©2014 ViTAL Economy, Inc.— 1 —

Silver Door County EDC Keller, Inc. Kewaunee County EDC Two Rivers Water & Light Alliant Energy Sturgeon Bay Utility CommissionFirst Business Bank

Diamond

Platinum 

THANK YOU! Lakeshore Industry Cluster Initiative Sponsors

Gold Ben Cress Wisconsin Public Service NextEra Energy Point Beach Nuclear Plant

with support from WEDC

Lakeshore Industry cluster Initiative Manufacturing – Energy – Agriculture - Tourism

Regional Biogas Value Chain

Co-opDigester

Independent Farm

27 in WisconsinFertilizer Value Stays the same

Manure

Commercial Waste?

Food Processing By-Products

Conditioning

Separator

Electricity

LiquidSolids

Cleaning CO2 RemovalCost to build w/ digester $4 M

Pipeline ? Baldwin WI Build interconnect / Gate StationQuality - Unknown

Transportation

Col

lect

ion

Manure value 438,000 head X 27,800BTU/day X 365 days/year = 4.8 T-BTU/yr (6.8 cents/ lb. to handle)

Value = $48MRINS Value = $3.20 per M Btu

By-Products Value ?

Digester Infrastructure Specs & Cost• Head 1000-15000• $1.8 M - $15 M

11 sites3.5 cents KW10,000 BTU / KW/HR

Additional Benefits• Greenhouse Gas reduction• Waste Management• Odor Control• Sustainability Local• Ground Water Protection• Air pathogens• Reducing Fossil fuel use

Heating Dry

Tube Trucks cost $250,000 to transport CNG

Example- Fair Oaks Farm4 Dairys-14000 cows – central cleaner

RINS EXPERTISE – value $7 MilUS Oil / Integris

Commercial

Fleet 75 vehicles4 partial$1-$16 M

Vessels

Milk TrucksSchneiderPablWaste MgmtVintorVeinoUPS

High Pressure – 3600 psi

Corn Dryers

PropaneComparison 1.39 gal.75K BTU/ Gal $14/m BTU

$10/M BTU

Site

Politics environment needs to be considered and assessed

Gas Cheaper than Manure to haul

Regional differential value $186M, CBG value + fuel value not purchased

SaxnVellito

Badger – CNG Preferred AlternativeMarine companies retrofitting vessels

Not reviewed during session, needs future analysis

CLEAN POWER PLAN

Arthur J. HarringtonGodfrey & Kahn, S.C.

aharrington@gklaw.com414-287-9414

312433714

Overview of Presentation

• Overview of EPA’s Clean Power Plan• Timeline for comments (EPA/State) and

implementation of the Plan• Other future regulations for Utility Industry• Summarize opportunities/challenges for

[Industrial User (‘IU”)] under the Plan• Highlights and potential IU future strategies to

mitigate risk/explore benefits resulting from the Plan

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Overview of Clean Power Plan

• Provides emission guidelines for states to follow and developing state implementation plan (“SIP”)

• Applies to coal-fired electrical generation units (“EGU’s”)

• ID should be concerned about impact of Plan in those states where it is facilities served by coal-fired generation.

• Goal is to get a 30% reduction in carbon dioxide emissions by 2030 compared against 2012 baseline.

• The Plan has already attracted several legal challenges

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EPA Proposed Strategies for States to Implement EPA Goals• Reduce carbon dioxide emissions from the covered EGU• Increase the use of existing natural gas fired combustion

EGU• Expand the use of low carbon renewable-energy

generating units• Expand the use of demand-side energy-efficiency

programs for EGU customers• Guidelines for states to implement the goals are not

limited to these 4 building blocks and can be expanded

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Timeline for Plan

• Plan proposed on June 18, 2014• Public comments due on December 1, 2014• EPA to finalize Rule on June 18, 2015• State must submit SIP by June 18, 2016

• State must meet CO2 goals by 2030

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Summary of Opportunities/Costs for IU Under the Plan

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• The Plan when adopted presents a significant increase in electrical costs for IU in those states where there is a high percentage of base-load generation provided by coal fired EGUs

• If IU has already employed significant energy efficiency reductions for its facilities, it will be difficult to “squeeze out” more efficiencies at its facilities under the Plan.

• IU may want to consider is consolidating production from other parts of the country into those areas that are served by fewer coal fired EGUs.

• IU may want to consider taking steps now to reduce energy costs and increase revenue opportunities under the Plan.

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Key Potential Regulatory Involvement by IU

• Comments on Federal Plan.• Involvement on State SIP task force.

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Comments on Federal Plan

• Plan should clarify that any actions by customers would be voluntary and compensated.

• Plan should allow for and encourage the creation of incentives to shift production to more efficient facilities, including shifts to facilities in other states even if those states are not in the same region.

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Involvement on State SIP Task Force

• IU should monitor the draft SIPs in those states where it has large facilities and file comments to those SIPs where appropriate.

• Want to make sure that there are no mandatory requirements on customers and that customers are fully compensated for their energy-efficiency and renewable-energy projects.

• Want States where IU has facilities to work with other states to allow IU to receive credit for its efficiency gains from shifting production to more efficient IU facilities, where appropriate.

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Potential Steps to Reduce Costs and Increase Revenue Opportunities under Plan

• Energy efficiency: Document efficiency gains, including gains from shifting to high-efficiency plants.

• On-site energy generation:− Solar: Consider taking advantage of 30% investment tax

credit and beneficial state programs.− Biomass/biogas generation: Consider ability to qualify for

30% investment tax credit, to offset high cost/carbon flat-load energy, and to use waste heat.

− Natural gas generation/cogeneration: Consider opportunities for facilities with high cost/carbon energy, flat-load, and potential use of waste heat (10% investment tax credit for cogeneration)

− Consider third-party financing of generation facilities.

The presentation and materials are intended to provide information on legal issues and should not be construed as legal advice. In addition, attendance at a Godfrey & Kahn, S.C. presentation does not create an attorney-client relationship. Please consult the speaker if you have any questions concerning the information discussed during this seminar.

OFFICES IN MILWAUKEE, MADISON, WAUKESHA, GREEN BAY AND APPLETON, WISCONSINAND WASHINGTON, D.C.

Thank You

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What’s Trending in Alternative Sectors?

• Current position of alternative power source in the economy

• Major roadblocks to growth (regulatory, economic, political, etc.)

• Recommendations for action/solutions