1. EnerTech Environmental, Inc. 2010. All rights reserved. EnerTech: Converting Biosolids into Renewable Fuel Air and Waste Management Association Fall Conference Atlanta, Georgia PROTECTING PUBLIC HEALTH AND THE ENVIRONMENT FOR GENERATIONS TO COME. October 7, 2010

2. 2EnerTech Environmental, Inc. 2010. All rights reserved. Contents Company Overview The SlurryCarb ® Process Rialto Facility Energy Advantage Carbon Benefits Regulatory Overview

3. 3EnerTech Environmental, Inc. 2010. All rights reserved. Company Overview Formed in 1992 Headquartered in Atlanta Proprietary and proven technology with three demonstration facilities Licensed technology to Mitsubishi for Asian market Operating first commercial facility in Rialto, Southern California Expanded to the UK market in August 2009

4. 4EnerTech Environmental, Inc. 2010. All rights reserved. The SlurryCarb ® Process AD = biogas

5. 5EnerTech Environmental, Inc. 2010. All rights reserved. Benefits of SlurryCarb ® Long-term Sustainable Solution for Biosolids Management –Typical contracts for 20 to 30 years (DBOO) Permanent Biosolids Recycling –Eliminates the need for land application & land filling Renewable energy production –Increased biogas yields enhance potential for on-site energy generation –Additional fiscal incentives (Carbon offsets) –eFuel used to replace solid fossil fuels Hedge Against Fuel Cost Risk –Utilizes significantly less energy than heat drying –Minimizes exposure to fuel cost volatility

6. 6EnerTech Environmental, Inc. 2010. All rights reserved. Price Stability; Reduced Operating Costs –Fixed long-term price Reduced CO 2 emissions –CO 2 emissions are lower than a similarly sized thermal drying facility –eFuel produced by a facility the size of Rialto offsets 80,000 tons of GHGs per year –Biogas used as a fuel on-site produce biogenic CO 2 emissions (instead of anthropogenic) Benefits of SlurryCarb ® (cont.)

7. 7EnerTech Environmental, Inc. 2010. All rights reserved. Benefits of SlurryCarb ® (cont.) – Net energy generation A SlurryCarb ® eFuel facility is a net generator of energy. In other words, eFuel contains significantly more energy than a facility consumes producing it, as the example energy profile demonstrates below. (1) 1 kWh = 3,413 Btu (2) Assumes 8,230 Btu/lb dry eFuel from undigested sludge (1) 400 WTPD at 24% solids = 96 dry tons (solids) + 304 tons H 2 O (2) 82 WTPD at 95% solids = 78 dry tons (solids) + 4 tons H 2 O (3) Only includes boiler (i.e. no burners associated with control equipment) (4) Correcting for efficiency of the motors; typical efficiency is 90%. Uncorrected electrical = 54 MWH Energy Consumed(MMBtu) Net natural gas441 Electric power (1) 205 Total Energy Consumed 646 Energy Produced(MMBtu) eFuel (2) 1,350 Net Energy704

8. 8EnerTech Environmental, Inc. 2010. All rights reserved. eFuel: Permanent Biosolids Recycling Heating value of 5,500-8,300 Btu/lb in dry form Can be utilized in multiple coal applications –Cement kiln –Gasifier –Coal-fired power station –Waste boiler – other boilers for power generation Minimizes fossil fuel consumption Certified as a renewable fuel in California Benefits of replacing coal with eFuel: –Costs less than coal –Reduces emissions of SO 2 –Reduces GHG emissions –Increases use of renewable energy

9. 9EnerTech Environmental, Inc. 2010. All rights reserved.

10. 10EnerTech Environmental, Inc. 2010. All rights reserved. EnerTech Environmental has constructed a biosolids-to-renewable fuel facility in Rialto, Southern California –Construction began: April 2007 –First truckload of biosolids processed: October 2008 At full capacity, the facility will generate over 60,000 tons of renewable fuel (eFuel) per year Use of eFuel in lieu of coal will offset over 80,000 tons of greenhouse gases Rialto SlurryCarb ® Facility Renewable Fuel from Biosolids

11. 11EnerTech Environmental, Inc. 2010. All rights reserved. The Rialto SlurryCarb™ Facility Biosolids from the region The Rialto Facility ~170 TPD eFuel to cement kiln Current stakeholders include five municipalities: LACSD208 wtpd OCSD225 wtpd City of Riverside150 wtpd City of San Bernardino75 wtpd City of Rialto 25 wtpd 683 wtpd

12. 12EnerTech Environmental, Inc. 2010. All rights reserved. Receiving Pit

13. 13EnerTech Environmental, Inc. 2010. All rights reserved. Biosolids Storage Silos April 2009

14. 14EnerTech Environmental, Inc. 2010. All rights reserved. SlurryCarb ® Area

15. 15EnerTech Environmental, Inc. 2010. All rights reserved. Dryer Area and eFuel Silo

