Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Wood-Peat Municipal Solid Waste Agricultural Byproducts Alaska Bioenergy Program Semi-annual Report Jul-Dec 1997
wood - peat municipal solid waste agricultural byproducts Alaska Bioenergy Program Semi-annual Report July - December 1997 State of Alaska Department of Community and Regional Affairs Division of Energy TABLE OF CONTENTS |. REGIONAL ADVISORY GROUP ACTIVITIES..........csscssssssesestessseeseeeeesenesneeees ll. TECHNOLOGY TRANSFER AND TECHNICAL ASSISTANCE ..........::ssessee Ill. INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT ...........csccsccssesssssseesessessesecesseeeessseseeseeeesseeesseeesaseseeeaseaeeateneeaeeseeeses IV. ALASKA BIOENERGY PROGRAM PROVECTS ......cscsscssssssssesessssesesenseennens V. INDUSTRY ACTIVITIES IN ALASKA ..........:ccssseeessteesseeesntesnsetenneseeeresseseeensen Appendix A Partial List of Alaska Bioenergy Program Contacts Appendix B Juneau WTE Quarterly Reports Appendix C Alaska Energy Update, Volume 1 Appendix D Letter to Alaska Congressional Delegation Appendix E = Current Industry-Related News Articles -REGIONAL ADVISORY GROUP ACTIVITIES In August the Division wrote letters supporting the Regional Biomass Energy Program (RBEP) to the Alaska Congressional Delegation (see Appendix D.) No PNA RBEP meetings took place. During the reporting period the Alaska program provided written bi-weekly reports of state activities to the RBEP consultant and was in contact with the USDoE program manager and other group members regarding specific projects. In August Entech Inc. gave formal notice that they would not proceed with the Copper Center heat recovery incinerator project. During the summer, the Department of Corrections removed the Sutton greenhouse operation. In December the Division informally notified Corrections that we would like to remove the boiler system if there are no plans for its use. We will follow up with a letter during the next reporting period. TECHNOLOGY TRANSFER AND TECHNICAL ASSISTANCE During this period the Division of Energy received and responded to 18 requests for technical assistance and information regarding biomass-fired boilers, wood and solid waste availability, densified fuels, tax credits, publications, wood-fired power plant feasibility, energy and product markets, small-scale waste-to-energy and incineration, contacts, project status, and general program information. A partial list of contacts is given in Appendix A. During this period the Division of Energy began publishing the Alaska Energy Update. After ten years and 38 issues the Bioenergy News has been incorporated into the Division's quarterly publication. Volume 1 of the Update was released in November and contained 1) a summary of findings from the Juneau Waste-to-Energy assessment, and 2) a listing of events and publications / software in the area of biomass energy and other renewable energy areas. Over 1000 copies of the update were distributed to private companies involved in the forest products and solid waste industries; Native corporations; universities; federal, state and local agencies; the Alaska state legislature and media throughout Alaska. lll. INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT Interagency Coordination During this period the Division maintained regular contact with environmental managers and forestry officials and other professionals regarding ongoing and potential projects. (See Appendix A for a partial list of contacts.) We continued participation on the Alaska Forest Product Development Committee, contributed text for and reviewed the Governor's Timber Task Force Report findings in the area of wood residue utilization, explored joint funding possibilities with the U.S. Department of Agriculture rural development section. In October- December the Division worked with the University of Alaska, Alaska Science and Technology Foundation, and U.S. Department of Energy EERE to explore renewable energy projects for the newly-funded Remote Power Initiative. Project Development. Emphasis continued in furthering projects in the area of direct combustion of waste and wood and in liquid fuels. The Division contacted and was contacted by a number of firms to assess opportunities in hog fuel-fired power production, ethanol production, off- grid biomass-fired power systems, gasification, and other areas. (See Appendix A.) IV. ALASKA BIOENERGY PROGRAM PROJECTS Dot Lake Wood-fired District Heating System (DHS). Work entered the construction phase on a retrofit of a wood-fired boiler to Dot Lake Native council's DHS, which provides heat to a washeteria and eight residences. An existing building was renovated, a pad poured for a Garn 4400 boiler, and a 120 sf frame module built to house the boiler/storage tank. During this period Division staff assisted the Native council with the purchase and shipping of the boiler and other system components and provided administrative and technical oversight. Plumbing and electrical work is expected to be completed by January. McGrath Biomass/Waste Heat Project. During this period the Division worked with McGrath-area Native corporation MTNT Ltd. to establish a new project. The project would expand the MTNT subsidiary electrical utility's existing diesel generator waste heat DHS to tie into additional thermal loads at the community's school and water treatment plant. A wood-fired boiler would use MTNT’s sawmill residue and harvested wood to supplement waste heat and displace high-cost fuel oil usage. Project cost is estimated at $500,000-$1,000,000. Division staff assisted with preliminary analysis and project concept and finalized a grant for $20,000 for analysis and preliminary design for the project. Juneau Waste-to-Energy. Channel Corporation’s consultant Harris Group Inc. of Seattle—HGI prepared a final draft report following detailed review by the Division and Channel of a draft in June. The Division required a second round of review to address points that were not adequately covered, chiefly in the structure and assumptions of the economic analysis. As expected, following the disappearance of the expected diesel power load of the A-J Mine, waste-to-energy improvements were not justified by the existing avoided power costs. The report is valuable in that it provides a structure for Channel to determine when energy recovery and pollution control retrofits are justified. See Appendix B for Channel's quarterly reports. Small-Scale Cogeneration. The Division continued to work with Sandia National Lab, its contractors, and Fairbanks-based Native non-profit corporation Tanana Chiefs Conference to assess feasibility of village- scale biomass power in the Interior. During this period the Division reviewed and submitted written comments on a draft report, prepared a section of the report describing forest management implications of increased fuelwood harvest, and organized a meeting in Anchorage in November to establish cogeneration alternatives for McGrath. South Tongass Wood Waste Resource Assessment Update. Recognizing the changes that have taken place in the Southeast timber supply and industry, the Alaska program worked with southeast Alaska regional Native corporation Sealaska and its partner national Renewable Energy Laboratory (NREL) to revise the Alaska Bioenergy Program’s 1993 wood waste assessment for the region. Sealaska continues to be interested in developing a potential lignocellulosic ethanol plant in the Ketchikan area. In August/September the Division conferred with the US Forest Service area office and Forest Product Lab, Ketchikan Gateway Borough, City of Thorne Bay, Metlakatla Indian Community regarding the planned update. The Division provided NREL with a list of potential contractors, one of whom, Charles Nash of the Anchorage area, was hired by Sealaska as a consultant for a ethanol feedstock assessment. In October the Alaska program granted $15,000 of state matching funds to Sealaska to address the expanded work scope items necessary for the update. In November and December the Division worked with Sealaska and Nash to incorporate/modify earlier assumptions. In December we reviewed Nash's draft and attended a briefing meeting in Juneau for the ethanol feasibility assessment. V. INDUSTRY ACTIVITIES INALASKA A. Forest Products With a land use plan in place for the Tongass National Forest and a deal struck to provide the Ketchikan Pulp Company (KPC) sawmills with enough volume to operate for three years, timber harvest and milling continued in Southeast on public land and industry began to explore new products and markets. The Seley Log and Lumber