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GTSP II Program Plan and Deliverables

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Not a replacement for Clean Coal Power Initiative. These threshold issues were identified in Spring 2003 and have not been resolved ... – PowerPoint PPT presentation

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Title: GTSP II Program Plan and Deliverables


1
The Presidents FutureGen Initiative Ensuring
FutureGens Success
Presented by The Executives of the FutureGen
Industrial Alliance
10 June 2004
2
FutureGen Key Points
  • Industry has demonstrated a strong commitment
  • The Presidents Initiative is in serious jeopardy
  • Lack of Federal funding commitment
  • Adverse impact on base coal RD program
  • Industry Alliance has developed a funding
    solution
  • Use previously appropriated Clean Coal Technology
    funds
  • New appropriations flat through FY07
  • New appropriations through FY09 below FY04 levels
    inflation
  • Stakeholder support
  • Significant benefits
  • Need Administration commitment to proceed

3
A Strong Industry Commitment
  • Aggressive 15-month effort to promote the
    Presidents Initiative including
  • Willingness to commit 200M
  • Congressional staff briefings and testimony
  • Worked closely with House and Senate
    Appropriations Committees
  • Extensive interactions with Administration
    officials
  • Outreach to foreign governments/industry
  • Numerous public presentations to States,
    industry, and NGOs
  • Alliance has strongly supported the Presidents
    Initiative, even in the face of the budget
    uncertainties
  • However, this is not sustainable without
    Administration support

4
The Presidents Initiative is in JeopardyThreats
  • Up-front Federal Funding Commitment Lacking
  • Required for industrial investment
  • Minimizes risk of political failure after site
    selection
  • 80 Federal cost-share customary DOE accounting
    rules
  • Adverse Impact on Coal Research Budget
  • Not at the expense of the base coal research
    budget
  • Not a replacement for Clean Coal Power Initiative
  • These threshold issues were identified in Spring
    2003 and have not been resolved

5
A Funding SolutionTotal Fossil Energy RD Budget
  • Previous appropriations
  • 237M of Clean Coal Technology funds allocated to
    FutureGen
  • New appropriations in addition to previous
    appropriations
  • 673M/yr FY05-FY07
  • 723M/yr FY08-FY09
  • Stakeholder support
  • Politically acceptable
  • Technically achievable
  • Financially prudent

6
A Funding SolutionTotal Fossil Energy RD
Budget FY05-FY09
5.0B What Experts Say Should be Invested
Presidents Initiative Dead
3.6B Business-As-Usual Based on FY04 Levels
3.5B We Can Make It Work
2.6B OMB Guidance
New Appropriations
Committed to FG
At Risk
Previously Appropriated Funds
0.237B
0.237B
0.237B
7
Benefits of the Solution
  • Presidents FutureGen Initiative moves forward
    expeditiously
  • State outreach
  • Positive message on jobs, coal, and the
    environment
  • Presidents 2B Clean Coal Technology commitment
    viewed as fulfilled from industrys viewpoint
  • Presidents Hydrogen and Clear Skies Initiatives
    supported
  • Solution is politically viable

8
Need Administration Commitment
  • New FY06 and out-year budget guidance to DOE
  • Update out-year OMB projections
  • Incorporate this solution into the SAP on the
    Senate and House Interior Appropriations Bills
  • Personal follow-up with Senate and House
    Leadership

9
Back-Up Slides
a Presentation by The Executives of the
FutureGen Industrial Alliance
10 June 2004
10
A Funding SolutionWe Can Make it Work
237M balance allocated to FutureGen in FY05, in
addition to Fossil Energy RD funds outlined
above
  • Clean Coal Technology Account
  • (previously appropriated balance 237M)

Rescinded
11
A Funding SolutionWhat Experts Say Should be
Invested
  • FutureGen is one part of the fossil-based energy
    system
  • Prioritizing RD requires an understanding of the
    complete role of coal
  • DOE-EPRI-Coal Utilization Research Council
    Roadmap
  • Identifies RD and demonstrations required
  • Establishes performance metrics
  • Total investment required to complete coal
    roadmap 12B(a) of which industry will invest
    4.5B.
  • A FY05-FY09 Total Fossil Energy RD Budget of
    5B(b) is required to sustain such an investment
    in the coal roadmap.
  • Includes version 1 roadmap sequestration
    roadmap
  • Total Fossil Energy RD Budget. Assumes all
    non-coal programs are adequately funded.
  • Includes coal roadmap investment
    of 600M/yr 280M/yr in other FE programs.
    Assumes 2/yr inflation.

12
Coal and FutureGen
  • Coal is central to a strong US economy
  • 80,000 direct jobs
  • Coal is the backbone of the US electricity system
  • More than 300 GW of installed coal-fired capacity
  • More than 51 of US electricity is coal-fired
  • Coal is secure
  • 250 years of domestic supply
  • Relatively low price volatility
  • Relatively insulated from physical security
    threats
  • FutureGen advances the technology necessary to
  • Maintain affordable, coal-fueled electricity
  • Fuel a hydrogen transportation infrastructure
  • Manage the potential risks associated with
    environmental issues

13
FutureGen Industrial AllianceMembers
  • Charter Members
  • American Electric Power
  • Cinergy Corp.
  • CONSOL Energy Inc.
  • Kennecott Energy Company
  • PacifiCorp/ScottishPower
  • Characteristics
  • 45 of U.S. Coal Production
  • 20 Coal-Fueled Electricity Production
  • Operations in 30 States
  • Represent all major coal types
  • Broad stakeholder engagement
  • Peabody Energy
  • RAG American Coal Holding, Inc.
  • Southern Co.
  • The North American Coal Company
  • TXU

States w/operations
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