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HomeMy WebLinkAboutThe Alaskan Initiative 1995"hy fone (es 4STATEOrALASKA)= DEPARTMENT OF COMMUNITY AND 393 WEST FOURTH AVE.,SUITE 220REGIONALAFFAIRSANCHORAGE,ALASKA 99501-2341PHONE:(907)269-4500 DIRECTOR'S FAX:(907)269-4645DIVISIONOFENERGYENGINEERINGFAX:(507)269-4685 2072-"%S-8FSY Jak:Sr€6C0-ye HEné Te Av /'CbrYoun7 gp 7eECEZVCD sion JHE FE Wp FLUC LIWwesNoveTEWEWveATYanTOus F-ft H -| Al ae ii/9/4yprevIeunrSatesvilatusfling19-Sil,157997 eet1977weladefAiW Chin ge printed on recycled paper b y C.D. 68703795 15:46 &262 785 8834 Oo THE ALASKAN INITIATIVE GOAL OF THE ALASKAN INITIATIVE The goal of the Alaskan Initiative is to demonstrate emerging energy systems to displace imported diesel fuel in rural villages in Alaska.The energy systems would provide electricity and,in some cases,heat or steam for heating buildings. In addition,they may co-fire municipal waste.The fuel would be locally produced coal or natura)gas including coal-bed methane.The U.S.Department of Energy (DOE),Morgantown Energy Technology 'Center (METC),and the Energy & Environmental Research Center (EERC) have been working closely with several Alaskan native corporations,Alaska government Officials,and U.S,vendors of small power generation equipment to initiate this activity. BENEFITS OF THE ALASKAN INITIATIVE 1.Make Affordable Emerging Energy Systems Available to the Over 120 Remote Villages in Alaska Energy costs in remote villages are currently very high.Most villages have Stand-alone systems to produce electricity using oil-fired diese) generators.Residents in the village also use oil for heating their homes and for cooling.The severe climate makes it necessary to barge or fly an entire year's supply of oil into each village during the summer season,Because of high transportation costs,electricity and fuel costs are 4 to 12 times higher than in the Jower 48 states.The state of Alaska subsidizes this high cost of electricity in rural villages.However,the revenue source for this subsidy (a tax on crude oil shipments through the Alaskan pipeline)is shrinking, which may Jead to the elimination of thesubsidy.Thus both the native corporations and the state government want to identify lower-cost cnergy systems for both electricity and heat production. 2.Demonstrate Low-Ermission Systems that Can Contribute Toward Integrated Solutions of Current Environmental Problems Many want the Alaskan environment to remain pristine and,thercfore,want encrgy systems with very low emissions, Systems with lower emissions than those of uncontrolled diese]generators are desired. Alaskans also want energy systems that can help alleviate current environmental problems with leaking oil tanks and with municipal solid waste,Villages store a 1-to 1.5-year supply of oil in above-ground,bulk storage facilities that were installed by the Bureau of Indian Affairs in the 1940s and 1950s.Leaking tanks in these facilities are creating major environmental and safety problems. Replacing the tanks will cost $200 to $400 million,exclusive of the cast to remediate the current ground and water contamination.Fewer tanks will need to be replaced if emerging power systems fueled by natural gas or coalweretobeinstalledundertheAlaskan Initiative,The risk of future ground or surface water contamination would also be reduced. Disposal of municipal solid waste is an - -ungoing-problem in Alaska.Harsh ENERGY RES INTL P.@2 3, @8763795 15:47 weather conditions and permafrost preclude the use of many of the disposal options common to the lower 48 states.Thus energy technologies that have the flexibility to codispose municipal waste are desirable. Create Local Jobs in Alaskan Villages Undeveloped coal and natural gas resources underlay much of Alaska. Although Alaska has only one operating coal mine (the Usibelli mine in central Alaska),it has vast untapped resources Of very low-sulfur coal throughout the state.Many rural villages are close to known,shallow coal deposits.Most of Alaska's known natural gas resources are located on the North Slope.In the interior region,the geology indicates there is a good potential for natural gas,although this has not been confirmed by exploratory drilling.Because of the vast amount of coal throughout the state,the potential] for coal-bed methane is also good. Thus many Alaskan villages have coal or gas resources located nearby.Many of these resources are near the surface and,therefore,have