City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 19, 2023 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: APPROVE A Lease and Energy Services Agreement FOR REQUEST FOR PROPOSAL NO. 2222, with Anaergia, Services, LLC a Delaware limited liability company(LLC), DBA Riverside Bioenergy Facility, LLC, a Delaware LLC, for BIOGAS UPGRADE AND DIGESTATE MANAGEMENT FACILITIES (RIVERSIDE BIOENERGY FACILITY), a term ending twenty-years from the Commercial Operation Date AS DEFINED IN THE LEASE AND ENERGY SERVICES AGREEMENT, with an option for two additional five-year extensions; WAIVE THE competitive bid requirement pursuant to City Charter section 1109 for future tenant and landlord improvement related to the Lease and Energy Services Agreement, including the rehabilitation of Digester No. 5 – FIVE AFFIRMATIVE VOTES ISSUES:
Approve a Lease and Energy Services Agreement for Request for Proposals No. 2222 with Anaergia Services, LLC a Delaware limited liability company, dba Riverside Bioenergy Facility, LLC, a Delaware LLC, for biogas upgrade and digestate management facilities (Riverside Bioenergy Facility), for a term ending twenty-years from the Commercial Operation date as defined in the Lease Energy Services Agreement, with an option for two additional five-year extensions; 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 rehabilitation of Digester No. 5 for a public utility operated by the City.
RECOMMENDATIONS:
That the City Council:
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 Bioenergy Facility, LLC, a Delaware LLC; 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; By at least five affirmative votes, waive the competitive bid requirement pursuant to City Charter section 1109 for future tenant and landlord improvement related to the Lease and Energy Services Agreement, including the rehabilitation of Digester No. 5 for a public utility operated by the City; and 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.
BACKGROUND:
Anaerobic digestion is the decomposition of biodegradable materials under low oxygen conditions. It is a common treatment practice for solid waste, including food waste. Anaerobic digestion produces two main byproducts: biogas and digestate. Biogas is a mixture of methane, carbon dioxide, and small quantities of other gases. Digestate is the non-gaseous material remaining after digestion. Anaerobic digestion is a key component in the wastewater treatment process at the Regional Water Quality Control Plant (RWQCP) and these end products can generate a new funding stream while reducing the impacts on the environment and landfills.
In 2018, the Public Works Department began pursuing a project which would maximize the full potential of the RWQCP. It has sought a project to leverage anaerobic digestion at the RWQCP to address regulatory challenges on climate, waste disposal, and biosolids management. The outcome of these efforts is the proposed “Riverside Bioenergy Facility (Facility)”. This project represents the first public-private partnership (P3) for the Public Works Department and would leverage industry leaders and technology to develop valuable waste-derived end products through new and enhanced treatment processes. Key components of this partnership include:
The private company would lease a portion of the RWQCP for up to 30 years to develop and operate the Facility The Facility would process food waste and other anaerobically digestible materials from the City and adjoining agencies/region The Facility would produce biogas and digestate that have a commercial use. The biogas may be injected into a larger distribution system as Renewable Natural Gas and in later years the digestate would be converted to biochar.
The City would receive rental income from the lease agreement and revenue from the sale of Renewable Natural Gas and biochar. These new funding streams would help maintain and upgrade the sewer system and reduce the overall treatment cost at the RWQCP. The project also aligns with and supports the State’s goals to better protect the environment.
Legislative History
Short-lived Climate Pollutants (SLCP) are powerful climate forces and harmful air pollutants that have an outsized impact on climate change in the near term; methane among them. Organic waste includes: food waste, green waste, landscape and pruning waste, non-hazardous wood waste, and food-soiled paper mixed in with food waste. When disposed of in landfills, organic waste emits 20% of the state's methane. Table 1 outlines laws and policies to reduce these pollutants which have impacted Sewer and Solid Waste Operations.
