IBank Board Approves $35 Million Loan to Help Sacramento County Reduce Greenhouse Gases with New Organic Waste Facility

The NARS Commercial Waste Transfer Building project will make it easier to manage solid and organic waste and meet the needs of the growing Sacramento region

SACRAMENTO October 24, 2022 — The California Infrastructure and Economic Development Bank (IBank) board of directors approved $35 million in loan financing to the County of Sacramento for a waste facility project that will significantly increase safety and capacity and allow the county to fully and efficiently comply with state requirements to divert organic material from landfills.

The board approved the $35 million Infrastructure State Revolving Fund loan for the North Area Recovery Station Commercial Waste Transfer Building project in North Highlands. The project will include the construction of a new 62,000 square foot commercial waste transfer building, a loading area, mechanical and electrical systems, an observation area, and paved access for operation purposes. The new building will improve the county’s ability to manage solid waste and meet the needs of a growing Sacramento region.

The new structure will be an enclosed transfer building for organic waste and municipal solid waste. The facility will receive both residential source-separated organic waste (green waste, food waste, and food-soiled paper) and commercially collected municipal solid waste. Senate Bill 1383 (2016) mandates that organic waste be collected and diverted from landfills to mitigate pollution and reduce greenhouse gases. The county’s indoor facility will provide better odor and pest control.

The project will also improve operational efficiency and safety by separating commercial hauler traffic from self-haul private traffic. This will create improved service times, reduce truck idle times, and improve operational safety overall.

“We embed climate and environmental protection as a prerogative in all IBank financing programs,” said IBank Executive Director Scott Wu. “Helping local governments like Sacramento County comply with laws that reduce greenhouse gases is just one of the ways IBank facilitates a cleaner environment for all Californians.”

“The much-needed North Area Recovery Station project will improve customer service and the site’s operational safety overall. Additionally, this funding mechanism will support compliance with state mandates and our commitment to providing safe, reliable, and high-quality collection services at the lowest possible rates,” said Sacramento County Waste Management and Recycling Interim Director Keith Goodrich.

“California’s critical investments in local organics recycling infrastructure help communities fight the climate crisis that’s caused more frequent wildfires and drought in seven of the last ten years.” CalRecycle Director Rachel Machi Wagoner said. “Collaboration with IBank and other state and private sector partners is essential to meeting California’s climate goals and creating a renewable, circular economy with less pollution and more green jobs.”

The North Area Recovery Station Commercial Waste Transfer Building project is expected to begin construction in February 2023 and is expected to be completed by September 2024.

IBank issues tax-exempt and taxable revenue bonds, provides financing to public agencies, provides credit enhancements, acquires and leases facilities, leverages state and federal funds, and provides loan guarantees and other credit enhancements for small businesses. Visit us at ibank.ca.gov.

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