Executive Brief · One Decision

The WM Johnson County Landfill's verified worst-case closure of 2037 and its current 1-year-only Special Use Permit define the procurement deadline — one action now preserves all county options.

Johnson County generates approximately 1,200 tons per day of disposable waste. Today, ~80% of it moves to a single private facility: the WM Johnson County Landfill in Shawnee — operating under a 1-year Special Use Permit (issued November 2024, not the standard 4-year term) and projected to reach final capacity between 2037 and 2043. Kansas has no active Waste-to-Energy facility. No new landfill siting is underway. The Mid-America Regional Council's regional capacity study, completed by Burns & McDonnell Engineering in January 2024, named Johnson County's landfill as the region's earliest-closing at the worst-case scenario. The county is in the 15-year planning window — and it is already narrowing.


Under the current system, Johnson County pays approximately $42 per ton (estimated planning basis) to dispose of its waste at the WM landfill — a cost that is rising. Waste Management's national landfill pricing increased 7% in 2024. Kansas has the lowest landfill tipping fees in the United States today, but that advantage disappears the moment the regional market loses its primary facility. When the WM landfill closes, the nearest disposal alternatives are in Lawrence (~40 miles) and Topeka (~65 miles), adding an estimated $80–$120 per ton to the county's disposal cost. There is no contracted alternative and no siting process that could produce one within the 2037 window.

Carbotura offers a 30-year Build-Own-Operate Commercial Off-take Agreement. Carbotura finances all capital — approximately $247.5M for Phase Initial — and operates 3–4 distributed Advanced Circular Manufacturing centers across the county's four quadrants, totaling 400 TPD (Phase Initial) scaling to 1,200 TPD at full expansion. The county's sole financial obligation is the TMC Fee: $100 per ton, escalating at 2.5% per year. In return, the county receives the Circular Royalty — a monthly payment beginning 13 months after the corresponding TMC Fee payment, at 120% of the Year 1 TMC base, escalating at +1 percentage point per year. The county bears zero capital risk, zero construction risk, and zero technology risk.

A Community Feasibility Study authorized in Q3 2026 puts Phase Initial Commercial Operations at Q3 2028 — nine years before the worst-case landfill closure. Phase Expanded (1,200 TPD, full county coverage) reaches full operations by Q3 2031, six years before closure. No other available pathway achieves this timeline. A new landfill in Johnson County — acknowledged in the county's own SWMP as an "unlikely" prospect — takes 10–15 years to permit.


Net County Fiscal Position — Three Distinct Periods

Year 1 · Pre-Royalty
−$8.5M
County pays $14.6M TMC Fee (400 TPD). Receives $0 Circular Royalty. Receives $6.1M gross cost displacement (FWDC avoided). Net vs. current system: −$8.5M.
Month 13 · Royalty Begins
+$17.50/ton
First Circular Royalty payment received. Royalty = $120/ton (120% of Year 1 TMC). TMC at Month 13 = $102.50/ton. Net per ton turns positive immediately.
Year 2+ · Steady State
+$8.3M/yr
Annual net positive at Phase Initial. Rolling royalties fully established. Net position grows each year as royalty rate escalates +1pp/year, faster than TMC at 2.5%/year.
Year 30 · Compounding
+$57.9M/yr
Phase Expanded (1,200 TPD). Royalty $296/ton vs. TMC $204/ton. Net surplus: $92/ton. Annual net: +$57.9M. Cumulative 30-year net: ~+$450M.

Circular Royalty payments begin 13 months after the corresponding TMC Fee payment, on a rolling monthly basis.

This is not an annual switch-on event — each TMC Fee payment generates a corresponding Circular Royalty payment 13 months later.

At steady state, the Circular Royalty is designed to exceed the TMC Fee on a per-ton basis.

