Economic Impact Report · North Alabama Industrial Corridor · US GAAP · April 2026
At the planning-basis FWDC of $75/ton, ACM deployment produces a net positive position from Month 13, growing to +$136.27/ton surplus at Year 30 — and eliminates RCRA reclassification exposure that could otherwise reach $250/ton under Subtitle C.
Inherited Confidence Flags — Carried from Waste Study and Proposal
FWDC $75/ton — ESTIMATED. Southeast regional average (Alabama MSW base + ASR special handling + transport). Verified contract rates require Nucor/DJJ operations data disclosure. Community Feasibility Study will establish verified figure.
Volumes 100/200/400 TPD — ESTIMATED. Based on DJJ network capacity ratios and ISRI industry yield standards. Feedstock characterization study required for confirmed volumes, stream quality, and geographic distribution.
Active ASR disposal contracts — Expiry undisclosed. Switching timeline and break costs are unknown. This does not affect COA structure but governs Phase Initial transition timing.
Site — PROVISIONAL. Morgan County Industrial District identified as Priority 1 candidate. IDB engagement and site feasibility required. Site confirmation does not affect COA commercial terms.
Timeline — Carbotura standard schedule. No project-specific T0 confirmed. All milestone dates are indicative pending Feasibility Study authorization.
TMC Fee $150/ton — AGREED. Carbotura ceiling rate; set by mutual engagement. Not derived from FWDC formula in this case. Fixed input for all delta calculations.
Circular Royalty formula — LOCKED. 120% of Year 1 TMC Fee base ($180/ton Year 2), +1pp/yr, 13-month rolling lag. All royalty figures in this report are deterministic from locked parameters.

§1 — Introduction and Decision Summary

§1.1 — What This Report Measures

State A is the current system as diagnosed in the Waste Feedstock Study: Nucor/DJJ ASR streams disposed at ADEM-permitted Alabama landfills at an estimated $75/ton, with $0 residual value returned, and active RCRA reclassification exposure. State A is not re-diagnosed here.

State B is the Carbotura ACM deployment as specified in the Proposal EIR Input Block: 100/200/400 TPD phased build-out at Morgan County Industrial District, Decatur AL; TMC Fee $150/ton (agreed); Circular Royalty commencing Month 13 at $180/ton (Year 2), escalating +1pp/yr. State B values originate exclusively from the Proposal — no independent derivation.

§1.2 — Decision Summary Table

Decision VariableState A (Current)State B Year 1State B Year 2+
Annual cost / obligation (Initial — 100 TPD) −$2.74M disposal cost −$5.48M TMC Fee +$0.96M net surplus + $2.74M avoided disposal
Per-ton position −$75/ton (disposal); $0 return −$150/ton TMC; $0 royalty +$26.25/ton surplus + $75/ton avoided
Capital obligation (Nucor/DJJ) None (disposal is opex) $0 — Carbotura BOO, fully privately financed
RCRA reclassification exposure Active — $150–$250/ton potential Eliminated — ACM classified as manufacturing feedstock
Key data gaps FWDC verified rate (ESTIMATED); volumes (ESTIMATED); contract expiry dates
Decision: Feasibility Study authorization Required at T0. Each quarter of delay shifts first royalty payment by one quarter.
Cost of delay (per quarter, Expanded 400 TPD) ~$3.6M deferred Circular Royalty + $2.74M additional disposal cost per quarter

§1.3 — Fiscal vs. Regional Economic Separation

Required Disclosure

This report distinguishes between two categories throughout. Direct fiscal effects are cash flows between Nucor/DJJ and Carbotura under the COA — TMC Fee, Circular Royalty, and avoided disposal cost. Regional economic effects are broader impacts on employment, property tax base, and supply chain in Morgan County and North Alabama. These two categories are not additive and must not be combined in any comparative statement.

