Adopt resolution authorizing Northern Recycling, LLC to submit a grant application to CalRecycle seeking $10 million for the expansion of Northern Recycling's Composting Facility at the Yolo County Central Landfill. (No general fund impact) (Lindbo/Juhler) 

At the Board meeting of April 23, 2019, the Board authorized the Director, Division of Integrated Waste Management, to enter into negotiations with Northern Recycling, LLC, to finance, construct and operate a Compost Facility and a Construction, Demolition and Inert Facility at the Yolo County Central Landfill (Landfill), as well as adopted the appropriate CEQA document for the proposed project. Northern Recycling's Compost Facility at the Landfill officially started operations on July 1, 2022, and was immediately operating at capacity, demonstrating the high demand for compost services. Recently, Northern has had to turn down opportunities to bring in additional tonnage. The County receives a payment of $10 per ton for compost feedstock coming from Yolo County jurisdictions and from the City and County of Sacramento. The County receives a payment of $5 per ton of compost feedstock that is sourced by Northern Recycling to utilize the facility. In addition, the County receives a royalty of 50 cents per ton of compost sold. These amounts will increase with CPI going forward.

Northern Recycling also operates the Landfill's Anaerobic Digesters, another form of composting green waste, which are located on top of a nearby closed landfill unit. Yolo County and Northern staff have determined that Northern can run operations more smoothly if the material processed by the Anaerobic Digesters is instead processed at the Compost Facility, consequently saving the County money.

For these reasons staff would like the Board to adopt a resolution (Attachment A0, which would allow Northern Recycling to apply for funding to expand composting operations from a current capacity of 182,500 tons per year to a total of 260,000 per year. Such an authorizing resolution is required by CalRecycle.  The purpose of this grant is to obtain funding assistance to reduce the cost of the Compost Facility expansion, which is estimated to cost $25 million, all of which will be borne by Northern Recycling. 

Background 
California has a statewide goal to divert 75 percent of waste from the Yolo County Central Landfill (YCCL) by 2020. In February 2007, the California Department of Resources Recycling and Recovery (CalRecycle) adopted Strategic Directive (SD) 6.1, which calls for a 50 percent reduction in the amount of organics being disposed in the landfills by 2020. 

If CalRecycle were to award grant funding for the Yolo County compost facility, Northern Recycling would administer the grant, preparing reports, invoices and backup documentation for submittal to CalRecycle, while Yolo County would provide a license or lease to Northern to expand the facility. 

A similar staff report is also on the agenda at this meeting to approve an addendum to the Landfill's Permit Revisions EIR to allow for an increase in permitted green waste/compost tonnage.

County Counsel approved this Resolution as to form.
A Grant Summary Form was submitted to the Grant Oversight Committee as part of this process.