November 25, 2009
Mr. Trent Cave, Director
Napa-Vallejo Waste Management Authority
1195 Third Street, Room 101
Napa, CA 94559
Subject: Proposal Letter - Feasibility Assessment of P3 Proposal
Dear Trent:
As discussed, HDR Engineering Inc. (HDR) is pleased to offer our assistance to the Napa-Vallejo
Waste Management Authority (Authority) for services relating to conducting a feasibility assessment
of P3 Renewable Energy LLC’s (P3) proposal to the Authority to develop and implement a
Conversion Technology (CT), catalytic depolymerization (KDV) at the Devlin Road Transfer Station
(Project). Being HDR’s Nation Practice Leader for Conversion Technologies, I have extensive
experience in providing feasibility assessments and related services for clients, including those for
the City of Los Angeles, City of San Jose, the Western Placer Waste Management Authority,
County of Salt Lake, Utah, and the Salinas Valley Solid Waste Authority (SVSWA) as shown in my
attached resume. HDR will supplement this experience with assistance from HDR chemical
engineers familiar with the KDV process. One of these engineers, Mr. Fred Reinhard holds a
doctorate in chemical engineering from Berlin, Germany and can interpret any German-developed
plans, as this technology was originally developed in Germany and uses their equipment.
HDR understands that at this time the Authority is only requesting a schedule and fee for
conducting the feasibility assessment work described above; no scope of work is being requested.
We assume the schedule and fee will be finalized with the Authority once the details of the scope of
work are determined, but for now, based on your request for services as included in the following
assumptions, the schedule and fee are presented below. The assumptions include:

The scope of the project is preparation of a feasibility assessment of P3’s proposal to the
Authority to develop a KDV project on approximately 1.5 acres of area at the Authority’s
Devlin Road Transfer Station Facility.

The feasibility assessment will be based on design, engineering and other relevant data and
information developed and provided by P3 for this particular project, including actual
operating data from similar P3 KDV projects. It is critical to the feasibility assessment
that we received “actual” operating data from similar P3 KDV projects. Not just
theoretically developed information prepared by the developer; we have learned this
from experience.
HDR Engineering, Inc.
575 Market Street
Suite 700
San Francisco, CA 94105
Phone (415) 814-6800
FAX (415) 814-6802
www.hdrinc.com
Mr. Trent Cave
November 25, 2009
Page 2

HDR will use P3 operational and proposal information, local constraints (such as regulatory
and site requirements) and other experience, including data from other similar facilities with
which they are familiar, to conduct the feasibility assessment.

The assessment will include review of: 1) Qualifications and Key Personnel, 2) Legal (as
related to engineering, as HDR is not a Law Firm) and Financial Issues, 3) Feedstock
Requirements, 4) Technology, 5) Environmental and Regulatory Issues, and 6) Economic
Feasibility.

The feasibility assessment shall be prepared in report letter format to include an Executive
Summary; assumptions used in the assessment; and documented risks by category (as
applicable)

The schedule is based on the assumption that HDR receives requested information in a
timely manner. In particular, as the Executive Summary is scheduled to be delivered within
30 days, we will need all requested information within a week of the request.
Schedule & Fee
HDR agrees with the Authority’s schedule request for: 1) an Executive Summary to be submitted to
the Authority within 30 days of an executed Agreement and 2) the Feasibility Study shall be
completed within 60 days following the approval of the Executive Summary. HDR’s fee estimate is
based on the assumptions detailed above and provided on a time and materials basis for a not-toexceed fee of $42,987 including the separate initial Executive Summary. Without the separate
initial Executive Summary, the not-to-exceed fee would be $36,832.
HDR appreciates the opportunity to continue working with you. Please contact me at (415) 8146717 if you have any questions. Thank you.
Very truly yours,
HDR ENGINEERING, INC.
Michael G. Greenberg, P.E.
Vice President
Attachment
HDR
O ne Co mp a n y | M a n y S o l ut i o n s
Amy Gilleran, P.E.
Authorized Signatory
Michael G. Greenberg, P.E.
