Thursday, March 10, 2011 10:14:56 AM
New SEC Filing. More Restructuring
STATE OF NEV/ HAMPSHIRE
BEFORE THE
SITE EVALUATION COMMITTEE
APPLICATION OF LAIDLAW BERLIN BIOPOWER, LLC FOR A CERTIFICATE OF SITE
AND FACILITY
DOCKET NO. SEC
JOINT MOTION OF LAIDLAW BERLIN BIOPO\üER. LLC AND BERLIN STATION.
LLC FOR TRANSFER AND AMENDMENT OF THE CERTIFICATE OF SITE AI\D
FACILITY. AND NOTICE OF CIIANGE IN MAJOR CONTRACTOR
Laidlaw Berlin BioPower, LLC and Berlin Station, LLC, respectfully submit this Motion
to Amend the Certificate of Site and Facility and Notice of Change in Major Contractor, and
state as follows:
Introduction
On Novernber 9,2010, the New Hampshire Site Evaluation Committee issued its
Decision Granting Certificate of Site and Facility with Conditions ("Decision") and Order and
Certificate of Site and Facility with Conditions ("Certificate") to Laidlaw Berlin BioPower, LLC
("Laidlaw") in the above-captioned matter. Since the time Laidlaw presented its application to
the subcommittee of the Site Evaluation Committee (the "subcommittee"), Laidlaw has been
working diligently with its lenders to secure the financing necessary to construct the Project.
The New Hampshire Public Utilities Commission is currently reviewing the Power Purchase
Agreement (PPA). If the PPA is approved in substantiallythe same form as it was submitted,
and this Subcommittee acts favorably on this Motion, Laidlaw expects the financing will close
shortly thereafter.
The financing and continued engineering efforts have necessitated changes to the Project.
Several require Subcommittee approval and one, as Laidlaw understands, requires only notice to
the Subcommittee.
First, as anticipated at the hearings,' the lenders require some corporate reorganization.
NewCo Energy, LLC, the same entity presented at the hearings to the Subcommittee, will remain
at the top of the corporate structure. A new corporate entity will be formed to replace both PJPD
Holdings, LLC and Laidlaw Berlin BioPower, LLC. The Applicant believes this corporate
consolidation simplifies the Project structure while also strengthening it by having a single entity
own the land, the facility, be the party to all contracts and, pursuant to Subcommittee approval,
the Certificate holder.
Second, Laidlaw is providing notice of a change in "major contractors providing
construction, operation, or management services". ^See
Decision at 53. In response to the request
of the lenders, Laidlaw intends to replace Homeland Renewable Energy and Fibrowatt
Operations,LLC (collectively "Homeland") with large, well recognized engineering firms who
have very significant experience constructing and operating energy projects, including in New
Hampshire.
Third, Laidlaw requests that the Certificate be amended to permit it to contract with an
entity other than Cousineau Forest Products to serve as its fuel supplier. The ultimate fuel
supply contract will be materially the same as the draft Cousineau Fuel Supply Agreement
presented to the Subcommittee [Laidlaw Exhs. 62,63, and 76Af, including the stipulation and
sustainability conditions that are a condition to the Certificate.
Finall¡ in addition to the changes driven by the financing process, Laidlaw is also
requesting that the Subcommittee amend the Certificate to reflect an increase in the facility's
gross power generatingrute from 70 MW to 75 lvIW. This increase is purely a function of
improved efficiency. Based on the final project engineering, Babcock & Wilcox has determined
t Transcript Day 3, P.M. Session at98:4-701:2.
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that greater operating efficiencies can be achieved with the existing boiler. This change will not
alter the Project's impacts to the environment, public health or safety as presented in the
Application and reviewed and approved by the Subcommittee. More specifically, this efficiency
increase will have no effect on the amount of wood consumed, air emissions, truck traffic or any
other similar project parameters. Consequently, Laidlaw is requesting that the Certificate be
amended, consistent with the pending ISO-New England Interconnection Request,'to reflect the
increased potential output.
Laidlaw is submitting pre-filed testimony in support of these changes simultaneously
with this Motion as exhibits to the Motion. Mr. Keith Mueller of Cate Street Capital testifies on
the corporatereorganization. Exhibit 1. Mr. Raymond Kusche of Laidlaw and Cate Street
Capital testifies on the change in major contractor and the increase in the Facility's gross power
ouþut. Exhibit 2. Finally, both Mr. Kusche and Ross D'Elia of the Richard Carrier Trucking
goup of companies, testiff on the replacement of Cousineau Forest Products as Laidlaw's fuel
supplier. Exhibit 3.
I. Revisions to Corporate Structure
A. Summary and Purpose of Reorganization
The lenders have required certain corporate restructuring for financing purposes. As
previously described to the Subcommittee, the Project expects to obtain financing from the
private placement market as well as from New Market Tax Credit (NMTC) lenders. The
corporate structure has been modified to accommodate both sets of lenders.
NewCo Energ¡ LLC, the
",rrr"it
owner, will remain the principal owner. Laidlaw
Berlin BioPower, LLC and PJPD Holdings, LLC will be replaced by a new single purpose entity
'Attached as Exhibit 4. A separate motion has been filed, which accompanies this motion, and requests
confidential treatment for Exhibit 4.
-J("
SPE"). An organizational chart depicting the new corporate structure is attached. See Exhibit
5.' Mr. Bartoszek testified during the hearing that this t¡pe of reorganization is t¡pical and may
be required by the lenders. See Transcript Day 3, P.M. Session at97:24-l0l.2.
The creation of new SPEs is a coÍlmon practice in limited-recourse financing
transactions. According to Standard & Poor's Criteriaþr Special Purpose Entities in Project
Finance Transactions;
Standard & Poor's believes that the preservation and protection of the project and
the other collateral from extraneous, non-project risk is of prime importance to
investors. Such risks threaten the fulI and timely repayment of debt service,
which, of course, is the basis of Standard & Poor's bond rating.
James Penrose, Esquire, Standard & Poor's RatingsDirect, November 20,2000 at page 2. The
revised corporate structure is consistent with this Standard and Poor's criteria and will help
facilitate the Project financing. In practice, this structure permits the rating agencies and lenders
to focus exclusively on the economic features of the Project.
In addition, some of the corporate restructuring is driven by tax requirements associated
with the NMTC lenders. The specific NMTC rules as well as the specific structural features
proposed in response to those rules are set forth in greater detail below.
