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1 RiversideCA.gov1
RiversideCA.gov
AMENDED LEASE AND ENERGY SERVICES AGREEMENTRIVERSIDE BIOENERGY FACILITYPUBLIC PRIVATE PARTNERSHIPCity Council December 9, 2025Public Works RiversideCA.gov2
PUBLIC-PRIVATE PARTNERSHIP (P3)Public-Private Partnership Would:Develop a locally-controlledfacility for organic waste diversion and treatment Position the City to capitalize on regional need and demandLeverage idle RWQCP infrastructure forrate-payer benefitand private investmentCapitalize on private expertise and revenue share Expand resource recovery and renewable generationLong-term solutions for City SB 1383 compliance and RWQCP biosolids management 1 2
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2 RiversideCA.gov3
•Project:Public Private Partnership for the Anaerobic digestion of food waste at RWQCP•Products:Biogas (RNG)anddigestate•Outcomes: Divert organic wastes from landfills and create new revenue streamsPROJECT BACKGROUND & TIMELINE RiversideCA.gov4
PROJECT SCOPE AND INFRASTRUCTURE
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3 RiversideCA.gov5
PROJECT SCOPE AND INFRASTRUCTURENew Digester 5 Dome Placement •City-funded:Digester No. 5 rehab ($10.5M)•Tenant-funded:Phase I Biogas upgrading facility ($40M)•Grant-funded:Feedstock reception station ($9.8M)•Capacity:250 (Phase I) to 500 (Phase II) tons/day•RNG pipeline connection to SoCalGas RiversideCA.gov6
•Base Rent:–$1,000/month (construction)–$10,000/month (operations)•Host Fee:Based on ADM tonnage •Biogas Royalty:15% of net RNG revenueREVENUE STREAMS TO CITYProjected Annual Revenue–$1.5M/year at 250 TPD–$3M/year at 500 TPD5 6 11/21/2025
4 RiversideCA.gov7
•Diverts182,500 tons/yearof organic waste from landfills•Reduces methane emissions•Supports:–SB 1383 (organic waste diversion)–AB 1826 (methane reduction)ENVIRONMENTAL AND STRATEGIC BENEFITSVictor Valley Wastewater Reclamation Authority RNG Facility RiversideCA.gov8
•Agua Mansa Organic Separator–Expected operational date:Q1 2026•Digester No. 5 Improvements–Scheduled to be operational:Q1 2026•Feedstock Reception Improvement Project–Anticipated operational date:End of Q1 2026•Biogas Upgrading System–Construction initiated:Q1 2026–Operations expected:Q3 2027•Southern California Gas Interconnection–Construction start:Q4 2026–Operational target:Q3 2027•Target Delivery of Renewable Natural Gas (RNG)–Projected delivery to SoCalGas:Summer 2027PROJECT TIMELINE2026Feedstock Reception & Treatment ImprovementsBiogas Upgrading SystemInterconnection to SoCal GasSummer 2027Delivery of RNG7 8 11/21/2025
5 RiversideCA.gov9
That the City Council:1. Approve the Amended and Restated Lease and Energy Services Agreement withRiverside Bioenergy Facility, LLC, a Delaware limited liability company, for the RiversideBioenergy Facility at the RWQCP, for a term ending twenty (20) years from theCommercial Operation Date as defined in the Amended Lease, with options for twoadditional five-year extensions, concluding the Feasibility Period;2. Authorize the City Manager, or designee, to execute the Amended and RestatedLease and Energy Services Agreement and including making minor and non-substantive changes, subject to the availability of budgeted funds;3. Authorize the City Manager, or designee, to execute any necessary amendments orextensions consistent with the terms of the Amended Lease, including exercising theextension options for up to two additional five-year terms.RECOMMENDATIONS9