HDR National Practice Leader for Conversion Technologies
Professional Experience
Education
BS, Environmental Engineering,
Humboldt State University, 1985
Professional Registrations
Mechanical Engineer, M27800
HDR Tenure
24 + Years
Industry Tenure
25 + Years
Mr. Greenberg has more than 25 years of experience in the energy and solid waste
management fields. His experience includes assessment and review of solid waste
alternative/conversion technologies, independent engineering review of solid waste and energy
management related projects including assessment, engineering review and economic analysis.
Mr. Greenberg has been involved in several alternative/conversion technology procurements
and reviews, including those for the City of Los Angeles, City of San Jose, the Western Placer
Waste Management Authority, County of Salt Lake, Utah, and the Salinas Valley Solid Waste
Authority (SVSWA). He conducted an independent review of gasification technologies for
potential implementation in California for World Waste Technologies (WWT). Mr. Greenberg
recently assisted in testing an autoclave system for the SVSWA in conjunction with the US
Department of Agriculture and a private Ethanol Production Company. He has prepared
associated grant applications to research and test converting autoclaved municipal solid waste
into an ethanol product using a biorefinrery process. He has served as independent reviewer for
financial institutions in over $3 billion in project development including acting as the
California Pollution Control Financing Authority (CPCFA) independent reviewer for project
financing.
Conversion/Alternative Technology Experience
Alternative Technology Reference Facility Assessment for the City of Los Angeles.
Assessed various alternative technologies for handling solid waste though a detailed
procurement process for the City. Visited and observed operations of a number of the vendor’s
reference facilities throughout the world, including technologies representing anaerobic
digestion, gasification, plasma arc gasification, advanced thermal processing and aerobic
composting.
Plasma Arc Gasification Assessment for the Western Placer Waste Management
Authority. Prepared report updating gasification technology, more specifically Plasma Arc
Gasification (PAG) and InEnTec’s proposal to the Authority to build a facility to handle their
MSW. The report included the technical details of the PAG Technology, review of InEnTec,
identification of other PAG vendors, current business deals being offered, and other types of
conversion technologies available.
Request for Expressions of Interest/Statement of Qualifications and Request for
Proposals for Conversion Technologies for Salinas Valley Solid Waste Authority
(SVSWA). Johnson Canyon Resource Management Park, CA. Project Engineer. Prepared the
Request for Expressions of Interest/Statement of Qualifications procurement document for the
SVSWA; prepared a list of world-wide potential responders for submittal. Reviewed and
ranked responses from alternative technology vendors including plasma gasification,
gasification, pyrolysis, anaerobic digestion, waste-to-energy, MSW composting, and biofuel
technologies. Reviewed the respondents and short-listed and sent RFP to four companies.
Received responses from three companies. Have reviewed proposals, follow-up clarifications
and questions and conducted interviews. In the final selection process.
Request for Information (RFI) for Alternative Technologies for the City of San Jose.
Zero Waste Plan. Project Engineer. Reviewed and summarized responses, including the
“pros” and “cons” from alternative technology vendors including plasma gasification,
gasification, pyrolysis, and chemical depolymerization technologies. Met with City officials to
discuss responses. Prepared a supplemental memorandum discussing other alternative
technologies not proposed to the City including anaerobic digestion, biofuels, mechanical
autoclaving, etc.
Resource Recovery Technology Review for Salt Lake County, Utah. Project Engineer.
Assisted in the review process of waste processing and handling technologies available to Salt
Lake County. This includes anaerobic digestion, autoclaving, catalytic cracking, composting,
fluidized bed combustion, gasification, hydrolysis, mass burn combustion, material recovery
facilities (MRFs), mechanical biological treatment (MBT), plasma arch, pyrolysis, and refuse
derived fuel (RDF). HDR’s evaluation process included analysis and assessment of the
technology's history, operating experience, cost, sizing, and environmental risks. The review
also includes assessment of existing waste management policies and potential future
regulations, including recycling policies, handling e-waste, bans, etc. In addition our
work includes review of their existing solid waste management system; collection, transfer,
diversion, landfill, expenses, revenues, environmental risks, etc.
MSW Gasification Review. World Waste Technologies, Inc. (WWT). Project Manager.