the potential to cost-effectively supply the relatively small amounts of fuel needed for a rural village power generation project. Using coal or natural gas that is locally produced creates local jobs.The funds to buy fuel stay in the region instead of being siphoned off to out-of-state suppliers of diesel fuel. Transportation cost is the major contributor to the high cost of diesel oil.Because of lower transportation costs,locally produced fuels should be lower in cost,which,in turn,would reduce the cost of electricity and heat for local residents.In Alaska,the legal &2@2 785 8834 ENERGY RES INTL P Oo issues surrounding energy resource development are relatively simple since the native corporations typically own the energy resources on their Jand. (This is unique to Alaska;in the lower 48,Native Americans typically do not have rights to the cnergy resources on their land.) .Demonstrate the Capability andVersatilityofCoal-Fired or Natural Gas-Fired Emerging Encrgy Systems Over the past sevcral years,DOE METC has supported Research & Development (R&D)on small-scale power gencration technologies. Several of these technologies arc in the early commercialization stage and have the characteristics desired by remote villages in .Alaska, effectiveness,low emissions,reliability, standardized design,and the ability to be factory fabricated.Technology options include: Phosphoric acid fuel cells (PAFCs). PAFCs in the 200-kW size are ready for commercial deployment.They can operate On pipeline or lower-quality natural gas and are sold as prepackaged units.In addition to electricity,PAFCs provide hot water for heating and other uses.They are among the cleanest and most efficient energy technologies. Atmospheric fluid-bed combustors (AFBCs).AFBCs can use virtually any quality coal to produce electricity and process steam cleanly and efficiently. The coal can be fed with minimal preparation.The coal feed can be supplemented with waste materials, AFBCs are currently commercial in larger sizes.Small-size AFBCs are in the demonstration stage to prove their -63 i.€.,-COSt-© 68763795 15:48 ZS 202 785 8834 cost-effectiveness in these applications. -Diesel engines fueled by coal-watcr fuel (CWF).Diesel engines fueled with CWF ure entcring the demonstration stage.A hot-water-drying process to produce CWF is being explored, Diesel engines with back-end emission control have Jess than 1/10 of the NO, emissions of uncontrolled engines operating on diesel oil.Diesels can provide hot water or steam for heating or other uses.The sponsors of a DOE clean coal technology project funded to demonstrate a CWF diesel are reviewing the opportunity to transfer the project to Alaska. These fossil-based systems could be used in hybrid systems that also incorporate renewable energy technologies,such as wind turbines,photovoltaic cclls,or storage batteries.These renewable systems are being developed by DOE's Office of Energy Efficiency and Renewable Energy (EERE).Hybrid systems would provide reliable operationindependentofwind'or -sunlight conditions, 5.Provide a Mechanism to Help U.S. Technology Vendors Market Their Technologies in Developing Countries Throughout the World Alaska is representative of many developing countries in that it has a large number of remote communities that do not have developed transportation systems (other than air) or electrical transmission systems connecting communities.The lack of roads or rail,and seasonally limited water transport,makes it expensive to transport bulk commodities such as fuel.The remoteness also makes field fabrication of power systems very 0 expensive.Without a transmission system in place,small,dispersed power generation systems capable of operating on local fuels are frequently the most economic option, The knowledge base that USS. equipment vendors develop by supplying small systems to Alaska is applicable to many developing countries.Thus business information being developed as part of projects implemented in Alaska will create business opportunities for USS. equipment and technology in the international market. WHAT HAS METC-EERC DONE SO FAR? METC/EERC has been serving as a catalyst for this Initiative by providinginformationonsmallpowersystemsto Alaskan native corporations and by networking U.S.vendors of small power generation technologies with these potential users in Alaska.Specific activities include the following: 1.Alaskan Driver Over the past 4 years,METC has been conducting both joint and individual in- depth discussions with representatives from the Alaskan native corporations and from the Alaskan ©stategovernment.METC continues to provide both groups with information they require to make decisions on what technological solutions best meet the needs of Alaskan residents. 