Company opened a new mill in Ketchikan with much fanfare and attendance by the Governor and other officials. The 24 mmbf/year mill will initially manufacture green rough-cut lumber but has plans to install a kiln drying operation, which would provide material for the Alaska and Northwest markets. Silver Bay Logging of Juneau submitted a plan to the City of Wrangell to take over the Alaska Pulp Company's Wrangell mill site. Silver Bay would provide logs to a regional sort yard at the site. Logs would be purchased and milled by a number of mills who would lease space at the site. Silver Bay would operate the old Wrangell mill or lease it to others. The Alaska Industrial Development and Export Authority and City has given tentative approval for financing the $7.75 million project. Sealaska Timber Company, with assistance from NREL and the Alaska Bioenergy Program, continued to study the feasibility of producing ethanol from the region’s wood and logging waste. Sealaska and KPC continued to study the possibility of developing a veneer plant in the Ketchikan area. So far no barriers to the project have been identified. The firms are expected to make a decision on the joint venture in early 1998. B. Solid Waste The Fairbanks North Star Borough finally struck a deal with nearby Eielson Air Force Base to swap 10 tons of Fairbanks’ paper for 5 tons of Eielson’s garbage on a daily basis. Eielson cubes the paper and co-fires it with coal in its power boilers. Fairbanks will begin a $10 million expansion of its landfill next summer. Since half of the cost will be covered by a military appropriation, the Borough’s tip fee will remain flat at the current $50 per ton instead of increasing to $67 as had been expected. Golden Valley Electric Association has also struck a deal to provide 30 tpy of paper to Eielson. With the new arrangements, the base’s cube throughput is expected to increase to around 4,000 tpy. Cc. Air Quality The U.S. EPA is seeking to revise the Fairbanks CO non-attainment status from “moderate” to “serious”. The change would give Fairbanks until the end of the year 2000 to meet the EPA’s 9 ppm standard, and revise the current compliance plan. Oxygenated fuel may or may not be part of the plan. APPENDIX A Partial List of Alaska Bioenergy Program Contacts Alaska Bioenergy Program Date July July 1-20 July 21 July 22 July 23 Partial List of Contacts July to December 1997 Contact Description Crimp on annual leave Craig Chase Project update Cody, WY John Scott Info request, newsletter. Warren and Baerg Dinuba, CA Martin Lunde Freight, timing on Dot Lake Boiler. Dectra Engineering St. Paul, MN Mark Wheeler Info request, ethanol tax credits. Southeast Alaska Conservation Ctr. Juneau Steve Stassel Freight arrangements for Dot Lake boiler. Alaska Energy Engineering Anchorage Bill Miller Project logistics. Village of Dot Lake Gregg Morris Interior Alaska biomass power feasibility, fuel costs Future Resources Assoc. Berkeley, CA Craig Savidge Logging systems for Interior. Forestry consultant Anchorage John Bowler Status of EPA grant for studying use of old Ketchikan Borough Ketchikan pulp mill site Ketchikan Serge Adamian Interior Alaska biomass power feasibility, McGrath Ecotrade Inc. is project site. Glendale, CA July 24 July 28 July 30 July 31 Aug Aug 1 Aug 4 Steve Clautice Division of Forestry Fairbanks Kathleen Morris US Forest Service Juneau Phil Loudon Arctic Tech. Services Fairbanks Terry Brady Husky Wood Products Anchorage Ginny Tierney City Thorne Bay Paul Mcintosh U.S. Forest Service Ketchikan Chad Converse U.S. Forest Service Anchorage Faline Haven Metlakatla Indian Community Metlakatla Jeff James, Craig Chase USDoE Seattle, WA Jim Palen Alaska Science and Technology Foundation Anchorage Ron Hansen Hansen Engineering Juneau Norm Hinman NREL Golden, CO Damian Merlo NBIA Washington, DC Bob Bright, Sue Dickinson, John Bowler Ketchikan Gateway Borough Planning Ketchikan Interior logging costs, production. Alaska Timber Task Force Report, Crimp to review. Weatherization analysis in Dot Lake. Wood waste to ethanol process Contact for South Tongass wood waste assessment update Contact for South Tongass wood waste assessment update Contact for South Tongass wood waste assessment update South Tongass wood waste assessment update Regional program update. Entech Inc. not returning calls. He will request funding for Copper Ctr. Incinerator returned. Points that must be addressed in Juneau WTE report before Division pays invoice Provided him with South Tongass wood waste assessment update study plan, potential contractors. Info request, biomass publications and projects. EPA grant for KPC pulp mill site, South Tongass wood waste update Aug 5 Aug 8 Aug 12 Aug 12, 18 Aug 13 Aug 18, 27 Aug 19 Aug 20 Aug 21 Aug 26 Dan Loitz Ketchikan Pulp Company Ketchikan Paul Mcintosh, Bob Simmons, Dave Arrowsmith U.S. Forest Service Ketchikan Ron Hansen Hansen Engineering Juneau Mark Wuitschick Copper River Native Association Copper Center Bert Maupin Anchorage Jim Kerstetter Washington State Univ. CES Olympia, WA Steve Stassel Alaska Energy Engineering Anchorage Hon. Ted Stevens U.S. Senate Hon. Frank Murkowski U.S. Senate Bill Miller Village of Dot Lake Serge Adamian Ecotrade Inc. Glendale, CA Megan Smith MSS Consultants Washington, D.C. Carl Olds University of Alaska Anchorage Craig Chase Cody, WY Laurie Owen Alaska Industrial Resources, Anchorage South Tongass wood waste update, status of hog fuel-fired power at pulp mill, volumes and costs. Status of Tongass land use plan implementation, USFS activities, South Tongass wood waste update, logging /transportation costs. Juneau WTE report comments. He has de-obligated $40,000 budget for Copper Center incinerator. Info request, wood-fired boilers, sawdust combustion. PNA RBEP miscellaneous. Arrangements for Dot Lake Boiler components Request for continued support for regional biomass program Request for continued support for regional biomass program Construction progress on Dot Lake Boiler Interior Alaska biomass power feasibility, review of draft Markets for ethanol, planned trip to Alaska Sawmill survey progress. Regional program update. Info request, status of planned Pt. McKenzie boilers. Aug 28 September Sept 2 Sept 2, 8 Sept 5 Sept 8 Sept 8, 29 Sept 10, 24 Sept 11 Sept 11, 16, 18 W.R. Tonsgard Channel Sanitation Juneau Jamie Kenworthy Alaska Science and Technology Foundation Anchorage Janet Anderson USDoE Washington, D.C. Sue Levanna, Ken Skog USFS Forest Products Lab Madison, WI Ron Hansen Hansen Engineering Juneau Mark Yancey, NREL, Golden, CO Megan Smith, Washington, D.C. Maureen Conroy Canadian Forest Service Sault Ste. Marie, Ontario Carl Propes MTNT Ltd. McGrath Steve Stassel Alaska Energy Engineering Anchorage Gary Moore Tanana Chiefs Conference Fairbanks Darren Schmidt RTI Research Triangle Park, NC Dave Wallingford, Martha Welbourne Division of Forestry Anchorage Jim Strandberg Strandberg Engineering Anchorage Rick Harris Sealaska Corp. Juneau Comments on final draft Juneau WTE report. Remote energy project initiative in Alaska. Remote energy project initiative in Alaska. Questions on findings and assumptions for FPL report regarding wood feedstock available for ethanol in Southeast Juneau WTE report revisions, Juneau incinerator to rebuild ESP, interest in absorption refrigeration for cold storage. Progress on Ketchikan ethanol feasibility assessment. Program for rural Canadian wood-fired district heating projects. Marketing study for region’s hardwoods. Dot Lake Boiler schedule, start-up details. Continued funding for Interior Alaska biomass power feasibility Wood gasification project, potential application in Seldovia Forest Practices Act implications of increased fuelwood harvest in McGrath. McGrath biomass/waste heat project, fuel oil cost and usage South Tongass wood waste update timing, content. Sugar content in Alaska wood, grant to Sealaska. 