IBank Board Approves $40 Million Loan to Help City of San Diego Reduce Greenhouse Gases with New Organic Waste Facility, Create More than 200 Jobs
Project marks the largest loan issued from the state’s Infrastructure State Revolving Fund program
SACRAMENTO (August 29, 2023) — The California Infrastructure and Economic Development Bank (IBank) board of directors approved $40 million in loan financing to the city of San Diego for an organic waste processing facility that will assist the city in complying with state requirements to divert organic material from landfills.
Financed through IBank’s Infrastructure State Revolving Fund loan program, the Miramar Greenery organic waste processing facility will include the construction of a new 25,000 square foot intake facility with a reinforced concrete floor, roof, and walls with hangar-style doors. The project also includes processing equipment, a conveyor system, and stormwater and wastewater controls.
The new organic waste processing facility will assist the city of San Diego in complying with Senate Bill 1383 (2016), which mandates that organic waste be collected and diverted from landfills to mitigate pollution and reduce greenhouse gases. The new facility will increase the city’s capacity to process organic waste from approximately 40,000 tons per year to more than 251,000 tons per year.
The project will also help the city of San Diego move one step closer to its Zero Waste Plan – which lays out strategies to divert 90 percent of all trash from landfills by 2035 with a goal of zero waste by 2040.
“We are excited to offer affordable financing that helps cities and counties expand organic waste recycling and divert organic waste from California landfills,” said IBank Executive Director Scott Wu. “From Sacramento to the Central Coast and now in San Diego, we are contributing to a cleaner environment and look forward to helping municipalities throughout the state finance similar projects.”
“Organic waste recycling is the single fastest and easiest thing a person can do to fight climate change,” said city of San Diego Environmental Services Director Renee Robertson. “The new organic waste processing facility will enable us to divert a higher volume of material from the landfill and convert it into compost, and to do so more efficiently and more cost-effectively. We are excited to use external funding for a project that supports the city’s Zero Waste Plan goals, and we look forward to bringing this innovative and sustainable facility to fruition.”
The Miramar Landfill organic processing facility project is expected to cost $77.2 million in total, with IBank financing $40 million. The $40 million Infrastructure State Revolving Fund loan is the program’s largest loan for a single project to date. The ISRF Program is authorized to directly provide low-cost public financing to state and local government entities, and finances a variety of projects including organic waste facilities, water and wastewater treatment plant upgrades and construction, airport construction, and street repair and upgrades.
The project is expected to create 156 construction jobs and 45 new permanent jobs.
About the California Infrastructure and Economic Development Bank: IBank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy and improve the quality of life in California communities. IBank is located within the Governor’s Office of Business and Economic Development and is governed by a five-member Board of Directors. IBank has broad authority to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, leverage State and Federal funds and provide loan guarantees and other credit enhancements to small businesses.
About the California Infrastructure and Economic Development Bank: IBank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy, and improve the quality of life for Californians and communities throughout the state. IBank is located within the Governor’s Office of Business and Economic Development and is governed by a five-member board of directors.
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.
Karen C. Naungayan
Deputy Director of External Affairs
Email Karen, HERE