Envirepel Energy, Inc. 1390 Engineer Street Vista, California 92081 www.envirepel.com

MANAGEMENT PRESENTATION

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Envirepel’s Vision

Mitigate local environmental and energy challengesby converting organic waste streams into clean energy

Kittyhawk Biomass Power Plant Facility, 2.5 MW – Vista, California

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Envirepel Energy, Inc. (“Envirepel” or the “Company”) was founded in 2004 to design, develop,own and operate waste-to-energy (“WTE”) renewable energy facilities for the production ofelectricity and renewable fuels

The Company’s proprietary combustion and emission control systems are designed andengineered in a manner that has enabled it to obtain the required construction and operatingpermits to build new biofuel waste to energy facilities under the State of California’s stringent airquality regulations

• First company in the State of California to obtain air permits for the construction of a new WTE facilityin 20 years

In the Spring of 2007, the Company constructed a full-scale research combustion system that hasoperated for over two years on feedstock, including biomass, tires and plastics

• Discharge Air emissions from testing show emission levels less than 10% of competing technologies

Construction and commissioning of the first commercial facility, Kittyhawk, is nearly complete• Air Permit authorizing construction and commissioning has been obtained

• Final Operating Air permit testing to start within six months of facility commissioning

• Signed PPA with San Diego Gas & Electric (“SDG&E”), a Sempra Energy company

• Biomass supply secured

• Approximately 120 days to fully commission

Executive Summary

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Electricity produced by the Company, satisfies SDG&E’s requirement to source or produceelectricity that meets the Renewable Portfolio Standard (“RPS”) green energy purchase standardset by the California Public Utilities Commission (“PUC”).

Natural Gas Biofuels produced by the Company also qualify under RPS green standards whenpurchased by SGD&E to fire existing natural gas plants; the CO2 produced does not count asincremental CO2

Executive Summary (Cont’d)

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Company Overview

Founded to solve local environmental and energy problems by converting waste streams intoclean forms of energy

Facility concept was engineered and designed in a manner that affords the Company the ability toobtain required building and air permits, while also complying with stringent environmentalregulations

Strategic relationships across the value chain• SDG&E – PPAs• Allied Waste – biomass supply• Milbank, Tweed, Hadley McCloy LLP – retained transaction counsel• HDR Engineering – civil engineers• RQ Construction – construction

Strong pipeline with 407 MWs of projects at various stages of development in Southern California

Experienced management team and Board of Directors

Headquartered in Vista, California

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Strategy and Value Creation

Following completion of Kittyhawk, the Company’s primary goal is to deliver electricity at a highconversion efficiency to SDG&E and comply with or exceed all air emission and environmentalstandards at the local and state level

• CO2 emissions (exempt for biomass in cap & trade) capture for conversion into fuel by-products willbe added thereafter

The Company plans to develop, own and operate a portfolio of WTE facilities in SouthernCalifornia

• Capable of obtaining additional air and building permits and PPAs• Strong development pipeline of both Company-owned and co-owned projects with strategic partners• Project sites include metropolitan landfills, business parks and agricultural locations

- Facility size is designed to accommodate accessible waste tonnage- Avoided cost of energy is approximately 80% of alternatives creating an incentive for SDG&E

Following this financing and completion of Kittyhawk, the Company will be required to raiseadditional equity and debt to fund Vista II and additional projects in the pipeline. Sources wouldinclude project equity and debt and potentially revenue bonds issued pursuant to California’sPollution Control Tax-Exempt Bond Financing Program (allocation from State is approved)

The Company will seek to broaden its geographic presence by licensing its WTE facility conceptto partners with national and global presence

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Leadership Team

Michael Brown, P.E. – Advisor to the Board• Over 30 years of experience with climate change, energy efficiency and

renewable energy projects• Founder & President of Brown, Vence & Associates, Energy and

Environmental Engineers• National Director of Energy and Waste Management at HDR Engineers• MBA from Golden Gate University; B.S. in Environmental Engineering

from California Polytechnic State University at San Luis Obispo• Joined the Team in 2008

William David Gamble, P.E. – Director• Over 30 years of experience with solid fueled biomass energy systems

ranging from 20-250 MMBTU/Hr and 100 KW to 15 MW• Areas of expertise include preliminary and design engineering,

equipment specifications, control systems design, facilities layout,construction monitoring, start-up support, operator training and systemcommissioning