10 Sept 12 Sept 12, 16, 18 Sept 12, 24 Sept 16 Sept 16, 26 Sept 24 Sept 25 Sept 26 Sept 29 October Oct 1 Bill Beebe Division of Forestry McGrath Bob Supernaw Delta Junction Charlie Nash Forestry consultant Big Lake Serge Adamian Ecotrade Inc. Glendale, CA Steve Schlecht Liberty Alaska Plumbing Anchorage John Bowler Ketchikan Gateway Borough, Ketchikan Bill Miller Village of Dot Lake Jeff James, Craig Chase USDoE Seattle, WA Martin Lunde Dectra Engineering St. Paul, MN Jim Dickison Koncor Forest Products Tacoma, WA Brian Sykes Canadian Forest Service Sault Ste. Marie, Ontario Dan Allen Copper Center Alexi Hill University of Alaska Anchorage Dan Driscoll Rochester-Midland Tukwila, WA Bob Grimm Alaska Power and Telephone Silvicultural methods for fuelwood management near McGrath. Info request, pelletization, newsletter. South Tongass wood waste update, progress, Coordination between McGrath biomass/waste heat and Interior Alaska biomass power feasibility work. Dot Lake boiler system parts South Tongass wood waste update progress, EPA grant for pulp mill use study. Dot Lake boiler administration, budget items, welder, insulation. Regional projects Freight logistics, boiler to Alaska Info request, hog fuel-fired power feasibility. Interested in developing sawmill in Southcentral Alaska. Wood-fired district heating systems in remote portions of Canada. Welding work on Dot Lake boiler Schedule for sawmill survey. Database complete 11/30. Water treatment chemicals, Dot Lake boiler Flywheel on Viking Sawmill chipper avoids load spikes 11 Oct 1, 2, 7, 14, 16, 24 Oct 2 Oct 2, 14 Oct 2, 7 Oct 8, 24, 28 Oct 9 Oct 10 Oct 13 Oct 16 Oct 17 Port Townsend, WA Vonnie Lynden Transport Anchorage Karen Greybar Electrical Anchorage Tom Steelfab Anchorage Bill Miller Village of Dot Lake Ameridex Heat Exchangers Cartersville, GA Martin Lunde Dectra Engineering St. Paul, MN Jim Strandberg Strandberg Engineering Anchorage Charlie Nash Forestry consultant Big Lake David Stoneburg Ontario, OR Steve Stassel Alaska Energy Engineering Anchorage Craig Chase Cody, WY Ron Hansen Hansen Engineering Juneau Mark Plimpton USDA Rural Development Palmer Darren Schmidt RTI Research Triangle Pk., NC Serge Adamian Ecotrade Inc. Glendale, CA Dot Lake boiler freight logistics. Aquastat for Dot Lake boiler Dot Lake boiler, misc steel pieces Dot Lake boiler freight logistics, construction progress/questions, water test. Heat exchanger handling. Dot lake boiler pipe connections, safety listing, opening on wood frame module, fuel loading. McGrath district heat system pipe in ground, tested. Project cost South Tongass wood waste update status, sawmill in Nenana Info request, farm methane digesters. Dot Lake boiler construction details Regional program budget. Error in Juneau WTE needs correction Info request, current projects. Info request, contacts for wood waste source and energy market in Southeast. Interior Alaska biomass power feasibility status, continued funding 12 Oct 22 Oct 24 Oct 27 Oct 28 November Nov 4 Nov 6 Nov 7 Nov 11 Gary Moore Tanana Chiefs Conference Fairbanks Carl Propes MTNT Ltd. McGrath John Bruns Haida Corporation Hydaburg Marvin Yoder City of Galena Galena John Strachan Sandia National Lab Albuquerque, NM Janet Anderson USDoE Washington, DC Frank Williams University of Alaska Fairbanks Vern Neitzer Alaska Power and Telephone Port Townsend, WA Frank Muncy USDA Rural Development Palmer Mike Jones UNDEERC, Grand Fks, ND Jim Strandberg, Carl Propes, MTNT Ltd., McGrath Dan Allen Copper Center Jamie Kenworthy, ASTF Frank Muncy, Univ. Alaska Allen Hoffman, Janet Anderson, Sig Brownish, Paul Grabowski, Tom Holme USDoE Gary Moore, TCC Serge Adamian, Ecotrade John Strachan, SNL Carl Propes, MTNT Jim Strandberg, PE Funding for biomass projects. McGrath biomass/waste heat project. South Tongass wood waste update Info request, potential refurbishment of incinerator and paper-to-heat. Interior Alaska biomass power feasibility, SNL interest in small biomass power. Remote power initiative, finance options. Remote power initiative Viking sawmill connection to Prince of Wales grid, interest in battery storage. Info request, project updates, newsletter. Possible funding for projects. Potential support from coal program for McGrath biomass/waste heat project. Scheduling for Dot Lake welding. Remote power initiative, biomass and other renewable energy alternatives for off-grid application. Conference to resolve direction of thermal / power project in McGrath. Formulate cogen, district heating system route alternatives. 13 Nov 12 Nov 14 Nov 17 Nov 20 Nov 21 Nov 24 Nov 25 December Dec 1 Gary Elliot, IAE Bill Miller Village of Dot Lake Robert Deslauriers Ascot, Quebec Glen Holmquist Idaho National EE Lab Idaho Falls, ID Forest Products Advisory Committee Alaska Science and Technology Foundation Anchorage Ken Shrader Wyoming DEC Cheyenne, WY Serge Adamian Ecotrade Inc. Glendale, CA Forest Products workshop Alaska Coop Ext. Anchorage Brad Chiptec Burlington, VT Paul Klimas, John Strachan Sandia National Lab Albuquerque, NM Craig Chase Cody, WY Terry Brady Husky Wood Products Anchorage Bill Cheeseman Channel Sanitation Juneau Jill Smythe USDA Rural Development Palmer Construction progress Info request, densified wood. Info request, contacts at University of Alaska. Thermoelectric technology proposal. Update of forest product market assessment, lumber grading training project, sawmill technology assistance project. Info request, Skagway incinerator. Beloruss biomass power project Lumber milling and drying workshop. Contacts with mill owners regarding wood waste, wood-fired dry kilns. Small chip-fired gasifiers. Support for Interior Alaska biomass power feasibility. Ethanol, liquid biofuels. Info request, Tanana Valley timber inventory, allowable cut. Contact for Consumat incinerators Rural renewable energy program 14 Dec 2, 4, 10, 17, 22 Dec 3 Dec 4 Dec 4, 18 Dec 8 Dec 11 Dec 12, 18 Dec 15 Dec 17 Ben Hoffman Copper Center Charlie Nash Forestry consultant Big Lake Benjamin Ziph, Bill McKeough Stirling Thermal Motors Ann Arbor, MI Neill Lane Sunpower Inc. Athens, OH Terry Gunnell, Jr. Sylva Energy Systems Thunder Bay, Ontario Don Skinner, Linda Zaugg. Elaine Floyd Department of Corrections Anchorage William Quam Dept. Corrections, ACI Anchorage Bill Miller Village of Dot Lake Rick Harris, Sealaska Corporation Juneau Norman Hinman, Mark Yancey, NREL, CO Bob Loescher, Rick Harris Sealaska Corporation Megan Smith, Wash. DC Dan Allen Copper Center Serge Adamian Ecotrade Inc. Glendale, CA Steve Stassel Alaska Energy Engineering Anchorage Bob Lee Consumat Systems Richmond, VA Jim Kerstetter Washington Coop. Extension, Olympia, WA Info request. wood boilers and cogeneration. South Tongass wood waste update findings, schedule. Abstract for Renewable Energy Technologies in Cold Climates '98. Update on wood gasifier-Stirling engine wood-fired power device. Interest in demonstration projects in Alaska and elsewhere. Update on wood-fired Stirling engine genset development. Company has stopped making wood-fired boilers Info request, wood -fired boiler system for Pt. McKenzie. Sutton wood-fired boiler is not being used. Greenhouse has been removed. Division will remove it if not being used. Submitting request for bid for wood supply. Electrical/plumbing work. South Tongass wood waste update, project organization and schedule Dennis Meiners from Division attended briefing of lignocellulosic ethanol process at Sealaska Corp. in Juneau. Plumbing and electrical questions for Dot Lake boiler. Abstract for Renewable Energy Technologies in Cold Climates '98 (RETCC)--Interior Alaska biomass power feasibility Questions about piping connections, Dot Lake boiler How to assess shape of C225 incinerator at Galena Air Base. Upcoming meeting, landfill gas, ethanol study in Southeast 15 Dec 18 Dec 22 Dec 23 Dec 31 Society of American Foresters Anchorage Ron Raymer Public Works Dept. Kodiak Borough, Kodiak Jim Dickinson Koncor Forest Products Tacoma, WA Patricia Solar Energy Society of Canada, Ottawa, Ontario Jamie Kenworthy Alaska Science and Technology Foundation Anchorage Les Fortune Division of Forestry Fairbanks Brian Gray, PE Anchorage Ed Lynden Freight Anchorage Presentation of results of study on bark beetle impact on forest growth and mortality. Potential for waste paper and hog fuel-fired power. Solid waste management planning, tip fees. Potential sawmill in Southcentral Alaska. Sent abstract for RETCC Potential sawmill in Southcentral Alaska, schedule meeting on. Timber sale politics near Nenana Anvik has moved power house. Potential for waste heat system installation. Water treatment chemicals to Fairbanks. 