects in the U.S.  This report
also provides the history and trends of the landfill gas industry in the U.S. Graphs illustrate how the use
of reciprocating internal combustion  (1C) engines, compared to other  utilization options,  has steadily
increased over time.

Landfill  gas is a medium heating value fuel [approximately 500 British thermal units per standard cubic foot
(Btu/scf)], and can contain corrosive compounds and particulates.  The gas may be used in direct heating
applications (i.e.,  boilers or kilns), in reciprocating  engines and turbines to  produce electricity, or it may be
purified to pipeline quality gas, or for use in fuel cells.  This report identifies the  potential difficulties that
may be encountered in developing a landfill gas to  energy project and presents possible solutions that have
been found through the experience of the landfill gas to energy industry.  Possible remedies to typical
technical  landfill  gas issues  addressed  in  this report are:  1) material modifications; 2) condensate
management; 3) use of special oils (in 1C engines); and 4) engine adjustments (in 1C engines).

Some of  the non-technical problems and  solutions described  in this report are  associated  with the
development of energy utilization options including project economics, barriers, and incentives.  Two new
programs that may provide incentives are described. The information presented on non-technical barriers
is primarily based on the experience of private U.S. landfill gas project developers and operators and is  not
intended to give a comprehensive overview of all perspectives on landfill gas utilization.

Ongoing research by EPA and others is aimed at tracking and developing new options for landfill gas
utilization.  This  report summarizes  information  on new  landfill  gas  utilization  technologies, including
vehicular fuel systems and fuel cells.  Overall results of programs to demonstrate the operational feasibility
of innovative  technologies  appear quite promising.  For example, the fuel cell technology for landfill gas
appears to have  many potential advantages  over conventional technologies including its high energy
efficiency, minimal by-product emissions and minimal labor and maintenance.  The use of fuel cells may
be economically feasible before the turn of the century.

Additional information is provided in  various appendices.  Appendix E presents international landfill gas
experience.   In Appendix H, the attributes of various proven technologies for generating electricity while
utilizing  landfill gas as a fuel are discussed.  Appendix I details landfill gas turbines, whereas Appendix J
describes a demonstration project to convert landfill gas into vehicle fuel.  An EPA memo dated July 1994
providing the EPA's New Source Review policy which regards landfill gas to energy  projects as potential
pollution prevention sources is included in Appendix K.  Appendices L and M focus on  non-technical issues
such as the sale of electricity from landfill gas projects and alternative energy regulatory policies.

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                               TABLE OF CONTENTS
ABSTRACT	i i i

TABLES . .	  Vil

FIGURES	  VI1

ACKNOWLEDGEMENTS	vi i i

ABBREVIATIONS 	  i X

CONVERSIONS	  X
   METRIC PREFIXES  	  xi

1. INTRODUCTION		  1
   1.1 BACKGROUND	  1
   1.2 PURPOSE OF THIS REPORT 	  2
   1.3 DEVELOPMENT OF THE LANDFILL GAS INDUSTRY AND TRENDS  	  3

2. LANDFILL GAS PROPERTIES	  9
   2.1 COMPOSITION AND CONTAMINANTS  	  9
      2.1.1 Condensate	 10
      2.1.2 Deposits  	 10
      2.1.3 Other Potential Issues	 11
   2.2 VARIABLE FLOW AND ENERGY CONTENT	 11

3. TECHNICAL ISSUES, SOLUTIONS, AND FIELD EXPERIENCE 	 13
   3.1 GENERAL	:  . 13
      3.1.1 Pressure Considerations	 14
      3.1.2 Material Modifications	 14
      3.1.3 Condensate Management	 15
      3.1.4 Aerosol and Paniculate Removal	 17
   3.2 RECIPROCATING INTERNAL COMBUSTION ENGINES	 17
      3.2.1 Oil Selection and Management  	 17
      3.2.2 Engine Adjustments  	 18
      3.2.3 Lean-Burn 1C Engines	 19
      3.2.4 Field Experience 1C Engines	 20
   3.3 GAS TURBINES	 24
      3.3.1 Field Experience Turbines	 24
   3.4 BOILERS	 27
      3.4.1 Field Experience Boilers	 28
   3.5 LANDFILL GAS PURIFICATION TO PIPELINE QUALITY	 29

4. NON-TECHNICAL CONSIDERATIONS	 30
   4.1 BARRIERS  	 31
      4.1.1 Selected Case Histories  	 35
   4.2 INCENTIVES	 37
      4.2.1 New Initiatives 	 41

5. EMERGING TECHNOLOGIES	 42
   5.1 COMPRESSED LANDFILL METHANE AS VEHICULAR FUEL 	 43

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   5.2 LANDFILL METHANE CONVERSION TO METHANOL	  43
   5.3 LANDFILL METHANE IN FUEL CELLS	  44

6. INDEX	  46

7. REFERENCES	:	  48

APPENDIX A: ABSTRACT AND TABLE OF CONTENTS OF LANDFILL GAS ENERGY
   UTILIZATION: TECHNOLOGY OPTIONS AND CASE STUDIES	  A-1

APPENDIX B: FURTHER READING  	  B-1

APPENDIX C: LIST OF DEVELOPERS AND OPERATING COMPANIES	  C-1

APPENDIX D: INTERVIEW SUMMARIES  	  D-1
   TECHNICAL ISSUES 	  D-1
   NON-TECHNICAL ISSUES	  D-14

APPENDIX E: AUSTRALIAN DEVELOPMENTS AND EUROPEAN EXPERIENCE 	  E-1
   DEVELOPMENTS IN AUSTRALIA	  E-1
   EXPERIENCE IN THE NETHERLANDS	  E-1
      Notes on Two Dutch Landfill Gas Workshops	E-11
      Commercial Use of Carbon Dioxide: By-product of Landfill Gas Purification	E-12
   EXPERIENCE IN THE UNITED KINGDOM	 E-13
      Quality Assurance and Risk Management 	E-15
      Gas Utilization Technology	E-35

APPENDIX F: MAKING LANDFILL GAS AN ASSET (Paper)	F-1

APPENDIX G: LANDFILL GAS RECOVERY SYSTEMS FOR EXISTING LANDFILL SITES
   (Presentation)	 G-1

APPENDIX H: SELECTING ELECTRICAL GENERATING EQUIPMENT FOR USE WITH
   LANDFILL GAS (Paper)  	 H-1

APPENDIX I: GAS CONDITIONING KEY TO SUCCESS IN TURBINE COMBUSTION SYSTEMS
   USING LANDFILL GAS FUELS (Paper)	 1-1

APPENDIX J: COMPRESSED LANDFILL GAS AS A CLEAN, ALTERNATIVE VEHICLE FUEL
   (Paper)  	J-1

APPENDIX K: THREE EPA MEMORANDA  ON NEW SOURCE REVIEW RELATING TO
   LANDFILLS AND LANDFILL GAS  	 K-1

APPENDIX L: ALTERNATIVE ENERGY & REGULATORY POLICY: TILL DEATH DO WE PART
   (Presentation)	L-1

APPENDIX M: RECENT DEVELOPMENTS, FUTURE PROSPECTS FOR SALES OF ELECTRICITY
   FROM FACILITIES WHICH BURN LANDFILL GAS (Presentation)	 M-1

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                                         TABLES

1. LANDFILL GAS ENERGY APPLICATIONS IN THE UNITED STATES 	   1
2. COMPARISON OF NATURAL AND LANDFILL GAS	   9
3. SOME TECHNICAL ISSUES, EFFECTS, AND POSSIBLE REMEDIES  . . ;	  13
4. GAS PURIFICATION METHODS AND PRINCIPLES	  42
                                         FIGURES

1.  Landfill gas recovery sites in the United States	   4
2.  Number of projects per State	   5
3.  Net electrical output in MW per State per type of generating equipment	   5
4.  Number of projects per end use per year	   6
5.  Number of 1C engine projects (including gas turbines) per year per manufacturer	   7
6.  Net electrical output in MW per year per type of generating equipment	   8
7.  Net electrical output in MW per year per developer	   8
8.  Simplified landfill gas flowchart for 1C engines (limited cleanup)	 21
9.  Simplified landfill gas flowchart for 1C engines (stringent cleanup)	 23
10.  Simplified landfill gas flowchart for gas turbines (example 1)	 . 25
11.  Simplified landfill gas flowchart for gas turbines (example 2)	 26
12.  Chart to  calculate production tax credits from landfill gas flow	 39
13.  Chart to  calculate electricity output from landfill gas flow	 40
14.  Fuel cell	 45
15.  Chemical reactions in a phosphoric acid fuel cell	 45
E-1.  Energy  from landfill gas in the United Kingdom	E-14
E-2.  Simplified Process & Instrumentation Diagram for Typical Landfill Gas Abstraction and
     Utilization System	E-34

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                                  ACKNOWLEDGEMENTS
The authors gratefully acknowledge the advice and assistance of the many contributors to this report.

Special thanks goes  out to Susan Thorneloe of U.S.  EPA's Air and Energy Engineering  Research
Laboratory, Research Triangle Park, North Carolina. Susan is a strong advocate of landfill gas utilization,
because she believes in its benefits to the environment. She also has been clearly aware of the need for
information transfer to encourage landfill gas utilization and to broaden the understanding of its implications
among users, developers, and regulators alike.  She was able to conceptualize this need and encourage
the materialization of this document, by ensuring the participation of many landfill gas experts. We would
like to acknowledge  these landfill gas experts here and have listed them below in alphabetical order:

    Charles Anderson, RUST Environment, Naperville, Illinois
    Robert Anuskiewicz, Solar Turbines,  Inc., San Diego, California
    David Byrnes, San Diego Air Pollution Control District, San Diego, California
    Curt Chadwick,  Caterpillar, Mossville, Illinois
    Philip Coerner,  Cleaver-Brooks, Milwaukee, Wisconsin
    Gordon Deane,  Palmer Capital Corporation, Cohasset, Massachusetts
    Stanley Drake,  Energy Tactics, Inc., Yaphank, New York
    Richard Echols, Browning-Ferris Industries, North Eldridge, Texas
    Frans van Gaalen, Ingenieursburo Innogas, Gorinchem, The Netherlands
    Brian Gullett, U.S. Environmental  Protection Agency, Research Triangle Park, North Carolina
    George Jansen  and Matt Nourot,  Laidlaw Environmental Services, Newark, California
    David Maunder, Energy Technical Support Unit, Harwell,  United Kingdom
    Ralph Nuerenberg, Granger Renewable Resources, Inc.,  Lansing, Michigan
    Paul Persico, Brian Pell, and Thomas Normoyle, GSF Energy, Allentown, Pennsylvania
    Alex Roqueta, Landtec, Commerce, California
    Martin Scheepers, Landfill Gas Advisory Center, Utrecht, The Netherlands
    Frank Wong, Pacific Energy, Commerce, California
                                            vm

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                                    ABBREVIATIONS
AEERL  Air and Energy Engineering Research Laboratory
BACT    Best available control technology
CAA     Clean Air Act
FERC    Federal Energy Regulatory Commission
ETI      Energy Tactics, Inc.
EPA     Environmental Protection Agency
GC      Gas chromatograph
HHV     Higher heating value
1C       Internal combustion (engine)
LHV     Lower heating value
O&M     Operation and maintenance
pH      Acidity level
PTC     Production  tax credit
PSA     Pressure swing absorption
PUC     State Public Utility Commission
SWANA  Solid Waste Association of North America (formerly GRCDA)
TBN     Total base  number
U.K.     United Kingdom
U.S.     United States of America
WMNA   Waste Management of North America
CH4     Methane
CO      Carbon monoxide
CO2     Carbon dioxide
H2O     Water
H2S      Hydrogen sulfide
N2       Nitrogen
NMOCs  Nonmethane organic compounds
NOX     Nitrogen oxides
PCDD    Polychlorinated dibenzo-dioxin
PCDF    Polychlorinated dibenzo-furan
PCS     Polychlorinated biphenyl
PVC     Polyvinyl chloride
VOC     Volatile organic compound
Btu      British thermal unit
ft        Foot or feet
g        Gram
kPa      Kilopascal
kW      Kilowatt
m        Meter
MW      Megawatt
ppm     Parts per million
ppmv     Parts per million (volume)
psi       Pounds per square inch
psig      Pounds per square inch (gage)
scf       Standard cubic feet (per minute or per day)
W        Watt
                                           IX

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CONVERSIONS

Multiply
LENGTH
Feet
Inches
Meters
Meters
Meters
AREA
Acres
Hectares
Square meters
Square feet
VOLUME
Acre feet
Barrels
Cubic feet
Cubic meters
Gallons
MASS
Kilograms
Pounds
Tons (english)
Tonnes (metric)
Tonnes (metric)
DENSITY
Kilograms per cubic meter
Pounds per cubic foot
Grams per liter
PRESSURE
Pascals

Atmospheres
Pounds per square inch
Pascals
Bar
Inches of water
By

0.3048
0.0254
39.37
3.281
106

4,4050
2.471
10.764
0.0929

123.35
0.159
0.0283
1,000
3.785

2.2046
0.4536
0.907
1.1023
1,000

0.0624
16.01
0.0624

1

101,325
6,894
1.45x10-"
10s
249
To Obtain

Meters
Meters
Inches
Feet
Micrometers (sometimes referred to as microns)

Square meters
Acres
Square feet
Square meters

Cubic meters
Cubic meters
Cubic meters
Liters
Liters

Pounds
Kilograms
Tonnes (metric)
Tons (english)
Kilograms

Pounds per cubic foot
Kilograms per cubic meter
Pounds per cubic foot

Newtons/m2 (1 Newton is the force required to
accelerate 1 kg at 1 m/second2.)
Pascal
Pascal
Pounds per square inch
Pascal
Pascal
                                   (continued)

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                            CONVERSIONS (continued)
Multiply
By
To Obtain
POWER
Watts
Watts
Watts
ENERGY
Joules
Kilowatt-hours
Kilowatt-hours
Kilowatt-hours
Btus
MISCELLANEOUS
Cubic meters per hectare
Cubic meters per hour
Cubic feet per minute
Cubic feet per Ib per year
Btu/scf

1
0.05692
1.341x10'3

1
3415
1.341
3.60x1 06
1,054

14.291
0.5886
0.02831
61
37,243

Newtonmeter/sec. or joule/sec.
Btus/minute
Horsepower

Wattsecond or Newtonmeter
Btu's
Horsepower-hours
Joules
Joules

Cubic feet per acre
Cubic feet per minute
Cubic meters per minute
Cubic meters per tonne per year
Joules/cubic meter
Temperature conversion:
    "Standard" conditions
    "Normal" conditions
        °C x 1.8 + 32 -  °F   (Fahrenheit)
        (°F-32)/1.8 -  °C  (Celsius)

        60°F and 14.7 psi.
        0°C and 1.01325 x 10s pascals
Density of methane = 715.631 g/m3    (at STP: T = 0 °C, P = atmospheric = 101,325 Pa)
METRIC PREFIXES
Name

tera
mega
kilo
hecto
deka
deci
centi
milli
micro
 T
 G
 M
 k
 h
 da
 d
 c
 m
 Value

 1012
 109
 106
 103
 102
 10
 10'1
 10'2
 10'3
 10'6
                                         XI

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                                      1.  INTRODUCTION
1.1  BACKGROUND

Microbial decomposition of refuse buried in sanitary landfills generates landfill gas consisting principally of
55 to 60 percent methane (CH4) and 40 to 45 percent CO2.  The gas generation within any given landfill
generally  rises to  a peak shortly after closure, and then declines at  a rate  that depends on waste
placement, composition, moisture content, and many other factors (EMCON, 1982; Augenstein and Pacey,
1991).  Landfill gas is recovered for energy utilization at 110 sites in the United States  (Thorneloe and
Pacey, 1994). Extraction systems typically consist of vertical wells, and sometimes horizontal  trenches or
other zones filled with permeable material within the waste, from which gas is extracted by application of
vacuum. The gas is drawn into a piping network by a blower (suction) or compressor and transported to
a flare or, where economics and other circumstances are favorable, to an energy utilization plant. In spite
of relatively unattractive enrgy markets, landfill gas uses are continuing to increase both in the United
States and worldwide.  Landfill gas is normally used for fuel in energy equipment that is widely available
commercially, though primarily designed to be fueled by natural gas.  The specific energy applications for
which landfill gas is most commonly  used are shown in Table 1.
          TABLE 1.  LANDFILL GAS ENERGY APPLICATIONS IN THE UNITED STATES
 Applications
Degree of Use
Number of Projects
 Current Applications

 Direct Use
    Space Heating (and cooling)
    Industrial Process Heat
    Boiler Fuel
 Electrical Generation
    Reciprocating Internal Combustion Engines
    Gas Turbines
    Steam Turbines
 Other
    Purification to Pipeline Quality
Common
        20
Most common
Common
Limited


Limited
        60
        21
        5
 Emerging Applications

 Electricity Generation using Fuel Cells


 Compressed CH4 Vehicle Fuel


 "Synfuel" or Chemical Feedstock
 Organic Rankine Cycle (heat recuperation)
 and Stirling Cycle Engines
One full-scale demonstration project in 1994/1995
sponsored by EPA/AEERL.

One pilot-scale demonstration project (see
Appendix J).

One full-scale project under construction
None
 Source: Thorneloe and Pacey, 1994.

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 Landfill gas is substantially different from natural gas.  Natural gas, often referred to as pipeline gas,  is
 typically supplied from a high pressure transmission line as a clean, dry gas.  It is delivered to the energy
 conversion equipment at constant temperature and pressure and at a constant flow, with a constant energy
 content.  The energy conversion equipment available for use of landfill gas is  normally designed to use
 natural gas, although several manufacturers are now marketing modified equipment.  However, landfill gas
 reaches the energy conversion facility in a dirty and wet state. Its pressure is very low and its temperature
 may vary from well below ambient to 60°C (140°F). The moisture  contained in landfill gas is acidic and
 corrosive. Also entrained in the gas is particulate matter derived from refuse and daily cover material (e.g.,
 soil) as the gas is drawn into the piping vacuum. Landfill gas delivered to the facility varies in quantity and
 energy content on a daily and seasonal basis. All of these conditions  and characteristics of landfill gas  raise
 issues  not  associated with pipeline gas  usage.   The distinctive attributes of landfill gas,  and  their
 consequences to energy use, are reviewed in  this  report.

 1.2  PURPOSE OF THIS REPORT

 This report is a follow  on to an earlier EPA report  entitled: "Landfill Gas Energy Utilization:  Technology
 Options and Case Studies" (Augenstein and Pacey, 1992).  The purpose of this earlier report is to provide
 general information on landfill gas  energy uses.   It also includes information on landfill gas generation,
 modeling, or field development. Case studies document the experience at representative U.S. sites where
 landfill gas has been used for its energy potential. The Abstract and  the Table of Contents of "Landfill Gas
 Energy Utilization:   Technology  Options  and Case Studies" are included in Appendix A.  Also, other
 suggestions for further reading  are  included in Appendix B of the current report.

 The current report may serve as a tool to help potential developers of landfill gas energy conversion projects
 select  between options.  Information in the current report was gathered during extensive interviews with
 private developers and operators of  landfill gas energy conversion projects. (Summaries of these interviews
 are included in Appendix D.) The report addresses the technical, as well as the non-technical considerations
 involved with landfill  gas utilization  and it relates possible resolutions to these issues as they are applied
 by different operators, Design, as well as operation and maintenance considerations, are taken into account.
 Non-technical considerations include, but are not limited, to the following:  1) selection of energy utilization
 options; 2) project economics (financing, return on investment, profit, cost/benefit, etc.); 3) potential barriers
 (taxation, regulations, communication with Agencies and Commissions); and 4) incentives.

 It is hoped that the information on  non-technical barriers will contribute to a better understanding of the
 perspective of private developers/operators among all parties involved with landfill gas utilization. Apart from
 developers and operators, these parties include but are not limited to:  public and private landfill owners;
 local, state and federal regulators  concerned with solid waste, water quality, air quality, and global warming
 issues;  financial institutions; utilities; and end users. Landfill gas energy conversion can benefit if all above
 parties are aware of  each others viewpoints and objectives and participate in fruitful communication.  This
document is not intended to provide a comprehensive overview of the many different perspectives of all
parties involved. Instead, it summarizes the experience of current private developers and operators in an
effort to provide information to the public and more in particular, to assist future developers and operators
 in developing landfill gas utilization projects as a compliance option for potential CAA regulations for landfill
air emissions. Consequently, this document will present the issues from the industry's perspective and  it
will not necessarily reflect the views of the authors, nor of the U.S.EPA.

A data base of landfill gas to energy projects in the United States is being developed on both technical and
 non-technical issues. This will help to document the  extent that the issues identified by the major developers
and operators are affecting new and existing projects (Thorneloe and Pacey, 1994). Additional information
on technical problems encountered at 11 landfill gas  utilization sites in the United Kingdom (U.K.) is available
and has been included in Tables D1 and D3 of Appendix E. Appendix E presents landfill gas experiences
 in two  European countries; the Netherlands and the U.K. and gives a brief overview of developments in

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 Australia.  Also, a project to research utilization of landfill carbon dioxide (CO2) in the Netherlands is
 summarized.

 Facing new requirements for controlling landfill gas, many landfill owners are eager to turn the liability of the
 gas into an asset. Options to do so are discussed in Appendix F. The next appendix gives a step by step
 account on furnishing an existing landfill site with  a landfill gas recovery system.  In Appendix  H, the
 attributes of various proven technologies for generating electricity while utilizing landfill gas  as a fuel are
 discussed.   Equipment  size, installation  and operating costs, air emissions,  and plant efficiency are
 compared.

 Appendix I contains a paper that presents a detailed account on the use of landfill gas turbines, including
 a failure analysis, resulting in re-evaluation of the process design.  In Appendix J, an account is given of
 the utilization of landfill gas as vehicle fuel, one of several emerging technologies,  which are detailed in
 section 4 of the report. An EPA memo dated July 1994 providing  the EPA's New Source Review policy
 which regards landfill gas to energy projects as potential pollution prevention sources is included in Appendix
 K.  Appendices L and M focus on non-technical issues such as the sale of electricity from landfill gas
 projects and alternative energy regulatory policies.

 1.3  DEVELOPMENT OF THE  LANDFILL GAS INDUSTRY  AND TRENDS

 Numerical data used in this section originate from a data base developed by AEERL and  Solid Waste
 Association of North America (SWANA) (Thorneloe and Pacey, 1994). This data base is being updated and
 is to be published in an EPA report in spring 1995.  Copies may then be obtained through EPA's Control
 Technology Center [hotline: (919) 541-0800], SWANA, or the National Technical Information Service (NTIS).

 The landfill gas industry is almost 20 years old. The first commercial landfill gas  energy conversion project
 was placed on line at Palos Verdes Landfill, Rolling Hills, California in 1975.  It converted landfill gas to
 pipeline quality gas that was sold to the Southern California Gas Company.  Several additional landfill gas
 to pipeline quality projects were brought on-line in the late 1970s, including Mountain View (1978) and
 Monterey Park (1979), both in California.  Direct firing boiler projects  were brought on-line in the late 1970s
 and early  1980s.  The first landfill gas-to-electricity project occurred at Brattleboro, Vermont in the latter part
 of 1982, and electrical projects have dominated ever since. Currently, there are 110 landfill gas utilization
 projects in the United States. Most projects are in California and in the  Northeast (Figures 1 and 2).

 In general, many of the interviewed developers and operators of landfill gas to energy projects  in the United
 States assert that more incentives are needed to overcome the low revenues resulting from these projects
 primarily due to the relatively low cost of fossil fuel. Those interviewed suggested that over the last decade,
 energy prices have  neither been  adequate nor sufficiently stable  to fully support  landfill gas projects.
 California has created such an incentive: a price favored contract that utilities must offer known as Standard
 Offer #4 (SO4). This offer encouraged numerous landfill gas-to-electricity projects in California in 1984 and
 1985.  The last project under SO4 was started in 1990. Several of these offers have run out and some
 projects have had to close down when the pricing structure was reverted to the avoided cost price basis (of
 the utility). New Jersey, New York, and Pennsylvania adopted a Pioneer Floor Rate of $0.06  per kilowatt-
 hour (kWh) in the mid-1980s, however this was cancelled again several years ago. Illinois, Michigan, and
Wisconsin have offered energy price incentives to limited landfill gas  projects, thereby encouraging modest
 project development (Figures 1, 2,  and 3).

 Figure 3 gives an overview of  the net electrical output from  landfill gas projects per State  per type of
 generating equipment. California produces 35 percent of all landfill  gas generated electricity. New York,
 Pennsylvania, Michigan, Illinois, and Wisconsin produce an additional 35 percent, raising the percentage
of net output contributed by the six states to 71 percent.  Landfills in these states are required to collect and
control the landfill gas. Incentives in these states may have contributed to increased landfill gas utilization
over flaring.

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Figure 1.  Landfill gas recovery sites in the United States.

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     California
     New York
      Michigan
  Pennsylvania
        Illinois
     Wisconsin
    New Jersey
      Man/land
 North Carolina
        Texas
       Oregon
         Ohio
New Hampshire
     All Others
                               10
                                         15
                                                  20
                                                           25
                        30
                                                                              35
                                                                                        40
                         Figure 2. Number of projects per State.
   CALIFORNIA
    NEW YORK
     MICHIGAN
      ILLINOIS
   WISCONSIN
PENNSYLVANIA
      FLORIDA
RHODE ISLAND
  NEW JERSEY
      VIRGINIA
    MARYLAND
      OTHERS
                  Steam Turbine
                D Gas Turbine
                C3 Reciprocating Engine
                                  40
60        80
   MW (net)
                                                                  100
                                                                            120
                                                                                       140
   Figure 3. Net electrical output in MW per State per type of generating equipment.

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 Historically, through the 1980's a developer who  wished to  undertake a landfill gas to energy project
 compensated the landfill owner for the rights to the landfill gas.  In addition, the developer paid all cost
 associated with the extraction system, and taxes, where applicable. The current situation is that the energy
 prices are at a  very low  level and  those  interviewed  assert that barriers of  many types have been
 established.  However,  several new incentive programs have  recently been established under President
 Clinton's  Climate Change Action Plan,  which may directly  affect  the  CH4-from-waste industry.  The
 Department of Energy is implementing a research, development, and demonstration program targeted at
 the technical barriers to landfill CH4 energy recovery.  Another component of the Climate Change Action
 Plan is the Landfill Methane Outreach Program of the EPA. Both incentives are discussed in section 5.4.

 Generally, a direct firing project (i.e.,  boiler or kiln), immediately adjacent to the landfill is the most cost
 effective type of  project.  However, there are not  always boilers in close proximity to landfills and with
 continuous fuel demands (i.e.,  24 hours  a day, 7 days a week). Consequently there are only 20 boiler
 projects that have been developed in the  United States (Figure 4). Also, larger landfills produce quantities
 of gas that require several  nearby gas customers requiring continuous demand for fuel in order for all the
 gas to be utilized.  This is not always possible. In addition, projects that purify landfill gas to pipeline quality
 gas have not always been economically viable over the past decade. GSF Energy, Inc. is the only current
 developer in this area.  However, over the past decade  there has been significant growth  in the use of
 reciprocating internal combustion (1C) engines, in landfill gas  applications (Figure 4).  Reciprocating  1C
 engines are efficient and have reached a  high degree of standardization, encouraging modular availability.
 It is now possible to employ skid-mounted engines that can be easily moved onto site or to another site,
 should changes in landfill gas availability  make this necessary.
   120
   100
    80
    60
             82     83     84     85     86     87
    40
D Reciprocating Engine
EG as Turbine
D Boiler
D Steam Turbine
  Pipeline Quality
                                            88    89     90     91

          Figure 4.  Number of projects per end use per year.
92     93
It has been estimated that CAA regulations under consideration for new and existing municipal solid waste
landfills may require up to  700 medium- and  larger-sized sites to install  and maintain a landfill gas
extraction and control facility. These rules are scheduled for promulgation in June 1995. If economics are

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favorable for landfill gas energy conversion projects as compared to flaring, it would appear that 1C engines
will continue to be favored. Those interviewed beleive that the growth of other types of landfill gas energy
conversion options will depend strongly on the reduction of barriers and availability of incentives.  The trend
in municipal solid waste management toward larger regional landfills may help encourage the development
of  landfill gas to energy projects. Landfill owners will be looking for options to minimize potential control
costs and converting the landfill gas to energy provides an opportunity to comply with the regulations and
generate revenue.  (Doom et al. 1994).

The growth  of the various engine and turbine projects is illustrated in Figure 5.  Since 1989, Caterpillar has
had the most growth.  In that year, Caterpillar in cooperation with Waste  Management of North America
(WMNA) produced a "low pressure" 1C engine system that has eliminated the need for an auxilary high
pressure compressor. This reduced contaminant emissions and parasitic loading. Waukesha and Cooper-
Superior have now also introduced 1C engines with low pressure capability.
         H Caterpillar
         • Waukesha
           Cooper-Superior
         D Other R 1C
         H Gas Turbine
     82      83      84      85     86      87      88     89     90      91      92     93

   Figure 5.  Number of 1C engine projects (including gas turbines) per year per manufacturer.
The growing importance of 1C engines is again reflected in Figure 6.  The total net electrical output from
the landfill gas industry is now over 300 MW, with 1C engines accounting for 143  MW. This output is
generated from 60 projects (Figure 4), resulting in an output per 1C project of 2.4 MW.  For gas turbines
and steam turbines this number is higher; 4.8 and 13.8 MW/project, respectively.  Although 1C engine
projects are favored in the lower MW range, some larger 1C projects are also compatible.

The most aggressive developer in terms of MW output growth over the past few years has been WMNA
(Figure 7).  Other solid waste management firms with landfill gas interests include Laidlaw and BFI.  BFI's
expansion is principally limited to their own landfills.  Developers,  such as Energy Tactics Inc., Granger,
Laidlaw, and Landfill Energy  Systems aggressively market individual landfill owners.

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      D Reciprocating Engine
      D Gas Turbine
      H Steam Turbine
  82      83     84     85     86     87     88      89      90     91     92     93
Figure 6.  Net electrical output in MW per year per type of generating equipment.
          UWMNA
          DLACSD
          DPEN
          EJLAIDLAW
          • ETI
          D All Others
   82     83
           Figure 7. Net electrical output in MW per year per developer.

                                      8

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                              2.  LANDFILL GAS PROPERTIES
 2.1  COMPOSITION AND CONTAMINANTS

 This section describes the properties of landfill gas which may cause technical problems in landfill gas
 equipment.    The  properties  discussed  include  landfill  gas  composition  and  contaminants,  flow
 characteristics, and energy content. Except where  noted, the information discussed in this section was
 obtained from interviews with owners and operators  of landfill gas utilization schemes.  Summary texts of
 these interviews are included in Appendix D.

 Characteristic composition ranges for landfill gas (as it is delivered to the energy conversion facility) are
 shown in Table 2.  Natural gas characteristics are included for comparison.  As noted earlier, landfill gas
 contains methane,  CO2, and  smaller quantities  of nitrogen, trace gases, and  water vapor.  These
 constituents dilute the gas, reducing its energy content per unit volume compared to natural gas.  Landfill
 gas contains trace gases of NMOCs and significant  quantities of solid paniculate matter, especially right
 after startup.
                  TABLE 2. COMPARISON OF NATURAL AND LANDFILL GAS
Component
Methane (CH4), (%)
Ethane + Propane, (%)
Water (H2O) vapor, (%)
Carbon dioxide (CO2), (%)
Nitrogen (Nz), and other inerts, (%)
Trace condensible hydrocarbons (NMOCs) (ppmv as
Natural Gas
(as extracted)
90-99
1-5
<0.01
0-5
0-2
-0-
Landfill Gas
40-60
-0-
1-10
35-50
1-20
250-3000
 hexane)

 Chlorine in organic compounds (ug/l)                           -0-                    30-300

 Hydrogen Sulfide (H2S) (ppm)                               up to 15                  5-50

 Higher heating value, Btu/ft3                                950-1050                 400-600

 Sources:   Gas Engineers Handbook, 1965; Vogt and Briggs, 1989; EMCON et al., 1981.
          Units are those most commonly used for the stated component.
Nonmethane organic compounds include a wide range of organic compounds, mostly from volatile materials
thrown away in refuse (e.g., vapors from oily rags and paint solvents).  Since they burn up along with the
methane, most NMOCs are not considered harmful  if used in landfill gas energy conversion processes.
A few,  however, present concerns with particular applications.  The greatest potential problems are posed
by  halocarbons  [the  chlorinated  and fluorinated  (halogenated) hydrocarbons].  These include  the
chlorofluorocarbons widely used in the past in refrigeration equipment and as aerosol propellants, and other
solvents such  as dry cleaning fluids. Though many of these are being phased out for environmental

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 reasons, they are still found in  landfill gas as old aerosol containers (and other items containing these
 substances) corrode and the contents find their way into the gas.

 The problem with halocarbons is that they combust to products that include hydrogen chloride gas and (to
 a lesser extent) hydrogen fluoride gas.  Although their concentrations may be low, the gases are readily
 reactive with, for example, metal in internal combustion (1C) engines and gas turbines.1 Other NMOCs can
 present similar problems.  Organic acid components in aqueous phase can also corrode carbon steel.

 As listed in Table 2, untreated landfill gas  is at most 60 percent methane, with the balance being inert
 gases, principally CO2;  it has lower energy content than the natural gas on which most energy equipment
 would normally operate.  Therefore, one consequent requirement is that the energy system, including
 valves, pipes, and fuel metering, must introduce about twice the gas volume, relative to incoming air, as
 is required with natural gas.  This can be achieved by modifications that are relatively straightforward, for
 example, by both increasing the number of  burner orifices and/or enlarging them (in boilers), or modifying
 fuel/air ratio (in 1C engines and gas turbines).

 2.1.1  Condensate

 "Condensate" may form as a result of decreasing gas temperature and/or increasing pressure. Condensate
 is a dilute solution (one to a few percent) of the condensed water and contaminants found in landfill gas.
 Large quantities of condensate may be generated in the field when warm [>38°C (>100°F)] gas, saturated
 with water vapor, exits  a landfill and cools to ambient temperature.  Condensate generated in the field
 collection  lines  must  be drained or it can block them.  Even with  appropriate field collection system
 drainage, some condensate will typically reach the plant; it may arrive slowly and steadily over time, flowing
 with or entrained in the gas. Large quantities  of condensate in the system  (termed "slugs"  by some
 operators)  may also mobilize and arrive all at once.  Slugs must  be  removed before the gas enters the
 blower or compressor units.  Further condensate can  also result within the plant, due  to cooling or
 refrigeration following gas compression.

 2.1.2  Deposits

 Landfills contain soil and other particulate matter that can be drawn into the landfill gas stream where it can
 pose  various problems with energy generating equipment.  The specific problems actually seen include
 deposits in 1C engines,  including gas turbines, and buildups in the oil of 1C engines  such  that oil life is
 shortened and engine wear is increased.  Particulate matter can be removed by gas filtration.  When landfill
 gas pretreatment is by filtration alone, without refrigeration/gas drying, deposits may slowly build up in 1C
 engine cylinders or in gas turbines.  These deposits have been found to contain silica and  alumina, with
 lesser fractions of other solid compounds. Filtration is generally considered to be highly effective, so these
 deposits must have another origin than from particles in the gas stream.  An explanation may be found in
the existence of a gaseous compound in landfill gas,  containing silicon:  dimethyl siloxane [(CH3 )2SiO].
This compound will combust to give silica as a product, which could explain the presence of silica in these
engine deposits, as well as in the engine oil.

 Field experience proves that dimethyl siloxane deposits are effectively averted by gas refrigeration.  This
is quite peculiar, since this compound is low-boiling, implying that it is gaseous at all times.  Mechanisms
 1 Internal combustion engines burn fuel on the inside; the expanding gases provide the kinetic energy (shaft
power).  External combustion engines burn fuel on the outside. The fuel merely serves as a heat source to heat,
for instance steam. Then the steam provides the kinetic energy.  Therefore, stricktly speaking, a gas turbine is also
an 1C engine.  The term reciprocating internal combustion engine is sometimes used to indicate that the engine has
pistons. '

                                               10

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that allow for its removal are not fully understood. Also, no gaseous or soluble compound has been found
in landfill gas that might be a carrier of the aluminum/alumina found in deposits. So, if it is assumed that
filtration  is working  as it appears  to be,  the  presence of alumina, and  for that  matter other solid
components, (other than oil base ash) is unexplained.

2.1.3  Other Potential Issues

Polychlorinated dibenzo-dioxins (PCDD) and dibenzo-furans (PCDF) are highly toxic compounds that have
been associated with the combustion of chlorine-bearing waste.  The preponderance of current thinking is
that dioxins and furans can be destroyed with combustion, but that  reformation of PCDD and PCDF can
occur in the post-combustion phase if certain conditions exist:  temperatures ranging from about 700 to
1,000°F (370 to 540°C); particulate  matter containing copper, iron,  or aluminum, or even carbon, which
serves as a catalyst; and adequate retention time for the reformation to develop.2 (Gullett et al., 1994).

The issue of PCDDs and PCDFs in landfill gas emissions  has been raised on a few  instances.  It is
important to recognize that landfill gas combustors, whether they be flares, internal combustion engines,
gas or steam turbines, differ significantly from incinerators, or waste combustors.  First of all, landfill gas
combustors do not burn solids, such as PVC or other plastics as do incinerators. In addition, landfill gas
is usually subject to filtration  prior to combustion in a landfill gas energy utilization project, which would
remove catalytic particulates.  Also, temperatures conducive to PCDD/PCDF formation occur in a very short
time interval.  This is because the exhaust from the landfill gas control or energy utilization  project is rapidly
quenched as it leaves the exhaust region and enters the atmosphere.

Several landfill gas utilization projects have been tested for PCDDs, PCDFs and polychlorinated biphenyls
(PCB)  (another hazardous  pollutant). Test reports exist for  two boilers, one flare, and one gas  turbine
(Kleinfelder, Inc., 1991; Millican, 1994; Moilanen, 1986; and Pape &  Steiner, 1990). For the flare, the gas
turbine, and one of the boilers the emission results were all less than the detection limits for all of the above
combustion products. However, from a health risk standpoint, the detection limits were probably  set too
high. For instance, the boiler emission rate detection limits were as high as 4.3 X 10"" Ib/hr, whereas rates
necessary to protect public health may need to  be as low as 10"7 Ib/hr.  The positive test results of the
remaining boiler were below the 10'7 Ib/hr limits, however one of the laboratory blanks also tested positive.
Therefore, results from this test are also considered inconclusive. Current thinking is that the combustion
of landfill gas will not be a major source of PCDDs/PCDFs  as  compared to those processes that favor
dioxin and/or furan formation (e.g., municipal waste combustion).

2.2  VARIABLE FLOW AND ENERGY CONTENT

Landfill gas flow (rate, as well as volume) is determined by many factors.  First, landfill gas flow is directly
related to the  gas generation rate.   Generation rates change over time and depend on the biological
processes occurring within the landfill.  Typically,  landfill gas generation  should peak a few years after
landfill  (or section) closure, and then gradually decrease over a period that may last decades.  Secondly,
flow depends on meteorological factors, such as temperature  and barometric pressure changes that cause
the gas to expand or contract.  Lastly, flow depends on the  performance  and efficiency of the extraction
system. Landfill gas is drawn to the  energy conversion equipment by a vacuum. Leaks in the equipment
or pipes will result in air intrusion that will dilute the gas. This dilution will  effectively decrease the  energy
content of the gas (also, air intrusion might create an explosion hazard).  Pressure considerations are
discussed further in the next section.
 2 Gullett, Brian.  1994.  U.S.EPA/AEERL. Personal communication with John Pacey of FHC, Inc. and Susan
Thorneloe of U.S.  EPA, AEERL, Research Triangle Park, NC. June 14, 1994.

                                               11

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Gas energy content must  be known and monitored so that fuel metering (e.g., air/fuel  ratio) can  be
adjusted.  Also, energy content measurements may be necessary for accounting purposes.  In certain
cases, it will suffice to determine the calorific value of the landfill gas. Gas composition measurements may
be  made  by  methods  based  on  principles  of  thermal conductivity,  infrared absorption,  or gas
chromatography.  Flow measurements may be made using a pilot tube, orifice plate, turbine flowmeter, or
other equipment.  The figure on page E-34 in Appendix E provides a simplified process and instrumentation
diagram for a typical landfill gas clean-up system. Generic issues regarding instrumentation and sampling
are discussed in "Landfill Gas Utilization: Technology Options and Case Studies" (Augenstein and Pacey,
1992).

Because landfill gas supply may be  insufficient for the installed capacity, a few operations supplement
landfill gas with natural  gas. One method for supplementing is to blend natural gas with landfill gas.  This
blending requires fairly  close attention and control. Another method applicable to all equipment, but most
readily to  direct combustion equipment (i.e.,  boilers),  is to  provide dedicated separate and independent
burners for each  of the alternative fuels desired. This can eliminate control problems and allow simple
switchovers between landfill  gas and the other alternative fuels.  One manufacturer of 1C  engines
recommends to switch an engine entirely to natural gas, in case landfill gas supply is temporarily low, thus
avoiding most control readjustments.
                                               12

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             3.  TECHNICAL ISSUES, SOLUTIONS, AND FIELD EXPERIENCE
3.1  GENERAL

This section provides a discussion of the technical issues raised in the interveiws associated with the use
of landfill gas compared to natural gas—which is the primary fuel used for energy conversion equipment
such as reciprocating engines, gas turbines, and fuel cells. Technical issues (Table 3) arise as a result of
the relatively low heating value or from the presence of chlorinated and toxic compounds, particulates, as
well as the formation of condensates or deposits.  [For landfill gas the heating value is approximately
19x106 Joule/m3 and for natural gas it is approximately 37 Joule/m3 (500 vs. 1,000 Btu/scf).] This section
reviews these technical issues and summarizes current field experience in minimizing various adverse
effects.
          TABLE 3. SOME TECHNICAL ISSUES, EFFECTS, AND POSSIBLE REMEDIES
         System Part
Effect
Remedy
     CORROSIVE GAS

         General

         All Metal

         Compressors


         1C engines
Corrosion

Corroded valve parts may
enter
Condensate management

Avoid carbon steel

Modification to valve assembly and/or frequent
replacement of parts

Use of oils and lubricants with high total base
number
     CONDENSATE
                          Line blockage/
                          Slugs
                          Disposal problem
                        Condensate traps and drains and/or
                        Temperature management and/or
                        Removal of contaminants with solvents
     VARIABLE GAS FLOW

         General
Poor performance due to
variable flow and quality
Extraction system management
     LOW HEAT VALUE (compared to natural aasl
         Engines


         Boilers
Lower combustion
temperature

Slower flame front
propagation
Adjust fuel/air ratio


Adjust burner
                                             13

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To obtain pragmatic and recent information, interviews were conducted with five developers and/or
operators of landfill gas energy projects and one engine manufacturer, including:

     •    BFI; solid waste management firm with 5 in-house landfill gas utilization projects,
     •    Laidlaw; large developer and operator of turn-key projects,
     •    Pacific Energy; mid-sized operator,
     •    GSF Energy/Air Products; landfill gas purification to pipeline quality,
     •    Rust Environment and Infrastructure/Waste Management of North America (WMNA); large
          developer and operator,
     •    Caterpillar; gas engine manufacturer.

Write-ups of the interviews are included in Appendix D.  More information on technical issues associated with
landfill gas utilization can be found in the appendices to this report.  Appendix E includes a section from a
British document, entitled:  "Gas Utilization Technology."  This write-up contains comprehensive tables of
operating details of U.K. landfill gas utilization projects.

3.1.1  Pressure Considerations

In contrast to natural gas, landfill gas needs to  be pumped to the point of use.  Extraction  of landfill gas
typically  requires a blower designed to pump large volumes of gas at low pressure drops. A blower may
maintain a header vacuum (at the blower inlet) of 20 to  80 inches of water column [5 to 20 kilopascal (kPa)]
and will discharge to processing and energy equipment at pressures between 1 to 10 pounds per square inch
(psi) (7 to 70 kPa). Certain pretreatment 1C engines and gas turbines require higher fuel pressures typically
ranging from 240 to 1,030 kPa (35 to  150 psi).  A high pressure compressor may be combined with a low
pressure blower, or the compressor may serve alone for both field extraction and fuel delivery.

The gas enters the blower or compressor before most of the cleanup is accomplished and, thus, contamination
(which can result in corrosion) is a concern. Standard  blowers and compressors are normally designed for
dry gas service only, and liquid condensate would damage them.  Blowers for the landfill gas industry use
impellers and housings that are either coated or made entirely of plastic. Compressors are made of modular
iron or cast iron.   No significant corrosion  has been reported regarding landfill gas blower or compressor
usage.  Also,  blowers  are  said to resist damage from condensate slugs reasonably well.  According to
operators, blowers are among the most reliable equipment  items at landfill gas energy facilities.  Down time
is estimated to be 1 percent or less between normal blower service intervals.

In general, compressors also seem to be reliable when certain precautions are taken. Estimates indicate that
the down time due to malfunctions is around 1 percent  (precise statistics were not obtained).  Compared to
blowers,  the compressors are more susceptible to contaminants and condensate slugs, making condensate
removal and maintenance critical to their reliability.  With some compressor types, breakdowns  of valve
assemblies have led to various parts being sucked into the compressors, thereby creating serious problems.
Operators have been able to avoid this problem through custom  modifications of valve assemblies so that
corroded valve assemblies stay together. Also, frequent replacement of susceptible parts has proven to be
beneficial.

3.1.2  Material Modifications

With landfill gas, certain changes of materials may be required to avoid corrosion caused  by water and
various organic and particulate matter components in the gas or condensate.

For gas  pretreatment,  one simple rule is  to avoid carbon steel  where an aqueous  phase might occur.
Carbon steel is readily corroded by compounds such as organic acids in condensate.  When used in low
pressure situations, carbon steel may be coated with corrosion-resistant plastic.  For higher pressure


                                               14

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applications, zinc- or epoxy-coated carbon steel or stainless steel may be used. For low pressure piping,
plastics such as polyvinyl chloride (PVC) and polyethylene, among others, are used extensively (Held and
Woodfill, 1989).  When using plastic pipes and other components, three characteristics must be considered.
Glue in PVC pipes is susceptible to deterioration resulting from volatile organic compounds (VOC) in the
gas.  Also, plastic has a high expansion coefficient, and also, certain types of plastics are susceptible to
UV deterioration. One way to significantly reduce the influence of both characteristics is to bury the pipes,
which is done commonly in Europe, but not in the United States.

For energy conversion equipment, material adaptations are most prevalent with 1C engines.  In contrast to
conventional fuels, the largest problem that landfill gas poses is from corrosive compounds in exhaust gas,
and particulates and materials that form deposits (when cleaning is not thorough).  The parts of engines
most frequently susceptible to corrosion or wear are exhaust valves, and valve guides and stems.  In many
cases these are now chrome-plated.  Piston rings have sometimes  been  hardened.  Other  material
modifications  may be made.  The information on other material modifications is limited  (proprietary);
however, based on  reports from operators and manufacturers surveyed for this document,  modifications
do not appear to be extensive and are currently custom built into standard engine models.

Turbine and boiler manufacturers indicate that typically no significant material modifications are made  to
the  "standard" design for  conventional fuels  applications (mainly natural  gas).3   Also,  as a general
observation concerning all  energy conversion  equipment, there are typically no materials  modifications
reported in  exhaust systems.  Special attention  must be  given to hot water and steam boilers  with
economizers (heat recuperation), where the flue gases are cooled below their dewpoint.

Some sites  may use  pipelines to transmit landfill gas from the landfill to an energy utilization operation
some distance away.  Maximum pressure at the pipeline inlet is normally the boost pressure (line drop) plus
the pressure of intended use. As maximum pressure is normally under 700 kPa (100 psi),  pipelines may
be made of either carbon steel (which is relatively inexpensive) or polyethylene. Carbon steel is susceptible
to corrosion from dissolved components in any condensate which might form so, if it is used, condensate
must be prevented. Alternatively, with polyethylene pipe and where cleanliness is not an issue, condensate
traps may be  used.  A case study of each type of transmission was presented  in "Landfill Gas  Energy
Utilization:  Technology Options and Case Studies." No problems have been reported  for either case.

3.1.3 Condensate Management

Condensate will  be generated wherever water-saturated gas cools,  both within the extraction  piping and
the energy facility.   Condensate presents several potential  problems, which will  be  discussed  below.
Condensate can block lines,  reducing  gas supply and  energy output.   Condensate slugs  can damage
processing and energy equipment, notably compressors, 1C engines, and turbines.  With  engines, evidence
suggests its entry may produce deposits (likely resulting from entrained solids). Evidence also suggests
a shortened oil life and accelerated wear in 1C engines, which may be due  not only to deposits but also
to the corrosive nature of condensate.

Condensate within the field  piping system  is ordinarily  recovered using  condensate traps or drains
strategically placed at piping low points throughout the gas field.  Field gas pipes and headers  are sloped
to allow drainage and  may be resloped periodically to compensate for subsidence. Condensate traps may
be of various designs, some of which are very briefly described in EMCON (1982) and California Integrated
Waste Management Board (1989).  Although the field traps will reduce the potential amount of condensate
reaching the plant, their purpose is limited to keeping the extraction system  free of condensate blockage
 3 Personal communications, Robert Anuskiewicz, Solar Turbines, Inc., San Diego, California, and personal
communication, Philip Coerner, Cleaver-Brooks, Milwaukee, Wisconsin. August 1992.

                                               15

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 and slugs.  To reduce condensate further, a large condensate interceptor ("knockout") tank is usually placed
 directly ahead of the blower or compressor.  Knockout tank sizes may be 3,800 liters (I) (1,000 gallons) or
 larger.  Because of the large cross section, gas velocity is significantly reduced and condensate drops out
 and accumulates at the bottom of the tank.  Tanks may be baffled; in most cases, the upper reaches of
 the tank will contain  packing, mesh, or "demister" filters that remove smaller liquid droplets from the gas
 leaving the tank.  The liquid collected by the mesh or packing also drops to the bottom of the tank.

 Both compression (with aftercooling) and refrigeration can generate large amounts of condensate as the
 gas loses its capacity to hold water and other condensibles (which is the  intention of refrigeration).  Proper
 design will  assure that any liquid condensing prior to contact with the energy equipment can gravity-drain
 to an appropriate collection/storage/removal unit.  This drainage  is particularly important in winter, since
 condensate can freeze.  Another approach to condensate management is to avoid its formation.  For
 instance, after passage through the knockout tank the gas may be reheated to avoid further condensation
 in the gas feed lines  prior to the engines.  This may be done in an air exchanger where heat from the gas
 leaving the blower is absorbed.

 Because of its NMOC  content, condensate may present  a disposal  problem as it is becoming less
 acceptable  to dispose of it in sewers.  Other options, such as on-site treatment are now  frequently being
 required. Costs are particularly high if the condensate must be disposed of as hazardous waste (which will
 depend very strongly on local code).   In such cases, condensate handling  costs can be high enough to
 preclude energy use. Condensate disposal costs may outweigh the gain from improved equipment life.
 Readers may consult Vogt and Briggs (1989)  or Maxwell (1989), and Augenstein and Pacey (1992) for
 further discussion of condensate management.

    — Cooling, Refrigeration, and Drying

 Refrigerating the incoming gas stream and removing the resulting  condensate can result in some benefits
 (e.g.,  reduced  engine deposits, increased oil life, and reported reductions of other problems), to be
 discussed below in more detail.

When refrigerated, the gas stream is usually cooled to between 1°C  and 4°C [34°F and  40°F (the lower
temperature limit is set by the icing that occurs on heat exchanger surfaces)]. At these temperatures most
of the moisture and a fraction of other condensible compounds will drop  out. The gas is first compressed
and then refrigerated, which results in the optimum removal of condensibles. Refrigeration is most widely
applied with 1C engines which  appear to be the  energy equipment most  susceptible to contaminants.
Although refrigeration removes many contaminants, there are also some that are not effectively removed.
These  include the lower-boiling chlorofluorocarbons (Freons™), whose  combustion by-products contain
potentially damaging  acid gas compounds.

More water vapor may need to be  removed than can be accomplished by refrigeration (e.g., when landfill
gas is  piped  in cold climates to users some distance from the landfill).  Under these circumstances
condensate or ice may form in the  pipe, which would not be tolerable.  A chemical desiccant, for instance
glycol or silica, may  be  used  in such cases to remove moisture to reduce dewpoints to -17°C (0°F) or
below.

    — Rigorous Cleanup Methods

As noted in the section  above,  refrigeration does  not remove all  contaminants that could create energy
equipment problems.  Several more rigorous cleanup methods may be applied to  remove most of these
contaminants.  (Other approaches  developed for natural gas processing  could in principle be applied, but
are seldom used.)  The most widely applied  "stringent"  landfill gas cleanup approach  is probably the
Selexol™ process (Shah,  1990 and Hernandez, 1989).  In  this  process, a solvent is  used to remove

                                              16

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 NMOCs.  The solvent can also be chilled to increase removal efficiency.  Chilled methanol can be used
 similarly to the  Selexol™ solvent but, for certain  technical  reasons, is  more appropriate for pipeline
 purification than for trace contaminant removal alone.  Activated carbon beds can also be used to remove
 halocarbons and other organics (Watson, 1990), and can be applied in combination with pressure swing
 absorption (PSA) in the purification process for pipeline gas (Koch, 1986).

 3.1.4  Aerosol and Paniculate Removal

 Some of the smaller liquid droplets that can result from dispersion (or even a "fog" as condensation occurs
 in the cooling gas), and smaller particulates, may not be removed by the knockout tanks and its demisters.
 Filtration is  used to remove such moisture and particles.  One type of filter widely used is the coalescing
 filter that is designed to remove both entrained liquids and solids.  Liquids intercepted by the filter coalesce,
 drain from the filter, and are managed with the rest of the condensate. For dry gas, absolute cut-off filters
 are often applied; these may be similar to air filters used in automobiles. Filtration is rather straightforward
 and several types of filters have been demonstrated to perform well. Some of the filter manufacturers have
 been listed in the case studies in Augenstein and Pacey (1992).

 3.2  RECIPROCATING INTERNAL COMBUSTION ENGINES

 Reciprocating internal combustion engines are most commonly used in  landfill gas conversion setups.
 Because so many types are in use, they exhibit a high variation in design, degree of gas cleanup, and
 operational  adaptations.  The largest  problem that landfill gas  poses for 1C engines is from corrosive
 compounds in the gas, and particulates and materials that accumulate to form deposits (when cleaning is
 less than thorough). The engine parts most frequently susceptible to corrosion or wear are exhaust valves,
 and valve guides and stems.   As mentioned  before, in many cases material modifications are made to
 improve performance. Costs for 1C engine plants currently are between $950 to $1,250 per kW.

 3.2.1  Oil Selection and Management

 In addition to serving as a lubricant, oil  can serve to  protect interior engine surfaces from corrosion.  With
conventional fuels, corrosive compounds stem largely from combustion of the sulfur in the fuel. However,
for landfill gas-fueled  1C engines, the compounds of concern are the halogens that contribute to an acidic
environment. Chemical  additives to the oil (called "bases") can largely neutralize these compounds and
reduce corrosion of engine metal.

The index for basic additives  in the oil is the total base number (TBN).  The acid neutralizing capacity
increases with higher TBN.  Landfill gas engines commonly use oils with TBN around 10. However, the
reaction of an acid with a base results  in the formation of a "salt," which, if insoluble, will form a deposit.
With the use of  higher TBN oils this phenomenon  is not uncommon. Deposits  in oils are sometimes
referred to as "sulfated" or "oil  base ash."  A number of other concerns and issues exist with oils, including
buildup of particulate matter and nitration, which occurs when nitrogen oxides (NOX) in product gas reacts
with oil components.

Because of the cardinal role oil plays in landfill gas engines, frequent oil analyses are conducted in which
TBN, nitration, metal content, and various other components are followed to determine when replacement
is warranted. Levels  of metals will indicate degree of wear since the previous oil change and could help
to detect engine  problems.

The buildup of deleterious volatile compounds in engine oil may  be reduced by increasing crankcase
ventilation, which in turn increases the rate at which the compounds are swept by ventilation gas from the
oil. Another route tq reduce buildup of  volatiles in the oil is to increase cooling water temperature, hence


                                              17

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 block and oil temperature, so that evaporation is maximized and condensation minimized. This will also
 facilitate vaporization of water in the oil.

 On lubrication of spark ignition engines at the Stewartby site in the U.K., Moss (1991) reports the following:

     "Probably the most important item in the care of spark ignition engines, is the monitoring of the
     lubrication oil.  The  process of blending makes  it  difficult to  optimize TEN, ash and extreme
     pressure rating. Experience of the different types of oil,  particularly in Germany, had shown that
     different  designs  of  engines  were most  suited to different  blends  of oil.   Initially,  the  oil
     manufacturer recommended a CRI 30 which was similar  in characteristic to a number of oils  used
     on the Continent  in similar applications.  Simple alkalinity tests were  undertaken at  100  hour
     intervals to assess the remaining basic character of the oil.  A full analysis was undertaken every
     250 hours which led to oil changes at the 500 hours interval and the 1,000 hours interval.  After
     this, sufficient experience had been gained to allow  the time between oil changes to increase to
     1,000 hours intervals  with the same full analyses every 250 hours. After running for 5,000 hours,
     lacquering was noticed  in  some of the cylinder  bores and on the pistons during  routine
     maintenance.  Also,  valve  rocker faces and valve stems showed high  rates of wear.   After
     consultation between engine and oil manufacturers, a change in oil specification led to the use of
     natural gas 30M oil with increased extreme pressure and TBN characteristics. At the same time
     the hardness of the valve seat inserts and valve faces was increased by  using stellite surfacing
     and the engine water operating temperature was increased from 70°C to 80°C (160°F to 175°F).
     At the 10,000 hour interval the effect of the new oil was scrutinized. The greater range in alkalinity
     allowed the longer 5,000 and 10,000 hour planned maintenance periods to be extended to 6,000
     hours and 12,000  hours, respectively."

Trace quantities of metals  in the oil can be an indication of engine wear. In the Stewartby case, there were
elevated levels of both copper and silicon.  The main bearings in the  engines  are made of an aluminum
and tin alloy with phosphor bronze.  With no elevated levels of tin in the oil, bearing wear was discounted
and the conclusion was that the copper came from oil cooler  tubes.  A more extensive search was made
for the source of the silicon. The air filters were modified on one engine, an oil centrifuge was placed on
a second engine, and  a bypass filter was placed on a third.  Despite these measures, the silicon level
remained high. The problem  has not really been resolved.  Notable though,  is that silicon grease and
silicon rubber O-rings are  used in the engines.

3.2.2  Engine Adjustments

On average, landfill gas contains only half as much methane as natural gas.  Therefore, it is necessary to
modify the  fuel/air ratio in cases where  engines are  designed for natural  gas.   Also, controls are
recommended to maintain the desired fuel-air ratio at a relatively constant level, as energy content of the
incoming landfill gas  may vary.

Approaches to carburetion with landfill gas-IC engines include the following:

    •    Monitor inlet methane concentration, and adjust  fuel-air ratio accordingly.  In principle, monitoring
         should be frequent enough to track composition changes with reasonable speed and to allow
         timely carburetion adjustments.   This  may  or may  not  be possible in practice.  The  most
         frequently  used  method of  on-line  landfill gas composition analysis is gas  chromatography.
         Methane content  can  also be  measured (continuously) with  infrared spectrography.   An
         alternative  is  continuous measurement of the calorific value (directly proportional with CH4)  with
         a  calorimeter. Carburetion adjustments based on methane content are normally performed
                                               18

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          manually, although one system, Deltex™, is reported to employ an automated procedure (U.K.
          Department of Energy, 1992).

     •     Base control on an exhaust oxygen composition set-point, and adjust air-fuel ratio to maintain
          this. Oxygen can be analyzed in grab samples of exhaust, but sampling intervals are a limitation.
          Alternatively, in-line exhaust oxygen sensors allow real-time feedback control.  However,  high
          temperature sensors [>540°C (> 1000°F)] in engine exhausts have been reported to break down
          quickly (probably because  of halogens).  The fuel  mix may also be controlled by monitoring
          carbon monoxide (CO) levels in the exhaust.

     •     Assess combustion  time,  which is an  indicator  of  mixture composition  and carburetion.
          Technologies for this are  under development.

Proper spark advance for the mixture  and conditions is key to efficient engine operation.  A typical practice
with natural gas-IC engines is to set spark advance to a constant setting or to follow a preset ratio.
Sometimes  the  spark setting  is adjusted  based on fuel/air composition, which requires appropriate
measurement and feedback.   Whatever the fuel composition,  maximum  engine efficiency is normally
obtained with maximum advance (as  long as detonation  is avoided).

3.2.3  Lean-Burn 1C Engines

In "lean-bum" 1C engines, the air/fuel ratio is increased to lower the peak combustion temperature, thus
significantly  reducing NOX  formation.  A general control problem relating to both carburetion and ignition
timing, is that sudden "fuel-rich"  conditions may occur with swings in landfill gas energy content.  This
condition can result in detonation and severe engine damage. There are two ways to guard against this
condition: strict fuel/air ratio control or feedback ignition timing adjustment.  The latter is possible through
detonation-sensitive control, which advances the spark until slight detonation is detected, and then retards
it slightly; this normally results in optimum timing.  Nevertheless, there are circumstances when fuel is too
rich  and/or  when combustion chamber  volume is  reduced by  deposits, so that detonation will occur
regardless of ignition timing, and shutdown is needed to  prevent damage.

The air supply to lean-burn engines  must be pressurized by turbocharging. Turbocharger power is derived
from expanding  engine exhaust gas  in an  expansion compartment (somewhat similar  to the expansion
section of a  combustion gas turbine).  This expansion section is susceptible to damage from  any deposits
associated with landfill gas use.   Depending on where deposits form, they may flake off upstream of the
turbocharger and cause damage on  ingestion, or build up on the blades or housing of the turbocharger and
cause damage.  One approach to  this problem is to replace the entire turbocharger assembly with a
cleaned spare at appropriate intervals, such as on each top-end overhaul.

Another problem can exist with turbocharging.  Landfill gas is  normally delivered at the energy facility at
near-atmospheric pressure.  Both  the gas and air must be  compressed  to  (at least) intake manifold
pressure, which is well above atmospheric for lean-burn engines.  One option, still standard practice, is to
compress the landfill gas and air separately, using a compressor for landfill gas and turbocharger for air,
and then to apply carburetion. In comparison,  premixing of gas and air and subsequent turbocharging of
the mix can save capital and energy.  This is routinely practiced in the United States with Caterpillar 3516
engines (Chadwick, 1990)  and to a  lesser extent with Waukesha engines.
                                              19

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 3.2.4 Field Experience 1C Engines

     — Minimal Cleanup

 In one case, early in the history of landfill gas energy (mid-1980s), 1C engines were operated by one major
 energy equipment operator with cleanup limited to condensate knockout. Condensate knockout itself was
 reported to be  fairly inefficient so that some condensate was actually aspirated into the engine with the
 landfill gas fuel, giving (as might be expected) poor results. Engines were stated to be "corroded out within
 a few thousand hours." During the interval, when such minimal gas cleanup continued to be  practiced, a
 variety of design and materials modifications were applied to ameliorate problems. These included chrome-
 plated valves, hardened piston rings, and others (further detail was not given).   However, the operator
 reported that, ultimately, operating experience only improved when refrigerated gas cleanup was applied.
 After refrigerated  gas cleanup [to dew points below 4°C (40°F)] was instituted at the sites in question, the
 operator reported that top-end overhaul intervals improved dramatically (as high as 20,000 hours).

 Minimal cleanup regimens, as described in the previous paragraph may suffice under other conditions. This
 is shown by the experience with two Waukesha 7042 engines at the Marina  Landfill in Monterey County,
 California.  This facility uses no gas cleanup other than  interception of condensate and minimal filtration.
 After the gas passes through  the final field condensate trap, it moves through a riser via a small blower to
 the engine manifold.  The engine  performance  has  been quite good.  Analyses have indicated that the
 landfill gas at this site does contain chlorinated hydrocarbon  (analysis dates from 1980). Also, silica was
 found in  the engine oil.  Thus, the relatively good performance of these engines, in spite of the practical
 absence of cleanup, remains  a puzzle.

     — Limited  Cleanup

A major operator using Cooper-Superior engines uses a condensate knockout  before compressing the gas,
after which the  gas  passes through a coalescing filter. Care is given to maintaining the gas temperature
 between 38°C to 66°C (100°F to 150°F). Other modifications and adaptations by the operator include the
following:

     •    Monitoring of methane content every 6 minutes by gas chromatograph (GC),
     •    Maintenance of methane at 47 to  52  percent volume,
     •    Use of a single compressor for field extraction and to serve the engines with a 620 kPa
         (90 psi) gas supply,
     •    Natural  gas supplementation (at some sites),
     •    Monitoring of cylinder head temperature,
     •    Automated computer monitoring of engine status,
     •    Automated panel for ignition control for each individual cylinder, and
     •    Control  of engine to meet constant load.

The interval between top-end overhauls with  this cleanup regimen is approximately 8,000 hours, which may
be considered as low.   Cooper-Superior cites operating times of 17,000 hours for severe service  and
25,000 hours in less severe service for their engines.  In view of lower capital and operating expense and
absence of parasitic refrigeration load, this operator considers a low capital, less stringent cleanup strategy
preferable to refrigeration.

Natural  gas supplementation is  carried out preferentially at times of  peak power prices to maximize
revenue. This appears to work well and is reported to result in smoother operation than with landfill gas
alone. Supplementation is through blending of the natural gas into the landfill gas  stream.
                                               20

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 A problem that can occur when the engine is controlled to provide constant output is that misfiring of one
 or more cylinders can cause the others to overwork, overheat, and eventually be damaged. The automated
 control system detects such situations and allows their correction. There is more tendency for spark plugs
 to foul  and misfire when using landfill gas then compared with  natural gas.  No discussions of deposits
 were presented by this operator.

 Another operator, WMNA, has recently published details  of its experience and  has provided  further
 information in response to the survey conducted for this report (Markham, 1992).  WMNA operates lean-
 burn Caterpillar 3516 1C engines, mostly newer low  pressure  models (Chadwick,  1990).  The gas
 processing sequence is illustrated in Figure 8.
           Incoming LFG

             Y             Remarks
                        Performance target of 95% entrained liquids removal
                        Roots blower [23-34 m3/min(800-1,200 cfm)]; Compressor
                        [approximately 240 kPa (35 psi)]
                        Design dewpoint of approximately 2~fC (8tfF) or 6-£f C above ambient
                        Filtration to 3 microns, and condensate removal
                        Reheating to ca. 11°C (20°F) above dewpoint
         Figure 8.  Simplified landfill gas flowchart for 1C engines (limited cleanup).
The positive displacement Roots blowers have carbon steel interior surfaces contacting landfill gas directly;
otherwise all components contacting gas are plastic, stainless steel, or epoxy coated carbon steel.  It is
important to note that no refrigeration is practiced in the sequence above.  Engine features and operating
conditions  include:

    •    Chrome-plated valve stems/guides,
         Jacket water 110°C to 116°C (230°F to 240°F),
    •    Oil:  DA Blueflame™ type BG, nominal TBN 10 (see comments below),
    •    methane to engine monitored once/hour with Daniels™ GC,
                                               21

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     •    Carburetion control to maintain 7 percent oxygen in exhaust (this is by hand-held meter
          analysis),
     •    Exhaust gas temperature targeted below 650°C (1,200°F), maintained through adjustment of
          engine operating conditions, and
     •    Spark set to 25 to 30 degrees before top dead center (BTDC); adjustments based on exhaust
          gas temperature and spark is retarded if detonation is detected.

WMNA has compiled extensive operating statistics on its equipment application with the treatment regimen
above (Markham,  1992).  On-line time has been 89 percent,  when outages from  all causes for these
engines are counted.  However, gas supply interruptions due to gas field problems account for over half
(56 percent) of the outages.  Under  circumstances where gas availability is not the limiting factor, on-line
time has been even better (95.5 percent). Top-end overhaul intervals are on the order of 8,000 hours,
which matches Caterpillar's recommended interval.  Typically, oil change intervals are conducted at  700
hours of operation.

The type of oil used (DA blueflame) is a modified natural gas engine oil chosen after WMNA's examination
of several types.  Its total sulphated ash content  (1  percent) and nominal TBN (10) are  effective in
combatting corrosive compounds in the exhaust gas (Markham, 1992).  An interesting aspect of WMNA's
operation  is in-operation base replenishment.  As the base that supports TBN is  consumed by  acidic
combustion products,  more is added from treated oil bypass filters  from which additional basic additives
slowly dissolve over time." However, a current disadvantage of the oil used is that the ash from the base
seems to contribute to deposits.

A difficulty, attributed to the combination of the degree of gas cleanup with use of the engine oil specified
above, is the buildup of oil ash and silica deposits in the combustion chamber, on the piston crowns,  and
in components of the exhaust system. These deposits have several consequences:

    •    Over time they slowly decrease combustion chamber  volume, and increase compression ratio
         and tendency to detonate.   (In fact this dictates the top-end overhaul interval);
    •    Chips of deposited material may flake off and damage the turbocharger expansion section;
    •    Particles can cause abrasion of parts such as valve stems and guides; once such wear
         begins, it accelerates (apparently from increasing "blow-by") combustion of more oil and more
         rapid deposition of oil ash, and wear, in a vicious circle; and
    •    Typically, the deposits are  hard, so that removal requires power tools.

Tests are underway to determine if improved filtration, water injection, or use of ceramic coatings in certain
areas can overcome some of the deposit problems (Markham, 1992). Also, it is being determined whether
more stringent gas cleanup is warranted. Currently the trade-offs between disadvantages or debits of more
stringent cleanup and those of deposits appear close. Despite the problems, serious damage from deposits
is normally avoidable through timely  overhauls.  [See Markham  (1992) for further discussion of deposits.]

    — Stringent Cleanup

Lean-bum Waukesha and Cooper-Superior engines are operated by one major operator with cleanup that
includes refrigeration.  The typical  sequence is illustrated in Figure 9.
 4 Personal communication, Chuck Anderson, WMNA, May 1992.

                                              22

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            Incoming LFG

               f         Remarks
                          Large diameter vessel with demister pad in upper portion
                          If two stages: normally, there is intercooling with a condensate trap
                          between stages
                          Gas cooled to 2?C
                          Fiberglass filtration, 0.1 to 1 micron cut-off
                          Reheat to above ambient, 24-3? C (75-901 F)
                          10 micron cut-off
        Figure 9. Simplified landfill gas flowchart for 1C engines (stringent cleanup).
Engine operation practices include the following:

    •    Gas sampling by Gastech or GC, daily or less often;
    •    Carbon steel in some portions of process equipment (although it is being slowly replaced);
    •    Use of Mobil Pegasus™ 454 oil;
    •    Engine carburetion is based on  exhaust oxygen content; measured inlet methane content,
         and cylinder temperatures; and
    •    With Cooper engines an Altronics™ ignition controller is used to allow precision spark timing.

The experiences with engines on this regimen have been mostly good. Some of the problems that have
been observed concern changing landfill gas methane content.  Oil changes are generally performed at
2,000 hours,  which is considered excellent.   Intervals between top end  overhauls have been reported
asbetween 10,000 and 15,000 hours, which is regarded as very good.
                                               23

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3.3  GAS TURBINES

In the United States, there are currently five operators using landfill gas in turbines; mostly Solar Saturn
or Centaur turbines. These are "standard" units with the exception that the combustors are modified to
permit necessary entrance of more gas.  No materials modifications to the turbines have been made.5 For
all turbines, temperature control ("temperature topping") is necessary to prevent overheating of the blades
and to maximize power recovery. For landfill gas-fueled cases where energy content may on occasion vary
rapidly the fuel/air control  must react  rapidly,  or  temperature  overshoot will  occur.   The temperature
overshoot  will  "trip" and  automatically  shut down the turbine.  To prevent this—which is more  an
aggravation, than a serious problem—the turbine may be operated at a slightly lower temperature set point
and efficiency than is normally the case with conventional fuels.

To reduce  per unit investment costs, the capacity of a gas turbine should be large.  However, when the
amount of gas decreases, so does the load factor of the gas turbine,  resulting in very low efficiencies.  If
such volume swings in methane are expected, an 1C engine may be a better choice.

3.3.1  Field Experience Turbines

Operating system "A"  (WMNA).  The sequence  practiced by WMNA  for gas turbines is illustrated  in
Figure 10.  The operating experience with the current system has been good. "As with 1C engines, WMNA
has kept detailed statistics for on-line turbine service. In 1991, average on-line time for WMNA gas turbine-
generators, considering outages from all causes, was 86 percent; on-line time was 93.9 percent, excluding
outages caused by well field/gas system problems.

One operating problem, outside the  range expected with conventional fuels, has been with control of the
turbine.6 With "temperature topping" operation, automatic shutdown is triggered if gas temperature normally
exiting the  combustor rises by only  15°F.  With landfill gas, excursions to higher methane contents can
occur fairly easily.  Consequently, WMNA operates the turbine at a slightly lower combustor temperature
than would be the case with conventional fuels, 25°F below the trip setpoint.  This greatly reduces the
frequency of these  outages (which, however, are  brief). With  an earlier gas  cleanup system used  by
WMNA for turbine operations, some serious  operating problems occurred that are described in Schlotthauer
(1991).  This paper is included in Appendix I.

Another company, Laidlaw, operates Solar Saturn and Centaur turbines at five sites.  (All of these gas
turbine sites were purchased from a third party and have been managed and fully operated by Laidlaw only
since early 1992.) Details  of one site,  Sycamore  Canyon, have  been published  as  a case study  in
Augenstein and Pacey (1992).   The landfill gas  cleanup  sequence used by Laidlaw is  illustrated  in
Figure 11.
    Personal communication, Robert Anuskiewicz, Solar Turbines, August, 1992; personal communication, Chuck
    Anderson, WMNA, May 1992.
     Personal communication, Chuck Anderson, WMNA, May 1992.

