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Wood-Peat Municipal Solid Waste Agricultural Byproducts Alaska Bioenergy Program Quarterly Report Oct-Dec 1992
wood - peat municipal solid waste agricultural byproducts Alaska Bioenergy Program Quarterly Report October - December 1992 Alaska Energy Authority TABLE OF CONTENTS I. TASK FORCE ACTIVITIES o.oo... eee ccescnecseescnecseeesestaeeseneeeeees 2 ll INFORMATION AND TECHNICAL ASSISTANCE .......00.0. ee 2 Il INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT |... eee cece ce ceeeesceseeseeeeeeeeseeseseeseseeeseseeseeeeeeese 3 IV. INDUSTRY ACTIVITIES IN ALASKA. 0.00000... ce cee eeeeteeeees 9 A. Tongass National Forest.............. B. State and Private Forest Lands AIDEA Loan to Circle DE Corporation Chugach Alaska Sawmill to Re-open Haines State Forest Timber Sale C. Glass Recycling Planned for Matanuska Valley...............:eeeeeeee 10 APPENDICES Appendix A Quarterly Project Status Reports State of Alaska Bioenergy Technical Assistance Program Small Commercial Wood-Fired Boiler Demonstration Fairbanks Waste-to-Energy Sitka Co-Generation South Tongass Wood-Waste Appendix B Alaska Bioenergy News No. 32 Appendix C Project Development Correspondence and Information * Montana Letter of Support from AEA to Bonneville Power Administration « Alaska Bioenergy Program Issue Paper for December 16 DOE Five-Year Strategy Plan Meeting in Seattle, Washington Appendix D Current Industry-Related News Articles TASK FORCE ACTIVITIES Alaska Energy Authority participated in the November 23, 1992, Regional Task Force Meeting at Bonneville Power Administration in Portland. The purpose of the meeting was to discuss DOE's proposed realignment of states, to review the BPA FY 1993 Annual Operating Plan for DOE and to discuss the National and BPA program evaluations. On November 27, the Energy Authority's Executive Director sent a letter to BPA supporting the State of Montana's retention in the Pacific Northwest and Alaska Region. The letter was written in response to DOE's October 19 call for further comments on their Recommended Realignment of the Regional Biomass Energy Program. A copy of the support letter is in Appendix C. On December 8, we sent an update on Alaska Biomass Data to the National Wood Energy Association for their upcoming directory. The directory includes state-specific information on commercial and residential wood quantities, agricultural waste, municipal solid waste, biogas and alcohol fuels and electricity from biomass wastes available annually for energy recovery. We were unable to attend the December 11 industry meeting in Seattle. The purpose of this meeting was to provide comments to DOE for their Biomass to Electricity Five-Year Strategy Plan. We sent a two page document to Pat Fox for consideration at the meeting, and a copy is in Appendix C. The paper discusses technical, financing and regulatory issues that affect the development of biomass/electricity projects in Alaska. In December we completed interviews for the Alaska Bioenergy Program Coordinator and hired Peter Crimp, a forester who lives here in Anchorage. Crimp will officially begin work on January 18, although he worked on the South Tongass RFP for a few days at the end of December. He has also initiated direct contact with parties in Tok and Anchorage who are working on the Alaska Bioenergy Program's proposal to build an automated chip-fed system for heating the new school planned in Tok. INFORMATION AND TECHNICAL ASSISTANCE This quarter we distributed over 500 copies of the Bioenergy News to private companies involved in the forest products and solid waste industries; Native corporations; universities; federal, state and local Page 2 agencies; the Alaska state legislature and media throughout Alaska. A copy of the newsletter can be found in Appendix B. This issue contained the following: e An announcement on the Energy Authority's upcoming Wood Resource Assessment Request for Proposals e A summary of highlights of the newly-signed Energy Policy Act, including descriptions of tax credits and incentives and programs that support use of alternative fuels and development of alternative energy technologies. e A description of presentation topics from the October 19-22 National Biofuels Conference in Newton, Massachusetts e Announcements about the availability of the "1992 Washington State Directory of Biomass Energy Facilities" and the "Handbook for Small- Scale Densified Biomass Fuel Pellets Manufacturing for Local Markets." INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT Many of this quarter's industry contacts have resulted from inquiries about the planned South Tongass Wood Waste RFP and the articles in last month's Bioenergy News. There have been numerous requests for contact information on presentations from the National Bioenergy Conference. In December, Dick Smith, Public Works Director for the City of Sitka, contacted us again regarding a plan to look at the feasibility of a small wood-fired power plant to meet the City's projected power needs over the next 10 years. We advised Smith to get in touch with the Sitka pulp mill and explore their interest in building and operating such a plant. Smith will also talk to others on the City's staff to get a preliminary reaction to the idea. We may dust off an earlier project administered by the Alaska Bioenergy Program io assist in re-evaluating resource availability for this project. This study was completed in 1985 and it looked at estimated wood resource availability from demolition and land-clearing wastes in the communities of Juneau and Sitka through the year 2000. In November, we were contacted by Peter Jones from the Northwest Territories Department of Public Works in Ft. Smith, Canada. Jones was looking for information on gasifiers and provided a run down on their office's plans to subsidize a pellet plant in the South MacKenzie Delta to Page 3 stimulate employment in the Northwest Territories. Jones also mentioned that their office is involved in a project that will endurance test a 1 megawatt methane-fired gasification system in Yellow Knife. In November and December we received two separate technical assistance requests from Whitestone Farms, a religious community in the Tok area. Both requests dealt with fuel wood processing and combustion for both heating and power. The community also had questions about the potential for recovering energy from burning municipal solid waste. In November, we spoke with the U.S. Forest Service in Ketchikan regarding the draft Environmental Impact Statement for a long-term timber sale in the Tongass National Forest for Ketchikan Pulp Company. The Forest Service agreed to keep us posted on the outcome of the comment period. The Juneau office of the Alaska Department of Environmental Conservation is planning to issue draft regulations in January. In part, the draft regulations will address DEC's plan to require new mills or other industries to include a description of waste disposal alternatives and their costs in permit application information. Burning versus landfill will be specifically addressed in the draft regulations. We will comment on the regulations when they are issued. Alaska Bioenergy Program List of Contacts October-December 1992 DATE CONTACT DESCRIPTION October October 5 Bernie Cari Discussed his purchase of a 2775 kVA Resource Recovery Center Wellons waste-to-energy plant Fairbanks, AK Boyd Earling Co-firing in Lake states; air emissions Madison, WI impacts October 6 Roskan Discussed paper pellets A1 Company Ketchikan, AK Page 4 October 9 October 16-23 October 21 October 26 October 29 November November 5 November 6 Marvin Wahigren Bow, Washington Kurt Kroll Boise, Idaho The Inand Group Maine Dick Smith City of Sitka Sitka, AK Spike Jorgenson, Superintendent Alaska Gateway SD Tok, AK Hunter Horvath Windemere Provincial Spokane, WA Mike Buchert Bioenergy Program Coord. Louisiana Gwen Oregon Dept. of Energy Dale LeTourneau Arctic Slope Regional Corp. Paul Macintosh U.S. Forest Service Ketchikan, AK John Hasz White Stone Farms Tok, AK Don Shay Eagle River, AK Page 5 Questions about the biomass coordinator position Interested in South Tongass resource assessment RFP Requested copies of Dave Junge co-firing and emissions reports Discussion of slides for Sitka WTE facility and co-presentation at National Bioenergy Conference Discussed plans for wood heating system; he advised us to work with engineering project manager directly. Personal leave and attended October 19-22 National Bioenergy Conference Interested in South Tongass resource assessment RFP RE: Louisiana's re-alignment with WAPA Credit check on Alaska WTE project developer loan request Discussion about application of International Power Systems solid fuel combustors in Alaska Ketchikan Pulp Company long-term timber sale draft ElS, discussion of Tongass Forest Plan Revision, questions about upcoming South Tongass RFP Request for technical assistance and information on pellet manufacturing equipment, small commercial wood-burning combustors. Sent equipment literature. Request for information on pellet manufacturing equipment; discussion about Circle D logging on Kenai Peninsula and opportunities for using operation as a source of feedstock for pellet mill November 9 November 10 November 16 November 30 December December 2-6 December 7 December 8 December 9 Steve Jolley Wheelbrator Shasta Energy Co., Inc. Anderson, CA Peter Jones Energy Management, Dept of Public Works, NWT Ft. Smith, Canada Pat Fox BPA Portland, Ore. Dick Smith City of Sitka Sitka, AK Rick Rogers University of Alaska Land Trust Anchorage, AK Rick Rogers University of Alaska Land Trust Anchorage, AK Pat Fox BPA Portland, OR Mike Devins FPE Roen Engineering Anchorage, AK Scott Willis Alaska Power Administration Juneau, AK Pat Fox BPA Portland, OR Jim Demetrops DOE Washington, D.C. Page 6 Discussion about Circle DE operation and export of pulp chips Their office's plans to subsidize a pellet plant in South MacKenzie Delta to stimulate employment in the NWT's. Discussion their plans to test a 1 MW methane-fired gasification system in Yellow Knife. Availability of pellet equipment in Everett, status of hiring for new bioenergy position. Discussion of problems related to City funding its $250,000 share of Steam Turbine Project; potential delay. Request for