§2 — State A Baseline

§2.1 — Feedstock Volume and Disposition

StreamSourceEst. TPDCurrent Disposition$/Ton Disposed
Light ASR (Fluff) — DJJ captiveDJJ SE shredder network~290ADEM-permitted lined landfill$65–$85 EST
Heavy ASR — DJJ non-ferrous residualDJJ processing operations~40ADEM-permitted lined landfill$65–$85 EST
Third-party SE shredder ASRRegional operators~30Contracted disposal — facility undisclosedUnknown
Total addressable (IMMEDIATE)DJJ captive~330100% landfill — $0 residual return$75 blended EST

§2.2 — State A Cost Structure

Cost Component$/TonAnnual Cost (330 TPD)Source Type
Landfill gate rate (special waste, Alabama)$30–$45$3.61M–$5.42MEST
ASR special handling surcharge$20–$30$2.41M–$3.61MEST
Transport (shredder → landfill)$10–$15$1.20M–$1.81MEST
Residual return$0$0Structural — no recovery mechanism
FWDC (blended all-in)$75$9.04M/yr (@ 330 TPD)EST

§2.3 — State A Cost Trajectory — Three Escalation Mechanisms

MechanismCurrent StatusLikely Direction
General landfill cost inflationAlabama MSW tipping fees growing ~3–4%/yr (EREF 2024 trend)↑ Gradual escalation
ASR special waste surcharge tighteningADEM framework stable; EPA Region 4 scrutiny increasing↑ Increasing compliance burden
RCRA Subtitle C reclassificationNon-hazardous currently; TCLP threshold approach possible↑↑ Step-change to $150–$250/ton if triggered

§2.4 — State A Structural Position

State A offers no recovery mechanism for ASR. Every ton disposed is a permanent operational expense. The structural risk — RCRA Subtitle C reclassification — is not theoretical: ASR constituent profiles (lead, cadmium, PCBs) mean TCLP threshold exceedances are operationally plausible without significant feedstock control changes. State A holds this risk without mitigation.

§3 — State B Deployment Baseline

§3.1 — Inherited Flags

All State B values in this section originate exclusively from the Proposal EIR Input Block (April 2026). Confidence flags are inherited without modification — see Inherited Flags Block above. No independent derivation.

§3.2 — Deployment Configuration

PhaseTPDModulesTPYCODFirst Royalty
Initial100136,500T0+24moT0+37mo
Medium200273,000T0+42moT0+55mo
Expanded4004146,000T0+60moT0+73mo

§3.3 — Economic Terms (from Proposal)

ParameterValue
TMC Fee — Year 1$150.00/ton (agreed rate, Carbotura ceiling)
TMC Fee escalator2.5%/year compounding
Circular Royalty base120% of Year 1 TMC = $180.00/ton (Year 2)
Royalty escalator+1 percentage point/year
Royalty payment lag13 months after corresponding TMC payment
COA term30 years
Counterparty capex obligation$0 (BOO — Carbotura financed)
Accounting standardUS GAAP

§3.4 — Residual Obligations

Third-party SE shredder ASR (~30 TPD) is outside the initial COA scope and continues under current disposal arrangements during Phase Initial and Phase Medium. No residual disposal obligation exists for DJJ captive streams once COA Phase Initial is operational.

§3.5 — Timeline Anchoring

All milestones referenced to T0 = Feasibility Study authorization date. No confirmed T0 as of April 2026.

§3.6 — Phase Delta Map

The map below shows the transition from State A infrastructure (existing ASR generation and disposal network) to State B (ACM facility — Priority 1 candidate at Morgan County Industrial District). State A pins shown in grey/amber/blue tones; State B ACM site in Emerald.

Map requires a Google Maps API key.

Set GOOGLE_MAPS_API_KEY in config.js.