• B.S. in Electrical Engineering from University of Alabama• Joined the Team in 2003

Peter Ullrich – Director• Owner and Chairman of Esmeralda Farms, a floral company with

approximately 5,000 employees• Recipient of the 2006 SAF Gold Medal Achievement Award• Joined the Team in 2005

Dr. Sylvia Tucker – Director• Dean Emeritus and Professor Emeritus, Oregon State University• Board of Trustees, Bonsall Union School District• Doctorate from UCLA; B.A. from University of Northern Iowa• Joined the Team in 2003

Anthony Arand – Founder, Chairman and CEO• Vast experience in engineering, chemical manufacturing, production,

sales, field applications, University and private contractor research andregulatory actions

• Holds patents in selective organic chemistry extraction and petroleumreformulation using low temperature catalytic process

• Engineering employment: Hughes Aircraft, Lockheed-Martin• B.S. in Mechanical Engineering from California Polytechnic State

University at San Luis Obispo• Founded the Team in 2003

Teri Mathes – CFO• Over 16 years of accounting experience• Formerly served as Assistant Controller at Mimi’s Café• Degree from California State Polytechnic University, Pomona• Joined the Team in 2004

Jim Farooquee – Director• Founder and President of CMS Entertainment• CEO of Mountain Computer, Print Works and has held senior positions at

Ecal Realty and Nationwide Mortgage Company• Degree in Civil Engineering from Karachi Technical College• Joined the Team in 2008

Bruce Shuman, CPA – Advisor to the Board• CEO and Co-President of Rainbow Disposal Company• Formerly held positions at accounting firms Grant Thornton and Alder,

Green and Hasson• Degree from the University of Southern California• Joined the Team in 2009

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UTILITY INTERCONNECTION

HIGH VOLTAGESWITCHGEAR

TRANSFORMER

GENERATORSWITCHGEAR

STEAMTURBINE

STEAMCONDENSER

AIR COOLEDWATER COOLERFINNED COILS& FANS

PUMP

WATER CLEANUPSYSTEM (ZERO DISCHARGE)

PUMP

GENERATOR

CITY (WELL) MAKEUP WATER& INITIAL FILLS

WATERDEMINERALIZATION& 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

HIGHPRESSURE

STEAM

ASH COLLECTIONBUNKER ASH TO FERTILIZER

OPERATIONS

CYCLONEDUST

COLLECTOR

INDUCEDDRAFT

FAN

WETSCRUBBER

WITHPACKEDTOWER

WETELECTROSTATICPRECIPITATOR

WASTE WATER COLLECTION

HRSG

ECONOMIZER

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

120oF

Make a Gas,Burn a Gas

PowerGen

Scrubbers

Catalytic Converter

Envirepel System Process Diagram

Envirepel’sBiomass to Energy Process

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Why is “Make a Gas, Burn a Gas Important?

Combustion

Infra-red radiation from the superheated ceramics releases water from the fuel along with othergases from fuel feedstock. IR radiation from ceramics also will separate hydrogen from oxygenfrom the water in the fuel. The hydrogen gas in the combustion process prevents the majorbuilding blocks of traditional regulated pollution compounds such as NOx, SOx, and HC fromforming, resulting in a clean exhaust which can be permitted under today’s air permitting rules

Gasification

Wet FUEL

Post Combustion Dwell ChamberAllows for complete combustion

Ultra low EmissionHigh TemperatureExhaust to HSRG

Gas Flow

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Low emissions result from the conversion of solid biomass to a gas,then burning the gas and not the solid

Fuel

Steam

Burn

Make a Gas, Burn a Gas – Gasification / Combustion Hybrid

Whyis it

Clean?

