by : Clean Energy Future-Lordstown, LLC (CEF-L) April 14, 2014 What - - PowerPoint PPT Presentation

by : Clean Energy Future-Lordstown, LLC (CEF-L)

April 14, 2014

 What is the Project being proposed ?  Similar Projects in Ohio.  Background of Project proponent.  What are the factors that make Lordstown a top consideration ?  Where is the proposed Project location ?  Why is a zoning change necessary ?  How zoning change will not be detrimental ?  Near-term and long-term benefits to Lordstown.  Questions /Answers and Discussion.

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 Conversion of clean natural gas to useable electricity, 100% funded by private

investment; no Village, County, State or Federal funds

 Jobs, jobs, jobs:

• 550 union construction jobs over 2 ½-3 yr.
• 25 - 30 permanent jobs; $3,200,000/yr. of payroll plus benefits

 Addition to Village property tax rolls  A state-of-the-art energy facility (800 MW) that will also be available to support

local educational goals and internship training

 Clean, proven and quiet enclosed operations to meet all local, State and Federal

standards

 Positive “economic ripple effect” for Village, County and State

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 Natural gas is a U.S. produced energy resource  Natural gas used to heat homes and operate stoves, can also be

used to make household electricity

 Is our country’s cleanest fossil fuel  Combustion turbine technology has been modified from aviation

business for use in electricity production

 Same equipment characteristics as for aviation : highly reliable,

proven for decades, quiet and energy efficient

 Typical manufacturers of equipment: Siemens, G.E., ABB, Rolls

Royce and Mitsubishi

 Project design has any moving equipment fully enclosed in buildings

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 Apr. 2014 : Initial Zoning Meeting  Jun. 2014 : Preliminary engineering begins  Aug. 2014 : Preparation of permit applications  Sept. 2014 : PJM completes critical “Feasibility Analysis”  Sept. 2015 : Permit approvals (State and local authorities)  Oct. 2015 : Final approvals by PJM  Dec. 2015 : Financial Closing – Break ground  Dec. 2018 : Full scale operation

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 Fremont, OH (710 MW)

• Natural gas to electricity plant
• Developed by non-utility co. (Calpine Corp.); W. Siderewicz
• Operational since Jan. 2012 (pages 16 to 18)
• Now run by AMP Ohio (Columbus, OH)

 Oregon, OH (800 MW)

• Natural gas to electricity plant
• Developed by non-utility co. (Oregon Clean Energy/EIF);
• W. Siderewicz
• In active development since spring 2012
• Due to start construction : summer 2014
• Operational : summer 2017

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 Changing Federal environmental regulations have made it very

costly for outdated coal-to-electricity plants to remain open

 Coal plants that are closed, or planning to close in the region (pages

4 and 5) :

• - Niles
• Mitchell (W. Penn) - Elrama (W Penn)
• - Burger
• F.R. Phillips (W. Penn)
• - Eastlake 4+5 - Hatfields Ferry (W. Penn)

 The region’s electricity needs continue to grow, and require new

supplies of electricity

 Replacement projects are required to keep the electric grid “reliable”  New facilities using clean natural gas, represent most favorable

environmental and economic option

 Deregulation is new to Ohio, allowing non-utility electricity facilities,

like the Lordstown Project

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 Regional generation need to meet N.E. Ohio demand : 9,177 MW  Current regional generation : 8,647 MW  Likely regional generation in 2019 : 6,995 MW (1)  Shortfall of electricity production (2019) : 2,182 MW

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Note 1 : Perry, Davis Besse, Sammis, W. Lorrain and Cardinal plants

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 Bill Siderewicz – Pres.; Clean Energy Future, LLC  Thirty-four (34) years experience in developing and building non-

utility U.S. electricity projects

 Environmental/civil engineering training

• Cornell University – M.S. Engineering
• Northeastern Univ. – M.B.A. Finance
• Merrimack College – B.S. Engineering (cum laude)