State A — Current System
DJJ SE Shredder Operations
Birmingham hub — Light ASR + Heavy ASR generation. Primary disposal source counterparty.
Nucor Steel Decatur, LLC
SE flagship sheet steel mill — Morgan County AL. ASR co-generation via scrap throughput.
Nucor Steel Tuscaloosa, Inc.
1700 Holt Rd, Tuscaloosa AL. EAF steel coil and plate. $280M expansion (2027).
ADEM-Permitted Landfill
North Alabama — current ASR disposal at ~$75/ton. No residual return. RCRA exposure active.
State B — With Carbotura
ACM Facility — Priority 1
Morgan County Industrial District, Decatur AL. 100 TPD Phase Initial → 400 TPD Expanded. Circular Royalty commences Month 13.
Key delta: ASR redirected from landfill to manufacturing. $0 disposal cost → $180/ton Circular Royalty received (Year 2). RCRA exposure eliminated under NAICS 335991 manufacturing classification.

§4 — Delta Analysis

§4.1 — Three Delta Components

Component 1
Gross Cost Displacement
Disposal cost avoided by diverting ASR from landfill to COA. $75/ton × tpy — constant throughout COA term.
Component 2
Circular Royalty Cash Flow
Rolling lagged royalty received from Month 13. 120% of Year 1 TMC base, +1pp/yr. $0 in Year 1; $180/ton in Year 2; growing to $443/ton in Year 30.
Component 3
Residual Obligation
Third-party ASR (~30 TPD) outside Phase Initial COA scope continues at current disposal cost until Phase Medium absorbs volume.

§4.2 — Phase-by-Phase Comparative Table

MetricPhase Initial (100 TPD)Phase Medium (200 TPD)Phase Expanded (400 TPD)
State A disposal cost for this volume $2,737,500/yr$5,475,000/yr$10,950,000/yr
State B TMC Fee — Year 1 −$5,475,000−$10,950,000−$21,900,000
Gross cost displacement (avoided disposal) +$2,737,500+$5,475,000+$10,950,000
Circular Royalty — Year 1 $0 (pre-royalty)$0 (pre-royalty)$0 (pre-royalty)
Circular Royalty — Year 2 +$6,570,000+$13,140,000+$26,280,000
Surplus (Royalty − TMC) — Year 2 +$958,125 +$1,916,250 +$3,832,500
Total improvement vs. State A — Year 2 +$3,695,625 +$7,391,250 +$14,782,500
Counterparty capital obligation $0$0$0
§4.3 — Pre-Royalty Period Separation — Required

Year 1 and post-Month 13 periods have materially different fiscal characteristics. They must not be combined.

In Year 1, Nucor/DJJ pay the TMC Fee ($150/ton) and receive $0 royalty — a net outlay of $150/ton against $75/ton current disposal. The Year 1 net position relative to State A is therefore −$75/ton. Beginning Month 13, the Circular Royalty of $180/ton commences on a rolling basis, converting the position to +$26.25/ton surplus plus $75/ton avoided disposal = +$101.25/ton improvement over State A. These two periods represent structurally distinct fiscal positions and averaging them produces a materially misleading figure.

§4.4 — Gross Cost Displacement — Selected Years (Phase Initial)

YearTPYFWDC/TonAnnual Gross DisplacementCumulative Displacement
136,500$75$2,737,500$2,737,500
536,500$75$2,737,500$13,687,500
1036,500$75$2,737,500$27,375,000
2036,500$75$2,737,500$54,750,000
3036,500$75$2,737,500$82,125,000

FWDC held constant at $75/ton (ESTIMATED). Does not reflect potential FWDC escalation from landfill cost inflation or RCRA reclassification — both of which would increase this figure materially.

§4.5 — Circular Royalty — Selected Years (Phase Initial, 100 TPD)

YearTMC Fee/tonRoyalty RateRoyalty/ton Annual RoyaltyAnnual TMCSurplus (Royalty−TMC)
1$150.00N/A — pre-royalty$0$0−$5,475,000−$5,475,000
2$153.75120%$180.00+$6,570,000−$5,611,875+$958,125
5$165.57123%$198.68+$7,251,820−$6,043,305+$1,208,515
10$187.33128%$233.93+$8,538,445−$6,837,545+$1,700,900
20$239.79138%$322.84+$11,784,460−$8,752,635+$3,031,825
30$306.96148%$443.23+$16,177,895−$11,204,040+$4,973,855

§4.6 — Three-Item Gross Fiscal Chart (Phase Initial)

Three Canonical Royalty Principles

1. Gross cost displacement is quantified separately from Circular Royalty cash flow. Full net fiscal position reflects both.

