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BUSINESS PLAN Wind River Biomass Utility, LLC Located in Stabler, Washington CHARTER MEMBERS: Tom Linde Norm Ward Bob Sourek Paul Spencer www.portofskamania.org/WRBiomass [email protected] (360)223-5756

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BUSINESSPLANWindRiverBiomassUtility,LLC

LocatedinStabler,Washington

CHARTERMEMBERS:

TomLindeNormWardBobSourekPaulSpencer

www.portofskamania.org/[email protected](360)223-5756

2September1,2017

TABLEOFCONTENTS.ExecutiveSummary...............................................................................................................3

GeneralCompanyDescription...........................................................................................4WhatWeDo.......................................................................................................................................4WhatWe’veDone............................................................................................................................6WhatWeHave..................................................................................................................................7WhereWeAreHeading.................................................................................................................7

BiomassSupply&Products................................................................................................8ThermalEnergy.............................................................................................................................................8ElectricalPower.............................................................................................................................................9Biochar...............................................................................................................................................................9Firewood...........................................................................................................................................................9

MarketingPlan.....................................................................................................................10

OperationalPlan..................................................................................................................13Phase1:SiteDevelopment........................................................................................................13Phase2:Construction,Installation,&SystemCoordination.........................................13LegalEnvironment.......................................................................................................................14

FinancialStrategy................................................................................................................15

Management&Organization...........................................................................................16Organization...................................................................................................................................17

Appendices............................................................................................................................20

3September1,2017

EXECUTIVESUMMARY

TheWindRiverBiomassUtilityLLC(WRBU)seekstobuildabusinessthatbenefitsourforests,ourenvironment,ourlocaleconomy,andouroverallcommunity.Ourmissionistobuywastewood,alsoknownasbiomass,fromlocallandmanagersandmillsandusethatbiomasstofuelautilityoperationthatcreatesrenewableenergywhilereducingproblemslikeforestfiresandpestinfestationsthatplagueheavilyforestedcommunities.Reducingandremovingexcesswoodydebrisandharvestslashaswellasperformingthinningtreatmentsthroughoutthetimberlandshasbecomeanexpensiveobstacleforlandmanagersandweaimtoprovidethesolutionbygivingthatwastewoodvalue.

Tosupportthisvisionandpurpose,withtheconstructionofourCombinedHeatandPower(CHP)facility,WRBUwillproduceandsellelectricalpowertotheutilitiesthatarerequiredtomeetrenewable-energypurchaserules;heatforcommercialoperationsviahotwater;heat-treatedfirewoodforbundledfirewoodsales;andbiocharforfertilizerandfiltrationapplications.Theseproductsareinhighdemandduetotheworldwidepursuitofrenewable-energydeployment,includingthesustainableuseofwoodybiomass,energyefficiency,andorganicagriculture.

Sinceitsfoundingin2012,WRBUhasacquiredvitalequipmentatpenniesonthedollar,andsecuredtheperfectlocationtodevelopanefficientandsustainableCHPfacilitythatwillprovidetheidealopportunityforagriculturalandeconomicdevelopmentinthecountyforyearstocome.Webelieveourmodelwillbecomethestandardforindustrybestpracticesandwillbeidealforreplicationinotherrurallocationswithnatural-resource-basedeconomies.

ThefoundingmembersofWRBUbringexperienceinforestry,engineering,renewableenergy,communitydevelopment,andtheforestproductsindustrytothisproject.Weareseekingfinancialsupportpartnersto

4September1,2017

participateinthis‘green’endeavorthatwillhaveamultifacetedimpactonboththecommunityandthenaturalenvironment.

GENERALCOMPANYDESCRIPTIONTheWindRiverBiomassUtility(WRBU)isaLimitedLiabilityCorporation(LLC)registeredinWashingtonStateandlocatedinSkamaniaCounty.