B. Specifìcs of the Reorganization
NewCo Energ¡ LLC, the primary owner of the Project as presented to the
Subcommittee, will own NewCo Energy Holdings, LLC.' NewCo Energy Holdings, LLC will
own BBP Holdings 7,LLC and Burgess Holding, LLC.
r The existing corporate organizational chart, designated Laidlaw 8 at the hearings, is also attached for
comparison purposes.
a NewCo is currently in preliminary discussions with a party who is contemplating purchasing an
ownership interest in NewCo Holdings, LLC. These discussions are in the early stages and it is unclear at
this point whether a deal will be consummated. Applicant raises this issue here because of the Certificate
condition requiring notification of a change in the ownership structure. Order at3.
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CSC Group Holdings, LLC will own BBP Holdings 2,LLC. CSC Group Holdings is the
same entity identified at the hearing as one of the investors in NewCo Energy, LLC. See
Committee Exhibit 1.
Berlin Station, LLC ("Berlin Station") will replace PJPD Holdings, LLC ("PJPD") and
Laidlaw Berlin Biopower, LLC ("LBB"). In essence, the prior attributes and responsibilities of
PJPD and LBB will all be consolidated into Berlin Station. Berlin Station will own the facility,
the real property, be the party to all the contracts (PPA, fuel supply, EPC, O&M, etc.) and the
Certificate holder.
BBP Holdings #1, LLC will own99o/o of Berlin Station and BBP Holdings #2,LLCwlll
own 10lo of Berlin Station. The reason for this arrangement is that NMTC rules prohibit Berlin
Station from being a "disregarded entity'' for federal income taxes. This in turn requires Berlin
Station to be owned by at least two members with different ultimate ownership.
While Berlin Station retains ultimate ownership and responsibility for the Project, NMTC
rules prohibit Berlin Station from directly operating the Project. To accommodate this
requirement, Berlin Station will lease the facility to Burgess BioPower, LLC (Burgess) pursuant
to a site and facility lease (the "Facility Lease"). Berlin Station will also enter into a "Right of
Use Agreement" with Burgess pursuant to which Burgess shall have the right to use the contracts
required to operate the Project (PPA, fuel supply, EPC, O&M, etc). Burgess will administer the
Certificate and the contracts, and function as the facility manager on behalf of Berlin Station,
subject to the terms of the Facility Lease and Right of Use Agreement.
The Applicant recognizes and understands that regardless of what type of management
structure Berlin Station establishes in order to satisff the lenders and obtain the financing, as the
proposed holder of the Certificate, it will have ultimate responsibility for ensuring complete,
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ongoing compliance with all the Certificate's terms and conditions. Accordingly, Burgess's
rights under the Facility Lease and Right of Use Agreement will be expressly subject to
Burgess's compliance in all respects with the terms and conditions of the Certificate. Moreover,
Berlin Station, Burgess and NewCo Energy, LLC are all willing to be bound by the terms and
conditions of the Certificate.
The Applicant believes that combining the attributes and responsibilities of PJPD and
LBB addresses one of the concerns originally expressed by the Subcommittee,' thus
strengthening the Projel. Likewise, the Subcommittee placed weight on the fact that "the senior
management of the Applicant, NewCo, Aware and LBB are highly qualified for raising capital
for construction and operation of the facility." Decision at 47. ln fact, those same highly
qualified persons remain in place in this new structure and the Applicant now believes it has
reached the point where, if the PPA is approved and this Subcommittee acts favorably on this
Motion, the financing will close shortly thereafter.
il.
Manaeement Services.
A. Background Information
The Subcommittee imposed the following requirement in its Decision:
In order to ensure that the Facility will be constructed and operated in accordance with
represented set of skills, the Subcommittee requires the Applicant to notify the
Subcommittee of any changes in major contractors providing construction, operation, or
management services for the Facilities.
Decision at 53. Pursuant to this condition, Laidlaw is providing notice of its intent to replace the
entities that were originally contemplated to provide construction and operation services.
s^See Decision at 46-47 .
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Laidlaw intends to replace Homeland with a team of highly qualified entities who will
provide top-notch, proven construction and operational expertise. This replacement is occurring
at the prompting of the lenders to add even greater technical and operational strength to the
Project team. The replacement team will consist of the following entities:
o Waldron Engineering and Construction, lnc. ("'Waldron") will serve as construction
engineer with primary responsibility for overseeing the EPC Contractor - the Babcock &
Wilcox Construction Company ("Babcock & Wilcox") - managing construction on
behalf of the owner and ensuring compliance with the terms and conditions of the
Certificate; and
o Delta Power Services, LLC ("Delta Power"), a wholly owned subsidiary of Babcock &
Wilcox, will serve as the operations and maintenance contractor on behalf of the owner
and ensure compliance with the terms and conditions of the Certificate.
In addition to the deep experience provided by Waldron and Delta Power, the Shaw
Group ("Shaw") will also assist with construction oversight, as described below. The project
technical team will also continue to rely on the expertise of Babcock & Wilcox and the Laidlaw
Advisory Board as previously outlined in the SEC hearings. The Laidlaw Advisory Board will
continue to consist of NewCo personnel with substantial technical and managerial experience in
the power industry. The Laidlaw Advisory Board will remain in place, with the same people, at
the conclusion of the corporate reorganization described herein, and play the same role as
initially contemplated.
Finally, as discussed at the SEC hearings, Black &Veatch will continue to serve as the
Independent Engineer with primary responsibility for overseeing construction on behalf of the
lenders and ensuring compliance with all regulatory requirements and technical specifications.
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See Transcript at Day 5 A.M. (Augus|27,2010) at 87-88. Black & Veatch will not be under the
direction and control of the Certificate holder, but it will provide an additionallayer of oversight.
B. Specific Information About Team Members
W'aldron is a New Hampshire-based engineering and construction management firm with
extensive experience in the biomass and power industry. Its work has included serving as the
independent engineer on behalf of Con Edison Development at the 535 MW Newington Energy
Facility, where it supervised the design, construction, commissioning and testing of the plant.
Waldron also served as owner's engineer at a45 MW biomass plant in Edmundston, New
Brunswick. More detailed information about Waldron is attached as Exhibit 6. In addition,
Waldron has been periodically involved in this Project since its inception and has significant,
direct proj ect experience.
Jack Howarth will lead
'Waldron's
team. His resume is attached. See ExhibitT. If the
Subcommittee so desires, Laidlaw will provide a copy of the final, unexecuted construction
management agreement with'Waldron (for which it would seek confidential treatment). The
parties will execute this agreement at the conclusion of this proceeding.
Shaw will support Waldron as owner's engineer with respect to supervision of plant
construction. Shaw is a leading global provider of comprehensive services to the power, process,
and environmental and infrastructure industries. Headquartered in Baton Rouge, Louisiana,
Shaw employs 27,000 people and has offices around the world. Since 1974, Shaw has built
projects of various sizes and complexities, primarily for the refining, petrochemical, pipeline,
pulp and paper, and electric power industries. Shaw has engineered many biomass processes
with state-of-the-art technologies using renewable fuel sources.
