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To: Dennis Roth who wrote (735)	2/8/2007 8:34:17 AM
From: Dennis Roth	Respond to of 1740

Coal plant confident loan will be coming BY KATHERINE E. WHITNEY STAFF WRITER 02/07/2007 thetimes-tribune.com GILBERTON — Despite President Bush’s proposed budget plan that would rescind a $100 million, low-interest loan for the country’s first coal-to-oil plant, John W. Rich Jr. said he doesn’t believe the Mahanoy Township project will lose the money. “I don’t think for a minute that it’s going to prevail,” said Mr. Rich, president of Waste Management & Processors Inc. “We’re confused. … We’re trying to get to the bottom of it.” The federal loan, promised four years ago, was slated to assist the development of the facility that is expected to produce 1,000 construction jobs and 150 full-time positions. WMPI’s proposed plant will be fueled by culm, the mounds of black-particle anthracite coal waste dotting the hills of northern Schuylkill County. The plant is expected to burn 1.7 million tons of coal waste per year, according to the Department of Energy’s environmental impact study. The process will create a clear, zero-sulfur product called syngas to create diesel fuel, jet fuel and naphtha, a light, gasoline-like fraction of crude oil used as a fuel and a solvent. “I really don’t believe we’ll lose the money,” Mr. Rich said. “But it certainly adds an element of confusion.” Mr. Rich said the $800 million project has been in the works for nearly 13 years and could be completed within the year. In 1999, the state offered WMPI $47 million in tax credits for the project. In 2000, Mr. Rich’s plan won a competitive $7.7 million cost-share investment from the U.S. Department of Energy. Then, in 2003, the federal government promised $100 million through its clean coal power initiative. Mr. Bush’s budget proposal will be reviewed by Congress over the next eight months until the federal budget is adopted, traditionally Oct. 1. “It doesn’t make sense,” Mr. Rich said. “During his State of the Union address (Jan. 31), the president said he wanted the country to reduce its dependence on foreign oil. … it’s just inconsistent.” “I’ve been on the phone all day trying to get an explanation for this,” said U.S. Rep. T. Timothy Holden, D-Schuylkill County. “To redirect the money without explanation is unbelievable. … We were all blindsided.” Although Mr. Rich said he doesn’t believe the loan will be rescinded in the long run, he said this unexpected news is not going to expedite the project. He said he didn’t know whether the project would continue without the money, but planned to fight for it. “We haven’t relented and don’t intend to,” he said. Contact the writer: kwhitney@republicanherald.com

To: Dennis Roth who wrote (735)	2/8/2007 8:36:20 AM
From: Dennis Roth	Respond to of 1740

Pennsylvania : Pennsylvania Governor Rendell Urges President To Reverse Course, Restore Funding To Nation's First Coal-To-Liquid-Fuel Plant Posted by Patriot on 2007/2/8 9:51:22 (11 reads) allamericanpatriots.com $100 Million Zero-Interest Loan for Schuylkill County Plant Cut from Proposed $2.9 Trillion Federal Budget Feb. 7, 2007 -- HARRISBURG — Pennsylvania Governor Edward G. Rendell today called on President Bush to restore critical funding in the federal budget for development of the nation’s first plant designed to convert waste coal into clean-burning diesel fuel in Schuylkill County. A promised, $100 million, no-interest loan to help with construction and startup costs for the $800 million plant was removed from the proposed federal budget that was released on Monday. The loan was promised by the Department of Energy in 2003. The plant operator, Waste Management and Processors Inc., began preliminary work at the site in the fall of 2006 and was preparing to start construction in the spring. “The president, in his State of the Union address, promised to promote clean coal technologies and lead the charge for cutting America’s reliance on oil, but his new budget instead cuts funding for a very promising solution to our energy needs,” Governor Rendell said. “I am calling on the president to reverse course, keep his word and restore the funding for America’s first waste-coal-to-diesel plant.” The proposed plant would convert 1.7 million tons of waste coal per year into 60 million gallons of non-petroleum based liquid fuel, of which 40 million gallons will become zero-sulfur diesel fuel and 20 million gallons will become naptha, a gasoline production feedstock. “We are doing far more than simply funding research,” Governor Rendell said. “We have assembled a coalition of government and private businesses that will purchase nearly all the product generated by the plant for the next 10 years, guaranteeing that this new technology will have the opportunity to survive and compete in the energy marketplace.” U.S. Senator Arlen Specter and Congressman Tim Holden, whose district encompasses the plant, have worked toward development of this project for nearly a decade. Governor Rendell promised to work with both of them, along with newly-elected U.S. Senator Robert Casey Jr. and the rest of Pennsylvania’s congressional delegation, to coordinate a united, bipartisan effort to restore funding for the plant. In addition to creating liquid fuels to reduce imports of foreign oil, the proposed plant would – at no cost to the taxpayers -- reclaim dangerous abandoned mine sites and remove waste coal piles that pollute waterways. Pennsylvania has over two billion tons of waste coal, and more than 180,000 acres of abandoned mine lands left over by the unregulated mining practices of the past. Governor Rendell recently unveiled his Energy Independence Strategy, an initiative that will invest $850 million to significantly expand Pennsylvania’s alternative-fuel and clean-energy industries, stabilize electricity rates for businesses, reduce dependence on foreign oil and cut consumer energy costs by $10 billion over the next 10 years. The Governor’s proposal calls for replacing all imported fuel with homegrown renewable fuel sources such as ethanol and biofuels and offers incentives for electricity generators to invest in conservation measures. Source: Pennsylvania Governor's Office

