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Wood-Peat Municipal Solid Waste Agricultural Byproducts Alaska Bioenergy Program Quarterly Report Apr to Jun 1994
wood - peat municipal solid waste agricultural byproducts Alaska Bioenergy Program Quarterly Report April - June 1994 State of Alaska Department of Community and Regional Affairs Division of Energy TABLE OF CONTENTS I. TASK FORCE ACTIVITIES ...............ccccccccccceceeeeeeeeee ents eeeeeeeeeeeneeee en 2 ll. | INFORMATION AND TECHNICAL ASSISTANCE ..................ccceeeeeee ee 2 lll INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT ...............:0cceceececeececeececeeeeeeeeeeeeeeeeeeeeeeeeseseneneaee te 2 IV. INDUSTRY ACTIVITIES IN ALASKA .................:ccceeeeeee sense eeeeeeeeeees 10 A. Southeast Alaska...........cccccecneceeeececeeeeeeeeeeeeeeeeeeeeeeeeseneeeaaes 10 B. Southcentral and Interior Alaska ............:.ceceeeeeeeeeeeeeeeeeeeeeeee oe 10 APPENDICES Appendix A = Quarterly Project Status Reports e State of Alaska Bioenergy Technical Assistance Program Small Commercial Wood-Fired Boiler Demonstration Seward Spring Creek Prefeasibility Analysis Juneau Lemon Creek Prefeasibility Analysis Fairbanks Waste-to-Energy Sitka Co-Generation South Tongass Wood-Waste Appendix B_ Federal FY93 Bioenergy Technical Assistance Grant Application Appendix C Current Industry-Related News Articles TASK FORCE ACTIVITIES Peter Crimp and Dennis Meiners participated in the annual planning meeting of the PNA RBEP Advisory Group on May 9-11. The Alaska program assisted in scheduling and arranging the meeting. In May we submitted an application for the Federal FY94 Bioenergy Technical Assistance Grant (see Appendix B). INFORMATION AND TECHNICAL ASSISTANCE The Division of Energy received and responded to 15 requests for information regarding bioenergy facilities, fuel availability, markets for industrial products, and current projects this quarter. A list of contacts is given below. The Division also co-sponsored a small-scale alternative energy conference with Morgantown Energy Technology Center (METC) in Anchorage on May 17-18. One purpose of the meeting was to promote an interchange of information between researchers and technology developers and Alaskan utilities and decision makers. Over 100 individuals from Alaska and the lower 48 attended the workshop. An agenda is attached in Appendix B. INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT Appendix A includes a detailed background on current projects. Interagency Coordination This quarter the Division worked with 1) the Department of Environmental Conservation to identify necessary steps for integrating waste to energy development as a solid waste alternative in Southeast Alaska, 2) Morgantown Energy Technology Center to identify five potential sites for demonstration of biomass and coal technologies, and 3) the U.S. Environmental Protection Agency to develop a possible project under the Energy Technology Initiatives program. Seward Wood Waste Project In April the Seward sawmill announced that they expected to close in mid-June. Mill owners listed two reasons for the closure: high operating costs for the mill and a high cost of logs for supplying the mill. Although the use of wood waste for heat and power would lower operating costs, the price of logs is considered somewhat more important. Given little timber available from state or nearby Forest Service land, it has been difficult for the mill to pay the high prices for timber from Native lands driven by a strong round log export market. Despite the fact that mill owners are Page 2 interested in finding a way to reopen the mill, we have placed this project on hold and have reallocated funding. Fairbanks Waste to Energy Project. A draft solid waste management plan has been prepared and delivered to the Division of Energy. Since the borough mayor is not expected to sign the plan until July, the Division has extended the Borough's grant until August. Sitka Steam Turbine Project On April 26 Division staff met with Sitka Public Works Director Larry Harmon. Harmon, having discussed the project with others, indicated that Sitka will not pursue the project in the near future because of an expected decline in municipal solid waste flow and electrical load over the next five years given the closure of the Sitka pulp mill. In the past it had been expected that Sitka would have to begin supplementing hydro power with diesel generated power in a few years, thereby justifying the turbine's payback. As it stands, however, the turbine would simply result in spilling water at Sitka’s hydro projects. Therefore we are canceling the grant and requesting that federal funds for its purpose be de- obligated. South Tongass Wood Waste University of Alaska has prepared two draft reports for the Thorne Bay Economic Comparison. We have received comments on the draft from Alaska Power and telephone, Sealaska Corporation, and the city of Thorne Bay. A final report will be prepared by the end of July followed by a recommendation by the Division of Energy whether or not to fund further feasibility analysis of a biomass-fired facility in Thorne Bay. Page 3 Alaska Bioenergy Program April 1 April 1-13 April 14, 28 April 18 April 19, 21 Partial List of Contacts January to March 1994 CONTACT Darl Schaff Art Services North Anchorage Connie Frick Seaton Timber Smithers, BC Don Eller Tanana Power Wasilla Carol Purvis US EPA Research Triangle Park, NC Judy Reid Anchorage School District Anchorage Steve Colt University of Alaska Anchorage Terry Brady Alaska Husky Wood Inc. Anchorage Ernie Polley Channel Corporations Juneau Ed Enswiler Alaska Dept. Env. Cons. Juneau Bob Grimm AK Power and Telephone Port Townsend, WA Page 4 DESCRIPTION Anchorage School District “energy cycle" and Earth Fair bioenergy display Pellet market in Alaska. District heat system in Tanana Crimp on annual leave Possible collaboration on bioenergy project in Alaska. Energy Cycle education project Thorne Bay Economic Comparison Request for Seward wood waste report Regional solid waste strategy needed for Juneau heat recovery project success Possible wood waste incinerator at Thorne Bay and Juneau heat recovery project Black Bear Lake hydro project proposal to Thorne Bay for power over intertie April 20 April 21 April 22 April 22, May 5 April 25-26 April 25 April 26 April 28 Roger Kolb Energy Pacific Inc. Anchorage Steve Colt University of Alaska Anchorage Dean Large Columbia Resource Vancouver, WA Darrell Pierce Metlakatla Power and Light Metlakatla Jim Harris Seward Forest Products Seward David Branns Energy Products of ID Couer D'Alene, ID Tom Hardy Thorne Bay Howard Haines Montana DNRC Helena, MT Phil Adamsak Portland, OR Larry Harmon City-Borough of Sitka (meeting) Roy Levine Sheldon-Jackson College Sitka (meeting) Jerry Wilkerson Bill Cheeseman Todd ___ (meeting) Ted Pauling, Robert Kruse SWIS Corporation Eden Prairie, MN (meeting) Page 5 Possible use of Seward sawmill for coal water slurry project. Questions on cost assumptions for Thorne Bay study. Information request for Thorne Bay study. Information request bioenergy facilities Battery storage system will be used with hydro plant for sawmill peaks Background on mill closure. Possible projects in Alaska. Concept to develop modular small fluid bed boiler and turbine-generator. Request for South Tongass report Logistics for annual planning meeting. Request for information for Biologue. Review of article. Travel to Juneau and Sitka (Crimp and Dennis Meiners) Discussed Sitka Steam Turbine project: mill closure, expected demand, incinerator operation, Sheldon Jackson heat usage. Discussed turbine project, demolition wood going to landfill. Toured Juneau incineration facility and adjacent landfill. Paper densification and co-firing in Fairbanks. Tire-derived fuel. April 29 April 30, May 1 May May 2 May 3 Craig Chase Chase and Associates Bellevue, WA Darrell Pierce Metlakatla Power and Light Metlakatla Dan Walsh University of Alaska Fairbanks Richard Bonwell Fairbanks North Star Borough Earth Fair Anchorage Ginny Tierney City of Thorne Bay Steve Colt and Mark Foster University of Alaska Anchorage Dick Madden Ketchikan Pulp Company Ketchikan Ted Pauling, Bob Kruse Swis Corporation Eden Prairie, MN George Pousche Eielson Air Force Base North Pole Chris Smith Seward Phoenix Log Seward Craig Chase Chase and Associates Bellevue, WA William Campbell Seasoned Energy Williamsport, PA Page 6 Grant administrative matters. Division of Energy oil price assumptions. Bioenergy background information for his presentation at small-scale solid fuels workshop. Status of solid waste management plan. Staffed bioenergy booth Ketchikan Pulp considering sawmill in Thorne Bay Thorne Bay economic comparison assumptions and model structure Upcoming small-scale energy workshop in Anchorage. Request information on Seward wood waste project. Eielson AFB plans to co-fire paper pellets in coal boilers. Plans to separate out, densify, and co-fire paper in coal boilers. Request information on Seward wood waste project. Update on Alaska program. Request for South Tongass report May 4 May 6 May 8-11 May 10 May 11 May 12 May 13 May 16 Gerald Fleischman Idaho DWR Boise, ID Craig Chase Chase and Associates Bellevue, WA Jeff James USDoE Seattle RS Seattle Richard Bonwell Office Fairbanks North Star Borough Ginny Tierney City of Thorne Bay Gary Swann National Energy Foundation Salt Lake City, UT Marvin Yoder City of Klawock Ed Enswiler Alaska Dept. Env. Cons. Juneau Tom Walsh University of Alask Fairbanks Fred Beierlie Arlen Bates Seward Forest Products Seward Cliff Edenshaw Bureau of Indian Affairs Anchorage Diana Rotkis Alaska Dept. Transportation Anchorage Page 7 Crimp questions on grant application. Crimp questions on grant application. Grant application. Solid waste planning effort update. Crimp and Dennis Meiners attending annual Regional Bioenergy Advisory Group planning meeting. Possible new sawmill in Thorne Bay Request for Bioenergy News Reopening sawmill in Klawock, potential for waste-to-energy facility on Prince of Wales Island Potential for regional solid waste to energy facility on PoW Island, Juneau heat recovery project Biomass briefing at small-scale alternative energy workshop Plans for processing radioactive wastes, interest in small scale technology workshop. Mill out of logs, shut-down in mid-June. Forest thinning project. USDoE alternative fuels solicitation. May 17-18 May 19 May 20 May 23, 26 May 26 May 31 June 2 June 3 John O'Connell West Chester, PA William Bean Columbia Basin Institute Portland, OR Steve Colt University of Alaska Anchorage Norm Phillips Doyon Ltd. Fairbanks Dick Smith, PE Sitka Jeff James USDoE Seattle RS Office Seattle, WA William Beale Sunpower, Inc. Athens, OH Carol Purvis US EPA Research Tri. Park, NC Bob Grimm AK Power and Telephone Port Townsend, WA Paul Klimas Sandia National Lab Albuquerque, NM Cynthia Johnson City and Borough of Juneau Roger Boardman Anchorage Page 8 Request information on Alaska bioenergy facilities. Request information on Alaska bioenergy facilities. Division of Energy and Morgantown Energy Technology Center co-sponsor Small-scale Energy Technology workshop, Anchorage. Discuss first draft of Thorne Bay Economic Analysis. Request information on Alaska's Energy Strategy. Regional waste-to-energy facility on Prince of Wales Island FY94 Grant application. Small wood-fired cogeneration systems, their plans for development. Status of EPA Energy Technology Initiatives program, possible joint effort with Alaska Thorne Bay Economic Comparison update Status of Middle Yukon Biomass Energy project Request information on the Juneau heat recovery project and Channel Sanitation incinerator status Wishes to market Thermogenics (Albuquerque, NM) gasifier in Alaska. June 13 June 14 June 15 June 16 June 20 June 22 June 23 Jack Murphy Anchorage Jim Kerstetter Washington SEO Olympia, WA Richard Bonwell Fairbanks North Star Borough Jeff James USDoE Seattle RS Office Seattle, WA Mike Rath Gan -a 'Yoo Ltd. Galena Steve Stassel Consulting Engineer Anchorage Craig Chase Chase and Associates Bellevue, WA Pat Fox, Meri Gordon Bonneville Power Admin. Portland, OR Phil Lusk Res. Development Assoc. Washington, DC Steve Brand Thermogenics Albuquerque, NM Ginny Tierney City of Thorne Bay Sandy Studneck Alaska Department of Labor Anchorage Renee Van Ort Fairbanks North Star borough Bill Brock Tlingit and Haida Reg. Electrical Auth., Auke Bay Page 9 Request information on Alaska MSW energy assessment. Status of Northern Lights Research combustors Mayor still has not signed solid waste plan. Discussed regional solicitation Middle Yukon project update: USAF to payoff bond for new Galena power plant, no word from Sandia Lab. Waste heat system potential in Kotzebue, Sand Point, Tok, Chefornak, and Chevak. Small combustors and Sterling engines, status of Thorne Bay Economic Comparison. Request to