                                              24

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 Incoming LFG
   Condensate
   knockout tank
     1
  Wire mesh pad
     I
    Blower
     I
  Heat exchanger
  Compressor
   Separator
  I3Z
 Heat exchanger
     I
     Filter
     I
Heat exchanger
    Filter
   To Turbine
Underground
                        Stainless steel
                        First part of 2-stage compression, rotary lobe type
                        Interstage cooling against atmospheric air
                        Second part of 2-stage compression, using oil lubricated screw
Separates oil from compressed gas
                       Gas cooled using fin-fan cooler
                       Condensate removal
Reheat to 11-22 C (20-40 F) above dewpoint
                        Using Pall process filter to 0.3 micron absolute
 Figure 10. Simplified landfill gas flowchart for gas turbines (example 1).
                                      25

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Other operational aspects practiced by Laidlaw are:

     •    Temperature topping operation,
     •    Recuperation of turbine exhaust gas against inlet air (with smaller Saturn units, only),
     •    Automated shutdown when oxygen exceeds 3 percent, and
     •    Precooling of turbine inlet air during hot weather (at some sites).

According to Laidlaw the performance of the turbine systems has been good. The gas processing system
initially designed by Solar appears to have avoided contaminant/oil related problems of the type reported
by WMNA at some sites.
                   Incoming LFG
                   Condensate
                   knockout tank
                   Coalescing filter
                     To Turbine
Solar
10 micron cut-off
                                   To about 1,200 kPa (175 psi) using Solar-Howden
                                   2-stage oil-flooded compressor
                                   Removes oil from compressor
                                   Cooling against atmospheric air
                                   Of post-cooling water
                                   Reheat to approx. 20°C (35-40°F) above dewpoint
        Figure 11.  Simplified landfill gas flowchart for gas turbines (example 2).
                                               26

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3.4 BOILERS

This section discusses landfill gas utilization in direct use boilers, as well as in steam boilers.  The largest
boilers using landfill gas are those raising steam for steam turbines at steam-electric power plants.

With direct combustion and boiler applications, the most common approach is to apply minimum gas
cleanup, limited to condensate knockout and optional filtration. To date, this has appeared to work well
for most boiler applications.  Boiler tubes, that might be considered potential candidates for fouling or
corrosion, appear to experience no undue amount of either.  The only corrosion reported has occurred on
boiler door fittings and on external tubing to auxiliary equipment, such as pressure meters.  All of these
parts can be easily and inexpensively replaced.  Design adjustment  however, needs to be made for the
lower energy content of the landfill gas flow (approximately 500 vs. 1,000 Btu/scf for natural gas). This may
be achieved by doubling the gas pressure (with a larger compressor), or by doubling the burner orifice area.
It is generally more economical to limit pressure requirements at the boiler and keep the whole system at
a  lower pressure.  At the Palos  Verdes Landfill gas steam turbine facility of the Los Angeles County
Sanitation District (LACSD) the size of the landfill  gas fuel piping and valves was approximately doubled
over the natural gas piping system to reduce the landfill gas pressure requirement to 2 psig.  Lowering of
the operating cost of the pressure drop for the landfill gas system pays for the larger piping system many
times over (Eppich and Cosulich, 1993).

With natural  gas-fueled boilers and other  direct use processes, fuel metering can be accomplished by
simply maintaining  a constant  flow  ratio  or, when finer control  of air/fuel  ratio (trim)  is desired, by
maintenance of a desired  (low) oxygen level in the stack gas.  For landfill gas the methane content can
vary significantly, therefore the maintenance of a constant volumetric flow ratio of landfill gas/air is a less
than satisfactory method.  Stack gas oxygen monitoring for trim can be done with grab samples using a
portable gaseous oxygen sensor.  Frequency with which stack gas can be sampled using a portable meter
is  normally limited.  In contrast, continuous in-stack oxygen monitoring sensors can  allow continuous
feedback control of air/fuel ratio in the optimum  range. Such sensors are reported to give very acceptable
service lives of several years (at least); this is  interesting in view of the reported limited lifetime of such
sensors in the exhaust gas of 1C engines.  If rapid landfill gas composition  changes  occur, oxygen
measurement and control may be too slow, particularly for  larger boiler systems; feed forward control
(measuring methane or heat content) is then recommended.  On the whole, the trim systems, which adjust
air/fuel ratios based on oxygen sensed in the exhaust, seem to work well.

Largely due to  the presence of a significant amount of CO2, flame front propagation through  the landfill
gas/air mix is slower than  with a natural gas/air mix.  For proper combustion in burners, the flame front
must propagate faster than the gas flows away from the burner. Under circumstances that occur with some
types of burners (e.g., conventional space heating), the flame may lift from a burner orifice, or with very low
methane gas levels, go out, if  the  flame  front propagates too slowly.  Such problems  are, however,
infrequent.

Eppich and Cosulich  (1993) indicate that  the  CO2 in  landfill gas has the beneficial result of reducing
formation of (NOX) and decreasing the amount of flue gas recirculation required to achieve a given NOX
emission level.  NOX emission from LACSD landfill gas fired boilers with flue gas recirculation are typically
16 to 24 parts per million by volume (ppmv)  at 3 percent  O2 (dry),  well below  established regulatory
requirements.  The boiler's flue gas recirculation system effectively reduces NOX by 50 percent.

To increase thermal efficiency, larger boilers and, in particular boilers for steam-electric plants may practice
recuperation of  exhaust stack heat with incoming air in a heat exchanger.  Where a boiler is combined with
a heat exchanger (often referred to as super-heater or economizer), such as at a steam turbine facility, the
lower landfill gas flame temperature resulting from landfill gas CO2 presence may result in lower flue gas
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 temperatures, and this may require use of a larger super-heater than would otherwise be needed for a
 natural gas fuel boiler (Eppich and Cosulich, 1993).  In some cases, fouling problems have been reported
 with super-heaters.   Deposits on recuperators (economizers) employing multi-finned tubes  have been
 witnessed. Deposit buildup in interstices has interfered with heat exchange. Eppich and Cosulich (1993)
 indicate that these problems have not occurred with the LACSD steam turbine projects. Some dust on the
 boiler tubes was noticed, however, this dust could be easily brushed off.

 During  combustion of landfill gas, the sulfur compounds in the landfill gas are converted to SO2 and SO3
 and trace amounts of chlorine from chlorinated hydrocarbons are converted to hydrochloric acid  (HCL).
 The SO3 in the flue gases raises the condensation point to approximately 280°F. If the temperature in the
 air preheater drops below the condensation temperature, problems can occur. As acid gases in the flue
 gas concentrate in the condensate, they will corrode both carbon and stainless steels in the gas path. This
 issue can be addressed by component replacement, or prevention of the condition.  On/off cycling poses
 some danger of corrosion from the exhaust condensate, that can condense in cool-downs between service
 periods.

 3.4.1  Field Experience Boilers

 A landfill gas-fueled steam boiler, that supplies 24,000 Ib/hr (at peak output) of steam to a pharmaceutical
 plant in Raleigh, North Carolina, has been described in Augenstein and Pacey (1992).  Minimal gas cleanup
 is employed (condensate simply drops out of a low point in the 3/4 mile gas pipeline  supplying the plant).
 The boiler is  equipped for multi-fuel  operation, incorporating  a landfill  gas burner ring  and separate
 dedicated oil and  natural gas  burners.  No  operating problems related to landfill gas use have been
 observed and this boiler has functioned well to date. At the LACSD's Palos Verdes steam turbine facility,
 landfill gas is delivered to the boiler at a CH4 content of 20 percent (approximately 200  Btu's per cubic foot),
 or less.  This low methane content can result in flame instability.  Natural gas supplement is sometimes
 used to stabilize the flame.  Redundant flame monitors are wired to a voltmeter above the operator's main
 control  board to detect the boiler flame.  If the voltage begins to fluctuate, the operator takes corrective
 action, such as increasing injection of natural gas, decreasing the flue gas recirculation, or decreasing the
 vacuum on the landfill.

 Details of design and operation of a 46 MW power plant in the Los Angeles Basin are presented in Eppich,
 et al. (1990).  Landfill gas fuel composition is tested continuously with an on-line calorimeter to enable fuel-
 air ratio control.  Problems relating to landfill gas itself are reported to be minor.  Some landfill gas-specific
 problems included  burner safety management "trips" and plant shutdowns due to a flame detection system
that did not always sense the cooler landfill  gas flame.  Flameouts also occurred when landfill gas energy
flow fell to 200 Btu/scf (equivalent to approximately 20 percent methane content) upon landfill  gas piping
breaks. One outage occurred where air preheater fouling, with deposits consisting mainly of silica, required
cleaning of the tubes.  However,  the operators  of this plant seem to  be satisfied with  its overall
performance.

Another landfill gas fueled steam power plant is operated in the same general vicinity of the plant directly
above.  This plant has a nameplate capacity of 20 MW, but due to limited gas supply,  generates an  output
of 15 MW. Relatively few other details were obtained.  With this plant, recuperator deposits  built up to
cause problems similar to those above; in addition, an indirect problem resulting from the deposits was
corrosion. This problem has been overcome by replacing the original heat exchanger with a new indirect
exchanger that uses Dowtherm™ as a working fluid.  The staff of both steam-electric  plants described
above indicate that steam electric generation using landfill gas  is a highly satisfactory approach for those
situations (large recovery rates).
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3.5 LANDFILL GAS PURIFICATION TO PIPELINE QUALITY

Landfill gas cleanup to pipeline (natural gas) quality has no very close analogue with conventional fuels,
but has some similarities to "sour" (high H2S/CO2) gas cleanup in the natural gas industry.  The principal
differences between sour natural gas and landfill gas cleanup are posed by compression issues (sour gas
at the wellhead is already at high pressure), and the need to remove halocarbon compounds that are not
present in sour gas.  Halocarbon compounds—along with other compounds—can be removed by cleanup
with sorbents, of which activated carbon is the most common.

The GSF energy division of Air  Products  and Chemicals, Inc. is  the principal entity in pipeline gas
preparation [although Browning-Ferris Industries (BFI) and Gas Resources Corporation also have plants].
The Gemini™ process used by GSF, in very brief overview, comprises:

     •    Refrigeration to remove condensate,
     •    A solid sorbent pretreatment system employing activated carbon, iron sponge, and other
         sorbents to take out the contaminants other than CO2, and
     •    Pressure-swing absorption CO2 removal.

For  both pretreatment and CO2  removal, multiple fixed-bed columns are used and regenerated in a
batchwise-continuous fashion [gas cleanup is done by columns with fresh sorbent while other columns are
regenerated off-line (Koch, 1986)]. The conclusion of GSF, after operating the process since 1986, is that
it has been a very satisfactory method for pipeline gas preparation. The molecular sieves used for the PSA
would be susceptible to damage were certain landfill gas NMOC contaminants to reach them; however, the
pretreatment step has been highly effective.  Until now, no molecular sieve column at any site has needed
to be replaced since 1986.

A  second approach for pipeline gas preparation is the  Kryosol™ process  using  chilled methanol as the
sorbent (Markbreiter, 1983).  The only report on this process, from one operator  who has operated a
system since 1986, is that their system—after much upgrading of gas field and piping unrelated to the plant
itself—has performed "quite well."  A very similar approach is the Selexol™ process that uses glycol (Shah,
1990).

A general consideration with gas purification processes is that nitrogen and oxygen contained in the landfill
gas  must be  limited, since  none of the processes listed  above can remove them.  This must  be
accomplished by well monitoring, and maintaining extraction rates and vacuum pressures low enough so
that  nitrogen/air entrainment  into the gas  is avoided.  GSF's experience demonstrates that this can be
accomplished to meet pipeline gas preparation constraints.

Appendix E describes a pilot  project  in the Netherlands where "waste" CO2 from a landfill gas purification
project is upgraded to liquid or solid ("dry ice") CO2 suitable for commercial purposes.  The study concludes
that upgrading of CO2 from landfill gas purification projects to marketable quality is technically, as well as
economically, feasible in the Netherlands.
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                           4.  NON-TECHNICAL CONSIDERATIONS
This section of the report presents non-technical barriers that are associated with landfill gas recovery and
utilization as encountered by the landfill gas utilization industry. It is hoped that the information presented
here will contribute to a better understanding of the perspective of private developers/operators among all
parties involved with landfill gas  utilization. These parties include but are not limited to: public and private
landfill owners; local, state and federal regulators concerned with solid waste, water quality, air quality, and
global warming issues; financial institutions;  and utilities.  The use of landfill gas can only be increased if
all parties are  aware of  each others viewpoints and objectives and participate in fruitful communication.
This document is not intended to provide a comprehensive overview of the many different perspectives of
all parties involved.  Instead, it is limited to summarizing the experience of current private developers and
operators in an effort to provide information to the public and more in particular, to assist future developers
and operators in developing landfill gas utilization projects. Consequently, this document will also present
the issues from the industry's perspective and it will not necessarily reflect the views of the authors, nor of
the U.S. EPA.

To  obtain pragmatic and recent information, interviews were conducted with seven developers and/or
operators of landfill gas energy projects, including:

    •     Palmer Capital Corporation; midsize developer of boiler, engine, and pipeline quality gas projects
          since 1983,
    •     BFI; solid waste management firm with 5 in-house landfill gas utilization projects,
    •     Rust Environment  and  Infrastructure/Waste Management of North America (WMNA);  large
          developer and  operator,
    •     Energy Tactics; midsize developer and operator of landfill gas to  electricity projects,
    •     Granger; small to midsize developer operator,
    •     Laidlaw; large developer and operator of turn-key projects,
    •     Pacific Energy; small operator.

Write-ups of the interviews are included in Appendix D, whereas a summary  is included below. Statements
of interest are referenced by including the name of the interviewed company in parentheses.  Aside from
possible non-technical barriers other possible considerations for potential developers or operators of landfill
gas energy conversion projects include 1) choosing between energy utilization options; 2) organization and
management of the  project;  3)  incentives to encourage landfill  gas utilization, which are discussed in
section 4.2.

    — Choosing between energy utilization options

Energy utilization options include direct use in boilers, cement kilns, etc., to produce heat; as fuel for 1C
engines and gas and steam turbines in the production of electricity; and as a feedstock for producing high
Btu quality gas for use as equivalent natural gas.  These options, and others under development, are
discussed in  detail  in  "Landfill Gas  Energy  Utilization:   Technology  Options  and  Case  Studies"
(Appendix A).  In general, the direct firing option (e.g., boilers) is the least costly and most favored.

A detailed discussion on choosing between different options for landfill gas utilization is beyond the scope
of this  report.  However, some guidance is provided in Appendix  E and H. Appendix E includes a section
from a British document  entitled:  "Quality Assurance and Risk  Management."  Although written from a
different perspective, it gives an  excellent  generic  overview of the issues involved with sound landfill gas
project management, indispensable  in  any decision  making.   Appendix  H includes a paper  entitled:
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 "Selecting Electrical Generating Equipment for Use with Landfill Gas."  This paper compares technical as
 well as operational and economical considerations, for 1C engines, steam turbines, and gas turbines.

     — Organization and management of the project

 There are many variations in the  position the owner/operator can take in regard to development of an
 energy conversion  project on a site.  Those interviewed stated that successful energy recovery projects
 appear to embody the following key elements:

     •    They are run by experienced professional management;
     •    They are adequately financed so that labor, inventory, and supplies are on hand as needed;
     •    They have an excess landfill gas supply, and favorable marketplace;
     •    The landfill  is active and remains so for 5 to 10 more years;
     •    Contracts for the gas rights, power, or gas, sales and facility use are solid and of proper term;
          and
     •    The project should have experienced  personnel, and backup, for servicing of the landfill  gas
          extraction system and the energy conversion  system.

 Today,'some companies provide turnkey design/construction for energy conversion units and will provide
 the operation and maintenance activity as well; some provide the same turnkey service for the extraction
 systems.  While the service industry is not big, it is adequate and growing to service the needs associated
 with the CAA.  Appendix C includes a list of landfill gas developers and landfill gas operating companies
 in the U.S.

 Appendix E  includes a section  from a  British  document entitled:   "Quality Assurance  and  Risk
 Management."  This paper might be of merit to landfill  owners who either want to develop a landfill  gas
 project themselves, or to monitor the progress of a contractor. It gives a breakdown of the different phases
 of a landfill gas project; from  feasibility study to shut-down.  Also, it provides check-lists of different tasks
 and responsibilities for participants.  Appendix G gives an overview of the issues involved in planning and
 constructing a recovery system for existing landfills.

4.1  BARRIERS

A barrier as presented here is an issue, hurdle, or project stopper.  What may be an insurmountable barrier
to a first time landfill gas project developer may not be a barrier to an experienced developer.

 U.S. barriers that were identified from the series of interviews conducted for this report include:

     •    Unfavorable economics due to low energy prices and high debt service rates for landfill gas-to-
         energy projects that generate electricity or pipeline quality gas;
     •    Limited or unstable  marketplace;
     •    Obtaining third party project financing at reasonable cost as it is difficult, time consuming, and
         proportionately more costly for small projects than for large projects;
     •    Difficulties in obtaining air permits, especially for projects located in ozone and CO nonattainment
         areas, as air boards and  utilities often have lengthy permit processes and contract negotiations;
     •    Difficulties in negotiating power contracts with local utilities as they  are primarily interested in
         purchasing low-cost power without considering environmental externalities (e.g., offsets from
         power plants using fossil fuel).   [However,  the environment has  changed somewhat as a
         consequence of State Public Utility Commissions (PUCs) who mandate that utilities only pay
         avoided cost for electricity purchases];
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     •    Unforeseen costs resulting from compliance with new  air quality rules and  regulations, and
          declining energy revenues that cannot be adjusted to offset new costs;
     •    Taxation by some states, such as California, on landfill  gas extraction and energy conversion
          facilities; and
     •    Difficulties in understanding Federal and State energy policies and environmental regulations that
          may affect these projects.

     — Financing

 Lenders, such as  banks, typically work with a minimum lending package  of approximately $10,000,000.
 Other lenders for small loan packages may offer mezzanine financing where, if available, will generally be
 2 percentage points higher then bank interest rates (Palmer).  It is important to note that small projects
 require almost as  much loan administration and due diligence work as the large projects (PEN).  In this
 sense, the small project is at a significant penalty because proportionally higher finance costs must be
 spread over a much smaller revenue stream. This fact alone has been a reason why many small projects
 have not been financed.

 Some lenders have limited experience with landfill gas projects and  the applied  technologies.  Typical
 concerns of lenders in regard to landfill gas projects include:

     •   The small size (Palmer, Laidlaw, PEN), typical lenders  are interested in projects of $10,000,000
         or more, whereas landfill gas projects rarely represent  more than $5,000,000;
     •   Environmental compliance and liability (Palmer, Laidlaw,  PEN);
     •   Landfill gas supply reliability over the term of the contract (BFI);
     •   Equipment performance;
     •   Management experience, capacity, and continuity;
     •   Cost stability and unexpected costs (retrofits, new rules and regulations, taxation, etc.) (Palmer,
         Granger, Laidlaw, PEN); and
     •   Contract constraints and inflexibility.

 In order to proceed with a project, a developer usually needs an  up-front financial commitment. Because
of the complexity of the due diligence, it may take  considerable time and negotiation to obtain a financial
commitment, particularly when some issues such as cost of interconnect (to a utility grid),  and obtaining
of some permits, may not be  resolved prior to financing commitments (ETI, Granger, Laidlaw, Palmer).
Loan guarantees required by lenders can be demanding (ETI .Granger) and attachments to non-project
assets may  be required.  In one instance, the lender required 62 signed documents  as  part of the loan
package (Granger).

     — Penalties Associated with Landfill Gas as a Fuel

California utilities (PG&E, SDG&E, and Southern California Edison) are auctioning future electricity capacity
with preferential  set-asides for renewable  energy projects. These projects  include landfill gas. However,
landfill gas is penalized for the CO2 content in emissions from engines (BFI, Laidlaw, Palmer, PEN). This
penalty  amounts to approximately 1.5 cents/kw (Laidlaw).  The  developers  consider this unfortunate
because the soon to be promulgated CAA regulations for landfills will require that  the landfill gas be
collected and either flared or combusted in energy conversion equipment at those sites targeted for control.
If it  is assumed that combustion efficiences  of a flare and a  utilization  process  are similar, the CO2
emissions are equal.  Therefore, if the landfill  gas were to be redirected through an energy conversion
combustor/generator set, instead of  being sent to a flare,  no new  CO2  emissions  are being created.
Accordingly, a landfill-gas-to-energy project should at least be on a comparable basis  as solar, wind, and
geothermal projects. The developers think that the government  (Federal, State, and  local) should assist
the  impacted landfills by ranking landfill gas-to-energy projects above competing renewable energy fuels

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 such as solar, wind,  and geothermal to help defray some of this  imposed cost burden for landfill gas
 projects that currently has no offsetting revenue increase (BFI, Laidlaw, Palmer, PEN). According to the
 developers, the action of the utilities in penalizing landfill gas projects for its CO2 emissions will make it
 difficlut for landfill gas to electricity projects to win any bids for new capacity in California.

 The developers think that because of low energy prices and additional barriers  to development of landfill
 gas projects, the landfill owner/operator may become an involved partner with  a prospective landfill gas
 energy developer.  The landfill owner/operator may  have  to provide all, or a  portion, of the costs and
 management  associated with the extraction system; at least  during the economic  life of the energy
 conversion  project term.   After  this period,  the  owner/operator  has  the  full  burden of  the  gas
 extraction/control system (Carolan, 1994).

     — Communication with Government Agencies

 While  there are typically only one or two Federal  agencies (EPA and OSHA)  interested  in landfill gas
 projects, there can be numerous State and local agencies involved in a landfill gas project, including those
 concerned with air quality, water quality, solid waste  and hazardous waste management; worker safety; tax
 assessment; and building and site improvement.

 Delays in obtaining permits from State and/or local air pollution control agencies to construct landfill gas-to-
 energy projects is considered a barrier. Lenders are cautious about providing up-front loan commitments
 when the time and cost for obtaining permits is uncertain (Palmer, BFI, ETI, WMNA, Laidlaw). Delays in
 the permitting process increase costs and uncertainty in whether or not a project will be approved by an
 air agency.  The time for obtaining a permit may range from a few months to well over a year depending
 on an air agency's permit requirements, work load, and regulations (ETI). Delays in the permitting process
 are frequently caused by a lack of clear guidelines for what must be  included in a permit and concerns of
 the agency and the public.  In addition, the number of regulations with which a project must comply also
 affects the length of the permitting process. For example, in California there  are a number of regulations
 that affect landfill gas projects including AB 2588, Rule 834, Rule 436.1  for H2S, Rule 1150.1 for landfill gas
 retrofits for NOX reduction, and the new operating permits required under Title V of the CAA.

 Projects that will be located in air basins designated  nonattainment  for ambient air quality  standards for
 ozone, CO, or NOX are being required to comply with new regulations and policies to control  emissions to
 bring the air basins into attainment.  Delays in  preparing the new regulations and in understanding their
 requirements  creates  uncertainty  and  delays  in  the  permitting  process.   For  example,  in ozone
 nonattainment areas, landfill gas-to-energy projects may be subject to  control requirements for nonmethane
organic compounds and NOX which increase the time and cost of the permitting process as well as the cost
of controls for the project.

 For projects that are considered major sources of one or more pollutants, difficulties can arise in  defining
the control technology to meet lowest achievable emissions rate requirements under new source review
 regulations or best available control technology (BACT) requirements to meet  prevention of  significant
deterioration regulations. For example, some local air agencies in California consider flares  as BACT for
 landfills.  Combustion of landfill gas in equipment designed to produce energy  is not considered BACT
 because the agency is only concerned with controlling the pollutants for which the project is major (e.g.,
 nonmethane organic compounds or CO),  and does  not consider the relative the benefits associated with
controlling methane to produce energy (PEN). An example of conflicting rules is the Californian Rule 131.1
that states that no fuel can be burned with more than 40 ppm of sulfur compound (for instance H2S); yet
there is also a requirement that the landfill gas must be burned (PEN). What if gas from a particular landfill
exceeds the 40 ppm sulfur limit?
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     — PUCs and Utility Companies (Utilities)

 The Federal Energy Regulatory Commission (FERC) recently ruled that it was unconstitutional for utilities
 to pay for electricity at a cost above their avoided cost. This ruling was passed through the State PUCs
 to the utilities and  has made the generation and sale of electricity to utilities an open and mostly free
 market.  Some states have provided some incentive packages that apply to landfill gas-to-energy projects,
 however, these have limitations as to availability and qualification. Those interviewed state that in an open
 and free marketplace, landfill gas to energy projects cannot compete as the break-even rate is in the range
 of 5 to 6 cents/kwh and the avoided cost today is believed to be about 2 to  3 cents/kWh.

 Interconnect costs to utility grids range in value from $10,000 for an older 1  MW project to $1,500,000 for
 a 15 MW project (ETI, Laidlaw,  Palmer, PEN, WMNA).  Costs have increased significantly over the past
 5 years. The cost estimates tend to rise as the project plans and details approach finalization.  The utility
 will usually install  the interconnect and  may  not accept  the  developer's  design and suggested  cost
 reductions.  The costs are usually higher  for projects in rural and  remote areas as line  capacity and grid
 are subject to greater relative charges.

 Utility companies will work with a developer, but need a realistic set of  plans and details to determine
 interconnect design and  cost. Costs may be high reflecting the utilities desire to do  a  good job and not
 have to escalate the initial cost estimate.  Nevertheless, developers have had numerous cost escalations
 as the project took shape.   Often final cost may not be available until the project is  almost on line, a
 condition which is bothersome in arranging early financing.

    — User Conception of Landfill Gas

 A number of developers has found that some potential boiler clients perceive landfill gas as an undesirable
 fuel.  For example, a boiler  user  may be unfamiliar with landfill gas characteristics, energy value, and
 reliability.   Also,  potential clients may have increased costs associated  with landfill gas use  as  a
 consequence of regulatory involvement, fire and safety issues, condensate management, and equipment
 maintenance issues, etc.  (Granger, Palmer).  It may be necessary to obtain right of way permission for the
 pipeline and make sure that the local utility is friendly and does not oppose the project (Granger, Palmer).
 It may also  be necessary to educate such clients and associated parties that the gas is safe to use and
 the equipment only  needs minor modifications for use of the landfill gas.

    — Market Selection

The marketplace for a landfill gas end-use project is limited to the landfill vicinity, usually within a distance
 of a few miles. Occasionally a greater distance has been achieved, which requires very specific conditions.
 Issues with  developers include:  whether the contracted quantity of landfill  gas can  be assured for the
contract term at 7 days/week, 52 weeks/year; whether the users are stable and will be  around for the
contract term; and whether there is flexibility in the contract for revenues to be adjusted for unforeseen cost
 additions related to  new rules, regulations, and required retrofits responding to environmental mandates.

    — Rules, Regulations, and Taxation

A first time landfill gas-to-energy project developer will  find a myriad of Federal, State, and local agencies
and rules, regulations, and tax assessments with  which to contend and  understand (Laidlaw).  It  is
 mandatory that a developer get proper guidance and education on these issues relative to  undertaking such
a project.  Existing developers or consultants should be  sought out for discussion and educational purposes
to determine the agencies, rules, and regulations affecting such projects and to assess the pros and cons
of undertaking  such a project.  New rules  or  regulations  can result  in unforeseen  retrofits, increased
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monitoring, and added assessments; all adding unforeseen costs. There is generally no possible revenue
increase to offset this cost (Laidlaw, PEN).

Landfill gas-to-energy projects are of benefit to society and the environment. On this basis, many states
exempt them from taxation, partially or fully.  Other states, for a variety of reasons, assess secured,
unsecured, and possessory taxes upon all site property [(extraction system, gas reserves, and on-site plant
and improvements) Palmer, Laidlaw, PEN]. These levies can be significant and have led to the elimination
of some potential landfill gas projects.

    — Costs of Condensate Disposal

Where condensate can be disposed to existing leachate systems or sewer systems, disposal costs should
be relatively low.   However, if the condensate cannot be disposed in this manner, costs can range up to
$1.00 per gallon; this could discourage a landfill gas project (PEN, Laidlaw).

4.1.1  Selected Case  Histories

        — New England Power Company

        The New England Power Company "Green Request for Proposals" case study illustrates that
        a utility can play a key role in encouraging landfill gas energy recovery, and gain significant
        benefits from doing so. At the same time, this case study shows the need to educate public
        utility commissions about the value of landfill gas  energy recovery  projects, and the need for
        project developers to seek the most cost-effective project designs.

        In .December of  1991,  New England Power Company (NEP), the  wholesale generating
        subsidiary of the New England Electric System, issued a  Green Request for Proposals (RFP)
        for energy from renewable resource technologies. Within the framework of long term corporate
        planning, the Green RFP was designed to  allow NEP to assess the potential of renewables
        in New England and to stimulate their commercial development.  This move, the first of its kind
        by any utility in the U.S., was designed to generate environmental benefits and test "green"
        electricity sources for cost, reliability, and future expansions.  It is expected that these plants
        will help NEP obtain its  goal of significantly reducing air  emissions and, in particular,  of
        reducing greenhouse gas emissions by 20 percent by the year 2000.

        NEP clearly recognized the benefits of landfill gas energy recovery, and the role these projects
        could play in  its energy strategy.  In August 1992,  NEP made the following statement its New
        Renewable Energy Initiative - Objectives and Experiences:

            "The RFP, however,  reveals that there are still opportunities available for landfill gas
            generation expansion. Due to the fact that the potential sites are widely distributed,
            landfill derived methane resources can  yield local benefits to many  communities
            while  easing transmission  and  distribution  loss by offsetting local  loads.  The
            opportunity to reduce methane emissions (which are considered to have a potential
            impact up to  21  times that of CO2  on global climate  change) makes landfill
            generation an attractive option for addressing the NEP goals."

        From the solicitation, NEP received 41 bids representing over  1.4 million  MWhrs of annual
        generation  from solar, small hydro, advanced wind, landfill produced methane, biomass, and
        waste-to-energy projects.  Many viable small hydro and landfill gas project bids were received.
        Although all projects exceeded NEP's forecast at the time for avoided costs, NEP was satisfied
        that the potential  educational and environmental benefits made investment in these projects
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worthwhile.  In fact, when environmental benefits were considered, NEP concluded that the
value of these projects substantially outweighed their cost.

On July 22, 1993, NEP issued a statement that it would purchase 36 MW of electricity from
seven renewable energy plants, including four landfill methane combustion projects (three in
Massachusetts and one  in New Hampshire) with a combined capacity of 13 MW.  The
statement included the following comment:

     "Landfill  methane combustion,  one  of the  selected  technologies,  provides
     environmental benefits from using methane gas that otherwise would be released to
     the environment.  The methane  is produced as the solid waste decomposes in
     landfills.  If the methane was released without combustion, it is considered to have
     as much as 20 times the contribution to potential global warming as carbon dioxide,
     a byproduct of the combustion process."

NEP's next  step  was to obtain approval from the public  utility commissions in its service
territory, which includes the states of Massachusetts, Rhode Island, and New Hampshire. The
successful project developers had signed power purchase agreements with NEP with provisos
that the contracts were to be approved by the PUC in each of the three states.
The New Hampshire PUC was the  first to address these projects. They initially rejected all
landfill methane  recovery  projects,  contending that NEP would  be  paying too much above
avoided cost, and that the projects did not demonstrate new technology. -The New Hampshire
PUC also felt that because the landfill gas may have to be collected and either flared or used
in the near future, the projects would not convey environmental benefits beyond  what will be
required by the new landfill regulations.  The  PUC also had concerns about establishing a
precedent for paying more than the  avoided cost. The result was that the developers agreed
to pay New  Hampshire consumers  the difference  between NEP's current projected avoided
costs and the developers' contract price, since  only  a very small  portion of the power
generated from landfill gas would be consumed in New Hampshire.

The Rhode Island PUC reviewed the Green RFP proposals several months later and rejected
the  alternative energy applicants, arguing that NEP should not pay the developers more than
NEP's avoided cost.

Although the Massachusetts PUC staff had indicated its approval of the Green RFP alternate
energy projects, NEP chose not to proceed without approval from the Rhode Island PUC.

NEP acted to cancel  its  contracts  with  landfill developers.   However, both NEP and the
developers were willing to renegotiate the power purchase contracts.  As a result, the parties
agreed upon revised project cost figures, which were presented to the PUCs.  Ultimately, all
projects were approved by the three PUCs. The results of this process — the PUC approvals
and the developers' renegotiations — are:

     •    the projects are  proceeding,
     •    the developers will make  less profit than originally planned, and
     •    the projects start-up dates were delayed by about 1-1/2 years.
                                        36

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        Several lessons can be learned from this case study:

             •     PUCs need to be educated about the benefits of landfill gas energy recovery.  To
                  address this informational barrier, EPA's Landfill Methane Outreach Program is
                  providing information to commissioners.  The National Association of Regulatory
                  Utility Commissioners endorsed the Program in March  1994;
             •     Utilities, such as NEP, considering renewable energy purchases above avoided cost
                  should consult with their PUCs early in the process and be prepared to respond to
                  any PUC concerns;
             •     Project developers should carefully consider all the options for structuring projects
                  at the least cost and look for opportunities to work with the utility to gain PUC
                  approval.

        — Michigan Township

        A Michigan Township Supervisor raised an issue as to whether the extraction and use of
        landfill  gas qualified the project for taxation exemption. The Township elected to take issue
        with the exemption clause in Public Law 2, recently enacted to help facilitate renewable energy
        projects.  The Township  was  concerned  with whether  the clause applied  to an  electricity
        project. The State had not clearly  defined what was a qualifying facility and the decision
        therefore rested with  the  local community. The community interpreted the law to  place  the
        project in a position of a solid waste management facility that was non-exempt. The result was
        a 2-year legal  dispute, including court action. If the State, or federal agency, were to clarify
        the environmental posture of a landfill gas recovery project, then such an issue would probably
        not  arise  in the minds of state, or local authorities (Granger).  The  plant was actually
        constructed and operational during this 2-year dispute as the circuit court judge  allowed the
        project to  be operational under certain constraints. Nevertheless, such  court action causes
        delays  and adds costs, which may become difficult to bear for a smaller, less experienced
        developer.

        — San Marcos Landfill, CA

        The County of San Diego  owns the  San Marcos landfill and is expanding it vertically.  The
        State Solid Waste Management Board required that an  impervious liner be  placed between
        existing refuse plan grade and the vertical addition. The site has an operating gas extraction
        system in place that would be impacted by the vertical rising.  The Solid Waste Management
        Board wanted the extraction system to be buried with all existing lateral and header piping to
        be installed laterally so that the piping would underlie the new barrier, without penetrations.
        The  Air Board intervened to require vertical extension of the  existing wells with use of
        appropriate sleeves where penetrations occurred. This was finally approved but with the
        caveat that a significant layer of clay be used on all penetrations to improve seal performance.
        This negotiation took time, added costs and demonstrated that agencies can have a significant
        impact on project retrofit, or expansion.

4.2  INCENTIVES

U.S. incentives for undertaking landfill gas projects include:

     •     Purchase of electricity at avoided cost of between  2.5 and 3.0 cents/kwh, except where a
          utility offers a special incentive program, consisting of a levelized higher price, and/or capacity
          entitlement,
     •     Production Tax Credits (PTCs),
     •     Favorable utility contracts for electricity projects,
     •     Tax exemptions for landfill gas extraction and energy conversion facilities,
     «     Technical assistance from EPA's  Control Technology Center, and
     •     New initiatives from the Department of  Energy and EPA, discussed  under 4.2.1.


                                                 37

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 Production Tax Credits are available to a tax paying entity that has the rights to sell the landfill gas and
 does sell it to an energy user who purchases the landfill gas and converts it to energy. These credits are
 proportional to gas energy delivery as legislated by Congress (Section 29 of the IRS Code) in 1979 to
 encourage non-fossil fuel use. Today, these credits amount to the equivalent of approximately $0.01/kWh
 and they increase in value at approximately 4 percent annually. To obtain an indication of the PTC dollar
 value for a given project, a chart is shown in Figure 12.  With this chart, PTCs for a given landfill gas flow
 (mmscfd),  methane concentration  (%), and energy value (price of barrel  of oil  equivalent) may be
 calculated. Another chart (Figure 13) converts landfill gas flow in  mmscfd into electrical output in MW, by
 making use of the heat rate of the gas  in Btu's per kW.

 Some states  have mandated that utilities purchase a portion of their new capacity from renewable energy
 sources, including an allocation for landfill gas, some utilities have provided the same scenario.  However,
 some utilities penalize  landfill gas for the carbon content in the exhaust of the engines, or turbines.  Most
 of the state and utility new capacity incentive opportunities are spoken for at present.  The incentive
 Pioneer Rate of approximately  6 cents/kWh was offered  by utilities in New Jersey,  New York,  and
 Pennsylvania from 1984 until about 1992; the favorable 1984 Standard Offer Four contract was offered by
 California utilities for about 1 year, many of these Standard Offer Four contracts are coming to the end of
 their favorable pricing and capacity entitlement revenue stream.

 Additional incentives are sometimes offered by state mandate to the utility .companies, or directly by a utility
 company, to  contract for a stated amount of capacity at  a favorable rate from landfill gas sources.  In
 evaluating the viability of the project the developer first  assesses  the potential revenue  stream  which
 consists of the current avoided cost of 2.5 to 3.0 cents/kWh, plus the value of the PTC which is now about
 1.3 cents/kWh and any capacity entitlement, which vary from 0 to about 1 cent/kWh, depending upon the
 utility's need.  All revenues and costs are expected to rise in future years to keep up with inflation, or some
 accepted measure of inflation.

 However,  if only the  avoided  cost and PTC are  available, the  revenue stream  consists of 2.5 to
 3.0 cents/kWh plus  a tax credit equal to 1.3  cents/kWh. This is not considered enough  by some landfill
 gas developers to justify development of a project.  Most developers assert that a cost basis  for breakeven
 is'4.0 to 6.0 cents/kWh for large and small projects respectively assuming they pay no royalties and the
 landfill owner is responsible for the landfill gas extraction system. Royalties paid to landfill owners have
 ranged  up to  15 percent of revenues when revenues are in the 7 to  8 cents/kWh and are little if anything
 as the range falls below 5 cents/kWh. One option to obtain a higher initial energy sale price  is to negotiate
 a levelized, or phased price basis with the utility such that the developer obtains a higher than avoided cost
 payment in the early contract years in exchange for a lower than avoided cost in later years as the capital
debt is paid off. Other creative options may be necessary to secure a viable project.  (Carolan, 1994.)

An  existing EPA initiative to provide technical assistance in access to EPA publications  is  the Control
Technology Center (CTC). Providing technical support in estimating landfill gas emissions and evaluating
control/utilization options is included in  the CTC scope. Currently the CTC is responding  to over 2,000
telephone calls per year on  landfill gas issues.  In addition, the CTC is sponsoring the  development of
 software for estimating landfill emissions based  on  a first order decomposition equation.  Defaults for
estimating emissions can be based on user supplied information,  AP-42 values (U.S.  EPA,  1991) for
developing state inventories, or CAA values to determine applicability.  The original version of the model
was published in 1990 (Pelt et al., 1990). The updated version is to be released in conjunction with the
 promulgation  of the CAA landfill rule which is scheduled for June 1995. The CTC may be reached at:


                               EPA Control Technology  Center  (CTC)
                           U.S. Environmental Protection Agency (MD-13)
                           Research  Triangle Park, North Carolina 27711
                           Hotline: (919) 541-0800, Fax: (919) 541-2157
                                               38

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                                    2000
                                                                            750
     LFGFLOW(mmscfd)
LEGEND:
  mmscfd - million standard cu.ft.7day
  scfm - standard cu. fUminute
  BOOE - Barrel of Oil Equivalents
  PTC - Production Tax Credits
EXAMPLE:
  1 mmscfd of LFG @ 50% CK
  = 700 scfm of LFG     4
  = 350 scfm of CH4
  = $190,000 of PTCs in 1994
ASSUMPTIONS:
 • 1scfofCfy=1,OOOBtu's
 " PTC escalation rate = 4%/year
 * Extraction rate constant
   365 days/year
METHANE FLOW (scfm)
                                                                        $6.22
                                                                       in 1995
                                   $5.75
                                   in 1993
                                     $5.98
                                     in 1994
        Figure 12.  Chart to calculate production tax credits from landfill gas flow.
                                          39

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                                   2000
      LFG FLOW (mmscfd)
LEGEND:
 mmscfd - million standard cu. fUday
 scfm - standard cu. ftVminute
EXAMPLE:
 1 mmscfd of LFG
 = 695 scfm of LFG
 = 310 scfm of CH4(% CH*= 45)
 = 1.25 to 1.5 MW electricity
   (heat rate 15,000 and
   12,500 Btu's respectively)
   Note: heat rate is the
        higher heating value
METHANE FLOW (scfm)
                                                                            750
         Figure 13. Chart to calculate electricity output from landfill gas flow.
                                      40

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4.2.1  New Initiatives

Control of greenhouse gas emissions (CO2> CH4,  and many VOCs)  was addressed at the  international
environmental conference in Rio de Janeiro in June 1992.  At this conference 154 heads of  state signed
an international agreement to promote and cooperate in activities that would mitigate future climate change
and  its potential impacts.  President Clinton's Climate Change Action Plan promotes efficiency and U.S.
ingenuity as the best strategies for confronting the threat of global warming caused by greenhouse gases.

Under the Climate  Change Action Plan, the Department of Energy is implementing  a research,
development, and demonstration program (RD&D Program) targeted at the technical barriers to landfill CH4
energy recovery.  This program will include technology demonstrations and related efforts to speed the
commercialization of new or improved recovery and utilization technologies.  This program is to build on
EPA's existing RD&D programs on landfill gas. A collaboration research program is being planned that will
help to achieve near-term  reductions of CH4.

Another component of the Climate Change Action  Plan is the Landfill Methane Outreach Program of the
EPA. Through this program, EPA is working with landfill owners and operators, states, tribes,  utilities, and
other federal agencies to promote the use of landfill gas as an energy resource.  The Landfill Methane
Outreach Program is designed to remove regulatory,  information, and other barriers by promoting greater
regulatory awareness of project opportunities,  furthering understanding of energy benefits, providing
technical information, and fostering common goals.  Through the Landfill Methane Outreach Program, EPA
creates alliances with states and utilities to achieve these goals.

Participating states agree to review  and explore opportunities to overcome  any unnecessary regulatory,
administrative, and other barriers to widespread adoption of energy recovery at landfills.  Also, states will
assist  in information transfer.   Participating utilities  agree to cooperate with  EPA to develop  win/win
strategies for promoting the development of landfill  gas resources.  They will also assist in the distribution
of outreach materials.

EPA is launching the Landfill Methane Outreach Program in fall, 1994 in five key states.  The Program will
expand to an additional ten states in summer 1995 and nationally the following year.  More information may
be obtained from:
                             EPA Landfill Methane Outreach Program
                    U.S. EPA 6202J, 401 M Street, SW,  Washington} DC 20460.
                            Hotline:  202 233-9042, Fax: 202 233-9569
                                              41

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                               5.  EMERGING TECHNOLOGIES
 Diverse aspects of landfill gas  utilization technologies, including pipeline purification and use in  boilers,
 engines, or turbines, have been discussed before in Chapter 3 of this document as well as in numerous
 other publications (see Appendix B:  Further Reading).  Apart from these established technologies, there
 are also emerging landfill gas applications that appear promising for the future.  In this chapter, three of
 these emerging applications are presented:

     •     Landfill gas utilization as vehicular fuel (demonstration project, described in Appendix J),
     •     Conversion of landfill  gas to methanol (demonstration plant under construction), and
     •     Landfill gas utilization in fuel cells (demonstration project).

 Other options to make use  of landfill gas exist.  Two of these, Organic Rankine Cycle converters and
 Stirling engines, are worth noting. An Organic Rankine Cycle converter makes use of the waste heat and
 is, therefore, not specific to landfill  gas applications.   Perennial Energy of West Plains, Missouri has
 conducted work with Organic Rankine applications on waste heat from landfill gas projects; however, most
 of their Organic Rankine experience involves utilization  of heat from  geothermal sources.  The  Stirling
 engine was invented in 1816 in Scotland.  It is an external combustion engine (like a steam engine) that
 uses combustion energy to rapidly heat and cool an enclosed gas  (e.g., air or  hydrogen).  The  hot
 expanding gas propels a piston and shaft. To date no Stirling engines have been field tested for landfill
 gas applications.

 The  three aforementioned  technologies have in common the requirement for thorough  landfill gas
 purification to a grade higher than is necessary for use in boilers or engines. As reported in Table 2, landfill
 gas consists of methane, CO2, H2O, H2S, and various trace constituents, including NMOCs.  If there is air
 intrusion into the landfill, the landfill gas will also contain nitrogen (N2).  The effect of these gases (reducing
 the heating value and causing corrosion) on equipment performance has been discussed  in detail in
 previous chapters. Table 3 shows several commercial processes available for purifying gas.
                  TABLE 4. GAS PURIFICATION METHODS AND PRINCIPLES
Process
Absorption
Adsorption
Membrane separation
Principle
Solubility
Adsorption potentials
Pressure and concentration
Separating
Medium
Liquid
Solid
Membranes
Example
Removal of CO2 and
natural gas
"Drying" of gases
Various applications

H2S from


                    gradients

Condensation        Thermal energy

Chemical Conversion  Chemical bonding
                Various applications

Reactive chemical Various applications
As most processes are proprietary, little technical information is available. The Selexol™ Process and PSA
are two technologies with merit for the  landfill gas industry.  Both have been applied to projects with
relatively large gas flows of 85,000 m3 (3x106 scf) per day or greater.  For smaller projects, membrane
separation appears to be more suited. Membrane separation may be combined with absorption or other
mechanisms. In selection of the optimum process for producing vehicle-quality fuel, the quality constraints
on the vehicle fuel are most important (EMCON et al., 1981).
                                               42

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 5.1  COMPRESSED LANDFILL METHANE AS VEHICULAR FUEL

 Vehicle fueling with compressed gas is of high interest for environmental and other reasons.  Technology
 for such fueling is well established.  In Europe, millions of vehicles, including many passenger cars run on
 liquified gas, containing a mixture of methane and higher carbon organic gases. Using landfill gas would
 involve purification and compression for reduced volume storage on board of vehicles. The vehicles would
 have to be equipped with conversion kits, which include valves, regulators,  and safety devices to manage
 the high pressures involved.

 At the  Puente Hills landfill of the Los Angeles County Sanitation  District, a membrane separation system
 and  a  landfill gas fueling facility have been installed.  A demonstration project is underway to verify the
 operational performance of  different vehicles running on landfill gas purified to approximately 97  percent
 methane.  (Details on the Puente Hills vehicular fuel program can be found in Appendix J.) The more .CO2
 that  can be left in the gas, the easier and more economical processing will be.  A vehicle gas engine laid
 out for natural gas will perform best if the  gas has a higher heating value (HHV) of at least 35.4 MJoule/m3
 (950 Btu/ft3).  Natural gas has a HHV of 35.4 to 39.1 MJoule/m3 (950 to 1,050 Btu/ft3). If it is assumed that
 purified landfill gas has some N2 (which is inert and, therefore, very hard to remove), it becomes necessary
 to remove a very large portion of the CO2 to reach a HHV of 950 Btu/ft3 with landfill gas-based methane.

 The  use of methane as a vehicle fuel usually involves the conversion of a gasoline engine to operate on
 both methane and gasoline. The conversion process is relatively simple because no internal modifications
 of the engine are required.  Conversion  equipment generally includes a variable gas-air mixer, which is
 incorporated into the carburetor,  and a series of regulators and valves which deliver  the gas from the
 storage tanks. One major drawback of methane fueled vehicles is their short driving range, resulting from
 the vehicles limited storage  capacity.

 5.2  LANDFILL METHANE CONVERSION TO METHANOL

 At the  BKK landfill in West Covina, California, a plant is being  built that  is intended to convert landfill
 methane into methanol.  The project is a joint venture between TerraMeth Industries (TMI), BKK, and the
 South Coast Air Quality Management District (SCAQMD) with TMI being the lead partner. TMI is based
 in Walnut Creek, California  and has developed a technology to convert (waste) methane into methanol.
The  project is scheduled for start-up by October 1994.

As a result of Federal and State regulations, methanol is being looked at as (a supplement to) vehicular
fuel,  which  is cleaner than gasoline.  The SCAQMD owns 70 methanol-fueled cars.  Also, the methanol
could be used to supplement fuel  for garbage trucks.  In addition, the methanol may be sold as chemical
feedstock. Apart from the environmental benefits, one important advantage  of methanol  production is that
the methanol can be stored  easily.

The  methanol plant at the BKK landfill is  laid out for approximately 3.6 mmscfd of landfill gas, containing
52 percent methane and would produce approximately 16,700  gallons per day of grade A methanol.
Process details are proprietary, but the outlines of the methane conversion may be described as follows.
In the gas cleanup phase, water and sulfur are adsorbed and a scrubber and carbon bed further remove
impurities. CO2 is extracted after which the methane  is chemically  changed into methanol by catalytic
conversion in various process steps.  The methanol is purified by distillation and may be stored on site.
                                              43

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 5.3 LANDFILL METHANE IN FUEL CELLS

 Fuel cells may be compared to large electrical batteries (with ancillary equipment, such as catalysts) and
 provide a means to convert the chemical bonding energy of a chemical substance directly into electricity.
 A difference between a battery and a fuel cell is that in a battery all reactants are present within the battery
 and are slowly being used up with battery utilization (though they can be regenerated in rechargeable
 batteries), while in a fuel cell fresh reactants (fuel) are continuously being provided.  There are four basic
 types of fuel cells, each of which has a unique combination of technical performance characteristics. One
 type, the phosphoric acid fuel cell, is ahead of the others in its developmental stage and is commercially
 available (Figure 14).  It is suitable for utility distributed power use, commercial light industrial use, and
 heavy vehicular use.  Much research has been done on the generation of electricity with phosphoric acid
 fuel cells using natural gas.  Inside the phosphoric acid fuel cell, hydrogen obtained from a fuel processor
 is converted to water,  producing electricity (Figure  15).  The other types  of fuel cells (e.g., molten
 carbonate) are in varying stages of development and demonstration and  may be ready for the market in
 a decade or two (Arthur D. Little, Inc., 1993).

 The EPA initiated a research and development project in 1991  to evaluate the use of commercially
 available fuel cells for landfill gas applications, because of the potential environmental and energy efficiency
 characteristics, which include:

     •    Higher energy efficiency than conventional technologies in use (fuel cells can achieve 40
         percent energy efficiency),
     •    Minimal by-product emissions which can be a critical consideration in ozone, NOX and CO
         nonattainment areas,
     •    Ability to operate in remote areas,
     •    Minimal labor and maintenance,
     •    Minimal noise impact (i.e., there are no moving parts), and
     •    Availability to smaller as well as larger landfills (available in 200 kW modules).

The major technical consideration associated with the application of fuel cells to landfill gas projects is the
gas clean-up system.  Testing of the EPA clean-up  system has just been completed  resulting in over
200 hours of successful operation. The gas cleanup  system is designed to clean the gas to 3 ppmv of
chlorides and 3 ppmv of sulfur.  Next, a 1-year demonstration is planned to study the performance of fuel
cells for landfill gas energy conversion applications (Sandelli, 1992).

The principal  non-technical consideration associated with fuel cells has been the capital  cost.  The
manufacturer of the phosphoric acid fuel cell, International Fuel Cells subsidiary ONSI, has guaranteed the
capital cost for the new advanced power module to be $3,000 per kilowatt (kW) for delivery in 1995, and
plans to have the cost at $1,500 per kW by 1998.  Costs for 1C engine plants currently are between $950
to $1,250 per kW.
                                               44

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NATURAL
 GAS  ; W-:•. :| PROCESSOR
                            Figure 14.  Fuel cell.
                 Anode
             H2,C02|
             CO     '
Hj —«- 2H+ + 2e~
                                     400° F
                                     Acid
                                  electrolyte
                                    H3P04
                                    (Matrix)
                                                J_£
/2
                                                       Cathode
          Air
                                                             2e
              • Operates on hydrogen obtained from fuel processor
              • Operates on untreated air
              • Water formed as vapor
         Figure 15.  Chemical reactions in a phosphoric acid fuel cell.
                                     45

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                                          6.  INDEX
Blower	  14
Boiler  	  27
Buildups 	  10
Carbon  steel	  14
Carburetion	  18
Climate Change Action Plan	  41
Coalescing filter	  17
Compressor  	  14
Condensate	  10, 15
Condensate traps  	  15
Control  of greenhouse gas emissions
     (Global warming)	:	  41
Control  Technology Center (CTC)
     (EPA's information transfer center)  	  38
Corrosion	  15
Crankcase ventilation	  17
Deposits . .	  10, 22
Desiccant 	  16
Detonation-sensitive control  	  19
Dimethyl siloxane	  10
Dioxins	  11
Dowtherm™  	  28
Environmental externalities	  31
Exhaust gas  	  15
Federal  Energy Regulatory Commission  	  34
Filtration	  10, 17
Flame front propagation	  27
Flameouts	  .	  28
Flow measurements . . .'	  12
Fuel-air  ratio  	  18
Furans  	  11
Gas composition measurements	  12
Gas generation rate	  11
Gemini™	  29
Halocarbons  	9
Ignition timing adjustment	  19
Interconnect	  34
Intervals between oil changes	  23
Knockout tank	  16
Kryosol™ 	  29
Landfill Methane Outreach Program  	  41
Microbial decomposition	  1
Misfiring 	  21
Natural gas supplementation  	  20
Nitrogen oxides	  17
Nonmethane organic compounds
     (NMOCs)	9
Oil ash  	  22
Oil change intervals	  22
Oil Selection	  17
                                             46

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Particulates	  10
PCB	  11
Pipeline gas  	 2, 9
Pilot tube 	  12
Pressure-swing absorption	  29
Production Tax Credit  	  37
Public Utility Commission	  31
RD&D Program
     (Department of Energy's incentive program)	  41
Refrigeration and Drying	  16
Selexol™ 	  16,29
Siloxane deposits	 .  10
Slugs 	t	  10
Temperature topping  	'	  24
Total base number (TBN)	  17
Turbocharging	  19
                                             47

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                                       7.  REFERENCES
Augenstein, D. and J. Pacey. 1992.  Landfill Gas Energy Utilization: Technology Options and Case Studies.
U.S. EPA/AEERL, Research Triangle Park, NC. EPA-600/R-92-116 (NTIS PB92-203116).

Augenstein, D. and J. Pacey. 1991.  Landfill Methane Models.  Proceedings from the Technical Sessions of
SWANA's 29th Annual Int. Solid Waste Exposition, Cincinnati, OH. SWANA, Silver Spring, MD, 1991

Arthur D. Little,  Inc.  1993. The Role of Fuel Cell Technology in the International Power Equipment Market-
Policy/Strategy Issues.  Prepared for The World Fuel Cell Council, Frankfurt, Germany.  Arthur D. Little, Inc.
Cambridge, MA.

California  Integrated Waste Management Board.  1989. Procedural Guidance Manual for Sanitary Landfills.
Volume II.  Landfill Gas Monitoring and Control Systems.  California Integrated Waste Management Board.
Sacramento, CA.

Carolan, M.  1994. "Should Landfill Owners Pay Developers of Landfill Gas to Energy Projects?" Proceedings
from the 17th Annual International  Landfill Gas  Symposium. SWANA, Long Beach, CA.

Chadwick, C. 1990. Reduced Power Requirements of Low Pressure Gas Reciprocating Engines. Proceedings
from the GRCDA 13th Annual Int. Landfill Gas Symposium. SWANA, Silver Spring, MD.

Doom, M.R.J.,  L.A. Stefanski, and M.A. Barlaz, 1994.  Estimate of Methane Emissions from  U.S. Landfills.
U.S. EPA/AEERL, Research Triangle Park, NC. EPA-600/R-94-166 (NTIS PB94-213519).

EMCON Associates.  1982.  Methane Generation  and Recovery from Landfills.  Second Edition, Ann Arbor
Science.  Ann Arbor, Ml.

EMCON Associates, CAL RECOVERY SYSTEMS, INC.,  and GAS RECOVERY SYSTEMS, INC.  1981.
Feasibility Study:   Utilization of  Landfill Gas for  a Vehicle Fuel System.   Department  of  Energy.
Document No. DE-83010622.  January 1981.

Eppich, J., J. Cosulich, and H.H. Wong. 1990.  Puente Hills Energy Recovery from (PERG) Facility. Presented
at the First United States Conference on Municipal Solid Wastes Solution for the 90's.  Sponsored by the U.S.
EPA.  Washington DC.  June 13-16,  1990.

Eppich, J.D. and J.P. Cosulich. 1993.  Collecting and Using Landfill Gas as a Boiler Fuel. Solid Waste & Power.
July/August 1993. pp. 27-34.

Gas Engineer's Handbook. 1965.  Industrial Press,  New York.

Gullett, B.K., P.M. Lemieux, and J.E. Dunn. 1994. Role of Combustion and Sorbent Parameters in Prevention
of Polychlorinated Dibenzo-p-dioxin and Polychlorinated Dibenzofuran Formation during  Waste Combustion.
Environmental Science & Technology, Vol. 28, 1994.

Held, W.M. and P.S. Woodfill.  1989.  Piping Materials Used in Landfill Gas Collection Systems—A Review and
History.  Proceedings from the GRCDA 13th Annual International Landfill Gas Symposium. SWANA,  Silver
Spring, MD.

Hernandez, R.J. 1989.  Selexol Solvent Process: Ten Years of Experience in L.F.G. Treatment. IGT (Institute
of Gas Technology) Symposium on Fuels from  Biomass. IGT, Chicago, IL. 1989.

Kleinfelder, Inc.   1991.  Source Test Report Boiler and Flare Systems.  Prepared for Laidlaw Gas Recovery
Systems, Coyote Canyon Landfill, Irvine, CA.  Prepared by Kleinfelder, Inc. Diamond Bar, CA.
                                              48

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                                  REFERENCES (continued)

 Koch, W.R.  1986.  A New Process for the Production of High-Btu Gas.  Proceedings from the GRCDA 9th
 International  Landfill Gas Symposium. SWANA, Silver Spring, MD.

 Markbreiter,  J.  1983.  Kryos Process for Pipeline Methane  Purification.   GRCDA Annual   Landfill Gas
 Symposium.  SWANA, Silver Spring, MD.

 Markham,  M.  1992.   Landfill Gas Recovery to Electric Energy Equipment:  Waste  Management's 1991
 Performance Record.  SWANA's 15th Annual Landfill Gas Symposium. SWANA, Silver Spring, MD.

 Maxwell, G.  1989. Reduced NOX Emissions from Waste Management's Landfill Gas Solar Centaur Turbines.
 Proceedings  Air and Waste Management Association's 82nd Annual Meeting, Anaheim, CA.  June 1989.

 Millican, R.W. South Coast Air Quality Management District 1994. Test Summaries of Source Tests Conducted
 on Landfill Gas Fired  Equipment in the South Coast Area.  Correspondence between R.W. Millican and S.
 Thprneloe, US/EPA, AEERL, Research Triangle Park, NC.

 Moilanen, G.L. 1986. Engineering Report Puente Hills Landfill Flare #11: Dioxin, Furan, and PCB Test Results.
 Report No. Sierra 86021-100. Prepared for County Sanitation Districts of Los Angeles County, Whittier, Ca.
 Prepared by Sierra Environmental Engineering.

 Moss, H.D.T.  1991.  The  Use of Landfill Gas in Reciprocating  Engines.  Proceedings of Third International
 Landfill Symposium, Sardinia, Italy. October 14-18, 1991.

 Pape & Steiner Environmental Services.  1990.  Compliance Testing for Spadra Landfill Gas-to-Energy Plant.
 Prepared for  Ebasco Contractors. Report PS-90-2315/Project 6908-90.

 Pelt, W.R., R.L. Bass, I.R.  Kuo, and A.L  Blackard.  1990. Landfill Air Emissions Estimation Model — User
 Friendly Computer Software and User's Manual. EPA-600/8-90-085a,b (NTIS PB91 -167718 and PB91 -507541).

 Sandelli, G.J.  1992. Demonstration of Fuel Cells to Recover Energy from  Landfill Gas.. Phase I. Final Report:
 Conceptual Study.  EPA-600-R-92-007 (NTIS PB92-137520).

 Schlotthauer, M.  1991. Gas Conditioning Key to Success in Turbine Combustion Systems Using  Landfill Gas
 Fuels. Proceedings of the GRCDA/SWANA 14th International Annual Landfill Gas Symposium. SWANA. Silver
 Spring, MD.

 Shah,  V. 1990. Landfill Gas to High Btu Sales Gas Using Selexol™ Solvent Process. Proceedings from the
 GRCDA 13th Annual International Landfill Gas Symposium, SWANA, Silver Spring, MD.

 Thomeloe, S. A. and J. G. Pacey.  1994.  Landfill Gas Utilization—Database of North  American Projects.
 Proceedings from the 17th Annual International Landfill Gas Symposium.  SWANA, Long Beach, CA.

 U.K. Department of Energy.  1992. Power Generation from Landfill Gas.  United Kingdom Department of Energy,
 Harwell Laboratories, Oxfordshire.

 U.S. Environmental Protection Agency.  1991.  Compilation of Air Pollutant Emission Factors. Fourth Edition
 (AP-42). Research Triangle Park, NC. September 1991.

 Vogt, W.G. and J.L. Briggs.  1989. Disposal Options for Landfill Gas Condensate. Proceedings from the 12th
 Annual International Landfill Gas  Symposium. SWANA, Silver Spring, MD.

 Watson, J.R.   1990. Pretreatment of Landfill Gas.  Proceedings from the GRCDA 13th Annual International
• Landfill Gas Symposium. SWANA, Silver Spring, MD.
                                               49

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  APPENDIX A:  ABSTRACT AND TABLE OF CONTENTS OF LANDFILL GAS ENERGY
             UTILIZATION:  TECHNOLOGY OPTIONS AND CASE STUDIES
                            Augenstein, D. and J. Pacey.  1992.

                Developed for the Air & Energy Engineering Research Laboratory,
                       Office of Research and Development, U.S. EPA,
                           Research Triangle Park, North Carolina

                           Publication number: EPA-600/R-92-116
                                  (NTISPB92-203116)
For all international requests, contact:  INFOTERRA/USA at (202) 260-5917 by phone or
(202) 260-3923 by fax.  All other requestors should either contact the National Technical Information
System at (703) 487-4650 (phone) or (703) 321-8547 (fax) or the EPA Control Technology Center
Hotline at (919) 541-0800 (phone) or (919) 541-2157 (fax).
                                         A-1

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APPENDIX A-  ABSTRACT AND TABLE OF CONTENTS OF LANDFILL GAS ENERGY UTILIZATION: TECHNOLOGY
                              OPTIONS AND CASE STUDIES (continued)
                                               ABSTRACT
      Combustible, methane-containing gas from refuse decomposing in landfills, or "landfill gas," can be fuel
      for a variety of energy applications.  This report presents case studies of projects in the United States
      where it has been used for energy.  It also presents overviews of some of the important issues regarding
      landfill gas energy uses, including appropriate equipment, costs and benefits, environmental concerns,
      and obstacles and problems of such energy uses.
      With allowance for its properties, landfill gas can be used  in  much commercially available equipment that
      normally uses more conventional fuels such as pipeline natural gas. This includes equipment for space
      heating, boilers, process heat provision and electric power generation.  Landfill gas energy uses, already
      significant, could increase based on estimates of  the landfill gas that could be recovered, and providing
      that other factors, particularly economic ones, are favorable.  Such energy uses have environmental and
      conservation benefits.

      Factors to be  considered  in  using  landfill gas for energy include contaminants, which  can  corrode
      equipment and cause other problems, and its lower energy content,  resulting in moderate equipment
      derating.  Other  issues that are of normal concern for landfill gas, such as forecasting its recoverable
      quantity over time, and its efficient collection, also bear importantly on its use for energy.

      The case studies review landfill gas energy use at six sites  in the U.S.  The energy applications include
      electric power generation by reciprocating internal combustion engines, electric power generation by gas
      turbine, space heating,  and steam generation in  a large  industrial  boiler.  Case  study applications are
      considered to represent attractive candidate uses for implementation at additional U.S. landfill sites.  The
      case studies present the relevant site features, background regarding the development of the case study
      project, equipment used, operating experience, economics, and future plans at the sites. Obstacles and
      problems at the sites are discussed.  The case study sites exhibit wide variation in features  such as cost
      and degree of operating difficulty experienced. Such variation is typical of landfill gas energy projects,
      which tend to be site specific. Literature containing information on other relevant case studies, in  both the
      U.S. and other countries, is  also referenced.
      Important conclusions include

           • Landfill gas can be a satisfactory fuel for a wide variety of applications.  Such uses
             have  environmental and conservation benefits.   Many types of energy equipment
             designed for  "conventional" fuels can operate on landfill gas with outputs reduced by
             about 5 to 20 percent.

           • Allowances must be made for the unique properties of landfill gas and particularly its
             contaminants.  Pitfalls possible in landfill gas energy applications include equipment
             damage due  to such gas contaminants, and shortages resulting from over-estimation
             of its availability.

           • The degree of gas cleanup and the methods used vary widely; the necessary amount
             of cleanup and the optimum tradeoffs between cleanup stringency and the frequency
             of maintenance steps (such as oil changes) are not well established.

           • Cost-to-benefit ratios can vary widely; at some sites they are excellent, while at others
             they are a major limiting factor.  Economics are probably  the most important factor
             limiting  landfill gas energy uses.  Economics currently tend to preclude smaller scale
             uses, uses where electric power sale prices are low, and uses at remote sites lacking
             convenient energy  applications or outlets.  Much  of the landfill gas generated today is
             not used for energy because of economics.
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APPENDIX A: ABSTRACT AND TABLE OF CONTENTS OF LANDFILL GAS ENERGY UTILIZATION: TECHNOLOGY
                             OPTIONS AND CASE STUDIES (continued)
             •  Energy equipment emission limits in some U.S. locations may also restrict landfill gas
               energy use, despite an  environmental balance sheet that generally appears to be
               positive.
       This report identifies technical areas where energy uses are likely to benefit from improvements. Some of
       these are alluded to above.  This report also comments briefly on incentive, barrier elimination, and other
       approaches that may facilitate landfill gas use. Finally, for present and future landfill gas users, further
       detailed  documentation of the problems experienced, and the results of approaches to  them (both
       successful and unsuccessful), would be very helpful.

       This report was  submitted  by  EMCON Associates, in fulfillment of subcontract  275-026-31-05 from
       Radian Corporation, as well as subcontract 93.3 from E.H. Pechan and Associates, and performed under
       the overall sponsorship and direction of the U.S. Environmental Protection Agency, Global Emissions and
       Control Division.  This report covers a period from February 1991 to January 1992,  and work was
       completed as of February 1992.
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APPENDIX A:  ABSTRACT AND TABLE OF CONTENTS OF LANDFILL GAS ENERGY UTILIZATION: TECHNOLOGY
                            OPTIONS AND CASE STUDIES (continued)
                                        CONTENTS
         FOREWORD	II
         ABSTRACT	JII
         ACKNOWLEDGEMENTS	. jell
         CONVERSIONS	Xlv
         1: INTRODUCTION AND BACKGROUND	1
            1.1 Landfills and Landfill Gas: General. .  .	;	.1
            1.2 Composition of Landfill Gas	2
            1.3 Estimating the Gas Recoverable for Energy Uses	3
            1.4 Gas Extraction Systems	•:	3
            1.5 Environmental and Conservation Aspects of Landfill
                Gas Energy Use	4
            1.6 Regulatory Issues	,	4
         2. USE OF LANDFILL GAS AS A FUEL—TECHNICAL ISSUES	5
            2.1 Gas Composition Analysis	5
            2.2 Corrosion Effects .  .•	5
            2.3 Particulates and Their Effects	6
            2.4 Gas Cleanup	6
            2.5 Dilution and Other Performance Reduction Effects
                With Landfill Gas	7
            2.6 Load Factor ("Use it or lose it")	8
         3. ENERGY APPLICATIONS  AND EQUIPMENT	9
            3.1 Current Applications and Equipment.  . .	9
                3.1.1   Space heating (and cooling)	 .  .9
                3.1.2  Process heating and cofiring applications	10
                3.1.3  Boiler fuel	10
                3.1.4  Reciprocating internal combustion engines with
                       electric power generation	10
               . 3.1.5  Gas turbines	11

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APPENDIX A: ABSTRACT AND TABLE OF CONTENTS OF LANDFILL GAS ENERGY UTILIZATION: TECHNOLOGY
                             OPTIONS AND CASE STUDIES (continued)
                                             CONTENTS
                    3.1.6  Steam-electric	12
                    3.1.7  Purification to pipeline quality methane	12

               3.2  Potential Future Technologies	12
                    3.2.1  Fuel cells	12
                    3.2.2  Compressed gas vehicle fuels	13
                    3.2.3  Synthetic liquid fuels and chemicals .	13

            4. COST AND REVENUE COMPONENTS	14

               4.1  Components of Cost and Income	.14

               4.2  Cost Data: Examples	15
                    4.2.1  Hypothetical generating facility example:
                          Cost component ranges	T5
                    4.2.2  Reported electric facility capital costs:
                          GAA Yearbook	15

               4.3  Other Economic Issues	17
                    4.3.1  Revenue requirement for electric power
                          generation	17
                    4.3.2  Initial cost estimating	17
                    4.3.3  Economic impediments to energy applications	17

            5. Case Studies	19

               5.1  Electric Power Generation and Space Heating Using
                    Landfill Gas: Prince George's County, Maryland	19
                    5.1.1  Introduction and general overview . .  .	19
                    5.1.2  History of project implementation	19
                    5.1.3  Landfill and landfill gas system.  .	23
                    5.1.4  Energy facility and equipment	23
                    5.1.5  Environmental/emissions	27
                    5.1.6  Operation and maintenance	27
                    5.1.7  Economics	28
                    5.1.8  Discussion	29
                   5.1.9  Calculation bases—energy use and financing	  . 30

               5.2  Electricity Generation Using Cooper-Superior Engine
                   at the Otay Landfill	31
                   5.2.1   Introduction and general overview	31
                   5.2.2  Otay landfill and landfill gas system	31
                ,   5.2.3  Gas preprocessing and energy plant equipment	33
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APPENDIX A: ABSTRACT AND TABLE OF CONTENTS OF LANDFILL GAS ENERGY UTILIZATION: TECHNOLOGY
                             OPTIONS AND CASE STUDIES (continued)
                                           CONTENTS
                 5.2.4  Environmental/emissions	36
                 5.2.5  Operation and maintenance	36
                 5.2.6  Revenue and cost items	37
                 5.2.7  Discussion	37

             5.3 Electric Power Generation Using Waukesha Engines at the Marina Landfill. .  38
                 5.3.1  Introduction and general overview	38
                 5.3.2  History of project	40
                 5.3.3  Landfill and landfill gas extraction system	41
                 5.3.4  Gas preprocessing and energy plant equipment	43
                 5.3.5  Environmental/emissions	.46
                 5.3.6  Economics	47
                 5.3.7  Operation and maintenance	48
                 5.3.8  Discussion	48

             5.4 Electric Power Generation Using Gas Turbines at Sycamore Canyon Landfill.  49
                 5.4.1  Introduction and general overview	49
                 5.4.2  History of system implementation	51
                 5.4.3  Landfill and landfill gas system	51
                 5.4.4  Plant equipment: Gas preprocessing and energy	52
                 5.4.5  Environmental	55
                 5.4.6  Economics	55
                 5.4.7  Operation and maintenance	56
                 5.4.8  Discussion	:	56

             5.5 Landfill Gas Fueled Boiler:  Raleigh, North Carolina	57
                 5.5.1  Introduction and general overview	57
                 5.5.2  History of project implementation .	57
                 5.5.3  Landfill and landfill gas system	59
                 5.5.4  Energy equipment:  Blower station, pipeline
                        and boiler	60
                 5.5.5  Performance	61
                 5.5.6  Emissions	62
                 5.5.7  Operation and maintenance	62
                 5.5.8  Economics	63
                 5.5.9  Discussion	63

             5.6 Electrical Power Generation Using Caterpillar Engines at
                 the Central Landfill, Yolo County. California	63
                 5.6.1   Introduction and general overview	63
                 5.6.2  History of project implementation	65
                 5.6.3  Landfill and landfill gas extraction system	66
                                            A-6
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APPENDIX A: ABSTRACT AND TABLE OF CONTENTS OF LANDFILL GAS ENERGY UTILIZATION:  TECHNOLOGY
                            OPTIONS AND CASE STUDIES (continued)
                                            CONTENTS
                    5.6.4  Gas preprocessing and energy conversion equipment	68
                    5.6.5  Performance and availability issues	69
                    5.6.6  Environmental/emissions	.71
                    5.6.7  Operation and maintenance	71
                    5.6.8  Economics	71
                    5.6.9  Discussion	'.	71

                5.7  Other Relevant Case Studies and Information'.	72

                5.8  Other Supplemental Literature	75

             6.  REVIEW, COMMENTARY, AND CONCLUSIONS	76

                6.1  Conclusions	76

                6.2  Further Needs	77

                6.3  Facilitating Landfill Gas Energy Use	77

             REFERENCES	.79


             Appendices
                  Appendix A   Estimating Gas Availability for Energy Uses	A-1
                  Appendix B   Gas Extraction Systems	B-1
                  Appendix C   Comments on Environmental and Conservation
                               Aspects of Landfill Gas Energy Use	C-1
                  Appendix D   Regulatory Issues with Landfill Gas Use	D-1
                  Appendix E   Gas Composition Analysis	E-1
                  Appendix F   Cost, Revenue, and Other Economic Components	F-1
                  Appendix G   Site Plan, Otay Electrical Generation Facility	G-1
                  Appendix H   Equipment Specifications, Otay Generation Facility	H-1
                  Appendix I    PG&E Power Purchase Rates, Marina	1-1
                  Appendix J    Cleaver-Brooks Boiler Specifications	J-1
                  Appendix K   United Kingdom Case Studies	K-1
                  Appendix L    The Economics of Landfill Gas Projects in the
                               United States	L-1
                  Appendix M   Waste Management of North America, Inc.
                               Landfill Gas Recovery Projects	M-1
                  Appendix N   I-95 Landfill Gas to Electricity Project Utilizing
                               Caterpillar 3516 Engines	N-1
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                            APPENDIX B:  FURTHER READING
A large body of literature discusses the generation, recovery and energy uses of landfill gas, as well as
other aspects of its technology.  References are listed by general category of information that may be of
interest.