copy of Tanana Valley Wood- Chip Resource Study Discussion of funding for South Tongass Resource Assessment Request for University of Idaho report on small-scale densified pellet manufacturing operations; discussion about DOE transition team and their goals for the national program. Arrangement to get autocad files on Sutton Correctional Facility wood-fired heating system for Energy Authority Annual Report On personal leave RE: EPA Anchorage request for information on wood gasification projects in Alaska Discussion of Mike Ried's DOE Five Year Strategy Plan meetings in Seattle, Portland and Spokane. Discussion about Clinton transition team and what the makeup of the team means for the national bioenergy program December 10 December 11 December 14 December 15 December 16 December 17 December 18 December 21 Gerald Fleischman Idaho DWR Rebecca Venables White Stone Farms Tok, AK Bob Valdetta Assoc. Consultant Investment Enterprise Seward, AK Jack Kootz Dept of Environ. Conservation Fairbanks, AK Dave Van Hersett Resource Dev. Assoc. Spokane, WA Cal Kerr Anchorage, AK Charlie Nash Ketchikan, AK Frank Fields, Pwr Hse Operator, AK Pulp Corporation Wrangell, AK Dan Hill Palmer, AK Peter Crimp AK DNR Forestry Anchorage, AK Glenn Miller AK Dept of Environmental Conservation Juneau, AK Dick Smith City of Sitka Sitka, AK Page 7 Request to be on mailing list of South Tongass RFP Request for information on steam turbines and direct fired combustion equipment Discussion about re-opening of Chugach Forest Products mill in Seward, request to be on RFP mailing list for South Tongass project Request for information on National Biofuels Conference Request to be on RFP mailing list for South Tongass Resource Assessment Request for information on wood-fired boilers in Klawock discussion about transportation economics of moving chips by barge; discussion of Circle DE operation on Kenai Peninsula; request to be put on RFP mailing list for South Tongass Resource Assessment Volunteered to help with any wood-fired boiler information we need for South Tongass Resource Assessment Request for address listings for biofuels conference reports Discussion of Alaska Gateway wood-fired boiler proposal with Tok Forester Dick Melchow Discussion of South Tongass RFP and DEC's plans to issue draft regulations requiring permit applicants to evaluate alternative costs/ton of landfill disposal vs burning Preliminary discussions with Sitka utility employees about potential for small wood- fired generator to meet Sitka's 10-year power needs Terrence Booth Metlakatla Indian Reservation Metlakatla, AK George Sampson Northern Institute of Forestry Fairbanks, AK December 22 Peter Crimp AK DNR Forestry Anchorage, AK December 23-28 December 28 Peter Griessman Coop. Extension Service Washington State University Colville, WA. Mark Sullivan Alexandria Power Associates Bristol, NH Jim Van Oss Homer, AK Dan Hill Palmer, AK Glenn Miller Juneau Dept of Environmental Conservation Jeff Monty Forestry Canada Chalk River, Ontario Request to be put on mailing list for South Tongass RFP Resource Assessment same as above and discussion about Forestry's $45,000 federally-funded bark disposal research project at Brown Mountain outside Ketchikan Discussion of AK Gateway School District's plan to work with Alaska Power and Telephone (APT) on diesel-fired generator waste heat study as alternative to wood fired heating system in Tok. On personal leave Request for copy of August 92 Bioenergy News. Sent copy of Alaska Biomass Facilities Directory Sent information on ordering articles from Biofuels Conference Same as above Same as above Same as above IV. INDUSTRY ACTIVITIES IN ALASKA A. Tongass National Forest The draft timber plan for the Tongass continues to be a hotly-debated issue. The draft calls for cutting more than 20,000 acres of old-growth spruce and hemlock over the next 10 years to supply Ketchikan Pulp Company. Alaska Department of Fish and Game has detailed a number of concerns about the draft Page 8 in a recent Memorandum to the Governor. Their basic recommendation was to reduce the volume of logging in order to leave patches of -old-growth timber for wildlife shelter. Another concern they expressed was that the Plan included some old-growth tracts that were previously established as wild life set aside by state and federal officials. The economic vacuum that would result from high volume logging followed by the 2004 ending of the Ketchikan Pulp Company contract was a third concern. B. State and Private Forest Lands Alaska Industrial Development and Export Authority (AIDEA), a corporation of the State of Alaska, recently approved a $2 million loan package to Circle DE Pacific Corporation, a joint venture Alaskan corporation that includes principals of Kenai Pacific Lumber Company of Anchorage and Circle DE Lumber Company of Klamath Falls, Oregon. The new company will be harvesting beetle-killed white spruce on the Kenai Peninsula south of Anchorage, which will be chipped and used to manufacture high-grade paper products. The joint venture has secured a timber contract with Cook Inlet Region, Inc. (CIRI) for approximately 120 million board feet with a right of first refusal on an additional 120 million board feet. The estimated term of the CIRI contract is six to seven years. Circle DE Pacific Corporation and Kenai Pacific Lumber Company have also secured a long-term lease with the City of Homer for use of a chip storage area and placement of a loading system on the new deep water dock. Mitsui and Company are under contract to purchase chips from the joint venture. In the same area of the state, there are new plans for re-opening the Chugach Alaska sawmill in Seward. This state-of-the-art mill ceased production this year due to financial difficulties. With new principals and a fresh infusion of cash, it is rumored that the mill is planning a February 1993 opening. Interviews to fill positions at the mill have taken place already. In early January, the Alaska Department of Natural Resources will award a timber sale contract in the Haines State Forest. The sale is the first in two years and may be the largest in the last decade. Previous timber sale activity has been tied up by the 1990 dispute on state Mental Health Trust Lands. Higher quality timber may be exported to Japan, with lower quality trees destined for the pulp mills. Cc. Glass Recycling Planned for Matanuska Valley Arctic Fibre, a partner of California-based Glass Incorporated International, is considering building a fiberglass manufacturing plant in the Matanuska-Susitna Valley north of Anchorage. If the project goes through as planned, a new plant Page 9 will be in operation by November of 1993. Exports of up to 40% of product will go to Seattle, with remaining product marketed in Alaska. The proposed project can take some pressure of the local area landfill. The company could use up to 80% of recycled glass in the manufacturing process. Page 10 APPENDIX A Quarterly Project Summary Reports State of Alaska Bioenergy Technical Assistance Program Small Commercial Wood-Fired Boiler Demonstration 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 Description 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 Number DE-FG79-84-BP14984, A014 Grantee Alaska Energy Authority, P.O. Box 190869, Anchorage, AK 99519-0869 Project Manager Peter Crimp, 907/561-7877 Department of Commerce and Economic Development, Alaska Energy Authority, Anchorage, AK 99519-0869 Regional Bioenergy Program Funds Current year: $75,000 plus $90,000 for special projects described separately Cumulative through FY 92 : $811,297 Cost Sharing Alaska Energy Authority: Cumulative through Federal FY 92, $196,458 Expanded Description 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 Objectives 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. * 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. 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. . 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. 7 Field Projects - As part of this year’s project activities, the Alaska program will complete the installation of a wood waste fired boiler at the Page 13 Alaska Correctional Industries greenhouse complex in Sutton. Performance will be monitored and project results will be published in a final report after a mutually agreed-upon performance period. Status: See project report. The Alaska program will prepare an analysis on wood heating options for facilities in the Alaska Gateway School District in the Eastem Interior of Alaska. Status: Report completed, AEA assisting school district in evaluating financing options. The program will evaluate export opportunities for densified wood fuels produced from wood residues in Alaska. Status: Ongoing. = An update of the programs permit guidebook will be prepared to assist project developers with regulatory issues. Status: Deferred based on recommendation of program management consultant. Major Milestones All work is on-going with accomplishments reported in quarterly reports. Results A full reporting of the status and results of this program are detailed in the text of the quarterly report. Prepared: Pat Woodell, Development Specialist Amended: December 30, 1992 Page 14 Project Summary Report Title © Small Commercial Wood-Fired Boiler Demonstration Brief description 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 Number DE-FG79-84-BP14984, A011 Grantee Alaska Energy Authority PO Box 190869 Anchorage, AK 99519-0869 Project Manager Peter Crimp, 907/561-7877 Department of Commerce and Economic Development, Alaska Energy Authority, Anchorage, AK 99519-0869 Regional Bioenergy Program Funds $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. Page 15 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 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 Objectives 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 begin 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 will include 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 will be identification of specific sites for small-commercial wood- fired boiler applications. This will be 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 will be submitted to the Regional Task Force for approval and recommendation. Upon approval, actual design work and equipment selection will be initiated and bids for materials and