Pinellas County awards 10-year, $320 million waste-to-energy operations contract to FCC Environmental Services

The Pinellas County Board of County Commissioners voted unanimously on Oct. 7 to award a 10-year contract to FCC Environmental Services to operate the county’s waste-to-energy facility, county officials said.

County Solid Waste Director Paul Sacco told the commission the county conducted a competitive solicitation after the incumbent operator signaled it could not accept a proposed 10-year renewal at earlier rates. "We went out on the street…and when we got to terms with FCC, that number processing fee number is at 34.25, down from the 38 that we're actually paying today," Sacco said, explaining the agreement represents a lower per-ton processing fee than the operator had asked the county to accept without testing the market.

The reduction, Sacco said, would save the county millions annually. He described current annual throughput in the range of roughly 830,000 to 870,000 tons and said a roughly $4 per-ton reduction would equate to about $3 million in savings per year compared with the higher proposal the incumbent sought.

Why it matters

The county’s waste-to-energy plant reduces landfill volume and produces energy; maintaining continuous, compliant operations is central to the county’s solid-waste strategy and to keeping pressure off the landfill, Sacco said. He told commissioners the plant is operating near capacity as post-storm debris and recovery-related construction continue at elevated volumes. "The operator is responsible to keep the pressure on the plant without running it into the ground," he said.

Transition and risks

Commissioners pressed staff on transition risks and long-term reliability. Sacco said the incumbent operator, Re-World, has been a quality operator and that FCC will begin an on-site transition Nov. 1 with the aim of taking over operations Jan. 1. "They're going to be working with Re-World and the county to make sure that transition is as smooth as possible," he said, adding that FCC will place orders for equipment and bring staff on during the transition period.

Paul Sacco outlined external factors that could raise costs over the life of the contract, including federal or state regulatory changes affecting emissions controls, commodity price swings for chemicals and replacement parts, and capital replacement needs for steam-generation components. He said capital projects tied to the plant will be budgeted through the county’s capital-improvement program and competitively bid on a project-by-project basis.

FCC representatives introduced themselves and described the company’s experience. "FCC is committed to being a strong long-term partner to Pinellas County," Juan Gorriti, president of FCC Environmental Services, told the commission. "We will work collaboratively to ensure this facility continues to serve as a critical part of the county's integrated solid waste system. Our focus is on safe, reliable and efficient operations."

Board action and next steps

Commissioner Flowers moved approval; Commissioner Wiecky seconded. The motion passed unanimously. With the board’s approval, FCC will mobilize for transition work in November and assume operator responsibilities on Jan. 1 under the new contract.

Ending

County staff said capital replacement projects will continue to be managed through the county’s CIP process and that the operator will have first right of refusal on some work but major projects will be competitively bid. Officials reiterated the county’s stated goal of reducing landfill dependence toward its 2050 targets while keeping the plant operating reliably in the near term.