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5.0 Opinion on Economic Feasibility, Effectiveness, <br />and Environmental Issues of Waste Processing <br />Technologies <br />5.1 Economic Feasibility of Waste Processing Technologies <br />The economic characteristics of the waste processing technologies, including capital <br />and operating costs and risk, are summarized in Table A -2 in Appendix A. Generally, <br />capital cost for the proven technologies are in the range of $150,000 to $250,000 <br />per ton of installed capacity, depending on size and plant configuration. Operating <br />costs are in the range of $35 to $60 per ton processed, not including residue <br />disposal, again dependent on size, equipment and operating profile, and assuming a <br />private operator. These figures are based on industry rules -of- thumb, recent <br />operating results from selected facilities, surveys of industry professionals and <br />related references. <br />A significant factor in the net operating costs for these facilities is revenue from the <br />sale of recovered energy and recyclables. The energy revenue is a function of <br />negotiations between the facility operator and the energy markets, typically a utility, <br />and may include, besides a power rate, revenue for capacity and a requirement for <br />standby power. Capital equipment necessary for utility connections can also be part <br />of the negotiations, and the actual figures have to be developed and refined for <br />specific sites and requirements during a procurement/development and negotiation <br />process. <br />5.1.1 Typical Waste Processing Technologies Project Economic <br />Estimates <br />To provide the County with an idea of the project economics that it could expect <br />from adopting a WTE strategy for the future management of its MSW that is not <br />reduced /reused /recycled, a representative preliminary project pro forma Operating <br />Statement was prepared. By deriving an order -of- magnitude cost per ton for the <br />processing and disposal of MSW using a waste processing technology, the County <br />can compare the cost of developing new landfill capacity or other means of disposal <br />after the existing landfill is filled to capacity. <br />The technology chosen for modeling was mass burn /waterwall incineration, the <br />technology with the most extensive track record at the size and scale needed to <br />serve the County. The nominal size of the facility selected is 300 TPD, making it one <br />of the smallest WTE plants in the United States. (There are two mass -burn facilities <br />in that size range - Commerce, CA and Wallingford, CT.) This assumes that Orange <br />County would be able to partner with an adjacent community. <br />The procurement method assumed for the analysis was a design - build- operate <br />public - private partnership, with public ownership and financing through 100 percent <br />tax - exempt revenue bonds. This structure is the one recommended by numerous <br />solid waste financing professionals and experienced facility owners throughout the <br />U.S. This method gives the County the benefit of single- source private involvement <br />in the construction and long -term operation of the facility, while retaining the <br />advantages of public ownership. Such advantages include: <br />GBB /C08027 -01 23 August 15, 2008 <br />