Table 1 – Laws and Policies Related to Short-lived Climate Pollutants Year
Action/Agency
Action
2014
California Assembly - AB 1826
Business recycling of organic wastes away from landfills. 2016
California Senate - SB 1383
Short-lived climate pollutants emission reductions. 75 percent reduction in the statewide disposal of organic waste from the 2014 levels by 2025. 2017
California Air Resources Board (CARB)
SLCP strategy to accelerate and incentivize SLCP emission reductions in California including:
Use of organic waste to generate renewable energy.
Put organic waste to beneficial use through biogas.
Use excess digestion capacity at WWTPs.
2017
California State Water Resources Control Board
Comprehensive Response on Climate Change (Resolution):
Directed Water Board staff to support CARB’s SLCP Strategy.
Co‐digestion capacity at California WWTPs is available, and it could play a major role in meeting food waste diversion goals (Carollo Engineers, Inc 2019).
There are currently five anaerobic digesters located at the RWQCP – four in active use and one retired. The retired digester is known as Digester No. 5.
In August 2020 the City Council approved the Public Works Renewable Resources Management Plan (Plan) to respond to regulatory demands, pursue efficiencies, and address climate change and sustainability initiatives. The Plan defines eight goals across four resource areas:
Recycled Water Production
Energy Production and Independence, and
Organics Receiving Treatment
Waste Management and Reuse.
Since adoption of the Plan, the Wastewater Division has worked to scope a comprehensive project to implement both the Renewable Resources Management and Envision Riverside 2025 Strategic Plans - a project to improve community well-being, foster environmental stewardship, create economic opportunity, and enhance infrastructure.
In furtherance of these objectives, the Wastewater Division has envisioned a project which would:
Restore Digester No. 5 to active use
Enhance the energy efficiency and operating capacity of all digesters to promote recycling of digestible materials primarily composed of food waste Enhance the generation of biogas from the treatment process Improve collection, handling, and management of biogas and develop and capitalize on its beneficial reuse, Provide a long-term biosolids management solution by way of high-temperature treatment; and Identify a partner to construct and operate the project’s facilities, and provide marketing, distribution, and management of the resultant byproducts.
In March 2022 the City, in partnership with Burrtec Waste Industries, Inc. (Burrtec) was awarded a $3 million grant from CalRecycle to produce food waste feed stock and rehabilitate Digester No. 5. One million dollars of the grant was awarded to Burrtec for equipment to preprocess City food waste at their Agua-Mansa materials recovery facility prior to transport to the RWQCP, and $2 million was awarded to the City for the rehabilitation of Digester No. 5.
To advance the development of the project, the Public Works Department solicited qualifications (Request for Qualifications No. 2144), and later proposals (Request for Proposals No. 2222) from potential Public-Private-Partnership (P3) entities experienced in the financing, designing, constructing, permitting, commissioning, operating, maintaining, and marketing renewable natural gas and digestate facilities.
A P3 project approach was favored as it offers several benefits to the City, including:
Developing a locally controlled facility for organic waste diversion and treatment to provide the City’s Solid Waste Division a reliable and cost-certain solution for SB 1383 compliance.
Allowing idle RWQCP infrastructure to be leveraged to maximally benefit a broader section of the City customer base beyond sewer, while also ensuring the sewer enterprise fund, and rate payers, only fund sewer related activities.
Capitalizing on the expertise of a partner experienced in permitting and operating such facilities with an emphasis on uptime, efficiency, and production.
Expanding local resource recovery efforts and renewable energy generation through external investment; and Positioning the City to capitalize on any future need for a regional organic waste treatment facility as CalRecycle increases SB 1383 enforcement, and neighboring jurisdictions work toward compliance.
Four P3 entities showed interest (RFQ 2144), and the two that were successfully pre-qualified were invited to submit formal proposals. On December 20, 2022, the City’s Purchasing Division released RFP 2222 through the City’s Planet Bids bidding platform. The City did not schedule a pre-proposal meeting, there were 36 questions and answers submitted, and one Addendum was released. Upon bid closing on February 3, 2023, the City’s Purchasing Division received two proposals. On February 13, 2023, the selection committee was provided formal presentations from the pre-qualified P3 entities on their proposals. On February 24, 2023, RWQCP staff were notified of the highest ranked proposer and given authorization to begin negotiations toward a public-private partnership for the Riverside Bioenergy Facility. Table 2 reflects the two proposals received and their respective scores.