installation will be solicited. While ordering and design are underway, program staff will decide on monitoring and performance evaluation criteria for the systems. Page 16 Installation will be 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 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 will be recorded to obtain information useful for other potential project developers. The monitoring period will extend for one (1) 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 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. Major Milestones 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 Ongoing Final report June 1993 Prepared: Pat Woodell, Development Specialist Amended: December 30, 1992 Page 17 Project Summary Report Title Fairbanks Waste-to-Energy Brief description 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 Number AEA contract 2800559 Grantee Alaska Energy Authority Funds passed through to: = Fairbanks North-Star Borough PO Box 190869 410 Cushman Street Anchorage, AK 99519-0869 Fairbanks, AK 99701 Project Manager Peter Crimp, 907/561-7877 Department of Commerce and Economic Development, Alaska Energy Authority, Anchorage, AK 99519-0869 Regional Bioenergy Program Funds $25,000 Cost Sharing Match Fairbanks North-Star Borough, Minimum per AEA contract $150,000 Total Match $150,000 Note: Total match likely to be higher. This is the minimum required in agreement between AEA and FNSB. Expanded Description 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 18 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 Objectives 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 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 Page 19 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 A description of the public involvement in the planning and evaluation process from early stages on 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 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 A discussion of environmental constraints, permitting requirements and public acceptance issues A description of how Borough recycling programs would affect waste-to-energy economics and availability of fuel supply An economic analysis of waste-to-energy options including tipping fees required and anticipated power and/or steam sales A cost and benefit comparison with other solid waste disposal alternatives such as land filling Results 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. A copy of the schedule is attached for reference. Major Milestone: Milestone Status AEA and FNSB enter into grant agreement Completed 8/10/92 Professional Services Contract signed November 1992 Solid waste plan under preparation January 1993 - April 1993 Initial formal consultant review date to be selected Mid project formal consultant review date to be selected Draft report submitted April 1993 AEA and peer review of draft April 1993 Final report submitted May 1993 Final report June 1993 Page 20 Prepared: Pat Woodell, Development Specialist Amended: December 30, 1992 Page 21 Project Summary Report Title Sitka Co-Generation Brief description This is a demonstration of a small back-pressure steam-turbine installation at the waste-to- energy facility in Sitka, Alaska. Identification Number AEA contract 2800559 Grantee Alaska Energy Authority Funds passed through to: = City-Borough of Sitka PO Box 190869 304 Lake Street Anchorage, AK 99519-0869 Sitka, AK 99835 Project Managers Peter Crimp, 907/561-7877 Dick Smith, 907/747-3294 Department of Commerce and Economic City-Borough of Sitka Development, Alaska Energy Authority, Anchorage, AK 99519-0869 Regional Bioenergy Program Funds $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. Expanded Description 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 Page 22 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, 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. Specific recommendations for facility improvements are contained in the attached draft report entitled Incinerator Operating Measures Study, prepared for the City-Borough by RW 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 Objectives 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 23 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 is in the planning phase of the project. Since the last quarterly report, Dick Smith, Director of the City's Public Works Department and project manager for this project, has reported that plans are temporarily on hold due to City funding problems. Problems started when $175,000 in planned state funds for City of Sitka was cut from the Governor's FY93 budget. A key element of the City's budget problem as a result of this action, is the cost of the new electrostatic precipitator, which will be known next month. If sufficient City funding is available when the cost of the precipitator is known, the project will be initiated now. Otherwise the generator will not come on line until December 1993, when sufficient funding will be available for the project. Major Milestones Milestone Status AEA and City-Borough of Sitka enter into Completed 8/10/92 grant agreement Project Plan Developed by Sitka October 1 - 31 Procurement and tum key contract to be determined in project plan Equipment procurement and shipping to be determined in project plan Installation to be determined in project plan Startup and shakedown to be determined in project plan Final inspection by AEA to be determined in project plan Begin performance monitoring to be determined in project plan End performance monitoring 12 months from date of monitoring start Final report open Prepared: Pat Woodell, Development Specialist Amended: December 30, 1992 Page 24 Project Summary Report Title © South Tongass Wood-Waste Brief description 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 Number DE-FG79-84-BP14984, A014 Grantee Alaska Energy Authority PO Box 190869 Anchorage, AK 99519-0869 Project Manager Peter Crimp, 907/561-7877 Department of Commerce and Economic Development, Alaska Energy Authority, Anchorage, AK 99519-0869 Regional Bioenergy Program Funds $40,000 Cost Sharin Match AEA cash, contractual services $33,839 AEA personal services, electrical and mechanical engineers $2,370 AEA overhead $3,791 Total Match $40,000 Expanded Description 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 Kaasan 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 hydroeiectric power, although load Page 25 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. 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 Objectives 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 Southem 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 Page 26 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 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 AEA has recently secured matching funds for this project and is in the process of developing an RFP for professional services to implement the study. The RFP for the fuel volume and transportation assessment will be issued in January 1993. Page 27 Feitberks North Ste Borough 1 December January | ‘10_*| Name : oe Scheduled $t Scheduled Fieish 1422 [1ia9 J 126 [1213 [12720] 1227] 19 [| ino [sar Took 1 Project Manegement 11/23/92 6:00pm 64193 6:00pm ° . 2 Contrect Signed by FNSB INTP) 11/23/92 5:00pm 11723792 6:00pm i i 2 Submit Project Management Plan 124792 6:00pm 124/92 §:00pm o; 4 Subemit Project Schedule 124992 6:00pm 12/4/92 §:00pm oo: 5 Kickotf Meeting 12/792 1:00pm 127792 4:00pm . 6 Monthly Progress Report #1 12/18/92 5:00pm 1282 $:00pm) Od O% ‘ o 7 Monthly Progress Report #2 1/15/93 5:00pm 1/15/93 5:00pm Od = ‘ o = Monthly Progress Report #3 2112793 §:00pm 211293 5:00pm Od 0% ‘ [_ ° Monthly Progress Report #4 3/1293 5:00pm 3112193 5:00pm | Od “= Ow ' 10 Monthy 3 Repon #5 4/9193 5:00pm 479793 S:00pm|_ Oa on ' NW Monthly Progress Report #6 SI193 5:00pm S773 $:00pm Ou rr : : 12 Monthly Progress Repo #7 6/4793 5:00pm 6/4/93 5:00pm 0d Om i ; 13° [Took 2 Pubbe Information ond Involvement lint) 12/11/92 6:00pm 1/1893 6:00pm 25a| ox ay ' 4 | Submit Project Oesenpton 12/11/92 6:00pm vasiiAa2 $20em| Ou Os a 1S | Advertion mestings 12/18/92 8:00em 1/5193 §:00pm om 16 Fairbanks Public Meeung 1111/99 7:00pm 1/1183 7:00pm o% 7 Other Puble Mesungs in Borough (4) 1/12/93 7:00pm 1115/93 5:00pm 34 Ox 18 [Task 3 Background Dats Onthering 11/30/92 3:30pm 1/16/93 6:00p™ | 354 ox 19 ‘Obtain eveilable information trom FNSB 11092 3:30pm 12/1182 $:00pm | 104 O% 20 Collect end Compas Date 11/30/92 3:30pm 1/1593 5:00pm | 386 ON 2 Submit TM FT Netra! Environment 1/8793 8:00pm TAR 5:00pm “Od ‘ [2 Submt TM #2 Human Environment 1/8793 6.00pm TAA) 5:00pm | Od ‘ 23 Submit TM #3 Existing Sokd Weste Systeme TNSAD $:00pm 1803 50e-| 0a ox] ' 2 Submit TM #4 Existing Recycling Systems 11593 5:00pm 1/1583 $:00pm Od O% ‘ 25 Submit TM #5 Existing Regulatory Requirements 1/18/93 5:00pm 1/1893 5:00pm | Ou o% : Teak 4 Sohd Weate Management Options THI33 6:000m 1729793 6:00pm 204 ox : | 27 Wdentity end Describe Options 1/4793 8:00em 1729783 6:00pm, 203] ox ' ok T Project: Solid Weete Menagemein P| Critica Date: 12/8792 Updated December 8. 1992 Rolled Up © Feirbenks North Star Borough Soe le December Janu, 10 * |Neme Scheduled Start Schedwted Finish Duration w122 this Liz6 Tr2n3 [i220 [1227] 13 [mo | int 28 Submit TM #8 Sold Waste Management Options 1129793 5:00pm 112993 $:00pm | . 7 29 |Tesk 6 Anernotves Evaluation 1718/93 6:00em | : | Sel 30 Evaluate Alternatives es Vht783 8 000m | : i (Zzz3 31 | Subewt TM 47 Develop Alternativ 35:00pm i ‘ 32 Submit TM wronety Siting end Costing = 2/9193 5.00pm i : = naerle = | ‘ 33 Submit TM #9 Develop Eveluetion Critene 2/8793 $:00pm 278193 $:00pm j ‘ a4 Submit TM #10 Evaluation of Alternatives | 2/26/93 $:00pm 2/26/33 $:00pm ‘ “3s Recommendations Development | 2/22/93 6:00em 3/17/93 6:00pm ’ 36 Develop Recommendations 2/2293 8:00am 3117733 $:00pm : 37 Subrat TM #11 Develop ond Present Oratt Recommendetions 3/5193 $:00pm 3/5133 $:00pm ‘ 38 Submit TM#12 Develop end Present Final Recommendations 3/17/93 §:00pm INI $:00pm = 39 | Teak 7 implementauon Pion 3/18/93 8.00em 326793 6:00pm : 40 Develop plan tor implementauon 2/15/93 6:00em 3126/33 $:00pm ay Submit TM #13 Implementation Plan 3126793 $:00pm 2126793 $00pm i 42> | Teak 8 Pion Documentation 3/23/33 8:00em SIZE33 6:00pm i a3 Prepere Ore Plan 3/29/93 8:000m 4116793 $:00pm j aT Borough review and epproval of Drett Plan 4119/33 8:00em 517233 $00pm ' | 4s Pubke Meeting for Drett Plan (Fairbenks) . 