Environment Industry Renewable Energy

1. Environment Industry Renewable Energy WELCOME Railroad Guests Pinnacle appreciates the opportunity to share this information.

2. Pinnacle Engineering • Presenters: • Jim Holland P.E./CEO • John Landwehr Director Environmental Services

3. The Industrial Stormwater Program • The goal of the Industrial Stormwater Permit Program is to reduce the amount of pollution that enters surface and ground water from industrial facilities in the form of stormwater runoff. • This goal is accomplished through developing an effective Stormwater Pollution Prevention Plan (SWPPP) which contains your Stormwater Control Measures, described as Best Management Practices (BMPs).  • http://www.pca.state.mn.us/index.php/w``ater/water-types-and-programs/stormwater/industrial-stormwater/industrial-stormwater.html

4. Requirements of New Permit • Multi-Sector, 29 sectors with sector specific benchmark monitoring • SWPPP requirements • BMP’s classified as non-structural and structural • Requires BMP’s be implemented • Implementation schedule for BMP’s • Site inspection and maintenance requirements • Special monitoring requirements for facilities discharging to or within 1 mile of an impaired water

5. Applicability • Any facility discharging storm water associated with industrial activity as defined in 40 CFR 122.26(b)(14) • Must apply for coverage under this permit and prepare a SWPPP • Must apply for No-Exposure under this permit if currently designated No-Exposure, or may apply for No-Exposure under new permit if changing practices or new applicant Facilities Not Covered • Construction storm water except asphalt plants, concrete plants, and sand/or gravel operations located at a construction site. • Sites that require completion of a EAW or EIS

6. No Exposure Facilities which have no materials or industrial activities outdoors may qualify for No Exposure If qualified, there is no SWPPP, fee, annual reports, or monitoring required for 5 years No exposure means absolutely no rain, snow, or runoff comes in to contact with “significant” materials Applying for No Exposure • The Industrial Stormwater Multi-Sector General Permit Application contains a No-Exposure Certification

7. Storm Water Permit Facts • Estimated by MPCA 6,000 facilities are operating without a permit that are covered by the rule • Estimated another 2,000 facilities have operations that can be certified No-Exposure • Since the October 2002 expiration of the prior general permit an estimated 1,600 facilities have been operating under the expired permit • Permit program is primarily designed to control discharge of sediment to waters of State of Minnesota

8. Sectors • 10 SIC codes broken into 29 sectors • Majority of revenue for facility determines primary sector, if revenue is not representative, number of employees dedicated to an activity will be used, if this is not representative of the site, the overall square footage of areas dedicated to unique activities will be used. • If the majority of revenue, etc…does not fall into one of the required SIC codes or sectors, then no sector requirements will be implemented. • If a primary sector has been determined, all other sector activities on site must be included in benchmark monitoring. • Each sector activity has specific benchmark monitoring parameters.

10. Application Deadlines • Permit effective date: April 5, 2010 • Sectors A,C,D,E,F,G,I,J,L,M,N,Q,Y,AA must apply within 60 days of permit effective date • Sectors H, K, O, P, R, S, Z, AC must apply within 120 days of permit effective date • Sectors B, T, U, V, W, X, AB must apply within 180 days of permit effective date

11. Application Deadlines continued. Ethanol Manufacturers, Cement and Concrete Products, Metal Mining, Mineral Mining and Dressing (sand, gravel, and aggregate processing), Land fills, Scrap Recycling Facilities, Water Transportation, Miscellaneous/ Rubber/ Plastics, Fabricated Metals Printing and Publishing, Transportation Equipment/ Industrial or Commercial Machinery Hazardous Waste Treatment/ Storage/ Disposal, Land Transportation and Warehousing, Furniture and Fixtures, Electronic/ Electrical/ Photographic/ Optical Goods 60 DAYS 120 DAYS 180 DAYS

12. Summary All facilities currently holding an MPCA issued NPDES/SDS Storm Water Permit for Industrial Activity must reapply for coverage under the new permit, including No-Exposure • Increased requirements for SWPPP’s and BMP’s • Increased monitoring requirements • Monitoring begins 12 months from effective date of permit • Monitoring during non frozen months. Primary pollutant of concern is sediment (Total Suspended Solids), • Discharges to impaired waters will be burdened with more monitoring requirements

13. Hypothetical Example • Assume that we are at a rail yard here in Minnesota • According to the rule, this facility would fall under the classification of Sector P2 (land transportation) • However, this yard also houses transportation equipment, industrial and commercial machinery (Sector AB), as well as sand and gravel to be shipped (Sector J4). • We know that applying for No Exposure is not feasible in this case.

14. Hypothetical Example Cont. • We must now consider what we can do to better prevent polluted stormwater from leaving the site. • In April of 2011 the facility will implement a program to test runoff water to searching for sources of contamination • Specifically, we have to look for TSS and monitor pH • The next step would be to develop BMP’s to install at the facility which would reduce/prevent stormwater pollution;

15. Hypothetical Example Cont. • Once a plan for BMP’s has been developed, a SWPPP can be created as well. A SWPP consists of preventative maintenance programs and employee training along with facility monitoring and inspection requirements • Additionally, we must make sure to follow all applicable sector-specific requirements • We are now ready to submit the actual permit, which includes an application fee

16. Hypothetical Example Cont. • After the permit has been submitted, the facility has one full calendar year to install and begin to use all BMP’s • Additionally, an annual report must be filled out and returned to the MPCA to ensure the SWPPP/BMP’s are being put to use effectively • Sampling of stormwater is also required beginning 12 months after permit issuance to ensure that BMP’s and the SWPPP have been effective, • Annual report due to MPCA