2.Workshop METC cohosted a workshop sponsored by the State of Alaska Department of ENERGY RES INTL P.a4 5. 88763795 Community and Regional Affairs (DCRA)in Anchorage on May 17-18, 1994.The purpose of the workshop was to introduce alternative power systems to Alaska and to educate vendors of.power systems about Alaskan issues.Over 130 people attended the workshop,including representatives from 20 different U.S. technology vendors and 53 representatives from Alaskan native corporations,village utilities,or Alaskan governmental ugencies.The proceedings from the workshop are available. A second workshop sponsored by the EERC,is planned for September 25-26,1995,This workshop will showcase the Alaskan Initiative to transfer the technologies to other Native American groups. Cooperative Research and Development Agreements (CRADAs) METC has signed CRADAs with the Alaskan Department of Community and Regional Affairs (DCRA)and with the Doyon Native Corporation.The primary purpose of these CRADAs is to conduct screening studies and more detailed feasibility studies of specific small power systems in Alaskan villages. .Assessments As part of the Alaskan CRADAs, METC-EERC and their CRADA partners are conducting (or will conduct)assessments for the installation of emerging power systems at several Alaskan locations,including Tok and McGrath. Team Building 15:49 3 262 785 8834 oO METC-EERC have been activelydevelopingteamingarrangementsfor possible demonstration projects in Alaska.Discussions have included all members of a vertical integration energy supply team including native corporations,state and federal agencics,we)}drillers,coal mine owners,utility operators,and equipment vendors. .Coal Testing In support of the CRADA-associated systems studics discussed above,the University of Alaska has conducted lab-scale testing of a potential coal feedstock for a proposed atmospheric fluidized-bed combustion (AFBC) system for the village of McGrath. The University is testing Little Tonzona coal.Donlee Technologies is testing 30,000 Ib of this coal in its AFBC pilot plant in Pennsylvania. .Cooperation with EERE METC is closely cooperating with EERE on this Initiative.In FY94, METC assisted EERE in reviewing the proposals it received in response to a request for proposals to develop integrated energy systems on Native American lands under Article XXVI of the 1992 Energy Policy Act.At METC's invitation,DOE EERE participated in the Alaskan workshop. .Support Tasks with the EERC The FY95 Interior Appropriation provided $600K for EERC to support METC Alaskan activitics.As part of this activity,the EERC: Provided support for the May 1994 workshop held in Anchorage. ENERGY RES INTL P.85 68783795 *Obtained cost-share funding from an Alaskan Consortium to study the feasibility of building a plant to produce a low-rank coal-water fuel (LRCWF) in Alaska,Usibelli coal will likely be used for the project.The Consortium has identified a site at the University of Alaska-Fairbanks,as the likely location for the project. *Is conducting studies to determine the market potential for CWF both in Alaska and in the export market. ¢Is working with METC to finalize in- depth assessments of villages considering advanced power systems. 9,College of West Virginia Under its muttistrata completion contract with METC,the College of West Virginia has reviewed existing coalfield data and plans to drill one or two wells at Chignik Lagoon to produce coal-bed methane which will be fed to a fuel cell to produce electricity and - heat for local use. WHAT'S NEXT? METC proposes to support sevcral near-term demonstrations to introduce emerging power gencration technologies to rural Alaskan villages. Under the leadership of the EERC, METC will work with entities in Alaska and elsewhere.to support the demonstration of the following technologies: *A 200-kW phosphoric acid fuel cell (PAFC)operating on coal-bed mcthane in the Chignik region. Natural gas-bused fuel cell projects are also being explored. 