Managed review and analysis of three gasifiers (EPI, Silvagas, and Envirepel) to assess which
has the best potential for accomplishing WWT’s goal. The project included review and
comparison of the technical feasibility, financial viability, ability to permit and operational
viability for the three gasifiers. Technical review included assessment of the heat rate/energy
efficiency for MSW, evaluation of required feedstock including accepted tolerances, review of
energy and mass balances, review of any auxiliary fuel requirements, review of balance of
plant equipment and infrastructure requirements, review of output gas characteristics, and
assessment of experience with technology using MSW as feedstock. Assisted in preparing an
economic analysis and comparison of the three technologies including development and
assessment of capital and operations and maintenance costs. The project included review of air
emissions data, characteristics of residuals from gasification, quantity and quality of
wastewater discharges, and consistency with California Integrated Waste Management Board
(CIWMB) and California Energy Commission (CEC) regulations for classification as a
renewable energy project and permitting. We also reviewed the operational viability of the
three gasifiers including operations experience and potential scalability of the technology.
Testing of CR3 Autoclave for SVSWA/US Department of Agriculture (USDOE). Crazy
Horse Landfill, Salinas, CA. Project Engineer. In conjunction with the USDOE and SVSWA,
we are conducting tests of the CR3 autoclave unit on various mixed and separated waste
streams to better understand the capabilities of the technology. Documenting waste type, water
and energy requirement, process temperatures and pressures, moisture content, and final
product consistency. We are further planning on testing the end product through gasification,
anaerobic digestion, composting, landfill including methane and ethanol generation.
MSW Composting Facility Engineering and Procurement, City of Springfield, Missouri.
Project Manager. HDR/BVA completed Phase I services that encompassed the selection of a
vendor for establishing a 500-TPD facility with recovery technologies and municipal solid
waste composting. HDR/BVA also outlined an integrated solid waste system plan for the City
that included the following components: household hazardous waste, curbside recycling,
materials recovery, public education, and market development. We also completed Phase II
services that included site visits, contract preparation, vendor negotiation, and detailed cost
analyses of the selected vendor. The project was placed on hold by the City prior to
construction due to odors and product quality issues.
MSW Composting Facility, City of Baltimore, Maryland. Project Engineer. Prepared an
independent engineering report in support of financing for a municipal solid waste composting
project developed by FERST Limited Partnership.
Michael G. Greenberg - Page 2
Feasibility of Waste-to-Energy Facitily in the City of Calcutta, India. Project Manager.
TRS Consulting Group. Conducted an investigation of the feasibility of implementing a 1000ton per day waste-to-energy facility in the City of Calcutta, India. Reviewed existing
information, directed a waste characterization study with the assistance of the University of
Calcutta, evaluated current practices, and performed a technology and economic review.
Critical Review of Wate-to-Energy Facility Lassen Community College. Project Engineer.
Combustion Engineering and First Interstate Bank. Assisted in review of Lassen Community
College’s failing 100-ton-per-day waste-to-energy plant, focusing on technical, institutional,
and regulatory issues. Also provided technical assistance during maintenance and sale of the
plant for First Interstate Bank. Reviewed technical issues related to the plant’s poor
performance including fuel supply and quality monitoring, composition of fly and bottom ash,
options for ash disposal, design and construction flaws, and start-up/shakedown data. Also
reviewed institutional and policy issues including appropriateness of the financing method;
quality of waste supply and energy sale agreements; monitoring of design, construction, and
start-up; and effect of the failure on the college’s financial standing. Reviewed the regulatory
structure and history of the project and appraised the property based on an analysis of project
economics, and operations and maintenance.
Fresno-Clovis Waste-to-Energy Feasibility Study. Project Engineer. Fresno-Clovis
Metropolitan Solid Waste Commission, California. Identified and evaluated available waste-toenergy technologies demonstrated to be technically and economically feasible, conducted
economic analyses for the various systems, and identified and examined financing options.
Based on the recommendations of our study and local interest, the county issued a request for
proposals for waste-to-energy technology firms to develop a project.
Pennsylvania Waste-to-Energy Facility Feasibility Study. Project Engineer. Mercer County,
PA. Provided all consulting services necessary to determine the feasibility of a 250-ton-per-day
municipal waste-to-energy facility for Mercer County, Pennsylvania. The plant planned to
provide steam to a local steel mill and cogenerated electricity to the local utility. On behalf of
the county and its 37 local governments, we completed the initial screening study and a
detailed feasibility study.