encumber funds for South Tongass Wood Waste and Fairbanks WTE, de-obligate Sitka Steam Turbine. Swine anaerobic digestion information. Use of gasifier for MSW disposal in Bush. Comments of on draft Thorne Bay report. Applicability of Davis-Bacon wages to intertie construction on Prince of Wales Island. Another extension for Fairbanks Waste to Energy, reminder for fiscal report. Wishes to send comments on Thorne Bay draft report Robert Woller Wood-fired power plants. Thermo Systems, Scarborough, ME IV. INDUSTRY ACTIVITIES IN ALASKA A. Southeast Alaska The U.S. Forest Service canceled its 50-year timber supply contract with the Alaska Pulp Company (APC) in mid April. The agency's action was based on the fact that APC's Sitka pulp mill had closed last fall and was therefore not living up to its end of the contract--to process low-quality utility logs from the Tongass National Forest. Shortly after the Forest Service's action, APC announced that it was scrapping plans to convert the pulp mill into a medium density fiberboard (MDF) facility given a lack of a secure long-term log supply. The canceling of the long-term timber sale and removal of the possibility of an MDF plant has caused a the Sitka Steam Turbine project to put on hold (see above). The Klawock mill, previously owned by Weyerhaeuser, has been purchased by Dahlstrom Lumber, based out of Hoquium Washington. The mill will reportedly begin operation in September and result in the hiring of 60 workers. To what extent the mill will use the existing 2.2 mW wood-fired power plant is yet unknown. B. Southcentral and Interior Alaska Under stiff attack by environmentalists and others, State Senate Bill 310, which allowed "forest management agreements" was killed. The measure would have permitted the state to contract with the forest products industry in a manner similar to that in British Columbia and Alberta, where industry assumes long-term responsibility for planning, reforestation, harvest regulation, and other forest management activities. Page 10 APPENDIX A Quarterly Project Summary Reports State of Alaska Bioenergy Technical Assistance Program Small Commercial Wood-Fired Boiler Demonstration Seward Spring Creek Prefeasibility Analysis Juneau Lemon Creek Prefeasibility Analysis Fairbanks Waste-to-Energy Sitka Co-Generation South Tongass Wood-Waste Page 11 Project Summary Report Title: State of Alaska Bioenergy Technical Assistance Program Brief Descripti These are the "core" activities of the Alaska Bioenergy Program, which promote the development of biomass resources for energy production through information transfer and technical assistance, facilitate project development and comment on state policies related to the use of biomass for energy.. Identification Numt DE-FG79-84-BP14984, A014 Grantee Alaska DCRA Division of Energy 333 West Fourth Avenue, Suite 220 Anchorage, AK 99501-2341 Project Manager Peter Crimp, 907/269-4631 Division of Energy Regional Bi P Fund Current year: $50,000 plus $126,359 carryover for special projects described separately below Cumulative through federal FY 93 : $811,297 Cost Sharing Division of Energy: Cumulative through Federal FY 93, $195,837 E ied D sled See project objectives and approach for expanded project description. Need Addressed One of Alaska's largest energy challenges is the high cost of fuel oil, particularly in rural areas. Biomass has the potential to provide alternatives to this conventional fuel. Alaska's location often makes it difficult to receive information on product development, new trends in industry and items that are pertinent to its economy and infrastructure. The Bioenergy Technical Assistance Program provides an in-state biomass center for receiving and distributing this information. Awareness of biomass opportunities improves the economics of use in related industries. This program supports State policies which influence the use of biomass as an energy resource. Page 12 Project Obiecti The Alaska State Program objectives include the following: 1) to promote the efficient and environmentally sound use of biomass for energy and other applications in Alaska; 2) to assist in resolving institutional barriers to biomass production and use. This includes education and information to policy makers who can influence resolutions to institutional problems; 3) to direct program activities and information towards self-sustaining biomass production and consumption activities. This includes an emphasis on economics, environmental and technical feasibility for industry and municipal projects; 4) to clarify major, environmental resource recovery and use issues and to seek solutions to environmental problems; 5) to continue technology transfer to target users. Economic, environmental and technical feasibility for industry and municipal projects are emphasized in these objectives, and 6) to continue development and operation of a state-wide institutional framework to promote biomass development issues. Approach Activities under the State Technical Assistance Program are divided into the following work areas: * Task Force and Policy Group Participation - Attend regional meetings, participate in regional planning activities, and support the regional program through effective communication of in-state bioenergy activities, goals and policies. Development and evaluation activities for the regional program are also included in this section. Status: Peter Crimp and Dennis Meiners participated in the annual planning meeting of the PNA RBEP Advisory Group on May 9-11. The Alaska program assisted in scheduling and arranging the meeting. * Information and Technology Transfer - Emphasis is to increase public awareness of opportunities to use biomass as an energy resource. The goal here is to maintain an effective network of information on technologies, resource management techniques and other topics applicable to the private and public sectors. Status: The Division of Energy responded to 15 requests for information regarding bioenergy facilities, fuel availability, markets for industrial products, and current projects this quarter. The Division also co-sponsored a small-scale alternative energy conference in Anchorage on May 17-18. One purpose of the meeting was to promote an interchange of information between researchers and technology developers and Alaskan utilities and decision makers. * Technical Assistance - Identification of biomass use barriers and assistance to industry and public agencies in developing biomass use opportunities are the major goals in this area. ‘ Interagency Coordination - Determining common interests in the development of biomass use opportunities is emphasized. Coordination also helps define common problems among agencies in project implementation. Successful interagency planning improves likelihood of project success. Status: This quarter the Division worked with 1) the Department of Environmental Conservation to identify necessary steps for integrating waste to energy development as a solid waste alternative in Southeast Alaska, 2) Morgantown Energy Technology Center to identify five potential sites for demonstration of biomass and coal technologies, and 3) the U.S. Environmental Protection Agency to develop a possible project under the Energy Technology Initiatives program. .Page 13 Major Mil Institutional Barriers - This area focuses on identifying state regulatory requirements and procedures that affect the development and use of forest and mill residues, non-commercial stands of timber, and municipal solid waste as energy options. This area also includes identification of environmental impacts and tradeoffs associated with using biomass energy fuels, and recommending solutions consistent with state environmental policies and laws. Field Projects - As part of this year's project activities, the Alaska program was scheduled to complete a final report for the wood waste fired boiler at the Alaska Correctional Industries greenhouse complex in Sutton. Other projects include developing a biomass-fired power plant in the South Tongass Area and assistance to the Fairbanks North Star Borough in WTE planning. Status: See project reports. All work is on-going with accomplishments reported in quarterly reports. Results Refer to quarterly report and project text. Prepared; Peter Crimp, Development Specialist Amended: June 24, 1994 Page 14 The State of Alaska Department of Community & Regional Affairs Division of Energy and The United States Department of Energy, Morgantown Technology Center would like to express our appreciation to those presenting information at this workshop, as well as those attending To our state's newest visitors—please help yourself to a visitor's guide of our city which is available at the registration desk AGENDA SMALL ALTERNATIVE POWER GENERATION WORKSHOP May 17 and 18, 1994 Hotel Captain Cook Anchorage, Alaska Presented by: State of Alaska Department of Community & Regional Affairs Division of Energy United States Department of Energy Morgantown Technology Center 8:00 9:00 9:15 9:45 DAY ONE REGISTRATION Workshop Welcome and Opening Remarks Alaska Energy Policy Direction Speaker: Commissioner Edgar Blatchford Department of Community & Regional Affairs Current Energy Projects to Achieve Energy Independence Speaker: Gary Cox, Division of Energy 10:15 BREAK 10:45 Regional Profiles of Alaska Speaker: Dan Walsh, Mineral Industry Research Lab University of Alaska, Fairbanks 11:30 LUNCH 1:00 2:00 2:30 3:00 3:30 Speaker: Professor Ted Eschenbach School of Engineering, University of Alaska, Anchorage Topic: Technology Transfer in Rural Alaska Technology Options for Rural Alaska Speaker: Donald Bonk, United States Department of Energy Morgantown Energy Technology Center Morgantown, West Virginia VENDOR PRESENTATIONS Co-firing Municipal Solid Waste Speaker: Michael DeLallo Gilbert/Commonwealth, Reading, PA Wind, Solar, Diesel, Battery Hybrids Speaker: Steve Drouilhet National Renewable Energy Lab BREAK Low Rank Coal Water Fuel Encoal and Rosebud Processes and Hot Water Drying Presented by: University of North Dakota Energy & Environmental Research Center (EERC) 4:00 Coal Fired Diesel Power Plants Speaker: John White Cooper Energy Services (Cooper Bessemer) Anchorage, Alaska 4:30 Poster Session Individual Industry Presentations DAY TWO 8:30 Wind And Hydrogen Fuel Cells Speakers: Dr. Scott Hynek, Arthur D. Little and Dr. William Lueckel, International Fuel Cells 9:00 Externally Fired Combined Cycle Speaker: William "Cary" Smith Morgantown Energy Technology Center 9:30 Small Atmospheric Fluidized Bed Combustor Speaker: Rodney Webner The Will-Burt Company, Orrville, Ohio 10:00 BREAK 10:30 Small Atmospheric Fluidized Bed Combustors Speaker: Chuck McMenamy DONLEE Technologies, York, PA 11:00 Wood Fired Cogeneration Plants Speaker: Peter Bloomfield Bloomfield and Associates, Concord, NH 11:30 LUNCH Speaker: John Sibert Alaska Science & Technology Foundation Topic: Barriers and Opportunities In Rural Alternative Energy 1:00 Breakout Groups Randy Dellefield, Morgantown Energy Technology Center Morgantown, West Virginia 3:00 BREAK 3:30 Summarize Breakout Groups Project Summary Report Title | Small Commercial Wood-Fired Boiler Demonstration Brief descripti This is a demonstration of a wood-fired boiler system for institutional heating. The project includes the design, installation, performance monitoring and reporting for a small commercial wood-fired boiler project. The project is located at the Alaska Correctional Industry's agricultural complex, within the Alaska Department of Correction's minimum security facility, Palmer Correctional Facility, Sutton, Alaska. Identification Numt DE-FG79-84-BP14984, AO11 Grantee Alaska Department of Community and Regional Affairs, Division of Energy PO Box 190869 Anchorage, AK 99519-0869 Project Manager Peter Crimp, 907/269-4631 Alaska Dept. Community and Regional Affairs, Division of Energy, Anchorage, AK 99519-0869 Regional Bi P Fund $25,000 Cost Sharing Match AEA cash (boilers and equipment) $20,000.00 Alaska Correctional Industries cash (parts and $17,339.89 materials) Alaska Correctional Industries (inmate labor) $4,457.84 Alaska Correctional Industries (in kind, staff labor) $44,543.54 Total Match $86,341.27 Expanded Description The project was established to demonstrate the effective use of wood as an institutional heating fuel. In summer and fall of 1990, AEA contacted numerous local governments, school districts and public facilities managers to locate a site for the project. Based on the availability of wood fuels, willingness to participate and provide matching support and overall project economics, the Alaska Correctional Industries agricultural complex in Sutton, Alaska, was chosen for the project. AEA and Alaska Correctional Industries have jointly managed this project, using contractual expertise for boiler sizing and mechanical room layout. Two 350 mBtu cordwood fired boilers and a 