15:49 BZ 262 785 8834 mnENERGY RES INTL Pp. oO An atmospheric fluid-bcd combustion (AFBC)system fueled by coal at McGrath and/or Tok based on guidance from Doyon,Ltd.,and the state of Alaska. A ciesel engine fueled by coal-water fuel (CWF)funded under the Clean Coal Technology Demonstration Program, PAFC DEMONSTRATION _A demonstration of a 200-kW PAFC operating on coal-bed methane is being planned by the College of West Virginia at the village of Chignik Lagoon.The project will involve an Alaskan drilling firm and will be conducted in cooperation with the Chignik Lagoon Regional Corporation,the Bristol Bay Native Corporation,the Chignik Lagoon Tribal Council,International Fuel Cells Corporation and the Department of Energy. In 1994 and 1995,METC provided funds to the College of West Virginia to conduct studics at five Alaskan remote Native American (including Native Alaskan and Eskimo)sites to determine the feasibility of producing enough methane from coal seams to feed a 200-kW fuel cell.Based upon the information dcrived,the College of West Virginia,in cooperation with Native American and Alaskan authoritics, was requested to select one of the five sites for the conduct of a demonstration. As a result of this effort,Chignik Lagoon was selected as the most promising site. Plans call for the College of West Virginia to lead the effort to drill two production wells at Chignik Lagoon and couple the methane produced to a fuel cell to produce clean,efficient,and competitively priced electricity to the village.The project will also create jobs for local 66 68/O3/"95 15:58 Native Americans in the village.If successful,the technology could be deployed throughout other remote regions in Alaska,other parts of the United States,and in foreign countries. The estimated cost for the project is $2.05 Million.This estimate includes drilling and completing the wells and putting them into production,purchasing and installing the fuel cells and integrating the unit operations into the local transmission and distribution system.Funds for the integrated project will come from funds already appropriated to the College of West Virginia by METC,additional funds expected from Alaskan sources,financing of some elements of the project,and the FY95 fuel cell "buy-down"program directed by METC. Electricity could be produced from the project as early as late 1995. Other related programs in Alaska are aimed at assessing the opportunities to demonstrate PAFCs in locations where natura]gas is available or can be cost- effectively obtained.One such project is being pursued at the Nationa)Guard Armory at Fort Richardson in Anchorage. Here,the fuel cell "buy-down"program being administered by METC is being discussed as the mechanism to purchase one of two PAFCs using natural gas already supplied to the sitc. AFBC SYSTEM DEMONSTRATION The economic feasibility of demonstrating AFBC at specific village sites is currently being examined by METC-EERC for its their CRADA partners.Under the CRADA with the Doyon Corporation,a feasibility study of an AFBC at the village of McGrath will be completed in August 95,The AFBC would cofire Little %202 785 8834 oO ENERGY RES INTL P.a7 Tonzona coal and possibly village wastes. Plans call for McGrath Power &Light to build a 1-MWe AFBC plant to produce electricity to displace much of its current high-cost diesel fuel-based capacity. The utilization of waste heat from the plant is also being studied.The plant and coal facilities will use local labor, A conceptual design of the AFBC plant is currently being developed to a sufficient level of accuracy to allow bank financing of the project.To support the design activities,30,000 pounds of Little 'Tonzona coal and limestone was mined by Doyon and shipped to Donlee Technology,a Pennsylvania boiler manufacturer,where it was test-burned in a pilot AFBC.A decision by Doyon on whether to proceed with the project is expected by the fal]of 1995. Under the DCRA CRADA,DCRA and METC selected the villages of Tok and Tanana as two probable locations for an AFBC demonstration.This selection was based on input from the Anchorage workshop.A 2.5-MWe project at Tok has higher priority because of the active interest being shown by the local utility Alaska Power &Telephone (AP&T)and because of the announced closing of the local landfill.The project would use Jarvis Creek coal which has been leased by AD&TR from the Alaska Department of Natural Resources.In addition,Jocally produced municipal solid waste would be cofired in the combustor.The new plant would be used to meet increasing electricity demand,replace some of the existing and high diesel fucl-fired capacity, and produce heat which would be used in sevcral commercial buildings now dependent upon diesel fuel.A feasibility study for the project is expected to be completed in December of 1995. 