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MSW

CONVERSION PROJECT PROPOSAL TO LADPW

American Waste to Energy, 5005 Riverway, Suite 220, Houston, TX

LADPW RFEI 3.3.1 Letter of Transmittal A brief letter of transmittal should be included in the response identifying the company, describing the key features of the conversion technology, identifying the waste type(s) and size ranges for which the technology is suitable, identifying the self-defined optimum project(s) for commercial application of the technology within Los Angeles County, and providing contact information for the company. AWE, LLC 5005 RIVERWAY SUITE 220 HOUSTON, TX. 77056 Re: AWE Response to LADPW Request for Expression of Interest AWE is pleased to provide this Response to the LADPW RFEI. AWE was formed to specifically take on the challenges facing the conversion of MSW into an important source of renewable energy. AWE brings substantial project development experience across renewable technologies. AWE believes the critical challenge facing MSW Conversion centers on overcoming the unique hurdles facing first off commercial projects. AWE technologies produce RDF from MSW and then thermo-chemically converts the RDF to a syngas which is cleaned and used to power a combined cycle generator. Using that set of technologies, for the past two years AWE developed LasVegas1 and achieved several milestones necessary to develop that project. LasVegas1 is a Greenfield Project designed to divert 1500 2000 tons per day of MSW to produce 900 tons per day of RDF to produce 60 MW combined cycle, baseload, dispatchable power. In this Response to LADPW, AWE provides a portfolio of three Optimal Projects. A Greenfield Conversion Project designed to process 1500 to 2000 tons of MSW to produce 900 tons of RDF per day to power 60 MW of electrical generation. An Initial Conversion Project designed to process 300 tons per day of RDF to power 20 MW of electrical power. Finally, AWE offers a Small Conversion Project to process 100 tons per day of RDF to power 7 MW of electrical power. AWE believes this portfolio solves two important challenges inhibiting MSW conversion. First, it lowers the burden of reaching financial closing on a first project. Second, it maximizes the future options to capture large and small hauling and landfill operations. We believe with LADPW support, an MSW Conversion Project can be successfully developed in Southern California. Sincerely, George Sterzinger Chief Executive Officer AWE, LLC.

AWE Response to LADPW

AWE Response to LADPW

3.3.2 Demonstration of RFEI Minimum Criteria The response to the RFEI must include identification of at least one optimum project for commercial application within Los Angeles County. Such optimum project must be based on processing MSW as described in Attachment 1 and/or source separated food waste or green waste as a primary feedstock. The capacity of the optimum project should be determined by the Respondent in consideration of both technical and economic factors (self-defined and technology specific, as applicable). More than one optimum project can be described. AWE CORPORATE MISSION: American Waste to Energy (AWE) integrates a set of technologies that allow Municipal Solid Waste (MSW) to be processed to Refuse Derived Fuel (RDF), which is then thermochemically converted to a synthetic gas, which is then cleaned and used to produce renewable electricity. AWE projects will meet the most stringent California Energy Commission environmental requirements. AWE offers three Optimum Projects a Greenfield Conversion Project of 60 MW, an Initial Conversion Project of 20 MW, and a Small Conversion Project of under 10 MW. The Greenfield Project is based on the development work already completed by AWE on the LasVegas1 project, a 60 MW combined cycle using 1500 2000 tons of MSW per day at a Greenfield site. The AWE portfolio of Optimal Projects is designed to overcome financing challenges specific to renewable energy project financing and to maximize future project development opportunities. It is AWEs strong belief that, given the challenges facing renewable energy project financing, innovation and development, the Greenfield Conversion Project has virtually no chance of reaching financial closure unless the Initial Conversion or Small Conversion Project is completed first. Specifically, the Initial and Small Conversion Projects have unique Tipping Fees, relationship with an existing Transfer Station/Recycling, capital costs and other factors that will not be required for future, follow-on projects. The primary benefit of completing the first Project will be to reduce technology risk and allow for financing without the need for a Process Guarantee. The Small Conversion Project is also designed to open opportunities in two other areas. The Small Project will qualify to bid into the California Renewable Auction Mechanism, which offers a streamlined path to obtaining a Power Purchase Agreement. The Small Project also opens sites at Transfer/Recycling Stations that handle less than 200 tons per day of MSW. The small size also brings diseconomies of scale. The Project Summary below shows the higher PPA and Tipping Fees required to make the project financially viable. A summary of the Greenfield Conversion Project is provided first. AWEs overview of the Greenfield Conversion Project uses the details of AWEs development work for its LasVegas1 project. Site specific details for a Southern California project would obviously be different but the development process, technology package, and project finances would be essentially the same. AWE provides the details of the LasVegs1 development to outline our development experience with MSW Conversion technologies and project development benchmarks. AWE expects the Greenfield Conversion Project to be the standard for most future projects. (Note some information covered by Confidentiality Agreements has been blanked out or replaced a name covered by confidentiality with XXXXXXX.) 3.3.2.i OPTIMUM PROJECT GREENFIELD CONVERSION PROJECT GREENFIELD PROJECT OVERVIEW:

AWE Response to LADPW

The AWE Greenfield Project will employ a Material Recovery Facility to process between 1500 and 2000 tons per day of MSW. The Material Recovery Facility will produce 900 tons per day of RDF. The MRF will also produce commercially valuable recyclable materials. The RDF will meet specific requirements in order to be used in an Indirect Gasifier to produce a medium BTU syngas. The syngas will be cleaned of heavy metals and tars and used to power a 60 MW combined cycle generator. AWE as described below has already completed the initial development work associated with this Project for a specific location in Clark County, Nevada. Our work demonstrates this Project is financially sound, technically feasible and ready for commercial development. American Waste to Energy LLC (AWE) currently owns 100% of LasVegas1 a qualified renewable, base load generation project in early development. The project is located in Apex, Clark County Nevada. The project will be sited at the Apex Landfill owned and operated by XXXXXXX. The project has negotiated a draft LOI from XXXXXXX whereby the project will receive 1500-2000 tons per day (tpd) of municipal solid waste (MSW) that will be processed using a material recovery system to remove recyclable and other materials that cannot be gasified. The net organic material after processing will be turned into Refuse Derived Fuel (RDF) that will be introduced into a n Indirect Gasifier to produce a synthetic gas stream (syngas). The syngas from the gasifier will be cleaned either with a proprietary catalyst or in a clean up facility that will remove contaminants from the syngas stream prior to introducing the fuel into a GE combined cycle electric generator producing a net 57 MW of power. The power produced is under a Letter of Intent (LOI) to be sold to the Southern California and the Southern Nevada entities. The financial pro formas using the revenues from these power sales are presented in the Basic Case economic model. A financial pro forma is also presented for an Upside Case where a tipping fee and revenues from recycling are included. Recycling materials are calculated as a percent of MSW provided by XXXXXXX. However, the actual tonnage of materials will vary depending upon the upstream single source recycling done. This recycling is subject to change over time as XXXXXXX increases its programs. For this reason the tonnage calculated is reduced by 50% in order to provide a conservative estimate of the Upside Revenues. Tipping fees are offered subject to negotiation with XXXXXXX. For the Upside Case we have used a $10 per ton Electric Power Contract Quantity: Nameplate Net Capacity: 57 MW. Capacity Factor: 85% Annual MWH: 328,704MWH REVENUES Basic Plant: Power Purchase Agreement: LasVegas1 has a Letter of Intent to enter a Power Purchase Agreements at $85/MWH escalated at 1.5% per year. The LOIs establish important project benchmarks. Both PPAs consider the project will be qualified as renewable generation, that the transmission interconnection will allow delivery into their systems, and that the price negotiated is agreeable to them. All environmental attributes, energy and capacity are dedicated to offtake customers under the terms of the contracts. For the financial analysis of the Basic Plant, we only consider the revenues from this PPA. Upside Case: Recycled Materials and Tipping Fees