16 APPENDIX B Juneau WTE Quarterly Reports Hansen Engineering Ronald G. Hansen, PE. 4117 Birch Lane Juneau, Alaska 99801 Phone (907) 789-9167 September 17, 1997 Dept. of Community and Regional Affairs Division of Energy 333 West 4th Ave., Suite 220 Anchorage, AK 99501-2341 ATTN: Mary Judd, Grants Administrator RE: Quarterly Report - Grant Agreement # 2165078 Juneau Waste to Energy Feasibility Assessment Dear Ms. Judd: In accordance with the Grant Agreement we are submitting the final quarterly progress report for the status of the project as of the end of the third quarter in 1997 as of September 19, 1997. The following activities were conducted by the contractor and others in relation to this project. June 1997: The contractor prepared a draft report for review by the client and the Division of Energy personnel. Comments were provided to the contractor in a personal meeting with Mr. Ward Sanders in Juneau. July & August 1997: The contractor revised the draft report and presented a final report to Channel Landfill, Inc. dated 8/11/97. Subsequent to that time an evaluation of this final report was prepared by Division of Energy personnel and subsequently and the contractor made several corrections which were incorporated into the final report. The approval for the final report was transmitted to the contractor on 9/17/97 A payment request was presented by the contractor. Channel Landfill, Inc. will pay the contractor and request complete payment of the two grants provided to Channel Landfill, Inc. for this study. Sincerely, Ronald G. Hansen, P.E. Project Manager c/ | WR. Tonsgard, Jr., Channel Landfill, Inc. Frank Guertin, Channel Landfill, Inc. Peter Crimp, Alaska Division of Energy RGH/kab ALASICA DIVISION OF Volume 1, Issue 1 Department of Community & Regional Affairs November 1997 DCRA’s Division of Energy publishes quarterly newsletter ITH THIS ISSUE, the Division of Energy initiates its quarterly newsletter, Energy Update. It is an- ticipated the newsletter will be pub- lished in January, April, July and Ociober. “The purpose of Energy Update, as the name indicates, will be to keep Alaskans informed on the projects and other activities that bear on the Division of Energy’s development goals, particularly in rural Alaska,” said Percy Frisby, Director of the Division. The Division is the link between the State Administration and about 200 rural communities regarding en- ergy and bulk fuel purchasing and storage needs. It is the lead State agency regarding energy programs and maintains ongoing contacts with the U.S. Department of Energy, Envi- ronmental Protection Agency and the U.S. Coast Guard. Frisby said the mission of the Di- vision is not well understood. “The Division of Energy is not a regulatory agency,” he said. “As our Mission Statement indicates, our job is to as- sist in the development of safe, reli- able and efficient energy systems that are financially strong and environ- mentally responsive.” The Division’s mission is ad- dressed primarily through these pro- grams: Bulk Fuel Upgrades/Repairs, In This Issue Wind Turbine Power New Tank Farms... Juneau Waste-to-Energy Bulk Fuel Assessments .. Energy Audits... Electrical Projects . Program Manager Cristina Klein. The Division’s Rebuild America Program held its Celebration Event to promote the program on Sept. 3. Featured speakers included Sam Cotton, Chairman of the Alaska Public Utilities Commission (pictured above on the energy bike); Alaska State Sen. Robin Taylor; Carol Gates, the Seattle Liaison for the U.S. Department of Energy; Division Director Percy Frisby; Dan Fauske, Chief Executive Officer of Alaska Housing and Finance Corp.; Executive Director Jamie Kenworthy of the Alaska Science and Technology Foundation; Executive Director Eric Yould of the Alaska Rural Electric Cooperative Association; and Rebuild America Alaska Rural Power System Upgrades (RPSU), Alternative Energy, Power Cost Equalization (PCE), and two active loan funds -- the Power Project Fund (PPF) and the Bulk Fuel Re- volving Loan Fund (BFRLF). Bulk Fuel — Most rural tank farms do not meet minimum state and federal requirements and often pre- sent serious health and safety hazards to residents. Bulk fuel upgrades and repairs provide for assessment of above-ground bulk fuel storage facili- ties in rural communities; emergency repairs to tank farms and piping sys- tems; and comprehensive upgrades and consolidations of fuel storage fa- cilities. RPSU — which also includes emergency response — provides for the repair and/or upgrading of rural power systems to meet applicable state and federal codes and regula- tions. This can include powerhouses and diesel generator sets, transmis- sion and distribution lines, waste heat capture, technical assistance and training. Alternative Energy Please see Pages 6-7 PCE — The Division’s largest program — affects virtually every resident in rural Alaska. PCE at- tempts to equalize electricity costs in (Continued on page 2) Page 6, Energy Update, November 1997 Study says time not ripe for waste conversion he municipal solid waste opera- tor for Juneau, Channel Landfill Inc., recently completed a study which assessed options for convert- ing the increasing quantities of garbage generated by the City and Borough of Juneau into steam and electrical power. Results indicate current energy markets do not justify energy recov- ery investments because of the inex- pensive avoided cost of hydropower and lack of nearby buyers of heat. However, these conditions may change, says the study, and Channel should be ready to exploit opportuni- ties as they arise. Currently the incinerator fa- cility is at capacity, burning about 22,000 tons of garbage per year. This is the energy equivalent of 1 million gallons of diesel. Another 2,000 tons of garbage must be “bypassed” -- buried in valuable land at the Lemon Creek industrial area. Over the next decade the amount of waste which must be landfilled is expected to triple (see graph). The landfill is projected to be full in 2012. In addition to energy recovery, the study assessed other options: & & 8 & Sie sy Si Sieiisiieiic 8 Tons per Year sa 8 a 2004 Juneau Waste-To-Energy Selected Altematives No new incinerator, mine landfill Add incinerator, no power generation Add incinerator, generate power to displace hydro (3.47 cents/kWh) Add incinerator, generate power (5.50 cents/kWh) Add incinerator, generate power to displace diesel (8.98 cents kWh) Net Present Value of Revenue (20 years) $o $1.5 million $6.6 million -$0.9 million $9.2 million -$0.8 million Capital Cost $9.2 million $9.2 million $1.6 million $3.2 million Assume tax-exempt debt at 6.5% for 20 years for improvements, landfill mining and reclamation, power cost esca- lation of 1.35% per year above inflation. Adding new incinerator requires pollution control equipment. e Adding a 50 ton-per-day Con- summiat unit to increase incineration capacity. e “Mining” previously buried waste to reclaim land, recover material for recycling and energy conversion, and reduce closure costs. © Upgrading air pollution control equipment to Best Achievable Control Technol- ogy standards, including dry lime injection, a baghouse, and con- tinuous emission monitoring. e Shipping garbage out to Lower 48 landfills. The study concludes that, for now, business as usual is the most 2008 2016 Year 2012 cost-effective. An important factor to consider will be requirements and permitting risk for landfill closure. An abrupt increase in demand on Juneau’s power grid, such as was expected from the A-J Mine, would outstrip hydro capacity and require diesel generation. In this case, high avoided costs of diesel power would make waste-to-energy attractive (see table). Revenue from power genera- tion would support pollution control improvements and land reclamation. Conducted by HGI of Seattle, the study was partially funded by the U.S. Department of Energy Regional Biomass Energy Program and the Di- vision of Energy. Bioenergy News Wondering where your copy of the Alaska Bioenergy News is? After 10 years and 38 issues the newsletter has been incorporated into Energy Update. We will con- tinue to present news and informa- tion regarding the use of wood, sawmill waste, garbage and peat for energy in the Update. We hope you like the new format. Calendar Biomass Energy: Dynamic Solu- tions to global Problems, Dec. 8-9, Washington, D.C. Sponsored by Na- tional BioEnergy Industries Associa- tion and the United BioEnergy Com- mercialization Association. Ph: 301- 621-8432 or 202-383-2540. Fax: 301-621-8997 or 202-383-2670. Kotzebue wind turbines Wind machines can support 20 homes Atlantic Orient Corp.’s AOC 15/50 wind turbine consists of three 15-meter rotors which produce 50 kilowatts at wind speeds of about 22 miles-per-hour. This output level is equivalent to the energy used by 20 homes in Kotzebue. Kotzebue has an annual average wind speed of about 13 mph with the strongest winds occurring during winter when turbine output is ex- pected to exceed 50 kilowatts. The main features of the AOC 15/50 are: e Turbine metallurgy selected for extended cold weather perfor- mance. e Blade pitch adjustable to higher densities of cold air. e Towers modified to accommo- date ice loading. e Gearbox and control system heaters were added. The turbines are small enough to be erected