4128783 7:00pm 4128/33 7:00pm ‘ | a6 Prepare Final Plan S/10/93 8:00em $121/93 $:00pm O% 7 a” Borough review end epprov = $/24793 8000 S128 33 S:00pm Om i 48 | Teek 9 Plan Adoption Procese 6/17/93 7:00pm 6124/93 7:00pm ox i 49 Plan brought belore Assembly Work Session 6/17/93 7:00pm 6/17/93 7:00pm O% ' | $0 Plan edopted by Assembly 6/24/93 7:00pm 6/24/33 7:00pm ox} iS t: as ManagemeinP | Critica LLL Nocnicd TS Miestone @ Rolled Up O —— 22 Major Milestones Milestone Secure matching funding Draft RFP and review, Phase | Wood/Transportation Assessment Advertise for Professional Services Proposal deadline Select Consultant, Finalize Agreement Consultant Submits Work Plan Feasibility Study underway Consultant progress report #1 Consultant progress report #2 Draft Report Submittal and Peer Review Final report Prepared: Pat Woodell, Development Specialist Amended: December 30, 1992 Page 28 Status Completed December, 1992 January 1993 February 10, 1993 February 26,1993 March 8, 1993 April 8, 1993 May 8, 1993 June 15, 1993 June 30, 1993 APPENDIX B ¢ Alaska Bioenergy News No.32 Page 29 Alaska Energy Authority Bioenergy News Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519 (907) 561-7877 (office) (907) 561-8584 (fax) As a participant in the Pacific Northwest and Alaska Regional Bioenergy Program, the Alaska Energy Authority promotes the use of biomass resources for energy by providing technical assistance and information to the general public The purpose of this newsletter is to give readers information about trends in industries that use biomass fuels for energy. The newsletter also attempts to keep readers current on regulatory and public policy issues that affect the development of new projects. Biomass resources include byproducts and municipal solid waste. Alaska Bioenergy News is the newsletter of the Alaska Bioenergy Program. For more information on projects or program activities, or for technical assistance on Peter Crimp Alaska Bioenergy Program Alaska Energy Authority No. 32 November 1992 ENERGY AUTHORITY TO ISSUE WOOD RESOURCE ASSESSMENT REQUEST FOR PROPOSALS In January 1993, the Alaska Energy Authority will issue a Request for Proposals for a wood resource assessment in Southeast Alaska. The purpose of the assessment is to determine long-term wood residue availability, power markets, residue volumes, and costs of transporting residue from harvesting or manufacturing sites to potential power plant sites in the Ketchikan, Metlakatla, and Prince of Wales Island areas. If the assessment demonstrates favorable economics, the Energy Authority will proceed with a concept design for a wood- fired power plant. If you would like your company's name placed on the mailing list to receive a copy of the January request for Proposals, please contact: Pat Woodell Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519 (907) 561-7877 (907) 561-8584 (FAX) BUSH SIGNS ENERGY POLICY ACT In late October, President Bush signed the Energy Policy Act of 1992 into law. This bill will: (1) implement key elements of the National Energy Strategy, a long-term plan which is designed to stimulate domestic energy production; (2) promote energy efficiency and use of renewable fuels; and (3) reduce U.S. dependence on foreign oil. It is important to note that the bill's passage does not mean that funding for specific provisions or programs is available at this time. Many policies and programs included in the bill will be the subject of future Federal funding legislation. The Energy Policy Act contains hundreds of provisions that are expected to influence domestic energy production (including fossil and renewable fuels), consumer energy end-use programs, government energy planning activities and environmental practices. A few of the highlights of the bill are as follows: Alaska Energy Authority Bioenergy News TRANSPORTATION Public Transportation and Van Pool Users will enjoy employer-provided, tax-free benefits of up to $60 per month. Purchasers of Alternative Fuel Vehicles will benefit from improved performance and competitive new technologies, including tax incentives to offset the incremental costs of alternative fuel vehicles and refueling facilities. Federal Alternative Fuel Fleets will be a requirement of the future. In 1993, at least 5,000 alternative fuel vehicles must be purchased. Percentage requirements commence in 1996; by 1999, 75% of all purchases will be alternative-fueled vehicles. State Alternative Fuel Fleets. Bill requires State fleets to begin purchase of alternative fuel vehicles, 10% of new vehicle purchase in 1995, increasing to 75% by 2000. Electric Vehicles. Bill authorizes a 10- year, $50-million commercial demonstration program and a_ 5-year, $40 million infrastructure support and system development program to encourage the introduction of electric vehicles in the national fleet. TAX INCENTIVES Alternative Fuel Tax Incentives Provides tax deductions of up to $2,000 for cars and up to $50,000 for heavy trucks for the purchase of vehicles and tax deductions of up to $100,000 for investment in refueling facilities. An income tax credit equal to 10% (up to $4,000) of the cost of electric vehicles is also provided. No. 32 November 1992 Ethanol Tax Credit Extends the 5.4 cents/gallon federal gasoline tax exemption provided to blends of 90% gasoline and 10% ethanol to other blends, in order to allow ethanol use in reformulated gasoline. Wind, Biomass, Solar and Geothermal Tax Credits Establishes a production tax credit of 1.5 cents/kilowatt hour for electricity produced from new wind and biomass facilities and a permanent extension of the investment tax credit for solar and geothermal facilities. Extension of Section 29 Credit for Certain Facilities Extends the non- conventional fuels tax credit ($3/barrel equivalent) qualifying period for facilities that produce gas from biomass or produce liquid, gaseous or solid synthetic fuels from coal. COAL Coal-Based Technologies Program Authorizes a 5-year program of coal- based technologies that includes coal-fired diesel engines, clean coal and waste-to- energy, non-fuel use of coal, use of coal wastes, and coal liquefaction. $278 million is authorized in FY93. Expanded Use of U.S. Coal and Clean Coal Technologies in_ International Market Promotes increased export of U.S. coal and related technologies. Requires development of a Coal Export Plan and authorizes that an interagency Trade Promotion Coordinating Committee for coal-related exports be established. Page 2 Alaska Energy Authority Bioenergy News FUNDING SUPPORT AND RESEARCH PROGRAMS Support for Alternative Fuel Use Provides assistance to States to encourage alternative fuel use ($10 million per year). Provides financial support for demonstrations of alternative fuel use by urban mass transit systems and_ for alternative-fuel school bus fleets ($30 million per year). Grant Programs’ Establishes new or expanded grant programs to assist U.S. territories and tribal governments in developing energy plans, supports the training of building designers and contractors, and aids in energy education and teacher training programs. Research and Development Authorizes a five-year program to provide cost-effective options for electrical generation from renewable energy sources ($209 million in FY 1993; $275 million in FY 1994). NATIONAL BIOFUELS CONFERENCE PROVIDES FORUM FOR NEW INFORMATION ON BIOENERGY RESEARCH AND PROJECTS The 5th Annual National Biofuels Conference and Exhibition was held on October 19-22 in Newton, Massachusetts. The theme of the conference was "Waste Wood Processing and Combustion for Energy," and it included three days of technical presentations on _ bioenergy- related research and projects, followed by a day of field trips to bioenergy facilities in the Boston area. No. 32 November 1992 Conference presentations covered number of wide-ranging topics including: the impact of federal and state energy policies on bioenergy projects, waste wood processing facilities use of treated versus untreated wood in electric utility and industrial applications characteristics and uses of ash from untreated versus treated wood emerging gasification waste wood recovery technologies for emerging waste wood processing technologies physical, chemical and combustion characteristics of waste wood fuels an overview of biomass combustion equipment State air quality trends resulting from 1990 Clean Air Act amendments waste wood separation and processing strategies for solid waste managers stack results from combustion of treated wood products new markets and prices affecting wood energy For a complete listing of presentations under each of these topics and information on where to get copies of presentations, please call or write: Pat Woodell Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519 Phone: (907) 261-7243 Page 3 a Alaska Energy Authority Bioenergy News PACIFIC NORTHWEST AND ALASKA BIOENERGY PUBLICATIONS 1992 Washington State Directory of Biomass Energy Facilities This directory covers facilities producing biogas from landfills and sewage treatment plants, biomass combustion facilities (including chemical recovery, municipal solid waste and wood combustion facilities such as saw mills and pulp and paper mills), ethanol production facilities and solid fuel processing facilities (wood pellets, hog fuel). For information on this publication, contact: Washington State Energy Office 809 Legion Way SE P.O. Box 43165 Olympia, WA 98504-3165 A Handbook for Small-Scale Densified Biomass Fuel Pellets Manufacturing for Local Markets This handbook has been prepared to assist potential small-scale manufacturers of densified biomass fuel with preliminary investment, processing and local marketing decisions. It presents an overview of the industry, documents the operation of an actual small-scale pellet fuel manufacturing business, and provides an_ interactive spreadsheet for examining cash flow from hypothetical plant layouts. No. 32 November 1992 The appendix to this publication provides contact information for the following types of businesses: wood pellet manufacturers in the U. S. and Canada industrial & commercial wood pellet combustion system manufacturers residential wood pellet stove and furnace manufacturers mobile whole tree processor