Due to rising concerns over resource integration, global warming, water quality and other factors, the concept of biomass facilities is resurging. Particularly in California's Central Valley, dairies and food processing facilities are looking at biomass opportunities for purposes of waste management, environmental compliance or energy generation. There are, however, numerous issues related to bringing such projects on-line successfully, including environmental planning and permitting, which need to be identified and addressed from the outset. The first portion of our seminar will explore new legislation and regulations affecting initial decision-making and the permitting process for biomass facilities. The second portion will discuss those issues the project developer will need to deal with in order to successfully develop a financeable project. The final hour will be dedicated to the financing aspect of biomass projects.

Please join attorneys John M. Eustermann, Michael N. Mills, Rebecca B. Sandberg, Lee N. Smith and Joe R. Thompson as they address the following agenda items:

• California Environmental Regulatory Update
• Successfully Bringing a Project to Commercial Operations
• Financing Your Biomass Project

• When: 2/9/2010
• Where: Hampton Inn & Suites - Sequoia Room, 1100 N. Cherry Street, Tulare, CA 93274
  

Agenda:

 I. California Environmental Regulatory Update

• Local, state, and federal permitting issues
• New environmental legislation and regulation
• Greenhouse gas regulation
• Regulatory uncertainty
• CEQA analysis
• Air quality permitting and CEQA mitigation offsets
• Addressing greenhouse gas impacts in environmental documents
• Air Pollution Control Districts' varying levels of significance

To successfully bring a project to commercial operations, the developer must appropriately deal with the following issues, relationships and respective negotiations and agreements – all with notion of putting a project together that will appeal to the debt and equity markets:

• Preliminary business planning and feasibility studies
• Entity structuring and organization
• Securing the project site and related documentation
• Feedstock supply agreements
• Power Purchase Agreements and Interconnection Agreements
• Co-product/Residual off-take Agreements / Marketing and Distribution Agreement
• Technology licensing limitations and issues
• Engineering, Procurement and Construction Contract with designer/builder

As capital markets thaw, a significant obstacle to moving biomass projects from the planning table to production will be securing the necessary capital. Project developers should consider optimal structuring and development strategies to increase financing opportunities for biomass projects and the various financing structures, including:

• Start up/seed round funding: angel investors; strategic partnerships and joint venturers
• Other potential sources: local, state and federal grants, private equity funds, etc.
• Construction and term loans
• Tax-exempt bonds: solid waste disposal bonds; tax exempt recovery zone bonds
• Taxable bonds: CREBs, QECBs
• Tax credits
• DOE grants and loan guarantees
• Working capital, add on capital, etc.