Committee advances PSE agreement for Cedar Hills biomethane; parts of deal discussed in executive session

The Budget and Fiscal Management Committee on Aug. 27 voted to advance an ordinance (proposed ordinance 2025-0236) authorizing the county executive to enter a long-term agreement with Puget Sound Energy to sell processed biomethane produced at Cedar Hills Regional Landfill and a portion of related environmental attributes. The committee conducted a closed executive-session discussion on confidential commercial terms before advancing the item with a legal amendment.

Background and transaction: In 2023 the private processor BEW (BioEnergy Washington) ceased operating its processing plant at Cedar Hills. Last month the county purchased the plant. Wendy Soohoo, council counsel, said the proposed agreement would authorize a sale of biomethane and some environmental attributes to Puget Sound Energy for the period Sept. 1, 2025 through Oct. 31, 2035; executive staff estimate the agreement would generate roughly $3.5 million in late-2025 revenue and more than $10 million in future full years, with estimated pipeline usage costs of about $150,000 per year.

Confidential terms and executive session: Soohoo told the committee some contract provisions are blank in the public draft because of a confidentiality agreement with Puget Sound Energy; those redacted terms were discussed in executive session so the committee could consider legal and financial risks. The council convened an executive session under RCW 42.30.110(1)(i) to discuss legal risks tied to public disclosure of negotiation details.

Policy and revenue-use language: Legal counsel offered a technical amendment to clarify that King County retains rights to environmental attributes for biogas above the estimated contract quantity; the amendment also altered operative language about the use of any excess revenues. The solid waste division requested the operative language be broadened to allow excess revenues to be used for division purposes rather than expressly prioritizing rate stabilization or greenhouse-gas reduction in the ordinance text; staff said in committee that budget decisions and any earmarking for greenhouse-gas measures remain subject to the annual budget process.

Committee action: After the executive session and legal amendment discussion, the committee moved and approved the amended ordinance with a due-pass recommendation. The committee’s vote on the final action was 5 ayes, 0 noes, with two members excused; the ordinance will be transmitted to full council. The committee also directed executive staff to follow up with final contract language consistent with the amendments agreed in committee and to return any remaining contractual authorizations as required by county procurement code.

Ending: Committee members praised staff for rapid work to operationalize the county’s purchase of the former BEW plant and said selling biomethane for beneficial reuse could reduce flaring and generate revenue for the solid-waste division. The committee advanced the agreement to full council for final action.