PhysicalAddress: MailingAddress:

WindRiverBusinessPark 250NEVistaDriveTroutCreekField POBox658Carson,WA Stevenson,WA98610 98648WhatWeDoInthisBusinessPlan,theterm“biomass”referstothewastewoodleftoverfromforestmanagement,lumberproductionorwoodrecyclingactivitiesthatcanbeusedasfuel.Thebiomass“utility”referstothefacilityusingbiomasstoproduceenergy.AsaresultofWashingtonandOregonState’scurrentfocusoncleanandsustainableenergy,biomass-fueledcleanenergyfacilitieshaveemergedasaprovenreliablebaseloadpoweralternativetofossilfuelsintheproductionofheatandpower.WRBUwasfoundedinanefforttospecificallyaddressthelocalneedtoutilizebiomasswasteonasustainablebasisandproduceenergyandotherproductswhilesupportingbothhealthyforestsandhealthycommunities.

In2012,theU.S.ForestServicereportedtotheSouthGiffordPinchotCollaborativeGroupthattheGiffordPinchotNationalForestwasfullofbiomassthatwasabyproductofforestmanagementactivities.Theysaidthatthiswastewoodwasafirehazard,waspiledandburnedandtheexpenseofdisposallimitedtheamountofforestmanagementthatcouldtakeplace.TheideaforWRBUwasbornfromthatmeetingasthefourCharterMembersdecidedtocreateabusinesstoincreasetheutilizationoflocallyavailablebiomassbyincorporatingthecleanenergyCombinedHeatandPower(CHP)

5September1,2017

concept.Thistechnologyisdesignedtomaximizetheefficientuseofwoodybiomassasfueltocreateheatandelectricpowertherebycreatinghighervalue.Thishighervalueallowsgreaterbiomassuseandlessbiomasswasteleftintheforestasafirehazardorinneedofdisposalinburnpiles.Thebiomasswillinsteadproducebothusefulproductsandjobsandultimatelyresultinmoreforestmanagement.

Inpursuitofthisgoal,WRBUseekstodothefollowing:

1. Utilizewaste-woodthatisgenerallyconsideredtobeinexcessaccordingtothebasicrequirementsofforestecology.

2. Generatethermalandelectricalenergy,producebiocharandkilndryfirewoodwithcontrolledcombustionofwoodybiomassinaCHPfacility.

3. Efficientlyprocessthisbiomass,therebyutilizingsustainableresources,toachieveamoderatereturnoninvestmentthatwillensureboththefinancialstabilityandsurvivabilityofthebusinessaswellasmaximizethenumberofjobsandbusinessesthatsupportamedianlevelofincomeperWashingtonStatestandardsforthesouth-centralSkamaniaCountyarea.

Locatedjust60mileseastofPortland,Oregon,theWRBUCHPoperationisbeingdevelopedon25acresattheWindRiverBusinessParkintheStabler/CarsonareathatisleasedfromSkamaniaCountyandmanagedbythePortofSkamaniaCounty.Thesiteisidealfororganicagriculturalandcommercialdevelopment.

Fromthislocation,theoperationalobjectiveoftheutility,rawmaterialcollection,andassociatedenergyproductionwilloptimizetheefficiencyoftheoverallfuel-captureandenergyproductionsystem,aswellastheend-useoftheenergy,bybothdesignandpractice.WeexpectthatinasingleyeartheWRBUCHPwillutilize12,000drytonsofwastewoodtogenerateheatandelectricitytosupportthevarietyofindustriesmentionedabove.Excesselectricitycanbesoldtotheutilitiesintheregionaltransmissiongrid.EachyearWRBUwilluselessthan25%oftheexcessbiomassproducedfromforestmanagementactivitiesonlocalfederal,state,andprivatetimberlandstogenerateupto4millionkWhand40,000millionBTUofheatperyear.

Oncefullyoperational,WRBULLCwillbeamodelforsimilardevelopmentsinmanyotherrurallocationswithforest-resource-basedeconomies.WRBU

6September1,2017

willproviderelevanttechnical,business,andproject-developmentinformationforotherdeveloperstoassistincreatingequallyeconomicallyviableCHPfacilitiesinotherareas.

