1. Following the Policy Flow:
Where’s the Money?

2. Presentation Outline
• Overview of Westar
• Programs Affecting Bioenergy Industry
• Policy Outlook
• Policy Recommendations
• Question & Answer Session

3. Mission Statement
Westar Trade Resources is committed to assisting clients to develop sustainable
businesses in three ways:
Sustainable Ecology - Providing solutions that protect, preserve and enhance the
environment for the needs of today without detracting from the capability to provide
for the needs of future generations.
Sustainable Technology - Developing new and improved sustainable technologies
that can provide technical solutions for a wide range of problems and also create
new opportunities.
Sustainable Profitability - Creating long-term financial stability by developing and
executing cost-effective financing solutions, risk strategies, and an adequate capital
base.

4. Business Development Services Include:
Planning Developing Financing
Feasibility Studies Marketing Development Traditional Financing
Business Plans Off-take Contracts Non-Traditional
Site Selection Product Development Financing
Feedstock Sourcing International Marketing, USDA & DOE Loan
Risk Assessment Development & Financing Guarantees
Business Development Government Grants
Studies OPIC and Ex-Im Bank
Financing
Governmental Liaisons

5. Key Client Sectors
Technology Investors & Banking &
Providers & Industry Finance
Stakeholders Stakeholders Stakeholders
• Biofuels & Bioproducts • Traditional & Investment • State & Federally
• Renewable Power Banks Charted Banks
• Value-Added Agriculture • Venture Capital Companies • Investment Banks
• Water Production & Recycling • Multinational Corporation • Equity Providers
• Smart Grid Technologies • Family Office & Hedge • Family Offices &
• Sustainable Fiber Production Funds Hedge Funds
• Energy Efficiency • Oil & Gas Companies • International
Technologies • Food Production Development
• Transformational Technologies Companies Banks
• Air Transport Companies
• Air, Land, & Water Fuel
Users

6. Westar Bioenergy Clients
$54 million USDA Loan Guarantee
$99 million USDA Loan Guarantee $250 million USDA Loan Guarantee
$105 million USDA Loan Guarantee
$232 million USDA Loan Guarantee $88 million USDA Loan Guarantee
*Westar has assisted clients in obtaining over $900 Million in total financing.
4

7. Programs Affecting Bioenergy Industry
Current ARRA EISA Section DOE
Legislation 2009 of 305, Rural Budget
2007 2008 Farm Bill Programs Electrifica Appropria
tion Act of tions
1936; 7
U.S.C.
904, 935
Type 1603 Tax RFS2 USDA USDA USDA USDA Value- B&I USDA DOE
Grant 9003 9007 9011 9008 Added Loan Rural Grants
Loan Grant BCAP BRDI Producer Guarant Utility
Progra & Grants Grants Grant ee Service
m Loans Program Program
Pellets X x x x x x
Power X x x x x x x
Thermal X x x x x x x
Biogas X x x x x x x
Advanced x x x x x x x x
Biofuels
Chemicals x x x x

8. 1603 Tax Grant - $11.6 Billion
• As of May 8, 2012, the 1603 Program had awarded $11.6 billion to almost
38,000 projects and $38.6 billion in total investments.
• Awards under the program have been made to all 50 states. Eight states have
received over $350 million in 1603 program awards.
Source: NREL: 1603 Treasury Grant Expiration: Industry Insight on Financing and Market Implications

9. USDA 9007 Renewable Energy for America
Program (REAP) - $800 million (2003-2012)
• The REAP Program has assisted rural producers and small businesses in
developing thousands of renewable energy and energy efficiency projects,
and created or saved thousands of jobs.
• REAP loans and grants allow for a longer- term loan for these type of
investments that can be paid for with the energy savings or profits from the
investment.
• Since 2003, REAP has funded more than 1,000 solar projects and over 560
wind projects.

10. USDA 9003 Biorefinery Loan Guarantee
Program – $1.08 billion
• Program has been very successful at assisting in the construction of
advanced biofuels projects. Currently, nine projects have been awarded with a
combined total loan guarantee value of over $1 billion.
• Another $1 billion leveraged in equity and provided a bridge for technology risk
for a first of a kind commercial facility.
• This program has been instrumental in bridging the technology risk gap for
financing, and getting some steel in the ground as well as establishing
commercial production targets for RFS2.

11. RFS2
• With long development timeline and barriers to entry for advanced biofuels, the
RFS has stood as the best worldwide development policy platform.
• Stability and strength of a long-term policy like the RFS has encouraged
investors to make these long-term investments with the goal of an assured,
long-term market in the future.
• Total private sector investments surpassed $10 billion in 2011 of which $3.8
billion was in new biofuels financing or in advancing early-stage companies.
The U.S. leads the world as the leader in new investment, with 22 transactions
totaling $1.104B (Source: Biofuels Digest, “Biofuels DealFlow”).
• If the RFS were to be modified or eliminated, investment dollars would be
quickly diverted into other sectors.

12. USDA Business and Industry Guaranteed
Loan Program - $1 billion for 2013
• Strong program with mandatory appropriations each year, and can be used for
a wide variety of projects in rural areas, including all of the types of renewable
energy projects that we are examining.
• Recent drawbacks included the lowering of the lending limit from $25 million to
$10 million. As most renewable energy and biochemical projects are usually
over this limit, the B & I program will have a diminished ability to commercialize
the industry in the near term.

13. USDA Rural Utilities Service - $263 million in
2012
• As recently reported in Biomass Magazine, the Rural Utilities Service (RUS)
recently awarded $263 million in loan guarantees to three biomass power plant
projects.
• As other sources of financing are drying up or changing the in the renewable
electricity space, this program is a good one to consider for future funding if a
company is committed to walking through the process and can live with a slow
approval process.
• Funds are available as the RUS has been a fixture at USDA since 1936, and
funding for this program is provided by interest and principal payments from
other loans made over the years to fund most of the rural electric and
telephone cooperatives.

14. Policy Outlook for Bioenergy Industry

15. Policy Recommendations
• Expedited review process for the USDA 9003 program: Because the review
process is shared by USDA, DOE, and OMB, a more seamless, transparent,
and customer service-oriented approach would assist in implementing the
process of approval and allow for the evaluation and review process to
proceed in a more timely manner.
• Increased Research and Development Dollars: This is important to
establishing lower cost technologies, better feedstocks, and more efficiency in
the marketplace. However, the majority of these dollars need to be directly
tied to commercialization performance in the short term as opposed to basic
research and development.

16. For more information, contact:
Cindy Thyfault, Founder and CEO
Westar Trade Resources
2030 Main Street, Suite 410
Dallas, TX 75252
214-320-0900
www.westartrade.com