8
Laidlaw anticipates that Theodore Wong will lead Shaw's team. His resume is attached.
See Exhibit 8. Detailed information about Shaw is also attached. See Exhibit 9. If the
Subcommittee so desires, Laidlaw will provide a copy of the final, executed agreement that it has
negotiated with Shaw (for which it would seek confidential treatment).
Delta Power is the fourth-largest power operation and maintenance services provider in
the United States. Delta Power is a wholly owned subsidiary of Babcock & Wilcox, the EPC
contractor for the Project. Delta Power has extensive experience providing operating and
maintenance services to power stations, including currently providing service to nine power
facilities in six states. Delta Power operates three solid fuel projects, including a 40 MW woodchip
biomass plant. Delta Power currently employs approximately 320 people.
Delta Power will be responsible for plant staffing,u plant operations and maintenance, and
all accounting and financial reporting. Laidlaw anticipates that Pete Sessler will be the person at
Delta Power with direct responsibility for the Project. His resume is attached. See Exhibit 10.
Detailed information about Delta Power is attached. See Exhibit 11. If the Subcommittee so
desires, Laidlaw will provide a copy of the final, unexecuted agreement that it has negotiated
with Delta Power (for which it would seek confidential treatment). Laidlaw will execute this
agreement at the conclusion of this proceeding.
Black & Veatch will serve as the Independent Engineer for the lenders with responsibility
for ensuringthat construction occurs properly and in conformance with all technical and
regulatory specifications. Black &Veatch is a leading global engineering, consulting and
construction company. SeeExhibit12. Founded in 1915, Black & Veatch currentlyhas a global
workforce of more than 8,600 working in over 100 offices worldwide with projects completed in
6 Using Delta Power will not change any commitments Laidlaw has made regarding local hiring.
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more than 100 countries on six continents. ,See Transcript Day 5 A.M. (August 27,2010) at87-
88.
fn sum,'Waldron, working in conjunction with Babcock &'Wilcox, Shaw and Laidlaw
personnel, will oversee construction of the facility and ensure compliance with all Certificate
terms and conditions. Babcock & Wilcox, as the EPC contractor, is also contractually bound to
comply with all the terms and conditions of the Certificate. Once construction is completed,
Delta Power will assume operational responsibility, overseen by Laidlaw (or its successors) and
its Advisory Board. Laidlaw expects that because Babcock & Wilcox and Delta Power are both
Babcock & Wilcox companies, that relationship will help facilitate a smooth transition from the
construction phase to the operational phase.
Laidlaw submits that collectivel¡ it has assembled an extraordinarily strong team that is
more than capable of replacing Homeland and Fibrowatt. There can be no doubt that this team
has the technical and managerial capability to ensure construction and operation of the facility in
compliance with the terms and conditions of the Certificate.
m. Change in Fuel Supplier
The Certificate provides that "the Applicant shall not commence construction until such
time that it has filed, with the Subcommittee, a signed Fuel Supply Agreement with Cousineau
Forest Products materially consistent with Laidlaw Exhs. 62,62 [sic] and 73A Co¡ænpNtnr."
The Decision requires Laidlaw to enter into a Fuel Supply Agreement with Cousineau, materially
consistent with the one presented to the Subcommittee during the hearing. Laidlaw Exhs. 62,63
and73{. The Decision is predicated largely on the material elements of the agreement (e.g.
length of the Fuel Supply Agreement (20 years); providing financial stability for Laidlaw, the
incorporation of the Sustainability Conditions into the Fuel Supply Agreernent; etc.).
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Laidlaw requests that the Certificate be amended to state as follows: "the Applicant shall
not commence construction until such time it has filed, with the Subcommittee, a signed Fuel
Supply Agreement materially consistent with Laidlaw Exhs. 62,63 and731. CoNFDENTIAL."
Pursuant to the amendment, Laidlaw would be permitted to enter into a Fuel Supply Agreement,
materially consistent with Laidlaw Exhs. 62,63 and73A Cowrn¡Nnet, with an entity other
than Cousineau. Laidlaw will file that Fuel Supply Agreement with the Subcommittee prior to
the commencement of construction.
Laidlaw seeks this amendment because it wishes to replace Cousineau with Richard
Carrier Trucking, lnc. and its associated companies ("RCT"). RCT is substantially larger than
Cousineau and consequentl¡ has greater logistical and financial wherewithal to meet the
requirements of the Project.
RCT was established in 7974. It is an environmentally conscious, integrated forest
products goup of companies, all owned by Richard Carrier. RCT has large manufacturing and
service operations located in Milan, Henniker, Shelburne, and Brentwood, New Hampshire, as
well as numerous facilities throughout Maine and eastern Canada. RCT owns and operates
lumber mills, chipping facilities, timber holdings, pallet manufacturing, and landscape/mulching
operations, all of which are fully supported by an extensive forest product shipping and handling
distribution system.
The RCT goup is comprised of over 10 operating entities in New Hampshire alone,
including two of the State's largest sawmills: Milan Lumber Co in Milan (located 9 miles from
Berlin) and HHP, Inc. in Henniker; a chipping company, R.J. Chipping Enterprises in Shelbume
(14 miles from Berlin); and abark and mulch business, P.R. Russell Brentwood Distribution,
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LLC, in Brentwood. RCT currently procures and transports in excess of 1.5 million tons of
woodchips annually to a diverse client base.
To effectively process and distribute the various forest products, RCT can call upon its
locally owned fleet of over 75 tractors and more than 150 specialized trailers, as well as dozens
of associated loading and processing heavy machinery and equipment. RCT provides access to
wood supply and trucking capabilities as well as extensive and diversified handling and storage
abilities.
RCT's livelihood is dependent on the sustainability of wood supply and on the local
forests remaining healtþ and productive. As a result, RCT has a strong commitment to
responsible foreshy and best management practices, including within its own staff of statelicensed
foresters, its woodlots, and as well as within its manufacturing operations.
IV.
A. Background Information
Laidlaw originally anticipated that its gross output would be 70 MW and sought a
Certificate predicated on that figure. As Ray Kusche testified during the hearing, however,
Babcock & Wilcox has determined that the boiler can actually efficiently produce more energy
than 70MV/ and therefore Laidlaw has applied to ISO-NE for an increase in output. Transcript,
Day 4 PM Session (August 26,2010) at 15-16; see also Exhibit 4. This increase in power output
is purely an efficiency increase and will not affect the emissions or wood supply needs for the
Project.
