DATE: February 10, 2026
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Termination of Revenue Agreement with Toro Energy of California AA, LLC for the American Avenue Disposal Site Landfill Gas to Energy Project
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Notice of Termination for Revenue Agreement No. 22-166, between the County of Fresno and Toro Energy of California AA, LLC, pursuant to Section 3.1.3 of the Revenue Agreement for failure to timely satisfy conditions precedent to execute the Ground Lease.
REPORT
Approve termination of the Revenue Agreement (Agreement) with Toro Energy of California AA, LLC (Toro) for the American Avenue Disposal Site landfill gas to energy project (Project) due to Toro's failure to timely satisfy the conditions precedent to execute the Ground Lease, as required by the Agreement, and authorize the Chairman to execute the Notice of Termination. This item pertains to a location in District 1.
ALTERNATIVE ACTION(S):
Your Board could vote to not approve termination of the Agreement at this time and direct staff to continue discussions with Toro regarding a potential amendment to the Agreement and/or a limited extension of time for Toro to satisfy the conditions precedent to execute the Ground Lease.
FISCAL IMPACT:
There is no direct fiscal impact associated with termination of the Agreement itself. However, delays in development of the Project requires the County to pursue alternative compliance measures for the San Joaquin Valley Air Pollution Control District (SJVAPCD) Rule 4311 including procurement of an ultra-low NOx (ULN) flare, at an estimated cost exceeding $3 million.
DISCUSSION:
On April 19, 2022, the Board approved the Agreement with Toro for the development, construction, and operation of the Project at the American Avenue Disposal Site. The Agreement established the delivery of a fully functioning landfill gas ...
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