Independent Engineering Review Projects
Independent Engineering Review of MSW Composting Facility, State Street Boston
Capital Corporation. Project Engineer. HDR/BVA prepared a third-party due diligence report
for a proposed municipal solid waste composting project being developed by the FERST
Limited Partnership in Prince George’s County, Maryland. HDR/BVA evaluated waste supply,
recovered materials markets, permitting requirements, environmental regulations, and pro
forma assumptions. We also performed a review and analysis of the proposed front-end
material recovery and static pile composting technology (modified Voest-Alpine). The
proposed facility was designed to process 320 tons per day.
Independent Engineering Reviews for the California Pollution Control Financing
Authority (CPCFA). Project Manager. Managed eight independent engineering review
projects over a three-year period, including MRFs and transfer stations, composting facilities, a
medium-density fiberboard plant, and other solid waste equipment and projects for City of
Perris MRF, Athens Disposal MRF, Kaiser/Burrtec MRF, CanFibre MDF Facility, Calsan Inc.
Transfer Facility, as well as facility improvements and equipment acquisitions for Western
Waste Industries, Cal Waste, and Gilton Solid Waste Management, Inc. All reviews included
development of detailed economic analyses.
Independent Engineering Review of Maine Waste-to-Energy Facility. Project Engineer.
Security Pacific Bank. Maine Energy Recovery Company (MERC) proposed a waste-to-energy
facility that would process municipal solid waste into a refuse-derived fuel and burn it to
generate about 22 MW of electricity. Performed an engineering review to identify and evaluate
Michael G. Greenberg - Page 3
the major project risks of the MERC facility. Subsequent to this review, we performed regular
operations monitoring on an ongoing basis.
Independent Engineering Review of Carolina LP Waste-to-Energy Facility. Project
Manager. Wilson and Kirston, North Carolina. Managed the review and preparation of an
independent engineering report so financiers could decide whether to continue support of the
project. The review included an analysis of waste quantity deliveries, costs, and potential
revenues from tipping fees and electric sales; analysis of competing facilities; review of
technical and environmental permits; and review of the overall economic life cycle.
Independent Engineering Review of Haverhill-Lawrence RDF/Waste-to-Energy Facility.
Project Engineer. SBR Associates (a joint venture of Citicorp and Bank of New England).
Reviewed and evaluated operations problems at an existing RDF and a corresponding wasteto-energy power plant in northeastern Massachusetts. Also evaluated a proposed plan for a new
mass burn facility. Determined the expected capacity factor for the existing facility based on
operating and maintenance procedures, boiler specifications, and results of fuel tests.
Evaluated the operator’s major repair budget in light of actual and potential capacity factors.
Also reviewed the existing landfill and evaluated effects on the landfill of waste streams
resulting from the existing and proposed facilities; evaluated the economic and operational
impacts of proposed changes at the old plant; reviewed and evaluated the proposal for the new
facility in terms of costs, technical feasibility, the operator’s ability, and effect on the landfill.
Independent Engineering Review and RFQ/RFP Preparation Services for Wate-toEnergy Facility, City and County of Denver, Colorado. Project Engineer. HDR/BVA
provided third-party engineering review services in the analysis, development, and
procurement of a 450 TPD waste-to-energy and waste processing facility. Our work included
reviewing the cost estimates for the proposed technology systems and an in-depth analysis of
the financial projections prepared for the project. HDR/BVA assisted the city and county of
Denver draft an RFQ and RFP for a full-service, waste-to-energy contractor.
Independent Engineering Review of the Tracy Materials Recovery and Transfer Facility,
Banque Nationale du Paris. Project Manager. Managed a complete third-party review in
support of the financing of a 500-TPD materials recovery and transfer station. Contractual,
technical, economic, regulatory, waste supply and competition issues were all reviewed and
analyzed. Also reviewed construction progress and invoicing for the development of a 500TPD materials recovery facility. Met monthly with Tracy Delta Disposal and their
construction contractor to discuss issues and work out associated problems to maintain the
schedule and construction budget.