Refinement and optimization of the Project's design and operating parameters has
occurred throughout the development process. ,See Transcript, Day 2, AM Session (812a12010)
at 5l-52. Laidlaw's engineers have achieved improved performance while not increasing the
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amount of fuel to be used, or otherwise increasing the Project's impacts. Increasing the power
output of the plant involved the following factors:
. The boiler steam output temperature has been slightly increased, while reducing the total
steam output flow rate. The increased steam temperature at the turbine, even with the
reduced steam flow, gives a net increase in ouþut due to the increased turbine efficiency.
Although the temperature is increased slightly, the decrease in total stçam ouþut flow
maintains the heat input rate as presented in the Application, and hence the same fuel
input rate and annual consumption.
. Laidlaw had planned to use a used steam turbine generator. Laidlaw has instead decided
to use a new steam turbine generator. Due to its age, a used steam turbine generator
would have had a significantly lower efficiency than a new machine.
. Laidlaw's engineers are also optimizing the steam turbine generator's exhaust pressure
by further refining the design of the water cooled condenser and mechanical draft cooling
tower. These refinements will cause the operating temperature of the water cooled
condenser to be reduced, thus lowering the turbine's exhaust pressure. At the same inlet
pressure, a lower exhaust pressure indicates that the useful work done by the steam (in
this case the power produced) will increase. These refinements further confirm that the
power output can be increased while maintaining other operating parameter assumptions
that correlate to the Project's impacts as discussed below.
. Laidlaw has selected a lowloss generator step-up transformer, further improving overall
project efficiency.
In sum, the evolution of the Project's design has allowed Laidlaw's engineers to achieve
a higher operating efficiency for the plant than originally planned, and to confirm that the plant
can generate a gross ouþut of up to 75 MW. The resulting improvements bring overall benefits
by increasing the power generated per ton of fuel used, and reducing air emissions, water
consumption and other collateral impacts per unit of power produced.
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B. Impacts of Proposed Increase Ín Power Output
1. Air Emissions
As noted previously, the design and operating refinements that lead to the increased
power output will not change the boiler's heat input rate from the short term (i.e. hourly) and
annual levels presented in the Application. Assuming that all the fuel parameters rernain as
presented in the Application and reviewed during the hearings (heating value, moisture content,
etc.), the fuel consumption of the Project is directly related to the heat input, and thus will not
change. [n turn, the boiler's air emissions, expressed in terms of pounds emitted per million Btu
of heat input, are directly proportional to its heat input rate and will not be altered by the
increased porwer ouþut.
The Project's mechanical draft cooling tower is also a source of air emissions due to
particles contained in water droplets discharged from the unit's exhaust, commonly referred to as
"drift". The drift and water vapor contained in the exhaust can also result in ground level
fogging and icing if not properly designed. As discussed below with regard to the water
consumption and wastewater, the quantity of drift and water vapor discharged from the tower
will remain within the levels presented in the Application. Thus, the tower's particulate
emissions will remain unchanged and the tower will not cause ground level fogging or icing on
nearby roadways as determined by the modeling conducted for the Project.
In sum, the increased ouþut will not result in an increase in emissions of any pollutant.
In addition, the change in output itself is not an issue under the air permit; therefore, the Air
Permit does not require amendment.
-t4-
2. Truck Traffic
The number of truck trips required to supply fuel to the Project is directly tied to the
quantity of fuel used. Since the heat input rate of the Project will not change, the fuel
consumption rate will remain unchanged. Accordingly, the number of tmcks required to deliver
fuel to the Project will remain as presented in the Application.
3. 'Water Consumption and Wastewater Discharge
The overwhelming majority of the Project's water consumption and wastewater discharge
is related to the mechanical draft cooling tower used to supply cooling water to the steam
condenser on the discharge of steam turbine generator. The refined system's design and heat
balance calculations developed by Laidlaw's engineers confirm that the operating parameters
that affect water consumption and discharge from the cooling tower, including water
recirculation rate, heat rejection rate, and water blow down rate, are all less than or equal to the
values set forth in the Application. As these parameters will not increase, neither will the water
consumption or wastewater discharge.
4. Aesthetics
The increased power output results from optimization of the Project's steam cycle and the
use of more efficient equipment. It will not materially change the size or appearance of the
Project's structures as presented in the Application, and will not alter the visual impacts of the
Project.
5. Noise
The proposed increase in power output from the Project only impacts the steam turbine
generator itself; there are no changes in other sources of sound such as the boiler, cooling tower,
on-site wood handling equipment, etc. The acoustic emissions of the steam turbine were derived
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from an algorithm that relates the gross electrical generating rating ofthe steam turbine generator
to the sound po\ryer level as referenced in Table (hX3XiÐ-6 contained in the Application. Based
on this algorithm, the increase in the megawatt rating of the steam turbine has a negligible
increase in the sound power level produced by the turbine (less than % decibel). As a result, the
ultimate effect on sound impacts in the community and at the property line, when taken in
combination with the relative contributions of other sources of sound associated with the Project
(e.g. the cooling tower, the front end loaders, etc.) and the sound insulating characteristics of the
building housing the turbine, will be negligible (less than a 0.1 decibel increase).
6. Other Environmental, Health & Safety Impacts
The proposed increase in power ouþut will not result in alterations to the site layout,
location, waste generation, or chemicals used, and thus will not have any adverse impacts to
other environmental, health or safety considerations such as wetlands,habitat, or community
safety.
For all of these reasons, the proposed increase in power output from the Project will not
alter any of the findings made by the Subcommittee in the Certificate. Accordingly, Laidlaw
requests that the Subcommittee amend the Certificate, consistent with the above-referenced ISO
filing (and contingent on ISO approval), to allow the facility to generate up to 75 MW gross.
WHEREFORE, Laidlaw respectfully requests the Subcommittee:
A. Grant this motion for transfer and amendment of the Certificate;
B. Transfer the Certificate to Berlin Station, LLC;
C. Amend the Certificate to incorporate the changes described herein; and
D. Grant such other and further relief as the Subcommittee deems fair and just.
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Resp ectfu lly submitted,
Laidlaw Berlin BioPower, LLC and Berlin Station, LLC
By Their Attomeys,
McLANE, GRAF, RAULERSON & MIDDLETON,
PROFES SrO)4']L AS S OCIATION
Date: March 9,2011 By:
GregoryH. Smith
Cathryn E. Vaughn
Eleven South Main Street
Concord, NH 03301
Telephone (603\ 226-0400
Certificate of Service
I hereby certifythat on this 9th day of March, 2}ll,Ihand delivered an original and
eighteen copies of this Motion to the Site Evaluation Committee and a copy to the office of the
Attorney General.