Information on Environmental Protection Agency(EPA) publications:

     EPA documents may be ordered prepaid from National Technical Information System at (703) 487-
     4650 (phone) or (703) 321-8547 (fax). Specific requests for information may be made throught the
     EPA Control Technology Center Hotline at (919) 541-0800 (phone) or (919) 541-2157.

     For international requests contact: INFOTERRA/USA at (202) 260-5917 (phone) or (202) 260-
     3923 (fax).

EPA Landfill Methane Outreach Program:

     EPA Landfill Methane Outreach Program
     U.S. EPA  6202J, 401 M Street, SW, Washington! DC 20460.
     Hotline: 202 233-9042, Fax: 202 233-9569

Solid Waste Association of North America (SWANA)

     In 1994, SWANA's Annual Landfill Gas Symposium was organized for the 17th time. Proceedings
     of these symposia may be recommended for further reading.  SWANA can be reached at: (301)
     585-2898.
1.  GENERAL INFORMATION ON LANDFILL GAS AND ITS CONTROL/UTILIZATION
    OPTIONS.

Augenstein, D. and J. Pacey. Landfill Gas Energy Utilization: Technology Options and Case Studies.
U.S. EPA/AEERL, Research Triangle Park, NC.  EPA-600/R-92-116 (NTIS PB-92-203116).  1992.

EMCON Associates.  Methane Generation and Recovery From Landfills.  Second Edition, Ann Arbor
Science.  Ann Arbor,  Ml. 1982.

Gendebien, A., M. Pauwels, M. Constant, M.J. Ledrut-Damanet, E.J. Nyns, H.C. Willumsen, J. Butson, R.
Fabry, and G.L. Ferrero. Landfill Gas From Environment to Energy. Directorate-General for Energy,
Commission of the European Communities,  Brussels, EUR 14017/1 EN.  1992.

Gronow, J.R.  The Department of the Environment Landfill Gas Programme.  U.K. Department of Energy
and Department  of the Environment. Landfill Gas: Energy and Environment '90. Bournemouth, United
Kingdom.  1990.

Lawson, P.S.  The Department of Energy Landfill Gas R&D Programme.  U.K. Department of Energy  and
Department of the Environment.  Landfill Gas: Energy and Environment '90.  Bournemouth, United
Kingdom.  1990.

Public Technology, Inc.  Landfill Methane Gas Recovery and Utilization: A Handbook for Local
Governments. Public Technology, Inc., Washington, DC.  1994.

U.K. Department of Energy. Harwell Laboratories, Oxfordshire.  Landfill Gas  and Anaerobic Digestion of
Solid Waste. London, United Kingdom.  London, United Kingdom.  1988.

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 Willumsen, H.C.  The Problematics of Landfill Gas Technology.  Proceedings of Sardinia '91 - Third
 International Landfill Symposium.  Sardinia, Italy. 1991.

 2.   SITE-SPECIFIC MODELING AND FIELD TESTING.

 Augenstein, D.  Landfill Methane Enhancement.  Proceedings of the 16th Annual Landfill Gas
 Symposium.  SWANA, Louisville, KY. March  1993.

 Augenstein, D. and J. Pacey. Landfill Methane Models. Proceedings from the Technical Sessions of
 SWANA's 29th Annual International Solid Waste Exposition.  Cincinnati '91. SWANA, Silver Spring, MD.
 September 1991.

 Augenstein, D. and J. Pacey (USA). Modeling Landfill Methane Generation.  Proceedings of Sardinia '91
 - Third International Landfill Symposium.  Sardinia, Italy. 1991.

 Biezer, M.B., T.D. Wright, and D.E. Weaver. 1985. A Field Test Program for Determining Landfill Gas
 Recovery Feasibility.  Proceedings of the 8th International Landfill Gas Symposium. GRCDA/SWANA,
 Silver Spring, MD.  1985.

 Campbell, D.J.V. and S.C. Croft. Landfill Gas Enhancement:  Brogborough Test Cell Programme.  U.K.
 Department of Energy and Department of the  Environment.  Landfill Gas: Energy and Environment '90.
 London, United Kingdom.  1990.

 Ehrig, H.J. (D).  Prediction of Gas Production from Laboratory Scale Tests. Proceedings of Sardinia '91 -
Third International Landfill Symposium. Sardinia, Italy. 1991.

 EMCON Associates.  Methane Generation and Recovery From Landfills.  Second Edition. Ann Arbor
Science.  Ann Arbor, Ml. 1982.

 Manley, B.J.W.,  R.G. Gregory, and N. Gardener.  An Assessment of the U.K. Landfill Gas Resource.
 U.K. Department of Energy and  Department of the Environment.  Landfill Gas:  Energy and Environment
'90.  London, United Kingdom.  1990.

 Manley, B.F.W., R.G. Gregory, and N. Gardner.  Assessment of Landfill Gas Production for the U.K.
 Proceedings of Sardinia '91 - Third International Landfill Symposium. Sardinia, Italy.  1991.

 Nilsson, P. and S. Edner (SW).  Test Cell Study of Methane Production. Proceedings of Sardinia '91 -
Third International Landfill Symposium. Sardinia, Italy. 1991.

Pacey, J. and D. Augenstein.  Modelling Landfill Methane Generation.  U.K. Department of Energy and
Department of the Environment. Landfill Gas: Energy and Environment '90.  London, United Kingdom.
 1990.

Pelt, W.R., R.L. Bass, I.R. Kuo, and A.L. Blackard.  Landfill Air Emissions Estimation Model — User
Friendly Computer Software and User's Manual.  EPA-600/8-90-085a,b (NTIS PB91-167718 and PB91-
507541).  December 1990.

U.S. EPA. Air Emissions from Municipal Solid Waste Landfills - Background Information for Proposed
Standards and Guidelines. Office of Air Quality Planning and Standards, U.S. Environmental Protection
Agency, Research Triangle Park, NC. March 1991. EPA-450/3-90-011a (NTIS PB91-197061).

Van  Heuit, R.  and J. Pacey.  The Gas Field Test: Design. Installation  and Maintenance.  Proceedings of
the Annual International Solid Waste Symposium. GRCDA/SWANA, Silver Spring, MD. 1987.

Van  Heuit, R.  Estimating Landfill Gas Yields.  Proceedings of the GRCDA's 9th Annual International
Landfill Gas Symposium. GRCDA/SWANA, Silver Spring, MD. 1986.

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Westlake, K.  Landfill Microbiology.  U.K. Department of Energy and Department of the Environment.
Landfill Gas:  Energy and Environment'90. Bournemouth, United Kingdom. 1990.

Zison, S.  Landfill Gas Production Curves:  Myth vs. Reality.  Presentation at SWANA Annual Meeting.
Vancouver, B.C.; SWANA, Silver Spring, MD. 1990.

3.   INFORMATION ON EXTRACTION/RECOVERY SYSTEMS.

Echols, R.L. Landfill Gas Recovery Systems.  Presented at American Society of Civil Engineers,
National Meeting, NY. September 1992.

EMCON Associates. Methane Generation  and Recovery From Landfills. Second Edition. Ann Arbor
Science.  Ann Arbor, Ml. 1982.

Leach, A.  Landfill Gas Abstraction.  U.K. Department of Energy and Department of the Environment.
Landfill Gas:  Energy and Environment'90. Bournemouth, United Kingdom. 1990.

Nardelli, R. The Wide World of Landfill Gas Flares.  Proceedings of the 16th Annual Landfill Gas
Symposium. SWANA, Louisville, KY. March  1993.

Poland, R.J. Collection Systems for Landfill Gas Recovery and Control — One Size May Not Fit AH.
Submitted Papers and Abstracts for the 10th International Landfill Gas Symposium.  GRCDA/SWANA,
Silver Spring, MD. 1987.

U.K. Department of Trade and Industry and Department of Environment. Guidelines for the Safe
Control and Utilisation of Landfill Gas.  ETSU B 1296-P1.  DOE Report CWM067A/92. Produced by
Environmental Resources Limited, Northampton, U.K. 1993.

4.   ENERGY USES.

Anderson, C.E. Owner/Operator Experiences in Developing Electric Utility Contracts and Interconnects.
Proceedings of the 13th  Annual International Landfill Gas Symposium. GRCDA, Lincolnshire, IL.
March 1990.

Augenstein, D. and J. Pacey.  Landfill Gas  Energy Utilization:  Technology Options and Case Studies.
U.S. EPA./AEERL, Research Triangle Park, NC.  EPA-600/R-92-116 (NTIS PB92-203116). 1992.

Carolan, M.J. Should Landfill Owners Pay  Developers of Landfill Gas to Energy Projects? Proceedings
of the 32nd Annual International Solid Waste Exposition.  SWANA, San Antonio, TX.  August 1994.

Carrico, P.J. Landfill Gas Management Systems:  Landfill End Use Impacts. Proceedings of the 17th
Annual Landfill Gas Symposium. SWANA,  Long Beach, CA. March 1994.

Castillo, F.  Economically Feasible Methods of Landfill Gas Energy Recovery:  Brown Station Road
Landfill Recovery Project. Proceedings of the 15th Annual Landfill Gas Symposium.  SWANA,  Silver
Spring, MD.  March 1992.

Davies, G.  A Small-Scale Gas Utilisation Scheme. U.K. Department of Energy and Department of the
Environment.  Landfill Gas:  Energy and Environment'90.  London, United Kingdom.  1990.

Freemon, J.P. Landfill Gas Recovery Projects of the County Sanitation Districts of Los Angeles County.
Proceedings of the 12th Annual International Landfill Gas Symposium. GRCDA, Silver Spring,  MD.
1989.
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 Gendebien, A. M. Pauwels, M. Constant, H.C. Willumsen, J. Buston, R. Fabry, G.F. Ferrero, and
 E.J. Nyns.  Landfill Gas: From Environment to Energy.  State-of-the-Art in the European Community
 Context. Proceedings'of Sardinia'91 - Third Internationa! Landfill Symposium. Sardinia, Italy.  1991.

 Gordon, J.  Landfill Gas Recovery: Achieving the Proper Financing Structure. Proceedings of the 15th
 Annual  Landfill Gas Symposium. SWANA, Silver Spring, MD. March 1992.

 Greenberg, F.L.  Selling Electricity to Utilities. Proceedings of the 13th Annual International Landfill Gas
 Symposium.  GRCDA, Lincolnshire, IL.  March 1990.

 Haviland, T.   Designing a Compressor/Dehydration System  to Deliver Landfill Gas. Proceedings of the
 13th Annual  International Landfill Gas Symposium.  GRCDA, Lincolnshire, IL.  March 1990.

 Jacobs, Cindy.  EPA Landfill Methane Outreach Program.  Proceedings of the 17th Annual International
 Landfill  Gas Symposium. SWANA, Long Beach, CA.  March 1994.

 Jahsen, G.R. The Economics of Landfill Gas Projects in the United States.  Presentation in Melbourne,
 Australia.  February 27, 1992.

 Jansen, G.R. The Economics of Landfill Gas Projects. Proceedings of the 9th International Landfill
 Gas Symposium. GRCDA, Silver Spring, MD.  1986.

 Limbrick, A.J. A Commercial View of Electricity Generation  from Landfill  Gas.  U.K. Department of
 Energy and Department of the Environment.  Landfill Gas:  Energy and Environment '90.
 Bournemouth, United  Kingdom.  1990.

 Mandeville, R.T.  Landfill Gas: Energy and Environmental Issues in the USA.  U.K. Department of
 Energy and Department of the Environment.  Landfill Gas:  Energy and Environment '90.
 Bournemouth, United  Kingdom.  1990.

 Markham, M.A.  Landfill Gas Recovery Projects.  Proceedings of the 15th Annual Landfill Gas
 Symposium.   SWANA, Silver Spring, MD.  March 1992.

 Maunder, D.   Using Landfill Gas in the U.K.  Proceedings of the 15th Annual Landfill Gas Symposium.
 SWANA, Silver Spring, MD.  March 1992.

 Monteiro, J.H. Penigo (BR). Landfill Gas Recovery — An Important Energy Resource for Developing
 Countries. Proceedings of Sardinia '91 - Third International  Landfill Symposium.  Sardinia,  Italy. 1991.

 Nyns, E.J. Landfill Gas: From Environment to Energy in the European Community. Proceedings of
the 15th Annual Landfill Gas Symposium.  SWANA, Silver Spring, MD. March 1992.

 Pacey, J.G., M.R.J. Doom, and S.A. Thorneloe.  Landfill Gas Energy Utilization — Technical and Non-
Technical Considerations.  Proceedings of the 17th Annual International Landfill Gas Symposium.
 SWANA, Long Beach, CA.  March 1994.

 Parry, C.G. Gas Quality for Landfill Gas Engines.  U.K. Department of Energy. Power Generation from
 Landfill Gas.   London, United Kingdom.  November 1991.

 Pierce, J. Alternative  Contractual and Financial Arrangements for Implementation of Landfill Gas Power
Generation Projects.  Proceedings of the 15th Annual Landfill Gas Symposium. SWANA, Silver Spring,
 MD. March 1992.
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 Richards, K.M. and E.M. Aitchison. Landfill Gas: Energy and Environmental Themes.  U.K.
 Department of Energy and Department of the Environment. Landfill Gas: Energy and Environment '90.
 Bournemouth, United Kingdom. 1990.

 Richards, K.M.  The U.K. Landfill Gas and MSW Industry So Far. So Good?  U.K. Department of
 Energy.  Landfill Gas and Anaerobic Digestion of Solid Waste.  London, United Kingdom. 1988.

 Robinson, M.G. Landfill Gas: Its use as a Fuel for Process Firing and Power Generation.  U.K.
 Department of Energy and Department of the Environment. Landfill Gas: Energy and Environment '90.
 Bournemouth, United Kingdom. 1990.

 Scheepers, M.J.J. Landfill Gas in  the Dutch Perspective. Proceedings of Sardinia '91 - Third
 International Landfill Symposium.  Sardinia, Italy. 1991.

 Scheepers, M.J.J. Landfill Gas in  the Dutch Perspective. U.K. Department of Energy and  Department
 of the Environment.  Landfill Gas:  Energy and Environment'90. Bournemouth, United Kingdom.  1990.

 Sleeker, P.P. and M.A. Marsden.  Comprehensive Landfill Gas Control and Recovery at Outagamie
 County. Wisconsin. Landfill. Proceedings of the 13th Annual International Landfill Gas Symposium.
 GRCDA, Lincolnshire, IL.  March 1990.

Thorneloe, S.A. Landfill Gas Recovery/Utilization — Options and Economics.  16th Annual Conference
on Energy from Biomass and Wastes.  Institute of Gas Technology. Orlando, FL. March, 1992.

Thorneloe, S.A. and J. Pacey.  Landfill Gas Utilization — Database of North American Projects.
 Proceedings of the 17th Annual International Landfill Gas Symposium. SWANA, Long Beach, CA.
 March 1994.

Turner, R.  Expertise with Landfill Gas Projects:  The Development of a Small Scale Power Station.
U.K. Department of Energy. Power Generation from Landfill Gas.  London, United Kingdom.
November 1991.

Watson, J.R.  Pretreatment of Landfill Gas. Proceedings of the 13th Annual International Landfill Gas
Symposium. GRCDA, Lincolnshire, IL. March 1990.

Wehran, Jr., F.L. Using Landfill Gas to Evaporate Leachate. Proceedings of the 32nd Annual
International Solid Waste Exposition. SWANA, San  Antonio, TX. August 1994.

Willumsen, H.C. Danish Status for Landfill Gas Plant. Proceedings of the 16th Annual Landfill Gas
Symposium. SWANA, Louisville, KY.  March 1993.

Willumsen, H.C. and L. Bach.  Landfill Gas Utilization Overview.  Proceedings of Sardinia '91 - Third
International Landfill  Symposium.  Sardinia, Italy. 1991.

4.1  DIRECT USE - BOILERS AND KILNS

Bier, J.D.  Effects of Landfill Gas Management at the Industry Hills Recreation and Conference Center.
Proceedings of the 17th Annual Landfill Gas Symposium. SWANA, Long Beach, CA. March 1994.

Eppich, J.D. and J.P. Cosulich. Collecting and Using Landfill Gas as a Boiler Fuel. Solid Waste &
Power, pp. 27-34.  July/August 1993.
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 4.2 ELECTRICITY

 Anderson, C.E. Selecting Electrical Generating Equipment for Use with Landfill Gas. Proceedings of the
 16th Annual Landfill Gas Symposium.  SWANA, Louisville, KY.  March 1993.

 Edner, S. Combined Heat and Power - The Swedish Experience.  U.K. Department of Energy.  Landfill
 Gas and Anaerobic Digestion of Solid Waste.  London, United Kingdom. 1988.

 Fisher, A.J.  Lubrication of Landfill Gas Engines.  U.K. Department of Energy.  Power Generation from
 Landfill Gas.  London, United Kingdom. November 1991.

 Hulance, A.  Expertise with Landfill Gas Projects: Power Generation at Brogborough Landfill Site. U.K.
 Department of Energy.  Power Generation from Landfill Gas. London, United Kingdom. November 1991.

 Markham, M.A. Landfill Gas Recovery to Electric Energy Equipment: Waste Management's 1991
 Performance Record. Proceedings of the 15th Annual Landfill Gas Symposium.  SWANA, Silver Spring,
 MD. March 1992.

 U.K. Department of Energy.  Power Generation from Landfill Gas.  Harwell Laboratories, Oxfordshire,
 United Kingdom. 1992.

 Watts, R.A. The Justification of Landfill Gas Recovery for Electric Generation.  Submitted Papers and
 Abstracts for the 10th International Landfill Gas Symposium.  GRCDA/SWANA, Silver Spring, MD. 1987.

 4.2.1 Reciprocating  Internal Combustion  Engines

 Bateman, C.S. and R. Currie.  Power Generation in Australia. U.K. Department of Energy and
 Department of the Environment. Landfill Gas:  Energy and Environment '90. London, United Kingdom.
 1990.

 Chadwick, C.E. Application of Caterpillar Spark-Ignited Engines for Landfill Gas.  Proceedings of the
 12th Annual International Landfill Gas Symposium.  GRCDA, Silver Spring, MD.  1989.

 Chadwick, C.E. Reduced Power Requirements of Low Pressure Gas Reciprocating Engines. Pre-
Treatment of Landfill Gas. Proceedings of the 13th Annual International Landfill Gas Symposium.
GRCDA,  Lincolnshire, IL.  March 1990.

Gonzalez, J.G.  Selecting the Best Lubricant for Optimum Equipment Performance.  Papers and
Abstracts for the 10th International Landfill Gas Symposium.  GRCDA/SWANA, Silver Spring, MD.
 1987.

Homably, M.R.  Lessons Learnt from the Stewartby & Packington Projects.  U.K. Department of Energy
and Department of the Environment. Landfill Gas:  Energy and Environment '90.  London, United
Kingdom.  1990.

Limbrick,  A.  Electricity Generation from Landfill Gas at Wapsey's Wood. Buckinghamshire. Using Dual
Fuel Engines.  U.K. Department of Energy.  Landfill Gas and Anaerobic Digestion of Solid Waste.
Oxfordshire, United Kingdom. 1988.

Moss, H.D.T.  The Use of Landfill Gas in Reciprocating Engines.  Proceedings of Sardinia '91 - Third
International Landfill Symposium.  Sardinia, Italy.  1991.

Moss, H.D.T.  Generation Using Spark  Ignition Engines.  U.K. Department of Energy. Landfill Gas and
Anaerobic Digestion of Solid Waste.  Oxfordshire, United Kingdom.  1988.
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 Owen, W. and J. Smithberger.  1-95 Fairfax County Landfill Gas Project.  Proceedings of the 15th
 Annual Landfill Gas Symposium. SWANA, Silver Spring, MD.  March 1992.

 Schneider, J. The Berlin-Wannsee Site - 2.5 Years of Experience with a Landfill Gas Purification and
 4.5 MW Combustion-Engine Cogeneration Plant. Proceedings of Sardinia '91 - Third International
 Landfill Symposium. Sardinia, Italy. 1991.

 Vaglia, R. Operating Experience with Superior Gas Engines on Landfill Gas. Proceedings of the 12th
 Annual International Landfill Gas Symposium. GRCDA, Silver Spring, MD.  1989.

 Young, C.P. and N.C. Blakey.  Emissions from Power Generations Plants Fuelled by Landfill Gas.
 Proceedings of Sardinia '91 - Third International Landfill Symposium.  Sardinia, Italy. 1991.

 4.2.2  Gas Turbines

 Biddle, C.A.R. Generation Using Gas Turbines. Midlands Electricity Board Tariff.  U.K. Department of
 Energy.  Landfill Gas and Anaerobic Digestion of Solid Waste.  Oxfordshire, United  Kingdom. 1988.

 Esbeck, D.W. Solar Turbines. Incorporated Landfill Gas Experience.  Proceedings of the 12th Annual
 International Landfill Gas Symposium.  GRCDA, Silver Spring, MD. 1989.

 Schlotthauer,  M.  Gas Conditioning Key to Success in Turbine Combustion Systems Using Landfill Gas
 Fuels.  Proceedings of the 14th Annual International Landfill Gas Symposium.  GRCDA/SWANA, San
 Diego, CA. March 1991.

 Taplin, B. and K. Ochel.  Mucking:  Landfill Gas Extraction & Future Use in a Turbine.  U.K. Department
 of Energy and Department of the Environment.  Landfill Gas: Energy and Environment '90.
 Bournemouth, United Kingdom. 1990.

 4.2.3  Steam Turbines

 Eppich, J.D.  50 Megawatt Steam Power Plant Fuelled by Landfill Gas. U.K. Department of Energy.
 Landfill Gas and Anaerobic Digestion of Solid Waste.  London,  United Kingdom.  1988.

4.3  PIPELINE QUALITY GAS

Healy,  R.J. and G. Christianson. Production of Vehicle  Fuel (CNG) from Landfill Gas Utilizing Sour
Natural Gas Treatment Technologies. Proceedings of the 15th  Annual Landfill Gas Symposium.
SWANA,  Silver Spring, MD.  March 1992.

Shah, V.A.  Landfill Gas to High Btu Sales Using Selexol® Solvent Process.  Proceedings of the 13th
Annual International Landfill Gas Symposium. GRCDA, Lincolnshire, IL. March 1990.

Trocciola, J.C. Landfill Methane Mitigation Using a Commercial Fuel Cell.  Proceedings of the 17th
Annual Landfill Gas Symposium. SWANA, Long Beach, CA. March 1994.

Wheless, E.  Processing and Utilization of Landfill Gas as a Clean. Alternative Vehicle Fuel.
Proceedings of the 17th  Annual Landfill Gas Symposium. SWANA, Long  Beach, CA. March 1994.

Wheless, E.  Compressed Landfill Gas as a Clean. Alternative Vehicle Fuel.  Proceedings of the 16th
Annual Landfill Gas Symposium. SWANA, Louisville, KY.  March 1993.
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 4.4 CONDENSATE AND CONTAMINANTS

 Call, N.S. Treatment of Aqueous Condensate From Landfill Gas Recovery Plants. Proceedings of the
 12th Annual International Landfill Gas Symposium. GRCDA, Silver Spring, MD. 1989.

 Carrico, P.J.  LFG Condensate Treatment at I-95 Landfill. Lorton. Virginia. Proceedings of the 16th
 Annual Landfill Gas Symposium. SWANA, Louisville, KY. March 1993.

 Francoeur, C.  H2S Control for the Landfill Industry.  Proceedings of the 16th Annual Landfill Gas
 Symposium. SWANA, Louisville, KY. March 1993.

 Maxwell, G. Landfill Owner's/Operator's Experience and Perspective on Municipal Landfill Gas
 Condensate Collection and Disposal.  Proceedings of the 12th Annual International Landfill Gas
 Symposium. GRCDA, Silver Spring, MD. 1989.

 Panza, R.A. In Search of a Few Good Treatment Processes (For Landfill Gas Condensate).
 Proceedings of the 16th Annual  Landfill Gas Symposium. SWANA, Louisville, KY. March 1993.

 Peterson, W., G. Vogt, and J. Vogt.  Emissions Control and Treatment of High Level Hydrogen Sulfide
 and Landfill Gas.  Proceedings of the 15th Annual Landfill Gas Symposium. SWANA,  Silver Spring,
 MD. March 1992.

 Sullivan, W. Landfill Gas Condensate Collection and Disposal Using the Vacuum Condensate Drainage
 Method.  Proceedings of the  15th Annual Landfill Gas Symposium.  SWANA, Silver Spring, MD.  March
 1992.

 Vogt, W.G. and J.L. Briggs. Disposal Options for Landfill Gas Condensate. Proceedings of the 12th
 Annual International Landfill Gas Symposium.  GRCDA, Silver Spring, MD. 1989.

 5.  INFORMATION  ON REGULATIONS PERTAINING TO ENERGY USES.

 California Air Resources Board.  Air Pollution Control at Resource Recovery Facilities.  1991 Update.
 Sacramento, CA.  1991.

 Davie, D.E. and L. Hollyer. Creating a Favorable Economic Environment for Landfill Gas Energy
 Recovery Projects — A Utility Perspective.  Proceedings of the 12th Annual International Landfill Gas
 Symposium. GRCDA,  Silver  Spring, MD. 1989.

 Federal Register.  Standards  of Performance for New Stationary Sources and Guidelines for Control of
 Existing Sources:  Municipal Solid Waste Landfills. Vol. 56, No. 104, Part III, p. 24468. Thursday,
 May 30, 1991.

 Fitzgibbons, R.G.  Beyond the FERC NOPRS:  Trends in Electric Utility Regulation.  Proceedings of the
 12th Annual International Landfill Gas Symposium. GRCDA, Silver Spring, MD.  1989.

 Greenberg, F. L.  Recent Developments. Future Prospects for Sales of Electricity from Facilities which
 Burn Landfill Gas.  Proceedings  of the 15th Annual Landfill Gas Symposium.  SWANA, Silver Spring,
 MD. March 1992.

 Greenberg, F.L. Selling Electricity to Utilities. Proceedings of the 13th Annual International Landfill Gas
 Symposium. GRCDA/SWANA, Silver Spring, MD. March 1990.

 Hale, B. California's Alternative  Energy Program and Landfill Gas to Energy Projects.  Proceedings of
the 12th Annual International  Landfill Gas Symposium.  GRCDA, Silver Spring, MD.  1989.
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 Hatch, R.F.  The Federal Tax Credit for Non-Conventional Fuels: Its Status and Role in the Landfill
 Gas Industry.  Proceedings of the 14th Annual International Landfill Gas Symposium.  GRCDA/SWANA,
 San Diego, CA.  March 1991.

 Maxwell, G.  Disposal Options for Landfill Gas Condensate.  Proceedings of the 12th Annual
 International Landfill Gas Symposium.  GRCDA, Silver Spring, MD.  1989.

 Petersen, E.  Pending Subtitle D Regulations and Their Effect on Landfill Gas Issues.  Proceedings of
 the 14th Annual International Landfill Gas Symposium. GRCDA/SWANA, San Diego, CA.  March 1991.

 U.S. EPA. Office of Air Quality Planning and Standards.  Air Emissions from Municipal Solid Waste
 Landfills — Background Information for Proposed Standards and Guidelines.  EPA-450/3-90-011a
 (NTIS PB91-197061).  1991.

 Wong, P.P.  Alternative Energy & Regulatory Policy:  Til Death Do We Part.  Presented at AWMA
 Conference on "Cooperative Clean Air Technology — Advances through Government Industrial
 Partnership" in Santa Barbara, CA. March 21 - April 1, 1992.

 6.   ENVIRONMENTAL AND CONSERVATION  ISSUES

 Augenstein, D. Greenhouse Effect Contributions of United States Landfill Methane.  Proceedings of the
 13th Annual  International Landfill Gas Symposium. GRCDA, Lincolnshire, IL.  March 1990.

 Campbell, D., D.  Epperson, L. Davis, R. Peer, and W. Gray. Analysis of  Factors Affecting Methane Gas
 Recovery from Six Landfills.  EPA-600/2-91-055 (NTIS PB92-101351).  September 1991.

 Maunder, D. Non-Technical Barriers to Using Landfill Gas in the U.K. and a Discussion of Some
 Solutions. Proceedings of the 16th Annual Landfill Gas Symposium. SWANA, Louisville, KY.  March
 1993.

 National Academy of Sciences. Policy Implications of Global Warming. National Academy of Sciences,
 Washington, DC.  1991.

 Peer, R., D. Epperson,  D. Campbell, and P. von Brook. Development of an Empirical Model of Methane
 Emissions from Landfills. EPA-600/R-92-037 (NTIS PB92-152875).  March 1992.

 Scott, P.E., et al.  The Fate of Gaseous Trace Components within Landfill Gas Utilisation Systems. U.K.
 Department of Energy.  Power Generation From Landfill Gas. London, United Kingdom.  November 1991.

Thorneloe, S.A. and R.L. Peer.  Landfill Gas and the Greenhouse Effect.  Text in Landfill Gas, Energy and
 Environment '90.  U.K. Department of Energy and Department of the Environment. Harwell, Oxfordshire.
 London, United Kingdom. 1990.

Thorneloe, S.A., M.A. Barlaz, R. Peer, L.C. Huff, L. Davis, and J. Mangino. Global Methane Emissions
from Waste Management.  Published in: Atmospheric Methane:  Sources, Sinks, and Role in Global
Change,"  pp 362-398, NATO ASI series, Vol. 1-13, Springer Verlag.  1993.

Thorneloe, S.A. Landfill Gas and Its Influence on Global Climate Change. Proceedings of Sardinia '93 -
 Fourth International Landfill Symposium. Sardinia, Italy.  October 1993.

Thomeloe, S.A., M.R.J. Doom, M.A. Barlaz, et al. Methane Emissions from Landfills  and Open Dumps.
In:  "International  Anthropogenic Methane Emissions:  Estimates for 1990." (EPA Report to Congress)
EPA-230-R-93-010. January, 1994.
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        APPENDIX C:  LIST OF DEVELOPERS AND OPERATING COMPANIES
 Company
                           Address
                             Contact
                Telephone
                Number
                                                             Fax Number
 Landfill Gas Energy Conversion Project Developers
 Cambrian Energy Systems
 Energy Tactics, Inc., ETI
 Gas Resources Corporation
 Getty Energy, Inc. (GSF)
Granger Renewable
Resources, Inc.
KMS Energy Group
Lakjlaw Gas Recovery
Systems

Landfill Energy Systems
Minnesota Methane
O'Brien Energy Systems, Inc.
Palmer Capital Corporation
Rust Environment and
Infrastructure

Vermont Energy Recovery,
Inc.
3420 Ocean Park Blvd. Ste. 2020 Tudor Williams
Santa Monica, CA 90405
 P.O. Box 7
 124 Sills Road
 Yaphank, NY 11980

 3405 Piedmont Road, N.E.,
 Suite 595, Atlanta, GA 30305

 7201 Hamilton Blvd. .
 Allentown, PA 18195
Stanley Drake
President
Alan Epstein
President

Paul Persico
                           17330 Brookhurst St. Ste. 260    Paul Kuroki
                           Fountain Valley, CA 92708-3720
P.O. Box 27185
Lansing, Ml 48909


2600 West Van Buren,
Bellwood, IL  60104

89899 Ballentine Dr., #275
Newark, CA 94560

29261 Wall Street
Wixom, Ml 48393

901 West 94tti Street,
Minneapolis, MN 55420
225 South 8th St
Philadelphia, PA 19106

672 Jerusalem Road
Cohasset, MA 02025

1240 E Diehl Road,
Naperville, IL 60563

P.O. Box 791
Brattleboro, VT  05302
Ralph
Nuerenberg
Vice President

Henry Martin
President

George Jensen
Matt Nourat

Scott Salisbury
Craig
Matacyynski,
Stan Erickson
Directors

Bruce Levy
Gordon Deane


Charles Anderson


Alan McLane
310-314-2727


516-924-5300



404-262-7443


610-481-7061


714-968-5477


517-372-2600



708-450-8400


510-656-8327
810-380-3929
810-380-3920

612-330-6977
215-627-5500


617-383-1293


708-955-6665


802-257-3000
310-314-2731


516-924-5627



404-262-7445





714-964-4054


517-372-9220



708-450-2886


510-656-7927


810-380-2038


612-887-5885




215-922-5227


617-492-7822


708-955-6601


802-257-5851
Notes:   BFI is a large developer/operator that is not included, since their landfill gas utilization projects are all in-
        house.

        Only developers/operators with two or more projects are included.
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APPENDIX C:  LIST OF DEVELOPERS AND OPERATING COMPANIES (continued)
Company
Address
                                                        Contact
                                                 Telephone
                                                 Number
                                Fax Number
 Landfill Gas Energy Conversion Project Operating Companies
Energy Tactics, Inc., ETI
International Power
J-W Operating Company
KMS Energy Group
Minnesota Methane
P.O. Box 7
124 Sills Road
Yaphank, NY 11980

1000 Marine Parkway, Ste. 325
Redwood City, CA 94065

P.O. Box 226406
Dallas, TX 75222

2600 West Van Buren,
Bellwood, IL 60104

901 West 94th Street,
Minneapolis, MN 55420
O'Brien Energy Systems, Inc. 225 South 8th SL
                        Philadelphia, PA  19106
Stanley Drake      516-924-5300    516-924-5627
President
Randy Turley      415-592-9020    415-592-9026
Operations Manager

Mark Westerman   214-233-8191    214-991-0704
Henry Martin
President
708-450-8400    708-450-2886
Craig Matacyynski,  612-330-6977    612-887-5885
Stan Ertekson
Directors
                                Bruce Levy
                 215-627-5500    215-922-5227
Notes:   BFI is a large developer/operator that is not included, since their landfill gas utilization projects are all in-
        house.

        Only operators with two or more projects are included.
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                    APPENDIX D: INTERVIEW SUMMARIES
 In June 1992, EPA published a report entitled:  "Landfill Gas Energy Utilization:  Technology
 Options and Case Studies," of which the abstract and table of contents are included in
 Appendix A. The report provides an overview of the various landfill gas energy uses and
 presents case studies of six landfill gas energy projects in the United States.  During
 preparation of the report, it became evident that there was a need among landfill gas
 developers and others involved in the industry for more detailed information on the technical
 and non-technical considerations concerning landfill gas utilization.  It was decided that this
 information would best be provided by sources  with expertise in the everyday operation of
 landfill gas utilization equipment.  Following are summaries of 13 interviews with experts from
 leading companies in the landfill gas industry. The first six interviews were conducted in May
 1992 and focussed on technical issues. The following seven interviews were conducted in May
 and June 1994 and addressed non-technical issues, such as barriers to the industry. The
 information acquired from these interviews was used as the basis for this report.
TECHNICAL ISSUES
INTERVIEW 1;  BROWNING-FERRIS INDUSTRIES (BFI)
Interview with  Richard Echols, May 29,  1992.

BFI has 5 landfill gas (LFG) to  energy projects,  2  under construction
and over 30 on  drawing board.  Economics is currently a barrier to
energy use at many sites.

Piping
BFI favors below-ground pipe.  Reasons:   polyvinyl  chloride (PVC) has
short  life, polyethylene high thermal  expansion coefficient,  fires  are a
greater danger -above ground.  They use high-density polyethylene plastic
pipe up to compressor and stainless steel past it.

Monitoring
At the energy sites O2, N2, CO2,  H2, and CH4 are monitored with a Daniels
gas chromatoaraph:  sampling is once every few minutes.   Also H2S levels
are watched, mainly for safety reasons.   The methane flow-is determined
after  correction  for P and T.  (On flare sites only monitor temperature
and methane) .   Methane set point is 50%  if attainable,  but this may be
dropped as low  as  45%.   GC column changes needed much more frequently on
LFG than with other gas analyses.   NMOC  data are  taken to assure that
energy equipment manufacturer's  standards are met.   Gas NMOC data not
provided.

A distinct diurnal effect on methane concentration  was noticed;
variations of 1 to 3% occur.  Oxygen normally under 0.5% but with leaks
may easily approach 5%.

Condensate
Collection by automated system is preferred at the  field.  Disposal
varies depending on local ordinance. Nearly always  non-hazardous
(detailed composition data not given by  BFI).   Condensate slugs have hit
high pressure compressors and caused severe damage  ("blow stage apart").
At the energy recovery site, a knockout  tank removes additional
condensate before  the compressor.   (Tank is oversized by a factor 5) .


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 Pretreatment
 BFI is in the process of standardizing the pretreatment approach to
 maximum extent possible at most sites.  Gas pretreatment has been very
.dependable,  uptime stated to be better than 95%.   No plans for
 significant changes.  Parasitics reported to be about 7% of gross RIG
 engine output:  4/3 or 5/2 for compression relative to refrigeration.

 Corrosion prevention; high-density polyethylene (low pressure)  or
 stainless steel (higher pressure)  is used.

 Basic approach is:
     •   Inlet  condensate removal (see above),
     •   Comaression.  Lamson centrifugal compressors serve the energy
        equipment  for field extraction on energy projects and also serve
        flares. Compressors have baked-on plastic finish.
     •   Refrigeration to 37-38°F.  Refrigeration:  Going for skids with
        two refrigeration compressors each with 100% capacity.  Looking
        for bids on refrigeration system designs where refrigerant 22 is
        replaceable with alternative.
        Reheat to  75-80°F,
     •   Filtration;  3 micron cutoff the criterion,  otherwise not
        standard;  several different brands used. Pressure drop and
        parasitics very small, performance not a problem. Paper element
        filters were used in the past but paper elements fell apart.

 RIC Engines
 As  a standard a Waukesha 7042  with  a 1025  KW Kato generator  is  used.
 RIC engines  use fuel gas compression to  10  psi,  then refrigeration  and
 reheat, premixing  or pre-carburetion of  most of the fuel/air charge,
 then .turbocharge to engine.   Small  slip  stream is compressed to 45  psi
 to  fuel the  pre-combustion chamber.   Carburetion:   close control  of gas
 quality to RIC engine and  automatic adjustment of fuel/air mix  to point
 where engine does  not have to  work  against  governor to maintain speed.

 Methane definitely limits  size of energy equipment.   No alternative fuel
 capability at any  site. When  gas supply  is  limited  the RIC engines  are
 throttled or units are  taken  off-line, as needed.   No problems  reported
 with this procedure.  Turbocharger  service  normal.   Turbocharger  can
 however be a capacity limiting factor especially at lower methane levels
 (since it must compress more  gas compared to normal natural  gas
 service).

 Material  adaptations can include chromed valves and guides but  BFI  does
 not typically specify this.  The intent  is  to determine site specific
 needs and modify equipment  as  necessary.

 BFI uses  manufacturer's recommended oil; typically  Mobil Pegasus.   The
 oil change interval  is  500  hours   (to be based on test results  from
 external  laboratory).

 Standard  crankcase ventilation back into RIC engine.

 Jacket water as  manufacturer recommends  (s225°F).

 High pressure compressors  have had  problems  with deposits; have had to
 change and clean valves a  lot  more  often especially in the positive
 displacement types.

 Time between overhauls:  follow Waukeshsa guides at this point.   May
 modify as experience is developed.

 Catalysts do not work.


                                   D-2

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 O&M costs not immediately available.

'Pipeline Gas Cleanup:
 BFI has one plant in operation for which they are fully responsible.   It
 uses the Kryos™ process with methanol.  It is working very well.
 Another pipeline plant with which BFI is involved is operated by Air
 Products and BFI's role is largely as a royalty recipient.


 INTERVIEW 2;	IAIDIAW
 Interview with George Jansen and Matt Nourot,  May 5 and May 11,  1992.

 Monitoring
 Gas monitoring:   maintain a 50% methane mix at most sites.   Measure
 methane,  C02,  O2, N2-and CO (in certain areas  to detect  possible  fires).
 Methane analysis is conducted by Gastech  (5  times per  week).  Other
 gases  (also again methane)  measured twice  a month using grab samples
 taken  to GC.  GC methane corresponds closely  to Gastech readings.  No
 "instantaneous"  monitoring of gas composition to energy equipment  at any
 site.

 Oxygen/air intrusion into gas:   no alarm is used at Laidlaw RIC  engine
 sites.   Equipment  will simply shut down.

 LFG flow measurement To be more accurate,  orifice plates are  being
 installed in wellheads.

 Blowers
 Low pressure blowers:   several  types preferred,  Lamson  most frequently
 used..  Blower life  is acceptable without any special modification to
 parts.   Low pressure gas compressors stated to be one of the most
 reliable  parts of  the whole system.

 Condensate
 Condensate slugs have been  a problem;  at one  site where sliding  vane
 compressors  were used,  sliding  vanes were  destroyed.  Condensate
 accumulation in cutoff "deadheaded"  gas lines  has also  been a problem.
Although  condensate  caused  compressor or other equipment damage  at some
 sites,  re-piping so  that condensate  was blown  into a low collection trap
 at  the  inlet pipe  to the compressors appears  to  have solved problem.
Better  supplemental  low point drainage has  also  helped.   Slug catchers,
designed  by  Solar  Turbines,  are used at some plants  employing Solar
 equipment.

Condensates  can also be  a very  large problem where they are classified
as  a hazardous waste,  as is the case in California.  The incremental
compression  with various energy uses,  such  as  with lean  burn RIC
engines,  can generate  a  large amount of extra  condensate, in comparison
 to  flaring.   Disposal  cost  at up to  70 cents/gallon  can  put a stop to
energy  generation.

Pretreatment

Naturally  aspirated  RIC  engines initially had  minimal cleanup.  Wear was
rapid  (engines corroded  out within a few thousand hours)  and this  is now
thought to be due  to the fact that condensate  was entering engines.
Everything improved  once gas cleanup was practiced.
                                   D-3

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Gas processing  sequence'is normally:

    •    Inlet scrubber (large diameter vessel with demister pad in top);
        cleaned out periodically by simply "washing the vessel out."
    •    Compressor; if two stages,  there is .normally intercooling.
        (Because of condensation with cooling,  there is often a slug
        catcher between stages.)   Different types are used,  including
        one-stage sliding vane and two-stage.  There is a trend toward
        standardization because of spare parts  considerations
        (Breakdowns have caused substantial downtime).   Particulate
        loading has been associated with compressor valves falling
        apart,  resulting in parts being sucked  into compressor.   The
        chief engineer has done a lot of work on compressor valves,
        redesigning them so that broken parts stay in one spot.   Replace
        valves (with spares on hand)  on a six-month schedule to prevent
        this type of problem.
    •    Refrigeration;  cool gas to below 35°F (may only get down to 40°F
        in summer).
    •    Reheat to above ambient,  75-90°F,  to get any entrained liquid
        aerosol  into a vapor  state.  Often done  by heating cool gas
        stream against the inlet  gas  off the compressor.
    •    Filtration  (Fiberglass;  manufacturers  Perry,  King tool,  PECO
        0.1 to 1 micron cut-off).   Dry filtration (PECO,  10 micron cut-
        off) .   The filtration works well and filters look clean on
        normal  replacement schedule  of 6 months.   Pressure drop normally
        low,  less than 1  psi;  gauges  (monitored and recorded once daily)
        showing  rising pressure drop  would indicate need for change.
        There appears to  be no notable or "LFG  specific"  filtration O&M
        needs.

Corrosion
Carbon steel, where used  in process system, erodes.  Loose corroded
particles present  danger  of getting into the RIC engine cylinders.  They
can also cause fouling of filters.

Material Modification
Manufacturers of RIC engines   (see below) have not provided stainless
steel  in skids in  the past, so Laidlaw has had to provide.  Have been
replacing carbon with stainless steel over time as replacement needs
occur.

RIC Engines
Gas is limiting factor at most sites, i. e., insufficient to  fully power
energy equipment. When gas supply drops, the engines are throttled or
taken  off-line.  Both methods are said to work well:  Fuel
supplementation is not done.   Engines are stated to throttle well,
maintaining their  fuel efficiency.  At one site  (Guadalupe) one RIC
engine is run during peak periods (noon-6pm) only.

Laidlaw uses several types of RIC engines:

    •   Cooper naturally  aspirated. 500  KW (11  in place).   Heat  rate
        13,000 to  15,000  Btu/KWh  LHV  (lower heat  value)  or about  14,000
        to  16,000  HHV (higher  heat value)
    •   Cooper lean burn  engines,  750  KW .(2  in  place)
    •   Cooper lean burn  engines,  1750 KW 16  cylinder  turbocharged
       Waukesha  lean burn engines.   1,100  KW,  12 cylinder,  turbocharged
        30-35 psi.,  (4  in place).

See Jansen  (1992)  for further information and overview of energy
equipment.  All lean burn engines have heat rates near 10,000-11,000 LHV
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or  11,000-12,000 HHV Btu'/KWH.  As far as Laidlaw knows, all parts of  the
above RIC engines are standard.

Laidlaw goes  for 85% RIC engine availability:  An averaged power output
over time, of 85% of what the nameplate says. In other terms, losses  due
to  scheduled plus unscheduled outages, plus downrating from nameplate
value due to LFG use and other factors, are expected to total no more
than 15%.

With clean-burn Cooper and lean-burn Waukesha engines that have pre-
combustion chambers, the refrigeration (see gas handling, analysis and
pretreatment section above) has been found to be especially beneficial
as  pretreatment. Without refrigeration and other good cleanup, deposits
can develop in the orifices of the pre-combustion chambers that can
cause pre-detonation.

Use Mobil Pegasus oil (454).  Typically get 2,000 hours.  Typical
analysis:  metals, pH balance, ash content.  Analysis is approximately
once a week. Oil filtration with standard filters.  RIC engines consume
typically one to five gallons per day.  Normal crankcase ventilation.
Bearing wear was fairly severe until oil was changed to current type
described previously above. Deposits were a problem with early operation
on  unclean LFG and with early oils but not so now; currently, deposits
with cleaned LFG are characterized as on high end of normal with natural
gas.

Carburetion:  Operators use field methane measurements as index for
setting carburetion; cylinder temperatures also an index.  On naturally
aspirated units, overfueling is needed to lower NOX.   Carburetion is set
to  maintain a minimum CO level .in the exhaust.  Cooper Superior clean
burn engines use an air/fuel ratio controlling system (Ultronics) that
monitors each cylinder and controls spark timing on each cylinder.
Except where controlled by Ultronics system,  spark ignition timing is
simply set by manufacturer's recommendation or based on Laidlaw
experience over the years.   Fuel metering system needs no special extra
maintenance/cleanup as long as gas supply is clean.

Waukesha's:   Control air/fuel ratio on the basis of exhaust oxygen
content.   Problem is that monitoring is relatively infrequent. If
methane drops, RIC engine runs very erratically and quite unstably.   If
methane goes rich engines will detonate and severe damage can occur.

Maintenance intervals:   10,000 to 15,000 hours on top end.  Entire
rebuild at intervals of 25,000 to 30,000 hours.   Major overhauls take as
long as 15 to 20 days;  overhauls are scheduled for time of low power
sale rates in winter.  Maintenance cost;  rough estimate is 2 to 2.2
cents per KWH.

RIC engine jacket water temperature:  Waukesha's 200°F,  Coopers about
180°F.
Very bad experience with catalysts on naturally aspirated engines; they
have been quickly inactivated by exhaust gas components.

Turbocharger performance can be regarded as normal;  similar to what
would be expected on natural gas service.

Turbines
Laidlaw operates two Solar Centaur and five Solar Saturn combustion gas
turbines,  all purchased recently from Solar.   Net efficiency of Centaurs
is  14,000 HHV Btu/KWH and of the Saturns approx 15,000.    (Saturn
turbines are recuperated; this design was intended for application in
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 air quality areas  where  RIG  engine NOX emissions would not be
 permitted).   Modifications for  LFG,  if any not  known  to  Laidlaw.

 Turbines  operate on  temperature topping.  Providing LFG  is not  limiting,
 turbines  can adjust  well to  fuel energy content changes  (although
 Laidlaw feels that if  fuel energy content fell  low enough, compressors
 might  not be able  to pump enough LFG  to turbines — i. e., with  lower  LFG
 energy content, turndown capability  is terrible).

 Time between overhauls estimated at  30,000 hours.

 Steam  boiler
 The plant consists of a  Zurn boiler and General Electric  turbine  with a
 nominal nameplate  rating of  20  MW.   It is operated at 15  MW  output
 because gas  supply is not sufficient.  Ratings:  14,000  Btu/KWH (LHV),
 equivalent  to 15,000 Btu/KWH HHV.

 Because local emission standards would become stricter no alternate fuel
 supplementation is used.

 No  elaborate  cleanup of  incoming gas  other than for particulates.  The
 boiler tubes  are stainless steel.  (This may, however be  standard
 design).   Zurn did do some modifications to burners.  Have seen some
 particulate buildup on tubes but these are felt to be unrelated to LFG.

 Laidlaw believes fuel/air ratio controlled by stack monitoring  of 02.
 If  field  methane drops,  operators simply reduce overall gas  extraction
 rate so that  methane stays at acceptable level.

 Boiler goes down for routine maintenance once a year,  major  maintenance
 every  third year.   Overall observation is that, where there  is  enough
 LFG  to supply an economic sized  (20MW and up) plant, steam plants work
 very well.


 INTERVIEW 3;	PACIFIC ENERGY
 Interview with Alex Roqueta and Frank Wong,  May 15,  1992.

 Pacific Energy tries to maximize methane recovery.   Maximizing  the
methane at the wellhead   and installing additional wells maximizes total
 Btu's.   Methane concentration set point is site specific, normally 47 to
 52%.

Corrosion and moisture contents stated as biggest problems with LFG.

Piping
Vertical wells are preferred, sometimes supplemented by trenches  to
control migration.   Polyethylene, PVC, or sometimes steel pipes are
used.  Pacific Energy strongly prefers above ground piping;  easier to
repair.leaks, fix  condensate blockages,  etc.   They believe that O&M is 3
 to 4 times higher with below ground systems.   Where possible, mains are
placed on native land to avoid subsidence problems.

Pretreatinent
 Pacific energy's philosophy is to limit pretreatment to filtration with
condensate removal.  They feel that although expense is higher  than with
cleaner gas,  they work reasonably well;  believe that expense of more
 stringent pretreatment is not justified.

Condensate:  automated extraction system being implemented in field
where possible; trying to design for anticipated rather than current
regulations.  Underground storage is avoided.  Midpoint range for


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 condensate handling suggested around 12-15  cents per gallon  (The  range
 is  a  few cents up to about  90 cents  if  condensate is deemed hazardous.)

 Pretreatment sequence:

    •   Condensate knockout.  Final condensate knockout before
        compressor by King Tool,  tank with demister  pad (exact
        configuration not available).
        Compression: keep gas warm - 100 to 150°F, normally closer to
        150°F.  Compressors that  serve the RIC engines  (Gardner-Denver
        and Ariels, oil lubricated) serve for field  extraction as  well.
        Typically pull 40-80 in.  H20,  discharge to Cooper RIC  engines  at
        80-90 psi. Condensate getting to compressor  has not caused
        serious damage ("bent a valve or two out of  shape").   The  motor
        senses excess load and shuts  down.
    •   Filter (first a coalescing then particulate)  to engine.

 Carbon  steel used in system,  experiencing some contaminant corrosion.
 slowly  being replaced by  stainless.   In hindsight Pacific Energy would
 have  used stainless  steel where it has used carbon.

 RIC Engines

 Cooper  lean  burn  turbocharged engines used at all but one site  (12
 cylinder,  12SBTLA,  1,350 KW and 16 cylinder 16SBTLA., 1,875 KW).  Heat
 rates are 11,000  to  14,000  Btu/KWH HHV.  The 12 cylinder is a little
 less  efficient than  the 16  cylinder.  Elliot turbochargers give about 12
 pounds  of air boost.

 RIC engine operation is governed  to produce a set power output.

 Carburetion
 Daniels GC monitors  methane every  6 minutes.  Air/fuel ratios adjusted
 automatically based  on the  Btu content.  Adjustments are partially
 automated and include spark advance control.  Much greater efficiency
 and easier operation on the RIC engine with the automated air/fuel
panel, but details are not  available.

There is  LFG supplementation with natural gas at some sites.  Natural
gas stated to improve RIC engine smoothness and efficiency. The
GC/automated panel system for carburetion control  apparently works well
under these  circumstances.   The supplementation is often at periods of
peak power sale price, to maximize revenue.

There have been a number of  changes in the fuel system — throttle
orifices  were changed to maximize efficiency.  Have  burned out pre-
 ignition  cups on RIC  engine where fuel ignition starts.

Monitoring-
The gas concentration is monitored by GEM 5000 infrared-based absorption
 system.   Pacific Energy states that methane does not change in a short
period of  time except for generation rate decline  (say 3-5% a year of
 total extraction rate at closed sites).  Most sites  are gas limiting.
Exhaust gas  temperature is  followed because it can indicate non-firing
cylinders, valve problems,  etc.

There are  alarm and  engine  shutdown levels for oxygen (levels not •
given).   Oxygen typically runs 0.2 to 0.3% at the  plant.

Oil:  designation not available;  oil monitored weekly by outside lab.

Maintenance


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 RIC  engine shutdown is a preferred approach to gas  limitation  since
 ratio  of power produced to incremental  O&M (which is  relatively  load-
 independent)  can become unfavorable.

 Maintenance:   four top ends for every bottom end. Maintenance  is planned
 at ends  of specific intervals,  (8,000 hours from case studies),  not
 based  on observations except in special cases.

 Turbocharger  maintenance more frequent  than with natural gas.


 INTERVIEW 4:   GSF ENERGY/AIR PRODUCTS
 Interview with Paul Persico,  Brian Pell and Thomas  Normoyle, May
 27,1992.

 GSF's  principal activity is purification of LFG to  pipeline quality.
 They purify at given sites by first pre-treating in a solid adsorbent
 bed  which contains,  among other things,  activated carbon and sulfur
 removal  sorbents.   The gas then passes  on  to a  pressure swing  absorption
 (PSA)  system  where CO2  is  removed using a molecular sieve.   The current
 approach has  been in use since  1986.

 GSF  adjusts recovery to minimize N2 entrainment since there is  no easy
 way  to remove this gas from methane.  Extraction stress is minimized to
 limit  N2 to about  1%.  Adjustment is by opening wells that show no N2
 entrainment,  and throttling those  that  do;  well monitoring practice is
 typical  except for the N2  limit.  Measurement is by GC.  For low Btu
 uses criteria are less stringent,  adjust CH4 to 52-55%.  Combine
 vertical  wells and horizontal trench wells.  GSF does  a five-gas
 analysis  (CH4, C02, N2,  O2, H2) ,  of  what  comes into the facilities at
 least  daily.   Most sites are gas-limited.

 Condensate  removal in a vertical tank,  where velocity is reduced, then
 mist pad  in most cases.   Condensate treatment varies  by site,  according
 to needs  of local  ordinance.

 For pipeline  purification,  sites use a  single high pressure
 reciprocating design compressor to  extract  the  field  and supply gas
 purification  equipment.  Compression is  to range of  100-400 pounds.
 Compressor  down-time not available  but  down-time stated to be not as
much of an  issue as  other areas  of  the  process.  Dryness:  dew point -
 80°F (pipeline standard).

 Earlier  sites  used- Selexol™;  GSF then determined that the current
molecular sieve  approach was preferable.  Some sites  still use selexol.
 Selexol purification temperature is slightly above  the freezing point of
water.   GSF finds  that selexol  solvent  purification is straightforward
 and contaminant  buildup is no problem.

GSF states  it  does well  with carbon steel;  does not use stainless
piping.   Plastic piping up to first separator and then carbon steel
 after.

Overall on-line  time is  over 90%.  Greatest  amount of down-time  is
 because of  the pretreatment section.  Greatest fraction of the
pretreatment  section down time  is  for scheduled maintenance, principally
 changing  iron sponge which is used  for  sulfur removal.

 Breakeven scale  might be of the  order of 3xl06 cubic feet per day of
 incoming gas.   Breakeven sale price might be in the range of $3  to $4
per million Btu.
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 Maintenance:   Replace pretreatment column packing once every 6 months.
 The pretreatment column acts as a guard bed to the PSA molecular sieve
 column.   No replacement of the molecular sieve column has yet been
 necessary at  any site.

 No plans for  any major changes in gas pretreatment section.


 INTERVIEW 5;   RUST ENVIRONMENT AND INFRASTRtTCTDRE/WASTE MANAGEMENT OF
 NORTH AMERICA
 Interview with Chuck Anderson,  May 5,  1992.

 WMNA has assembled good statistics that indicate  that 56% of energy
 equipment down-time is  attributable to gas system malfunctions/problems.
 Probably about 2/3 of energy sites are gas limited and 1/3 have excess
 equipment capacity.

 Common design saves design costs at sites,  allows economical stocking of
 more spare parts (Markham,  1992).   Stocking is.such that it  permits
 ready replacement of entire RIC engine assembly if needed.

 Monitoring
 Gas  grab samples from wells are monitored for  N2 and O2.  A high N2  level
 (8 to 10%)  indicates potential  overpulling.  An 02 level of  1% or above
 is a sign of  leaks or other problems.   At the  plants,  the gas is again
 monitored for C02, CH4,  N2  and O2 by GC.  WMNA aims for  "quality of gas
 before quantity"  and maintains  a CH4 set point of 53-54%   (may be lower
 in some  cases such as where system is  trying to control migration).
 Methane  concentration undergoes seasonal  changes.

 Chlorinated and fluorinated compounds  are analyzed,  as well  as  a list of
 40 or so other compounds.   Chlorine compound concentration varies  from
 site to  site  by a factor of five and averages  about  150 micrograms  per
 liter (or 5 micrograms  per Btu).   NMOCs concentrations are typically
 1,200 ppm as  hexane;  H2S averages 30 ppm commonly up to 100 ppm.  Other
 WMNA data were not available as of  interview.

 Pretreatment

 Gas  pretreatment  characterized  by WMNA as  "moderate  capital  and  low
 maintenance".   Pretreatment consists of:

    •  Condensate removal  with tanks at line low  points,  placed
       strategically around the field.
    •  Knockout tank; WMNA terms "suction scrubber."  Condensate slugs
       once a year or less.  Has,  very rarely  overshot suction scrubber
       and reached equipment.  Slugs can be associated with  cold-
       weather startups.
       Mesh pad (i.  e.  demister; shoot for taking out 95% of entrained
       liquid with the  demister).
    •  Compression (to  outlet pressures depending on use).
    •  Gas cooling (to  design dewpoint about 80°F,  or to 10-15°F above
       ambient for RIC  engines; to about  90-100°F for turbines).
    •  Finer  filtration (3 micron cutoff  with  coalescing filter; 0.3
       micron for turbines)
    •  Gas reheating (to ca. 20°F above dewpoint  for engines; to 160°F
       for turbines).

 Skid  cost  for  this stated  at "anywhere  from  $150,000-200,000"  Figures
 for parameters  above  are approximate.

Compressors


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 WMNA uses low pressure compressors  and favors positive displacement
 rotary lobe types;  mostly Roots,  800-1200  cfm.   Compressors  used are
 belt,  as well as  shaft driven.   Gears  are  changed out  to  match
 speed/capacity to gas pumping needs.   Usually the compressors  are
 somewhat oversized for expected gas flow.   Cast iron interior  compressor
 parts come in contact with LFG;  no  corrosion problems  seen with  this.
 Compressor down-time:   due to maintenance,  less than 1%,  and due to
 problems,  less than 1%.   Overall, down-time less than  1%  on  low  pressure
 and  on the compressors for the high pressure turbines  about  3%.

 Corrosion
 Corrosion in pipes  and process equipment is prevented  by  use of
 stainless or epoxy  coating.   Bare carbon steel  avoided everywhere,
 except in the compressor.   Corrosion of heat exchange  equipment  for
 post-compression  cooling of high pressure  gas to turbines has  been seen.
 Had  to replace some of the header boxes on the  tube  bundle after they
 corroded out.

 RIC  Engines
 WMNA uses Caterpillar  3516 series engines  with  an approximate  output of
 800-815  KW on LFG.   The  newer engines  are  "low  pressure"  types which
 were adapted for  LFG by  Caterpillar  (Chadwick,  1990) .   Some  older models
 are  conventionally  turbocharged and need a  separate  auxiliary high
 pressure (35  psi?)  LFG compressor.  Low pressure engines  are giving
 9,760  Btu/KWH (LHV)  of electrical output (with  generator  loss),
 operation on average is  10,670 Btu  Ihv/KWH  after parasitic losses.
 These  translate to  about 11,000 and 12,000  Btu/KWH HHV respectively.
 Hours  on "high pressure"  are about 28,000  and on low pressure are
 23,000.

 Valve  stems/guides  are chrome-plated.  Jacket water  230-240°F.

 Final  filtration  for Caterpillar engines:   filters with technilab
 elements,  3 micron  cutoff;  designed for 1/2  psi  pressure  drop.    Last
 filtration between  cooler  and preheater on  the  engine  skid.  Filters are
 trouble-free.

Methane  to engine monitored  once an hour with a  GC system (Daniels).
Has  full  computer which  logs  operating hours  on  equipment, fuel  flow,
and  other  information.

Oil  used:  DA Blueflame  type  BG, SA 40 weight oil, viscosity 13.5
 centistokes at 100°C;  nominal TBN is 10 (although usually found  to be 9
or 8.5 on  initial testing).   Change interval  about 750  hours. Oil
analyzed  twice a month.  Oil  filter is a Nelson-Winslow unit which
 supports  the  TBN,  i.e.,  filter contains base  which dissolves to  replace
 that depleted in  the oil in  use.  Oil reservoir  temperature  at 210-
 240°F.  Oil change  requires  about 150 gallons.   Engine  oil consumption
other  than for changes averages about 2 gal/day.  All  oil-associated
costs  stated  to run about  $20,000 per year.

Fuel meterina/carburetion  approach:   based  on keeping  exhaust oxygen at
7%.   (1% O2 triggers alarm, 3% a shutdown).  Periodic adjustment  is
necessary  since relative mass  flows and s'toichiometry vary as relative
 fuel/air  temperature varies.  Adjustments are by operator and occur only
as frequently as exhaust gas  O2 is monitored  "maybe once a day—maybe a
 few  times a week"  by a hand-held portable meter  (Teledyne).  LFG exhaust
oxygen sensors do not  currently work.  WMNA  does  have an  exhaust gas
temperature criterion:  Under 1,200 degrees,  and  typical values average
close  to  1,100.  Higher  temperature is stated to  be  associated with
accelerated,wear.
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 Set  spark to  25-30°  advance,  adjust based on exhaust gas  temperature,
 retard  if detonation detected;  try to run without detectable  detonation
 (this contrasts  to Cat  recommendation which is  to run  just  at advance
 where some detonation is  detected). Normally don't  adjust spark much.

 Part load operation  is  said  to  be good down to  50%.  Heat rate at  50%
 load =   11,620 Btu/KWH  compared to 9,700 Btu/KWH at full  load (both
 LHV) .

 Deposits:   occur in  combustion  chamber walls, top of piston domes,
 (where  too much  buildup is associated with detonation) and  occur all the
 way  into  the  exhaust system.  Deposits are mostly silica  and  calcium,
 and  part  may  come from  oil ash.  A worst-case sequence of events can
 occur where deposit  particles cause scoring, then blowby, allowing more
 oil  to  come in and creating more deposits.  Deposits stick  to
 turbocharger  expansion  section  parts, or flaked off parts hit expansion
 section and cause damage. Because of deposit problems, turbochargers are
 now  removed and  replaced with each top end overhaul while the old ones
 are  cleaned up.  Deposits stated to be the biggest problem.seen with 1C
 engines,  as compared to such engines operated on natural  gas.

 TOD  end overhauls at  Caterpillar's recommended interval of  8,500 hours
 (apparently), based  on observation of detonation which mandates deposit
 cleanout,  and oil consumption which indicates guides have loosened up.
 Bottom  end expected  at 30,000 hours or more, (not there yet).  Top ends
 relatively inexpensive at $16,000 per engine,  bottom ends more in
 neighborhood of  $40,000 to $50,000.   Engines 95.5% on-line  (4.5% down
 time) when gas is available. Possibly an even split between scheduled
 and  unscheduled maintenance.  Wear:   See some valve wear, when going
 beyond  recommended life on the valves.   Valve faces show  erosion grooves
 at that point.

 Engines do  fairly well on emissions:  however engines may be on occasion
 above the  2 g/hp.hr Cat says should be attainable.   WMNA does  not "try
 to permit  right  to the manufacturer's guarantee" but leaves a  little
 leeway.   WMNA goes to turbines rather than operate too close  to NOX
 limit at a  given  site.

 Gas Turbines
 Turbines are mainly Solar Centaurs,  producing 2,800 to 3,500  KW net on
 LFG.   WMNA  does not know of any specific materials changes made for
 turbines.  WMNA prefers RIC engines  over turbines.

 Fuel metering, control and handling
 Each turbine site has a GC and gas to each turbine is individually
monitored.  Injector orifices in the combustor doubled in number to 20
 to allow sufficient fuel influx.  Also doubled fuel trains to  fuel
valve,   loader valve,  and primary and secondary shutoff valve.  Turbine
 output normally controlled by temperature topping;  measuring  temperature
at point between second and third blades of expansion section  and
 increasing  fuel until temperature set point is attained.   With turbines
 the alarm  temperature is only 15°F above,  and trip  (shutdown)
 temperature only 25°F above the recommended operating temperature,  hence
 increases  in LFG methane can easily activate (undesired)  turbine
 shutdown.  WMNA consequently operates temperature topping set point a
 little  lower than natural gas practice.

There is higher gross power on LFG than on natural gas.  This  causes
greater load on gearbox and is stated by WMNA to be associated with more
 frequent gearbox  failures.

Wear and deposits:  Deposits containing silicon and antimony, among
other things,  have built up on turbine blades  and tips at sites;


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 principal  problem was  at  the blade tip on a part termed the tip shoe
 (minimizes blade-housing  clearance). This causes extra overhaul work.
 Also,  unexpected turbine  damage problems at two sites occurred with
 carbon deposit  on combustor fuel  injector (Schlotthauer, 1991) .   It was
 overcome by gas cleanup modifications including a coalescing  filter and
 delivery system design changes.   Another infrequent source of damage  is
 foreign object  ingestion.  One case was due to ice.

 Operators  who understand  turbines well are harder to find and turbines
 are  harder to troubleshoot.  Troubleshooting can be time consuming.

 Turbine turndown is poor  since air compression work, a high fraction  of
 even maximum output, is fixed regardless of fuel burn and can consume
 all  expansion section  power at even moderately lower fuel inputs.

 Turbine overhauls:  Intervals of  30,000 hours, more or less. Cost about
 $150,000.   Overhauls based on various checks:  borescope combustor,
 compressor and  turbine section.   Look at compressor discharge pressure
 and  turbine power output  at temperature topping and look for any
 degradation.  Vibration monitoring and lube oil analysis also done.

 On-line time is  stated (published) by WMNA to be 94% (Markham,1992) .
 Scheduled  down  time is about 2%.  There are 3 maintenance shutdowns per
 year so unscheduled/scheduled maintenance time is in a ratio of 2:1.
 Fuel gas compressors have about 3% downtime; their maintenance is
 scheduled  simultaneously with the turbine maintenance.


 INTERVIEW  6s  CATERPILLAR
 Interview  with Curt Chadwick,  May 7,  1992.

 Background note:   Engine being discussed is a Caterpillar 3516 RIC
 engine, nameplate  net approximately 800 KW.   Heat rate near 11,000
 Btu/KW  HHV  (Cat.  quote 7270 Btu/hp.)   Design adaptations for LFG are
 discussed  in Chadwick,  (1990).   Specific materials adaptations to LFG
 not  given.

 One  advantage of  a low pressure RIC engine is that one compressor can be
 avoided.   A low pressure engine cuts capital by compressing fuel and
 gas  together with  the turbocharger.   Parasitic load is minimized by
 compressing  fuel and gas to only the minimum pressure required:  the  20
psi  manifold pressure - Lowered capital and parasitics are independent
 of the  need  for only a low pressure auxiliary blower.   No problems seen
with turbocharging the fuel-air mix as opposed to the normal practice of
 turbocharging solely air.

Gas  consistency is important (implying variations in it,  typical of LFG,
can  be  an  important concern—this is so for power output,  other
operation,  and emissions considerations).   Inadequate gas supply,  less
 than forecast,  was noted by Curt Chadwick to be a frequent problem;
 field overpulling was noted to be a problem.

Any  low pressure gas compressor—variable or constant speed—that is
reliable can be satisfactory—2 psi delivery pressure down to below 1/2
psi  (engine  needs  5 in. H2O) .   Ideally downtime  limited  to  1%  or less

Stainless  steel or use of epoxy coatings with carbon steel are observed
 to cure corrosion  in gas handling equipment.

Contaminants:  Chlorine compounds are most important;  should not exceed
 40 microgfams per Btu.   Corrosion/maintenance increase with chlorine
compound content.  Chlorine analysis  on startup is recommended.  One way
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 to remove chlorine compounds might be to dry the gas and then filter it
 (0.4 micron).   Sulfur not normally a concern.

 Caterpillar promotes LFG drying and believes it is cost effective  ("A
 net winner; however, cost tradeoffs are not fully worked out"). Gas
 drying by refrigeration preferred down to dew point ca. 38°F because it
 takes out corrosives like organic acids and is also-somehow, mechanism
 not known—effective in preventing deposits in engine that otherwise
 occur without it.  Gas refrigeration stated not a major parasitic load.
 Oil life is improved with refrigeration drying (ca. 600 hrs interval
 between changes goes to 1,200 hrs). In any case free water in the gas to
 the engine is to be avoided.

 Condensate carry through will be associated with short oil life and high
 wear metals.

 Catalysts don't work; emissions considerations limit lean burns to four
 per site.

 Alternate fuels; easiest to switch over (say switch over one of 3 or 4
 engines) to all natural gas.  Feels LFG/natural gas premixing equipment
, and consequently operation on LFG/natural gas blends cannot work too
 well.

 Carburetion:  Based on exhaust gas oxygen and on methane content of the
 LFG; make adjustments to the fuel/air ratio "by microprocessors based on
 methane percentage".  Control the LFG and air temperature for closer
 metering of ratio.  Can use field data for further adjustment.   Exhaust
 oxygen sensing,  as on conventional natural gas engines, is a problem
 because sensors don't last in LFG exhaust (Hydrogen Chloride attack)

 Oil
 Several kinds of high Brake Mean Effective Pressure (BMEP)  natural gas
 engine oils are available with TBN=5 or greater.  Change intervals vary
 depending on circumstances from a low of 400 hours to a high of 2,000
 hours.   Change intervals based on analysis and experience;  parameters
 include oxidation, nitration,  TEN depletion,  wear metals.   No additional
 actions needed'in regard to oil filtration.   Initial operation:   monitor
 the oil more frequently.

 Crankcase ventilation:   a measured amount of air circulates through the
 crankcase by design,  no modifications needed.

 Jacket water temperature;  230°F or so unless heat recovery is practiced,
 in which case it can go up to 260°F.

 Adjust spark advance by detonation based control;  optimum advance is
 where there is minor detonation.   (New 3,600 series engine will have
 more sophisticated control:   sensors will assess combustion speed and
 use the information in feedback control of carburetion and spark
 advance).

 In terms of operating ease and efficiency,  performance on turndown is
 quite good down to approximately 50% of maximum load.

 Deposits, though a problem,  do not normally result in wear.   Deposits
 chipping off can however damage turbocharger.

 Top end overhaul is normally based on blowby,  the consequence of wear in
 the valve guides,  and valve face regression.   For major overhaul of
 pistons,  rings and liners etc.  look at blowby,  oil consumption and
 relative power.   Deposits can trigger overhaul.
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 Emissions  not too significantly different  from natural gas; 98%
 destruction efficiency of NMOCs stated  to  be achieved.  Independent  test
 outside  Caterpillar has shown that destruction efficiency is much
 higher.  Exhaust gas temperature not  (at least normally) a concern.

 Cat will routinely guarantee operating  costs/KWH at between 0.7 and  1.2
 cents/KWH  depending on various factors.

 In summary Caterpillar's principal recommendations and suggestions are:

    •    Thorough condensate removal.
        Refrigeration  (expressed as "gas drying"  by Caterpillar).
        Chlorine content below 1,000 ug/liter  (in alternate  terms  40
        ug/Btu).
    •    Filtration criterion, 98% of particles  0.4xlO~6 m or larger.
    •    Use of high TEN, high Brake Mean Effective  Pressure natural gas
        engine oils, of which several  are available.
    •    Frequent oil analyses on start-up until operating experience
        indicates these can be lessened.

 If pipeline gas  supplementation is needed,  Caterpillar recommends that
 one or more engines be fully dedicated to natural gas.  This would
 minimize control problems which might occur with blending.   Replacement
 of the turbocharger expansion section with a cleaned, rebuilt spare  is
 recommended if gas  refrigeration is not practiced or if deposits are
 observed.   Other operational  aspects are largely identical to the
 engines' operation  if  it were fueled by pipeline gas.

 For comparison the  recommendations from Waukesha are included below:

    •    LFG refrigeration pretreatment,
        Stringent filtration,
    •    More frequent cleaning of fuel metering equipment than on
        pipeline  gas is advisable, particularly when gas pretreatment is
        less stringent (i.e.,  no refrigeration).
    •    Engine coolant temperature 220-240°F.
        High TEN oil.
NON-TECHNICAL ISSUES
                     CAPITAL CORPORATION
Present:  G. Deane, J. Pacey, and S. Thorneloe, May 18, 1994.

