RGVSG RENEWABLE ENERGY PROJECT FACT SHEET PUBLIC PARTICIPATION MEETING JANUARY 23, 2003 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 be 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 

RGVSG RENEWABLE ENERGY PROJECT FACT SHEET PUBLIC PARTICIPATION MEETING JANUARY 23, 2003 The RGVSG Cooperative has a membership of 127 sugar growers and is the only 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

RGVSG RENEWABLE ENERGY PROJECT FACT SHEET PUBLIC PARTICIPATION MEETING JANUARY 23, 2003 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 CostAnnual Cost SavingsPayback Period (years) Bagasse Handling$6,442,532$247, Boiler Upgrades And Turbine Generator$17,384,405$1,853, Total Upgrade$23,826,937$2,100,

RGVSG RENEWABLE ENERGY PROJECT FACT SHEET PUBLIC PARTICIPATION MEETING JANUARY 23, 2003 RGVSG under their current Air Quality Permit is allowed the following: -2,490.4 tpy CO tpy SO tpy No x tpy CO 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 NO 2 from improvements - Soils/Vegetation Analysis – the projected NO 2 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)

RGVSG RENEWABLE ENERGY PROJECT FACT SHEET PUBLIC PARTICIPATION MEETING JANUARY 23, 2003 PROJECTED EMISSIONS are compared to existing in the table below… 1 – Actual reported emissions based on stack testing of October – Projections from Pollutech Analysis – Boilers #1 to #4 at 34%, new boiler at 90% Current Emission Rate (tpy) 1 Old Boilers at 34% Cap (tpy) New Boiler at 90% Cap (tpy) Total Plant Emissions 2 Emissions Change (tpy) Emissions Change (%) CO SOx Nox PM VOC Total

RGVSG RENEWABLE ENERGY PROJECT FACT SHEET PUBLIC PARTICIPATION MEETING JANUARY 23, 2003 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

RGVSG RENEWABLE ENERGY PROJECT FACT SHEET PUBLIC PARTICIPATION MEETING JANUARY 23, 2003 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) If you do not wish to speak, written comments may be submitted to: Rio Grande Valley Sugar Growers, Inc. P.O. Box 459 Santa Rosa, Texas Attention: Jack Nelson, President Comments will be accepted up to February 3, 2003