WhatWe’veDoneSinceitsformationin2012,WRBUhasworkedhardtoestablishstrongpartnershipswithlocalandregionalagencies,includingtheSkamaniaCountyPUD,theBonnevillePowerAuthority(BPA),theU.S.ForestService,WADepartmentofNaturalResources,WADepartmentofCommerce,andthePortofSkamaniaCounty.Inaddition,wehaveexcellentworkingrelationshipswithsuppliers,statelegislators,U.S.congressionalrepresentatives,SkamaniaCountyofficials,aswellaslocalcitizens.Withthissocialcapital,wehavedonethefollowing:

• ObtainedGrantFundingfromtheCommunityEconomicRevitalizationBoard(CERB)andSkamaniaCountytofundafeasibilitystudyfortheWRBUCHPfacilityattheWindRiverBusinessParkwhichshowedviabilityforasmall-scaleoperation(seeWallowa2014FeasibilityStudy,availableonourwebsite);

• PurchasedaSmallGeneratorInterconnectionStudyfromBPAthatdefinestheequipmentandprocessforelectricalpowersalesfromarenewable,baselinegenerator(seeBPA2014SmallGeneratorInterconnectionReport,availableonourwebsite);

• ReceivedaUSDARuralEnergyforAmericaProgram(REAP)granttofundamarketfeasibilitystudyforgreenhousedevelopmentattheWindRiverBusinessPark(seeREAP2015FeasibilityStudy,availableonourwebsite);

• ObtainedagrantfromtheUSForestServiceforthefinalengineeringdesign/planforWRBUCHPfacilityattheWindRiverBusinessPark(seeWRBPCHPplans2015,availableonourwebsite);

• Purchasedagasifier/burnersystemthatuseswoodchipstoheat‘thermaloil’todriveanelectricalgenerationsystemandfordeliveryofheattogreenhouseswithfundingobtainedfromtheWAStateDept.ofCommerce(2014);

• ReceivedaloanfromBonnevilleEnvironmentalFoundation(BEF)fordevelopmentmoney(permits,lawyerfees,etc.)toberepaidinRenewableEnergyCredits(REC)whenelectricalpowersalesoccur(2015);

• Securedalong-termleaseatalowratefor25acresfromthePortofSkamaniaforaformernurseryfieldwithelectricalandwaterconnectioninfrastructureinplaceandagravelroadsuitableforlogtrucks(2015);

7September1,2017

• Purchasedtwo200KWpropanefueledmotor-generatorsetsforpowerandhotwaterback-up,plusa110-tonhot-water-absorptionchillerpoweredusingtheheatfromthebiomassgasifiersystem(2015).

WhatWeHave Goodequipmentandproperplanningisessentialtoanybusinessoperation,andWRBUhasmadesignificantgainsinacquiringthefundingforandtheacquisitionofboththemeansandthemodesofproductionforaCHPbiomassfacility.Todate,wehave:

• AfullsetofengineeringdataanddrawingsincorporatingtheLLC’sequipmentonitsleasedsite(cost$100,000);

• Acomprehensivetechnicalreportongreenhousecostsandopportunities;• ASmallGeneratorInterconnectionReport(SGIR)fromtheBPAforpower-

purchasearrangements;• AnewandunusedChiptecP-20gasifier/burnersystemwithallthe

peripheralelectricalcontrols,pumps,fans,valvesneededtoburnwoodchipsandtoproduceandcaptureheat(originalinvoice$1,100,000);

• Twomotor-generatorsetsof200kWcapacityeachanda110tonhot-waterabsorptionchillerdesignedandbuilttoworkwiththetwom-gsets.

WhereWeAreHeadingOurgoalshaveevolvedsignificantlysince2012.Wehaveidentifiedavarietyofenergyproductsthatwillallowustoutilizeasmuchofthebiomassenergyaspossible.Inorderforustodothis,ourhighestpriorityisgettingtheWRBUfacilityupandrunning.WeareworkingwithSkamaniaCounty,whoownsthelandwelease,toconstructthefacilitythatwillhousetheCHPsystem.TohelpfundallofthestepsthatarenecessarytomaketheWRBUfacilityoperationalandbringinlocalsupportandinvestmentwearelaunchingaWeFundercampaigninSeptember2017.Inadditiontothecrowdfunding,WRBUisalreadyinthestart-upphaseofFirewoodproduction.Fourstatecampgroundshavecontractedwithustoprovideapproximately4,000bundlesoffirewood.Therevenuecreatedbythesesalesaswellasresidentialfirewoodsalesisallowingustocoverourcurrentoperatingexpenses.Furthermore,WRBUisintheprocessofgatheringbidsfortheacquisition,installation,andcommissioningofagasifierburnerhot

8September1,2017

oilheatexchangerwithallnecessaryequipmenttodriveanOrganicRankineCycle(ORC)electricalgeneratorsystem.