without out the use of heavy equipment, yet large enough for operation and maintenance costs to be proportional to larger machines. trio of 50 kilowatt utility grade wind turbines are generating electricity in Kotzebue as part of a demonstration project sponsored by Kotzebue Electric Association, Divi- sion of Energy and the U.S. National Renewable Energy Laboratory (NREL). The turbine test will serve as the foundation for evaluating and devel- oping wind energy systems for Alaska as well as serving as a labora- tory for training and developing the know-how needed to extend the ben- efits to other communities across Alaska. Kotzebue Electric and the Divi- sion began making plans to initiate a wind turbine demonstration project in 1994. The first step was to iden- tify, install and measure the perfor- mance of a utility-grade wind turbine appropriate for use in rural Alaska. Based on initial investments by the Division and KEA, additional funds were received from NERL to expand the test program from the current three machines to six next year. Kotzebue Electric, in anticipa- tion of future energy needs, has se- cured funding from the U.S. Depart- ment of Energy to expand the wind farm experiment beyond a test facil- Energy Update, November 1997, Page7 ""~ Wind turbines generate electricity for Kotzebue ity to a production capability of 2 megawatts. This should significantly reduce the utility's consumption of diesel fuel. The model AOC 15/50 turbines, installed last summer by KEA, are manufactured by the Atlantic Orient Corp., Norwich, VT, under NREL’s Advanced Wind Turbine program. Engineer for the project is Thompson Engineering of Anchorage. The AOC 15/50 is designed with special metal alloys and gearbox heaters to operate in extremely cold weather. The turbines have an ex- pected operational life of 20 years and should generate about 15,000 kilowatt hours per year. “At a time when all rural utilities in Alaska are concerned about the rising cost of diesel fuel and the pos- sible loss of power cost assistance, electricity generated by wind power is seen as a welcome and environ- mentally acceptable option,” said Di- vision Director Percy Frisby. Other than sorting out shipping, control and manufacturing concerns, the turbines appear to operate with little attention. KEA and Division personnel say they are looking for- ward to this winter to more fully assess the turbines’ cold weather ca- pabilities. Publications and Software The Federal Energy Management Program offers practical publications, software, and training in the area of energy efficiency and renewable energy. Topics include products, financing, operation and maintenance, and life-cycle costing. Contact Molly Dwyer at USDOE Seattle Office, 206-553-7837 or call 800-DOE-EERC. FEMP Web page http://www./eren.doe.gov/femp/. Mining the Urban Waste Stream for Energy: Options, Technological Limitations and Lessons from the Field reviews commercialized waste-to- energy technologies in use throughout the world. Available free from Winrock International Biomass Energy Systems Technology, 1611 N. Kent St., Suite 600, Rosslyn, VA 22209, ph: 703-525-9430. - Rural Alaska Natural Gas Study. Economics of developing natural gas for energy in rural Alaska. Copies available at cost. Contact, Rebecca Garrett, 907-269-4631 at the Division of Energy, 333 West 4” Ave., Anchorage, AK 99501. Wood Energy in the United States. Status, technology, economics, and policy issues associated with wood energy with an emphasis on gasification. Contact SERBEP, PO Box 1010, CEB 3A, Muscle Shoals, AL 35662, ph: 205- 386-3086. APPENDIX D Letter to Alaska Congressional Delegation STATE OF ALASKA / sow mows coveno DEPARTMENT OF COMMUNITY AND / 399 WEST FOURTH AVE., SUITE 220 REGIONAL AFFAIRS i ANCHORAGE, ALASKA 99501-2341 j PHONE: (907) 269-4500 ! DIRECTOR'S FAX: (907) 269-4645 DIVISION OF ENERGY ENGINEERING FAX: (907) 269-4685 August 13, 1997 The Honorable Ted Stevens United States Senate 522 Hart Building Washington, DC 20510-0201 Subject: Regional Biomass Energy Program Funding Dear Senator Stevens: | am writing to request your continued support of the U.S. Department of Energy's Regional Biomass Energy Program. The modestly funded program promotes biomass (wood, garbage, and agricultural waste) as a practical, cost- effective source of energy and processed fuel. Funds for Alaska are passed through the Pacific Northwest and Alaska Regional Biomass Energy Program, one of five regional programs. In Alaska, the biomass program is administered by the Division of Energy. Our focus has been in expanding the use of wood and garbage for power production and space heating, particularly in rural areas, where energy costs are high and waste disposal is often a problem. Earlier this summer | provided Jeff Staser of your office with a summary of current biomass energy projects. More briefly these include: e South Tongass Wood Waste. Assess availability and delivered cost of low- grade wood and wood waste for production of ethanol or steam for lumber drying or power. * Rural Fuelwood Substitution. Wood-fired boiler project in Dot Lake will demonstrate a modern, cost-effective system with widespread applicability in rural areas. * Juneau Waste-to-Energy. Analyze feasibility of generating steam for power and heat at existing incineration facility. The Honorable Ted Stevens August 13, 1997 Page 2 e Interior Alaska Wood-fired Power. Assess feasibility of small power systems fueled by local wood supplies. We also provide technical and business development assistance to companies and organizations planning to initiate biomass energy projects. The Division of Energy receives $50,000 per year for the biomass program from the U.S. Department of Energy and has been successful in receiving additional funds for special projects, which are available on a competitive basis. We were disappointed to learn that the Department of Energy's fiscal year 1999 budget for the regional biomass energy program is being considered for an overall 50% reduction, from $4 million to $2 million. As | understand it, funding for the regional programs now comes through the USDOE’s offices of Utility Technology and Transportation Technology, each at $2 million. The current proposal would wipe out Utility Technology funding for the regional program. | would appreciate your support to ensure that funding for the Regional Biomass Energy Program remains at least at the current level of $4 million and that accompanying language allows the most flexible use of these funds for biomass energy purposes. The Regional Biomass Energy Program is a valuable asset to the Division in addressing opportunities for rural energy and economic development. Your continuing support helps to ensure that we can maintain our efforts in this area. Sincerely, ay ts Percy Frisby Director cc: Martha Stewart, Office of the Governor STATE OF ALASIA / mrsems mm ° DEPARTMENT OF COMMUNITY AND 399 WEST FOURTH AVE,, SUITE 220 ANCHORAGE, ALASKA 99501-2341 REGIONAL AFFAIRS ANCHO meine DIRECTOR'S FAX: 17) 269-4645 DIVISION OF ENERGY ENGINEERING FAX: (907) 269-4685 August 13, 1997 The Honorable Frank Murkowski United States Senate 522 Hart Building Washington, DC 20510-0201 Subject: Regional Biomass Energy Program Funding Dear Senator Murkowski: | am writing to request your continued support of the U.S. Department of Energy's Regional Biomass Energy Program. The modestly funded program promotes biomass (wood, garbage, and agricultural waste) as a practical, cost- effective source of energy and processed fuel. Funds for Alaska are passed through the Pacific Northwest and Alaska Regional Biomass Energy Program, one of five regional programs. In Alaska, the biomass program is administered by the Division of Energy. Our focus has been in expanding the use of wood and garbage for power production and space heating, particularly in rural areas, where energy costs are high and waste disposal is often a problem. Briefly these include: » South Tongass Wood Waste. Assess availability and delivered cost of low- grade wood and wood waste for production of ethanol or steam for lumber drying or power. (We understand you have requested related work on residue availability from the USFS Forest Products Lab; this work compliments the FPL analysis nicely.) « Rural Fuelwood Substitution. Wood-fired boiler project in Dot Lake will demonstrate a modem, cost-effective system with widespread applicability in tural areas. » Juneau Waste-to-Energy. Analyze feasibility of generating steam for power and heat at existing incineration facility. & printed on fecycied paper oy C.D. The Honorable Frank