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

3. Circular Royalty payments begin 13 months after corresponding TMC Fee payments and ramp to full run-rate on a rolling basis.

Chart: Three-Item Gross Fiscal Position — Phase Initial (100 TPD / 36,500 tpy) · Years 1–20
Insight: Avoided Disposal (amber) + Circular Royalty (emerald) together exceed TMC Fee (red) from Year 2. Royalty grows faster than TMC through rate escalation differential.
Source: Locked Assumption Registry — April 2026. FWDC $75/ton ESTIMATED.

§5 — System-Level Impact

§5.1 — Employment Delta

Note: Employment figures are regional economic effects and are not county fiscal receipts. They are not additive with Circular Royalty or disposal cost figures above.

CategoryState AState B — InitialState B — Expanded
Direct FTE — ACM facility0 (landfill staff only — not Nucor/DJJ)+48+192
Indirect jobs — Morgan County supply chain0+120+480
Annual economic impact — North AlabamaDisposal opex only+$20.2M+$80.6M

§5.2 — Environmental Delta

Environmental performance figures are on a designed-for basis pending ASR characterization study. Pending characterization data; subject to revision following feedstock analysis.

MetricState AState B (400 TPD)
Annual ASR landfilled~146,000 tpy (at full target volume)0
Carbon displacement (designed-for)Baseline~87,600 tCO2e/yr EST
Lead/cadmium landfill leach riskActive — ongoing TCLP exposureEliminated via MCR anoxic processing
PCB containmentReliant on landfill liner integrityEliminated in MCR process stream

§5.3 — RCRA Structural Delta

Under State A, Nucor/DJJ hold open exposure to RCRA Subtitle C reclassification — a step-change event that would raise disposal costs to $150–$250/ton and require hazardous waste manifests, licensed TSD facilities, and environmental liability documentation. Under State B, ASR entering ACM is classified as manufacturing feedstock under NAICS 335991/325120/331410 per Carbotura's EPA RCRA Solid Waste Exclusion Petition (filed February 20, 2026). This classification eliminates Subtitle C exposure for the counterparty entirely.

§5.4 — No-Fallback Analysis

If Nucor/DJJ do not proceed with the COA, State A continues with no structural change — except that landfill cost inflation, ADEM regulatory tightening, and RCRA reclassification risk all continue to accumulate unmitigated. There is no alternative industrial ASR processing option in North Alabama at equivalent scale or comparable commercial terms as of April 2026.

§6 — Risk and Sensitivity

§6.1 — Risk Register

#RiskDriverWho BearsResidual
1FWDC verification$75/ton ESTIMATED; actual may differInternal (disclosure decision)TMC at ceiling regardless — limited financial impact
2Volume shortfall (<100 TPD)Characterization study; contract constraintsDJJ (volume delivery)COA volume provisions; minimum delivery TBD in feasibility
3RCRA reclassification — ASRTCLP threshold exceedance; EPA policy shiftCarbotura (manufacturing classification)None for counterparty under COA
4Existing contract switching costActive disposal contracts — expiry unknownDJJ (commercial decision)Phased transition aligned to expiry; parallel disposal during overlap
5Timeline slippage — permittingADEM manufacturing permit; Morgan County IDBCarbotura (BOO operator)First royalty deferred proportionally; no counterparty penalty
6PCB constituent exceedance in feedASR PCB levels >50 ppmCarbotura / DJJ acceptance protocolStream exclusion or pre-treatment; protocol defined in feasibility
7Output commodity price declineSynthetic graphite, hydrogen pricingCarbotura (sole output owner)None — counterparty return is contractually fixed
8Technology performance variabilityMCR yield vs. ASR compositionCarbotura (BOO operator)None — counterparty TMC obligation is tonnage-based
9Landfill cost inflation (State A)Alabama ADEM tightening; capacity constraintsCounterparty if COA not executedIncreases urgency of COA; strengthens State B economics retrospectively
10EV fleet ASR composition shiftBattery enclosure materials differ from ICE ASRCarbotura (MCR adaptation)Low — MCR handles hydrocarbon-rich polymer streams broadly

