Attachment A For Local Governments Requesting a 2014 Capital Appropriation I.

Project Basics 1) Name of the local government or political subdivision that is submitting the request: Koochiching Development Authority 2) Project title: Renewable Energy Clean Air Project (RECAP) 3) Project priority number (if the applicant is submitting multiple requests): 4) Project location (please list town(s)/city(ies) and county(ies): International Falls, Koochiching County, Minnesota 5) Ownership and Operation: Who will own the facility: Koochiching Development Authority (or possible lease arrangements allowed under MN Statutes 16A.695) Who will operate the facility: Koochiching Development Authority Names of any private entities that will occupy/use any portion of the building: 6) Project contact person (name, phone number and email address): Koochiching County Commissioner Rob Ecklund (218) 341-6133 Rob.Ecklund@co.koochiching.mn.us

II. Project Description 7) Description and Rationale:Provide a brief project description and rationale (one page maximum).As part of the project rationale, be sure to explain what public purpose the project is meeting - and how.

This request is for $12 million in state funding to acquire land, predesign, design, construct, furnish and equip a new waste management and energy facility to be located in International Falls, Koochiching County. RECAP is a proposed demonstration project in the design and permitting stage that will offer an innovative approach to waste management for Koochiching County, the regional area in northern Minnesota, and for future waste projects in Minnesota and the rest of the nation. The project will use municipal solid waste and other biomass materials as a fuel source to create renewable energy. The renewable energy source reduces the need for landfills, and prevents potential environmental issues like groundwater contamination and the release of methane to the atmosphere from

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landfills. RECAP provides new technical jobs; jump starts collaborative efforts from multiple political jurisdictions; and will spur economic recovery for the area. The proposed Koochiching County RECAP project is to construct and operate a Plasma Torch Gasification waste-to-energy facility, with no significantly adverse environmental impacts. Using municipal solid waste and bio-mass residue as feedstock, this process converts biomass to syngas, biofuels, steam or electricity. The conversion process is conducted through plasma gasification at ultra-high temperatures doing its work within an oxygen deprived vessel. Organic materials gasify for energy conversion and inorganic material vitrify to a non-leachable slag to be used for road aggregate, tile or rock wool. As a result, the environment is protected, very little waste goes to landfills,and a reliable source of energy is provided at a competitive price. RECAP is presently in the preliminary design and permitting stage after conducting a feasibility study. The feasibility study segment was funded by a $400,000 State of Minnesota general appropriation grant. The preliminary design, permitting and pre-construction services segment has been issued a U.S. Department of Energy congressionally directed project allocation of $2,345,100. The State of Minnesota has appropriated $2,500,000 from the State Bonding bill of 2006 for predesign and design. Koochiching Development Authority has enlisted the professional services of Coronal, LLC (a Minnesota based plasma gasification consultant and developer) and AlterNRG/Westinghouse Plasma Corporation to provide the plasma torch technology. Final siting options include being a part of the Multi-Model Facilities District in International Falls, with RECAP providing heating to the industrial park, and production of steam, electricity and/or biofuels for sale. There is a major public purpose for this project. Presently, the State of Minnesota has only 21 landfills accepting municipal solid waste. Over 2 million tons of waste is deposited in these landfills every year. The Minnesota Pollution Control Agency has made policy statements that these landfills will meet capacity in 15 years, and now is the time to alter waste management for the state by implementing more recycling and waste-to-energy solutions. RECAPoffers both a recycling and a waste-to-energy solution in this area for the state. 8) Square Footage: For new construction projects, identify the new square footage planned. 100,000 Square Feet 9) For remodeling, renovation or expansion projects identify the total square footage of current facilities, the square footage to be renovated, and/or the new square footage to be added. Koochiching County Waste Transfer Station Approx. 12,000 square footage of current facility