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STATE OF NEV/ HAMPSHIRE
BEFORE THE
SITE EVALUATION COMMITTEE
APPLICATION OF LAIDLAW BERLIN BIOPOWER, LLC FOR A CERTIFICATE OF SITE
AND FACILITY
DOCKET NO. SEC
JOINT MOTION OF LAIDLAW BERLIN BIOPO\üER. LLC AND BERLIN STATION.
LLC FOR TRANSFER AND AMENDMENT OF THE CERTIFICATE OF SITE AI\D
FACILITY. AND NOTICE OF CIIANGE IN MAJOR CONTRACTOR
Laidlaw Berlin BioPower, LLC and Berlin Station, LLC, respectfully submit this Motion
to Amend the Certificate of Site and Facility and Notice of Change in Major Contractor, and
state as follows:
Introduction
On Novernber 9,2010, the New Hampshire Site Evaluation Committee issued its
Decision Granting Certificate of Site and Facility with Conditions ("Decision") and Order and
Certificate of Site and Facility with Conditions ("Certificate") to Laidlaw Berlin BioPower, LLC
("Laidlaw") in the above-captioned matter. Since the time Laidlaw presented its application to
the subcommittee of the Site Evaluation Committee (the "subcommittee"), Laidlaw has been
working diligently with its lenders to secure the financing necessary to construct the Project.
The New Hampshire Public Utilities Commission is currently reviewing the Power Purchase
Agreement (PPA). If the PPA is approved in substantiallythe same form as it was submitted,
and this Subcommittee acts favorably on this Motion, Laidlaw expects the financing will close
shortly thereafter.
The financing and continued engineering efforts have necessitated changes to the Project.
Several require Subcommittee approval and one, as Laidlaw understands, requires only notice to
the Subcommittee.
First, as anticipated at the hearings,' the lenders require some corporate reorganization.
NewCo Energy, LLC, the same entity presented at the hearings to the Subcommittee, will remain
at the top of the corporate structure. A new corporate entity will be formed to replace both PJPD
Holdings, LLC and Laidlaw Berlin BioPower, LLC. The Applicant believes this corporate
consolidation simplifies the Project structure while also strengthening it by having a single entity
own the land, the facility, be the party to all contracts and, pursuant to Subcommittee approval,
the Certificate holder.
Second, Laidlaw is providing notice of a change in "major contractors providing
construction, operation, or management services". ^See
Decision at 53. In response to the request
of the lenders, Laidlaw intends to replace Homeland Renewable Energy and Fibrowatt
Operations,LLC (collectively "Homeland") with large, well recognized engineering firms who
have very significant experience constructing and operating energy projects, including in New
Hampshire.
Third, Laidlaw requests that the Certificate be amended to permit it to contract with an
entity other than Cousineau Forest Products to serve as its fuel supplier. The ultimate fuel
supply contract will be materially the same as the draft Cousineau Fuel Supply Agreement
presented to the Subcommittee [Laidlaw Exhs. 62,63, and 76Af, including the stipulation and
sustainability conditions that are a condition to the Certificate.
Finall¡ in addition to the changes driven by the financing process, Laidlaw is also
requesting that the Subcommittee amend the Certificate to reflect an increase in the facility's
gross power generatingrute from 70 MW to 75 lvIW. This increase is purely a function of
improved efficiency. Based on the final project engineering, Babcock & Wilcox has determined
t Transcript Day 3, P.M. Session at98:4-701:2.
-2-
that greater operating efficiencies can be achieved with the existing boiler. This change will not
alter the Project's impacts to the environment, public health or safety as presented in the
Application and reviewed and approved by the Subcommittee. More specifically, this efficiency
increase will have no effect on the amount of wood consumed, air emissions, truck traffic or any
other similar project parameters. Consequently, Laidlaw is requesting that the Certificate be
amended, consistent with the pending ISO-New England Interconnection Request,'to reflect the
increased potential output.
Laidlaw is submitting pre-filed testimony in support of these changes simultaneously
with this Motion as exhibits to the Motion. Mr. Keith Mueller of Cate Street Capital testifies on
the corporatereorganization. Exhibit 1. Mr. Raymond Kusche of Laidlaw and Cate Street
Capital testifies on the change in major contractor and the increase in the Facility's gross power
ouþut. Exhibit 2. Finally, both Mr. Kusche and Ross D'Elia of the Richard Carrier Trucking
goup of companies, testiff on the replacement of Cousineau Forest Products as Laidlaw's fuel
supplier. Exhibit 3.
I. Revisions to Corporate Structure
A. Summary and Purpose of Reorganization
The lenders have required certain corporate restructuring for financing purposes. As
previously described to the Subcommittee, the Project expects to obtain financing from the
private placement market as well as from New Market Tax Credit (NMTC) lenders. The
corporate structure has been modified to accommodate both sets of lenders.
NewCo Energ¡ LLC, the
",rrr"it
owner, will remain the principal owner. Laidlaw
Berlin BioPower, LLC and PJPD Holdings, LLC will be replaced by a new single purpose entity
'Attached as Exhibit 4. A separate motion has been filed, which accompanies this motion, and requests
confidential treatment for Exhibit 4.
-J("
SPE"). An organizational chart depicting the new corporate structure is attached. See Exhibit
5.' Mr. Bartoszek testified during the hearing that this t¡pe of reorganization is t¡pical and may
be required by the lenders. See Transcript Day 3, P.M. Session at97:24-l0l.2.
The creation of new SPEs is a coÍlmon practice in limited-recourse financing
transactions. According to Standard & Poor's Criteriaþr Special Purpose Entities in Project
Finance Transactions;
Standard & Poor's believes that the preservation and protection of the project and
the other collateral from extraneous, non-project risk is of prime importance to
investors. Such risks threaten the fulI and timely repayment of debt service,
which, of course, is the basis of Standard & Poor's bond rating.
James Penrose, Esquire, Standard & Poor's RatingsDirect, November 20,2000 at page 2. The
revised corporate structure is consistent with this Standard and Poor's criteria and will help
facilitate the Project financing. In practice, this structure permits the rating agencies and lenders
to focus exclusively on the economic features of the Project.
In addition, some of the corporate restructuring is driven by tax requirements associated
with the NMTC lenders. The specific NMTC rules as well as the specific structural features
proposed in response to those rules are set forth in greater detail below.