 Registered Professional Engineer (P.E.)  Personally involved in developing both: Fremont and Oregon

facilities in Ohio

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 A 57 acre parcel has been optioned, to purchase, at 1107 Salt

Springs Road

 Property is adjacent to “Business Zoned” Village property  Property is located behind the previous Peterson Hardware store  Land is parallel to and adjacent to First Energy’s existing high

voltage (HV) electricity transmissions lines

 Project facility occupies only about 14 acres (or 25 %) of the total

site

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 Other relevant features :

• mature tall/dense trees exist on eastern and southern border of

property

• 1,500 ft. east of six (6) existing 140 +/- ft. radio towers
• total frontage on Salt Springs Rd. : 320 +/- ft. meets Industrial

zoning regulations.

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Clean Energy Future – Lordstown

Illustration of (3) Parcels that Constitute the Property

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 The proposed energy Project is considered industrial in nature since

it will :

• utilize industrial size/weight mechanical-electrical equipment
• convert natural gas (thermal energy) to electricity
• sell electrical energy/capacity on a wholesale basis

 Other existing industrial zones land has been considered and

evaluated, and would not support this Project

 Without a zoning change, the Village would not realize the many

benefits that will accrue to its citizens, via the proposed Project

 The current Project Property is zoned : B-1 (General Business) and

R-1 (Residential)

 A current Zoning Map is attached on the next page

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Zoning Map

 The option of using existing I-1 land was examined in great detail  A CRITICAL and NECESSARY element to Project success is close

proximity to high voltage (HV) power lines

 The USGS map on an earlier page illustrates the location of HV

lines relative to I-1 property

 When one compares the HV line location to the location of I-1 land

(previous slide) , it can be seen that they do not intersect

 Existing I-1 land might be useable if it were possible to build a new

HV line between the existing I-1 land and the existing HV lines

 The root problem and thus the FATAL FLAW in this logic, is the

inability for a private party to build such a new HV line

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 CEF-L is not an Ohio utility

• we do not have eminent domain rights to take land for HV lines
• utilities have this unique right
• there is no guarantee of being able to obtain land for new HV lines

 Unwilling Land Owners

• history is clear, land owners reluctant to grant easements or sell right of way for

HV lines

• HV lines make land under and around the lines virtually useless/valueless

 Public Opposition

• even if land easements are granted, neighbors object to new HV line construction

 New Cost of HV Lines

• existing I-1 land, on average, is 2 – 3 miles from existing HV lines
• building HV lines of this length would burden the Project with $ 4-6 million

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 Successful Ohio energy projects are adjacent to existing HV lines,

making proximity to existing utility HV lines a keystone building block to success

 A new energy Project provides reliability and stability to a regional

power system that is deficient in generation

 Without a zoning change the built in benefits to the Village will not

be realized

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 A zoning change might be detrimental if the new zoning somehow

precluded other uses, such as R-1 use

 One of the key features of the proposed Project Property, is its

proximity to existing HV power lines

 Parcel No. 45 –096207 has First Energy HV towers/lines located

directly on the land

 The other two adjoining parcels of the Project Property directly abut

the HV lines

 If locating R-1 adjacent to HV power lines was a desirable option,

then homes would co-locate with the lines throughout the Village

 There are 9 miles of HV lines in the Village  Homes are free to locate on either side of these lines or over a

distance of 18 miles ( 95,040 linear feet)

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 A review of existing USGS maps illustrate that no home owners

have made the choice of locating under or next to HV lines in the Village

 The table on the next page highlights this “homeowner” fact  In fact, it can be said that this new Project is the only entity seeking

to locate under/next to HV lines

 In conclusion : the proposed Project, and the associated zoning

change is not detrimental to the Village

 It should be noted that within the Village, R- 1 zoning and I-1

zoning abut each other for over 33,370 linear feet.

