The Fairfax County Board of Supervisors voted to not buy the I-95 Waste-to-Energy plant, and will instead pursue a contract extension that will allow a private company to continue operating the plant for another 30 years.
Officials have the framework in place for a contract extension with Covanta Energy, which has owned and operated the plant, also known as the Lorton Incinerator, since 1990. The extensionwould allow Covanta to continue operating the facility until 2041, while Fairfax County maintains ownership of the land on which the plant sits.
The county has the next 60 days to finalize its new contract with Covanta.
County staff had recommended the county purchase the facility outright for about $400 million, which Fairfax officials had the right to do under the terms of the current contract.
“Only after conducting due diligence did we receive the good terms that are before us today,” said Board Chairwoman Sharon Bulova. “Exercising our option to purchase allowed us to negotiate a service contract renewal based on the new economic reality and with a stronger negotiating position. The extension will result in $300 million in savings over the life of the new contract compared to the terms negotiated in 2008.”
