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By
Thomas
B. Hadden III
On October
1, I was honored to receive a call from John Skinner,
chief executive officer of SWANA, asking if I could
attend a summit at the White House two days later to
discuss the local positive impact of the proposed landfill
gas (LFG) tax credits in the energy bill, HR 6, currently
in conference committee. I quickly made arrangements
for the trip. I and 10 others from across the country
were to meet with Secretary of Energy Spencer Abraham
and White House Chief of Staff Andrew Card.
Each of us
was given a few minutes to discus our particular issue.
My focus was to bring home how LFG tax credits have
a direct effect on individual facilities - in this
case, Metro Waste Authority (MWA) in Des Moines, IA.
Since 1994, MWA has had a successful public/private
partnership with Waste Management of Iowa Inc. and MidAmerican
Energy to run our Metro Methane Recovery Facility. This
partnership is a direct result of the now-expired LFG
tax credits. The facility uses the methane generated
by the decomposing garbage in our Metro Park East Landfill
to create electricity. (Last fall, this landfill received
SWANA's Gold Award for Landfill Management Excellence,
due in part to the success of our Metro Methane Recovery
Facility.) The plant now is running at capacity, producing
6,400 kW of energy and consuming 3.2 million ft.3 of
LFG per day, or the equivalent of 112,000 barrels of
oil per year. The methane facility provides a consistent,
reliable source of energy for approximately 8,000–10,000
residents, businesses, and schools in the surrounding
area.
Since coming
on-line, the facility has had a reliability of more
than 99.2%, which clearly is one of the best dependability
ratings of all alternative energy sources. MWA is very
proud to be a leader in this industry, and we are glad
to work with SWANA and others to promote this little-discussed
domestic energy source.
Without
the LFG tax credits included in HR 6, future expansion
of our generating facility will not be cost-effective,
making it difficult to justify the needed capital investment
for such an expansion. As a result, we might need to
consider alternatives, such as flaring off the gas.
No pun intended,
but what a waste! In the state of Iowa, currently there
are three sites that were made feasible by the last
round of tax credits. There are 12 sites across the
state and more than 600 across the country that could
come on-line with the expansion of Sections 45 and 29
tax credits.
So why isn't
Congress acting to expand them? Cost, of course. If
you look at a total cost/benefit allowance, however,
LFG tax credits are a very effective use of alternative
energy. The beauty of utilizing LFG is that it is a
dependable energy source that takes a greenhouse gas
and produces energy via either generation and/or direct
use. The benefits brought by the reduction of the amount
of greenhouse gas produced by those 600 potential facilities
are the same as planting 18 million ac. of forest per
year.
I had the
opportunity to remind administration representatives
why it's important for Congress to expand LFG
tax credits in order to help diversity our domestic
energy resources. I had the pleasure of receiving a
reply to my thank-you e-mail that confirms the administration
does support the inclusion of LFG tax credits in the
energy bill. Whether methane is captured and used or
simply flared, landfills across the country will continue
to create this gas. By using the methane gas generated
from landfills to create electricity and supplement
our residential and commercial usage, we can indeed
take lemons and make lemonade.
Thomas
B. Hadden III is executive director with Metro Waste
Authority in Des Moines, IA, and a member of MSW Management's
Editorial Advisory Board.
MSW
- January/February 2004
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