1. Biomass Task Force Overview Nevada County Board of Supervisors Meeting, March 26, 2013

2. History/Background Task Force Started 3 ½ Years Ago Task Force Started 3 ½ Years Ago Task Force Members Task Force Members Represent Local, State and Federal Government, Industry, Environmental Interests, Business Interests, Represent Local, State and Federal Government, Industry, Environmental Interests, Business Interests, Fire Safe Council, Interested Public (open to anyone) Fire Safe Council, Interested Public (open to anyone) Task Force Focus Task Force Focus Assist Reduction of Wildfire Threat and Effects Assist Reduction of Wildfire Threat and Effects Establish Facility To Use Excess Biomass Establish Facility To Use Excess Biomass

3. Biomass Facility Several Options: Electricity/Heat, Pellets, Biofuel Several Options: Electricity/Heat, Pellets, Biofuel Electricity Electricity Steam to Electricity and Heat Steam to Electricity and Heat Gasification to Electricity and Heat Gasification to Electricity and Heat

4. Benefits of a Biomass Facility Provides a Market for Utilization of Excess Biomass Provides a Market for Utilization of Excess Biomass Potential Support to Landowners for Hazard Reduction Work Potential Support to Landowners for Hazard Reduction Work Increased Protection for Communities and Resources Increased Protection for Communities and Resources Reduced Open Burning, On-site Decay, Disposal Reduced Open Burning, On-site Decay, Disposal Fewer Emissions/Pollutants, Better Air Quality Fewer Emissions/Pollutants, Better Air Quality Jobs/Economic Benefits: ~4.9 Jobs/Megawatt Jobs/Economic Benefits: ~4.9 Jobs/Megawatt Offset Fossil Fuel Energy Generation Offset Fossil Fuel Energy Generation Potential to Incorporate Other Waste Materials for Fuel Potential to Incorporate Other Waste Materials for Fuel

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6. Emissions Reduction Benefits Biomass Facility vs. Open Burning

7. Biomass Feasibility Assessment Current Task Force Priority Biomass Feasibility Assessment Elements Biomass Feasibility Assessment Elements Sustainable Supply Assessment Sustainable Supply Assessment Identify and Rate Feasible Facility Locations Identify and Rate Feasible Facility Locations Technology Assessment Technology Assessment Initial Economic Assessment Initial Economic Assessment

8. Biomass Feasibility Assessment What is Needed? What is Needed? Funding: ~$50,000 Funding: ~$50,000 Pursuing Grants Pursuing Grants Community Development Block Grant Community Development Block Grant USDA Rural Development USDA Rural Development Contributions From Various Organizations Contributions From Various Organizations Value of an Assessment Value of an Assessment Credible Information to Describe Options, Build Support Credible Information to Describe Options, Build Support

9. Challenges Cost of Building a Facility--$4-5 Million/MW Cost of Building a Facility--$4-5 Million/MW Biomass Processing and Transportation Costs Biomass Processing and Transportation Costs Resistance of Major Utilities for Grid Hookup Resistance of Major Utilities for Grid Hookup Current Electricity Rates Current Electricity Rates

10. Potential Solutions SB 1122, Feed In Tariff Support for Biomass Energy SB 1122, Feed In Tariff Support for Biomass Energy Carbon Credits for Utilizing Excess Biomass Carbon Credits for Utilizing Excess Biomass Community and County BOS Support in Dealing with Utilities Community and County BOS Support in Dealing with Utilities

11. County Support Continue Task Force Participation—BOS Presence From Beginning of Task Force Continue Task Force Participation—BOS Presence From Beginning of Task Force CDB G Support CDB G Support Conceptual Support Conceptual Support