United States
                Environmental Protection

                   Air and Radiation
January 1999

<&EPA     Wisconsin  State  Primer

                                                A Primer on
                                                Developing Wisconsin's
                                                Landfill Gas-to-Energy

                                                    WISCONSIN ENERGY BUREAU
                                                    Department of Administration

                   Printed on paper that contains at least
                   30 percent postconsumer fiber.



Introduction	j
1.   About the Landfii! Methane Outreach Program 	i
2.   Eiectricity Restructuring and LFGTE	ill
3,   The Goals of This Primer	iv
4,   Where to Go for More information	v
1.   Overview of Federal Standards and Permits	1
    1.1    Resource Conservation and Recovery Act Subtitle D 	1
    1,2   Clean Air Act (CAA)	2
         NMOC Emissions: New Source Performance Standards (NSPS)	2
         Air Emissions: New Source Review (NSR)	2
         Title V Operating Permit	4
    1,3   National Pollutant Discharge Elimination System Permit (NPDES)	5
    1.4   Clean Water Act, Section 401 	5
    1.5   Other Federal Permit Programs 	6
2.   Overview of State Standards and Permits	7
3,   Overview of Local Standards and Permits	17
Part 11: Incentiwe Programs
1.   Overview of Federal Incentive Programs	19
    1,1    Section 29 Tax Credit	19
    1,2   Renewable Energy Production Incentive (REPI)	19
    1,3   Qualifying Facilities Certification	19
2.   Overview of State Funding Programs	21
Table A   Opportunities for Landfii! Gas Recovery in Wisconsin	ii
Table 2,1  Summary Table of State Standards/Permits	8
Table 2,2 Permit Approval Timeline	9
Table 2,3 Summary of Landfii! Gas System Criteria 	10
Table 2,4 Air Pollution Control Construction Permits	12
Table 2,5 Wisconsin Pollutant  Discharge Elimination System	14
Table 3,1  Local  Permits and Standards	18
Appendix A:                 	22


III    About the Landfill Methane  Outreach Program
 The EPA Landfill Methane Outreach Program
 The recovery of energy from landfill gas provides local and global environmenfal and energy benefits, as well as
 economic  benefits. The mefhane captured from landfills can be transformed into a cost-effective fuel source for
 generating electricity and heat, firing boilers, or even powering vehicles.

 To promote the use of landfill gas as an energy resource, the U.S. Environmental Protection Agency (EPA) has
 established the Landfill Methane Outreach Program (LMOP). The goals of LMOP are to reduce methane emis-
 sions from landfills by:

     • Encouraging environmentally and economically beneficial LFGTE development

     • Removing barriers to developing LFGTE projects

 To achieve these goals, EPA establishes alliances with  four key constituencies:

     • State environmental and energy agencies

     • Energy users/providers (including investor-owner, municipal and other public power utilities, cooperatives,
       direct end users, and  power marketers)

     • Industry (including  developers, engineers, and equipment vendors)

     • Community partners (municipal and small private landfill owners and operators; cities, counties, and other
       local governments;  and community groups)

 EPA establishes these alliances through a Memorandum of Understanding (MOU). By signing the MOU, each ally
 acknowledges a shared commitment to promoting landfill  gas energy recovery at solid waste landfills, recognizes
 that the widespread use of landfill gas as an energy resource will reduce methane and other air emissions, and
 commits to certain activities that enhance the development of this resource.

 As of January 1999, over  240 landfill methane  recovery projects were operating in the United States. EPA esti-
 mates that up to 750 landfills could install economically viable landfill energy projects  by the year 2000.

 Landfill  Gas-to-Energy Projects in Wisconsin
 Wisconsin  is a member of the LMOP State Ally Program, which encourages cooperation between EPA and state
 energy and environmental agencies to promote the development of LFGTE resources. As a State Ally, the
 Wisconsin  Department of Natural Resources and Wisconsin Energy  Bureau focus on developing consensus
 among landfill operators,  utility companies, independent power producers, project developers, utility regulators,
 and the state's  regulators so they can work together to promote new energy and environmental opportunities
 from which all Wisconsin  residents will benefit.

 Eight LFGTE projects are  currently operating in Wisconsin and three more are planned. According  to EPA and the
 State of Wisconsin, an additional seven landfills have the potential to support economically viable landfill gas-to-
 energy projects. The following table describes Wisconsin's  seven candidate landfills.
                                  A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential

Table A
Candidate Landfills for Landfill Gas-to-Energy Projects in Wisconsin
Landfill Name
Brown County East LF
Brown County West LF
Hechimovich SLF
Ridgeview Recycling LF
Rock County City of Janesville LF
Troy Area LF Incorporated
La Crosse County LF
Mallard Ridge Northern
Mallard Ridge Recycle LF
Tork LF/Seneda LF
Valley Sanitation
Operational Status
Status of
LFGTE Project
Source: EPA's Opportunities for Landfill Gas Energy Recovery in Wisconsin: Draft Profiles of Candidate Landfills and Current Projects
and information provided by the State of Wisconsin.
       Landfill Gas Projects in Wisconsin

Ill     Electricity Restructuring and LFGTE
  What Is Electricity Restructuring?
  Electricity restructuring  refers to the introduction of competition into both the wholesale and retail electricity mar-
  kets. Until now, electric  utilities operated under monopolies authorized by federal and state regulatory authorities
  as the sole provider of electric service to consumers within a specific service territory. Under restructuring, utili-
  ties will lose these monopolies, enabling other energy providers to compete for their customers. The result will
  be more  energy options for consumers, lower energy prices, and greater use of renewable energy sources.