17. Summary • All rail operations are covered under this rule, • Most facilities will require Full Permit coverage to comply with this rule • Permit submittal requirement date for Sector P is approximately August 1st 2010 • Sampling requirements begin in 2011 • Completion of any structural BMP’s will be required within the 5 year permit term***** • Permit is Valid for a period of 5 years

18. Pinnacle’s Approach • Pinnacle will conduct an initial site visit free of charge to bring facility personnel up to speed with the rule • Permitting efforts typically require 4K-7K of engineering efforts to complete and submit • Big obstacle is if reasonable facility/yard drawings are not available • Pinnacle’s goal is to keep it simple and achieve compliance for the client

19. Who is Pinnacle • Beginning 20th year of business this month • Approximately 40 professionals in 3 offices Minneapolis, MN, Rochester, MN and Omaha NE • Pinnacle’s clientele are transportation, industrial and energy production • Pinnacle does not work for State of MN or other State regulatory agencies • Pinnacle is owned by key employees of the firm

20. Our Mission Engineering Beyond Compliance Comprehensive and Creative Solutions to Complex Environmental Problems OUR FOCUS AREAS: Building Relationships Providing personal client management through responsive timely communication. Understanding Clients Needs Serving the best interests of our clients by providing prompt cost effective solutions. Approaching engineering challenges with flexible innovative thinking. Bringing Clarity to the Environmental Picture Creating road maps to navigate environmental regulations Introduction

21. Rail Industry Services • Environmental Permitting • Emergency Response • Environmental Compliance • Environmental Engineering • Regulatory Representation • Process Engineering • Industrial Hygiene • Safety Services

22. Environmental Compliance • Pinnacle assesses your compliance status with a review of current practices, regulatory requirements, historical data, licenses, and reports. We meet with company officials to discuss goals and objectives, conduct a site walk-through, and interview key personnel. A thorough assessment allows us to establish a comprehensive infrastructure for your company’s environmental compliance.

23. Emergency Response/Disaster Assistance Emergency Response and Disaster Assistance is more than just showing up prepared on a site. • Pinnacle represents our clients interests and acts as your company representative in coordinating all agency relationships with the federal, state, and local regulators. We will implement a site specific Health and Safety Plan and assess environmental hazards. Pinnacle’s experienced professionals will assess environmental conditions and implement remedial and monitoring services to meet government regulations, and protect your interests in the process.

24. Pinnacle’s Industrial and Environmental Engineering divisions provide a unique set of services to our expanding base of renewable fuels clients. Renewable Fuels • Our professional staff see to it that your plant is in compliance with environmental regulations. • Our guidance and knowledge of air emissions testing, permitting, and continuous emission monitoring (CEM) technology eases your workload allowing you to focus on fuel production. Industrial Division

25. Air Quality Pinnacle helps clients plan and maintain air quality standards that meet increasingly stringent federal, state, and local regulatory requirements. We will identify operational alternatives that might be used to reduce your air permitting requirements. Pinnacle’s thorough knowledge and experience in emission test methods ensures the use of optimum test methods and a representative performance test. Industrial Division

26. Wastewater Treatment Pinnacle’s approach to wastewater treatment is to break down the treatment needs into similar treatable waste streams. Once the problem streams have been identified, they can be isolated and treated separately. • Operational and treatment methods can be more precise resulting in lower operating costs, fewer operation problems, and improved regulatory compliance. Industrial Division

27. Property Transfer Our professional staff have an average of 15-years experience in conducting thorough and concise Environmental Site Assessments. Partnering with business, we evaluate properties and inform our clients of current and historical environmental conditions, eliminate Superfund/CERLA liability for any existing contamination, recommend specific measures to mitigate undesirable impacts.

28. Industrial Hygiene Industrial hygiene is more than just sampling and a site walk-through. • Our staff can help you evaluate potential areas of concern, conduct testing, evaluate the results, and then design and implement compliance strategies for your workplace. • Our service provide our clients with the tools needed to evaluate and control worker exposure to hazardous atmospheres. Industrial Division

29. Health & Safety Pinnacle will assist in your efforts to ensure employee safety with a Health & Safety Management program customized for your operation. • Our health & safety engineers provide information on current regulations, assist your staff in maintaining compliance information, and evaluate how new standards impact your operations. Industrial Division

30. Code Review Pinnacle provides you with a clear picture of the required investment – minimizing surprises and project downtime. • Pinnacle’s experience with a variety of chemical processes and the applicable code requirements allows us to accurately define the necessary procedures, design the proper facilities and controls, and train the inspectors. Industrial Division

31. Current Railroad Projects • ENVIRONMENTAL PERMITTING • Section 404 Permits for track bed stabilization SD • Regulatory review of drainage issues and track bed encroachment IA • StormwaterPermitting MN • Waste management survey and permitting SD • Environmental review/facility siting, ND • Wetlands encroachment assessment MN, NE

32. Environmental Engineering • Stormwatermanagement system upgrade round house facility SD • Wastewater treatment system review and upgrade round house facility SD • Fueling system upgrade round house facility SD • River Bank Stabilization MN

33. Environmental Investigation • Phase I/II SD, MN and IA • Regulatory Representation MN, SD, ND, NE and IA

34. 11541 95th Avenue North Maple Grove, MN 55369 Phone: (763) 315-4501 Fax: (763) 315-4507 www.pineng.com Jim Holland P.E./CEO 612-669-5713 24Hour Emergency Response 866-658-8883