‘Time drawing short’ on garbage-to-ethanol plant

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Updated: February 12, 2012 8:04AM

The clock is ticking on whether the proposed garbage-to-ethanol plant will be able to secure its $300 million funding by late January.

Lake County Solid Waste Management District officials entered into a contract with Powers Energy of America to build the plant in 2008, but financing for the plant has never moved the project beyond the planning stages.

On Nov. 16, members of the Lake County Solid Waste Management District board talked via teleconference with Powers Energy of America CEO Earl Powers and hedge fund manager Hugo Cadena about a financing plan.

Cadena, who heads Las Vegas-based Visage 1 LLC, outlined his preparations for a bond sale that would help finance the plant, and he said officials would know whether the sale is successful about 90 days after the meeting.

Lake County Solid Waste Management District legal advisor Cliff Duggan said he and others planned to speak with Powers about the status of the deal on Tuesday. Duggan was not available for comment after the call.

The board’s next meeting is set for 7 p.m. Jan. 19, and board chairman and Lake County Commissioner Gerry Scheub said Powers and his investors have been invited.

Scheub said if the bond sale doesn’t work as planned, the board is prepared to head in another direction.

“I believe in this project tremendously, whether it’s with Mr. Powers or another company,” Scheub said.

“I will ask the board to take immediate action to look at other companies who have expressed interest. I’ve told Mr. Powers that time is drawing short; he’s got to make a decision, and we’ve got to make a decision.”

Scheub said his goal is to make garbage a commodity, rather than let it sit in landfills.

Former Lake County Sheriff Roy Dominguez has questions about Cadena’s background and the extent of the county’s involvement with him.

He filed a public records request on Monday to get copies of any contracts, emails, memorandums and documents demonstrating proof of financing with Cadena.

“The public has a right to know the progress on this project that has been in the making for nearly four years,” Dominguez said. “As a result, taxpayers will shoulder the costs of not having a comprehensive plan as far as waste management issues.”