  Efforts to restructure the electric utility industry began in 1978 with passage of the Public Utilities Regulatory
  Policies Act (PURPA), which required utilities to buy a portion of their power from unregulated power generators
  in an effort to encourage the development of smaller generating facilities, new technologies, and renewable fuel
  sources.  The National Energy Policy Act of 1992 (EPACT) expanded  on PURPA, allowing more types of unregulated
  companies to generate and sell electricity, effectively creating a  competitive wholesale market for electric power.

  Restructuring at the retail  level has been a hot issue  in many states since the passage of EPACT, which delegat-
  ed to states the authority to introduce competition among electric utilities within their borders. Fourteen states as
  of January 1999 have since enacted some form  of restructuring legislation, while the remaining 36 are consider-
  ing such  legislation.

  How Do  These Changes Affect Landfill Gas Recovery?
  Many states are including renewable energy provisions in their  restructuring  legislation. Such  provisions mandate
  utilities to include  a certain percentage of electricity  generated from renewable, or "green energy," sources into
  their energy mixes. LFGTE is one such green energy source.

  In March 1998, the Clinton Administration unveiled its "Comprehensive Electricity Competition Plan" to restruc-
  ture the electricity industry nationwide. Contained  in this proposal is a Renewable Portfolio Standard (RPS) that
  would guarantee that a  minimum percentage of the nation's electricity be powered by green energy.  Energy ser-
  vice providers would be required to cover a percentage of their electricity sales with generation from  non-hydro-
  electric renewable sources such  as wind, solar, geothermal, and  biomass  (which includes LFGTE).

  Marketing Landfill Gas  Recovery as Green Power
  One of the emerging areas and most promising  mechanisms to encourage utilities and other energy marketers
  to participate in LFGTE projects  is  the development of green marketing programs. Green  marketing programs
  are designed to enable  energy marketers to position renewable energy products (including LFGTE) as premium
  products, and therefore, collect a premium price from their customers. In addition, green marketing allows energy
  marketers in competitive marketplaces to differentiate their energy  product,  and allows utilities in non-restruc-
  tured marketplaces to gain critical  product marketing experience in preparation for competition. However, the
  general public is less familiar with LFGTE than other sources of renewable energy; therefore, support from the
  LMOP is often critical to ensure the success of early LFGTE green  marketing efforts.

  Get the Latest Information  on Electricity Restructuring in Your State
  For up-to-date information on electricity restructuring in Wisconsin, visit the National Conference of State
  Legislatures Web site at: http://www.ncsl.org/programs/esnr/restru.htm. This site contains a glossary of terms relat-
  ed to electricity restructuring as well as direct links to full text of restructuring legislation on a state-by-state basis.
                                   A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential     \ \ \

        The Goals  of  This  Primer

Permits, incentive programs, and policies for LFGTE project development vary greatly from state to state.
To guide LFGTE  project developers through the state permitting process and to help them to take advantage of
state incentive programs, the  LMOP has worked with state agencies to develop individual primers for states partici-
pating in the State Ally Program. By presenting the latest information on federal and state regulations and incen-
tives affecting LFGTE projects in this  primer. The LMOP and Wisconsin state officials hope to facilitate develop-
ment of many of  the landfills listed  in  Table A.

To develop this primer, the State of Wisconsin  identified all the permits and incentive programs that could apply
to LFGTE projects developed  in Wisconsin. It should be noted, however, that the regulations, agencies, and policies
described are subject to change. Changes are likely to occur whenever a state legislature meets, or when the feder-
al government imposes new directions on state and local governments. LFGTE project developers should verify and
monitor the status of laws and rules that might affect their plans or the operations of their projects.

Who Should  Read This Primer?
Throughout the country, the  number of landfill gas-to-energy (LFGTE)  projects is growing. Recovering  methane
gas at solid waste landfills provides significant environmental and economic benefits by eliminating methane
emissions while capturing the emissions' energy value.

This primer is designed to help  realize the potential of landfill gas recovery in the state of Wisconsin. It provides infor-
mation for developers of LFGTE projects, as well  as all other participants in such  projects: landfill operators, utility
companies, independent power producers, utility regulators, state  regulators,  engineers, and equipment vendors.

What Information Does This Primer Contain?
If you are interested in taking advantage of the economic and environmental opportunities in LFGTE recovery in
Wisconsin, you will need to know the regulatory requirements that apply. You will also need to know what eco-
nomic incentives are available to help make these projects  more  economically viable.

To address these needs, this  primer covers the following topics:

    • Federal Standards and Permits. This section provides information on federal regulations that may pertain to
      LFGTE projects, including solid waste, air quality, and water quality regulations.

    • State Standards and Permits. This section provides information on state permits that apply to landfill gas
      recovery projects in the State of Wisconsin.

    • Local Standards and Permits.  Local permit approval will often be needed for LFGTE projects. This section
      offers a step-by-step process you can follow to secure this approval.

    • Federal Incentive Programs. This section presents information on federal incentives that may apply to
      LFGTE projects.

    • State Funding Programs. This  section presents information on the environmental infrastructure financing
      opportunities that are available in the State of Wisconsin.
iv     Landfill Gas Projects in Wisconsin

Where Can I Go For More Information?
        Eric C. Moser, Air Quality Planner
        Wisconsin Department of Natural Resources
        P.O. Box 7921
        Madison,  Wl  53707-7921
        Phone: (608) 266-3010
        Fax: (608) 267-0560
        E-mail: moshee@dnr.state.wi.us

        Don Wichert, Chief
        Energy Resources Section
        Wisconsin Energy Bureau
        P.O. Box 7868
        Madison,  Wl  53707-7868
        Phone: (608) 266-7312
        Fax: (608) 267-6931
        E-mail: wiched@mail.state.wi.us

        U.S. Environmental Protection Agency
        Landfill Methane Outreach Program
        U.S. EPA, 6202J
        401 M Street, SW
        Washington,  DC 20460
        Phone: (888) 782-7937
        Fax: (202) 565-2077
                                A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential


 Part  1: Standards  and Permits
Overview of Federal Standards and Permits
The following section discusses federal regulations that may pertain to LFGTE projects. The LFGTE
projects can be subject to solid waste, air quality, and water quality regulations. The federal regulations
are presented  in general terms, because individual state/local  governments generally develop their own
regulations for carrying out federal mandates. Specific requirements may therefore differ among states.
Project developers will have to contact relevant federal agencies and, in some cases, state agencies for
more detailed  information and applications. The discussion of each key federal standard/permit contains
three components:
    •  Importance of the standard/permit to LFGTE project developers
    •  Applicability to LFGTE projects
    •  Description of each standard/permit
 1.1    Resource Conservation and Recovery Act Subtitle D
            Importance   Before a LFGTE project can be developed, all Resource Conservation and Recovery
                          Act (RCRA) Subtitle D requirements (i.e., requirements for non-hazardous waste
                          management) must be satisfied.

            Applicability  Methane is explosive in certain concentrations and poses a hazard if it migrates
                          beyond the landfill facility boundary. Landfill gas collection systems must meet
                          RCRA Subtitle D standards for gas control.

            Description   Since October 1979, federal regulations promulgated under Subtitle D of RCRA
                          required controls on migration of landfill gas. In 1991, EPA updated landfill design
                          and performance standards. The newer standards apply to municipal solid waste
                          landfills that were active on or after October 9, 1993. Specifically, the  standards
                          require monitoring  of landfill gas and establishing performance standards for com-
                          bustible gas migration control. Monitoring requirements must be met at landfills
                          not only during their operation, but also for a period of 30 years after closure.

        Landfills affected by RCRA Subtitle D are  required to control gas by establishing a program to periodically
        check for methane emissions and prevent offsite migration. Landfill owners and operators  must ensure
        that the concentration of methane gas does not exceed:

            • 25 percent of the lower explosive limit for methane in facilities' structures

            • The lower explosive  limit for methane at the facility boundary

        Permitted limits on methane levels reflect the fact that  methane is explosive within the range  of 5 to 15
        percent concentration in air. If methane emissions exceed permitted limits,  corrective action (i.e., installa-
        tion of a landfill gas collection system) must be taken. Subtitle D may provide an impetus for some land-
        fills to install energy recovery projects in cases where a gas collection system is required for compliance
        (see 40 CFR Part 258 for more information).

1.2   Clean Air Act (CAA)
       The CAA regulates emissions of pollutants to ensure that air quality meets specified health and welfare
       standards. The CAA contains two provisions that may affect LFGTE projects: New Source Performance
       Standards (NSPS) and New Source Review (NSR). Facilities that are planning to construct a new LFGTE
       system or that plan to modify a landfill operation to incorporate a LFGTE system must obtain a Permit to
       Construct and Operate from the responsible air regulatory agency if emissions from the project are expect-
       ed to exceed the major facility emission thresholds. The Permit to Construct and Operate specifies the
       NSPS and NSR requirements that the project must meet. Once construction is complete, the facility must
       obtain an operating permit that meets the requirements defined in Title V of the 1990 CAA Amendments.
       The general requirements of NSPS, NSR, and Title Vfor LFGTE projects are discussed  below.

       Non-Methane Organic Compounds Emissions (NMOCs): New Source
       Performance Standards (NSPS)

           Importance  LFGTE projects can be part of a compliance strategy to meet EPA's new emissions
                         standards for landfill gas.

           Applicability Landfills meeting certain design capacity, age, and  emissions criteria are required to
                         collect landfill gas and either flare it or use it for energy.

           Description  EPA final regulations under Title I of the CAA Amendments require affected landfills to
                         collect and control landfill gas. Specifically, the  CAA targets reductions in the emis-
                         sions of NMOCs found  in landfill gas because they contribute  to local smog formation.
                         For landfills last modified on or before May 30,  1991,  and that  received waste after
                         November 8, 1987 ("existing landfills"), the standards are "Emissions Guidelines" (EG),
                         which has been incorporated as Georgia Rule (ggg)—"Municipal Solid Waste Landfills."

                         For landfills that began  construction or accepted waste for the first time on or
                         after May 30, 1991 ("new landfills"), the standards are "New Source Performance
                         Standards" (NSPS). The final  regulations can be found in the  Federal Register, March
                         12, 1996, Vol. 61, No. 49, pgs. 9907-9944,  or can  be obtained  from the National
                         Technical Information Service (NTIS) at (703) 487-4650. Ask for PB96-153465.

       The basic requirements to determine if controls for landfill gas are  necessary are  the same for both
       existing and new landfills. Landfills that exceed both of the following  criteria must comply with collection
       system requirements.

           • Capacity—Maximum design capacity greater than or equal to 2.5 million Mg1 (or 2.75 million tons)
             or 3.27 million yd3
           • Emissions—Annual NMOC emission rate is  greater than 50 metric tons.

       Air Emissions: New Source Review (NSR) Permitting Process
           Importance  New LFGTE projects may be required to obtain p re-const ruction permits under New
                         Source Review (NSR). Depending on the area in which the project is located, obtain-
                         ing these permits may be the most critical aspect of project approval.

           Applicability The combustion of landfill gas results in emissions of carbon monoxide and oxides
                         of nitrogen. Requirements vary for control of these emissions depending on local air
                         quality. The relevant standards for a particular area will be discussed in Section 2,

       ^ Landfills with less than 2.5 million Mg are required to file a design capacity report.

2      Landfill Gas Projects in Wisconsin

                   State Standards and Permits. Applicability of these standards to LFGTE projects will
                   depend on the level of emissions resulting from the technology used in the project
                   and the project's location (i.e., attainment or non-attainment area).