Palmer has been in the LFG end use business since 1983.  They have two
boiler use projects; Raleigh, NC., and Scholl Canyon,  Glendale,  CA.
(under construction).  Palmer also has one reciprocating internal
combustion engine  (RIC) project at Central Landfill in Rhode Island, CT.
They are now looking at a LFG conversion to pipeline quality gas
project.  Palmer has developed electricity generation projects at
Burbank, Marina, Southeast, and Yolo, all in CA.  The Marina and Yolo
projects were sold and the other two are now closed due to expiration of
Standard Offer 4  (SO#4) utility contracts.

Barriers are business issues not necessarily unique to LFG.  For
example, an LFG project has the same pipeline-related issues as a non-
LFG project.  However, for LFG you will probably need a separate
dedicated pipeline because LFG cannot be transported through existing
gas pipelines.  In the Raleigh project, the local utility complained to
the Public Utility Commission (PUC) that the LFG project was encroaching
upon their franchise territory.  However, the PUC decided in favor of


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 the  LFG project.   This delay added several  unexpected,  extra months  to
 the  project schedule.

 Financing
 Palmer had a funding problem in the Glendale  project, although not
 because it was an LFG project.   The project wasn't  big  enough for the
 lending institutions.   Also lenders wanted  an environmental audit
 because environmental liability could lead  to project foreclosure.   An
 audit  would undoubtedly cause considerable  time  and money expense, as
 well as uncover many issues of  potential  risk.   It  took some time and
 effort to convince lenders that the CERCLA  exemption sufficiently
 protects them and the audit was not required.

 The  small size of these projects,  coupled with limited  experience,
 developing technologies,  and issues of  lender liability under Superfund
 create a general  reluctance by  lenders  to become involved in LFG
 projects.   Even at a size of $10,000,000  the  project size is too small
 for  large lenders so the mezzanine firms, or  a few  specialized banks are
 the  lenders.   This increases the project's  interest rate by about 2% or
 more.

 Most landfill  owners/operators  know their business, but  do not know  the
 energy business.   Without expert energy negotiating skill, they may  have
 difficulty when they deal with  a utility  or an industrial customer.
 They will probably not know about  state Public Utility Commissions
 (PUCs).

 Taxation
 Federal  reserve rules  limit banks  to  a  maximum of 25% equity investment
 of a Section 29 LFG project,  however  they can  do  99% of  a low income
 housing  project because it is exempt.   If we  could  see  the rules changed
 to exempt Section 29 projects it would  facilitate bank involvement.
 Friday's  Wall  Street Journal  noted that the IRS  is  trying to regulate
partnerships established  for tax-oriented financing.  Private developers
do bring  in tax-oriented  investors; the IRS says  it will look at the
 intent of  Congress  and allow people who invest in the low-income housing
 to continue.   We  need  to  have the  same  opportunity with  Section 29
projects.

There  is  a California  possessory interest tax where a municipal landfill
 is tax exempt.  If  a private  organization is working on  the landfill
with a LFG project,  then  the  private  entity will be taxed as if a
portion  of the property is private property.  The tax is calculated by
assessing  the  royalties that  you have agreed to pay to the owner.  They
 take the  forecasted royalty over the  project life (term  of the contract)
and  discount it at  say 8% to  bring  it to  af present value, and say that
 is the basis of the tax bill.   This happened at Yolo,  CA. - the tax bill
was  equal  to the  royalty  amount.  This  in effect says that because you
agree to pay the  municipality for  the gas,  the State has a right to tax
this amount, or a portion thereof.

Utilities
 "Our experience is  that we can  work with  staff.  We do not try to go
over the heads of the  staff.

If a utility changes their policy regarding interest in  an LFG project,
then some  difficulties  can occur;  for instance with Palmer's PG&E
projects  in CA.

A New England  Power (NEP)  representative  at a recent EPA meeting,
chaired by Cindy  Jacobs,  gave an excellent discussion of why NEP wanted
td do some projects.   The NEP issued a green RFP which was quickly
approved by MA; NH  took their time  in approving;  and RI  is giving them


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 grief.   The  NEP is  regulated by three PUC's  and  the  PUC's were  required
 to approve the NEP  program.   This  has added  at least a year  to  the
 process.  The'PUC's should be in agreement before  the NEP asks  for bids.

 Interconnects
 To know  what to expect with interconnects, you need  to have  experience
 and  familiarity.  The main thing to  be negotiated  is what you can do and
 what they will do.   Usually you are  at the mercy of  the utility.  If you
 can negotiate  you can save money.  A developer may not know  the cost of
 the interconnect initially,  but he should ask the  utility up front for
 the cost of  interconnect.   The utility will  require  a conceptual, or
 preliminary  set of  plans  for review.   The response for review depends on
 the attitude of the utility.   A period of from 30  to 120 days for review
 is reasonable  in our experience.

 The New  England utility would not  allow us to build  the power line.  The
 utility  built  the power line and we  financed it  for  about $400,000.  The
 same thing occurred on the pipeline  in Raleigh,  NC,  where the utility
 did not  want this project.   Rather than fight the  Raleigh utility we
 paid them to construct the pipeline.

 Air permitting concerns
 Air emissions  are definitely one of  the major issues.  In Palo Alto the
 Bay Area Air Quality Management District (BAAQMD)  wanted to  sum the
 maximum  emissions from the flare with the maximum  emissions  from the
 engines.  We explained that  there  was only a certain amount  of LFG - it
 either went  to the  flare  or  to the engines,  it could not go  to both at
 the same time.  They said each was a  point source!   There is no offset
 (avoided fuel  at power plant)  incentive for  these  projects.

 I believe we needed a.permit to add wells,  at least  on our Burbank
 project, but it should not be  necessary.  The regulators create
 difficulties for adding environmental  control equipment.

 It would be  helpful  if EPA could give general guidelines to  states
 relative to  LFG recovery  operation.   Where extraction systems are
 considered environmental  control measures,  they  should be exempt from
property or  state sales taxes.   Exemption from our RI project was a hard
 sell because a  landfill does not fit  the normal  exemption definition
 (usually this  involves a  pollution control system placed on a stack for
a manufacturing facility).   We are generating emissions because we are
 extracting gas  from a landfill.

Boilers
Afraid that  LFG may contaminate their  equipment,  neither Ajinomoto (in
Raleigh) nor the City of  Glendale  initially wanted to accept LFG in
 their existing boilers.   Palmer provided a new dedicated boiler for
Ajinomoto with the  stipulation that it would only burn LFG.  At Glendale
 the LACSD helped convince  the  City that LFG would not harm their
boilers.  There is  a mind set  in industry that LFG is a dirty gas,  so
 they do not want to  handle it.

Boiler installation may,   or  may not be, expensive depending on boiler
 size and/or  permit  compliance.  At our future Milliken Landfill project
 in San Bernadino it would be very  expensive  to put in a separately
dedicated boiler and get  it  permitted through the  SCAQD.  It would be
much easier  to get  this project on line by using existing boilers and
 simply adding  on to  existing permits.  There is  an iridustrial customer
near the Milliken landfill  in  San  Bernadino who  simply refused to
 consider taking the  LFG in his existing boilers  or steam turbine.


 INTERVIEW 2;   BROWNING-FERRIS  INDUSTRIES (BFI)


                                   D-16

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 Present:  John Bean and 'Richard  Oakley  of  BFI, Michiel  Doorn,
 John  Pacey,  and Susan  Thorneloe,  May  18, 1994.

 BFI has  five existing  projects,  three U.S. reciprocating  engine  (RIC)
 projects, a  U.S.  pipeline quality project, and a gas  turbine project at
 the Packington Estates Landfill  in the  U.K.  Gas turbines are planned
 for four  future U.S. installations using combined cycle,  heat recovery
 steam generators with  turbines.   The  first may be operational by January
 1, 1996.  Several projects have  a nearby industrial customer, which may
 provide an opportunity for a potential  boiler customer.   Another 12 U.S.
 installations  and one  Canadian installation are planned for the future
 using RIC engines.
At smaller plants  the cost is relatively high and thus a barrier; on
larger projects  the cost may be spread more easily.   In some cases the  •
utilities work very well with us.  It is an internal  management decision
or policy on how easy or difficult they elect to be in regard to LFG
projects.  One utility gave us an interconnect estimate and said this is
it for the interconnect.  We felt the cost estimate was high and hired a
local engineer familiar with interconnects.  We successfully argued for
a lower cost; this did not require much work because  the utility
negotiated reasonably.  The utility did not want to do much work on our
behalf but were  willing to listen if we did the work.  A few other
experiences with interconnect costs have been more difficult.  Our range
of interconnect  cost is from $60,000 to $600,000 for  3 to 12 MW of
capacity respectively.

Utilities
The time and degree of caution the utilities have in  working on your
project depends  on the utility i  One common thread is that they want to
do it right and  time the interconnect to coincide with the contract
start date.  This can be troublesome because you would like to have it
done early so you can get the plant running earlier to get the bugs out
of the system.

We identify utilities in States where there is a PUC  or legislative
requirement to buy renewable power, for example,  Michigan and Illinois
or where environmental externalities are considered by the utility in
determining avoided costs, such as Massachusetts.

Wheeling
The Federal Energy Act of 1992 (October) provides the requirement for
the utilities to wheel the electricity to wholesale customers.   If we
wanted to wheel  say through Houston Lighting & Power,  to some municipal
utility on the fringe of the service area we now have a reason to be
heard which we didn't have before.  They can still set their own rate
although there are some suggested wheeling rate ranges set by the State
PUC.   This is similar to the avoided cost program where they are to
determine how much it cost them to transmit the power and that is what
they would charge someone.  Wholesale wheeling disputes have to go
through FERC, retail wheeling is something the state  PUC's have the
authority to do.   If the wheeling costs were on a realistic cost basis
it would probably open up some opportunities for us.

Most utilities have plenty of capacity today so their contract buy-back
rate does not include a capacity payment.  Very few projects are getting
done because the avoided cost is too low.  But almost every one of these
utilities will eventually need capacity and have a higher avoided cost.
In a span of 20 years the kWh price may go to 7-8 cents.  If a utility
were willing to net-present-value that back and levelize some payments,
you would see a  lot more projects. You would have a levelized payment in
the early years which would help us get financing and justify the


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 project.   In  later years when  the project is paid  for and you  are
 working off avoided energy at  your plant, pricing  doesn't have to
 escalate.
A  barrier  for  a  third party developer is that to be a Qualified Facility
 (QF) you can burn  no more  than 25% natural gas, annually.  In  states
that have  special  LFG incentives, there is a requirement  that  you have
to maintain the  QF status.  So if you have a 20 year contract, you have
to maintain the  QF status  or you are in default. Obviously, it is very
difficult  to predict 20 year gas yields.

If the utilities would allow you to reduce your capacity  over  time, it
would be helpful.   Contract flexibility would result in an increase in
the number of  LFG  projects financed and brought on line.

One thing  that would certainly help projects would be if  it were
possible to wheel  (retail basis)  power.   Unlike the energy act of 1992
which requires them to wheel for wholesaling there is no  requirement for
retailing.  Industrial customers are paying over 8 cent per kwh in many
areas and could benefit from retail wheeling by having lower operating
costs which would  mean lower costs to the consumer for their products.
BFI is looking for between 5-6 cents/kw to make these projects viable.
A great difficulty is the attitude of the various air
agencies/authorities.  There seems to be no consideration or forgiveness
for the fact that the gas will be generated regardless of whether there
will be an energy project or not and it is going to have to be flared.
A lot of States are talking about offsets.
So far we have not seen an increase in capital, or operating, costs as a
consequence of air board/agency requirements.  There has been discussion
of SCF early in the process but BFI has been able to produce certain
vendor documentation stating that catalytic converters don't work.

One environmental barrier which has been raised is electromagnetic
fields.  We have been able to deferid this by bringing in some experts
who testify the phenomenon is related to the amount of power which is
being transmitted and the transmission line configuration.  This has
only been raised once.  We analyzed EMF measurements in a field prior to
any development, and projected what they would be after development.
This demonstrated our project had no impact.

           al Externalities
When a utility calculates their avoided costs,  they should consider ALL
costs of generation, including pollution.   LFG projects have lower SO2
and NOX emissions than comparable  coal  burning  facilities  and natural
gas plants (if you consider you will be eliminating emissions from the
flare) .  Additionally, there is no ash disposal resulting from LFG
projects as there is in coal plants or municipal solid waste to energy
plants.  These social costs can and should be monetized to reflect costs
of power generation.  Renewable projects,  of all sorts, could benefit
from this levelized playing field.
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 INTERVIEW 3;   ENERGY TACTICS.  INC.  (ETI)
 Present:   S.  Drake,  J.  Pacey,  and S. Thorneloe, May 18,  1994.

 Barriers  may  not  be  the right  word; perhaps hurdle would be a better
 term.   "We have never faced an insurmountable barrier, we  face many
 hurdles."

 ETI's  projects are all  electrical using RIC engines.  We are considering
 using  an  external combustion engine at a site in NJ; this will be a
 steam  plant that  may go forward next April.  ETI provides all aspects of
 project development.  We will  obtain permits, design the installation,
 and  perform operation and maintenance  (O&M) activities.  O'Brien does
 the  same.   We will do O&M separately, and prefer to do O&M with ETI
 designed  systems.

 Air  Permitting Concerns
 A problem with the air  regulatory agencies in New York and possibly
 other  States  is that  there are  no guidelines or even rules of thumb.
 The  problem is that  each application is reviewed individually and
 decided upon  individually by the area air board.  If we  submit a plan to
 the  New York  State Air  Board we would not know that a certain emission
 limit  would be accepted from one project to the next.   New York has a
 number of  independent Air Boards which answer to Albany  (similar to the
 California system).   Albany will only get involved if the permit
 submitter  is  totally  frustrated, or maybe missed the deadline.  This
 creates a  good deal of  delay time during which we cannot even go to a
 financing  source  and  say we are going to build a project, because we do
 not  have  the  permits.   We cannot satisfy the lender that we will obtain
 the  air permits as there is no State guideline or letter of intent to
 accept the design; we have nothing to show that we almost have a permit
 approval and  almost have a done deal.  There is a big question mark from
 a lenders  standpoint  as to whether the Air Board permit will be
 attained.   Lenders don't know that permits are basically tied up before
 they get serious  about  the project.

 Permit timing includes  up to 45 days for permit review and notification
 as to  whether the  application is complete,  or not.   This can cause an
 unnecessary delay, which happened to us at Oceanside.   Luckily,  the
 financing  for this project was coming from close associates who allowed
 us to  start construction before the permit was in our hands.  Here was a
 case where we were way  ahead of the Air Board and they had exceeded the
 response time,  so  we  wrote to Albany and said we were being delayed.
 Albany can decide  the permit looks complete and instruct the Air Board
 to notify  ETI  thereof,  or they can say that the permit is incomplete.
 That gets  them  off the hook and they turn it back to us and we start the
whole  clock again.  In  this case they took the safe alternative — the
 permit is  not complete.  The matter was resolved quickly after that, but
you can imagine how that can upset the developers and/or lenders.   The
 time for their  responding - in this case they have a definite guideline
 how  soon they must respond,  but if the response is negative you are back
 at the  starting gate  again.   That time took well over 3 months to get
 the permit  in our  hands.  If a simple set of guidelines were put forth
 by the  DEC  anybody should be able to review a project submittal and
 determine  if  the project as proposed is going to be acceptable.

 Even if various districts (in New York) have greater needs for
 restrictions,  or requirements,  they should be able to codify,  or develop
 specifics  so  the developers have guidelines.   They should be able to
 give us a  chance to assess our approach and give comfort to lenders and
project participants.   If anything the current approach is getting
worse.   We  find the same issue in other states.   We had a New Jersey
 case where we took over an O'Brien project where O'Brien wanted us to
 come in and start  operating.   But they did not have an operating permit


                                  D-19

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 at the time,  this caused uneasiness.   We did have O'Brien's guarantees
 that the permit issue would be resolved but that  is  all  we had to go on.

 The Air Board conditions and requirements have  not yet caused a
 significant increase in equipment capital or operating costs.   We have
 not found it  too costly to comply and that environmental opposition is
 not too high.   Dealing with different Agencies  is not considered a
 significant hurdle,  maybe even a benefit.   The  bureaucracy is not too
 large it is just disorganized.

 Interconnects/Utilities
 We pay a lot  on the interconnects.  When we did our  first job at
 Smithtown East (1 MW)  it was the first LILCO (utility) project as well.
 It was a grass roots cooperation from the working people that made it
 possible to bring the project on-line in that short  period of time.   The
 intertie cost  for this project was  about $20,000.  Interconnect costs
 have steadily  risen since that time.   The total interconnect cost at
 Hempstead was  $625,000 and that was a 4 MW facility.  While costs have
 increased the  service is still professional.  The people in the
 utilities who  interface with us have  never been a problem.   There may be
 bad utility policies,  but not people  with bad attitudes.   Interconnects
 do take too long to obtain.   You don't know what  it  will cost  and you
 started on a project with a big unknown -  the interconnect  cost.

 Financ incr
 ETI partners handle the financial arrangements  for the projects.   A lot
 of ETI's projects are funded on a recourse basis,  which  has its limits.
 Some associates can only obligate a limited amount per project.   Funding
 sources are varied,  but because the projects  are  of  a recourse type  it
 means that the people backing the projects can  only  obligate a certain
 amount of their wealth.   For ETI's  part the deals  include a percentage
 of the project.   Only one project is  entirely in  ETI's name,
 (Hempstead) .   It is  of the recourse variety where  it is  backed entirely
.by Rick Rose.

 ETI has gone the nonrecourse route; there  are a surprising  number of
 caveats and restrictions involved with this approach.  Somebody starting
 from scratch should  expect similar  difficulty.
Only one place where  we  had a  tax issue.  Onandaga landfill was assessed
a  tax similar to  the  tax applied on natural gas well heads.

Contracts are restrictive and  capacity and equipment limitations have
given ETI difficulties.


INTERVIEW 4;  GRANGER RENEWABLE RESOURCES
Present: R. Nuerenberg,  J. Pacey, and S. Thorneloe, May 18, 1994.

Granger development has  been limited to Michigan, however we are now
considering other states,  primarily in the midwest.  We have in-house
planning, design  construction  and operations capability.  This gives us
a  turn-key potential,  although our target market has not been truly
turn-key.  We will develop a project with the posture of wanting to own,
or have a large position in it, and preferably be the operator. We have
several future projects  where  we will be designer and operator, but a
minority partner  in the  overall project.

Granger plants are not real large; using Caterpillar 3516 engines,
ranging from 2 to 6 engines per plant.  We are responsible for 5 engine
plants today and  1 medium BTU  plant owning all but one of these.  We
have signed contracts to do 4  more by 1996.


                                  D-20

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 Most of our development experiences have been pleasant with relatively
 few difficulties.   Experience is very helpful in addressing new
 opportunities.

 Boiler Pro-iect
 Our one boiler  project,  Motorwheel,  had a number of minor  hurdles:

     •   Right-of-way was difficult but obtainable; primarily because
        most of the pipeline followed a railway.  The railroad wanted
        particular types of construction and materials used (steel
        pipe), which resulted in a larger project cost.   If the user had
        been further away, or if the user could not have  used all the
        LFG we had around the clock, we would not have done the project.
        This project was built in 1984-85 (the first LFG  plant in
        Michigan) .
        Client Education; the client was initially concerned with:


        •   boiler  emissions,
        •   operational problems,
        •   boiler  corrosion,
        •   scale buildup in tubes,
        •   reliability of LFG supply.

 The project  was part  of  the larger  landfill operation.  Therefore,
 interruptions were not as  critical  to  a  business  schedule  than  if the
 LFG-use activity were the  only activity.  The user would probably
 believe he would need approval from an air board  for permission  to use
 LFG -  it might be necessary to add  new discharge  conditions.  Therefore,
 the user will initially  have a reluctance to  consider LFG  use.   With the
 new CAA standards coming,  the users  will be more  inclined  to stay with
 what they know and what  they have and  will be reluctant to  change,
 making medium BTU projects more  difficult to  develop.

 Electrical Projects
 During the engineering and construction  of our sites, the  utility has
 been cooperative and  accessible.  Michigan has  "Public Act  2" which
 requires utilities to  purchase a certain amount of their scheduled
 capacity increase to  their system from solid  waste and hydro projects.
 All  Granger  projects  are Act 2 projects.  In  Michigan, if we had not had
 Act  2  we may have only one to two projects instead of our  current five,
with four under way.   The Act provides a price  floor on the rate
 structure and facilitates getting the  Power Sales contract.
Two difficulties with interconnects:

    •    costs are  high (sometimes with uncertain justification)  and
    •    interconnect decisions and cost are changeable.

In one case  the original  interconnect  cost was about $380,000 and we
experienced  a $125,000 increase midway into the project.  Fortunately
this was on  a fairly large project that could absorb the increase.  If
it had been  a two to three engine plant it would probably have killed
the project.  There is a  concern in fighting these adjustments because
it might create a precedent where the  utilities will always overestimate
so as not to have to defend subsequent design additions or policy
changes, which incur more costs.  The  only method a developer has is to
audit the actual costs and make sure they are real .

One issue we have discussed with the utilities is allowing the developer
to purchase  big ticket items  to control the rather large markup in
purchasing from a vendor. When utilities use an independent contractor


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 they do not necessarily go to a competitive  bid.   They  allow  a  number of
 contractors to bid on their contracts  and assign  the work.

 In our experience interconnect costs range from $50,000 to  $530,000,
 (2.4 to 4.8 MW).   The time spent on the  interconnect work by  a  utility
 that knows us is  usually reasonable, although  somewhat  lengthy.  When we
 work with new utilities that don't know  us,  we expect a time-frame  in
 excess of 6 months.   This is too lengthy and is thus a  barrier.  When we
 see a $500,000 interconnect cost, we question  our  approach  and  the
 utilities allocation.   We obtain expert  advice on  the electric  utility
 interconnect cost and review.   We believe we need  this  expertise on such
 projects.

 Michigan utilities are concerned about wheeling power.   There isn't any
 kind of wheeling  regulation in Michigan, except among utilities.  If  we
 were to get involved,  we believe the charges would be so excessive  that
 they would probably not support a project.

 Our cost to move  a project forward (excluding  extraction system and new
 CAA implications)  is about 5 cents/kwh.  This would apply to long term
 medium size projects.   Short term or large projects could be developed
 at  a slightly lower utility rate.

 Taxation/Royalties/Fees
 Our Michigan projects  are exempt from severance and sales tax.

 Regulation
 We  had one experience  that involved a 2-year court battle.  A local
 government chose  to  take issue with the  exemption clause in the Act that
 removed this type  of landfill  activity from  local zoning review.  We
 actually had the plant up and  constructed during the court battle.
 Fortunately enough the judge allowed us  to operate under certain
 operational constraints but nonetheless  it was under court sanction and
 court  review.  What  would have been very helpful would have been for  EPA
 to  say that this  is  a  technology which is an acceptable method  for
 handling LFG.  They  wanted us  to follow  the solid waste siting process
 similar to the steps in siting a landfill since we were building the
 system on a permitted  landfill.  That type of permitting would be very
 expensive and we would have wound up with a rather phenomenal condensate
 handling system and  treatment  plant and some rather exotic air pollution
 controls.   There must  be a .very clear indication or statement in the
 forthcoming CAA that certain technologies are acceptable for LFG
 utilization.   If this  does not  happen,  then the local unit of government
may  assume control and project  development becomes more uncertain.

Another landfill organization  has been arranging to pay host community
 fees to the Township.   This has  happened through several different
companies so  far.  They are paying a tax or host community fee on the
revenue of the gas,  some on the  revenue of the electricity.   When
 electrical projects  require these kind of undefined costs, it will
 impede  development.  In essence, a large project may be able to afford
 some community benefits,  a small project may not.

Air permits
Historically,  our projects  have  been able to exempt State air permitting
based on their size  and engine  type.   More recent projects have begun  to
run  into some  permitting difficulties including:  uncertainty,
 inconsistency, and lengthy reviews.   Although a concern, it at present,
has not hindered development.

Financing
Financing can  be difficult.  The last project financed required
 signatures for 62 documents.   Financing takes about 4-5 months of


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 intense discussion,  negotiation,  etc.   If  I have  one contract, as  a
 minimum I would probably put a  minimum  of  20 hours of time on  it myself
 and probably 5 hours of attorney  time.  Now multiply that by 62; that's
 a  lot  of dollars.

 Guarantees required  by lenders  can be scary.  Banks in general are very
 skittish about financing LFG projects without a lot of attachments to
 your other assets.   While we work through  banks,  other avenues are
 opening up.   Some will take  100%  of  the financing for a large equity
 share.   Several of our projects have been  funded  internally.

 Condensate
 Condensate is easily misunderstood, more from the technology side  than
 the regulatory side.   In Michigan condensate may  be discharged into the
 leachate management  system.   It cannot  be  returned directly to the
 refuse  without a permit.   We can  return directly  into a leachate
 collection pipe.  This has been a real  advantage  in Michigan.  It  is
 always  an issue in obtaining permits.   Condensate was a major focal
 point  in the court case that dragged on for two years (mentioned above).
 We  tested the condensate and reports indicated the condensate was  of
 lesser  strength than the leachate.  The equipment process stream at an
 electrical project dictates  the amount  and character of the condensate.
 Granger's design does involve refrigeration and thus produces large
 volumes of condensate.


 INTERVIEW 5;   RUST ENVIRONMENT  AND INFRASTRUCTURE/WASTE MANAGEMENT OF
 NORTH AMERICA
 Present:   C.  Andersen,  M.  Doom,  J. Pacey,  and S.  Thorneloe,  May 16,
 1994.

 WMNA's  most  recent projects  use the RIC engines, although they also have
 27  turbines  in operation.  They work with Caterpillar and have just
 accepted the  Cat 3600.

Utilities
You will  see  more power production by independents in the future than by
 the utilities.   Some  of the  utilities have reasonably well developed
 guidelines on interconnect-  and standard contracts;  they have been
 through it several times  (LILCO and Pennsylvania 'Power & Light).    Other
utilities have not been through it and quite often decisions have  to go
 all the way  to the top.   This slows things down and adds more risk to
 the developer.  We haven't had  a bad reaction from utility staff.   Our
 structure is  such that  we do  the permitting and the negotiations with
 the utility  simultaneously.  We don't have many projects that were
negotiated and then were  not built.

We have had a number  of conditions where we negotiate our expansion up
 front,   but always with  a  limit  on the capacity established in the
contract.  In other cases, when we are  in a position to ask for an
expansion, the utilities  typically want to look at a brand new contract;
avoided costs  have gone down, therefore we have changed market
conditions.

All utilities  are looking at the deregulation issue.   They are trying to
protect their interest  as best  they can.  As a result we see that
avoided costs  have gone down.   For example, we have a contract with
 Philadelphia  Electric Company; we signed a contract with them in 1987.
We were getting 4 cents/kw which was lowered to 3  cents/kw in 1989.
Today we  would be offered 2.8 cents/kw.   There is  no capacity with this
contract.  WMNA can do  a  project  for 2.8 cents/kw because WMNA owns the
gas, owns the  compliance  costs  and therefore when  you start offsetting
 those costs versus the  revenue  stream you can justify a cost.


                                  D-23

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 Usually it takes a certain amount of savvy and sophistication  to work
 with the utilities on this issue.  You have to keep their eyes open and
 know your options.  A project we are building in Danville,  Indiana right
 now -with PSOF Indiana - a good company - but as originally conceived
 they gave us an interconnect cost estimate of $225 ,000,  and as we got
 further into negotiation the cost jumped to $368,000.   There are
 utilities out there that try to get in the way,  but I  think they are
 just trying to be conservative and the view is that the developer is
 going to have to pay the cost,  consequently the cost is up.  Our
 cheapest interconnect is $10,000 and our most expensive is  about
 $1,500,000.

 Air Permitting/Environmental Concerns
 Greene Valley landfill,  DuPage County,  IL.   This county is  a
 nonattainment area for NOX.   We had attempted to permit a turbine plant
 there.   One of the problems  (not only in IL)  is that the States are
 still formulating how they are going to meet their  targets,  while the
 NSPS and the Ambient Air Quality Guidelines have been  out for  some time.
 In  IL there has not been a complete inventory of NOX emissions and so
 there will  not be any information on offsets available until 1997.

 The flare that was installed was not viewed as an offset source and the
 limit for a major source was only 25 tons/year.   This  is equal to about
 one turbine or just over one engine worth of LFG.   The landfill is
 currently producing about 6  million cubic feet of LFG  per day  or 3
 turbines  worth of power,  and ultimately will  be  producing about 12
 million  cubic feet of LFG per day.   You are dealing with a  State that
 hasn't decided how they will meet their guidelines;  any source is viewed
 with great  suspicion,  making any discussion very difficult.  The project
 is  currently on hold.   The old utility flare was permitted  for low gas
 flow and high emissions.   It took us 9  months to get the permit to put
 in  two new  utility flares with lower permitted emissions (better
 emission  control  and destruction efficiency) .

 Permitting  costs  vary depending upon the state and  area.  We would
 expect 6  months for permitting.

 There  hasn't  been much environmental opposition,  but always  some routine
 concerns.   If properly addressed,  you may actually  get  support.
 Education is  important.   Noise  is  a  fairly  significant  local concern.
We  always have found that with  our standard design we have noise data.
 We  have people visit our plant  sites,  this  helps  defray  some of the
 concerns.  We have  not yet had  the noise issue stop  one  of our projects,
we  have 'always found a suitable solution.

Condensate
We  look at condensate  similar  to leachate.   If the  site  has reasonable
 disposal  cost  then  condensate  is combined with the  leachate and not
 really a  problem.   I would say  that  our  sites  probably pay less than
 $10,000 per year  to  get  rid  of  condensate.   On the  turbines you have the
 issue  of  the  hydrocarbons that  fall  out  due  to the high  compression
pressure.  They can certainly  be a concern  as  it  can be  classified as a
hazardous waste generator.   Unfortunately for  Chemical Waste Management,
 Inc. a lot of  those  costs have  gone  down in  the  last several years.
At some projects we pay property taxes, at others we are exempt.  Taxes
can be a significant item, you could be talking $50,000 - $100, 000/year
for taxes .
                                   D-24

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 Additional Impediments
 One of the big impediments is the fragmented status  of  solid waste
 management — lots of landfills,  many with a several  owners.  You  have
 the disadvantage on the landfill side,  if you have the  same
 fragmentation on the development side it will be difficult to  get a
 significant number of projects done.   There are a lot of  people that are
 not going to wait until someone forces them to be in compliance before
 they do anything.

 The education effort for people to get familiar with the  business is
 extremely large.   Example -  We were asked to quote on the design  and
 construction and start-up of a project by the owner  of  a  landfill.  The
 use was as fuel  to a cement  kiln,  a near perfect use, a fairly simple
 project but a fairly long pipeline.   We put in a $900,000 bid  for the
 project,  start to finish.  Another firm quoted $350,000 to do  the whole
 project.   From our standpoint it would probably buy  the compressor skid,
 but not much more.   How do you convince an owner that something is
 seriously wrong.


 INTERVIEW 6;   LAIDLAW
 Present:  G.  Jansen,  J.  Pacey,  and S.  Thorneloe,  May  25, 1994.

 Permitting/Environmental Concerns
 I  (Jansen)  spend half my time on regulatory issues currently;  items such
 as  retrofits,  changes in rules and regulations  from  AQMD's, regulation
 changes from RWQCB's  (now we can't put  condensate back  into the landfill
 - can add $8,000  to  $10,000/month for condensate management),  and EPA
 changes in rules  and  regulations.

 It  may take two  to  three years to take  a project from concept  to
 actually getting  the  building permits and to where we can start buying
 equipment and start  the  project.   The most difficult items are the
 permits related  to air regulations.
 It  has  gotten a  lot worse  over the past  few years.   Our initial projects
 could be  put  together and  permitted within one  year  (1982 - 1983  time
 period).  Recently  it  took  over 18  months to obtain a gas  flare permit
 for a  site in Massachusetts.   It  took one year  to receive an air  quality
 permit  for a  reciprocating 1C  engine  project.

 Getting a permit  can  be  a  major problem.   For example in  CA we have been
 faced with AB 2588, Title  5,  Rule  834,  436.1  for H2S, 1150.1  for LFG
 retrofits -for NOx reduction,  and  the  RECLAIM program.   All add
 significant costs that, were  not  included in project  evaluations.   It is
 impossible to predict what Air Boards will  require.  Nonattainment areas
 are major problem areas  in terms  of trying  to regulate  stationary
 emissions to  the point where they  can be in compliance with State and
 EPA regulations.

 CA  Rule 1150.1 of the  SCAQMB requires integrated surface monitoring
where you walk 10,000  square foot  grids  and then take Tevlar bag  samples
 for  laboratory analysis.   To do a  large  landfill  monthly monitoring, as
 required  by the original rule  could cost  $70,000.  Dioxin has never been
 required,  although under Rule  AB2588  there  are  about 250  compounds you
have  to monitor.

There can also be conflicting  requirements.   For example,  in San Diego
 the RWQCB said that once a final  cover  is  in  position on a landfill,
nobody  can access the wellheads.   Air quality said this was unacceptable
 to  them because you have to  able  to make  repairs.  This occurred at San
Marcos  landfill where  one  landfill was capped and the County wanted
another permit to overlay  the  completed  landfill  by vertical expansion.
 Laidlaw wanted to extend the gas wells vertically through the existing


                                   D-25

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cap which contained a  synthetic membrane.   The water board wanted
lateral  extensions at  the edges instead of vertical risings.   They had
overlooked settlements.   Air quality saved the situation by  insisting
vertical rising of the gas wells was necessary.   This took a  3-4  month
period to accomplish. • This demonstrates the individual agency bias,
with little if any coordination for  the good of  the project,  and/or
practicality.

   Case History:  The New England Power Issue
   Another barrier was created by the PUC  in RI.  In spring  1994,  the Rhode
   Island PUC ruled that the utilities  would be paying  too much for  LFG
   generated electricity.   We have tried to get together with all  of the
   impacted developers and try to come  up  with a methodology to develop
   projects in the New England Power  (NEP)  jurisdiction.  Of the maybe five
   projects currently involved in this  issue, several are LFG projects.
   (Laidlaw project at Plainville, MA;  BFI  project at Randolph, MA; Bob
   Hawthorne and Ed Barie from Genesis  (a  waste heat project) at Johnston,
   RI;  a Soncook project in Nashua NH;  and Philips,  a landfill project
   located in Barre,  MA).   We have all  hired the same attorney.  RI took 23%
   of the power and NH took 3%.   The  MA PUC is now deciding  whether the
   commission will support LFG projects.   When New England Power came back
   with the proviso that all three PUCs needed to ratify the contract,  the
   negotiations broke down.

   NH staff rejected all LFG projects,  but  not the others, saying  that the
   NEP was paying too much for the power.   The LFG projects  were not
   demonstrable projects because  it was not new technology and LFG had to be
   collected and flared  anyway so the projects were  not  doing anything for
   the environment.  All  LFG projects  agreed to pay an up-front payment which
   was the net  present value of the stream  of payments over  and above the
   avoided cost so that  the rate  payers would be indifferent.  Because the
   avoided cost in NH was  only 3% of  the total power, we agreed to a single
   up front payment which  represented the overpayment over avoided cost.

   Then it came to RI which rejected  all alternative energy  applicants, not
   just the LFG projects.   They said  NEP was paying  too  much for the power
   and the rate payers would be asked to subsidize these projects.  We have
   worked out a program  of levelized  payments to RI  so the rate payers will
   not  be subsidizing  the  projects.   In RI  we would  agree to a refund of
   0.17 cents per generated kwh.

   Before MA staff ruled NEP withdrew all projects from  before the PUC.  All
   of this took place in early June because NEP was  filing new avoided costs
   which  apparently are  about 15% below the current rate of 2.7 cents/kwh.
   NEP  is claiming that  their new avoided cost is going  to be about 2.2
   cents/kwh.   That means  that any project  that comes before a PUC
   commission will  be compared to that  2.2 cents/kwh rate. One price bid was
   5.4  cents/kwh.   With  the  revised structure we propose now it is about 4.5
   cents/kwh.   We can't  do it for 2.2 cents/kwh.   Our operating costs are
   over 2.5  cents/kwh.

   This NEP issue has delayed our project schedule to date by about 1.5
   years.    NEP could have said the opposition from the  PUCs killed the
   projects  and they and the PUCs would be done with the projects.  NEP
   would  still  have garnered all  of the  favorable public relations value
   from their Green RFP.   All of  our project sponsors got together and
   threatened to sue NEP for breach of  contract.   That is the reason they
   came back to the  table.   The breach  of contract issue was that we found
   out  that  NEP pulled the contract application from MA  only hours before MA
   was  about to approve  it.   The  other  issue that NEP was concerned with was
   wheeling.  That  is the  real reason-  they preferred that all these
   projects  disappear at that point.  They are hiding behind the PUC issues.
   The  real  reason is that the NEP believes they will be forced to pay the
   higher rate  .   Avoided  costs in that  area are about 2. 75 cents/kw and
   the  feeling  was  that  the  new proposed rates will be about 2.0 cents/kw/.
   The positive is  that  NEP  seeing the  corner it was in was willing to
   continue  negotiations with the project sponsors to generate a contract.
   They could have  said  that is the breaks of the game and sue us.
                                    D-26

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       In the case of NEP, NH was only receiving 3% or less of the total  power
       from these projects and so the impact of the projects on the rate  payers
       would have been negligible .   Out of the many hundreds of MWs,  this whole
       activity related to LFG projects was less than  36 mw, very small
       potential increase.  The point was that NH staff felt that this was the
       edge of a wedge and if they allowed some increase in avoided cost  then
       where would  you hold the line.   They did not see this as new technology.
       They felt that flares had to be put in anyway as a control requirement.
       the fact that an electrical project was involved was of no significance.

       NH was the first on to reject the projects.  All project sponsors
       countered by agreeing to pay up front the net present value (NPV)  over
       payments.   RI cancelled all projects.  All agreed to take a lesser
       price.   This left only MA which was where the bulk of the power was going
       anyway.   Out of this the MA PUC was the most friendly to these  projects.
       The staff and commission had already agreed.  ,  and it would have  been
       published within hours of NEP cancelling their application.

       Levelized contract are in the same category.  Nobody will get 5 cents/kw.
       The only way we can do a project is to allocate some of our post closure
       costs at that particular landfill.  We do not have a royalty in our
       project  because it is a company landfill.  Our company landfill group has
       agreed to allocate some of the post closure costs to the revenue from my
       Ifg project,  so I can now accept something less the 5 cents/kw.    Neither
       is the extraction system cost allocated to this project,  it is  a cost to
       the landfill.   This is considered a special project and should  not be
       construed that this is a new pricing format for LFG projects.   However,
       industry should recognize that this is how projects are done today.  We
       are taking every advantage available in order to do these projects.

       I  am about to do the same thing  for the Cedar Hills project  in  Seattle.
       I  am also working with PugetPower (PP).   They are now saying that  the PUC
       is second guessing decisions  that PP made 10 years ago.   Some of those
       decisions are now being revisited by the PUC with arguments  that the
       utility  paid too much for the power.  PP is now skittish and this  project
       is going to be 15 to 20 mw.   We  have made it very clear that if the
       original proposal we gave to  PP  can be consummated then we have a
       project.  We have just commenced this discussion.   Politically  this
       project  is going to be at the mercy of the PUC.   They have mandated to
       lower  rates.

Interconnects
Interconnects always need negotiation.  It has occurred often  that  the
utilities gave us  one estimate and the final estimate came in at double  the
cost.  In CA a utility came  back to us 6 years after the interconnect and is
demanding payment  of additional interconnect cost  but without any backup of
the claim.   This  is a continued aggravation once the project  is  on-line.

Condensate
A lot  of landfills  will not  accept the condensate.   Where the  landfill  owner
is not a part of  the LFG project, it is not always easy, or acceptable  to
discharge the condensate back into the landfill leachate management system.
BFI claimed that  the EPA prevented them from accepting the condensate back
into their system at the Newby Island landfill as  a  force majeure item.   They
were referring to  the Subtitle D regulations.

Taxation/Royalties
Most states are interested  in obtaining tax revenues.   In NY  they tax you on
your revenue - gross revenue  earned by the facility.   There is no way that a
project  can ever  go down in  value, it can only go  up.   Every year the tax
increases.   It is  getting onerous.  Hawaii uses a  property tax assessment,
they exempt most  everything  (sales tax) but charge a fairly high possessory
interest tax which  is a fairly high cost for us.     .

Taxation boards are deciding  that LFG is a resource,  a reservoir, and if we
multiply the royalty paid to  the owner times 20 years and give it a value and
call it  a possessory interest,  then bring it back  to present value  and  assess



                                       D-27

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 a tax on this value.  If you are paying $12,000  a  year in royalty over 20
 years that is $2,400,000 and  the gas is taxed at  say 1.5% of this value.  It
 is brought back to a net present value and taxed.   You pay this in addition to
 the personal property tax on the value of the equipment.   The LFG projects now
 have a cost that was not included in any of the  proformas of  $2,400,000,  in CA
 this amounts to about $36,000/year added to the  project.   This is based on the
 property (gas reserve) .   This is a major barrier because  you  have to  add these
 costs with no revenue offset.  With energy prices  so  low,  such taxation can be
 the straw that breaks the project's back.

 We lost two Southern California Edison bids as a result of the carbon tax
 policy.   If they change their policy  we would  bid on the capacity auctions.
 At the time of the bids  they refused to deduct the carbon tax.    I understand
 GSF bid without including the carbon tax,  hoping that  they would change it
 later.  As a result they were able to win a capacity  contract.   Whether or not
 they can get the carbon  tax overturned is a question;  the utilities made it
 very clear to us during  prebids at So.  Cal.  Edison and at SDG&E that  they
. intend to enforce the carbon penalty.   PG&E, SCE and  SDG&E have the same
 attitude.  There is no point in our bidding at future  auctions because we end
 up losing about 1.5 cents/kw just to overcome the  carbon  tax.

 Financing
 Financing is becoming a  major issue as we are not  developing  new projects due
 to the low energy price  structure.   The internal rate  of  return of around 5-6%
 for these projects is extremely low which means  that you  can  no longer
 evaluate the projects on 100% financing base. Laidlaw  would never fund such
 projects.  If we leverage projects (only use 25% equity and borrow the
 balance), the return on  the investment is between  10 and  14%.   The problem is
 that you have to finance the project off balance sheet which  means non-
 recourse loans.   A small project of less than 5  million dollars is almost
 unfinanceable.   Bankers  want projects  above  20 million dollars.   The
 transactional cost kills the small project because  the cost of  doing  a 5
 million dollar project is the same as  for the 20 million  project.
 Consequently,  the institutional barrier to the project development is the very
 high up-front bank fee to do the engineering studies,  to  do the legal
 documentation,  which can be a significant portion  of the  funds  required.   If
 you could find mezzanine,  or similar financing,   you might  be  able to  do a
 project,  but the cost would be several  additional points  on the loan.   Bernie
 Zahren's methodology of  trying to get  a line of  credit from an  institution and
 bearing a lot of the transactional  costs in-house  is probably the way to  do
 it.   Bernie has the same problem that  we do  in that he can't  use  the
 production tax credit for his own account.   So he needs to find a third party.

 Liability
 There are not many existing developers.   Landfill  owners will have to get very
 realistic in terms of what kind of  an  asset  they really have  with LFG.   If
 they treat it more as a  liability and  the development  of  a project is an
 offset of the liability  then it is  probably  the  right  direction.   There are
 many landfill owners who still believe  they  are  sitting on a  gold mine.

 In many instances the landfill owner,  or operator,  cannot  slough  off  the
 environmental liabilities to a third party.  The Irvine Company tried to  pass
 on their LFG liability to Laidlaw at the Coyote  Landfill,  but  the SCAQMD  Board
 ruled that the Irvine Company had the  responsibility and what  they did with a
 third party contract was between the Irvine  Company and the developer.  Most,
 landfill owners try to pass the gas liabilities  off because even  if they  have
 the total liability they at least have  somebody  to  look to.   But  the  SCAQMD
 Rule 1150.1 clearly states 'the owner,  or operator, of the landfill is
 responsible."

 Operating costs
 Our 2.5 cents/kwh is realistic for  operating costs.  Others may quote lower
 prices,  but this is probably exclusive  of  the extraction  system,  property


                                      D-28

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 taxes,  liabilities, insurance, utilities you have to buy,  disposal of
 condensate, catastrophic events, etc.  This is probably only the cost of the
 equipment.  Laidlaw's price only excludes the cost of royalty payments,  if
 applicable.  The costs are increasing dramatically now because of the air
 quality retrofit rules and regulations - condensate disposal is the single
 biggest issue.  We are spending close to $250,000 on a pilot project to  try
 and solve the condensate problem,  at one site.  The flare  program seems  to be
 a viable approach, but you may be incinerating a hazardous waste.

 A specific CA regulation, the Hayden Bill,  required the clean up of LFG  before
 its introduction into a pipeline.   That killed all LFG to  pipeline quality
 projects in CA.   That probably shut down the PG&E project,  you can't clean the
 gas economically and get rid of all the bad compounds.


 INTERVIEW 7;  PACIFIC ENERGY
 Present:   F. Wong, G. Donlou,  M. Doom,  J.  Pacey,  and S. Thorneloe,  June 3,
• 1994.
            t B
 We have received what we thought were high interconnect  estimates;  for  small
 projects this is a problem'.   The utility feels justified in  their costs;  they
 are not noted for a low-cost approach.   Landfills  often  tend to be  in remote
 rural  areas and you get charged with the full  cost of  line extension and
 capacity upgrade.  We paid for new capacitors  which sometimes didn't get
 installed.   Capital costs for interconnects range  from about $20 K  to $500  K
 for 1-10 MW.

 Utilities
 Energy prices have dropped, so much that utilities  do not find much  good in  LFG
 projects.   This has led to some antagonism with contract administration.  This
 thrust is also coming from the PUC,  because the PUC does not like the relative
 high cost of  LFG generated electricity.   Their department of rate payer
 advocate is putting pressure on the  utilities  who  in turn have no choice  but
 to put pressure on the Qualifying Facility (QF) .   This problem will probably
 get worse in  the west.  The  electricity price  is getting very competitive as
 the electricity is getting to be a commodity.   The price has come down  so much
 it is  now about 2.5 cents/kwh.   With the CA PUC saying they  are going to  be
 dropping any  program just to promote environmental values, it will be very
 tough  to develop new projects.   The  PUC has made the announcement that  this is
 the way they  plan to direct  utilities in CA.   They will  open new electricity
 supply to competition and fundamentally change the electric  industry and  make
 it competitive within a free market.

 In the UK they deregulated their electric industry.  The CA  PUC toured  the UK
 as part of  their process in  figuring out how they  wanted to  develop their
 policy.   They have developed a somewhat similar policy approach.  They  have
 not gone as far as saying they want  to  separate the generation from the
 utility at  this point,  but for this  to  work it has  to  get to the UK
 philosophy.   The CA PUC has  dictated a  timetable when  they would like to  see
 the new rule  in place.   They are talking 1996,  and including retail wheeling.

 If landfill projects have to compete on a level playing  field in a free market
 place,  competing with all the other  energy projects, it  would not survive.
 There  has  to  be something else such  as  the Section 29  (PTC's).  There are some
 fundamental differences that make the landfill projects  a higher cost producer
 when it comes to power.   Even with the  tax credits  it  is  tough to compete with
 a  large 200 MW combined cycle gas fired project right  now.   They are building
 and selling that power for about 2.5  to  3  cents/kwh.   Our O&M costs on  some of
 these  small LFG projects exceed that  before you roll in  capital cost.

 Wheeling could be a benefit,  there are  a lot of institutional things that need
 to phange before you can do  retail wheeling, but they  are headed in that


                                      D-29

-------
 direction.   The history has always been that utilities  are opposed to  doing
 any kind of wheeling.

 Our last project was the expansion of Otay and Oxnard.   It was  in 1987 when we
 completed our last new project.   Each new expansion negotiation is like
 entering into a new contract.

 Size of pro-ject
 Size of project is a big issue with PEN.   With limited  human  resources you can
 only do so  many projects.   We  found that  the landfill projects  take a  lot of
 management  time;  both during the development and the operation.   That  is a
 problem because you cannot cookie cutter  these projects.   Even  though  a lot of
 our plants  have the same engines and same basic design;  the development
 process for each one is unique for that site.   Operating each landfill also
 has its own characteristics;  this makes it tough from a human resource
 allocation  standpoint.   Our landfill projects  are the smallest  energy  projects
 that we have in our company.   When you talk about a 1 MW compared to a 30 MW
 project or  larger,  then you spend a disproportionate amount of  time for a
 landfill project.   The  issues  are significant  from the  scale  of project and
 scale of company  When  you talk  about $200,000 of retrofit, or new
 environmental regulations  that could put  people in jail  then  you  have  to spend
 the time necessary to address  and comply  with  the issues.

 We  cannot sell our power to anybody other than the utility, we cannot  change
 the rate for which we get  paid,  we simply have no control  over those issues.
 So  when the costs  are uncontrollable and  we keep getting new  things thrown at
 us  it makes you want to adjust the return required for  entering into new LFG
 projects.   It is more of a concern for us on landfill projects then some of
 the other technologies  that we are involved with.   It was worse when landfills
 were even a hotter topic than  they seem to be  today; environmental  concerns,
 neighborhood concern, toxics.  You could  not even get insurance,  I  don't think
 you can get insurance today to cover environmental  damage.  We are  aware of
 the litigation associated  with landfills  and it makes us nervous  about getting
 involved if we don't have  to be.   To expand an existing project you have
 certain economies  and you  already have a  liability risk so we are not  getting
 into new liability.

Air Permitting/Environmental Concerns
 The landfill projects are  heavily penalized because  of C02 emissions in CA.
 This  killed a number of otherwise competitive  LFG projects  in the auction bid
process  now in effect by CA utilities.  The PUC gives the direction for this
 structure.   The landfills  got  penalized not only for the CO2 created in
 combusting  the CH4, but also by the C02 in the  LFG.

 PEN has  very good  relations with many  air districts.  However, some tend to be
very parochial in  their view of  environmental  enforcement as  they have a
 single  guiding bias,  that  is air quality.   When you  are trying to look at a
 total project and  total environmental  compatibility, the single bias approach
 is  sometimes at odds with  the  total  picture.   Air people want you to put
contaminants in the  water,  water people want you to put it  in the air,  and so
on.   This isn't just because we  are  associated with a landfill,  it probably
happens  with any industry.

Some  air districts consider BACT on  landfills  to be a flare.  So when you
attempt  to  permit  a  power  facility they say wait  a minute.  When you attempt
 to  do a  project they say it is not BACT.   Air  districts don't give much
 thought  to  the fact  that LFG does  have various  constituents in it and when you
burn  off the gas,  in a  flare or  engine, no credits are given.  They don't care
what your fuel source is,  they are guided by the  single point discharge
assessment  only.  An example is  H2S, it is in the gas whether it is burned,  or
not.  Air districts  should take  that into consideration - you have to do
something with the gas.  The air board actually penalizes us as the BACT does
not  create  the H2S.  The new rule 431.1 says you cannot  burn any fuel  that  has


                                      D-30

-------
more  then  40 ppm  of  sulfur  compound.   It  is  not  like we  have  a  choice  in LFG,
it must  be burned.

With  respect to liability,  we are very sensitive to migration and  odor issues.
We get heavily involved with the landfill owners whenever  there is a problem,
or perceived problem.   Even though we  are clearly indemnified for  all
migration  issues.  At  a number of projects where we are  in a  populated area
and there  is a school  across the street,  for instance, if  there are any hot
probe readings, we are on the problem  immediately.  As soon as  we  get  a call
or find  out about it we spend the time necessary and take  the action necessary
to mitigate the problem.  This is not  because we are contractually obligated
but it is  the right  thing and smart thing to do.   If there is a problem
everybody  will eventually get pulled into the problem.   In addition there will
be risks associated with an end use project  that are not necessarily
associated with the  flare.   A case in  point  is ground water contamination.
You could  have underground  tanks and even though they may  not be leaking the
regional water board could  come after  you if they were to  suspect  that you
were  a contributor of  ground water contamination.  You have condensate issues,
a number of things that increase liability if you are an operator, which are
different  from operating a  flare.

Condensate disposal
Some  landfills will take the condensate with their wastewater treatment, and •
the cost of condensate handling is relatively low.  Other  cases exist  where it
must  be  trucked to -disposal  by a private  company and costs  here are up to
$1.00/gallon.  Some of these are class  3  (CA)  landfills.   Cost  of  condensate
disposal can be the straw that breaks  a project.   In one instance  we could not
get a permit from the  local  regional water quality control  agency  for
condensate disposal at the  site.   The  trucking costs were  too much and the
project was abandoned.

We have had noise issues, but only a cost issue.   We have  spent up to
$100,000.   Many sites  are in a populated  areas and the cost is  built in.  Our
problems have been in  more  remote  areas where we  had to  go  back and retrofit;
the cost was not built into  the original  proforma.

Fj.na.nc incr
Most  projects are too  small  for third party  financing.    Even  to get investment
entities excited,  by the time you  include all  the  closing  costs  it makes the
rate  unattractive.  When these costs are  amortized over  the term and amount of
the loan,  it is unattractive.   The smaller the project,  the more sensitive it
is to the  loan costs.

Long-term  power sales  contracts  are required by  lenders.   You will not have a
fixed cost  stream, or  you- don't  know what  the  price stream will  be in  the
future; you have a very speculative proforma for  loan consideration and that
makes it tough to get  loan  interest.

Taxation
Taxation is not necessarily  a barrier.  As for property  taxes,  a number of go-
abounds is  probably normal.    CA has a possessory  interest  that  kicks in when
you are leasing something from a public entity which pays no  tax.  If  you
lease a building from  them  the tax assessor  says you should be  paying  property
taxes.  The tax assessors have applied  this  reasoning to landfills, depending
on how they value it.   The  royalty on  the  LFG stream is what  they'consider
rent  and they value this as  a property  tax.   They  tax on the  gas reserve,
looking at  the royalty interest.   The  tax on the  gas extraction system is
valued on  the gas reserve taking a future value  and bringing  it  back to
present worth.   They consider secured, unsecured,  and possessory taxes.
                                     D-31

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        APPENDIX E:  AUSTRALIAN DEVELOPMENTS AND EUROPEAN EXPERIENCE
 DEVELOPMENTS IN AUSTRALIA

 Currently there are three active landfill gas to electricity projects in Australia generating approximately
 8.5 kW. Australian interest in landfill gas end-use as a fuel was spurred during the 1980s by successful
 projects in Germany, England, and the U.S.   By the mid-1980s, three research projects were being
 conducted in Australia.

 At the Northcote landfill in Melbourne gas had been extracted from a council landfill and used to fire a small
 generator to produce electricity in a demonstration project.  At Tea-Tree Bully in Adelaide, research was
 being conducted with landfill gas being used as a fuel to fire brick-making kilns. Another project was located
 at the Merrylands landfill in Sydney.  In 1987, the Victoria regional utility (SECV) announced its
 Cogeneration and Renewables Incentive Plan which allowed electricity generation from landfill gas to be
 economically viable.  One characteristic of the program was to pay high peak hour prices 5 days per week
 16 hours per day and very low payments for the off peak hours.

 The City of Sunshine, northwest of Melbourne, commended studies of using landfill gas to fuel engine
 generator units to produce and sell electricity to the local grid in 1986 at their Carrington tip and in 1988 at
 the adjacent Hulett Street tip.  In concert with GEC Alsthom (GECA), they commissioned the Hulett Street
 electricity project in early 1992. This project had  an installed capacity of 7.5 MW.  Due to landfill gas
 shortfall it has  only been producing about 3 MW during peak hours.  The landfill contains about 3 million
 tons of waste.  It is about 100 feet in average depth and has a leachate level at about mid-depth.  It was
 filled between the years 1978 and 1990.  The engines are Ruston Model 12RK70GS, rated at 1,735 kWe.
 The Eastern Refuse disposal Region (Cities of Berwick, Croydon, Dandenong, Nunawading, Ringwood, and
 Shire  of Sherbrooke) commenced a similar study in 1988 at their cooperative Narre-Warren landfill in
 Berwick. This  landfill will contain about 1.7 million tons of refuse at its completion in 1998, it averages about
 100 feet in depth and is situated in an abandoned 35 acre quarry.  It commenced filling in 1982 and should
 be completed in 1994.

 In May of 1992 Energy Developments International, Ltd. (EDIL) commissioned a power project at the Narre-
 Warren  landfill  and in November of 1992 increased the plant capacity to 4.5 MW.  The engines are
 Caterpillar 3516 SITA, rated at 800 kWe nominal.  They are delivering about 900 kWe per unit. EDIL also
 commissioned  a 1.0 MW plant in December of 1992 at the Corio Landfill near Geelong in Victoria.  This
 landfill opened in 1979 and will be filled in 1999.  It will contain about 1.5 million tons at completion of filling
 and have an average depth of about 25 feet.  EDIL anticipates it will commission a power facility at the
 Lucas Heights  Landfill south of Sydney by mid-1994.

 Australian landfill gas end-use projects suffer from low energy prices for fuel. Incentive programs are
 generally required in order to foster development  of these projects.  The SECV incentive program in 1987
 served to spur a number of studies of the landfills within this region and resulted in project activity. EDIL
 has developed an ability to modularize its engine/generator sets to fit small to large project needs at very
competitive pricing. This approach should also facilitate landfill gas end-use projects.

 EXPERIENCE IN THE NETHERLANDS

There are 15 landfill gas utilization schemes in the Netherlands, utilizing approximately 75x106 m3 landfill gas
 per year. Seven projects use gas to generate electricity. Four projects purify the gas to pipeline quality (the
 Netherlands has an extensive natural gas network), whereas in four other schemes the gas is fed to boilers.
 It is expected that the number of projects will more than double by 1996, bringing the amount of utilized
 landfill gas to 185x106 m3.

The following pages give an overview of landfill gas utilization activities in the Netherlands.  They are taken
from a brochure entitled: "Landfill Gas in the Dutch Perspective," published in March 1994 by the Landfill
 Gas Advisory Center, Utrecht, The Netherlands (Phone 31.30.316805).
                                                E-1

-------
Where organic waste is dum-
ped landfill gas is formed: a
gas mixture consisting of 60
per cent methane (CH^) and
40 per cent carbon dioxide
(CO2). The uncontrolled
escape of landfill gas into the
atmosphere is detrimental to
the environment. It can be
prevented by extracting and
using landfill gas. In the
Netherlands wide experien-
ce has been acquired in this
field during the last ten
years.
Methane emissions stronglv
                      O .
contribute to the greenhouse
effect. At the 1992 United
Nations Conference on
Environment and Development
in Rio de Janeiro it was decided
to reduce methane emissions
considerably. Landfill gas can
play a substantial role in attai-
ning this objective. By extrac-
ting landfill gas methane emis-
sions are prevented and, if
landfill gas is subsequently used
as a source ot energy, fossil fuels
are  saved. In this way emissions
of fossil carbon dioxide are also
prevented.
Landfill gas extraction is not
only good for the environment,
but it is also financially attrac-
tive. The technology applied
has been proved and  a return
on investment can be achieved,
\\hereas many environmental
measures only cost money.
Because landlill gas yields
money landfill gas extraction
turns out l<> be also economi-
cally one of the most effective
measures to prevent  methane
emissions and to reduce (.<)-,

-------
                          number ol
                           projects
 Since the early eighties gas
 has been extracted from
 landfill sites in the
 Netherlands.  Initially, this
 was done to prevent envi-
 ronmental problems in the
 direct vicinity of the landfill
 site such as odours, damage
 to vegetation and danger of
 fire and explosions.  Owing
 to the rapidly rising energy
 prices these developments
 gained momentum.  Energy
 distribution companies took
 the lead. However, due to
 the fall in energy prices in
 the mid-eighties interest
 slackened again.
                                                             million
development of landfill gas projects
Since 1989 there has been a clear
rise in the number of landfill
gas projects and in the gas
quantities extracted in the
Netherlands.  In 1993 an estima-
ted 760 million m3 of landfill
gas was formed, of which 123
 Landfill  Gas  in the  Netherlands
In practice only 50 per cent
turns out to be extractable: a
major part of the landfill gas is
formed before the extraction
system has been realised and
another part turns out not to
be effectively extractable.
From 1995 particularly the
separate collection of vegeta-
bles, fruit and garden waste as
well as a reduction in organic
waste disposal will affect landfill
gas quantities. Since landfill gas
is formed over a relatively long
period, it will be possible to
extract landfill gas far beyond
2000.
It is estimated that in the years
to come yearly 200 to 265 mil-
lion m3 of landfill gas can be
extracted.
 By the end of the eighties inte-
 rest in landfill gas extraction
 revived, but now for reasons of
 environmental protection. In
 1989 the Dutch Government
 drew up the National Environ-
 mental Policy Plan to reduce
 environmental pollution.
 Energy distribution companies
 took up this development with
 an Environmental Action Plan
 for their own sector. Due to
 these developments in the
 Netherlands landfill gas extrac-
 tion is being integrated in the
 national waste disposal policy,
 on the one hand, and in the
 policy of energy distribution
 companies to save energy and
 largely reduce the emission of
 harmful substances on the
 other.
million m3 was extracted and 85
million m3 was subsequently
used. In 1993 landfill gas extrac-
tion in the Netherlands led to a
fall in methane emissions to 48
ktonnes.  In addition, fossil
fuels were saved by a substantial
increase in the potential of
sustainable energy.
                                                                  million m3 landfill gas
% Landfill gas projects
  in operation
O Land/ill gas pro/ects
  in planning
O Other landfills
  with gas potential
                               To realise a sharper increase in
                               the number of landfill gas pro-
                               jects the Landfill Gas Advisory
                               Centre was founded in 1992. Its
                               main objective is to give profes-
                               sional assistance in the develop-
                               ment of new projects. For fur-
                               ther information about the
                               Landfill Gas Advisory Centre
                               see page 10.

-------

                           projection of extractable landfill gas quantities
 Landfill  gas  extraction
To assess the feasibility of a
project and the right dimen-
sions of the plant a correct
estimate of the quantities of
extractable landfill gas is of
major importance. In prac-
tice projections with a cer-
tain band width are made
within which the expected
gas quantities may vary.
In designing the extraction
plant it is wise to start from
the expected maximum
quantities of landfill gas. In
landfill gas extraction atten-
tion has to be paid first to
the environment.
The dimensions of the utili-
sation plant can best be
based on the expected mini-
mum quantities of landfill
gas, in which particularly
economic interests play a
role.
Given certain waste quantities
the formation of landfill gas can
hardly be influenced. However,
the total quantity of exti actable
gas can be influenced if the
extraction is started as soon as
possible.
Since the largest quantities of
landfill gas are already formed
during landfill build-up it is
important to start extracting
gas as soon as possible after or
even during dumping..This
way emissions of harmful gases
are largelv reduced and sub-
stantial financial advantages can
be gained.

In the Netherlands various
technologies are used. Broadly,
a distinction can be made into
the following technologies:
- in established landfill sites:
 either surface collection or
 vertical \vellssystem;
- during landfill build-up: con-
 struction of either horizontal
 or vertical  systems.
 Combinations of these tech-
 nologies are also possible.
                                      Vertical wells system
Vertical wells systems were
applied in the Netherlands in
the initial landfill gas projects.
Shortly after shut-down of the
landfill site vertical shafts'are
drilled or dug. One drawback is
that a large part of the landfill
gas has already escaped, in par-
ticular from the oldest parts of
the site. This problem can be
alleviated by building up the
site in separate sections. As
soon as a section has been com-
pleted the wells should be con-
structed. This way the interval
between waste dumping and
extraction of the gas is drastical-
K shortened.

-------
         Surface collection
Surface collection systems can
be installed only after a top
cover has been applied to the
landfill body. Use can be made
of so-called collection matting
in which the gas is transported
through.narrow ducts to a few
central collection .points.
              Vertical extraction system during waste dumping
Another option is to install per-
forated pipes beneath the top
cover. A disadvantage is that
such systems cannot be instal-
led until the landfill body has
settled to some extent. This
will take some years and a lot of
gas will then already have eSc,a>"'.
ped.          ::"'  •f.-,'f^'/-(^',-.
Vertical extraction systems are
built up while waste dumping is
in progress. Large-diameter
steel pipes are erected and in
each pipe a well shaft is placed.
The clearance between pipe and
well shaft is filled with some
coarse material like brick debris
or gravel. After a dump layer
(2-5 metre) has been completed
the steel sleeve is lifted and the
process is repeated until the
final height of the dump body
has been reached. The sleeve is
then removed. By horizontal
interconnection of the vertical
wells landfill gas extraction canr.
                                                                         Horizontal extraction
The great advantage of hori-
zontal extraction is that it may
be started relatively early. The
collection pipes may be so
installed that they are not in
the way during dumping.
The wells should be adequately
protected, though. The system
would seem effective in parti-
cular on sites where dumping is
effected in layers.




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Utilisation  of landfill  gas
Landfill gas isa kind of bio-
gas that can be used in
various wavs.  In the first
place it can be employed on
the landfill site itself to meet
the site's energy demands.
In many cases, however, the
extracted quantities of gas
exceed the site's energy
demand, so that opportuni-
ties for use outside the land-
fill site have to be sought. In
the Netherlands three
methodsof landfill utilisa-
tion are applied: direct com-
bustion, electricity genera-
tion — by means of CHP
(Combined Heat and Power)
or otherwise— and upgrading
to natural gas quality.
    Total: 85 nyilliorrm3
                                      Direct combustion
Raw landfill gas can be supplied
direct to an industrial consu-
mer, either for heating purpo-
ses or for use in some industrial
process. This way of utilising
the gas  offers the highest degree
of efficiency, provided offtake is
continuous.
This option is used in only a few
Dutch landfill gas projects.
Often the distance between
landfill  site and consumer is too
Brick kiln
large or the consumer cannot
guarantee continuity of offtake.
In power generation or upgra-
ding to natural gas quality such
continuity is indeed guaran-
teed, which makes a landfill gas
project far more attractive eco-
nomically. Moreover. Dutch
energy distribution companies
are prepared to invest in these
options.

       Values for landfill gas

       Kind of energy/destination
                                                                 . 5     10    .15    20    25
                                                                 Dutch cents / cubit meter landfill gas

-------
        Electricity generation
 Landfill gas can be used to gene-
 rate electricity by means of a
 gas engine or gas turbine.  The
 electricity produced may be
 used on site or supplied to the
 public grid. So far only the gas
 engine option has been used in
 the Netherlands for power
 generation from landfill gas. A
 gas engine offers high flexibility
 of use and is fast to install and
move.
In gas engines a lot of heat is
discharged by way of the cool-
ing water. This heat amounts
to no less than 30 per cent of
the energy supplied by means
of the landfill gas. To improve
the efficiency of the installation
combined heat and power pro-
duction (CHP) is applied: both
the generated electricity and
the released heat are utilised.
Since transporting the heat
would result in substantial los-
ses, it is more attractive to
transport the landfill gas and
locate the CHP installation at
the place where the heat is nee-
ded, such as buildings or horti-
cultural greenhouses. In 1993
30% of the landfill gas projects
in the Netherlands featured
electricity generation by means
of CHP plant. The Dutch
government even grant subsi-
dies for CHP installations.
                                    Upgrading to natural gas quality
The third method of utilising
the extracted landfill gas is to
upgrade it to natural gas quali-
ty. In upgrading, the carbon
dioxide is removed from the
landfill gas. Moreover, the gas is
dried and all kinds of impurities
are removed. Carbon dioxide
removal technologies are get-
ting increasingly advanced and
less expensive. Three techni-
ques are currently in use:
water-wash process, pressure
swing adsorption and
membrane separation.
                                Water-wash process
                                In the water-wash process car-
                                bon dioxide removal is effected
                                by means of a physical solution
                                in water. This is the oldest tech-
                                nique, which is applied in the
                                Netherlands in one installation.
                                Meanwhile more advanced and
                                less expensive methods are avai-
                                lable.
Water-wash process
     sulphur
     removal
                 CO2 removal
                 (water wash)

-------
            Pressure swing adsorption
       sulphur   CI-F
       removal   removal
CO2 removal
& drying (PSA)
                    CO,
            Pressure swing adsorption
            The pressure swing adsorption
            technology was developed
            during the sixties and seventies.
            It is based on differences in ad-
            sorption rate and molecule size.
            By the end of the eighties this
            technology became available
            for CO2 and CH^ separation.
            The carbon dioxide is physically
            adsorbed to active carbon. In
            the Netherlands two  landfill gas
            projects featuring PSA techno-
            logy are in operation.
               Membrane separation
               Membrane separation is the
               most recent technology. CO2
               and CH^ separation takes place
               on the basis of molecule size.
               Membrane installations are
               small in relation to the other
               types of installations and they
               may be designed as movable
               units. Currently, three mem-
               brane installations are in use in
               Dutch landfill gas projects.
In some cases (part of) the
extracted landfill gas is flared.
For instance because there is no
utilisation plant available (yet)
or because it is out of operation.
It may also happen that more
gas is extracted than the utilisa-
tion installation can handle.
If the latter is a structural phe-
nomenon, the utilisation plant
should be extended. Anyhow,
flaring leads to
a reduction
in methane
                 lyiernbrame separation  .
mmm
                                               E-8

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At the initiative of the asso-
ciation of energy distribu-
tion companies EnergieNed,
the waste processing associa-
tion WAV and the Nether-
lands Agency of Energy and
the Environment NOVEM
the Adviescentrum Stortgas
(Landfill Gas Advisory
Centre) was founded in 1992.
The advisory centre assists
them in drawing up new pro-
jects. Moreover, the bureau is a
place for transferring knowled-
ge and experience gained in the
operation of landfill gas pro-
jects. The advisory centre deals
with both technical/economic
and management/legal issues.
   Landfill Gas Advisory Centre
     for promotion and support
The initiators' objective was to
implement a large number of
landfill gas projects in a short
time so as to boost the quanti-
ties of landfill gas extracted and
utilised. The advisory centre
was'set up as an independent
bureau to be operational for a
period of three years providing
information and advice about
the setting up and management
of landfill gas projects. Firstly,
the Landfill Gas Advisory
Centre focuses on the parties
directly involved: the Dutch
landfill site owners and energy
distribution
companies.
        Project assistance
An important task of the
Landfill Gas Advisory Centre is
to give advice on the prepara-
tion, realization and operation
of projects. Partly, this is done
at the request of an energy dis-
tribution company or landfill
site owner. However, the advis-
ory centre itself also takes the
initiative. In the latter case it
carries out a preliminary in-
vestigation to assess (broadly)
the feasibility of a project.
     Landfill Gas Contact Group
                              The Landfill Gas Advisory
                              Centre took the initiative to
                              found a Landfill Gas Contact
                              Group in which, meanwhile, a
                              large number of energy distri-
                              bution companies and landfill
                              site operators participate.
                              The Group's aim is to exchange
                              knowledge and experience
                              between current and future
                              owners of landfill gas projects.
                                                                      Information
Information plays a prominent
role in the activities of the
advisory centre. The Landfill
Gas Info newsletter is regularly
published and the advisory
centre organises public infor-
mation meetings and work-
shops. The bureau itself provi-
des a wide variety of
publications and staff members
regularly write articles for
scientific journals. This way the
advisory centre meets a great
demand for independent and
objective information.
      Knowledge acquisition
The activities of the Landfill Gas
Advisory Centre partly focus
on the acquisition of know-
ledge about landfill gas projects.
The staff members of the advis-
ory centre collect information
and sit on various committees.
On the basis of the available
knowledge the advisory centre
is the oracle for all parties con-
cerned. The Dutch govern-
ment and organisations in the
above line of industry use the
information of the Landfill Gas
Advisory Centre to formulate
their policies.