Murkowski August 13, 1997 Page 2 e Interior Alaska Wood-fired Power. Assess feasibility of small power systems fueled by local wood supplies. We also provide technical and business development assistance to companies and organizations planning to initiate biomass energy projects. The Division of Energy receives $50,000 per year for the biomass program from the U.S. Department of Energy and has been successful in receiving additional funds for special projects, which are available on a competitive basis. We were disappointed to learn that the Department of Energy's fiscal year 1999 budget for the regional biomass energy program is being considered for an overall 50% reduction, from $4 million to $2 million. As | understand it, funding for the regional programs now comes through the USDOE’s offices of Utility Technology and Transportation Technology, each at $2 million. The current proposal would wipe out Utility Technology funding for the regional program. | would appreciate your support to ensure that funding for the Regional Biomass Energy Program remains at least at the current level of $4 million and that accompanying language allows the most flexible use of these funds for biomass energy purposes. The Regional Biomass Energy Program is a valuable asset to the Division in addressing opportunities for rural energy and economic development. Your continuing support helps to ensure that we can maintain our efforts in this area. Sincerely, Tsk Percy Frisby Director cc: Martha Stewart, Office of the Governor * FRANK H. MURKOWSKI, Alaska, Charman PETE V. DOMENICI, New Mexico ALE BUMPERS, Arkansas DON NICKLES, Okiahorna WENDELL H. FORD, Kentucky LARRY E. CRAIG, idaho JEFF BINGAMAN, New Mexico BEN NIGHTHORSE CAMPBELL, Colorado AMIEL K. AKAKA, Hawai CRAIG THOMAS, Wyoming BYRON L DORGAN, North Dakota - JON KYL, Arizona, BOB GRAHAM, Florida GORDON H. SMITH, Oregon Tid JOHNSON, South Dakota m qd e SLADE GORTON, Washington MARY L LANORIEU, Louisiana CONRAD BURNS, Montane COMMITTEE ON ~ GREGG D. RENKES. STAFF DIRECTOR NATURAL RESOUR' é ED GARY G. ELLSWORTH. CHIEF COUNSEL oom ESOURCES RE CEIV THOMAS B. WILLIAMS, STAFF DIRECTOR FOR THE MINORITY WASHINGTON, DC 20510-6150 ‘SAM E. FOWLER, CHIEF COUNSEL FOR THE MINORITY 14 1997 September 30, 1997 ocr DIVISION OF ENERGY Mr. Percy Frisby, Director Department of Community and Regional Affairs State of Alaska 333 West Fourth Ave. Suite 220 Anchorage, Alaska 99501 Dear Percy: Thank you for your recent letter regarding DOE's regional biomass energy program. I agree with you that it is a worthwhile program and it should be maintained. At the Energy and Natural Resource Committee's September 18 hearing on the nomination of Dr. Emest Moniz to be Under Secretary of the Department of Energy I raised this issue. For your information, I have enclosed a copy of my written question to Dr. Moniz as well as his response. I find it encouraging. Again, thank you for bringing this matter to my attention. Sincerely, encl. (a. Rely, Tn QUESTIONS FROM CHAIRMAN MURKOWSKI FOR ERNEST MONIZ Biomass Energy Program Q3. A3. DOE’s regional biomass energy program promotes this form of energy as a practical, cost-effective source of energy and processed fuel. I am disappointed to learn that DOE’s funding for this program is being reduced dramatically. I support continued funding of this program at least to the current level. I also would like to allow DOE the most flexible use of these funds for biomass energy purposes. What are your views? I understand that the Regional Biomass Energy Program plays a significant role in the deployment of biomass-based technologies. The Program, through its local and regional contacts, transfers current and reliable information on biomass development activities to potential users. This activity provides the necessary foundation for consumers to make informed choices. DOE’s funding request for the regional biomass energy program for Fiscal Year 1998 is $3.0 million, the same level requested in FY97. I would support continued funding of this program and believe it needs to be a critical part of our R&D portfolio. Use of dedicated biomass resources for energy production will provide a CO2-neutral means of generating electricity and transportation fuels, a source of revenue for economic development of rural areas, and the basis for a large export market for modular biomass-to-energy systems. It can also help mitigate environmental problems, and enhance our energy security. More broadly, if confirmed, I would seek to strengthen collaboration with the APPENDIX E Current Industry-Related News Articles 4 <Poom pure prvoqpreo ‘aded uvaja yes 04 queyoduit Ayear 83], “Pres HeeIS «Ys ayy Sureredas ynoge snoruelos -uoo Ajjear st Apoqd1aA9 4ON,, ‘aut ul ysnf 41 paaoulad Jax1OM V “JopuLa ayy 10j pepeey seded pue preogpseo ay} Suoure yeysyueso JoaIs yout-9z B puNoy sexIOM eB ‘pres 39001¢ ‘gseo ouo UT eee at eer Beas S3ach ane iu eg biy, Bee Sas burning pellets. fuel- ent marks the first of its kind bet- The agreem the utility’s paper waste into ‘reded oy} YI ur poxtur 8uryjed payout Aq posneo useq aavy Ajay] youl ss0y], ‘yoqureyo = Surpulis 8 ,sez1jaq}ed ay} Ul peyeys yey} Seu JOUTUL sary} paouetiedxe sey UuOs[oly ‘syjuour qyste yey OY UT ,(o8e48 uns-nof-a10Joq-FTeM ay} UT BPUTY O1,9M,, “PIES 1192S «yranT Ino oy dn ynoqe qsnf sn ayer [LgBy) ‘YBnos0g oy} Woy 403 am yonu Moy UO Surpuedeq,, “Bute eurty ey} 10} syupuiee3e aioul jNo yeos [IA Sseq ey) serq qanaa afl 12 Ht GTe a ad Eg Be ne Hi HG He 2B pet a ss ; TH ee mr ee vy Giga GE ist emu ae jad gle gteag lta tguaay ie te BEE s}qnop oy pres ‘dnoi3 3ury0m Surpofoe1 s8,uostaIg jo agreyo ur ‘Heang quekig 10D “IT ‘oydtsy [Tm 0H -onpoid yey} ‘ABM 8,U08[aly reded ajsem Surpues s71eyS [[YPUe] ay} euQ “"YyuoUL Yyowe euTYyoRUt yeqied sy ysnory} eysem soded Jo Su0} OTT Jnoge sunI wos[ery +s}s00 AS10ue UO UMOP 3nd Surdjey quejd somod 8,aseq ay} 78 pound 1-q eBeg woy penunuCd Eielson, borough “) pellets are then mixed with‘¢ and burned at Eielson’s power plant, lowering the base’s energy costs. : Eielson first ‘pitched its pro- posal to the borough a year ago as an even ton-for-ton swap. This rank. I “It’s a significantly better deal,” Sonafrank said. “It was worth the wait, as it turns out.” Continued from Page B14 review the proposal before the as- sembly takes up the-issue at its meeting Thursday. On the agenda is an ordinance ear- marking $81,240 for a new con- veyer belt the borough would have to purchase to load waste- paper into Eielson trucks. The six-month pilot program would start in January. The lost tipping fee income during that time, at $50 per ton, would be $32,500. A landfill worker would have to sort and load the waste paper, costing about $10,000 over the six-month period. The mayor and assembly fac- tored in the estimated $42,500 cost to the borough for such a pilot program in its current budget. Future budgets would have to factor in costs for the program over a full year. Supporters say this is the bo- rough’s chance to determine if re- cycling wastepaper into fuel pellets is viable. The pilot project would cost coms less than if the borough built its own pelle- tizing facility;~estimated at $5 million. Turning waste into fuel pellets is among several goals listed in the borough’s Solid Waste Ma- nagement Plan, produced in 1994. The plan called for pelle tizing by 1998. Wastepaper makes up 40 to 50 percent of the 80,000 tons of waste brought to the South Cushman landfill annually. Cut- ting down on trash buried there oo help extend the landfill’s fe. Lt. Col. Bryant Streett is in charge of Eielson’s recycling working group. While Eielson would have preferred an even ton-for-ton swap, the two-for-one fo would still work, Streett “We needed some incentive,” Streett said. “It’s an expensive machine. As we run more stuff through it, we’re going to have bras breakdowns and things like t.” While Eielson gets a benefit from the wastepaper by turning it into fuel, operating costs for break-even prospect, he said. Where the base would really see savings is in the reduced tipping fee, Streett said. Eielson runs es 110 tons of paper waste through its pellet machine each month but has ca- pacity to handle much more. Ac- cepting the borough’s waste paper, at about 50 tons per week, would triple the current rate. Several matters must still be worked out, Streett said. For ins- tance, the base would prefer to make landfill runs four days a week, rather than the five out- lined in the draft agreement. The tonnage would remain the same. Paes 7575 EPA would put area in Public comment sought on air quality classification By KATE RIPLEY Staff Writer The