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Approx. 5,700 square footage to be renovated III. Project Financing The following table describing the total amount of financial resources needed and the proposed uses of funds must be submitted for each project. Enter amounts in thousands ($100,000 should be entered as $100). Enter the amount of state funding requested on the line State GO Bonds Requested. Uses of Funds must show how all funding sources will be used, not just the state fundingrequested. Sources of Funds total must equal Uses of Funds total. In most cases, the state share should not exceed 50% of the total project cost. Do the project cost estimates below include inflation (see question 10 below)? Sources of Funds
Dollars in Thousands Prior Years For 2014 For 2016 For 2018

Yes X

No

Total

State GO Bonds Requested Funds Already Committed State Funds City Funds County Funds Other Local Government Funds Federal Funds Non-Governmental Funds Pending Contributions City Funds County Funds Other Local Government Funds Federal Funds Non-Governmental Funds l TOTAL*

$12,000 $2,745.10

$12,000

$2,345.10

$12,000 $26,000 $5,090.20 $50,000 $55,090.20

Uses of Funds
Dollars in Thousands

Prior Years

For 2014

For 2016

For 2018

Total

Land Acquisition Predesign (required for projects over $1.5

M)

$2,090.20 $3,000.00

Design (including construction

administration)

Project Management

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Uses of Funds
Dollars in Thousands

Prior Years

For 2014

For 2016

For 2018

Total

Construction Furniture/Fixtures/Equipment Relocation (not bond-eligible) TOTAL* * Totals must be the same. IV. Other Project Information 10) $5,090.20

$25,000 $25,000

$50,000

55,090.20

Project schedule. Identify the date (month/year) when construction crews are expected to first arrive on site, and the date (month/year) when construction will be completed with a certificate of occupancy. Anticipated Start Date: 10/31/2014 Anticipated Occupancy date: 10/31/2016 (For facilities projects, this information will also be used to calculate an inflation cost, using the Building Projects Inflation Schedule posted on the Minnesota Management and Budget website.

11)

Predesign.For projects with a total construction cost of $1.5 million or more: Has a project predesignbeen completed? X Yes No

If so, has the predesign been submitted to the Commissioner of Administration? 12) Yes X No

State operating subsidies.Identify any new or additional state operating dollars that will be requested for this project.(Specify the amount and year, if applicable). Sustainable building guidelines. Discuss how the project meets or exceeds the Minnesota Sustainable Building Guidelines establishedunder Minnesota Statutes, section 16B.325, which may be found at http://www.msbg.umn.edu/. These are now mandatory for all new buildings or major renovations receiving state bond funding. RECAP meets and exceeds the Minnesota Sustainable Building Guidelines. RECAP will exceed the state energy code by at least 30%; during the design and construction phase of the project there will several lifetime cost assessments covering portions and the total integration of the project; energy conservation improvements will be in place particularly since RECAP produces its own heating and cooling; air quality standards will be met as we work with MPCA in air permitting; lighting standards will be met; a healthy working environment will be achieved with Hazardous Ops implementation; productivity improvements and energy efficiency are high goals for the project, with efficiencies in the 80-90% range; the project itself is creating renewable energy and creates a renewable source of synthetic gas that is converted to steam,

13)

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electricity or biofuels; and the project is a distributed energy generator, directly involved in waste reduction and management.

14)

Sustainable building designs. Explain the extent to which the project will use sustainable building designs, if applicable. P0 through P6: All of these items will be done. Integrated design and life cycle costing are high priorities for RECAP. S.1 through S.13: All of these items will be considered. Stormwater, soil management, water efficiency, waste water management and transportation impacts will all be considered. E.1 through E.4: In the building design, energy efficiency, renewable energy and efficient equipment will be incorporated. I.1 through I.12: All items will be considered in the building design. M.1 through M.3: All items will be considered in the building design, particularly when the building itself is being used for waste reduction and management.

15)

Resolution of support and priority designation. Has the governing body of the applicant passed a resolution of support (which indicates the projects priority number if the applicant is submitting multiple requests)? X Yes No If so, please attach the signed resolution. If not, please indicate when the resolution will be coming (and forward the resolution to MMB when available): July 9, 2013(The 2012 resolution will be updated and re-submitted on this date).

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