Biomass Contract Amplifications

Forestry and Fuel Collection Practices

• No virgin wood fiber, other than from storm debris, shall be collected or used in association with plant operations.
• Fuel collection and plant operations shall be performed in strict accordance with Texas Forestry Best Management Practices, developed by the Texas Forest Service.
• Nacogdoches Power shall participate in the Texas Forestry BMP Implementation Monitoring program and submit annually to the City of Austin and Austin Energy, a report detailing compliance with Texas Forest Service best management practices. The City will make this report available to the public electronically.
• Austin Energy shall have the right, but no obligation, to supply fuel for plant operations without penalty or fee.

• The fuel source and operation of the plant must meet Texas Renewable Energy Credit (REC) standards. If those standards are weakened in the future by the state, Nacogdoches Power must maintain a level of protectiveness at least as strong as today’s REC standards.
• The fuel source and operation of the plant must meet eligibility requirements for federal renewable energy production tax credits.
• The benefits of renewable energy credits, renewable energy tax credits, carbon credits and other applicable clean energy incentives from local, state and federal governments shall pass directly or indirectly, and in total, to the City of Austin and Austin Energy.
• To the extent that a definitional change such as a strengthening of requirements may render the energy produced from the plant ineligible for RECs, tax credits or carbon credits, Nacogdoches Power shall make all good faith efforts to comply with the new standards.

Air and Water Quality Compliance and Monitoring

Nacogdoches Power shall annually provide to the City of Austin and Austin Energy a report detailing plant compliance with state and air quality permit provisions, including:

• Discharge Monitoring Reports on its wastewater discharge permit;
• Deviation Reports and Excess Emissions Report;
• Any other reporting already required as part of Flexible Permit No. 77679 and PSD-TX-1061 and its TPDES Discharge Permit;
• Any other compliance/enforcement issues with the Texas Commission on Environmental Quality or Environmental Protection Agency related to the wastewater discharge permit and state and federal air permits.