3,000 gallon accumulator tank were installed in a newly constructed boiler Page 15 house in spring and summer of 1991. Annual fuel oil offsets from 8,000 to 10,000 gallons per year are anticipated. The project will include monitoring of fuel consumption and boiler performance over a twelve month period and reporting on findings. The project will also include a pro-active effort to publicize the project in the media and provide tours of the facility to parties interested in establishing similar systems in other facilities. Need Addressed In many areas of Alaska, markets for lower quality timber are nonexistent. Timber harvesting and land clearing residues have become an environmental liability, contributing to burgeoning landfills or air quality problems through open burning. Fuel oil is shipped to rural Alaska at great expense, exporting cash that might otherwise stay in the local economy. The use of locally based woody fuels for energy projects can contribute to the environmental and economic well being of rural Alaska. The wood-boiler demonstration is intended to promote the use of locally harvested wood fuels as a replacement for fossil fuels from outside the local economy. Project Obiecti Specific objectives are as follows: 1) to reduce the volume of wood harvesting residue left on federal/state lands 2) to identify institutional or commercial users interested in alternatives to using fuel oil for space heating 3) to develop a transportation plan for moving fuel wood to end-user markets 4) to purchase and install wood boilers at one or more project sites Approach This project will began with an investigation of wood residue availability, characterization of fuel quality, and an examination of transportation, environmental and economic issues that would affect the outcome of the project. This part of the project included contacts with regulatory agencies to get input on permit requirements, performance criteria of wood-fired boilers and other information that would influence equipment selection decisions. The next phase of the project resulted in the identification of specific sites for small- commercial wood-fired boiler applications, followed by a survey of potential sites, presentation of project plans to potential users; gathering cost, weather and heat load data, evaluating equipment, and doing project cost estimates. Data was submitted to the Regional Task Force for approval and recommendation. Upon approval, actual design work and equipment selection was initiated and bids for materials and installation will be solicited. Installation was followed by assistance with start up, assistance in developing an operation and maintenance plan, and a 12 month performance monitoring period. Results Project construction is complete and the wood-fired boilers are operating as the primary heat source for the facility. Facility management and operating personnel are extremely Page 16 satisfied with the system. A monitoring system has been developed and AEA purchased a surplus 2,000 pound floor scale, a moisture meter and 3 hour-meters. With these tools, operation and fuel consumption was recorded to obtain information useful for other potential project developers. The monitoring period extended for one year into November of 1992. In the fall of 1992, the Energy Authority prepared Autocad drawings and text describing the project to be included in the agency's 1992 annual report. In January, 1992 AEA prepared media materials to publicize the project. A press release was sent to Alaska news outlets, and the Governor's media office used a state satellite system and a recording phone line to transmit video pictures and audio interviews provided by the Energy Authority to interested broadcast stations. The Associated Press sent out a short story on its wire. Stories were run in at least the two major Anchorage newspapers, and video aired on the Rural Alaska Television Network reaching viewers in approximately 200 small communities. Staff also heard reports that stories had aired on some radio stations. The project was also highlighted in the Energy Authority's Annual Report. The project has generated increased interest in institutional wood heating throughout the state. It is displacing over 8,000 gallons of fuel oil annually at the correctional facility. Since the wood system was put into operation in November 1991, the facility has performed without any major problems and has burned virtually no oil. The Division of Energy is working with the Department of Corrections to compile current and past operation and maintenance costs, fuel usage, and other data on the existing wood fired and the old oil-fired system. Because of workload, the final report scheduled for December 1993 will not be completed until June 1994. Current Status: A final report is due on this project this month. However, due to time constraints, no further work was completed on this project between April and June, 1994. We plan to complete the report in Fall, 1994. Major Mil Milestone Status Investigation of resource availability and delivery infrastructure Complete Site identification Complete Heat load analysis and system design Complete Materials list, bids and orders Complete Shipment Complete Boiler house plan preparation and submittal to fire Marshall Complete Earthwork and foundation Complete Boiler house construction Complete Plumbing, heat distribution and electrical Complete Boiler installation Complete Monitoring Complete Final report June 1994 (Behind schedule) Prepared: Peter Crimp, Development Specialist Amended; June 23, 1994 Page 17 Project Summary Report Title Seward Wood Waste Brief descripti This project is an initial assessment of the feasibility of various options for using wood waste from the newly-reopened Seward mill to produce heat or heat and electricity for the mill, the nearby Spring Creek Correctional Center, and other buildings in the vicinity. Identification Numt Not applicable. Grantee Not applicable. Project Manager Peter Crimp, 907/269-4631 Alaska Dept. Community and Regional Affairs, Division of Energy, Anchorage, AK 99519-0869 Regional Bi P Fund Unspecified. Research costs for this project are paid for as part of technical assistance core program costs. Cost Sharing Not applicable. Expanded Description The Seward Forest Products sawmill in Seward reopened in March after having closed in Fall, 1991 when its owner Chugach Alaska Corporation filed for Chapter 11 bankruptcy. The mill produces dimension lumber from timber from Native corporation land in Prince William Sound and, to a lesser extent, mixed ownerships on the Kenai Peninsula. Slabs and edgings are chipped and exported, while the 150 tons of bark, sawdust, and shavings produced each day are being stockpiled in the mill yard. At the same time, the Seward landfill has been closed by the Department of Environmental Conservation because of possible leaching into a high water table, so the Kenai Borough has been trucking MSW 100 miles to Soldotna, the nearest landfill. Around 105 tons of waste paper is separated out the 5,500 ton yearly MSW stream in Seward. The sawmill is located in an industrial park near the Spring Creek Correctional Center and Seward Ship Chandlery across the bay from downtown Seward. The mill supplements the electrical service provided by the local utility with diesel generators to run their saws and chipper; however current air quality permits for the generators limit their use to the extent that the mill is limited to one shift. Moreover, due to energy costs, kiln drying costs are about twice the cost that the local mill manager feels are reasonable. At the same time, ~ the local prison is using around 250,000 gallons of fuel each year for space and water heating, while the chandlery is planning an expansion which may require 300,000 gallons per year to heat it. Page 18 This project is an effort to facilitate the Seward mill's use of its wood waste to produce heat or heat and electricity for the mill, the nearby Spring Creek Correctional Center, and other buildings in the vicinity. Need Addressed Currently the facilities in the Seward industrial park are using diesel oil as their primary energy source, despite the availability of a potentially inexpensive source of biomass fuel. The local landfill is closed, so the mill must determine a cost-effective way to dispose of the considerable amount of residue that is accumulating. The project addresses the needs for environmentally sound and efficient energy sources by evaluating the potential for producing energy from material that might otherwise require disposal. Project Objecti The objective of this project is to assist the Seward Forest Products mill in developing a wood waste-fired facility. Approach The approach of the project has been in two phases: 1) a prefeasibility analysis and 2) follow up work to assist the mill in assessing deciding which alternatives to pursue and obtaining financing. The prefeasibility analysis estimated current heating and electrical requirements and costs a for the mill, prison, and chandlery; assessed quantities and costs of available mill residue, waste paper and waste wood produced locally, coal, and other potential fuels; estimated capital costs that would be associated with various options for energy conversion and distribution; assessed environmental considerations, and performed an economic analysis of the costs and benefits of various alternatives, including the status quo. Results and recommendations were presented in a report. Given a favorable prefeasibility analysis outcome, the Division of Energy will assist Seward Forest Products and other project participants in clearing other project development hurdles. including coordinating with other agencies to obtain financing and conducting a full feasibility study, siting analysis, and conceptual design. Results The Division of Energy prepared and distributed a 76-page draft prefeasibility analysis to project participants in January. Project participants are: Seward Forest Products Alaska Department of Corrections Seward Ship Chandlery City of Seward Alaska Department of Commerce and Economic Development, Division of Economic Development A consultant engineer was contracted to prepare heat balance calculations for project alternatives. The executive summary follows this section. The Energy Authority is assisting the mill in installing a data logger for power profiles and further refining residue _production estimates, two critical data needs for further design work. Current Status: In April the Seward sawmill announced that they expected to close in mid- June. Mill owners listed two reasons for the closure: high operating costs for the mill and a high cost of logs for supplying the mill. Although the use of wood waste for heat and Page 19 power would lower operating costs, the price of logs is considered somewhat more important. Given little timber available from state or nearby Forest Service land, it has been difficult for the mill to pay the high prices for timber from Native lands driven by a strong round log export market. Despite the fact that mill owners are interested in finding a way to reopen the mill, we have placed this project on hold and have reallocated funding. Maior Mil Milestone Status Report and Recommendations Completed January Prepared: Peter Crimp, Development Specialist Amended: June 23, 1994 Page 20 Project Summary Report Title | Juneau Heat Recovery and Distribution Brief descripti This project is an assessment of the feasibility of recovering heat from the MSW incinerators at Channel Corporation's Juneau landfill and constructing a district heat system to distribute the heat to the nearby Lemon Creek Correctional Center and other facilities in the vicinity. If the assessment shows that a facility would be feasible, then the Division of Energy will provide the project owner(s) with assistance in financing and further development activities. Identification Numt Not applicable. Grantee Not applicable. Project Manager Peter Crimp, 907/269-4631 Alaska Dept. Community and Regional Affairs, Division of Energy, Anchorage, AK 99519-0869 Regional Bi P Fund Unspecified. Research costs for this project are paid for as part of technical assistance core program costs. Cost Sharing Not applicable. E led D ae Currently the Channel Corporation is incinerating around 20,000 tons and landfilling 2,400 tons of MSW per year at their facility, located between downtown Juneau and the airport. Although the two Consummat CS1600 incinerators are set up for heat recovery, Channel Corporation has not attempted to recover heat in the past. The Lemon Creek Correctional Facility is located around 4,000 feet from the incinerators and uses around 110,000 gallons of oil per year for space heating and hot water. Costco has purchased land between the incinerators and the prison, and is planning to build an 80,000 square foot store on the site. In addition, there are numerous other existing or planned facilities in the area (not necessarily near the prison or incinerators) including a proposed KMart, the Juneau Pioneers Home, and a public school under construction. This project assesses the feasibility of recovering heat from the MSW incinerators at Channel Corporation's Juneau landfill and constructing a district heat system to distribute the heat to the nearby Lemon Creek Correctional Center and other facilities in the vicinity. Page 21 Need Addressed Currently the Channel Corporation operation is not recovering heat from the incineration of the local MSW stream. Meanwhile the Lemon Creek Correctional Facility and other facilities in the area are using oil as an energy source. This project addresses the need for a potentially inexpensive, efficient, and environmentally sound source of energy for local industry and government by recovering heat energy that would otherwise be lost. Project Obiecti The objective of this project is to develop a heat recovery and distribution system in Juneau. The project is designed in phases of increasing scope, so that prospects for success might be determined before a substantial investment of time and money is made. Approach The approach is phased as follows: 1. A prefeasibility analysis estimates available energy from the Channel Corporation incinerators; estimate current heating requirements and costs for the prison and other facilities in the area; estimate capital costs that would be associated with heat recovery and distribution; and perform a simple financial analysis of the costs and benefits of various alternatives, including the status quo. 2. Assuming a finding of technical and economic feasibility, the Division of Energy will assist Channel Corporation in conducting a full feasibility study, siting analysis, and conceptual design. 