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1 RiversideCA.gov
1 RiversideCA.gov
RFP 2222
LEASE AND ENERGY SERVICES AGREEMENT
RIVERSIDE BIOENERGY FACILITY
PUBLIC PRIVATE PARTNERSHIP
City Council
December 19, 2023
Public Works
RiversideCA.gov
2 THE WHY
• Senate Bill 1383 - California is
the only State to require:
Organics recycling for all waste
Edible food recovery programs
Food waste diversion programs
California Senate
Bill 1383 mandates:
RWQCP long-term
biosolids management:
• Biosolids disposal costs continue
to increase year-over-year
• Biosolids disposal locations less
available and waste disposal
requirements more stringent
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3 1. August 2020, City Council Approves Public works Renewable Resource Management Plan
2. Organic waste recycling at RWQCP can support SB 1383 compliance and enhance project impact
3. RWQCP infrastructure and biogas currently underutilized
4. RWQCP upgrades can optimize infrastructure and generate revenue from byproducts (biogas & digestate)
5. Biosolids disposal options and costs are uncertain and pose long-term risk to the RWQCP
6. Experienced partner would provide financing, infrastructure, and operations, reducing project risk to City
PROJECT BACKGROUND
RiversideCA.gov
4 Position the City of
Riverside:
Capitalize on future regional
need & demand for organic
waste disposal options
PROJECT VISION
Biogas
Opportunity:
Upgrade RWQCP biogas to
Renewable Natural Gas for
SoCal Gas pipeline
injection and sale
Digestate
Management:
Process and manage
biosolids from anaerobic
digestion for sale
Digester No. 5
Rehabilitation:
Return digester to service to
enable digestion of food waste,
leveraging $2M in awarded
CalRecycle grant funds
Riverside
Bioenergy
Facility
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5 REQUEST FOR PROPOSALS 2222
OutcomeActionDate
Pre-qualification of entities with related
experience
Request for Qualification 2144March 2022
Two proposals receivedRequest for Proposals 2222December 2022 Selection committee received
presentations
Proposal PresentationsFebruary 2023
Authorization to begin negotiationHighest ranked proposer releasedFebruary 2023 Resolution authorizing $10M grant
application to CalRecycle
City CouncilApril 2023
Receive and file update on project
and P3 approach
City Council Mobility and
Infrastructure Committee
May 2023
Lease and Energy Services Agreement
(Riverside Bioenergy Facility)
City Council Consideration December 2023
RiversideCA.gov
6 PUBLIC-PRIVATE PARTNERSHIP (P3)
Public-Private Partnership Would:
Develop a locally-controlled
facility for organic waste
diversion and treatment
Position the City to
capitalize on regional
need and demand
Leverage idle RWQCP
infrastructure for rate-payer
benefit and private investment
Capitalize on private
expertise and revenue
share
Expand resource
recovery and renewable
generation
Long-term solutions for City SB
1383 compliance and RWQCP
biosolids management
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7 PUBLIC-PRIVATE PARTNER
Leading Provider in:
• Integrated Solutions & Resource
Recovery
• Valuable end-products from
organic wastes
• Renewable energy from biogas
• DBA Riverside Bioenergy Facility
Award Winning:
• Victor Valley Water Reclamation
Facility
• 2023 Wastewater Project of the Year
• Near-identical to proposed Riverside
Bioenergy Facility
RiversideCA.gov
8 PROJECT STRUCTURE
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9 PROJECT TIMELINE
Proposed Project Timeline –
Planning through Commercial Operation:
RiversideCA.gov
10 FEASIBILITY PERIOD
Feasibility Study
• Site condition investigation &
suitability assessment
• Infrastructure & interconnection
evaluation
Tip Fee Tech Memo
CEQA Strategy
30% Design and Permitting
Max Price and Financing
• Quantify non-sewer treatment
costs to Sewer Fund
• Develop tipping fee (per ton
received) to offset these costs
Feasibility
Period
Construction
Period
Operational
Period
Return to City Council
• Project details
• Approval to proceed
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11 CONSTRUCTION PERIOD
Feasibility
Period
Construction
Period
Operational
Period
SoCal Gas Interconnection
Waste Receiving Upgrades
Biogas Conditioner &
Renewable Natural Gas
Upgrader
Anaergia Proprietary Biogas Upgrader
$1,000/mo. Base Rent to City
RiversideCA.gov
12 OPERATIONAL PERIOD
Feasibility
Period
Construction
Period
Operational
Period
Anaergia Victor Valley Biogas Conditioning Facility
Food Waste Receiving and
Digestion
Renewable Natural Gas Injection
Base Rent = $10,000/mo.