B. Specifìcs of the Reorganization
NewCo Energ¡ LLC, the primary owner of the Project as presented to the
Subcommittee, will own NewCo Energy Holdings, LLC.' NewCo Energy Holdings, LLC will
own BBP Holdings 7,LLC and Burgess Holding, LLC.
r The existing corporate organizational chart, designated Laidlaw 8 at the hearings, is also attached for
comparison purposes.
a NewCo is currently in preliminary discussions with a party who is contemplating purchasing an
ownership interest in NewCo Holdings, LLC. These discussions are in the early stages and it is unclear at
this point whether a deal will be consummated. Applicant raises this issue here because of the Certificate
condition requiring notification of a change in the ownership structure. Order at3.
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CSC Group Holdings, LLC will own BBP Holdings 2,LLC. CSC Group Holdings is the
same entity identified at the hearing as one of the investors in NewCo Energy, LLC. See
Committee Exhibit 1.
Berlin Station, LLC ("Berlin Station") will replace PJPD Holdings, LLC ("PJPD") and
Laidlaw Berlin Biopower, LLC ("LBB"). In essence, the prior attributes and responsibilities of
PJPD and LBB will all be consolidated into Berlin Station. Berlin Station will own the facility,
the real property, be the party to all the contracts (PPA, fuel supply, EPC, O&M, etc.) and the
Certificate holder.
BBP Holdings #1, LLC will own99o/o of Berlin Station and BBP Holdings #2,LLCwlll
own 10lo of Berlin Station. The reason for this arrangement is that NMTC rules prohibit Berlin
Station from being a "disregarded entity'' for federal income taxes. This in turn requires Berlin
Station to be owned by at least two members with different ultimate ownership.
While Berlin Station retains ultimate ownership and responsibility for the Project, NMTC
rules prohibit Berlin Station from directly operating the Project. To accommodate this
requirement, Berlin Station will lease the facility to Burgess BioPower, LLC (Burgess) pursuant
to a site and facility lease (the "Facility Lease"). Berlin Station will also enter into a "Right of
Use Agreement" with Burgess pursuant to which Burgess shall have the right to use the contracts
required to operate the Project (PPA, fuel supply, EPC, O&M, etc). Burgess will administer the
Certificate and the contracts, and function as the facility manager on behalf of Berlin Station,
subject to the terms of the Facility Lease and Right of Use Agreement.
The Applicant recognizes and understands that regardless of what type of management
structure Berlin Station establishes in order to satisff the lenders and obtain the financing, as the
proposed holder of the Certificate, it will have ultimate responsibility for ensuring complete,
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ongoing compliance with all the Certificate's terms and conditions. Accordingly, Burgess's
rights under the Facility Lease and Right of Use Agreement will be expressly subject to
Burgess's compliance in all respects with the terms and conditions of the Certificate. Moreover,
Berlin Station, Burgess and NewCo Energy, LLC are all willing to be bound by the terms and
conditions of the Certificate.
The Applicant believes that combining the attributes and responsibilities of PJPD and
LBB addresses one of the concerns originally expressed by the Subcommittee,' thus
strengthening the Projel. Likewise, the Subcommittee placed weight on the fact that "the senior
management of the Applicant, NewCo, Aware and LBB are highly qualified for raising capital
for construction and operation of the facility." Decision at 47. ln fact, those same highly
qualified persons remain in place in this new structure and the Applicant now believes it has
reached the point where, if the PPA is approved and this Subcommittee acts favorably on this
Motion, the financing will close shortly thereafter.
il.
Manaeement Services.
A. Background Information
The Subcommittee imposed the following requirement in its Decision:
In order to ensure that the Facility will be constructed and operated in accordance with
represented set of skills, the Subcommittee requires the Applicant to notify the
Subcommittee of any changes in major contractors providing construction, operation, or
management services for the Facilities.
Decision at 53. Pursuant to this condition, Laidlaw is providing notice of its intent to replace the
entities that were originally contemplated to provide construction and operation services.
s^See Decision at 46-47 .
-6-
Laidlaw intends to replace Homeland with a team of highly qualified entities who will
provide top-notch, proven construction and operational expertise. This replacement is occurring
at the prompting of the lenders to add even greater technical and operational strength to the
Project team. The replacement team will consist of the following entities:
o Waldron Engineering and Construction, lnc. ("'Waldron") will serve as construction
engineer with primary responsibility for overseeing the EPC Contractor - the Babcock &
Wilcox Construction Company ("Babcock & Wilcox") - managing construction on
behalf of the owner and ensuring compliance with the terms and conditions of the
Certificate; and
o Delta Power Services, LLC ("Delta Power"), a wholly owned subsidiary of Babcock &
Wilcox, will serve as the operations and maintenance contractor on behalf of the owner
and ensure compliance with the terms and conditions of the Certificate.
In addition to the deep experience provided by Waldron and Delta Power, the Shaw
Group ("Shaw") will also assist with construction oversight, as described below. The project
technical team will also continue to rely on the expertise of Babcock & Wilcox and the Laidlaw
Advisory Board as previously outlined in the SEC hearings. The Laidlaw Advisory Board will
continue to consist of NewCo personnel with substantial technical and managerial experience in
the power industry. The Laidlaw Advisory Board will remain in place, with the same people, at
the conclusion of the corporate reorganization described herein, and play the same role as
initially contemplated.
Finally, as discussed at the SEC hearings, Black &Veatch will continue to serve as the
Independent Engineer with primary responsibility for overseeing construction on behalf of the
lenders and ensuring compliance with all regulatory requirements and technical specifications.
-7 -
See Transcript at Day 5 A.M. (Augus|27,2010) at 87-88. Black & Veatch will not be under the
direction and control of the Certificate holder, but it will provide an additionallayer of oversight.
B. Specific Information About Team Members
W'aldron is a New Hampshire-based engineering and construction management firm with
extensive experience in the biomass and power industry. Its work has included serving as the
independent engineer on behalf of Con Edison Development at the 535 MW Newington Energy
Facility, where it supervised the design, construction, commissioning and testing of the plant.
Waldron also served as owner's engineer at a45 MW biomass plant in Edmundston, New
Brunswick. More detailed information about Waldron is attached as Exhibit 6. In addition,
Waldron has been periodically involved in this Project since its inception and has significant,
direct proj ect experience.
Jack Howarth will lead
'Waldron's
team. His resume is attached. See ExhibitT. If the
Subcommittee so desires, Laidlaw will provide a copy of the final, unexecuted construction
management agreement with'Waldron (for which it would seek confidential treatment). The
parties will execute this agreement at the conclusion of this proceeding.
Shaw will support Waldron as owner's engineer with respect to supervision of plant
construction. Shaw is a leading global provider of comprehensive services to the power, process,
and environmental and infrastructure industries. Headquartered in Baton Rouge, Louisiana,
Shaw employs 27,000 people and has offices around the world. Since 1974, Shaw has built
projects of various sizes and complexities, primarily for the refining, petrochemical, pipeline,
pulp and paper, and electric power industries. Shaw has engineered many biomass processes
with state-of-the-art technologies using renewable fuel sources.
