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Home My WebLink AboutR-80-0633{ RESOLUTION N0. 8 0-633 A RESOLUTION AUTHORIZING UP TO $10,000 TO BE EXPENDED FROM THE CONTINGENCY FUND FOR THE PURPOSE OF PREPARING A FEDERAL GRANT APPLICA- TION TO THE U.S. DEPARTMENT OF ENERGY FOR A $400,000 ETHANOL PRODUCTION PLANT FEASIBILITY GRANT TO BE PREPARED BY U.S.S. ENGINEERS AND CONSULTANTS INC., A SUBSIDIARY OF UNITED STATES STEEL CORPORATION AND SUBMITTED NO„SUPPO�?TIVE LATER THAN SEPTEMBER 30, 1980. DOCUMENTS FOLLOW" WHEREAS, the United States Steel Corporation has a licensed process to convert wood into ethanol, and WHEREAS, the U. S. Department of Energy is requesting applications for "Feasibility Studies for Alternative Fuels Production", and WHEREAS, said grants will be limited to not more than $10 Million, and WHEREAS, the City of Miami has an opportunity to convert street trash, which it must otherwise pay as much as $16.50 a ton to have taken i away, into alcohol, and i� WHEREAS, said conversion from wood to alcohol is a clean, non- polluting process that provides an alternative fuel to the high priced imported fuels, and WHEREAS, it is in the best national interests of this Country to expend every effort to producing alternative renewable synthetic fuel resources, and WHEREAS, the City of Miami has the opportunity to provide the leadership in developing this demonstration fuel producing facility, and WHEREAS, said facility may not only provide fuel for the City's gas powered vehicles but also provide substantial reductions in our fuel sup- plies and Solid Waste disposal fees, and WHEREAS, this project is Federally funded by Grants and/or Federally Guaranteed Bonds, and and WHEREAS, it takes 4 to 5 years for the plant to be in full operation, WHEREAS, the application for Feasibility Grant funds must be sub- mitted no later than September 30, 1980; �� CITY COMMISSION DOCUMENT INDEX MEETING OF ITEM NO ' EP 15 1980 i 80-63 - 1 - RfSOIUTION HO.,,,,,,«..«.......w to` NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The sum of $10,000 is hereby authorized to be expended out of the Contingency Fund for the purpose of submitting a grant application to the United States Department of Energy for at least a '$400,000 Feasibility Study for alternative fuels production. Section 2. The City Manager is hereby authorized to enter into an agreement with U.S.S. Engineers and Consultants, a subsidiary of United States Steel Corporation, with the cost thereof not to exceed $10,0001to prepare said Grant Application to be submitted to United States Department of Energy no later than September 30, 1980, PASSED AND ADOPTED THIS 15 day of SEPTEMBER 1980, MAURICE A. FERRE MAURICE A. FERRE M A Y 0 R AT T LPH . ONGIE, CITY CLERK --- PREPARED AND APPROVED BY: Aaq Z X , 7-'e- & � � ROGER' F. CL RK, ASSISTANT CITY ATTOR EY -2- «6UPPORTIVE D0)C- l) M ENJ" FOLLOW? 80-633 .I i 1 t 10SEPfi R. CRA v�J (J Ll U City Manager November 18, 1980 Mr. Joe Muller USS Engineers & Consultants j 600 Grant Street Room 3342 1 Pittsburgh, PA. 15230 Dear Joe: Enclosed is your copy of the contract between the City of Miami and UEC for the preparation of the Ethanol Production Feasability Study Grant Application. Upon receipt of an invoice for the agreed $10,000 I will process the final pay- ment. I have also enclosed a copy of the receipt for the proposals that were turned in to the Department of Energy on September 30, 1980. 