AWE Response to LADPW

Recycled Materials LasVegas1 will recover all high quality paper, plastics (HDPE, PET and PVC), ferrous and non- ferrous metals from the project input waste stream. LasVegas1 will process 2000 tons per day of MSW and will produce a net 223 tons per day of recyclable material. Estimated revenues from the recycling operation based on prices estimated from the XXXXXXX recycling operations in Las Vegas are shown in the table below:
RecyclingRevenues TotalTonsDisposedinRSLandfill AWETonnage AWEPercentage Potential %Tons Recycled 24.6% 8.5% 2.5% 3.2% Total Tons Recycled 628,299 218,019 65,107 80,974 992,400 AWE Tons Recycled 134,580 46,699 13,946 17,344 212,569 2,556,053 547,500 21.4% MRF Recovery Factor 10.0% 95.0% 50.0% 95.0% MRF Tons Recycled 13,458 44,364 6,973 16,477 81,272 Price $/Ton Revenue Recycled @50% $84 $ 565 $282 $ 6,255 $0 $ $234 $ 1,928 $ 8,748

Paper Plastic Glass Metals Totals

The recycling prices and revenues are based on the following multi-year analysis:

Tipping Fee The draft Letter of Intent with XXXXXXX calls for a negotiated Tipping Fee for the MSW the project receives. As a conservative case, we have assumed that the Tipping Fee for the first plant

AWE Response to LADPW

is $10 per ton. We are confident that follow-on plants will have Tipping Fees in excess of that estimate. US MSW MARKET AWE projections indicate that net MSW available for power generation in the US will increase from 170mm tons in 2010 to an estimated 204mm tons by 2030 then an estimated 250 mm tons by 2050. Using AWE technology each 1000 tons of waste that would otherwise go into a landfill could generate 30MW of electrical power The net MSW available in 2030 could potentially fuel 16.4 gigawatts of incremental electrical capacity --- this could meet 21.4% of all incremental electrical capacity requirements projected by DOE to be required between 2010 and 2030.

USMunicipalSolidWaste(1000ST)
450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000

Recycled/Compost NetMSWAvailable

Source: US EPA ENVIRONMENTAL BENEFITS Municipal Solid Waste is a readily available organic feedstock that is largely wasted, i.e. landfilled. AWE and LasVegas1 have designed the technology package specifically to overcome the regulatory challenges currently blocking the use of MSW and to convert this resource into a major source of renewable energy. In the past, the incineration of MSW led to well documented environmental and health hazards. California has specifically addressed these concerns. Incineration of any kind is prohibited. In order to qualify as a renewable resource a project using MSW as a feedstock must use a conversion technology that is indirect. By indirect, the commission specifically requires that the RDF or organic material must be converted to gas using a process that applies heat in the absence of oxygen or air. Indirect processes are thermo- chemical in nature. AWE conversion technology meets the conditions California places on the use of MSW.

AWE Response to LADPW

The AWE Nevada MSW facility will effectively replace a 1500 - 2000 TPD landfill requirement. The primary CO2 emissions from a landfill include methane from decomposing waste (21 times the radiative forcing of CO2) and CO2 generated by the fermentation of decomposing waste. The EPA has developed a model --- Land Gen---- to estimate the effective CO2 equivalent (CO2E) emissions of such landfills use standard landfill parameters. The EPA has also estimated the pounds of CO2 emitted by the combustion of landfill waste to produce power at 1.378 lbs of CO2 per kWh. AWE has run the Land Gen model and estimated the resulting CO2 differential for the Nevada project. The California Air Resources Board has found that converting MSW to renewable energy will lead to overall negative CO2 emissions. At this time it is uncertain how these estimates will be incorporated into the states CO2 cap and trade program. TECHNOLOGY This Project integrates four major technologies:

Material Recovery Facility (MRF) The MRF processes the MSW. The Project is committed to using as fully automated MRF technology as possible. The Project will handle 1500 - 2000 tons of MSW per day. The MRF will mechanically separate the MSW into three major groups. Inert materials that will be redirected back to the landfill. Valuable recyclables such as aluminum, ferrous metals, and HDPE plastics will be removed from the MSW stream and resold. The remainder of the MSW consists of organic materials which will be processed as a Refuse Derived Fuel (RDF). We estimate that the MSW will produce approximately 900 tons per day of RDF. Gasifier and Gas Clean Up.

AWE Response to LADPW

Rentech/SilvaGas Gasifier The Rentech/SilvaGas Gasifier is used to produce a medium BTU syngas from the RDF. The technology uses a double vessel configuration consisting of separate gasification and char combustion. This design allows the gasification to occur without emissions concerns. The medium BTU syngas can be substituted for natural gas in many applications. For the production of electricity, it allows the syngas to be used in standard turbine and combined cycle generators. In the gasifier, product gas is formed from the introduction of biomass RDF fuel, which is rapidly pyrolyzed in an oxygen-free environment by hot olivine. Steam is used in the gasifier to provide initial fluidization to begin olivine circulation through the system. Olivine recirculation starts when the vessel temperature has reached approximately 800 F. The recirculating olivine provides the majority of thermal energy to heat up the gasifier. The gasifier must be heated to at least 1,300 F prior to the introduction of RDF so that the pyrolysis reactions can take place without producing excessive amounts of tar. Once these reactions begin, the resulting product gas provides the primary motive force for the conveying of the olivine and char through the gasifier vessel. Air is gradually reduced once RDF feed has started, and is completely turned off once 1,300 F is reached. During this process, the olivine temperature diminishes, while the breakdown of the fuel results in the production of char particles (carbon), product gas and a small amount of condensable organic compounds (tars). The resultant char and olivine are separated from the gas stream exiting the gasifier in the dual two-stage gasifier cyclones. Product gas from the gasifier is directed to the gas clean-up system for removal of impurities prior to utilization in the three Solar Model T-130 CTs. The product gas contains hydrogen sulfide, which is scrubbed out downstream in the gas clean-up system, using an aqueous scrubber. The formation of hydrogen sulfide in the gasifier, in effect, minimizes the amount of fuel sulfur that subsequently enters the combustor. Combustor At the gasifier exit, the product gas is separated from the olivine and unpyrolyzed char. The char, which is separated out with the olivine in the cyclone, is carried into the combustor. The char contains pyrophoric carbon at 55 percent by weight, 5 percent hydrogen, and 40 percent ash. Air is introduced into the combustor to support the combustion of the char particles with the resultant release of thermal energy, providing additional heat to the recirculating olivine. The reheated olivine is then transported back to the gasifier to supply the energy necessary for the gasification of the incoming wood feedstock. The combustor cyclone separates the olivine from the flue gas and ash before sending the olivine back to the gasifier. The efficiency of the combustor cyclone is greater than 99 percent removal, so that the loss of olivine from the entire system is minimized. The flue gas, smaller ash and traces of fine olivine particles remain entrained in the gas and proceed to the ash cyclone. Due to the very high efficiency of the combustor cyclone, the targeted ash removal efficiency of the ash cyclone is ~85 percent. The ash cyclone is followed by a baghouse, which removes >99 percent of the remaining particulate before exhausting to the atmosphere. It is important to note that the flue gas from the combustor contains very little sulfur, as the organic sulfur remains in the product gas as hydrogen sulfide. This is because the pyrolysis process in the product gas gasifier operates in a reducing environment in the absence of oxygen. As a consequence, organic sulfur compounds in the RDF decompose into hydrogen sulfide. This component of the gas stream is ultimately reduced in the product gas clean-up system to produce a product gas hydrogen sulfide (H2S) concentration of less than 5 parts per million. GE Turbine Combined Cycle 60 MW Generator

