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HomeMy WebLinkAboutWood-Peat Municipal Solid Waste Agricultural Byproducts Alaska Bioenergy Program Semi-annual Report Jul-Dec 1994wood - peat municipal solid waste agricultural byproducts Alaska Bioenergy Program Semi-annual Report July - December 1994 State of Alaska Department of Community and Regional Affairs Division of Energy TABLE OF CONTENTS I. TASK FORCE ACTIVITIES ..000..00000000ccccccccecccccccceceseeeeeessecescensectssesteeee ee 2 ll. TECHNOLGY TRANSFER AND TECHNICAL ASSISTANCE ...........00...... 2 lll INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT io. cccccccscie coscctesssovcsistaeccascnvessssvissdedeeassescssabuiescncesessovecet oe 2 IV. RESOURCE AND TECHNOLOGY ASSESSMENT / SMALL-SCALE RURAL BIOENERGY FACILITY DEMONSTRATION...........0...00.ccceceee 4 V. INDUSTRY ACTIVITIES IN ALASKA ...000.0....cccccccccccceccccecceeeeeceeseeeseeees 13 A. Southeast Alaskan... cccccceseccessceccessseecesscecessssecesseesseceaeeeseees B. Southcentral and Interior Alaska...........0...ccccccccssccceeeeeesseeesseee a a UNA ON aaa cov otc tact dodv svn ra edt hd codeta sdede da taadat ab sivevdieteld ie iela chose la APPENDIX Current Industry-Related News Articles TASK FORCE ACTIVITIES Regional Solicitations. In August the Division of Energy reviewed proposals for the PN&A bioenergy grants and met with other advisory group members in Golden, Colorado to rank proposals for funding. In December we submitted comments to the PN&A manager on the 1995 draft solicitation. Regional Project Monitoring. The Division served as contracting officer’s technical representative for the Thermal Oxidation System Energy Recovery Project. In this capacity we worked with the grantee to ensure that siting issues were addressed, prepared a draft environmental assessment requested by the USDoE NEPA office, and coordinated activities with co-funder Alaska Science and Technology Foundation. PN&A Consultant Proposal Review. In November we reviewed proposals for the PN&A Bioenergy Program consultant contract. Other Task Force Activities. In September the Division commented on a draft bioenergy development incentives directory being prepared by the SERBEP. In December we provided Alaska project summary text and other information to Craig Chase for the PN&A Regional Project Summaries publication. In November we submitted a proposed amendment to the Alaska bioenergy grant to include the Thorne Bay Wood Waste project and to allow close-out of the Fairbanks Waste-to- Energy project. TECHNOLOGY TRANSFER AND TECHNICAL ASSISTANCE During this period the Division of Energy received and responded to 20 requests for technical assistance and information regarding energy recovery from municipal solid waste, ethanol usage in Anchorage and Fairbanks, bioenergy facilities, project financing, fuel availability, markets for industrial products, and project status. A list of contacts is given below. INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT Appendix A includes a detailed background on current projects. Interagency Coordination This period we worked with various communities and the Department of Environmental Conservation to Page 2 identify opportunities for energy recovery from municipal waste in Ketchikan, Nome, Klawock, Thorne Bay, Tok, Galena, and Chitina. The Division was in frequent contact with state, federal, and Native forest managers to keep track of current harvest and processing trends. The Alaska bioenergy program manager attended portions of a joint Society of American Foresters/Canadian Institute of Forestry conference in Anchorage in September. Project Development. This period we initiated and responded to proposals for co-firing biomass with coal, small-scale direct combustion and cogeneration, and gasification. In September we worked with the U.S. Environmental Protection Agency to submit a joint proposal for an Environmental Technologies Initiatives grant for a biomass power demonstration project. Fairbanks Waste to Energy Project. The Division submitted comments to the Fairbanks North Star Borough on their draft solid waste plan in July. The Borough finalized the plan soon after and forwarded final deliverables to the Division. We distributed a full set of documents to the PN&A program manager and select documents to advisory group members. The Division used $25,000 in state funds to close out the Borough's grant contract in anticipation that USDoE will reimburse the State with FY94 funds received from Bonneville Power Administration which were originally earmarked for the project. Thorne Bay Wood Waste Under contract to the Division of Energy, the University of Alaska finalized “Economic Comparison of Power Generation Alternatives for Thorne Bay” in August. That month the Division issued project findings and a response to draft report comments to Prince of Wales Island communities, local utilities, and legislators. In September we were the main focus of a special Thorne Bay City Council meeting which discussed the merits of an intertie to hydro power, upgrades of the existing diesel power plant, and a waste-to-energy facility. In October through December, the Division worked with Thorne Bay to develop an overall plan for energy projects, including waste-to-energy. In November we submitted a proposed modification to our PN&A bioenergy grant to fund Thorne Bay $25,000 for feasibility analysis. Funds would be matched by $70,000 in state and local funds. In December we helped the city administrator refine the scope of the proposed project. Page 3 IV. RESOURCE AND TECHNOLOGY ASSESSMENT/ SMALL-SCALE RURAL BIOENERGY FACILITY DEMONSTRATION These task areas focus on using local biofuels--chiefly garbage and wood- -to lessen dependency on oil for heat and power generation in rural areas. During this period the Division designed and initiated a new project, “Rural Heat Conservation and Fuel Substitution”, which is aimed at assessing thermal energy usage in major buildings in rural Alaska, such as schools and community buildings, and identifying feasible energy efficiency and wood fuel substitution retrofits. Funded by $180,000 in state funds, the project will be conducted in two phases: 1) preparation of a database of heat usage in major buildings (facilities which