1.0 Executive Summary Fallbrook Renewable Energy Facility ... · Green buildings to the left are the “greenhouse” cooling system depiction, and th e main energy facility is shown

1.0 Executive Summary

December 2010 FREF Energy Project1-1

1.0 Executive SummaryTitle 20, Appendix B, (a) (1) Project Overview

Fallbrook Renewable Energy Facility(FREF)

1.0 PROJECT DESCRIPTIONTitle 20, Appendix B, (a) (1) (A)

The Fallbrook Renewable Energy Facility (FREF) is a multiple purpose energy facility convertingbiomass materials that would normally go into landfills, into thermal and electrical energy with an ultralow emissions process. High reliability and low emissions are achieved by using multiple combustionunits, boilers, dust filters, wet and dry scrubbing units, and low temperature catalytic reduction units(converters) for reduction of Carbon Monoxide and NOx compounds.

This photo is an example of how the new Energy Facility concept would look when completed.

The facility is designed to export to the grid, approximately 54 MW on a continuous basis afterconsideration of internal loads. Development of the Project will be in two phases, Phase 1 will be 60MW installed electrical generation capacity consisting of two 30 MW steam turbines being driven bysteam from twelve (12) water-tube boilers being directly heated by twenty -four (24) individualcombustion units.

Phase 2, would be to add a third 30 MW turbine in the future as load needs of the 69 KV circuitbetween the Via Monserate and Pala substations increase over time as part of an amendment of theAFC permit at some time in the future. The 69 KV local distribution circuit is approximately one milefrom the Project site, located on the Pankey Ranch, due east of the intersection of Inters tate 15 andHighway 76 in the Pala Mesa Valley, which is in the greater Fallbrook planning area in North SanDiego County.



This photo shows the Project location in reference to the 69 KV circuit and Pala substation.

This artist rendition of the FREF Facility Main Lobby .



1.2 SITE DESCRIPTION AND AGRICULTURAL SETTINGTitle 20, Appendix B, (a)(1)(B)

The FREF Project is proposed to be located on approximately 80 acres of a old citrus orchard that hasreached the end of its production life and is sched uled to be removed for development if the proposedpower plant is not constructed on the site. Assessor’s Office parcel maps identify the two parcels to beused for the project site. These map sheet numbers are 125 -06 sheet 2, and 125-06 sheet 3.



Title 20, Appendix B, (a)(1)(CThe location of the project site is shown below:





Title 20, Appendix B, (a)(1)(D)CURRENT VISUAL APPEARANCE OF SITE AND ADJACENT PARCELS



North End of Site facing EAST in Fall of 2004

South End of Site Facing EAST in Fall of 2004



LOCATION OF ENERGY FACILITY ON PARCELS



LOCATION OF ENERGY FACILITY INTERCONNECTION ON PARCELS

Substation



BUILDING DESIGN AND FACILITY LAYOUT ON PARCELS



ARTIST RENDITION OF FACILITY LAYOUT ON PARCELS

Site viewed from the Northeast looking Southwest from Rosemary’s Mountain

Green buildings to the left are the “greenhouse” cooling system depiction, and th e main energy facilityis shown in the center of the site. The small red structures at the front edge of the site represent theSDG&E substation. Existing power poles are on the site exiting the location along side the road andbridge access for interconnection to the 69KV circuit, which is behind this slide’s vantage point.

Vehicle access to the facility is an existing Arizona crossing over the San Luis Rey River in from StateHighway 76 on the north face of the site, with secondary access from Shearer C rossing to the west.

Viewed from above the Interstate 15 corridor looking Southeast



1.3 ENVIRONMENTAL INFORMATION1.3.1 Contents of this AFC

1.3.2 Air Quality

The FREF project is not classified as a major source (>100 tons per year) of nitrogen oxides(NOx), carbon monoxide (CO), and particulate matter (PM10 or PM2.5). The FREF projectdoes not require air emissions offset credits (ERC’s) and stays below SDAPCD minimumregulatory threshold levels of 50 tons per year of nitrogen oxides (NOx), carbon monoxide(CO), and particulate matter (PM10 or PM2.5).

The project will set new standards for Best Available Control Technology (BACT) to controlair emissions to levels previously not attained by a biomass type facility setting a new standardfor “ultra-low” emissions.

Emissions sources during project construction will consist of exhaust from heavy equipmentand fugitive dust from disturbed areas. Control measures during construction will includeapplication of water to control dust, and measures that minimize exhaust emissions will be usedto the extent practical.