AWE Response to LADPW

GE Frame 6 turbines and combined cycle packages are specifically designed to be available for Integrated Gasification Combined Cycle projects using syngas derived from a number of feedstocks including RDF. The 6B package provides a Net Nameplate Capacity of 57 MW based on an Evaporative Cooler, Steam Injection for NOx control with no incremental heating. In a Combined Cycle configuration, Project 1 will achieve a heat rate of 8010 BTU per kWh produced. The LasVegas1 project offers renewable electricity from a 57 MW (net capacity) combined cycle generator fueled with syngas derived from Refuse Derived Fuel. LasVegas1 will be interconnected to the NV Energy 230 KV transmission system. AWE will transmit the power through the NV Energy to Marketplace Substation and into the Southern California delivery area. The Southern Nevada entity will be able to provide power to all of their load centers from this interconnection as well. AWE is prepared to alter a part or the entire package of technologies in the project if AWE determines there is a superior technology package. AWE makes this offer conditioned upon receiving Pre-Certification from the California Energy Commission. AWE also conditions this offer upon successfully obtaining financing acceptable to AWE including but not limited to a loan guarantee from the Department of Energy under the Section 1705 program. TRANSMISSION INTERCONNECTION Point of Delivery (POD): LasVegas1 is located in the northeast quadrant of the Uncongested Grid of NV Energy. LasVegas1 will interconnect with the NV Energy 230 KV system at Apex. LasVegas1 will move the project output to the Marketplace Substation. SCPPA will take delivery at Marketplace and deliver output to its members. Regional Transmission System Overview: The Regional Transmission System can basically be described in three parts. The first part is the Uncongested Grid where the vast majority of Nevada Power Companys (Nevada Power) customers reside. Geographically, this area is located within the Las Vegas Valley. The second and third parts of the Transmission System deal with congested portions of the transmission grid. The second part is the Southern cutplane which allows Nevada Power as the Native Load provider to bring in power from market hubs located south of Las Vegas in the Eldorado Valley. The Southern cutplane consists of 10 bulk transmission lines and 4 sub-transmission lines that are electrically in parallel with each other. They connect to several trading hubs south of the Transmission System, but they proportionally bring in any import (or take out any export) that is scheduled across that path. The third part is the South of Harry Allen cutplane which allows Nevada Power to bring in generation resources and purchased power from Reid Gardner, Crystal interface, and the Nevada-Utah border. The South of Harry Allen cutplane consists of four 230 kV lines which enter the northeast portion of the Las Vegas Valley from the Harry Allen 230 kV substation. Feeding into this resource hub is the Reid Gardner generation (605 MW), Harry Allen Unit #3 (72 MW), the Red Butte-Harry Allen

AWE Response to LADPW

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345 kV tie line( 300 MW) and the Crystal-Harry Allen 230 kV #2 and #3 tie lines (950 MW). In 2003, up to 1783 MW can be delivered from this cutplane into the Las Vegas Valley. Possible points of delivery are: Mead 230, Mead 500, Marketplace, McCullogh and El Dorado PERMITTNG AND CONSTRUCTION MILESTONES Air Permitting for LasVegas1 Project LasVegas1 will seek a separate Air Permit. The site will be selected from one of three primary locations by AWE. The final selection will be made after a review of permitting and cost factors are assessed. All of the sites are in a Prevention of Significant Deterioration (PSD) zone and ozone non-attainment area. The emissions of the project are estimated based on EPC detailed engineering plans. The PSD designation requires that the project use Best Available Control Technology (BACT) technology to limit estimated emissions. BACT standards will require: SCR on the HRSG emissions, CO Catalyst on the HRSG emissions, SCR and High Heat Bag House for the gasifier/combustor stack and a bag house for the MRF facility. The Project will have to obtain offsets for any emissions of criteria pollutants above the 100 TPY limits. At this time it appears the project will exceed the limit for NOx and possibly CO. Our assumption at this time is that offsets can be used 1:1 to offset emissions above the 100 TPY limit. The Timeline for permitting is: Application September 1, 2011 Authority to Construct (ATC) Permit - March 1, 2012 Title V Permit June 1, 2012 Project Construction Schedule LasVegas1 will undertake obtaining construction and operational permits and licenses, and construction financing. Proposed construction schedule: The schedule is based upon estimates by AWE and major vendors Development activities are estimated to be complete by 31 December 2012 Construction is projected to be completed over a 30 month construction period. June 30, 2015 is the projected Commercial Operation Date (COD). Water Rights LasVegas1 will use air-cooled HRSG technology minimizing water requirements. Any water rights required will be purchased and water will be obtained from existing on-site wells. Interconnection Schedule Initial Application to NV Energy June 1, 2011 System Impact Assessment July 1,2011 Detailed Cost of Interconnection September 1, 2011 Interconnection Agreement December 31, 2012 PROJECT FINANCING STRATEGY The company is pursuing commercially based financing using high yield debt finance with equity from strategic investors.

AWE Response to LADPW

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PROJECT DEVELOPMENT COSTS The project development expenditures generally fund the development before project construction financing. These are necessary expenditures to secure the site, the feedstock agreements, the off-take agreements and do enough preliminary engineering so that investors have enough confidence in the development of the project that they are prepared to commit to construction funding. The development expenditures estimated for the project are shown in the table below:
Developm ent Funding Sum m ary ($) General & Administ rat ive Feedst oc k Negot iat ion Transmission Int erc onnec t Power Purc hase Agreement Front End Engineering & Design EPC Cont rac t Negot iat ions Environment al & Permit t ing Financ ing Cost s 2011 2012 2013 2014

Totals $ 2,772,000 $ 225,000 $ 160,000 $ 180,000 $ 795,000 $ $ 62,000 $ 780,000 $ 4,974,000

$ 396,000 $ 225,000 $ 160,000 $ 30,000 $ 100,000 $ $ 1,000


$ 60,000

$ 792,000 $ $ $ 150,000 $ 695,000 $ $ 61,000


$ 720,000

$ 792,000 $ $ $ $ $ $
$ -

$ 792,000 $ $ $ $ $ $
$ -

$ 972,000 Cumulative $ 972,000

$ 2,418,000 $ 3,390,000

$ 792,000 $ 4,182,000

$ 792,000 $ 4,974,000

PROJECT CAPITAL COSTS The capital costs of the project have been estimate based on discussions between AWE and the respective vendors. In addition AWE has used judgmental estimates of the engineering, contingency, and financing costs to come with a total capital cost estimate.

