- Acronyms and Brief Definitions
- MRC: Municipal Review Committee, Inc. is a non-profit corporation dedicated to ensuring the long-term affordable, environmentally sound disposal of municipal solid waste for its members.
- MSW: Municipal Solid Waste.
- Fiberight: Fiberight, LLC is the parent company that developed and owns the technology for processing mixed MSW to be installed in the facility in Hampden, Maine.
- Coastal Resources: Coastal Resources of Maine, LLC, the project company formed by Fiberight to finance, own and operate the Hampden project.
- Crossroads: Crossroads Landfill located in Norridgewock, Maine.
- WM: Waste Management, Inc., the owners of Crossroads, is a waste management company headquartered in Houston, Texas.
- JRL: Juniper Ridge Landfill, owned by the State of Maine and operated by Casella.
- Casella: Casella Waste Systems, a waste management company based in Rutland, Vermont.
- Bridge Waste: MSW being sent to an alternative site on an interim, short-term basis as a result of the Coastal facility not opening on time is referred to as bridge waste.
- Bypass Waste: MSW being sent to an alternative site on an interim, short-term basis after the facility has been in operation is referred to as bypass waste.
- PERC: Penobscot Energy Recovery Company in Orrington, Maine.
- Who is the MRC?
The MRC, which stands for Municipal Review Committee, Inc., is a non-profit corporation dedicated to ensuring the affordable, environmentally sound disposal of municipal solid waste (MSW) in the long-term for its members. The MRC membership is currently comprised of the 115 communities that have contracted to send their MSW to the Coastal Resources next generation waste processing facility in Hampden, Maine.
Our nine member volunteer board is elected by the membership and is made up of municipal officials and experienced individuals with extensive knowledge of the MSW industry. Our decisions are made in public meetings. We have been proactive about ensuring that our members will have an affordable and long-term solution to MSW disposal. We recognize that when we work together we all are in a better position to address the waste handling needs of the region.
- How can I receive updates from the MRC?
- What is the MRC’s role in the new Coastal Resources facility?
MRC owns the land on which the facility sits and leases the property to Coastal Resources of Maine, LLC (Coastal Resources is a subsidiary of Fiberight). MRC has all the rights of a landlord over its tenant consistent with the terms of the Site Lease .
- What are the advantages of the Coastal Resources Facility?
Coastal Resources has many advantages compared with other alternatives reviewed by the MRC. Of particular note are the following:
- The Coastal Resources facility converts organic wastes into high-value products without needing a new region-wide system to collect organic materials separately from other wastes.
- The Coastal Resources facility uses a proprietary system for pulping waste prior to recovery of recyclable materials that avoids contamination issues associated with conventional mixed-waste processing facilities. Recovered recyclable materials will be clean with little contamination, thereby maintaining Maine’s tradition and reputation for producing high-quality recyclable materials.
- As a regional facility, Coastal Resources offers the capability to make use of technologies, market opportunities, and environmental control measures at a scale that is not available or feasible for use by individual communities or groups of communities in the MRC service territory. By continuing to work together through the MRC, communities can accomplish far more than if each were to pursue an individual solution. Likewise, the more there are that join together, the more successful the project will be.
- Coastal Resources’ use of the wet pulping process, which offers the opportunity to recover high-quality recyclable materials using technology with which there is experience in other applications in Maine and is accomplished with a minimum of hands-on, manual picking.
- Their use of the sugar platform, which provides opportunities to produce a variety of products that include bio-methane and precursors to production of industrial sugars and/or ethanol, with prospects for a high level of diversion and a low level of residuals requiring landfill disposal. The concentration on production of bio-gas makes the project positioned to achieve financing while retaining the flexibility to convert to production of other byproducts if markets dictate.
- What is the Fiberight process?