    Description   CAA regulations require new stationary sources and modifications to existing
                   sources of certain air emissions to undergo NSR before they can operate. The pur-
                   pose of these regulations is to ensure that sources meet the applicable air quality
                   standards for the area in which they are located.  Because these regulations are com-
                   plex, a landfill owner or operator may want to consult an attorney or expert familiar
                   with NSR for more information about permit requirements in a  particular area. Air
                   permitting requirements should also be discussed with the Air  Protection Branch of
                   Georgia's Environmental Protection Division.

The existing CAA regulations for attainment and maintenance of ambient air quality standards regulate
six criteria pollutants—ozone, nitrogen dioxide (NC^), carbon monoxide  (CO), particulate matter (PM-10) and
(PM 2.5) sulfur dioxide (802), and lead. The CAA authorizes the EPA to set both health- and public welfare-
based national ambient air quality standards (NAAQS) for each criteria pollutant. Areas that meet the
NAAQS for a particular air pollutant are classified as being in  "attainment" for that pollutant and those that
do not are in "non-attainment." Because each state is required to develop an air quality implementation plan
(called a State Implementation Plan or SIP) to attain and maintain  compliance with the NAAQS in each Air
Quality Control Region within the state, specific permit requirements will vary by state. (See 40 CFR 51.160-
51.166 for more information.)

The location of the LFGTE  project will dictate which kinds of construction and operating permits are
required. If the landfill is located in an area that is  in attainment for a particular pollutant, the LFGTE project
must undergo Prevention of Significant Deterioration permitting if emission levels exceed major source
thresholds. Nonattainment area permitting is required for those landfills that are located in  areas that do not
meet the NAAQS for a particular air pollutant. Furthermore, the level of emissions from the project deter-
mines whether the project must undergo major NSR or minor NSR. The requirements of major NSR permit-
ting are  greater than those for minor NSR. The following section provides more detail on new source permits.

Prevention of Significant Deterioration Permitting
Prevention of Significant Deterioration (PSD) review is used in attainment areas to determine whether a
new or modified emissions source will cause significant deterioration  of local air quality. Georgia's Air
Protection Branch can  assist landfill gas project developers  in determining whether a proposed LFGTE
project requires PSD approval.

All areas are governed  to some extent by PSD regulations because no location is in attainment  for all
criteria pollutants. Applicants must determine PSD applicability for each individual pollutant. For gas-fired
sources, PSD major NSR is required if the new source will emit  or has the potential to emit any criteria
pollutant at a level greater than 250 tons per year.

For each pollutant for which the source is considered major, the PSD major NSR permitting process
requires that the applicants determine the  maximum degree of reduction achievable through the applica-
tion of available control technologies. Specifically, major sources may have to undergo any or all of the
following four PSD steps:

    • Best Available Control Technology (BACT) analysis

    • Monitoring of local air quality

^Class I areas are specified under the Clean Air Act and include national parks. Projects situated within a certain
distance from Class I areas are subject to more stringent criteria for emissions levels.

                           A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential       3

    • Source impact analysis/modeling

    • Additional impact analysis/modeling (i.e., impact on vegetation, visibility, and Class I areas)2

Minor sources and minor modifications (i.e., below 250 tons per year) are exempt from this process, but
these sources may still be required to obtain construction and operating air permits (see CFR. 40 CFR
52.21  for more information on PSD).

Nonattainment Air Permitting
An area that does not meet the NAAQS for one or more  of the six criteria pollutants is classified as being
in "nonattainment" for that pollutant.  Ozone is the most pervasive nonattainment pollutant, and the one
most likely to affect LFGTE projects. A proposed  new emissions source or  modification of an existing
source located in a nonattainment area must undergo nonattainment major NSR  if the new source or the
modification is classified  as major (i.e., if the new  or modified source exceeds specified emissions thresh-
olds). To obtain  a nonattainment NSR permit for criteria pollutants, the project:

    • Must use technology that achieves the Lowest Achievable Emissions Rate (LAER) for the
      nonattainment pollutant

    • Must arrange for an emissions reduction at an existing source that offsets the emissions from
      the new project at  specific ratios

Potential Exemptions
EPA recently furnished a guidance document to state and regional permitting authorities that provides an
exemption from major NSR permitting requirements for landfill projects that qualify as "pollution control
projects." An  existing landfill that plans to install a LFGTE recovery project may qualify as a pollution
control project as long as it reduces non-methane organic compounds (NMOC) at the site. Under the
guidance, the permitting authority may exempt the project from major NSR, provided it meets all other
requirements under the CAA and the state, including  minor source requirements. In nonattainment areas,
offsets will still be  required, but need not exceed  a 1:1 ratio. States have discretion to exercise the
increased flexibility allowed by the guidance on a case-by-case basis.

Title V Operating Permit

    Importance    Many LFGTE projects must obtain operating permits that satisfy Title V of the  1990
                   CAA Amendments.

    Applicability  Any  LFGTE plant that is a major source, as defined by  the Title V regulation (40 CFR
                   Part  70), must obtain an operating permit.

    Description    Title V of the CAA requires that all major sources obtain new federally enforceable
                   operating permits. Title V is modeled after a similar program established under the
                   National  Pollution Discharge  Elimination System (NPDES). The purpose of Title V is
                   to clarify, in a single document, all the air requirements applicable to  a facility.  Each
                   major source subject to Title  V  must submit an application  for an operating  permit to
                   Georgia's Air Protection Branch describing and quantifying all air pollution sources.
                   The  operating permit describes the emission limits and operating conditions that a
                   facility must satisfy, and specifies the reporting requirements that a facility must meet
                   to show compliance with the air pollution regulations. A Title V operating permit
                   must be  renewed every 5 years.
Landfill Gas Projects in Wisconsin

1.3    National Pollutant  Discharge Elimination System (NPDES) Permit
           Importance   LFGTE projects may need to obtain  National Pollutant Discharge Elimination System
                         (NPDES) permits for discharging wastewater that is generated during the energy
                         recovery process.