1.3.3 Biological Resources

In accordance with CEC guidelines, biological surveys were conducted of the FREF site andthe surrounding areas. In addition to the general vegetation and wildlife surveys, pro tocol-levelsurveys were conducted for a number of special -status species.

The river channel between the banks of the San Luis Rey at the Project site is consideredpotential habitat for several animal species. The Arroyo Southwestern toad, Least Bell’ s Verio,and the California Gnatcatcher, all Federally listed endangered species are known to be withinseveral miles of the site and prefer this river -bank habitat.

The San Luis Rey River from Lake Henshaw out to Oceanside is a corridor for many specie s ofanimals to travel from inland areas out to Coastal areas in and around Camp Pendleton wherethe U.S. Marine Corps. does an exceptional job of maintaining, and preserving large tracks ofcoastal habitat.

No special-status animal, or plant species were found on the FREF project site, in the riverchannel or on easements to the site during the environmental scans of the site. T he Project sitehas an existing Arizona crossing of the river channel with an existing exemption from theArmy Corp of Engineers, the potential habitat in the river channel should not be t hreatened bythe project construction or operation activities. The FREF Facility design requirements weredeveloped specifically not to impact this important wildlife corridor.

The FREF Project proposes to construct a separate facility near the Project site, for Endangeredand Threatened Species breeding and release efforts in lieu of traditional mitigation landacquisition methods. Envirepel Energy Inc. has participated in several environmenta l reviewsin the Project evaluation radius area (6 miles), including the Orange Grove Energy Project, and



has concluded that simple land mitigation for environmental impacts is not feasible, due to lackof available mitigation land. Envirepel Energy proposes that the only other viable option is tobreed and release threatened and endangered species in the subject study radius of 6 miles fromthe Project site. This effort would be done in concert with State and Federal Agencies as it isdesigned to dovetail into the Multiple Species Conservation Plan areas near the proposedProject site.

1.3.4 Water Resources

The FREF project is a zero waste and zero discharge project. Part of the Facility design is torecycle all resources, including water. County permitting requirements demand use of localwater supplies for daily and emergency uses, that the FREF Project will conserve water byutilizing on site water resources from shallow wells located on site. The Facility emissionsscrubbing equipment reclaims water fro m the feedstock as a hydrogen source for post -combustion refining and reforming of Carbon Dioxide into petroleum feed stocks, but hassufficient capacity to provide all the water needs to the Project as well as the proposed bio-fuelhydro-cracking. Municipal water supplies are not available to the site, either for drinking wateror reclaimed water so unique equipment designs have been utilized to adapt to these realities .The FREF project incorporates above ground conventional heat exchangers to cool the steamturbine assemblies used to produce electricity. This waste heat is used to heat agricultural usegreen houses and other structures in a closed loop fashion to avoid evaporation losses. TheProject does not use traditional above ground evaporatory cooling equipment. Additional wateruses on site include drinking, facility maintenance, landscape irrigation, fire emergency, boilermake-up water and emissions scrubbing equipment.

The project will not result in any significant adverse impacts with rega rd to storm water runoffor other local water resource issues , as capture basins are part of the site plan. However, in thefuture the Project site may be requested by the local municipal water district to provide servicesto the District.

Storm water Pollution Prevention Plan (SWPPP), Best Management Practices (BMP’s), anddrainage, erosion, and sediment control measures will be implemented to prevent surface waterimpacts during project construction and operation.

1.3.5 Geologic Resources and Hazards

The FREF project will not adversely affect geologic resources of recreational, commercial, orscientific value. The facilities will be designed in conformance with Uniform Building Code(UBC) criteria for Seismic Zone 4. The power plant site and roads are not located near anyknown faults, rupture zones, landslide areas, subsidence areas, or other geologic hazards. Thesurface and subsurface geologic units are unique, and the potential for encountering rareminerals is minimal.

1.3.6 Agriculture and Soils

The unique FREF project approach will not cause significant adverse overall impacts toproduction agriculture or soils, however the project’s recirulatory cooling system may increasethe production levels of the existing orchard. The power plant site currently is partly disturbedand undeveloped. The east half of the project site (citrus grove) is considered Unique



Farmland, and may be considered Prime Farmland or Farmland of Statewide Importance. Theproject will remove approximately ten acres of older citrus t rees for the main facility and roads,but also is replanting the balance of the site with younger trees and ornamentals (endangeredrose garden) that will continue to remain in production agriculture for the life cycle of theproject.

