Members of the Chautauqua County Audit and Control Committee discuss a proposal to have Chautauqua Green Energy LLC construct a renewable gas plant at the county landfill.

Chautauqua County is looking to sell natural gas generated at the county landfill to a third party instead of trying to convert it to electricity themselves.

According to a memorandum from Stephen M. Abdella, county attorney, to the legislature and county executive, “the county owns and operates a landfill gas-to-energy generating facility at the county landfill that has provided substantial net revenues to the county since 2010. However, the depressed market conditions for sale of electricity generated by landfill gas have caused a significant reduction in the revenues received by the county, and it is now more advantageous to directly sell the landfill gas to a third party who will convert it to renewable natural gas (RNG).”

The purpose of the renewable natural gas facility is to process and dispose of landfill gas created by the decomposition of solid waste in the county landfill. “The RNG facility will turn a waste gas that would otherwise be flared into a beneficial renewable source of fuel. The RNG will be transported through the existing natural gas pipeline system and used elsewhere, thereby reducing air emissions at the Chautauqua County Landfill,” the memo states.

Abdella notes the selected developer, Chautauqua Green Energy LLC (CGE) shall construct at its own expense a renewable gas plant and infrastructure on an approximately two acre site at the county landfill. CGE will also be responsible at its own expense for operating and/or mothballing the county’s existing gas-to-energy plant, and maintaining it in good working order.

According to the Abdella, for the first 10 years of the proposed agreements, CGE shall pay Chautauqua County a base payment of $1 million per year, and a royalty payment of $0.05/MMBTU (a measurement of energy) for all landfill gas conveyed by the county to CGE. The initial 10-year period will fund the pay-off of the county’s electric generation plant. For years 11 through 22 of the agreement, CGE shall pay the county a base payment of $1,000 per year, and a royalty payment of $1.00/MMBTU for all landfill gas.

In order to assure CGE that the landfill will produce sufficient landfill gas to make its investment economically viable, a condition of the agreement is that the county shall adopt a solid waste “flow control” local law. “The flow control local law will require that all solid waste generated within the county that is of the type currently received at county solid waste facilities, including municipal solid waste collected from residences and businesses, and construction and demolition debris, must be disposed of at the County Landfill or transfer stations. The local law’s requirements would take effect January 1, 2021.”

Currently 11 other counties in New York state have this requirement.

Even with this requirement, Abdella said the amount of waste is not expected to increase at the county landfill. “Technically speaking, this law says to every resident and business in the county that your waste is to be processed at the county’s landfill and transfer stations, unless it falls under one of the exceptions. From a practical standpoint, almost all of the waste generated by our residents ends up with either a private collection system or a municipal collection system,” he said during the Audit and Control meeting.

County Legislator Mark Odell noted this legislation will negate any competition of private landfills within the county, which Abdella said was correct. “All of the waste would have to come to our facilities so it wouldn’t be able to go to any other facility for final disposal,” he said.

County Legislator Terry Niebel questioned about the flat rate payments for the county dropping from $1million per year to $1,000 a year after a 10-year period.

Abdella said that was part of the negotiations, with the front end of the contract being higher to ensure the county’s debt is paid off for its existing generating plant.

Finance director Kitty Crow added that after a 10-year period, the royalties will jump from around $28,000 a year, to possibly $500,000 or more, which will be profit, since the county’s debt for its existing plant will be paid off.

The necessary resolutions were backed by both the county’s Public Facilities and Audit and Control committees. The resolutions will now be forwarded to the full county legislature, which is scheduled to meet Wednesday.