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ABOUT ERIE RENEWABLE ENERGY

Who is Erie Renewable Energy, LLC?

Erie Renewable Energy, LLC (“ERE”) is a joint venture of Conservation Development Associates, LLC of Erie and Caletta Renewable Energy, LLC of Canton, MA, which plans to build a plant in Erie which uses Tire Derived Fuel to generate 90 MW of electricity.

Who owns Conservation Development Associates, LLC?

Conservation Development Associates, LLC is a local Erie business owned by the McCormick and Rubino families.

What is Caletta Renewable Energy?

Caletta Renewable Energy is a company with a track record of applying advanced technology to convert biomass and waste materials for energy generation and fuel production. Caletta has developed energy plants across the United States which generate more than 300 MW of electricity annually.

THE SITE

Why did ERE choose Erie for this plant?

There are two primary reasons:

First, ERE’s partners believe in Erie and want to see it grow again. The plant will help replace other manufacturing facilities that have left Erie. When the local partners learned about a company looking for sites to develop power plants, they believed that Erie would benefit from the economic boost such a project would bring. It is time to bring new industry to Erie to replace the jobs lost when IP, Gunite, GAF, Steris and others packed up and left Erie to go where they could get cheap labor.

Second, the former IP site was selected because there is existing infrastructure, including rail service and an electric substation, as well as excellent access to public utilities. Development of this site using Pennsylvania’s Land Recycling program will facilitate improving the property and returning an idle historic brownfield to productive, environmentally-sound use.

Where exactly will the plant be located?

The plant is located on portions of the former IP site property, commonly referred to as the South Yard and the Dunn Brickyard. Both parcels are south of East Lake Road and neither on the lake front.

Did ERE consider any alternative sites?

Yes, multiple sites in many areas of the state and region were considered. In fact, as part of ERE’s Air Quality Plan approval application, ERE was required to submit an Alternative Site Analysis, which shows that the IP site is the best site for this use.

THE PLANT

What will this plant produce?

Once fully operational, the plant will produce 90 net megawatts of electricity, or enough power to serve approximately 75,000 to 80,000 homes.

Is this the first Tires to Energy Plant in Pennsylvania?

No, there are currently four other plants in Pennsylvania permitted and using waste tires as part of their process to generate electricity.

What is a circulating fluidized bed boiler (“CFB”)?

The circulating fluid bed (“CFB”) boiler system is a fully contained state-of-the-art technology for processing solid fuels where fuel is suspended in a mixture of superheated air and sand, collectively called the fluid bed. Reagents like limestone are added, and temperatures are controlled to directly capture the sulfur and reduce formation of Nitrogen Oxides. CFB systems produce less than 1/10th of the emissions of coal fired plants.

When will the plant be operational?

The plant is expected to be operational before the end of 2010, which is when the electric rate caps in this part of Pennsylvania will expire.

How much energy will be used to produce the electricity that will be provided?

The plant will be self feeding, using approximately 10% of the gross electricity produced in its process, leaving 90 Megawatts available for electricity consumers.

How is this process different from simply burning or incinerating tires?

The ERE plant will not open-burn tires, but will instead combust TDF in circulating fluidized bed boilers equipped with the best available control technology to reduce emissions. The facility will not be an incinerator, which, by definition has a primary purpose of thermally breaking down solid waste as a means of disposal.

Is there a benefit to this process?

By addressing the waste tire problem in a responsible and beneficial manner, ERE will reduce and prevent massive stockpiles of waste tires that characteristically pose health and safety threats. Although the ERE plant will provide the benefit of addressing our waste tire problem, the purpose of the plant is to generate electricity, not to simply dispose of waste tires. In addition, metal from the tires will be recycled, and ash will be beneficially used.

But I’ve heard that there will be massive smoke, smells and soot from the burning tires. What’s really happening here?

Some opponents of the energy plant like to use terms like “burn” and “incinerator” to conjure an image of uncontrolled tire fires with clouds of black smoke billowing into the air, endangering public safety and polluting the environment. Nothing could be further from the truth. Tires will be offloaded directly into the buildings for preparation, and the technology used at the plant is an enclosed system with the best emission control technology to prevent any smells, soot and smoke from this operation.

Isn’t that just more big words for being a tire incinerator?

No, this is a fully contained process. The ERE facility will not open-burn or incinerate tires. Instead, it will turn nuisance waste tires into a highly valuable fuel, use that fuel to generate affordable and much needed power, and recycle or reuse residues in beneficial ways.

ECONOMIC DEVELOPMENT

How many employees will the facility have?

Building the plant will create at least 250 union construction jobs. Once the plant is operational, about 60 on-site, permanent, union jobs will be created with an average salary exceeding $50,000. In addition, the facility is expected to create at least 140-200 permanent “spin-off” jobs in the region.

Will these jobs be filled with people from the community?

ERE made a commitment from the beginning of our planning to be as inclusive as possible, and to benefit the community through this project. We have recently signed agreements with Great Lakes Building and Construction Trades Council, the Booker T. Washington Center of Erie and the Erie Indian Moundbuilders Tribal Nation to participate in a diversity recruitment and training program to fill these jobs locally.

What taxes will ERE pay?

The site is a Keystone Opportunity Zone, which provides for tax abatement until 2013 for any company that develops and cleans up the property, and produces jobs.

Does this mean ERE won’t pay any taxes?

ERE will be paying sales and employment taxes of all types. The company will also enter into agreements with the local taxing bodies to pay a significant amount in lieu of taxes. After LERTA expires, the plant will be taxed at its full assessed value.

Will any taxpayer money be used by ERE to purchase the property?

No taxpayer money will be used by ERE to purchase the property.

TIRE QUESTIONS

Will there be the smell typically associated with burning tires?