manufacturers tilt dump and chip van manufacturers residue/pellet storage equipment manufacturers residue handling, screening and classifying equipment manufacturers on-site chipper, shredder, hog and hammer mill manufacturers rotary drum dryer manufacturers pellet mill and pellet cooler manufacturers bagging, weighing and palletizing equipment manufacturers For information on this publication, contact: Pat Fox, Program Manager Pacific Northwest and Alaska Bioenergy Program P.O. Box 3621 RMG Portland, OR 99232 Page 4 APPENDIX C Project Development Correspondence and Information Alaska Energy Authority Letter to BPA in Support of Maintaining Montana in the PNW&A Regional Program Alaska Bioenergy Program Presentation Paper for DOE Five-Year Plan Seattle, Washington Meeting on December 16, 1992 Page 30 November 27, 1992 Mr. Patrick J. Fox, Program Manager Pacific N.W. & Alaska Bioenergy Program Bonneville Power Administration P.O. Box 3621, RMG Portland, Oregon 97208 Dear Mr. Fox: | have recently learned that the U.S. Department of Energy (DOE) has proposed reorganizing reporting responsibilities for many states under the five Regional Bioenergy Programs. This “realignment” is being done in conjunction with DOE's effort to improve coordination between the five regional programs and DOE's support offices. The realignment, | understand, would move the State of Montana out of the Pacific Northwest & Alaska Region and transfer it to the Western Regional Biomass Energy Program in Golden, Colorado. For more than 13 years, the Alaska Bioenergy Program has enjoyed a mutually- beneficial working relationship with Montana's bioenergy program. In particular, our two programs share common interests in promoting small scale technologies for biomass harvesting and combustion, transportation issues and many other factors associated with developing wood energy projects. Alaska and Montana share many common strategies in promoting biomass energy fuels, largely because of similarities in community size, distance to energy markets, and the rural character of our communities. The Pacific Northwest and Alaska Regional Program has supported many bioenergy projects that are tailored more specifically to the needs of smaller population states. Alaska and Montana's "alliance," | believe, has had an impact on the Regional Program's policies and goals over the years and | would like to see this programmatic interest continue. For this reason, | would like to voice PO. Box 190869 704 East Tudor Road =Anchorage, Alaska 99519-0869 (907) 561-7877 Fax: (907) 561-8584 my support for retaining the Montana Program in the Pacific Northwest and Alaska Region. | believe that it is important to weigh the costs and benefits of any proposed change. In the case of the Pacific Northwest & Alaska Regional Program, we have had a successful working relationship among five states for over 13 years. Montana's transfer to WAPA would certainly leave a void in the Pacific Northwest and Alaska Program. | would appreciate your including my comments in your response to the DOE, Office of National Program's request for review & comment on realignment of the regional programs. Sincerely, Su Ronald A. Garzini Executive Director FN:montana/1992Q4/piw Factors to Consider in Promoting Biomass/Electricity Projects in Alaska (December 11, 1992) Introduction This paper has been prepared for the U.S. Department of Energy (DOE) industry meeting that will take place in Seattle, Washington, on December 16, 1992. The purpose of the meeting is to solicit industry input for the development of DOE's Five-Year Plan. The Alaska Bioenergy Program representative was unable to attend the Seattle meeting, but the Alaska Energy Authority, which administers this Program, is very interested in the proposals to be made. The following comments are, therefore, offered as Alaska's perspective on ideas that could be considered for the Five-Year Plan as they pertain to our state. In general, we feel that DOE's effort in supporting a public policy and regulatory environment that promotes wood resource development and marketing is the single most important factor affecting the development of wood/electricity projects in the more urbanized areas of Alaska. Research and development activities on wood combustion systems and other activities that promote wood/energy technologies will not result in new projects unless there is a regulatory environment that supports long-term wood fuel availability for wood/electricity projects. The financial and technical issues discussed below are important to the development of wood/electricity projects in more rural areas of the state. Technical Issues Lack of Transmission Line Infrastructure - The economies of scale for small wood-fired power plants in Alaska is often very poor. Regardless of the type of fuel that may be used, maximum size of power plants in Alaska is directly related to the small loads in rural communities. Typically, loads are less than 1.0 MW and often less than 500 kW. Most Alaskan communities operate on independent diesel power systems that are not served by transmission line interties, although some independent systems are less than 10 miles apart. Alaska would benefit from Federal programs supporting wood/electric projects that include provisions for consolidating service areas through line construction so that smaller loads can be tied together, thus improving the economics of power generation using wood. Financing Issues Loan Guarantees - Commercial lenders are not always familiar with financial risks associated with wood/electricity projects (certainty of fuel supply, long-term power markets). Loan guarantees by a federal agency like DOE that has the technical background to judge the merits of these projects, may provide additional support for project developers to work with local lenders. Tax Credits - \dentification of tax credits to offset construction and power production costs would help reduce the higher, up front costs associated with wood/electricity projects. Matching Grants - A matching grants program may provide incentives to wood/electricity project developers where start up funds are insufficient to readily obtain financing from commercial banks. Requlatory/Policy Issues Tongass and Chugach National Forests - Department of Energy's coordination with the U.S. Forest Service to ensure consistent federal policies that balance economic development and wood resource marketing along with other forestry management goals is important. Assurance of a long-term fuel supply for wood/electricity projects, (particularly in areas where timber sales from national forests are the primary wood source), is one of the major factors affecting project financing and long-term plant operating costs. Economic Development Issues - The Department of Energy's general position on funding and policy support for projects that promote local economic development has a direct relationship on the development of wood/electricity projects in Alaska. For example, many remote locations in the state depend primarily on state and federal employment to bring cash into local economies. School teachers, BIA representatives and health aides may represent the only cash-based jobs in the local work force. Construction of wood/electricity plants in these remote areas would help create employment that would diversify the economic base--by adding new jobs in fuel wood harvesting, fuel processing and power plant operations. Local dependence on wood as a fuel resource would also reduce the cost of importing expensive diesel fuel into remote communities by barge or air. The Alaska Energy Authority manages the Alaska Bioenergy Program. For more information on issues that affect wood/energy projects, please contact: Patricia Woodell Alaska Energy Authority P.O. Box 190869 Anchorage, AK 99519 Phone: (907) 261-7243 FAX: (907) 561-8584 APPENDIX D Current Industry-Related News Articles Page 31 OCTOBER I, 1192 %, Cilae ke Scene. feo Timber: Tongass timber operations cost money A Forest Service report shows timber operations in Tongass National Forest during the past nine months cost $15.6 million more than what the federal Trea- sury received from timber sales, making Alaska the only national forest region to lose money. The deficit resulted from rate readjustments for Tongass pulp companies such as Ketchikan Pulp Corp., according to a forestry official. However, the agency said new sales in the last quarter of the 1992 fiscal year, which just ended, would counter the loss and result in a profit of $5 million on projected 1992 sales of 394 million board feet. For the first nine months of the fiscal year the Forest Service was paid only $833,707 for timber sales of 138 million board feet. ak RK Congress sets higher Tongass cut Congressional negotiators settled on a 440 million board feet figure for timber sale preparations in Tongass National Forest, a victory for the Senate side and Alaska Sen. Ted Stevens. The Senate had ap- proved 440 million b/f being offered, a higher figure than than a 300-325 million b/f figure passed by the House. This is a higher figure than that authorized last year, and it puts the timber industry, “in a more stable situation,” said Stevens. Last year 415 million b/f were authorized, with 390 million b/f actually offered by the Forest Service in timber sales. Stevens said he had been given estimates that actual harvesting this year would be about 290 million bif. Since passage of the “Tongass reform” bill in Congress, the annual timber cut allowable is set each year by Congress. eK Is Kachemak buy-back dead? It looks as if the state won’t make another offer to buy back inholdings in Kachemak Bay State Park. Seldovia Native Assoc., the landowner, had given the state a deadline to make a $2.23 million down payment for another option to buy back 24,000 acres of timber inholdings. No word came by the deadline. Last spring the legislature authorized $11 million to buy back the acreage, about half its appraised value, but the appropriation was vetoed by Gov. Walter Hickel. A Koncor Forest Products subsidiary has purchased timber cutting rights from Seldovia Na- tive Assoc., and is working on permit for logging. ee OCT 3 Timber officials 2 Anchor «ge Daily Z advised “ to limit roadside harvests The Associated Press TACOMA, Wash. — The timber industry could im- prove its image by putting a stop to clearcuts along major roadways, speakers said at the annual meeting of the Washington Forest Protec- tion Association. Clearcuts are the forest- products industry’s No. 1 image problem, said public- opinion researcher Bab Moore with Moore Informa- tion in Portland, Ore. “The public doesn’t like the way it looks,” he said Thursday, noting that even industry employees object to clearcuts. “It’s a basic : political, fact that “a potent’ “and growing’ force” opposes-big clearcuts, state Public Lands Cominis- along sceni¢;transportation routes, su ‘Ihterstat® 00, U.S. 101: om the Olympic Priced ie U.S. 2 ‘over "wag “an aesthetic @vens Pass. +. : yle recommended clear- cuts be avoided in those ar- eas, that industry limit clearcuts there to patches of just 20 to 40 acres, or that some trees be left standing. The changes may mean a reduction in profits, he said, but it’s money spent “‘in the interest of protecting your ability to do business in this state without major hin- drance.”’ Weyerhaeuser Co. has been..taking,such steps for several years now — leaving selected trees standing and leaving buffer zones of trees along highways, said compa- ny spokesman Frank Mendi- zabal. . : Clearcuts are “definitely problem,” he said. oR Pt Seas = “But? they’re also good forestry. d_ Mendizabal. He sat Douglas fir seed- lings’ in clearcut ar- eas. Mendizabal also said clearcuts. minimize erosion because’ fewer roads are re- uiredttoitake timber out: By SCOTT SONNER fed Press WASHINGTON - The Bush administration is try Ing to “gag"’ Forest Service workers who want to sound off publicly against logging of national forests, members of Congress and an employ- ee-advocacy group contended Wednesday “They are suppressing their employees — political ly manipulating them with a few hacks up on top,” said Rep. Peter DeFazio, D-Ore The Association of Forest Service Employees for Envi- ronmental Ethics provided - The Associated Press with a copy of an Oct. 8 memo banning service employees from talking to the national news media without prior approval from top-level ad- mintstrators. y “Even where the contact is by telephone or incidental = Such as to check facts or Qbtain further information +> We must notify the de ‘partment immediately,”’ wrote J. Lamar Beasley, deputy chief of administra. tion for the Agriculture De- Partment, which oversees the service. “This policy is vital to avoiding surprises in the media, and to enable coordi- nation of inquiries and . stories that may appear na- tionally," he said in the memo to regional foresters, Station directors and area -. directors. Jeff DeBonis, u former Forest Service timber-sale planner who founded AF- SEEE in 1989, said the memo was an attempt to intimi- date workers critical of mis- ; management and roe. mental damage in national forests. 7 » Broadcasts by CBS News and CNN about the North. | west's old-growth forests this summer included inter- views with current Forest Service employees voicing such concerns. “Once again, agency offi- cials are trying to harass individuals who are simply exercistng their Amendment rights,” DeBon- is said Wednesday from Eu- tone Ore First : —=T'— *Once again, agency officials are trying to harass individuals who are simply exercising their First Amendment rights. 9 poe He | ee one, APSEEE founder; James said for the The Oct. 8 memo was.a Raid. follow-up to u Feb. 4 memo > But Forest Service,” he DeBonis said the from Forest Service Chief memo was intentionally am Dale Robertson, he said. The earlier memo remind- bDiguous so as to give the impression : that persona: ed workers of a “‘long-stand- Comments after hours are ing policy that (the parent fovered Agriculture Department) Re must be notified of national media requests before an in- terview of department Per. sonnel {js granted."" *"** James said the intention by the policy. - : kw is to allow agency supervi-" eV sors to provide relevant in. | j3.9n duty. , formation to an employee | pies Wa about responding to such a t Pe rnifident -Slngsi- so he or she can “be 7 } ted in oratati ge fe: are . sak knowledgeable in comment- ‘ talleing al it-day-tosday -in- . , ing on 4 issue. sak : formation on the Forest of-information from Forest “If you are in a ranger station in Oregon and speak- ing to the national media, you are in essence speaking —————— —ee__=“ “It is clearly an attempt to control media coverage,” he said DeFazio and Rep. Jolene * Unsoeld, D-Wash., said gov- ! ernment employees should be able to speak. freely ta _ reporters whether they are Ee ne, = - “This gag order isa ham-handed response iby. Bush oe ) crats trying to avoi prircgcaa in the OeEre? it remain before Electién. Day,” he said. mF interpreted. He saidjit' ap. plies ealy ta offictal’ 4 co! workers, not ! criticism leveled after hours. “They are reading more , into it than is intended,": Ss Service field workers is a key reason the agency has fallen victim to court-or- dered logging bans protect- ing the spotted owl. “If they had honestly con- vice,” DeFazio said... - “The only thing I'can lik- en it to is the old Soviet Union. We have People who are professionals, but their Political managers are-con- Stantly looking over their {tonted the spotted Sor shoulders to tell them what Problem early the 1980s, " we would be continuing to- they can and cannot say," he day at a modest sustainable level of harvest and the con- troversy would be over the next set of forest plans, not over whether another stick of timber will ever be sold," he said. “What is it they are try- ing to hide from us? What is it they are trying to keep from being embarrassed about?" said Unsoeld. ; OT 24/792 Homer project gets AIDEA OK Daily News staff reports The Alaska Industrial De- velopment and Export Au- therity board on Friday ap- Pfeved a $1.6 million loan to a Joint venture that intends to build a wood chip storage and loading complex at the Homer dock. The joint venture is formed by Kenai Pacific Lumber Co. of Anchorage and Circle DE Lumber Co. of Klamath Falls, Ore. It plans to cut white spruce from beetle-infested forests on the Kenai Peninsulg.owned by Cook Inlet Reel Inc. The timber~: ld a chipped, continue for therpext six to seven years. 5 - Key Bank ot Alaska is helping with the financing, : providing .a_ $400,000 loan. eet Ba NOR fe What deficit? “| OA lg Merk | The Tongass ti per giveaway Critics of the Tonga: Reform Act — Sen. Ted Stevens being the most’ influential — can't get through their heads that the Tongass National Fores: is not just a tree farm. They've ignored losses to fish and wildlife habitat caused by excessive logging They've shrugged off complaints of lost opportunities for subsistence, recreation and tourism. But most | puzzling of all, they’ve refused to recognize that their tree farm loses money How much money? In the past nine months, | Tongass logging has cost us taxpayers $15.6 million more than timber sales brought into the federal | Treasury. And we're all supposedly worried about the deficit. Sen. Stevens maintains that logging — as it turns out, heavily subsidized logging — is needed to boost the economy in Southeast Alaska. Heck, we'd probably spend less if we just handed the money directly to loggers and millworkers. Instead, we're giving the trees away. Over the -last nine months, independent timber operators . without long-term contracts bought old-growth Tongass trees for the lowest price in the country £...$22 per 1,000 board feet, compared to $222 oard. feet in Washington and Oregon. , ni timber contract holders got an even better | deal: 100jmillion board feet of. timber for free. ¢.The Fdfest Service dropped the price to help pulp companieg stay profitable in the face of a declining | market. But since when is the Forest Service in the welfa business? Why do ‘we complain about subsi to:.single niothers - with ‘children while we happily Subsidize: timber companies and pulp mills (somé of which ‘are foreign’ owned)? - “ : ¢SThe year-old Tongass “Reform Act was ‘remove mandatory anriual subsidies for id set timber sales according to market demand chief critic Sen. Stevens has essentially gutted thi: mmon-sense reform, by pressuring the Forest Se: to boost timber preparations at the expense of vironmental protections and pushing Congress to e the sales volume far beyond market demand. . " Look, we at want to put people out of work. But it plain doesn’t make sense to give our resources away. Besides istbsidizing excessive logging ends up - hurting fishermien, Sportsmen, . subsistence hunters, hikers, tourists and — yes, loggers, who will be put out of work soon enough if the forest can’t be managed to sustain logging over the long haul. Loggers’ deaths sharpen interest in safety training By ROSANNE PAGANO The Associated Press The deaths of two Southeast loggers in two days this month has intensified interest in a new government- backed pilot safety project. Organizers hope the class becomes @ permanent fixture in Alaska where snow, wind, slippery terrain and remote worksites combine to produce some of the most dangerous logging conditions in the country. In Sitka, the island community surrounded by Tongass National Forest. the University of Alaska Southeast has received one of two logging safety grants awarded nationwide by the Occupational Safety and Health Administration. Grant overseers said they were convinced based on state records that show logging is Alaska’s most hazardous occupation. The state does not track com- mercial fishing. which rivals logging in job-related deaths. The Labor Department said Alaska has had nine logging deaths so far this year, including the two men killed in separate accidents on Prince of Wales Island last weekend. That compared to 11 fatalities last year. Logging employs about 2,000 people annually. Greg Isaman, a Seattle-based OSHA manager who reviewed the UAS proposal, said no increase in accidents had led the government to take an interest now in safety training. “We know the problems are there,’ Isaman said. Please see Page B-2, LOGGERS B2 Anchorage Daily News reo | Continued trom Page B-1 “One reason we chose log- ging was we have high fatal- ity rates. Training is meant to get that rate down.” The Sitka campus planned to unveil its class in March Features include a safety video endorsed by the Brit- ish Columbia workers com- pensation board and