1. Biodiesel Production from Grease Waste February 3, 2011 IBR & Infrastructure Platform Tony Pack Eastern Municipal Water District

2. 2 Quad Chart Overview Project start date 1/5/2011 –Design of Full-Scale Processing Facility –Procurement of Equipment –Construction Project end date 7/07/2013 –Commissioning & Start-up –Full-scale Operation Percent complete 0% Design Consultant URS Engineering has been selected Project is on track with cost and schedule Project is scheduled to be complete on 7/07/2013 Total project funding –DOE share $250,000 –Non-Federal share $1,250,000 FY 10 – 0 FY 11 – $200,000 projected Timeline Budget Project Development EMWD engineers are the Project & Construction management EMWD engineers and O&M staff will commence start-up and commissioning O&M staff will maintain Operations Project Participants

3. Spend Plan 3

4. Project Overview The biggest technical hurdle to overcome is to successfully thicken a waste consisting of 95-97% water The project baseline (schedule, cost, scope) has not changed to date The anticipated commercial cost of production is $3.00/gallon 4

5. 5 Approach EMWD has retained a design engineering firm, URS, to design a restaurant grease trap waste purification process for production of biodiesel feedstock The design will produce competitive bid quality drawings to construct the facility Construction management will be performed by EMWD Engineering staff Construction will be performed by a competitively selected private contractor The grease trap purification facility will be located at one of EMWD’s sewage treatment plants

6. 6 Approach (cont’d) The grease trap purification facility will consist of receiving, screening, thickening, heating, centrifugation, storage and waste disposal Production of biodiesel will occur at a third party refinery

7. 7 Technical Accomplishments/ Progress/Results EMWD completed a successful full-scale pilot trial that resulted in production of 2,500 gallons of ASTM grade B100 biodiesel for use in its fleet vehicles EMWD effectively thickened restaurant grease trap waste from 3% solids to 30% solids utilizing conventional municipal sewage thickening equipment The 2,500 gallons of B100 was the result of processing 85,000 gallons of restaurant trap grease waste over a course of a 90-day full-scale pilot test The following 8 minute DVD illustrates the production of purified biodiesel feedstock from restaurant grease waste The attached process schematic defines the facility which will be designed and built

8. 8 Relevance Grease waste, which is basically restaurant wastewater, is disposed of in landfills at considerable expense and cost to the environment. In addition to removing a putrid waste product from the environment, producing biodiesel from grease waste results in a relatively environmentally friendly fuel that can be used as an alternative to petroleum diesel fuel Local and regional support for this project can be found with the grease trap pumpers and haulers as this project would reduce their transportation costs. EMWD’s biodiesel program would decrease the number of miles these trucks have to travel to dispose of the grease waste, reducing the amount of diesel necessary to transport the waste and reducing the greenhouse gas emissions from the trucks

9. 9 Relevance (cont’d) By reducing the trucking distance for disposal from 160 miles round trip to a landfill to 40 miles round trip to EMWD’s facility, another 48,000 gallons of diesel will be saved by the shorter hauling distance. This is in addition to the 200,000 gallons produced from the restaurant grease waste This process can be implemented at sewage treatment plants in many communities across the country

10. 10 Success Factors and Challenges Success Factors: ASTM grade B100 Biodiesel reliably produced from a putrid waste product currently being land filled Water and solids side streams reclaimed and reused by EMWD’s recycled water sales program Process utilizes primarily standard municipal sewage treatment equipment Challenges: Variability in recoverable biodiesel feedstock in truck loads from different restaurants

11. Benefits and Expected Outcomes Product Cost – $3.00/gallon ROI – 3.1% per year for 25 years Product Yield – 200,000 gallons B100 Biodiesel Water Use – 4.8 million gallons recovered per year and sold as recycled water translates to 24 gallons produced per gallon of fuel produced Energy Demand – 2Kwhr/gallon fuel Environmental Sustainability – 200,000 gallons of diesel and 4.8 million gallons of recycled water produced versus land filling as a waste 11

12. 12 Summary This process turns a waste product into biofuel and a water supply Process can be replicated at sewage treatment plants across the country EMWD staff performed the entire full-scale plant trial The 2,500 gallons of B100 Biodiesel produced is presently being blended and burned in the EMWD fleet