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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 0f Waste Processing Technologies <br />t��hnokxz��, including capital <br />The economic characteristics of the waste processing ~/ <br />and operating costs and risk, are sumnnnah Generally, �adin�mb|�Ar�inAppandi�A. �n�na||y, <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 m 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 recyc|ab|es. 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 pnocu rem ent/deve|oprnentand 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 VVTE strategy for the future management of �o MG\N that is not <br />neduced/' used/recvced, a representative preliminary project pro forma Operating <br />Statement was prepared. By deriving an order-of-magnitude cost per ton for the <br />�ir and disposal of»4SVV using a waste processing technology, the County <br />processing p <br />can oo-- a -- e 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/watemva|| 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 VVTE 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 ofsingle-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 />