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Committee approves 20-year agreement for landfill gas-to-RNG project; city to receive leachate funding and rising revenue
Summary
The Neighborhoods Committee approved a long-term agreement to allow a private company to build a renewable natural gas (RNG) facility at the city landfill. The company will bear capital costs; the city will receive an upfront and recurring payments and expects revenue growth over time.
The Neighborhoods Committee voted to approve a 20-year agreement (with renewal options) that allows a private firm to build and operate a renewable natural gas facility at the city landfill.
Eric Fuller, Department of Public Works, said the private operator will construct the RNG facility and bear the capital cost. Fuller told the committee the company needs a multi-decade contract so it can recoup its investment. Fuller also said the agreement extends rights to additional landfill disposal units (Units 6–14) and any future expansion, and that the vendor will provide $1 million to support leachate-management infrastructure.
Steve Gabriel of NextEra Energy Resources told the committee the capital investment is “in the tens of millions” but did not give a final figure because contractors are still pricing the work. Fuller and other staff said the arrangement imposes no capital cost on the city and could sharply increase revenue from landfill gas operations: current annual revenues are roughly $193,500; staff and company projections given to the committee estimated revenue could rise to about $400,000 through 2029 and to roughly $2,000,000 per year after 2030 if projections hold.
Councilmembers asked about contract length and the life of landfill gas production. Fuller explained gas production follows a bell curve and may persist for decades; the 20-year contract plus renewal options is intended to align with the company’s investment cycle. The agreement as presented includes a 20-year initial term with a five-year renewal option and automatic one-year renewals thereafter if both parties agree.
The committee recorded an 8–0 vote in favor of the agreement.
The motion carried with the committee noting the city will receive upfront and projected recurring funds and that operational and environmental monitoring will remain under the city’s oversight.