a train- er who will take the film and workbooks to Southeast logging supervisors, who in turn train their own crews. Mary Lauer, a UAS con- tinuing education program coordinator, said Sitka's $71,000 grant will provide free four-hour sessions that focus on “falling and buck- ing" — industry terms for cutting a tree down and saw- ing it into smaller pieces. The two tasks account for most logging accidents, Lauer said. “‘Some camps are doing a good job and some are not,” she said. “If this makes a difference, I’m sure the log- ging companies will help us carry it on.” Among those who'll be deciding if the class is worth it is Jim Leslie, owner of a Wrangell-based timber, com- pany that reduced its serious accidents from 53 last year to eight so far in 1992. “Right now, the only one I could afford to send was me, and they'd have to show me something I hadn’t seen before,” Leslie said. At 42, he’s been hospital-. ized five times with logging injuries since his college days — including one stay that lasted five months Monday, November 16, 1992 Logging’s built-in dangers range from heavy lifting to use of chain saws to trying to predict where a tree will fall. when he was paralyzed from the waist down Today he walks with a limp. He's uncertain about encouraging his own son to become a logger. Leslie says he’s been frus- trated before by government promises to improve logging safety so he's devised his own regimen. He urges his loggers to train like physical athletes and keep fit in the off-season. He promotes 15 minutes of back exercises a day. Leslie said he knew Steve Crookes, the 32-year-old log- ger from Craig killed last Sunday when the root sys- tem of a tree rolled downhill and the logger was crushed. “Root wads are horrible accidents. They’re all horri- ble,” Leslie said. The second accident, in- volving a Montana man, also was under investigation. Regulators say it appeared standards. were violated af- ter reports that William H. Brown, 49, was standing be- side a truck last Saturday while it was loaded with logs. Rules call for drivers to remain in the cab during loading. Brown died when a log struck him in the chest. “I am very militant about safety,"’ Leslie said. “If I didn't believe we could do this safely, that my men could be professional and work their lives through without being injured or crippled as old men, I'd quit tomorrow. “But I know it can be done.” The question is how. Log- ging’s built-in dangers range from heavy lifting to use of chain saws to trying to pre- dict where a tree will fall Any accident can be lethal and as one state regulators says, loggers rarely get a secend chance Alaska carries its own dangers. Rotten timber and debris are so common that loggers wear spike-soled shoes, like golf shoes, to improve footing. Larger companies have taken to providing unlimited free spikes and some supervisors say they would fire a logger who didn’t keep sharp shoes. Remote logging in moun- tainous terrain has increased in Alaska with the use of helicopters. A helicopter en- gaged in aerial logging near Juneau crashed in the forest in February, killing six men on board. An accident report is pending, the National Transportation Safety Board said. Alaska logging is season- al. After a few months off | during Southeast’s rainy, cold winter, workers may be less fit when they return in February or March. There may be pressure to put in long hours which, records show, leads to fatigue-relat- ed injury. Lauer with UAS said one-fifth of Alaska logging accidents happen after the eighth hour of work. Clus- ters of accidents typically are reported in spring, as crews are regaining strength from the winter break. LOGGERS: Industry is state’s most hazardous logging saf No federal altho stan d exists OSHA recently revised proposal that is undergoit legal review. Among cot cerns are how to resolv overlapping interests of ret ulatory agencies, and how t write a standard broa enough to cover technique - that vary widely across th country | Alaska imposes its ow safety code which holds er ployers accountable for ur safe conditions. Fines wer increased sevenfold thi year, to a maximum $70,00 for repeated and willful vic lations Bob Speed, a state regul: tions specialist who draft logging safety standard: said higher penalties wer mandated by federal OSH. to drive down the accider rate and eliminate wha Speed called ‘‘slopp operations.” } ‘Seven thousand dollar } as opposed to $1,000 prob: bly will get their attention, he said. ‘ Pressure to improve safe &ty records also has com from insurers. Warren Abell, generé manager with the Alask Timber Insurance Exchang in Ketchikan, the industry largest insurer, said a goo safety record could make sizable difference in prem ums. “Any logging company from a mom-and-pop to huge operation, would b interested in safety for imple reason,”’ Abell saic s \" pays.” imber Rally News., Saturday, November 14, 1992 ‘cut down t Voters + Ba Anchorage stry’s candidates indust AUN by Jit, SIMUN OLYMPIA, Wash. — Tim berrr!"! Watch out for crash- ing political consultants ~z from phesgagseieproducts in- > dustry. : In an dbbdion that turned into a nightmare for Repub licans and many of their business allies, few bet heavier and lost bigger than the st s timber giants An analysis of public elec tion records shows that tim ber interests — a list of 20 firms such as Weyerhacuser and Boise Cascade, along with a handful of top execu- tives — spent $750,000 in campaign contributions on Washington state races. That is three 'times what the in- dustry gave in 1988, accord- ing to records. Yet every major candi- . date they invested in, and virtually every candidate preaching the industry's message that ‘‘environmen- tal extremism" was behind the loss of jobs in the woods and mills, was rejected at the polls.” °° “Shell-shocked might be a pretty good word for how we feel,” said William Ja- cobs, executive director of the Washington Forest Pro- . tection Association, the in- dustry’s chief lobbying group in Olympia. It's hard to isolate the importance -of the timber ‘vote amid the huge Demo- ‘cratic victory in ‘the state last week. Still, environmen- tal leaders were elated. Jim Pissot, head of the .. National Audubon Society's State office, said the results * showed the industry's -mes- sage was as “‘arcthaic as the flat-Earth theory.” Cooperation and results in ending the forest wars, not * more polarization, is what interested voters, Pissot claims. The biggest disappoint- ment for -pro-timber forces was the defeat of. public , lands commissioner candi- “date Ann Aniderson by state Rep. Jennifer Belcher, a strong environmentalist. Anderson, a Republican state senator from Whatcom County, received $325,000 i NORTHWEST from timber and pulp co: Panies — roughly 40 perce: of all her cash Timber companies and ecutives spent $105,000 Attorney General K kenberry, the defe: 3 publican nominee for gover nor, while GOP state Senl¥ Dan McDonald ceived $110,000 during the yuberna- tonal primary. Another key ally, Repub-: lican Rep. Rod Chandler, lost a U.S. Senate race which he made calls fo amending the federal Endany gered Species Act a headline issue. { Even in southwest Wash-*: *,| ington and the Olympic Pen- insula, the heart of timber country, several of the in- dustry's strongest legislative allies lost. Pending the final absen- tee voter count, the casualty list appears to include three Republican incumbents in the state House. “The industry seemed in- tent on some kind of last- gasp, 19th-century effort to make people choose between the environment and jobs,” said outgoing Public Lands Commissioner Brian Boyle, a Republican. “People don't like to be told they have to make those choices. They elect us to find solutions.” Given the stakes, the size of the industry wager was hardly surprising. On the state level, vanishing wildlife and fish habitat, along with battles over water resources, are ~ creating pressure for stricter logging rules on public and private forests. Nationally, the fight is over how much timber will be harvested fram the re gion’s federal forests — a+ matter that remains tied up in the courts nearly four, years after the spotted owl... was listed for protection un- der the Endangered Species « Act. During the race, Republi... cans used the Endangered > Species Act in a sort of. populist shorthand: Only.:' those willing to amend the . act, they implied. were on the side of traditionally Democratic mill workers and lumberjacks “Quite frankly,"’ said Boyle, ‘the industry is des perately looking for friends."* But in that search. timber companies and Republican Politicians misread the Pub- lic mind, says Steve Gano, a lobbyist for Plum Creek Timber and the manager of McDonald's gubernatorial campaign. They based their strategy on polls that showed the majority of the public be. lieved protecting jobs should come before protecting the environment Washington's Sen. Slade Gorton seemed to have tapped that sentiment in his 1988 election, when the Re publican wooed Democratic timber communities by bashing Seattle environmen- talists. This year, President Bush mide his only campaign vis- it in the state to a Colville lumber mill, where he told the friendly audience that the Endangered Species Act mede owls and salmon more important than families who mpke their living in the woods. . a as tee: y contrast, Bill Clinton promised to bring eénviron- mentalists and the industry together for a summit to hammer out an agreement on the fate of the region's national forests. “People in timber country have been promised by Bush and Republicans for four years that they'd come to their rescue. And they never did,"’ said Gano. “They had no reason to believe it this time.” Elsewhere in the country, the news was better for the timber industry. One of its most vocal foes in the old-growth forest war, Rep. Jim Jontz, D-Indiana, was knocked off, and a ma- jor. ally, Sen. Robert Pack- ‘wood, R-Ore., survived a close race that turned in part on logging questions. But anger in this state's timber towns apparently didn’t translate into as many Republican votes as GOP strategists had counted on Victorious Senate candi- date Patty Murray carried nearly all the Olympic Pen- insula and southwest Wash- ington, despite Chandler television ads claiming the Democrat's environmental stands would throw tens of thousands