U.S. Environmental Pro- tection Agency wants to hear what Fairbanksans think about moving the borough into the worst of all possible classifica- tions for carbon monoxide pol- lution: a ‘‘serious’’ non- attainment area. It’s the same label reserved for places like Los Angeles. Cur- rently, Fairbanks is considered a ‘‘moderate’’ non-attainment area. The EPA will accept public comment on its reclassification plan from today through Sept. 8. “Tt is a serious problem, be- cause it is a bump up,” Assem- blyman Hank Bartos said Thursday. ‘The problem is not going to go away and we need to address it.” Besides giving Fairbanks the grave moniker, the “serious” classification gives Fairbanks more time to come into compli- ance with the air quality stand- ards under the federal Clean Air Act. As a moderate offender, Fair- banks originally was required to meet the CO standard of 9 parts per million by Dec. 31, 1995. Asa serious offender, Fairbanks would have until Dec. 31, 2000. Sen. Ted Stevens helped estab- lish a temporary stay on the 1995 deadline, but that expired last fall. The possibility of a bump up has existed since then. Meanwhile, Fairbanks ex- ceeded the national standard three times in 1995, once in 1996 and twice so far in 1997. With the reclassification, the state would have to work with borough officials to come up with a compliance plan. Exactly what that plan would entail—and whether oxygenated fuel would be part of it—is a big unknown, said Assemblyman Hank Hove. “Until we see the details, ‘serious’ category we’re looking at a boogeyman,” Hove said. According to the EPA, the state’s program must include an analysis showing that chosen controls will achieve the standard; a forecast of vehicle miles traveled for each year prior to 2000; a contingency plan if the standard is violated; and, the de- tails Hove was talking about, the so-called “transportation control measures and strategies.” The EPA several years ago re- quired Fairbanks drivers to use oxygenated fuels, a mandate met with uproar by residents who claimed the sweet-smelling fuel made them ill. The EPA then backed off on oxyfuel. Currently, CC emissions are kept in check through a vehicle inspection and maintenance, or I/M, program. The program re- quires vehicles to submit to bien- nial tailpipe emissions tests. Any necessary repairs must be made prior to the issuance of I/M certif- icates, which cost $20 apiece. Tests themselves range from about $25 to $45. To receive a copy of the pro- posal, contact John Pavitt with EPA in Anchorage at (907) 271- 3688; or via e-mail at pavitt.joh- n@epamail.epa.gov. Oral com- ments may be made by calling the Fairbanks Air Quality Com- ment Line during normal busi- ness hours at (800) 424-4372, ext. 1388. Written comments must be postmarked on or before Sept. 8 . and addressed to: Ms. Montel.: Livingston, EPA Region 10, 1200 Sixth Ave., Seattle, Wa.98101. | Seley project { { project near Ketchikan on Wednesda} my dream for a long time,” Seley said is perfect.’ . | come true. Williams attended the event. } Seley first thanked his wife, fam- } ily and crew for years of support and { applauded the efforts and support from the Knowles administration, the National Bank of Alaska, local officials, the Ketchikan Gateway Borough Assembly, the Southeast Alaska Conservation Council and the Alaska Congressional Delegation “You represent an Alaskan indus { that is on the rebound,” Knowles Seley."Whata great message itis to Alaskans that we're able to partici- ¥ pate In a good news message.” i” Knowles said the Seley project { became areality because it wasin the right place at the right time and pushed along with help from the right people fey said the Seley Log and Lum- ber Company will place its emphasis on value-added lumber products. An estimated 80 percent of the timber products will be sold in Alaska and the Pacific Northwest, he said. The 4 other 20 percent will go to Japan and other places around the world, he said. With the ribbon cutting behind them, Seley Log and Lumber Com- pany will continue full-scale devel- opment of the 32-plus acre property, said Seley. Filling in the shoreline with rock and cutting back into the property where the mill will stand are the next steps, he said. The company will dredge about 450,000 cubic yards of } fill to create a harbor and construct a { bare ramp and mooring float and Two breakwaters, one rock and ne floating, will protect the harbor. gt See ‘Seley project,’ page A-3 * Ribbon chop opens mill project , at Lewis Reef By MIKE McNULTY Daily News Staff Writer Alaska Gov. Tony Knowles swung an ax to cut the ribbon for the Lewis Reef green light to develop a high value-added lumber mill on Gravina Island. More than 50 people were escorted to the Lewis Reef site by landing craft to watch the ground breaking and more significantly to witness one man’s vision “The opportunity to design and complete « manufacturing facility bas been *We think this new facility at Monday's event officially marks the end of several years of efforts todevelop the area located on state land north of the Ketchikan International Airport. - : Along with Knowles, state and local officials including Commissioner of Community leaders along with Gov. Ton} Natural Resources John Shively, State Forester Jeff Jahnke and Rep. Bill The event gives Steve Seley the official wis Reef i Knowles, disembark Wednesday morning from Steve Seley's ter it docks at the Lewis Reef mill site. Staff photos by Hall Anderson landing craft Red Dog A log sorting yard and scaling and decking areas will be installed and the remanufacturing facility will follow, he said. “We hope to cut our first board in November," Seley said. The final piece to ensure the project's success fell into place on July 10 when the U.S. Army Corps of Engineers ap- proved a permit to develop the wetlan property on Gravina Island The road was long and obstructed by loans, tax incentives, lease agreements and zoning changes but securing the corps permit finalized the uncertain outcome of Seley’s dream Upon completion, the company will focus on red and yellow cedar, with plans to use about 24 million board feet of timber a year, Seley told the Daily News in July. [© OC Wednesday, no winners Lotto: 3-7-8- 17-22-27 Quinto: Six of spades, two of spades, two of hearts, three of diamonds, two of clubs Ketchikan Pulp Co. acting plant manager Dick Leary and Steve Seley, far right, hold down the ribbon as Gov. Tony Knowles chops the ribbon during a groundbreaking ceremony Wednesday at Seley’s new value-added mill site on Gravina Island. Continued from page A-! At first, the output will be in a rough, een-board form but by next spring Sey hopes to install a dry kiln and planer, and be producing finished dried products, he said. The company plans to put 60 people to work if the mill is running at ful! capacity. But the mill is designed rate with a smaller crew if the tim ber market or log supply requires them to scale back, said Seley. Products planned by the company will target in part secondary and tertiary manufacturing markets such as furni ture making, as well as home projec markets for items such as decking an: fencing, he said. As for log supply, the company ha: completed the Brown Mountain timbe' sale harvest, and will helicopter-log a ¢ million board feet sale starting thi month, said Seley. ‘The company wants to secure abou half of its timber through the state o Alaska. The Lewis Reef mill was motivate: by state legislation that allows the De partment of Natural Resources to sigi 10-year contracts for up to 10 millior board foot of timber per year with op erators willing to invest in high valuc added timber manufacturing. _ Logging company looking at Wrangell ~OWM sawmill \/ JUNEAU (AP) — A Jur logging company hopes to buy the Wrangell sawmill with the help of a $6 million state loan. Silver Bay Logging submitted a detailed business plan last week seek- ing the loan from the Alaska Industrial Development and Export Authority, said Bob Poe at AIDEA. ; Silver Bay wants to buy .r< mill site from Alaska Pulp Corp. and operate a timber sort yard. The new owner would run the sawmill itself cr lease it to tenants. Poe told the Tureau Eire. CACCUUVES al Ollwel Lay {cldscd Ww WS cuss their plans with the newspaper. Value-added companies — produc- ing items such as cedar shakes and shingles, and landscaping timbers — could lease space at the mill site, accord- ing to Poe. “'The idea is these companies could locate on the Wrangell sawmill and get the logs they need," he said. “It's almost like having a log supermarket down the street.” Wrangell residents are