BIOMASSSUPPLY&PRODUCTSTheWindRiverBusinessParkthatishometoWRBUislocatedinSkamaniaCounty,aheavilyforestedregionofWashingtonState.Ninety-eightpercent(98%)oftheCountyisforestland,with80%oftheCountybeingpartoftheGiffordPinchotNationalForest.AccordingtothestudyconductedbyWallowaResourcesCommunitySolutionsforthePortofSkamaniaCounty(2014),“Betweenprivate,State,andFederalforestlandinimmediateproximitytotheprojectsite,itisgenerallyunderstoodthattherewillbebiomassavailablefromthesesourcesinperpetuity.”Thismeansthatwastewoodfromlogging,thinningslash,andlumberproductionisconsistentlyavailable.Forestmanagersmustspendasignificantamountofresourcestotreatthewastewoodinaccordancewithforestmanagementpracticesandtheywillwelcometheopportunitytomoreconvenientlydisposeofthebiomasswaste.

Thelocaleconomywassustainedbythetimberindustryfornearly130yearsand,asaresult,thereareseveralsawmillsintheregion.Itisestimatedthatthereare36,600drytonsofresidualsproducedinthetwonearestsawmillseveryyear.Theresidualbiomasswastefromsawmill,plywoodmill,andwhole-logchippingoperationsmustbedisposedofthroughvariousdisposalmethods.Eliminatingthiswastewoodiscostly,whetheritbethespacethewasteoccupiesorpayingforitstreatment.Therearealsotheunaccountedenvironmentalcostsofburningallofthiswaste.Thiscreatesademandforasustainablealternative.WRBUcanmakewastewoodutilizationaviablealternativetoexpensivetreatmentoptionsandcreatethefollowingenergyproducts:

ThermalEnergy

TheWRBUfacilitywillprovideheatfromrenewableresources.Tobuildourbusinessandmeetourgoalsofsustainability,wearefocusingonthe

9September1,2017

recruitmentofheatcustomers.WRBUwillbeabletooffercustomersalessexpensivethermalenergyalternativetopropane.

ElectricalPower

Theelectricalpoweroutputwillbesoldas‘baseload’power,asopposedtothevariablepowerthatoftencomesfromsourceslikewindturbinesandphotovoltaics.Ourenergyconsultantshaveindicatedthisisastrongpositivefordeploymentintherenewable-energymarket.ElectricalsaleswillalsohaveaRenewableEnergyCredit(REC)valueduetotherisingneedfromutilitycompaniesforrenewablepowertomeettheirstaterenewable-energystandards(inWAandOR).

Biochar

TheWRBUownsaChiptecP-20gasifierthatiscapableofproducingBiochar.Biocharisessentiallycharcoalderivedfrombiomassandisusedasasoiladditiveinagriculture.ByproducingBiochar,WRBUwillbeabletoofferaproductthatisexperiencingrapidmarketgrowth.Followingayear’sworthofresearch,wenowestimatethatbiocharcanaccountforapproximately30%ofrevenue.

Firewood

WRBUisproducing‘seasoned’firewoodforlocalcordwoodandbundled-firewoodsales.WhentheWRBUCHPfacilitybecomesoperational,thisproductcanbekiln-driedtokillpestsandtimber-relateddiseasesforbothlocalandinterstatebundled-firewoodsalesviawholesaledistributors.

ItisworthnotingthatthefirewoodoperationisadditionallybeneficialforWRBUaswellinthatitbringsoperationalflexibility.Withreasonablecapacityplanning,thefirewoodoperationcanbebuiltaroundthecapacityto‘takeuptheslack’,whenheatdemandisrelativelylowfromgreenhouses.