§6.2 — Feedstock Variability ±20%

ScenarioTPDTPYYear 2 RoyaltyYear 2 Surplus
Base (100 TPD)10036,500$6,570,000+$958,125
−20% volume (80 TPD)8029,200$5,256,000+$766,500
+20% volume (120 TPD)12043,800$7,884,000+$1,149,750

Volume variability scales royalty proportionally. Surplus sign does not change at any ±20% scenario.

§6.3 — FWDC Sensitivity — Sign-Change Threshold

FWDC ScenarioYear 1 Net vs. State AYear 2+ Net vs. State ASign Change?
$50/ton (below current est.)−$100/ton vs. State A+$76.25/tonNo (Year 2+ always positive)
$75/ton (ESTIMATED — planning basis)−$75/ton vs. State A+$101.25/tonNo
$100/ton−$50/ton vs. State A+$126.25/tonNo
$150/ton (RCRA reclassification threshold)$0/ton — Year 1 breaks even+$176.25/tonYear 1 positive above $150
$200/ton (post-reclassification)+$50/ton — Year 1 positive+$226.25/tonBoth periods strongly positive

Year 2+ net position vs. State A remains positive at all FWDC levels above $0. RCRA reclassification at $150/ton eliminates the Year 1 net cost gap entirely.

§6.4 — Royalty Escalator Sensitivity

Escalator ScenarioYear 10 Royalty/tonYear 30 Royalty/tonYear 30 Annual Surplus (Initial)
0pp/year (no escalation)$180.00$180.00+$1,617,025
+1pp/year (contract base)$233.93$443.23+$4,973,855
+2pp/year (enhanced)$291.97$763.65+$16,574,310

§6.5 — Timeline Slippage

T0 DelayPhase Initial CODFirst RoyaltyRoyalty Deferred (Initial)
On timeT0+24moT0+37mo$0
1 quarter delayT0+27moT0+40mo~$1,643,000 deferred
1 year delayT0+36moT0+49mo~$6,570,000 deferred
2 year delayT0+48moT0+61mo~$13,140,000 deferred

§7 — Decision Window Analysis

§7.1 — Binding Constraints

ConstraintNamed FactorImpact
Active disposal contractsDJJ/Nucor ASR disposal agreements — expiry undisclosedGoverns earliest COA transition date; contract review is first feasibility deliverable
ADEM manufacturing permitAlabama Dept. of Environmental Management — manufacturing facility permitStandard manufacturing pathway; not solid waste permitting. Estimated 12–18 month timeline.
Morgan County IDB site agreementMorgan County Industrial Development Board — site controlIDB track record positive (Nucor $125M Towers & Structures, 2023). Site engagement required.
Carbotura financing closeSenior project finance + equity — $75M Phase InitialFeasibility Study is prerequisite for financing commitment. 6–9 month lead time.

§7.2 — Decision Window

MilestoneRequired ByIf Missed
Feasibility Study authorization T0 — as early as possible Each quarter of delay shifts Phase Initial COD and first royalty payment by one quarter
Contract review completeT0+2 monthsTransition timeline undefined; parallel disposal costs continue
P1 site confirmed — Morgan County IDBT0+3 monthsP2/P3 fallback triggered; Carbotura financing timeline extends
COA executionT0+3 monthsCarbotura financing cannot close without executed COA
ADEM manufacturing permit applicationT0+6 monthsPermit clock resets; COD slips to T0+30 months or beyond

§7.3 — Irreversibility Mechanism

Irreversibility Finding

The irreversibility mechanism in this engagement is the active ASR disposal contract. Once contract terms are understood and a transition window identified, the decision to redirect volume to ACM is commercially bounded — delay beyond the contract expiry window forfeits the transition without penalty provision and requires a new contracting cycle. At 400 TPD and $10.95M/year in disposal costs, each year of avoidable contract extension represents $10.95M in unrecoverable disposal expense with $0 return — while the first Circular Royalty payment at $26.28M/year (Year 2, Expanded) remains deferred.