Host Fee = $/Ton delivered
Biogas Royalty = 15% net revenue
Biochar = 5% net proceeds
City Proceeds
Biogas Conditioning and Upgrade
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13 RIVERSIDE BIOENERGY FACILITY
Current UseArea
Vacant Land1
Solids Handling Facility2
Biogas Flare Station3
Chemical Storage &
Dosing
4 FOG/ADM Receiving5
Digester No. 56
Decommissioned Area7
Decommissioned Building8
Vacant Land/Parking Lot9
Final premises to be determined
during feasibility phase
RiversideCA.gov
14 DIGESTER NO. 5 REHABILITATION
1. Rehabilitate for high solids digestion
with Anaergia mixers and proprietary
service boxes
2. Expand near-term waste receiving
and gas production
3. Offset fuel cell natural gas purchases
4. Estimated $12 - 15M savings from
rehab vs. new construction
5. $2M Cal-recycle Grant Award
6. Deadline April 2025
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15 IMPROVEMENTS - CHARTER SECTION 1109
1. Improvements constructed by Anaergia, DBA
Riverside Bioenergy Facility and subcontractors
2. Anaergia in-house/propriety technologies for gas
upgrading, solids mixing, and food waste
processing
3. Flexibility to use proven and desired equipment,
technologies, and contractors will affect permitting
and project success
4. Recommends waiving competitive bid pursuant to
City Charter section 1109 for project tenant and
landlord improvements
5. Return to City Council for award of individual
construction contract(s)
Section 1109 of the City
Charter allows projects for the
construction and/or
improvement of any public
utility operated by the City or
for the purchase of supplies or
equipment for any such utility
to be exempted from the
requirements to award to the
lowest responsible bidder
after public notice of such
opportunity, and provided
the City Council so
determines by at least five
affirmative votes.
RiversideCA.gov
16 SUSTAINABLE AND SELF-RELIANT RIVERSIDE
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17 Strategic Priority 4 – Environmental Stewardship
Goal 4.6: Implement the requisite measures to achieve citywide carbon neutrality no later than 2040.
Strategic Priority 5 – High Performing Government
Goal 5.2: Utilize technology, data and process improvement strategies to increase efficiencies, guide decision making and ensure services are accessible and distributed equitably throughout all geographic areas of the City.
Strategic Priority 6 – Infrastructure, Mobility, and Connectivity Goal 6.3 Identify and pursue new and unique funding opportunities to develop, operate, maintain, and renew infrastructure and programs that meet the community’s needs.
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
18 That the City Council:
1. Award RFP No. 2222 for Biogas upgrade and digestate management facilities to Anaergia Services, LLC a Delaware limited liability company (LLC) doing business as Riverside Bi oenergy Facility, LLC, a Delaware LLC;
2. Approve the Lease and Energy Services Agreement (Agreement) with Riverside Bioenergy Facility, LLC a Delaware LLC for a term ending twenty-years from the Commercial Operation Date as defined in the Agreement, with an option for two additional five-year extensions;
RECOMMENDATIONS
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19 3. By at least five affirmative votes, waive the competitive bid requirement pursuant to City Charter section 1109 for future tenant and landlord improvements related to the Lease and Energy Services Agreement, including the rehabilit ation of Digester No. 5 for a public utility operated by the City; and
4. Authorize the City Manager, or designee, to execute the Lease and Energy Services Agreement with Riverside Bioenergy Facility, LLC, including making minor and non-substantive changes and to extend the term, for up to two additional five-year terms.
RECOMMENDATIONS
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