               ADVIESCENTRUM
                                                                            STORTGAS
                                          E-9

-------
 Landfill gas demonstration projects in the Netherlands
                                                         Main supplier
Consultant
site: 't Kikkerink
(Ambt-Delden)
capacity: UOOnrVhr
application; steam boiler
since- 19S3
site: liavel-Dorst
capacily: 1,000 mj/hr
application: hrik kiln
since. I9S5
.site: Spinder (Tilburg)
capacity: 2,000 m '/hr
application: upgrading to
natural gj,s quality
(water wash)
since: I9S7
site: VAM-\Vijster
capacitv: 1.1,50 nr'/hr
application: upgrading to
natural gas quality
(PSA)
since: 1989
site. Gulbcrgen
(Nuenen)
capacity; 1.300 m^/hr
application: upgrading to
natural tjas qualitv
(PSA)
since: 1990




sire: Vasse
capaiTitv: 375 itv'/lir
application: upgrading to
natural gas quality
(membranes)
since: 1991
site: Kragge I + I! (Bergen
op Zoom)
capacity: MOOmJ/hr
application: combined heat and
power in green-
houses
since: 1993






site: Wepcrpolder
capacity: 400 mA/hr
application: upgrading to
natural gas quality

(membranes)
since: 199-1
Other Addresses
Landfill Gas Advisory Centre
(Advicscenlrum Slortgas)
P.O. Box 19.100
3.501 Dl-l UTRECHT
COCAS N.V.
P.O. Box 71
7601) AI.MEI.O
tel. +31 5490.1666ft

Grontmij. N.V.
P.O. Box 20.1
.1730 AF DE HILT
icl. +31 30207911
SMB-Stortgas b.v.
c/o P.O. Box 4260
5004 JG TILBURG
td. +.11 13.12.1800


REGAM b.v.
c/o P.O. Box 5
94I87.C \VIJSTER
tel. +31593639.19


landfill gas extraction:
N.V. RAZOB
P.O. Box 252
5670 AG NUENEN
tel.+3140S358S9

landfill gas utilisation:
Carbiogas b.v.
P.O. Box 243-
5670'AF. NUENEN'
tel. +31 40839683
COCAS N.V.
P.O. Box 71
7600 ALMELO
tel. +315490.16666


landfill gas extraction:
Streekge\vcst \Vestclijk
Noord-Brabant
P.O. Box 90
4700 AB ROOSENDAAL
tel. +31 1640.18400

landfill gas utilisation:
N.V. PNEM \Vesi
P.O. Box 151.1
4700 BM ROOSENDAAI.
tel. +31 165081700

N.V. FRIGEM Z.O.
P.O. Box 100
8400 AC GOKKEDIJK
tel +M 51 V> 7*175



NOVEM h.v.
P.O. Box 8242
350.1 RE UTRECHT
tcl. +31.1036.1444
Pctrogjs Gas Systems b.v.
Doeshurjiweg?
280.1 PI. GOUDA
id. +.11 182065395

Grontmij. N.V.
P.O. Bo.x 20.1
373(1 AE DEBII.T
tel. +3130207911
Eltacon b.v.
P.O. Box 276
2700 AC ZOETI-KMEF.R
icl. +31 79 4 197 II


Leybold-Hereaus
Hanau
Germany




De VriesStortgasb.v.
P.O. Bo.x 90
8500 AB JOURF
tel. +31513884444


CIRMACb.v.
Bleekerssingel 22
2806 AA GOUDA
tel. +31 1820 1 1344
Pctrogas GasSvsierm b.\
Doesburgweg 7
2803 PL GOUDA
tel. +31 182065395



De V'nesStortg.T; b.\ .
P.O. Bo.x 90
8500 AB (OURE
tel. +31 51. 18 84444



Jenbach Sandfirden
Energv Systems b.\ .
P.O. Box'l466
3800 Bl. A.MERSFOO In-
tel. +3133652752
Petrogas Cias Systems b.\ .
Doesburg\veg 7
280.1 PL GOUDA
td. +31 182065395




Association of energy distribution
companies in tbe Netherlands
1-ncrgieNed
P.O. Box 9042





Gronnnij. N.V.
P.O Box 203
3730 AE DEBII.T
tel. +31 30 20791 1
GASTEC N.V.
P.O. Box 137
7300 AC APELDOORN
tcl. +31 55494949

,
Innogas b.v.
P.O. Box 404
4200 A K GORINCHEV1
tel. +31 18.10.15466









GASTEC N.V.
P.O. Box 137
7300 AC APELDOORN
tel. +31 55494949
Institut fur Verfahrcn.stcchnik
Tcchniscbe Hochschule Aacht-n
Gc-rmanv
















GASTEC N.V.
P.O. llox 137
7300 AC APELDOORN
tcl. +3155494949




\Viiste Processing Association
WAV
P.O. Box 19300
3.501 DH UTRECHT
lei. +.11 .10.1I6N05
                                                  6800(iD ARNHI-M
                                                  tcl. +3185569444
                                                                            tcl.+31.10311144
                                             E-10

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Notes on Two Dutch Landfill Gas Workshops

This section summarizes notes on two workshops held in the Netherlands on May 7, 1992, and November
18, 1992. The workshops were organized by Adviescentrum Stortgas (Landfill Gas Advisory Center),
Utrecht, the Netherlands.  The Advisory Center is an initiative of the United Utility Companies, the
Organization of Waste Management Companies, and the Netherlands Organization for Energy and the
Environment (NOVEM).  NOVEM is the main scientific government research institution in the country. The
Center provides information, consulting and project management services to encourage the utilization of
landfill gas in the Netherlands.  Participants at the workshops were owners/operators of landfill gas utilization
installations. There were 41 participants at the first event and 58 at the second event. At each workshop
distinct topics were addressed.   Each  topic was introduced by an expert who would pose certain axioms to
generate a discussion.

Conclusive statements from the workshops that may be of interest for U.S. readers are listed below.

       Managerial Issues

       •      The objective of the landfill owner (and government) should be to consider and manage all
              pollutants from the landfill integrally.

       •      Gas collection is part of sound landfill management. Cost for a collection system should be
              seen as part of total refuse management.

       •      Often,  regulations pertaining  to refuse management are not written to encourage gas use.

       •      It may be beneficial to combine management of collection and utilization activities and  place
              responsibility on the utilization team.  The user is dependent on gas of a sufficient and
              consistent quality.  Also, the  user must have the ability to  react quickly in case of
              undesirable variations. Before all responsibility can be concentrated at the user,  all parties,
              including energy buyer and landfill management, need to communicate effectively.

       •      Air intrusion, either through the cover or through leaking seals can result in output reduction
              or shut down.  Also, gas flow may be influenced by damage to pipelines and wells as a
              result of settlement. The responsibility for addressing these issues must be addressed in
              advance, by developing a proper agreement between the  parties concerned. Although
              overall responsibility may be  with the user, the landfill owner will cooperate better if the
              owner  has some kind  of financial interest.

       •      If O&M is contracted out, education of personnel is not a direct concern for the utilization
              equipment or landfill owners. One participant stressed the importance of the availability of
              proper manuals, operating  procedures, and trouble-shooting guides. If these reference
              materials are available, personnel with a  lower level education may be able to perform
              satisfactorily.

       Technical Issues

       •      One of the disadvantages of  pipeline quality clean-up, compared to electricity generation is
              that the system cannot be modular.

       •      Pumping of gas wells to enhance landfill  gas production is not always effective.  Field tests
              have shown that the effect of pumping can be quite local.  This would depend on the density
              of the refuse.

                                               E-11

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        •      Dutch landfill gas experts believe that leachate recirculation is not necessary and want to
               remove gas as well as water, some believe that the water would obstruct landfill gas
               production although no proof of this effect has been found (not including completely
               "drowned" wells).  It is believed that refuse contains enough initial moisture to initiate and
               maintain landfill gas production.

        •      One landfill owner mentioned that they immediately apply final cover in filled areas. The cost
               of potential cover repair is less than the cost of additional leachate management.

        •      Sump pumps to remove the water should be equipped with an automatic minimum control
               level.

        •      There are three basic schemes for cogeneration:  1) use heat for refuse treatment,  2)
               (re)locate industry on landfill site,  3) move electricity generation scheme to location where
               heat can be used. In the Netherlands, one landfill gas cogen-project generates clean air of
               120°C (250°F) which is being used for drying chemicals. At another (planned) site, heat will
               be used at the landfill to dry sludge from biological leachate treatment and for composting.
               (Cogenenration is expected to have 76% efficiency.)  In a third scheme, dried and
               compressed landfill gas is shipped 3 km to  green-houses. The cogen installations will be
               built next to the green-houses.  In the summer, when no heat is necessary, the generators
               will be cooled by air.

Commercial Use of Carbon  Dioxide:  By-product of Landfill Gas Purification

Landfill gas may be upgraded to pipeline quality (natural) gas.  Landfill gas is separated into a CH4 rich
stream and a CO2 rich stream. The CH4 rich stream is further purified and sold, the CO2 rich stream is
usually considered to be of little value.  At best, the CO2 is used for on-site regeneration of carbon
adsorbers, or for leachate neutralization (as carbonic acid).

In a project funded by NOVEM,  Innogas B.V., the Netherlands, researched possibilities to upgrade the CO2
rich stream to liquid or solid ("dry ice") CO2 for commercial purposes at the Wijster 2 landfill in the
Netherlands.  This site produces landfill gas at a rate of approximately 1,200 rrvVhr (700 cfm) and employs
pressure swing adsorption for purification. The raw CO2 rich stream coming from the pressure swing
adsorption contains 90 to 96% CO2. The study concludes that upgrading of CO2 from landfill gas purification
projects to marketable quality is technically, as well as economically, feasible.

It was calculated that costs for producing liquified  landfill CO2 are approximately $ 0.04 per kg and for dry
ice $ 0.18 per kg, excluding storage of the gas. These costs are below Dutch market prices for CO2.
(Commercially available liquified CO2 of aforementioned purity costs between  $ 0.08 and $ 0.22 per kg and
dry ice may cost as much as $ 1.00 per kg.)  One of the findings of the project was that a market for the
CO2 should have a regional character, due to the  cost of transportation.  It was therefore, recommended to
integrate the landfill CO2 into the distribution network of an existing industrial gas vendor. Transportation
costs for liquid CO2 run around $0.02 per kg  (40,000 Ibs tanker truck, 100 miles, $60.00 charge for
unloading, CO2 at 300 psi).


Possible markets for the CO2 mentioned in the study are:

       •       greenhouses (plant feed),
       •       wastewater treatment plants (pH correction),
       •       the plastics industry including plastics recycling (blow gas in styrofoam or foil production and
               coolant),
       •       the transportation sector (coolant),

                                                E-12

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        •       fire extinguishers, and
        •       welding purposes.

Although technically possible, purification to foodgrade is not being considered.

At present, a follow up study is being conducted by Innogas which involves the construction of an installation
for landfill CO2 purification that will comply with the following criteria:

               CO,           >      99.7           vol.%
Yo
               H2O           <       0.015          mass.%
               CO           <       10.0           vol. ppm
               S             <       1.             mass, ppm
               Oil            <       5.             mass, ppm
               NOX           <       30.            vol. ppm
               CH4           <       0.5            vol. ppm

               Taste and smell:  Not detectable when gas is dissolved in water.
Information made available by:
Ingenieursburo Innogas b.v. (Mr. Frans R. van Gaalen), P.O. Box404, 4200 AK Gorlnchem, The Netherlands
(Phone 31.1830.35466).

Landfill Gas Advisory Center  (Mr. Martin Scheepers), P.O. Box 19300,  3501 DH Utrecht, The Netherlands
(Phone 31.55.494581).
EXPERIENCE IN THE UNITED KINGDOM

Since the early 1980s, when landfill gas was first used in the  UK, there has been an expanding industry
dedicated to the control and use of landfill gas.  Support from the UK Government assisted in furthering the
understanding of landfill gas generation and the technology of its collection and use, helping energy recovery
from landfill gas to become one of the most important renewable energy resources in the UK.

The growth of the industry is presented in Figure E-1, which shows the steady progress made through the 1980s
in terms of numbers of projects.  The two main uses for landfill gas in the UK are as fuel for 1C engines acting
as prime movers for power generation,  and  as a source of process heat in  industries such as brick
manufacturing.  The acceleration of this industry growth so far in the '90s is of note, as is the shift to power
generation. The use of landfill gas in the UK  represents a primary energy savings that is equivalent to about
300,000 tonnes of coal per year (Maunder, 1993).

In  1993, the Energy Technical Support Unit of the UK  Department of Trade  and Industry published  a
comprehensive document entitled:  "Guidelines for the Safe Control and  Utilisation of Landfill Gas." (Cooper
et al., 1993)  The guideline series comprises the following parts:

       •   Part 1    Introduction
       •   Part 2    Control and Instrumentation
       •   Part 3    Environmental Impacts  and Law
       •   Part 4A  A brief Guide to Utilising Landfill Gas
           Part 4B  Utilising Landfill Gas

                                               E-13

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        •   Parts    Gas Wells
        •   Part 6    Gas Handling Equipment and Associated Pipework
                 • Projected for 1993
                 • Combined Heat Power
                 EJ Power Generation
                 D Boilers
                 • Kilns/Furnaces
       81      82      83    84     85     86     87     88     89     90     91
92
93
                      Figure E-1.  Energy from landfill gas in the United Kingdom.
Although these guidelines were written from a safety aspect, they contain useful information on topics relevant
to this report.  The following sections from this document are included in this Appendix:

       •       Part 1, Introduction, Section 3, "Quality Assurance and Risk Management."  (Page E-16)
       •       Part 4B, "Utilising Landfill Gas." Section 4, "Gas Utilization Technology" and Annex D, with
               Tables of Operating Details of Some U.K. Landfill Gas Utilization Schemes.  (Page E-36)
Reference:

Maunder D.H.  1993.  Nontechnical Barriers to Using Landfill Gas in the UK and a Discussion  of Some
Solutions. SWAN A  16th Annual Landfill Gas Symposium,  March 1993, Louisville, KY.

Cooper, G., Gregory, R., Manley, B.J.W., and Way/or, E.  1993. Guidelines for the Safe Control and Utilisation
of Landfill,Gas.  ETSU B 1296-P1.  DoE Report CWM067A/92.
                                               E-14

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Quality Assurance and Risk Management

Excerpt from "Guidelines for the Safe Control and Utilisation of Landfill Gas."
Cooper, G., Gregory, R., Manley, B.J.W., and Naylor, E. 1993.
ETSU B 1296-P1.  DoE Report CWM067A/92.

Reproduced with permission from the Energy Technical Support Unit (ETSU), Department of Trade and
Industry, U.K.
Address of ETSU:
       Harwell, Didcot
       Oxfordshire OX11 QRA
       United Kingdom

       Telephone:     (44) 0235 43
       Facsimile:      (44) 0235 43
                                            E-15

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              QUALITY ASSURANCE AND RISK MANAGEMENT
3.1           INTRODUCTION
              This Section has been included to ensure that by the adoption of Quality Assurance
              (QA) and Risk Management principles, LFG will be controlled, and if appropriate,
              utilised, in a safe and effective manner.

              These principles examine both the organisation required for the management of
              LFG as well as its response to given events.  Quality Assurance seeks to 'get it
              right' first time and  every time by the creation of formal procedures to deal with
              the management of the entity and bring about the necessary responses on a day by
              day basis. Risk Management looks at potentially unacceptable events and identifies
              ways  in which they  may be prevented, mitigated or insured against.

              By coupling QA and Risk Management, it is intended that the organisation and its
              functions should be  scrutinised and formalised to ensure safety and reliability in
              system operations. Other safety systems eg. Health & Safety, Environmental, may
              also be established and coupled in a similar way as part of an overall management
              control structure.

              QA as a documented management system, was  first introduced in the  1960's by the
              US Military when it was found that a major defence project was being prejudiced
              by the poor performance of the Contractor.  Materials and services were not
              meeting the specifications and were being delivered late, resulting in serious delays
              and extra costs.

              As a result of this experience, the US Military introduced  a Quality System
              Standard which set out eighteen significant elements of Good Management. These
              eighteen elements have stood the  test of time and  form the basis of the International
              Quality System Standards such as BS 5750(1987) - Quality Systems, [ISO 9001,2,3
              - EN 29000].

              QA is not an assurance, per se, that the end product or service is of a particular
              standard.  It is an assurance that  the correct procedures have  been followed in the
              act of producing a product or providing a service, and therefore by implication,
              achieving the planned result.

              During the last decade there has  been a growing appreciation of the direct benefits
              derived by Organisations operating QA or Quality Management Systems and to an
              increasing extent, the way in which Quality Management is regarded as an
              important element in the selection of contractors by Public Sector Organisations
              and Regulatory Bodies.

              QA is not Quality Control or Inspection, which is the checking activity which takes
              place at  the point of delivery of the service. QA is about planning, designing and
              organising resources to achieve a consistent and repeatable result, and the 'design
              aspect in its wider meaning, features significantly in the QA  ethos.
                             E-16

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               With a simple inspection procedure, when the product or service is found to be at
               fault at the point of supply, then there are delays in the provision of the product or
               service and additional costs are incurred in correcting the faults.

               In the case of operation of hazardous installations or the provision of emergency
               services, this late discovery of faults in  the equipment, system or service, may have
               a serious effect upon safety.

               QA  is pro-active, intended to "prevent failures.  It is concerned with the planning
               and  preparation activities to ensure that  the product or service is acceptable at the
               point of delivery, and that it is of the required quality and reliability.

               Quality Control is reactive, concerned, with the discovery of failure at the point of
               delivery.
3.2           QUALITY ASSURANCE AS APPLIED TO LANDFILL GAS

              In applying a Quality System to the control and utilisation of LFG it is first
              necessary to analyse the full range of activities involved and the responsibilities
              which have to be acquitted.  These may include:

              •  definition of concept and design;
              •  planning;
              •  construction;
              •  operation;
              •  restoration;  and
              •  monitoring and regulation.

              Each of these may have, in varying emphasis, a number of organisational aspects
              under an assurance system.  Furthermore, later phases may influence earlier phases
              as a result of feedback, changed circumstances or legislative requirements.

              This multifaceted role of QA is best  represented by the matrix shown  in
              Table 3.2a which identifies the principal stages in implementing a LFG
              management scheme.

              For each marked grid position, procedures may need to be developed  to achieve
              the required outcome, and as an overlay, there will be a.management  system for
              QA itself to ensure that it reflects reality and best current practice, and  achieves
              the desired result, measurable by  audit.
                             E-17

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                                               Table 3.2a    QA Applied to LFG Management
CD
OPERATION
Management Responsibility
Quality System
Contract Review
Design Control
Document Control
Purchasing
Purchaser Supplied Products
Production Identification
Process Control
Inspection A Testing
Inspection, Measuring and
Test Equip.
Inspection & Test Status
Control of Non-Conform
Products
Corrective Action
Handling, Storage, Packing A
Delivery
Quality Records
Internal Quality Audiu
Training
Servicing
Statistical Techniques j
Feasibilit Concept/Dcs Design Construction
y- ign Devetopmc (Landfill)
Study Criteria nt Phase 4a
Phase 1 Phase 2 Phase 3
XX XX
XX XX
xxx
XX XX
XX XX
xxx
X
K
X
X
X

X
XX XX

XX XX
X

XX XX
XX X X
XX XX
X
XX XX
Construction
(Facilities)
Phase 4b
X
X
X
X
X
X
X
X
X
X
X

X
X

X
X

X
X
X
X
X
Operations
(Landfill)
Phase 5
X
X
X
X
X
X
X
X
X
X
X

X
X

X
X

X
X
X
X
X
Operations
(Oai
Production)
Phase 5b
X
X
X
X
X
X
X
X
X
X
X

X
X

X
X

X
X
X
X
X
Shut-Down
Phase 6
X
*
X
X
X
X


X
X
X

X
X

X
X

X
X
X
*
*
Monitoring
Phase 7
X
X
X

X




X
X

X
X

X
X

X
X
X
X
x.

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3.2.1         Qualify Assurance System Management

              The management of a QA system depends upon the following.

              •  Satisfactory management structure with clearly defined responsibilities and
                 duties.

              •  Use of good engineering planning and practice.

              •  Competent staff in key positions.

              •  Accurate and reliable records.

              •  Techniques to accommodate variations from instructions or management system
                 improvements and upgrades.

              •  Good communications and document control.

              •  Checking or auditing the system.

              Design and Planning

              Emphasis should be given to the need for prevention of failures through design
              (planning and preparation) which is the most critical of all activities.
              It must be used as the basis  for control and should be reviewed  systematically by
              competent persons throughout all the phases shown in Table 3.2a.

              If the design concept is flawed then even the best construction and operational
              practices are unlikely to overcome the design deficiencies.

              In considering the various phases of LFG management, it is convenient to utilise
              the framework of BS5750/IS09000 as a typical and well recognised UK standard.
              There are others, for example Military standards such as AQAP, in which the
              principles are the same,  though the detail may be altered to suit particular
              requirements.

              In order to emphasise the importance of systematic consideration of, (and reference
              to), the design criteria and the site licence,  the reader is referred to  Pan 1 of
              BS5750/ISO 9001.

              BSS750 Pan I/ISO 9001

              The Standard sets out the requirements for a Quality System under 20  headings,
              and these can be related to the phases of LFG management shown in Table 3.2a.

              When referring to BS5750 it must be appreciated that is has been written
              principally for the manufacturing industries. However, there are now several
              applications of BS5750 in service industries such as Waste  Management.

              The principles of good management,  however, are common to many industries  and
              the requirements of BS5750 can be interpreted for the  management  activities of
              landfill and the control of LFG.
                           E-19

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               The Institute of Wastes Management in association with the British Quality
               Association has produced an interpretation of the Standard entitled 'Applicability of
              , Quality Assurance and BS 5750 to the Disposal of Waste to Landfill', (September
               1990) and this is a good first point of reference.

               The issues  are discussed in relation to  each of the phases given in Table 3.2a in the
               following sub-section.

3.2.2          Phase  J - Feasibility Study

               At the  initial stage of a project the objective is to determine if the proposed activity
               is practicable and economically sound.  It is necessary to implement good design
               management practices at this stage to avoid incorrect conclusions being arrived at
               with the possibility of progressing to further stages on a project which is either
               technically flawed or not economically viable.

               Matters to be considered at this stage include the following.

               •   Proposed services, the proposed site and its previous use.
               •   Composition of the waste.
               •   Origin of the waste.
               •   Site capacity, topography, hydrogeology and geology.
               •   Environmental aspects of visual impact, noise, traffic,  odour,  water and vermin.
               •   Health, safety, hazard and risk analysis.
               •   Site and gas management facility layout.
               •   Gas management systems.
               •   Electrical systems.
               •   Site utilities, water, electricity etc.
               •   Site offices and accommodation etc. •
               •   Site life cycle programme.
               •   Economics.
               •   Operating philosophy, including staffing.
               •   Gas management facilities - normal, maintenance and emergency operation.
               •   Legal or contractual restraints.

3.2.3          Phase 2 - Concept and Design Criteria

               Generally this phase follows the same  areas of consideration as the feasibility
               study, but goes into more detail in areas such as the operating philosophy, selection
               of materials and equipment, design construction and operations programme and the
               project budgets for the design and construction phases.

               This document  is the 'Specification' against which the detailed design is developed.
               Deviations from the 'Design Criteria'  should be subject to authorisation following
               consideration by competent persons.
3.2.4          Phase 3 - Design

               During this phase the technical specifications and applications for Planning
               Consents and the Site Licence are produced and  submitted to the Regulatory Bodies
               for approval. This  is covered in more detail  in Pan 3 in the guidelines series.
                              E-20

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Specifications and construction instructions are prepared and issued for the site
construction phase. This may involve a prequalification procedure in the case of an
'arm's length' contract with a Contractor to assess the competence and ability of
the Contractor to  carry out the work.

Records, including identification of the source of the information, showing the
original site layout with drawings of  the existing surface and underground services
within or adjacent to the site, groundwater, location, (flow and initial analysis),  etc
should be made available and should  be subjected to critical examination for
completeness and accuracy before accepting the information for design.

The records should be retained on file and be available for retrieval at any time
during the  life cycle of the site.

Following  the preliminary evaluation of the site and its development,  the
programme of site fill, nature of the  waste, etc, the estimates of the quantity and
quality of LFG will be determined and  the gas collection system layout  diagrams
produced.  These diagrams should be developed to cover the gas management
facilities, including any gas utilisation,  and should include mechanical, electrical,
instrumentation, control and safety systems.

In engineering these facilities,  consideration should be given to the profile of gas
generation  and should consider normal,  maintenance and emergency operation.
Some degree of over capacity and component duplication should be included in the
design to ensure the safe operation of the facilities  under all operating regimes.

During each of these phases the Quality System requires review of the design input
information, employment of appropriately qualified and experienced staff, records
of calculations and  checking by competent staff. Where computers are used in the
design, then it is essential that the software used should be verified by independent
or alternative calculations to confirm its suitability  and accuracy.

At appropriate intervals during each of the design phases there should be 'design
reviews'.  These reviews should be attended by representatives from other
disciplines, eg. construction, operations, engineering etc. and should consider the
development of the design against the intended use, the site licence (actual or
proposed),  good practice and the legislation.  Techniques such as 'brain storming',
'what if, 'fault tree analysis',  'cause and effect analysis',  'hazan'  and 'hazops'
may be used.  Care should be  taken to  consider both normal operations and
'abnormal' operations and systems should be designed to fail safe.

The commissioning, operating and decommissioning procedures should be defined
and documented during the design phase and  commissioning of the facility should
not be permitted to proceed in the absence of these documents.

Written procedures should  be implemented for all the design activities and the
quality system should also  include written procedures covering all the activities as
indicated in Table 3.2a.

Particular attention should be given to the training  of operators,  permit to work
systems and the amendment protocol for both working procedures and the design
of the facilities.
             E-21

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               Internal audits should be carried out to ensure that the documented quality system
               is being implemented and is operating effectively. These internal audits should be
               planned and systematic, and should be carried out during each phase at appropriate
               intervals.

               Records of the internal audits and the  introduction of any corrective actions should
               be maintained and should be reviewed regularly to ensure that the quality system is
               operating satisfactorily and  also to consider any financial or technological changes
               which may influence working practices and the quality of the design.

3.2.5          Phase 4A- Construction  (Landfill)

               This phase of the project is understandably critical with respect to the future safe
               operation of the site and control of LFG, but  in the majority of cases this will not
               be carried out by the Site Owner but instead by a Contractor or a number of
               Contractors and Subcontractors.

               The operation of a Quality System will ensure that the integrity of the  design'is
               maintained through design amendment procedures and the quality of workmanship
               verified by inspection and records which should be produced and kept for future
               reference.

               Good management practices, as defined  by QA standards, require the Site Owner
               to ensure that the Contractor(s) selected  for the task have the relevant  experience
               and resources to  undertake the Contract, and  have established procedures and work
               instructions which will minimise the risk of sub-standard contract completion.

               The respective responsibilities  of the Owner and  the Contractor can be summarised
               as shown in Table 3.2b.

3.2.6          Phase 4B - Construction (Facilities)

               The construction of the gas management facilities is likely to be programmed over
               an extended period with the operation  of the landfill site progressing for some time
               prior to its installation.

               The gas management system should be followed  by the construction and
               commissioning of the gas handling, distribution and utilisation facilities which may
               well be phased to suit changing gas quantities. This  may involve more complex
               construction procedures to maintain safety  and quality of work.

               The responsibilities of both parties for this phase will be broadly the same as those
               given in Table 3.2b.
                             E-22

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 Table 3.2b     Responsibilities
                 Owner
                                                   Contractor
                 Compile specification with:

                 •  clear instructions;
                 •  standards to be achieved;
                 •  constraints (Do's & Don'ts);
                 •  tile licence requirements; and
                 •  regulation requirements.

                 Identify lines of communication
                 for reporting and approval of
                 alterations or amendments.
                List records to be maintained and
                supplied at end of construction.
                Assessment of contractors capability
                to perform, including:

                •   experience;
                •   systems and procedures;
                •   references; and
                •   previous work standards.
Review of specification including:

•   listing Kerns not fully defined;
•   discussion with owner on above; and
•   records of outcome/amendments.
Plan project and produce Quality Plan
including:

•   description of project;
•   Contractor! and Owners organisation;
•   lines of communication;
•   standards to be achieved; and
•   procedures to be used.

Establish procedures for the Contract and
ensure staff adequately trained.
Implement  procedures

Carry out systematic audits of Quality System
to ensure that it is operated effectively

Where non-conformances are identified, to :

•   correct the non-conformancc; and
•   examine the conditions which gave rise  to the non-
    conformancc and change or eliminate those conditions.
3.2.7          Phase S • Operation (Landfill)

                The operational phase of the landfill site conducted by either the Owner or a
                Contractor should be subject to good operational and management practices as
                outlined in recognised Codes of Practice, Regulations and the Site Licence.

                The implementation of a Quality Management system (such as BS 5750) will be a
                major contributor to good practice. A good interpretation of this is to be found in
                the Institute of Wastes Management publication 'Applicability of Quality Assurance
                to Disposal of Waste to Landfill'.

                In establishing the operating procedures il is  important that  the  interfaces between
                the collection and handling and the utilisation of LFG are adequately addressed.
                               E-23

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3.2.8          Phase SB - Operation (Gas Production)

               Gas handling, distribution and utilisation (eg. generation of electricity) are all
               potentially hazardous activities and it is important to establish good operating and
               maintenance procedures, and to ensure that staff are fully instructed in their use.

               A rigorous system of permits to work should be established for potentially
               hazardous areas and be followed in detail by all staff. There are accounts of
               catastrophic events arising out of failure to observe such systems.

               Test equipment and instrumentation required in the operational phase should be
               recalibrated on a regular basis if its output is to be relied upon for indication or
               control. These instruments require careful maintenance and are probably the most
               important components in the safe operation of gas management installations.

3.2.9          Phase 6A - Shutdown (Landfill)

               In most cases the shut down of the landfill site operations will precede that of the
               gas handling system which may have to continue operations for  up to 30 years
               more.

               Following the completion and closure  of the landfill site and  placement of the
               capping and restoration layers, most of the operational staff will depart and the
               responsibility for subsequent site monitoring may be passed on to others.

               Whosoever has this responsibility should ensure that monitoring procedures,
               acceptance, warning and alarm levels are established and the reporting procedures
               include regular confirmation  that the site condition is safe and environmentally
               acceptable. The Regulatory Authorities and their role should also be clearly
               identified.

               All parties should be aware of their management responsibilities and interfaces,
               forms of reporting, periodic review and verification of the monitoring procedures,
               and  formal management reviews of the reports and  trends. Records should be kept
               based  on measurements or observations recorded.

               Procedures, responsibilities and the lines of communication should be established
               and  documented identifying the actions to be taken  in the case of an incident.

3.2.10         Phase 6B • Shutdown (Gas Production)

               As gas generation will decrease with time, the decommissioning of the gas handiinj
               and  utilisation facilities will probably be phased and plant, equipment and  staff will
               gradually be removed from the site.

               As the dismantling and removal of the plant may be carried out alongside  operating
               plant by staff or contractors brought onto the site for that specific task (and not
               necessarily familiar with working in hazardous environments), there is a need to
               plan and prepare procedures  for the decommissioning of the gas handling  plant
               from the outset.

               It is important to ensure that small or  post operational sites are  included in the
               routine of internal audits and management review,  and  are not overlooked. This
                            E-24

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              can be avoided by formulating procedures to ensure that there is regular
              environmental auditing, and careful review of the site reports, in addition to a QA
              systems audit.
3.2.11         Phase 7 - Monitoring
              A site should be monitored until such time as it has been finally verified that it
              poses no threat to the environment, and this monitoring should  be undertaken by
              competent persons in accordance with agreed procedures.

              Regular audits and reviews of the effectiveness and meaningful ness of the
              monitoring programme and records should be conducted by the responsible
              management and the Regulatory Authority as required.

              The instrumentation used in monitoring must be suitable for the purpose for which
              it is used and calibrated appropriately, and this operation must be included in the
              internal audit programme of the organisation responsible for monitoring.

              Whilst the above is mainly concerned with the  activities of the organisations,
              Owners and Operators directly responsible for  the operations, the Regulatory and
              Statutory Bodies should also be aware of their  responsibilities and  their interfaces
              in the management systems.

              Ideally these Regulatory Organisations should have established  their own quality
              systems, with written procedures to ensure that their staff are fully aware of their
              responsibilities, are trained to carry our their duties, and respond correctly at all
              times avoiding  delays in decision making, particularly as delays may have
              detrimental effects on the gas  management system and safety.
3.3           TRAINING AND PREPARING STAFF

              The requirements of The Environmental Protection Act of 1990 (EPA 1990) and
              the management of a QA system place emphasis on competent persons in key
              positions, and this implies:

              •  well defined task or job responsibilities;

              •  effective recruitment and selection of employees;

              •  thorough initial training and preparation;

              •  safety and quality awareness (Important for insurance purposes); and

              •  on-going vocational training.

              Systems are required to identify the forms of training required to deal with the new
              recruit to LFG operations, and to upgrade the incumbent employee as techniques,
              systems or responsibilities change.

              The employee should be trained to operate equipment and perform tasks safely with
              a background of knowledge as to what the implications or effects of his actions
              may be.
                           E-25

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               Competent well-trained persons are required for the design, construction, operation
               and monitoring phases of the scheme, with specific high levels of competence for
               operational specialists and additional certified levels of competence for mechanical
               and electrical specialists.

               Training should include instruction by persons who understand the problems and
               difficulties of the tasks, so that the training has relevance and credibility.
               Equipment specialists may feature in this programme.

               QA systems require that training should be conducted in a formal manner,
               examined and upgraded as necessary, with appropriate records to show that
               training has been given.

               Vocational training and feedback  'workshops' held  between operational and design
               staff on a regular basis will aid appreciation of the others problems and concerns.

               Training should include sufficient background and specific relevant aspects of
               legislation and regulations applicable to the employees responsibilities.

               Employees should be provided with the appropriate tools, equipment, and
               instructions for them to perform their task effectively and safely. This includes
               safety or personal protective equipment (PPE) as appropriate, particularly in
               relation to COSHH (Control of Substances Hazardous to Health).
3.3.1         Records
              QA can only work if there are adequate records and a 'paper trail' which can be
              checked and audited.

              In an extreme case, it is sometimes possible to identify the complete history of each
              individual electronic component in an assembly, so that in the event of failure, the
              cause of failure might be identified.

              Whilst most QA systems will  not necessarily give or warrant this degree of
              information retrieval, the ability to check and prove that procedures have been
              adopted and used gives confidence to any eventual result and by installing alarm
              thresholds which give a signal when reached, fault events may be identified before
              they get to unacceptable or tragic proportions.

              Records start with individual items of information being incorporated into larger
              more complex reports and forms to give a hierarchical structure to the data, with
              appropriate cross referencing between related streams of information.

              Landfill sites can remain biologically active over very many years, it is therefore
              important not only to ensure that records  are safely and securely kept  but that they
              are updated regularly and are  available when required for inspection, use and
              analysis.

              Records required will cover not only structural and design matters but the
              operational  details relating to  how the landfill site was filled,  in what  order and
              with what materials, which can influence subsequent gas production.
                            E-26

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3.3.2          Techniques la Accommodate Variations

              The conceptual and detail design and planning stages for a LFG management
              scheme should give rise to Working Procedures and records which are produced
              and  monitored by the QA system.

              Operational experience, or additional information may lead to the need to change
              these procedures, and a formalised approach should be applied to changes such that
              confusion is avoided.

              Changes may come about as a result of:

              •  changes in legislation;
              •  operational feedback;
              •  new techniques;
              •  modifications to  equipment; and
              •  accidents or system malfunctions.

              It is  important that the system returns information from any of the sources above to
              the designer or planner in order that the most appropriate action or cognisance of
              change is taken. Feedback or revision  information should be channelled back
              through a competent person who can  assess formally any variation from procedures
              felt necessary and act accordingly.

              In some cases, change may  come about by operatives developing alternative
              procedures which may  differ from the 'official' procedures.  Such variations may
              require  either corrective action or adoption if felt appropriate as an improved
              method  of working.

3.3.3         Communications

              The  production of working procedures  which form the substance of QA systems
              affecting day by day operations,  is in itself a communications exercise to ensure
              that:

              •  the procedures give the correct instructions  in an unambiguous form to the
                 correct person;

              •  the procedures reflect reality and are workable;

              •  the procedures are upgraded or amended in consultation with those affected;

              •  there are not two or more conflicting instructions for the same event; and

              •  there are no unnecessary overlaps and no gaps in instructions.

              Good communications are fundamental to good management, and to QA which in
              this case can act as  a screening and distribution exercise of the relevant
              information.

              LFG gas control and utilisation is a relatively specialist field which could benefit
              from wider co-operation than simply in-house.  Inter-organisational co-operation
                             E-27

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              (or even international) is recommended particularly in respect of incidents that have
              n;it liffi nr nronertv at risk
              put life or property at risk

3.3.4         Auditing
              For a QA system to work, and be seen to work, it should set out to manage its
              own affairs by checking that the systems and procedures in place are working
              satisfactorily. This can be achieved by audit.

              The ability to audit procedures and the QA system generally is a fundamental
              aspect of QA systems such as BS5750, which make them powerful in the
              formalisation of management practices, since without audit the QA procedures
              might never progress to implementation.

              Auditing by properly trained examiners performing a Quality Audit on the'
              document system being used, should aim to establish in a formal manner whether
              procedures are in place, how well they are working, and whether changes are
              necessary:

              'Properly trained' in this context not only refers to competence in the QA system
              and knowledge of its workings, but of the subject area being audited within the
              system.  For LFG and other specialist aspects of landfill or waste management this
              will realistically be a QA specialist working alongside a landfill specialist for
              aspects of detail.

              An analogy to the QA  Audit would be a management team reviewing its progress
              every 6 months in detail, looking at customer complaints, non- compliance with
              agreed standards of performance or product, changes in legislation, and readjusting
              its priorities or methods accordingly.

              QA does not take away from management the right to manage. Indeed it is a
              powerful management  tool which may reveal aspects which, if ignored, could
              produce an (otherwise) unexpected result.  Management may well think of the
              consequences if appropriate changes are not adopted and equally what would
              happen if changes are not fed back to personnel responsible for design and
              planning. QA helps to do this formally if not automatically.
3.4           RISK AND RISK MANAGEMENT

              In parallel with a QA approach to the design and planning of a LFG control or
              utilisation system, there should also be a formal risk evaluation and assessment
              exercise.

              Risk management may be defined as a 'programmed plan of action aimed at risk
              identification, risk evaluation and risk control (the elimination of avoidable  loss and
              the reduction and containment of other losses)'.

              Some of the risks identified may be more appropriately considered as relating to
              the landfill rather than LFG, but any overlap experienced as a result  is considered
              to be better than an omission.
                           E-28

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               This is particularly true with much recent and developing environmental legislation
               having an emphasis on the management of risk in accordance with the 'polluter
               pays' principle. This puts the responsibility for preventing pollution and improving
               the environment on industry, and for civil damages, on the polluter rather than
               transferring the risk to the insurer in the first instance.

               The usual approach employed within the insurance industry is as follows.

               • Identify Risk.
               • Evaluate Risk.
               • Control Risk:
                 •  financially; and
                 •  physically.

               The approach is stepwise, starting with risk identification, through evaluation to
               risk control. The physical control of the risk should generally be undertaken by
               the Owner,  Operator, manufacturer etc and should utilise processes such as risk
               avoidance, through, for example, selection of safe methods of manufacture or
               hazard-free  products.  It also involves risk minimisation - for example the use of
               carefully worded instructions for users of products, or guarding of machines at
               installations and facilities.

               The financial control of risk involves both risk retention or assumption and
               transfer. In the case of risk retention the 'creator' or 'owner' of the risk  elects to
               retain the risk and meet any costs arising from his own funds.  The process of risk
               transfer is fundamental to insurance.  It involves the transfer of risks from the
               insured party to the insurer and is accomplished by  payment of a premium.  This
               serves to illustrate the importance of risk identification and risk management to the
               insured party in addition to the insurer.
3.4.1          Risk Identification
               This initial process should be conducted by those within the organisation likely to
               be involved with the LFG scheme, and can take the form of a 'brainstorming'
               session at which the various interests are represented. Its purpose should be to
               identify the risks by asking questions such as:

               •  what can go  wrong?; and
               •  what will happen when it. goes wrong?

               For a landfill producing gas this could give rise to a list such as that given  in Table
               3.4a below. The list is only illustrative, and the process may be summarised by
               indicating risks  which give rise to:

               •  injury to individuals;
               •  damage or loss of property;
               •  impacts on the environment; and
               •  consequential losses.
                            E-29

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 Table 3.4a     Examples of Potential Risks
                 Action
                                              Potential Effect
                                                                             Potential Risk
                 Landfill Operations
                 Landfill Gas Management
                 Exploitation of gas
Site lining failure, leachale
migration.

Incorrect wastes types

Litter.

Uncovered waste encouraging
birds.

Hazardous conditions on cite.
Gas 'escape' or migration
Process equipment failure
                 General
Flare

Settlement of landfill (gross and
differential)
Surface water &
Groundwatcr
Contamination

As above. Reaction

Cattle choking.

Aircraft bird strike.
Injury to workers,
visitors, trespassers etc.

Fire, explosion,
asphyxiation.
Plant or crop damage.
'Blighting' of land.

Gas migration or leakage
Failure to supply
customers
Consequential loss

Navigational distraction
hazard

Building structural
damage. Damage to
foundations. Damage to
gas collection equipment.
3.4.2           Risk Evaluation

                The task of risk identification may suit the 'brainstorming' approach because at thai
                stage no priority or likelihood evaluation is enacted, the task is simply to identify
                not quantify the risks.

                In order for risk to be managed, there is a need to evaluate:

                •  the likelihood of occurrence;

                •  the probable cost of occurrence (in physical and financial terms); and

                •  ways in which the risk could  be mitigated.

                The subject of risk evaluation is  quite scientifically based and it is possible to
                calculate the outcome and probability of most  risks.  In so doing, various types of
                risk will be identified and may be categorised  as given in Table 3.4b.
                                E-30

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Table 3.4b     Categorisation of Risks
3.4.3
Event Probability
Lav

High

Effect when it
happens
Significant
Low
Significant
Low
Cost to overcome or
mitigate
Low
High
Low
High
Low
High
Low
High
• Possible Action
Resolve
Consider
Resolve
Ignore
Resolve
Consider
Consider
Ignore
*  Shown for example purposes only.

The mathematical assessment can go further and give an indication of best
investment of time and money towards reducing the risks to an acceptable or
reasonable level, though what is 'acceptable*  or 'reasonable' may be determined by
factors outside the scope of pure risk assessment or costing such as:

•  legal requirements;

•  Company or organisation policy or ethos;  and

•  public perception.

In the case of LFG, the subject is not only specialised but also has little hard
evidence with which to check theoretical predictions taken  from the extrapolation
of similar risks in other industries.  This absence of 'hard' information not only
makes risk assessment difficult,  it makes the  assessment of insurance premiums for
indemnity of these risks equally difficult for the insurance  industry to calculate.
Premiums may  therefore vary widely between insurance companies.

Before dealing with insurance, it is necessary to consider a further step in risk
management, Risk Control and how it is achieved.

Risk Control

Having identified the risks, the following issues should  be  addressed:

•  the likelihood of occurrence;

•  the effects of an occurrence;  and

•  the cost of mitigating, reducing or eliminating the risk or its effects,

The outcome should enable management to make decisions as to how  to deal with
the risks.
                           E-31

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               In some cases, for example,  where there is a low probability of occurrence and the
               effects of an occurrence would be minor, it may be acceptable to take the risk and
               possibly insure against the event.

               Most risks fall in the middle ground where it is possible to reduce the risk by:

               • design;
               • physical protection;
               • supervision; and
               • alternative methods.

               These aspects may be likened to the 'design' process in QA.

               It becomes a management decision as to bow many resources are put towards
               reducing these risks,  and the manner in which they are most appropriately dealt
               with.

               The preferable route  is physically to produce conditions where the risk is unlikely
               to occur and where if it does, the effects are mitigated to a satisfactory level.

               When this is not possible, or it is judged to be too expensive for such a low  risk
               etc,  then an alternative solution may be to provide for the event in a  financial
               manner.   This could take the form of a financial fund which can be made available
               when the event occurs.

               Some events are unforeseen,  erratic, Acts of God, or are difficult to  predict, design
               out or to avoid.

               Statistics may give an indication, based on historical data and trends, of when or
               how often the risk will materialise and the insurance  industry is able  to recognise
               the probability of an event when formulating premiums for items such as fire or
               accident.

               The risk may be insured for 'unforeseen* cases where:

               • there is a residual  risk despite best efforts to avoid it;
               • where there is a legal requirement; or
               • where the cost of avoiding the risk is very high.
3.4.4         Insurance
              Insurance considers the extent to which risk can be retained, self-funded, or
              transferred for premium to an insurer.

              Traditional types of insurance include the following.

              •  Employers' liability        -      injury or accident involving employees.

              •  Public liability              -      concerning accidents to third panics.

              •  Product liability            -      concerning third parties  injured through use of
                                                  a product sold or supplied (eg LFG).
                              E-32

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 •  Financial or               -     concerning the commercial 'knock-on'
   Consequential Loss              effects of an event.

 •  Professional indemnity     -     breach of a professional's duty of care.

 •  Pollution                  -     both sudden and accidental (generally covered
                                   in the Public Liability policy) or gradual
                                   pollution (difficult to obtain in the UK).

 In addition, there are novel and unconventional  forms of insurance facility which
 may be considered.

 •  Industry fund or insurance pool.

 •  Captive insurance company.

 •  Environmental Impairment liability insurance (which requires a pre-insurance
   site survey).

 In assessing insurance premiums, and the risks which any particular insurance
 company is prepared to insure,  cognisance should be taken of the operator's
 commitment to:

 •  efforts to reduce or mitigate risks;
 •  a comprehensive safety policy;
 •  a comprehensive environmental  policy;
 •  BATNEEC (best available technology not entailing excessive cost) or BPEO
   (best practical environmental option) approaches; and
 •  QA to a recognised standard.

 Depending upon the commitment and its manifestation in reality, premiums  may be
 lower than for an equivalent operation which ignores risks or does little about
 them.  Such an organisation may well have difficulty in getting insurance in
extreme cases.

Some aspects of insurance are already a legal  requirement for anyone employing
 workers, running a company or operating vehicles, for example,  and there has
been discussion that there should be insurance or financial guarantees to cover
potential damage to the environment.

It is too early to say whether EC directives will require compulsory insurance,
because the legislation is  currently  in a state of flux, but if it were the case then it
would effectively make insurers the licensors of landfill operations.  However, if
 insurance were not to be  made compulsory, it would enable agreements to be
negotiated between insurers and operators, and allow banks to participate in the
provision of finance. However, another legislative trend is towards strict liability
for injury or damage (Directive for Civil Liability for  Waste Damage) which could
involve further scope for  insurance.
              E-33

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                                 Fl§ltre hi-2   Simplified Protest Cr Instrumentation Diagram for Typical Landfill Gat Abstraction and Utilisation Systc
                                                   o
m
                    -m-
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                    n»o(NSATT
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Gas Utilization Technology

Exerpt from  "Guidelines for the Safe Control and Utilisation of Landfill Gas."
Cooper, G., Gregory, R., Manley, B.J.W., and Naylor, E. 1993.
ETSU B 1296-P1.  DoE Report CWM067A/92.

Reproduced with permission from the Energy Technical Support Unit (ETSU), Department of Trade and
Industry, U.K.
Address of ETSU:
       Harwell, Didcot
       Oxfordshire OX11 QRA
       United Kingdom

       Telephone:     (44) 0235 43
       Facsimile:      (44) 0235 43
                                             E-35

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              GAS UTILISATION TECHNOLOGY
4.1           INTRODUCTION
              Many schemes for the utilisation of LFG are technically feasible: but other factors,
              such as economics, environmental and planning constraints currently limit the use
              of a significant proportion.

              For schemes in operation in the UK,  US and Western Europe, energy recovered
              from LFG has been used to drive electricity generation  equipment, or may be used
              directly in the following applications:

              • boiler firing;
              • brick burning in kilns;
              • cemenf manufacture;
              • stone drying;
              • district heating;
              • greenhouse heating;
              • augmenting national gas supply  (US); and
              • vehicle fuel.

              The methane content of the recovered gas has a strong bearing on the potential gas
              end  use and its economics. Table 4.la shows the minimum methane quality of
              LFG for various applications.

              The quality of gas required for electricity generation purposes depends upon the
              type of engine used.  Reciprocating engines ideally require more than 28%
              methane, whilst gas turbines will run at greater than 35% methane.  Tables D1-D2
              in the Annex list details of some of the  current utilisation schemes which produce
              electricity, and show the gas yields and electricity production achievable with
              current technology.

              Use of gas as a boiler fuel or kiln fuel requires a minimum methane concentration
              of about 35%, but this is dependent upon design of the  boiler or kiln burners.

              In all  cases, the gas quality must be maintained above the upper explosive limit
              (approximately 15%  methane) for the collection and utilisation system to operate
              safely. Dilution of any LFG  sample, with carbon dioxide concentration of 78% or
              less,  by air will result in a flammable mixture  being formed when dilution leads to
              7-15% methane.  If,  however, the carbon dioxide content exceeds 78%, then no
              methane - carbon dioxide - air mixture is flammable.

              This  is an important  concept to understand because even for the safe flaring of gas,
              the methane concentration must exceed -20%.  For the safe flaring of LFG, a
              concentration of 8%  oxygen or less within the LFG (prior to addition of
              combustion air) is required.  Typically, oxygen concentrations in the gas  from a
              control scheme pumped to a flare stack will range from 2-4% oxygen, and levels
              above 6% tend to indicate overpumping.  Flares  will not function at low methane
              concentrations. Whilst this is equipment-dependent, flaring is not practicable
                           E-36

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               below  17% methane, and equipment manufacturers will typically specify minimum
               methane concentrations of between 20-25% as an operational limit for flaring.
 Table 4.la    Gas Utilisation End Use
                Potential Gas Eod Use                   Minimum Methane Concentration

                Pipeline methane                         95% (not applicable in UK)

                Reciprocating engine fuel                  28%

                Rotary kiln fuel                          35%

                Gas turbine fuel                          35%-40%

                Boiler fuel                              35%-4O5t

                Control of gas-related emissions             20% (Approx. - must be flarable)

                Control of migration                      No lower limit if simply vented

                Notes:

                1.    All values arc approximate and will be situation and site-specific.
                2.    Depends strongly on depth of cover, and extraction approach as well as end use.
               There are no limits to landfill methane quality if the gas is simply vented, save to
               say that there is scope for flammable concentrations of LFG to
               build-up in passive venting boreholes on older landfill sites as the methane
               generation rate decreases.
4.2            DIRECT USES OF GAS
               To be successful, a project for using LFG as a fuel must be both technically as
               well as economically sound.  Each scheme is different and  requires individual
               attention to detail.  It  is, however, possible to express a general  view on relative
               risk and likely viability of different producer-user schemes.

               By far the simplest and lowest risk option is the direct use of gas replacing  coal,
               oil, LPG or natural gas using modified gas burners.  A number of such schemes
               have been  successfully demonstrated and risk to the user is low, in terms of gas
               quality, use and continuity of supply. Payback for the user may be less than one
               year but depends  heavily upon the price negotiated with the LFG consumer. A
               typical value would be 10-20% less than the price paid for  the fuel replaced (e.g.
               gas, oil, LPG or coal).  The discount the supplier can offer will be linked to
               recovery, transmission and pipeline cost  which will be influenced by:

               •   the distance and terrain  or obstacles over which the gas  has to be piped;,

               •   the quantity of gas a user can take and variations permitted; and

               •   the quality of gas acceptable.

               An idea! situation would be a user who could take all of the gas generated and who
               is located adjacent to a landfill site: a situation often found  at brickworks, cement
                             E-37

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               works or other quarry related industries - hence the preponderance of such schemes
               in this sector in the UK.

               Any commercial proposition for direct burning should be based upon the
               consumer's existing fuel prices, since the LFG would be offered as an alternative.
               Involved  in the equation are other factors such as:

               • modifications to the consumers equipment;

               • initial  costs of gas supply (boosters, pipeline etc);

               • operation of gas supply plant;

               • any reduction of efficiency through LFG utilisation; and

               • the percentage use of production from sue.

               The supply of untreated LFG directly to British Gas to augment the natural gas
               supply is  not an acceptable option for a number of reasons;

               • British Gas will not accept gas with less than 95% methane;

               • the presence  of higher hydrocarbons is also unacceptable; and

               • the cost of scrubbing carbon dioxide from LFG, and removal of many of the
                 trace components is generally prohibitively expensive.
4.3            POWER GENERATION
               The generation of electrical power using LFG is another popular method of
               utilisation.  In considering the prime mover for generating electricity using a
               gaseous fuel, there are currently four options:

               • reciprocating internal combustion engines.

               • gas turbines.

               • other technologies, including steam  turbines, external combustion (Stirling)
                 engines and fuel cells.

               With the exception of some of the other technologies, all are established and well
               understood technologies, which have been used for power generation the world
               over for a considerable period of time.  All are capable of operation on LFG.
               However, some modifications are generally necessary to allow for the  calorific
               value and flame speed of landfill gas.

               Each of these is described briefly in the following sections.
                             E-38

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4.3.1          Reciprocating Engines
               Reciprocating engines are currently the most common type of prime mover in use
               on LFG utilisation schemes. They are relatively small in size (typically a single
               spark ignition engine designed to operate on LFG will produce 250-60QkW of
               electrical power), and so utilisation schemes can be considered with, for example, a
               number of such engines employed at the start of a scheme.  Engines may then be
               phased out or moved to alternative utilisation sites, as gas production drops.

               Reciprocating engines commonly used for LFG generation schemes fall into two
               main categories:

               •  spark ignition; and

               •  compression ignition (diesel engines).

               Dual-fuel compression ignition engines still have a small supplementary fuel oil
               requirement (typically less than 15%, subject to the calorific value of the feed gas)
               which acts as an ignition source whereas with suitable carburation, spark-ignition
               engines will run entirely on LFG. In genera], the ignition timing must be advanced
               beyond recommended settings for natural gas.  With the absence of manufacturer's
               operating data, the required setting will usually have to be determined experimen-
               tally.

               Lubricating oil condition must be monitored regularly. Operational  experience has
               shown that oil acidity builds up rapidly and that this, if left unchecked, will lead to
               premature bearing failures. The characteristics of the lubricating oil employed are
               critical and should be closely monitored.

               Individual manufacturers specify different gas clean-up and supply pressure values.
               Engines are available which will perform on relatively low quality LFG (25%
               methane) whilst delivery pressures vary from 0.1 to 6.5 bar (gauge) of de-watered
               LFG.  Spark ignition engines are available up to approximately 3.QMWC output
               (more ususally lMWe or less), whilst compression ignition engine sets can be as
               large as 10MWe.

               It is often  possible to find high quality used  or re-conditioned reciprocating engines
               of various sizes.  Some modifications may be necessary for use with LFG, but the
               potentially lower capital cost of such plant can have significant benefits to pay back
               and economic viability of a scheme.

               Recently, engine manufacturers have noted the interest in the LFG market and have
               been producing packages comprising engines in ISO - style containers complete
               with generators and electrical control equipment. These systems are set up to run
               on LFG from the start and require only relatively low delivery pressures, allowing
               the use of electrical blowers, to supply the gas rather than  costlier compressor
               equipment.

               When purchasing new equipment, these complete packages, together with a
               guaranteed fixed-price maintenance contract (typically Ip - l.2p/kWh produced
               including oil. pans and  labour) can offer assured costs at the start of the project.
                             E-39

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4.3.2         Gas Turbines
              The basic operating cycle of a gas turbine is simple and for open cycle operation
              occurs in three stages:

              •  air is compressed in the compressor stage;

              •  the compressed air is fed to the combustion chamber, where fuel is added and
                 ignited; and

              •  the resultant high pressure gaseous mixture expands through a turbine, thereby
                 releasing its energy as useful work at the turbine shaft.

              Gas turbines are available from as small as 50kW to over 200MW, but are usually
              considered only for the larger LFG utilisation schemes.

              Gas turbines used to date have lower emissions of carbon monoxide, unburnt
              hydrocarbons and oxides of nitrogen than reciprocating engines, but have relatively
              low conversion efficiencies. They can also be configured to provide a wide range
              of operating parameters that improve efficiency, power output and emission clean-
              up at increased capital expenditures through techniques such  as combined cycle
              operation (generating steam via a waste heat boiler and thence operating  a steam
              turbine).

              Pre-treatment of LFG prior to supply to a gas turbine can include de-watering,
              cooling, filtration, scrubbing and compressing to between 6 and 13 bar (gauge).
              The carbon dioxide content of the gas is advantageous in a gas turbine during the
              expansion in the turbine, thus eliminating the need for carbon dioxide scrubbing.

              Additional characteristics of a  gas turbine scheme include the following.

              •  Ability to run on several fuels. This allows the turbine to be run on another
                 fuel (e.g. light fuel oil) whilst the gas compressing equipment is being
                 overhauled  and the output  to be maintained as  the LFG production decreases
                 with  time, by augmenting the fuel input.

              •  Low vibration, allowing foundations to be relatively small,  and rooftop
                 applcations possible for  small CHP schemes.

              Ambient air temperature  affects the turbine output; at lower  temperatures air has
              greater density which has efficiency benefits for a given quantity of fuel.

              Problems with gas turbine schemes on  landfill  projects are generally associated
              with high operating and  maintenance costs.

              In short term projects, as many small LFG utilisation schemes are, such problems
              may outweigh  the benefits.
                            E-40

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4.3.3         Other Technologies

              Steam Turbines
              Steam turbines are by far the most common prime movers for the large scale (base
              load) generation of electricity.

              The basic steam cycle is known as the Rankine cycle.  In this cycle water is
              pumped into a boiler in which heat is supplied to convert the water into steam.
              This steam is then utilised in a steam turbine to drive the alternator.  The steam
              exhausting from the turbine is condensed and then pumped back to the boiler to
              complete the cycle.

              Steam is supplied to a turbine at high pressure and temperature from a boiler and
              the energy in the steam is converted into mechanical work by expansion through
              the turbine.

              Steam turbine characteristics can be distinguished from turbo-charged reciprocating
              engines  and gas turbines in that the LFG requires minimum compression for use in
              the boiler of the steam turbine. In addition, the LFG is  fired on the external
              surfaces of the boiler tubes and the products of combustion exhaust through the
              stack. Therefore,  any corrosion affects  the static cooled components rather than
              hot moving parts.  Steam turbines, however, require auxiliary equipment such as
              water treatment, cooling towers, water disposal (blowdown), water make-up, water
              pumps,  etc. Some boilers may also require continously  manned operation.
              Because of these factors,  only  larger plants should be considered for economic
              operation.

              External Combustion (Stirling) Engines

              Unlike reciprocating and  gas turbine engines which are based on internal
              combustion of the fuel, the Stirling Engine is an  external combustion device, using
              an inert  gas as the internal working fluid.  The external  combustion process is
              required to act at typically one end of the engine and is quite separate from the
              internal  working fluid and moving parts  where lubrication is required. As a result,
              combustion conditions can be adjusted to suit the fuel, lubricants avoid
              contamination from contact with combustion products, and the heated section of the
              engine is easily accessible for cleaning, repair or maintenance.

              Unfortunately, development of the Stirling Engine has been spasmodic, and in
              recent years has focussed on smaller units.  Typically the power range may be
              measured  in hundreds or  thousands of watts.  Larger units may have outputs from
              5kW to  about 50kW.

              For a user of LFG, the Stirling Engine gives  certain advantages, but unless larger
              units are developed, their use may be  confined to remote applications (where there
              is  no electrical power but there is a source of LFG) where it could drive a
              generator  or pump:

              •  to extract gas and provide a reliable supply to a local flare;
              •  to provide electricity for local  use; and
              •  to pump borehole or local leachate;
                             E-41

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              Fuel Cells

              The fuel cell is an emerging technology that can convert methane directly to
              electricity.  Currently a 4QkW unit is in operation on LFG at Industry Hills,
              California.  The-Industry Hills unit operates with a gas  pretreatment train
              consisting of a carbon dioxide membrane separation system and an activated carbon
              bed.

              Fuel cells are still in the transition from research and development into production.
              Few units have been produced to date and as such purchase costs are very high.
              This coupled with the level of gas processing required,  render such schemes
              beyond practical and financial reality for the current UK market.
4.4           COMBINED HEAT AND POWER (CUP) SCHEMES

              All forms of electrical power generation by mechanical  means rely on heat being
              released of which only a proportion is used effectively.  Losses are in the main
              through exhaust gases and cooling water and these can account for up to 75% of
              the total energy input value.  Means are available to utilise a large proportion of
              this otherwise wasted heat for other processes, thereby increasing the overall
              thermal efficiency of the scheme and  generally enhancing the economic viability.
              Such schemes are generally known as Combined  Heat and Power (CHP) cycles.

              There are several possible uses of the waste heat  and these can often be tailored to
              suit the local requirements.

              Common CHP schemes utilise the heat  as follows:

              •  high pressure steam for either process uses, or further electricity generation in
                 steam turbine plant;

              •  low or medium pressure hot water for pre-heating boiler feedwater, district or
                 building heating;

              •  low pressure steam for absorption chillers to provide cooling water for air
                 conditioning of buildings  etc; and

              •  high pressure steam for injection into the turbine stage of a gas turbine (which
                 results in a significant increase in  output of up to 50%.

              Whilst CHP schemes using reciprocating engines are possible the lower grade of
              heat available imposes certain restrictions to the number of permissible options.

              However, a number of engine manufacturers provide this option as pan of their
              LFG gas engine  'package'.

              Although advances have been made in more efficient design of smaller sized steam
              turbines,  the capital cost and size of the auxiliary plant are high for such a prime
              mover. However, use of small turbines in  a CHP scheme could still be considered
              as a potentially attractive  proposition.

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Annex D
Tables of Operating Details of
Some UK  Landfill Gas
Utilisation Schemes
TABLE Dl    Utilisation Information for
             Electricity Generation Schemes
             - Site Plant Details
E-44
TABLE D2    Utilisation Information for           E-46
             Electricity Generation Schemes
             - Site and Economic Viability

TABLE D3    Utilisation Information for Direct     E-48
             Use Schemes
             - Site and Plant Details
TABLE D4   Utilisation Information for Direct
            Use Schemes
            - Site and Economic Viability
E-49
         E-43

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             Table  Dl - Utilisation  Information for Electricity Generation Schemes  - Site and Plant Details
               Landfill Site
               Allsnpp* Hill
m
               Applcy Bridge
               'L1 Field. Slcwnrtliy
                                      Operator
                  Tjpe of System
                             End Use
                           Observed Problems    Serrice Period
                                                                                                    Reference
Tarmac
Econo waste
Wimpey Waste
Management
Mainsprint  Joint
Venture
Shanks and
McEwan
(Southern) Ltd
Two re-buill Allen dual-fuel
reciprocating engines
producing lOOOkW. Directly
coupled to air cooled Brush
generators.


Two Brons Man VI8 spark
ignition naturally aspirated
engines each I.05MW
415/11000V.  Two to follow
(1991).  Two planned.
Reciprocating spark ignition.
4 Dorman turbo charged  12
cylinder engines. 275kW
output al lOOOrpm on landfill
gas.
Gas compression:
Single constant displacement
vane type unit supplying
680m'/hr
Electricity
Two-thirds exported to
Midlands Electricity Board.
One-third internally for
power to Tarmac during
operations.

2.0MW of electricity and
0.7MW of hot water
recovered from one engine
cooling system.  Export to
Norwcb, internal
electricity, and water to
fish farm.

Electricity.
73% of electricity to local
brick works (London Brick
Company)
14% to Eastern Electricity
Board
13% for internal
consumption
                                                                                                                                                            Good (1990)
Grid system
variations, gas
delivery techniques,
and minor electrical
faults on auxilliary
equipment
Mninly in areas of
the plant not
associated with
burning of Landfill
gas. Some wear and
deposits in some
areas
Minor 1250 hours.
Major 8750 hours,
12,000hrs, 20,000hrs



5000 hours
10000 hours
16000 hours
22000 hours
28000 hours
34000 hours

Thomns (1991)





Ewbank Prcece Ltd
(1990)

Homsby (1990)
MOSJ (1991)



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               Table Dl  -  Utilisation  Information  for  Electricity  Generation Schemes - Site and  Plant Details (contd)
m
i.
en
Undfill Site
Mcriden
(P.ickinglon)



Ollcrspool





Slonc Pit (1)




Operator
Packinglon
Environmental
Energy
Resources Lid
(PEER)
Merseys idc
Development
Corporation



Blue Circle




Type of System
Cenlrax Gas Turbine
1 x 3.65 MW
British Generator
- BARSD- IlkV 3-phnsc
50 Hz at ISOOrpm Hr
Two Caterpillar G399 spark
ignited gas engines with
generators producing
lOOOkW configuration oC
VI6. Run directly on
landfill gas.
Two Caterpillar spark
ignition (ex-diesel) engines.
Configuration of VI6 and
producing 720kW

End Use Observed problems Strrice Period
Electricity generation.
Exports to East Midlands
Electricity Board


Electricity exported to
Local Electricity Board.




Electricity exported to At npprox 3000 hours Overhaul every
Local Electricity Board severe wear had 10,000 hours
occurred on the
valves of one of the
engines.
Reference
Homsby (1990)




Malan (1988)





Robinson (1990)




               Slonc Pil (2)


               Wapscy's Wood
Britannia Refined
Metals Ltd

Green Land
Spark-ignition engines
650kW output

l.2MWdual fuel engine
fitted with 3.3kV alternators.
Dual fuel6!585bhpor
l256.5kW600rpm
Electricity generation for
internal use.

Electricity generation.
Exports to Spulhcm
Electricity
No evidence of
corrosion or faults.
Gas scrubbing
systems used
                                           Robinson (1990)


                                           Limbrick (1990)

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           Table D2 - Utilisation Information for Electricity Generation Schemes - Site and Economic Viability
O)
landfill Start Up Date Quality and Quantity
of Gas Used
Allsopps Hill October 1989
Applcy Bridge No 1 engine 54-56% CH4
March 1990 1 ISOm'/hr at 60mBar
No 2 engine suction
October 1990
'I' Field Slcwartliy March 1987 40%-50% methane
content
330lcepa
(300 m'/hr)




Mcridcn (Packinglon) Oclober 1987 60% methane content
although it can run on
40%. Minimum of
3400m'/hr


Power Generation
2MW
2MW



!7.6GWIir to
December 1989
(internal power
combustion 10%)




June '88-Junc '89.
Gross generation
19.34k\Vh. Actual
export 3.5-3. 7MW.
(internal power
consumption 17%)
Operational Payback
Availability Period/Cost
—
No 1 engine over 1 In fourth year
year 85%.
No 2 engine over 4
months 97%
Up to December 2.6 years
1989. 3 units have £418,470
completed 22000 (contract cost)
. hrs. Service factor
95%. Capacity
factor 91%.
Running load
(overage 266k W)
June '88-June'89. 5 years £1.94m
Service factor 90%.
Capacity factor 61%



Other
Comments
-




Brickworks and
10% to Easlem
Eleclricly
Energy savings
are equivalent to
96000 GJ/yr


Specific cost per
unit output
£654ftW (1988)



Reference
Good (1990)
Thomas (1991)



Ewbank Prcecc
Ltd (1990)
Homsby (1990)





Homsby (1990)






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            Table D2 - Utilisation for Electricity Generation Schemes - Site nnd Economic Viability (contd)
m
Landfill Swrt Up Date Quality and Quantity Power Generation Operational
of Cos Used Availability
Oncrspool June 1986 25-50% Methane IMW
content




SinncPil(l) April 1989 30-45% Methane IMW
content




Slonc Pit (21 Autumn 1989 42-52% methane I.3MW
content
Wapscy's Wood October 1987 Runs on 28-55% I.2MW Thermal efficiency
methane, and > 10% of engine is 40.%.
pilot fuel Operational
availability 90%.

Payback Other
Period/Cost Comments
3 years Gas engines arc
£525.000(1986 capable of
price) operation with
methane as low
as 25% (Usually
«el at 28-35%)
Savings in the
region of 2.75M
units electricity/
year at an
average price of
4.3p/kWh
Provides 40% of
electricity used
£900.000(1987 Energy savings
prices) in region of
260,000 OJ and
£660.000 (1987
price*)
Reference

Matan (1988)





Robinson
(1990)




Robinson
(1990)
Limbrick
(1990, 1991)




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Table D3 - Utilisation Information for Direct Use Schemes - Site and Plant Details
Landfill Site Operator Type of System
HI Avclcy Aveley Methane Ltd Combined cycle CHP
g£ plant with a Ruston TB
5000 gas turbine.
lOOOOrpm. Hot
exhaust gases from (he
gas turbine arc ducted
to an existing high
pressure water lube
boiler.
Bidston Moss Bidstone Methane Multi fircd maxccon
shell boiler rated al
30.000lb/hr wilh a
working pressure of
150 psig. Using
landfill gas as main
fuel supply.
Bilham Quarry Lemacc Lid Secondhand Ideal
Brodsworth Standard Britannia
Boiler wilh a fully
automatic Wcishaupt
dual fuel burner.

End Use Observed Problems Service Period Reference
Purflcel Board Mills 133 hours shutdown — NIFES (1985)
boiler (waler lube) due to control oil Thermal Dev Ltd
system. (1990)






Premier Brands Ltd No evidence of — NIFES (1988a)
Boiler (shell), landfill corrosion or other (1988b)
gas 2.5km to n shell major faults.
steam boiler which is
used for food
production.

Lemace Ltd Boiler. - - Davies (1990)
Uses landfill gas to
power boiler which is
used for heating
greenhouses for flower
and vegetable crops

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Table D4 - Utilisation Information for Direct Use Schemes - Site and  Economic Viability
Landfill SUrt Up Dale Quantity of Gas
Used
m
j^ Avelcy December 1987 20000 Icepa
<0 (ISOOm'hr)





Bidslon Moss November 1989 4IOOtccpa
(370m'hr)

Bilham Quarry 1985 3244CJ
Brodsworth


Power Generation
2.97MWof
electrical power.
63.5 lonncs/h boiler
power. 30%
efficiency of
electricity
generation
5MW


0.06MW



Operational Payback
Availability Period/Cost
8400 hours £2.7 million
96% availability 2.8ycars





77% thermal 3-3.6yrs
efficiency
98% in 1 year
55% thermal 2-3 years
efficiency


Other Comments
Energy savings in
region of 3.05M
therm/yr or 12200
tcepa and
£970,000/yr


Energy «aving« in
the region of £21-
47,000/yr
Energy «aving«
amount to
23IOOGJ/yr«nd
£11.500
Reference
NIFES (1985)
Thermal Dev Ltd
(1990)




NIFES (I988a)
(1988b)

Dnvies (1990)




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              APPENDIX F:  MAKING LANDFILL GAS AN ASSET (Paper)
                                 Tudor D. Williams
                              Solid Waste and Power
                                 July/August 1992
                                  (page 22 to 29)
© 1992.
Reprinted with permission from Solid Waste & Power magazine,
HCI Publications, Kansas City, MO.
                                      F-1

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 Meeting Regulations
 Making  Landfill  Gas  an  Asset
 Facing new  requirements for controlling landfill gas, many landfill owners
 are eager to turn the liability of the gas into an asset. A common approach-
 installing a  gas-to-energy plant—is only one of several options for beneficial
 use of landfill gas.

 By Tudor D. Williams
  I his  summer,  the  Environmental
 Protection Agency is due to issue new
 regulations requiring control of  gas
 emissions from munidpal solid waste
 landfills. The prospect of these rules is
 spurring many landfill owners to  ex-
 plore the beneficial energy uses for the
 gas.  The thinking is that—since  the
 gas has to be collected and controlled
 anyway—it might  as  well be put to
 good  use.
   This article  provides  a brief over-
 view  of the options landfill owners and
 project .developers have for simulta-
 neously* meeting environmental con-
 cerns and improving the economics of
 their landfill projects.

 Landfill Gas Collection &
 Generation
   Landfill gas  is  collected under a
 vacuum through a system  of valved
 horizontal and/or vertical (slant) wells
 connected to a header (collection pipe)
 system arid blower. Besides recover-
 ing gas for beneficial use, the collec-
 tion system can be designed and op-

 Tudor  Williams  is  a partner in
 Cambrian Energy Systems. Cam-
 brian Energy Systems has devel-
 oped  more than 20 landfill gas-to-
 energy projects.
   This article has  been evaluated
 and edited in accordance with  re-
 views conducted  by two  or more
 professionals  who  have  relevant
 expertise.  These peer  reviewers
judge manuscripts  for  technical
 accuracy, usefulness, and overall
 importance within the field of solid
 waste management.
The Puente Hills landfill, operated by the Sanitation Districts of Los Angeles County, bums
landfill gas in oversize boilers equipped with flue gas recirculation. Recirculating the flue gas
achieves low NOx emissions. The facility produces 50 MW of power, enough to power
100,000 homes.
crated to assist in preventing off-site
migration of  gases.  The  collection
systems must also be  controlled to
minimize air intrusion, which will affect
the useful quality of the gas and can
contribute to underground fires.
  Details on the  design  and operation
of collection systems  are beyond the
scope of this article.  However, as a
general gauge for estimating project
feasibility, see the accompanying story
on landfill gas generation, "Estimating
Gas Generation Rates."

Cleaning Up the Gas
  Gas collected  from MSW  landfills
usually requires some level of cleanup
or  treatment  before  combustion.
Among the  reasons for treating the
gas are: to limit releases of pollutants
to the environment;  to prepare  a
medium-grade gas that will not cor-
rode the  reciprocating  engines  and
other equipment used  in energy pro-
duction; and to upgrade the gas to a
high  Btii,  "pipeline quality" natural
gas. Landfill gas can be burned in" a
boiler   without   pretreatment;  the
combustion process destroys most of
the trace constituents.
  The gas has a typical composition of
40 to 60 percent methane (CH,), 40>to
50 percent carbon dioxide (COJ, and 1
to 2 percent air and inert gases. The
22   SOLID WASTE & POWER/JULY/AUGUST 1992
                                      F-2

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 Table 1: Costs and Emissions for Selected Landfill Gas-to-Energy Power Options.
Technology
Internal Combustion
Engine (2MW + )
Gas Turbine
(2.7 MW + )
Boiler
(10MW + )
Organic Rankine
Capitol
Costs
(perkW)
$1.000-1.200
$1,000-1,500
$1,000-1.500
$1.000-1.500
Operations &
Maintenance
(e per kWh)
1.4-2.0
1.0-1.5
0.5-1.8
0.5
Heat Rate
(Btu/kWh)
10,500-13.000
14,000-15,000
11,300-14,000
15.500
Emissions (Ibs/M Btu)
NOx CO HCI
0.22
0.07
0.045
0.05
0.671
0.10
0.005
0.19
0.147
0.007
0.050
0.45
Ibs/M Btu = pounds per million Btu: kW - kilowatts; kWn = kilowatt-hour
gas  also  contains  other impurities,
totalling between 500 and 5,000 parts
per  million  (ppm)  by  volume,  and
condensate.
   Methane in the atmosphere absorbs
heat 20 to 25 times more effectively
than does  C02. Because of  this abili-
ty—and concerns about  its  contribu-
tion  to: global warming—EPA has pro-
posed  requiring combustion  of meth-
ane. However, to control NOx and CO
while burning methane for power pro-
duction, operators  may need  to use
catalytic converters  on the engines to
clean up the post-combustion  gas.
   To date, however, exhaust catalysts.
have not been successful on landfill gas
because some trace components in the
gas,  particularly  silica,  mask or coat
the catalysts and prevent them from
functioning  properly.  Filtration  and
washing can  minimize  silica coming
from dust,  but methods for managing
silica  from the oxidation of  silicone-
based  compounds, which have  vapor
pressures similar to water,  have yet
to be developed.
   The trace  impurities  in landfill gas
include a wide range of .hydrocarbons,
volatile  solvents  such  as  benzene,
organic sulfur  compounds, hydrogen
sulfide, silicon-based compounds, and
other compounds. Since some of these
compounds are carcinogenic, various
state and federal rules  require  emis-
sion  concentration studies, health risk
assessments, and collection and com-
bustion of landfill gas.