use more than 5,000 gallons of oil per year for heating), and 2) analysis of site-specific energy conservation and fuel substitution measures. Also during this period we continued communication with Gana -a’Yoo Ltd. of Galena, Sandia Laboratory, and the USDoE Solar, Thermal, and Biomass Power Division to assess a small-scale biomass power project in the middle Yukon River. A leadership change at Gana -a ‘Yoo has decreased the organization’s interest in pursuing the project, but $50,000 in USDoE funding is still available through Sandia, and we will work with Sandia to integrate the project with state and PN&A program goals. Page 4 Alaska Bioenergy Program DATE July July 1-22 July 26 July 27 July 28 July 29 Partial List of Contacts July to December 1994 CONTACT Richard Bonwell Fairbanks North Star Borough Fairbanks Roger Boardman Thermogenics Albuquerque, NM Bob Grimm Alaska Power and Telephone Port Townsend, WA Lyn Bowman Sunpower, Inc. Athens, OH David Brann Energy Products of Coeur D’Alene, ID Steve Colt University of Alask Anchorage Ed Enswiler Alaska DEC Juneau Chunsen Lin University of Alaska Fairbanks Doug Lowry Alaska DEC Fairbanks 5 Idaho a Page 5 DESCRIPTION Crimp on leave Review of final draft solid waste management plan Proposal for 100 tpd gasifier in Bush location Hydro power to Thorne Bay, plans for coal/biomass power plant in Tok Plans for Woodmizer/Sunpower joint venture for biomass-fueled Stirling engines Interest in Alaska project, possibly Tok. Thorne Bay Economic Comparison assumptions Southeast Alaska MSW issues CQ Inc. proposal for coal fines/biomass fuel Tok landfill out of compliance and will be closing. Aug 1 Aug 3 Aug 4 Aug 8 Michael Pope Entech Inc. Anchorage Robert Harris, John Sibert Alaska Science and Technology Foundation Anchorage Bill McClarence Alaska DEC Anchorage Alex Sifford Oregon Dept. Energy Salem, OR William Beale Sunpower inc. Athens, OH John McClintock, Clark Harrison CQ Inc. PA Fred Monrean Ketchikan Gateway Borough Ketchikan Craig Chase Chase and Associates Bellevue, WA Kathy St. John Ketchikan Daily News Craig Jeff James USDoE Seattle Marvin Yoder City of Klawock Klawock Ginny Tierney City of Thorne Bay Thorne Bay Page 6 Proposed waste-to-energy project. Recent trip to Finland, biomass projects, previous Entech award Potential permitting for small incinerators Regional solicitation Progress of small Stirling engine demonstration Info request re Alaska biofuels. Proposal for coal fines/biomass pellet co-firing at University of Alaska Tipping fee/cost of disposal in Ketchikan Regional bioenergy solicitation Status of Thorne Bay bid for waste to energy grant funds Regional bioenergy solicitation Thorne Bay economic comparison, burning Klawock garbage Thorne Bay study findings point toward regional facility feasibility. Aug 11 Aug 17 Aug 22 Aug 23 Aug 29-31 September Sept 1 Sept 2 Sept 6 PNAB Advisory Group Richard Smith Sitka Bruce Kling Gana -a ‘Yoo Ltd. Galena Paul Klimas Sandia National Lab Albuquerque, NM Chow Taylor City of Galena Galena Forest Products Lab Madison, WI David Wolf University of New Mexico Albuquerque, NM PNAB Advisory Grou Golden, CO . Steve Brand Thermogenics Albuquerque, NM Jim Stimpfle Nome Chamber Commerce Nome Richard Bonwell Fairbanks North Star Borough Fairbanks Steve Clautice Alaska DNR Div. Forestry Fairbanks Page 7 Conference call re regional bioenergy solicitation Cost of small waste-to-energy system O&M Local fuels for combustion. Existing coal mine. Middle Yukon bioenergy feasibility study New landfill will be required in Galena soon, power plant buyout by USAF Available wood composites Wood to liquid fuels process Meeting to rank PNAB regional solicitation proposals Discuss his revised proposal for gasifier in rural Alaska Nome garbage issues. Interested in gasification Progress toward cofiring paper with coal 18 log trucks per day from Copper Valley to Valdez Sept 7 Sept 10 Sept 11 Sept 12 Sept 13 Sept 14 Sept 16 Sept 18-22 Sept 22 Sept 23 Sept 23, 27 Craig Chase, Don Err, Mike Pope, Roger Kolb Entech Anchorage Marvin Yoder City of Klawock Klawock Bob Grimm Alaska Power and Telephone Port Townsend, WA Ken Kilbourn US Forest Service Anchorage Carol Purvis US EPA Triangle Park, NC Tom Hicks Ketchikan Pulp Company Ketchikan Julie Riehl USDoE Seattle Robert Allain : Copper River Native Assoc. Copper Center Craig Chase PNAB Consultant Bellevue, WA Anchorage, AK Carrie Beth Nagel Energenics Maryland Dave Stephenson TVA Muscle Shoals, AL Jeff James, Carol Curtis USDoE Seattle, WA Page 8 Pre award meeting for Copper Center WTE project. Klawock vs. Thorne Bay as regional MSW disposal site Klawock sawmill load OSB or wafer board plant potential in Tanana Valley Env Technology Initiative proposal, gasifiers Info request re South Tongass wood waste Bonneville Power Admin grant closeout Alternative site for waste-to-energy facility Copper Center WTE project status Society of American Foresters/Canadian Institute of Forestry national meeting Info request on publication Review comments/info on “National Director of Federal and State Biomass Tax Incentives and Subsidies” by SERBEP Copper Center WTE contract Sept 28 Sept 29 Sept 30 Oct 3-5 Oct 7 Oct 13 Oct 19, 20, 26, 31 Oct 20 Bob Richardson Alaska Div. Investments Anchorage Jim Toland Sacramento, CA Thorne Bay City Council, Ketchikan Pulp officials, Alaska Power and Telephone officials, other interested public Tom Briggs City of Craig Craig Sparks, NV Darren Schmidt Research Triangle Inst. Research Triangle Park, NC Rene Van Nort Fairbanks North Star Borough Fairbanks Louise Urgo/Paul Johnson USDoE Seattle, WA Jim Roberts Cordova Electric Cooperative Cordova Craig Chase PNAB Consultant Bellevue, WA Jeff James, Carol Curtis USDoE Seattle Moose Zurline Alaska Burner Bellingham, WA Page 9 Status of “Alternative Energy Loan Fund”, energy projects funded by state in 1980s Impressions of Thorne Bay wood waste possibilities City Council meeting in Thorne Bay. Council disappointed that about Division of Energy reservations about waste-to-energy markets in thorne Bay Landfill in Klawock, future load growth on Prince of Wales Island Bioenergy ‘94 Info request re biofuels, energy statistics. Gasifier at Camp LeJeune, Alaska interest in small power systems Closeout of grant for Fairbanks WTE project