3. Assuming the study indicates feasibility, the Division of Energy will work with other project participants to secure project financing and address barriers to project development. Results A draft prefeasibility assessment was released for review by the Channel Corporation, Tlingit-Haida Regional Electrical Authority (THREA), the City and Borough of Juneau, and the Alaska Department of Corrections. Operation and ownership options for Channel and THREA and their effect on possible tax-exempt financing were assessed in an initial financial analysis by Don Grimes of J.C. Bradford Company of Nashville, TN which sponsored by the Division of Energy (see full text following this section). THREA, Channel, and Division of Energy had identified funds for the full feasibility assessment/conceptual design. In March Channel Corporation indicated that they and Tlingit-Haida REA do not want to take any action on the project at this time. The crux of the matter is a non-secure source of garbage (and therefore tipping fees and heat sale revenues) for the incineration facility. Since Channel is privately owned, there is no legal basis for it to require that the city's garbage be brought there. Although the mayor of Juneau has expressed support of the project, city staff had earlier asked barge lines to prepare proposals for shipping garbage to Washington. Given this situation, Channel's banker has indicated that they won't discuss further debt for heat recovery or, more important to Channel, additional incineration capacity and pollution controls. Current Status: The Division of Energy has discontinued further work on this project. We have continued to work with Channel Corporation and the Department of Environmental Conservation to remove barriers to the project in anticipation of another effort later on. Funds have been reallocated. Page 22 jor Mil Milestone Work plan Prefeasibility Report and Recommendations (draft) Initial Financial Analysis Work Scope for Feasibility Analysis Prepared: Peter Crimp, Development Specialist Amended: June 23, 1994 Page 23 Status Completed February 1993 Completed June 8 Completed December, 1993 Discontinued Project Summary Report Title Fairbanks Waste-to-Energy Brief d sot This project is to prepare a comprehensive solid waste management plan for the Fairbanks North Star Borough, including a thorough evaluation of waste-to-energy as a solid waste disposal option. Identification Numt AEA contract 2800559 Grantee Division of Energy Funds passed through to: Fairbanks North-Star Borough PO Box 190869 410 Cushman Street Anchorage, AK 99519- Fairbanks, AK 99701 0869 Project Manager Peter Crimp, 907/269-4631 Alaska Dept. Community and Regional Affairs, Division of Energy, Anchorage, AK 99519-0869 Regional Bi P Fund $25,000 Cost Sharing Match Fairbanks North-Star Borough, Minimum per AEA $150,000 contract Total Match $150,000 Note: Total match likely to be higher. This is the minimum required in agreement between AEA and FNSB. E Jed Descripti The Fairbanks North Star Borough (FNSB), with solid waste management responsibilities for Fairbanks and outlying areas, has been struggling to find a solution to a very difficult solid waste management problem. The Borough currently operates a bale and landfill facility that will be completely full in four to five years. While efforts have been made to select a site for a new landfill, wetlands regulations, shallow water tables, discontinuous permafrost and other siting difficulties have delayed any final determination of a suitable site. Page 24 The Borough assembly has been approached by several experienced, private firms interested in developing a waste-to-energy facility in Fairbanks. Proposals have varied from modular mass burn units, to retrofits of coal spreader stokers for dedicated dRDF combustion and fluidized bed combustion with a front end material recycling facility. Power production estimates for the waste-burning facilities have ranged as high as 7.5 mW. Conceptual siting indicates a location adjacent to the city's waste water treatment plant may be logical, as sludge solids could be processed and this facility's 1 mW load could be directly served. Ballpark figures for tipping fees of around $70/ton have been aired by potential developers. Landfilling in compliance with new federal regulations is likely to be costly, and a WTE facility may have favorable economics. Fairbanks is certainly the most promising prospect for the development of a sizable WTE facility in Alaska. The Alaska Bioenergy program's support of the Borough's efforts to evaluate WTE on equal footing with land filling is in keeping with current DoE emphasis on development and commercialization of biomass energy facilities. While it is uncertain whether WTE will be the preferred alternative, support for the study will ensure this option is given a fair consideration and could lead to the development of a multi-million dollar WTE facility with up to 7.5 mW of capacity. Need Addressed Where appropriate from an economic and environmental perspective, waste-to-energy is an attractive solid waste disposal alternative which recovers useful energy from an otherwise wasted resource. Because land filling has been the solid waste disposal alternative of choice in Alaska, WTE often is overlooked as a serious alternative. For example, the FNSB has initiated landfill siting without concluding that land filling is the most cost effective alternative. Providing support to evaluate WTE along with other solid waste disposal options, promotes the development of this resource where appropriate. Project Obiecti Specific objectives are as follows: 1) to ensure WTE is evaluated as a solid waste disposal option for the FNSB 2) to promote the recovery of energy from MSW in those instances where it is environmentally and economically beneficial to do so J 3) to promote least cost planning of solid waste disposal alternatives that considers the environmental and economic benefits of recovering energy from waste 4) to encourage other communities in the Pacific Northwest and Alaska to evaluate WTE as a solid waste disposal alternative Approach AEA will grant funds to FNSB in support of the comprehensive solid waste plan. FNSB will be required to include an in depth evaluation of WTE as a solid waste disposal alternative. The analysis will include : e An evaluation of the Borough's current and projected waste stream quantities and heat content e A thorough evaluation of mass burn, RDF with dedicated combustor and RDF for co- firing in existing power boilers as solid waste to energy alternatives Page 25 e A description of the public involvement in the planning and evaluation process from early stages on e An evaluation of the markets for power and steam sales (and fuel sales in the case of RDF production for use at existing facilities), and an estimation of sales and revenue streams from these sources e Recommended environmental mitigation strategies including front end material separation and processing, hazardous and problem waste removal, combustion optimization, flue gas control technologies and ash disposal e A discussion of environmental constraints, permitting requirements and_ public acceptance issues e A description of how Borough recycling programs would affect waste-to-energy economics and availability of fuel supply e An economic analysis of waste-to-energy options including tipping fees required and anticipated power and/or steam sales e Accost and benefit comparison with other solid waste disposal alternatives such as land filling Besults Rick Rogers met with the FNSB RFP evaluation team in Fairbanks, May 21, 1992, to educate team members of waste-to-energy technologies and issues, and to outline what AEA expected as a condition of awarding a grant to assist with the solid waste plan. AEA entered into a grant agreement with the FNSB on August 10, 1992. FNSB has selected a consulting contractor in response to an RFP issues early summer. Dames and Moore was initially selected to complete the study. A procurement appeal has resulted in cancellation of the Dames and Moore award and the award of the project to CH2M. Since the last quarterly report, the procurement appeal has been concluded and the Borough has executed a contract with Dames and Moore. A Notice To Proceed was issued on November 23, 1992, and the Borough has obtained a detailed schedule for the project. To date, Dames and Moore has prepared eight technical memos for the FNSB SW plan. AEA submitted written comments on TM 7 and 8, the delineation of alternatives for MSW management, on May 5 stating concerns that grant requirements were not being met in the evaluation of markets for power, steam, and RDF; the discussion of environmental constraints; recycling effects on WTE; and the structuring of alternatives. At the same time, the FNSB notified Dames and Moore that TM 7 and 8 were not adequate for their needs. Because of this, Dames and Moore restaffed the project and will rewrite TM 7 and 8. After meeting with FNSB staff in early June, AEA is satisfied with the work progress, and extended the grant until October 31. In August FNSB delivered TM 7, revised alternatives for MSW management. Division of Energy has submitted comments on the alternatives. Three of the five alternatives presented included waste-to-energy in some form. Public comment to date has been strongly against landfilling. In November, the Solid Waste Management committee for the Borough unanimously recommended that the Borough pursue the least expensive alternative of the five, a WTE alternative. This option is to continue landfilling at the current facility but recover mixed waste paper through source separation, shred and pelletize it, and burn it in the University of Alaska power plant. Burning the pellets at UAF will require Page 26 modifications in the fuel feed and storage systems, as well as changes in the current air quality permit. During the January to March, 1994 period the Division of Energy has received a quarterly report and an excerpt from a revised Technical Memo 7/8 which evaluates alternatives using the criteria of near term cost, life cycle costs, tipping fees, impact on landfilling, impact on recycling, time to implement, flow control, public versus private ownership, administration, risk, and environmental considerations. Discussions with Public Works Director Richard Bonwell have indicated that there continues to be public support for paper pelletization and co-firing. Because of the political nature of solid waste planning process, approval of the plan will not be finalized until late spring. The process is a high-profile issue in a community with diverse viewpoints. Current Status: A draft solid waste management plan has been prepared and delivered to the Division of Energy. Since the borough mayor is not expected to sign the plan until July, the Division has extended the Borough's grant until August. Major Milestones Milestone Status AEA and FNSB enter into grant agreement Completed 8/10/92 Professional Services Contract signed Completed November 1992 