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How Can Alternative Jet Fuels Be Integrated into the Airport Setting? 43 5. Does the business plan show a profit under most scenarios? The business plan should demonstrate the effect that changes in feedstock costs or conven- tional jet fuel costs will have on the profitability of the operation. Airports should question what types of alternative jet fuel purchase agreements the operation has in place and ask whether the operation will be profitable if a major customer does not honor its agreement and the alterna- tive jet fuel must be sold on the spot market. 6. Is there a creditworthy entity that will guarantee financing? For projects that might not otherwise meet all the requirements needed to obtain private- sector financing, the government may be able to step in to bridge the gap between the project's actual and required equity and debt returns. Lenders are generally more risk averse than equity providers and need to be confident that the loan will be repaid under the most adverse circum- stances. With new industries, this may involve obtaining a loan guarantee that ensures debt repayment if the alternative jet fuel venture fails. Developers will likely seek debt guarantees from a range of federal, state, and municipal agencies. Airport management should have a plan for how it will respond if such a request is made. After completing the grading, fill in the appropriate circle in the "Green," "Yellow," or "Red" column in the "Financial" row of "Worksheet 6: Evaluation Summary." 3.5.5 Overall Evaluation and Selection of Options for Further Study After the regulatory, environmental, logistical, and financial considerations for a particular option have been evaluated, "Worksheet 6: Evaluation Summary" in Section 5.2.6 should have the consolidated results from the individual worksheets. Once all alternative jet fuel options under consideration have been evaluated, they can be compared against each other to select the ones that should undergo a more detailed analysis. Ideally, there will be options with ratings of just green or green/yellow. These are candidates for further study. Options with a red rating should be redrawn and modified until their evaluation results in only green or yellow ratings. 3.6 Suggested Next Steps Those options that ranked green or yellow as described in Section 3.5.5 advance to the next step of a more detailed evaluation. Such an evaluation should entail some or all of the following steps: · Thorough analysis of the regulatory aspects, including detailed descriptions of how the option complies with each applicable regulation and policy. · Thorough analysis of the environmental aspects, including assessment of life-cycle GHG intensity as provided by the responsible external agency (e.g., EPA), or as developed following procedures provided by that agency. Similar analysis applies to environmental benefits asso- ciated with particulate matter. · Thorough analysis of the logistical aspects, including an end-to-end engineering plan quan- titatively addressing each stage in the processing, movement, and storage of the alternative jet fuel. · Thorough analysis of the financial aspects, including an investment-quality business plan that specifies capitalization, revenue, costs, and risks at appropriate intervals over the lifetime of the enterprise.