Projects funded under Indian Energy Resources act in Alaska Request for proposals for power production alternatives Copper Center WTE status, information for bioenergy project summary Entech Inc. grant, NEPA review, proposed grant modification Incineration technology, cost, heat recovery potential Oct 21 Oct 24 Oct 26 Matt Freedman Public Citizen Washington, DC Fred Walters Eielson Air Force Base North Pole Dan Logan Alaska Votech Seward Leland Sprat Palmer Correctional Facility Sutton Mardel Gunn Chugachmiut, Inc. Anchorage Curt Stowell, Scott Frohlich Advanced Combustion Systems Bellingham, WA Mike White Garness International Anchorage Anchorage Chamber of Commerce _ Anchorage Jim Seaman Proctor Company Anchorage Glenn Miller Alaska Dept. Env. Cons. Juneau Craig Chase PNAB consultant Bellevue, WA Steve Phillips Division of Forestry Anchorage David Wigglesworth Alaska Dept. Env. Cons. Anchorage Page 10 Information request Status of planned paper cuber, co-firing in coal boilers Status of Seward Forest Products mill Performance of wood-fired boiler, use of scrap wood from North Slope Info request, status of grant to Chenega Bay for incinerator Available small-scale garbage incinerators suitable for rural use. Skid incinerators available. No heat recovery possible. Meeting regarding economic impact of timber industry in Southcentral AK Therm-Tech incineration installations in Alaska, Cain economizers Reference on wood recycling Sent material for PNAB project summaries Tanana Valley Forest inventory Process changes proposed at Ketchikan Pulp mill and NICE**3 funding Oct 27 Oct 28 Nov 2 Nov 4 Nov 7 Nov 10 Nov 15 Nov 16 Glenn Martin Alaska Power and Telephone Port Townsend, WA Ginny Tierney City of Thorne Bay Thorne Bay Carol Purvis US EPA Research Triangle Park, NC Jack Whittier NEOS Corp. Denver, CO Brian Gray Consultant Anchorage PNAB Advisory Group Fred Kuzel, Mike Vorhees USDoE Gary O'Neil : US EPA . Seattle, WA Jeff James USDoE Seattle, WA Bob Crosby Consultant Eagle River Doug Hanson Tanana Chiefs Conference Fairbanks Don Eller Tanana Power Company Wasilla Steve Stassel Consultant Anchorage Page 11 Possible funding sources for Tok coal/biomass power plant Negotiations on power sale agreement, RFP boilerplate Finding support for bioenergy Env. Tech. Init. project in Alaska Pellet industry development Info request. MSW fuel value and estimated waste stream in Cordova Review of PNAB Program consultant proposals Alaska ETI proposal, Snake River initiative Proposal for grant modification Methane digester project with Alaska Science and Technology Foundation Small sawmills in Yukon -Kuskokwim drainage Tanana district heating system Exhaust heat recovery in rural diesel gen- sets, fouling problems Nov 17 Nov 18 Nov 22 Nov 24-Dec 5 Dec 6 Dec 7 Dec 8 Paula Cullenberg Alaska Fisheries Development Foundation Anchorage Chris Maisch Tanana Chiefs Conference Fairbanks Tom Hardy Thorne Bay Paul Klimas Sandia National Lab Albuquerque, NM Steve Morris Municipality of Anchorage Anchorage Crimp on annual leave Jim Clark, Marlene Johnson Chitina . Mike Blodgett Wasilla Mike Heimbuch Homer Brian Gray Consultant Anchorage Jeff James USDoE Seattle, WA Tom Walker Consultant Wasilla Page 12 Contacts for fish oil usage for fuel in Kodiak Tok chip supply and sawmill rebuild, Chitina in-woods chipping residue, Info request Middle Yukon biomass feasibility project funding, 200 kW gas turbine system Projected ethanol usage in Anchorage Interested in heat recovery incinerator in Chitina, absorption chiller Info request re wood energy content versus coal Info request re wood boilers Info request re options for heat recovery incineration in Cordova Review comments on draft regional solicitation Wood-fired boiler design for small buildings Craig Chase PNAB consultant Cody, WY Dec 9 Harry Pariso S&L Marketing Idaho Dec 14-20 Crimp on leave Dec 21 Jeff James USDoE Seattle, WA Ron King Alaska Dept. Env. Cons. Juneau Rob McOnee Radar Company New Orleans, LA Dec 22 Clois Versyp Consultant Anchorage Leland Spratt Q Palmer Correctional Facility Sutton Dec 29 Norm Phillips Doyon, Ltd. Fairbanks Ethanol usage in Anchorage, annual operating plan Info request re ethanol usage in Anchorage Alaska program grant, PNAB consultant, regional solicitation, Copper Center WTE Expected oxygenate use in Fairbanks and Anchorage Info request, Radar’s work at Ketchikan Pulp Co. Fish oil usage in boilers at new plant at Kodiak, Dan James contact Site visit with Division of Energy engineers Jarvis Creek coal deposit for Tok power plant, McGrath power plant feasibility INDUSTRY ACTIVITIES IN ALASKA A. Southeast Alaska Page 13 Alaska Pulp Corporation (PAC) closed its Wrangell sawmill in November. The mill, which was dependent on sawlogs from the federal long-term timber sale canceled by the USFS last spring, employed around 225 workers. Although the USFS offered to make timber available to the mill, APC said that it was too little, too late, and too expensive. In December PAC filed a suit against the Forest Service claiming $1 billion, chiefly for the difference between the long-term contract price and projected market price of logs during the remaining 17 years of the contract. Meanwhile timber prices continue to climb. A major logging firm in Southeast paid the USFS $83/mbf stumpage for a sale in September. Timber interests in Southeast are expected to benefit from the ascendancy of Republicans in the U.S. Congress. Alaska Rep. Don Young now heads the House Natural Resources Committee, while Sen. Frank Murkowski is chair of the Senate Energy and Natural Resources committee. Both are vocal supporters of timber development. B. Southcentral and Interior Alaska Markets for timber in Southcentral and the Interior continue to be good. On the Kenai Peninsula, Circle DE Pacific’s chipping operation is filling one ship (around 24,000 tons or 1.2 mmcf solid wood) every six weeks. Considerable bark and other residue associated with the in-woods chipping operation is being left at the landings. We will explore opportunities for using the residue for fuel. Market price is $130-145/bdu. Over objections by environmentalists 18 mmbf of state timber threatened by bark beetle have been sold on the Kenai Peninsula. Much of the timber will be chipped by Circle DE or exported