Independent Engineering Review of Riverside County Solid Waste Transfer Station.
Project Manager. Riverside County, California. Managed the review and preparation of an
independent engineer’s report in support of financing for Union Bank of California. The report
included a review of technical issues, permitting and environmental waste quantity deliveries,
contracts, capital and operating costs, and economic pro formas.
Independent Engineering Report for Solid Waste System, Salinas Valley Solid Waste
Authority, California. Project Manager. Prepared an engineering report to support $9 million
in revenue bonds. Reviewed the Authority’s waste management system, disposal capacity,
permits, control of waste stream, waste generation, and disposal quantities. Conducted a
competing facilities analysis, reviewed the Authority’s capital plan, and projected operating
results.
Independent Engineering Review of an Integrated Waste Management Facility, Santa
Cruz County and the Cities of Watsonville and Scotts Valley, California. Project Engineer.
HDR/BVA reviewed plans for a proposed 200-TPD clean integrated waste management
facility and a service center/landfill. We provided the County-City group with an independent
analysis of each of the facility concepts and, where appropriate, developed new information
and/or assumptions for estimating the costs of the conceptualized facilities. Our review
covered technical, economic, environmental, and contractual issues.
Michael G. Greenberg - Page 4
Materials Recovery and Composting Facility Independent Engineering Review, U.S.
West Financial Services. Project Engineer. HDR/BVA evaluated the technical,
environmental, and operational elements of a 600-ton-per-day, $55 million municipal waste
processing system that extracted recyclable materials and composted waste. The composting
portion of the facility was closed, and HDR/BVA played a key role in the negotiations with the
operator and the client-cities to continue operation of the facility as solely a transfer station to
provide a short-term, revenue-producing use while we developed long-term solutions.
Biomass-to-Energy Project Review, Ultrapower III Blue Lake, California. Project
Engineer. Bank of America. Conducted an independent engineering review of a 10MW
traveling grate wood-fired facility for project financing. The review included analysis of
available fuel supply, environmental assessment, technical review, construction monitoring,
performance testing, contract review, economic analysis.
Independent Engineering Review, Biomass-to-Energy, Honey Lake Power Plant, AT&T
Capital Corporation. Project Engineer. HDR/BVA performed an independent engineering
review to help AT&T evaluate its proposed investment in the Honey Lake 30 MW wood-fired
power plant project. HDR/BVA's work included resource, contracts, technical, environmental,
and economic review, as well as construction monitoring and performance test monitoring.
Biomass-To-Energy Independent Engineering Review, CIBC. Project Manager. HDR/BVA
performed an independent engineering review in support of the refinancing of the CHOW I
woodwaste facility in Chowchilla, California. HDR/BVA investigated technical,
environmental, economic, and operating issues at the facility, which uses a multiple-hearth
technology to burn almond shells to produce 12 MW of power. We also provided periodic
monitoring.
Urban Wood Waste-to-Energy Independent Engineering Review, Canadian Imperial
Bank of Commerce. Project Engineer. HDR/BVA provided independent engineering services
to support an $85 million bond issue for an urban wood waste-to-energy project in Genesee,
Michigan. HDR/BVA investigated the resource, contract, technical, environmental, and
economic issues associated with establishing two urban wood waste processing centers and a
35-MW wood-fired power plant.
Biomass-to-Energy Project Review, Ultrapower II Westwood, California. Project
Engineer. Citicorp. Conducted an independent engineering review of a 9.75MW wood-fired
facility for project financing. The review included analysis of available fuel supply,
environmental assessment, technical review, construction monitoring, performance testing,
contract review, economic analysis.
Biomass-to-Energy Project Review, Ultrapower I Burney, California. Project Engineer.
Citicorp. Conducted an independent engineering review of a 9.75MW wood-fired facility for
project financing. The review included analysis of available fuel supply, environmental
assessment, technical review, construction monitoring, performance testing, contract review,
economic analysis.
Biomass-to-Energy Project Review, Diamond Energy, Lyonsdale, New York. Project
Engineer. SANWA Limited. Conducted an independent engineering review of a 19MW
traveling grate wood-fired facility for project financing. The review included fuel supply
review, environmental assessment, technical review, contract review, economic analysis.