           Applicability Landfill gas condensate forms when  water and other vapors condense out of the gas
                         stream due to temperature and pressure changes within the collection system. This
                         wastewater must be removed from the collection system. In addition, LFGTE projects
                         may generate wastewater from system maintenance and cooling tower blowdown.

           Description   NPDES permits regulate discharges  of pollutants to surface waters. The authority to
                         issue these permits is delegated to state governments by EPA. The permits, which
                         typically last 5 years, limit the  quantity and concentration of pollutants that may be
                         discharged. To ensure compliance with the limits, permits require wastewater treat-
                         ment or impose other operation conditions. The state water offices or EPA regional
                         office can provide further information on these permits.

       The permits are required for three categories of sources  and can be issued as  individual or general
       permits. A LFGTE project would  be included in the "wastewater discharges to surface water from
       industrial facilities" category and would require an individual permit. An individual permit application
       for wastewater discharges typically requires information on water supply volumes; water utilization;
       wastewater flow; characteristics and disposal methods; planned improvements; storm water treatment;
       plant operation; materials and chemicals used; production; and other relevant information.
1.4    Clean Water Act, Section 401
           Importance   LFGTE projects may need Clean Water Act (CWA) Section 401 certification for
                         constructing pipelines that cross streams or wetlands.
           Applicability Landfill gas recovery collection pipes or distribution pipes from the landfill to a near-
                         by gas user may cross streams or wetlands. When  construction or operation of such
                         pipes causes any discharge of dredge into streams or wetlands, the project may
                         require Section 401 certification.
           Description   If the construction or operation of facilities results in any discharge into streams or
                         wetlands, such construction is regulated under Section 401. This requirement may
                         affect the construction  of LFGTE project facilities or pipelines to transport landfill gas.
       The applicant must obtain a water quality certification from the State in which the discharge will
       originate. The certification should then be sent to the U.S. Army Corps  of Engineers. The certification
       indicates that such discharge will comply with the applicable provisions of Sections 301, 302, 303, 306,
       and 307 of the CWA.
                                  A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential

1.5    Other Federal Permit Programs
       The following are brief descriptions of how ofher federal permifs could apply fo LFGTE project developmenf:

           • RCRA Subfifle C could apply fo a landfill gas project if it produces hazardous waste. While some
             landfill gas projects can return condensate to the landfill, many dispose of it through the public
             sewage system after some form of on-site treatment. In some cases, the condensate may contain
             high enough concentrations of heavy metals and organic chemicals for it to be classified as a haz-
             ardous waste, thus triggering federal  regulation.

           • The Historic Preservation Act of 1966 or the Endangered Species Act could apply if power lines or
             gas pipelines associated with a project infringe upon an historic site or an area that provides habi-
             tat for endangered species.
       Landfill Gas Projects in Wisconsin

Overview of  State Standards and Permits
This section provides information on permits required by the State of Wisconsin for the development of
a LFGTE project.3 Information provided on each permit includes: how the permit is applicable to LFGTE
projects, the appropriate agency contact, a description of the permit, the statute/regulation, information
required and suggestions for a successful application, the application and review process, and the
review/approval period. For an overview of required permits, contact information, and length of the
review period, see Tables 2.1 and 2.2. The criteria for landfill gas collection and LFGTE systems are
provided in Table 2.3.

Summary of Permits
The principal permits required for LFGTE projects in Wisconsin are related to air quality and water quality
and are regulated by the Wisconsin Department of Natural Resources (DNR).

Permitting Assistance
There is a central group within DNR that is responsible for helping applicants through the permitting
process. This office, called the Division of Customer Assistance and External Relations, can be reached
at (608) 267-9700.
        3The permits contained in this handbook were suggested by state permitting agencies.
                                  A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential

Table 2.1
Summary Table of State Standards/Permits
Review Period
       Air Pollution Control
       Construction Permit
Department of Natural Resources,
Bureau of Air Management
(central or regional offices)
Central Office:
Department of Natural Resources
Bureau of Air Management
101 S. Webster Street
P.O. Box 7921
Madison, Wl 53707-7921
Phone: (608) 266-7718
Fax: (608) 267-0560
120 days for a
minor source
210 days for a
major source.
       Wisconsin Pollutant
       Discharge Elimination
       System (WPDES)
 Department of Natural Resources
 WPDES Permit Section
 Box 7921
 Madison, Wl 53707
 Phone: (608) 266-1494
 No statutory
 review period
       Landfill Gas Projects in Wisconsin

Table 2.2
Permit Approval Time-line
              Air Pollution Control
              Construction Permit
               'Discharge Permits
                                0      2
                                                      I       1
                                                     10     12
                                 Solid black line denotes the minimum review/approval period;
                                 gray line denotes the maximum review/approval period.

                               * There is no statutory review period for water permits,
                                 however an application must be submitted at least
                                 180 days before the  expected date of discharge.
                                 A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential

Table 2.3
       Summary of  Landfill Gas Systems Criteria
Type of Project
                 Specific Criteria
Landfill Gas Collection
and Energy System
                 All landfills which accept municipal solid waste shall be designed with an active gas
                 recovery system in order to efficiently collect and combust hazardous air contami-
                 nants. All gas recovery systems shall include the following design features, unless
                 otherwise approved by the Department of Natural Resources (DNR).

                  1.  Vertical gas extraction wells throughout the entire landfill with a maximum radius
                     of influence of 150 feet per well (lesser radii proposed for wells near the landfill
                     perimeter).  Alternative well spacings may be allowed if site specific data are
                     obtained through the performance of pump tests.

                  2.  All vertical gas extraction wells shall extend to 10 feet above the leachate collec-
                     tion system and shall be placed in 36-inch diameter boreholes.

