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Napa advances $10M CalRecycle‑funded anaerobic digester MOU to produce renewable natural gas
Summary
City staff presented a memorandum of understanding with Napa Recycling to host an anaerobic digester at the city recycling facility, backed by a $10 million CalRecycle grant; council heard technical details, asked about timing and emissions limits, and voted to advance the MOU and related CEQA findings.
Kevin Miller, material diversion administrator for the City of Napa, told the council the city was awarded a $10,000,000 competitive CalRecycle grant in December 2023 and had amended the agreement through April 2028 to move forward with an anaerobic digestion system at the municipal recycling facility.
Miller said the grant will pay primarily for organics pre‑processing equipment — a state‑of‑the‑art depackager (about $1,100,000), trommel screen, glass crushers and storage — and that the city must own the grant‑funded equipment per the grant terms. He described the digester process as a roughly 21‑day, high‑solids anaerobic digestion system that produces biomethane to fuel trucks and a solid digestate destined for the city's covered static pile compost system. Miller estimated the project would save roughly $270,000 per year in disposal costs once operating and limit initial digestate throughput to about 20,000 tons unless permit conditions change.
Eric Hebert, representing the digester technology vendor, said construction documents are underway and that installation work would begin later in the year; he estimated commercial operation in mid‑2027 if permitting and procurement go as planned. Hebert also said the digester plant would be privately financed and operated under an MOU structure while grant‑funded preprocessing equipment would be city‑owned.
Council members asked about due diligence, permitting and how product would be handled. Miller and Hebert said the city retains control of grant‑funded fueling infrastructure and that Napa Recycling and Napa Recycling & Waste Services (NRWS) will be the first committed local customer for the renewable natural gas. Hebert noted the team has explored off‑site options and a ‘‘virtual pipeline’’ using tanker hauling if pipeline injection is infeasible.
Public commenters and local business and community leaders voiced support, highlighting climate benefits and local leadership. A city webpage and technical appendices provided crash, financial and lifecycle data cited by staff and the vendor. After questions, councilmember Painter moved and Councilmember Narvaez seconded the staff recommendation to approve the MOU, CEQA finding and related budget amendments; the motion carried by voice vote (unanimous). The city will return to council with final negotiation details, budget amendments for supplemental compensation to Napa Recycling for the first 5 years of operations, and any permit conditions identified during due diligence.
What happens next: staff will finalize MOU language, proceed with contracting and permitting, and return with a negotiated agreement and any required budget or contract amendments for council approval. The CalRecycle agreement requires project completion activities by 2028, and staff noted the grant extension allows a realistic installation schedule.
Sources: city staff presentation and the council meeting transcript.