10September1,2017

Table1:WRBUAnnualProductionwith12,000drytonsofwastewoodProduct: CHPProduces:ThermalPower 40,000MillionBTUElectricalPower 3,720,000kWhBiochar 1,200tonsFirewood 250cordsresidentialuse;128,000campfirebundles

MARKETINGPLANWRBUisasolutiontothebiomassproblemthatisaccumulatinginourcounty,nottomentionarelieftotheairqualityproblemsourregionhasexperiencedfromthewildfiresthissummer.Tohelpalleviatetheseissues,weareinformingourcommunityandaffectedagenciesofoursolutiontotakethe“waste”outof“wastewood”andwithit,theopportunitytoreducetheriskformassivefireswithabettermanagedforest.WehavecontractedwithaprojectspecialisttohelplaunchourWeFundercrowdfundingeffortstobringininvestors,withareleaseplannedforSeptember2017.Wewillbelaunchingourwebsiteandbrandingsimultaneously.

ThermalPower24%

ElectricalPower15%

Biochar39%

Firewood22%

TABLE2:WRBUREVENUESUMMARY

11September1,2017

Marketingourfourproducts–thermalenergy,electricalpower,Biochar,andfirewood-requiresatargetedcustomerapproach.Thefollowingareplannedorinprocess:

ForThermalEnergyCustomers

AsshownintheWallowaFeasibilityStudy(2014),thesiteandtheWRBUCHPwillmakeavarietyofbusinessesviableattheWindRiverBusinessPark,:Thissamestudymadethepointthatitcanbeespeciallybeneficialtoproducewoodproductsandbiomassenergywhenbusinesses“arelinkedthroughvalueandsupplychains,labor,inputs,technology,andcomplementaryoutputs”andthatgroupingbusinesseslikethistogethercan“improveproductionandefficiencyinnumerousways”.

Inadditiontopurchasingathermalcustomer(greenhouse)studyfromFreshEarthGardensLLCin2015,wehavealsocontactedlocalsmallfarmers,UnderwoodConservationDistrict,andveteran’sgroup“Archi’sAcres”toidentifypotentialgreenhouseoperatorsforoursite.Insupportofthistypeofdevelopment,itshouldalsobenotedthatwaterisavailableinallseasonsfromanewly-drilledwellontheTroutCreekField.Also,thesiteisonly60milesfromalargemetropolitanareawithhighdemandfororganicproduce.

ForElectricalPowerSales

TheaddedefficiencyderivedfromtheCHPprocessthatWRBUwillemployallowsustooffercompetitivepricingtoourelectricalservicecustomers.

ThepowercanbeusedbythelargeutilitiesinOregonandWashingtontomeettheirrenewable-energy-usebenchmarksasregulatedbystatelaws.Ourenergyconsultantpredictsthatthe2020benchmarksinbothstateswillcausetheregulatedutilitiestobidupthepriceofrenewableenergy,includingtheRECsassociatedwiththepowersalewhichgototheproducer.

Relatedtothisisthefactthatabiomassboilercanproducesteady-state(baseload)power.Thisisneededtohelptobalancethepowersupplyfromthemajorrenewable-energysources(windandsolar),whichisvariableduetochangesinwindandsunshinelevels.AparticularfeaturefortheWRBU

12September1,2017

operationisthatitcanswitchpowertransmissionfromthegridtointernaloperations(e.g.,chipping,firewoodpreparation,heatstorage),whenthevariablesuppliersareworkingatfulloutput(e.g.,asunny,windyday).

InadditiontoworkingwithourenergyconsultantwehavealsohaddiscussionswithEnergyNorthwestandCREA(CommunityRenewableEnergyAssociation)forpotentialelectricalpowersalesto,forinstance,PortlandGeneralElectric(PGE).WRBUisamemberofCREA.

ForBiocharSales

Wehavecontractedwithabiocharconsultantandhavebegundiscussionswithacharproducerwhosellsrawbiocharinourregion.AnagreementisbeingcontemplatedthatwillallowustoofferBiocharonthewholesalemarket.WRBUisamemberoftheInternationalBiocharInitiative(IBI)whichwillkeepusinformedofthebestpracticesinBiocharproductionandsales.

