1. BIOENERGY SYMPOSIUM 2013 ANAEROBIC DIGESTION Regulations Ollie Frazier, P.E., MBA

2. Achievability Attainable Feasible Possible Profitable

3. Regulation / Financing Financial Models – discussed later Regulatory Documents Needed – Local / County – State – Federal – Utility

4. Regulation Local / County Community Acceptance Noise Zoning Water / Air (some counties) Waste Building permits Electrical inspection

5. Regulation / State Environmental – Air – Water – www.ncdenr.gov Utility Commission – Proposed Project Approval – Renewable Energy Registration (REC) – www.ncuc.commerce.state.nc.us

6. Regulation / Federal EPA – Water – Air – Environmental Assessment Federal Energy Regulatory Commission – Qualified Facilities – www.ferc.gov Energy Information Administration

7. Regulation / Utility Interconnection – Proposed Project – Detail Design – Various Approvals Purchase Power Agreement – Buy all / Sale all – Net Metering – May include REC purchase agreement

8. Interconnection How-To Complete Attachment 2 of NC Interconnection Request – Application Fee – Electrical One-Line Diagram – identify all equipment size and name – Disconnect switch – Attached proof of insurance (general liability) Certificate of Public Convenience and Necessity for larger than 2 MW – all others file a proposed construction report with NCUC Contact DENR of environmental requirements Project tracked in the NCRETS need to file Registration Document Facilities larger than 1 MW must file with FERC If energy is being sold: Purchase Power Agreement Projects must be inspected by utility and have required electrical inspections

9. Interconnection Larger than 2MW Will require going through the Study Process – Feasibility Study, – Impact Study, and/or – Facilities Study Once the Interconnection Request has been filed and accepted a Scoping meeting with utility will be called. Customer and Utility agree on the need for one or more Studies. Utility will send the appropriate Study agreement (s) with scope of work and estimated of cost.

10. Financing Cost Sharing / Grants Tax Credits Revenue – Sale / Trade Renewable Energy Credits – Sale / Trade Carbon Credits – Fertilizer – Feedstock Payments (Tipping Fee) Banks – Land use Agreement with Owner – Regulatory Documents – Cost Analysis / Cash Flow

11. Renewable Models Electricity – Sale all generated – Used at the facility with excess sold – Used by third party through a lease arrangement Gas – Sold to someone with a generator – Used at a facility – Used for transportation

12. Profitable Achievability – Compliance with Regulation at all levels City, County, State, Federal – Obtain Revenue Contracts REC, Carbon Credits, Energy, Tax Credits – Meet Investors Requirements

13. QUESTIONS Ollie Frazier OPA216@GMAIL.COM 704-458-2814