Label
Renewable Natural Gas Project Agreement
DPS Solid Waste/DPU Water Recreation
Megan Robson (x2306)/Ryan Murphy (x2640)
Revised
Title
Repealing and replacing Ord. 340-25; authorizing the Mayor to enter into agreements with Toledo Renewable Energy, LLC for a Renewable Natural Gas project utilizing Hoffman Road Landfill Gas and Bay View Waste Water Treatment Plant digester gas; authorizing the acceptance and deposit of incentive payments and revenue from sale of landfill gas and digester gas; authorizing the appropriation and expenditure of Landfill funds; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
This Ordinance repeals and replaces Ordinance 340-25 passed by Toledo City Council on August 12, 2025. It amends the name of the contracting entity to Toledo Renewable Energy, LLC, which is a wholly owned subsidiary of NW Natural Renewables Holdings, LLC, and clarifies the temporary holding and use of certain revenues resulting from these agreements, and further defines the City property to be leased to Toledo Renewable Energy.
As in the original ordinance, this authorizes the City to enter into a 20-year biogas rights agreement, with an option to renew for an additional 5-years with NW Natural Renewables Holdings, LLC’s wholly owned subsidiary, Toledo Renewable Energy, LLC (“NWNR”) for a renewable natural gas (RNG) project utilizing Hoffman Road Landfill gas and Bayview WWTP digester gas. It also authorizes the City to enter into related lease and operation and maintenance agreements. The goal of this project is to make City operations more sustainable by decreasing greenhouse gas emissions, while also bringing in revenue.
The City posted a Request for Qualifications on Planet Bids on September 30, 2023. Ten responses were received on November 7, 2023 and evaluated in accordance with TMC 187.24 (Competitive Proposals). Five firms were selected to interview, which occurred in February and March 2024. The interview panel selected NWNR as the best firm to enter into an agreement to complete an RNG project at this time. Since then, negotiations and agreement development activities have been occurring.
The City is not expending any capital dollars for the development, implementation or operation of this project. NWNR will pay all up-front capital costs for development and implementation, and will own the gas rights and the gas treatment and processing equipment they install. NWNR will lease property and certain equipment at the Hoffman Road Landfill and Bayview WWTP and adjacent City owned property, consisting of a portion of property currently used as a golf course, for operation of RNG production related facilities. The parties will also enter into an operations and maintenance agreement for the landfill gas collection and control system.
Revenue to the City will be based on the metered quantity of conforming gas delivered to the project, independent of natural gas market values. Proposed economic project incentives include a $1M contract signing incentive, a $0.5M payment to the City upon commencement of operations, and an estimated 20-yr project revenue to the City of $13M to $25M based on projected gas delivered to the project after NWNR makes capital improvements to the landfill gas system. Furthermore, this project offsets approximately 16,500 metric tons of greenhouse gas emissions (CO2e) released annually into the atmosphere (equivalent to removing approximately 4,000 vehicles a year).
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That Ordinance 340-25, as attached and incorporated herein as Exhibit A, is repealed and replaced in its entirety by this Ordinance.
SECTION 2. That the Mayor is authorized to enter into a biogas rights agreement for a term of 20 year with an option to renew for an additional five years with Toledo Renewable Energy, LLC, a wholly owned subsidiary of NW Natural Renewables Holdings, LLC, for the development and implementation of an RNG project utilizing gas from the Hoffman Road Landfill (“Landfill”) and Bay View Waste Water Treatment Plant (“WWTP”) Digesters upon terms and conditions acceptable to the Director of Public Service, the Director Public Utilities and the Director of Law.
SECTION 3. That the Mayor is authorized to enter into a lease agreement with Toledo Renewable Energy, LLC for certain City owned real property and equipment at the Landfill, the WWTP and adjacent City owned property, as generally depicted on attached Exhibits B and C, for the purposes of constructing and operating the RNG facilities / Project, upon terms and conditions acceptable to the Director of Public Service, the Director Public Utilities and the Director of Law.
SECTION 4. That the Mayor is authorized to enter into a landfill gas collection and control systems operations agreement with Toledo Renewable Energy, LLC upon terms and conditions acceptable to the Director of Public Service, the Director Public Utilities and the Director of Law.
SECTION 5. That the Mayor is authorized to accept and deposit an unearned incentive payment of $1,000,000 into General Fund, to be held until such time as such funds are not subject to repayment pursuant to terms of the biogas rights agreement.
SECTION 6. That the Mayor is authorized to accept and deposit proceeds from 1) a payment upon commencement of commercial RNG operations and 2) any revenues resulting from a future payment related to investment tax credits into the General Fund and Sewer Fund.
SECTION 7. That revenues generated from the sale of landfill gas and digester gas into the General Fund and the Sewer Operating Fund, in accord with the terms of the agreements authorized in Section 2 to 4 above, with revenue allocation between the funds based upon the respective proportion of revenues from landfill gas and digester gas. Additionally, one-half of revenues generated from the sale of landfill gas are authorized for deposit into the Solid Waste Disposal Trust Fund Account Code 2090-24500-6T23201STDRNG.
SECTION 8. That the funds deposited to the Solid Waste Disposal Trust Fund Account Code 2090-24500-6T23201STDRNG pursuant to Section 6 are appropriated and authorized for expenditure from such account for the purpose of the City fulfilling its obligations related to the maintenance, repair or improvement of the Landfill in accord with the terms of the agreements authorized in Sections 2 to 4.
SECTION 9. That this Ordinance, being an emergency measure, shall take effect and be in force from and after its passage. The reason for the emergency lies in the fact that the Ordinance is necessary to take advantage of ITC tax credits and for the immediate preservation of the public peace, health, safety, and property.
Vote on emergency clause: yeas 11, nays 0.
Passed: November 5, 2025, as an emergency measure: yeas 11, nays 0.
Attest:
Julie A. Gibbons Vanice S. Williams
Clerk of Council President of Council
Approved: November 6, 2025
Wade Kapszukiewicz
Mayor