AWE Response to LADPW

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Capex($1000s) RDFFacility GasifierStandAlone GasCleanUp GenerationBlock TransmissionInterconnect SubTotal BalanceofPlant EPCContract DevelopmentCosts DeveloperFee TotalCapexpreCRFee DebtRaiseFee EquityRaiseFee $23,000 $40,000 $10,000 $95,572 $5,000 $ 173,572 10.0% $17,357 10.0% $17,357 $4,974 10.0% $17,357 $ 230,618 5.0% $8,438 5.0% $3,093

TotalCapex $ 242,148 PROJECT OPERATING COSTS The operating costs of the project were developed based on discussions with the respective vendors and based on industry metrics as well as AWE estimates. The operating cost estimates are shown in the table below:
Opex($1000s) Transmission RDFOpex GasifierOpex GenerationOpex BiomassRoyalty OPEXSubTotal Admin/MgtFee TotalOpex Escalation $3,168 $2,000 $3,000 $2,894 1.00% $11,062 $1,500 $12,562 1.5%

PROJECT FINANCING The project plans to secure equity from strategic investors and secure debt financing from a commercial banks. The commercial bank loan is assumed to have a 25 year term and a 10% annual interest rate. The development period is assumed to be 1 and years and the construction period is assumed to be 2 and years so that mechanical completion and commercial operation would be in 2015 with year of operation. The project is assumed to receive the Production Tax Credit (PTC) and equity investors are able to fully utilize all project tax credits. The sources and uses of funds are shown in the table below:

AWE Response to LADPW

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FinancingSummary UseofFunds ProjectCapitalCost ImterestDuringConstruction TotalCapitalCost SourceofFunds Equity CommercialLoan TotalFundingSource


Source: AWE Financial Model PROJECT ECONOMICS

$ 242,898 $17,799 $ 260,698

$65,161 $ 195,536 $ 260,698

AWE Response to LADPW

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The project cash flows and internal rate of return for the Basic Plant are indicated in the project financial model summary shown below which assumes full use of available tax credits: Base Case
SummaryFinancials($1000s)BasePlant CalendarYear OperatingRevenues PowerRevenues RecyclingRevenues TippingFees TotalRevenues OperatingExpenses NetOperatingExpenses EBITDA AfterTaxCashFlow EBITDA DebtService TaxesPaid Equity NetCashFlow IRR NPV10 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$ $ $ $

$ $ $ $

$ $ $ $

$ $ $ $

$ 18,987 $ $ $ 18,987

$ 38,544 $ $ $ 38,544

$ 39,122 $ $ $ 39,122

$ 39,709 $ $ $ 39,709

$ 40,305 $ $ $ 40,305

$ 40,909 $ $ $ 40,909

$ $

$ $

$ $

$ $

$ 6,810 $ 12,177

$ 13,824 $ 24,720

$ 14,032 $ 25,091

$ 14,242 $ 25,467

$ 14,456 $ 25,849

$ 14,673 $ 26,237

$ $ $ $ $

(261) (261) 25% $ 36,588

$ $ $ $ $

(649) (649)

$ $ $ $ (18,579) $ (18,579)

$ $ $ $ (32,480) $ (43,251)

$ 12,177 $ $ (16,252) $ (13,193) $ 15,236

$ 24,720 $ (21,542) $ (31,987) $ $ 35,165

$ 25,091 $ (21,542) $ (20,178) $ $ 23,726

$ 25,467 $ (21,542) $ (13,032) $ $ 16,957

$ 25,849 $ (21,542) $ (12,885) $ $ 17,192

$ 26,237 $ (21,542) $ (7,473) $ $ 12,168

Source: AWE Financial Model Upside Case


SummaryFinancials($1000s)UpsideCase CalendarYear OperatingRevenues PowerRevenues RecyclingRevenues TippingFees TotalRevenues OperatingExpenses NetOperatingExpenses EBITDA AfterTaxCashFlow EBITDA DebtService TaxesPaid Equity NetCashFlow IRR NPV10 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$ $ $ $

$ $ $ $

$ $ $ $

$ $ $ $

$ 18,987 $ 4,374 $ 3,759 $ 27,120

$ 38,544 $ 8,880 $ 7,631 $ 55,055

$ 39,122 $ 9,013 $ 7,745 $ 55,880

$ 39,709 $ 9,148 $ 7,861 $ 56,719

$ 40,305 $ 9,285 $ 7,979 $ 57,569

$ 40,909 $ 9,425 $ 8,099 $ 58,433

$ $

$ $

$ $

$ $

$ 6,891 $ 20,229

$ 13,989 $ 41,065

$ 14,199 $ 41,681

$ 14,412 $ 42,306

$ 14,628 $ 42,941

$ 14,848 $ 43,585

$ $ $ $ $

(261) (261) 41% $ 109,914

$ $ $ $ $

(649) (649)

$ $ $ $ (18,579) $ (18,579)

$ $ $ $ (32,480) $ (43,251)

$ 20,229 $ $ (13,433) $ (13,193) $ 20,469

$ 41,065 $ (21,542) $ (26,266) $ $ 45,790

$ 41,681 $ (21,542) $ (14,371) $ $ 34,510

$ 42,306 $ (21,542) $ (7,138) $ $ 27,903

$ 42,941 $ (21,542) $ (6,903) $ $ 28,302

$ 43,585 $ (21,542) $ (1,401) $ $ 23,444

Source: AWE Financial Model The project cash flows and internal rate of return for the Upside Case Plant are indicated in the project financial model summary shown below which assumes full use of available tax credits, a Tipping Fee of $10 per ton and revenues as shown previously for recycled materials. The resulting economics for the Upside Case show that assuming both a Tipping Fee and Revenues from Recycling Materials and assuming the project is able to secure investors with a

AWE Response to LADPW

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tax appetite the IRR is 41% with a $109.914mm NPV at 10%. The key risk in this assumption is negotiating the Tipping Fee and securing the expected levels of recycling materials. 3.3.2.ii OPTIMUM PROJECT: INITIAL CONVERSION PROJECT SoCal1 is the Initial Conversion Project proposed. AWE, the developer, has experience with all aspects of the project after completing the initial development of LasVegas1. (See Appendix 1 for a summary of the Development Schedule for that project.) SoCal1 is structured to provide a market internal rate of return with a Tipping Fee that provides financial benefits to partnering Transfer/Recycling partners. SoCal1 will divert 300 tons per day (bone dry) from landfills. SoCal1 will produce RDF from post-recycling materials that are currently sent to landfills. Project Summary:

AWE has considerable experience with developing and financing renewable projects. SoCal1 will use a portfolio of commercial technologies and will hold warrants guaranteeing technology performance for all components. Nevertheless, AWE recognizes that funding an initial project will pose serious financial challenges. SoCal1 is designed to overcome the financing obstacles facing initial integration of the technology project. While all the technologies used in the project the MRF, Indirect Gasifier, and Combined Cycle power block, have been developed at commercial scale, the initial commercial application will in the opinion of AWE have to be able to offer a Process Guarantee on the project. SoCal1 is designed to minimize capital cost in order to increase the ability to finance the project with a Process Guarantee. SoCal1 will obtain a Feedstock Agreement from a Transfer Station/MRF so that the CapEx for the MRF will only be the incremental cost of preparing the post-recycling waste stream into a uniform Refuse Derived Fuel. OPTIMUM PROJECT: SOCAL1 Technology Package: o Incremental MRF + Pelletizer to prepare feedstock. Note the Initial Project assumes the MRF will be receiving organic material that has already had recycling material removed. o Feedstock is RDF at 300 bone dry tons per day. o Indirect Gasifier to produce medium BTU syngas (500 BTU per SCF). o Catalytical gas cleanup or use of Dahlman Gas Clean-Up. Sample RDF will be gasified and cleaned with catalyst at NREL lab and analyzed in attached mass spectrometer.