68/63/7395 15:51 Both projects could be used as stepping stones to the utilization of this clean, efficient and economically competitive technology in other remote locations throughout Alaska and the rest of the world. DEMONSTRATION OF DIESEL ENGINES FUELED BY COAL-WATER FUEL METC-EERC,with their CRADA partners,are investigating the feasibility of a project to demonstrate the operation of a coal-fueled 5-MW diesel.Cooper- Bessemer has developed this technology for small power plants (1-50 MW)and it appears ideal for Alaskan communitics with high delivered-oi}prices and access to a coalewater fuel (CWF)production facility. A clean coal demonstration project has already been funded to demonstrate this technology.This project could be located at the University of Alaska-Fairbanks with the planned Alaskan Consortium project to build a low-rank coal-water fuel (LRCWF)production plant.Some of the fuel produced at the LRCWF facility would be fed to the coal-fired diesel to produce heat and electricity to meet energy growth in the region and to reduce dependence upon diesel fuel.Cooper- Bessemer's standard CWF supplier (Coal Quality,Inc.)would work with the Consortium to optimize the approach for producing engine-grade CWF in Alaska. The estimated cost of a 5-MW,3-year demonstration project integrated with the LRCWF demonstration is approximately $40 million,half of which will be provided by METC, 32 262 785 8834 ENERGY RES INTL P. oO e8 AUTHORIZATION FOR THE ALASKAN ) INITIATIVE METC's Alaskan Initiative is being conducted under the broad auspices of Title XXVI,Indian Energy Resources,of the Energy Policy Act of 1992.Section 2603 of this Title provides that "the Secretary of Energy in consultation with the Secretary of the Interior shall establish and implement a demonstration program to assist Indian tribes in pursuing energy self-sufficiency and to promote the development of a vertically integrated energy industry or Indian tribe,... including any Alaska native Amcrican village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act." CONCLUSION METC and EERC are in the early stagesofimplementingan_Initiative incooperationwithAlaskanintereststo demonstrate emerging energy systems in rural villages in Alaska.The benefits of this Initiative are as follows: *Affordable emerging energy systems being made available to the over 120 remote villages in Alaska. «Low-emission systems that can contribute toward integrated solutions to current environmental problems. *Local job creation in Alaskan villages. «Demonstration of capability and versatility of coal-fired or natural gas- fired emerging energy systems. ¢Provision of a mechanism to help U.S. technology vendors market their technologies in developing countries throughout the world. 6883795 15:52 It is envisioned that several demonstration projects of emerging technologies driven by Alaskan interests will be conducted under this initiative.Title XXVI,Indian Energy Resources,of the Energy Policy Act of 1992,authorizes these types of projects.METC and the EERC are establishing teaming arrangements with groups that are in a position to help implement such demonstrations.Those groups include Doyon,Ltd.and othernativecorporations,local Native American communities,the Alaskan Department of Community and Regional Affairs,the College of West Virginia,the University of Alaska,other state and federal agencies, well drillers,coal mine owners,utility operators,and equipment vendors,These organizations have the capability to establish "virtual corporations”to conduct demonstration projects in Alaska and to provide most of the required funding. Because of its intimate knowledge of small power generation technologies,the METC-EERC team arc in the ideal position to catalyze this activity. 