ForFirewoodSales

WehavealreadybegunofferingthisproductsinceitdoesnotrequirethesameamountoffundingorplanningastheCHPfacilitybutdoesallowustousethewastewoodwehaveatourdisposal.TheWRBUhasagreementswithfourstateparkstoprovideapproximately4,000bundlesofcampfirewoodforthecurrentseasonatanagreeduponrate.WRBUisseekingsimilaragreementswithothercampgrounds,andwillbecomeevenmorecompetitiveonceourkilnisupandrunningandwecanproduceheattreatedfirewoodandpremiumcordwood.FirewoodhasbecomethefoundationfordevelopingtherestofourbusinessasitprovidesbothrevenueandameansforlettingpeopleknowaboutWRBULLC.Forlocalsalesoffirewood,theconsumerreceivesafliertellingthemaboutWRBUwhichincludesalinktoourwebsiteandWeFundercampaign.

13September1,2017

OPERATIONALPLANPhase1:SiteDevelopmentOnthe25acreswehaveleasedfromthePort,thereisalogdeck,equipmentforthecurrentfirewoodoperation,andseveralpiecesoftheCHPequipmentreadyandwaitingforinstallation.Thenextstepsaretobuildthebusinessmanagementsystems,developtherawmaterialsupplysystem,constructthebuildingtohousetheCHP,connectthenecessaryutilitiestothesite,andinstallthehot-waterlinestoserviceourcustomers.

Phase2:Construction,Installation,&SystemCoordinationWehaveacompletesetofengineeringdrawings,mass/energybalanceestimates,siteplans,equipmentspecifications,equipmentquotations,flowdiagrams,andcontroldiagramsforthephysicalplantbasedonthegasifiersystemalreadysituatedattheWRBUleasedsite.Notyetacquiredorsetupistheair-qualitycontrolequipment,heat(hotwater)distributioninfrastructure,wood-chipping/handlingequipment,ortheOrganicRankineCycle(ORC)electricalgenerator.Oncethesitehasbeendevelopedandtherestofthenecessaryequipmenthasbeenpurchasedanddelivered,thesystemintegrationprocesscanbegin.Bythispointintheoperation,wewillhireatleastthree(3)fulltimeworkerstomanagethesetupandimplementation.

14September1,2017

ThisCHPFacilitylayout,providedbyGreenMountainCollegeBiomassUtility,isthemodeluponwhichwearebuildingouroperation.

LegalEnvironmentTherearemanystateandfederalrequirementsthatgovernthedevelopmentandoperationofabiomassutilityfacility.WRBUwillobtaintheproperpermitsaswemovethroughthefinalengineeringdesignprocess,includingStormWaterandAirQualityincompliancewiththeWashingtonStateEnvironmentalProtectionAct(SEPA).WRBUhasobtainedWALabor&IndustriesInsurancetocomplywithrequirementsforworkers’insuranceandhealthandsafetystandards.SkamaniaCountywillissueabuildingpermittoverifythattheconstructionoftheCHPfacilitymeetsthestandardstructuralcriteria.AnarchaeologicalreviewofthesitewillalsoberequiredfromSEPA.

15September1,2017

FINANCIALSTRATEGYTocompletetheCHPfacilitywithequipmentinstallationtogeneraterevenue,theWRBULLCcharter(OperatingAgreement,AppendixD)hasbeenrevisedtoallowthesaleof24%ofequity.Thepriceis$20,000per1percentofequityinordertoraise$480,000.Thesharepricehasbeensetat$20persharewithaminimumpurchaseof5sharesrequired.Thedecisionwasmadetomoveforwardwiththesechangesbecauseofpositivefeedbackfromthecommunityandadesiretoencouragefurthercommunitybuy-in.Anadditionalbenefitwillbeourabilitytodemonstrateahigherlevelofprivatecapitalizationtofundingagencies.