                  3.  The pipe in the borehole shall be a minimum of 6  inches in diameter, Schedule
                     80 polyvinylchloride or approved alternate.

                  4.  The lower 2/3 to 3/4 of the pipe in the borehole shall be slotted or perforated.

                  5.  The backfill around the slotted or perforated pipe in the borehole shall  be 1-1 Vz
                     inch washed stone. The top 10 feet of the borehole shall be sealed.

                  6.  Each gas extraction well shall  have a flow control valve and sampling access port.

                  7.  The gas header system shall be looped to allow alternative flow paths for the gas.

                  8.  The minimum slope on the header pipe shall be 2% for pipes over the waste mass.

                  9.  Polyethylene pipe shall  be used for header and lateral pipes.

                 10.  The sizing of the blower, header, and laterals shall  ensure that a minimum vacu-
                     um of  10 inches water column is available in the header adjacent to those wells
                     located furthest from the blower.

                 11.  A drip  leg or equivalent shall be installed immediately before the  blower to sepa-
                     rate condensate from gas while preserving the suction at the wells while under
                     maximum operating vacuum.

                 12.  All condensate transfer piping and gas transfer piping located outside  of the lim-
                     its of waste shall be designed  to be fully encased in at least 2 feet of clay, dou-
                     ble-cased pipe or by using another approved secondary containment method
                     except for systems with multiple drip legs within the landfill where the bulk of the
                     condensate has been removed.

                 13.  The system shall be designed to have the ability to collect and treat  all conden-
                     sate, measure volumes, and collect samples.

                 14.  A flare shall be designed to meet the requirements of ch. NR 445.

                 A new or existing landfill must submit a plan of operation. The plan must contain
                 detailed information on the landfill gas collection system and the gas monitoring pro-
Landfill Gas Projects in Wisconsin

The remainder of Section 2 contains information about each of the permits required by the DNR for landfill gas-
to-Energy projects development. The information is organized in tables and each table contains the following
information about the subject permit:
    • Applicability  to Landfill Gas Projects                 • Application Process

    • Agency Contact                                   • Review Process

    • Description                                       • Review/Approval Period

    • Statute/Regulation                                • Fee

    • Information Required/Suggestions
                                   A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential     11

Table 2.4
       Air Pollution Control Construction  Permits
       (new/modified/reconstructed/replaced/relocated structures)
Applicability to
Landfill Gas Projects
                 Emissions from equipment used at LFGTE recovery facilities, such as internal com-
                 bustion engines, are subject to state air regulations. However, LFGTE projects may be
                 exempt from the requirement to obtain an air pollution permit if emissions are below
                 de minimis regulated levels.
Agency Contact
                 Department of Natural Resources (DNR), Bureau of Air Management central office
                 or regional offices (see Appendix A):

                 Department of Natural Resources
                 Bureau of Air  Management
                 101 S. Webster Street
                 P.O. Box 7921
                 Madison, Wl 53707-7921
                 Phone: (608) 266-7718
                 Fax: (608) 267-0560
                 Requires all new, modified, reconstructed, replaced, or relocated stationary air pollu-
                 tion sources to have an air pollution control  construction permit from the DNR unless
                 the source is exempt. This construction permit must be obtained by the facility prior
                 to beginning construction, modification, reconstruction, relocation, or replacement of
                 the source.
Statute/Regulation       Statutory Authority: Wisconsin Statutes (sections 144.30 to 144.426)

                         Administrative Code: Chapters NR 400 to NR 499
                 Applicant must supply the following information: description of emission controls,
                 attainment/nonattainment area status, description of project, all significant and
                 insignificant existing or proposed air pollution units, description of operations, and
                 activities at the facility.
Landfill Gas Projects in Wisconsin

Application Process
Submit application to the DNR's central office in Madison, Wl, or to the appropriate
regional office where the source is located, along with a $1,000 check, payable to
DNR (all or a  portion of the fee may be returned in the event that a permit is not
required). A pre-application meeting can be held with DNR Air Program staff if the
applicant has questions about the permit process.
Review Process
DNR has 30 days to determine whether the application is complete and can be
approved (120 days for a major source), followed by a 30-day public comment period.
If there is interest in a public hearing, it must be held within 60 days of the 30 day
comment period, after which DNR has 60 days to issue/deny the permit.
120 days for a minor source, 210 days for a major source.
Fee $1,000 must be submitted with the permit application. This application fee is an
advance on the total review fee. The total fee for reviewing and issuing a construction
permit varies from case to case and will be greater than $1,000.
                                   A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential

Table 2.5
       Wisconsin Pollutant Discharge Elimination System (WPDES)
       (Discharges to Surface Water or Ground Water)
Applicability to
Landfill Gas Projects
                 Some LFGTE projects treat condensate, which forms as water and other vapors con-
                 dense out of the gas steam due to temperature and pressure changes within the gas
                 collection system. Also, energy recovery projects may generate wastewater from sys-
                 tem maintenance and cooling tower blowdown. Such wastewater streams are typically
                 combined with landfill leachate  streams for treatment and discharge to surface waters
                 or ground waters. In addition, any project that disturbs more than five acres  needs a
                 construction site erosion control permit.
Agency Contact
                 Department of Natural Resources
                 WPDES Permit Section
                 Box 7921
                 Madison, Wl  53707
                 Phone: 608-266-1494

                 Construction Site Erosion Control Permit
                 Phone: 608-266-7078
                 Permits are required for discharges from point sources to surface waters of the state
                 and additionally to land  areas where  pollutants may percolate, seep to, or be leached
                 to groundwaters. Discharge permits regulate:

                     • direct discharge of any pollutant to any surface water

                     • discharge of any pollutant, including cooling waters, to any surface water
                       through any storm sewer not discharging to a publicly owned treatment works

                     • discharge of pollutants for the purpose of disposal, treatment, or containment
                       on  land areas including land disposal systems such as, but not limited to, pond,
                       ridge and furrow, land spreading, spray irrigation, and absorption pond systems

                 Where the discharge of  pollutants  is  by hauling, the applications must be filed by the
                 persons responsible for  the origin of the pollutants.

