Envirepel Energy Inc.

Biomass Combustion Technology

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Phelan Green Park, Adelanto California

2.9 Mw System

Existing solar field

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Phelan Green Park, Adelanto California

Biomass Energy Proposal for Phelan Green Park

Construct a clean renewable energy facility on the Phelan Park site consistent with its proposed development plan

Sublease 20 acres from master lease• 4 acres for Biomass Energy System building, access and parking

All system components inside the building 60 foot by 300 foot butler building on a concrete pad No hazardous materials used in process, nor emitted from exhaust stack Stack discharge as clean or cleaner than natural gas discharge Water reclaimed from exhaust sufficient to provide all water needs to facility operations except

for people, restrooms, and fire suppression which need to be from city supply.• 16 acres for green house growing operations supported by the biomass energy facility

Hot water during winter to heat green houses Cold water in summer to regulate temperature for peak summer temperatures Reclaimed water from facility operations available to provide irrigation water to green houses

Jobs Created• 15 full time positions in energy facility• Up to 16 full time positions in green house operations

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Biomass Energy Proposal for Phelan Green Park

Benefits to Phelan Pinion Hills Community Service District

Sustainable job creation in the renewable energy generation industru

Site improvements• Replacement and repair of all electrical, gas, water and storm water runoff systems • 24,000 sq ft Butler building containing renewable energy facility remains with the site• Ingress and egress roads, access ways and emergency routes repaired and maintained• Enhanced safety, 24/7 operations keep trained staff on site at all times

Local, State and National attention will be drawn to this site when the energy facility comes on line as it will be the first of its kind in the State of California since 1989

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Biomass Energy Facility layout for Biomat Tariff Projects

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UTILITY INTERCONNECTION

HIGH VOLTAGESWITCHGEAR

TRANSFORMER

GENERATORSWITCHGEAR

STEAM TURBINE

STEAM CONDENSER

AIR COOLEDWATER COOLERFINNED COILS & FANS

PUMP

WATER CLEANUPSYSTEM (ZERO DISCHARGE)

PUMP

GENERATOR

CITY (WELL) MAKEUP WATER& INITIAL FILLS

WATER DEMINERALIZATION& STORAGE TANK

GASIFICATION/COMBUSTIONWITH EXTENDED COMBUSTION

CHAMBER

FUELSPREPAREDBIOMASS

UREA

INJECTION

NOX BOX(SCR)

700oF

1800oF

400oF

180oF

130oF

CONTINUOUSEMISSIONS

MONITORINGSYSTEM

OPACITYOXYGEN

CARBON DIOXIDECARBON MONOXIDENITROGEN OXIDES

SULFUR OXIDES

UREAINJECTION

HIGH PRESSURE WATER

HIGH PRESSURE

STEAM

ASH COLLECTIONBUNKER ASH TO FERTILIZER

OPERATIONS

CYCLONEDUST

COLLECTOR

INDUCEDDRAFT

FAN

WET SCRUBBER

WITHPACKED TOWER

WET ELECTROSTATICPRECIPITATOR

WASTE WATER COLLECTION

HRSG

ECONOMIZER

DWG: EE-BEP-SSD1 06/02/2006

120oF

Envirepel Combustion Technology System Diagram

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Lincoln Alabama Facility – 19.4 Acre Site

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R&D Combustion Research Facility – Operating in Lincoln Alabama

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Landfill Leachate processing line, Operational October 2017

Pre-treatment filter press

Reverse Osmosis unit

Reverse Osmosis feeder and storage tanks

Facility Equipment

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Combustion Unit Ceramics

Fuel Storage Unit

2.6 Mw Steam Turbine Generator

This equipment has been disassembled for shipment

Phelan Green Park reconstruction schedule 2.9 Mw installed

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Lease Agreement

Flow Agreement

Interconnect Agreement

Power Purchase Agreement

Design Construction drawn/certified

Throughput Engineering Review on Emissions

Consruction Contract and Guarentee Agreement

Construction Bonding Agreement

Loan Agreemnents

Building Permits

Water/Sewage

Air Permit/Operating Permit

Business Interuption

Construction

Trial/Testing Period

Sep Oct Nov Dec Jan Feb Mar Apr May

2018Commercial operations in May of 2018

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Biomass Waste to Energy Opportunity – San Diego County

Biomat Tariff opportunity in California

• Requires each of the big 3 utilities in California to purchase up to 250 Mw collectively of power at a starting price of $127.8 per MWHR which can be adjusted up to increase participation

• Limits project size to gross installed capacity of 3 Mw• Provides for less than 6 month timeline to secure long term PPA with Utility• Provides for less than 2 months for interconnection study completion in 12 Kv

circuits allowing for an interconnection virtually anywhere you can obtain land use permits

• There are a minimum of 7 sites where the elements for a successful Biomat project exist in San Diego County

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Contact Information

Envirepel Energy Inc.

www.envirepel.com

• Anthony J. Arand• 760-994-7922• Tony@envirepel.com

• Delphine Macy• 619-348-7238• Delphine@envirepel.com

Qualifications and Project info

Submitted to

Phelan-Pinon Hills CSD

Description for expanded operations:Former Meadowbrook

Dairy

Summary Presentation

Current Operations Management Team Experience Update on Current Operations

Proposed Operations Proposed Organic Composting Proposed Renewable Energy

Management TeamCircle Green Inc.

Kevin SuttonOver 25 years in the Environmental Management Field

1983 - Undergraduate Degree in Environmental Studies

1988 - Masters in Urban and Environmental Planning

1985 -1990 Operations - Pacific Environmental Management

1991 -1996 Technical Sales - Greenfield Environmental / Waste Management Inc.