to Asia and the lower 48 in round log. Recent timber sales offered by the state in the Interior have been sold to local and Puget Sound firms for $80-$125/mbf, reflecting record demand. After burning last summer the local sawmill in Tok has been rebuilt and is functioning. Residue from the Tok mill and another mill planned in the area will continue to be available as fuel for a possible coal/wood/garbage fueled power plant being considered in the area by Alaska Power and Telephone. Cc. Ethanol In July the Anchorage Assembly voted to use ethanol as a fuel oxygenate in Anchorage beginning January 1, 1995. Ethanol is replacing MTBE, which was criticized by many residents as smelly and unhealthful. Assuming that ethanol usage is found to be an acceptable replacement during winter months, the Department of Environmental Conservation officials estimate that around 4 million gallons will be required each year in Anchorage. Fairbanks will likely require an additional 1.5 million gallons of ethanol per year. Major gasoline sellers Mapco, Texaco, Chevron, and Tesoro plan to import ethanol from the lower 48. Page 14 APPENDIX Current Industry-Related News Articles Page 15 WEDNESDAY. July 13. 1994 City dumps oxy-fuel By PETER BLUMBERG Daily News reporter This winter you can say goodbye to methyl tertiary butyl ether, otherwise snown as oxy-fuel. Say hello to ethanol, an- other kind of oxy-fuel. The Anchorage Assembly voted Tuesday to try a dif- ferent oxygenated gasoline additive, pinning their hopes show ethanol to be healthi- er, cheaper and likely to be more efficient than MTBE at reducing the poisonous car- bon monoxide emissions that have kept Anchorage on the federal government's dirty air list for many years. The vote was 8-0, with three members absent. No one from the public testified during a hearing before the vote. ANCHORAGE I Mayor Rick Mystrom voiced his support as well, saying the public deserves better than MTBE, which has been found in a number of medical ies to make some peopie sick. Anchorage first used MTBE two winters ago to comply with the federal Clean Air Act. which re- quires cities that have on Lower 48 studies that YAILY NEWS higher than permitted levels SECTION B MTBE for ethanol of carbon monoxide to take steps to reduce emissions. Last year, after com- plaints during the previous winter from Anchorage and Fairbanks residents who claimed MTBE was making them sick, state and federal officials agreed to suspend the oxygenated fuel program in Alaska. Anchorage officials this year had to resume the pro- gram or risk violations of the Clean Air Act that could result in a loss of federal highway funds and forced compliance measures, in- cluding mandatory car pool- ing. But in choosing ethanol over MTBE on Tuesday, the assembly had to weigh the risk of possibly violating air quality standards in the ear- ly winter months while local gas stations wait for supplies of ethanoi-based fu- el to arrive. That wait may be six or seven months long, said Gene Burden, an attorney representing Tesoro Alaska Petroleum Co., which oper- ates gas stations throughout the state. By contrast, officials esti- Please see Page B-3. OXY-FUEL OXY-FUEL: Ethanol picked Continued from Page B-1 mated that adequate supplies of MTBE could be made available with 75 days advance notice. Mystrom told the assem- bly that to safeguard against air quality violations during December and January — two months that have regis- tered high carbon monoxide levels in the past — the city may ask motorists to try car pooling. “I think that will be a good experiment to see if people are willing to re- spond to that,.’’ he said. Officially, the assembly voted Tuesday on a nonbina- ing resolution that urges thé. state to enact regulations re=? quiring Anchorage to use~ ' ethanol-based fuel beginning Jan. 1. John Sandor, commission- er of the state Department of Environmental Conserva- tion, said after the vote that he was pleased with the as- sembly’s action. He empha- sized that the state and the federal governments want local governments to decide what clean-air strategies work best for them. Assemblyman Chuck Landers wanted to attach a- condition to-the assembly’s~ resolution saying that An- chorage would use ethanol only if the state would re- quire the Matanuska-Susitna valley to do the same. Landers poigted out that about 7,000 commuters drive from the Mat-Sy valley into Anchorage evey weekday and said that they should be part of a clean-air plan. But after Sandor noted the state can’t force the Mat-Su valley to use etha- nol-based fuel, Landers’ col- leagues on the assembly de- cided to drop the issue. Philip Millam, chief of the U.S. Environmental Protec- tion Agency's air and radia- tion branch in Seattle, said in an interview that in most of the 39 U.S. cities now using oxygenated fuel, mo- torists can find both MTBE and ethanol-based fuel. He said that because taxes on ethanol are lower than on MTBE, the pump _ price would not be as high. Anchorage motorists paid about 15 cents more per gal- lon for MTBE fuel than for nonoxygenated fuel two winters ago. Ethanol is ex- pected to raise the per gallon cost by 3 to 5 cents. Millam acknowledged that ethanol-based fuel has a reputation for problems with cold-engine starts. But he said the fuel has been used for years in northern Lower 48 states without causing significant prob- lems. And, he said, motorists whose cars are using etha- nol-based fuel for the first time may avoid problems by changing their fuel filters. By KAREN AHO Staff Writer By 1998 the Fairbanks North Star Borough expects to make paper fuel pellets from garbage and sell them to local coal-burning plants, with plans to expand the current landfill by the year 2003, at a total cost of $78 million over the next 20 years. Mayor Jim Sampson scheduled a news conference for 3 p.m. today at the landfill to outline the plan. The mayor and his staff chose the fuel pellet and landfill plan over five other solid waste management options detailed in an independent study conducted over the past year. Independent consultants Dames & Moore called the pellet plan the least costly and one of the most manageable of the six alternatives. The paper pelletizer is a proven technology, recycles garbage into an energy source, releases