1 have been told that the announcements of Grant Awards should be coming within the next few weeks. If 1 learn anything new regarding this project from our Federal contacts I will let you know. I enjoyed meeting you and Mr. Guttshall in Pittsburgh in September and look forward to a successful conclusion to our project with United States Steel Cor- poration and UEC, etc. Sincerely, • ark` 4e 1L Assistant to the City Manager Ld N it 1_t DOCUMENTS �L FOLLOW" f..J 3500 Pan American Drive / Miami, Florida 33133 / (3051 579.6040 410.01f, 0, 49 113 �xm+dsmynwwiannw,taeaaoumutc — - AGREEMENT THIS AGREEMENT, made as of this of November , 19801 by and between 7th USS ENGINEERS and CONSULTANTS, INC., a Delaware Corporation, having a place of business at Pittsburgh, Pennsylvania, United States of America, (hereinafter called "UEC"), and the City of Miami, Florida (hereinafter called "the City of Miami")= WITNESSETH: ETHANOL WGG100680 .. MA WHEREAS, UEC possesses certain technology for producing ethanol from renewable organic sources by means of a continuous hydrolysis and a continuous fermentation process; WHEREAS, UEC is in the process of forming a joint venture company comprising UEC; BIO FUELS AND RESOURCES, INC., a Florida corporation, having a place of business at Fort Lauderdale, Florida; and a European Consortium consisting of Waagner Biro Aktiengesellschaft, an Austrian corporation; FMW Forderanlagen and Maschienbau, an Austrian corporation; and Zellplan GMBH, a German corporation; WHEREAS, the joint venture company will engage in the marketing of this ethanol production technology under the name, the "Stovanol Process"; " j P, ORTIVE DOCUMENTS FOLLOW - 2 - WHEREAS, the City of Miami has available one hundred thousand (100,000) tons per year of appropriate cellulosic feedstock material for producing ethanol, which it must other- wise pay as much as $16.50 per ton for disposal thereof; WHEREAS, the U. S. Department of Energy (DOE) is requesting grant applications for "Feasibility Studies for Alternative Fuels Production"; WHEREAS, such DOE grants will be limited to not more than $10 Million; WHEREAS, the grant application for feasibility grant funds must be submitted no later than September 30, 1980; and WHEREAS, the City of Miami desires UEC to prepare on its behalf a grant application to DOE for at least a Four Hundred Thousand Dollar ($400,000) Feasibility Study for installing the first commercial demonstration plant for the Stovanol Process; NOW, THEREFORE, in consideration of the mutual promises and undertakings herein set forth, the parties hereto, intending to be legally bound, hereby agree as follows: 1. UEC shall use its best efforts to prepare such grant application for and in behalf of the City of Miami to allow the City of Miami to submit such application to DOE by September 30, 1980. p --r n V E U Nq [E N Ts FOLLOVVIf 1 3 .. 2. The City of Miami shall pay UEC the sum of Ten Thousand Dollars ($10,000) for the work involved in preparing and submitting such grant application whether or not such grant application is acted favorably upon by the DOE. Payment of such sum to UEC shall be within thirty (30) days after the effective date of this Agreement. 3. This Agreement constitutes the entire agreement between the parties hereto, and there are no understandings, representations or warranties of any kind between the parties except as expressly set forth herein. 4. This Agreement shall not be amended except by an instrument in writing signed by the parties hereto and stating the parties' intent by such instrument to amend this Agreement. S. No failure in performance of any obligation assumed i� hereunder by either party shall be deemed a breach of this Agreement if such performance is rendered impossible by any cause beyond the control of such party. The affected party shall promptly notify the other party of the force majeure and the expected duration thereof, and shall exert all reasonable efforts to remove such force majeure as soon as possible. «)U,PORTI\JE .)UMENTS Da' F01-�O\V it �aa:�a�nsaar�a+aweas�u�anwo,rar�vs,sa� w.0 -- - --- m - 4 - 6. The validity, p-irformance, construction and effect of this Agreement shall be governed by and construed in accord- ance with the law of the State of Florida applicable to contracts made or performed therein. