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1.0 INTRODUCTION This project description provides information on the design and operation of the Falcon Energy Agricultural Biomass Processing and Resource Recovery Facility. It supplements information provided in the Conditional Use (for resource recovery facilities) and Minor Subdivision Applications to facilitate agency and public review of those documents. Attachment No. 2 provides information relative to the potential environmental effects of the project. This attachment is broken down into the following major areas: Section 1 - Introduction Section 2 - Facility Description Section 3 - Impacts of Construction and Operation 1.1 Project Overview Falcon Energy is proposing to construct and operate an Agricultural Biomass Processing and Resource Recovery Facility (the "Facility") in San Joaquin County near Stockton, CA. The Facility will reduce, dry, and agglomerate biomass materials (briquetting system) and will recover used lubricants through a process of filtration, settling and evaporation (resource recovery system). Proper diverson of agricultural biomass is essential to support crop production in the county. A conditional use permit is required to construct resource recovery systems. The recycled lubricants will be used as an inexpensive source of heat for drying the biomass. Figure 1.1 shows a schematic representation of the process. Agricultural biomass from throughout the County would be shredded in the field and transported to the facility via main transportation arteries. This material would be acquired under contracts or on an ad hoc pick basis from growers in the region. Material would be collected, classified and separated to meet operational and biomass fuel quality objectives and, usually, chipped in the fields prior to being transported to the Facility. This separated and salvaged biomass material has commercial value as a biomass fuel for biomass power facilities in the region. Fuel trucks entering the facility would be weighed, inspected, and off-loaded into a large storage yard. The agricultural biomass would then be classified and further reduced in size prior to drying. The biomass, dried to <15% moisture by weight, is fed into the briquetting machines. Uniform, high-quality (high heating value and high density) briquettes are produced and transferred to a large storage shed prior to final shipment to local biomass-fired power plants. Fuel for the drying operation will come from the used lubricant recovery system. This portion of the facility will be similar to fifteen other such oil recycling facilities in the state. The used lubricants consist of used engine and general-purpose lubricating oils, transmission and hydraulic fluids, and machine lube-oils. Over 100 million gallons of used oil is generated in the state of California. DMV statistics Indicate that approximately 2.5 to 3 million gallons are generated annually in San Joaquin County alone. The facility will have the capacity to handle the amount generated within the County at present rates while allowing for future County growth. (3.6 million gallons per year) . 1