Leslie Kochan, Waste Reduction Specialist, NW region, Oregon DEQ

Please reference the attached materials, as required. I am asking the DEQ for a
formal statement which clarifies the “additional credit” available for eliminating
the methane plume from a landfill and the emissions from the exhaust stream.

The DEQ recognizes maximizing the benefit of recycling solid waste, wastewater
sludge, and biomass. The DEQ’s “additional credit” assessment is currently at
odds with the IRS tax code. The IRS tax code repeals the “tax exempt” bond
financing safe harbor for infrastructure based upon recycling volumes. According
to the IRS tax code, waste recycled above 35% by weight or volume, is treated
as a commodity. Any political subdivision (city, county, wasteshed, municipal
service district, utility district or regional waste authority in the state) utilizing tax-
exempt bond financing of landfills or waste water treatment facilities recycling
above that threshold indicates an IRS finding that the political subdivision is
engaged in non tax-exempt recycling.

We suggest that the best way for a political subdivision to comply with Oregon
law and the IRS tax code is to transfer title through an exchange (“goods or
services for title”). Our solution is to offer a tolling arrangement (transfer care,
custody, and control of the recyclable materials for value added goods and
services in the form of other valuable consideration) at the point of custody
transfer. Political subdivisions won’t “give” away a commodity without an
exchange (ORS) of goods and services.

Our solution for attaining maximum compliance while generating the “greatest
additional credit” from DEQ enables our facility to assign the additional credit to
the political subdivision. The DEQ recognizes that all recycling/remediation
efforts are not equal. Rewarding better environment attributes should be
awarded (additional credits). From DEQ’s publication:

2% of composting should translate to 2% additional credit.

These “additional credits” can be evaluated and quantified through a full audit
trail of real time data collection. A DEQ representative should address regular
meter settlement dates at the recycling facility at least once per quarter.
Calibration of test equipment and certifiable results assure each community of
“maximum benefits” by weeding out less capable technologies.

All impacts should be measured. Notably the storm water effluent parameters
(outgassing and leaching or seepage) and the volumes treated. The net results
prescribe how the total volumes are diminished (variable data). A comprehensive
assessment for additional credits is factually predicated. SCADA provides a
public record for awarding additional credits from all point source pollution or
waste streams.

Separating the combustible waste at the MRRF is the least level of compliance
possible. After recyclables and non-combustibles are removed the remaining
fractions of solid waste, biomass, plastics, and sludge can be incinerated and
reduced to ash, electricity, and exhaust gases. The wastesheds that burn
processed waste can recycle by conversion near 100% of the remaining
combustibles. That would leave no left over portions to outgas or seep via landfill
entrainment.

A ZESC process should earn additional credit over traditional waste-to-energy

conversion (i.e. Covanta)

1) Turning the ash into “the greenest brick” or foamed cellular

concrete.

Covanta’s facility in Brooks entrains their ash in the landfill. Our process utilizes
that ash as building/construction materials.

2) Converting the CO2, NOx, and SOx into “near zero” emissions.

Covanta’s facility in Brooks emits gaseous effluent from smokestacks. Our

process does not require a smokestack. What “additional credits” would a ZESC
earn for not emitting Hg, As, or 50 micron particulates like coal-fired emissions?

3) Eliminating the invisible methane plume rising above the landfill.

The waste that the Metro wasteshed transfers out to the Arlington Landfill
outgases methane. Our process prevents landfill oxidation and decomposition
that produces methane emissions. RPS enables “greentags”, “carbon offsets” or
RECs to be tied to electronic measures of “additional credits” issued by the DEQ
per pound/ton or KWh.

4) Reducing/Eliminating the threat of a cracked HDPE liner that might

allow seepage or leaching into the fresh water aquifer.
By diverting combustibles, we assist the landfill in maintaining integrity of their
liners. Extending the landfill life and allowing excavation/remediation of facilities
and testing or monitoring conditions. What credit will the DEQ award for
preserving our fresh water aquifer from invasion?

Our process deserves “additional credit” by providing direct SCADA telemetry

delivered to the DEQ which enables remote monitoring of the critical variables:

A. Scale weights of all deliveries.

B. Exhaust gas emissions data with pre-set alarms
C. Monitoring by GC the methane out-gassing profile of the landfill
D. Ground water sampling and testing.

We have proposed to underwrite the equipment costs and installation costs

rather than requesting DEQ/taxpayer laying out capital, assets, or credit.

Please describe the DEQ’s additional credit criteria that would be awarded by the
DEQ for results confirmable as described.

Sincerely,

Marni Zollinger
ZESC Developer

Cc:

METRO Council
Jessica Zulofo, Director, USDA
Representative Nick Kahl
State Senator Laurie Monnes Anderson
Mary Gautreux, State Director for Senator Wyden