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed in duplicate originals by their duly authorized officers, as of the day and year first above written. ATTEST: P ATTEST: nPP;kOVI)D AS 'rO FO CITY ATTORNEY USS ENGINEERy; AND CO,NSULTANT6 , INC. By ,Gener 1 Manager 7vices THE CITY OF MIAMI By r Title: City Manager AND CORRECTNESS: "SU�''0;��/�' "V LLOW" 4.L3:[1.1',�G:•.Ss:n=,_y�nti_L:�_._:�c,..._r �a�mw1191ff11R�1�lII��"m --- �s$ UEC CERTIFICATE I, Maury D. Locke, acting in my capacity as Assistant Secretary of USS Engineers and Consultants, Inc., do hereby certify that the following is a true and correct copy of a resolution of the Board of Directors dated April 1, 1980 passed by unanimous consent: "That R. M. Guttshall, Jr., General Manager - Services, is hereby authorized to execute all contracts of the Company and to deliver and execute any instrument required in the implementation thereof, such authority to remain in effect until revoked by resolution of the Board of Directors of the Company." I further certify that the above resolution continues in effect and R. M. Guttshall, Jr. remains as General Manager as of the date hereof. IN WITNESS WHEREOF, I do hereby put my hand and the seal of the Company this 6th day of October, 1980. Assi 1tant Secr tary UPPOPMVE FOLLOW .,,•t•4:1 I.M,. ••,,:1(bN M/•id'i..r.�v r.� ... _.__._. ........ ......w�u u.�......�..... ,...,. ... .. .. RESOLUTION No. �80 • (; a 3 A RESOLUTION AUTHORIZING UP TO $10,000 TO BE EXPENDED FROM THE CONTINGENCY FUND FOR THE PURPOSE OF PREPARING A FEDERAL GRANT APPLICA- TION TO THE U.S. DEPARTMENT OF ENERGY FOR A $400,000 ETHANOL PRODUCTION PLANT FEASIBILITY GRANT TO BE PREPARED BY U.S.S. ENGINEERS AND CONSULTANTS INC., A SUBSIDIARY OF UNITED STATES STEEL CORPORATION AND SUBMITTED NO LATER THAN SEPTEMBER 30, 1980. WHEREAS, the United States Steel Corporation has a licensed process to convert wood into ethanol, and WHEREAS, the U. S. Department of Energy is requesting applications for "Feasibility Studies for Alternative Fuels Production", and WHEREAS, said grants will be limited to not more than $10 Million, and WHEREAS, the City of Miami has an opportunity to convert street trash, which it must otherwise pay as much as $16.50 a ton to have taken away, into alcohol, and WHEREAS, said conversion from wood to alcohol is a clean, non- polluting process that provides an alternative fuel to the,high priced imported fuels, and WHEREAS, it is in the best national interests of this Country to expend every effort to producing alternative renewable synthetic fuel resources, and !� WHEREAS, the City of Miami has the opportunity to provide the leadership in developing this demonstration fuel producing facility, and WHEREAS, said facility may not only provide fuel for the City's gas powered vehicles but also provide substantial reductions in our fuel sup- plies and Solid Waste disposal fees, and WHEREAS, this project is Federally funded by Grants and/or Federally Guaranteed Bonds, and WHEREAS, it takes 4 to 5 years for the plant to be in full operation, and WHEREAS, the application for Feasibility Grant funds must be sub- mitted no later than September 30, 1980, V T lv G CITY COMMISSION P i MEETING OF ,)OCUMFNTO ;EPA 8mo 0-63 �a L - - .._.�.r.........../.. uE.d/t1 Y � 1 � ^ f• S Si vL� 7 `�1� j A .� !�, , +r =•ry �+iS. +rUlfaYf .i'��S»1F�7tI` �7i��ih �{�y��j?��Y 1 ( ��9ku� ��f}�+� r4_i. _•) {,. �( NOW, TIt/RrroRt, •g tT UeDof,1►gs 1MR aaKtr�ta M :11�'°� ��►, a�;r: CITY OF MIAMI, FLORIDAf Section 1. The sun of $10.000 is hereby authorized to be expended out of the Contingency Fund for the purpose of submitting a grant application to the United States Department of Energy for at least a '$400,000 Feasibility Study for alternative fuels production. Section 2. The City Manager is hereby authorized to enter into an agreement with U.S.S. Engineers and Consultants, a subsidiary of United States Steel Corporation, with the cost thereof not to exceed $10,000,to prepare said Grant Application to be submitted to United States Department of Energy no later than September 30, 1980. PASSED AND ADOPTED THIS 15 day of SEPTEMBER 1980. A T : PREPARED ANC APPROVED BY: kOROVX-7CO� �A&SIKTA—T-n�A AS TOiFORULAND CORRECTNESS: ........ r --k- . -2- MAURICE A.JERRE —ffA Ri3RRE-A, FERRE M A Y 0 R "SUPPORTIVE FOLLOW" 80-633 ��9,,,,MMu1,Mu..wn.wpua,n+n.xY0., ,. .. .pW;,„"'".w�C.•_•••.....�:�._ ...._____. OW CITY OF MIAMI, FLO1110A �� II`JTi�r�2��7F'f ��i� i•.1Ef�1Ui;AiJC�UtA 7O: Richard L. Fosmoen City Manager oya September 9, 1980 FILE: r11�. Gasohol Grant Application r•Now1 ark Merrill rIr;1[:17EFICE3: "JUPPO1 ',TIVG Assistant to the City Manager 3uRrs®OCU 1\,� i ....' �i 1n I_ ,� T : J fl During the past several months I have been discussing a possible Federal Grant with a representative of U.S.S. Engineers and Consultants, a subsid- iary of the United States Steel Corporation. This proposal involves a special process that converts wood and paper (street trash) into sugar and ferments the sugar into alcohol. The biproducts from the wood conversion is combustible and is used to fuel the plant. No petroleum products or any other fuel is needed to run the plant. It would operate as a clean - burning incinerator that would produce alcohol. A dry ton of cellulose (wood) will produce 50 to 70 gallons of alcohol. Miami has approximately 100,000 tons of this material that could be used to fuel the,plant. On January 1, 1981 Miami will have to pay Dade County $16.50 for each ton of waste material the County receives at their trash transfer station on N. W. 20th Street at N. W. 12th Avenue. It is estimated that this project could save Miami as much as $1.6 Million in solid waste disposal fees. The plant would be expected to produce about 5 million gallons of alcohol - enough to run the City's gasoline operated fleet and have plenty left over to provide gasohol for the Federal, State, County, and all other cities' tax supported vehicles, Ij While there are many other very positive values in this program, it is important that we obtain the City Commission's approval by September 15, 1980 to set up $10,000 to develop an application to the Department of Energy (DOE) in Washington to request a $400,000 Feasibility Study Grant that would j lead to a larger grant to construct the plant. The plant would be built with Federal Grant Funds and/or Federally Guaranteed Bonds. The submission date for the Feasibility Grant Application is September 30, 1980. The Consultants have previously presented a Grant Application that is similar to the Miami proposal. The fee they are asking would be to take the appropriate parts of the previous proposal and apply it to ours. The Federal limitation in this round of funding is $10 Million per Grant Award. The Grant Award solicitation was made by DOE on August 1, 1980. The only way Miami could get into this cycle would be through the use of consultants. I have attached a copy of the proposal to produce an application from U.S.S. Steel, excerpts from a report on "Synfuels and the Cities" dated August, 1980 by the United States Conference of Mayors, and the DOE request for grant applications, The attached Resolution requests $10,000 to initiate this project. cc: Joseph R. Grassie 80-633 a 9 UEC 600 GRANT STREET PITTSBURGH, PENNSYLVANIA 15230 - 412/391.0115 CABLE: USSENCON POW, PA TELEX NO.65.0425 August 27, 1980 Mr. Clark Merrill Assistant to City Manager City of Miami 3500 Pan American Drive Miami, Florida 33133 Dear Clark: Attached to this letter is a tentative proposal which may be of use to you in your discussions with the city fathers. My schedule has changed (again) and I would be available September 4 or 5 in Miami to discuss this proposal and