16. 16EnerTech Environmental, Inc. 2010. All rights reserved. How Much Renewable Energy? The facility will generate over 60,000 tons of renewable eFuel annually That’s enough renewable eFuel to produce 792,000 mmBTU annually The average home in the United States annually consumes about 83 mmBTU of energy 1 If used to produce electricity, the Rialto Facility would generate enough energy to power around 9,500 homes per year There are approximately 25,000 households in the City of Rialto 2 Equivalent eFuel consumption would provide enough power for 38% of the city’s homes 1 US D EPARTMENT OF E NERGY 2 2000 C ENSUS

17. 17EnerTech Environmental, Inc. 2010. All rights reserved. Rialto’s Energy Advantage: Savings by Design Savings by Design (SbD) provides technical and financial resources to help commercial and industrial customers save energy and money when they design, expand, or change new or existing processes and facilities The five processes that were optimized at the Rialto facility include the heat transfer fluid system, anaerobic digester, heat exchanger, thermal oxidizer, and dryer

18. 18EnerTech Environmental, Inc. 2010. All rights reserved. Summary: Savings by Design Due to participation in the program, the Rialto SlurryCarb ® Facility is expected to save in excess of 3 million therms annually EnerTech was presented with an incentive check for $1M from SoCalGas for the energy savings it has received from participating in the program

19. 19EnerTech Environmental, Inc. 2010. All rights reserved. Rialto Life Cycle Analysis of GHG Emissions Producing and using eFuel as a coal substitute results in a net reduction of 101,600 tons per year CO 2 e vs. conventional drying and land application SlurryCarb to E-Fuel Coal Substitute Conventional Drying to Land Application

20. 20EnerTech Environmental, Inc. 2010. All rights reserved. Rialto Life Cycle Analysis of GHG Emissions (cont.) Key Assumptions 683 WTPD of 22.3% TS cake eFuel = 6,006 Btu/lb, Pellets = 6,506 Btu/lb WWTP to Rialto = 40 miles Rialto to kiln = 65 miles Rialto to AZ for land application = 275 miles Compost to land application = 33 miles WWTP to landfill = 25 miles

21. 21EnerTech Environmental, Inc. 2010. All rights reserved. CO 2 e/yr Drying + land application101,600 Landfill wet cake101,100 Incineration69,200-91,500 Land apply wet cake71,800 Composting58,500 Drying + pellets to kiln12,800 Rialto Life Cycle Analysis of GHG Emissions (cont.) Compare SlurryCarb + eFuel to a Kiln to:

22. 22EnerTech Environmental, Inc. 2010. All rights reserved. Regulatory Overview–Rialto SlurryCarb ® Facility Existing Permits/Plans –Minor Source of Air Emissions, SCAQMD (< 4 tpy NO x, SO x, VOCs, PM 10 ) –General Permit, Storm Water and Storm Water Pollution Prevention Plan (SWPPP) –Industrial Wastewater Discharge Permit –Small Quantity Generator, Hazardous Waste –Spill Prevention Control & Countermeasures (SPCC) Plan –Hazardous Management Business Plan (Tier II) –Solid Waste Permit –Biosolids Management Plan –Land Application Permit –GHG Monitoring Plan

23. 23EnerTech Environmental, Inc. 2010. All rights reserved. Recent and Emerging Regulations and how they affect EnerTech Federal GHG Reporting Rule –Subject to Subpart C (>30 MMBtu/hr aggregate heat input capacity) –Facility has potential to emit in excess of 25,000 MT CO 2 e from combustion equipment –Actual emissions are well below reporting threshold -> do not expect to have to report AB-32 –Subject as a general stationary combustion facility –Facility has potential to emit in excess of 25,000 MT CO 2 e from combustion equipment –Actual emissions are well below reporting threshold -> did not have to report for 2009 and do not expect to have to report for 2010.

24. 24EnerTech Environmental, Inc. 2010. All rights reserved. Recent and Emerging Regulations and how they affect EnerTech (cont.) Tailoring Rule –Rialto facility is not an existing PSD or Title V facility (Step 1) –Rialto facility’s potential to emit (PTE) is well below 100,000 tpy CO 2 e (Step 2 threshold) and 50,000 tpy CO 2 e, respectively (Step 3 threshold). CISWI –Solid waste definition has not yet been finalized –Submitted comments on Proposed Rule, Identification of Non-Hazardous Materials that are Solid Waste (40 CFR Part 241), dated June 4, 2010 Boiler MACT –Rialto facility is not a major source of HAPs Boiler Area Source Rule –Process heater is natural-gas fired

25. 25EnerTech Environmental, Inc. 2010. All rights reserved. Thank You Justine Harrison, P.E. EnerTech Environmental, Inc. phone: (404) 856-5849 jharrison@enertech.com www.enertech.com