SUBJECT
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Approve First Amendment to a Piggyback Agreement for Landfill Gas Purchases, and a Lease and Access Agreement for a North Central Landfill renewable natural gas processing facility site. (No fiscal impact)
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DESCRIPTION
On May 2, 2023, the County and Polk County RNG, LLC entered a Piggyback Agreement (the “Agreement”) of a Landfill Gas Purchase Agreement dated October 5, 2020 with the New River Solid Waste Association, an association of political subdivisions of the State of Florida. The Agreement allows the County to sell the landfill gas naturally produced at the North Central Landfill (“NCLF”) to Polk County RNG, LLC, a company affiliated with Opal Fuels, Inc., a nationwide leader in the production and distribution of low-carbon intensity renewable natural gas. Polk County RNG, LLC will lease a site at NCLF where, at its own expense, it will build and operate a facility which will accept landfill gas (“LFG”) which the County collects and convert it to a usable form of renewable natural gas (“RNG”). To conform the New River agreement for the County’s use, the Agreement must be amended to identify the following NCLF-specific information: leased site description, leased site plan, point of gas delivery, RNG facility information, and technical interconnections between the RNG facility and the NCLF landfill gas collection system. The proposed amendment includes exhibits which adds this information to the Agreement. The proposed amendment also adds a new section to the Agreement which requires Polk County RNG, LLC to construct and install an additional flare at the NCLF if during the Agreement term the landfill produces LFG in excess of the existing flare’s (EU011) permitted capacity due to NCLF gas collection system improvements made at Polk County RNG, LLC’s request.
Staff also requests approval of the proposed Lease and Access Agreement for the lease of an approximately five (5) acre site at the NCLF where Polk County RNG, LLC will construct and operate the RNG facility. The lease agreement also provides for the grant of easements across the landfill for utilities supporting the facility, and for the landfill gas pipelines necessary to transport LFG to the facility and processed gas from the facility to offsite RNG pipelines. The initial Lease term will extend through April 26, 2042, the same as the Agreement term, and the parties may negotiate for an extended term. Polk County RNG, LLC may only use the leased premises for the production, delivery, sale, transfer, and disposal of RNG to include the construction, development, operation, maintenance, and removal of the RNG facility. Polk County RNG, LLC will pre-pay the nominal rent of $1.00 per year for the lease; the County also receives payment for its sale of the landfill gas to Polk County RNG, LLC pursuant to and in accordance with the Agreement.
RECOMMENDATION
Approve First Amendment to a Piggyback Agreement for Landfill Gas Purchases, and a Lease and Access Agreement for a North Central Landfill renewable natural gas processing facility site.
FISCAL IMPACT
No Fiscal Impact
CONTACT INFORMATION
Brian Cogswell
Site Manager
Polk County Waste & Recycling
10 Environmental Loop S FL 33880-
BrianCogswell@polk-county.net <mailto:BrianCogswell@polk-county.net>
863-284-4319 Office