Coastal Resources is powered by Fiberight technology. The Fiberight business model involves specialty, custom built front-end processing equipment for the incoming MSW that recovers recyclable materials and converts organic materials to biofuels. While strides have been made to increase recycling, there are still a number of recyclables that remain in household MSW even after diversion by local recycling programs. We expect that as Coastal Resources continues to enhance its processes the capture rate for recovering materials will have a large impact on the ability of our member communities as they strive to meet the State of Maine’s proposed recycling rate, which has stayed stagnant for over 20 years despite repeated efforts to raise it.
Following the capture of recyclables, the facility capitalizes on the organic material that makes up approximately 40% of MSW. Through a proprietary accelerated anaerobic digestion process – cooking or boiling down in a manner of speaking – Coastal Resources converts the MSW to biofuel. Our goal is to have approximately 80% of incoming material recycled or converted to energy or other saleable products. This amount will likely increase as some of the residuals that were originally thought to be of no value can now be used, for example, as an additive to processed plastics to make briquettes for use as boiler fuels.
A graphic depiction of the technological process can be found here.
- What is the relationship between Coastal Resources and Fiberight?
Fiberight, LLC is the parent company that developed and owns the technology for processing mixed MSW to be installed in the facility in Hampden. They were the original respondent to the RFEI issued by the MRC in 2013; the entity that signed the Development Agreement with the MRC in 2015; and that managed the early stage development of the Hampden project. Fiberight was also the original signatory to the Site Lease and Master Waste Supply Agreement with the MRC.
Coastal Resources of Maine, LLC is the project company formed by Fiberight to finance, own, and operate the Hampden project. In these types of projects, it is typical to form a special single-purpose entity to facilitate financing. Thus, as the project was developed, Fiberight formed Coastal Resources as a limited liability company (LLC), for the single purpose of owning the Hampden project.
At first, Fiberight owned all of Coastal Resources. Coastal Resources was added as a party to the Site Lease and Master Waste Supply Agreement by agreement with the MRC which had foreseen all of these arrangements and accounted for them in the agreements. The MRC required Fiberight to stay in the project as a party to these agreements as well. Then, to raise equity capital for the Hampden project, Fiberight sold off shares in Coastal Resources to an equity investor, Ultra Capital, with the proceeds of the sale being invested in the project.
As a result, today:
- MRC is landlord of the property upon which the project is located.
- Coastal Resources is the owner of record of the Hampden facility.
- Fiberight and Ultra Capital are co-owners of Coastal.
- Coastal Resources is responsible for paying back construction loans.
- Coastal Resources and Fiberight are both parties to the Site Lease and Master Waste Supply Agreement with the MRC.
- Fiberight owns the technology rights.
- Fiberight is also developing other projects. If Fiberight is successful in developing a project in X-town, then Fiberight would form a different company, X-town LLC, to own that project. In that way, Fiberight stays involved in all of its projects, but the individual projects are separated from each other and can be financed and operated separately.
- Who is the owner of the Hampden facility?
The facility is privately owned by Coastal Resources. Fiberight and Ultra Capital are co-owners of Coastal.
- What material does Coastal Resources accept?
Coastal Resources handles municipal solid waste (MSW) from member communities. some commercial haulers, and, potentially, other cities and towns in Maine if capacity is available. The facility will accept solid waste that meets the definition of Acceptable Waste found in Exhibit A of the Master Waste Supply Aggreement. This definition is identical to that included in communities’ previous contracts with PERC. Coastal Resources will not accept any out‐of‐state waste for processing. Coastal will not receive any construction and demolition debris (CDD) or out‐of‐state waste for processing. Please stay tuned for tips and tricks on best practices for disposing materials at Coastal Resources.
- What material does Coastal Resources NOT accept?
Joining Members are precluded by contract from delivering Unacceptable Waste to the Coastal Resources facility. Joining Members that make such deliveries despite the contractual prohibition will be required to pay the cost of removing and of providing an appropriate manner for disposal of such materials. This type of contractual provision is standard in the waste industry and is substantially the same as that included in the expired PERC contracts.