of their residents out of work. . Belcher, too, won in many rural areas where mills and logging companies are the major employers. PR nen f ; turaay, November 14, 1992 Pre-Halloween stunt puts 12 logg The Associated Press CORDOVA — A hatchet job on a logging crane had an eco- nomic domino effect in this coastal community recently, costing a logging company an estimated $100,000 while throw- ing a dozen loggers out of work for four days. Perry Beecher, owner of Sound Development, said some- one tore up the radiator on a crane on the night of Oct. 28, apparently using a hatchet. It was a “typical terrorist act,”’ Beecher said. The crane is used to lift logs from trucks into the waters of Orca Inlet, where they are rafted and hauled by tugboat to:, Nelson Bay. I : The prank laid off 12 loggers*, while the radiatok, Was shipped > to Anchorage for repairs. The $4,000 ‘repair bill was minor compared with the estimated $12,000 the men lost in wages while not working, officials told The Cordova Times. It also cost .the compan: $20,000 a day in lost.sales, Be a cher said. cue a iB “You can’t make AE. Ups he” said. “That money is lost"f9 er.” Peace I Along with that, a Japanes ship coming into Nelson Bay to. anchor while loading logs will * m4 O have to return short of its quota, “and there’s no telling what that will cost,” Beecher said, ‘A local logging company als was forced to delay a Nov. 1° deadline, set by the U.S. Army Corps:of Engineers, for getting its logg out of the rafting pond near Fleming Spit. Eyak Corp. which owns the land on ‘which Sound Develop- ment cuts spruce and hemlock logs, was able to get an exten- sion on the deadline, Beecher. said. , “PeOple with integrity don’t lo th — Co ers out of work for 4 days 8 like that,” said Steve. rdova “This endangered the commu- nity,” Beecher said. If an emer gency had occurred, the crippled crane would not have been able «p49 corral the logs and keep them rom drifting into Orca Inlet. That could have posed a hazard to shipping, including ferries with the Alaska Marine High- way System. “It’s like throwing a bomb into a crowd just to get one person and not caring about what happens to the rest of the » -; people,”’ Beecher said. ‘Police Chief Kevin Clayton’+ said the investigation was con- tinuing, but there were no sub- stantial leads. Py =" we rs fF ANCHORAGE, ALASKA, TUESDAY, L. XLVI, NO: 363 60 PAGES DECEMBER ‘29, PRICE 25 CENTS wee ° 4 By. HAL BERNTON Tongass lobal Forest coni + In their memo, the state biolo- cites concerns for a, deca long * Daily News business reporter . tract wil nat F Ip :Ca, t & ‘ end: reducing the ‘boom cycle in the P. of State biologists want the US State & ists say that ce “of logging and leaving Wales Tongass logging will Forest Service to back off plans the time Clogging ends IB; patches of old-growth forest to end abruptly when the ‘pulp for a major new round of south. 2004, there twill be a “major\"help shelter wildlife. mill's 50-year contract runs out east Alaska logging they predict reduction biological diversi. © 4,The memorandum Teflects in 2004. Under the current ‘plan, will cause dramatic declines in ty” ina rich forest area covering s6me of the same concerns for Forest Service officials Say, the deer, bald eagle; black bear and roughly 20 percent of South-.' wildlife: outlined in a report by central island timber harvest other wildlife on central Prince east's largest island. Forest Service biologists for use will then fall by as much as 80 of Wales Island. The biologists detailed their in revising the overall logging percent. The draft timber plan calls for concerns in a state Department plans for the Tongass. The feder. “Such planning seems to be cutting more than 20,000 acres of of Fish and Game memorandum al report was rejected by Forest contrary to the objects of multi old-growth spruce and hemlock that Gov. Wally Hickel’s office Service officials, who said it was ple use and sustained yield.” during the next decade to meet forwarded ‘athe Forest Service inexact and unworkable. : HON ENGSTROM / Arcrovaye DaiyNews the terms of a 50-year federal last week. ! The state memorandum also Please soe Back Page, TONGASS x Continued from Page A-1 wrote Richard Reed, a state Department of Fish and Game biologist who ‘drafted the memorandum sent to the Forest Service. The central Prince of Wales plan is one of a series of area plans being drafted by the Forest Service to map timber targeted during the next decade of logging. It lists six options for the har- vest, four of which call for major logging shaped by the need to supply the Ketchi- kan mill. “We have an obligation to provide about another 2.5 billion board feet to. the pulp said Bill Shoaf, “a Forest Service planner. ‘“‘We are pretty much behind the eight ball in getting wood to them.” “We manage for many dif- ferent resources, including the wildlife, which we view as just as important as the timber resources,” said Hank Newhouse, another Forest Service planner. . B08 HALLNTEN 1 Daily News file photo Sitka blacktailed deer dashes along the edge of'a ‘chikan Pulp sort yard on Prince of Wales Island. TONGASS: company by the year 2004,”. But balancing the differ- efif"resources “‘is a fine line, and I can understand some of the biologists’ concerns,” Newhouse ‘said. Ketchikan Pulp Co. offi- cials could’not be reached for comment Friday. But in past interviews, they have said the logging is a key to the survival of their mill, which is a mainstay of the Southeast economy. Prince of Wales Island al- ready is one of the state’s most intensively logged ar- eas, with both the Forest Seryice and Native corpora- tionS opening lands to major clear-cutting... : State biologists argue in their memorandum that the cumulative effect of private and public logging must be considered by Forest Service officials as they manage the area. Much of the biologists’ data comes from the Forest Service’s own study of the environmental effects of log- ging on central Prince of Wales. That’ study predicted log- ging at proposed levels Logging opposed would reduce central island deer habitat by 75 percent compared to 1954 when log- ging first started. Bald eagle habitat would drop by 68 percent. Black bear habitat would drop by 66 percent. The hairy woodpecker would lose 94 percent of its central island habitat State biologists are also alarmed by the plan’s pro- posal to allow the cutting of special tracts of old growth once set aside for wildlife Protection in a joint state and federal program. In their memorandum, state bi- Ologists say they had Teached,an agreement with the Forest Service that those areas would be permanently protected. “They weren’t huge blocks, but they were the areas we thought were most important for wildlife habi- tat,” said Reed, the state Fish and Game biologist. Newhouse, the Forest Ser- vice planner, said there was never any agreement for per- manently protecting the old- growth tracts. s Fiberglass Maker Considers Mat-Sy The Associateg Press WASILLA _ A manufac. turer js Considering building Up to 40 percent of Alaska’s only fiberglass the fiberglass will be i e Matanuska-Sus. itna Boroug gh and hiring 77 @xported by ship to | full-time employees, ; “om Seattle, Higging | Pany officia} Said. Arctic Fibre, partner Said. | With California-based Glass — Incorporated International, May start 1 the company wil] Manu- Construction as facture the Wool] soon as May, company vice used for insulatj President Stan Higgins Said Percent of th re last_ week. be exported by ship -j Higgins Said the Mat-Su tl Higgins said. borough has al] the neces. i > Ough’s soli opment Committee's December meet 1 force. ing, said the m: somPany simply needs to tee Planned to he] find a Suitable Parcel for the Plant © could recy. _ cle useq glass into fiber. or not is baseq on the glass, taking some Pressure attitude and Morale of the Off the area landfi]]. People who work there. We “He said they can use up | feel the countrysj € will pro. to 80 Percent of recycled vide a etter location to glass in the Process, so that Work,” said Higgins. is an added benefit,” saiq Higgins, who Spoke at the Smith, a member of the bor. borough Overall] Economic Devel P Higgins locate Possible Sites in . . Mat-Su, Preferably at a rai] “We hope to be in opera- Spur, along a major roadway tion by November of next and wi year,” Higgins said th a Suitable Power f - A MeL Cnechorwye he K)oce ber (Z (892, 12-9 -72 ConcKhorege Chg Newsre HAINES TIMBER SALE IS BIGGEST IN A DECADE HAINES — A commercial timber sale being offered in the Haines State Forest is the first in two years and may be the largest in at least a dozén ¥éars. — * It's been two yengs can pice there’$ been any réé eee done jn the state forest, ” said Haineg area forester: Roy: \ Josephgon. “There’s dots of bug kill an}und,now and: Newoule é. nicé to age at Teast Yome ‘of * 4 Gees iii: SILLIN 'The'1990 dispute aboyt atte! j Mental Héalth Trust lands shut down sales in the forest and forced the valley’s small operators to log on private lands. Under a process developed last summer, foresters now can get approval of sales from attorneys representing the trust. ‘‘Since (they) gave the go-ahead on this sale we’re hoping they also give us the go-ahead on small ones,” Josephson said. The Little Salmon Combo offers 8.9 million board feet of timber on 389 acres, to be cut over three yeas. Two of the five units offered are a remainder of the Kelsall Express sale, including 22 acres of timber felled in 1988 by a company that’ yc < Dutch ies gett San aia AAT ‘ Alege * wt u TAN \SLANOS defaulted on the sale. Josephson said he expects the better trees in the sale to be exported to Japan, with lower quality trees heading to pulp mills. Besides cleaning up bug kill and the defaulted sale, the Little Salmon Combo will provide badly needed road maintenance, he said. The bid is to be awarded early next year. — Chilkat Valley News Ce cies — Fraeren eevee Fairbanks BLACE ORT SEN [orsavoe Bay Qo, Juneau A GULF OF ALASKA (5 Dispatch: Alaska, a compilation of news from around Alaska and about Alaskans, appears Sunday through Wednesday in the Daily News. If you think you have a good story or news tip for Dispatch, call Don Hunter, state editor, 257-4349, or toll-free, 800-478-4200, ext. 349. The fax line is 258-2157, and the address is P.O. Box 14-9001, Anchorage 99514-9001.