Presentation of DRAFT Economic and GHG Analyses for Energy Compost Feasibility Study Public Meeting Palo Alto, CA February 23,

Project Team Alternative Resources, Inc. Ascent Environmental Douglas Environmental Facility Builders & Erectors 2

Projections Waste Quantities (Tons/Year) FoodYardBiosolidsTotal First Year: ,00021,00027,00062,000 Last Year: ,00021,00034,00074,000 3

Study Alternatives Alternative 1: In-City Options at Landfill Site FoodYardBiosolids Case 1aDry AD Dry AD (Separate Cell) Case 1bDry AD Wet AD at Landfill Case 1cDry AD Wet AD at RWQCP Case 1dDry AD Continue Incineration at RWQCP Case 1d No Biosolids Dry AD 4

Study Alternatives (continued) Alternative 2: Export Alternative 3: Export FoodYardBiosolids With BiosolidsSan Jose AD (Zanker) Gilroy Compost (ZBEST) Continue Incineration at RWQCP No BiosolidsSan Jose AD (Zanker) Gilroy Compost (ZBEST) FoodYardBiosolids With BiosolidsGilroy Compost (ZBEST) Continue Incineration at RWQCP No BiosolidsGilroy Compost (ZBEST) 5

AD Energy Options Electricity Pipeline Gas 6

Models GHG – Compares CO 2-e Emissions on Metric Tons/Year Basis Economic – Compares costs on $/ton basis and NPV basis – Includes Sensitivity Analyses Landfill gas for electricity production Grants Public financing 7

RFI Approach Market-based approach for input information – Provided representative cost and GHG information – Provided comments regarding technical approach Supplemented as necessary 8

RFI Respondents TechnologyRespondent Axpo-KompogasST Engineering Group BEKON Energy Technologies Mustang Renewable Power Ventures Bioferm Energy SystemsMcGill Compost DRANCOOrganic Waste Systems GICON Bioenergie GmbHHarvest Power Strabag-Linde KCAEcocorp ValorgaUrbaser 9

GHG Model Results (MT CO 2-e /Year) 10 Alternative 1: In-City Options at Landfill Site ElectricityPipeline Gas Case 1a (All Dry AD - Food, Yard, Biosolids) 11,53311,280 Case 1b (Dry AD Food, Yard; Wet AD Biosolids- at Landfill) 14,22719,188 Case 1c (Dry AD Food, Yard; West AD Biosolids at RWQCP) 14,20019,161 Case 1d (Dry AD, Food, Yard; Continue Incinerate Biosolids) 21,10623,929 Case 1d No Biosolids5,8556,072 Alternative 2: Export ElectricityPipeline Gas Export Food to San Jose, Yard to Gilroy; Continue Incinerate Biosolids 23,32926,194 Food, Yard, same as above; No Biosolids8,0788,165 Alternative 3: Export ElectricityPipeline Gas Export Food and Yard to Gilroy; Continue Incinerate Biosolids 22,716 Food, Yard, same as above; No Biosolids7,465

Simplified Summary Economic Analysis 11 Base Case (Electricity) 1 st Year (2015) Tip Fee ($/Ton) Alternative 1 (In-City)Low $High $ 1a (All Dry AD – Food, Yard, Biosolids) 112*353 1b (Dry AD – Food & Yard; Wet AD Biosolids at Landfill) c (Dry AD – Food & Yard; Wet AD Biosolids at RWQCP) d (Dry AD – Food & Yard; Continue Incinerate Biosolids) d (Dry AD – Food & Yard, No Biosolids) Alternative 2Low $High $ Export Food to San Jose, Yard to Gilroy; Continue Incinerate Biosolids 72 Same as above, but no Biosolids58 Alternative 3Low $High $ Export Food & Yard to Gilroy; Continue Incinerate Biosolids 68 Same as above, but no Biosolids52 * Cost uncertainty with dry AD biosolids

Simplified Economic Summary Sensitivity Cases (Electricity) 1 st Year Tip Fee (2015, $/Ton) (Low $ Range) Landfill Gas Grants (%) Public Own, Finance Alternative 1 (In-City) 1a (All Dry AD – Food, Yard, Biosolids) 110*48*55*62*81* 1b (Dry AD – Food & Yard; Wet AD Biosolids at landfill) c (Dry AD – Food & Yard; Wet AD Biosolids at RWQCP) d (Dry AD – Food & Yard; Continue Incinerate Biosolids) Alternative 2 (Export Food to San Jose, Yard to Gilroy; Continue Incinerate Biosolids) 72 Alternative 3 (Export Food & Yard to Gilroy; Continue Incinerate Biosolids) * Cost uncertainty with Dry AD Biosolids

Example AD Reference Facilities 13

Kompogas Plant, Zwolle (NL) 45,000 Tons/Year Biowaste; Natural Gas Use;

BEKON Plant Hille, Switzerland 44,000 TPY Biowaste; 1,000 kW Electricity; December

BIOFermTM Moosdorf, Germany 16 13,000 TPY; Municipal Organic Waste; Electricity January 2008

DRANCO Plant Terrassa, Spain 25,000 TPY Biowaste; Electricity December

DRANCO Plant Brecht, Belgium 20,000 TPY Biowaste (Brecht I); 50,000 TPY Biowaste (Brecht II); Electricity July 1992 – Brecht I January 2000 – Brecht II 18

Harvest Power Valorsul Facility, Lisbon 60,000 MT/Yr Source Separated Organic Waste; Electricity

Harvest Power Palo Alto Facility Concept Organic Waste Receiving Hall 2. Hydrolysis Percolator Loading Hall 3. Hydrolysis Percolators 4. Hydrolysate Buffer Tank 5. Methane Digesters 6. Digester Effluent Buffer Tank 7. HSAD Mechanical Room 8. Combined Heat and Power Units 9. uCASP Feedstock Mixing 10. Covered Aerated Static Pile (uCASP) 11. Ventilation System 12. HSAD and uCASP Biofilter 13. Screening, Curing, Finished Product

Strabag-Linde Lemgo, Germany 50,000 TPY Screened Organics from MSW, Yard Waste and Biosolids

Urbaser – Valorga Palo Alto Concept 22

Urbaser – Valorga Ecoparc II Barcelona, Spain 244,000 Mt/Yr MSW Electricity