The indirect conversion of solid fuel to a gas prior to the combustion of thegas using infrared radiant energy allows for specific chemical reactions totake place in a controlled environment that minimizes pollutant formation

Note: A demonstration can be viewed online at http://www.youtube.com/watch?v=xBSBDNsxK0U

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Envirepel has demonstrated that it can obtainpermits to build and operate WTE facilitiesin Southern California

• Building and operating permits obtained for Kittyhawk

Facilities designed to be permitted and operated inurban locations and adjacent to landfillswithout grid inter-connection issues

Facilities designed using a common 7.5 MWfacility module that can be replicated in multipleidentical units

• Scale achieved through the addition of a standard7.5 MW facility module (e.g., building a train)

- 60 MW facility represents eight 7.5 MW facilities- Minimizes commercialization risk

• Standardization of equipment and O&M across all facilities

3-D CAD modeling of each facility completed and thoroughlyexamined prior to start of construction

Major facility components supplied from a variety of vendorsand assembled on site by general contractors or EPCs

Engineering and Design Advantage

Common Module Methodology

30 MWFacility

7.5 MWFacility

2.5 MWFacility

Note: Each colored circle represents a combustion cylinder

60 MW Facility

StandardModule

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What Can Be Produced?

Electricity

Co-gen heat supply

Reclaimed water from fuel

CO2 capture and on-site conversion intopetroleum products

• Natural gas• Methane gas• Gasoline• Diesel• Jet fuel

Ash for concrete filler or “eco-blocks”

On-site capacity to sterilize oil contaminatedsoils

Green jobs

CO2 Fuel By-Products Overview

Following a facility’s completion,equipment will be added in order to captureCO2 that is produced in the combustionprocess and convert it into petroleumproducts

High revenue and margin opportunity

Requires off-the-shelf technology that isused in refineries globally

Plan is to sell fuel by-products to a 3rd

party on a contractual basis

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Test Cell Unit – Emission Testing

Envirepel has operated a full-scale research combustion system for over two years to evaluate variousfeedstock and associated emissions performance

• Built on common module methodology- Test cell unit runs one production size combustion cylinder; Kittyhawk has three combustion cylinders

• Feedstock include municipal solid waste, plastics, tires, compost and green waste

The Combustion system demonstrated that indirect combustion (make a gas, then burn the gas) design of thesystem delivered consistent and significantly lower emissions than comparable incineration, plasma arc, orother gasification systems for multiple feed stocks

Complies with the Federal Standard, AP42 calculations needed to obtain air permits• AR42 is the primary national and regional standard

Test Cell –Typical Emission Levels

Pollutant Emission Level

NOx ≤ 27 ppmCarbon Monoxide ≤ 2 ppmVolatile Organic Compounds ≤ 2 ppmParticulate Matter 10 ≤ 2 ppmSOx ≤ 1 ppm

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Kittyhawk Facility

All permits to build and operate facility have been obtained

Certified under the State of California’s Renewable Portfolio Standard

PPA with SDG&E(3); corporate parent is investment grade

Feedstock includes tree trimmings and clean wood sources; approximately 100,000 tons per yearavailable within 20 mile radius; supply agreements will be signed upon facility completion

Located in Vista, California

Capacity: 2.2MW

PPA: SDG&E (3-yr w/ renewal - $96/MWH)

Project Development Cost(1): $10.5 million

Est. Completion: 120 days and $4 million

Process Capacity: 630 tons of biomass per week

Mineral Ash(2): 20 tons per week

Financial Summary:

(1) Includes all research, design, development, construction and equipment costs per company filings(2) Comprised primarily of calcium, silicon, magnesium, phosphorus and potassium oxides(3) A Sempra Energy company. Sempra’s corporate rating by Moody’s and Standard & Poor’s is Baa1 and BBB+, respectively, as of June 30, 2009

($ in thousands) Power Power & Fuel

Revenue $2,504 $5,630

EBITDA $723 $3,948

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Market Overview

Federal and numerous state laws considerWTE a renewable energy source

Currently around 90 WTE facilities exist inthe U.S., which produce approximately2,500 MW, or 0.3%, of national powergeneration

U.S. WTE facilities generated approximately$440 million in revenue in 2008

Growth has been constrained due todifficulty in obtaining permits

• Environmental laws have become morestringent since WTE facilities were firstintroduced in the 1980s

• Legacy WTE facilities are not permittabletoday

Market participants include CovantaEnergy, Foster Wheeler and WheelabratorTechnologies

$220$260

$400$440

$0

$100

$200

$300

$400

$500

2005 2006 2007 2008

Tota

l Rev

enue

($ in

mill

ions

)