Table 2 – RFP 2222 Proposals and Scores
Company
Rank
Score
Anaergia Services dba Riverside Bioenergy Facility, LLC 1 92.75
VICO Infrastructure Company LLC
2 70.75
The Purchasing Manager concurs that the actions are in compliance with Purchasing Resolution No. 23914.
On April 5, 2023, City Council adopted Resolution 23974 authorizing the submittal of a grant application to CalRecycle for $10M towards the Project.
On May 11, 2023, staff provided an update to the Mobility and Infrastructure Committee on the P3 approach, project scope, and anticipated outcomes. The Mobility and Infrastructure Committee received and filed the report.
DISCUSSION:
In its Short-lived Climate Pollutants (SLCP) Strategy, the California Air Resources Board (CARB) assessed various means of creating methane emission reductions by diverting organic wastes from landfills. One of the viable means identified is diverting food waste to wastewater treatment facilities with existing excess digester capacity. Although there are various beneficial uses for biogas generated from food waste digestion, CARB focused their analysis on conditioning, upgrading, and pipeline injection of renewable natural gas.
The SLCP suggested organic waste diversion to existing wastewater treatment plants can generate a positive return. It found that using renewable natural gas as a transportation fuel can result in significant potential revenue streams and reduce criteria pollutant emissions from the transportation sector. Moreover, CARB noted that important environmental, health, and economic benefits may be most realized in disadvantaged communities by prioritizing pipeline injection of renewable natural gas, as proposed for the Riverside Bioenergy Facility.
The RWQCP is ideally situated for interconnection and pipeline injection of renewable natural gas as there is a Southern California Gas Company (SoCal Gas) distribution pipeline nearby at the corner of Jurupa Avenue and Acorn Street. Since 2019, RWQCP staff have worked closely with SoCal Gas to conduct the investigations and studies necessary to facilitate interconnection. The P3 would continue these efforts.
P3 Partner
Anaergia is a leading solutions provider in resource recovery and valuable end-products from organic wastes including biosolids and food wastes. Their technologies and integrated solutions are used to achieve organics recycling and municipal waste diversion goals, manage digestate, produce renewable energy from biogas, and generate revenue sources for their partners globally.
Anaergia currently owns and operates a co-digestion and renewable natural gas facility commissioned in 2022 at the Victor Valley Wastewater Reclamation Authority (VVWRA) in Victorville, CA. The facility is near-identical to what is envisioned for the Riverside Bioenergy Facility and was recently selected as the Wastewater Project of the Year by Global Water Intelligence at its 2023 Global Water Summit in Berlin, Germany. Anaergia was also selected as a 2023 Net Zero Carbon Champion as the company whose products and services had done the most to reduce the carbon emissions of their customers in 2022.
In 2023 alone, Anaergia has been awarded the following waste recovery/bioenergy projects:
February 2023 - Renewable power from wastewater sludge, East County Advanced Water Purification facility, Santee, CA April 2023 – Renewable power from food waste and wastewater, Monterey One Water, Marina, CA May 2023 – Renewable Natural Gas sales agreement with Toyota to create hydrogen for Fuel Cell, Long Beach, CA July 2023 - $5M grant from State of Michigan for bioenergy facility in Kent, MI Riverside Bioenergy Facility
Anaergia desires to enter into a P3 and install, own, and operate an anaerobically digestible materials, including food wastes, receiving and gas conditioning facility at the RWQCP. The facility would be used to enhance biogas production in the RWQCP digesters and subsequently upgrade the biogas to biomethane. Biomethane can be sold as renewable natural gas, by way of injection to a natural gas pipeline owned by SoCal Gas.
Anaergia has successfully permitted the construction and operation of similar projects within the South Coast Air Quality Management District (SCAQMD). As a critical and necessary milestone for the development of any project, the importance of successfully navigating the SCAQMD permitting process cannot be overstated.
