Environmental, Engineering and Pre-Construction Cost Considerations for Wind Power Development Anntonette Alberti, JD Tetra Tech IPED Financing Wind Power July 25, 2007

Introduction to Tetra Tech 7500 employees and 250 offices nationwide Full service wind energy contractor Environmental Engineering Construction O&M Over 70 wind projects for about 30 clients across the US Our current projects range from: Drafting the American Wind Energy Association (AWEA) Environmental Siting Guide with Nixon Peabody Turnkey meteorology, engineering design and environmental permitting of a 300 to 500 MW facility on Lanai with AWS Civil construction of several New York State wind farms Offshore wind

Presentation Goals Provide an overview of the steps associated with developing a wind power project Identify aspects of development that can affect overall costs of construction

Anatomy of a Wind Project

Components of a Wind Project It is not just turbines. . . Temporary met towers Construction trailers and lay-down areas Concrete batch plant Construction spoil disposal sites Construction work areas around turbine foundations Access roads Public road improvements Electrical collection lines Transmission lines Switchyards, substations, point of interconnection stations Permanent met towers Restoration and mitigation projects Operations and maintenance building Visitor kiosk

Wind Meteorology costs: Wind Measurement Equipment and Installation Data Collection and Interpretation Meteorological Consultation and Advice

Transmission Transmission Costs: Development Electrical Engineering (What you need to get the right permits/land rights and get interconnection, not develop final construction drawings) Feasibility Study Conceptual collection system and high voltage interconnection design System Reliability Interconnection Study Utility Interconnection Fees and filings associated with interconnection Cost allocation for system upgrades Transmission legal Outside counsel for interconnection agreements, filings, FERC

Land Land costs: Costs of hired land men Landowner payments Hours and expenses Landowner payments Signing payments Met tower payments Option payments Lease conversion payments Neighbor agreement payments Land legal and title Outside counsel Title company ALTA Recording fees

Public and Governmental Relations Public and Governmental Relations Costs Local Office Staff Equipment Landowners and neighbors Newsletters Dinners Community Public Relations Mailings Ads Open houses Fairs and community events Charitable sponsorships Governmental Relations Lobbyists Public meeting support

Development Civil Engineering Costs for Development Civil Engineering (What you need to get the right permits/land rights, not develop final construction drawings): Conceptual Layout Constraint mapping Initial geotech (desktop?) Transportation study (identify routes, need for improvements to bridges, culverts, intersections, etc) Initial siting turbines, roads, collection, transmission, substation, construction work areas, etc Walk-overs

Development Civil Engineering Cont. Permitting Layout development (need coordination with electrical on collection system/high voltage portions of design) 2’ contours Initital horizontal alignment Geotechnical study Survey and Staking Engineering/environmental walk Landowner walk Agency walk as needed Finalize horizontal layout for permitting

Development Civil Engineering Cont. Engineering-heavy permits DOT permits for road improvements and cutting access into state roads Local permits for road improvements and cutting access into local roads NPDES (or state equivalent) NOI for construction with SWPPP and SPCCP NPDES (or equivalent) NOI for operation with SWPPP and SPCCP (this is important to consider during design because of potential need for secondary containment around transformers)

Environmental Studies and Permitting Environmental Studies and Permitting Costs: Consultants Permit applications and regulatory representation Avian and bat studies, reports, consultations Wetland studies, reports, permits, mitigation Wildlife and vegetation studies, reports, consultations, mitigation Agricultural protection consultation, mitigation Cultural and historical resource studies and consultations, mitigation Communications interference studies (including homeland security) Aviation interference studies Visual impact analysis Groundwater studies Socioeconomic studies as required Other studies as required EAs, DEISs. FEISs and/or equivalent reports and processes

Environmental Studies and Permitting Cont. Permitting fees Actual permit fees Agency collection agreements Permitting Legal Outside counsel

Preconstruction Preconstruction Costs: Negotiations with turbine and other equipment/service providers Finalize Turbine and Long-Lead-Time Item Procurement Final Construction Plans and Drawings Develop Environmental Construction Compliance Plan Secure Construction Owner-Representative Team Secure Construction Contractors Develop Mobilization Plan

Take Away Points Wind project development is highly iterative Change management in scope, schedule and budget is key Early engineering and constructability review can save tens of millions during construction Appropriate planning can vastly improve long term economics

Contacts Environmental and Engineering Anntonette Alberti, JD anntonette.alberti@tteci.com 518-488-8588 Charlie Karustis charlie.karustis@tteci.com 503-222-4536 Construction and Operations & Maintenance John Hueston john.hueston@tteci.com 678-983-0863