ENERGY EFFICIENCY AND RENEWABLE ENERGY PROJECTS

STATEWIDE IMPACT

Saint Paul Port Authority

Programs

•Property Assessed Clean Energy (PACE)

•Trillion BTU (TBTU)

•Energy Savings Partnership (ESP)

•Anaerobic Digestion Facilities (AD)

Anaerobic Digestion Projects Fundedby Saint Paul Port Authority

Completed Project:Liberty Paper Becker, MN Paper Fiber $11M Electricity

Likely 2014 / 2015 Projects:Sanimax S. St. Paul, MN MSW Organic Waste $35M BiodieselRandy's Sanitation Delano, MN MSW Organic Waste $30M CNGMichael Foods Chaska, MN Potato Waste $10M Biogas

Other Potential Projects:Rembrandt Farms Renville, MN Egg, Sugar Beet, Tilapia $30M FertilizerCity of Austin Austin, MN Packing Plant Waste $10M BiogasAmerican Crystal Sugar E. Grand Forks, MN Sugar Beets $20M BiogasMet Council Saint Paul, MN Waste Water Treatment $30M BiogasRock-Tenn Saint Paul, MN Paper Fiber $10M Biogas

Saint Paul Port Authority Proposal

The State of Minnesota should create a $20,000,000 investment fund that would be utilized as gap financing for anaerobic digestion projects throughout Minnesota.

Details:The investment fund would leverage $80,000,000 of private capital to construct four to five anaerobic digesters affiliated with large industrial producers of organic waste. The biogas produced from the digesters would be used to produce electricity or offset natural gas use. The benefits derived from these projects would be both environmental and economic including:

Saint Paul Port Authority Proposal

The production of approximately one trillion btus of renewable energy.

Expand the current capacity of the local waste water treatment facilities without a capital investment.

Greatly reducing the energy use at the waste water treatment facilities.

The creation of over 100 FTE construction jobs. The creation of over 10 FTE ongoing operational jobs. The generation of $7,000,000 of new revenue to the State

within one year, that would not occur but for these projects, through sales tax and payroll taxes.

The $20,000,000 investment would be paid back to the State within five years of each investment.

Saint Paul Port Authority Proposal

Summary:The State of Minnesota can assist companies, which have been operating in Minnesota for over half a century on average, to reduce their use of fossil fuels by one trillion btus and to become more competitive by reducing energy costs. The State would receive a net present value return on its investment of $5,000,000 (25%) based upon a 2% discount rate.

Industrial Pretreatment Partnership and Incentive Program (IPPIP) Draft

Description: Metropolitan Council Environmental Services (MCES) is proposing a new program that will provide a partnership and incentive to help high-strength wastewater producers develop pretreatment equipment (e.g. anaerobic digestion facilities) on their industrial sites. The incentive provides: i) Metropolitan Council financing (at low AAA rated public financing rates) and ii) possible forgiveness of up to 30% of annual debt service payments. The applicant must agree to place and manage the pretreatment equipment on their site and in addition to the remaining debt service also be responsible for all other costs including but not limited to: site and feedstock costs, permitting, operations, maintenance and associated risks. In addition, at the end of the agreement term, the applicant agrees to pay a nominal cost and take ownership of the equipment, regardless of its condition.