1992 - Registered Environmental Assessor (REA) State of California

1997 - 2007 Owner - Fleet Industries (sold) 1999 - 2008 Owner - Solid Solutions (sold) 2008 - 2009 Consultant -Terra Renewal

Services 2009 - current Partner Circle Green Inc.

Management Team Bill Irwin

Over 25 years in the Waste Management Field

1989 Agromin agricultural and landscape organic soils manufacture. Landscape product Development, Bagged goods & product marketing and development.

1992 -Waste Management Bio Gro Organics Division

1995 – 2009- Carlyle Consulting – Environmental Consultant

1996 – 2000 Member of International Erosion Control Association

1999 – 2002 Santa Clara Organics – On farm organic processing operations

2001 – 2003 Shoreline Organics – Owner permitted composting facility

2001 – 2005 Porterville / Indian Bell – On farm organic processing

2004 – current partner Circle Green Inc. Permitted Site

Relevant Project Experience

Developed a comprehensive program in 1992/1993 for Waste Management and the City of Los Angeles to support AB939.

Assisted in the development criteria for green waste use in agriculture along with Dr. Ben Faber, farm advisor for the University of California Agricultural Extension.

California Department of Forestry (CDF) using mulch for defensible space.

Los Angeles County Fire departments pilot projects at TOYON Canyon Landfill in Griffith Park.

As a member of International Erosion Control Association (IECA). We Worked with CALTRANS to develop and manufacture the first state specified recycled green waste compost blend called Hydropost.

Dust Busters Air and Valley Fever mitigation team

We worked with CALTRANS, Los Angeles and Orange County to do pilot projects during 1994 through 1998 to determine the effects of erosion control on storm water management and natural resource protection.

Santa Clara Organics, we built an onsite agricultural grinding and self use operation on a 1000 acre plus ranch financed by a low interest loan through CIWMB.

Awarded Ventura County Contract to operate agreen waste facility in Ojai.

Shoreline Organics Oxnard California, a permitted composting facility.

Circle Green Inc. DBA Beneficial Ag Services, a permitted composting facility located in Ontario California.

Relevant Project Experience

Current Operations

Started Lease: August 1, 2016

Current OperationsGreen Organic Management

1. Site Management Administrative Security Insurance House Keeping Vector

2. Site Operations Dust Busters Wind Sand Berms Farm Preparation

ProposedComposting Operation

Compost Windrows

Finished Product

Compost Beneficial Reuse

Wind Erosion Dust Berms

Proposed Organic Composting

Permitting Tom Dodson and Associates CEQA Cal Recycle State Water Board New Permit Mojave Air District ETC.

October10, 2017

Don Bartz

Phelan Pinion Hills Community Service District

4176 Warbler Road

Phelan Ca 92371

Dear Mr. Bartz,

Circle Green Inc. appreciates the continued opportunity to work with the Phelan Pinion Hills

Community Service District (CSD). Circle Green started our lease on the 160 acres located on

the former Meadowbrook Dairy on August 1, 2016. We originally proposed a three (3) phase

operation plan that included, 1) organic farming operations, 2) organic green and food waste

composting and 3) green waste to energy operation and other related services. Attached you will

find a Power Point presentation on our current operations and the proposed composting facility.

A second presentation by Enviropel Energy Inc. will discuss the proposed energy facility.

Founded in 2009, Circle Green Inc. is an organic waste management company with its corporate

office in Ontario California. We are a privately held company managed by the owners, Kevin

Sutton and Bill Irwin who both have over 50 years of combined experience in successful

environmental operations. We are a rapidly growing company that works with public and private

entities. Circle Green provides a variety of organic recycling services from collection to finished

recycled products. The Company currently operates a 20 acre green waste processing and

compost facility in the Inland Empire. Our process segregates high BTU bio-mass for green

energy fuel which is sold to bio-mass energy facilities. The residual by-products are processed

into mulch and high grade organic composts for landscaping and agricultural uses. The Company

also operates two organic farming sites in Ontario.

Circle Green Inc. uses several products on company managed farms and other local farms in the

Inland Empire and Lancaster Palmdale area. We provide a rich composted soil amendment to

increase the nutrient value of the soil resulting in higher crop yields and less water usage. This

compost meets all state regulations to insure it was properly made through the time and

temperature rules. We also provide a variety of mulches, ground covers and other mixes to the

farm sites. These products have several benefits such as erosion control, dust control, water

runoff and water retention.

Circle Green will work with the District and third party consultant Tom Dodson & Associates

(TDA) to permit the site for green waste, food waste and related feedstocks. This permit process

will be in accordance with the California Environmental Quality Act (CEQA) and all other local,

State or governmental agencies. Circle Green and TDA are committed to professionally work

with all agencies and local public entities to provide full disclosure and public understanding of

our goals. No human waste will be processed at the facility.

Circle Green at our Ontario, California facility, produces several thousands of tons of processed

green waste for fuel used in co-generation and cement kilns. This service allows these facilities

to use less negatively environmental fuels such as coal, natural gas, used tires and other fuel

sources. The former Meadowbrook dairy compost permit will allow us to expand this operation.

The composting permit will also provide an infrastructure that will secure needed biomass

feedstock for the proposed Energy operations.

Circle Green’s objective is to provide the District significant relief and protection from uncertain

electrical costs. Our proposed energy facility will be designed, permitted, built and operated by

Enviropel.Energy Inc.

We look forward to working with the district on this dynamic environmental project. If you have

any questions, comments or need additional information please contact me at 310-466-8114.

Sincerely,

Kevin Sutton

Circle Green Inc.

Circle Green Inc. 8271 Chino Avenue, Ontario, California 91761