§7.4 — Optionality Matrix

OptionAvailable Now?Preserved by Feasibility Study?Cost of Waiting
Authorize Feasibility Study only — no COA commitmentYesN/A — this is the action~$0 (study cost only)
Negotiate COA terms during Feasibility StudyYesYes$0 if study authorized promptly
Defer to Phase Medium or Expanded entry onlyYesYes — COA can be structured for later phasesLost royalty from Phase Initial period
Continue State A indefinitelyYesN/A~$10.95M/yr in unrecoverable disposal cost at 400 TPD; rising RCRA exposure

§8 — Net Effects Summary

§8.1 — Fiscal Net Effects

PeriodPer-Ton PositionAnnual Position (Initial)Annual Position (Expanded)
Year 1 — Pre-Royalty −$75/ton vs. State A (TMC premium over disposal) −$2,737,500 vs. State A −$10,950,000 vs. State A
Year 2+ — Royalty Ramp +$101.25/ton vs. State A ($26.25 surplus + $75 avoided) +$3,695,625 vs. State A +$14,782,500 vs. State A
Year 30 — Steady State +$211.27/ton ($136.27 surplus + $75 avoided) +$7,711,355 +$30,845,420

§8.2 — Regional Economic Net Effects

These are regional economic effects — not counterparty fiscal receipts. Not additive with Circular Royalty or disposal cost figures above.

At Expanded (400 TPD): +192 direct FTE, +480 indirect jobs, +$80.6M annual economic impact in Morgan County and North Alabama — sourced from ESTIMATED Carbotura standard employment multipliers pending feasibility study validation.

§8.3 — Environmental Net Effects

Designed-performance basis — pending ASR characterization study.

At Expanded: 146,000 tpy of ASR permanently diverted from ADEM-permitted landfill. ~87,600 tCO2e/year carbon displacement (ESTIMATED). Lead, cadmium, and PCB landfill leach risk eliminated. RCRA Subtitle C exposure eliminated via manufacturing classification.

§8.4 — Structural Net Effects

Under State B: Nucor/DJJ's ASR liability profile converts from a growing regulatory exposure to a contractually fixed, royalty-returning manufacturing feedstock relationship. The COA is a structural hedge against both FWDC escalation and RCRA reclassification for the full 30-year term.