2 262 785 8834 ENERGY RES INTL oO P.69 FoI 83834 ENERGY RES INTL P.e1 Post-it”Fax Note 7671 =[Dat pages”OoteDeen.Carter an Fro Deitel ma PTT TICE e/3/93 Fax #Fax df Sev¢Melsers Go7T-V6C-27K As fUZTOUE STE O-DK.Toe SAE UN eT 74+Perc F.Lo Sever,Keep Coole OVNI WE HAvE dDiscurseh. Sack Steer ¥/P/78Oxrce_Leecised Tris Pram Tack Se Please Provide fury isle &Cay Leu nef © December 6,1994 Don Bonk The METC Goal for Alaska is to install demonstration project in three technologies,Fuel Cell,Coal Fired Diesels and Atmospheric Fluidized Bed. Other Goals are to utilize coal bed methane as a fuel source,and to work with Federally Recognized Alaska Native Groups. I have asked to become a reviewer on all project and proposals submitted to METC for Alaskan projects. METC has recently assigned Bob Ruther as project manager to get an Alaskan LRCWF demonstration project off the ground.$10,000,000 has been requested from the USDOE budget.This test site will support METC's coal-fired diesel program.This request is coming from University of North Dakota-- Energy and Environmental Research Center. The "Small Alternative Power Generation Workshop"was designed to promote these technologies. Prefeasibility studies,I have requested that I be able to assist and be provided with drafts for review. METC is preparing studies to determine the applicability of these technologies for Tok,Chignik, Tanana,Nenana,Nulato and Bethel. Tok--Fluidized Bed Study underway Chignik--Fuel Cell/coal-bed methane Draft study is complete,have requested a copy. Bethel and others are on hold. College of West Virginia was contracted to locate sources of coal bed methane,I am under the impression that they focused on Chignik,because this project could encompass multiple programs:Native American Resources,Fuel Cells,Coal Bed Methane,and village power. The project to locate and develop coal-bed methane deposits in Alaska was given to the College of West Virginia(CoWV),as an extension to an existing contract.This precluded a lengthy procurement and solicitation process. Currently the CoWV has received about $100,000 of a $200,000 contract,and is earmarked to receive $400,000 more in the current fiscal year,for the Chignik Project.I have requested copies of the draft report on Chignik.Jim Weekly,CoWV,according to Don Bonk has received and is preparing to act ona quotation to drill for coal-bed methane in Chignik this spring.His concept is to load a drill rig from Anchorage on the state ferry. Weekly's trip to Alaska focused on 5 sites for coal-bed methane and natural gas potential.These were: Nenana,Ft.Yukon,Baripart,Mato and two location in Chignik,Thompson Valley,and PreStistaen-Nenana Manfr &Rampart Treal,Diamond Pant Don Bonk is beginning to develop a solicitation for bids for small power project for Native groups in Alaska.A special appropriation of $750,000 was included for Alaska Native project in the FY 95 federal budget.He has close to $700,000,which he intends to divide between two solicitations.His guidelines are:money is to go to coal,natural gas or fuel cell projects--maybe---.He is envisioning $250,000 for groups which have projects near or ready to go.Like drilling coal-bed methane wells in Chignik.The rest of the money will probably be in a number of $50,000 grants to explore other sources of energy. I have requested that a description of the program and budget citations be provided and that I be allowed to sit on the review committee. I am still confused about what is going on here.The only way I think we can get to the bottom of METC is to be involved in the development of their budget. December 6,1994 Dennis, The attached material covers the congressional language for coal- bed methane and Native American funding.The rest is the assessment to date by The College of West Virginia (C of WV)on fuel cell sites.I can not send you the cost numbers they have generated for doing the drilling,but John Maestes (C of WV)can share them with you if he wants to. Mike Reed is going to put together a three to five page summaryontheFuelCell/Coal Bed Methane project cost review and will fax it to you under a separate cover. f With regrads to the future I have ask for 3 to 3.5 million for FY 96 under the American Native activities.You should note that we ask for 1.5 million for FY 95 and got half. What I am trying with my management to put together is a 3 to 5 year,multi-million dollar DOE program to support demonstrationsofremoteruralvillagepowersystems.Cost sharing on the order of 50%non-federal funds or greater would he needed because ofcurrentFederalRegs.Per the Congressional language,this yearwewillattempttosolicitproposalsintwoareas,FBC and Fuel i Cell per the input from the Anchorage Workshop. Further,if METC is sucessful in obtaining EPA-ETI funds for either FBC and/or coal-bed methane projects they would flow through the awards granted under the FY 95 Native