1. Inland Empire Paper Company March 27, 2013 Spokane River Forum Conference A Biological Alternative for Nutrient Reduction

2. DO TMDL/NPDES Permits TMDL Permit Seasonal Limits (lbs./day) 123.2 (3 ppm) 2.39 (70 ppb) 24.29 (1 ppm) Reduction Percentage 97% 93% Parameter Previous Permit Limits (lbs/day) Avg. Mo. / Max. Day BOD2,374 / 4,536 Total P36.4 AmmoniaN/A SeasonJune - OctFeb thru Oct

3. IEP’s Commitment to DO TMDL Pilot tested 10 phosphorus reduction technologies: ● Blue Waters Sand Filter● Trident Multi-Media Filter ● Zenon Membrane● Parkson Sand Filter ● Trident HS Multi-Media Filter● Actiflo Ballasted Sand ● Co-Mag Ballasted Magnetite● Co-Mag/Trident HS ● Contrafast/Trident HS ● AlgEvolve 1 st in Region to install a full-scale P reduction system Water reclamation and reuse projects, reduced treated wastewater 1 to 1.5 MGD Installed maximum secondary treatment Investments to date exceeding $10 million

4. IEP’s Previous WWTS River Mill Wastewater Primary Clarifier Orbal ASB Secondary Clarifier

5. IEP’s “New & Improved” WWTS River Mill Wastewater Primary Clarifier Orbal ASB Secondary Clarifier 1.0 MGD Trident HS Mill Process Water (3) MBBR’s 1.4 MGD Conustrenner Mill Process Water

6. Chemical Precipitation Precipitation using Metal Ion Based Coagulants (Aluminum & Iron) followed by Adsorption/Filtration Chemical intensive Process:  Acid to lower pH  Coagulant for precipitation  Anionic and Cationic Polymers for floc stability & settling  Caustic to increase pH Require significant Coagulant Dosages:  1,300 to 1,800 ppm (4,000 to 5,440 gallons/day) Creates a significant amount of chemical sludge – need to determine how to handle, dispose and assure that it does not return to the environment

7. AlgEvolve Process

8. IEP Pilot Scale System

9. Overview of Average Results AnalyteUnitsAverage RawAverage Treated pH 8.27.8 Hardnessmg/L252.7258.8 NH3mg/L0.2750.323 Ortho Pmg/L0.0830.050 Total Pmg/L0.3750.128 BODmg/L14.41.46

10. IEP Demonstration Scale System

11. Photobioreactor (PBR)

12. Membrane Filters

13. Algae Product

14. Biological vs. Chemical Advantages of Algae-based Process over Chemical:  Not a chemically intensive process  CO2 Sequestration  Produces pure oxygen as a by-product  Produces algae as a commodity by-product  Low energy  May provide additional benefits such as PCB removal Challenges:  Green Field Technology  Economics  Reliability  Optimization of biological and filtration processes

15. Questions?