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Suitability for use with Solar Turbine will be determined at that point. The catalyst may be shown to be sufficient for clean-up. If needed the project will add Dahlman Clean-Up. o Combined cycle power block. Project Financing o CapEx - $100M. o OPEx - $5.25M. o Power Purchase Agreement - $85/MWH, 1.5% escalation o Tipping Fee - $30 per ton. o Internal Rate of Return 25% Project Team o American Waste to Energy o Rentech o Bulk Handling Systems 3.3.2.iii OPTIMUM PROJECT: SMALL CONVERSION PROJECT The Small Conversion Project provides AWE with a portfolio of projects that maximize opportunities. The Project uses the same basic family of technologies but at smaller size. The Small Project uses a single Taurus combustion turbine with an Organic Rankine Cycle (ORC) system on the back end that uses an air cooled condenser. The gasifier would handle 117 tons per day of RDF. As stated, the Small Project allows AWE to bid into the RAM Requests for Offers. The Small Project also allows AWE to work with smaller Transfer/Recycling operations. Without this option, these sites would have to be bundled with other to meet minimum daily feedstock requirements. Bundling would add to feedstock costs to cover transportation costs.

The Respondent must be the owner of the technology, or otherwise hold the appropriate licenses or agreements to market, develop, warranty, and (if operating services are offered) operate and maintain the technology for longterm periods (e.g., 10 or 20 years) within Los Angeles County, California. 3.3.2.iv AGREEMENTS TO MARKET TECHNOLOGIES AWE will obtain each of the technologies from equipment providers with appropriate performance

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warrants and indicative pricing. For LasVegas1 AWE obtained indicative pricing from BHS, Rentech, and Solar Turbines. These offerings are confidential and are now dated. For SoCal1 AWE will request updated and new CapEx and OpEx estimates for the 20 MW/300 tons per day project. AWE will also pursue possible Joint Venture agreements with any or all of the equipment providers. For LasVegas1 AWE was in the process of negotiating a Joint Venture to share development costs and project finance. That JV has been abandoned for the moment. The technology must be ready for immediate, commercial development in Los Angeles County at the capacity and with the feedstock defined by the Respondent for the optimum project(s). The Respondent shall demonstrate such "readiness" by documenting with its RFEI response that the technology has previously operated in either a commercial application and/or for demonstration purposes, processing MSW comparable to the characteristics of MSW described in Attachment 1 (or processing RDF or MRF residue resulting from such MSW), or processing food waste and/or green waste, as applicable. The commercial and/or demonstration project(s) used as evidence of technology "readiness" must be of a comparable unit and/or facility capacity to the optimum project(s) identified by the Respondent, or must have a reasonable "scale up" factor justified by the Respondent as part of the RFEI response. 3.3.2.iv TECHNOLOGY COMMERCIAL READINESS BHS: See Appendix 2 Rentech: o The SilvaGas Indirect Gasifier operated at commercial scale for 2000 hours at the McNeil Generating Station. Documentation from McNeil Demonstration. Appendix 3 o Refuse Derived Fuel with a composition comparable to that indicated in the RFEI was gasified at the Pilot Gasifier operated by Battelle Labs. RDF was purchased from a number of commercial waste-to-energy facilities and gasified in the facility. The results of the gasification tests were then published in a Paper from DOE. This Paper (Attached as Appendix 4) concluded that the RDF was equivalent to wood chips. Solar Turbines: Solar Turbines, a division of Caterpillar, offers a number of Combined Cycle generating packages. Solar Turbines has worked with syngas and is ready to offer Warrants for their turbines for use with approved syngas. For a Description of their Combined Cycle packages see Appendix 5. The technology must have an existing reference facility (demonstration or commercial) that can be visited to observe the technology in operation. The RFEI response must provide information on that reference facility, including its location and operating status. 3.3.2.v DEMONSTRATION FACILITIES The technologies AWE will integrate in SoCal1 have not as yet operated in combination. Each technology has separately seen operation at commercial scale: BHS has several commercial Material Recovery Facilities in operation. BHS has operating facilities in Southern and Northern California. The BHS GreeenWaste project in Northern California is described in Section 333.vii.

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Rentech owns the SilvaGas Indirect Gasifier which operated at commercial scale at the McNeil Generating station in Burlington, Vermont. That operation worked for 2000 hours to establish commercial viability and has since been mothballed. Solar Turbines have substantial commercial operations. The Solar Turbine headquarters are in San Diego.

The technology must provide for beneficial use of waste through the production of fuel and/or energy, compost, and other marketable products, as applicable, evidenced by defined markets for all such products. The County recognizes that certain recovered or generated products may have legitimate beneficial uses but no or limited market value or revenue potential. 3.3.2.vi BENEFICIAL USE OF WASTE Beneficial Use of Waste SoCal1 offers a substantial portfolio of economic and environmental benefits that include: The diversion of 360 tons per day (or 131,000 tons per year) of organic waste from landfills. Partnering Transfer Stations/Recycling will have lower tipping fees of more than $1 million per year (Assuming expected tipping fees for landfills of $40 per ton and a fee to SoCal1 of $30 per ton.) The production of 1,411,017 MMBTU of renewable syngas. The production of 148,920 MWH of renewable electricity provided to Southern California public power authorities. The avoidance of CO2 from electric generation displaced by SoCal1. The establishment of the economic and environmental benefits of waste conversion that can be replicated in Southern California and elsewhere. The technology must be able to facilitate the County's goal of maximizing landfill diversion, and at a minimum must have the potential to achieve 50 percent or greater landfill diversion (by weight) when processing MSW as described in Attachment 1 or processing source-separated food waste and/or green waste. 3.3.3 Information Submittal The respondent is requested to provide the following: 3.3.3.i IDENTIFICATION OF CONVERSION TECHNOLOGY EQUIPMENT SUPPLIER/PROJECT DEVELOPER Name of Company: American Waste to Energy, LLC Technology: Thermochemical conversion of waste to generate renewable electricity. Contact Person: George Sterzinger Name: George Sterzinger Title: CEO Telephone: 202-255-8119 Email: gsterzinger@gmail.com Fax: N/A Mailing Address: Two Riverway, Suite 725, Houston TX 77056 Please check the appropriate boxes: ___ Conversion Technology Equipment Supplier __X_Conversion Technology Project Developer

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Please indicate the feedstock for which the technology is demonstrated to be best suited (check all that apply): __X_MSW (REFUSE DERIVED FUEL) ___Food Waste ___Green Waste ___Biosolids ___Medical Waste ___Other (Specify:____________________) Please indicate the capacity for which the technology is demonstrated to be best suited (check all that apply): ___<100 tpd __X_100 tpd - 500 tpd ___500 tpd - 1,000 tpd __X_>1,000 tpd - 1,500 tpd ___> 1,500 tpd Please identify the optimum project(s) for commercial application of the technology within Los Angeles County: Design Capacity (tpd): 300 Feedstock: RDF Acres Required: 5 Please provide a discussion of the Respondents business structure and relationship to the proposed technology (e.g., years of direct history with the technology; ownership and/or license arrangements; other parties involved in technology development and ownership, etc.); the territory(ies) covered by any licensing arrangements, the term(s) of any arrangement(s), and the extent of exclusivity of any arrangement(s); the Respondent should describe the extent of licensor financial, technical and management support (including the application and enhancement over time of the technology), and arrangements that exist or would be put in place to efficiently access such support. 3.3.3.ii AWE STRUCTURE AMERICAN WASTE TO ENERGYs MANAGEMENT & BOARD Management: Chief Executive Officer George Sterzinger: George is responsible for commercialization strategies and initial stage project development. Sterzinger led successful projects to commercialize the Rentech-SilvaGas Indirect biomass gasifier in Vermont in 2000 - 2005 at the McNeil Generating Facitlity in Burlington Vermont. George was Commissioner of the Vermont Department of Public Service from 1988 - 2000. From 2006 2008 he assisted biomass gasifier developers convert dry mill ethanol facilities to a renewable fuel source to meet thermal input requirements. He founded Advanced Renewables Consulting in 1995 and currently serves as Executive Director of the Renewable Energy Policy Project in Washington DC. He is currently leading the companys effort to develop an MSW to Electricity project in Las Vegas, Nevada. He received a BS in Economic from St. Joseph College and did graduate work in quantitative economics at the Krannert School of Industrial Management School, Purdue University. Board of Directors: Co-Chairmen Jon Doyle: Jon is the Chief Executive Officer of DKRW Advanced Fuels LLC, A leading hydrocarbon conversion company located in Houston, Texas. From 1994 to 1996 Jon was responsible for the production start-up in China of a chemical plant and logistics network for NCH Corporation Inc. Between 1996 and 2000, he held various positions within Enron Corporation in the field of renewable