American Solicitations.You Have received copies of EPA-ETI proposals earlier under separate cover. Finally,I have had no resistance to a State of Alaska reviewer, but I have not covered all the bases yet. Don / ""L-7G #:8FGCSOFLOG-ss OLN _--_:WVT0:8 :P6-L -CT:30d:Ad INES ead CG: ;wu 'Od.2122 wu.uud £.Ud 48 cluding advanced geographic information aystems (GIS),relationaldatabasesystems,and on-line access;8.To the extent NPR-3 is used as an oil field testing center the government portion of costs for such testing should be absorbedbythebenefittingoiltechnologyprogram;when NPR-3 is the bene-fitting entity it should absorb the costs:9.Up to $450,000 in addition to the $500,000 increase for the ALL&E fracture verification contract should be provided out of pro-jected new starts in the diagnosticand evaluation of natural frac- .tures key activity in the budget for resource and extraction in natu-ral gas research;;a ¢ ;10.In the 08 bed _methane initiative,$500,000 is provided to we | 'undertake a feasibility study which 1s result in a report to the \*|Appropriations Committees analyzing the merits of and delineatinthecontentsoftheproposeprogram.No additional activity,includ-ing procurement,for which $750,000 has been provided,shall beundertakenpriortoreviewofthereportbytheCommittees.11.The amount for advanced turbine systems include$4,800,000 for the industry/university consortium,$1,000,000 for-manufacturing technology in the National laboratories,$2,600,000forMETCin-house research,$2,000,000 for combuation/coal tech-nology,and $27,556,000 for the component development procure-ment;and12.The $780,000 rovided for the Native American programshouldcontinueeffortsbytheDepartmentsuchaathosetodevelopcosteffectivesystemsforremotecommunitypowersuppliesinvolv-ing the State of Alaska,and several native corporations in Alaska.The managers expect that,prior to any site specific activity,theDepartmentwillissuea@solicitationofinteresttothoseandother -Native American:entities or corporationsto assure the broadestpossibleparticipationintechnologydemonstrationsrelatedtotheestablishmentofindependentpowersuppliesforisolatedcommu-nities.Lerarss 1 pte Loew Lark awteygiledic Of Ae Gutwrhcad aX 00,000Ia NAVAL PETROLEUM AND Of[L.SHALE RESERVES Amendment No.87:Appropriates $187,406,000 for Naval pe-troleum and oil shale reserves as proposed by the Senate insteadof$193,956,000 as proposed by the House. ENERGY CONSERVATION Amendment No.88:Appropriates $793,194,000 for energy con-servation instead of $824,585,000 as proposed by the House and$743,741,000 as proposed by the Senate.The net increase above the amount proposed by the Senateconsistsofincreasesof$1,000,000 in the core retrofit technologiesactivitytoincludecontinuedcoordinationwithHUD,$1,000,000 forRebuildAmerica,and $400,000 for best practices emphasizing cost- -shared activities,all in building systems;$1,625,000 for indoor air '7 quality in building envelope;2,000,000 for heating and cooling.technology and $2,000,000 for golden carrot/demonatration activity,both in building -equipment;$500,000 for EEMS/HERS in codesandstandards;$1,000,000 for the Federal Energy Efficiency Fundand$1,500,000 for innovative/alternative financing and Federal fa-|cility test beds,both in the Federal Energy Management Pr ;'OO LT PROP wesi "< "Z-/@ #SPETSOPLOG -DLIN Coy bes z¢:- bit?wy CoPHWE du” CHEM Ldeaa'c hes ¢ch Wer?Ving etude EXIF ac Por.av f /bechecFen Shee, Whel dete seyppee B De fori.nal.fe a ay ah Oy mie 7 Wy.Cop Cynl fe Lb bhe Aaye dborn "a ib he Coan tn Fy Je tyey-e ele UnAebyihoCor. 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The CRADA is intended to be a procedural mechanism to share in new technology research,and utilize Department of Energy funds and services.The simple concept is that every dollar the state puts into a particular area of development or research can be matched with a similar contribution by METC.The reality is somewhat different. This CRADA represents for METC an opportunity to promote Alaskan energy project through their budget.With a CRADA in hand,METC applies for various types of funding supposedly to develop projects in Alaska. Article III.Contribution of the Parties A.The estimated value of the Participant's contribution is $750,000 (Division of Energy is committing approx.