                 Discharges to publicly owned treatment works are exempt. The project developer,
                 however,  must notify the DNR and treatment works owner of the discharge, as well
                 as the quality and quantity of the effluent to be introduced into the treatment works.
                 Statutory Authority: Section 283.37, Stats.
Landfill Gas Projects in Wisconsin

Application Process      Applications can be obtained from the DNR, WPDES section, and filed with DNR.
                         Applications must be filed at least 180 days before the expected date of discharge.

Review Process          The DNR, WPDES Permit Section, reviews applications.
Review/Approval         Varies, as there is no statutory review period for water permits in Wisconsin.

Fees                     None
                                  A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential     15

Overview of Local Standards and  Permits
Within the framework of federal and state regulation, local governments will have some jurisdiction over
LFGTE development in nearly all cases. Typically, local permits address issues that affect the surrounding
community. These permits generally fall under the categories of construction, environment and health,
land use, and water quality/use. Local governments are also responsible for administering some permits
for federal and state regulations in addition to their own. For example, many local governments are
responsible for ensuring compliance with federal air quality regulations. It should be noted, however, that
some local standards and regulations are more strict than state or federal regulations.

Steps to Successful Local Permit Approval:
The following six steps will assist LFGTE project developers to achieve successful local permit approval:

    Step 1     Determine which local authorities have jurisdiction over the project site.

    Step 2     Contact local, city, and/or county planning and public works departments to obtain infor-
               mation about applicable permits and to discuss your plans. Meeting with agency staff to
               discuss the landfill gas project and required permits often helps expedite the permitting

    Step 3     Obtain essential information  regarding each permit,  including:

               • what information is required

               • the permitting process that should  be followed

               • time frames (including submittal, hearing, and decision dates)

    Step 4     Obtain copies of the regulations to compare and verify what is required in the permit
               applications. If they differ, contact the appropriate permitting agency.

    Step 5     Submit a complete application.  Incomplete applications typically result in processing

    Step 6     Attend meetings or hearings where the application will  be discussed to respond  to any
               questions that are raised. Failure to do so could result in delays.

Typical Local Permits
The table on the following page provides typical local permits and approvals required for LFGTE  projects.
 16     Landfill Gas Projects in Wisconsin

Table 3.1
Local Permits and Standards
Building Permit
          Most county/local governments require building permits for construction, which entail
          compliance with several types of building codes, such as plumbing and electrical. A
          typical building permit application may require detailed final plans for structures,
          including electrical and plumbing plans, floor layout, sewage facilities, a storm water
          drainage plan, size and shape of lot and buildings, setback of buildings from proper-
          ty lines and drain field, access, size and shape of foundation walls, air vents, window
          access, and heating or cooling plants (if included in the design).
Zoning/Land Use
          Most communities have a zoning and land use plan that identifies where different
          types of development are allowed (i.e., residential, commercial, and industrial). The
          local zoning board determines whether a particular project meets local land use
          criteria and can grant variances if conditions warrant. A landfill gas project may
          require an industrial zoning classification.
Storm Water
          Some local public works departments require a permit for discharges during con-
          struction and operation of a LFGTE project. Good facility design that  maintains the
          pre-development  runoff characteristics of the site will typically enable  the project to
          meet permitting requirements easily.
Solid Waste Disposal
          A LFGTE project may generate solid wastes, such as packaging material, cleaning
          solvents, and equipment fluids. If the landfill is closed, disposal of these solid wastes
          may be subject to review by a local authority.
          The primary types of wastewater likely to be generated by a LFGTE project include
          maintenance wastewater and cooling tower blowdown. The city engineer's office
          should be contacted to provide information about available wastewater handling
          capacity and any unique condensate treatment requirements or permits for landfills.
Fire Hazards
and Precautions
          The mix of gases in landfill gas has a moderate to high explosion potential; methane is
          explosive in concentrations of 5 to 15 percent in air. Because methane has the poten-
          tial to migrate from the landfill to on-site or off-site structures, it poses a significant pub-
          lic safety hazard. EPA requires that methane concentrations be less than 5 percent at
          a landfill property line, and less than 1.5 percent in a facility's structures. County regu-
          lations may call for even stricter standards to be observed at the  landfill.
           Most local zoning ordinances stipulate the maximum allowable decibel levels from
           noise sources. These levels vary depending on the location of the site. For example,
           LFGTE projects located near residential areas will likely have to comply with stricter
           noise level standards than projects located in non-populated areas.
                                  A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential


 Part  2: Incentive  Programs
Q    Overview of Federal Incentive Programs
        There are three federal incentive programs that may apply to LFGTE projects: the Section 29 Tax Credit,
        the Renewable Energy Production Incentive (REPI), and the Qualifying Facilities (QF) Certification. Each
        program is described below.
 1.1    Section 29 Tax Credit
        Developers of LFGTE projects who sell landfill gas to an unrelated third party may qualify for a tax
        credit under Section 29 of the Internal  Revenue Service (IRS) tax code. In order to take advantage of
        the credits, project developers may bring in an outside party when developing power projects. The
        Section 29 tax credit was established in 1979 to encourage development of unconventional gas
        resources, such as landfill gas. Section 29 tax credits are available through 2007 to landfill gas projects
        that have a gas sales agreement in place by December 31, 1996 and are  placed in service by June 30,
        1998. The credit has been extended several times by the U.S. Congress,  but there is no guarantee that
        these extensions will continue. The credit is worth $6.10 per barrel of oil-equivalent (on a MMBtu basis)
        and is adjusted annually for inflation.
 1.2    Renewable Energy Production Incentive (REPI)
        The Renewable Energy Production Incentive (REPI), mandated under the Energy Policy Act of 1992, may
        provide a cash subsidy of up to $0.015 per kWh to publicly owned qualified renewable energy sources,
        such as landfills, that began operation between October 1993 and September 2003.4 The Department of
        Energy (DOE) will make incentive payments for 10 fiscal years, beginning with the fiscal year in which
        application for payment for electricity generated by the facility is first made and the facility is determined
        by DOE to be eligible for receipt of an incentive payment. The period for payment under this program
        ends in fiscal year 2013.