few pol- lutants and takes a relatively short time to start up, according to Dames & Moore. On the down side, the study said the pelletizer option would rely heavily on the existing landfill for remaining waste, still require a new landfill within nine years and could create problems for the Uni- versity of Alaska Fairbanks when it tries to obtain a permit to burn the pellets at its power plant. The projected cost to buy and operate the paper pelletizer is ab- out $900,000 annually. Still, sale of the paper fuel pellets should return about the same amount in annual revenue, as much as $1 million by the year 2004, the study said. A separate building will be con- structed at the landfill to process the paper waste and house the pel- letizer. The borough would also con- struct a household hazardous waste facility at the landfill in 1996 and start a weekly collection program. One full-time position would be created to manage this program, ex- pected to cost $300,000 per year. In all, the << borough hopes to 4 recycle and reuse SAMPSON apout 25 percent of the district’s garbage. Aluminum and scrap metal would be collected at borough Dumpster sites and selected store parking lots for recycling. The non-recyclable garbage would still end up in the landfill, expected to reach capacity in the year 2003 with 80-foot-high garbage bales. At that time the borough will ex- pand the landfill to a neighboring piece of property yet to be ac- quired. At the expanded site, garbage will simply be spread across the ground and flattened. Currently, garbage is compacted by a baler into large blocks and stacked at the landfill. In addition, a 16-acre construc- tion debris landfill would be built nearby in the hopes of diverting garbage from the main landfill, saving space and money. The con- struction landfill would be lined and have monitoring wells. Mayor Sampson plans to ask the assembly this year to appropriate $541,000 from the state’s $1.25 mil- lion capital revenue sharing to buy those properties. 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Wednesday’s cold, stag- nant air created tempera- ture inversions that al- lowed the buildup of carbon monoxide, an odor- less, poisonous gas. Carbon monoxide levels Wednesday reached 11 parts per million, exceed- ' ing the federal standard of ~nine parts per million. ~ The Clean Air Act stipu- lates that cities must not violate standards for two years in a row before Dec. 31, 1995. With Wednesday’s violation, Anchorage’s first in 11 months, the city can’t possibly meet that require- ment. “It appears on the sur- face that we blew it,” said Lawrence Taylor, acting program manager for the city’s air-quality section. However, if Anchorage doesn’t violate standards next year, he said, the Clean Air Act allows the city to ask for an exten- sion. Taylor said he thinks Anchorage’s air quality will improve with its new gasohol program. Starting Jan. 1 and lasting until March 1., Anchorage gas stations will be required to The Clean Air Act stipulates that cities must not violate standards for two years ina row before Dec. 31, 1995. With Wednesday’s violation, Anchorage’s first in 11 months, the city can’t possibly meet that requirement. OE sell gasohol, a mixture of gasoline and ethanol. Taylor said gasohol will reduce carbon monoxide emissions by 22 percent and keep Anchorage in compliance. He said vehi- cles produce 90 percent of the city’s carbon monoxide pollution. Ron King, manager of transportation issues at the state Department of Envi- ronmental Conservation, said Atichérage drivers need to help the city keep in compliance. He wants people to plug in engine heaters at least two hours before starting and drive less during air quality alerts. “We have two strikes,” he said. ‘“‘And the third pitch is on the way.” Th > The Associated Press JUNEAU Gov. Wally Hickel wants the U.S. Forest Service to reconsider plans to eliminate logging in large ar- eas of the.Tongass National Forest where goshawks and wolves are found. But the Forest. Service said cutting will be: deferred in certain sensitive tracts ,until environmental studies cap,.be done. In a letter to Forest Service Chief Jack Ward Thomas, Hickel said the agency’s plans to impose no harvest zones around goshawk nests and es- tablish habitat conservation areas for wolves threaten to H ickel ‘bucks. ‘Governor says Tongass ‘no harvest’ reduce the available tim- ber base in the Tongass. The. gover- nor said timber cutting already is banned on nearly 90 per- cent of the Ton- gass. The Forest Service’s new- Hickel 43 est restrictions would trans-*). form vibrant areas of south-:*:. east Alaska into areas of high unemployment, Hickel said. That would come despite scientific evidence that the northern goshawk qualifies for ¥ “zones based- listing as endangered ori: threatened, he said. a plans a ee sidnalkeitt mncis | on politics © southeast Alaska,” the gover-— nor said in his letter to Thom- The southeast Alaska wolf, ':;8S. also under consideration for, more protection, has an esti- “mated population as much as,; 60 percent higher than five years ago, the governor said. The agency is basing its decisions on environmental - politics rather than science, Hickel said. - “I urge you in the strongest possible terms to rethink the course you have chosen and adopt instead one that con- - forms to the dictates of law and science, and that recog- nizes the legitimate concerns of the people who live in i ‘But Dave Arrasmith, a For-' est Service planning staff offi-; ‘cer, said the agency is simply}: “deferring some sensitive areas}. a from timber harvesting environmental studies’ ¢an “be; made. : More research is needed to > determine whether the gos- _ hawk and wolf need to be, ‘be determined as needed to protected, Arrasmith said. Once that decision is made, ‘ the land either will be made? x3" | available for logging “‘or will maintain species viability,” * Arrasmith said Wednesday. | SATURDAY. December 24, 1994 By ALLEN BAKER The Associated Press Alaska Pulp Corp., own- er of the closed Sitka and Wrangell mills, filed a claim Friday seeking more than $1 billion from the U.S. Forest Service, saying the agency breached agree- ments with the company to supply it with timber. The Forest Service made unilateral changes in its 50-year