As depicted in Figure 1, Riverside’s existing, and Anaergia-enhanced biosolids management facilities, coupled with Anaergia’s Biogas upgrading facilities would comprise the Riverside Bioenergy Facility (Facility) through which the City and Anaergia would share benefits.
Figure 1 – Proposed Project Structure for Riverside Bioenergy Facility.Figure 1 – Proposed Project Structure for Riverside Bioenergy Facility.
Figure 1 – Proposed Project Structure for Riverside Bioenergy Facility.
Figure 1 – Proposed Project Structure for Riverside Bioenergy Facility.
In the initial phase, biogas generated from food waste digestion at the RWQCP could be upgraded with a renewable gas conditioning facility and injected into the SoCal Gas pipeline. In later phases. digested food waste digestate, the non-gas treatment by-product, could be processed into Biochar. Biochar is a charcoal-like substance which is made by exposing organic material to high heat in a controlled low-oxygen process. It is mainly used to enhance soil fertility. Both renewable natural gas and Biochar could create revenue streams and rate stabilization mechanisms for the City and the P3. Rehabilitation of Digester No.5 would facilitate these opportunities.
RFP No. 2222 - Lease and Energy Services Agreement
The Proposed Lease and Energy Services Agreement (Agreement) is structured to facilitate a measured review of the project feasibility, with opportunities for the parties to meet and confer regarding their individual risks and needs before proceeding to subsequent phases.
Timeline and Agreement Term
As depicted in Figure 2 below, the development of the Facility will be evaluated, designed, and constructed over a period of up to four years followed by up to 30 years of commercial operation. The Project Commercial Operation Date is defined as the date upon which the Project delivers biomethane to the SoCal Gas pipeline. The Agreement is proposed to end on the 20th anniversary of the Commercial Operation Date. Commercial operation, and beginning upon execution of the Agreement, would be preceded first by a feasibility period followed by construction.
Figure 2 – Proposed Lease Energy Services Agreement Timeline and Milestone Dates.Figure 2 – Proposed Lease Energy Services Agreement Timeline and Milestone Dates.
Figure 2 – Proposed Lease Energy Services Agreement Timeline and Milestone Dates.
Figure 2 – Proposed Lease Energy Services Agreement Timeline and Milestone Dates.
Anaergia would have the sole discretion to extend the 20-year term of the Agreement for two additional five-year periods provided there is no material default in its obligations under the Agreement.
Feedstock Availability
Critical to the success of food waste co-digestion projects to produce renewable natural gas is the availability of food waste feedstock. Recognizing this limitation, the P3 would phase improvements to achieve increased biogas and digestate production, while also limiting the initial equipment outlay to the available food waste supply.
The Facility will be sized to receive and process 200 tons per day (tpd) of food waste, equal to the amount of guaranteed feedstock available at the onset of the Project. This includes 100 tpd of City generated food waste along with an additional 100 tpd commitment from Burrtec. The Facility will allow for phased growth along with increases in food waste availability. Anaergia’s proposal envisions future improvements to RWQCP infrastructure to receive and co-digest as much as 800 tpd of food waste and 300 tpd of digestate management as feedstock availability increases along with SB 1383 implementation and enforcement.
Proposed Premises
The Facility will utilize a combination of vacant land and other decommissioned areas at the RWQCP, an adjacent City-owned property, and existing plant processes which will be incorporated into the project as functional parts of the Facility as shown in Figure 3. The final premises will be determined during the feasibility period and incorporated into the Agreement. 123456789123456789
1 2
3 4
5 6
7 8
9 1
2 3
4 5
6 7
8 9
Figure 3 – Anticipated Riverside Bioenergy Facility Premesis Area
Current Use
Area
Current Use
1 Vacant Land
6 Idle Digester No. 5
2 Solids Handling Facilty
7 Decommissioned Gas Blending Facility
3 Biogas Flare Station
8 Decommissioned Cogeneration Building
4 Chemical Storage and Dosing
9 Vacant Land/Parking Lot
5 FOG/ADM Receiving Station
Project Periods, Rents, and Outcomes
The itemized rent and outcomes for each period are summarized in Table 3.
