STATE OF VERMONT

PUBLIC SERVICE BOARD

Petition of Beaver Wood Energy Pownal, LLC )

for a Certificate of Public Good, pursuant to 30 )
V.S.A. § 248, to install and operate a Biomass )
Energy Facility and an integrated wood pellet
manufacturing facility located north of the old Docke t No
)
Green Mountain Racetrack in Pownal, Vermont, )
to be known as the ‘ Pownal Biomass Project”
4 )

PRE-FILED TESTIMONY OF
THOMAS EMERO

ON BEHALF OF
BEAVER WOOD ENERGY POWNAL, LLC

October 26, 2010

The purpose of the pre-filed testimony of Mr. Ernero is to explain the Pownal
Biomass Project’s plans for the disposal of ash and to outline the Project’s
decommissioning plan.

(
 (

TABLE OF CONTENTS

1. Introduction .1
2. Ash Disposal .2
3. Decommissioning 3

C Petitioner’s Exhibit TE-1 Resumé of Thomas Emero

(
f STATE OF VERMONT
PUBLIC SERVICE BOARD

Petition of Beaver Wood Energy Pownal, LLC )

for a Certificate of Public Good, pursuant to 30 )
V.S.A. § 248, to install and operate a Biornass )
Energy Facility and an integrated wood pellet )
manufacturing facility located north of the old Docket N °.
)
—

Green Mountain Racetrack in Pownal, Vermont, )

to be known as the “Pownal Biomass Project” )

PREFILED TESTIMONY OF
THOMAS EMERO

ON BEHALF OF
BEAVER WOO!) ENERGY POWNAL, LLC

1 1. Introduction
C
2 Ql. Please state your name, business address and employment.

3 Al. My name is Thomas Emero, and Jam a principal of Beaver Wood Energy

4 Pownal, LLC. My full resumé is provided as Petitioner’s Exhibit TEl.

5 Q2. Please describe your educational background and professional experience.

6 A2. I graduated from Fairfield University with a BA in English in 1986. I then

7 Attended South Western University School of Law and graduated from Vermo
nt
8 Law School in 1990 with both a Juris Doctor and Masters of Studies in

9 Environmental Law.

10 Q3. What is the purpose of your testimony?

11 A3. The purpose of my testimony is to explain how the Project intends to

dispose of
12 the ash generated from the biomass facility and to outline the
Project’s
13 decommissioning study.
 ____

Pownal Biomass Project, PSB Docket No.

Prefiled Testimony of Thomas Emero
October 26, 2010
Page 2 of 4

1 Q4. Have you testified previously before the Board?

2 A4. No.

3 2. Ash Disposal

4 Q5. Please describe how the Project will dispose of the ash generated
by the biomass
5 facility.

6 A5. We do not intend to dispose of our wood ash but rather use it as
organic fertilizer.
7 Wood ash has been successfully recycled from biomass plants
in New England
S for over 20 years just as ash from wood stoves has been used
by gardeners and
9 farmers for as long as wood has been burned. Wood ash from
bioniass plants is
10 identical in nutrient and chemical quality to wood ash from residen
tial wood
11 stoves and is an excellent soil amendment ideal for balancing
soil ph and
12 enhancing nutrient levels. A ton of wood ash provides approximately the

13 following nutrients; 666 pounds of lime, 200 pounds of calcium

, 75 pounds of
14 potassium and 20 pounds of magnesium, all of which are nutrien
ts that are
15 typically needed in New England agricultural soils. In addition to
being used by
16 farmers as a soil amendment, wood ash is used in compost faciliti
es and by
17 topsoil dealers in New England. Wood ash from the McNeil biomas
s power plant
18 in Burlington, Vermont has also been approved for use in certifie
d organic
19 agriculture. We have been in contact with, and are currently review
ing proposals
20 from, two organizations which have significant experience runnin
g wood ash
21 recycling programs for biomass power plants in New England.
These companies
22 are Resource Management, Inc., and New England Organics.
 ____

Pownal Biomass Project, P58 Docket No.

