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RGVSG RENEWABLE ENERGY PROJECT FACT SHEET COMMUNITY OUTREACH PROGRAM

RGVSG RENEWABLE ENERGY PROJECT FACT SHEET COMMUNITY OUTREACH PROGRAM. RGVSG RENEWABLE ENERGY PROJECT FACT SHEET COMMUNITY OUTREACH PROGRAM.

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RGVSG RENEWABLE ENERGY PROJECT FACT SHEET COMMUNITY OUTREACH PROGRAM

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  1. RGVSG RENEWABLE ENERGY PROJECTFACT SHEETCOMMUNITY OUTREACH PROGRAM

  2. RGVSG RENEWABLE ENERGY PROJECTFACT SHEETCOMMUNITY OUTREACH PROGRAM • The RGVSG propose to construct a $23.8 million Clean Energy and Air Project through the construction of a Bagasse (cane stalk) Handling System and the installation of a new High-Efficiency Boiler and Turbo-Generator. • The proposed Project may be financed up to 50% of the Project Costs by the North American Development Bank (NADB). The remaining project costs will Vbe financed through a combination of the CoBank loans and RGSG equity. NADB has hired Pollutech International for technical review of the Project. • Prior to approval by NADB for financing, the Border Environment Cooperation Commission (BECC) must certify the Project in accordance with the following criteria: BECC CRITERIACOMPLIANCE Alternative Analysis  International Treaties and Agreements  Human Health and Environment  Compliance with State and Federal Regulations  Environmental Impact Assessment  Technical Feasibility  Appropriate Technology  Operation and Maintenance Plan  Design Regulations and Standards  Financial Feasibility  Community Participation Plan 

  3. RGVSG RENEWABLE ENERGY PROJECTFACT SHEETCOMMUNITY OUTREACH PROGRAM • The RGVSG Cooperative has a membership of 127 sugar growers and is the only cane sugar mill in the State of Texas • The RGVSG members actively farm up to 47,000 acres of sugar cane (3% of the arable land in RGV) yet provides almost 12% of the GDP in the RGV ($75M/Yr) • The proposed project includes… - conversion of all bagasse conveyors to fully automated belt conveyors - expansion and upgrade of the bagasse storage building - conversion of the boiler building to handle the modified bagasse conveyor system - installation of a new high efficiency boiler - new condensate storage tank - rebuilt 6,000 KW turbine generator • Project Benefits include: - Reduction in use of fossil fuels through the implementation of a renewable energy source through production of 11 MW leaving 5 MW for sale - Eliminates the need for purchase of 1.7 MW of outside energy that will be available for use by others - A 42% reduction in total mass of air pollutants - Increased level of service to RGVSG members

  4. RGVSG RENEWABLE ENERGY PROJECTFACT SHEETCOMMUNITY OUTREACH PROGRAM • Project Costs and a Brief Financial Analysis are shown in the table below. • The RGVSG expect to receive the draft permit from the TCEQ for the Mill Operations – issuance of final permit within 60 days after public comment period (Consolidated Permit No. 114) • The RGVSG is defined as a “major stationary source” under the Federal Clean Air Act • The RGVSG also has a Cane Burning Permit

  5. RGVSG RENEWABLE ENERGY PROJECTFACT SHEETCOMMUNITY OUTREACH PROGRAM • RGVSG under their current Air Quality Permit is allowed the following: - 2,490.4 tpy CO - 0.54 tpy SO2 - 233.2 tpy Nox - 222.08 tpy CO - 443.88 tpy VOC • As a result of the above-listed permit loadings, the RGVSG Mill is subject to PSD Regulations (Prevention of Significant Deterioration) thus must conduct analysis of BACT and these findings are listed below: - Growth Analysis – No additional air emissions from off-site growth - Air Quality Impact Analysis – modeling analysis adequately evaluates the total ground level concentrations of NO2 from improvements - Soils/Vegetation Analysis – the projected NO2 concentrations are below the standards and significant level thus no adverse impact - Visibility Impairment Analysis – plant is located in sparsely populated area with no scenic vistas or airports thus no impairment - Area Impacts – the plant is located 1,110 km from the closest Class 1 Area (Big Bend) thus no impact (>100 km separation)

  6. RGVSG RENEWABLE ENERGY PROJECTFACT SHEETCOMMUNITY OUTREACH PROGRAM • PROJECTED EMISSIONS are compared to existing in the table below… 1 – Actual reported emissions based on stack testing of October 2001 2 – Projections from Pollutech Analysis – Boilers #1 to #4 at 34% and new Boiler at 90%

  7. RGVSG RENEWABLE ENERGY PROJECTFACT SHEETCOMMUNITY OUTREACH PROGRAM • TC&B has provided an environmental assessment of the project in support of the Step 2 Report • These findings are summarized below: - Air Quality impacts are significantly reduced - Project promotes the use of renewable energy sources - Project reduces reliance on fossil fuels - There are no water/wastewater issues, Plant is effectively Zero Discharge although a Discharge Permit is in effect • RGVSG has a Stormwater Pollution Prevention Plan with proactive monitoring • Cumulative Impacts are positive to the environment • Positive socioeconomic impact through short-term impacts due to construction and long-term due to increased sustainability and efficiency • RGVSG is proactive towards environment as evidenced by P2 Site Assistance Visit/Small Business Compliance Audit/TCEQ Pilot EMS Program

  8. RGVSG RENEWABLE ENERGY PROJECTFACT SHEETCOMMUNITY OUTREACH PROGRAM • Project approval by BECC scheduled for March 27, 2003 • Completion of PPA and Loan Closings in late 2003/early 2004 • Completion of Bagasse Handling Facilities in 2004 • Completion of Boiler/Generator Facilities by April 2005 (12 months lag time from order to delivery of boiler) • The RGVSG will hold two public meetings on January 23, 2003 and February 3, 2003 at the offices of the RGVSG at 6:00 PM. The public is welcome to attend and if you cannot attend one of the meetings, please submit written comments, letters of support or non-support to the following address: Rio Grande Valley Sugar Growers, Inc. P.O. Box 459 Santa Rosa, Texas 78593 Attention: Jack Nelson, President • Comments will be accepted up to February 3, 2003

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