Table 3 – Rent and Outcomes for Each Period
Feasibility Period
Upon execution of the Agreement, the P3 will enter a 12-month feasibility period wherein Anaergia, doing business as Riverside Bioenergy Facility, LLC (RBF), and the City will conduct studies to assess the individual risks, needs, and interests and for the overall success of the partnership. The City may authorize up to two 6-month extensions of the feasibility period.
Staff will return to City Council toward the end of the feasibility period with a summary update, and to provide the City Council an opportunity to consider specific design details, costs, anticipated revenues, and other project outcomes. During the Feasibility Period the following will occur:
Feasibility Studies
RBF will be entitled to make investigations and studies of the RWQCP to fully evaluate the project’s feasibility and inform a decision on whether to proceed to construction.
Cost-Based Tipping Fee Technical Memorandum
Concurrently, the City would quantify its anticipated ongoing costs to treat non-sewer wastes at the RWQCP including any potential capital costs by way of a “Cost Based Tipping Fee Technical Memorandum (Tech Memo)”. The results of the Tech Memo will be incorporated into the Agreement which allows for the periodic review and update of the Tech Memo to account for any material changes in costs and revisions to the tipping fee Feasibility Period Rent
There are no rent payments to the City during the feasibility period.
Construction Period
Although the “construction period” is not specifically defined in the Agreement, it is the period between the commencement date and the commercial operation date.
The construction phase would install the process equipment for biogas conditioning and renewable natural gas upgrading, establish the interconnection to SoCal Gas, and rehabilitate Digester No. 5. The deadline to spend the $2 million CalRecycle grant award for improvements to Digester No. 5 is April 2025.
Other Landlord Improvements
Landlord improvements necessary to enhance or tie-in existing RWQCP processes to the to the Riverside Bioenergy Facility, and identified during the feasibility period, would be constructed by RBF on behalf of the City.
Anaergia scored and ranked the highest due to their successful permitting, development, and operation of projects identical to what is envisioned for the City of Riverside. In most cases these projects employ Anaergia’s in-house technologies for gas upgrading, solids mixing, and food waste processing, their proprietary processes design, and the work of their long-time contractor partners in developing such facilities.
The ability of the P3 to secure financing, deliver the project on time, and to meet any deadlines tied to capital or stipulated pursuant to potential grant funding, will be critically dependent on the P3’s ability to move toward commercial operation with minimal delay. Moreover, and equally critical to the timely permitting and development of the Facility, is flexibility for the P3 to use proven and desired equipment, technologies, and contractors.
If successful in its pursuit of $10.0 million in grants to support required improvements to the City Facility, these funds would be equally burdened by expenditure and project milestones and deadlines as those awarded for Digester No. 5.
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.
In the interest of financing, scheduling, and delivery of a successful project to the City, staff recommends waiving 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 rehabilitation of digester No. 5.
Construction Period Rent
During the construction period the City would receive a base monthly rent of $1,000 per month.
Operational Period
Upon delivery of biomethane to the SoCal Gas pipeline, the project would proceed from the construction period to the operational period. Throughout the operational period the Riverside Bioenergy Facility would receive and process up to 200 tons of food waste per day.
Operational Period Base Rent
Throughout the operational period, base rent paid to the City would increase to $10,000 per month in addition to:
Host Fee - As discussed, during the feasibility period the City will prepare a technical memorandum to quantify its ongoing costs to treat non-sewer wastes at the RWQCP including any associated capital costs and apportion those costs on a per ton basis (“tipping fee”). All inbound anaerobically digestible material, including food waste, received by Anaergia for processing at the Facility would be subject to the tipping fee per ton received.
Biogas Royalty - The City would receive 15% of the net revenue generated from the operation of the biogas upgrading facility. Net revenue from biogas to the upgrading facility would take into consideration costs to operate the facility and capital costs to construct it. “Net revenue,” “Operating Charge,” and “Capital Charge” would be defined during the feasibility period. The operating charge and capital charge would be subject to an annual escalation at a rate to be defined during the feasibility period.