During excavations (e.g. foundations and utilities) and finish grading for the power plant, sitesoils may be susceptible to erosion. Given the unique nature of the site (e.g. sand and a highlevel water table) Erosion control plans and Storm water Pollution Prevention Pla ns will beprepared prior to construction and implemented during and after construction. Constructionactivities will be in conformance with all applicable regulatory requirements and sound,conservative construction industry practices.

1.3.7 Land Use

The FREF project will be located in a citrus grove south of the San Luis Rey River,approximately one mile east of Interstate 15. The County of San Diego classifies the site at thePankey Ranch as an allowed use for a Renewable Energy Facility as the following : “This227.23-acre site is zoned (A70) Limited Agriculture and (A72) General Agriculture. It has aGeneral Plan Land Use Designation of (18) Multiple Rural Use and (24) Impact Sensitive. TheCounty of San Diego classifies the proposed use, a renewable ene rgy facility, as Major ImpactUtilities and Facilities. This use is allowed in the aforementioned Zoning and General Plancategories with approval of a Major Use Permit.”

The alternate location proposed on the Gregory Canyon site shares the same base zoni ng as thePankey Ranch, a recently completed EIR of the site, easier road and substation access, andprovides for additional of 120 MW of natural gas fired generation that could be developed as afuture phase of the project.

1.3.8 Socioeconomics

The original SDG&E Power Purchase Agreement with Envirepel Energy was a Grid Reliabilitycontract, and a renewable energy contract. The 69 KV circuit between the Via Monserate andPala substations is in a critical load state, for it supplies most of the electrical nee ds of northOceanside, Camp Pendleton, Fallbrook, Bonsall, Pala Mesa, Pala, Pauma Valley, and LakeHenshaw before it goes out towards the desert areas. The SDG&E system impact studydetermined that this circuit was capable of taking an additional 66 MW of energy with nosignificant system upgrades required. The simple voltage support to this circuit from theProject will provide lower line losses to deliver energy to these areas, which should directlybenefit all electrical customers in the area to some d egree.

Construction and operation of the FREF project will have a positive impact on fiscal resourcesin the region. The project will bring sales tax and property tax to the County of San Diego, aswell as construction payrolls, operations payrolls, and purchases of materials and supplies fromlocal area businesses. On site project construction is expected to require 9 months forcompletion and will provide short -term job opportunities.



Given the large construction workforce included among San Diego Cou nty’s population ofalmost 3 million, project construction needs will be filled mostly by San Diego Countyworkers, with only a small percentage of specialized labor coming from outside of the County.The operations workforce of about 60 full -time personnel will not cause population growth thatcould adversely impact local schools or law enforcement, fire, emergency, medical, or utilityservices.

The Envirepel Energy Inc. (EEI) business plan that gave birth to the FREF facility provides forafter tax revenues from the operation of the facility to be re -invested into the agriculturalcommunity of North San Diego County . This intentional design effort in the Project shouldprovide a much needed injection of capital to the local agricultural businesses, infrastructureneeds of the local school districts , while providing a base for long term environmentalmitigation via a breed and release program to be developed in parallel to the project . The long-term impacts of this business plan will be to slow high -density housing development in theregion to a pace where infrastructure can keep up, provide a viable mechanism to replace lostbreeding capacity to the local endangered species, ease traffic issues, and stabilize localagricultural markets.

1.3.9 Noise

Given the agricultural setting of the project site at the foot of a mountain, with the retention ofthe citrus orchards between the site and the roadway system, project noise during constructionand operation of the facility will not cause significant adverse imp acts. In accordance to CECguidelines noise level studies were conducted at five locations on the project site to documentexisting noise levels, and noise attenuation due to the abundance of vegetation on the site.

1.3.10 Visual Resources

Impacts from the FREF project on visual resources are expected to be less than significant.The proposed plant site on the Pankey Ranch is protected by hillsides extending well above theproject site to the south and west, and blocked by citrus groves to the north and east. Thisterrain will provide effective visual screening so that the plant will most likely not be visiblefrom outside the project boundaries on local roads.

The project site is located in an area of existing agricultural zones where the topography of thesite does not allow for direct viewing of the FREF project site, unless the vantage point isabove the site on the slopes of the mountain south of the project, which are natural habitat areasand not suitable for development, or directly north of the site o n a mountain face, also notsuitable for development.