Managing Trace Components
   Refrigeration, activated  carbon fil-
tration, water  washing,  and  washing
processes  using Selexol®  solvent or
specially formulated  glycol are among
the methods currently used to remove
the trace components from landfill gas.
   This  fall,  Bio-Gas  Development,
Inc.,  of Atlanta,  working with Pacific
Energy, will demonstrate a new trace
component  removal system  that will
pretreat gas recovered from  the Pen-
rose Landfill in Sun Valley, California,
a suburb of Los Angeles. The treated
landfill gas  will  be used in  an. EPA-
sponsored fuel cell project.  Bio-Gas'
system,  called  GPS  HI, will  use a
combination  of  absorption  and .de-
hydration  beds and very .low temper-
ature to remove  water and trace con-
taminants, including  the silica  com-
pounds.   It  is  designed  to  treat
contaminants comprising up to about 1
percent of the gas volume.

Managing Condensate
  During  collection, the temperature
of landfill gas will drop significantly as
the  gas  is drawn from inside the
landfill (where temperatures  typically
reach more than 100°F.) Due to this
change in temperature, water vapor in
the gas condenses, creating a conden-
sate composed  principally of water,
with traces of organic and inorganic
compounds. This emulsion may sepa-
rate physically into two phases:  an
aqueous phase and a  floating hydro-
carbon phase.  The hydrocarbon frac-
tion,  which may  comprise  up  to  1
percent or more  of  the liquid,  is
sometimes collected  and sold  as  a
light industrial fuel.
  Condensate  is managed in one of
two ways. It can be  returned  to the
landfill and  managed  under,  the Re-
source  Conservation  and Recovery
Act. It also can be managed under the
Clean Water Act, if it is treated and
discharged as effluent to a waterway,
or  indirectly  discharged through  a
public treatment works.  The cost  for
condensate  disposal can vary wide-
ly— ranging  from  less  than   1  cent
per gallon for sewering, to as much as
$1.50  per  gallon for; trucking to a
remote site.

Utilization of Landfill Gas
  Several applications for using landfill
gas have emerged  in recent  years.
Many  of the  beneficial  options  are
presented in the following.

Power Production
  Electrical  power  is currently  pro-
duced  from  landfill gas at more  than
100  landfill  sites. In  most of these
applications, a  power plant is located
on  the landfill  site  and  the  electric
power  produced is  sold  to the  local
utility  under a  long-term contract.
  Some power  purchase agreements
for landfill gas projects are written to
displace retail power (that would  oth-
erwise  be purchased by  the owner of
the  landfill   gas  project),  some   are
levelized sale contracts  (usually  with
the  utility paying higher rates early in
the  term), and, in a  few  cases,  power
is wheeled  to a utility other than the
local utility.  But most projects market
power  to the local utility for the  utili-
ty's avoided cost (rate can change over
time).  The  challenge  is to develop
landfill  gas power projects that  can be
competitive with current energy prices,
which have been depressed for several
years.
  Power is  generated  using a variety
of prime movers, including reciprocat-
ing  engines, gas turbines, and steam
turbines. The power options in com-
mon use at  landfills are summarized in
Table 1. In  addition, researchers are
experimenting with fuel cells as power
generators.
  Reciprocating Engines. The  vast
majority of  projects  have been imple-
mented with  reciprocating  engines.
There are some new power generation
systems  being  introduced into  the
24    SOLID WASTE & POWERAFULY/AUGUST 1992
                                          F-3

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   Estimating Landfill  Gas  Generation Rates
 -•  ••'- •••:•:...:- ..iv^-.-y.-.  .;.  • .-^;V;.:- :/•'•••••"     "  .  '    '..'
   The three chiefvelemental cohstitijents .of municipal solid waste are carbon,
   oxygen;-and.^hydrogen. Some;nitrogen:1 and  a little sulfur, are also  present.
 :-Through microbiological fermentation, or anaerobic decomposition, these five
 V.cpnstituerits ir^;likely to prpdubei fourgases: chiefly carbon dioxide (CO?) and
 •methirie;;.'•   -•.    :.  •  ••.-••:;..
   ;^:SinciB\eC)2"1§! produced .under, both 'aerobic and anaerobic (lacking oxygen)
 i-'cbriditionsTand'iCHt from the ' latterf the'production of'COa.is highest in the first
   months pta. laihdfiH's; existence. As  CC>2 production declines, CH4  production
 *nses;::-EvenhJa]|y^YYith'in one.tp .three years-^oth  are  produced in relatively
   egua|}arriouhtsjand each makes up,aboUt;45 to 50 percent .of total landfillgas
            ""'':''''     ''''''''':''     ''"'''
 ;.^ /A I4hdfil|..generates gases for extended-periods, insome;-cases for more
 .'•:1hari?50^yearsX(fpr;>ery dry:,landfiljs), until most biodegradable material is
 vv:.exhausted5''.pgi^rei>1j.shows"-gene.i^ize
-------
 from the sale of electricity—more than
 $42  million  in  the  past  year—covers
 the gas system costs and yields a net
 revenue to help reduce the tip  fees at
 Sanitation Districts landfills.
   Fuel Cells. Fuel cells, which chem-
 ically convert  methane  directly  into
 electrical energy  without combustion,
 are currently a "gee whiz" technology.
 To  date,  the  technologies tried  have
 worked, but they are too expensive
 for  commercial application.  Still re-
 search continues, mainly because fuel
 cells can produce as much as 40 per-
 cent more  energy  from  the  same
 volume of gas as competing technolo-
 gies.
   Late  in  1992,  International  Fuel
 Cells  of Windsor,  Connecticut,  will
 test  a  prototype  cell at the Penrose
 Landfill gas project operated by Pacific
 Energy.   IFC's   system   converts
 methane to power at; low tempera-
 tures, ^and therefore,  produces  very
 low emissions. The fuel  cell cost is
 very high—approximately $2,500  per
 kilowatt—but with volume production,
 the price should come down.
 Industrial Fuel
   Landfill gas has been used success-
 fully  for  10  to 15 years as a replace-
 ment or  supplement to industrial fuels
 including natural gas, fuel oil, and coal.
 The  applications  include  steam  pro-
 duction,  brick manufacturing,  cement
 production,  glass  manufacturing,  as-
 phalt production, utility power produc-
 tion,  and others.
   The  most common industrial  fuel
 applications  are  indirect uses  where
 the landfill gas is  fired into a  boiler or
 other heat recovery device. For these
 applications, the boiler or other unit is
 sometimes  retrofitted  with  a  new
 burner  and a new fuel control system
 to accommodate the lower Btu value
 fuel.  This retrofit can cost  $150,000
 per  process unit  (boiler,  dryer, or
 furnace).  Often,  less costly modifica-
 tions are  needed.  These might include
 changing  to a double piping system to
feed  landfill  gas  at  a rate to  match
required Btu input and adding a second
carburetor.
  In  certain  applications,  where  the
modification costs are extraordinary, it
may  be  appropriate  to process  the
landfill gas to remove  the COy-and
thus  avoid the need to retrofit  new
burners.
   One long-running  direct gas sales"
project is the GSF Energy plant at the
Mountaingate  Landfill   in  West  Los
Angeles,  California.  Since  1984,  the
University of California at Los Angeles
(UCLA) has used gas generated by the
landfill to fire two boilers. One is fired
exclusively with landfill gas, the other
burns a  mixture  of landfill gas  and
natural gas. To prepare  the landfill gas
for use in UCLA's boilers,  GSF chills
the  gas  to  knock  out condensate,
compresses it  to pipeline pressure.
then uses the Selexol® solvent process
to remove impurities.  The resulting
fuel is a medium-Btu fuel, 'about 500 to
550 Btu per standard cubic foot (scf).
The gas is piped 4 miles from  the
landfill to UCLA.

Pipeline Gas
   Several proven technologies exist to
process landfill gas into a high Btu fuel
suitable for use in natural gas pipe-
lines.  These   technologies   remove
trace contaminants and the   C02 to
deliver a  gas  between  940  and  960
Btu/scf. After  treatment, the gas  typ-
ically contains  4 to 5 percent nitrogen
and  1 percent C02,  with the  balance
being methane.
   While  landfill  gas  is  readily proc-
essed into pipeline  gas,  there  is a
concern  over  future   environmental
regulations regarding the  trace  con-
taminants  from the landfill gas.  Cur-
rently, there are no national guidelines
for acceptable levels  of  trace  contami-
nants. However,  California is devel-
oping guidelines that would  make it
very  difficult  to  market  processed
landfill gas to pipelines for general use.
The proposed guidelines have included
very  stringent standards  for some
compounds; for example, the  limit on
vinyl chlorides is  1  part per billion.
Available treatment systems can  con-
trol  vinyl  chloride  concentration to
approximately 1 part per million.
   When issued, the  California guide-
lines  may influence adoption of stan-
dards in other states or at  the federal
level.  Conversion   to   natural   gas
promises to be a  very good,  econom-
ical use of the resource  in the  long
term; however, the  nature  of envi-
ronmental  regulations  and their  im-
plied risk will determine  the viability of
this market.
28   SOLID WASTE & POWER/JULY/AUGUST 1992
                                          F-5

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 Compressed Vehicle Fuel
   When processed into pipeline  qual-
 ity gas, landfill gas is compressed to
 300 pounds per square inch (psi). This
 gas can  be  further compressed  to
 2,500  psi for storage in cylinders and
 used to operate motor vehicles. For
 compressed vehicle  fuel,  membrane
 systems, like that produced by  W.R.
 Grace, provide economical C02 sepa-
 ration.  More  than  40,000  vehicles
 have operated with conversion kits for
 a  dual  fuel  system using compressed
 natural gas  with gasoline as the stand-
 by fuel. Conversion kits contain  stor-
 age tanks,   valves,  and carburetors
 that parallel the vehicle's current gas-
 oline delivery system.  Cars  have op-
 erated  on processed  landfill  gas  from
 the Penrose  Landfill.  Pacific Energy
 scrubbed the gas using'a water wash
 system known as Binax* and  then
 compressed it.
   Low ertiissions, low maintenance
 costs," and;, fuel cost  savings are the
 benefits of  this  application. Capital
 costs and fuel logistics  are the draw-
 backs.  Fleet uses,  such as school
 buses  or delivery fleets with a com-
 mon parking area, have been the major
 application of this technology.
   By the end of this year, the Sanita-
 tion Districts of Los Angeles will begin
 testing  compressed  landfill gas  as  a
 vehicle fuel. Preparation of the gas will
 include  filtering through  a semi-perme-
 able  membrane.  If  successful  on
medium-duty  demonstration  trucks,
Sanitation Districts officials  hope  to
offer the fuel to trash haulers  that
serve the Districts' landfills.

Liquid Vehicle Fuels
   Landfill gas can be used as a feed-
stock for methanol and  diesel produc-
tion. However,  most  methanol and
diesel  process  technologies  require
that the landfill gas  be processed  to
pipeline quality before  burning  it  in
systems with catalytic converters. The
application is driven by economies of
 scale of the process technology and
 the  feedstock costs.  Questions  re-
garding the  economic viability of this
 process will be addressed soon. Early
 this year,  Fuel Resources Develop-
ment  Company  of  Denver,  began
producing a  diesel fuel substitute  from
gas collected  at  a landfill  in  Pueblo,
Colorado. The project is designed  to
produce 235 barrels of fuel  per  day;
currently the system is  using a mix of
40 percent landfill gas and 60 percent
natural gas.
  Liquefied  methane is another prod-
uct made from landfill gas that should
be  demonstrated soon.  This  tech-
nology should produce a clean fuel with
very  low  pollution and  high  storage
density (about six times that  of com-
pressed natural gas). EcoGas of Austin,
Texas is planning several projects that
will convert landfill gas  into liquefied
methane.

Tax Incentives Continue
  The federal government has recent-
ly extended  a price support for landfill
gas utilization known as a production
tax credit  (Section 29 of  the Tax
Code). The windfall profits tax legisla-
tion   in  1980  originally established
these  landfill  gas  tax  credits.  The
credit is currently $0.94 per million
Btu. The credit begins to phase out as
oil reaches a limit (currently $40 per
barrel) and completely phases out as
oil reaches  a  second limit (currently
$50 per barrel).
  Private sector developers use these
credits  to provide a return on other-
wise marginal landfill gas projects dur-
ing periods of depressed energy prices.
To qualify for the credits,  a collection
system or a process facility needs to
be in  place before  January 1,  1993.
The credits, which extend  through the
year 2002, are based upon Brus sold
to that date unless the price  of  oil
exceeds the specified limits.

Conclusion
  Landfill gas, if uncollected or uncon-
trolled, represents  an environmental
liability—and a  lost  opportunity. The
best use of this resource is to recycle
it into a marketable energy product.
Such  projects  not only help preserve
our environment, but reduce our reli-
ance on other energy resources. Often,
the activity takes vision  and  persis-
tence,  but the  number of operating
projects and continuing research illus-
trate that more options exist than ever
before, and the rewards are there,  n

Mr.   Williams can be  reached at
Cambrian  Energy  Systems,  3420
Ocean  Park  Blvd.,  Suite  2020,
Santa Monica, CA 90405; (310)
314-2727.
                                                                        SOLID WASTE & POWER/JULY/AUGUST 1992   29
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APPENDIX G:  LANDFILL GAS RECOVERY SYSTEMS FOR EXISTING LANDFILL SITES
                                 (Presentation)
                                Richard L. Echols
                   Managing Director Energy Recovery Operations
                         Browning-Ferris Gas Services, Inc.
                              Presentation to the ASCE
                         (American Society of Civil Engineers)
                                14 September 1992
                                   (shortened)
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                  LANDFILL GAS RECOVERY SYSTEMS
                     FOR EXISTING LANDFILL  SITES
INTRODUCTION

Landfills that bury materials which decompose soon develop an anerobic (without  oxygen)
atmosphere.  Decompositon of the waste and subsequent bacterial action produce landfill gas as
a waste product.  This gas is typically 50 to 55% methane and 45 to 50% carbon dioxide along
with many different non-methane organics  in the part per million concentrations.

The amount  of landfill gas and  the length of time that  landfill gas will be produced  are both
subjects of great debate among experts in the field.  Production assumptions that range from 2.5
to 4.5 standard cubic feet of landfill gas per pound of refuse that decomposes and continuing
decomposition for at least 30 years appear to be realistic ranges. 'Empirical production decline
curves have yet to be fully quantified because of a lack  of long term data.

REGULATORY

Regulatory control of landfill gas is an ever changing and ever increasing fact.  Because landfill
gas is malodorous, can carry toxic and/or carcinogic compounds, and has the potential to collect
in explosive  concentrations, it has received a great deal  of regulatory attention. At the Federal
level, the existing Subtitle "D", included in the original Resource Conservation and Recovery Act
of 1976, covers  the migration  (via underground  routes) of and the collection  of  explosive
mixtures in buildings.  The proposed new Subtitle "D"  will strengthen this control.  Proposed
regulations implementing the Clean Air Act will place rigorous landfill gas emissions control on
landfills with a capacity in excess of 167,000 tons. Landfill gas control rules and regulations at
the state level vary across the board from nothing to much more stringent that federal regulation.
Prior to the design and installation of any landfill gas system, it is imperative to check with local

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control agencies to obtain their latest version of rules and regulations. This will generally require
consulting the solid waste regulators, air quality regulators, health regulators, and regional and/or
state air quality regulators.  Just because the solid waste  regulators do not require a permit for
a landfill gas system, or issue a permit  allowing passive vents,  never assume the air quality or
health agencies approval will not be needed or their permitting process need not be followed.
A single action  or construction project usually requires multiple permits before ground is
disturbed to avoid violations and fines.  Many  times these permits require much work and
expenditures of substantial monies to obtain.

LFG PRODUCTION

The questions of production versus collection has to be addressed.  It is impossible to calculate
collection efficiency because the exact amount of landfill gas being produced is unknown. The
known parameter is the total flow as measured in the main collection pipeline, and that flow is
composed of landfill gas, infiltrated outside air, and air sucked in through any source for leaks.
The  true measure of performance for a landfill  gas collection system is its ability to meet its
design objectives.  That is,  are perimeter  landfill gas monitoring probes clear? Are surface
emissions levels being met?  Are odors from the site being controlled? In conjunction with this,
the landfill gas system  should  function in a reliable, dependable manner without excessive
operation and maintenance costs.   Measured flow  is  always a better indicator of landfill gas
systems performance than are models  which  attempt  to predict the quantity and duration of
landfill gas production within a landfill  unit using a mathematical equation.

For a landfill with a comprehensive gas extraction system installed, Rgure 1 is a representation
of the amount of the landfill gas collected.  During the start-up phase of landfill gas production,
there is an abundance of high percentage (48-58%) methane landfill gas. This is the accumulated
gas that  has been produced over a long period of time in which gas  has not been able to
completely escape the confines of the landfill. This gas is always under pressure, ranging from
a few inches water column  to several hundred  inches of water column.  Landfill  age,  depth,
cover, and construction methods all influence the amount of pressure within.
WRE92045
                                    G-3

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                                         FIGURE 1
CD
i.
            oo
            <
            o
            O

            LU
            2
            12
            _J
            O
                      ACTIVE LANDFILL  GAS  EXTRACTION  SYSTEM
                              LANDFILL  GAS  PRODUCTION
                STARTUP
                 PHASE
STABILIZATION
   PHASE
                 2 DAYS
                  TO
               12 MONTHS
                            N
                             X
      X
                   ONGOING PRODUCTION
                         PHASE
  2 DAYS
    TO
 3 MONTHS
20 YEARS
   TO
? YEARS
                                        TIME
      BROWNING T FERRIS GAS SERVICES, INC.

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As more gas is removed from the landfill than is being  produced, the stabilization phase of
landfill gas production begins.  During this phase, it is critical that the gas extraction system be
adjusted continuously to avoid overpulling individual wells, or all of the wells at the same time.
Once this phase is entered, it generally only takes a few days for a sufficiently sized extraction
system to reach a fairly stable production rate.  It is important to note  that this phase can never
be reached  if a gas extraction system is undersized.  If the sizing is marginal, then the start-up
phase will be greatly extended as will the stabilization phase.

The ongoing production phase will be for the remaining life of the landfill.  While landfill gas
is being extracted at approximately the same rate it is being produced  (or manufactured) by the
landfill, many variations will be noticed.  All of the many factors that influence a landfill's
ability to produce gas come into play. Flowrate variations  will be noticed between daytime and
nighttime production, seasonally, changes in weather, etc.

The slope of the ongoing production phase curve is ever so slightly downward.  Little, if any,
decline is noted in the first 3 to 8 years (depending on the length of system  operation) for the
systems Browning-Ferris Industries, Inc. (BFI) has installed.

For landfills that  have  partial gas extraction systems installed, the production curve will still
apply.  The phase definitions are not as sharp because the area of the landfill that does not have
gas control  will continue to feed additional landfill gas through preferential flow paths to the area
of lower pressure because of the  operation of a partial  gas  extraction system.  Also, if an
operating landfill  gas extraction system is shutdown for an extended period (more than a week),
it will go through these same phases when it is started up again.
LANDFILL GAS CONTROL
OBJECTIVES

Before setting the design pen to paper (or cursor to computer screen) it is necessary to set the
objective that is to be achieved by the landfill gas collection system. The following is a list of

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common objectives that landfill gas control is used and needed for:

•      To control offsite, underground migration of landfill gas
•      To control surface emissions of landfill gas
       To control landfill gas odor
•      Because an operating permit for a landfill  has a provision which requires landfill gas
       system installation
•      Because a regulatory agency issues a ruling or directive ordering the installation
       To develop a fuel source
•      Any combination of these reasons or other reasons

All of these reasons are driven by the characteristics of landfill gas. It can gather in explosive
concentrations, be  malodorous, or contain  toxic  and/or  carcinogenic  compounds.   These
characteristics constitute hazards to the public  health and safety, therefore, requiring control.
After discovering the reasons  for a landfill gas extraction system, the design engineer faces
another set of physical, gas handling problems.  Landfill gas always contains moisture, carbon
dioxide, and halogenated compounds, and almost always contains some Hydrogen Sulfide. These
are the exact  ingredients needed to form "acid gas" or "sour gas", which is extremely corrosive
to equipment These ingredients also contribute to  two phase flow in the piping system. These
physical problems must also be addressed in the design of the system.

Once the objectives  for the landfill gas system are  understood, the designer is in position to
consider which type of system is best for the application at hand.

PHYSICAL  LOCATION CONSIDERATIONS

The physical location  of a landfill and its type of construction play  an important pan in the
selection of design parameters  for landfill  gas control. The most common types of landfills for
construction/location parameters are:

                                        An  all  above ground fill

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                                        Excavation with above ground fill
                                        Completely below ground
                                        - pit or quarry fill
                                        Valley fill
                                        - closed on  all but one side
                                        - extends above valley in height
                                        Built up cell fill

The physical landfill type combined with the actual construction method of the landfill yield the
final pieces to the design puzzle.  The actual landfill construction traits that the designer is most
interested in are as follows:

             •      Is there a bottom liner?;  Yes?; No?; If yes, what type?
                    Was daily cover used?; Yes?; No?; If yes, what type?
             •      Is final cap in place?; Type; Thickness; Integrity
                    Is leachate extraction in  place?; Yes?; No?; If yes,  what type?
                    What kind of trash taken?
                    What kind of compaction?

The location and construction of the landfill combined with the surrounding population density
also will have some impact on the selected equipment, operation of the equipment, and the types
of alarms and safety devices used on  major equipment.
                                    G-7

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                   LANDFILL GAS EXTRACTION SYSTEM
                               JOB PROGRESSION

 A systematic job progression always yields more consistent results .with a corresponding higher
 quality product.  After design and installation of over 50 systems, this author prefers using the
 job progression as described in  the following paragraphs:

                           Collection of Baseline Data
                           - Topographical information
                           - Property lines
                           - Adjacent properties
                           - Fill volumes

 From this data, an  accurate, up to date topography map can be  generated for the top of fill as
 well  as the bottom of fill. All engineering quantities, calculations, and price estimates are based
 on this information, and they will only be as accurate as the starting information.

        Using the latest map information, generate a sketch of the system layout including
        location of all facilities.

, This  sketch will determine the number and  location of landfill  gas  extraction wells, the
 approximate location and length of all underground piping, drainage sump number and locations,
 and the blower building and flare locations. Having previously determined the landfill depth, the
 design engineer can now perform the pipe, blower, and flare sizing calculations.  Additionally,
 the type of sump system can be selected, sized, and priced. This basic design information can
 be expanded by using limited details of individual parts, thus preparing a "Phase I" set of plans
 for client review and ultimate submission to agencies for permit requirements.

                     •       Develop bid level documents

 While awaiting permits, the design engineer can  develop the design and specification package

 WRE92045
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further for use in the next project step, solicitation of construction bids. At this level, product
specifications need to be written for each material to  be used.   Along with this, installation
specifications, testing requirements, construction methods, product support, warranties, guarantees,
and start-up help need to be detailed.  Each party needs to have a very clear understanding of its
responsibilities and authority, complete with the amount of dollars attached to eaeh.  Careful
attention should be paid to how change orders are created, approved, and implemented. The total
bidding process should  include the following action:

                            Send out bid solicitations
                     •       Have a mandatory prebid meeting
                     •       Send out required addenda to bidders
                     •       Take bids on close date
                     •       Evaluate bids and select contractor
                            Have a pre-construction meeting

It is best to wait until major environmental permits have been obtained before issuing the project
for bids.  Permitting, especially multiple agency permitting, can  be a long, slow process.  In
nearly every case, an air permit and a solid waste permit will be required. After these, there are
any number of construction permits at the  local level that the  contractor should obtain.   These
do not typically provide the level of difficulty involved  in environmental permits.

                     •       Develop construction documents

While the prints and specifications used  for bidding  are very detailed, these should be updated
to construction level by incorporating  alternate bid products and manufacturers prints  and
specifications that were provided by the winning bidder. These construction documents should
be placed  in the contractors possession  at  the pre-construction  meeting.   By the end  of this
meeting all parties should have a clear  understanding of the  construction management, work
areas, storage  and staging areas, job progression,  material  handling, expense and payment
approvals handling,  along with job safety.
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In summary, a landfill gas extraction job goes through three phases with key subsets of each
phase.
PHASE ONE
PHASE TWO
PHASE THREE
WRE92045
                    A.    Data gathering
                    B.    Preliminary design & approval
                    C.    Major permit acquisition
                    A.    Bid level specifications development
                    B.    Bid solicitation, acceptance, and award
                    C.-    Extraction system construction
                    A.    System start-up and shake-down
                    B.    Normal operation and maintenance
                                   G-10

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                  LANDFILL GAS EXTRACTION WELLS

The gas extraction wells are one of the most important components of the gas extraction system.
The  location  and  number  of  wells is  dependent  upon several  variables.   Site  specific
characteristics including existing and  final topography, location of benches or drainage swales,
limits of fill, and cell construction along with the area influenced by each extraction well are all
determining factors in well placement.

The manner in which gas extraction wells are designed, drilled, completed, and the quality of
materials used in the wellstring and  related components  directly affect  the performance and
effective life of the well itself along with  the entire gas extraction system.

WELL LOCATION AND SPACING

For complete landfill  gas control, a comprehensive wellfield should be used.  By installing wells
in all areas of trash placement, true landfill gas control can be achieved.  Central wells do the
bulk of the extraction work while perimeter wells provide the final "ring" of control.  These wells
all feed into a common header/blower system.

Perimeter wells serve to form a vacuum net around the filled area, preventing any gas generated
within the placed refuse  from escaping or migrating offsite.  Spacing of these wells will be
between 150 and 250 feet well to well but not further than  150 to 200 feet horizontally from the
limits of trash.  Locating this first row of wells  far enough  inside the filled area assures the well
will be  able to be drilled to the  maximum depth of the cell.

Gas extraction wells  to be placed in  the interior of the landfill will be spaced on 300'. to 350'
centers. These interior wells collect  the bulk of the landfill gas as they  are located where the
principal quantity of  landfill gas is generated. The possibility of air intrusion into central wells
is reduced because the amount  of surface area from which air could be drawn, (i.e.: the side
slopes & cap), is minimized as compared to perimeter wells.  It  is for this  reason the interior
wells can  generally be operated at higher vacuum and flowrates and still maintain high (45% -

WRE92045
                                    G-11

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                                      FIGURE 5
                                        I2'-0'±
                 GRADED  SOIL
                 BACKFILL \2~ WIN.
        u- I I
        O I <->
CLAY BACKFILL OR WELL	
GRADED SOIL BACKFILL
4'BENTONITE PLUG -  USE-
APPROXIMATELY 25 SACKS
OF BAROID 'BENSEAL1  OR
APPROVED EQUAL.
HYDRATE  BENTONITE WITH
5 GALLONS OF WATER  PER
SACK DURING  INSTALLATON.
            ISOLATION LAYER - USE —""
            ONE SACK OF 3/8' BENTONITE
            CHIPS  (BAROID 'HOLEPLUG* OR
            APPROVED EQUAL)
                                        ••.I.'.';-.
                                                                    HEADER
—3' BENTONITE PLUG - USE
  APPROXIMATELY 18  SACKS
  OF BAROID 'BENSEAL1 OR
  APPROVED EQUAL. A MINIMUM
  OF 241 TO BE  IN CONTACT
  WITH EXISTING  COVER OR
  CAP IF POSSIBLE.
  HYDRATE  BENTONITE WITH
  5 GALLONS OF WATER PER  '
  SACX' DURING INSTALLATION.
                                         61 DIAMETER  SDR-17 HOPE
                                                      ORILL ( 8 )'/V DIA.
                                                      HOLES EVERY 6' FOR
                                                      ENTIRE PERFORATED
                                                      LENGTH
                                                       - I '/21 DIA. WASHED RIVER GRAVEL OR
                                                        ACCEPTABLE CRUSHED  STONE
                                                        TO EXTEND TO A MINIMUM OF I  FT.
                                                        ABOVE TOP PERFORATION.
                                                       • 6- DIA. SDR-17 HOPE FUSED CAP
                                          I
                                         36'
   TYPICAL  ABOVE  GROUND   GAS  EXTRACTION  WELL  DETAIL

                   NOTE I: ADJUST PLUG AND BEDDING HEIGHTS AS  NECESSARY
                         TO MEET  ACTUAL FIELD CONDITIONS

BROWNING  -  FERRIS GAS  SERVICES, INC                       	
                                G-12

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  Ol
  J
  a
  SI
  xi
  
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50%) methane concentrations.

In either case, perimeter or interior wells, it is desirable that the well be drilled as close to the
bottom of trash as possible.  At any landfill, drilling will be halted at no less than 10 feet from
the elevation of the existing cell liner to avoid liner damage.  The existing liner or bottom of
placed trash elevations will be obtained from  as-built drawings prior to the drilling operation.

BFI is currently successfully operating many gas extraction systems designed and built with this
same perimeter/interior well field layout. These systems have all effectively controlled offsite
landfill  gas migration  as well as helped control  odor and/or  vegetation distress problems
associated with landfill gas.  These  same wellfields also supply fuel gas to energy recovery
projects.

The "radius of influence"  a well exerts is an  approximated measure of the lateral distance the
vacuum the well  introduces into  the landfill  can induce flow of the gas produced within the
landfill. It must be noted  that  this is a misleading term. At best, radius of influence is a gross
approximation. It is observed that some gas near wells will escape into the atmosphere (not be
collected) and that some gas outside the expected radius of influence will be collected by the
extraction well. In actual practice, the area of low pressure created by the well provides the path
of least resistance for the gas to flow. This preferential flow causes gas to flow to the wells even
though the vacuum area is limited. The phenomenon causes the "radius of influence" calculation
to be very  misleading in that one well can "influence" an entire landfill  because  of'the
preferential flow paths created. As the thickness and quality of top cover, side cover, and bottom
containment increase, the required number of extraction wells decrease.  Most older landfills
require the well densities discussed in this paper due to cover constraints.

By creating zones or areas of low pressure within the landfill, preferential flow paths are set up
on an inward gradient, and with time, landfill  gas will use these paths to flow inward rather than
being pushed out and away by internal pressure within the landfill.  It must be recognized that
it takes time to create  these flow paths with the wellfield, just as it  took time to create the
pressure within the landfill.

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                                    G-14

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LANDFILL GAS EXTRACTION WELL CONSTRUCTION

Each gas extraction well consists of several components; 36" diameter well bore, gravel pack,
6" diameter high density polyethylene well pipe, two sample ports and a 4" ball valve.

The 36" diameter well bore is drilled the total depth of placed trash, minus 10' to ensure the liner
is not damaged.  While drilling rates may vary according to the type of material drilled, 100* to
120' feet of drilling per  10 hour day is expected. The 36"  diameter well bore allows  a much
larger active circumference (9.42 If versus 6.28  10 than the more commonly used 24" diameter
well bore.  Due to  intermediate or daily cover within a completed landfill cell, perched water
may be encountered during the drilling operation.   Utilization of the 36" diameter well bore
allows the driller to step down to a smaller bucket size to punch through the obstructing material
and allow the  total  depth of the extraction well  to be reached.  It should be noted  that if areas
within the landfill have a large amount of water, wells may  "water in".  Physically, water rises
to a level in the well and  cuts off a large majority of the perforated length of pipe.   In such
cases, another well  should be drilled in close proximity to ensure adequate extraction coverage.

When the well is drilled  and the total depth reached  is known, the  correct  amount of perforated
and solid pipe is fused together and "run" into the wellbore. BFI uses 1/2"  diameter perforations
with a density of 16 holes per foot.  A basic rule is that  1/3  of the well  is solid pipe and the
remaining 2/3 is perforated pipe.  This ratio is modified as wells become  more shallow.  In all
cases however, BFI strives to  maintain at least 20 feet of solid pipe at the top of each well: A
HDPE cap is fused to the bottom of the pipe and a 6"  X  4" tee is fused to the top of  the well
pipe which extends about 3' above grade.  Utilization of high  density polyethylene pipe for the
well pipe and all related fittings  provides the flexibility and  corrosive resistance  needed  in a
landfill environment.

It is easy to say, "drill  the landfill gas extraction well here". Prior to starting the actual drilling
process, it is important to have a drill rig that is capable of getting the job done, and having a
crew that is trained  in the operation of that specific drill rig. Depending on well locations, it  may
be  necessary to perform ground preparation to  allow drill  rig ingress, egress, room to safely

WRE92045
                                    G-15

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setup, and room to discharge and remove the exhumed trash as drilling progresses.  The type of
drill bit that is used is very important to the success of the landfill gas well.  Auger bits tend to
force the disturbed material  in to the side walls of the borehole.  As drilling progresses through
wet zones and through areas of daily cover, an even more impermeable layer is created in the
wellbore.  This creates a well which will never produce  the quantities  of  landfill gas that a
properly drilled well will produce.    Using  a core  barrel  drill  bucket, with  staggered
cutting/ripping teeth will produce a wellbore that is ragged and much more permeable. This hole
will also require about 20%  more gravel and seal material than a straight volumetric calculation
indicates, because of the ragged and less dense wellbore.

After total depth has been reached, the required length of solid and perforated HDPE, complete
with the valve tee, should be fabricated  and run in the hole. A small amount of gravel, one to
one and one-half yards should be added, then light of tension added to keep the pipe centered
in the wellbore. The remaining gravel (always, washed \-\W diameter) should be added with
care being taken to keep the pipe centered in the wellbore. Immediately pour about 5 gallons
of water to wet the stone, then add one bag of chipped bentonite.  This bentonite sticks to the
wet stone, hydrates, and forms a protective layer above the stone to keep the upper wellbore
materials from  sifting down into the stone, reducing permability, and limiting the wells ability
to produce landfill gas.

In order for the  well to function properly, an effective  seal  must be placed above the perforated
zone. This seal must have the ability to form an airtight bond with the HDPE pipe and against
the ragged edge of the wellbore. This is accomplished by pouring two bentonite seals,'one above
the gravel zone and one at the top of the wellbore which ties into the landfill cap, and filling the
central  zone  of the wellbore with well graded clay and/or soil backfill.  Care must be taken to
add five gallons of water per sack of bentonite place downhole. The bentonite, to be successfully
used, must be small pelletized  granules/which allows dry pouring with water added and hydration
downhole for maximum sealing ability.  Tremie pipe placed, pre-mixed bentonite has very poor
downhole sealing ability and is extremely difficult to handle.

A 4" PVC ball valve is then installed on the 4" branch of the 6"  X 4" tee of the well pipe. This

WRE92045
                                    G-16

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valve allows isolation and  throttling of  each  well. Throttling  is a  means of adjusting the
extraction rates by controlling the amount of vacuum applied.  The PVC body  and viton seals
of the well valve have proven to be extremely corrosion resistant and effective on similar gas
extraction systems while offering the large degree of adjustment necessary to balance the entire
wellfield.

A 6" PVC cap  is placed on the  top of the well pipe extending above grade. The PVC cap  is
removable to allow for measurement and pumping of water within the well if necessary, and for
checking the condition of the well.

Two stainless steel sample ports are threaded into the wellpipe to  allow measurement of percent
methane, vacuum, temperature and flowrate.  A 1/2" stainless plug  is  removed from the 3/4"  X
1/2" bushing for testing purposes, thereby minimizing wear on the  HOPE threaded holes.

A 4" kanaflex hose makes the final connection between the extraction well and corresponding
HOPE lateral piping. • This  material is flexible  to allow  for the settlement  and subsequent
misalignment between the  lateral piping  and well  head assembly due  to  landfill  settlement,
temperature expansion or contraction, or any other reason.
WRE92045
                                    G-17

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                       LANDFILL GAS EXTRACTION
                     HEADER AND LATERAL SYSTEM

The header and lateral piping system is designed to minimize the impact on the daily operation
of the landfill while .also insuring that both a reliable and effective system is installed. Actual
pipe  alignment may  be adjusted in  the field by the engineer.  These changes would be to
eliminate any unforeseen problems and to insure the most efficient use of topography and other
existing conditions.  Projected profiles for the header and subheader pipes are shown based on
existing topographical data, but actual pipeline profiles may require field modifications to insure
that the system is built in accordance with the intentions of the design. Some of the major design
considerations and requirements  for this system are:

1)     All pipe is to  slope toward condensate sumps at a minimum grade of two percent.
2)     A minimum amount of piping is to be placed in the areas which are to receive a synthetic
       cap, thus minimizing the number of potential problems that may have to be repaired and
       require disturbing the synthetic cap material.
3)     All pipe is to  have a minimum of two  feet of cover.
4)     The side slopes of the landfill are to be used whenever possible to establish the minimum
       required pipe grades. By  doing this, the number of required condensate sumps is reduced
       dramatically.
5)     All sumps are located in waste to reduce the need for dual containment and the associated
       cost.
6)     Never use 4"  or smaller diameter pipe in the horizontal position for gas collection pipe.

PIPE SIZING

Blower and pipe size calculations are based on the Darcy-Weisbach equation for friction loss.
Maximum gas production is estimated to be 1.5 cfm per foot of perforated pipe. Past experience
with landfill gas extraction systems has shown this to be a conservative estimate.  Pipe sizes are
selected by restricting the maximum allowable friction loss to 1 inch of water column per 100
feet of pipe. Pipe sizes are adequate to transport both the liquid condensate and the  landfill gas.

WRE92(W5
                                   G-18

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Blowers are sized to produce a minimum vacuum of 5 inches of water column at the most distant
well.

PIPE MATERIALS

All underground pipe and fittings are to be constructed of SDR 17 high density polyethylene
(HOPE).  HDPE is considered by many in the industry to be the best material for landfill gas
applications because it is highly resistant to the corrosive nature of landfill gas and condensate.
Also, because of its' flexibility and durability,  HDPE is well suited to withstand the stresses
imposed by the differential settlement within the landfill.

PIPE CONSTRUCTION

All HDPE pipe is to be joined using the butt (heat) fusion technique whenever possible. Butt
fusion is the preferred method for joining high density polyethylene pipe. It is a highly efficient,
economical method for joining HDPE that results in a joint that is  stronger than the pipe itself.
It has been an accepted procedure in the gas and  municipal service industries for nearly 20 years.

The principle of heat fusion is to heat two surfaces to a fusion temperature, 'then make contact
between the two surfaces and allow the two surfaces to fuse together by application of pressure.
On cooling, the original interfaces  are gone and the two parts are united. Nothing is added to,
or changed chemically, between the two pieces  being joined.

In areas where the butt fusion technique  is neither feasible nor practical, flanged connections are
to be used. Typically, one flanged connection is placed on each tee.  Flanged connections are
also used  at valves and other fittings as required to facilitate the construction of the pipeline. In
order to help  prevent corrosion related problems at the flanged connections, only coated ductile
iron back-up  rings or 316  stainless rings and 316  stainless steel bolts are to be used.

All HDPE fittings are manufactured.  BFI does not allow any field fabricated fittings because of
the high failure rate, nor any saddle weld fitting because of the same problems.

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                                    G-19

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                       LANDFILL GAS CONDENSATE
Landfill gas is typically saturated at its existing temperature and pressure within the landfill. The
gas is produced by inducing a lower than atmospheric pressure (a vacuum) on the landfill. This
lower pressure combined with the cooling induced by the gas  flowing through pipe expansions,
contractions, and valves, along with lower ambient temperatures outside the landfill causes
moisture to condense from the gas stream. The piping system transferring the landfill gas and
entrained condensate maintains a minimum two percent downward slope, thereby utilizing gravity
to transfer the liquid condensate into dedicated sumps which are strategically positioned around
the base of the landfill.

CONDENSATE SUMP DESIGN

Condensate sumps, located in topographical lows, are a vital  pan of the landfill gas extraction
system piping network.  Early extracton systems used a "barometric"  drain which returned the
condensate to  the landfill.   Because these  were open to the atmosphere and to the landfill,
continued  operating problems from settling, flooding, drying, and plugging occured. BFI now
uses a vertical sump, constructed of HDPE, and operated at line pressure. With the use of an air
operated or electric pump, this sump is well suited for automatic  operations. Service is quick,
simple, and done without need of confined entry.  For  sumps that are located in virgin soil,
double containment can be added.

CONDENSATE DISPOSAL

The condensate collected within the sumps can be individually  collected and/or pumped to central
tank for further handling or treatment.  The condensate will  be analyzed for TCLP parameters
on an annual basis to determine the regulatory status of the  liquid.  Previous TCLP testing  at
similar BFI landfills has indicated that the  condensate will not be hazardous.  Typically, after
testing, the nonhazardous condensate will be pumped into a transfer truck for subsequent disposal
at a local wastewater treatment facility.  Previous experience has indicated that this wastestream
can be treated efficiently without causing any adverse effects on the  wastewater system.
WRE92045
                                   G-20

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                                                FIGURE  11
                       NOTE:
                         HOSE CONNECTIONS TO FORCE UAW
                         AND AIR HEADER ARE NOT SHOWN
                         IN THS VIEW.
— VALVE CONTROL  —HELL ENCASEMENT
;  KEY EXTENSION
UJUN GAS HEADER
            5
            Col
                        <-HOPE ffi TO SLOPE-
                        IT A UINIUUU Of
                        TOWARD SUMP.
                                     NOTE:
                                        PUUP MOSES ARE NOT
                                        SHOWN IN THS VIEW.
                                                       IJ-HDPE SOR-l?
                                                       ./ FUSED CAP
                  -8'xlO'INCREASE/!

                  -lO'xiriNCREASER
                   -CEUENT/BENTONITE GROUT PLACED
                   BY SIDE DISCHARGE TftEME PIPE:
                   94 LBS. PORTLAND CEMENT
                   5 LBS. POWDERED BENTOMTE
                   6 GALS. WATER


                   - 2V OIA. BORE
                   HOLE
                 SINGLE  CONTAINMENT  CONDENSATE  PUMP  STATION
  BROWNING  - FERRIS  GAS  SERVICES, INC.
                                      G-21

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                          LANDFILL GAS BLOWERS

The centrifugal blower system acts as the driving force to transfer the landfill gas from the wells
through the piping network and into the enclosed flare system for subsequent combustion. The
blower system has two parallel blowers which are alternated on a weekly basis to provide 100%
backup should the operating blower fail.   In blower stations requiring two or more blowers
operating together, at least one spare blower is always installed.

BLOWER SIZING

The blower must have the capacity to transfer the produced landfill gas from the extraction wells
to the enclosed flare for combustion. The required size of the blower is determined by the total
head loss  (measured in  inches of water  column)  generated from the friction encountered1 to
remove and transfer  the gas through the piping network and into the enclosed flare system.  The
blower is sized so that an 18 inch water column pressure is maintained at the outlet, while the
suction pressure varies according to design.

BLOWER CONSTRUCTION

The blower specified for the most landfills will be a centrifugal type blower.  The advantages
and specific design features of this type of blower are listed  below:

•      Constant  efficiency; little wearing of internal  pans; ample clearance throughout  the
       blower.
•      Centrifugal blowers  can be direct driven  or belt design requirements and  flexibility
       needed.
•      Since the centrifugal blowers all have outboard mounted bearings, no chance exists for
       lubricant to contaminate the  air stream.
                                                                         •
•      Variable volume at constant speed.  Power requirements vary directly with gas volume
       requirement.   No special bleed off devices are needed.
•      Relatively constant pressure  at constant speed.

WRE92045
                                   G-22

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                                                                          FIGURE 13
                   NOTE:
o
Ko
CO
                      MOUNT OUTLET PIPE AS CLOSE TO
                      CEILING AS POSSIBLE.
                     HOPE PIPE
                   P»BTICUI»TE FILTER


                         REGULATOR
                                                                                                                     PNtUMAllCAl I 1 OPLIUItn

                                                                                                                     FAIL-CLOSED VALVE
                                                                  COMPRESSOR INTME
                                                                  10 BE LOCATED
                                                                  OUTSIDE OF BUILDING
                     GALVANIZED     i |

                     PIPE AND FIT TINGS I I
HOPE PIPE TO
CONDENStlE PUMPS
                        38* MINIMUM BURIAL	

                        OF Alf) LINE
                                                     BLOWER  BUILDING  SKID  - ELEVATION  VIEW
            BROWNING   -  FERRIS  GAS  SERVICES, INC.

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       Centrifugal blowers produce unusually low noise; silencers are usually not required.
       Relatively lightweight; no special foundation is required.
       Centrifugal blowers produce a smooth non-pulsating air flow when operating at any point
       beyond the surge limit.
       Since horsepower is in direct  proportion to the volumetric demand, an ammeter can be
       calibrated in CFM  to indicate gas flow when required.
       Inlet and outlet heads  and interlocking intermediate  sections with  integral  annular
       diffusers  are made  from  high quality cast iron.  Heads are provided with mounting legs
       and tie-rod lugs.  Steel tie-rods bind entire housing into solid integral unit.  Inlet head
       includes diffuser to direct air to inlet of first impeller.  Outlet head is of vortex design to
       eliminate friction.
       Impellers are cast aluminum alloy, smooth finish, shrouded-type securely keyed to the
       shaft and held in place by lockwashers and locknuts.  Impeller hubs butt against each
       other.  Ample  clearance throughout the interior of the machine prevents wear  and
       maintenance problems, eliminates the need for lubrication.
       Each  impeller  is  precisely balanced, assuring smooth operation and  freedom from
       destructive vibration.
       Non-sparking aluminum or bronze labyrinth seals at the housing prevent gas losses
       between shaft and casing.
WRE92045
                                     G-24

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                  LANDFILL GAS SYSTEM OPERATION

Landfill gas, a mixture of primarily methane and carbon dioxide, is generated as a by-product
of the anaerobic decomposition of refuse. This gas generation results in a positive pressure under
the landfill cap and forces the gas through the surrounding soils or other paths to a point where
the pressure is relieved.  To mitigate the problems associated with this migrating.gas, a landfill
gas extraction system is installed at the landfill. This extraction system will operate by changing
the pressure within the landfill to a vacuum.

Extracted landfill gas will be destroyed by combustion in the proposed enclosed flare.   The
landfill gas extraction system will be equipped with two centrifugal fans (blowers) to provide a
source of vacuum to pull methane from the landfill.  Because only one blower will operate at any
given time,  this redundant capacity provides  for continuous system operation at times of
scheduled maintenance or mechanical failure.

OPERATION

Operation of the  Landfill Gas Extraction System consists mainly of regulating and adjusting the
amount of vacuum available at each extraction well through the use of valves. This adjustment
of vacuum, and  therefore flowrate, is referred to  as "balancing"  the gas system.  A balanced
system is one in which each well  is adjusted to extract the maximum  amount of gas possible
without causing air to be pulled through the landfill cover and into the extraction  system. Some
of the tests performed to balance and insure the efficient operation of the gas system are:

1)     Flowrate  Into The Flare
2)     Percentage Methane Into The Flare
3)     Gas Temperature At The K.O. Pot
4)     Percentage Methane At Each Well
5)     Vacuum At Each Well
6)     Gas Temperature At Each Well
7)     Flowrate  At Each Well

WRE92045
                                   G-25

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WELLS

Because methane production in  the landfill is dependent upon many factors,  the amount of
vacuum required  to extract the gas will vary at each well  and also with time. Generally, a
vacuum of only 0.5 - 3.0 inches of water column is applied to the extraction wells along the
systems' perimeter.  Experience has shown this to be adequate to control gas migration and that
greater vacuums result in excessive air intrusion due to the large area of exposed landfill cap
within the influence areas of these wells. Interior wells however, due to the relatively small area
of exposed cap, will usually have a vacuum in the range of 2-7 inches of water column applied.

In order to achieve  and maintain a well balanced system, vacuum, gas concentration, and gas
temperature are measured weekly at each well.  In addition to these weekly tests, flowrates are
periodically measured to help establish the correlation between vacuum and flowrate at each
individual well.

Because landfill gas is generated at a mixture of approximately 50% methane and 50% carbon
dioxide,  methane concentrations of less than 45%  are indicative of air intrusion through the
landfill cover.  Conversely, high methane concentrations indicate that more landfill gas is being
generated  than is  being extracted by the well. Therefore, methane concentration is the primary
test used to determine if the flowrate should be increased or decreased.

Vacuum is measured to establish its' relationship with gas concentration and extraction rate at
each well.  Records are kept of these relationships to aid in determining the optimal flowrate to
maximize gas extraction and minimize air intrusion at each well. Instantaneous vacuum readings
are used to correctly adjust the wellhead valve to the desired vacuum.  Abnormal vacuum
readings are indicative of and are used to locate pipe blockages or restrictions due to pipe failure
or water blockage.

Temperature of the landfill gas is measured and recorded at each extraction well weekly to help
detect the onset of air intrusion with the corresponding possibility of spontaneous combustion

WRE92045
                                    G-26

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within the landfill.  Although temperatures will vary for each extraction well, it should remain
reasonably stable at a particular well.  A sharp increase in flow temperature accompanied by a
decrease in methane concentration is indicative of air intrusion into the landfill.

LATERALS AND HEADERS

Due to the extremely corrosive conditions of the landfill environment, all underground laterals
and headers are to be constructed of SDR 17 High Density Polyethylene (HDPE).  HDPE is
extremely resistant to the corrosive nature of the landfill gas and condensate. Also, because of
its' flexibility  and durability, HDPE is well suited  to  withstand  the  stresses imposed by
differential settlement within the landfill.

Valves are located at several points in the header pipe to isolate small areas of the system when
maintenance, repairs, or new construction is required.  This allows the  other portions of the
system to continue to operate as normal, thereby minimizing system downtime.

Condensate sumps, located in the low spots of the Header pipe, are designed to collect and hold
any gas condensate that may be generated by the cooling gas as it travels through the pipeline.
These sumps are pumped dry as required  to keep the headers and laterals  from becoming filled
with condensate and preventing the free flow of gas. Normally, each sump will be pumped dry
every week, or automatically pumped to a central storage tank or sewer system.

BLOWERS AND FLARE EQUIPMENT

A knockout pot (sometimes referred to as a scrubber) is simply an expansion chamber located
just upstream of the blowers.  As gas flows through the pot, the decrease in pressure and the
subsequent cooling of the gas allows any remaining liquids to drop out of suspension.  A sight
glass, located on the pot, indicates when the liquid  from the pot must be  drained.

Operation of the blowers is in accordance with the manufacturers recommended procedures and
is controlled by switches on the flare control panel and  valves located next to  each machine.

WRE92045
                                    G-27

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Blowers are alternated weekly to allow time for routine maintenance  and to insure that each
blower is in working order.

Operation of the flare station is in accordance with the manufacturers recommended practices.
Normally the flare will be operated in the "automatic" mode which provides for a safe automatic
shutdown and restart if a problem is detected. Temperature is controlled  on the flare by adjusting
the amount of air that is allowed into the flare.
WRE92045
                                    G-28

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APPENDIX H: SELECTING ELECTRICAL GENERATING EQUIPMENT FOR USE WITH
                            LANDFILL GAS (Paper)
                              Charles E. Anderson
                     Manager Landfill Gas Recovery Department
                Rust Environment & Infrastructure—Solid Waste Division
            In Proceedings of the SWANA 16th Annual Landfill Gas Symposium.
                     SWANA.  Louisville, Kentucky. March, 1993.
                                    H-1

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                     CHARLES E. ANDERSON,  PE
            MANAGER, LANDFILL GAS RECOVERY DEPARTMENT
    RUST ENVIRONMENT & INFRASTRUCTURE - SOLID WASTE DIVISION
Introduction

In this paper the author will discuss the attributes of various
technologies for generating electricity while utilizing landfill
gas as a fuel.  The'author will concentrate only on proven
technologies with significant numbers of installations currently
in service.  Comparisons between the technologies will be made in
the categories of eguipment size,  installation and operating
cost_s,. air emissions, and plant efficiency.   The paper'will
conclude by summarizing the advantages and disadvantages of each
technology.
Technologies Currently Being Utilized

There are currently three basic technologies commonly utilized in
the production of electric power from landfill gas.   These
technologies are steam turbines,  combustion gas turbines, and
internal combustion reciprocating engines.   According to a recent
survey conducted by the the United States Environmental
Protection Agency (US EPA) , there were 85 landfill
gas-to-electrical generating plants operating across the nation
during 1992 (Thorneloe, 1992).   As indicated in Figure #1,
approximately 4% of the plants  utilized steam turbines, while 25%
utilized combustion gas turbines and 71% utilized internal
combustion reciprocating engines.   None of the electrical
generating projects were purported to utilize some other form of
technology.

The selection of a particular technology is usually predicated
upon the size of the project, the relative economics of the
various technology alternatives,  permitting constraints, and site
specific operational considerations.   According to statistics
compiled by Governmental Advisory Associates,  Inc.,  the power
output ratings of operating landfill gas-to-electric plants
ranged from 70 kilowatts (KW) to 47,000 KW.   The mean output

                               H-2

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rating of all plants  was  4,053 KW (Berenyi & Gould,  1991).
Figure #2 depicts  the number of landfill gas-to-electric plants
in each power output  size.
Ecruipment Sizes  and  Operational Considerations

In developing  landfill  gas to electrical generation projects, it
is vital to match  the equipment fuel requirements with the
quantity of available landfill gas over the life of the project.
All three of the technologies examined in this paper operate most
efficiently at full  load.  In addition, since the majority of the
costs associated with a landfill gas plant are often fixed (e.g.,
financing, labor,  etc.)  while the majority of the revenue stream
is variable  (e.g., based upon kilowatt-hour power sales),  the
selection of equipment  size and the staging of equipment is
critical to financial success.

Commercially available  steam turbines range in size from
approximately  100  KW to over 1,000,000 KW.  Steam turbines
suitable for utilization in landfill gas projects may be either
condensing (i.e.,  exhaust steam below atmospheric pressure) or
non-condensing (i.e., exhaust steam above atmospheric pressure).
Figure #3 depicts  a  typical condensing steam turbine plant.

The steam turbines themselves require no special modification for
use in a landfill  gas project.  However, the boilers used to burn
the landfill gas and generate the steam must have burners
designed to handle low  BTU gas and tubes designed to withstand
the acids formed from the hydrogen sulfide and halogen compounds
found in the gas.  Steam turbine plants do have three operational
considerations worth noting.  First, the steam cycle requires a
relatively copious clean water supply, since water is continually
lost through boiler  blowdown and cooling tower evaporation.
Boiler feed water  cleanliness is vital to long term plant thermal
efficiency, so operational costs increase as water purity
decreases.  Second,  codes in many areas of the country require
that a licensed  operator man the facility whenever the boiler is
in operation.  These codes are a throwback to the days when
automation did not exist and boiler explosions were common.
Finally, steam turbine  boilers can readily accommodate
significant variations  in the BTU value and composition of
landfill gas without major adjustments to the combustion control
system.

The majority of  the  combustion gas turbines operating on landfill
gas are simple cycle single shaft machines, although some
recuperated machines are in service.  The sizes of commercially
available combustion gas turbines for natural gas service range
from less than 1,000 KW to over 100,000 KW.  The most commonly
used machine for landfill gas service is the Solar Centaur T4500

                              H-3

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turbine/genera tor set,  which is  nominally rated at 3,300 KW.
Figure #4  depicts a typical simple  cycle combustion gas turbine
plant.

The  Solar  Centaur landfill gas turbine  is almost identical to a
natural gas fired unit,, except for  fuel system modifications.
Due  to the low BTU value of landfill  gas, the turbine fuel train
has  been doubled to include twice the number of fuel control and
regulating valves,  as well as twice the number of fuel injectors.
Since  air  is used for cooling as well as combustion, the majority
of the power from the expanding  gasses  in the turbine section is
utilized to compressor air.  High gas pressures, and hence a
sophisticated fuel gas compressor skid, are required to inject
fuel gas into the combustor.

Landfill gas fueled Solar Centaur turbines operate nearly as well
as natural gas fired units, but  with  three nuances.  First,
silica deposits form on the turbine blades and nozzles of the
landfill gas units,  and abnormally  high tip-shoe rub is
experienced.   The formation of the  silica deposits is obviously
related to the composition of the landfill gas, but the exact
mechanism  of formation is not understood.  Second, the landfill
gas  fired  units are capable of producing approximately 15% more
power  than a natural gas unit.   This  is due to the fact that the
carbon dioxide (CO )  in the landfill  gas cools the combustion
temperature and allows more fuel BTU  input, and hence more power
output,  before the turbine blades reach critical temperature.
Finally, the low BTU value of the gas can make ignition difficult
during start-ups and cause flame-outs when load is dropped
rapidly.

Internal combustion reciprocating engine technology provides the
broadest range of design variations.    Commercially available gas
fueled,  spark ignited engine ratings  range in size from less than
100  KW to  more than 10,000 KW.   Caterpillar, Cooper-Superior, and
WauJcesha all have more than 20 engines  operating on landfill gas
(Augenstein & Pacey,  1992).  Figure #5  depicts a typical landfill
gas-to-electrical generating plant  employing internal combustion
reciprocating engines.

Reciprocating engines in landfill gas service can be subdivided
into categories,  based upon the  design  characteristics of their
carburization systems and their  operating speeds.  The first
category is the naturally aspirated (NA) engine, which commonly
ranges  in  size from less than 100 KW  up to approximately 1,000
KW.  The NA engine draws the combustion air/landfill gas fuel
mixture into the carburetor from atmospheric pressure and in
stoichiometric proportions.  The advantage of this air/fuel
carburization system is that it  is  relatively simple and robust
in handling the contaminants found  in landfill gas.  The fuel gas
compressor can be simple,  since  low fuel pressure is required.
The  disadvantage of this type of engine is its high capital cost

                              H-4

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to power output  ratio  (i.e.,  $/KW).   In addition, the emissions
of nitrous oxides  (Npx)  and  carbon monoxide  (CO) are relatively
high and greatly' variable  based  upon  operating conditions and
mechanical adjustments.

The second category of engine is "lean burn", which means that
air in excess of stoichiometric  requirements is introduced into
the combustion chamber.  Typically, lean burn engines are
turbo-charged and  aftercooled.   This  means that the exhaust
gasses from the  engine are used  to boost the pressure of the
incoming combustion air, which is then cooled before being fed
into the carburization system.   This  "supercharges" the
combustion chamber with  the  air/fuel  mixture and consequently
provides for increased engine power output.  In engines  having
normal spark plugs and a single  chamber in the cylinder, air/fuel
mixtures can be  leaned out to provide approximately 7% excess
oxygen in the exhaust gas  stream.  In engines provided with dual
combustion chambers, an  easy to  ignite air/fuel mixture is
introduced into  the pre-combustion chamber and ignited by a spark
plug, while a very lean  air/fuel mixture is introduced into the
main cylinder.   This allows  air/fuel  mixtures to be leaned out to
provide approximately 11%  excess oxygen in the exhaust gas
stream.  The significance  of excess oxygen will be discussed in
the air emissions  portion  of this paper.

Finally, reciprocating engines can be categorized based upon
their rotational speed or  revolutions-per-minute (RPM) .  Low
speed engines are  defined  to operate  below 700 RPM, while medium
speed engines operate between 700 RPM and 1,000 RPM, and high
speed engines operate above  1,000 RPM.  The slow speed engines
are normally large in physical size and power" output.  A long
stroke and slow  speed provides for the maximum conversion of
energy from fuel combustion  to rotational motion.  The slow speed
also reduces component wear,  and thus minimizes maintenance
requirements.  This category of  engine strives for fuel
efficiency, low  maintenance,  and high reliability.  The
disadvantages of these engines are their relatively large size
(both physical and power output), and their relatively high
capital cost to  power output ratio ($/KW).  Alternatively, high
speed engines typically  have short strokes and attempt to
maximize power output while  minimizing physical size.  The high
speed increases  component  wear and maintenance requirements.
However, high speed engines  have relatively low capital cost to
power output ratios ($/KW).

Probably the most  common engine/generator used in landfill gas
service, the Caterpillar #G3516SITA-LE, is turbo-charged,
aftercooled, and operates  at 1200 RPM.  The #G3516SITA-LE is
rated at 800 KW  output with  130  degree Fahrenheit aftercooler
water temperature.  In comparison, the #G3516SINA naturally
aspirated version  of this  engine is only rated at 455 KW.  The
#G3516SITA-LE engine strives  for a low capital cost to power
                              H-5

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output ratio.   The disadvantage  of a  turbocharged engine is that
the  exhaust valves and turbo-chargex  wheels are  subject to
relatively high temperature gasses and  the build-up of deposits
containing silica.   The high operating  speeds accelerate the wear
caused by  these deposits.   These factors require increased
maintenance, when compared to natural gas fueled units.  In
addition,  more  sophisticated fuel gas compressor skids are
normally required to deliver landfill gas into the carburization
system at  approximately 35 pounds per square inch gauge pressure
(PSIG) .  Caterpillar has attempted to minimize the fuel gas
compressor concern by developing a carburization system which
mixes  the  gas and air before turbocharging, thereby reducing the
necessary  fuel  gas pressure to 2 PSIG.

It should  be noted that all types of  internal combustion
reciprocating engines are subject to  corrosive attacks from the
halogen compounds found in landfill gas.  The combustion of
landfill gas causes acids to form, which can make their way into
the  lubricating oil and attack close  tolerance metal surfaces
associated with the engine's top-end  (e.g., valve stems, valve
guides, cams, etc.)  and bearings.  The  most common methods of
combatting the  corrosion are as  follows:

  1) Use lubricating oil containing a high "Total Base Number"
      (TEN).

  2) Use oil filters treated with chemicals to neutralize acids.

  3) Plate components subject to attack with chrome or
     manufacture from corrosion  resistant metals.

  4) Raise the  operating temperature  of the engine to maintain
     acids in vapor state.

  5) Draw  a vacuum on the  engine crankcase to evacuate acid
     vapors before they can contaminate the lubricating oil.
Installation and Operating Costs

In comparing installation and operating costs for the three types
of technologies, it  is difficult to obtain an unbiased analysis
for several reasons.  First, there is the issue of economies of
scale.  As with any  electrical generating facility, the cost per
kilowatt of capacity declines as the power output rating
increases.  Second,  to perform an analysis, specific pieces of
equipment must be compared.  Finally, the analysis must include
all necessary plant  auxiliaries in addition to the prime movers
alone.

In an attempt to circumvent these problems, the author decided

                              H-6

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 that the "theoretical" plant should be rated approximately 5,000
 KW net output capacity.  This size is in a  range which all three
 technologies  can efficiently serve.  Second,  the author has
 included the  installation,  operation, and maintenance costs
 associated with the prime mover,  building structure,  electrical
 interconnect,  fuel gas compression equipment,  and auxiliary
 equipment in  the analysis.   Any costs associated with the    '
 financing, project development, gas collection system,  site
 specific work,  or environmental permitting/compliance have been
 excluded.  Finally, the author decided to compare only the most
 frequently utilized equipment from each technology.   These are
 condensing steam turbines,  simple cycle combustion gas turbines,
 and lean burn,  turbo-charged,  aftercooled,  high speed internal
 combustion reciprocating engines.   Table #1 indicates the gross
 and net power output ratings of the theoretical plants.

 It is also important to address the issue of gas clean-up.  As
 previously noted,  reciprocating engines are the most  susceptible
 of the three  technologies to the effects of landfill  gas
 constituents.   Economic trade-offs must be  considered in
 determining the level of gas processing to  remove contaminants
 and particulate.   Cleaning up the gas reduces prime mover
 maintenance,  but adds both installation and operating costs.  For
 the purposes  of the analysis,  an attempt was made to  level the
 playing field by following the same basic philosophy  of gas
 clean-up, but taken to the level of sophistication required for
 each technology.   The basic design steps are as follows:

   1)  Liquid slug and large particle knock-out.

   2)  Compression to working pressure.

   3)  Gas cooling to ambient temperatures to condense  water vapor.
                                                           if
   4)  Filtration of small particles and coalescing of  liquid
      droplets.

   .5)  Reheating above the gas dew point.

 It should be  noted that the boiler burners  of a steam turbine
 power system  requires only steps 1 and 2 above,  while the
 combustion turbine and reciprocating engine power systems
 normally require all of the steps listed above.

;Table #2 lists  the construction costs for the three "theoretical
 plants" on a  dollars per net kilowatt basis,  while Table #3 lists
 the operation and maintenance costs on a dollars per  net
 kilowatt-hour basis.   From this analysis it can be seen that
 internal combustion reciprocating engine plants have  the lowest
 installation  costs, at $894 per net KW, but also have the highest
 operating costs,  at approximately $0.013 per KWH.   The combustion
 gas turbine plants have the highest installation costs,  at $1,20'2

                               H-7

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per net KW, but the lowest operating costs, at less than $0.010
per net KWH..  Steam turbine power systems are in the middle, with
$906 per net KW installation costs and slightly more than $0.010
per net KWH operating costs.  In reviewing this data it is
important to recognize that site specific factors  (e.g., quantity
of recoverable gas, availability and cost of water, waste water
and gas condensate disposal, etc.), financing costs, and air
permitting constraints have not been figured into the data.  The
cost impact of these items could easily outweigh the underlying
advantages of the "least cost" technology.
Thermal Efficiencies

Landfill gas-to-electrical generation facilities acquire revenues
based upon the amount of energy sold (i.e., net plant KW output
multiplied by the hours of operation).   Previous studies have
shown that landfill gas collection system problems account for
the majority of unplanned downtime and capacity shortfalls
experienced at gas-to-electric generation facilities.  All three
technologies are capable of providing plant availabilities in
excess of 95% when only planned maintenance is considered
(Markham, 1992) .  As a result, net power output, is tied directly
to the plant thermal efficiency, or thermal heat rate.

In theory, given-a fixed quantity of gas, a plant with a higher
thermal efficiency would provide a higher net power output, and
hence more revenue.  In reality, however, incremental equipment
ratings readily available from the manufacturers' impose
constraints.  Thus the most "economic" plant may have more or
less fuel consumption capability than the amount of recoverable
gas at any given time. 'Never the less, thermal efficiency is an
important consideration in selecting the technology to use on a
project, as well as selecting between equipment within a
technology category.

Figure #6"depicts both the prime mover and overall plant thermal
efficiencies for the theoretical plants with approximately 5,000
KW net output.  The figure indicates that the internal combustion
reciprocating engine plant has the highest prime mover and plant
efficiencies (i.e., lowest heat rates)  at 12,200 BTU/KWH and
13,140 BTU/KWH respectively.  Combustion gas turbines follow with
14,800 BTU/KWH prime mover and 17,900 BTU/KWH plant heat.rates.
Steam turbines are the least efficient in this size range, with
20,800 BTU/KWH steam cycle and 23,540 BTU/KWH plant heat rates.

It should be noted that both steam turbine plant and combustion
gas turbine plant power output capacities will vary with ambient
temperature.  In the case of the steam turbine plant, condenser
water temperature impacts the amount of steam which can be pushed
through the turbine.  In the case of combustion turbines, excess

                              H-8

-------
air must be compressed and used to provide cooling to temperature
critical components.  When ambient air temperatures increase, the
amount of work expended to compress the hotter and less dense air
increases.  Consequently, the power'which can be obtained from
steam or combustion gas turbine plants decreases as ambient
temperature increases.

It is also vital to note equipment efficiency at partial loads.
In the case of reciprocating engines, prime mover thermal
efficiency decreases at a relatively constant rate from 28% at
full load down to approximately 21% at 25% load.  In the case of
combustion gas turbines, prime mover efficiency decreases from
23% at full load down to only 13% at 25% load.  The steam turbine
cycle thermal efficiencies drop off approximately 17% at full
load to 10% at 25% load.  Thus, the internal combustion
reciprocating engine plant would provide an even greater
advantage in terms of thermal efficiency if the plant fuel
capacity exceeded the recoverable gas quantity.  Since the
quantity of recoverable landfill gas will vary over the life of a
project, partial load efficiencies must be carefully considered
in the selection of the prime mover technology.
Air Emissions

The final area to be investigated is equipment air emissions.
With the enactment of the Clean Air Act,  permitting and
compliance with air emissions' regulations will continue to
increase in importance.  The criteria air pollutants which are of
concern for landfill gas recovery plants  are nitrous oxides
(NOx), carbon monoxide (CO),  non-methane  organic compounds
(NMOC's), particulate matter (PM) ,  and sulfur oxides (SOx) .  Once
again, in order to maintain a level playing field, comparison of
the technologies will be based upon the plant emission rate per
net KW output.  Table #4 lists the annual emission levels for the
three technologies.  The data has been extrapolated to correspond
to the theoretical plants under consideration from manufacturers7
information, US EPA reports,  78 combustion gas turbine emissions
tests, and 23 internal combustion reciprocating engine emissions
tests (US EPA, 1990).

The basic keys to NOx, CO,  and NMOC emissions are combustion
temperature, air/fuel ratio,  and residence time that the
combustion products are confined at elevated temperatures within
in the equipment.  There are trade-offs inherent in trying to
control the emission level of a particular pollutant, since the
formation of other pollutants may be promoted.

Because there is very little fuel bound nitrogen in landfill gas,
NOx is formed when free nitrogen in the combustion air combines
with oxygen at high temperatures.   High temperatures and long

                              H-9

-------
residence  times promote  the formation of NOx.  As previously
stated,  combustion gas turbines utilize large quantities of
excess air for cooling,  thus providing approximately 15% excess
oxygen in  the exhaust.   The excess air and relatively short
residence  time provide the  combustion turbine plant with NOx
emissions  of only  41  tons per year (TPY) .   The boilers of
landfill gas fueled steam turbine power systems typically operate
between  1500 and 2000 degrees Fahrenheit and have combustion
controls which monitor excess oxygen in the exhaust to control
combustion efficiency.   These factors, combined with relatively
short residence times, mean that the steam turbine plant NOx
emissions  would be approximately 68 TPY.  "Low emission" internal
combustion reciprocating engines typically operate with 7% or
greater  excess oxygen in the exhaust, and the residence time in
the cylinder -and exhaust manifold typically exceeds the time
experienced in the other technologies.  These factors combine to
give the reciprocating engine plant emissions of 184 TPY, or
three to four times higher  NOx levels than the other two
technologies.   It  should be noted that slow speed, lean burn
engines  can provide the  better NOx emission levels than
represented by our theoretical reciprocating engine plant.

The factors promoting the formation of CO are opposite of those
for NOx, since CO  is  a product of incomplete combustion.  Very
low combustion temperatures,  rich air/fuel mixtures, or
incomplete mixing  of  the air and fuel tend to promote the
formation  of CO.   The boilers used in steam turbine plants
provide  the best CO emission levels,  at approximately 17 TPY.
The combustion gas turbine  plant follows with CO emissions of 51
TPY.  At 144 TPY for  CO  emissions, the internal combustion
reciprocating engine  plant  is again significantly higher than the
other technologies.   If  NOx levels are reduced in reciprocating
engines  by changing the  air/fuel mixture or spark timing, CO
levels are often increased.   Thus there is a trade-off in the
control  of these pollutants.

The destruction of non-methane organic compounds is enhanced by
high combustion temperatures and long residence times.  If
operating  properly, all  three technologies can provide 98%
destruction efficiency or better.  The results of the analysis
show that  the steam turbine plant provides the lowest level of
NMOC emissions (i.e., highest level of destruction) at l TPY,
followed by the combustion  turbine plant at 12 TPY, and by the
internal combustion reciprocating engine plant at 17 TPY.

Since landfill gas contains no "solids" other than soils carried
along due  to velocity, particulate matter emissions are minimal.
The distinction between  the three technologies is evident only
due to the combustion of lubricating oils used in the fuel gas
compressor or prime mover.   Consequently,  it is not surprising to
find that  the steam turbine plant provides the lowest PM
emissions  at l TPY, followed by the combustion gas turbine plant

                              H-10

-------
at 2 TPY,  and the  internal combustion  reciprocating engine plant
at 3 TPY.

Sulfur oxide  concentrations in the  exhaust gas will be directly
proportional  to the sulfur bearing  compounds  (e.g., hydrogen
sulfide, mercaptans,  etc.)  found in the  landfill fuel gas.  Since
these sulfur  bearing  compounds are  converted  directly to SOx, the
choice of  technology  will not materially impact plant emissions
for a given volume of landfill gas.  However, since the
theoretical plants have differing heat rates, they will emit
different  levels of SOx at full load.  Given  "typical" landfill
gas composition, the  steam turbine  plant would emit approximately
38 TPY of  SOx, while  the more efficient  combustion turbine plant
would emit 30 TPY, and most efficient  internal combustion
reciprocating engine  plant would emit  only 21 TPY.

