MARC JACOBS
Hutch Post
The Reno County Commission has unanimously approved a resolution declaring the advisability of issuing Industrial Revenue Bonds (IRBs) for the proposed Meadowlark renewable natural gas project, a move intended to help advance financing for the landfill gas-to-energy development.
Commissioners approved the resolution during Wednesday's meeting by a 5-0 vote. The action does not authorize the bonds themselves but begins the process needed for the project to qualify for certain financing benefits while additional details are finalized.
County Administrator Randy Partington told commissioners the resolution is primarily a "resolution of intent" and that several pieces of work between Meadowlark and the landfill still need to be completed before bonds can be issued. If ultimately approved, the IRBs would provide a sales tax exemption on eligible construction materials associated with transmission lines and construction of the project's facilities.
Bond counsel Kevin Cowan said the proposed bonds may also qualify for tax-exempt interest under federal tax law because the project involves solid waste disposal. He explained that approving the resolution now establishes a reimbursement period under federal regulations, allowing eligible project costs incurred after the resolution to potentially be reimbursed later with tax-exempt bond proceeds.
Cowan emphasized that commissioners were not approving the final bond issuance.
"There are a number of things that have to happen before you actually issue the bonds," Cowan said, noting that the resolution simply preserves the project's eligibility while additional analysis and conditions are completed.
The Meadowlark project plans to capture methane produced by the county landfill, clean the gas and convert it into renewable natural gas for injection into an existing pipeline rather than flaring the methane.
Casey Moye, from Meadowlark Renewables told commissioners the facility would create an additional revenue source for the landfill while reducing emissions.
"We will be taking the biogas from the landfill and cleaning it up and turning it into pure methane, which is renewable natural gas," Moye said. "It will be used as part of a revenue source for the landfill."
Commissioners also received an update on the project's progress. Moye said they have secured a construction contractor and are close to finalizing two easements needed to connect the facility to a nearby natural gas pipeline.
The company expects to return to the commission on July 22 with a more comprehensive presentation on the project's status and plans to request an extension of an Aug. 13 conditions-precedent deadline.
Several commissioners voiced support for the project, saying it provides environmental and financial benefits by capturing landfill methane that would otherwise be burned off.
Following discussion, commissioners voted unanimously to approve the resolution determining the advisability of issuing Industrial Revenue Bonds for financing the acquisition, construction, furnishing and equipping of the proposed renewable natural gas facility.