8
Laidlaw anticipates that Theodore Wong will lead Shaw's team. His resume is attached.
See Exhibit 8. Detailed information about Shaw is also attached. See Exhibit 9. If the
Subcommittee so desires, Laidlaw will provide a copy of the final, executed agreement that it has
negotiated with Shaw (for which it would seek confidential treatment).
Delta Power is the fourth-largest power operation and maintenance services provider in
the United States. Delta Power is a wholly owned subsidiary of Babcock & Wilcox, the EPC
contractor for the Project. Delta Power has extensive experience providing operating and
maintenance services to power stations, including currently providing service to nine power
facilities in six states. Delta Power operates three solid fuel projects, including a 40 MW woodchip
biomass plant. Delta Power currently employs approximately 320 people.
Delta Power will be responsible for plant staffing,u plant operations and maintenance, and
all accounting and financial reporting. Laidlaw anticipates that Pete Sessler will be the person at
Delta Power with direct responsibility for the Project. His resume is attached. See Exhibit 10.
Detailed information about Delta Power is attached. See Exhibit 11. If the Subcommittee so
desires, Laidlaw will provide a copy of the final, unexecuted agreement that it has negotiated
with Delta Power (for which it would seek confidential treatment). Laidlaw will execute this
agreement at the conclusion of this proceeding.
Black & Veatch will serve as the Independent Engineer for the lenders with responsibility
for ensuringthat construction occurs properly and in conformance with all technical and
regulatory specifications. Black &Veatch is a leading global engineering, consulting and
construction company. SeeExhibit12. Founded in 1915, Black & Veatch currentlyhas a global
workforce of more than 8,600 working in over 100 offices worldwide with projects completed in
6 Using Delta Power will not change any commitments Laidlaw has made regarding local hiring.
-9 -
more than 100 countries on six continents. ,See Transcript Day 5 A.M. (August 27,2010) at87-
88.
fn sum,'Waldron, working in conjunction with Babcock &'Wilcox, Shaw and Laidlaw
personnel, will oversee construction of the facility and ensure compliance with all Certificate
terms and conditions. Babcock & Wilcox, as the EPC contractor, is also contractually bound to
comply with all the terms and conditions of the Certificate. Once construction is completed,
Delta Power will assume operational responsibility, overseen by Laidlaw (or its successors) and
its Advisory Board. Laidlaw expects that because Babcock & Wilcox and Delta Power are both
Babcock & Wilcox companies, that relationship will help facilitate a smooth transition from the
construction phase to the operational phase.
Laidlaw submits that collectivel¡ it has assembled an extraordinarily strong team that is
more than capable of replacing Homeland and Fibrowatt. There can be no doubt that this team
has the technical and managerial capability to ensure construction and operation of the facility in
compliance with the terms and conditions of the Certificate.
m. Change in Fuel Supplier
The Certificate provides that "the Applicant shall not commence construction until such
time that it has filed, with the Subcommittee, a signed Fuel Supply Agreement with Cousineau
Forest Products materially consistent with Laidlaw Exhs. 62,62 [sic] and 73A Co¡ænpNtnr."
The Decision requires Laidlaw to enter into a Fuel Supply Agreement with Cousineau, materially
consistent with the one presented to the Subcommittee during the hearing. Laidlaw Exhs. 62,63
and73{. The Decision is predicated largely on the material elements of the agreement (e.g.
length of the Fuel Supply Agreement (20 years); providing financial stability for Laidlaw, the
incorporation of the Sustainability Conditions into the Fuel Supply Agreernent; etc.).
-10-
Laidlaw requests that the Certificate be amended to state as follows: "the Applicant shall
not commence construction until such time it has filed, with the Subcommittee, a signed Fuel
Supply Agreement materially consistent with Laidlaw Exhs. 62,63 and731. CoNFDENTIAL."
Pursuant to the amendment, Laidlaw would be permitted to enter into a Fuel Supply Agreement,
materially consistent with Laidlaw Exhs. 62,63 and73A Cowrn¡Nnet, with an entity other
than Cousineau. Laidlaw will file that Fuel Supply Agreement with the Subcommittee prior to
the commencement of construction.
Laidlaw seeks this amendment because it wishes to replace Cousineau with Richard
Carrier Trucking, lnc. and its associated companies ("RCT"). RCT is substantially larger than
Cousineau and consequentl¡ has greater logistical and financial wherewithal to meet the
requirements of the Project.
RCT was established in 7974. It is an environmentally conscious, integrated forest
products goup of companies, all owned by Richard Carrier. RCT has large manufacturing and
service operations located in Milan, Henniker, Shelburne, and Brentwood, New Hampshire, as
well as numerous facilities throughout Maine and eastern Canada. RCT owns and operates
lumber mills, chipping facilities, timber holdings, pallet manufacturing, and landscape/mulching
operations, all of which are fully supported by an extensive forest product shipping and handling
distribution system.
The RCT goup is comprised of over 10 operating entities in New Hampshire alone,
including two of the State's largest sawmills: Milan Lumber Co in Milan (located 9 miles from
Berlin) and HHP, Inc. in Henniker; a chipping company, R.J. Chipping Enterprises in Shelbume
(14 miles from Berlin); and abark and mulch business, P.R. Russell Brentwood Distribution,
- 11 -
LLC, in Brentwood. RCT currently procures and transports in excess of 1.5 million tons of
woodchips annually to a diverse client base.
To effectively process and distribute the various forest products, RCT can call upon its
locally owned fleet of over 75 tractors and more than 150 specialized trailers, as well as dozens
of associated loading and processing heavy machinery and equipment. RCT provides access to
wood supply and trucking capabilities as well as extensive and diversified handling and storage
abilities.
RCT's livelihood is dependent on the sustainability of wood supply and on the local
forests remaining healtþ and productive. As a result, RCT has a strong commitment to
responsible foreshy and best management practices, including within its own staff of statelicensed
foresters, its woodlots, and as well as within its manufacturing operations.
IV.
A. Background Information
Laidlaw originally anticipated that its gross output would be 70 MW and sought a
Certificate predicated on that figure. As Ray Kusche testified during the hearing, however,
Babcock & Wilcox has determined that the boiler can actually efficiently produce more energy
than 70MV/ and therefore Laidlaw has applied to ISO-NE for an increase in output. Transcript,
Day 4 PM Session (August 26,2010) at 15-16; see also Exhibit 4. This increase in power output
is purely an efficiency increase and will not affect the emissions or wood supply needs for the
Project.
