RGVSG RENEWABLE ENERGY PROJECT FACT SHEET COMMUNITY OUTREACH PROGRAM

RGVSG RENEWABLE ENERGY PROJECT

FACT SHEET

COMMUNITY OUTREACH PROGRAM


FACT SHEET


• 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 CRITERIA COMPLIANCE

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


FACT SHEET


• 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


FACT SHEET


• 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

Process Upgrade

(10,000 tcd)

Capital Cost Annual Cost Savings

Payback Period

(years)

Bagasse Handling $6,442,532 $247,478 26.0

Boiler Upgrades

And Turbine Generator $17,384,405 $1,853,120 9.4

Total Upgrade $23,826,937 $2,100,598 11.3


FACT SHEET


• 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)


FACT SHEET


• PROJECTED EMISSIONS are compared to existing in the table below…

1 – Actual reported emissions based on stack testing of October 20012 – Projections from Pollutech Analysis – Boilers #1 to #4 at 34% and

new Boiler at 90%

Current Emission

Rate (tpy)1

Old Boilers at 34% Cap

(tpy)

New Boiler at 90% Cap

(tpy)

Total Plant Emissions2

Emissions Change

(tpy)

Emissions Change

(%)

CO 2458 1091 229 1320 -1138 -46.3

SOx 2.1 0.9 0.01 0.91 -1.2 -55.3

Nox 482 214 225 439 -43 -9.0

PM10 385 171 27 198 -187 -48.6

VOC 157 70 9 79 -78 -50.0

Total 3484 1547 489 2036 -1448 -41.6


FACT SHEET


• 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


FACT SHEET


• 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

Documents

RGVSG RENEWABLE ENERGY PROJECT FACT SHEET COMMUNITY OUTREACH PROGRAM