January 29, 1998

To: Works and Utilities Committee

From: M.A. Price

Interim Functional Lead for Solid Waste Management

Subject: Long-Term Solid Waste Disposal Planning

Recommendation:

That this report be received for information.

Council Reference/Background/History:

A request was made at the January 14, 1998 meeting of the Works and Utilities Committee for an information report regarding the contract with Browning-Ferris Industries Ltd. (BFI) for the disposal of Toronto=s solid waste at BFI=s Arbor Hills landfill, Michigan, U.S.A.

A report regarding this contract is listed on the agenda for the February 11, 1998 meeting of Works and Utilities Committee. This report before you provides information regarding past efforts to attain long-term disposal and the current planning process for long-term disposal.

The previous siting processes for disposal capacity have been: two long term landfill searches under Metro's Solid Waste Environmental Assessment Process (SWEAP, 1986-1992); one Metro interim site search under the Solid Waste Interim Steering Committee long-term and interim contingency siting processes (SWISC, 1989-1990); the Provincial Interim Waste Authority (IWA, 1992-1995), including the investigation with the vertical expansion at the Keele Valley Landfill Site; and Metro's Adams Mine Site Assessment Process (AMSAP - 1995). With the exception of the SWISC long term process, these processes were similar in that they contemplated a publicly-owned waste disposal system, however, they did not identify a long-term solution.

In 1995, Metro Council, as part of the AMSAP process, requested the identification of private sector waste disposal capacity through a Request for Proposals process as an economic comparison against the cost of a publicly owned site at Kirkland Lake, Ontario. This undertaking identified sufficient privately-owned licensed disposal capacity to meet Metro's future needs, once Keele Valley is closed. Although this capacity exists primarily in the United States, opportunities for the development of capacity in Ontario were also identified, including the potential for public-private partnerships.

In December 1995, Metro Council, after considering both the public sector option at the Adams Mine Site and the private sector proposals, did not renew its Option of Purchase and Sale on the former Adams Mine Site near Kirkland Lake, Ontario, and directed staff to pursue the private sector option.

Subsequently, on December 18, 1996, Metro Council approved a contract with BFI for the shipment of solid waste to the Arbor Hills Landfill in Michigan, U.S.A. Under this contract, services commenced on January 1, 1998, for a three-to-five-year term with a guaranteed annual minimum tonnage of 250,000 tonnes and a maximum of 500,000 tonnes. At the 250,000 tonne level of export of solid waste over the minimum three-year period, the expected life of Toronto's Keele Valley Landfill Site will be extended by one year to the year 2002. This date is being used for planning purposes as representing the closure date of the Keele Valley Landfill Site.

At the December 18, 1996 meeting, Metro Council also authorized the Commissioner of Works to prepare an initial planning framework for the development of a draft Terms of Reference for an environmental assessment of the disposal of residual solid waste, for the period commencing with the closure of the Keele Valley Landfill Site and expiry of the BFI contract.

Metro Council's decision to engage in the development of the EA Terms of Reference arose from an amendment to the Environmental Assessment Act (the "EA Act") by Bill 76, the Environmental Assessment and Consultation Improvement Act, 1997. The amendment addresses the possible contracting out by municipalities of solid waste for final disposal (the municipal waste disposal clause).

This new provision provides that designated municipalities (by regulation) cannot proceed to contract for such purpose without first submitting an environmental assessment and receiving approval to proceed under the EA Act. Under the new provisions of the EA Act, the first key activity to initiate an environmental assessment is to prepare, in conjunction with public consultation, Terms of Reference for approval by the Minister of the Environment.

While Metro Toronto was not designated under the EA Act, it proceeded in its approach to "contracting out" as if it had been so designated. This is a more prudent course to take for a large undertaking, rather than to wait and see if designation will take place at the end of the day. In addition, such an approach is in keeping with the spirit of the provision that such decisions should be made in a responsible manner. Therefore, planning proceeded under the EA Act, as amended by Bill 76, to prepare EA Terms of Reference for approval by the Minister preliminary to the submission of an environmental assessment.

The approach taken by the draft EA Terms of Reference is to solicit proposals in response to the issuance of a Request for Proposals (RFP) in a manner that provides flexibility in dealing with future needs. The RFP will provide for ranges of quantities of solid waste requiring disposal so that technological advances, market place changes, and new 3Rs opportunities can be accommodated. This will allow the ultimate disposal contracts(s) to accommodate diversion potentially beyond the stated target of 50 per cent. diversion by 2006, set by the former Metro Council.

The strategy contained within the draft Terms of Reference does not include a methodology for solicitation of sites which would be publicly owned and developed by Toronto. However, partnerships between Toronto and any respondent, if offered through the Request for Qualifications process would be evaluated and considered.

Following completion of the initial planning framework, Metro Council adopted, on April 9, 1997, the following four Planning Principles by adoption of Clause No. 2 of the Report No. 4 of the Environment and Public Space Committee:

1) Metro will turn to the marketplace to identify alternatives

2) Metro will not undertake a generic comparison of landfill versus incineration

3) The 3Rs Strategy will identify residual needing disposal

4) The consultation process will be Metro-based

These Planning Principles guided subsequent work during the course of 1997.

An inter-departmental project team has facilitated the development of the draft EA Terms of Reference to date. Staff from Works have provided overall project management to the team which consists of representatives from Legal (including outside counsel Tory Tory DesLauriers & Binnington), Finance, Planning, the Chief Administrator's Office, and consultants from Proctor & Redfern Ltd.

On September 24 and 25, 1997, Metro Council by adoption of Clause No. 5 of Report No. 12 of the Environment and Public Space Committee, authorized the Commissioner of Works to proceed with pre-submission review by Provincial Ministries together with continued public consultation, of the draft Terms of Reference for an environmental assessment of the disposal of residual solid waste. A draft Terms of Reference was attached to that report. The Commissioner of Works was also authorized to finalize the EA Terms of Reference based on the pre-submission review and public consultation and present the completed EA Terms of Reference for endorsement and subsequent action by the new City of Toronto Council in 1998.

Comments and/or Discussion and/or Justification:

Consultation regarding the draft EA Terms of Reference was undertaken during the Fall and Winter of 1997. Based on the input received from industry participants and the Provincial review, a number of changes to the draft Terms of Reference are under consideration by the Project Team. A complete report accompanied by a revised EA Terms of Reference is scheduled to be brought before Works and Utilities Committee March/April 1998.

Conclusions:

This report is provided as background information related to the contract for solid waste disposal with Browning-Ferris Industries Ltd. and to provide background information related to the current planning process for long-term disposal being carried out under the Environmental Assessment Act.

A subsequent report with an amended draft EA Terms of Reference will be forthcoming at a future Committee meeting in March/April 1998.

Contact Name:

Lawson Oates, B.A., M.E.S.

Manager, EA Co-ordination Branch

Management and Technical Services Division

Works Department

Phone: (416) 392-9744

Fax: (416) 392-2974

E-mail: lawson_oates@metrodesk.metrotor.on.ca

Michael A. Price

Interim Functional Lead for Solid Waste Management

Barry H. Gutteridge

Acting Executive Commissioner

LJO/ea:kl