Solid waste plan under preparation January 1993 -August 1993 Public meetings on MSW management Completed February 1993 options Mid project formal consultant review date to be selected Draft report submitted approx. August 1993 AEA and peer review of draft April 1994 Final report submitted April 1994 Final report June 1994 Plan adoption July 1994 Prepared: Peter Crimp, Development Specialist Amended: June 23, 1994 Page 27 Project Summary Report Title Sitka Co-Generation Brief descripti This is a demonstration of a small back-pressure steam-turbine installation at the waste-to- energy facility in Sitka, Alaska. Identification Numt AEA contract 2800559 Grantee Division of Energy Funds passed through to: City-Borough of Sitka PO Box 190869 304 Lake Street Anchorage, AK 99519- Sitka, AK 99835 0869 Project Managers Peter Crimp, 907/269-4631 Larry Harmon, 907/747-3294 Department of Community and Regional City-Borough of Sitka Affairs, Division of Energy, Anchorage, AK 99519-0869 Regional Bi P Fund $25,000 Cost Sharing Match City-Borough of Sitka $580,000 Total Match $580,000 Note: Total match includes improvements to the facility in addition to the steam turbine- generator including emissions controls and design improvements. E Jed Descripti This project is aimed at promoting the environmentally sound and efficient use of MSW for energy through increased energy recovery efficiency and cost effective operation of an existing waste-to-energy facility. The project will also serve to demonstrate the use of a small-scale back pressure turbine, that has direct application at facilities generating steam from other biomass fuels such as wood waste and hospital waste. The City-Borough of Sitka owns a mass burn municipal solid waste incinerator which disposes of 25 tons of MSW and sewage sludge per day. The facility is operated by Sheldon Jackson Community College and recovers steam for heating campus facilities via a district heating system. Boilers are currently rated to 150 psig and are operating at 30 psig, Page 28 producing an average of 4,000 pounds of saturated steam per hour. The incinerator produces steam for 166 hours per week. Preliminary estimates indicate a 100 kW in-house demand for power. Increasing steam pressures to 150 psig and installing a back pressure turbine would result in power savings of about $23,160 annually, reducing power purchases and demand charges for 289,500 kWh annually. 30 psig exhaust steam would be available to meet the existing campus heating requirements. The City-Borough has identified several other capital improvements for the facility, including adding a larger capacity electrostatic precipitator to provide redundancy in the flue gas handling system, and other state-of-the-art pollution control systems. In addition to the energy production benefits, the turbine-generator project will reduce the costs of operating the facility, improving the ability of the City-Borough to finance the implementation of these other air quality related improvements. The turbine-generator that will be installed is a Dresser-Rand model 351W or 501W. Specific recommendations for facility improvements are contained in the draft report entitled /ncinerator Operating Measures Study, prepared for the City-Borough by R. W. Beck and Associates. Page 18 of the draft summarizes cost payback estimates for the turbine- generator portion of the project proposed for regional funding. Needs Addressed Where appropriate from an economic and environmental perspective, waste-to-energy is an attractive solid waste disposal alternative which recovers useful energy from an otherwise wasted resource. To remain competitive with other solid waste disposal alternatives, and to provide the level of environmental controls demanded by regulatory agencies and the public, waste-to-energy facilities must operate efficiently and use state-of-the-art emissions control technologies. Older plants require capital upgrades to remain competitive. This project addresses both the need for upgraded environmental controls and improved operating efficiency through better energy recovery. Recovery of electrical energy from low pressure steam using a back pressure turbine- generator is an energy production strategy with potential applications throughout the Pacific Northwest and Alaska. Small sawmills, waste-to-energy facilities, hospitals and industrial facilities that require low pressure steam, are all potential sites for this energy recovery technology. This project meets the need of demonstrating this small scale technology in a region of the country in which steam turbines have typically been on a much larger scale. As power rates in the Pacific Northwest and Alaska escalate, the number of cost effective applications for these small scale systems is likely to increase. Project Obiecti Specific objectives are as follows: 1) to promote the upgrade of existing waste-to-energy facilities to improve energy efficiency and reduce environmental impacts 2) to promote the recovery of energy from MSW in those instances where it is environmentally and economically beneficial to do so 3) to promote the recovery of electrical energy from low pressure steam by using small scale back-pressure steam turbines at other facilities throughout the Pacific Northwest and Alaska Page 29 Approach AEA will grant funds to the City-Borough of Sitka in support of capital improvements to the community's existing waste-to-energy facility. These capital improvements will include the installation of a back pressure turbine to recover electrical energy from steam currently produced for district heating. The City-Borough will also allow access to parties interested in touring the facility, and facilitate technology transfer by documenting the selection, installation, start-up and performance of the steam turbine-generator system. Results AEA entered into a grant agreement with the City-Borough of Sitka on August 10, 1992. The City-Borough remains in the planning phase of the project; Dick Smith, Director of the City's Public Works Department and project manager for this project, reported that plans are temporarily on hold due to City funding problems. Problems started earlier this year when $175,000 in planned state funds for the City of Sitka was cut from the Governor's FY93 budget. A new City-Borough of Sitka Public Works Director, Larry Harmon, took the place of Dick Smith in January. Harmon had served earlier as public works director when the Sheldon Jackson heating system was first installed. Given the shut-down of Alaska Pulp Corporation's Sitka pulp mill, the resources of Sitka and of Sheldon Jackson College to perform this project are decreased. The Division has notified Harmon that a positive commitment must be made by April; otherwise funds will be reallocated. Current Status: On April 26 Division staff met with Sitka Public Works Director Larry Harmon. Harmon, having discussed the project with others, indicated that Sitka will not pursue the project in the near future because of an expected decline in municipal solid waste flow and electrical load over the next five years given the closure of the Sitka pulp mill. In the past it had been expected that Sitka would have to begin supplementing hydro power with diesel generated power in a few years, thereby justifying the turbine's payback. As it stands, however, the turbine would simply result in spilling water at Sitka's hydro projects. Therefore we are canceling the grant and requesting that federal funds for its purpose be de-obligated. Maior Mil Milestone Status —____ Project to be Canceled AEA and City-Borough of Sitka enter into Completed 8/10/92 grant agreement Project Plan Developed by Sitka Procurement and turn key contract Equipment procurement and shipping Installation Startup and shakedown Final inspection by AEA Begin performance monitoring End performance monitoring Final report Prepared: Peter Crimp, Development Specialist Amended: June 23, 1994 Page 30 Project Summary Report Title | South Tongass Wood-Waste Brief descripti This is a feasibility study to evaluate the potential for developing a power plant fired with surplus wood residues from several industrial sources in Southeast Alaska. Identification Num! DE-FG79-84-BP14984, A014 Grantee Alaska Dept. Community and Regional Affairs, Division of Energy PO Box 190869 Anchorage, AK 99519-0869 Project Manager Peter Crimp, 907/269-4631 Alaska Dept. Community and Regional Affairs, Division of Energy, Anchorage, AK 99519-0869 Regional Bi P Fund $40,000 Cost Sharing Match AEA cash, contractual services $33,839 AEA personal services, electrical and mechanical $2,370 engineers AEA overhead $3,791 Total Match $40,000 E Jed Descripti Several sawmills and log sorting facilities in Southern Southeast Alaska are producing wood residues in excess of their ability to properly dispose of this material. The practices of open burning, land filling and the use of silo burners without adequate emissions control devices are all being discouraged by regulatory agencies. Preliminary estimates indicate that mills in Ketchikan, Metlakatla, Annette, and Kasaan are collectively producing sufficient residue to provide fuel for about 3 mW of baseload power. Electrical power for the communities of Thorne Bay, Craig and Klawock is produced by diesel fired generators. The community of Ketchikan uses primarily hydroelectric power, although load projections indicate that additional diesel-fueled capacity will be needed to meet demand within the next few years. Metlakatla uses a mix of hydroelectric and diesel power. Page 31 This project will evaluate the prospects for developing a power plant that uses these surplus wood residues to produce power for local utility use. A detailed description of the evaluation is described under the heading of approach below. Need Addressed The project addresses the need for power production alternatives to costly diesel fuel in Southeast Alaska communities, the need for improved wood waste disposal practices, and the need to use local fuel resources for local needs as an economic development strategy. Project Obiecti Specific objectives are as follows: 1) to encourage the development of a facility to fully utilize wood waste being produced by wood processors in Southern Southeast Alaska at a regional generation facility. 2) to provide adequate information concerning project development to encourage independent power producers, local ,electric utilities, wood processors and public agencies to participate in developing a wood-waste fired generation facility. 3) to reduce dependency on non-renewable fuel resources imported into the Southern Southeast Region of Alaska. 4) to determine the long term wood residue supply anticipated for the Southern Southeast Alaska Region that could be available for energy production. 5) To encourage local economic development through the use of "import substitution" of fuels for power production. Approach The scope of work proposed for this project is to complete a feasibility study for a wood- waste-fired electrical generation facility located in a South Tongass community. The study will take place in two parts: (1) A wood resource and transportation cost assessment that will examine the quality and quantity of mill, sort yard and landing residue available for fuel and (2) a design concept and cost estimate for a wood-fired power plant at a location identified by the first phase of the feasibility study. The study will be tailored to seek alternate energy markets for the wood-waste on a regional basis, providing a regional wood- waste disposal facility and utility power in the location offering the highest feasibility and public benefit. The second phase of this project will be initiated only if the results of the first phase demonstrate that it is economically viable. 1. Analysis of Fuel Supply The fuel supply analysis will investigate both short and long term (20 year) wood fuel availability to the project from a multitude of sources including sort yard waste, landing slash, and off-island residue deliverable by barge. Estimates of the quantity, characteristics, and cost of prepared fuels from all sources will be included. The long term fuel supply analysis will include factors such as the level of harvest activity on the Tongass National Forest, potential for future competitive markets for wood waste and possible changes in the flow and production of logs and wood waste over the next 20 years. 2. Siting Page 32 The study will recommend a proposed site for the facility with considerations for: fuel delivery cost and storage; site development costs; make up water; cost to access power grid; power sales and proximity to market for steam and transmission line; environmental impacts including air quality, water quality and noise; proximity to fuel supply from uplands and tidewater; land ownership and land use designations; utility participation and cooperation; and public acceptance. 