No. There will be virtually no smell at all. Other facilities already in operation using TDF have not experienced any complaints about odors. Plants in existence in Connecticut, California and Pennsylvania have not generated any complaints about odors.

Will there be soot or black residue dumped on neighboring cars and homes?

No. The technology being used for the facility will eliminate any possibility of soot or ash being released in the process.

Will there be noise and unsafe traffic conditions from trucks delivering tires?

No. Approximately 80% of our tires will be delivered by rail. Incoming trucks will use East 12th Street, which is a commercial traffic corridor.

Is there a threat of a major tire fire?

No. The tires will be off-loaded onto our tipping floor, where they will be immediately processed into what we call "TDF" (Tire-Derived Fuel). Once processed, the TDF will be stored inside a building specially constructed for that purpose, and this building will have a state-of-the-art fire suppression system. We will only store enough TDF to run the power plant for 4 or 5 days to allow for delays in rail service delivery.

What precautions will be taken to prevent a tire fire?

Tires will be held in a secure, guarded building with state-of-the-art fire protection equipment, under the oversight of State and Federal permits and regulations. In addition, ERE will comply with the National Fire Protection Association standards and maintain a Preparedness, Prevention and Contingency Plan as required by law.

How many tires will be used?

Approximately 900 tons of tires per day (72,000 tires). This will require less than 30 rail cars and approximately 20 trucks per day coming to the site.

Where are the tires coming from?

ERE has identified three potential suppliers in an effort to source the tires primarily from the tri-state area.

How will the tires be processed to produce energy?

The tires will be off-loaded and then conveyed to a building, where they are processed into tire derived fuel, or “TDF.” The TDF will then be fed into two (2) circulating fluidized bed boilers, producing steam to drive a steam turbine which will in turn produce electricity.

But there have been tire fires at other sites where there are lots of tires in storage. Why are you different?

Major tire fires that have occurred have primarily been caused by lightning or vandalism in massive tire piles stored outside. The ERE power plant does not involve having outdoor tire piles. Tires will be taken directly into a tire shredding building and chipped into 2 inch pieces (TDF) and then moved to the boilers. Any storage of TDF material will be in a building with state of the art fire prevention equipment which will be monitored and tested on a continuing basis. The property will be fenced and monitored by cameras and patrol guards, and fire suppression equipment will be present on site.

Are waste tires a problem?

Yes, according to the EPA, there are at least 275 million waste tires in stockpiles throughout the US. Every year, at least one waste tire is generated for every person living in the country. Tires that are not beneficially reused take up landfill space, or worse, are dumped in streams, fields, woodlands or other areas, causing both an environmental and public health threat. The Port Erie Power Plant will provide a productive, common-sense solution to the ongoing problems created by waste tires.

ENVIRONMENTAL QUESTIONS

What about air quality and emissions from the plant?

ERE will meet or exceed all applicable government established environmental standards. As part of this commitment, at considerable cost, ERE has adopted the Best Available Technology (BAT) and Best Available Control Technology (BACT) which significantly reduce and limit emissions from the plant. We chose Sumitomo Heavy Industries and Babcock Power to work with us, because they are acknowledged world-leaders in these technologies.

How do I know that these standards will protect me?

Environmental permits that protect air, water, land and public health are based on scientific principles, and standards are established after years of study and deliberation by experts. They incorporate risk-based standards, and provide for public comment and other procedural safeguards.

Click here to access the website for DEP, Department of Environmantal Protection

How do I know that you are meeting these standards?

The Department of Environmental Protection and the US Environmental Protection Agency are reviewing the Air Quality Plan. The plant must meet the requirements of the Federal Clean Air Act and Pennsylvania’s Air Pollution Control Act to get the approvals of these agencies. ERE will not be able to start construction until these approvals are received. Following this approval and prior to operations, ERE will have to prove it meets the emissions requirements before it can receive an operating permit.

Who will review the Air Quality Plan Approval Application?

The Pennsylvania Department of Environmental Protection’s regional office (in Meadville), the Department’s Central Office Air Quality staff (in Harrisburg), and the U.S. EPA’s regional office (in Philadelphia).

How do I know you will continue to meet the emission standards once the plant it open and making electricity?

ERE will continuously monitor for such emissions as Carbon Monoxide (CO), Sulfur Dioxide (SO2 and Nitrous Oxides (NOx), as well as particulates. Stack emissions testing will be performed by an independent testing firm using protocols approved by the PA DEP, and daily calibration tests will be conducted with data continuously recorded and available to regulators.

Will I be able to learn the results of this testing?

Results of testing on the plant’s emissions are submitted to DEP for review and analysis by the Air Quality Monitoring division. Once DEP verifies the information, it becomes public information, and DEP will forward test results to anyone who requests them. ERE’s quarterly Continuous Emission Monitoring (CEM) reports will also be publicly available. ERE has pledged to set up a mechanism to make these results available to the public as soon as possible after testing.

What about monitoring metals?

Monitoring particulates is the best way to monitor for metals. The stack will be quipped with a monitor that assesses particulate emissions, and stack testing will be performed to assure compliance.

What happens if DEP finds ERE is exceeding the permit limits?

DEP can take a series of enforcement actions against ERE if it finds the plant out of compliance. Other Pennsylvania CFB operations have shown they can operate and meet all standards. ERE's technology is a step beyond what has been used before, so we are comfortable that we can operate the facility in continuous compliance.

What is ERE doing with the waste water used to wash the tires?

There will be no waste water from washing tires at this facility. The processing equipment does not require that the tires be washed before processing.

Will the plant generate any waste?

The two main residual materials from the plant are: (1) metal from steel belts in the tires, which will be recycled; and (2) ash residue, which will be contained and reused for building materials and other commercial uses.