2008-010 Solid Waste - MOU with UNC Chapel Hill Landfill Gas Recovery Process Options

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~,~-~ ili s~o~ 6 ~~ Memorandum of Understanding • between The University of North Carolina at Chapel Hill and Orange County, North Carolina Goals of the Parties: • The University of North Carolina at Chapel Hill (University), a premier public research university, is committed to addressing the problems and priorities of the citizens of North Carolina and to establishing a leadership position among its peers with respect to climate change and sustainability. • The University's Chancellor has signed the American College and University Presidents Climate Commitment, pledging that the University will achieve climate neutrality as soon as possible. • The University has begun the development process for a new campus, Carolina North, which it desires to be climate neutral from inception. Use of landfill gas as an alternative fuel for both thermal and electric energy production is an important component of achieving this goal. • Orange County is committed to addressing the problems and priorities of its citizens, and to taking a leadership role among local governments with respect to climate change. • Orange County has joined ICLEI -Local Governments for Sustainability and is leading the climate change effort for local governments in Orange County. • • Orange County desires to eliminate the odor and methane gas released from its Eubanks Road Landfill, and to create an additional revenue stream for the County, by utilizing the gas for energy or other beneficial purposes. • The University and the County desire to work together to explore the feasibility, and if feasible the joint timely implementation of, a landfill gas collection and use system that will manage this waste stream in a sustainable manner that benefits the County, the University, the community, and the environment. Responsibilities of the University • Further refine the gas production estimates included in the March 2006 report, Landfill Gas Recovery Feasibility Study, by Olver Incorporated. • Identify alternatives for use of the gas by the University for energy or other beneficial purposes, it being understood that flaring of the gas may be the best short term alternative to quickly reduce odor but is not an acceptable final outcome. The length of the anticipated short term will be defined as part of the proposed project schedule in the final agreement negotiated between the University and the County. Anticipated alternatives to be examined are as follows: o Gas to existing Airport Drive Complex at Carolina North for Thermal and/or Cogeneration Use o Gas to existing UNC Cogeneration facility for use as a cofiring fuel in the boilers o Electric Generation for the Airport Drive Complex at Carolina North • Assess the economic feasibility of the identified alternatives and identify possible approaches to structuring a mutually satisfactory business relationship between the • University and the County. Memorandum of Understanding Page 1 of 3