Fiscal Note
The proposed resolution authorizes the City to accept a federal grant to conduct a feasibility study for constructing a Biodigester. The total grant award is $39,000; all of the grant funding will be used for a consultant study to carry out the project. The grant requires a $41,632 local match that will be funded by staff time dedicated to the project. These funds are already included within agency budgets.
Capital funding for construction of a city-owned Biodigester was included in the Capital Improvement Plan (CIP) from 2013 to 2015; the project was eliminated from the CIP in 2016. At that time, the estimated project cost was between $18.6 million and $20.6 million.
Title
Amending the 2019 Adopted Operating Budget to appropriate $39,000 of federal funding in the Streets Division and Approving the City’s acceptance of the US Environmental Protection Agency’s “Supporting Local Infrastructure for Anaerobic Digestion” grant to study feasibility of developing a regional anaerobic digester; authorizing the Mayor and City Clerk to execute any documents accepting the grant award. (16th AD)
Body
WHEREAS the City of Madison Streets Division submitted an application to the US Environmental Protection Agency (EPA) for grant funds to study the feasibility of developing a centralized municipal organic waste collection and digestion program for the City of Madison and other Dane County communities; and,
WHEREAS the EPA recently announced its intention to award $39,000 in grant funds to the City to support the study; and,
WHEREAS a Cooperative Agreement and Notice of Award from the EPA was received on August 9, 2019; and,
WHEREAS per the Cooperative Agreement the recipient's signature is not required on this agreement and that the recipient demonstrates its commitment to carry out this award by drawing down funds; and
WHEREAS the study would examine a facility designed to recover energy and compost from the anaerobic digestion of municipal source-separated organics from households, restaurants, and grocery stores. The project would be located near the Dane County Landfill and would take advantage of Dane County’s biogas processing facility, which converts biogas into renewable vehicle fuel. The biofuel could be used as compressed natural gas to power municipal vehicles or it could be injected into the interstate pipeline located near the Landfill, thereby benefiting from federal Renewable Identification Number (RIN) credits, as well as state programs such as California’s Low Carbon Fuel Standard Program (LCFS); and,
WHEREAS the City of Madison has a long history of recycling and today diverts 60% of household waste from the landfill. Since 2005, the City has actively researched anaerobic digestion to advance both its zero waste and renewable energy goals; and,
WHEREAS the adopted Madison Sustainability Plan recommends as an action to divert urban organic wastes into fuel sources for local bio-digester energy production; and,
WHEREAS the adopted Imagine Madison Comprehensive Plan recommends as an action to establish a citywide food scrap recycling program; and,
WHEREAS from 2011 to 2018, the City operated a household food waste diversion pilot to evaluate the logistical and communication challenges of implementing such a program. Source-separated food waste from 1,100 households and 40 restaurants and groceries were collected and either composted or digested in an agricultural digester; and,
WHEREAS the City of Madison’s Streets Division collects approximately 10,000 tons of food scraps annually, insufficient on its own to operate a financially-feasible anaerobic digester; and,
WHEREAS partners to the proposed study include the City of Madison, Dane County, the City of Fitchburg, and the City of Middleton, all of whom have adopted sustainability goals including recycling and food waste diversion; and,
WHEREAS the City and its partners have already answered many questions concerning anaerobic digestion, so that the proposed study can focus on a smaller set of problems to be solved; and,
WHEREAS with funding provided by the EPA grant, the City will hire a consultant to assist the partners in researching this smaller set of problems following applicable City and Federal procurement requirements; and
WHEREAS the grant application included a match of staff time from the City of Madison and Dane County; and,
NOW, THEREFORE, BE IT RESOLVED that the City is authorized to accept the “Supporting Local Infrastructure for Anaerobic Digestion” grant in the amount of $39,000; and,
BE IT FURTHER RESOLVED that the 2019 Adopted Operating Budget is amended to appropriate $39,000 from federal sources in the Streets Division (Service: Solid Waste Management) -- purchased services budget; and,
BE IT FINALLY RESOLVED that the Mayor and City Clerk are authorized to execute agreements with the EPA for receipt and use of these funds, if needed; and