Date: September 19, 2011
Source: Organic Energy Corporation
The City of Dallas, Texas is engaged in a debate over the city's plan to employ flow control to direct all residential and commercial waste to its own landfill as a means to enhance its recycling and energy recovery programs. Meanwhile, an innovative recycling company is proposing to build and operate its own $100 million recycling facility located at the city's landfill that would capture 95 percent of the recyclable material received. The company, Organic Energy Corporation (OEC), said it could finance the facility with the city's commitment to provide the waste. In return, it would share revenues with the city on a 50/50 basis. That could equate to between $5 million and $20 million annually in added revenue for the city. "Dallas brings 6,000 tons of garbage every day to the Landfill", says Barney Gorey, VP of Public Affairs for OEC. "Even with the curbside recycling program over 3,500 of those tons are recyclable products which can be captured and sold." OEC's facilitywould employ existing technologies in configurations modeled after plants in Europe. The company also said it would create jobs and stimulate the local economy perhaps acting as a laboratory for advanced materials recovery and energy recovery techniques.
Critics of the proposal, led by The National Solid Wastes Management Association (NSWMA), take issue with the city's plan to employ flow control, arguing that it is tantamount to a "ghost tax" in the form of higher hauling and disposal fees that will result. NSWMA argues that "flow control would prevent commercial waste in Dallas from being equitably distributed and disposed of near the areas where it is created and in the most cost efficient manner possible," said Tom Brown, president of the association's Texas Chapter. The city's flow control proposal aims to mandate 900,000 tons of additional commercial waste be delivered to its landfill in order to fund development of its Southern region, enhance its operations and increase its production of methane gas powering its gas-to-energy project. NSWMA says this would create inefficiencies by directing waste away from a dozen or so area landfills that could be closer, and in turn, increases truck traffic, fuel use, pollution, etc.
See also: "Industry Group Urges City of Dallas Not to Use Flow Control," (www.wasteinfo.com/news/wbj20110816F.htm).
PRESS RELEASE
September 19, 2011
Organic Energy Corporation (OEC) Seeks Permission to Build Recycling Facility at the McCommas Bluff Landfill
Organic Energy Corporation (OEC) is seeking permission from the City of Dallas to build a multimillion dollar recycling facility at the McCommas Bluff Landfill. The privately owned and operated facility would capture up to 95% of the recyclables available from the city's garbage, while bringing between $5-20 million annually to city coffers. The first facility represents a nearly $100 million investment directly into South Dallas and would create a public/private partnership, while the City's only input would be a commitment to provide the garbage and lease some land.
"Dallas brings 6,000 tons of garbage every day to the Landfill", says Barney Gorey, VP of Public Affairs for OEC. "Even with the curbside recycling program over 3,500 of those tons are recyclable products which can be captured and sold. The paper, plastic and metals are worth millions and can begin to bring real green jobs to Dallas," he says.
Those jobs number 100 per facility and range from non-skilled to semi-skilled at better than minimum wage according to the company. "With 3 shifts running 24/7, we need local labor," says Gorey. "These are not desk jobs but manual labor with a chance for training and the ability to move up in the organization. We need the workers from South Dallas as much as South Dallas needs us," he says.
The facility uses people and equipment to mechanically sort garbage straight from the route truck. The system is modeled after plants in Europe where recycling and waste minimization have been necessary for decades. The company also has a reference facility in Roseville, California it designed, which has been operating for over 17 years.
"Curbside Recycling is a bad joke in this country," says Gorey. "We love to think we make an impact, but Dallas actually spent $12 million on curbside last year to resell $2 million worth of recyclables." The truth is in the numbers according to the company. A multi-patent pending mechanical separation system uses proven technology to make all the items homogenous, while separating the recyclables from the food and green waste and inert materials. The system has a comprehensive performance guarantee by the manufacturers and systems integrator, backed by a major insurance company. It's not a box, it's cardboard and it's not a milk jug it's plastic to be bundled and sold. The plastics, papers and metals are baled for resale while the food and green wastes are put into large tanks to gather the methane they make. "Just like the methane system currently at McCommas," says Gorey, "the methane is captured and can be used for many different products, or simply cleaned and sold as natural gas, again just like they do at the Landfill."
The company says it can finance the entire operation from the waste generated by the city and revenue share its profits on a 50/50 basis with Dallas. According to Gorey, the total monies given to the city range between $5 million and $20 million annually for a 20-year contract.
"Depending on the waste brought in and the commodity markets for metals, papers and plastics, we can all directly benefit from this facility," says George Gitschel, CEO. "Then we can look at manufacturing markets for the items we recover, like cans to metal or recycled paper processed to new paper. Those are real green jobs," says Gitschel.
The company also says resource flow control can add to the total of recycled products. "The extra 5,000 tons daily being buried in private landfills has incredible value", according to Gitschel. "Millions of dollars of Dallas revenue is being needlessly buried in private landfills, when we can capture that value and give it back to the citizens. It's their money," he says.
For more information, contact:
Organic Energy Corporation
Barney Gorey (bgorey@organicenergycorp.com)
Tel. 214-347-0539
2101 Cedar Springs Rd. Suite 1050, Dallas, TX 75201
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PRESS RELEASE
September 19, 2011
NSWMA Says Southern Dallas Recycling Proposal Deserves Close Scrutiny
Proposal Shows Flow Control Ghost Tax Unnecessary for Recycling
A news release touting a proposed $100 million recycling facility at the McCommas Bluff landfill makes it clear that the developer does not require a flow control ghost tax to build the project.
"This supports our position that a flow control ghost tax is unnecessary," said Tom Brown, Texas Chapter Chairman of the National Solid Wastes Management Association. "A flow control ghost tax will cost Dallas businesses $19 million a year and make the city less competitive in the marketplace for job growth and business expansion."
"The claims made in the Organic Energy press release should be fully vetted and compared to proposals from other leading firms, which are not at the table," said Brown. "Ironically the city has used information from these firms to back a push for recycling but has never asked them for specific proposals on how to best manage the city's waste stream."
"There are other options available that would provide income for the city more quickly, guarantee income, create job opportunities in Southern Dallas and would not be subject to years of costly litigation," said Brown. "Each proposal needs to be spelled out in a written contract so that guarantees in writing and the financial strength and experience of the bidders can be fully vetted."
For example, the Organic Energy press release only offers to share "profits" with the city. That is not a guarantee of income. The company does not presently own or operate any facility, and the plant in Roseville, California it has used as an example charges a tipping fee that is more than triple the amount currently charged in Dallas and only recycles 26% of the waste stream. "A substantially higher tipping fee would cost Dallas businesses tens of millions of dollars," said Brown.
"The City of Dallas cannot make an informed decision on a multi-million dollar issue based on a press release, a couple of PowerPoint slides or visits to one or two plants selected by a vendor," said Brown. "Based on Organic Energy's claims of processing capacity it would cost $400 million rather than $100 million to build the facilities with the capacity necessary to meet the targets described in the press release."
"In addition, Dallas should be very careful about obligating its waste stream for 20 years," said Brown. "A wrong decision could tie the city up in court for years and put a complete stop to any recycling or economic development efforts."
"The NSWMA is asking the city council to defer a decision on the flow control ghost tax and allow members to present other proposals that would generate the income the city needs in the short term and millions of dollars in additional cost savings over the next decades," said Brown. "Let's work together to make the right decision for the citizens of Dallas."
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