Landfill Disposal Capacity Value using Excel Model

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Maria Skinner
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1 A&WMA and OENIA 2015 Waste Management and GHG Reudction Conference Toronto, Ontario, October 7, 2015 Landfill Disposal Capacity Value using Excel Model Tian Gou, P.Eng.

2 AGENDA Full Cost Accounting and its application Methodology Model structure Sensitivity Analysis Limitations of the Model Example Model Screenshots Questions and Answer 2

3 US EPA Guideline on FCA (1997) Whole-picture view On-going basis 3

4 Full Cost Accounting Principles US EPA Guideline (1997) A systematic approach for identifying, summing and reporting the actual costs of solid waste management. Three major types of direct costs: Up-front costs Operating costs Back-end costs FCA can assess Overall costs of the full municipal solid waste (MSW) services One or more components of MSW services 4

5 FCA Municipal Solid Waste Management Source: US EPA (1997) 5

6 FCA Landfill Disposal Path Source: US EPA (1997) 6

7 Benefits of Full Cost Accounting Provides a true cost of landfill disposal Helps local governments identify inefficiency and cost saving opportunities in the landfill disposal path Helps local governments improve methods of evaluating privatization initiatives Helps local governments adjust the mix of MSW programs accordingly (if FCA analysis is performed for each MSW services) Makes it possible to benchmark results with municipalities with similar size and operation levels 7

8 Methodology Model designed for use by municipal governments Cost-based approach Municipality funded service to the tax-paying public on a cost recovery basis Break-even analysis revenue received = costs. tipping fee charge that could minimize the net operating cost at the end of the landfill life (i.e., end of the post closure period). a break-even cost at the year when garbage acceptance began inflated and applied against the actual and forecast tonnages sufficient to fund all expenditures identified for garbage disposal at the landfill 8

9 Methodology Model base year costs Obtained from accounting records Future costs and historical costs Financial projection Extrapolated based on inflation trends as posted by Statistics Canada Includes costs directly contributing to or supporting the disposal of garbage Collection, transfer station, landfill disposal, closure and post closure Cost allocation between disposal and diversion for shared infrastructures 9

10 Golder s Model Providing municipalities a thorough and user-friendly electronic spreadsheet model template that: Allows input of relevant and site specific cost data Allows selecting from various option buttons, and drop-down menus Calculates the life cycle cost of disposing of one tonne of garbage 10

11 Methodology Model Structure 11

12 Scenario Analysis Disposal Tonnage Change one of the following input parameters Tonnage for Model base year Diversion rate for Model base year Garbage generation growth rate Diversion growth rate Cost allocation percentage Change one of the following input parameters Current and future allocation rates to disposal The onset years for future allocation rate 12

13 Contribution Items Scenario Analysis Excluding one of the following at a time in the break-even analysis Collection Transfer station Landfill operations Monitoring 13

14 Limitations of the Model Assesses only the landfill disposal stream Model input does not include the following costs: Opportunity costs of land Remedial action costs Externality costs Model results does not include the following: Benefits/costs or levies related to waste diversion or recycling initiatives Recovery of cost shortfalls from previous undercharging (if applicable) Taxes Facility owners should not solely rely on the Model output to develop a fee structure charged at the gate of the landfill 14

15 Excel Model Input 15

16 Excel Model Input 16

17 Excel Model Costs 17

18 Excel Model Closure & Post Closure 18

19 Excel Model Break-even Analysis 19

20 Excel Model Model Output Summary 20

21 Thank You! Questions? 21

Amortization Cost. Depreciation. Overhead. Making Solid (Waste) Decisions With Full Cost Accounting 1EPA

Amortization Cost. Depreciation. Overhead. Making Solid (Waste) Decisions With Full Cost Accounting 1EPA United States Environmental Protection Agency EPA530-K-96-001 June 1996 1EPA Solid Waste and Emergency Response (5306W) Making Solid (Waste) Decisions With Full Cost Accounting Amortization Cost Depreciation