3. Concept Design Electrical A concept design that maximizes power sales from the facility, while recognizing the superiority of diesel generators in load following will be prepared. Remote diesels with automated dispatch may be necessary to serve peak loads. Plant design, cost estimates and performance criteria, suitable for use in preparing of an RFP for independent power producers will be prepared. Mechanical A mechanical concept design including fuel handling, preparation and storage, boiler feed water system, boiler design, flue gas control and ash handling will be prepared. The concept design will also consider the viability of co-firing portions of the municipal waste stream. The concept design will include cost estimates and performance criteria suitable for use in preparing an RFP for independent power producers. 4. Environmental Analysis This portion of the project will address environmental issues including: stack emissions and Clean Air Act compliance; ash-fill siting and design criteria (or alternative means of ash disposal); air emissions from fuel dryer, if applicable; and water quality impacts. The study will also discuss the avoided impacts of reduced land filling, open burning, fuel oil transport and storage, and generation of power via diesel internal combustion units. If determined to be necessary for permitting and if adequate funds are available, the study will include the collection of baseline air quality data. 5. Economic and Financial Analysis The study will include an economic and financial analysis of the project which includes estimates of capital cost, operations and maintenance costs, and fuel costs for the life of the project. This analysis will address the level of State and Federal funding needed to arrive at a target kWh power rate. The target power rate will be a rate determined to be competitive with alternative costs of wholesale power. The economic analysis can be used for comparative studies with hydro and diesel power generation, as well as serve as a decision document for obtaining public and private project financing. Results Phase 1 contractor America North submitted a final report in December. Copies of the report were distributed to 60 individuals in Alaska and the lower 48. Since the project began the Alaska Pulp Corporation pulp mill in Sitka has shut down, citing insufficient and expensive utility logs from the Forest Service. Louisiana-Pacific's Annette Hemlock Mill in Metlakatla has announced plans to install 650 kW of generating capacity fuel by their residues. The final report recommends Annette Island as the most feasible site for a wood- fired power plant from a standpoint of fuel cost and availability. The Thorne Bay sortyard may also accomodate a facility given current trends in waste disposal requirements and costs. Page 33 Phase 2 activities are concentrating in these areas. In February Peter Crimp visited Ketchikan, Metlakatla, Thorne Bay, Klawock, and Craig to assess project potential in these locations. The Annette Mill boiler and turbine generator project is proceeding and will likely be in place before winter. Given that Metlakatla landfill may be closed by the EPA, the Metlakatla Indian Community will likely assess waste to energy as a disposal option. Thorne Bay applied to the Alaska Department of Community and Regional Affairs for a $50,000 cost-share grant to conduct an in-depth assessment of the feasibility of a wood waste-fired power plant. The plant would be fueled by residue from Ketchikan Pulp Company's sortyard. Given requests for an apparently competing project (an intertie across Prince of Wales Island which would provide Thorne Bay with power from Alaska Power and Telephone's planned hydro plant), Division of Energy is sponsoring and the University of Alaska is conducting an initial analysis of the costs and benefits of the wood waste-fired facility, the intertie, and/or diesel power. If the results of the $15,000 (no federal funds) study indicate that a wood-fired facility is promising, the state and Thorne Bay will follow up with the in-depth assessment, which is expected to cost $50,000 to $100,000 (1:1 match, no federal funds). Crimp is project manager of the initial study. Current Status: University of Alaska has prepared two draft reports for the Thorne Bay Economic Comparison. We have received comments on the draft from Alaska Power and telephone, Sealaska Corporation, and the city of Thorne Bay. A final report will be prepared by the end of July followed by a recommendation by the Division of Energy whether or not to fund further feasibility analysis of a biomass-fired facility in Thorne Bay. Major Mil Milestone Status Phase 1 Final report Completed January, 1994 Phase 2 Thorne Bay Economic Comparison draft report Completed June 1, 1994 Final report July 29, 1994 Prepared: Peter Crimp, Development Specialist Amended: June 23, 1994 Page 34 APPENDIX B Federal FY93 Bioenergy Technical Assistance Grant Application Page 35 STATE OF ALASKA FEDERAL FY94 BIOENERGY TECHNICAL ASSISTANCE GRANT APPLICATION Program Year 1994 Annual Operating Plan July 1, 1994 through June 30, 1995 Submitted By: State of Alaska Department of Community and Regional Affairs Division of Energy 333 West Fourth Avenue Suite 220 Anchorage, Alaska 99501-2341 Submitted To: Jeffrey W. James US DOE Seattle Support Office 800 Fifth Avenue, Suite 3950 Seattle, Washington 98104 MAY 24, 1994 State of Alaska Federal FY94 Bioenergy Technical Assistance Grant Application TABLE OF CONTENTS Page IMtFOGUCTION 0.0.2... ceeeecccccccccceesseeeeceeeeeeesseeeeeseeesseeesaaeeeesseeeeeesecesesseeeeseseeeeeeeaaeees 3 Mission, Goals and Objectives, and Funding Request...............::ccssesseeeeseeerees 3 State Bioenergy Management, Coordination, and Key ISSUES ..............::ceeee 4 ISSUCS oo... ceccccceccccessceececeseeceeeeeeseeeseeesacecscseccsscesecsseseseeesseesseeeeseeeeaeenseeenaes 4 Bioenergy Management and Coordination Sensseseueresousecssouucersss 5 Project Descriptions and Milestones. ..............c:ccccccccsceseeeteeeteeeeeeeteeeeteeeneeeneees 6 Summary of Program Year 1993 Activities ............cccccceseeteeeeeeteeteeees 6 Program ACctivitieS .....0.... cece eecccsccssesscesseseeeesessesseeneeeseenseeseeeeeaeeneeeneeeeees 6 Appendix A: Summary of Program Year 1993 Accomplishments ................0++ 14 Publications Written ........0...cceeeeeeeseeeseeeeceseeeeceesessseeenseees wi l4 Publications Reviewed = wees State Policy... cceeccccceceseeceneeeeseesseeceesecesssseecseseseeesseeeseeesseeenseeeeseenaes 14 Appendix B: Budget Documentation...............cccceseseeeseeesseesesseeseeeeneeseeneeneeenenes 15 Application for Federal Assistance (SF 424) Budget Information (SF424A) Assurances - Non Construction Programs (SF424B) Certifications Regarding Lobbying, Debarment, ...(FA-CERTS) U.S. DoE Assurance of Compliance Nondiscrimination...(DoE form 1600.5) U.S. DoE Federal Assistance Management Summary (MSR) (EIA-459E) U.S. DoE Federal Assistance Program/Project Status Report (PSR) (ElIA-45 9F) Financial Assistance Pre-award Information (AA:47) State of Alaska Federal FY94 Bioenergy Technical Assistance Grant Application Introduction The State of Alaska Department of Community and Regional Affairs (DCRA), Division of Energy is requesting funds from the U.S. Department of Energy Seattle Support Office for assistance in carrying out its bioenergy project development and technical assistance activities. The following narrative and budget documentation is a grant application and annual operating plan for the Division's proposed bioenergy activities. Mission. Goal 1 Obiecti | Funding R The goals of the Pacific Northwest and Alaska Regional Biomass Energy Program (PNA RBEP), managed by the US DoE Seattle Support Office are to: 1. Improve state, local government, and industry capabilities and effectiveness in the production and use of bioenergy resources. 2: Support planning efforts, particularly with regard to assessments of current and future resource availability, utilization, and applied research needs. 3. Encourage economic development through public and private investment in bioenergy technologies. 4. Perform applied research, and engage in projects to demonstrate, on a cost shared basis, the application of bioenergy technologies, reduce or eliminate market barriers, understand economic and environmental risks, and accelerate market acceptance of bioenergy technologies. The Alaska Bioenergy Program is managed by the Alaska DCRA Division of Energy. The mission of the Division of Energy is listed in its "Alaska Energy Strategy", April 1994: to assist in the development of safe, reliable, and efficient energy systems throughout Alaska, that are financially viable and environmentally sound. As described below, the Division proposes to work toward these goals through public information, technology transfer and technical assistance activities, and site-specific project development work. The Division is requesting $50,000 in assistance from the U.S. DoE and proposes to provide at least $25,000 in project matching in addition to supporting indirect costs for the Alaska Bioenergy Program. Between July 1, 1993 and March 31, 1994 the Division of Energy spent approximately $89,500 of federal funds. Over $99,500 of local government funds have been expended for solid waste planning in the Fairbanks Waste-to Energy 3 Project. Matching state funds will be expended for contractual items in the fourth quarter. State Bi M Coordinati i Key | Issues Rural-Urban Energy Development Finding solutions to high energy prices in Alaska's rural areas is one of the biggest challenges facing residents of the State. High transportation costs for heating and electrical generation fuels result in high retail fuel costs for rural communities. In many cases, rural energy costs represent close to 30 percent of annual income. Local use of wood energy, primarily for heating, provides an alternative solution to high rural energy costs. Many rural communities are located in or near wooded areas that provide an adequate fuel supply to support conversion to wood-based energy systems. Labor intensive activities, which support the production and sale of woody biomass, have the potential to keep cash in local economies. Biomass harvesting is also consistent with traditional, rural life styles. The urban, "Railbelt" area of Alaska includes Anchorage, the Kenai Peninsula, the Matanuska-Susitna Valley and the geographical areas to the north, including the city of Fairbanks. Use of biomass as a power generation fuel faces stiff competition in the Railbelt, due to low-cost natural gas. In Fairbanks, coal provides the primary fuel used for electrical generation, however opportunities for using municipal solid waste, and wood waste continue to expand. Development of a residential pellet fuel and appliance industry in Alaska has the potential to duplicate the successful growth of that industry in west coast cities. Solid waste management continues to be a major focus of state and local government activity both in the Railbelt and in rural areas. Many Railbelt communities are looking at alternatives to landfilling municipal solid waste. Several landfills will be closing within the next 5 years, with no immediate prospects for development of new sites. At the same time in rural areas the application of more stringent federal standards for solid waste management will challenge rural communities to consider strategies other than landfilling. Economic Development Strategies and Biomass Use Opportunities for using municipal solid waste (MSW) for energy are receiving increasing attention in urban Alaska. This is caused, in part, by increasing awareness of environmental impacts and regulatory changes associated with landfills and rising tipping fees. In the case of Southeast Alaska, limited landfill space is causing communities to take a hard look at energy recovery options. In many mid-size communities, however, low MSW volumes require that planners consider the economics of waste to energy facilities. Bark disposal problems at Southeast Alaska's pulp mills, chip mills, sawmills and log sort yards have raised a whole new set of environmental issues that will affect program direction in the years to come. These conditions indicate that identification of site-specific biomass opportunities may be the best approach for promoting commercial scale use. In many cases, Alaskans must consider scaled-down applications to suit small, local volumes of biomass fuel. Consideration will continue to be given to the beneficial economic effects of substituting local fuel sources for imported oil. Bioenergy Management and Coordination The Division of Energy is the lead state agency for energy matters. The Division's programs include the following: e Alternative and Applied Energy Development. Funds the development, design, construction, demonstration, and/or operational