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energy including leading international renewable energy development. In 2000 he was recruited to IES, a $1.7 billion publicly traded electrical contracting company, to create and become president of IES Communications, Inc., a standalone communications infrastructure company. In 2002, Jon left IES to co-found DKR Development LLC, the predecessor company of DKRW Energy, LLC, where he has been working in wind, industrial gasification and LNG. At DKRW he was instrumental in the development, financing and construction of what is now the 585MW Sweetwater Wind Power Project and in co-developing the hydrocarbon conversion business, DKRW Advanced Fuels LLC. Mr. Doyle holds a BS in Business Administration from the University of North Carolina at Chapel Hill and an MBA from the American Graduate School of International Management, Thunderbird. Robert Kelly: Bob is the Executive Chairman of DKRW Advanced Fuels LLC, A leading hydrocarbon conversion company located in Houston, Texas. He has more than 25 years of experience in creating alternative energy companies as well as the development, financing, construction and operation of large complex power, steam and liquids facilities. Prior to co-founding DKRW Energy in 2002, Bob served as CEO of EPV, a New Jersey solar photovoltaic manufacturer, and led the successful effort to raise a major round of new equity for the company. While at EPV he also negotiated and secured a major contract with a Chinese state investment company to install the companys manufacturing technology in China. From 1985 to 1997, he formed a number of asset-based businesses in the power sector including Enron Power Corporation, Enron Wind Corp, Amoco/Enron Solar and Enron Renewable Energy Corporation. From 1988 to 1993 he led development of the Teesside power project in the United Kingdom a $1.2 billion project financed complex at the ICI Chemical facility at Teesside which included an 1875MW power and steam facility as well as a 700MT/Yr gas liquids plant. Bob entered the energy industry following a 13-year career in the Army that included service in Vietnam and as a tenured Professor of Economics at West Point. He holds an M.P.A. and a Ph.D. in economics from Harvard University in addition to a B.S. in nuclear engineering from the United States Military Academy. Provide a description of the technology, including its capabilities for and experience with processing MSW, as described in Attachment 1, and/or sourceseparated food and/or green waste, as applicable. 3.3.3.iii AWE TECHNOLOGY

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Material Recovery Facility (MRF) The MRF is used to process the MSW. We plan to use Bulk Handling Systems equipment for the MRF. The Project is committed to using as fully automated MRF technology as possible. The Project will handle 1000 tons of MSW per day. The MRF will mechanically separate the MSW into three major groups. Inert materials that will be redirected back to the landfill. Valuable recyclables such as aluminum, ferrous metals, and HDPE plastics will be removed from the MSW stream and resold. The remainder of the MSW consists of organic materials which will be processed as a Refuse Derived Fuel (RDF). We estimate that the MSW will produce approximately 650 to 750 tons per day of RDF with the following composition:

Proximate Analysis Volatile Matter Fixed Carbon Ash Total Ultimate Analysis C H N O S Cl Ash Total

79.69 9.06 11.25 100.00 45.95 5.96 0.41 36.26 0.17 - 11.25 100.00

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Moisture Heating Value (Dry Basis, HHV) Measured (Btu/lb)

20.45 7,533

Rentech/SilvaGas Gasifier The Rentech/SilvaGas Gasifier is used to produce a medium BTU syngas from the RDF. The technology uses a double vessel configuration consisting of separate gasification and char combustion. This design allows the gasification to occur without oxygen reducing emissions concerns. The medium BTU syngas can be substituted for natural gas in many applications. For the production of electricity, it allows the syngas to be used in standard turbine and combined cycle generators. In the gasifier, product gas is formed from the introduction of biomass RDF fuel, which is rapidly pyrolyzed in an oxygen-free environment by hot olivine. Steam is used in the gasifier to provide initial fluidization to begin olivine circulation through the system. Olivine recirculation starts when the vessel temperature has reached approximately 800 F. The recirculating olivine provides the majority of thermal energy to heat up the gasifier. The gasifier must be heated to at least 1,300 F prior to the introduction of RDF so that the pyrolysis reactions can take place without producing excessive amounts of tar. Once these reactions begin, the resulting product gas provides the primary motive force for the conveying of the olivine and char through the gasifier vessel. Air is gradually reduced once RDF feed has started, and is completely turned off once 1,300 F is reached. During this process, the olivine temperature diminishes, while the breakdown of the fuel results in the production of char particles (carbon), product gas and a small amount of condensable organic compounds (tars). The resultant char and olivine are separated from the gas stream exiting the gasifier in the dual two-stage gasifier cyclones. Product gas from the gasifier is directed to the gas clean-up system for removal of impurities prior to utilization in the three Solar Model T-130 CTs. The product gas contains hydrogen sulfide, which is scrubbed out downstream in the gas clean-up system, using an aqueous scrubber. The formation of hydrogen sulfide in the gasifier, in effect, minimizes the amount of fuel sulfur that subsequently enters the combustor. Combustor At the gasifier exit, the product gas is separated from the olivine and unpyrolyzed char. The char, which is separated out with the olivine in the cyclone, is carried into the combustor. The char contains pyrophoric carbon at 55 percent by weight, 5 percent hydrogen, and 40 percent ash. Air is introduced into the combustor to support the combustion of the char particles with the resultant release of thermal energy, providing additional heat to the recirculating olivine. The reheated olivine is then transported back to the gasifier to supply the energy necessary for the gasification of the incoming wood feedstock. The combustor cyclone separates the olivine from the flue gas and ash before sending the olivine back to the gasifier. The efficiency of the combustor cyclone is greater than 99 percent removal, so that the loss of olivine from the entire system is minimized. The flue gas, smaller ash and traces of fine olivine particles remain entrained in the gas and proceed to the ash cyclone. Due to the very high efficiency of the combustor cyclone, the targeted ash removal efficiency of the ash cyclone is ~85 percent. The ash cyclone is followed by a baghouse, which removes >99 percent of the remaining particulate before exhausting to the atmosphere. It is important to note that the flue gas from the combustor contains very little sulfur, as the organic sulfur remains in the product gas as hydrogen sulfide. This is because the pyrolysis process in the product gas gasifier operates in a reducing environment in the absence of oxygen. As a consequence, organic sulfur compounds in the RDF decompose into hydrogen sulfide. This component of the gas stream is ultimately reduced in the product gas clean-up system to produce a product gas hydrogen sulfide (H2S) concentration of less than 5 parts per million. Ash is a byproduct of the gasification process and must be continuously removed and disposed of off-site as a non-hazardous material. In addition, it is estimated that about 300 lbs of makeup olivine may be