The analysis  reveals  that steam turbine  power plant provides the
lowest overall emission levels, followed in order by the
combustion gas turbine plant and the internal combustion
reciprocating engine  plant.   It is  important  to note that all
equipment  manufacturers are making  strides in reducing emission
levels.  In addition,  exhaust gas clean-up equipment may be
applied to all three  technologies to further reduce emission
levels.  When investigating emission reduction systems, the
project developer must consider more than the installation and
operation  costs of such systems.  The  trace components found in
landfill gas  can react with system  chemicals and catalysts to
reduce the effectiveness of the systems  (Augenstein & Pacey,
1992).  The underlying advantages and  disadvantages of the three
technologies  should consequently be the  primary focus when
considering air emissions.
Conclusion

In summary,  it can be seen that  steam turbines, combustion gas
turbines, and internal  combustion reciprocating engines each have
inherent strengths and  weaknesses.  Tables #5, #6, and #7 list
the inherent advantages and disadvantages of each technology.
The relative importance of installation and operation costs, heat
rates, and air emissions must be taken into consideration when
selecting prime movers  for utilization in landfill gas-to-
electrical generation facilities.  It must be remembered,
however, that impact of site specific considerations can be more
important to development of a successful project than the
underlying characteristics of the technology chosen.
                             H-11

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                                                                             FIGURE #2


                                                         LANDFILL GAS-TO-ELECTRICAL GENERATION PLANTS
                                                          SIZES IN OPERATION IN THE U.S. DURING 1992
                           FIGURE #1
        LANDFILL GAS-TO-ELECTRICAL GENERATION PLANTS
        TYPES IN OPERATION IN THE U.S. DURING 1992
                                                            7 0
                                                            60
I
CO
     STEAM
    TURBINES
       4%
COMBUSTION
   GAS
 TURBINES
   25%
                       INTERNAL COMBUSTION
                       RECIPROCATING ENGINES
                                                            30
                                              66
                                                                              5,000 TO
                                                                              10,000 KH
                                                              10,000 TO   OVER
                                                              15,000 KW  15,000 KW
                                                                                 SIZE OF PLANT

-------
                         FIGURE #3

                  CONDENSING STEAM TURBINE
        LANDFILL GAS-TO-ELECTRICAL GENERATION PLANT
 INLET
 AIR   I  F.D. FAN
INLET
KNOCKOUT
               EXHAUST

GAS
* SLOWDOWN
w
*-
'"S *"
z) '
BOILER
4


STEAM
TURBINE
          GAS      I
          COMPRESSOR
    LANDFILL
    GAS

                                            GENERATOR
                          CONDENSER
                             I
                                            COOLING
                                            TOWER
             t
                           CONDENSATE
                           PUMP
                                    COOLING
                                    WATER PUMP
                                     'MAKE-UP
                                     WATER
                    DEAERATOR
                     T
          BOILER FEED PUMP
                        H-13

-------
                              FIGURE #4

                     COMBUSTION GAS TURBINE
         LANDFILL GAS-TO-ELECTRICAL GENERATION PLANT
INLET
KNOCKOUT
                   GAS RECYCLE
                      VALVE
LANDFILL
GAS
            1ST STAGE GAS
            COMPRESSOR
INTERSTAGE
KNOCKOUT
    CONDENSATE
                            FINAL
                            FILTER
                          -
  AIR
  INLET
                  AIR
                  FILTER
                                                           EXHAUST
                                                 EXPANSION
                                                 TURBINE
                                  COMBUSTOR
                      COMPRESSOR
                      SECTION
                            H-14

-------
                       FIGURE #5

       INTERNAL COMBUSTION RECIPROCATING ENGINE
       LANDFILL GAS-TO-ELECTRICAL GENERATION PLANT
INLET
KNOCKOUT
LANDFILL
GAS
    CONDENSATE
               GAS RECYCLE
                 VALVE
                 FUEL GAS
                 COMPRESSOR
                       "
             AIR
             INLET
                         AIR
                         FILTER
             GENERATOR
          EXHAUST
RECIPROCATING
  ENGINE
                   AFTERCOOLER
                     WATER
 ILfi
JACKET WATER
                          RADIATOR
                      H-15

-------
                    FIGURE #6


LANDFILL GAS-TO-ELECTRICAL GENERATION PLANTS
               THERMAL EFFICIENCIES
                     PRIME MOVER
                     'EFFICIENCY
                     TOTAL PLANT
                     'EFFICIENCY
   30%
   25%
   20%
   15%
   10%
    5%
           20,800
           BTD/KWH
               23,540
               BTU/KHH
 14,800
 BTU/KWH
             STEAM
            TURBINE
                              ,940
                             JTU/KWH
 COMBUSTION
 GAS TURBINE


TYPE OF PLANT
                                       12,200
                                       BTU/KWH
                                           ,13,140
                                           BTU/KWH
I.C. RECIP
  ENGINE
                      H-16

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        TABLE #1
LANDFILL GAS-TO-ELECTRIC PLANT
   POWER OUTPUT RATINGS
m^mmmm
PRIME MOVER
NO. OF UNITS
GROSS PLANT RATING
AVERAGE LOAD
PERCENT OF CAPACITY
NET PLANT RATING
STEAM TURBINE
6,000 KW
1
6,000 KW
700 KW
11.7%
5,300 KW
COMBUSTION TURBINE
3,150 KW
2
6,300 KW
1,100 KW
17.5%
5,200 KW
1C RECIP. ENGINE
800 KW
7
5,600 KW
400 KW
7.1%
5,200 KW

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                                     TABLE  #2
                           LANDFILL GAS-TO-ELECTRIC PLANT
                                 CONSTRUCTION  COSTS
ITEM
UTILITY INTERCONNECT
BUILDING & FOUNDATIONS
ELECTRICAL EQUIPMENT
& CONTROLS
PRIME MOVERS
FUEL GAS COMPRESSORS
BOILER, CONDENSER,
& COOLING TOWER
ENGINEERING
TOTAL COST
COST PER GROSS KW
COST PER NET KW
STEAM TURBINE
250,
500,
350,
1,500,
100,
1,900,
200,
$4,800,


000
000
000
000
000
000
000
000
$800
$906
COMBUSTION TURBINE
250,000
400,000
400,000
3,500,000
1,500,000
0
200,000
$6,250,000
$992
$1 ,202
1C RECIP. ENGINE
250,000
500,000
450,000
2,800,000
450,000
0
200,000
$4,650,000
$830
$894
I
I
oo
     NOTE: Does not Include site specific or project development costs.

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                                      TABLE  #3
                           LANDFILL  GAS-TO-ELECTRIC  PLANT
                           OPERATION & MAINTENANCE COSTS
ITEM
LABOR
(Employee & Outside)
CONSUMABLES
(Oil, Chemicals, etc)
EQUIPMENT PARTS
& REPAIRS
MAJOR OVERHAULS
BUILDING MAINTENANCE
TOTAL COST
ANTICIPATED ON-LINE TIME
COST PER NET KWH
STEAM TURBINE
200
30
50
130
25
$435

$0.
,000
,000
,000
,000
,000
,000
90%
0104
COMBUST
160
25
90
110
25
. $410

$0.
ION TURBINE
,000
,000
,000
,000
,000
,000
93%
0097
ic RECIP. ENGINE;
180
100
120
117
25
$542

$0.
,000
,000
,000
,000
,000
,000
92%
0129
CO
      NOTE: Does not include site specific or financing costs.

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                                        TABLE #4
                             LANDFILL GAS-TO-ELECTRIC  PLANT
                                      AIR  EMISSIONS

CRITERIA POLLUTANT
NOx
CO
NMOC
PM
SOx *
AIR
STEAM TURBINE
68
17
1
1
38
EMISSIONS (TONS/YEAR)
COMBUSTION TURBINE
41
51
12
2.
30

1C RECIP. ENGINE
184
144
17
3
21
I
I
O
      NOTE:  * - SOx emissions are based upon average tested levels of sulfur compounds found In landfill gas.

-------
                         TABLE  #5

                     STEAM  TURBINE
            LANDFILL GAS-TO-ELECTRIC PLANT
  ADVANTAGES
    CORROSIVE  IMPACTS OF GAS ARE MINIMIZED

    CAPABLE  OF HANDLING WIDE VARIATIONS  IN GAS COMPOSITION

    NO GAS CONDENSATE FORMED IN PROCESS

    LOW  AIR  EMISSION LEVELS OVERALL
  DISADVANTAGES
  *                                                           i
    REQUIRES CLEAN WATER SUPPLY                             j
                        TABLE  #6

                 COMBUSTION GAS TURBINE
            LANDFILL  GAS-TO-ELECTRIC  PLANT
    OPERATING COSTS  SENSITIVE TO WATER:
            PORCHASE PRICE
            PURITY
            DISPOSAL COST

    CODES' MAY REQUIRE  24 EOOR A DAY STAFFING
                                                             i.
    INEFFICIENT AT SIZES LESS THAN 10,000  KW                |
                                                             I
    INEFFICIENT AT PARTIAL LOADS ' '                          '
ADVANTAGES
   SHALL PHYSICAL SIZE

   LOW OPERATION AND MAINTENANCE  COSTS

   LOW NOx AIR EMISSIONS



DISADVANTAGES
   HIGH CAPITAL COSTS

   HIGH FDEL PRESSURE REQUIRED:
          .HIGH PARASITIC LOADS
           LARGE AMOUNTS OF GAS CONDENSATE FORMED IN PROCESS

   SPECIALIZED TROUBLESHOOTING KNOWLEDGE REQUIRED

   INEFFICIENT AT PARTIAL  LOADS  _.. ..
         H-21

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                                  TABLE  #7


                    INTERNAL  COMBUSTION RECIPROCATING  ENGINE
                        LANDFILL  GAS-TO-ELECTRIC PLANT
                   ADVANTAGES

                     BROAD RANGE IN ODTPDT RATINGS

                     COMMONLY DSHD TECHNOLOGY - MECHANICS AVAILABLE

                     LOW CAPITAL COSTS

                     EFFICIENT AT FULL LOAD AND PARTIAL LOADS




                   DISADVANTAGES
                     SUSCEPTIBLE TO CORROSION FROM HALOGEN COMPOUNDS


                     SENSITIVE TO CHANGES IN GAS COMPOSITION


                     HIGH OPERATION & MAINTENANCE COSTS:
                           OIL  CHANGES
                           TOP  END OVERHAULS


                     HIGH AIR EMISSION LEVELS OVERALL
                               BIBLIOGRAPHY
Augenstein,  D.  and J.  Pacey.  Landfill Gas Energy Utilization:
Technology Options and Case Studies.  U.S. EPA /AEERL,  Research Triangle
Park, NC.   EPA-600/R-92-116 (NTIS PB92-203116).  June 1992.

Berenyi,  E.  and R. Gould.  1991-92 Methane Recovery  from Landfill
Yearbook.   Governmental Advisory Associates, Inc. New York.   1991.  pp
23.

Markham,  M.A.   Landfill Gas Recovery to Electric Energy Equipment:
Waste Management's 1991 Performance Record.  Proceedings of  the 15th
Annual  Landfill Gas Symposium.  SWANA, Silver Spring,  MD.  March 1992.

Thorneloe,  S.  A.  Landfill Gas Utilization—Options,  Benefits,  and
Barriers.   Presented at the 2nd U.S. Conference on Municipal Solid Waste
Management,  Arlington, VA.  June 1992.

U.S. Environmental Protection Agency.  AIRS Facility Subsystem Source
Classification Codes and Emission Factor Listing for Criteria
Pollutants.   EPA-450/4-90-003  (NTIS PB90-207242).  U.S.   EPA/OAQPS,
Research Triangle Park, NC.  March 1990.
                                    H-22

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APPENDIX I:  GAS CONDITIONING KEY TO SUCCESS IN TURBINE COMBUSTION SYSTEMS
                         USING LANDFILL GAS FUELS (Paper)
                                  Marty Schlotthauer
                        Senior Process Engineer, Technical Programs
                         Waste Management of North America, Inc.
                                   Oak Brook, Ilinois
            In Proceedings of the GRCDA/SWANA 14th Annual Landfill Gas Symposium.
                            SWANA. Silver Spring, Maryland.
                                        1-1

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                      GAS CONDITIONING KEY TO SUCCESS
                       IN TURBINE COMBUSTION SYSTEMS
                           USING LANDFILL GAS FUELS
                                 Marty Schlotthauer
                     Senior Process Engineer, Technical Programs
                      Waste Management of North America, Inc.
                                 Oak Brook, Illinois
BACKGROUND

Waste Management  of North  America  (WMNA) started generating electrical power in
December, 1985 from  their landfill  gas to  electric facility at Omega  Hills Landfill in
Germantown, Wisconsin. Initially two Turbine/Generator (T/G) systems were installed.  Each
system  consisted of a Hall  Fuel Gas  Compressor  (FGC)  skid  and  a Solar  Centaur
turbine/generator set.

On August 15, 1988 after 20,935 operating hours, turbine #1 failed when a hole burned through
the combustor liner and housing. The plant operator actually observed a fire ball coming out
of unit #1 and immediately shut down the system. Turbine #2 with 20,562 operating hours had
exhibited a deterioration in performance over the previous several months. The unit #2 turbine
was  also  shut down  and  shipped along  with unit #1  to  the turbine manufacturer for a
comprehensive examination and failure analysis.
Unit #1:  The combustor case exhibited a large protuberance with a central region which had
melted adjacent to an injector inlet.  The combustor liner was also thermally distressed with
remnants of a small molten region on the cooling air louver near another injector boss. A fine
powdery red deposit covered all internal areas of the combustor. Examination of air blast tubes
showed that ajl fuel injectors and air blast tubes were constricted to some degree with a hard
black deposit.
                                     1-2

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 Chemical analyses of both the black deposit found in the blast tubes and the red surface deposits
 found on the turbine blades were performed.  The composition of the black deposit was mainly
 carbon with small amounts of aluminum, iron, sulfur, magnesium,  and  silicon being detected
 (see Table 1). The red deposit was mainly silicon, typical of deposits routinely found in turbines
 operating in landfill gas application  (see Table 2).   Metallurgical and  structure analysis
 confirmed that all turbine components were designed and made to withstand the normal operating
 condition.  The problem, however, was due to blockage of the aforementioned extended air blast
 tube. This blockage forced the fuel to pass and ignite between the liner and the case. The high
 temperature of combustion caused the combustor case to melt.

 Unit #2:  Three of the first  stage turbine blades had failures of varying degree in the blade
 airfoils.  All turbine section gas  path components were found to have a heavy coating of a red
 deposit.  The combustor liner air blast tubes were partially blocked  with a hard black deposit,
 similar to turbine #1. Chemical  analysis of the red deposit (see Table 2) revealed the presence
 of oxygen (in the form of oxides), silicon, iron, sulfur, tin, calcium, and aluminum, very similar
 to #1  turbine.  Damage and deterioration of a combustion  liner cooling  air louver located
 downstream of the injector blast tubes was also observed.

 Metallographic examination provided sufficient evidence to conclude that  thermal stress rupture
 was the primary cause of blade failure. Similar to Unit #1, the deposit  of oil and  condensate
 not only caused severe fuel mal-distribution but also interfered with the combustor aerodynamics
 resulting in abnormal combustor exit temperature profile.

 Further build up of the deposits caused the pressure inside the blast tube to exceed the combustor
 inlet air pressure resulting in leakage of  the fuel/air mixture  outside the combustor can and
 combustor housing.

 The turbine manufacturer strongly recommended that fuel gas compressor oil and condensate
 carryover be prevented from entering  the engine fuel and combustion system.   They also
 recommended routine horoscope inspections of the injector and injector boss air blast tubes be
performed every 1000 hours.
                                        1-3

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PROCESS DESIGN EVALUATION

Based on the turbine manufacturer's failure analysis and WMNA's own investigation it was
agreed that the problem had been initiated by the inlet gas and not the turbines themselves.  To
thoroughly understand and resolve the oil carryover problem, WMNA conducted the following
evaluations of the process system as it was configured at the time of the failure. Refer to Figure
No. 1.

•     Existing Filter/Separator (Fil/Sep) performance.
•     Pipe route from the fuel gas compressor to the turbine/generator.
•     Temperature and pressure differential profiles.
•     Oil carryover quantities.
•     Requirements for final filter/separator at the turbine inlet.
•     Gas  mixing versus gas to gas heat exchanger.
•     Compressor operations and design.
•     Effects of high ambient temperatures and high humidity on gas conditioning and turbine
      performance.

      1.     Existing Filter/Separator Performance

      The existing filter/separator was removing particles 1 micron in diameter and larger. It
      was  not designed nor rated to remove  oil in the form of aerosols.   The Fil/Sep unit
      would however prevent slugs of oil or condensate from entering the fuel system when
      properly installed and  maintained.    After consulting  with  major filter/separator
      manufacturers, WMNA concluded that improved filtration was required at the T/G inlet.
      The following design objectives were established as minimum requirements for the new
      system.
             Place a final filter as close to the turbine inlet as possible to remove oil droplets
             and aerosols from the gas.
             Use a two stage, reverse flow, inside  to outside filter element system.
                                      1-4

-------
       Increase gas temperature above the dew point (after interstage cooling) so that oil,
       water and emulsion can separate at the FGC skid.
Based on technical and cost analysis, a Pall Process Filtration Company Liquid/Gas (LG)
coalescer filter unit was selected. Pall guaranteed removal of 99.98% of solid and liquid
aerosols at 0.3 microns and above,  with downstream concentration of 0.003 ppmw or
less.

2.     Pipe Route From the FGC to the T/G

The existing piping was  routed  underground  between  the  FGC  and T/G  skids.
Engineering calculation showed that  the average heat loss underground (and to the above
ground portion) was  approximately 66,000 btu/hr. On cold windy and/or rainy days this
heat loss  would exceed 70,000 btu/hr. Because the gas leaving  the FGC skid was at or
near its dew point, any cooling between the FGC and the T/G would result in formation
of condensation in the piping in substantial qnaitities.   WMNA determined that low
points, fittings, and changes in direction should be minimized. A new pipe with proper
insulation was installed (see Figure  1).

3.     Temperature  and Pressure Differentials

The Chem Share ™ process simulator was used to evaluate the effects of temperature and
pressure on  the gas under normal  operating conditions.   The process  scheme  was
simulated and dew point temperatures for inlet and outlet gas streams were calculated.
The existing operating  configuration mixed hot  gas  from  the  third stage compressor
discharge bottle with cool gas directly from the air exchanger.

The system was set up to maintain a gas temperature of 150°F at the FGC skid before
the gas went to the turbine building.  By mixing hot gas with cool gas before any
separation of free liquid from the cool gas, the product gas would  have a dew point of
144°F. By the time the gas reached the turbine its  temperature would drop to  130°F
                               1-5

-------
which was below the dew point temperature. Liquids would drop out between the FGC
and T/G setting up the possibility of slugging the filter at the turbine inlet.

This predictable situation was verified by the amount of liquids which accumulated at the
filter/separator (Fil/Sep) during normal operations.  At times the levels in  the upper
section of the Fil/Sep would fill unexpectedly, which indicated a slug of liquid had been
carried  over to  the  filter by the gas.  The system was not effective in reducing
condensation within the pipe between the FGC and T/G.

A solution to control the dew point and a means of maintaining some superheat between
the FGC and T/G was provided by a gas to gas heat exchanger installed between the final
separator and the T/G on  the FGC skid.  The hot gas from the third stage compression
at 275 °F  was used to reheat the cool gas  after  it had been cooled and separation of
entrained  oil and water  was accomplished.  The reheat,  (via  shell and'  tube  heat
exchanger) would raise final gas temperature by 20-30 °F and would insure that no water
condensed between the FGC discharge and  the T/G inlet filter.

4.     Oil Carryover Quantities

Each  compressor used  1.1  to 1.5 gallons  of lube oil per day.   The existing Fil/Sep
removed 25% to 50% of the contaminants depending on ambient conditions. The amount
of suspended aerosols passing through the  Fil/Sep and entering the turbine  #1 was 2
ppmw which was equivalent to 110 pounds of oil a year; or 14.65 gallons per year.

5.     Filter/Separatoribr the FGC

Since the  gas entering the third stage discharge scrubber was above its dew  point, the
scrubber was not removing any liquid. Sizing calculations also indicated that the existing
separator bottle was too small to effectively remove condensed liquids that were formed
in the aftercooler section.  The Fil/Sep was adequately sized and was surplus equipment.
                                1-6

-------
It was decided to relocate the existing Fil/Sep to downstream of the aftercooler (see
Figure 1) as a pre-filter to the final liquid/gas coalescer.

6.     Gas Mixing Versus Gas to Gas Exchanger

Gas properties and Chem Share results indicated that reheating the gas after the Fil/Sep,
by gas injection was not appropriate. Instead, we concluded that a gas to gas heat
exchanger (see Figure 2) would be quite efficient.

7.     Compressor Operations and Design

The fuel gas compressor (FGC) had experienced valve plugging, emulsion formation and
piston failure, mostly due  to poor pre-filtration.  More efficient  filtration was
recommended.

8.     High Temperature and Humidity

High  temperature and humidity experienced during the summertime could contribute to
instability of T/G operation due to changes in gas quality.  Higher rates of condensation
along with poor liquid removal efficiency needed to be corrected to protect the T/G.  A
gas to gas heat  exchanger and improved filtration  would control  the dew point and
minimize  the  adverse effect  of high  temperature  and  humidity  on  the turbine
performance.

Selection of Pall Filtrations  System Liquid Gas (LG) Coalescer/Filter

The Pall LG's were selected  based on ability to remove both particulate and oil  vapor
from  the gas stream. The filters are located adjacent to the turbines with a minimum
amount of piping between the filter and the turbine fuel inlet flange.  Pall filter housings
and dements were selected competitively based on removal efficiency of particulate and
                                1-7

-------
 aerosols, as well as price and filter life expectancy.  Performance guarantees of the Pall
 system included the following:

 1.     Removal of 99.98% of aerosols and particulates 0.3 microns and larger with
       downstream aerosol concentrations of less than 0.003 ppmw (3 parts per billion
       by weight).
 2.     No re-entrainment of coalesced liquids.

 3.     Low saturated pressure drop (less than 1.2 psi differential).

 4.     Long filter life (typically 1 year or longer).

 5.     Filtration to  remove both liquid and solid contaminants to the levels specified (in
       the absolute  terms).

 POST-INSTALLATION REPORT

 WMNA completed  the  above modifications during  May of 1989.  The first overall
 inspection revealed  the following:

 After 90 days of operation  the Pall LG performed efficiently and effectively.  On July
 11, and 12, the two turbine units were shutdown and boroscoped. The T/G fuel system
 and the Pall filter housings were opened and inspected.  The most significant evidence
 of the effectiveness was seen in the fuel injector nozzles.  They were exceptionally clean
 and free of any buildup.   There was  no evidence of  oil carryover and only  slight
 discoloration on the tips.   The fuel  control valves were dry and no  residual oil or
 condensate was found. The filter elements were clean and in "like new" condition.  No
evidence of  oil carryover was found downstream of the Pall housing.  The horoscope
inspections showed  no accumulation  of oil or deposits  on the blast tubes or turbine
combustor.  The internals of the combustor  and turbine inlet nozzles actually appeared
                               1-8

-------
 to be cleaner, as if the engine was being cleaned by the cleaner fuel. An oil carryover
 test was performed by Pall field services on July 26, 1989.

 Results of the Pall field test are given in Table 3.  The results confirmed that the Pall
 LGs were performing to guarantee levels with paniculate removal (absolute)  of 0.3
 microns with aerosol penetration at 3 to 5 parts per billion.  The Pall  Well filter
 cartridges were replaced after one year.  The elements were not exhibiting any excessive
 pressure drop and were replaced during routine maintenance.  Inspection of the filter
 elements was performed by removing a section; dissecting it and examining the internals.
 The filters remained in excellent condition. Prior to installing the filters, fuel control
 valves were rebuilt quarterly and oftentimes more frequently  due to contamination and
 condensation. No fuel valve rebuilds have been required since the filters were  installed.

 Ketema Gas/Gas Heat Exchanger

 The gas to gas heat exchanger was installed to use third stage  discharge gas at 250°F to
 300 °F to reheat third stage filter/separator effluent to 30 °F above its saturated dew point
 to eliminate the potential of condensation occurring between the fuel gas compressor and
 the turbine inlet.  Each exchanger was designed to handle 6300 Ib/hr of gas and  exchange
 91,000 btu/hr. The delta T approach temperature at design conditions was 30°F tube side
 and 27 °F shell side.  The heat exchangers were performing at  or above the performance
 specifications. During hot days and at reduced flow rates the exchangers provided delta
T approach in the range of 50°F on the shell and tube sides. This is due to higher  third
 stage  discharge  temperature and higher interstage cooling temperatures from  the air
cooled exchanger. Gas leaving the FGC skid was a 170°F. Gas  at the turbine inlet has
been between 145 °F and  160 8F during the summer  season.  During  winter months
interstage temperatures decrease and TG inlets average 120°F.  New exchangers are
more  efficient  because  fouling  factors which were  considered in design  have not
materialized.  As fouling factors develop, efficiency and overall heat exchange  rates will
be reduced to within the specified limits.

                                  1-9

-------
 Results

 The gas/gas exchangers performed as specified.   They provided a minimum of 30°F
 reheat to maintain gas temperatures above the dew point at the turbine.

 Post Installation Turbine Inspection

 Since completion of the Process Modification Project and the start up of the units in mid-
 May 1989, the results have been impressive.  The purpose of the modifications was to
 protect the turbine from oil carryover and to prevent future failures due to oil carryover.
 The inspection of the turbine conducted on July 11 and 12,  1989, and January  1990
 indicated the project had met or exceeded its objective in all  respects.  The horoscope
 inspection was performed during the Omega Hills quarterly maintenance shutdown. The
 fuel gas  injectors were cleaner than any injectors inspected  after 1200 hrs of operation.

 The following turbine areas were also boroscoped  and/or visually inspected:

       Gas fuel manifold
       Fuel  injectors
       Combustor liner and case
       Turbine section 1st stage nozzles and blades.

The fuel  manifold had a dark oil deposit in the upper section at the end plate baffle. The
volume of the oil deposit was similar to that observed in gas turbine fuel manifolds at
other  sites.   Due to  their  cleanliness, not all of  the injectors were pulled from the
combustor section for inspection.  The injectors had 1200 hours operating time since the
process modifications were introduced.
                               1-10

-------
Relocate Existing Filter/Separators

The existing filters were previously located at the turbine inlet where the Pall filters have
now been installed.  The process review indicated that the existing separators for the final
stage after cooler effluent were undersized. Relocating the existing filters to the new
location provided more separation of condensate from the aftercooler as well as efficient
filtration of the gas upstream of the gas to gas heat exchangers. This change enabled the
gas/gas exchange to operate with exceptional efficiency.  Fouling after 1 year has been
negligible.
Results
The existing (original) filters, which  were relocated, provided efficient coalescing of
liquids entrained in the gas as it left the aftercooler section of the air cooler.  Significant
quantities of water, oil and organics were removed from the system at this point.  During
winter months when the aftercooler was most effective, the existing filters would remove
large quantities of liquids which would otherwise remain in  the gas and wind up in the
piping and/or Pall LG Coalesces

Relocate Gas Piping  Above Ground

Relocating  the gas  piping from below ground to above ground and insulating  was
necessary to insure  that the gas would remain above its dew point, and eliminate the
possibility of liquids  accumulating in low spots in the system.  Further inducement was
provided in  that meter runs were required to measure the gas flow and provide samples
to the gas chromatographs for record keeping purposes. The below ground portion of the
line was a huge heat sink and reliable control of gas temperatures at the  turbine was
impractical as long as the below ground lines were used.  Two gas  lines were installed
above ground, low points eliminated, meter runs with  sample  points installed, and
insulation provided to conserve heat.
                                1-11

-------
Eesulis
The temperature drop from the FGC to the turbine has been reduced from 30-60 PF down
to 15-20°F.  The gas leaving the FGC final filter, had been as low as 110°F before the
modifications.   The temperature  at  the turbine now ranges  from  145 °F to  160°F
providing a margin of safety of 25°F to 40°F. During the winter season the margin will
narrow due to increased heat transfer in the air cooler, but the gas at the turbine will still
remain well above the dew point.
                              1-12

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PROJECT ECONOMIC ANALYSIS


Turbine failures are a very costly experience. Not only is the possibility of injury to operating
personnel extreme as a consequence of mechanical  failure, but the repair costs are also very
high.  The total cost to repair the failed turbines at Omega in 1989 was $477,000 including

freight and miscellaneous expenses to change out the railed units and install replacement units.

The cost breakdown is summarized below:
•      Repair Cost Unit #1                                 $149,200
•      Repair Cost Unit #2                                 $235,200
•      Removal, package, freight
       to turbine repair shop                                 $8,650
•      Freight, unpack, install replacement
       turbines at site                                       $12,750
•      Lost production & fixed costs
       during shutdown                                     $55,400
•      Administrative overhead and expenses                  $15.800
             TOTAL                                     $477,000

In view of the high cost to replace a turbine and the expected long term benefits which would
accrue after the process modifications, the project expense was classified non-discretionary.  The

Omega Hills process modifications have provided excellent system performance which can be

quantified. To illustrate the economic incentive, a cost savings analysis follows:

•      Project Cost - all equipment, labor,  etc.               $(84.400)

•      Return on Investment
       Revenues - accrued to reduce maintenance,
       increased on-line time

       $105 x 2 unit x 14.58 hrs x 12 month =               $36,740
      hr/turbine           month      year

       Labor  Savings - reduction in manhours expended
       in maintenance and troubleshooting
       (350 hrs x $16.40/hr) =                               $5,740

       Equipment Savings - reduction in material cost,
       to maintain engine systems
       (240 + 180 + 1200  + 800) x 2 =                      $4.840
             TOTAL ANNUAL SAVINGS                  $47,320

The payout period at 10% cost of funds is 24 months.
                                      1-13

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 LIFE CYCLE ECONOMIC ANALYSIS
 Life cycle economics were performed to ascertain the value to WMNA for proceeding with the
 process modifications on all existing and projected installations. The following costs were used,
 based on WMNAs experience.  Numbers are per unit basis:
 •     Average cost to repair one turbine system             $238,500
 •     Average cost to implement process
       modifications & install new filters                     $42,200
 •     Average annual savings accrued                      $23,660
       from modifications
 •     Expected turbine life (in years)                             5
       normal life cycle between changeout
 •     Expected turbine life (in years)                             2.5
       without process modifications
 •     Scheduled turbine changeout,                        $133,720
       includes cost of downtime
                23,660
 NEW SYSTEM  I	
                 0
                 0
 OLD SYSTEM  I	
                  0
Cash Flow - Timetable present value analysis using 10% interest for 10 years.  The present
value of the new system is calculated to be:
PVnew* = 23,660+133,720(0.6209+0.3855)
        - 2,683 x (6.1445) =
             23,660 + 124,575 - 16,487 =                 $141.748
The present value of the ojd. system costs without the process modifications over ten years would
be:
PVold = $238,500 (0.7889+0.6209+0.4899+0.3855)
       + 13,985x(6.1445) =
             545,020+85,930 =                          $630.950
Over a ten year period, the present value difference is  equal to:
             $630,950-$141,748 =                        $489.200 per turbine
WMNA has 25 centaur turbines in operation,  which equates to a total company savings of
                                                     $12.230.000
                                     1-14

238,500
T
2.5
133,720
j . 	
5.0
238,500
T
5.0
YEARS

238,500
T
7.5
133,720
-H- . ,.^ T
10.0
238,500
10.0

-------
 CONCLUSION

 As pointed out in  the text  and as illustrated  in  the photos, the improvement in turbine
 productivity and the reduction of O&M costs has justified the modifications to the process. The
 results have been so overwhelmingly conclusive that Waste Management has decided to install
 Pall filtration on all of its twenty seven (27) turbine installations nationwide. All new projects
 will include gas conditioning using the process design criteria as established at the Omega Hills
 facility in 1988.

 Waste Management is the nations leader in landfill gas recovery. In fact 14.5 billion cubic feet
 of gas was recovered from  16 facilities during 1990.  Currently eight (8) facilities are either in
 design or under construction.  An additional 10 sites are under consideration for development
 in 1991 and 1992.

With the large number of turbine generator systems that will ultimately be in operation and the
high initial investment costs, it becomes evident  that gas conditioning plays a vital role in the
overall success of using landfill gas as a fuel in turbine combustion systems.
                                       1-15

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                             TABLE 1
     Composition of Black Deposits Found in Blast Tube Orifices (wt%)
            _AL   SL   .£a_   _Ee_
            7.75   71.51  0.52   4.25   1.40   10.6   2.68  1.29
                             TABLE 2
         Composition of Red Deposits Found in #1* Turbine (wt%)

             Al    Ca    Fe   _Q_   _S_   _SL     Sn
            1.86  1.52   9.46  47.89       8.50  26.51   4.26

Red Deposit in #2 Turbine had the same composition.
                            1-16

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                               TABLE 3

Liquid/Gas Coalescer and Filter/Separator Performance as Measured in the Field

                                                   Hydrocarbon
       Sampling Point                               Content ppmw
       Influent to Fil/Sep                              0.4536
       Effluent of Fil/Sep0)                             0.1971
       Influent to LG                                  0.1745
       Effluent of LGm                                0.0056
       (1)    All solid aerosols collected on the test membrane were below 25 microns
             in diameter.
       (2)    All solid  aerosols collected  on the  test  membrane were well below  1
             micron in diameter.
                               1-17

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CD

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^

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APPENDIX J: COMPRESSED LANDFILL GAS AS A CLEAN, ALTERNATIVE VEHICLE FUEL (Paper)
                        Los Angeles County Sanitation Districts
                                 Whittier, California
                                    July, 1993
                                       J-1

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   COMPRESSED LANDFILL GAS AS A CLEAN , ALTERNATIVE VEHICLE FUEL

                James Stahl, Ed Wheless, and Stan Thalenberg
                     Los Angeles County Sanitation Districts
                               Whittier, California
ABSTRACT

      The Los Angeles County Sanitation Districts has constructed a compressed landfill
gas fueling facility, located at the Puente Hills. Landfill, which is a fully automatic station
capable of processing and dispensing a high quality compressed gaseous vehicle fuel
derived from landfill gas. The facility is composed of a compression and processing
system, compressed gas storage tanks, and the fuel dispensing station.

      The system draws 250 SCFM of landfill gas containing 55% methane, 45% carbon
dioxide, and less than 1% air. This gas is compressed to an intermediate pressure of 525
PSI and then processed through a cellulose acetate membrane for CO2 removal.  The
product gas (100 SCFM, or 900 gallons  per day diesel equivalent) exiting the membrane
at 500 PSI is further compressed to 3600 PSI and delivered to the storage tanks.

      A demonstration program is underway to verify operational performance of a wide
range of vehicles which routinely operate at the  landfill  using compressed landfill gas.
These vehicles include two refuse trucks, a GMC  Sierra Pickup, a GMC water truck, and
one or more refuse transfer tractors. The goal of the demonstration is to verify that landfill
derived fuel can dramatically reduce  vehicle emissions while  maintaining  normally
expected performance.
INTRODUCTION

      The Los Angeles County Sanitation Districts (Districts) operate and maintain both
a regional wastewater treatment and solid waste management system which provide
services to approximately 5 million people in Los Angeles County. This involves treating
550 million gallons a day of wastewater and managing the final disposal of approximately
half of the 40,000 tons per day of nonhazardous solid waste landfilled in the county. The
Districts' Puente Hills Landfill, with a nominal fill rate of 12,000 tons per day, produces
over 23,000  SCFM of landfill gas which  is collected and used as a fuel to produce
approximately 50 MW of power at an energy recovery (PERG) facility. This landfill is now
generating excess gas which is  being used to produce a clean, alternative vehicle fuel.

      Although landfill gas has been demonstrated to be an excellent fuel for electrical
power generation, the combination of excess power generating facilities and low cost of
natural gas has resulted in power rates lower than the production costs for new power

                                 J-2

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generating facilities.  The production of compressed natural gas  (CNG)   for use in
vehicles, however, offers the potential of both economic and environmental benefits. A
substantial reduction in  air emissions can  be achieved if landfill gas, which is being
collected and burned in flares as a method of pollution control, is processed and then
utilized as a diesel substitute to reduce emissions from heavy equipment operating at the
landfill as well as trucks delivering refuse to the landfill.  The following provides a
discussion of the  refueling  facility, the collection  and  processing  system,  system
economics, and the vehicle  demonstration program under way to obtain operating
experience and establish the  potential reduction in emissions.
LANDFILL GAS COLLECTION, PROCESSING, AND COMPRESSION

     . The gas collection system at the Puente Hills Landfill is designed to prevent odors
and gaseous releases to the environment by maintaining a negative pressure within the
landfill. To maintain the low surface concentrations of methane consistent with the South
Coast Air Quality Management District Standards, the collected gas contains air drawn
in from the surface of the landfill.

      Limited air infiltration, acceptable for flaring or power production, must be held to
very low levels for use as a vehicle fuel.  This  is  necessitated by the California fuel
specification  and  the difficulty and expense of removing  air from the gas  through
cryogenic separation. Since the existing gas collection system contains far too much air,
a new pipe line was added to draw, at a slow rate, from several deep wells collecting a
richer "core" gas with less than one percent air. Adjacent wells will be adjusted to insure
that proper surface conditions are maintained.   An oxygen sensor at the inlet of the
processing system will continuously monitor for potential air migration and prevent air
diluted gas from entering the system. Although this approach limits the quantity of landfill
gas available for vehicle fuel from a selected site, for the Puente Hills Landfill it would
require less than  5% of the available gas to meet  the needs of the  on-site mobile
equipment.

      After obtaining a high quality landfill gas with limited air contamination, the carbon
dioxide (CO2), hydrogen suffide (H2S), and water vapor must be removed.  The  CO2,
accounting for 45% of the core gas, would substantially decrease the heating value of the
gas. The hydrogen sulfide amounts to less than 100 ppm of the core gas.  However, its
presence even in such a low concentration may lead to corrosion in piping, the storage
tanks,  and  engines.   The water vapor  would enhance  corrosion  problems when
condensed during compression and cooling.  In addition to these considerations, the
California Air Resources Board has further established the specifications  presented in
Table 1 for vehicle fuel marketed in California to insure consistent emission test results.
This specification was directed  primarily at natural gas but also applies to fuel  derived
from landfill gas.  Changes in methane, ethane,  and  higher  chain hydrocarbons pose
problems with pipeline natural gas and challenges for engine manufacturers. Landfill gas,
when processed,  should produce a higher octane, more uniform fuel containing only
methane and small quantities of nitrogen, oxygen, and carbon dioxide.  A variety  of

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 technologies are available for removing CO2, H2S, and H20.   Many of these are
 proprietary  and are therefore  available only through  licensed  distributors.   Some
 processes selectively remove only one of the three gases, whereas others remove two
 and even all three simultaneously.
                                   TABLE 1

           Alternative Fuel Specification for Compressed Natural Gas

 Constituent                   CARS                     Processing   Facility
 Requirement

                                                     Inlet     Product Gas

 Methane                      88% min                55% min    96%
 Ethane                       6% max
 C3 and Higher                 3% max
 C6 and higher                  .2% max
 Hydrogen                     .1% max
 Oxygen                       1% max                 .2%
 CO                           .1% max
 HC                           .1% max
 Inert Gas (CO^NJ          1.5 - 4.5% range              .8% N2    4%
 Water                       .9 #/MMSCF            Saturated .5#/MMscf

       The  Selexol Process and Pressure Swing  Adsorption  (PSA) are  the leading
 technologies for production of  pipe  line quality  gas from landfill gas presently in
 operation.  These processes are capable of producing an acceptable product gas but
 both require some form of license and have been  predominately applied to large gas
 flows of 3 MMSCFD or greater.  Both are also normally under steady state, continuous
 duty operation with regular but not constant operator attention.  Membrane separation
 on the other hand is ideally suited to the small quantity of gas being processed and the
 need for intermittent, unattended operation. The membrane package is also offered as
 an independent unit  by several  manufacturers  much  like any  other  component.
 Membrane  separation, however, has limited experience with landfill gas  cleanup.

       Despite the limited landfill gas operating  history,  the membrane separation
 technology was selected for this project.  Foremost  in this selection was the fact that the
 membrane  is a passive device which offers the potential, once demonstrated, to utilize
 a conventional pipeline gas vehicle fueling station design with the simple addition of the
 membrane  module.  This would expand the number of potential bidders and hopefully
. lead to a lower priced, more reliable product.
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FACILITY PROCESS DESCRIPTION

      The complete  unit consists of equipment mounted  on three separate skids
designed  for  automatic, unattended,  outdoor  operation. The  skids include  the
compression skid, the membrane skid, and the gas storage skid. In addition,  a  gas
dispenser is located at a convenient place on the landfill, approximately 1000 feet from
the storage skid. A schematic of the processing system is shown on Figure 1.

      The processing unit utilizes 250 scfm of landfill core gas from the dedicated deep
wells as infeed to the system. The gas is saturated with moisture as it enters the system.
A single water knockout tank located on the compressor skid accumulates all the water
that is condensed out during the compression and cooling stages. The condensate from
this facility flows to the main landfill gas condensate collection system for treatment on
site.

      The gas is drawn in using a 75 hp rotary vane blower which compresses the gas
to 40 psig. This is followed by a series of heat exchangers and reciprocating compressor
stages which raise the gas pressure  to 525 psi and a maximum temperature  of 115
degrees.

      After compression to 525  psi, the gas passes through an activated carbon guard
bed to remove trace  organics. Two guard beds  are provided  in parallel to allow
regeneration of the bed media without disruption in system operation. The top layer of
each guard bed contains silica gel to reduce water vapor present in the gas.  Lowering
the relative humidity of the gas allows for greater hydrocarbon pickup by the activated
carbon, by minimizing the adsorption of water in the carbon pores. The gas then passes
through the activated  carbon portion of the  bed which  selectively adsorbs  heavier
hydrocarbon components. The activated carbon used has a higher affinity for sulfur and
halogenated hydrocarbons.

      The membranes are particularly susceptible to liquid water damage and in fact
dissolve in water. To eliminate moisture the gas is heated in a glycol water bath and then
fed to the membrane purification elements.  The temperature is set to ensure that any
moisture present is in the vapor state. The higher temperature  also allows for a more
efficient operation of the membranes.

      The gas purification membranes consist of a series  of spiral wound cellulose
acetate membrane elements fitted into three separate tubular housings. The tubes are
connected in series.   The elements are selectively permeable to carbon dioxide while
rejecting methane. The process is enhanced, within operating limits, by high temperature,
and a high pressure  differential across the membranes elements.

      The permeate, containing about  28% methane and 72% CO2. is diverted  to  a
waste gas line and  combusted at the  energy recovery (PERG) facility. The residual
product gas, now with 96% methane,  goes on for further compression and storage. Of
the 250 SCFM feed gas, 150 SCFM is waste gas and 100 SCFM is product gas.

                                J-5

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 Dir.pcnGcr
  Storage
Control Puin-l
100 scrn
3600  psi
                                                    Storage lonks
                           v/oste Cos
              STAGE  5

            COMPRESSION
           ISO SCII l-l
           20 X  CM.I


              STAGE  4

            COMPRESSION
                                                            :_n
                    A1
                                              a
                                               D-
                                                  Membranes
                                                          Rc'cytle
            Wu tf r
           Knockout
            Tonk
      '55  '' OH
                          Condenso lt>
                            Rotary Vane     Hr?n I
                             Lonpressor  Exchanger
                                                                                                              3000  psi
                                                                                           Dispensei-
                                                                              Heater
           Carbon
           Guard
           Beds
                                                                           STAGE 2
                                                                          CDMPRCSSIGN
                                                                                         3
                                                                                                COMPRESSION
                                                                           1/Pt
           150  psi

Reciprocating  Compressors
                                                                                                                  psi
                                                  Figure  1
                     COMPRESSED    LANDFILL    GAS
                     C L. E. A N     F" LJ El L. S     F~ A C I L. I  T  Y

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       After leaving the membranes, the product gas is then odorized. The odorant is
similar to natural gas odorant and serves the same safety function - and early warning
of a leak, tt is metered in so as to be detectable at 1/5 of the lower explosive limit of the
product gas.

       The gas is then compressed in a series of stages to a final pressure of 3600 psi
and is stored in  three 10.000 standard cubic foot pressure vessels. The  tanks are
arranged horizontally and are approximately 23 feet long and 20 inches in diameter.

       Underground piping carries the product gas to the gas dispenser is located in an
area easily accessible to vehicles. The entire system design conforms to NFPA 52 which
governs Compressed Natural Gas Vehicular Fuel Systems. The fuel produced conforms
to the California Air Resources Board Proposed Alternative Fuel  Specification For
Compressed Natural Gas.  As such, the product fuel can  be used on any  vehicle
designed to run on compressed natural gas with predictable air emissions.

REFUELING FACILITY DESCRIPTION

       To provide a fast fill operation, 30,000 SCF of CNG is stored in three  vessels at
3,600 psig. The vessels are emptied sequentially during vehicle refueling such that the
first vessel provides CNG until the vehicle tank reaches 3,000 psig or the  pressures
equalize at which point the second storage vessel will deliver CNG followed by the third
vessel if required.  When the first vessel pressure starts to decay the gas compressors
will start automatically to replace the gas. If the vehicle is still not full after the  last vessel
is equalized with the vehicle the compressor will provide CNG directly to the vehicle. In
this mode the fill time will be less than ten minutes for a light duty vehicle  extending to
over an hour to transfer the equivalent of 50 gallons of diesel.

       The  fuel dispenser is similar to a conventional gasoline pump with two fill hoses,
a fuel meter, and an automatic card operated system to initiate operation and record
billing information. One of the dispensing hoses is equipped with a Sherex 5000 nozzle
for fast filling 8,000 SCF (57 gallons equivalent of diesel) in less than ten minutes.  The
second hose  has a Sherex 1000 nozzle which will  rapidly fill light duty trucks or
passenger vehicles.

ECONOMICS

      The facility cost, including design, construction, and initial startup was $900,000 for
the complete system excluding the piping from the dedicated wells. A cost breakdown
is provided in Table II.  This cost was obtained through  competitive, sealed  bids  in
response to a detailed functional specification developed by the Districts for the turnkey
services. The applicable taxes and District staff costs related to engineering, construction
management, and inspection brings the total cost to approximately one million dollars.
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                                  TABLE II

                  REFUELING FACILITY COST BREAKDOWN

                       ITEM                   COST

                  Compressor skid               175,000
                  Membrane skid                110,000
                  Dispenser                      50,000
                  Storage                        40,000
                  Instrumentation/Controls         115,000
                  Electrical                      100,000
                  Miscellaneous                   60,000
                  Engineering, Overhead, & profit  250.000

                  TOTAL CONSTRUCTION COST $900,000
      The operating costs are presented in Table  III in terms of cents per gallon of
gasoline for 25%, 50%, and fuH station utilization.  Since capital recovery of construction
costs  represent a majority of the fuel production cost, fuel usage is  key to low cost
production.
                                 TABLE III

                                FUEL COST


            UTILIZATION       COST PER GAL GASOLINE EQUIVALENT

             100%                             48C
              50%                              74<5
              25%                              126C

            Basis: Capital recovery, 15 yrs. @ 7%
                   Power, 5C/kw-hr
                   O & M, 3% of construction cost
                   Gallon of Gasoline = 125  scf of CNG


VEHICLE DEMONSTRATION PROGRAM

      In late 1991, the  Districts initiated a program to utilize  landfill gas as a  clean
burning alternative fuel for District vehicles and heavy-duty equipment.  The program also
envisioned that fuel could be made available to  users of the landfill to further reduce air
                                 J-8

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emissions and dependence on petroleum products. The program is primarily dependent
on the engine manufacturers ability to produce low emission, dedicated CNG engines.
This is an emerging technology with a limited number of equipment suppliers who move
very slowly in product development. This has  been the major factor in shaping the
program outlined below.
Light-Duty Vehicles

      In late 1991, the Districts ordered a GMC 3/4 ton Sierra pickup in place of a normal
gasoline model.  This vehicle was one of 1,000 light-duty vehicles produced by GMC
Truck Division with assistance from the local gas company and others.  The vehicle was
delivered in mid 1992. The initial operating experience included poor performance, limited
miles per tank or gallon equivalent, and lack of training of the dealer service personnel.
The  performance has improved and is now equivalent to a normal  gasoline engine
version  but the mileage has not improved. Additional purchases will be dependent on
GMC ability to correct this problem.

Medium Duty

      A dedicated natural gas water truck was purchased in mid  1992. This truck is a
GMC with a Hercules 5.6 liter engine. This engine is provided with a factory warranty.
This  truck  is expected to be operational at the Puente Hills Landfill by April 1993.

Refuse Trucks

      Two private refuse collection companies will be participating in a program with the
Districts with funding provided by the South Coast Air Quality District to repower a refuse
packer and a roll-off. The packer is a Volvo-White which will be powered by a Detroit
Diesel  Series 50 dedicated CNG  spark ignited  diesel  engine.   The roll-off is an
International which will be powered by a CAT 3306 dedicated CNG engine. Both engines
carry warranties from the engine manufacturer and are expected to have low emissions.
Both trucks are expected to be operational in mid 1993 and will be evaluated over at least
a one year period. Air emission testing will be conducted  on both engines.

Heavy Duty Vehicles

      The Districts plans to also initiate a demonstration  program for a refuse transfer
tractor and a landfill  dozer.  The heavy duty on-road program should be underway in
1993. Off-road equipment development is still awaiting firm commitments from equipment
suppliers but should be initiated in 1994.
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At the 17th Annual Landfill Gas Symposium, a follow-up of the previous paper was presented which
describes the experience with the landfill gas clean-up and compression system and the utilization of
compressed landfill gas (CLG) in  various vehicles.  Excerpts from this presentation are presented
below.

From "Processing and Utilization of Landfill Gas as a Clean Alternative Vehicle Fuel" by Steve Maguin,
Ed Wheless, and Monet Wong. Los Angeles County Sanitation Districts, Whittier, California.  17th
Annual Landfill Gas Symposium, March 22-24, 1994, Long Beach, California.
OPERATIONAL PERFORMANCE

The refueling facility was formally accepted from the contractor and placed in service in October 1993.
With the limited number of vehicles running  on CNG, the fuel dispensed through February 1994
totalled less than the equivalent of 2,200 gallons of gasoline.  Although this corresponds to only 2
days of continuous operation, the basic design and technology appears to be successful.

During this  early phase of  operation, the membrane  has consistently delivered a product gas
averaging 97% methane with 96% as the minimum. The compression and processing system was
available to deliver product gas on demand 82% of the time.  This was even better for the dispenser,
with 94% availability due to gas storage and limited facility use.  Although the processing system
would only need to operate less  than half an hour per day to produce the fuel delivered, the gas
compressors have  averaged over 3 hours of run time  per day. The additional run time was needed
to satisfy process  needs which included achieving proper operating parameters during  start-up,
providing the fuel for the heater, and providing purge gas to the first stage compressor and membrane
upon shutdown.  In many ways, this intermittent, short duration operation may be a more stringent
requirement than continuous operation.

The operational problems experienced during  start-up and initial operation have not been related to
landfill gas processing. Instead they could be associated with facility process design and could accrue
with normal pipeline gas refueling systems. This included problems with the dispenser and associated
card reader, the odorant addition system, and the process instrumentation. The compressors have
also experienced several failures, but none attributable to the landfill gas.

The process is presently being reviewed to determine how the operation could  be simplified and
improved. Items under investigation include the use of heat from the compressors to replace the gas
heater, elimination  or simplification of the carbon guard bed, and restricting the purge gas usage.
These  modifications would greatly simplify  the  process and make the system comparable  to the
standard pipeline CNG compression  stations.
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VEHICLE DEMONSTRATION PROGRAM (update)

Summary

In addition to producing a clean vehicle fuel, the Districts' program involves the demonstration of CNG
vehicles,  and  possibly off-road heavy-duty  equipment,  at the  Puente  Hills Landfill  using the
compressed  landfill gas (CLG).  The fuel is also being  provided to a refuse hauler using the landfill
to demonstrate how CLG could further reduce emissions  and dependence on  petroleum products.
The program has  been primarily dependent on the engine manufacturers' ability to produce low
emission, dedicated  CNG engines.   This is  an  emerging  technology with a limited  number  of
equipment suppliers who move very slowly in product development. A summary  of recent experience
with vehicles running on CLG is presented in the table  below.
 TYPE OF VEHICLE  FUEL
                        PERFORMANCE
                     MILES PER GALLON
                        (gasoline/diesel
                      equivalent on CLG)
EMISSIONS
 Passenger Vehicle


 Light Duty Truck
 Medium Duty
 Vehicles (planned)

 Heavy Duty Truck
 (water truck)
 Heavy Duty Truck
 (packer truck)
Other Heavy Duty
Vehicles (including
a tractor)
Either CNG or gasoline
Performed very well on    21 (gasoline)
CLG
CNG at first, later only CLG    Initial operation was poor.   9 (gasoline)
                        OK after modifications.
Planned
Note: The newest types of minivans should meet ULEV standards
CLG
CLG (CNG back up)
Planned
No problems reported     2.4 (diesel)
Initially superior          2.3 (diesel)
performance and power.
Recently slight decrease in
power (under investigation)
No data
                                       Low in NMHC and NO,
                                       (compared to gas).
                                       Meets LEV standards
                                       except for NMHC.
Meets 1994 CARB
standards. No exhaust
after- treatment
necessary.

Meets 1994 CARB
standards. Except for
NO, emissions are
considerably lower than
standards
CARB   =       California Air Resources Board
CLG    =       compressed LFG
LEV    =       Low Emissions Vehicle
ULEV   =       Ultra Low Emissions Vehicle
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THE FUTURE

The long-term practical use of a compressed natural gas produced from landfill gas is dependent on
both the ability of engine manufacturers to produce low-emission dedicated CNG engines and the
economics of producing the fuel. The Districts will continue to work with the SCAQMD and engine
manufacturers to study new engine technologies which can reduce air emissions from the equipment
and vehicles using the landfill and thus improve the air quality in the South Coast Air Basin.

The engine technology is rapidly emerging as demonstrated by Chrysler's dedicated CNG Minivans
introduced this year which are leading the way for light-duty vehicles  with emissions which are less
than one tenth the CARB's ULEV standards.  The existing heavy-duty CNG engines are cleaner than
diesel but additional breakthroughs such as the plasma charge engine scheduled for demonstration
later this year is needed to achieve the very low emissions needed.

The technology for producing a clean fuel from landfill gas has been demonstrated. The economics,
however, will be dependent upon the amount of gas being processed. The processing capacity of the
District's fueling facility represents the minimum economical size. Many of the components such as
the dispenser, storage, and continuous monitors are independent of processing capacity while costs
related to engineering design, compressors, and the membrane are expected to increase by only 50%
if the capacity doubles. If the fleet of vehicles is large enough to justify a larger facility, the price per
gallon equivalent can be expected to drop to approximately half the existing cost of diesel or gasoline.
If diesel or gasoline prices increase on the other hand, even smaller facilities may be attractive.
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 APPENDIX K:  THREE EPA MEMORANDA ON NEW SOURCE REVIEW RELATING TO
                     LANDFILLS AND LANDFILL GAS
  CLASSIFICATION OF EMISSIONS FROM LANDFILLS FOR NEW SOURCE REVIEW
              APPLICABILITY PURPOSES (K-2) (J. Seitz, 10/21/94)
            EMISSIONS FROM LANDFILLS (K-6) (G. Emison, 10/6/87)
POLLUTION CONTROL PROJECTS AND NEW SOURCE REVIEW (NSR) APPLICABILITY
                          (K-8) (J. Seitz, 7/1/94)
                                 K-1

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                   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        RESEARCH TRIANGLE PARK. NC 2771 1
                           October 21, 1994
                                                    OFFICE OF
                                                 AIR QUALITY PLANNING
                                                   AND STANDARDS
MEMORANDUM

SUBJECT:
FROM:
TO:
Classification  of  Emissions  from Landfills for
NSR Applicability  Purposes
John S. Seitz, Director
Office of Air Quality  P
                                       ng and Standa
(MD-10)
Director, Air, Pesticides  and  Toxics
  Management Division, Regions I  and IV
Director, Air and Waste Management Division,
  Region II
Director, Air, Radiation and Toxics Division,
  Region III
Director, Air and Radiation Division,
  Region V
Director, Air, Pesticides  and  Toxics Division,
  Region VI
Director, Air and Toxics Division,
  Regions VII, VIII, IX and X
     The EPA has  recently received several inquiries regarding
the treatment  of  emissions from landfills for purposes of major
NSR applicability.   The specific issue raised is whether the
Agency still considers  landfill gas emissions which are not
collected to be fugitive for NSR applicability purposes.

     The EPA's NSR  regulations define "fugitive emissions" to
mean "those emissions which could not reasonably pass through a
stack, chimney, vent, or other functionally-equivalent opening"
(40 CFR 51.165(a)(1)(x)).   In general,  where a facility is not
subject to national standards requiring collection, the technical
question of whether the emissions at a particular site could
"reasonably pass  through a stack, chimney, vent, or other
functionally-equivalent opening" is a factual determination to be
                                 K-2

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made by the permitting authority, on a case-by-case basis.   In
determining whether emissions could reasonably be collected  (or
if any emissions source could reasonably pass through a  stack,
etc.)/ "reasonableness" should be construed broadly.  The
existence of collection technology in use by other sources in the
source category creates a presumption that collection is
reasonable.  Furthermore, in certain circumstances, the
collection of emissions from a specific pollutant emitting
activity can create a presumption that collection is reasonable
for a similar pollutant-emitting activity, even if that activity
is located within a different source category.

     In 1987, EPA addressed whether landfill gas emissions should
be considered as fugitive.1   The  Agency  explained  that for
landfills constructed or proposed to be constructed with gas
collection systems, the collected landfill gas would not qualify
as fugitive.  Also, the Agency understood at the time that, with
some exceptions, landfills were not constructed with such gas
collection systems.  The EPA explained that "[t]he preamble to
the 1980 NSR regulations characterizes nonfugitive emissions as
x. . . emissions which would ordinarily be collected and
discharged through stacks or other functionally equivalent
openings'" (see 45 FR 52693, Aug. 7,  I960).2   Based  on the
"understanding that landfills are not ordinarily constructed with
gas collection systems," the Agency concluded that "emissions
from existing or proposed landfills without gas collection
systems are to be considered fugitive emissions."  The Agency
also made clear, however, that the applicant's decision on
whether to collect emissions is not the deciding factor.  Rather,
it is the reviewing authority that makes the decision regarding
     1See  memorandum entitled  "Emissions  from Landfills,"  from
Gerald A.  Emison, Director, Office of Air Quality Planning and
Standards, to David P. Howekamp,  Director, Air Management
Division,  Region IX, dated October 6, 1987 (attached).  It is
important to note that the interpretation contained in this
memorandum was only applicable to landfills.


     2In fact,  the  1980  preamble  language  recognized the concern
that sources could avoid NSR by calling emissions fugitives, even
if the source could capture those emissions.   The EPA's
originally-proposed definition of fugitive emissions was changed
in the final 1980 regulations  to "ensure that  sources will not
discharge as fugitive emissions those emissions which would
ordinarily be collected and discharged through  stacks or other
functionally equivalent openings, and will eliminate
disincentives for the construction of ductwork  and stacks  for the
collection of emissions." Id.

                                 K-3

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which  emissions can reasonably be  collected  and  therefore not
considered fugitive.

     The EPA believes its 1987 interpretation of the  1980
preamble may have been misunderstood,  and  in any case that its
factual conclusions at that time are now outdated.  Continued
misunderstanding or application of this outdated view could
discourage those constructing new  landfills  from utilizing
otherwise environmentally- or economically-desirable  gas
collection and mitigation measures in  order  to avoid  major NSR
applicability.

     Specifically with regard to landfill  gas emissions,  gas
collection and mitigation technologies have  evolved significantly
since  1987, and use of these systems has become  much  more common.
Increasingly, landfills are constructed or retrofitted with gas
collection systems for purposes of energy  recovery and in order
to comply with State and Federal regulatory  requirements  designed
to address public health and welfare concerns.   In addition,  EPA
has proposed performance standards for new landfills  under
section lll(b) of the Clean Air Act and has  proposed  guidelines
for existing landfills under section lll(d)  that, when
promulgated, will require gas collection systems for  existing and
new landfills that are above a certain size  and  gas production •
level  (see 56 FR 24468, May 30,  1991).  Under these requirements,
EPA estimates that between 500 and 700 medium and large landfills
will have to collect and control landfill  gas.  The EPA believes
this proposal created a presumption at that  time that  the
proposed gas collection systems, at a  minimum, are reasonable  for
landfills that would be subject to such control under  the
proposal.

     Thus,  EPA believes it is no longer appropriate to conclude
generally that landfill gas'could not  reasonably be collected  at
a proposed landfill project that does not  include a gas
collection system.   The fact that a proposed landfill project
does not include a collection system in its proposed design is
not determinative of whether emissions from a landfill are
fugitive.  To quantify the amount of landfill gas which could
otherwise be collected at a proposed landfill for NSR
applicability purposes,  the air  pollution control authority
should assume the use of a collection system which has been
designed to maximize,  to the greatest extent possible, the
capture of  air pollutants from the landfill.

     In summary,  the use of collection technology by other
landfill sources,  whether or not subject to EPA's proposed
requirements or to  State implementation plan or permit
requirements,  creates a presumption that collection of the
emissions is reasonable at other similar sources.  If  such a
system can  reasonably be designed to  collect the landfill's gas
                                K-4

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emissions, then the emissions are not fugitive and should be
considered in determining whether a major NSR permit is required.

     Today's guidance is applicable to the construction of a new
landfill or the expansion of an existing landfill beyond its
currently-permitted capacity.  To avoid any confusion regarding
the applicability of major NSR to existing landfills, EPA does
not plan to reconsider or recommend that States reconsider the
major NSR status of any existing landfill based on the issues
discussed in this memorandum.  Also, nothing in this guidance
voids or creates an exclusion from any otherwise applicable
requirement under the Clean Air Act and the State implementation
plan, including minor source review.

     The Regional Offices should send this memorandum, including
the attachment, to States within their jurisdiction.  Questions
concerning specific issues and cases should be directed to
the appropriate Regional Office.  Regional Office staff may
contact Mr. David Solomon, Chief, New Source Review Section, at
(919) 541-5375, if they have any questions.

Attachment

cc:  Air Branch Chief, Regions I-X
     NSR Contacts, Regions I-X and Headquarters  •
                              K-5

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                 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
        5               Office of Air Quality Planning and Standards
                      Research Triangle Park, North Carolina 27711
'"V
                               OCT 6   1987

MEMORANDUM

SUBJECT:  Emissions from Landfills

FROM:  /  Gerald A. Emison, Director
          /   era    .  mson,   recor-* — -r-^~- T*-.-
         "FT.. Office of Air Quality Planning and Standards (MD-10)
   TO:       David P. Howekamp, Director
             Air Management Division, Region IX

        This is in response to your September 1, 1987, memorandum requesting
   clarification regarding how landfill emissions should be considered  for the
   purpose of determining nonattainment new source review (NSR)  applicability
   under 40 CFR 51.18.

        As you are aware, a landfill is subject to NSR if its  potential to
   emit, excluding fugitive emissions,  exceeds  the 100 tons  per  year applicable
   major source cutoff for the pollutant for which the area  is nonattainment.
   Fugitive emissions are defined in 40 CFR (j)(l)(ix) as ". . . those  emissions
   which could not reasonably pass through a stack, chimney, vent, or other
   functionally equivalent opening."  Landfill  emissions  that  could reasonably
   be collected and vented are therefore not considered fugitive emissions
   and must be included in calculating  a source's potential to emit.

        For various reasons (e.g., odor and public health concerns, local
   regulatory requirements, economic incentives), many landfills  are
   constructed with gas collection systems.  Collected landfill  gas may be
   flared, vented to the atmosphere, or processed into useful  energy end
   products such as high-Btu gas, steam, or electricity.   In these cases, for
   either an existing or proposed landfill, it  is clear that the  collected
   landfill gas does not qualify as fugitive emissions and must  be included
   in the source's potential  to emit when calculating  NSR applicability.

        The preamble to the 1980 NSR regulations characterizes nonfugitive
   emissions as "... those emissions  which would  ordinarily be  collected and
   discharged through stacks or other functionally  equivalent openings."
   Although there are some exceptions,  it is our understanding that landfills
   are not ordinarily constructed with  gas collection  systems.  Therefore,
   emissions from existing or proposed  landfills without  gas collection
   systems are to be considered fugitive emissions  and are not included in the
   NSR applicability determination.  This does  not  mean that the applicant's
   decision on whether to collect emissions is  the  deciding factor; in fact,
   the reviewing authority makes  the decision on which  emissions  would
   ordinarily be collected and which therefore  are  not  considered fugitive
   emissions.

                                        K-6

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     It should be noted that NSR applicability is pollutant specific.
Therefore, where the landfill gas is flared or otherwise combusted or
processed before release to the atmosphere, it is the pollutant  released
which counts toward NSR applicability.  As an example, landfill  gas is
composed mostly of volatile organic compounds, but when this gas  is burned
in a flare, it is the type and quantity of pollutants in the exhaust gas
(e.g., nitrogen oxides and carbon monoxide) that are  used in the  NSR
applicability determination.

     If you have any questions regarding this matter,  please contact
Gary McCutchen, Chief, New Source Review Section, at  FTS 629-5592.

cc:  Chief, Air Branch
     Regions I-X
                                   K-7

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            '*ff

               >   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
               3        RESEARCH TRIANGLE PARK. NC 27711
                         JUL    I 1994
                                                   OFFICE OF
                                                AIR QUALITY PLANNING
                                                  AND STANDARDS
MEMORANDUM

SUBJECT:  Pollution Control  Projects  and New S/^tc^e Review  (NSR)
          Applicability
               S. Seitz, Directoi
     'fi   Office of Air Quality p££Kning/anld Standards (MD-10)

TO:       Director, Air, Pesticides  and Toxics
            Management Division, Regions I and IV
          Director, Air and Waste Management Division,
            Region II
          Director, Air, Radiation and Toxics Division,
            Region III
          Director, Air and Radiation  Division,
            Region V
          Director, Air, Pesticides  and Toxics Division,
            Region VI
          Director, Air and Toxics Division,
            Regions VII, VIII, IX and  X


     This memorandum and attachment  address issues involving the
Environmental Protection Agency's (EPA's)  NSR rules and guidance
concerning the exclusion from major  NSR of pollution control
projects at existing sources.  The attachment provides a full
discussion of the issues and this policy,  including illustrative
examples.

     For several years, EPA has had  a  policy  of excluding certain
pollution control projects from the  NSR requirements of parts C
and D of title I of the Clean Air Act  (Act) on a case-by-case
basis.  In 1992, EPA adopted an explicit pollution control
project exclusion for electric utility generating units [see :
57 FR 32314 (the "WEPCO rule" or the "WEPCO rulemaking")].  At
the time, EPA indicated that it would,  in  a subsequent
rulemaking, consider adopting a-formal pollution control project
exclusion for other source categories  [see 57 FR 32332].   In the
interim, EPA stated that individual pollution control projects
                              K-8

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 involving source categories other than utilities could continue
 to be  excluded  from NSR by permitting authorities on a case-by-
 case basis [see 57 FR at 32320].  At this time, EPA expects  to
 complete  a rulemaking on a pollution control project exclusion
 for other source categories in early 1996.  This memorandum  and
 attachment provide interim guidance for permitting authorities on
 the approvability of these projects pending EPA's final action on
 a formal  regulatory exclusion.

     The  attachment to this memorandum outlines in greater detail
 the type  of projects that may qualify for a conditional exclusion
 from NSR  as a pollution control project, the safeguards that are
 to be  met,  and  the procedural steps that permitting authorities
 should follow in issuing an exclusion.  Projects that do not meet
 these  safeguards and procedural steps do not qualify for an
 exclusion from  NSR under this policy.  Pollution control projects
 potentially eligible for an exclusion (provided all applicable
 safeguards are  met) include the installation of conventional or
 innovative emissions control equipment and projects undertaken to
 accommodate switching to an inherently less-polluting fuel,  such
 as natural gas.  Under this guidance, States nay also exclude as
 pollution control projects some material and process changes
 (e.g., the switch to a less polluting coating, solvent, or
 refrigerant) and some other types of pollution prevention
 projects  undertaken to reduce emissions of air pollutants subject
 to regulation under the Act.

     The  replacement of an existing emissions unit with a newer
 or different one (albeit more efficient and less polluting)  or
 the reconstruction of an existing emissions unit does not qualify
 as a pollution  control project.  Furthermore, this guidance  only
 applies to  physical or operational changes whose primary function
 is the reduction of air pollutants subject to regulation under -•
 the Act at  existing major sources.  This policy does not apply to
 air pollution controls and emissions associated with a proposed
 new source.  Similarly, the fabrication, manufacture or
 production  of pollution control/prevention equipment and
 inherently  less-polluting fuels or raw materials are not
 pollution control projects under this policy (e.g.,  a physical or
 operational change for the purpose of producing reformulated
 gasoline at a refinery is not a pollution control project).

     It is EPA's experience that many bona fide pollution control
 projects are not subject to major NSR requirements for the simple
 reason that they result in a reduction in annual emissions at the
 source.  In this way,  these pollution control projects are
 outside major NSR coverage in accordance with the general rules
 for determining applicability of NSR to modifications at existing
 sources.   However,  some pollution control projects  could result
 in significant potential or actual increases of some pollutants.
These latter projects  comprise the subcategory of pollution
control projects that  can benefit from this guidance.


                               K-9

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      A pollution control project must be, on balance,
 "environmentally beneficial" to be eligible for an exclusion.
 Further, an environmentally-beneficial pollution control project
„ may be excluded from otherwise applicable major NSR requirements
r only under conditions that ensure that the project will not cause
 brt contribute to a violation of a national ambient air quality
 standard (NAAQS), prevention of significant deterioration (PSD)
 increment, or adversely affect visibility or other air quality
 related value (AQRV).  In order to assure that air quality
 concerns with these projects are adequately addressed, there are
 two substantive and two procedural safeguards which are to be
 followed by permitting authorities reviewing projects proposed
 for exclusion.

      First, the permitting authority must determine that the
 proposed pollution control project,  after consideration of the
 reduction in the targeted pollutant and any collateral effects,
 will be environmentally beneficial.   Second,  nothing in this
 guidance authorizes any pollution control project which wpuld
 cause or contribute to a violation of a NAAQS,  or PSD increment,
 or adversely impact an AQRV in a class I area.   Consequently, ;in
 addition to this "environmentally-beneficial11 standard, the
 permitting authority must ensure that adverse collateral
 environmental impacts from the project are identified, minimized,
 and, where appropriate,  mitigated.   For example,  the source or
 the State must secure offsetting reductions in the case of a
 project which will result in a significant increase in a
 nonattainment pollutant.   Where a significant collateral increase
 in actual emissions is expected to result from a  pollution
 control project,  the permitting authority must also assess
 whether the increase could adversely affect any national ambient
 air quality standard,  PSD increment,  or class I AQRV.

      In addition  to these substantive safeguards,  EPA is
 specifying two procedural safeguards which are  to be followed.
 First,  since the  exclusion under this interim guidance is only
 available on a case-by-^case basis, sources seeking exclusion from
major NSR requirements prior to the  forthcoming EPA ruleraaking on
 a  pollution control project exclusion must, before beginning
construction,  obtain a determination by the permitting authority
that a  proposed project qualifies for an exclusion from major NSR
requirements as a  pollution control  project.  Second,  in
considering this  request,  the permitting authority must afford
the  public  an opportunity  to  review  and comment on the source's
application for this exclusion.   It  is also important  to note
that any project excluded  from major new source review as a
pollution control  project  must still  comply with  all otherwise
applicable  requirements under  the Act and  the State
implementation plan (SIP),  including minor source  permitting.
                               K-10

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      This  guidance document does not supersede existing  Federal
or State regulations  or approved SIP's.  The policies  set out  in
this  memorandum  and attachment are intended as guidance  to  be
applied only prospectively (including those projects currently
under evaluation for  an exclusion) during the interim  period
until EPA  takes  action  to revise its NSR rules, and do not
represent  final  Agency  action.  This policy statement  is not ripe
for judicial review.  Moreover, it is not intended, nor  can it be
relied upon, to  create  any rights enforceable by any party  in
litigation with  the United States.  Agency officials may decide
to follow  the guidance  provided in this memorandum, or to act  at
variance with the guidance, based on an analysis of specific
circumstances.   The EPA also may change this guidance  at any time
without public notice.   The EPA presently intends to address the
matters discussed in  this document in a forthcoming NSR
rulemaking regarding  proposed changes to the program resulting
from  the NSR Reform process and will take comment on these
matters as part  of that rulemaking.

      As noted .above,  a  detailed discussion of the types  of
projects potentially  eligible for an exclusion from major NSR 'as
a pollution control project, as well as the safeguards such
projects must meet to qualify for the exclusion,  is contained  in
the attachment to this  memorandum.  The Regional  Offices should
send  this  memorandum  with the attachment to States within their
jurisdiction.  Questions concerning specific issues and  cases
should  be  directed to the appropriate EPA Regional Office.
Regional Office staff may contact David Solomon,  Chief, New
Source  Review Section,  at (919) 541-5375, if they have any
questions.

Attachment

cc:  Air Branch Chief, Regions I-X
     NSR Reform Subcommittee Members
                               K-11

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                            Attachment

         GUIDANCE ON EXCLUDING POLLUTION CONTROL PROJECTS
                 FROM MAJOR NEW SOURCE REVIEW  (NSR)

                           I.  Purpose

     The Environmental Protection Agency  (EPA) presently expects
to  complete a rulemaking on an exclusion  from major NSR for
pollution control projects by early 1996.  In the interim,
certain types of projects (involving source categories other than
utilities) may qualify on a case-by-case  basis for an exclusion
from major NSR as pollution control projects.  Prior to EPA's
final action on  a regulatory exclusion, this attachment provides
interim guidance for permitting authorities on the types of
projects that may qualify on a case-by-case basis .from major NSR
as  pollution control projects, including  the substantive and
procedural safeguards which apply.

                         II.  Background

     The NSR provisions of part C [prevention of significant
deterioration (PSD)] and part D (nonattainment requirements) of
title I of the Clean Air Act (Act) apply to both the construction
of  major new sources and the modification of existing major
sources.1  The modification provisions of  the NSR programs  in
parts C and D are based on the broad definition of modification
in  section 111(a)(4) of the Act.   That section contemplates a
two-step test for determining whether activities at an existing
major facility constitute a modification subject to new source
requirements.  In the first step,  the reviewing authority
determines whether a physical or operational change will occur.
In  the second step,  the question is whether the physical or
operational change will result in any increase in emissions of
any regulated pollutant.

     The definition  of physical or operational change in
section 111(a)(4) could,  standing alone, encompass the most
mundane activities at an industrial facility (even the repair or
replacement of a single leaky pipe,  or a insignificant change in
the way that pipe is utilized).   However,  EPA has recognized that
Congress did not intend to make every activity at a source
subject to new source requirements under parts C and D.   As a
result, EPA has by regulation limited the reach of the
modification provisions of parts  C and D to only major
modifications.  Under NSR,  a "major modification" is generally a
physical change or change in the  method of operation of a major
etationary source which would result in a significant net
emissions increase in the emissions of any regulated pollutant
     'The  EPA's  NSR regulations for nonattainment areas are  set
forth at 40 CFR 51.165, 52.24 and part 51,  Appendix S.  The PSD
program is set forth in 40 CFR 52.21  and 51.166.

