Major Project Siting

Major Project SitingA Positive Case Study

Glenn McGinnisChief Executive OfficerArizona Clean Fuels Yuma

Glenn McGinnisChief Executive OfficerArizona Clean Fuels Yuma

SESSION 1

Presentation Overview

Arizona Clean Fuels Yuma Refinery (ACFY) project – Background, Overview and Impacts

Yuma County Community – Overview and Impacts

Maricopa County / Yuma County - Contrasts ACFY Community Approach Strategy Assessment of Results Lessons Learned – “Do’s and Don’ts”

Arizona Clean Fuels Yuma Project

Proposed new oil refinery – 150 kBD Original location in Maricopa County – moved to

Yuma County due to Air Permit Issues / Public concern

Complex Refinery - $4 billion project including new pipeline from west coast of Mexico

Construction requires 3000 people – Operations requires 500 people

Air Permit issued by ADEQ – emissions less than 50% of those from existing refineries

Yuma versus Maricopa County Sites

Maricopa County site:• within “Ozone non-attainment area”• In an area targeted for significant population growth• Subject to environmental justice concerns• Local opposition – political and community – project

viewed negatively• “Not a Good Choice”

Yuma County Site:• In remote area with little population & low land values• Local population interested in economic benefits –

jobs, taxes, etc.• Active local support – political and community –

project viewed positively

ACFY selected site – 45 miles from Yuma

Refinery Location

Yuma County Community Overview

Yuma County located in the SW corner of Arizona – bordering California & Mexico

County population is approximately 100,000 in summer – approaching 200,000 in winter

Closest town – Wellton is 10 miles west of the site – with population of 2,000

Farming area 3 miles northwest Population in area is sparse City of Yuma is 45 miles away – military and

farm economy – growing industrial and commercial

Project Community Impacts

Construction – worker housing and services• Rely on “Trailer Parks” with some temporary

housing• Company to provide transportation and on-site

services• Traffic around the site

Operations – expect 500 employees & contractors

• Will require housing – Yuma, Tacna, Dateland• Impact on Schools, Recreational Facilities, etc.• ACFY working with local Community College on

training programs for local hiring

Community Concerns

Emissions impact on local environment – impact on farm crops assessed by Arizona Department of Environmental Quality in Permit Technical Support Document

Water use minimized by design – zero discharge Local traffic and community services

• Arizona Dept. of Transport/ACFY planning new interchange on I-8

• Impact minimal versus “Snowbirds” Emergency Response capability and impact on

local services Impact on land values - positive

ACFY Community Outreach Strategy

Meet with local politicians and community leaders – early and often!

Provide details of project and its impacts – “good” and “bad”

Address key community concerns and be willing to “invest in community” – Training, Infrastructure

Be diplomatic to detractors – “Take the high ground”

Ensure State and Federal politicians and bureaucrats are briefed

Be proactive and available to the press

Assessment of Success

Excellent relationship with Yuma County Administration • “The way ACFY has approached Yuma has been a textbook model – one that

everyone appreciated from the very first day” – C. Prochaska, Yuma County Supervisor

Public meetings are well attended with more supporters than detractors

Air Permit re-issue actively supported by ADEQ, State Administration, Governor

No “organized” opposition during zoning hearings, permit hearings, public meetings

Frequent exposure in local and national press, radio and television

Lessons Learned

Find a location with minimal negative impact potential

Address key community concerns up-front and commit to good corporate citizenship

Be a champion for open communication Deal with the tough issues and detractors Build a network of influential supporters