 The re-zoning of the proposed Property would add a deminimis

amount of R-1 to I-1 co-location of borders

 What is being sought via this petition (I-1 adjacent to R-1) is not

inconsistent with what exits throughout the Village today

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YES NO

Lake/pond/stream X School X Agriculture X Parks X Open space X Other residential X Cemetery X Railroads X Highways X Commercial uses X Airports O High voltage (HV) lines O

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 Not only will the Project not be a detriment to the Village, it will be a

significant contributor of benefit to the Village, including :

 No Village funds are required by the Project  No County, State or Federal funds are required by the Project  The $ 750 – 800 million investment will be privately funded  Union construction jobs (peak of 550) over a 2.5 to 3 year period  Use of local construction/erection contractors  Purchase of local supplies good and services during construction  Purchase of water : 2,900,000 gpd  Purchase of wastewater collection/disposal services : 500,000 gpd  28 permanent full-time jobs  Annual payroll : salary and benefits $3.2 million/yr

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 Purchase of local goods and services during the on-going

• perating period and maintenance cycles

 Hiring of local contractors during maintenance cycles  Diversify revenue receipts to Village, to balance GM impact  Diversification helps Village maintain long-term sustainability  Clean Energy Future-Lordstown (CEF-L) will provide a

Lordstown High School scholarship :

• $ 30,000 per year
• Starting at breaking ground
• Continuing for at least 15 years

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 Citizens of Lordstown

• loss of higher Village revenues
• lost opportunity to enhance Village services
• short changing of the “silent majority”

 Lordstown Educational Program

• lost opportunity to enhance Village facilities and teaching programs
• loss for current children and grandchildren of Village residents
• educational funding loss will be multi-generational

 Job/career training for Village young adults

• loss of co-operative education opportunities
• loss of job internships opportunities
• loss of education benefit from : Lordstown Project, international equipment manufacturers,

construction contractors, and design firms

• loss of skill training in : manufacturing, engr., technology, finance, design, and business mgmt.

 Misc. Economic Considerations

• lost business for local providers of : services, materials, goods and equipment
• loss of “spin-off” business prospects
• lost opportunity for increased construction and full time employment jobs

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 A new Project like Lordstown Energy Center can not proceed without first

passing all necessary permit/license requirements

 Village of Lordstown

• Must meet Planning and Zoning codes
• Meet Building permit requirements, and subject to Permit issuance

 Ohio Public Utility Commission

• Ohio Power Siting Board certificate
• Permit considers all impacts on Village/residents
• Includes public participation process

 Ohio EPA

• Must meet State/Federal environmental standards
• Includes public participation process
• Must use state-of-the-art environmental technology
• 24/7 monitoring

 PJM, LLC

• Regulate what entities can connect to the power grid
• Without their approval, Project can not proceed

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 Use of specialists/consultants by Village

• Project will reimburse Village for use of specialists
• Reimbursement based un agreed budget and work plan

 Village roadways

• During construction ( 2.5-3 yr.) Salt Springs Rd. traffic will increase
• If road quality impacted, Project will pay repair costs

 Improving Green Characteristics

• To the extent a tree is removed from the Property, two (2) will be planted
• Costs will be Project’s responsibility

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 Who benefits :

• local H.S. students
• local community college students
• Youngstown State students/faculty

 Who provides avenue for learning :

• major equipment designers and manufacturers
• engineering/design firms
• large local construction contractors
• Lordstown Energy Center project

 When does it occur :

• during design phase 1.5 years
• during manufacturing phase , 2 years
• during construction , 3 years
• during Project operations, 40+ years

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 Re-zoning is not the conclusion, but simply the beginning of a

mutual communication process

 Project details will be forthcoming, as part of the application process  Village and public will have input along the way  No development can proceed until the Village :

• issues approval of Zoning Application
• issues approval of a Building Permit
• endorses Ohio Power Siting Board application
• endorses Air Permit application with OhioEPA

 The Village and its citizens make ultimate GO/NO GO decision after

knowing all Project-related details

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 Questions  Comments  Discussion

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