Prefiled Testimony of Thomas Eniero
October 26, 2010
( Page3of4

1 3. DecommIssioning

2 Q6. Please give the Board an overview of the Project’s decommissio

ning plan.
3 A6. Based on the history of other biomass projects, lam of the opinio
n that no
4 decommissioning plan is necessary. The useful life of the Proj
ect is expected to
5 be at least 30 years and past experience strongly suggests the the
at end of its
6 useful life the physical plant will retain enough value to make
decommissioning
7 unnecessary. All of the biomass plants built in New England
since the 1980’s of
8 which I am aware, are all either still running or, in regards
to a couple of very old
9 and uneconomically small (less than 20 MW) plants that are curren
tly not
10 running, are for sale for significant value. Power plants, like
much of the
11 manufacturing once present in this country, has significant value
overseas in
12 developing countries and there is an existing industry that
dismantles U.S. retired
13 manufacturing facilities and moves them to developing countr
ies. Even old and
14 non-operating plants retain significant economic value, value
that exceeds the
15 value from scrappmg the facilities. However, even assuming
the worst case
16 scenario, which is that at the end of its life the Project is unecon
omic to run and
17 there is no oversees market for the physical plant the follow
, ing would hold true.
18 First, there are several buildings which would likely have continu
ing operational
19 value- These are the office building, storage building and pellet
building which
20 could easily be used for other purposes. Even the concrete
fuel storage silos
21 could easily be used for storage. The remaining components
of the fuel yard and
22 electrical switch yard have high resale value and could easily
be sold off.
 ____

Pownal Biomass Project, PSE Docket No.

Prefiled Testimony of Thomas Emero
October 26, 2010
( Page4of4

1 Additional structures include the boiler building and stack. There are
a number of
2 very high value components in these buildings which could be sold.
Most all of
3 the remaining components and structures of the power and pellet plant
have a
4 high scrap value meaning that even after the higher value components
are
5 removed, such as large electric motors and pumps, there is consid
erable value in
6 tearing them down for the recyclable scrap metal. In addition, there
are many
7 components which have tremendous salvage value including the turbine
generator
S which could be worth millions. As a result, there is plenty of value
in the Project
9 to ensure the physical plant does not become an abandoned eyesore pay
at the end
10 of its useful life. So, unlike large old factory buildings which are presen
t
II everywhere in New England, some of which were abandoned, these
facilities
12 should be thought of not so much as buildings, but rather a series of very

13 expensive machines, many of which have a simple metal shell over

them to
14 protect them from the elements. No one would abandon them there
as is too
15 much value there.

16 Q7. Does this conclude your testimony?

17 A7. Yes.

(
 STATE OF VERMONT
(
PUBLIC SERVICE BOARD

Petition of Beaver Wood Energy Pownal, LLC )

for a Certificate of Public Good, pursuant to 30 )
V.S.A. § 248, to install and operate a Biomass )
Energy Facility and an integrated wood pellet ) Dock e t No
manufacturing facility located north of the old )
Green Mountain Racetrack in Pownal, Vermont, )
to be known as the “Pownal Biomass Project” )

PREFILED TESTIMONY OF
THOMAS EMERO

Exhibit BWEP —TE -1

(
Resumé

p
 THOMAS D. EMERO, Esq
82 Village Street
Medway, MA. 02053
Home: (508)321-1181 Cell: (508)361-1008
toniememgmai1. corn

PROFESSIONAL:

Renewable Energy Development, LLC (RED) Medway, Massachusetts, May 2008 — Present
Founder and President of RED, a power development and consulting firm.

• RED has provided consulting services for several developers of biomass power generation
including the partnership of DukeJAREVA called ADAGE, Clean Power Development;
LLC, Ze-gen, Inc., Marwood, Ltd, Concord Power & Steam, LLC, Madera Energy, Inc.,
and Jay Cashman, Inc.
• Consulting services provided include drafting and negotiating many types of contracts,
preparing development documents for financing, permitting, conducting of meetings and
negotiations with various governmental entities, organizing the legal affairs of the business
including human resource policies, contract authority, purchase order procedures, creation
of form documents, creation and maintenance of document control log, creation of on-Line
and paper filing systems, legislative and regulatory review, creation and maintenance of
corporate books and records, advising senior management on business strategy and markets
and conducted due diligence review of numerous projects including development projects
( as well as operating assets,

GenPower Services, LLC (GenPower), Needham, Massachusetts, June 2001 May, 2008 —

General Counsel for GenPower, a developer of coal, gas, hydro and biomass fired power plants
with numerous subsidiary entities and approximately 50 employees.