testing of technological enhancements to energy systems, and ¢ Statewide Electric and Power Project Development. Provides for the engineering, environmental, and economic analysis of power projects throughout the state. e Institutional Conservation Program. This is the schools and hospitals technical assistance and conservation measures program, which is currently being assumed by the Division. Other programs deal with rural technical assistance, utility training, and emergency prevention; rural power system and bulk fuel storage upgrades, waste heat project development, circuit rider/emergency response service, power statistics, and rural utility regionalization and business management assistance. Loan and grant programs include the electrical service extension fund, bulk fuel revolving loan fund, power project fund, and power cost equalization fund. Details on these programs are given in Appendix A. Through these programs the Division of Energy works with the approximately 175 utilities in the state to lower cost and increase efficiency, reliability, and safety of energy production. The Alaska Bioenergy Program is therefore well situated to provide ground-based technical assistance and project development activities in Alaska. Project Descripti 1 Mil Summary of Program Year 1993 Activities During the 1993 program year the Alaska Bioenergy Program participated in an Advisory Group meeting in Boise, Idaho, attended the Biomass Conference of the Americas, hosted an Advisory Group meeting in Sitka, Alaska, and co- hosted a small-scale alternative energy workshop in Anchorage. We wrote or managed projects which produced eight publications, reviewed four publications, and participated in workshops and review of state solid waste regulations (refer to Appendix A for more detail). Between July 1, 1993 and April 30, 1994 the Program responded to 31 requests for marketing information from industry potentially interested in working in Alaska and 32 requests for information and assistance from other government and private parties. The Alaska Bioenergy Program also had substantial interaction with industry and government related to special projects being conducted. The Division of Energy distributed copies of the South Tongass Wood Waste Resource Assessment to 60 individuals and organizations in Alaska and the lower 48 and has followed up the study with site-specific feasibility analysis. The Division also prepared and distributed a 76-page prefeasibility analysis to Seward Wood Waste project participants, including Seward Forest Products, Alaska Department of Corrections, Seward Ship Chandlery, City of Seward, and others. The Alaska program organized teleconferences and otherwise helped to coordinate efforts of the Juneau Heat Recovery and Distribution Project. Although the latter two projects are on hold, the information generated will be useful in reactivating the projects when current barriers are removed. Program Activities Task 1 -- Regional Task Force These activities include serving on regional program planning committees, preparing for and attending annual and national planning meetings, writing statements of work for and reviewing regional Requests for Proposal, and general support for the Pacific Northwest and Alaska RBEP position in the National Program. Opportunity or Need Participation of the Division of Energy in the Pacific Northwest and Alaska RBEP serves the goals of both the State of Alaska and regional program. The regional program gains the ability to be directly connected to an agency ona day-to-day basis with local and statewide knowledge and programs that can further development objectives of the regional and national biomass energy programs. Conversely, the State of Alaska receives exposure to technological innovation, policy, and other tools which help the state exploit opportunities to address its economic and environmental goals. Participating in at least 2 Advisory Group meetings and the annual PNA RBEP planning meeting, as scheduled. Participating in working committee(s) with other Advisory Group members to plan and execute regional strategies for promoting the use of biomass as an energy resource, as requested by the PNA Program Manager Reviewing and providing written comments on regional Requests for Proposal and participating in regional evaluation committees. Briefing the PNA Program Manager and the Advisory Committee on in-state policies, activities and technical information of interest to the Regional Program Assisting with the preparation of the annual PNA RBEP yearbook. Planned Activity | Measurable Results 3 Presentations on Alaska Bioenergy Program activities at meetings, as scheduled. At least one set of plans, review comments, and other materials for the annual planning meeting, as requested. At least one set of written comments and other evaluation output for regional proposals. At least five briefing summaries of Alaska bioenergy items of interest as they arise. Two semi-annual Alaska Bioenergy Program reports within three weeks of the end of December and June, including summaries of current projects. At least four tables or figures for inclusion in the workbook. One set of review comments on the draft yearbook.. Cost Element Funding Source Federal Funds ($) Direct Labor and Direct Labor Overhead U.S. DoE $13,767 $16,167 Task 2 -- Interagency Coordination This area includes developing and maintaining contacts with state and federal agencies to promote mutual awareness of goals and activities that affect the Bioenergy Program. Interagency coordination focuses on contacts with Task Force members, members of other Regional Bioenergy Programs, and in-state land management, environmental and economic development agencies. Opportunity or Need A number of other agencies within Alaska have goals and functions which affect or are affected by the Alaska Bioenergy Program. These include the following: e Alaska Industrial Development and Export Authority. Provides financing of energy and other projects. e Alaska Department of Environmental Conservation. Manages air and water quality and solid waste disposal. e« Alaska Department of Commerce and Economic Development. Promotes economic development activities. Funds feasibility assessments. e Alaska Department of Natural Resources. Manages large forest and land holdings. e Alaska Science and Technology Foundation. Fund research and development of energy and other technologies. e ANCSA Regional and Village Native Corporations. Manage large forest and land holdings. Conduct economic development activities. e Society of American Foresters. Develops and conveys information and policy regarding timber and land use. e U.S. Forest Service. Manages large forest holdings, performs research, funds and conducts economic and community development activities. In order to maintain effectiveness the Alaska Bioenergy Program must continue to identify common interests and work cooperatively with these agencies. Planned Activity Measurable Results Maintain contact with other agencies on a regular basis. Participating in state meetings of forestry interests which affect bioenergy development. Corresponding with agencies responsible for resource planning, permitting, economic development or other activities. These letters will recommend incentives or comment on activities that affect the development and use of biomass resources. Funding Source Description and listing of interagency coordination activities in two semi-annual reports. Summary of at least one meeting. At least three letters to agencies regarding bioenergy development. Direct Labor and Direct Labor Overhead State of Alaska Task 3 -- Technology Transfer and Technical Assistance Technology transfer and technical assistance activities are aimed at specific target audiences that have strong potential for initiating biomass to energy development projects. In previous years the Alaska program has provided highly visible, proactive technical assistance services to agencies, individuals and private industry. Assistance has been provided in several areas including: marketing assessments for biomass fuels and biomass-derived power and steam; evaluation of waste disposal options; information on appropriate technologies; and information on permitting and regulatory matters. The program has promoted these services through its quarterly newsletter, Bioenergy News, by attending conferences and trade association meetings, and by responding to information and assistance requests on a day-to-day basis. The program has maintained contacts with industry and agencies involved with timber management, harvesting and processing; solid waste management; agencies involved with air quality issues; the electric utility industry; and potential biomass fuel users, including public and commercial facilities. Opportunity or Need The technology transfer and technical assistance component of the Alaska program provides a means of maintaining communication between the national/regional bioenergy programs and users in Alaska. Maintaining this link facilitates the identification of opportunities for project development. We anticipate that project development in future years will continue to be carried out in successive phases as follows: 1. Prefeasibility analysis usually performed by Division of Energy staff or contractors 2. Detailed feasibility analysis, concept design, and siting of a facility in sufficient detail to provide a basis for project financing . Project financing Facility design and construction Pw 10 Planned Activity Measurable Results Publishing a newsletter which provides At least two issues of Alaska Bioenergy descriptions of recent bioenergy News distributed to 450 individuals and developments and other information organizations. applicable to Alaska Responding to bioenergy information and | Description of contacts in two semi- technical assistance requests on a annual reports to U.S. DoE. regular basis. Direct Labor and Direct Labor Overhead TOTAL 11 Task 4 -- Resource and Technology Assessment In previous years the Alaska Bioenergy Program has conducted resource assessments which were aimed generically to develop potential bioenergy resources, such as state agricultural land clearing debris or MSW resources. These activities have included supporting state and local planning efforts that match biomass energy resources with potential consumers. Opportunity or Need Focused assessment of biomass resources and technologies is an important step necessary for identifying bioenergy opportunities. In line with our goals of site-specific project development, current and future resource and technology assessment activities are and will continue to be aimed at enabling and promoting individual projects. Consistent with the overall goals of the Division of Energy, assessment efforts will be directed toward wood and solid waste resources in rural Alaska. P Activiti M R Planned Activity Measurable Results a Assessing the solid waste stream and One report which presents the results of wood resources of one region or this assessment. subregion in rural Alaska for the mid-term goal of developing a small-scale rural bioenergy facility. Cost Element Funding Source Federal Funds ($) Direct Labor and Direct Labor Overhead Travel TOTAL 12 Task 5 -- Small-Scale Rural Bioenergy Facility Demonstration Opportunity or Need One of Alaska's key concerns is the cost and impacts of using oil for power and heat in rural areas of the state. Despite the lowest real oil prices in decades and Alaska's status as a major oil exporter, rural Alaska continues to pay high economic costs for transporting, storing, and using imported oil for energy. The state government has estimated that it will cost approximately $200 million for federal, state, and local entities to make the repairs to bulk oil storage facilities that are necessary to address environmental standards. There is both need and opportunity to use local fuels. At the same time draft state solid waste regulations suggest that landfilling costs will increase substantially as standards become more strict. Regulations, as currently written, require an economic comparison among solid waste management alternatives. Small-scale waste and/or wood fired energy facilities are receiving increased attention in rural areas as potential means of waste disposal, and to a lesser extent, oil displacement. P Activiti iM le Resul The following activities will follow the solid waste and wood assessment outlined in Task 4 above. If the assessments below indicate that a rural waste and/or wood-fired demonstration facility is feasible, the state will consider supporting further project development work. Planned Activity Measurable Results Assessing current commercial technology | One report which presents the results of for solid waste and wood combustion and | this analysis. heat recovery in a rural setting. Analyzing feasibility of developing a solid | One report which presents the results of waste and/or wood-fired energy facility in | this analysis. a rural setting. Funding Source Direct Labor and U.S. DoE Direct Labor Overhead Travel State of Alaska Contractual State of Alaska TOTAL CSCS Federal Funds ($) 13 Publications Written South Tongass Wood Waste Resource Assessment, America North/EMCON Inc., December 1993. Seward Wood Waste to Energy Prefeasibility Assessment, Alaska DCRA Division of Energy, January 1994. Phase | Financial Analysis of Juneau Waste Heat Recovery and Distribution Project Feasibility, J.C. Bradford & Company, January, 1994. Tanana Valley Fiber Production on State Lands, Alaska DNR Division of Energy and Alaska DCRA Division of Energy, expected completion June 1994. Fairbanks Solid Waste Management Plan and Technical Memoranda, Dames and Moore and R.W. Beck and Associates, 1993-1994 (partial funding). Economic Comparison of Power Generation Alternatives for Thorne Bay, Alaska, University of Alaska Anchorage, expected completion June 1994. Alaska Bioenergy News, No. 34 and 35, Alaska DCRA Division of Energy. Publications Reviewed Draft National Biomass Power Program Five-Year Plan, U.S. Department of Energy. Draft Process Evaluation of the Regional Biomass Energy Program, U.S. Department of Energy. Draft FY 92-93 PNAB Program Yearbook, Pacific Northwest and Alaska Regional Bioenergy Program. Draft Municipal Solid Waste in the Pacific Northwest and Alaska, Washington State Energy Office. State Policy Comments on draft Solid Waste Regulations 18 AAC 60, Alaska Department of Environmental Conservation. 