                              K-12

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 [see,  e.g.,  40  CFR  52.21(b)(2) (i)] .   A "net  emissions increase"
 is defined as the increase  in  "actual emissions"  from the
 particular physical or operational  change  together with any other
 contemporaneous increases or decreases in  actual  emissions [see,
 e.g.,  40 CFR 52.21(b)(3)(i)].   In order to trigger major new
 source review,  the  net emissions increase  must  exceed specified
 11 significance"  levels [see, e.g., 40  CFR 52.21(b) (2) (i)  and 40
 CFR 52.21(b)(23)].   The  EPA has also  adopted common-sense
 exclusions from the "physical or operational change"  component of
 the definition  of "major modification."  For example,  EPA's
 regulations  contain exclusions  for routine maintenance,  repair,
 and replacement; for certain increases in  the hours of operation
 or in  the production rate; and  for certain types  of fuel switches
 [see,  e.g.,  40  CFR  52.21(b)(2)(iii)].

     In the  1992 "WEPCO" rulemaking [57  FR 32314],  EPA amended
 its PSD and  nonattainment NSR regulations  as they pertain to
 utilities by adding certain pollution control projects to the
 list of activities  excluded from the  definition of physical or
 operational  changes.  In taking that  action,  EPA  stated it was
 largely formalizing an existing policy under which it  had been
 excluding individual pollution control projects where  it was
 found  that the  project "would be environmentally  beneficial,
 taking into  account ambient air quality" [57  FR at 32320;  see
 also id., n. 15].2

     The EPA has provided exclusions  for pollution control
 projects in  the form of  "no action assurances" prior to
 November 15, 1990 and nonapplicability determinations  based on
 Act changes  as of November 15, 1990 (1990 Amendments).
 Generally, these exclusions addressed clean  coal technology
 projects and fuel switches at electric utilities.

     Because the WEPCO rulemaking was directed at  the  utility
 industry which faced "massive industry-wide undertakings  of
 pollution control projects" to comply with the acid rain
 provisions of the Act [57 FR 32314], EPA limited the types  of
 projects eligible for the exclusion to add-on controls  and  fuel
 switches at utilities.  Thus",  pollution control projects  under
 the WEPCO rule are  defined as:

          any activity or project undertaken at an
          existing  electric utility steam generating
          unit for purposes of reducing emissions  from
          such unit.  Such activities or projects  are
          limited to;
          guidance pertains only to  source categories  other than
electric utilities,  and EPA does not intend for this guidance to
affect the WEPCO rulemaking in any way.


                               K-13

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           (A)   The installation of conventional or
           innovative pollution control technology,
           including but not limited to advanced - flue
           gas  desulfurization,  sorbent injection for
           sulfur dioxide (SO2) and nitrogen oxides (NOJ
           controls and electrostatic precipitators;

           (B)   An activity  or project to accommodate
           switching to a fuel which is less polluting
           than the fuel in  use prior to the activity or
           project ...

 [40 CFR 51.165(a)(1)(xxv)  (emphasis added)].
 The definition also includes  certain clean coal technology
 demonstration  projects.   Id.

     The EPA built two safeguards into the exclusion in the
 rulemaking.  First,  a project that meets the definition of
 pollution  control project will  not qualify for the exclusion
 where the  "reviewing authority determines that (the proposed
 project) renders the unit less'environmentally beneficial ..."
 [see, e.g., 51.l65(a)(1)(v)(C)(8)].  In the WEPCO rule, EPA did
 not provide any specific definition of the environmentally-
 beneficial standard,  although it did indicate that the pollution
 control project provision "provides for a case-by-case assessment
 of the pollution control project's net emissions and overall
 impact on the  environment"  [57  FR 32321].  This provision is
 buttressed by  a second safeguard that directs permitting
 authorities to evaluate  the air quality impacts of pollution
 control projects that could—through collateral emissions
 increases or changes in  utilization patterns—adversely impact
 local air quality [see 57 FR  32322].   This provision generally
 authorizes, as appropriate, a permitting authority to .require
 modelling of emissions increases associated with a pollution
 control project.   Id.  More fundamentally, it explicitly states
 that no pollution control project under any circumstances may
 cause or contribute  to violation of a national ambient air
 quality standard (NAAQS) , PSD increment,  or air quality related
 value (AQRV)  in a  class  I area.  Id.3
     3The  WEPCO rule refers specifically to  "visibility
limitation" rather than "air quality related values."  However,
EPA clearly stated in the preamble to the final rule that
permitting agencies have the authority to "solicit the views of
others in taking any other appropriate remedial steps deemed
necessary to protect class I areas. . ..   The EPA emphasizes that
all environmental impacts, including those on class I areas, can
be considered.  . .." [57 FR 32322].  Further, the statutory
protections in  section 165(d) plainly are intended to protect
against any "adverse impact on the AQRV of such [class I] lands


                               K-14

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     As noted, the WEPCO rulemaking was  expressly limited  to
existing electric utility steam  generating units [see,  e.g.,  40
CFR 51.165(a)(1)(v)(C)(8) and  51.165(a)(1)(xx)].   The EPA  limited
the rulemaking to utilities because of the impending acid  rain
requirements under title IV of the  Act,  EPA's  extensive
experience with new source applicability issues  for electric
utilities, the general similarity of equipment,  and the public
availability of utility operating projections.   The EPA indicated
it would consider adopting a formal NSR  pollution control  project
exclusion for other source categories as part  of a separate NSR
rulemaking.  The rulemaking in question  is now expected to be
finalized by early 1996.  On the other hand, the WEPCO  rulemaking
also noted that EPA's existing policy was,  and would continue to
be, to allow permitting authorities to exclude pollution control
projects in other source categories on a case-by-case basis.

   III.    Case-By-Case Pollution Control Project Determinations

     The following sections describe the type  of  projects  that
may be considered by permitting  authorities for  exclusion  from
major NSR as pollution control projects  and two  safeguards that
permitting authorities are to  use in evaluating  such projects—
the environmentally-beneficial test and  an air quality  impact
assessment.  To a large extent,  these requirements are  drawn from
the WEPCO rulemaking.  However,  because  the WEPCO rule was
designed for a single source category, electric utilities, it
cannot and does not serve as a complete  template  for this
guidance.  Therefore, the following descriptions  expand upon the
WEPCO rule in the scope of qualifying projects and in the
specific elements inherent in  the safeguards.  These changes
reflect the far more complicated task of evaluating pollution
control projects at a wide variety  of sources facing a myriad of
Federal, State, and local clean  air requirements.

     Since the safeguards are  an integral component of the
exclusion, States must have the  authority to impose the
safeguards in approving an exclusion from major NSR under this
policy.  Thus, State or local  permitting authorities in order to
use this policy should provide statements to EPA  describing and
affirming the basis for its authority to impose these safeguards
absent major NSR.  Sources that  obtain exclusions from permitting
authorities that have not provided  this  affirmation of authority
are at risk in seeking to rely on the exclusion issued by the
(including visibility)."  Based on this statutory provision, EPA
believes that the proper focus of any air quality assessment for
a pollution control project should be on visibility and any other
relevant AQRV's for any class I areas that may be affected by the
proposed project.  Permitting authorities should notify Federal
Land Managers where appropriate concerning pollution control
projects which may adversely affect AQRV's in class I areas.

                              K-15

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permitting agency, because EPA may subsequently  determine that
the project does not qualify as a pollution  control project under
this policy.

      A.   Types of Projects Covered

          1.  Add-On Controls and Fuel  Switches

      In  the WEPCO rulemaking,  EPA found that both add-on
emissions control projects and fuel switches to  less-polluting
fuels could be considered to be pollution control projects.   For
the purposes of today's guidance/  EPA  affirms that these  types of
projects are appropriate candidates for a case-by-case exclusion
as  well.  These types of projects include:

         the installation of conventional and advanced flue  gas
         desulfurization and sorbent injection for S02;

         electrostatic precipitators, baghouses, high efficiency
         multiclones,  and scrubbers for particulate or other .
         pollutants;

         flue gas recirculation,  low-NO, burners,  selective non-
         catalytic reduction and selective catalytic reduction for
         NOX; and

         regenerative  thermal oxidizers (RTO), catalytic
         oxidizers, condensers,  thermal incinerators, flares and
         carbon adsorbers for volatile  organic compounds (VOC)
         and toxic air pollutants.

      Projects undertaken to accommodate switching to an
inherently less-polluting fuel  such  as natural gas can also
qualify  for the exclusion.   Any activity that is necessary to
accommodate switching to a inherently  less-polluting fuel is
considered to be part of the pollution control project.  In some
instances,  where the  emissions  unit's  capability would otherwise
be  impaired as a result of the  fuel  switch, this may involve
certain  necessary changes to the pollution generating equipment
(e.g., boiler)  in order to maintain  the normal operating
capability of the unit at the time of  the project.

           2.    Pollution Prevention  Projects

      It  is EPA's policy to promote pollution prevention
approaches and to remove regulatory  barriers to sources seeking
to develop and implement pollution prevention solutions to the
extent allowed under  the Act.   For this reason, permitting
authorities may also  apply this  exclusion to switches to
inherently less-polluting raw materials and processes and certain
                                K-16

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other  types  of  "pollution prevention" projects.4  For instance,
many VOC  users  will  be making switches to water-based or powder-
paint  application  systems as a strategy for meeting reasonably
available control  technology (PACT) or switching to a non-toxic
VOC to comply with maximum achievable control technology (MACT)
requirements.

     Accordingly,  under today's guidance, permitting authorities
may consider excluding raw material substitutions, process
changes and  other  pollution prevention strategies where the
pollution control  aspects of the project are clearly evident and
will result  in  substantial emissions reductions per unit of
output for one  or  more pollutants.  In judging whether a
pollution prevention project can be considered for exclusion as a
pollution control  project, permitting authorities may also
consider  as  a relevant factor whether a project is being
undertaken to bring  a source into compliance with a MACT, RACT,
or other  Act requirement.

     Although EPA  is supportive of pollution control and
prevention projects  and strategies, special care must be taken in
classifying  a project as a pollution control project and in
evaluating a project under a pollution control project exclusion.
Virtually every modernization or upgrade project at an existing
industrial facility  which reduces inputs and lowers unit costs
has the concurrent effect of lowering an emissions rate per unit
of fuel,  raw material or output.  Nevertheless,  it is clear that
these  major  capital  investments in industrial equipment are the
very types of projects that Congress intended to address in the
new source modification provisions [see Wisconsin Electric Power
Co. v.  Reillv.  893 F.2d 901, 907-10 (7th Cir. 1990) (rejecting
contention that utility life extension project was not a physical
or operational  change); Puerto Rican Cement Co.. Inc. v. EPAf 889
F.2d 292,  296-98 (1st Cir. 1989) (NSR applies to modernization
project that decreases emissions per unit of output,  but
increases economic efficiency such that utilization may increase
and result in net  increase in actual emissions) ].   Likewise, the
replacement  of  an  existing emissions unit with a newer or
different one (albeit more efficient and less polluting) or the
     4For purposes of this guidance, pollution prevention means
any activity that through process changes,  product reformulation
or redesign, or substitution of less polluting raw materials,
eliminates or reduces the release of air pollutants and other
pollutants to the environment (including fugitive emissions)
prior to recycling, treatment, or disposal; it does not mean
recycling  (other than certain "in-process recycling" practices) ,
energy recovery, treatment, or disposal [see Pollution Prevention
Act of 1990 section 6602(b) and section 6603 (5) (A)  and (B) ; see
also "EPA Definition of 'Pollution Prevention,'"  memorandum from
F. Henry Habicht II, May 28, 1992].

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 reconstruction of an existing emissions  unit would not qualify as
 a pollution control project.   Adopting a policy  that
 automatically excludes from NSR any project that,  while lowering
 operating costs or improving  performance, coincidentally lowers a
 unit's emissions rate, would  improperly  exclude  almost all
 jnodifications to existing emissions units, including those  that
 ane likely to increase utilization and therefore result in
 overall higher levels of emissions.

      In order to limit this exclusion to the subset of pollution
 prevention projects that will in fact lower annual emissions  at a
 source,  permitting authorities should not exclude as pollution
 control projects any pollution prevention project that can  be
 reasonably expected to result in an increase in  the utilization
 of the affected emissions unit(s).  For  example, p'rojects which
 significantly increase capacity, decrease production costs, or
 improve product marketability can be expected to affect
 utilization patterns.   With these changes,  the environment may or
 may not see a reduction in overall source emissions; it depends
 on the source's operations after the change,  which cannot be
 predicted with any certainty.5  This is not to say  that these
 types of projects are  necessarily subject to major NSR
 requirements,  only that they  should not be excluded as  pollution
 control  projects under this guidance.   The EPA may consider
 different approaches to excluding pollution prevention  projects
 from major NSR requirements in the upcoming NSR rulemaking.
 Under this guidance, however, permitting authorities should
 carefully review proposed pollution prevention projects to
 evaluate whether utilization  of  the source will increase as a
 result of the  project.

      Furthermore,  permitting  authorities should have the
 authority to monitor utilization of an affected emissions unit  or
 source for a reasonable period of time subsequent to the project
 to  verify what effect,  if  any, the project has on utilization.
 In  cases where the project has clearly caused an increase in
 utilization, the permitting authority may need to reevaluate the
 basis  for the  original  exclusion to verify that an exclusion is
 still  appropriate and  to  ensure that all applicable safeguards
 are  being met.
     5This is in marked contrast to the addition of pollution
control equipment which typically does not,  in EPA's experience,
result in any increase in the source's utilization of the
emission unit in question.  In the few instances  where this
presumption is not true, the safeguards discussed in the next
section should provide adequate environmental  protections for
these additions of pollution control  equipment.

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      B.   Safeguards

      The following safeguards  are necessary to assure  that
 projects being considered for  an exclusion qualify  as
 environmentally beneficial pollution control projects  and do not
 iiave air quality impacts which would preclude the exclusion.
 Consequently,  a project that does not meet these safeguards  does
 not qualify for an exclusion under this policy.

      1.   Environmentally-Beneficial Test

      Projects  that meet the definition of a pollution  control
 project  outlined above may nonetheless cause collateral emissions
 increases or have other adverse impacts.  For instance, a large
 VOC incinerator,  while substantially eliminating VOC emissions,
 may generate sizeable NO, emissions  well in excess  of
 significance levels.   To protect against these sorts of problems,
 EPA in the WEPCO rule provided for an assessment of the overall
 environmental  impact  of a project and the specific impact, if
 any,  on  air quality.   The EPA  believes that this safeguard is
 appropriate in this policy as  well.

      Unless information regarding a specific case indicates
 otherwise,  the types  of pollution control projects listed in
 III.  A.  1.  above can  be presumed, by their nature,  to  be
 environmentally beneficial.  This presumption arises from EPA's
 experience that historically these are the .very types  of
 pollution controls applied to  new and modified emissions units.
 The presumption does  not apply, however, where there is reason to
 believe  that 1)  the controls will not be designed,  operated or
 maintained in  a manner consistent with standard and reasonable
 practices;  or  2)  collateral emissions increases have not been
 adequately addressed  as discussed below.

      In  making a  determination as to whether a project is
 environmentally beneficial, the permitting authority must
 consider the types and quantity of air pollutants emitted before
 and after the  project,  as well as other relevant environmental
 factors.    While  because of the case-by-case nature of projects
 it  is not possible to list all factors which should be considered
 in  any particular case,  several concerns can be noted.

      First,  pollution control projects which result in an
 increase in non-targeted pollutants  should be reviewed to
 determine that the collateral  increase has been minimized and
 will  not result in environmental harm.   Minimization here does
 not mean that  the permitting agency  should conduct a BACT-type
 review or necessarily prescribe add-on control equipment to
 treat the collateral  increase.   Rather,  minimization means that,
within the  physical configuration and operational standards
usually  associated with  such a control device or strategy, the
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 source  has taken  reasonable measures  to keep any  collateral
 increase  to  a  minimum.   For instance,  the permitting  authority
 could require  that a  low-NOx burner project be subject to
 temperature  and other appropriate combustion standards  so that
 carbon  monoxide  (CO)  emissions  are kept to a minimum, but would
^not  review the project  for a CO catalyst or other add-on  type
 options.  In addition,  a State's RACT or MACT rule may  have
 explicitly considered measures  for minimizing a collateral
 increase  for a class  or category of pollution control projects
 and  requires a standard of best practices to minimize such
 collateral increases.   In such  cases,  the need to minimize
 collateral increase from the covered  class or category  of
 pollution control projects can  be presumed to have been
 adequately addressed  in the rule.

     In addition,  a project which would result in an unacceptable
 increased risk due to the release of  air toxics should  not be
 considered environmentally beneficial.   It is EPA's experience,
 however,  that  most projects undertaken to reduce  emissions,
 especially add-on controls and  fuel switches, result in
 concurrent reductions in air toxics.   The EPA expects that many
 pollution control projects seeking an  exclusion under this
 guidance  will  be  for  the purpose  of complying with MACT
 requirements for  reductions in  air toxics.   Consequently,  unless
 there is  reason to believe otherwise,  permitting  agencies  may
 presume that such projects by their nature will result  in  reduced
 risks from air toxics.

     2.   Additional Air Quality Impacts Assessments

     (a)  General

     Nothing in the Act or EPA's  implementing regulations  would
 allow a permitting authority to approve a pollution control
 project resulting  in  an emissions  increase that would cause or
 contribute to  a violation of a NAAQS or PSD increment, or
 adversely impact visibility or other AQRV in a class I area [see,
 e.g., Act sections 110(a)(2)(C),  165,  169A(b), 173].
Accordingly,  this guidance is not  intended to allow any project
to violate any of these air quality standards.

     As discussed above, it is possible that a pollution control
project—either through an increase in an emissions rate of a
collateral pollutant or through a change in utilization—will
cause an  increase in actual emissions, which in turn could cause
or. contribute to a violation of a NAAQS or increment or
adversely impact AQRV's.  For this reason, in the WEPCO rule the
EPA required sources to address whenever 1) the proposed change
would result in a significant net increase in actual emissions of
any criteria pollutant over levels used for that source in the
most recent air quality impact analysis; and 2)  the permitting
                              K-20

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 authority has reason to believe that such an increase would cause
 or contribute to a violation of a NAAQS,  increment or visibility
 limitation.   If an air quality impact analysis indicates  that  the
 increase in emissions will cause or contribute to a violation  of
 any ambient standard, PSD increment,  or AQRV,  the pollution
.control exclusion does not apply.
  *
      The EPA believes that this safeguard needs to be applied
 here as well.  Thus,  where a pollution control project will
 result in a significant increase in emissions  and that increased
 level has not been previously analyzed for its air quality  impact
 and raises the possibility of a NAAQS,  increment,  or AQRV
 violation,  the permitting authority is to require the source to
 provide an air quality analysis sufficient to  demonstrate the
 impact of the project.   The EPA will  not  necessarily require that
 the increase be modeled,  but the source must provide sufficient
 data to satisfy the permitting authority  that  the new levels of
 emissions will not cause a NAAQS or increment  violation and will
 not adversely impact the AQRV's of nearby potentially affected
 class i areas.

      In the case of nonattainment areas,  the State or the source
 must provide offsetting emissions reductions for  any significant
 increase in a nonattainment pollutant from the pollution control
 project.   In other words,  if a significant collateral increase of
 a  nonattainment pollutant resulting from  a pollution control
 project is  not offset on at least a one-to-one ratio then the
 pollution control project would not qualify as environmentally
 beneficial.6  However, rather than having to apply offsets on a
 case-by-case basis,  States may consider adopting  (as part of
 their attainment plans)  specific control  measures  or strategies
 for the purpose of generating offsets to  mitigate  the projected
 collateral  emissions  increases from a class or category of
 pollution control projects.

      (b)   Determination of Increase in Emissions

      The question of  whether a proposed project will result in an
 emissions increase over pre-modification  levels of actual
 emissions is both complicated and contentious.  It is a question
 that has been debated by the New Source Review Reform
 Subcommittee of the Clean Air Act Advisory Committee and is :
 expected to  be  revisited  by EPA in the  same upcoming rulemaking
 that will consider adopting a pollution control project
 exclusion.   In  the interim,  EPA is adopting a  simplified approach
     6Regardless of the severity of the classification of  the
nonattainment area, a  one-to-one offset ratio will be considered
sufficient under this  policy to mitigate a collateral increase
from a pollution control project.  States may, however, require
offset ratios that are greater than one-to-one.

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 to determining whether a pollution control project will result in
 increased  emissions.

     The approach in this policy is premised on the fact that EPA
 does not expect the vast majority of these pollution control
 projects to change established utilization patterns at the
 source.  As discussed in the previous section, it is EPA's
 experience that add-on controls do not impact utilization, and
 pollution  prevention projects that could increase utilization may
 not be excluded under this guidance.  Therefore, in most cases it
 will be very easy to calculate the emissions after the change:
 the product of the new emissions rate times the existing
 utilization rate.  In the case of a pollution control project
 that collaterally increases a non-targeted pollutant, the actual
 increase (calculated using the new emissions rate "and current
 utilization pattern) would need to be analyzed to determine its
 air quality impact.

     The permitting authority may presume that projects meeting
 the definition outlined in section III(A)(1)  will not change
 utilization patterns.  However, the permitting authority is to
 reject this presumption where there is reason to believe that the
 project will result in debottlenecking,  loadshifting to take
 advantage  of the control equipment,  or other meaningful increase
 in the use of the unit above current levels.    Where the project
 will increase utilization and emissions,  the associated emissions
 Increases  are calculated based on the post-modification potential
 to emit of the unit considering the application of the proposed
 controls;  In such cases the permitting agency should consider
 the projected increase in emissions as collateral to the project
 and determine whether,  notwithstanding the emissions increases,
 the project is still environmentally beneficial and meets all
 applicable safeguards.                                ^          ,

     In certain limited circumstances,  a permitting agency may
 take action to impose federally-enforceable limits on the
magnitude  of a projected collateral emissions increase to ensure
 that all safeguards are met.   For example,  where the data used to
 assess a projected collateral emissions  increase is questionable
 and there  is reason to believe that emissions in excess of the
projected  increase would violate an applicable air quality
 standard or significantly exceed the quantity of offsets
provided, restrictions on the magnitude  of the collateral
 increase may be necessary to ensure compliance with the
applicable safeguards.

                   IV.  Procedural Safeguards

     Because EPA has not yet promulgated  regulations governing a
generally applicable pollution control project exclusion from
major NSR  (other than for electric  utilities),  permitting
authorities must consider and approve requests for an exclusion

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on a case-by-case basis, and the exclusion is not self-executing.
Instead, sources must receive case-by-case approval from the
permitting authority pursuant to a minor NSR permitting process,
State nonapplicability determination or similar process.
[Nothing in this guidance voids or creates an exclusion from any
applicable minor source preconstruction review requirement in any
SIP that has been approved pursuant to section 110(a) (2) (C) and
40 CFR 51.160-164.]  This process should also provide that the
application for the exclusion and the permitting agency's
proposed decision thereon be subject to public notice and the
opportunity for public and EPA written comment.  In those limited
cases where the applicable SIP already exempts a class or
category of pollution controls project from the minor source
permitting public notice and comment requirementst and where no
collateral increases are expected (e.g., the installation of a
baghouse) and all otherwise applicable environmental safeguards
are complied with, public notice and comment need not be provided
for such projects.  However, even in such circumstances, the
permitting agency should provide advance notice to EPA when it
applies this policy to provide an exclusion.   For standard-wide
applications to groups of sources (e.g., RACT or MACT),  the
notice may be provided to EPA at the time the permitting
authority intends to issue a pollution control exclusion for the
class or category of sources and thereafter notice need not be
given to EPA on an individual basis for sources within the
noticed group.

                 V.  Emission Reduction Credits

     In general, certain pollution control projects which have
been approved for an exclusion from major NSR may result in
emission reductions which can serve as NSR offsets or netting
credits.  All or part of the emission reductions equal to the
difference between the pre-modification actual and post-
modification potential emissions for the decreased pollutant may
serve as credits provided that 1)  the project will not result in
a significant collateral increase in actual emissions of any
criteria pollutant,  2)  the project is still considered
environmentally beneficial,  and 3)  all otherwise applicable
criteria for the crediting of such reductions are met (e.g.,
quantifiable,  surplus,  permanent,  and enforceable).   Where an
excluded pollution control project results in a significant :
collateral increase of a criteria pollutant,  emissions reduction
credits from the pollution control project for the controlled
pollutant may still be granted provided,  in addition to  2)  and 3)
above,  the actual collateral increase is reduced below the
applicable significance level,  either through contemporaneous
reductions at the source or external offsets.   However,  neither
the exclusion from major NSR nor any credit (full or partial)  for
emission reductions should be granted by the  permitting  authority
where the type or amount of the emissions increase which would
result from the use of  such credits  would lessen the

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 environmental benefit associated with  the  pollution control
 project to the point where the  project would  not have initially
 qualified for an exclusion.

                    IV.  illustrative Examples

      The following examples  illustrate some of  the guiding
 principles and safeguards discussed  above  in  reviewing proposed
 pollution control projects for  an exclusion from major NSR.

                            Example 1

      PROJECT DESCRIPTION:  A chemical  manufacturing facility in
 an attainment area for all pollutants  is proposing to install a
. RTO to reduce VOC emissions  (including emissions of some
 hazardous pollutants)  at the plant by  about 3000 tons per year
 (tpy).  The emissions reductions from  the  RTO are currently
 voluntary,  but may be necessary in the future for title III MACT
 compliance.  Although the RTO has been designed to minimize NOX
 emissions,  it will produce 200  tpy of  new  NO, emissions due to
 the unique composition of the emissions stream.   There is no •
 information about the project to rebut a presumption that the
 project will not change utilization  of the source.   Aside from
 the NOX increase there are no other environmental impacts known
 to be associated with the project.

      EVALUATION:   As  a qualifying add-on control device,  the
 project may be considered a  pollution  control project and may be
 considered for an exclusion.  The permitting agency should:
 1)  verify that the NOX increase  has been  minimized to the extent
 practicable,  2)  confirm (through modeling  or other appropriate
 means)  that the actual significant increase in  NOX emissions does
 not violate the applicable NAAQS,7 PSD  increment, or adversely
 impact any Class I area AQRV, and 3) apply all  otherwise
 applicable SIP and minor source  permitting requirements,
 including opportunity for public notice and comment.

                             Example  2

     PROJECT DESCRIPTION:   A source proposes to replace an
 existing coal-fired boiler with  a gas-fired turbine as part of a
 cogeneration project.  The new turbine is  an exact replacement
 for the  energy needs  supplied by the existing boiler and will
 emit less of each pollutant  on an hourly basis  than the boiler
 did.
     7If the source were  located in an area  in which
 nonattainment NSR applied to NOX emissions  increases,  200
 tons of NOX offset credits would be required for the project
 to  be  eligible for an exclusion.

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     EVALUATION:  The replacement of an existing emissions  unit
with a new unit (albeit more efficient and less polluting)  does
not qualify for an exclusion as a pollution control project.   The
company can, however, use. any otherwise applicable netting
credits from the removal of the existing boiler to seek to  net
the new unit out of major NSR.

                            Example 3

     PROJECT DESCRIPTION:  A source plans to physically renovate
and upgrade an existing process line by making certain changes to
the existing process, including extensive modifications to
emissions units.  Following the changes,  the source will expand
production and manufacture and market a new product line.  The
project will cause an increase in the economic efficiency of the
line.  The renovated line will also be less polluting on a per-
product basis than the original configuration.

     EVALUATION:  The change is not eligible for an exclusion  as
a pollution control project.   On balance,  the project does not
have clearly evident pollution control aspects,  and the resultant
decrease in the per-prbduct emissions rate (or factor) is
incidental to the  project.   The project is a physical change or
change in the method of operation that will increase efficiency
and productivity.

                            Example 4

     PROJECT DESCRIPTION:  In response to the phaseout of
chlorofluorocarbons (CFC) under title VI  of the  Act,  a major
source is proposing to substitute a less  ozone-depleting
substance (e.g., HCFC-141b)  for one it currently uses that has a
greater ozone depleting potential (e.g.,  CFC-11) .   A larger
amount of the less-ozone depleting substance will have to be
used.  No other changes are proposed.

     EVALUATION:  The project may be considered  a pollution
control project and may be considered for an exclusion.   The
permitting agency  should verify that 1) actual annual emissions
of HCFC-141b after the proposed switch will cause less
stratospheric ozone depletion than current annual emissions of
CFC-ll; 2)  the proposed switch will not change utilization
patterns or increase emissions of any other pollutant which would
impact a NAAQS,  PSD increment,  or AQRV and will  not cause any
cross-media harm,  including any unacceptable increased risk
associated with toxic air pollutants;  and 3)  apply all otherwise
applicable SIP and minor source permitting requirements,
including opportunity for public notice and comment.
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                             Example 5

      PROJECT DESCRIPTION:   An existing landfill  proposes  to
 install either flares or energy recovery equipment [i.e.,
 turbines or internal combustion (1C)  engines].   The reductions
 -from the project are estimated at over 1000  tpy  of VOC and  are
 currently not necessary to meet Act requirements,  but  may be
 necessary some time in the future.   In case  A the  project is the
 replacement of an existing flare or energy system  and  no  increase
 in  NO, emissions will occur.  In case B, the equipment is a first
 time installation and will result in a 100 tpy increase in  NOX.
 In  case C,  the equipment is an addition to existing equipment
 which will accommodate additional landfill gas (resulting from
 increased gas generation and/or capture consistent with the
 current permitted limits for growth at the landfill) and  will
 result  in a 50 tpy increase in NOX.

      EVALUATION:   Projects A,  B,  and C may be considered
 pollution control projects and may  be considered for an
 exclusion;  however,  in cases B and  C,  if the landfill  is  located
 in  an area required to satisfy nonattainment NSR for NOX
 emissions,  the source would be required to obtain  NOX offsets  at
 a ratio of at least 1:1 for the project to be considered  for an
 exclusion.   [NOTE:   VOC-NOX netting and trading for NSR purposes
 may be  discussed  in the upcoming NSR  rulemaking,  but it is  beyond
 the scope of this guidance.]   Although neither turbines or  1C
 engines  are listed in section  III.A.I  as  addron control devices
 and would normally not be  considered  pollution control projects,
 in  this  specific  application they serve the  same function as a
 flare,  namely to  reduce VOC emissions  at  the landfill with  the
 added incidental  benefit of producing  useful energy in the
 process.8
     The permitting  agency should:  1) verify that the NOX
increase has been minimized to the extent practicable; 2) confirm
(through modeling or other appropriate means) that the actual
significant increase in NOX emissions  will  not  violate the
     8The production of energy here is incidental  to the project
and is not a factor in qualifying the project for an exclusion as
a pollution control project.  In addition, any supplemental or
co-firing of non-landfill gas fuels (e.g., natural gas, oil)
would disqualify the project from being considered a pollution
control project.  The fuels would be used to maximize any
economic benefit from the project and not for the purpose of
pollution control at the landfill.  However, the use of an
alternative fuel solely as a backup fuel to be used only during
brief and infrequent start-up or emergency situations would not
necessarily disqualify an energy recovery project from being
considered a pollution control project.


                               K-26

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applicable NAAQS,  PSD increment,  or adversely impact any AQRV;
and 3)  apply all otherwise applicable SIP and minor source and,
as noted above,  in cases B and C ensures that NOX  offsets  are
provided in an area in which nonattainment review applies to NO
emissions increases,  permitting requirements, including
opportunity for public notice and comment.
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APPENDIX L:  ALTERNATIVE ENERGY & REGULATORY POLICY:  TILL DEATH DO WE PART (Presentation)
                                   Frank P. Wong
                                   Pacific Energy
                           6055 East Washington  Boulevard
                             Commerce, California 90040
                                        L-1

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       ALTERNATIVE ENERGY & REGULATORY POLICY:
                      TILL DEATH Do WE PART
                                FRANK P. WONG
                                PACIFIC ENERGY
                         6055 EAST WASHINGTON BLVD.
                             COMMERCE, CA 90040
                                MARCH 18,1992
 ABSTRACT

       This paper provides a non-technical and top-sided  discussion of the  historic
 relationship between the alternative  energy industry in general and  Pacific Energy's
 landfill gas recovery business experience in particular with regulatory policies effecting
 the same.  Included is a discussion of the evolution from early encouragement of the
 industry to more recent ambivalence toward the relationship.  Industry has no option but
 to adapt to the realities of today's environment.  Regulatory policy makers, on the other
 hand, must learn to recognize the potentially chilling long-term impact their decisions
 have on business.  Both parties  can  optimize  their  respective positions to the  public's
 benefit by working together to draft practical  and meaningful regulations that  address
 legitimate public concerns.

 INTRODUCTION

       Pacific Energy (PEn) is a major developer of alternative energy projects in the
 under 50 megawatt (MW) size range.  It began its history as a developer and operator of
 district heating and cooling plants in the L.A.-Orange  County area  in 1963.  PEn's
 diversification into alternative energy development began in 1980 directly in response to
 the Public  Utilities Regulatory Policy Act  (PURPA) of 1978.  To-date  it has been
 involved in the  development  of twenty-five  alternative energy  projects  designed to
 produce over 170 MW of electric  power.

       Because of the legislated origin of the industry, there has always been a symbiotic
 relationship between public policy and the alternative  energy  industry. Public policy
 makers have expected and received much from  the industry.  However, over the past
 dozen years, PEn has been both  witness and participant in dramatic changes involving
public regulatory policy effecting  the industry.

      For example, growing public awareness and environmental concerns surrounding
landfills, coupled with changes in economic incentives have changed the  character of
landfill gas recovery. This has required companies  like  PEn to adapt to such  changes
                                       L-2

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  despite the fact  not a  single dollar in added  cost can be past through  to the utility
  purchasing the generated electricity.

         PEn believes there continues to be great opportunity  for the alternative energy
  industiy, in particular landfill gas recover)', to complement public regulatory policy.  The
  key to optimizing  private industry participation in  the development of  practical rule
  making is open communication and flexible attitudes on all sides.

  DISCUSSION

  Historical Perspective

        They say "opposites attract and the best marriages are  those in which the parties
  complement each other."  They also say, "can't live with 'em...can't live  without 'em."
  Those two phrases  seem to sum up the often love-hate relationship that exists between
  regulatory  policy  and  private industry in general  and is equally applicable  to  the
  alternative  energy industry.

        .In  reflecting upon the historic relationship between regulatory policy  and the
 alternative  energy industry,  it is  significant to remember that  the  alternative  energy
 industry owes  its existence to regulatory policy. It was Congress  in 1978 that passed the
 Public Utilities Regulatory Policy Act, commonly referred to as PURPA, that defined the
 alternative  energy industry.   It was  the  Supreme  Court that upheld PURPA  against
 vigorous challenges by  utilities, which opened the door for qualified facilities  into the
 previously  exclusive utilities-only electric generation club.  It was  the public utilities
 commissions and other  state  support that helped level the  playing field  by penalizing
 some utilities for obstructing alternative energy development and pioneering such things
 as fmancable standard offer contracts.  It was Congress again  that helped the alternative
 energy industry afford the price of admission by providing  tax incentives  that provided
 the  incremental difference to encourage capital investment in general and alternative
 energy development in particular.

        During this phase of the relationship, which can be  referred to as  the Courtship
 Phase,  regulatory policy makers, of course, had compelling  reasons for  such largess.
 OPEC  had  taken over from the Texas Railroad Commission  as the dominate power in
 setting world oil supply  and hence prices; constituents were waiting in gasoline  lines —
 for a second time within the decade; oil prices had increased from S6-8 per barrel to S35
 per  barrel  in the  span of a decade with consensus forecasts of  continued  real price
 escalation;  many utilities were economically and philosophically committed to building
 huge central power  stations requiring 10 or more  years to plan and  construct  to meet
 future  capacity  requirements, and  embroiled in  a  nuclear  construction  program
 characterized by ever-escalating cost overruns and little public support.

       Encouraged by these tax and regulatory incentives, private industry responded
with a passion.  The result has been a permanent change in the  character of the power
market.   Demand  for  energy has  not  decreased  but  the  diversity  of supply  has
                                         L-3

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  dramatically increased.  California, in fact, has reduced its utility use of oil since 1976 by
  90% (IEP, 1991).  OPEC, white still a factor, no longer controls world oil prices; and but
  for new taxes, the price of gasoline is less today than it  was a few years ago.  Privately
  developed "qualified facilities" make new  generating capacity available to utilities in
  substantially less time and in more flexible increments than the best nuclear power plant
  and rate  payers take no development  risk.   Recently,  for example, Boston Edison
  requested bids for 132 MW of new capacity.  In response, it received 40 bids for 3000
  MTW of capacity (Independent Power Report, February 28,  1992).

        All-in-all, an apparent marriage  made in heaven.   But unlike "Beauty and the
  Beast," this story doesn't just end. As in real life, the wedding is just the beginning. As
  the parties learn to live with each other,  each starts the relationship intending to support
  the other  in  a way that allows both to actualize their  own respective needs  and live
  happily ever after.  However, life doesn't often follow according to plan.

  Pacific Energy

        PEn is one of the many firms that entered into the alternative  energy  business
 with an entrepreneurial  attitude in the late  1970's and early 1980's.  We have enough
 arrows in our corporate back to believe we qualify as one of the pioneers in this industry.

      .  PEn was  formally established in  1982 after two years of development under the
 auspices of its predecessor company, Central Plants,  Inc., to pursue its parent company's
 (Pacific Enterprises,  S6.6 billion,  NYSE) interest in the development and operation of
 alternative energy projects, including projects that produce electric power using resources
 such as landfill gas, wastewood, geothermal hot water, and hydropower.  To-date, PEn
 has been involved in the development  of  25  alternative  energy projects designed to
 produce over 170 megawatts of electric power.  Within the last  two years, PEn has
 completed one new hydropower project, two new geothermal projects,  and two landfill
 gas project expansions.

 PEn Landfill Development

       PEn, for one,  believes the relationship between regulatory policy and alternative
 energy has worked well  for the public interest  PEn's landfill gas recovery projects, in
 particular, have successfully provided many  of the benefits envisioned by the supporters
 of alternative energy plus many uncounted public benefits that go beyond PURPA.

       While  landfill  gas resources are individually small,  collectively  they can be
 significant.  PEn, as a single company, has developed twelve electric generating facilities
 utilizing landfill gas from seventeen different landfills. Four of these  projects have been
 shut down for economic reasons and the eight facilities operating today represent over 30
 MW of landfill gas fueled generating resources.  All but one of these projects are located
 in California with one located in Maryland  The benefits of this modest  development
alone include:

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 Conservation of nation's  fossil fuel resources.   PEn's 30  MW's of landfill gas
 recovery is enough  to  meet the demand  of  roughly 30,000  homes with  an
 otherwise wasted and unwanted resource.

 Reduced dependence on  imported  oil.  The  30  MW developed by  PEn is
 equivalent to over 500,000 barrels of imported oil per year which is equivalent to
 avoiding 10 million barrels of imported oil over (he forecasted 20 year project
 life.

 Reduced balance of trade deficit.  At  an average  price of $20  per barrel, this
 represents a savings of S10 million per year.

 Offset higher polluting utility generation. Alternative energy typically offsets the
 utilities' older, least efficient and most polluting central power stations (California
 Energy Markets, January 3, 1992). Pacific  Gas &  Electric's incremental energy
 rate in the early 1980's was over 16,000 BTU per kwh.   Today, it is less than
 10,000 BTU per kwh because of low demand from  its older, least efficient fossil
 fuel plants.

 Mitigation of greenhouse effect.  An independent  study concluded that landfill
 gas power  plants,'  when  comparing  the net environmental impact  with  other
 sources of energy (oil,  coal, natural gas, cogeneration, wastewood, geothermal,
 solar,  and  wind),  actually help  to  reduce the overall  greenhouse  effect  by
 converting the methane  gas produced in landfills to  carbon  dioxide (Gleick,  et al,
 1989).  Methane is a 25 times more potent  greenhouse gas compared to carbon
 dioxide.

 Mitigation of landfill gas migration._ernissions  and  odors.  Collection  of landfill
 gas for power generation reduces the likelihood of underground lateral migration
 that can create a safety hazard; and reduce surface emissions that can create odor
 nuisances, health concerns and deterioration of air  quality.  PEn's eight projects
 can collect and safely combust approximately 20 million standard cubic feet of
 landfill gas per day.

 Substantial cost  savings to public entities owning landfill.   All but one of PEn's
 landfill gas  recover}'  projects are  on publicly owned landfills.  PEn's operation
 can often eliminate  or at least substantially reduce the landfill owner's need for a
 landfill gas migration control and flare system. The cost for a collection and flare
 system is usually on the order  of several hundred thousand to over a million
 dollars per landfill, plus ongoing expenses to operate and maintain it and  meet
 applicable health  and safety regulations.

Royalty payments to public entities.  On average, PEn's projects are in the sixth
year of operation under  anticipated twenty  year project lives.  As of the end of
last year,  PEn has paid out S13 million in royalty payments, mostly to public
entities.

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     •   Higher .property basis.   Privateiy developed  landfill gas recovery projects are
         capital intensive and typically built  on otherwise undevelopable acreage.   PEn's
         eight landfill projects pay over S350,000 per year in property taxes in California
         and demand little by way of public services.

     •   Purchase of goods and services.  In  1991, PEn purchased over  S4  million in
         outside goods and services to support its landfill gas recovery operations plus had
         a direct payroll of over S3 million.

         In   short,  PEn's  landfill  gas projects  have  provided  an  economic   and.
  environmental benefit to the local community as well  as the nation.  These projects have
.  proven the feasibility of landfill  gas recovery that can be replicated across  the United
  States with the proper economic incentives. Yet, of the estimated 6500 plus  landfills in
  the U.S.,  less than 200  have energy recovery systems  (Berenyi  and  Gould,  1991)
  primarily as a result of lower  energy prices, reduced  tax incentives,  and increasing
  environmental liability.

         Citing PEn's landfill gas recovery development history as an example,  it should
  appear obvious that there is much to gain on both sides through cooperative  efforts.  In
  general, the alternative energy  industry  has  largely provided what the public policy
  makers during the times of the Middle East oil crisis asked of it.  Billions of dollars have
  been invested and billions more will be needed to meet growing energy demands.  It has
  been shown development  can be done in an environmentally safe manner that can not
  only shield  the public from economic risk but also provide direct and indirect economic
  and social benefits as well.

        Today, however, the regulatory climate is much different and I am reminded of
 the suggestions Cogsworth gives  to the Beast to court Beauty early in the movie when
 recommending the "usual  gifts: candies, flowers, promises you don't  intend to keep..."
 As implied in the last suggestion, there comes a time when each party must determine its
 commitment to the relationship.  With the demand and price of oil at least temporarily in
 control; tax incentives a thing of the past; and public utilities, with the blessing of PUC's,
 taking   aggressive positions to the detriment of alternative  energy, some might say the
 honeymoon is over.

        Add to this list the fact that environmental regulations are expanding  in scope at
 an ever increasing rate and their related compliance costs are escalating at an accelerating
 pace well beyond both inflation and original financial forecasts.  In California  alone,
 there was forty-eight different pieces of state legislation effecting solid waste which were
 enacted last year, or almost one per week (SWANA,  1992).  Typically,  the  air districts
 want it  regulated  out of the atmosphere, the water pollution agencies want it  regulated
 out of liquid disposal, and the solid waste agencies don't want it either.  There has been
 little, if any, coordination of priorities nor credit given to net overall environmental, let
 alone environmental and economic, benefits.  Not surprisingly,  there are many  in the
 alternative  energy industry that  feel  regulatory policy makers have abandoned this

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 relationship and arc reluctant to pursue this beneficial energy resource because of the
 perceived regulatory risks.

 Dealing With Changes

        In defense of such regulator)' policy, I remind others in my industry that it is the
 same public policy concern for the greater good that created PURPA over the objections
 of almost every major utility in the country.  This same concern for the greater good is
 also mandating the current changes. Like it or not, regulations are going to be developed
 and  implemented with or without the  help of private industry.  The goal of industry
 should therefore he not  to  thwart regulations  but to provide the necessary technical _
 expertise, information and insight required to create practical and meaningful regulations.

        PEn's approach to dealing  with regulatory uncertainty has evolved over the past
 several years.  After starting up all twelve of our landfill projects  in  a period between
 1984 and 1986, we  spent the  first few years internally  focused and  working  through
 startup problems.  This is the period  I  referred to earlier as  having  to  remove a few
 arrows from our corporate back.

        During this post honeymoon transition period,  we have had over 100% turnover
 in some departments, shut down  four landfill  gas recovery  projects, and restructured
 several partnerships involved in the ownership of the projects.  We have cut expenses as
 well as improved operations  by internalizing more of our maintenance versus relying on
 outside contractors.   We  have  worked closely with landfill owners and operators on a
 give-and-take basis addressing their concerns and balancing them  with our own needs for
 financial integrity.

       Partly as a result of this experience, we  have developed a great appreciation for
 maintaining an open, flexible, and  practical approach to problem solving.  And while the
 current and ongoing evolution in regulatory policies is no less disconcerting to PEn than
 to any other company, we have concluded the obvious, that the best way to deal with the
 inevitable changes is to become involved in the development process. A well thought out
 regulation that takes into account  the practical  experience of industry experts is vastly
 superior to poorly drafted text book regulations that develop in a vacuum of data.

       Therefore, recognizing landfill  gas  management is a relatively narrow field of
 expertise that represents a major public concern, PEn has begun a program to actively
 work with regulatory agencies in its field to avail them of PEn's experience.  This has
 included providing specific comments to proposed landfill gas regulations, acting as site
 host, for  a  U.S.  Environmental  Protection  Agency  (EPA)  landfill  gas  fuel  cell
 demonstration  program,  providing original  research, active participation in various
 industry organization, and simply meeting with  various regulatory agencies to ask them
 questions on current and future priorities and providing them with relevant information
 as  appropriate.   Also,   because  we  have  been  dissatisfied  with  the  landfill  gas
'management techniques in common use, we developed  new  landfill gas management
tools which we propose to share with others in the landfill  gas industry.

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        Among the landfill gas management techniques PEn has promoted are:

     •   Standardization of operating procedures.

     •   Better training of operating and regulatory personnel in understanding landfill gas
        dynamics.

     •   Use of higher quality data in gas management decision making.

     •   Integrated systems approach to landfill gas management.

     •   Development of objective  regulations that do not penalize  landfill owners that
        demonstrate a good faith compliance effort.

 Public-Private Partnership

        Public policy makers, on the other hand, must recognize there  must  be mutual
 benefit for a relationship to prosper.  Much has been said about Japanese  management
 techniques and  how U.S. companies can  leam from them.   Among  the  enviable
 characteristics that seem to distinguish Japan's long term business  strategy approach is
 the  partnership between government and business.  The reassuring aspect of this joint
 goals  setting approach for business is that it eliminates surprises  from its  most vital
 partner.

        Regulatory policy  makers  must recognize that alternative  energy projects  are
 typically   captive  producers;  meaning  unlike  most businesses,  once  a  project  is
 constructed, it does not have the freedom to change its customer nor vary its prices.  The
 options they do have are shutting down projects, diversifying out of alternative energy,
 and being extremely selective  on new  capital investments.   Billions of  dollars  of
 investment have been  committed by the  alternative energy industry under prior and
 existing policies and their future  success is knotted with on-going regulatory policy.  To
 a large degree, public policy is determining what projects will be built, what they will be
 paid, and what it will cost them to operate.

       When PEn evaluates  a prospective  project, its analysis is  relatively straight
 forward.   It  considers the resource  and  technology, reviews  the environmental and
 permitting issues, confirms the financing options, estimates the income and expenses, and
 most importantly evaluates  the  predictability of all the above.  If  private  industry
 concludes it cannot trust in a consistent regulatory policy, it loses its ability to  plan and
 hence its ability to make long term commitments.

       Current power plant siting criteria almost assures natural gas will be  the fuel of
 choice, never mind the long term benefits of conserving this clean burning domestic fuel
 resource for future generations. In California,  the CPUC is becoming the dominant force
 in setting  contract administration  policy between the utilities  and alternative energy
power  producers even though they are not a signature to the contract.  PEn now has a

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 separate environmental staff of five people, not counting legal and engineering support,
 and the landfill gas group alone spent S0.5 million in 1991 on testing and compliance.

        PEn is  not  considering relocating  its  alternative energy  projects --  but  only
 because it  can't.  PEn is therefore  committed  to working together  toward a  long and
 prosperous relationship. Like  a marriage without divorce, we are comrrutted to making
 this relationship work, till death do we part.

 CONCLUSION

        The history and future of the alternative energy industry is intertwined,  for better
 or for worse, with public policy. Given that change is inevitable, both sides must learn to
 be flexible and work cooperatively together in planning our future energy mix.  Parochial
 views and  short sighted policies  will  cripple  the future  of  this  industry  and risk  the
 substantial gains realized thus far.  Alternative energy projects do not have the  option of
 relocating once their investment is  made.  The options they do  have include shutting
 down projects, diversifying out of alternative energy, being very selective on new capital
 investments, and working with regulatory policy makers.

        Regulatory policy makers must  realize there is no free lunch. If private industry
 concludes it cannot trust in a consistent regulatory policy based on a coordinated set of
 priorities, it will perceive the uncertainties and  lose its ability to plan.  Without such an
 ability to plan,  it cannot make long term commitments.  Without long term commitments,
 there are no projects — no benefits -- no future relationship. PEn, however, believes that
 despite the  often differing goals between regulatory policy and private industry, it  has
 been demonstrated that our efforts  can be combined and cooperative for the benefit of the
 nation now and in the future.

 REFERENCES

 Journal Article

 1.     "Boston Edison Gets 40 Bids Totaling 3,000 MW In Response To 132-MW
       RFP." Independent Power Report. February 28, 1992.

 2.     A. O'Donnell, "Bottom Lines -  A Question of Standards," California Energy,
       Markets. No. 138, Pages 5-7, January 3,  1992.

 Publications

 1.      J. Smutny-Jones, Alternative Energy Technologies Overview Fact Sheet.
       Independent Energy Producers Association, 1991.

2.      P. H. Gleick,  G. P. Morris and N. A.  Norman, Greenhouse Gas Emissions From
       The Operation Of Energy Facilities. Independent Energy Producers Association,
       July 22, 1989.

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       E. Bercnyi and R_ Gould, 1991 - 92 Methane Recovery From Landfill Yearbook.
       Governmental Advisors'Associates, Inc., New York, NY, 1991.
4.      List Of Solid Waste Legislation Enactedjn 1991. Solid Waste Association of
       North America, Silver Springs, MD, 1992.
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APPENDIX M:  RECENT DEVELOPMENTS, FUTURE PROSPECTS FOR SALES OF ELECTRICITY FROM
                  FACILITIES WHICH BURN LANDFILL GAS (Presentation)
                              Freddi L. Greenberg
                                Attorney at Law
                        1603 Orrington Avenue, Suite 1050
                             Evanston, Illinois 60201
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              "RECENT DEVELOPMENTS, FUTURE  PROSPECTS
                               FOR
                       SALES  OF ELECTRICITY
                               FROM
               FACILITIES WHICH BURN LANDFILL GAS"

                       .FREDDI L.  GREENBERG
                             ATTORNEY
Good Morning.   It's  always  a  pleasure  to  attend SWANA's landfill
gas symposium and to see so  many  old  friends.  As you know, my
topic today is "Recent Developments and Future  Prospects for Sales
of Electricity Generated Using Landfill Gas".  I'm going to focus
on wholesale  sales of  electricity  to utilities.   The  majority of
sales of electricity  generated at landfill  gas facilities are sales
to utilities.

You should be aware  that you  can also sell  power  at  retail to a
consumer.  Those sales  generally are limited by  the  location of the
landfill.   In the right  situation, a  retail  sale should  not be
overlooked.  The landfill may be located adjacent to property which
could be  developed for other purposes.   An example might  be an
industrial park.  Another option is to sell the gas to a consumer.
Here  again,  project  location can be  a  major limitation.   The
heating value of landfill gas is another limiting factor.  With a
retail sale of gas or  electricity  you  should be aware the seller
might become regulated as a utility.   This can create  problems in
some states,  but it has been done.  Because so much  is happening in
the area  of  sales to utilities, I will not  discuss retail sales
further today.   If any of you are interested  in  retail sales, I
will be glad to answer your questions  later.

Let's take a  look  at the  wholesale electric industry.   It's  been
almost 15 years since  Congress passed a law  called  the  Public
Utility Regulatory Policies  Act or PURPA.  One goal  of PURPA was to
conserve  fossil  fuels by encouraging  electric generation using
renewable fuels such  as landfill gas.  That goal has been met.  As
result of PURPA,  the  electric  utility industry has  undergone a
revolutionary change.  Before  1978, utilities generated almost all
the electricity  consumed in  the United  States.   The  power was
generated by utility-owned plants  which were part of  a utility's
rate  base.    Today,   there  is  a  competitive   market to  supply
wholesale power to utilities.  A utility no longer can be sure  that
its state commission  will  allow  it  to construct a generating plant
when new capacity is  needed.  In many  states, utilities must  seek
competitive bids from  a broad range of developers  who may supply
capacity at a cost which is  lower than if  the utility built a new
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plant.

This  means that there  is  tremendous  opportunity for non-utility
generators - that includes  you  if you have a  plant which burns
landfill gas.   But competition among non-utility generators also
has increased.  Price competition has led to lower payments to non-
utility generators.  In addition, proposed laws and regulations may
erode  the  advantage  that  PURPA gave  to landfill  gas  projects.
These opportunities and the  threats to PURPA projects will be the
focus of my  talk today.

I  have  divided my topic  into four parts.   I  will  begin  with a
summary  of the current laws and regulations which affect power
sales to utilities.  I will then turn to the non-utility generating
industry.   Where has  it  been, where  is  it  going.   What  is the
marketplace  like today?  Third,  I will discuss-new laws which are
likely  to  increase competition  and reduce the  PURPA advantage.
Fourth and last, I will talk about new trends which may allow the
landfill   gas   industry  to   compete  effectively   in   the  new
environment.

Let's begin  by looking at  PURPA.    As you probably know,  PURPA
guarantees a market  for the  electricity  you generate.   Utilities
are required to buy electricity generated by two general types of
facilities which  qualify  under  PURPA.   Qualifying cogeneration
facilities burn fossil  fuels and must produce steam or heat along
with  electricity.   They are not limited in size,  but  must meet
certain  efficiency standards.    Qualifying  small power producers
must use non-fossil technologies, such as  solar,  hydropower, wind,
waste and biomass.

To qualify under  PURPA, your  landfill gas plant must meet three
criteria.  First, the  fuel must qualify.   Landfill gas is biomass
so fuel is not problem.  In  addition, a landfill gas facility may
burn up to 25  percent fossil fuel  each year for limited purposes
such  as startup,  testing and flame  stabilization.    Second,  a
utility or utility subsidiary  may not own more than 50 percent of
a qualifying facility.  Third,  the facility's size is limited to 80
megawatts,  though this  limit has been temporarily lifted.

If  your plant meets  these  criteria,  it  becomes   a  qualifying
facility or  QF  when  you  notify  the  Federal  Energy  Regulatory
Commission or  FERC of the  facility's  status.   There is no  charge
for filing a notice.   You may also ask the FERC to certify that the
facility qualifies.  You should be aware that certification costs
several  thousand  dollars  and  does not  give you any additional
benefits.  Your lender may  require  certification as  a condition of
financing the project.  There also  may be  other  reasons to certify
a facility.

I mentioned  that  utilities must buy power from QF's.   A utility
must pay for QF power at the  utility's  avoided cost.  Avoided cost
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is the cost to the utility if it did not purchase power from the QF
but  generated the power  itself or bought the  power  from another
supplier.    The  avoided  cost  may  vary  from  one  utility  to
another.Sometimes avoided cost is seton a statewide basis.  Avoided
costs  of  investor-owned utilities must be approved  by  the state
public utility commission.  That approval is accomplished by means
of a regulatory proceeding with public participation.

Avoided cost has  two components:  energy and capacity.   A utility
must buy energy from all qualifying facilities.  The avoided energy
cost generally reflects the utility's fuel costs and operating and
maintenance  expense.    This  number  can be  quite low, often well
below 2 cents a kilowatt  hour.

When a utility needs capacity, its avoided cost  includes a capacity
component.  The capacity  portion of  avoided cost is  based on the
next generating unit the utility intends to build.  In theory, the
qualifying facility  is  compensated  for the fact that its sale of
power  will allow a utility  to defer  construction  of   the  next
generating unit.  If enough QF's are built, the  utility may be able
to avoid building the generating unit.

In addition to a guaranteed market, PURPA gives two other benefits
to QF's.   First,  utilities  must sell power to  QF's  at cost-based
rates.  This is  backup power which  is needed when  the  QF isn't
operating.   Backup  power might be  needed only  to restart  the
generator.  The rate for backup power cannot discriminate against
QF's as compared  to other utility customers.   The rate for backup
power is important because it can include a demand component which
is payable monthly, whether or not backup power is purchased.  The
demand charge may be set by the QF's highest annual  usage.

Another important benefit of PURPA is that QF's are exempt from
utility regulation at the state and federal levels.  This includes
regulation by the FERC, which regulates wholesale power sales. It
also includes rate regulation by state public utility commissions.
QF's are  also exempt  from  regulation  under  the Public Utility
Holding Companies Act  or PUHCA.   PUHCA  is  administered  by the
Securities and  Exchange  Commission.   PUHCA regulation  places a
significant  burden on  the  parent  company of the  owner  of  an
electric generating facility. The prospect of PUHCA regulation has
been a major deterrent to developers of generating facilities which
do not qualify under PURPA.   I  will  return to  the topic of PUHCA
regulation a little later when I discuss pending legislation.

There is one benefit which  PURPA does not give to QF's.   That is
the  right  to require  a  utility  to wheel or  transmit  power to
another utility.    Utilities have always wheeled  power  for one
another".  Some utilities also wheel power for QF's.   But you can't
force a utility to wheel your power.  This effectively limits the
market for your power to  the utility which  serves the area where
the QF is located.
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Let's  turn now  to my  second  topic:  the non-utility  generating
industry.  As I mentioned, PURPA has revolutionized the industry by
creating  competition to provide  new  capacity.    In  1973,  before
PURPA,  about  4.3 percent of  the electricity used in  the  United
States  was generated by non-utilities.'  In 1992  we  know that 52
percent of the new baseload capacity needed by utilities will not
be  generated  by utilities.   That  52  percent  is actually a low
number  because  it  does  not  include  industrial  cogeneration
facilities which also have multiplied since PURPA became law.

Today there are  about 45,000  megawatts of non-utility  generation
installed  in  the  U.S.   Another 60,000  megawatts  are  under
development.  Development slowed a bit during 1991,  but utilities
which  need capacity have  not  found  a  shortage of  developers
standing in line to meet that need.  While the number of projects
is  down from  its peak, project *size is  increasing.  The average
size of installed non-utility plants is  12 megawatts.  The average
size  of all  non-utility  projects  announced during  1991 was 96
megawatts.

Let's look at non-utility generation  from a regional standpoint.
California  has  10,000 megawatts  in operation.    Texas  has  about
7,000 megawatts.  There has also been significant QF development in
the northeast and  in Florida.   Most  of these QF's  developed in
response to utility capacity needs where the avoided  costs  were
highest.   The states  which  saw  the  greatest  development of QF
capacity in 1991  were New York, New Jersey, Florida, California and
Massachusetts.    During  the  next  year,  utilities  in  Texas,
California, Massachusetts, the Midwest  and  the  Pacific northwest
are likely to require new capacity.

Many people believe that utilities all over the country will need
new  capacity  during  the next  ten years.   Utilities may  have
under forecast the need for new capacity.  This is because utilities
have  had  problems  in  getting  rate   base  treatment  for  their
generating  facilities.   Most  planned  utility  plants  are  gas
turbines.   One recent  report  questions whether  the natural gas
industry can  meet  the  delivery requirements of  all  these plants.
In  addition,   many  utility  plants  are  reaching  the  age  of
retirement. Others may be shut down because  they can't comply with
Clean Air Act requirements.

Utility need  is  only  one part  of the  picture.   Another important
development is the  method used by utilities  to meet that need.  In
the early years of PURPA projects, utilities bought capacity from
QF's on a  first  come,  first served basis.  Today,  the method of
choice  for buying  capacity  is competitive  bidding.   The utility
issues a request for proposals or RFP.  QF's that can provide the
needed "capacity bid against  other  potential   suppliers.    The
utility's avoided cost for a proposed generating unit is often the
benchmark  or  ceiling for the RFP.  Some RFP's are  open only to
QF's.   A  growing   trend  is  "all-source"  bidding  in  which all
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potential  suppliers,  and sometimes demand-management strategies,
compete to meet the utility's need.

To  date,  bidding has been  used by utilities  in  26  states.   The
total number of RFP's to date is 90.At least 36 states have adopted
or  are  in the process  of  adopting competitive bidding programs.
Utility  RFP's  often   are  subject  to  approval  of  the  state
commission.  If you are  interested  in selling power to a particular
utility,  it  is  a good idea  to  participate in  any  regulatory
proceeding which shapes  the RFP.

Utilities  which  currently have RFP's  open,  or will in  the near
future, include New  England Power Company,Metropolitan Edison in
Pennsylvania,  Pacific   Power  and Light  in  Washington  State,
Indianapolis Power & Light, and Blue Ridge Power Authority.  Non-
utility generators have  traditionally looked  to investor-owned
utilities as the market for power sales.  It's time to look beyond
that market  to  public power.   Municipal utilities,  joint action
agencies  and  rural   electrification   co-operatives  should  be
considered.   Joint action  agencies  purchase power  on  behalf of
groups of  municipal  utilities.   In fact,  AMP-Ohio  is currently
seeking 100 megawatts.

Consider a non-generating municipal utility which  buys all of its
power  from  one  investor-owned utility.    Generally,  the  full
requirements  contract   prohibits   power  purchases  from  other
suppliers,  except  QF's.    The  full  requirements purchaser  may
welcome the QF as  a  second source of power.   Rural co-operatives
are required  to seek competitive bids for all new capacity.  There
is potential here.  There  are  over 1000 rural electric co-ops in
the U.S.and over 2000 municipal electric systems and joint action
agencies.

Now let's  look at some new developments in  the industry and in the
law which will affect your competitive position.  Bidding and new
market opportunities have lead to  the appearance of a new player:
the independent power producer or IPP.   An  IPP  is  a  generating
facility which does not qualify under PURPA and which is not part
of a utility's rate base.   Typically an IPP burns natural gas or
other fossil fuel but does  not  cogenerate.   This is because it's
easier to  develop a project  if there is no steam host  involved.  An
electric utility or its unregulated subsidiary may own more than 50
percent of an IPP.  Both fuel use and ownership structure can keep
an IPP from qualifying under PURPA.  Another characteristic of many
IPP's  is   that  they  have  a large  capacity  -  often over  100
megawatts.  As yet, few IPP's are  in operation, but 1500 megawatts
of  IPP  capacity is  under  construction.    IPP's   are  subject to
regulation by  the FERC under  the Federal  Power Act.  The rate
charged' by an IPP for power sold to a utility must be approved by
the FERC.   This has not been an insurmountable hurdle.  The FERC
has  been   receptive  to  rates  resulting  from  RFP's  where  the
utility's  avoided cost is the benchmark.
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IPP's also are regulated by the Securities and Exchange Commission
under  the Public utility Holding Companies Act.   SEC regulation
under  PUHCA has been  a problem for  IPP developers.   They have
lobbied  long and hard to change the  law.   It looks as though they
may  have succeeded.  On February 19,  1992,  the Senate passed The
National Energy Security Act (S. 2166).   That bill grew out of the
Bush Administration's  National Energy Strategy  which was issued
last year.

Title  XV of the National  Energy Security Act creates  an entity
called the Exempt Wholesale Generator or  EWG.  An EWG  is simply an
IPP  which meets certain requirements set  out  in the  act and so
notifies the Securities and Exchange Commission.

The  non-utility generating industry  has long expressed the concern
that PUHCA reform  would allow, utilities . to  purchase power .at
wholesale from their own unregulated affiliates.   The concern was
that an  affiliate  of the purchasing utility is  likely to have a
competitive advantage  over  other potential  power suppliers.  The
National Energy Security Act addresses this concern by prohibiting
EWG's from selling power to affiliates.   The Act  also allows state
commissions to consider the  impact of purchases from EWG's  upon the
purchasing  utility's  ratepayers.    State  commissions also  can
consider other  matters including the impact  of EWG's  which use
highly leveraged financing.  Title XV has not yet become law, but
a similar provision  is likely  to be a part of energy legislation
passed by Congress this year.

The  new energy law may  also address another issue  which is  near and
dear to  non-utility generators.  That issue is mandatory wheeling
or  transmission access.   If  wheeling  is  not addressed  in the
legislation,it probably will be the  subject of an FERC rulemaking.
The  FERC already has addressed  the question of wheeling on a case-
specific basis  in recent  orders.   In some cases,  the  FERC has
required QF's to give up their  right to sell power to utilities in
return for wheeling rights on the same footing with other utilities
and  IPP's.

PUHCA reform  has been  on the  horizon for several years.   It is
viewed by many as a necessary step toward a competitive market for
wholesale power.  This  will help insure that the  electric  consumer
has  access to the  lowest priced electricity.   In  an era of high
electric prices, this is a significant goal.

Another critical result of PUHCA reform has received  little public
discussion.  That question is:   How  will  PUHCA reform affect QF's?
For  our purposes today, how will it affect your  projects?

Existirtg  QF's will  probably feel little or no  impact.   But the
impact on future projects may be significant.  In  a nutshell, there
will be more competition.  The competition will  be larger and may
be backed by major utilities.
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On a purely competitive basis, some IPPs may be able to bid a lower
price per unit due to the economies of scale.  Natural gas prices
are at an all-time low as well.  But landfill  gas projects may have
the edge  when it comes  to  fuel supply.   Natural  gas prices and
delivery problems won't affect landfill gas.   One possible long
term  result of PUHCA .reform  is that we  will once  again  see an
electric generating industry consisting of large generating plants
owned by utilities or,  more  accurately, by their affiliates.  This
time the utility plants will be  located in the service territories
of other  utilities.   The small,  decentralized  generating plants
which PURPA envisioned, together with  the  fuel  diversity PURPA
intended to create, may become relics of the past.

There have  also been recent  attempts to emasculate  PURPA.   One
failed proposal would have eliminated the utility's obligation to
purchase  power  from  QF's  in  states which  allow  utilities  to
purchase power from IPP's.  There was an exception for QF's which
use  solar,   wind or  hydroelectric  technology.    This  type  of
provision has been proposed  in  the  past and  probably will  be
proposed again.  I'm sure that  many  project  developers-who would
have been affected by this proposal were unaware of it.

Another recent proposal would have precluded  states from requiring
utilities to pay more than  avoided cost  for  power purchased from
QF's.    This would  have  eliminated certain  state  laws  which
recognize the benefits associated with renewables by setting a rate
structure which specifically  encourages those  projects.    This
proposal has appeared several times during the last year.

There seems  to be a sense in Congress  that PURPA projects no longer
need special encouragement.  Congress recently rejected attempts to
extend the  tax  credits  which support the production and sale of
landfill gas.  Another proposal which failed was a tax credit for
production of energy from renewable sources.

For many years,  the voices of the non-utility generating industry
were  two  or three  national  trade   groups   dominated by  large
developers.   Many of the more  active developers are now interested
in developing  IPP's.    They supported PUHCA reform  as  did many
utilities.    PUHCA reform   and  IPP's  are  concepts which  are
consistent with this era of competition and reduced regulation.  It
doesn't look like the voices  of the  industry are as committed to
encouraging renewables.  These technologies have not had a strong
voice in Congress or in many states.   I think this is a good time
for proponents of renewables and waste to join together and protect
their interests under PURPA.

In spite of  increasing competition, this may be just the right time
to market  your  electric power  based  on  its  benefits  to  the
environment.  And that  is what I'll turn to in the last section of
my talk.  While  the  IPP's and  utilities have been fighting over


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PUHCA reform, state commissions have become increasingly aware of
the environmental impact of electric generation. This is important
because the  state  commission  sets  the  utility's avoided cost and
has  the   ability  to   encourage   utilities   to  favor  specific
technologies.

An  emerging  trend at  the state  level  is  the consideration of
environmental externalities in connection with the regulation of
electric  utilities.     By externalities,  I  mean  the  residual
environmental impact of a generating facility  after  it complies
with current standards for pollution control.

States have recognized externalities in different ways.  One way is
by statute which provides  a buy back rate higher than avoided cost
for electricity generated using specified technologies.   Another
approach is the  set-aside which designates a block of capacity need
to be filled  by a particular technology.   Still  another approach is
to  quantify  the  environmental  impacts  of  various  fuels . and
technologies.   The next  step is   to monetize those  impacts and
include the environmental  cost as part of the cost of constructing
a proposed generating facility.

Let's look at what some  states have done in this regard.  Illinois
mandates  a higher buyback  rate than  avoided  cost for  utility
purchases from QF's fueled by solid waste and landfill gas.   The
buyback rate is equal to the  utility's retail  rate.   The utility
receives a credit against its  state tax obligations in an amount
equal to  the difference between  its avoided cost  and  the amount
paid to the qualifying facility.   The qualifying facility in turn
must repay to the  state a sum equal to the utility's tax credit.
Repayment must  begin  at the  end of a 10 or  20 year  power sale
contract.  Connecticut  has  a similar  law but  with  no repayment
obligation.  Other states have combined the set-aside with payment
of a  rate above avoided cost to  facilities which  use renewable
fuels.  Iowa  requires each utility to buy  15 megawatts of renewable
power at an  incentive rate.   Still another approach is to assume
that a utility needs capacity  whether or not this is the case, for
purposes  of  calculating the  avoided cost  payable to  QF's using
renewable fuels.

The  approaches  I  just  mentioned   do  not  attempt  to  quantify
environmental externalities.   They simply recognize that |a given
technology will benefit the  environment.   The higher  rate will
encourage the preferred technology.  Where utilities do not need
new capacity  in  the near future, the avoided cost does not include
a capacity component.   In those  states, renewable  fueled power
would not without this  type  of law.

Public "utility commissions  in several  states  have  addressed the
question of externalities  in the utility planning process.  States
which use least  cost planning  try to insure that a utility selects
the least expensive alternatives for new capacity.   Consideration


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of environmental costs is a logical expansion of that approach.

The  next step would  be for  a state  to  include the  concept of
externalities in the  avoided  cost paid to qualifying facilities.
Thus,  technologies which pollute  the environment would  be more
expensive.   QF's  which  allow utilities  to  avoid or  defer such
plants  would  receive  a  capacity payment  which  reflects  the
environmental cost which has  been avoided.    To date few states
have taken that second step.

California   is   one  state  which  will   include  environmental
externalities  in  the  price utilities  pay for  QF  power.   When
California utilities  issue RFP's  for capacity  later  this year,
winning bidders are likely  to  be paid  environmental adders as part
of their avoided cost payments.

Quantifying  and  monetizing environmental externalities  is time
consuming and expensive.  In addition, there are any number of ways
of achieving the goal.  In  the  recent  California proceeding, eight
or nine  intervenors each had  a different  proposal as  to  how the
externalities should be handled.   The  recognition of externalities
could make it easier for landfill  gas  projects to compete with the
IPP's.   But  it's  expensive to participate in  state proceedings
which require expert testimony. The cost  could be prohibitive for
a developer of one  or two gas projects.  The emphasis on renewables
in California results from the fact  that California already has
projects using  several  renewable  technologies.   California has
windpower, geothermal and  solar projects  in  addition to landfill
gas.  California also has serious air quality problems.

Because  the   externality  concept  is  new,  staff at  one  state
commission favors inclusion of only one half the externality value
in the utility planning process.   They are even more nervous about
an adder to  avoided cost because  that will consumer rates.  This
application of the concept  of  externalities is  fairly new and will
continue to develop over the next several years.

The Massachusetts  Department of Public Utilities issued an order
recognizing externalities in 1990  and is  about to issue a second
order  revising  the  methodology.    It  appears  that  the  new
Massachusetts rule will recognize externalities only for planning
purposes.   Illinois  and Wisconsin also  are  likely  to consider
externalities  in  the  utility  planning  process,   but  not  in
calculating avoided cost.

From  what  I  have   seen, states  which include  externalities in
avoided cost probably will  limit that concept to QF's which offer
new  capacity.    Existing  contracts  will  not  be  affected.   In
addition, externality  adders  will probably  not be  available in
connection with sales  of energy only.   There are  also many critics
of the quantification  of externalities.  It's not yet clear whether
this approach will become widely accepted.
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California  has  taken another innovative  step  by recognizing the
value of fuel diversity.  Under a state law which went inter effect
in January, a portion of each utility's capacity needs is set aside
so that QF's fueled by renewables, including  landfill gas, can bid
to  fill  that need.   In the upcoming  California RFP's,  Southern
California Edison will set aside 175 megawatts for renewables while
Pacific Gas and Electric will set aside 22.5 megawatts.  New York
has just  issued a state energy plan which requires utilities to
contract  for  300  megawatts of renewable  fueled power during the
next three years.

This is the time to get involved and to set a  precedent for the way
states  view  landfill  gas.    I   don't  favor  the  approach  of
quantifying externalities.  I believe the preferable approach is to
lobby  for  a  law  which guarantees  a   higher  rate  to  specified
technologies.   The state laws I  described earlier are examples.
This approach is  less precise  than quantifying externalities.  A
state  law  which   limits   higher  payments   to  a  few  special
technologies  may   be  easier to  sell-  because  it  is simpler to
administer"  and  because its impact  is  more  limited  than  a full-
fledged adoption of externalities.

I believe there are and will be opportunities to carve out a niche
for  renewables  in  many  states.   The   key   may  be  the  term
"renewables".  Landfill gas  developers may have to join forces with
developers of other renewable  projects. Otherwise the cost may be
prohibitive and the interest which is benefitted may be viewed as
too limited.  This type of action may be necessary at the federal
level as well in order to insure the continuation of PURPA.

Where the  electric industry is concerned, I'm sure you'll agree
that the old curse has come true:  we do live  in interesting times 1
Thank you for  your  attention.    I'll be happy to  answer  your
questions.
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