        For further information, contact:
        U.S. Department of Energy
        Efficiency and Renewable Energy
        Forrestal Building, Mail Station EE-10
        1000 Independence Avenue, S.W.
        Washington, DC 20585
        Phone: (202) 586-4564
U.S. Department of Energy
National Renewable Energy Laboratory
Golden Field Office
Golden, Colorado 80403
Phone: (303) 275-4706
 1.3    Qualifying Facilities Certification
        LFGTE that generate electricity will benefit from Qualifying Facilities (QF) certification, which is granted
        through the Federal Energy Regulatory Commission (FERC). The following describes the benefits of QF
        status and the steps for applying for such status.
        4Final Rule Making, 10 Federal Register Part 451, July 19, 1995, Vol. 60, No. 138.

                                  A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential     19

        The Public Utility Regulatory Policies Act (PURPA)—one of five parts of the National Energy Act of 1978—
        was designed to promote conservation of energy and energy security by removing barriers to the
        development of cogeneration facilities and facilities that employ waste or renewable fuels. Such facilities
        are called Qualifying Facilities, or QFs. Under PURPA, utilities are required to purchase electricity from
        QFs at each utility's avoided cost of generating power. PURPA provides that a small power production
        facility, such as a LFGTE project that meets FERC standards, can become a QF.

        In order to apply for QF status, applicants must prepare either (1) a Notice of Self-Certification, which
        asserts compliance with FERC's technical  and ownership criteria, or (2) an Application for Commission
        Certification of Qualifying Status, which requires a draft Federal Register notice  and which provides actu-
        al FERC approval of QF status. In either case, the applicant must also file Form  565, which is a list of
        questions about the project, and must pay any filing fees associated with certifications, exemptions, and
        other activities. FERC will provide the QF "Info Packet" that describes the necessary steps, requirements,
        and background information. After submittal of the initial application, further justifications and submittal
        of information may be required.

        For the QF Info Packet and applications, contact:

        Federal Energy Regulatory Commission
        Qualifying Facilities Division
        825 North Capitol Street, N.E.
        Washington, DC 20426
        Phone: (202) 208-0571
20      Landfill Gas Projects in Wisconsin

Overview of State Funding  Programs
The Renewable Energy Assistance Program (REAP) is administered by the Wisconsin Energy Bureau
and supports the cost-effective use of renewable energy in commercial and small industrial applications.
Technical assistance cost sharing grants of $15,000 are available on a competitive basis for feasibility
studies, design, engineering, and testing. Construction grants up to $75,000 are available on a first-come,
first-serve basis each May. Projects must meet a 10-year payback requirement and applicants must be
businesses with gross sales less than $100 million per year, municipalities, nonprofit organizations, or
tribal governments. LFGTE projects are eligible. Contact:

Alex DePillis
Wisconsin Energy Bureau
Phone: (608) 266-1067
Fax: (608) 267-6931
E-mail: alex.depillis@doa.state.wi.us

"Energy for Tomorrow"  is Wisconsin Electric Company's green pricing renewable energy program. The pro-
gram solicits renewable energy projects to sell electricity to Wisconsin Electric customers at rates above the
normal electric rates which subscribers voluntarily pay to encourage renewable energy projects. Contact:

Philip Theisen
Wisconsin Electric Power Company
Phone: (414)221-2473
Fax: (414) 221-3853
Home Page: http://www.wisenergy.com
                          A Primer on Developing Wisconsin's Landfill Gas-to-Energy Potential      21

Appendix A: State Contacts
Department of Natural Resources

       Central Office
       Air Quality
       Bureau of Air Management
       P.O. Box 7921
       Madison, Wl 53707
       Phone: (608) 266-7718
       Fax: (608) 267-0560

       Water Quality
       Bureau of Watershed Management
       P.O. Box 7921
       Madison, Wl 53707
       Phone: (608) 267-7694
       Fax: (608) 267-7664

       Regional Offices
       Northern Region
       810 W. Maple Street
       Spooner, Wl 54801
       Phone: (715) 635-2101
       Fax: (715)  635-4105


       P.O. Box 818
       Rhinelander, Wl 54501
       Phone: (715) 365-8900
       Fax: (715)  365-8932
                                                   West Central Region
                                                   P.O. Box 4001
                                                   Eau Claire, Wl 54702-4001
                                                   Phone: (715) 839-3700
                                                   Fax: (715) 839-6076

                                                   Northeast Region
                                                   1125 N. Military Avenue
                                                   P.O. Box 10448
                                                   Green Bay, Wl 54307
                                                   Phone: (414) 492-5800
                                                   Fax: (414) 492-5913

                                                   Southeast Region
                                                   2300 N. Dr. Martin Luther King, Jr. Drive
                                                   P.O. Box 12436
                                                   Milwaukee, Wl 53212
                                                   Phone: (414) 263-8500
                                                   Fax: (414) 263-8716

                                                   South  Central Region
                                                   3911 Fish Hatchery Road
                                                   Fitchburg, Wl 53711
                                                   Phone: (608) 275-3266
                                                   Fax: (608) 275-3338
Landfill Gas Projects in Wisconsin