1. The Importance of FGD Gypsum To the CCP Industry By David Goss, Executive Director American Coal Ash Association OSU – EPRI Workshop St. Louis, September 13, 2006

2. FGD Workshop – St. Louis September 2006 Growing the FGD Gypsum Marketplace Issues Driving the CCP Industry Production Utilization Environment

3. FGD Workshop – St. Louis September 2006  To achieve compliance to CAIR and CAMR, utilities may add FGD wet systems  Boiler design, plant operational issues, location, fuel source and economic factors will determine each plant’s decision Regulations affect the marketplace Industry Response to New Air Emission Requirements

4. FGD Workshop – St. Louis September 2006 How Regulations Will Impact FGD Production Flue Gas Desulfurization material will grow dramatically  Significant increase in production of FGD material in next decade  Primary market for synthetic gypsum is wallboard – about 9 million tons or 27%  Dry scrubbing systems more prevalent in the Western US

5. FGD Workshop – St. Louis September 2006 EUCI July 2006 Synthetic or FGD Gypsum Major Markets For FGD Gypsum  Wallboard manufacturing  Agricultural  Cement production

6. FGD Workshop – St. Louis September 2006 Gypsum in Agriculture  Promotes the emergence of seedlings and new plants  Improved drainage in clay soils  Reduction of water use in turf grasses  Synthetic gypsum dissolves faster than mined gypsum A Diverse Product

7. FGD Workshop – St. Louis September 2006 Gypsum in Agriculture  Can be used to treat sodic soils  Provides nutrients to crops such as peanuts, vegetables and fruits  Can ameliorate subsoil acidity  Reduces phosphorus runoff Land Uses for FGD Gypsum

8. FGD Workshop – St. Louis September 2006 Are There Potential Barriers to Increased Agricultural Use? Looking Ahead  Mercury removal techniques may raise questions  Perception, not science may challenge end users  Are mercury concentrations a concern?  Can mercury be released in land applications  Has research addressed land applications?  Studies by Gustin, Ladwig, et. al seem to indicate that this is not a technical concern

9. FGD Workshop – St. Louis September 2006 Looking Ahead  Wallboard industry will not be able to use all new FGD gypsum produced in the next 10-15 years  Agricultural uses could grow dramatically with increased outreach and research  Many parts of the country have little knowledge of agricultural uses of this product Why Increase Focus on Agricultural Markets?

10. FGD Workshop – St. Louis September 2006 Florida and Georgia’s Experiences Looking Ahead  Florida Department of Agriculture and Consumer Service regulate FGD gypsum as a fertilizer  Sellers are licensed  Purity levels are specified  Reporting is required  Extensive research supported by Southern Company, TVA and others  46% of Georgia’s peanut growers use gypsum

11. FGD Workshop – St. Louis September 2006 What’s Needed ? Looking Ahead  Basic information for producers on how gypsum can be used in agricultural settings  A listing or identification of areas in the US needing or currently using gypsum  The types of crops or settings in which gypsum applications can benefit the grower or land user  Samples of state regulatory documents that permit FGFD gypsum use and under what guidance  Logistics considerations – is the material handled dry or moist? How is it transported and applied?

12. FGD Workshop – St. Louis September 2006  Research and testing of FGD products in different climates, soils and with a variety of crops will be needed – land grant universities may be key stakeholders in this research effort  Partnerships with FGD producers, growers, the USDA, and universities may help identify needs for research and funding to support this research  The EPA needs to be educated about agricultural applications and associated risks as it is a new area for them How Do We Focus on Agricultural Markets? Looking Ahead

13. FGD Workshop – St. Louis September 2006 Is There Competition?  Natural mined gypsum  Location and transportation may favor natural gypsum over FGD  A whole industry is forming to recycling construction debris wallboard  California consumes a lot of recycled wallboard (California Integrated Waste Management Board)  Preliminary research indicates that mercury in recycled wallboard should not be a concern  CMRA is promoting wallboard recycling aggressively (http://www.drywallrecycling.org/) Looking Ahead

14. FGD Workshop – St. Louis September 2006 Conclusions  Industry and public sector research and partnerships should be formed  Joint information gathering and dissemination of examples, case studies and reports is needed  Workshops should be held for potential regulators, end users and researchers  US Department of Agriculture has much interest in this area as a new C 2 P 2 sponsor. Opportunities

15. FGD Workshop – St. Louis September 2006 Resources  http://westernfarmpress.com/mag/farming_essential _amendment_high/ http://westernfarmpress.com/mag/farming_essential _amendment_high/  http://www.gp.com/build/product.aspx?pname=Agric ultural&pid=1570&hierarchy=pc http://www.gp.com/build/product.aspx?pname=Agric ultural&pid=1570&hierarchy=pc  http://www.gypsumsolutions.com/newscenter/news/ agricultural/cs_sofnsoil.asp http://www.gypsumsolutions.com/newscenter/news/ agricultural/cs_sofnsoil.asp  http://www.dktgypsum.com/news_content7.html http://www.dktgypsum.com/news_content7.html Websites

16. FGD Workshop – St. Louis September 2006 Resources - continued  http://www.wastecapwi.org/documents/BMP_drywall_on_ home_sites_final.pdf http://www.wastecapwi.org/documents/BMP_drywall_on_ home_sites_final.pdf  http://www.nerc.org/documents/2001-fertilizer- regulations-summary.html http://www.nerc.org/documents/2001-fertilizer- regulations-summary.html  http://aquanic.org/publicat/state/ky/liming_wp.htm http://aquanic.org/publicat/state/ky/liming_wp.htm  http://www.shawresources.ca/ResSection.ASP?item_id= 221 http://www.shawresources.ca/ResSection.ASP?item_id= 221  http://ohioline.osu.edu/anr-fact/0020.html http://ohioline.osu.edu/anr-fact/0020.html  http://www.tarleton.edu/~txjanr/Response%20of%20Coas tal%20Bermudagrass%20to%20Gypsum%20Application s.pdf#search=%22agricultural%20gypsum% http://www.tarleton.edu/~txjanr/Response%20of%20Coas tal%20Bermudagrass%20to%20Gypsum%20Application s.pdf#search=%22agricultural%20gypsum% Websites

17. THANK YOU American Coal Ash Association 720-870-7897 www.acaa-usa.org