REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 17, 2026
FROM
NOEL CASTILLO, Director, Department of Public Works - Solid Waste Management
SUBJECT
Title
Amendment to Amended and Restated Landfill Gas Sale and Purchase Agreement
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Amended and Restated Landfill Gas Sale and Purchase Agreement No. 19-649 with, BioFuels San Bernardino Biogas, LLC, updating the schedule of activities and timeline for BioFuels San Bernardino Biogas, LLC to complete construction and other general contract terms for the sale of Mid-Valley Sanitary Landfill gas, with no change to the anticipated revenue of $3,026,002 or commercial operation term of 20 years upon construction completion.
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as the Department of Public Works - Solid Waste Management Division (SWMD) is financed by fee revenue. SWMD establishes fees that are charged to the public and other agencies for utilization of San Bernardino County’s (County) Waste Disposal System. The revenue to be received from the Amended and Restated Landfill Gas Sale and Purchase Agreement from BioFuels San Bernardino Biogas, LLC (BioFuels) is estimated to be $3,026,002 during the approximate 24-year period, in addition to lease payments that are subject to a separate lease agreement. Upon construction completion, a Commercial Operation Period will commence and generate revenue comprised of base payments plus royalty payments, reduced by the continued lease payment. The royalty payments are based upon a tiered system providing a percentage of gross revenue received by BioFuels and gross revenue received on a unit basis. Gross revenues will include the actual commodity price realized in the sale of processed landfill gas (LFG) and the sale of associated environmental credits for use of a renewable fuel source. Combined quarterly revenue from the lease and sale of LFG will be deposited in the SWMD budget (6700004250).
BACKGROUND INFORMATION
SWMD operates and manages the County's solid waste disposal system, which consists of five regional active sanitary landfills, nine transfer stations and numerous closed landfills and disposal sites. The five regional active landfills provide refuse disposal for the County's Valley, Mountain, High Desert and Low Desert Regions. As waste is emplaced in the landfills, it decomposes, producing LFG, which is comprised of methane, carbon dioxide and very minor amounts of gaseous organic compounds. Current Federal, State and local regulations require the extraction, collection and treatment of the LFG to protect the surrounding environment. While LFG can be considered a pollutant requiring mitigation, it is also a potential source of renewable energy. It can be used directly in combustion processes or processed and converted into a renewable fuel.
On September 24, 2019 (Item No. 31), the Board of Supervisors (Board) approved a Landfill Gas Purchase and Sale Agreement (BSA), Agreement No. 19-649, to sell LFG from the Mid-Valley Sanitary Landfill (MVSL) to BioFuels. By the same item, the Board also approved a Landfill Site Lease and Agreement, Agreement No. 19-651 (Lease) for Biofuels to occupy a portion of the MVSL and construct a LFG processing plant by February 2022.
On June 28, 2022 (Item No. 69), the Board approved the Amended and Restated Landfill Gas Sale and Purchase Agreement with Biofuels (Amended BSA) and an Amended and Restated Landfill Gas Site Lease. The Amended BSA extended the construction timeline due to COVID-19 pandemic to February 2023 and addressed various infrastructure changes for the LFG processing plant. The County identified the Amended BSA as a first amendment to the BSA and designated it as Agreement No. 19-649-A-1.
SWMD and BioFuels have determined that it is necessary to amend the Amended BSA to address construction delays in the LFG infrastructure resulting from delays in obtaining the required Air Quality Permit for the LFG processing plant, which are beyond the control of either party. Amendment No. 1 to the Amended BSA also clarifies deliverables, defines new terminology, and adds County federal contracting terms.
The construction completion date has been revised from a fixed timeframe following execution of the Agreement to 24 months following receipt of the required Air Quality Permit. Among other changes, this Amendment reduces the timeframe for BioFuels to complete specified activities following receipt of the required air permit from 48 months to 28 months. This reduction reflects the completion of several activities originally included in the 48-month timeframe, including the SoCal Gas Company intertie, utility infrastructure, and processing plant foundation. Accordingly, the revised timeframe reflects the remaining work necessary to complete the LFG processing plant infrastructure and commence operations.
The amendment also eliminates the requirement for BioFuels to submit quarterly status reports when there has been no change in project status, thereby reducing unnecessary administrative reporting. The County is also using this amendment to incorporate updated contractual requirements, including the Levin Act - Campaign Contribution Disclosure requirements. No changes to the lease are being proposed with this item.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Maria Insixiengmay, Deputy County Counsel, 387-5455) on August 24, 2026; Purchasing (Michael Reyna, Lead Buyer, 387-2233) on June 1, 2026; County Finance and Administration (Scott Bruckner, Administrative Analyst, 387-4222) on October 30, 2026.