Refinement and optimization of the Project's design and operating parameters has
occurred throughout the development process. ,See Transcript, Day 2, AM Session (812a12010)
at 5l-52. Laidlaw's engineers have achieved improved performance while not increasing the
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amount of fuel to be used, or otherwise increasing the Project's impacts. Increasing the power
output of the plant involved the following factors:
. The boiler steam output temperature has been slightly increased, while reducing the total
steam output flow rate. The increased steam temperature at the turbine, even with the
reduced steam flow, gives a net increase in ouþut due to the increased turbine efficiency.
Although the temperature is increased slightly, the decrease in total stçam ouþut flow
maintains the heat input rate as presented in the Application, and hence the same fuel
input rate and annual consumption.
. Laidlaw had planned to use a used steam turbine generator. Laidlaw has instead decided
to use a new steam turbine generator. Due to its age, a used steam turbine generator
would have had a significantly lower efficiency than a new machine.
. Laidlaw's engineers are also optimizing the steam turbine generator's exhaust pressure
by further refining the design of the water cooled condenser and mechanical draft cooling
tower. These refinements will cause the operating temperature of the water cooled
condenser to be reduced, thus lowering the turbine's exhaust pressure. At the same inlet
pressure, a lower exhaust pressure indicates that the useful work done by the steam (in
this case the power produced) will increase. These refinements further confirm that the
power output can be increased while maintaining other operating parameter assumptions
that correlate to the Project's impacts as discussed below.
. Laidlaw has selected a lowloss generator step-up transformer, further improving overall
project efficiency.
In sum, the evolution of the Project's design has allowed Laidlaw's engineers to achieve
a higher operating efficiency for the plant than originally planned, and to confirm that the plant
can generate a gross ouþut of up to 75 MW. The resulting improvements bring overall benefits
by increasing the power generated per ton of fuel used, and reducing air emissions, water
consumption and other collateral impacts per unit of power produced.
-13-
B. Impacts of Proposed Increase Ín Power Output
1. Air Emissions
As noted previously, the design and operating refinements that lead to the increased
power output will not change the boiler's heat input rate from the short term (i.e. hourly) and
annual levels presented in the Application. Assuming that all the fuel parameters rernain as
presented in the Application and reviewed during the hearings (heating value, moisture content,
etc.), the fuel consumption of the Project is directly related to the heat input, and thus will not
change. [n turn, the boiler's air emissions, expressed in terms of pounds emitted per million Btu
of heat input, are directly proportional to its heat input rate and will not be altered by the
increased porwer ouþut.
The Project's mechanical draft cooling tower is also a source of air emissions due to
particles contained in water droplets discharged from the unit's exhaust, commonly referred to as
"drift". The drift and water vapor contained in the exhaust can also result in ground level
fogging and icing if not properly designed. As discussed below with regard to the water
consumption and wastewater, the quantity of drift and water vapor discharged from the tower
will remain within the levels presented in the Application. Thus, the tower's particulate
emissions will remain unchanged and the tower will not cause ground level fogging or icing on
nearby roadways as determined by the modeling conducted for the Project.
In sum, the increased ouþut will not result in an increase in emissions of any pollutant.
In addition, the change in output itself is not an issue under the air permit; therefore, the Air
Permit does not require amendment.
-t4-
2. Truck Traffic
The number of truck trips required to supply fuel to the Project is directly tied to the
quantity of fuel used. Since the heat input rate of the Project will not change, the fuel
consumption rate will remain unchanged. Accordingly, the number of tmcks required to deliver
fuel to the Project will remain as presented in the Application.
3. 'Water Consumption and Wastewater Discharge
The overwhelming majority of the Project's water consumption and wastewater discharge
is related to the mechanical draft cooling tower used to supply cooling water to the steam
condenser on the discharge of steam turbine generator. The refined system's design and heat
balance calculations developed by Laidlaw's engineers confirm that the operating parameters
that affect water consumption and discharge from the cooling tower, including water
recirculation rate, heat rejection rate, and water blow down rate, are all less than or equal to the
values set forth in the Application. As these parameters will not increase, neither will the water
consumption or wastewater discharge.
4. Aesthetics
The increased power output results from optimization of the Project's steam cycle and the
use of more efficient equipment. It will not materially change the size or appearance of the
Project's structures as presented in the Application, and will not alter the visual impacts of the
Project.
5. Noise
The proposed increase in power output from the Project only impacts the steam turbine
generator itself; there are no changes in other sources of sound such as the boiler, cooling tower,
on-site wood handling equipment, etc. The acoustic emissions of the steam turbine were derived
-15-
from an algorithm that relates the gross electrical generating rating ofthe steam turbine generator
to the sound po\ryer level as referenced in Table (hX3XiÐ-6 contained in the Application. Based
on this algorithm, the increase in the megawatt rating of the steam turbine has a negligible
increase in the sound power level produced by the turbine (less than % decibel). As a result, the
ultimate effect on sound impacts in the community and at the property line, when taken in
combination with the relative contributions of other sources of sound associated with the Project
(e.g. the cooling tower, the front end loaders, etc.) and the sound insulating characteristics of the
building housing the turbine, will be negligible (less than a 0.1 decibel increase).
6. Other Environmental, Health & Safety Impacts
The proposed increase in power ouþut will not result in alterations to the site layout,
location, waste generation, or chemicals used, and thus will not have any adverse impacts to
other environmental, health or safety considerations such as wetlands,habitat, or community
safety.
For all of these reasons, the proposed increase in power output from the Project will not
alter any of the findings made by the Subcommittee in the Certificate. Accordingly, Laidlaw
requests that the Subcommittee amend the Certificate, consistent with the above-referenced ISO
filing (and contingent on ISO approval), to allow the facility to generate up to 75 MW gross.
WHEREFORE, Laidlaw respectfully requests the Subcommittee:
A. Grant this motion for transfer and amendment of the Certificate;
B. Transfer the Certificate to Berlin Station, LLC;
C. Amend the Certificate to incorporate the changes described herein; and
D. Grant such other and further relief as the Subcommittee deems fair and just.
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Resp ectfu lly submitted,
Laidlaw Berlin BioPower, LLC and Berlin Station, LLC
By Their Attomeys,
McLANE, GRAF, RAULERSON & MIDDLETON,
PROFES SrO)4']L AS S OCIATION
Date: March 9,2011 By:
GregoryH. Smith
Cathryn E. Vaughn
Eleven South Main Street
Concord, NH 03301
Telephone (603\ 226-0400
Certificate of Service
I hereby certifythat on this 9th day of March, 2}ll,Ihand delivered an original and
eighteen copies of this Motion to the Site Evaluation Committee and a copy to the office of the
Attorney General.
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