The Metropolitan King County Council on July 22 approved a substitute ordinance authorizing the county executive to enter an asset purchase agreement to acquire the landfill gas processing plant at Cedar Hills Regional Landfill from Bioenergy Washington for $70 million, and to pay $5 million to settle outstanding litigation tied to the facility.

John Taylor, director of the Department of Natural Resources and Parks (DNRP), told the council the facility processes landfill gas—primarily methane—into pipeline-quality gas. For the county, ownership would stop a period of flaring and give the county control of a resource that DNRP staff estimate could supply the equivalent heat for roughly 17,500 homes.

Nut graf: The ordinance (proposed substitute Ordinance No. 2025-0176.2 as amended) settles a multi‑year dispute, transfers the plant to county ownership on an "as‑is" basis, and includes a July–August schedule that requires closing by Aug. 29, 2025, unless both parties agree to extend. The council approved the ordinance and a technical amendment with unanimous support (9–0).

Under the negotiated transaction described to the council, the county would: acquire the plant for $70 million on an as‑is basis; make a $5 million payment to resolve the litigation without declaring a prevailing party; and hold $3 million in earnest money in escrow (the meeting record notes the earnest-money amount as a penalty to the county if it withdrew without meeting contract conditions). The legislation includes a final negotiated asset purchase agreement, schedules listing software and patents included in the sale, and finalized tax allocation schedules.

DNRP staff said the county lacks current in‑house operating capacity to run the facility immediately but has identified private operators that could operate the plant under contract while the county builds internal expertise. Officials estimated annual operating costs in the order of $12 million a year and said they had received detailed financial and engineering due diligence from Bioenergy Washington.

Council members asked about risk, operations, city partners and contract timing. Director Taylor said the county performed vibration testing on machinery, hygiene testing of the plant atmosphere, and pipe inspections; DNRP reported the results were favorable. He warned market prices for gas can be volatile but said the county expects long‑term fiscal upside. He also said interlocal agreements (ILAs) with the county’s 37 participating cities run through 2040; anticipated revenue would reduce pressure on solid‑waste rates and increase the chance cities remain in the regional system.

The ordinance before the council included Amendment 1, which replaced the committee draft asset purchase agreement with a final negotiated version dated July 18 and added three documents not previously available in committee: a copy of the patent included under license, a software schedule, and an allocation schedule for tax purposes. The amendment also corrected language in the transition‑services agreement about indemnification.

Clarifying details and deadlines recorded on the public record: the purchase price is $70,000,000; the litigation settlement payment is $5,000,000; earnest-money held in escrow $3,000,000; the statutory and contractual closing deadline is Aug. 29, 2025 (unless both parties agree to extend); operating costs estimated about $12,000,000 annually; ILAs run through 2040 for participating cities. The draft asset purchase agreement was distributed to council members and replaced by the final July 18 version prior to the vote.

The council adopted the substitute ordinance as amended by unanimous roll call (9–0). Councilmembers thanked DNRP staff and council central staff for expedited, detailed due diligence.

Sources: Council briefing by DNRP Director John Taylor and staff; council central staff amendment memo; roll-call vote July 22, 2025.