BQ EnergyBQ Energy

Addressing Siting Challenges for SuccessfulEnergy Projects in the Northeast

BQ EnergyBQ Energy

Presented to:NEWMOA

Northeast States-EPA Workshop on Siting Renewable Energy Projects at Closed Solid Waste Landfills and

Contaminated SitesEnfield, CT

June 25, 2008

By:Josh BerkowBQ Energy

BQ EnergyBQ Energy

An Introduction To BQ Energy

Developer Of Wind & Other Clean Energy Plants

• Specialize in Working On “Brownfield” Industrial Sites

• Founded in 2003 by Senior Executives From theEnergy Industries

• Located in Patterson, NY.

• Developed a project near Buffalo, NY

• Development pipeline includes steel mills, oil refineries, chemical facilities, abandoned brownfields

• Work with local engineering, legal, printing ,and environmental firms as a normal practice

• www.bqenergy.com

BQ EnergyBQ EnergySteel Winds Project

Lackawanna, NY

• Makes and Sells Electric Power

• 8 Wind Turbine Project near Buffalo, NY

• Built on the Site of the former Bethlehem Steel Works

• Produces 20 Megawatts of Power (about 6,000 homes)

• First urban wind farm in the USA

• Renewable Wind Energy

• An outstanding environmental project; executed with cooperation from NYS DEC

BQ EnergyBQ EnergyNerefco Oil Refinery

Rotterdam, Netherlands

BQ EnergyBQ EnergyPROPOSED PROJECTFresh Kills LandfillStaten Island, NY

BQ EnergyBQ Energy

6

Target MarketsUS & Canada

• Steel Mills

• Oil Refineries

• Ports

• Chemical Plants

• Military Bases

• Mining

• Metals Processing

• Manufacturing

• Landfills

• Hazardous Waste Processing

What’s The Common Theme?

BQ EnergyBQ EnergySteps to Develop Wind Farms….

#1 Find Where its Windy#2 Find A Power Outlet#3 Find A Site That Can

be Permitted

BQ EnergyBQ EnergyWhat are the Typical Environmental Concerns?

•Noise

•Birds

•Safety

•Visual Impacts

•Airplane Obstruction

•Property Values

BQ EnergyBQ EnergyWhat are the Noise Issues????

Wind Turbines are not loud.

BQ EnergyBQ Energy

What are the Bird Issues????Birds fly into all tall structures,

including buildings, elevated highways, bridges, and wind turbines.

Wind Turbine Height: ~ 390 - 480 ft.

National average of 2 – 5 avian collisions per turbine per year

National Academy of Sciences estimates wind energy responsible for 0.003% of all human-related avian deaths

A 15 turbine project can anticipate 30 – 75 avian deaths per year

Estimated Annual Avian Impacts:•Cats: 1 Billion•Buildings: 100 Million•Vehicles: 60 Million•Turbines: 10,000

BQ EnergyBQ EnergyWhat are the Safety Issues????• Wind Turbines are Very Safe

• Can Locate Near Buildings, Parking, Transportation, Industrial Facilities

• Awareness of Ice on all Tall Structures

BQ EnergyBQ EnergyVisual Impacts ??

Nerefco Wind Farm, Rotterdam, NetherlandsDeveloper: Paul Curran, Texaco

BQ EnergyBQ EnergyVisual Impacts ??

Courtesy of: Paul Leuchner

BQ EnergyBQ EnergyVisual Impacts ??

Steel Winds, Lackawanna, NY

Developers: BQ Energy, UPC

BQ EnergyBQ Energy

Would You Rather Look at This???

BQ EnergyBQ EnergyWhy is the FAA Concerned??

•Structures higher than 200 feet may pose a collision hazard to aircraft

•Notice of Construction is filed with FAA

•Wind turbines are painted white and equipped with a slow-blinking obstruction light

•Meteorological towers are not required to file

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What is the Impact on Area Property Values??

• Limited documentation exists on effects of wind turbines on property values– Several major studies conducted– Results difficult to gauge– Studies focus only on impacts of wind turbines– Studies neglect other factors (recent wind development coincides a

bubble and collapse in the housing market)– Equal numbers of studies show either no impact or negative impact

• Property value impacts related to public perceptions of wind turbines– Negative attitudes towards wind energy

may lower property values– Negative perceptions of wind energy linked to

• Lack of control over project• A sense of being subjected to injustice

– A local stakeholder’s process can mitigate these concerns

BQ EnergyBQ EnergyProject Development Timeline: 2 - 3 year

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Identify & Assess Opportunity DefineThe Project Contract the Deal Construction Operations

1A 1B

Mostly Talk Initial Site Docs Met Tower Data Financing Contract for Safety Establish Reporting NeedsREC Survey Permit Roadmap Site Control Offtake Contracts Frequent Site Presence Establish Site ResponsibilitiesSite Visit Size Project Permit Applications REC Contracts Plan For Operations Continuous FeedbackPower Price Screen Initial Proforma Interconnect Applications Tax EquityWindScreen Identify Stakeholders Community Discussions EPC ContractsProspectus Drafted Feasibility Report Offtake Discussions Permits SecuredTest Strategic Fit Look for Key Drivers Proforma Work Interconnect Secured

Look for Key Risks Shareholders AgreementTurbine Downpayments

Engage Stakeholders at Every Step in the Process

Educate

Educate

Educate

BQ EnergyBQ EnergyStrategy on Existing Contamination

1- Lease land; don’t purchase

2- Secure Clear Indemnification from Site Owner

3- Secure Clear Indemnification from Regulators

4- Ensure that the wind project does not interfere with any site cleanup

5- Position turbines so that they are not likely to be in areas with known pollution

6- Design foundations to allow for variation in ground quality and composition

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What Can Regulators do to help site renewable energy facilities on Brownfields?

1- Help identify potential sites (eg. new EPA database)

2- There are typically three heavily impacted divisions in an environmental agency: remediation, permitting, and energy production/policy. These three need to have a common view on proposed projects.

3- Establish clear Brownfield Programs that offer release of liability to new users of land

4- Encourage (financially or otherwise) site owners to act on these properties quickly in any fashion that does not impinge on the ultimate cleanup. Site owners often fear doing anything that would result in a worse cleanup situation and often prefer to do nothing as a result.

BQ EnergyBQ Energy

What Can Regulators do to help site renewable energy facilities on Brownfields?

1- Help identify potential sites (eg. new EPA database)

2- Coordinated policy on proposed projects.

3- Establish clear Brownfield Programs that offer release of liability to new users of land

4- Encourage (financially or otherwise) near-term action.

BQ EnergyBQ EnergySiting Challenges for Energy Projects in the Northeast

QUESTIONS?

BQ Energy, llc20 Jon Barrett Rd.

Suite 2Patterson, NY 12563

(845) 228 – 3485www.bqenergy.com