Biomass-to-Energy Project Review, Viking Energy, Lincoln, Michigan. Project Engineer.
Bank of New England. Conducted an independent engineering review of a 16.3MW traveling
grate wood-fired facility for project financing. The review included analysis of available fuel
supply, environmental assessment, technical review, construction monitoring, performance
testing, contract review, economic analysis.
Biomass-to-Energy Project Review, Viking Energy, McBain, Michigan. Project Engineer.
Bank of New England. Conducted an independent engineering review of a 16.3MW traveling
grate wood-fired facility for project financing. The review included analysis of available fuel
Michael G. Greenberg - Page 5
supply, environmental assessment, technical review, construction monitoring, performance
testing, contract review, economic analysis.
Biomass-to-Energy Project Review, Viking Energy, Northumberland, Pennsylvania.
Project Engineer. Security Pacific. Conducted an independent engineering review of a
16.2MW traveling grate wood-fired facility for project financing. The review included
analysis of available fuel supply, environmental assessment, technical review, construction
monitoring, performance testing, contract review, economic analysis.
Biomass-to-Energy Project Review, Madera, CA. Project Engineer. CIBC, Inc. Conducted
an independent engineering review of a 23 MW bubbling fluidized bed biomass-fired facility
for project financing. The review included fuel supply review, technical review, and economic
analysis.
Biomass-to-Energy Project Review, Pacific Lumber Company, Scotia, CA. Project
Engineer. Bank of America. Conducted an independent engineering review of a 20MW
traveling grate wood-fired facility for project financing. The review included fuel supply
review, environmental assessment, technical review, contract review, economic analysis.
Biomass-to-Energy Project Review, Burney Forest Products, Burney, CA. Project
Engineer. Nat West Bank. Conducted an independent engineering review of a 28MW fixed
grate wood-fired facility for project financing. The review included analysis of available fuel
supply, environmental assessment, technical review, construction monitoring, performance
testing, contract review, economic analysis.
Biomass-to-Energy Project Review, Pacific Lighting, Oroville, CA. Project Engineer. Nat
West Bank, Swiss Bank, Citicorp, Morgan Stanley. Conducted an independent engineering
review of an 18MW fixed grate wood-fired facility for project financing. The review included
fuel supply review, environmental assessment, technical review, contract review, and
economic analysis.
Biomass-to-Energy Project Review, Redding Power, Redding CA. Project Engineer. Nat
West Bank. Conducted an independent engineering review of a 23MW fixed grate wood-fired
facility. The review included fuel supply review, environmental assessment, technical review,
contract review, economic analysis construction monitoring, and performance testing.
Biomass-to-Energy Project Review, TEDCO, Tracy CA. Project Engineer. Habert Cogen
Inc. Conducted an independent engineering review of a 21MW CCZ-type biomass-fired
facility for project financing. The review included fuel supply review, technical review,
processing and transportation analysis, and economic analysis.
Performance Testing Biomass-to-Energy Project, Constellation Energy, Chinese Station,
CA. Project Engineer. Citicorp. Conducted a performance test of a 20MW bubbling fluidized
bed type biomass-fired facility.
Biomass-to-Energy Project Review, Terra Bella, CA. Project Engineer. Citibank.
Conducted an independent engineering review of a biomass-fired facility for project financing.
The review included fuel supply review, technical review, and economic analysis.
Due Diligence Review of 170-MW Cogeneration Plant, Security Pacific Bank and U.S.
West Financial Services. Project Engineer. HDR/BVA performed an independent engineering
review on behalf of a financial institution to evaluate two 85 MW gas-fired cogeneration
projects near Las Vegas, Nevada. The projects each consisted of three aeroderivative
combustion gas turbines, heat recovery steam generators, steam turbine generator, and water
treatment systems. Hot gas from the turbines will be used in the drying process for gypsum
board. HDR/BVA performed a detailed review of all project contracts and agreements, permit
status, technology review, and financial and risk analyses, and submitted a report to the
financial institution with engineering opinions on these issues.
Michael G. Greenberg - Page 6
Michael G. Greenberg - Page 7