TheopportunityforinvestmentwillbemanagedthroughWeFunderandadvertisedinvariousmedia.TheplanfortheremainderoftheneededcapitalistoapplyforfundingfromtheWAStateHousingFinanceCommission(WSHFC),theU.S.DepartmentofAgriculture’sREAPstaff,andtheEnergyFund2officeoftheWADepartmentofCommerce.

$3.1millionwillallowWRBUtobefullyoperational.Thisinvestmentlevelwillpurchasethebuilding,thewoodchippreparationanddeliverysystem;afirewoodprocessorandkilns;anair-pollution-controlsystem;heatexchangers;biocharcollectionandstorage;aforklift/front-loadercombination,ahot-waterdeliverysystemforheatcustomers;plustwoPratt&WhitneyPure-Cycle280ORCunits.

ExtensiveresourceshavealreadybeendedicatedtowardsthedevelopmentofWRBUandhavebeendetailedthroughoutthisBusinessPlan.Notalreadymentionedare:

• Approximately$30,000hasbeendirectlyinvestedbythefourchartermembersandtheyaredirectlyresponsibleforanadditional$20,000.

• LLCmembershaveinvestedthousandsofhoursintothisprojectoverthepast5years

16September1,2017

• ThisLLCiscurrentlyworthapproximately$500,000indirectcosts.Thisisbasedonthe$220,000costofthegasifier/burnerequipment,$100,000forthefinalengineeringstudy/report,$10,000forthegreenhousemarketviabilitystudy,developmentmoneyfromtheBonnevilleEnvironmentalFoundation(BEF),andcashinvestment.

MANAGEMENT&ORGANIZATIONWindRiverBiomassUtility,LLCManagement

TomLinde

Retired from the U.S. Forest Service as a FederalForestEnforcementOfficerandwithexperienceasa District Recreational Program Manager andGiffordPinchotNationalForestreforestationstandmanagement, Tom brings a career’s worth ofknowledgeandrelationshipsinloggingoperations,forestecology,andtimberissues.

NormWard

Having served as Assistant Forest Land Surveyorfor the Zoned Forest Boundary ManagementProgram in National Forests and Scenic Areas alloverthestateofWashington,Normhasextensiveexperience with surveying and supervising fieldcrews,inthePacificNorthwest.

17September1,2017

BobSourek

After beginning his career with the U.S. ForestService, Bobwent on to foundone of the first, andnow the largest, wood pellet manufacturingcompaniesintheUnitedStates.Bobhas30yearsofexperienceinthewood-fuelindustryineveryaspectfrom supply to sales to policy advice for state andfederallegislatures.

PaulSpencer

Currently serving as WRBU’s Managing Member,Paulisaretiredengineerwithsubstantialexperiencein mechanical systems installations and projectmanagement following a successful career in steelfoundriesandhigh-puritysilicaglassfabrication.

OrganizationForthestart-upperiod,thechartermembersmeetatleastoncepermonthtodiscussthecurrentstatusandplanfor‘nextsteps’.TheManagingMemberisthemainpointofcontactforpotentialfunders,suppliers,agencies,customers,etc.;butalldevelopmentsareforwardedtoalloftheLLCmembersforreview,discussion,anddecisions.

Duringconstructionandinstallationwork,theManagingMemberwillsuperviseandmonitorallcontractswithengineeringandcontractors.

AstheCHPfacilityisbeingconstructed,WRBUwillhireanon-sitemanagerforOperationsinadditiontotwoexperiencedmillwrightstolearnabouttheequipmentandsystemasitiscommissionedandintegrated.Oncefully

18September1,2017

operational,theCHPfacilityshouldmaintainten(10)FullTimeEquivalent(FTE)jobsspreadoutoverfour(4)maindepartments.

Table3:WRBUOrganizationChart

Toviewtheappendices,pleasevisitonlineat:https://portofskamania.org/wrbiomass/more-information/.Theappendixincludesthefollowingitems:

A. Siteplanandsitemap

B. Picturesofgasifiersystem

C. Financialproforma

D. LLCOperatingAgreement

E. AdmissionsAgreement

WRBUBoardofCharterMembers

GeneralManager

BusinessImplimentation

BusinessManagement

Sales&Marketing

FacilityDevelopment

Operations Repair&Maintenance