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required per day. It is currently proposed that olivine be delivered by truck, and unloaded pneumatically into a storage silo. The silo would be equipped with a baghouse for particulate control. However, it is possible that the use of super sacks may be as efficient, and less costly than a pneumatic unloading system. Final details will be provided when available.) Syngas Clean-up Syngas clean-up is a critical step before the gas can be used in any turbine generator. The first choice of the AWE will be to use the Proprietary catalyst developed at NREL. If added cleaning is needed, the Project will use the Dahlman OLGA technology. The Dahlman Syngas Clean-up step involves the following procedures: Removal of tar & solids by OLGA and then the separation of the heavy tars & solids from the collector column. The condensed tars and captured solid particles together with the scrubber oil are circulated. A recovery system in a bypass stream separates the heavy tars and the solids from this circulation loop. These tars can be recycled to the SilvaGas gasifier. This process is followed by separation of light tars from the absorber column. As this stripper uses the combustion / fluidisation air required by the gasifier these light tars are recycled and destroyed in the gasifier. The OLGA process can be modified to target the gas specification in order to produce a cleaned syngas that can meet the turbine manufacturers warranty requirements. Going forward the Project will optimize the MRF/gasifier/gas clean up technologies. Solar Turbine Combined Cycle 20 MW Generator Solar Turbine is a subsidiary of Caterpillar and has a long, successful track record of providing turbine generators for power generation. The addition of a Combined Cycle package increases the generation efficiency and supports project economics. In a Combined Cycle configuration, SoCal1 will achieve a heat rate under 10500 BTU per kWh produced. Information is requested on the Respondents concept for an optimum project(s) for commercial application of the technology within Los Angeles County. Respondents can provide more than one size and type of waste for optimum project scenarios. o Respondents are requested to identify their approach to modular development or scale up of modules for a commercial facility. The proposed concept should represent a complete process (i.e., pre-processing, conversion, and post-processing/ management of products and residue, including energy generation and compost curing, as applicable) for a greenfield facility that is not integrated with pre-existing infrastructure. 3.3.3.iv AWE Development Approach AWE is a development company with extensive experience with fossil and renewable energy projects. The federal loan guarantee program is no longer available to take on the risk of initial technology in energy projects. Private financing is available but it will be offered only under very stringent risk protections for the lenders. It is AWEs strong belief that a development strategy for MSW Conversion has to design Initial Projects to address those stringent risk protections. Our proposed Initial Project meets those conditions. Beyond that design requirement, AWE will tackle project development in stages: Feedstock Agreement with credible partner. Indicative Prices for CapEx and OpEx and analysis in Pro Forma establishing viability. Initial Power Purchase Agreements. Pre-Certification from California Energy Commission. AWE has obtained Indicative Prices for all system components and has established the general financial

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viability of MSW Conversion. AWE has also obtained Power Purchase Agreements that can be used with the Initial project. AWE needs a Feedstock Agreement and Pre-Certification from the California Energy Commission. With those pieces in place, AWE will open negotiations to form a Joint Venture to provide equity to finish the Development Schedule and Financial Closing. AWE will then move quickly to pursue development of LasVegas1. This provides a strong relationship with a major owner of landfills. Our financial pro formas indicate a strong position for follow-on projects. o Please provide a generic facility site layout, equipment general arrangement, and schematic process flow diagram for the optimum project. 3.3.3.v Generic Facility Layout MRF See Appendix Gasifier/Combined Cycle See Appendix 7. Combined Cycle See Appendix 8. o Provide a description of air pollution control technologies, as applicable. 3.3.3.vi Outline o f Air Permitting for Project 1. SoCal1 will seek a separate Air Permit. The final selection will be made after a review of permitting and cost factors are assessed. 2. All of the potential sites are expected to be in a PSD and ozone non-attainment area. The emissions of the project are estimated based on EPC detailed engineering plans. 3. The project design will have to use BACT technology to limit estimated emissions. 4. BACT standards will require: a. SCR on the Heat Recovery Steam Generator (HRSG) emissions. b. CO Catalyst on the HRSG emissions. c. SCR and High Heat Bag House for the gasifier/combustor stack. d. Bag House for the MRF facility. 5. The Project will have to obtain offsets for any emissions of criteria pollutants above the 100 TPY limits. At this time it appears the project will exceed the limit for NOx and possibly CO. a. Our assumption at this time is that offsets can be used 1:1 to offset emissions above the 100 TPY limit. 6. The Timeline for permitting is: a. Application Early 2013. Time zero. b. Authority to Construct (ATC) Permit - Plus 6 months c. Title V Permit Plus 12 months o Please identify the minimum number of acres required for development of the optimum project(s) as well as the preferred acreage if different, and specify the approximate utilization of those acres (e.g., percent allocation to buildings and structures, roads and parking, buffer and green areas, etc.). Please identify the necessary utilities and interconnections that would be required. For water consumption, discuss the extent to which reclaimed water could be used, if available. For wastewater, discuss whether the project could be configured for zero discharge of process wastewater. 3.3.3.vii Plant Layout and Acreage The Initial Conversion Project will have a footprint smaller than three acres. AWE has not commissioned engineering drawings since the plant configuration will depend upon site specific factors outside our control. Appendix 8 shows the footprint of the Combined Cycle generator at roughly 100x180. o

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In addition, for those submitting information as a project developer, please describe any existing relationships with environmental permitting firms, design firms, construction companies, operators, and project financing partners with which you are developing or planning to develop projects. 3.3.3.vii AWE Development Milestones For the Greenfield Project, AWE worked with CH2MHill on environmental permitting and Ford, Bacon, Davis on engineering feasibility. We issued Confidential Information Memos to several potential equity investors. We also began negotiations to form a Joint Development Venture with a partner. These relationships will serve as a staring point for a SoCal1 project. However, AWE reserves the right to negotiate or enter into new arrangements. AWE will develop the project according to the following sequence: FEEDSTOCK AGREEMMENT Obtained Letter of Intent with MSW provider for provision of 1500 tons per day MSW. CEC PRE-CERTIFICATION Drafted all relevant CEC Pre-Certification forms for MSW conversion as renewable feedstock. SITE CONTROL Early stage negotiation for obtaining site at existing landfill for location of LasVegas1. TRANSMISSION INTERCONNECT - Study Stages Initial Application System Impact Study Detailed Construction Costing ENVIRONMENTAL PERMITTING Application Preparation - CH2MHill PPA NEGOTIATION INDICATIVE PRICING: FRONT END ENGINEERING AND DESIGN Indicative Pricing obtained for all technologies. Ford, Bacon, Davis reviewed and agreed that all costs were reasonable. FBD unable to review MRF price due to inexperience with these technologies. Gasification PDP EPC Final FEED RDF GASIFICATION AND CLEAN UP ANALYSIS Obtain RDF Sample from BHS Conduct Test Gasification and Clean Up Analysis As noted above, Respondents should define their optimum projects based on the assumption that such projects will be stand-alone, greenfield projects, not integrated with pre-existing infrastructure. Since there is the potential for development of conversion technology projects in Los Angeles County in combination with existing facilities such as recycling facilities, transfer stations, and landfills, Respondents should describe how their technology could, in general, be beneficially integrated with such existing infrastructure. o

