Major Project Siting

2. SESSION 1 Major Project Siting A Positive Case Study Glenn McGinnisChief Executive OfficerArizona Clean Fuels Yuma

3. Presentation Overview • Arizona Clean Fuels Yuma Refinery (ACFY) project – Background, Overview and Impacts • Yuma County Community – Overview and Impacts • Maricopa County / Yuma County - Contrasts • ACFY Community Approach Strategy • Assessment of Results • Lessons Learned – “Do’s and Don’ts”

4. Arizona Clean Fuels Yuma Project • Proposed new oil refinery – 150 kBD • Original location in Maricopa County – moved to Yuma County due to Air Permit Issues / Public concern • Complex Refinery - $4 billion project including new pipeline from west coast of Mexico • Construction requires 3000 people – Operations requires 500 people • Air Permit issued by ADEQ – emissions less than 50% of those from existing refineries

5. Yuma versus Maricopa County Sites • Maricopa County site: • within “Ozone non-attainment area” • In an area targeted for significant population growth • Subject to environmental justice concerns • Local opposition – political and community – project viewed negatively • “Not a Good Choice” • Yuma County Site: • In remote area with little population & low land values • Local population interested in economic benefits – jobs, taxes, etc. • Active local support – political and community – project viewed positively

6. ACFY selected site – 45 miles from Yuma Refinery Location

7. Yuma County Community Overview • Yuma County located in the SW corner of Arizona – bordering California & Mexico • County population is approximately 100,000 in summer – approaching 200,000 in winter • Closest town – Wellton is 10 miles west of the site – with population of 2,000 • Farming area 3 miles northwest • Population in area is sparse • City of Yuma is 45 miles away – military and farm economy – growing industrial and commercial

8. Project Community Impacts • Construction – worker housing and services • Rely on “Trailer Parks” with some temporary housing • Company to provide transportation and on-site services • Traffic around the site • Operations – expect 500 employees & contractors • Will require housing – Yuma, Tacna, Dateland • Impact on Schools, Recreational Facilities, etc. • ACFY working with local Community College on training programs for local hiring

9. Community Concerns • Emissions impact on local environment – impact on farm crops assessed by Arizona Department of Environmental Quality in Permit Technical Support Document • Water use minimized by design – zero discharge • Local traffic and community services • Arizona Dept. of Transport/ACFY planning new interchange on I-8 • Impact minimal versus “Snowbirds” • Emergency Response capability and impact on local services • Impact on land values - positive

10. ACFY Community Outreach Strategy • Meet with local politicians and community leaders – early and often! • Provide details of project and its impacts – “good” and “bad” • Address key community concerns and be willing to “invest in community” – Training, Infrastructure • Be diplomatic to detractors – “Take the high ground” • Ensure State and Federal politicians and bureaucrats are briefed • Be proactive and available to the press

11. Assessment of Success • Excellent relationship with Yuma County Administration • “The way ACFY has approached Yuma has been a textbook model – one that everyone appreciated from the very first day” – C. Prochaska, Yuma County Supervisor • Public meetingsare well attended with more supporters than detractors • Air Permit re-issue actively supported by ADEQ, State Administration, Governor • No “organized” opposition during zoning hearings, permit hearings, public meetings • Frequent exposure in local and national press, radio and television

12. Lessons Learned • Find a location with minimal negative impact potential • Address key community concerns up-front and commit to good corporate citizenship • Be a champion for open communication • Deal with the tough issues and detractors • Build a network of influential supporters