1.3.11 Traffic and Transportation

Construction of the FREF project will add a moderate amount of traffic during the peakconstruction period to the Hwy 76 corridor east of Interstate 15. However, the increa se intraffic will be temporary and will not cause significant adverse impacts on traffic volume andflow conditions on affected roadways.

Long term traffic associated with operation of the FREF project includes the operationsworkforce, delivery of hazardous and non-hazardous materials, hauling of wastes generated



during operations, but the main traffic flow to and from the site will be fuel supply trucksbringing the biomass fuels to the site. The small traffic volumes from the workforce anddeliveries combined with the fuel supply traffic, still is less than one (1) percent of the existingtraffic volume on Hwy 76, which indicates that the project will create minimal traffic impacts.

1.3.12 Hazardous Materials Handling

The FREF project will implement acciden t prevention and mitigation measures regarding theuse and storage of hazardous materials. These measure include risk management plans, hazardassessments, release prevention programs, emergency response programs, process managementsystems, employee training, and adherence to sound design standards and operating procedures.

Hazardous materials that will be used and stored onsite during operation of the power plantinclude various water treatment and cleaning chemicals, and dry granular urea for NOx con troland fuel stability. With implementation of planned mitigation measures, no significant impactsare expected as a result of the FREF project.

1.3.13 Waste Management

Wastes generated by the FREF project during construction and operation include non -hazardous solid and liquid wastes (e.g. scrap metal, concrete, wood waste), as well as smallquantities of hazardous solid and liquid wastes (e.g. spent NOx catalyst cartridges, wastelubrication grease and lube oil). Recycling will be implemented where practica ble.Appropriate procedures and personnel training will ensure that non -hazardous and hazardouswastes are managed to prevent significant adverse impacts to the environment or toworker/public health and safety.

1.3.14 Worker Safety

FREF project construction, operation, and maintenance activities may expose workers tophysical and chemical hazards. Worker exposure to these hazards will be minimized throughadherence to appropriate engineering design criteria, adherence to sound construction andoperation practices, implementation of appropriate safety and administrative procedures, use ofpersonal protective equipment, and compliance with applicable health and safety regulations.

1.3.15 Public Health

Neither construction nor operation of the FREF Project is expecte d to pose significant risks topublic health, and no significant cumulative health risks are expected. Construction related airemissions will be temporary and localized. The estimated cancer risk from diesel particulateemissions during construction for the maximum exposed resident, for the maximum exposedworker in the nearest structure to the FREF site, and at the FREF project property line, all arebelow the California Air Resources Board (ARB) and San Diego Air Pollution District (APCD)significance level of 10-in-one-million.

1.3.16 Cultural Resources



Literature, archival reviews, a recent County sponsored EIR, and site surveys indicate that thereis minimal potential for impacts on cultural resources as a result of FREF Project efforts. Thereis one known cultural artifact site within one mile of the FREF site, on the north side of the SanLuis Rey River from the Project.

1.3.17 Paleontological Resources

Literature, archival reviews, a recent County sponsored EIR, site soil conditions and sitesurveys indicate that there is minimal potential for impacts on paleontological resources as aresult of FREF Project efforts. There is one known paleontological site within one mile of theFREF site, on the north side of the San Luis Rey River from the Project.

1.3.18 Special Considerations

There are some very unique technical and environmental features to the Facility design thatwere intended to address the environmental and land use concerns normally voiced when thetopic of permitting an Thermal Power Plant is d iscussed. This is underscored for the locationof the FREF project on agricultural land, supporting an electrical circuit in a very rural area,where there are no imported or reclaimed water supplies to the site other than ground water, nosewer services, no local governmental oversight, and a long history of County neglect ofinfrastructure needs and environmental concerns.

In context with the other developments proposed for the immediate area of the project site(there are 7 other major projects; three high density housing developments, a sewer plant, arock quarry, Orange Grove Energy, and a proposed class III landfill), the Fallbrook RenewableEnergy Facility may actually become the environmental watchdog in the area for it will be theentity most environmentally impacted by the development and activity of other projectdevelopments under County jurisdiction. This issue of “reverse mitigation” is significant as wecould not find any prior history of a solid fuel power plant being clean enough to be im pactedby the industrial, and residential activities of others.

Envirepel Energy Inc. believes that the combination of the project being an “allowed use”under current zoning, integrated with production agriculture, while staying below the minimumsignificance thresholds of all environmental concerns, provides a unique opportunity for aunincorporated area of San Diego County to be protected from over-development by theCounty of San Diego. It is of significance to note that many staff members of Envirepe lEnergy Inc. live within the 6 mile study radius for this project, it is, literally, in our own backyard.