• General Counsel and Shareholder of GenPower and senior management team member
participating in the day to day business decisions of the company.
• Managed all outside legal support maximizing their efficiency and substantially reducing
legal expenses including such matters as contract drafting, due diligence, acquisitions,
financing and litigation.
• Responsible for the negotiation and drafting of legal documents including options, leases,
purchase and sale, asset purchase, joint development, confidentiality, consulting services,
easement purchases, zoning changes, water and waste water purchase agreements,
wastewater discharge agreements, local ordinance amendments, term sheets, bid
specifications, turn key construction contracts (EPC), purchase orders, confidentiality
agreements, and letter agreements.
• Director of Renewable Energy Projects, advised and assisted project managers in all aspects
of project development including legislative, lobbying, peninitting, local property and
easement purchases, title work, environmental assessments, zoning changes, water and
waste water purchase agreements, wastewater discharge agreements, local ordinance
( amendments, and the management of outside permitting consultants.
• Corporate Secretary and Clerk, responsible for the maintenance of all meeting minutes,
corporate filings, corporate governance, and the management of all insurance policies.
 • Perform Administrative Law function including negotiation of interconnection agreements
with local utilities and representation before FERC.
• Perfonned human resource function including drafting and administering employee
handbook, management of support staff, employee personnel matters, 401K program,
health insurance and benefits program, maintain the corporate records, 13,000 sqft office
building reconstruction, lease agreement and filing system.

Mternattve Energy, Inc. (“AEI9, Bangor, Maine, September 1993 June 2001—

Genera] Counsel for AEI, an owner and operator of 4 wood-fired power plants with 14
subsidiary corporations and 4 limited partnerships employing over 90 employees and owning
over $200 million in assets.

•
Negotiated and prepared the documentation for the sale of three operating power plants for
$40 million dollars.
• Negotiated power purchase agreement buyouts, lease termination agreements, and
numerous other significant transactions some with values of $109 million dollars, $80
million, and $10 million.
• Negotiated and prepared all agreements and contracts for AEI and all related entities
including asset purchase agreements, corporate buyout agreements, power purchase
agreements, financing agreements, environmental permits, Federal Energy Regulatory
Commission filings and Department of Energy filings.
• Managed all litigation and negotiated all settlements of disputes involving ABI and its
affiliates which included disputes between partners, legal malpractice, construction
contracts, Maine sales and use tax, property tax, federal income tax, OSHA violations, state
and federal environmental permit violations, personal injury, property damage aixl breach
of contract claims and personnel matters.

Rudman & WlncheH, LLC, Bangor, Maine, September 1990— September 1993
Associate in the general practice of law and environmental law.

• Represented corporations in complex transactions, prepared and negotiated numerous types

of contracts including purchase and sale, construction, employment, and franchise.
• Responsible for the negotiation and resolution of numerous civil, criminal, contractual,
corporate, environmental and employment disputes.
• Responsible for the negotiation and resolution of Federal and State environmental
contamination cases including Superfund matters involving hazardous wastes and
petmleum products.
• Negotiated and administered cleanup contracts with environmental cleanup consultants.

EDUCATION:

Vermont Law School, South Royalton, Vennont September 1988 May 1990 —

Juris Doctor Cum laude, Top 12% of class (18/142)

—

Vermont Law School, South Royalton, Vermont, September 1988— May 1990
Master of Studies in Environmental Law Curn laude
—

Southwestern University School of Law, Los Angeles, CA, June 1987— May 1988, SCALE
Program
Fairfield University, Fairfield, CT, September 1982 May 1986
—

BA. English, minors in Economics and Philosophy, Deans List

 Cheverus High School, Portland, Maine, 1986 Magna Cum laude

( BUSINESS: Owner: Garland Street Laundry, Inc., and Emero Enterprises, LLC

PERSONAL: Member of the Maine and Massachusetts Bar. Married, father of two children.
Interests include real estate development, construction and remodeling, politics, literature,
movies, golf, skiing, boating, Licensed Massachusetts Contractor.

REFERENCES AVAILABLE UPON REQUEST