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15.B.2. RFP No. 2008052 WASTE TO ENERGY PROJECT — SELECTION <br />COMMITTEE REPORT <br />Erik Olson, Director of Utilities, reviewed the backup memorandum of November 10, <br />2008, to provide details of the Waste To Energy Project — Selection Committee Report. He <br />thereafter presented staff's analysis and his recommendation to enter into negotiations with New <br />Planet Energy (NPE), which intends to purchase property with an existing plant in the County <br />and to construct the facility to produce ethanol and electricity. They intend to establish a joint <br />venture agreement with the third largest chemical company in the world, INEOS; who holds the <br />patent to produce ethanol. Director Olson defined the projected benefits to SWDD to be <br />approximately $2.0 million per year, over the twenty-year life of the project. Provided the joint <br />venture is established by December 31, 2008, and showing financial capability, and negotiations <br />to acquire the facility has begun, Director Olson requested approval to then enter into <br />negotiations with NPE. He added that if negotiations with NPE/INEOS joint venture were not <br />satisfactory, staff would recommend entering into negotiations with Ameresco, another firm <br />interviewed by the Committee, who proposed to install a power generation plant fueled by the <br />Landfill methane gas. <br />Chairman Davis suggested a representative visit the pilot program in Indiana, and <br />expressed concern of what would be the best way for SWDD to make this type of transition. <br />Director Olson plans to see if NPE can finalize on the first three hurdles by the end of December <br />2008, before they start any negotiations, or the County would go back to their tried and true <br />method of gas to electricity. <br />Ray Crabbs, New Planet Energy, spoke regarding financing, and remarked that they do <br />not anticipate a problem in a joint venture with the third largest chemical company in the world, <br />that had $45 billion sales in 2007. He urged sensitivity to the possibility that there may need to <br />November 18, 2008 2 <br />S.W.D.D. <br />