make a presentation of the process and economics of a commercial plant, if desired. We could develop further the degree of input the City can supply as well as an appropriate time- table to meet the required submission dates. Please let me know as soon as possible what steps you would like UEC to take. JLP/dmd Attachment Sifterely, J. L. P asterer Consultant -ETHANOL "SUPPORTIVE DOCUMENTS FOLLOW" USS Engineers and Consultants, Inc„ a Subsidiary of United States Steel Corporation S 0 - b 3 3 i r O,ork M O UEC PROJECT FOR PRODUCTION OF ETHANOL FROM CELLULOSIC FEEDSTOCKS VIA THE "STOVANOL" PROCESS Cif of Miami Based on the City's rough preliminary estimate of the availability of approximately 100,000 tons per year of bone-dry cellulosic feedstock in the Miami area, it is reasonable to assume the production of at least 5,000,000 gal./yr. of ethanol. It will not be possible to further firm up this estimate until an in-depth survey has been completed which will cover at least the following points: 1. Points of generation and collection of various cellulosic biomass material. 2. Degree of segregation and variety of cellulosic biomass material currently being collected. 3. Cost or value of cellulosic biomass material per dry ton of contained cellulose and hemi-cellulose. 4. Volume of biomass material generated by season or month. 5. Availability of energy supplies, e.g., water, natural gas, oil, steam, electric power, etc. 6. Location and permitting of plant site. 7. Collection of a representative sample of 10-20 tons (bone-dry basis). 8. Commitment of $400,000 to run the sample through the Feedstock Qualification Unit (in Vienna, Austria), collate the data developed and do the process and project engineering necessary to produce a turn -key capital estimate complete with operating costs and return -on -investment. (This would be a full-scale feasibility study). Some further, very preliminary work can be done if an appropriate small - sized sample (50 lbs.) can be collected and analyzed for moisture, ash, cellulose and hemi-cellulose. Feedstock preparation, sizing and cleaning would be covered in the feasibility study. The first six items could be performed by the City of Miami or by separate contract with UEC. <<SUPPOt-1 ! I Y E DOCUMENTS FOLLOW" 06l3 & UEC -z- We would not anticipate the necessity for a market study for sale of the resulting ethanol, as we understand it is the intention of the City of Miami to blend the ethanol into gasohol for use in city vehicles. As we have previously stated, UEC could help the City of Miami prepare a request for submission to DOE, proposing a Feasibility Study as defined above in the amount of $400,000. Our fee to cover this document preparation, assuming no significant additional work over what we have already done, would be $10,000, payable upon Miami's determination to engage UEC to help to prepare a feasibility proposal for submission to DOE. "SUPPORTIVE DOCUMENTS FOLLOW" • UNITED STATES CONFERENCE OF MAYORS ICAO EYE STREET, NORTHWW T WASH W GTON, D.C. 20006 • TELEPHONE: (202) 293.7330 SUMMARY OF SECOND ROUND FEASIBILITY STUDIES SOLICITATION I PROGRAM TITLE: FEASIBILITY STUDIES FOR ALTERNATIVE FUELS I PRODUCTION i i PROGRAM SOLICITATION NUMBER: DE-PS01-80RA50412 AMOUNT OF MONEY AVAILABLE: $100 million, not to exceed $10 million/award DEADLINE FOR APPLICATIONS: September 30, 1980 PROGRAM PURPOSE: To provide financial assistance for feasibility studies leading to the construction and opera- tion of commercial scale alternative fuel production facilities. Feasibility studies are to be performed in sufficient detail to allow grantees to define the means by which they would proceed toward construction and i i operation, considering: j o Technical and economic feasibility o Financing alternatives I o Resource assessment and availability r o Ability to construct and operate a