Waste Delivery & Project Governance Issues
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1 Waste Delivery & Project Governance Issues Sara Bergan Kevin Johnson Stoel Rives LLP 1
2 Metro Waste Processing Statute Minn. Stat Restricts disposal of unprocessed Mixed Municipal Solid Waste (MMSW) unless it has been certified as unprocessible MPCA s 2011 Revised Policy Plan Maximize use of existing resource recovery facilities Begin enforcing Criteria for determining when MMSW unprocessible 2012 MPCA Report to Legislature on Landfills not in compliance with restriction on disposal Proposes amending landfill permits to restrict landfills from accepting unprocessed metropolitan MMSW 2
3 Metro Statute Litigation : WM Petition for Declaratory Order Prohibiting MPCA Enforcement : ALJ Dismisses Petition Determines MPCA strategy is a rule but is exempt from rulemaking procedure MPCA Policy Plan is exempt from rulemaking MPCA action merely enforces : Court of Appeals Affirms ALJ : WM Petitions MN Supreme Court : Supreme Court Deadline to Grant or Deny 3
4 Implications of Enforcement How Could Enforcement Impact the Newport RDF Facility? Would Appear to Have Potential to Increase MMSW Delivered However, MPCA to Enforce Only at MN Landfills Ramsey-Washington: ~80,000 tons MMSW Landfilled 36,000 (Advanced: Eau Claire, WI Facility) 22,000 (WM: Elk River and Spruce Ridge Facilities in MN) 22,000 (Republic: Pine Bend Facility in MN) Current Out-of-State Landfilling Could Continue Potential to Increase Out-of-State Landfilling Depending Upon Waste Management and Republic Response What s Next? 4
5 Waste Designation Benefits Capture 80,000 Tons MMSW Currently Landfilled More Focused, Predictable Long Range Planning Mitigate Risks of Private Sector Ownership Changes More Transparent Financing of Waste Management Services Potential for Increased Waste Reduction & Recycling Other Environmental Benefits of More Robust System, Such as Greenhouse Gas Reduction 5
6 Waste Designation Costs Cost and Risk of Public Ownership & Operation Potential Route Adjustments for Haulers Landfills Currently Receiving Waste Will Be Impacted Hauler Opposition and Potential Legal Challenges 6
7 7
8 Waste Designation Process Considerations: Joint Designation Plan Designated Service Areas Wastes Subject to Designation Designated Facilities/System Consistent MPCA Policy Plan, Master Plans and Designation Plan Potential Continued Use of Hauler Agreements 8
9 Governance Options Two Primary Options: Joint Powers Board (Minn. Stat ) Ramsey-Washington is currently utilizing Waste Management District (Minn. Stat. 115A ) Entirely new undertaking; Statute not yet used MPCA has not promulgated required rules 9
10 Governance Options Formation Organization Characteristics Powers Revenue & Debt Authority Employment Joint Powers Known, Low Risk, Opportunity to Revise County Board Involvement Mandatory Counties Can Delegate Powers Held in Common and Subsequently Modify Counties Can Delegate Bonding and Service Charge Authorities Likely Involve County Employment System Liability Liabilities of Joint Powers Could Reach Back To Counties District Complex and Time Consuming; Higher Risk Separate and Distinct Governmental Entity; Pros and Cons Once Power is Ceded to District Would Be Difficult to Retrieve Similar Employees Directly Employed by District 10 Liability Resides with District
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