contract with Alas- ka Pulp starting in 1991, after the Tongass Timber Reform Act was passed by Congress, said John se Hough, a member of the Alaska Pulp Corp. board who works in Seattle. “Then, in 1993, we pro- posed changing the Sitka (pulp) plant into a modern medium density fiberboard plant,” he said. ‘The For- est Service wouldn’t allow us to take the time to convert the plant. Instead, they canceled the long-term contract.” Environmentalists see it differently. “I think APC shut down their pulp mill because they weren't making the ANCHORAGE DAILY NEWS Alaska Pulp seeks kind of profit they wanted to make and they couldn’t compete in the world puip market,” said Eric Jorgen- sen of the Sierra Club Le- gal Defense Fund in Ju- neau. ‘‘As to. their (Wrangell) sawmill, it seems they’ve made the same kind of business deci- sion to shut that down.” The Japanese-owned company made business-re- lated decisions, Jorgensen said, ‘and now it’s going to go to the government ta see if the company can get Paid to shut down.” SECTION B 61 billion from feds The bulk: of the $1.058 billion- claim, filed with the Forest Service office in i Juneau on Friday morning, involves $939 million for the difference between the market price and the con- tract price of the timber that was due over the re- maining 17 years of the contract. A further $100 million represents the lost value of its mills, the com- pany says. APC’s 50-year contract with the govern- ment was signed in. 1957 and promised the sale of 5.25 billion board feet of timber from the Tongass National Forest. The administrative Claim is only the first step in what is likely to be a long process, Hough said. Hough said the company must first seek recourse from the contracting offi- cer, Regional Forester Phil Janik. If the claim is de nied, the decision can be appealed in court, he said. Eventually, Hough ex- pects the issue to be settled by the U.S. Supreme Court five to seven years from now. In:the meantime, he said, the fate of the two shuttered mills remains uncertain. Alaska Pulp closed the Sitka pulp mill in Septem- ber 1993,.and began study- ing the possibility of con- verting the mill to a fiberboard plant. The For- est Service canceled Alaska Pulp’s long-term contract less than a year later, say- ing the closure breached the agreement. The corporation closed the Wrangell sawmill Nov. Please see Page B-2, CLAIM CLAIM: Alaska Pulp cites changes (Gen fon Fe 7] 30, claiming the timber was too slow to the mill running. fough said the company had urged the Forest Ser- vice to offer timber sales last summer, but by the time the sales were offered in , it was too BS the timber and get it to Wrangell in time to avoid closing the mill. Janik, the regional for- ester, said Friday that he had just received the claim and it was too sodn to comment on it. 4 “In a broad context, we have been trying our best to keep timber offerings coming on the table,” Jan- ik said. Alaska Pulp did not bid on the timber sales offered by the Forest Service in September, and environ- mentalists say the compa- ny could have bid on that wood, harvested some of it this‘winter, and kept the mill open. D2 Anchorage Daily News \ Timber dispute continues The Associated Press KETCHIKAN — Ketchi- kan Pulp Co. has threat- ened a temporary shut- down as early as March after mill officials said the Forest Service had failed to release enough timber. The company laid off a swing shift on Annette Is- land because of inadequate timber supply, a mill spokesman said. The debate over ade- quate supply prompted re- gional forester Phil Janik to state that as much as 35 million board feet could be harvested this winter from several parcels. Janik said cutting depended . on weather. The Forest Service also said the mill had as much as 50 million board feet in storage, as well as 12 mil- lion board feet of saw logs and pulp wood available to sell. Janik said that was enough to avoid a shut- down. But Owen Graham, the mill’s timber division man- ager, said storage logs will be used faster than the Forest Service anticipated. The mill also said it could not reach Shelter Cove timber before spring. Janik said the Forest Ser- vice could not make avail- able additional units sought by the mill, since certain field work could not be done until spring. Graham objected, saying Janik could release timber by administrative authori- ty. APC mill shutdown hits Wrangell Alaska Pulp Corp.’s decison to close its Wrangell sawmill in November will idle 225 workers at least until spring. APC says U.S. Forest Service has not followed through on promises of summer timber sales that would have ensured a supply of wood for the mill through the winter. Wrangell will be hard hit by the mill’s temporary closure, which is the town’s largest employer, with an annual payroll of $10 million. The Forest Service had told APC it could buy some of the Tongass timber in competitively bid sales. But the company said the sale was put up too late to help with fall and winter mill operations. Last week the Forest Service announced that winning bidder Silver Bay Logging paid $82.78 per thousand board feet of timber, more than 25 times the minimum bid price set by the service. ct tod Sy ewe ‘2s Wat LcUUenes, Since 1970, the growing spruce bark beetle infestation on the Kenai Peninsula has killed trees on more than 700,000 acres. That's about 35% of the Kenai's forested land. Dead, orange-brown spruce trees are visible to anyone traveling along Peninsula highways. Over half of Kenai homeowners report beetle-killed spruce on their own or adjoining properties. The good news is Kenai Peninsula forests can be managed to stop the spread of the spruce bark beetle. The forests can be protected from total devastation by harvesting infested stands and neighboring areas. By implementing a professional, responsible forest management Program now, the threat of fire can be reduced, jobs can be created and a healthy new forest like the one pictured above can begin. Without a responsible forest salvage program that promotes regeneration, Kenai forests could be forever lost to grasslands. For more information on how you can help stop the spruce bark beetle epidemic, please contact The Alaska Forest Association at 111 Stedman, Suite 200, Ketchikan, Alaska 99901 or