Johnson County ACM — Fiscal Period Timeline (Phase Initial · 400 TPD)
The pre-royalty burden (−$8.5M, Year 1) is fully recovered in Year 2 (+$8.3M net). The net position grows continuously through the 30-year COA term.
Pre-Royalty Months 1–12 Royalty Ramp Mo 13–24 Steady State Year 2–5 Compounding Year 5–30 −$8.5M net ↑ Royalty onset +$17.50/ton +$8.3M/yr +$57.9M/yr at Year 30 T0+24mo COD T0+37mo 1st Royalty Year 2 Year 30
Source: Proposal EIR Input Block · Registry §E–§F · Royalty formula: Royalty(m+13) = TMC(m) × 120%, +1pp/yr · Status: ESTIMATED from locked registry parameters

ParameterValueSource / Status
Addressable feedstock~1,200 TPD · ~438,000 TPYSWMP 2024 / per-capita model EST
Current disposal cost (FWDC)$42/tonEREF 2024 Kansas avg + WM premium EST
TMC Fee (base)$100/ton · 2.5%/yr escalationCarbotura standard (floor operative)
Gross cost displacement$6.1M/yr (Initial) → $18.4M/yr (Expanded)FWDC × annual TPY EST
Circular Royalty — Year 1$0 (pre-royalty period, Months 1–12)COA structure — 13-month lag applies
Royalty lag13 months — rolling monthly, not annualProposal EIR Input Block (locked)
Net position — Year 2 (Phase Initial)+$8.3M/year net positiveRoyalty + FWDC − TMC EST
Net position — Year 30 (Phase Expanded)+$57.9M/year · ~$450M cumulativeProposal EIR Input Block EST
County capital obligation$0 — Carbotura BOOCOA structure
Hard deadline — WM landfill closure2037 (worst case)MARC/Burns & McDonnell Jan 2024 VERIFIED
Procurement authorization deadlineQ3 2026 (Community Feasibility Study)Derived: 2037 − 24mo COD − 3mo study
Phase Initial CODT0 + 24 months (~Q3 2028)Carbotura standard deployment schedule
First Circular Royalty paymentT0 + 37 months (~Q4 2029)13-month lag from Phase Initial COD
Direct employment (Full Expansion)144 FTE · 504 total supportedCarbotura standard parameters EST

What Delay Costs

The binding irreversibility instrument is the Shawnee Special Use Permit for the WM Johnson County Landfill — currently issued for one year only (November 2024, 7-0 vote) due to unresolved methane flaring, blasting operations, and odor complaints against the standard 4-year term. If Shawnee declines to renew this permit, the landfill suspends operations immediately, the county has no contracted alternative, and whatever ACM construction is underway at that point remains the only future infrastructure — but is not yet operational.

If T0 slips from Q3 2026 to Q3 2028, Phase Initial COD moves from Q3 2028 to Q3 2030 — reducing the pre-closure operational buffer from 7 years to 5 years. If T0 slips to Q3 2030, Phase Expanded does not reach full operations until Q3 2035, leaving only 2 years of full-scale ACM infrastructure before the worst-case landfill closure. A T0 after Q1 2033 means Phase Expanded is not operational before the 2037 closure date.

Residual stream disposal (estimated <2% of total, <$1M/year at full expansion) continues via existing HHW pathways and does not materially affect the analysis.


Immediate Next Action

Authorize the Community Feasibility Study

Confirms addressable feedstock volume via KDHE tonnage data (replaces ESTIMATED baseline)
Identifies and validates Phase Initial site within the Shawnee I-435 industrial corridor
Produces COA term sheet and site-specific financial model for BOCC review
No capital commitment — the Feasibility Study is an analytical instrument, not a binding agreement
90-day process from authorization to completion
Authorization deadline: Q3 2026 · Study completion: Q4 2026
Contact: info[at]carbotura.com · carbotura.com
Key data sources: MARC Regional Landfill Capacity Study (Burns & McDonnell Engineering, January 2024) · Johnson County Solid Waste Management Plan (adopted September 5, 2024) · EREF Analysis of MSW Landfill Tipping Fees 2024 · Johnson County Post (SUP coverage, November 2024) · US Census Bureau — Johnson County Kansas (2024) · Johnson County Wastewater — Integrated Plan Phase 2 (2025–2029) · johnsoncountylandfill.com (operator verification, March 2026) · jocogov.org/department/wastewater (operator verification, March 2026) · Financial projections: Carbotura Circular Advantage modeling (RC3 baseline, standard contractual parameters, planning-basis FWDC). Contact: info[at]carbotura.com
This brief contains forward-looking projections based on planning-basis assumptions. Financial figures marked ESTIMATED are derived from publicly available data and Carbotura standard contractual parameters; they do not constitute guaranteed outcomes. FWDC ($42/ton) is an estimated planning basis pending confirmed WM gate rate disclosure. All projections assume Carbotura standard deployment schedule and are subject to Community Feasibility Study findings. This document is prepared for planning and engagement purposes and does not constitute a binding offer or commitment.
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