Biochar Component - The City would receive 5% of the net proceeds from the sale of biochar generated at the Biosolids Management Facility. Net proceeds from the biochar would be calculated by taking the actual gross receipts (excluding shipping costs and sales taxes) received from sales of biochar and deducting therefrom the costs for production of biochar, as calculated on a cost per ton basis.
As shown in Figure 5, the Riverside Bioenergy Facility will establish a circular resource recovery economy at the RWQCP. It would facilitate the renewal of onsite infrastructure and enhance the overall value of the RWQCP in its ability to generate revenue that would help reduce ongoing and ever-increasing sewer rate pressures.
As statewide enforcement of SB 1383 increases and more jurisdictions come into compliance, there will be an equally growing need for sustainable disposal outlets in the region. The Riverside Bioenergy Facility would be strategically positioned to capitalize on this need and expand to meet the demand.
Figure 5 – Riverside Bioenergy Facility Circular Resource Recovery Economy.Figure 5 – Riverside Bioenergy Facility Circular Resource Recovery Economy.
Figure 5 – Riverside Bioenergy Facility Circular Resource Recovery Economy.
Figure 5 – Riverside Bioenergy Facility Circular Resource Recovery Economy.
The potential P3 represents a major leap forward in optimizing infrastructure at the RWQCP to respond to regulatory demands, realize efficiencies, address climate change, and advance sustainability initiatives. It would further position the City of Riverside as a national leader in leveraging public infrastructure for maximum benefit in areas of renewable energy, waste diversion, and reuse.
STRATEGIC PLAN ALIGNMENT:
This item supports Strategic Priority 4 – Environmental Stewardship and Goal 4.6 – Implement requisite measures to achieve Citywide carbon neutrality no later than 2040. Strategic Priority 5 – High Performing Government and Goal 5.2 – Utilize technology, data, and process improvement strategies to increase efficiencies, guide decisions and ensure services are accessible and distributed equitably Citywide. Strategic Priority 6 – Infrastructure, Mobility, and Connectivity and Goal 6.3 – Identify and pursue funding opportunities to develop, operate, maintain, and renew infrastructure and programs that meet the community’s needs.
This item aligns with each of the Cross-Cutting Threads as follows:
Community Trust – Management and capitalization of the City’s waste streams benefits all City residents, businesses, and visitors by helping to improve environmental quality, stabilize rates, and leverage previous investments in infrastructure.
Equity – Optimizing infrastructure at the RWQCP to respond to regulatory demands, realize efficiencies, address climate change, and advance sustainability initiatives benefits all City residents and businesses.
Fiscal Responsibility – Maximizing the benefit of City infrastructure supports Public Works’ efforts to minimize inefficiencies, maximize reliability, and stabilize rates.
Innovation – Public Works’ Wastewater Division is focused on implementing the newest technologies to maximize sustainability efforts and lead on resource recovery.
Sustainability & Resiliency – The City’s Regional Water Quality Control Plant has a wealth of opportunity to be a regional leader in leveraging and expanding its existing infrastructure to meet the needs of the present and positioning the City of Riverside to be at the forefront of resource recovery and beneficial reuse efforts nationally.
FISCAL IMPACT:
There is no immediate fiscal impact to the City in approving the Lease and Energy Services Agreement. During the project feasibility period the City and Anaergia would define the various landlord and tenant improvements necessary to develop the Riverside Bioenergy Facility, its costs, and their allocation. Staff would return to City Council separately for approval of any expenditures for the rehabilitation of Digester No. 5 and for construction of the Riverside Bioenergy Facility should the P3 desire to proceed.
Prepared by: Edward Filadelfia, Deputy Public Works Director Approved by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Anergia Proposal – Biogas & Digestate Management Upgrading Facilities Lease and Energy Services Agreement between the City of Riverside and Riverside Bioenergy Facility, LLC.
RFP No. 2222 Award Recommendation
RFP 2222 – Riverside Bioenergy Facility - Lease and Energy Services Agreement ● Page 2