callus at (907) 225-6114. We look forward to hearing from you. ocal setchikan Daily Ne Wednesday September 14, 1594 State temporarily interrupts Thorne Bay power plant plan By THY ST. JOUN Darly News Stat Writer City ot Thorne Bay otticialy are less than happy oir biomass plant plans appear taken. tol lowing the Aug. 15 refesse of the Duvi- sion‘ot Energy s tinai rerort on power generation aicrnatives tor the ony The Thorne Bay City Counai met Sept. 6nd aereed to demand a meeting with state otticials to discuss the prorect and the report. atter a previously sched- uled meeting was postponed The state had put ett the meeting, preferring to meet with a committee set up by the Prince of Wales Community Advisory Council On Moniiuy, state otticials a meeting with the Thorne Bay City Council for Sept. 29 at 6.30 p.m. in the council chambers, said Thorne Bay city administrator Ginny Ti The agenda will inciude the biomass and the city’s diesel power plant projects “Wedon't want abig fight with DCRA (Department of Community and Re- gional Affairsi,” she sad And neither does the state want a confrontation, said Division ot Energy Developm: Specialist Peter Crimp Friday. No inal decisions have been made on the project and the state 1s moving slassiy and caretuily, because of the large number ot piayers involved, he said. he final report 1s based on a previ ous draft plus comments from Thorne Bay, Alaska Power and l'vlephone Com- pany, Ketciti.un PuipCo andthe Tlingit and Haida Reyionai Electrical Author- ity. Three alternatives investigated The study compared three Thorne Bay power source alternatives for 1995- 2030: a hydroelectricintertie to the Cray, Klawock power grid for power from Black Bear Lake Hydro Inc.; a wood- waste fired power plant: and a biomass power plant primarily fired by munici- pal solid waste. The study considers each alternauve in light of future electri- cal loads in Thorne Bay the future price of utility diesel fuel. the net cost of wood waste fuel, and the volume and net cost of municipal solid waste burned. Biomass uses wood waste and mu- nicipal solid waste as hog tuel to operate sleamdriven turbines that produce en ergy, said Tierney in a July 13 Daily ews story AU present. if siesel and fossil fuels to supply energy for city residents. Residents outside the imerpal boundaries use individual Ors. \ biomass power generation facility ould have several benetits. inciuding reducing the community 5 dependence on diesel power, disposing wood waste {rom local timber processors, and creat- ing a kiln-drying facility to support a wood manutacturing industry, said Tierney. Crimp summarized the tinal report's conclusions 1n a memorandunar “A waste wood-tired tacility does not appear currently viable given the de mand . or heat and electrical power in ‘Thorne Bay,” he said. The economics of a biomass plant would be more favor: able with a greater power demand or if the cest of sortyard waste disposal stunificantly increased, according to the memorandum, Regional idea backed The division supports a regional mu- nicipal solid waste facility im Thorne Bay be! wants more study. [t asks whether the facility might be better located in Craig or Klasvock. Such a project should be planned and devel oped cooperatively, said Crimp “A repional waste to encrsy tacility on Prince of Wales Island wil not be viable without island community sup- port,” he said in the memorandum. The facihiy would only be teasible if it depended on the wood and municipal solid waste of the entire island, he said in the telephone interview. A tipping fee (charge for individuals icaving waste tor disposal) zould further contribute to the financial support of the facility “As the state goes, we want lo ensure that the Jucal initiative is followed.” Crimp saul. That means that the state wants the island to decide as a whole whether to waste-to-cnergy facility and agree to its location, or to reject a regional aproach The cuaclasiens also support con: struction fin intertie between Black Bear Lak hydroelectric facility and thorne bay, and an inter tic extension to saan. c stingent wn that city > devel- opment plans and econcznic feasibility Thedivision recommends -w in-depth astbility analysis of a regional nunsci solid waste and. or, Sood tired en facility feet dim either OL " Bay or Klawock. The state will provide partial funding and technical support tor the study The effort would be put under the guidance of the tsland’s com munity advisory couneil with input trom the Department of Environmental Con rvation, AP&T, T HREA and Sealaska Corporation The Prince of Wales Community Advisory Council received the report at its Aug. 16 meeting and appointed a four person committee to respond to it Nerney, Slawock City Administrator Marvin Yeder, Whale Pass Homeowners Association Vice President ill Baumgartner and Kasaan Mayor C! aries: “Star ' Escottor butthe rego cal approach and ity located in Klawock does: faci: to oele *Thorne Bay, which had planned the Jjomass preyect as part of its economic development plan. “It appears to Thorne Bay that DCR. is looking at it as an energy project for the island, not an economic develop: ment project for Thorne Bay,’ Tierney said. ‘This is not exclusively an energy proiect.* Che city has also received infofina- tion regarding patented processes that it doesn't want to share, said Tierney Council members questioned the technical qualifications of Crimp and the report's auther, Steve Colt of the Institute of Social and Economic Re- search at the University of Alaska at Anchorage. City has consultant The city is consulting Jim Toland, a biomass expert trom Concord, Culif., who assisted the city with biomass plans in 1992, said Tierney ‘The city received notice in the spring of a $50,000 grant for a biomass feasibil- ity study through the department. The grant was to be awarded on the contin- gency that the now final report found the project to be cost-effective feasibility study for a biomass plant would cost approximately $ 100,000, said Crimp. [t would include a conceptual level engincering design. full financial and economic analysis, detailed siting and analysis of permitting for air emis- sions, solid waste and land use Resause of compe!ng uses tor state mont fat stale ds only those proreets with the most promise sad We're trying to make sure the mon" is used rivht.