$500,000 to local resource exploration and geological analysis,site selections),subject to available funding.The estimated value of the Government's contribution is $750,000 (the Government has committed approximately $500,000 to task orders related to this CRADA),subject to available funding. B.The Parties shall have no obligation to continue or complete performance of the work at an amount in excess of the estimated contribution in (A)above,including any subsequent amendment. What does this mean? The estimated value of the Division of Energy's contribution was made up of existing ongoing projects such as Northwest Arctic Coal Development Project (SLA 92 APP),a $500,000 legislative appropriation.In addition any other work on behalf of the department to characterize coal or natural gas resources could be included in our cost share.Penny's RFP on coal-bed methane/natural gas,my RFP on coal,and possibly Peter's work on Biomass (the part that the state pays,no double counting of federal money).I expect that the division can include in their cost share any contributions to low rank coal water fuel and toward the development of the Little Tonsona/McGrath Project.Additional costs anticipated are related to the small power workshop,staff time and travel.Don Bonk is coming by the office today,and I will be asking him what needs to be done to verify those contributions.I believe that it will be possible for the state to justify whatever contribution is necessary.This is soft money. Oo Why is METC so interested in the State of Alaska?Altruism?Duty?Mission?or MONEY? I suspect money.I have been trying to track down METC's funding for Alaska projects, this is what I can piece together. I believe that METC's strategy is to continue to apply for funds under The Energy Policy Act of 1993,Title XXVI -Indian Energy Resources,which authorizes funding for "promoting energy resource development and energy vertical integration on indian reservations.”(tribes and reservations are defined to include Alaska Native villages and corporations.”So this is a niche funding source to keep METC alive. In 1992,I believe METC received $500,000.As far as I can tell,in 1994,METC received $750,000 from the USDoE budget for Alaska projects under "the Native American Program to continue its efforts to develop cost effective systems for remote community power supplies involving the State of Alaska,and several native corporations in Alaska.” According to Bob Ruther of METC,METC is concerned that Congress will reappropriate this money,so they are transferring it to UNDEERC,to protect it. UNDEERC is excited because they will siphon off about $300,000 for overhead. Why did Bob Ruther and Don Bonk come to Alaska? Bob is taking over for Randy Dellefield who died last year.Bob will be influencing METC funding decisions in Alaska. Why did they suggest to the commissioner that the state needed to start contributing some money,and why did they ask the commissioner to write a letter of support to the METC program manager to keep the Alaska Projects at METC rather than transfer them to the University of North Dakota Energy and Environmental Research Center? Don Bonk @ METC will be reassigned to projects in Alabama.Alaska is alot more fun. TOK I believe,as does Bob Grimm at AP&T,there are some indications that a 2.0MW coal-fired power plant in Tok is feasible and has the potential to lower the long term cost of power.What we would like to get from METC is a complete engineering analysis, design and cost estimate,similar to the work that was done for Doyon in McGrath. A hard cash contribution by the state to a METC project makes it look like they are really doing something. o How do we get a power plant design and cost estimate for Tok without spending any money? Four possibilities: If METC keeps funding:Have Doyon do the design through their existing CRADA,by applying for some of the $750,000 as a Native Energy Project.I have mentioned this possibility to Bob Grimm and Norm Phillips of Doyon.Tok is in the Doyon Region.Bob Grimm gets help with building his powerplant. Norm Phillips/Doyon gets the design and possible employment opportunities for their members.Doyon can duplicate the design or build on it in other communities. UNDEERC may be able to just use the money directly to give us a design. We can possibly leverage our existing work into our contribution.Mike Dellala from Gilbert Commonwealth says he needs about $90,000 to finish the job in Tok.I will see if I can clarify this with Don Bonk. The division makes some end-run on their funding.Transfer it to the Division of Energy instead of UNDEERC.