- Is out-of-state trash being used at the Coastal Resources facility to fulfill volume?
No. Out-of-state waste is not allowed per contract language in the Master Waste Supply Agreement and the Site Lease. In addition, the facility’s DEP permit does not allow for out-of-state deliveries – the MRC and Fiberight did not ask for it to be permitted.
- Does Coastal Resources accept single stream recycling?
Coastal Resources accepts and processes single stream (no-sort) recyclables. Member communities must contract separately with Coastal for this service. Click here to see the contract template. Contact Shelby Wright at email@example.com for more information.
- My community wants to change our recycling program and implement new diversion programs. Who should I contact?
Contact the MRC here. Fill out the simple form and the Executive Director will respond with an answer to your question.
Shelby Wright is Fiberight’s Director of Community Services. Her role is to talk about local waste streams and diversion programs with communities and local officials across the MRC territory, MRC members and non-members alike. She is available at (207) 592-6432 or firstname.lastname@example.org .
- If our local recycling practices become more effective than anticipated, will we be penalized because our Coastal Resources tonnage is lower than what we estimated for the MRC during the planning stages of the project?
No, it would not be penalized. One of the benefits of the process is that it lends itself to recycling and local control. The contract terms that the MRC negotiated with Fiberight specifically allow towns to continue or expand their existing waste reduction and recycling programs. The Coastal Resources facility is designed with the understanding that many member communities will choose this route. Towns that would like to continue or expand their existing recycling programs will be able to do so. MRC agreements for the facility do not impose requirements to deliver a Guaranteed Annual Tonnage (GAT) of MSW on individual towns, and towns are NOT be liable for penalties for failure to deliver any specific amount of MSW so long as they continue to deliver all MSW under their control to the Coastal Resources facility. Communities can continue existing PAYT programs, add new PAYT programs, or add new diversion programs without fear of being penalized individually for delivery shortfalls.
- What is my town’s current tipping fee?
As specified in Section 5.1 of the Master Waste Supply Agreement (MWSA), the tip fee for Joining Members that were Charter Municipalities for 2020 is $72.28 per ton. The tip fee for Joining Members that were not Charter Municipalities for 2020 is $74.49. Each January 1 following the Commercial Operation Date, the tip fee will be adjusted by the consumer price index (CPI).
The tip fee is the gross amount paid for deliveries of Acceptable Waste in accordance with the MWSA without accounting for Rebates (as referenced in Section 5.3 and Exhibit F of the MWSA) or disbursements from Reserve Funds, including the distribution of $5 per ton or $3 per ton for the first three years as laid out in Section 2(c) of Exhibit B of the Joinder Agreements.
- How many years is the tipping fee for?
There is a possible 40-year horizon on the contracted tip fee. The base fee of $71.44/ton is for an initial contract term of 15 years. Joining Members have the option of terminating the contract at the end of the 15-year period or contracting for up to five additional 5-year extensions.
- How will rebates be calculated?
Rebates will be calculated based on the revenue of Coastal Resources per the formula in Exhibit F to the Master Waste Supply Agreement. That formula includes the tip fees that Coastal Resources collects from MRC members and other entities that choose to send their waste to the facility. It also includes revenue from the sale of biogas and recovered recyclables and other products. It is anticipated that the rebate program will take effect in the fourth year of Coastal Resources operations. This three-year lag time is deemed sufficient enough at this time by the MRC for Coastal Resources to address any start-up issues they might have with the respective MSW handling processes and to get their gross revenue stream established.
- I’m a commercial hauler and want to deliver MSW to Coastal Resources when it opens. Who do I contact at Fiberight to sign-up?
Coastal Resources is continuing to work with commercial haulers regarding delivery arrangements. If you, your hauler, or you are a hauler looking for general information, please contact Fiberight Director of Community Services Shelby Wright at (207) 592-6432 or email@example.com.