* he said. Thorne Bay City Counal memeer Jim Wilson as supported the biomass Plan trom ats start What we envisioned sa tired biomass piant that would wolize residue at tne sortyard and use wa trom clear-cute ind residue tre shingle and saw muils.* he said More than cnough fuel The avatiable waste appeared to bv: more than cnough to fire such a plas: and to be capatie of supplying Thor: Bay with power and some builtin pow. for a new industry. said Wilson. ‘The oppe- tunity is here to fot + tison sad. . ie said he has no way to dispute state's figures wich led to us conc stons, but wants to have Toland reasses the plan Hopetuliy venatever is best fer th community and the island. prevatis Wilson said Vhorne Bay: of 100 pere he said “If we re zomny to grow and prosper eve need to Jo something abeut the power situation Comp ana Rural Development Ad ministration Program Manager and Grant Admimsirator Gerry MeDonagin wiilattend tl + 29meeung, Poland representatives trom Sealaska and Ketchikan Pump Co., and the ensneer for the city’s diesel power plant proiect also will attend. sad Tierney. DCRA Southeast Kexional Office Super-nsor Peter Freer stil facilitate the public session woud ‘stoworkits way on ance op diesel power Yotre vy (al Kerciban (oaths Oe Local Tuesday, July 19 fet Thorne Bay sees benefits in wood waste energy Draft study looks at varicly of energy alternatives for POW commiunil By CALEY SP. JOLIN he awarded on the contingency thata toys and stove pellets tophice diesel fired parser Seat coat i Daily News Star Water pre study finds the propect to be cost * Complement the proposed energy abo strengthen the com An economic comparison of power — eflective grid system planned for Pace of Wales Southeast Maskas ter generation altematives for Thorne Ba The biomsre. proe Island dusty said: Madden int does not fully cover the seape of one of and municipal solic or nesses have already ex Phe oreahy sof the by ot the alternatives biomass power ten oper veliiven turbines preged.an interest in development in oulteave Thorne Bay anethoa : eration, said Thorne Bay Cily Admins: duce energy said Herney ME pre the ‘Thome Bay area, if the biomass om enerey production osbile stl ain trator Ginny Tierney the city uses diesel and fossil tue project » place, sand Tierney dhevelforemergency ind supplement tl ‘th page study was conducted by — supply energy for city residents alone: Thecomparisonoutlmed the benetits purposes Th city is also ine the { Social and Economic — Residents outside the municipal bound) ofa biomass project in relation to pro purchase kydisoelectric poser trem! Research of the University of Alask anes use individual venerttors ling, a ne y source for Phorme Bhi ks Bear Lake plant ness sander cr Anchorage in collaboration with M The local and regional benefits ef the Bay. butt Guled to consider other eco Hchon, but notatibe punt dinars A. Foster & Associates for the Depart: biomass py ion projectssere nomic benefits from the sale of heat, percent avonded aiessl costs ter 6 ch mental Community and Regional AL iy tuded inabict sheet provided by the Taln-dryine capabils the burring ot) year contract oud Tiemey fairs Division of Ene City of Thorne Bay rounicapal solids rnd bpping tees. Hhov didn tdetine vende tb The study's draft was dated ane ® Reduce the conmaunies depen sald Tiemey ina deter she drafted on costs he sand compared: Uh altlermatives for dence on diesel power peneration ehalbolt ify te Peter Gre ys Cont Phecity would onaden bd vhon thy droelectriemter © Allow expansion of poser produc munity Decelopment Speetil cat he purchase ace yKlawock power grid to tien to portions ef the community new Division of f He Dieaass te sstbalit " receive power fram Black Be Ko producing power on an individual gen Hydro Ine (ayholly owned subsidiary erator bi Power plant repli Her letter abso hig ali ment tientify const eretion Costs v pled increased caicee ted sites forthe plant sated ban te of Alaska Power & Telephone Com vethe problemrot dngpecany wood smut. sand Herne: pany), ator and diesel power and waste of local timber processing opera: dential and commercial lots inthe Goos Matching funds bion ood waste tors(discontinicopen burningand seed Creek and South Thorne Bay subdivi wofthe sudy bss b ‘ Looking ahead waste chumps) sions. Those sales appeared to be under UO SPP O00 By oer: Researchers considered future lee + Use baled waste as additional how stated in the comparison according to aid Tiere trical loads, the price of diesel fuel fuel from ‘Thorne Bay's regional baker Tierney’: letter Vhs it prepared tena: costof wood waste fuel and capital costs and recycling solid waste disposal feat The study did concur with the city nant te pros bea tetabe Wee tae for study years 1995 2030. ity that Thorne Bay's diescl power plant "he study The study's conchrsions surge * Estend the life of the dijpori facil in needot replacement That plant vas The economic conipanre es thydroclectric intertic might better ny ity by using: solid waste os hoe biel ter builtin the 160s, said Fiemey Foamy reviewed by MPEP Pr current demand levels, while a woods the facility The city received a obacbret Mackie 2) Cong. Sen fret hares t burning plant would be more feasibh it for the bi © Extend the life of the landfill by letterof Sup} eH Re aerial hh massproject,— fediik the Hin demand increases to levels that hydro: reducing waste to cb that could be sent to DKA Comimissiener tf veal Muthonts : n electric generation could not meet ily buried Bhat hford from Ketchikan Pulp Co Theme Bay neat The City of Thorne Bay received aploy SiC full times ereployees tor Adiministittive Assistant RA Madden otticuit: notice of 2 $50,000 grant fora feasibility tion and maintenane« We feel that a residue fired power Nofima diet ot the eorie areca study for a biomass plant in the spring teakiln drying timber imlus: plant evould not only reduce the envi espested to be finalized on hub, oe through DCRA's Rural Development try for development of a manufacturing ronmental impact of sveod waste dis Tene Fomory Administratics Mobs ne Assistant Grant Program. The grantwill industry for projects such as furniture, — posal and produce ba sload power and — Htor he Disssion at Enerry