WTE Facilities Market Revenues – 2005-08

Source: Frost & Sullivan; May 20, 2009

WTE is a superior sustainable alternative to landfills

Reduces landfill usage and preserves capacity

Reduces greenhouse gas emissions from landfilldecomposition

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36.5

23.9

18.3

12.9

6.4

4.9

1.3

19.3

7.7

9.1

9.5

12.4

11.5

6.4

4.44.6

10.1

4.3

Map depicts air basins with significant air emission issues and where the permitting of projects requires the use of off-set credits

Nonattainment areas forboth 8-hour ozoneand fine particle pollution

Nonattainment areas forfine particle pollution only

Nonattainment areas for8-hour ozone pollution only

Nonattainment Air Basins in the U.S.Why and Where Air Permits Matter

Note: Numbers on map denote population estimates in millions

Envirepel has obtained permits for WTE facilities in Southern California

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The potential for 4,000 MW of power generation exists on active landfills

311 Active

2,505 Total

California EnergyCommission

PIER Renewablesas of July 2002

Allied Waste operates 23% of U.S. landfillsand is a major waste managementcompany in California

California Landfill Supply

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Ramona Landfill - 7.5 MW

Fallbrook - 90MW

Kittyhawk / Vista II2.2 MW / 7.5 MW

Sycamore Landfill - 90 MW

Miramar Landfill - 30 MW

Otay Landfill - 60 MW

32nd StreetNaval - 15 MW

Select Southern California Landfills Operated by Allied Waste

Envirepel has development plans for 407 MW of WTE facilities in Southern California, several ofwhich will be located adjacent to Allied Waste landfills

• MW production is designed to accommodate waste tonnage of nearby landfills

Total distributed generation to approximately 400,000 homes

El Centro - 15MW

Anaheim - 90MW

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Completion and commissioning of Kittyhawk will serve as proof of concept• Provides for the permitting of planned facilities and in attaining additional PPA contracts• Provides negotiating leverage in finalizing PPA and supply arrangements for planned facilities• Helps qualify Envirepel for municipal bond financings under California’s Pollution Control Tax-

Exempt Bond Financing Program• The electricity satisfies SDG&E renewable portfolio standard (green energy purchased natural gas

from process will qualify as renewable energy to drive plant)

Facility Development Pipeline

Facility Location InstalledCapacity

EstimatedEBITDA

Est.Development

CostCost / MW

EstimatedCompletion

Date

Kittyhawk (2) Vista, CA 2.2 MW $ 0.72 $10.5(1) $4.8 2010Vista II Vista, CA 7.5 MW $ 2.03 $20.0 $2.7 2011El Centro El Centro, CA 15 MW $ 10.70 $50.0 $3.3 2011Ramona Ramona, CA 7.5 MW $ 3.15 $22.0 $2.9 2012Fallbrook Fallbrook, CA 90 MW $ 77.30 $240.0 $2.7 2012Naval Station San Diego, CA 15 MW $ 10.70 $55.0 $3.7 2013Miramar San Diego, CA 30 MW $ 24.47 $96.0 $3.2 2013Anaheim Anaheim, CA 90 MW $ 77.30 $240.0 $2.7 2013Sycamore Santee, CA 90 MW $ 77.30 $240.0 $2.7 2014Otay Chula Vista, CA 60 MW $ 51.20 $192.0 $3.2 2014Total 407.2 MW $334.87 $1,165.5

(1) Includes all research, design, development, construction and equipment costs(2) All contracts are subject to Kittyhaw coming on line. Once online, California Public Utilities Commission (PUC) will grant final approval

($ in millions)

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Illustrative Revenue Model

WTE FacilityProjectFinance

Third-PartyTBD

UtilityCompany

SDG&E

Fuel SupplyAllied WasteWaste Mgmt.

CombustionBy-Products$

$

$

Electricity

$ Tipping Fees

Envirepel Energy, Inc. 1390 Engineer Street Vista, California 92081 www.envirepel.com

KITTYHAWK FACILITY

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Gasification Chamber

Combustion Chamber

Kittyhawk Facility

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Combustor

Turbine

Evap Cooler

Kittyhawk Facility

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Entire Facility is Under 7 Meters Tall

Evap Coolers

ScrubbersSteam TurbineSteam Boiler

Kittyhawk Facility