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Professional Services Agreement With Integrated Environmental Technology, LLC, for Landfill Gas Credit Management and Brokerage Services for Landfill Department (Contract No. 25-PS01159/AP; Amount: $135,000.00)
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BRIEF OVERVIEW
On September 9, 2025, the Board approved the Termination of Landfill Gas Purchase Agreement and Nullification of Wellfield Maintenance Agreement (“Agreement”) with Timberline Energy, LLC (“Developer”), pertaining to Northwest Solid Waste Landfill.
Under the now terminated Landfill Gas Purchase Agreement, the County had granted the Developer the exclusive right to claim and utilize any emission allowances and reduction credits associated with Carbon Reduction Tonnes (CRT) generated by the landfill. As a result of the termination, the County is now the party with the right to claim and utilize any emission allowances and reduction credits that may be associated with landfill gas, including, without limitation, any CRTs which may be generated by the Project.
Upon request from the Solid Waste Division, Procurement prepared a professional services agreement for Carbon Credit Management and Brokerage Services to Integrated Environmental Technology, LLC.
Integrated Environmental Technology, LLC will serve as the County's exclusive broker and technical advisor in the verification, issuance, marketing, and sale of these credits, using the Climate Action Reserve (CAR) platform to achieve the greatest possible value while working within CAR's operational and protocol constraints. Among other services, Integrated Environmental Technology, LLC will prioritize carbon credit buyers based on volume capacity, pricing competitiveness, reliability and will negotiate favorable terms, execute transactions, and manage settlement payments through the CAR platform.
Based on the Landfill's consistent historical performance relating to carbon credit production, a long-term normalized average of roughly 50,000 CRTs per year would be considered a reasonable expectation. Utilizing a conservative mid-range estimate between $5 and $8 per tonne, below shows the potential value of one year's worth of credits:
If 50,000 CRTs are sold at $6.00 per CRT:
Gross Revenue = $300,000
IET Brokerage Fee (15%) = $45,000
Verification and CAR fees (approx.) = $12,000
Annual Net to County = $243,000
Integrated Environmental Technology is compensated only upon successful sale and settlement of credits. If no sale occurs, no brokerage fee is earned.
Financial Services are exempt from the competitive solicitation requirements and the Chief Procurement Officer has reviewed this requirement for conformance to Procurement Ordinance and Purchasing Policies and Procedures.
Hernando County Solid Waste reviewed the proposal for price, ability to perform the contract in accordance with the terms, conditions and specifications required and is recommending award of the agreement to Integrated Environmental Technology, LLC.
FINANCIAL IMPACT
Compensation under this agreement is a brokerage fee. CAR issuance fees paid upfront by Integrated Environmental Technology will be deducted from the gross sale proceeds prior to calculating the Brokerage Fee and the County's net revenue.
Revenue:
Fund: 4411- Solid Waste and Recycling, Department: 07602- Class I Operations, Account: 369900 - Miscellaneous Revenue
LEGAL NOTE
In accordance with Part II, Chapter 2, Article V of the Hernando County Code of Ordinances.
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RECOMMENDATION
It is recommended the Board approve and authorize the Chairman's signature on the attached professional services agreement with Integrated Environmental Technology, LLC for the Carbon Credit Management and Brokerage Services with an estimated contract value of $135,000.00.
It is further recommended the Board authorize the Chief Procurement Officer to approve change orders as necessary and required up to budgeted amounts.