The AFC permitting process and environmental review requirements under CCR Title 20,Appendix B(3) “Land Use”, has beneficial environmental impacts for the Bonsall, Fallbrook,Pala Mesa valley, and Pala Valley planning group areas, residents, and native wildlife . We donot believe that a Project of this type, solid fuel, has ever been presented to the State ofCalifornia that has the depth and bread th of sustainable practices that the Fallbrook RenewableEnergy Facility proposes as part of its basic operating permit. I n light of these statementsEnvirepel Energy Inc. has spent significant effort in this AFC permit to correctly define eachissue, technical and environmental, for Staff review.



Envirepel hopes to have met State goals for a viable, low cost, and reliable Renewable EnergyFacility with this facility design, which can be adapted for many geographic regions (urban andrural) not normally suited for energy generation and may be the start of a viable distributedgeneration concept for renewable energy facilities, and selected urban waste disposal.



1.4 PROJECT SCHEDULE HISTORY AND MILESTONES

Title 20, Appendix B, (a)(2)(A)Major Project Schedule History and Milestones:

Item Date

Award of first SDG&E Contract October, 2003PUC Approval of first Contract June, 2004Broker/dealer engaged to raise capital for Envirepel Energy Inc. June 2004Original CAISO application August, 2004First Round Company financing by selling equity September, 2004Payment for Interconnect Studies December, 2004Interconnect Studies by SDG&E January, 2005Engineering Development and Design completion August, 2005Civil Engineering and site design completion August, 2005Preliminary Site Ground work for Prototype Unit September 2005Political Challenge by County Supervisor and Housing Developer December 2005SDG&E Reliability PPA cancellation March, 2006Prototype Project moved to Vista CA as result of County Supervisor June 2006Prototype Facility Construction start in Vista, CA August 2006Prototype Facility Emissions Research Facility online date March 2007Prototype Facility Emissions Test Program, Fuel qualifications March 2007 – Dec 2008Prototype Commercial Unit (2.5MW) Authority to Construct awarded June 2008Hostile Take Over attempt started by Broker/Dealer to control of EEI December 2008 – Dec 2010Prototype Commercial Unit (2 .5 MW) pre-capacity testing start February 2009Prototype Facility shut down due to litigation from Broker/Dealer June 2009Prototype Facility & Commercial Unit dismantled and moved June 2010 - August 2010Prototype Facility Emissions Research Facility re -constructed in Santee Sept 2010 – August 2011Prototype Commercial Unit (2.5 MW) reconstructed in Santee Sept 2010 – December 2011Amended CAISO application for FREF Project November 2011Long Term PPA engagement for Prototype Commercial Unit December 2011AFC Submission to CEC December 2011Prototype Commercial Unit Start -up and Capacity testing January 2012 – March 2012Tax allocation filing for Bond financin g for FREF Project April 2012Data Adequacy Estimate July 2012Long Term PPA engagement for FREF P roject December 2012Equipment procurement initiation June 2013Project Financing and Fuel Supply agreements signed June 2013EPC Contract award June 2013AFC estimated award date by CEC June 2013Construction Start Date September 2013Equipment installation Start Date March 2014First full scale capacity testing June 2014Estimated On line operation date September 2014



Title 20, Appendix B, (a)(3)(A), (a)(3)(B), and (a)(3)(C)Project Ownership

The Project owner and applicant submitting this Application for Certification (AFC) is EnvirepelEnergy Inc., a California Corporation. The Project Company is Pala Mesa Ag Power LLC, aCalifornia LLC with Envirepel Energy Inc. as the primary equit y member. The Fallbrook RenewableEnergy Facility is among those resources that have been identified as a Renewable Portfolio Standardqualified Facility as part of San Diego Gas and Electric’s (SDG&E) twenty percent RPS requirement.

The proposed electric transmission facilities are to be owned and operated by SDG&E including the onsite substation and switchyard as specified in the Original SDG&E Power Purchase Agreement (PPA)in Appendix ‘S’.

There is no legal relationship between Envirepel Energy Inc., a California Corporation, Pala Mesa AgPower LLC, a California LLC, and SDG&E, a Sempra Utilities Company.

Documents

1.0 Executive Summary Fallbrook Renewable Energy Facility ... · Green buildings to the left are the “greenhouse” cooling system depiction, and th e main energy facility is shown