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Provide a list of operating facilities, size of such facilities, description of whether they are commercial or demonstration facilities, date placed in operation, and current status. Of the list, identify those facilities that are considered by the Respondent to be reference facilities, in that they most closely represent the optimum project(s) for commercial application of the technology within Los Angeles County. At least one reference facility must be identified. For each reference facility identified above, please provide: facility name and location; facility description, including process flow diagram; facility owner and operator; entity(ies) served by the facility; primary regulatory agency for facility; development status (demonstration or commercial facility); dates operated; design capacity (tpd); demonstrated operating capacity (tpd); number of units and unit capacity (tpd); annual availability; demonstrated annual waste throughput; annual operating hours; type and quantity of waste processed; type of products-energy, fuels, compost, etc. and marketability of same; environmental performance, permit compliance history; public acceptance; client satisfaction; mass and energy balance information; and other relevant information that demonstrates readiness and reliability of the technology Please provide electronic copies of photographs of each reference facility. Provide photographs in a JPG or comparable format that can be reproduced by the County for reports, presentations, or other media such as the data base. To the extent available, videos related to operations at the reference facilities are of interest to the County and ARI and are encouraged to be submitted with the RFEI response. 3.3.3.ix Facilities Background Data



MATERIAL RECOVERY FACILITY facility name and location GreenWaste, San Jose, CA. facility description, including process flow diagram - Process uses; Bag Breaker, Debris Roll Screen, Nihot Drum Separator, Polishing Screen, OCC Separator, NewSorter, NRT Optical Scanner, ElectroMagnets, Eddy Current Separators. facility owner and operator GreenWaste Recovery, Inc. entity(ies) served by the facility Burbank, Portola, San Jose, South Santa Clara County, Capitola, Los Altos, Santa Cruz, Woodside, Palo Alto, Lexington Hills, Scotts Valley. primary regulatory agency for facility CalRecycle development status (demonstration or commercial facility) Facitlity is fully functional and has operated for four years.

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dates operated 2008 to present. design capacity (tpd) 20 tons per hour for the single stream line, 30 tons per hour for the MSW line. demonstrated operating capacity (tpd) Annual processing of 104,000 tons of MSW and 65,000 tons of single stream. number of units and unit capacity (tpd) Two lines. See above for hourly capacity. annual availability 95% demonstrated annual waste throughput - Annual processing of 104,000 tons of MSW and 65,000 tons of single stream. annual operating hours - type and quantity of waste processed Single stream and MSW. type of products-energy, fuels, compost, etc. and marketability of same Baled OCC, Baled ONP, Baled Mixed Fiber, Baled PET, HDPE, Baled #3 - #7 Plastics, Ferrous Metals, Baled Aluminum, Compost. environmental performance, permit compliance history - The GreenWaste MRF has a total facility diversion rate of 88%, recovering 98% of available recyclables and 75% of MSW. During its operation, the facility has been compliant with all regulations and was awarded the ACTERRA Environmental Enterprise award in 2011. public acceptance - High- GreenWaste routinely conducts tours for the public and is a partner with the City of San Jose in creating diversion audits to help the city reach its zero waste goals by 2022. client satisfaction - High mass and energy balance information; and other relevant information that demonstrates readiness and reliability of the technology RENTECH/SILVAGAS INDIRECT GASIFIER facility name and location MCNEIL Generation Station, Burlington, Vermont facility description, including process flow diagram - facility owner and operator Facility mothballed. entity(ies) served by the facility Gasifier provided syngas to McNeil Station. primary regulatory agency for facility Vermont Department of Natural Resources. development status (demonstration or commercial facility) Project demonstrated at commercial scale. dates operated Various for 2000 hours In 1994 - 1997. design capacity (tpd) 200 tpd. demonstrated operating capacity (tpd) 300 tpd plus. number of units and unit capacity (tpd) 1 unit. annual availability Availability was estimated to be 85%. demonstrated annual waste throughput N/A. annual operating hours N/A. type and quantity of waste processed Woodchips. type of products-energy, fuels, compost, etc. and marketability of same Syngas. environmental performance, permit compliance history Project met federal EIS and state air permit requirements. public acceptance High. client satisfaction High. mass and energy balance information N/A. other relevant information that demonstrates readiness and reliability of the technology SOLAR COMBINED CYCLE GENERATOR facility name and location; facility description, including process flow diagram; facility owner and operator;

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entity(ies) served by the facility; primary regulatory agency for facility; development status (demonstration or commercial facility); dates operated; design capacity (tpd); demonstrated operating capacity (tpd); number of units and unit capacity (tpd); annual availability; demonstrated annual waste throughput; annual operating hours; type and quantity of waste processed; type of products-energy, fuels, compost, etc. and marketability of same; environmental performance, permit compliance history; public acceptance; client satisfaction; mass and energy balance information; and other relevant information that demonstrates readiness and reliability of the technology As applicable, please describe plans for marketing fuel and/or energy, compost and other products generated by a commercial facility. Assess the strengths of markets for the products generated. 3.3.3.x AWE Marketing Strategy. Municipal Solid Waste is a readily available organic feedstock that is largely wasted, i.e. landfilled. AWE and LasVegas1 have designed the technology package specifically to overcome the regulatory challenges currently blocking the use of MSW and to convert this resource into a major source of renewable energy. In the past, the incineration of MSW led to well documented environmental and health hazards. California has specifically addressed these concerns. Incineration of any kind is prohibited. In order to qualify as a renewable resource a project using MSW as a feedstock must use a conversion technology that is indirect. By indirect, the commission specifically requires that the RDF or organic material must be converted to gas using a process that applies heat in the absence of oxygen or air. Indirect processes are thermo-chemical in nature. AWE conversion technology meets the conditions California places on the use of MSW. American Waste to Energy (AWE) integrates a set of technologies that allow Municipal Solid Waste (MSW) to be processed to Refuse Derived Fuel (RDF), which is then thermochemically converted to a synthetic gas, which is then cleaned and used to produce renewable electricity. AWE projects will meet the most stringent California Energy Commission environmental requirements. AWE projections indicate that net MSW available for power generation in the US will increase from 170mm tons in 2010 to an estimated 204mm tons by 2030 then an estimated 250 mm tons by 2050. Using AWE technology each 1000 tons of waste that would otherwise go into a landfill could generate 30MW of electrical power The net MSW available in 2030 could potentially fuel 16.4 gigawatts of incremental electrical capacity --- this could meet 21.4% of all incremental electrical capacity requirements projected by DOE to be required between 2010 and 2030.

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Please provide an overall system mass balance for the optimum project(s) for commercial application of the technology within Los Angeles County. The balance should include recyclables recovered, energy generated, all other products generated such as compost or aggregate (as applicable), and residue requiring landfill disposal. This is intended to obtain sufficient information to assess the potential to achieve 50 percent or greater landfill diversion (by weight) when processing MSW as described in Attachment 1 (or processing RDF or MRF residue resulting from such MSW), or processing source-separated food waste and/or green waste, as applicable. The ability to achieve significant landfill diversion is a priority of the County. Please provide a discussion of steps that could be taken to increase diversion above that specified for the optimum project, including a discussion of the technical and economic impact on the overall project of increased diversion (e.g., changed energy output, increased or decreased operating cost, etc., as applicable). 3.3.3.xi Energy Balance Energy Requirements for RDF Preparation The energy required for RDF preparation is about 0.031-0.046 million Btu per ton of MSW. Energy Produced by RDF Conversion As a fuel, RDF has roughly one-half the Btu value of the same weight of coal. RDF also has a higher ash and chloride content, and a lower sulfur content. The MRF will convert 75-85% of the weight(6) and 80-90% of the Btu value of the MSW into RDF [107].

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Net Energy Balance The Net Energy Balance for the MRF is .046 MMBTU for processing a ton of MSW and 11.73 MMBTU produced in a ton of RDF. The Energy balance is positive 11.27 MMBTU per ton of MSW.

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