14 OMB Approval No. 0348-0043 APPLICATION FOR SES = SEDERAL ASSISTANCE | | . TYPE OF suBMIssiCN : | | 2. CATE RECEIVED SY STATE | State Apoucanon identitier 4. DATE RECEIVED SY FEDERAL AGENCY | Fecera centitier [& Non-Construcnon —: . 5. APPUCANT INFORMATION ‘ages Name: Organzanonai Une: Dept. of Community & Regional Affains State of Alaska Division of Energy | \dcress (give city, county, state. and 2p code): Name and teieonone numoer ot the person to De contacted on matters invotwing | 333 W. 4th Avenue, Suite 220 ius sqoaepen (ove ara cose Anchorage, AK 99501-2341 Peter Crimp, Development Specialist II (907) 269-4631 or (907) 269-4630 | - EMPLOYER IOENTIFICATION NUMBER (EIN): 7. TYPE OF APPLICANT: (enter approcnate /efter m box) I Al -(sote i Tsts] | 2 a B County |. State Controiied insutubon of Higher rr eennnemecnmamememcammnnt WA RNC J. Private University | & TYPE OF AppLUCATION: oT Ingian Tribe (New (© Contnuanon (] Revson E interstate _ & lncmduat . F intermumacat M. Protit Orgamzanon |" Rewson, enter asoroonace lectus} in bomen: [] oO G Soscai Cistnct N. Other (Soecsty): A. increase Award & Cecrease Award C. Increase Ouravon 0. Cecrease Ouranon Other (specify): 2 NAME OF FEDERAL AGENCY: | Department of Energy . . CATALOG OF FEDERAL OOMESTIC 11, DESCRIPTIVE TITLE OF APPLICANT'S PROJECT: ASSISTANCE NUMBER: 8 1 je} O 7 9 Alaska Bioenergy Program | TITLE: L AREAS AFFECTED BY PROJECT (cites, counnes, slates. etc. }: | Statewide, State of Alaska 12_ PROPOSED PROJECT: 14. CONGRESSIONAL OISTRICTS OF: Start Cate Ending Cate =| a Acoiicant 2b. Prowect 7/1/94 6/30/95 Alaska : Statewide | 1. ESTIMATED FUNDING: 16. |S APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS? Fecerat 3 08 a YES. THIS PREAPPLICATICN/APPLICATION WAS MADE AVAILABLE TO THE 50,000 STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON: & Apoucant 3 00 25,000 OATE. State 3 00 b NO. [XJ PROGRAM IS NOT COVERED BY EO. 12372 ‘Loca 3 oo | (0) OR PROGRAM HAS NOT SEEN SELECTED BY STATE FOR REVIEW Program income | $ .00 | 17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? [K] No 9 TOTAL 3 75,000 (Yes it “Yes.* attach an explanation. . TO THE BEST OF MY KNOWLEDGE ANDO BELIEF. ALL DATA IN THIS APPLICATION/PREAPPLICATION ARE TRUE ANO CORRECT, THE DOCUMENT HAS BEEN OULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT ANO THE APPLICANT WILL COMPLY WITH THE ATTACHED ASSURANCES IF THE ASSISTANCE !S AWARDED bd. Title c. Teleonone number Commissioner 465-4700 tancara Prescrined Sy OMS Curcuiar 4-102 Typed Name of Autnhonzed Representatve Edgar Blatchford a. Signature of ‘oo Reoresentatve l Nan, Jo ”7 evious Editions Not Usaole Authasivad tre | Aral Qanraduction FY94 PLAN OMB Approval No. 0348-0044 BUDGET INFORMATION - NON CONSTRUCTION PROGRAM Grant No. SECTION A. BUDGET SUMMARY Federal New or Revised Budget | Grant Program Catalog No (a) (b) Federal Non-Federal Total (c) (d) (e) $25,000 $25,000 } $ 50,000 6. TOTALS . Div. Energy 7. OBJECTIVE CLASS CAT. (1) State of Alaska! SECTION B. BUDGET CATEGORIES Grant Program, Function or Activity (2) DOE $50,000 $ 75,000 (3) TOTAL eT a “ | b. Fringe Ben 0 $12,034 $12,034 c. Travel $2,400 $5,257 $7,657 | po | d. Equipment $0 | | | e. Supplies $0 | ! $22,600 om $22,600 | i} | $25,000 $ 50,000 il | i | ] f. Contractual | I | $ 75,000 } I | k. TOTALS | | 8. Program Income 0 0 0 $25,000 $ 50,000 $ 75,000 Standard Form 424A(4-88) 'The State of Alaska will bear indirect program costs, including office, phone, copying, administration, etc. 16 BUDGET NARRATIVE/JUSTIFICATION INFORMATION Grantee Name: STATE OF ALASKA, Department of Community and Regional Affairs, Division of Energy Program: Pacific Northwest and Alaska Bioenergy Program Budget Period: 07/01/94 to 06/30/95 Annual No. of % of Amount } Salary Months Time | DEVELOPMENT SPECIALIST II, Range $48,384 } oe | 66.7% $17,365 | | 20B H DEVELOPMENT SPECIALIST II, Cee | Program saminiswaror | administrator $49,860 ot | 66.7% $15,340 | Eee a. Personnel Position Title Position Title Annual Fringe DEVELOPMENT SPECIALIST II, Range Program administrator $ 17.862 : : $6,411 | 208 DEVELOPMENT SPECIALIST II, Range Program administrator $18,272 | 5.54 | 66.7% $ 5,621 | 20C TOTALS . $ 12,034 Fringe rates are based on the current approved state salary schedule. 17 BUDGET NARRATIVE/JUSTIFICATION INFORMATION Grantee Name: STATE OF ALASKA, Department of Community and Regional Affairs, Division of Energy Program: Pacific Northwest and Alaska Bioenergy Program Budget Period: 07/01/94 to 06/30/95 c. ravel: Summarize the following information for in-state and out-of-state travel. Travel costs are approximations based on past Division of Energy experience. In-State Travel: [ Total Number of Total Estimated Cost Purpose Estimated Cost Program Meetings, 2 trips Review Regional Solicitation TOTAL ALL TRAVEL: 18 BUDGET NARRATIVE/JUSTIFICATION INFORMATION Grantee Name: STATE OF ALASKA, Department of Community and Regional Affairs, Division of Energy Program: Pacific Northwest and Alaska Bioenergy Program Budget Period: 07/01/94 to 06/30/95 d. Equipment ! | oo | a TOTAL ALL EQUIPMENT: $_-0- e. Supplies - Describe major categories of supplies used as bases for this cost estimate. (Ex. - Types of items that may be purchased include forms, envelopes, paper, computer paper, computer disks, templates, folders, storage files) Supplies are provided by the Division of Energy as general office overhead costs, and are not included in this grant application. TOTAL ALL SUPPLIES $_ -O- f. Contractual (Contracts) Describe product/service to be provided. If a single/sole source will be used and will be in excess of $25,000 (State/Local Government, Indian Tribal Governments or $5,000, all other Applicants, provide justification. Contract Title Services to be Provided Estimated Type of Cost Contract (Competitive vs. Non- Competitive) | Engineering and Consulting services $ 22,600 NON- | program support COMPETITIVE TOTAL ALL CONTRACTUAL: $22,600 $ 22,600 19 BUDGET NARRATIVE/JUSTIFICATION INFORMATION Grantee Name: STATE OF ALASKA, Department of Community and Regional Affairs, Division of Energy Program: Pacific Northwest and Alaska Bioenergy Program Budget Period: 07/01/94 to 06/30/95 h. Qther - List other items of major type. Supplies are provided by the Division of Energy as general office overhead costs, and are not included in this grant application. TOTAL OTHER COSTS: E 20 APPENDIX C Current Industry-Related News Articles Page 36 / = pw Ui ly pees uA s PRICE 50 CENTS Feds scrap Tongass timber pact Sitka mill closure blamed; more than 700 jobs at risk By DAVID WHITNEY Daily News reporter WASHINGTON — The Forest Service said Thursday that it is canceling Japanese- owned Alaska Pulp Corp.’s long-term con- tract for cheap timber in Tongass National Forest. Regional Forester Mike Barton told the company the contract was being canceled be- cause it closed its mill in Sitka on Sept. 30. The contract required year-round operation of a pulp mill. The pulp company had lobbied the Clin- ton administration to continue the contract while it explored = building a fiberboard RON ENGSTRON / Anchorage Only News plant to replace the Sitka mill. But Barton said the company could not commit to building the fiberboard mill and that the agency had no choice but to turn off the timber supply. The company’s contract was not due to expire until 2011. During the next 17 years, it would have been entitled to cut about 2.1 billion board-feet of timber at costs far below market value. The decision adds a new layer of job fears for southeast Alaska’s struggling timber industry. The pulp mill’s closure cost about 400 jobs in Sitka. Cancellation of the contract could cause the company to pull out of southeast Alaska altogether. That would mean the closure of its Wrangell sawmill, which employs about 240 people, and the end of jobs for about 500 company loggers. Please see Back Page, TONGASS iit, DACK PAGE TONGASS: Forest Service cancels pact Continued from Page A-1 “All of this is at risk,” said Alaska Pulp board member John Hough. “The company is profoundly dis- appointed.” Hough said the company won't have a detailed re- sponse until it studies the Forest Service’s action. But among the issues that will be foremost on the compa- ny’s mind will be whether to proceed with feasibility studies for the fiberboard plant, which would employ about 130 workers, he said. Barton said in a prepared statement that the Forest Service is concerned about” the potential job losses. He said the agency is willing to consider any and all oppor- - gra 39 » J GROFE. gb. 9 r =a > BREESS &ee zB WsEORE S BS Of * m& o w cag oe -BeeZzo§ oeF o sw B oe ee aS B ‘SRRERwD 7O9 ~SeRa5 B° z “ge be S85 op B°ameP BE FES%0 :8 BS 98 aD mo ge™e FE sisdea £8 Be aaa <2 tunities for future logging operations but that new fa- cilities, presumably includ- ing APC’s proposed fiber- board plant, would have to compete on the open market for ‘Tongass~ timbér? Trees not sold undér long-term contracts are auctioned off by the Forest Service. Barton, sald | that APC’s Wrapigeh mf gs. pout timber ~po: operate, 2 five ya Ath thie any wants ,; tinker, ‘fle milk, pgp ’ out, bid*qn independen! find other’ thitiber ‘dips - peocoess gu ges Tasgar GSenpasdze?ae. bbw ao aon 88as Ta sores sarang ae gyi BUoes re ny pew Re B oot ao masons oS 2 spams oso BhuBnsgas Ps Cat ke te bE eso 28 SES one ° oO SESE ek ote aApseanA® So Tg Fek Sak a K5$a0 oo Shmds HOSRAR < 2a uf RRC RES to ow Go _ ~ e 49 4 Oo BeoeeeR eee ges tract year-round business to southeast Alaska. The other 50-year contract is held by the Ketchikan subsidiary of the Louisiana Pacific Corp. Environmentalists have long complained that the long-term contracts obligate the Forest Service to sell more timber than the forest can stand. Recently, Forest Service biologists have said that the rapid rate of cutting in the Tongass is jeopardiz- ing fish and wildlife habitat. The long-term contracts also have been criticized as a bad deal for the government. In 1992, the Forest Service . lost $23 million on Tongass timber sales, because road building and other govern- ment expenses exceeded rev- | crue SFeee PS BEESE Kspaed ge “SES a a. S398 sm Sod ge > o 3QOsa0 > soSBsl2pag° rt moa SQ S5 Bag b SEBS Ta Fw ao vS2855 an eS Te AON GDS 5 am Poop F 255 4 TUs5 po BePrQO” PF ae 28 aros .. 2008 Epp” 5m 00 wo oe DYS ocr =O To Ee case rTRs oug Fo =O” 5B $2 & AaB5doac e858 ean asrga v9 co Om cen Qn: a® eos ee ga 23926 wase. P enues. That was the biggest loss for a federal forest. In 1990, Congress passed a law that unilaterally re- wrote the long-term con- tracts to raise tree prices in the Tongass. The act also clased some areas to logging. Alaska Pulp blamed the 1990 act and depressed pulp prices for the de¢ision to close its Sitka mill. But the company also was dogged by the Environmental Protec- tion Agency for the plant’s violation of water-pollution standards that would have cost tens of millions of dol- lars to correct. Company officials, includ- g Hough; met with White House officials in February and the all-Republican Alas- uoIstaap yey HUIy? aM,, “‘UOTSIIap ay} paTrey sjstyeqUawUOIIAUy -uasior omg pres ,,‘yey} Wod -dns am pue ‘Arjsnput sequit; atqeurejysns e 103 aprtaoid 0] Moy YyUTYIaI 03 AjtUNpOd -do ue Aljsnpur sJaquity ay} S@AIZB 1 .}Saraqut o17qnd ay 103 £103 -OIA yuepOdW! ue, ose djnd eyse|y UM