watching to see if Silver Bay gets financing for the plan, which could restore some of the 200-plus jobs lost when Alaska Pulp closed the mill in 1994. "I'm past the point of being cau- tiously optimistic,” said Scott Seabury, Wrangell's city manager." am optimis- tic." join in an “interest buy-down,’’ mean- ing it would pay off up to 2.5 percentage oints of the loan interest. “There's going to be a center for the remaining timber industry in Southeast and we as 4 community are doing our besttosee it'slocated herein Wrangell, bury said. SeANIDEA could buy down up to 1.5 additional percentage points on a loan with an 8.5 percent interest rate, Poe said. : ; Both buy-down plans hinge onjobs — the more jobs the project produces the eater the amount of interest the city and industrial authority would shoul- _ he said. — over Bay's operation would initially bring 36 to 40 jobs. The company also Juneau, to Wrangell, adding another eight to 10 jobs, according to Poe. ‘Other companies moving to the site are expected to bring 20 to 25 jobs within two or three years, for a total of to 75 jobs, he said. “PThe mull site, about six miles south of downtown Wrangell, includes 77 acres ka Pulp and 33 acres In owned by Alask gell Sawmill,” page A-2 Wrangell sawmill state tidelands leases. ———— Continued from pax. .. s. Silver Bay would get fi i on purchase price for the mill is equipment fom anctner ender tecaid, .75 million, with about $1.75 million They're a very strong financially going toward equipment at the site, Poe healthy company so they have lots of said. ways they could do this," he said. AIDEA financing for Wrangell mill conversion project Silver Bay Logging, Inc.’s plan to develop a new use for the closed Alaska Pulp Co. sawmill at Wrangell moveda step ahead with conceptual approval by Alaska Industrial Development and Export Authority’s board Sept. and equipment. The plan, whic’ calls for the authority to acquire the pro 30 of a plan to assist in the $7.75 million acquisition of property h still must be fully developed and approved by AIDEA’s board, perty and equipment from APC, then sell the equipment and rolling stock to Silver Bay for about $1.75 million. AIDEA would also give Silver Bay an incentive rate on its lease paymen' and particularly employment to the mill site. The company is t linked to the company’s meeting employment benchmarks, in “value-added” timber processing the company hopes to attract also talking with the City of Wrangell about financial assistance as well as property tax breaks and lower costs of power. Wrangell is anxious to help the project because the sawmill closure affected the local economy deeply. Silver Bay’s plan is to use the facility as a log sorting yard fo: Tegion; to attract wood products man establishing a wood chipping unit. In Silver Bay is a well established family- r several mill operators in the ufacturers who would buy wood and use the facility; and full operation, the facility would employ 25 to 30 people. owned firm with several integrated timber operations, including water transportation. The company is heavily engaged in helicopter logging. Timber industry — eyes mill revamp By Ingrid Martin Alaska Journal of Com: ye eports of the demise of Southeast’s timber industry are greatly exagger- ated, despite continuing environmen- tal and regulatory controversy. With the final revision of the Tongass Land Management Plan, only 267 million board feet of timber will be available annually, down from 420 million board feet in previous years. Nonetheless, Louisiana Pacific Corp., which earlier this year closed its pulp mill in Ketchikan putting hundreds out of work, has announced it is working with Sealaska Timber to deter- mine the feasibility of opening a veneer plant at the site. A decision is expected before Thanksgiving. The companies have been evaluating the con- cept for more than two months, to determine the marketability of the product, and whether sec- ondary products also should be produced in Ketchikan. The plant's size also has yet to be determined, but the intents that it would not be so largeas to interfere with development of other ventures within the facility. Whether the most recent TLMP timber al- lowance will be sufficient to sustain such a plant remains to be seen, according to Ketchikan Pulp Co. general manager Richard Leary. Timber also would be used from Sealaska land and state land managed by the Department of Natural Resources or state Mental Health Trust. Southeast timber industry down, not out Pn Ce oe board feet of Southeast timber from the state for $42,610, in one of several deals intended to help shore up the local economy. The Department of Natural Resources Division of Forestry issued the contract to the company, which will selectively cut and remove a variety of tree species from the south end of Revillagigedo Island in George Inlet. The trees will be transported from the sale area by helicopter to the lumber yard. The contract sale of spruce, hemlock, red cedar and Alaska yellow cedar sawlogs to Herring Bay Lumber requires domestic pro- cessing of the spruce and hemlock sawlogs. Herring Bay Lumber plans to make dimen- sional lumber in-state with the timber purchased. Atthe same time, the future of the Ketchikan Pulp Co. mill site may become clearer with the help of a $200,000 grant. Ketchikan Gateway Borough is the first lo- cal Alaska government to receive an Environ- mental Protection Agency Brownfields Dem- onstration Pilot Program grant. The money will be used over a 21-month period to inven- toryand assess the condition and reuse poten- tial of the former Ketchikan Pulp Co. mill site, which shut down March 24. The study will include an analysis of industries that could utilize the site. The borough hopes to identify nontraditional users and emergent tech- nologies that may find the site attractive. The borough efforts under the grant are separate from an environmental assessment that Louisiana Pacific Corp., the EPA and the Alaska Department of Environmental Conser- vation already have agreed to undertake. Fol- lowing the borough's inventory, it will develop site re-use and marketing plans to reach outto identified industries. The phase will include an examination of the relative merits of public vs. private ownership options, including a port authority or industrial development cor- poration. Public input, comment and review will be solicited. Meanwhile, Ketchikan Pulp Co. and the U.S. Forest Service are collaborating on research regarding what timber processors can expect from forests of the future. Researchers from three Forest Service labo- ratories were in Ketchikan last month, con- ducting a series of tests on young-growth tim- ber logs, to learn more about their strength and visual qualities. The trees used in the study grew onapatch ofland on Prince of Wales Island that sustained a forest fire in 1905. Results will be used by industry to market lumber and make decisions about how the material can be best used, according to Kent Julin, forest ecologist with the Pacific North- west research station in Juneau, one of the researchers on the project. They also will produce a better understanding of how to manage the second-growth stands; whether to thin them or let them grow naturally. The Associated Press contributed to this report. 1 KATE RIPLEY se staf Writer yop OR, ‘The botougi has ‘received’ a § p beat fem te United ‘ \olletboost—toward the 4 lat ot Re oat Common Tet fea a ' lation was ‘tucl e t the military's . massive nding bill, recently signed by . nt Clinton, thanks to the of Alaska Sen. Ted Ste- Mayor Jim Sampson and of- i &t Eielson Air Force Base ind Fort Wainwright. The money represents half of he landfill praject’s $10 million ’ ofal. Construction on the expan- ion—the first phase of nine dif- erent “cells” to be built as they ire needed—is scheduled to start vext year. The rest of the project will be vaid for with a low-interest loan Pander Fie’ borough it on scant 2.5 percent interest rate, up to $10 million, said Ralph Ma- lone, ‘Sampson's chief of staff, . | The how only ‘peed half of that loan money. ‘We'll , only draw down on the loan to the extent we have to to finish the job,” said Malone. | Eielson Air Force Bdse has been its wasté to the borough since 1987, when the base closed its last dump, said Sgt. George an Air Force spokesmatt. “Now it’s part of our environ- mental restoration program,” Hayward said. Fort Wainwright hes : landfill, but it’s afoetsd to ell up within two years and the ats aticrd Sour inl doesn’t conform Army pe zie ye : ie the latest :regulations,” , ’s one of the * reasons we're ;