File #: 2025-0176    Version: 1
Type: Ordinance Status: To Be Introduced
File created: 7/1/2025 In control: Transportation, Economy, and Environment Committee
On agenda: Final action:
Enactment date: Enactment #:
Title: AN ORDINANCE authorizing the King County executive to enter into an agreement with respect to the purchase of the landfill gas processing plant located at the Cedar Hills regional landfill.
Sponsors: De'Sean Quinn
Indexes: Agreement, Cedar Hills, Landfills
Attachments: 1. A. Asset Purchase Agreement by and between King County as Purchaser and Bio-Energy (Washington), LLC as Seller, 2025, 2. 2025-0176 Transmittal Letter, 3. 2025-0176 BEW - King County - Asset Purchase and Sale Agreement(509093820.21), 4. 2025-0176 King County - BEW - Assignment and Assumption Agreement(509386075.1), 5. 2025-0176 King County - BEW - Bill of Sale(509386076.1), 6. 2025-0176 License Agreement between Ingenco and King County(509271417.10), 7. 2025-0176 Transition Services Agreement(509387951.14), 8. 2025-0176 Fiscal Note, 9. 2025-0176 Legislative Review Form
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Drafter

Clerk 06/13/2025

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AN ORDINANCE authorizing the King County executive to enter into an agreement with respect to the purchase of the landfill gas processing plant located at the Cedar Hills regional landfill.

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STATEMENT OF FACTS:

1.  The Cedar Hills regional landfill ("the landfill") produces landfill gas, a valuable green energy resource created by the anaerobic decomposition of organic wastes, containing methane, carbon dioxide, and trace concentrations of other compounds that may be utilized as a marketable energy product.

2.  In 2003, Ordinance 14723 authorized the King County executive to enter into agreements with Bio Energy (Washington), LLC ("Bio Energy"), for the sale and conversion into energy of landfill gas generated by the landfill ("the original project agreements").  In accordance with the original project agreements, Bio Energy developed, built, and owns a landfill gas processing plant located on property at the landfill leased to Bio Energy by the county ("the plant").

3.  In 2007, Ordinance 15872 authorized the King County executive to execute an Amended and Restated Project Development and Gas Sales Agreement and an Amended and Restated Plant Site Lease with Bio Energy.

4.  Bio Energy maintained and operated the plant from October 2010 until August 2023, when Bio Energy shut down its operation of the plant.

5.  In April 2023, Bio Energy filed a lawsuit against King County, in United States District Court for the Western District of Washington, Case No. 2:23-cv-00542-LK ("the litigation"), alleging breach of contract and other causes of action. King County disputes Bio Energy's claims and filed multiple counterclaims against Bio Energy in the litigation.

6.  In March 2025, King County and Bio Energy participated in a mediation with United States Magistrate Judge S. Kate Vaughn and reached a tentative settlement agreement to fully resolve the litigation.

7.  The terms of the settlement agreement required the county to negotiate a proposed Asset Purchase Agreement for the county's purchase of the plant and Purchased Assets, as defined in the Asset Purchase Agreement, and to present to the council this ordinance for authorization to sign the Asset Purchase Agreement.  The execution of the Asset Purchase Agreement will result in the county's acquisition of the plant, the termination of the plant site lease, and the resolution of the litigation.  It will also provide for significant environmental and financial benefit to the county.

                     BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:

                     SECTION 1.  Findings:  The King County council hereby finds that the purchase of the landfill gas processing plant and all associated assets necessary for its operation is in the best interest of the public.

                     SECTION 2.  The King County executive or the executive's designee is hereby

authorized to execute the Asset Purchase Agreement substantially in the form of Attachment A to this ordinance.