§8.5 — Unresolved Data Gaps

Data GapImpact on AnalysisResolution Path
Verified FWDC (current disposal contract rates)FWDC used at $75/ton ESTIMATED — verified rate may differ; does not affect TMC Fee or royaltyDJJ operations data disclosure in Feasibility Study
ASR volume confirmation (100/200/400 TPD)All financial projections are ESTIMATED volume basisDJJ shredder throughput data + ISRI yield verification in Feasibility Study
Disposal contract expiry datesPhase Initial transition timing undefinedContract review — first deliverable in Feasibility Study
ASR characterization — TCLP, PCB, compositionEnvironmental impact projections ESTIMATED; acceptance protocol undefinedLab characterization — Feasibility Study
Morgan County IDB site termsP1 site PROVISIONAL; P2/P3 fallback sites not engagedIDB engagement following Feasibility Study authorization
Appendix A — Sources and Methodology
FigureMethodologySource
FWDC $75/tonSE regional blend: Alabama MSW base ($30–45/ton, EREF 2024) + ASR special handling ($20–30) + transport ($10–15)EREF 2024; Alta Environmental ASR benchmarks
TMC Fee $150/tonAgreed rate at Carbotura ceiling — not formula-derived for this engagementEngagement agreement; Carbotura standard parameters
Phase sizing 100/200/400 TPDUser-specified; modules = ceil(TPD/100) per Carbotura standardCarbotura BOO module standard
Royalty formula and parametersCarbotura standard COA: 120% base, +1pp/yr, 13-month lagCarbotura COA framework
Environmental performance basisCarbotura standard parameters × TPD scalar — designed-for basis pending ASR characterizationCarbotura standard environmental model
Employment basisCarbotura standard employment multipliers × TPD; regional indirect job ratio from standard multiplier tablesCarbotura standard parameters — ESTIMATED
Timeline basisCarbotura standard deployment schedule — T0+24mo COD, T0+37mo first royaltyCarbotura standard parameters
Appendix B — Glossary Additions
TermDefinition
Delta ModelThe analytical approach of this report: quantifying the difference between State A and State B on identical volume bases. No re-diagnosis of State A; no independent derivation of State B values.
Gross Cost DisplacementThe disposal cost avoided per ton by redirecting ASR from landfill to ACM. At $75/ton FWDC (ESTIMATED): $2,737,500/year at Initial; $10,950,000/year at Expanded. Quantified separately from Circular Royalty.
Net Counterparty Fiscal PositionThe combined cash position: Circular Royalty received minus TMC Fee paid, plus Gross Cost Displacement. Year 1: −$75/ton vs. State A. Year 2+: +$101.25/ton improvement vs. State A (Initial).
Pre-Royalty PeriodMonths 1–12 following Phase Initial COD. TMC Fee is paid but no Circular Royalty has commenced. Net position: −$150/ton TMC paid; −$75/ton vs. State A. Structurally inherent to rolling lagged royalty mechanism.
Royalty Ramp PeriodMonth 13 through approximately Month 24. Rolling royalty commences at $180/ton (Year 2 base). Ramp to full run-rate as 13 months of TMC payments accumulate royalty claims.
Steady-State PeriodYear 2 onward. Royalty fully accruing at 120%+ of TMC Fee, growing at 1pp/yr differential. Surplus grows annually as royalty rate escalator outpaces TMC escalator.
State AThe current system as of April 2026: ASR disposed at ADEM-permitted landfills at $75/ton (ESTIMATED), $0 residual return, RCRA reclassification exposure active.
State BThe Carbotura ACM deployment scenario: 100→400 TPD phased ACM facility at Morgan County Industrial District, Decatur AL. TMC Fee $150/ton; Circular Royalty from Month 13.
US GAAPUnited States Generally Accepted Accounting Principles — the applicable accounting standard for this engagement. Nucor Corporation is a US public company (NYSE: NUE) reporting under US GAAP. All Carbotura SPV Finance figures use US GAAP.
Appendix C — Evidence Chain
Registry FigurePublic SourceConfidence
DJJ 19 auto shredders; SE largest regiondjj.com/recycling (April 2026)VERIFIED
Nucor Tuscaloosa: 33.234761°N, 87.508498°Wgem.wiki/Nucor_Steel_Tuscaloosa_plant (March 2026)VERIFIED
FWDC $75/tonEREF 2024 tipping fee report; Alta Environmental ASR benchmarksESTIMATED
ASR composition 66% organic, 14% metals, 20% inertsISRI industry data; EPA ASR characterization (DTSC 2013)VERIFIED
ASR heating value ~5,400 BTU/lbGEP Ecotech technical documentation; EPA literatureVERIFIED
Morgan County IDB — $125M Towers & Structuresgovernor.alabama.gov (February 2023)VERIFIED
RCRA Subtitle C reclassification risk for ASROkon Recycling technical review (Oct 2025); Alta Environmental (Oct 2024); 40 CFR §262.11VERIFIED
Carbotura EPA RCRA Solid Waste Exclusion PetitionCarbotura corporate record — February 20, 2026VERIFIED

Planning basis notice: This Economic Impact Report is a delta model comparing State A and State B based on inputs from the Waste Feedstock Study and Proposal. All ESTIMATED values are flagged and require verification through a Community Feasibility Study. This document does not constitute financial, legal, or regulatory advice. US GAAP accounting standard applies.

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