commercial plant in an environmentally i acceptable manner on a selected site. • It is anticipated that efforts will be site and process specific. . ELIGIBLE FACILITIES: Proposals will be evaluated in the resource technology areas described on the attached • sheet., "SUPPORTIVE DOCUMENTS -3- L FOLOW PREPROPOSAL CONFERENCE: Scheduled for August 19, 1980 at 8:30 A.M. in Washington, D.C. at the U.S. Department of Commerce Auditorium (Constitution Ave. bet. 12th & 14th, NW) PROCEDURE FOR SUBMITTING PROPOSAL: Complete and mail the "Intention to Propose" form attached to this package, at the earliest possible date, and request total solicitation package and forms. Separate proposals must be submitted for each area proposed, if more than one technology is desired. Proposals are due on or before 6:00 P.M.(Washington, D.C. prevailing time)on the closing date of September 30, 1980. r EVALUATION OF PROPOSAL: Specific evaluation criteria are included in the solicitation package. First Round awards were an- nounced about five months after the proposals were sought. DOE was unable to say how long it would take to evaluate this round of proposals, but according to UPI, a spokesman promised "we'll move as fast as we can." DOE CONTACT: The designated DOE contact for this solicitation is Mr. Bruce M. Bakaysa. All communications and proposals should cite the Program Solicitation Number and should be addressed to: Mr. Bruce M. Bakaysa U.S. Department of Energy Forrestal Building - Room BH-059 1000 Independence Avenue, SW Washington, D. C. 20585 DOE phone inquiries will be accepted at 202-633-8365. CONFERENCE OF MAYORS CONTACT: For further information contact either Len Simon at 202-293-7330 or Gary Brian Liss at 202-293-7523 "SUPPORTIVE DOCUMENTS FOLLOW" -4- so-633 FEASIBILITY STUDIES' Department of Energy Washington, D.C. 20585 INTENTION TO PROPOSE • PLEASE REVIEW THIS SOLICITATION. IN ORDER THAT WE CAN UPDATE OUR "SOURCE LIST," PLEASE COMPLETE THE ENTRIES BELOW, AND DETACH AND RETURN THIS PAGE BY THE EARLIEST PRACTICABLE DATE. WE _ DO INTEND TO SUBMIT A PROPOSAL. DO NOT INTEND TO SUBMIT A PROPOSAL FOR THE FOLLOWING REASONS: RESOURCE TECHNOLOGY AREA: COMPANY NAME: TELEPHONE: TYPED OR PRINTED NAME AND TITLE: AUTHORIZED SIGNATURE: DATE: RETURN THIS PAGE TO: i U.S. DEPARTMENT OF ENERGY FORRESTAL BUILDING 1000 INDEPENDENCE AVENUE, S.W. ROOM BH-059 WASHINGTON, D. C. 20585 Attn: Bruce M. Bakaysa Program Solicitation No. DE-PSO1-80RA50412 FORM DOE-PO-1P-578 "SUPPORTIVE DOCUMENTS -5- FOLLOW" i C S. 932--ENERGY SECURITY ACT (SYNFUELS)--CONFERENCE REPORT Submitted by Mr. Moorhead on June 19, 1980, H.Rept. 96-1104 HIGHLIGHTS The Conference Agreement on'S. 932: authorizes $20 billion to be dispensed by a new US Synthetic Fuels Corporation, in the form of loans, loan guarantees, purchase agreements, and 4 price guarantees, to encourage synfuels production; - calls for future authorizations of up to $68 billion for Corporation obligations after development of a comprehensive production strategy; —creates a Solar Energy and Energy Conservation Bank to provide $3.2 billion in subsidized loans and matching funds to persons who make energy conservation improvements or install solar energy equipment; - authorizes $1.4 billion in incentives for alcohol production from biomass and municipal waste; - provides other incentives to encourage the use of renewable energy sources; - authorizes utilities to conduct residential energy audits, and expands the role of utilities in financing, supplying and installing conservation measures; i r k i t - authorizes DOE to establish a grants program to train and certify energy auditors; - provides incentives to expand geothermal energy use; requires studies to be conducted on the effects of acid rain and atmospheric carbon dioxide levels; and requires the President to resume Strategic Petroleum Reserve. filling the