To: Dennis Roth who wrote (735)	2/10/2007 8:26:22 AM
From: Dennis Roth	Respond to of 1740

Politicians battle for energy funding BY STEPHEN J. PYTAK STAFF WRITER spytak@republianherald.com 02/09/2007 republicanherald.com GILBERTON — The governor and members of Congress are calling on President Bush to restore the $100 million low-interest loan to WMPI Pty LLC for the coal-to-oil project slated for Mahanoy Township. “The president, in his State of the Union address, promised to promote clean coal technologies and lead the charge for cutting America’s reliance on oil,” Gov. Ed Rendell said Wednesday, “but his new budget instead cuts funding for a very promising solution to our energy needs.” John W. Rich Jr., president of WMPI Pty LLC, has been working on the $800 million coal project for 13 years. A coal-gasifier would turn anthracite culm waste to a zero-sulfur diesel fuel. When the president revealed his proposed budget Monday, a $100 million low-interest loan through the U.S. Department of Energy’s Clean Coal Power Initiative wasn’t part of it. “I am aware that the recipient of this award has been working diligently for some time to address and resolve complex issues necessary to conclude a cooperative agreement,” Sen. Robert P. Casey Jr., D-Pa., said Thursday. Despite that, Casey said, Rich was given no “fair warning” the keystone of his funding plan would be stripped away by the U.S. Department of Energy or the U.S. Office of Management and Budget. “This was right out of the pure blue,” Rich said Thursday night. “As a long-term advocate of this project,” Sen. Arlen Specter, R-Pa., said Thursday, “I am disappointed and disturbed that I was not notified of this possible course of action before it was announced in a formal administration budget submission.” Rendell sent a letter to President Bush, Rendell’s press secretary, Kate Philips, Harrisburg, said Thursday. Both Casey and Specter sent letters to Secretary of Energy Samuel W. Bodman and Robert J. Portman, director of the Office of Management and Budget, requesting they reconsider reinstating funding for the nation’s first coal-to-diesel project. On Tuesday, U.S. Rep. T. Timothy Holden, D-17, indicated he also intended to approach the administration on the matter. He could not be reached for comment Thursday. Rich said he’s had trouble sleeping since he heard about Bush’s proposed budget. “It was practically the endorsement of the DOE,” Rich said Thursday. Without it, Rich only had two other government incentives backing his project: $47 million in tax credits the state offered him in 1999 and a $7.7 million competitive cost-share investment from the U.S. Department of Energy Rich won in 2000. “Them making this suggestion concerns potential investors and we have negotiations that are underway that are in jeopardy because of it,” he said. “And all these delays mean that the costs continue to go up because of the pressure the Chinese are putting on the market. They’re not holding back.” When he received a copy of Specter’s letter Thursday, Rich said it gave him hope. He stuffed it in his pocket and carried it around the rest of day. The legislators will have opportunities to recommend changes to the president’s proposed budget before it’s given final approval Oct. 1. “Our delegation has jumped on this,” Rich said, “and it’s phenomenal how passionate they are about defending our position.” ©The REPUBLICAN & Herald 2007

To: Dennis Roth who wrote (735)	2/12/2007 11:41:54 AM
From: Dennis Roth	Respond to of 1740

Legislators petition for coal-to-fuel funds standardspeaker.com

To: Dennis Roth who wrote (735)	2/18/2007 5:58:54 PM
From: Dennis Roth	Read Replies (1) \| Respond to of 1740

Loan to Pa. waste coal-to-fuel plant money won't be taken away KIMBERLY HEFLING Associated Press mercurynews.com WASHINGTON - The White House, reversing course, reinstated a $100 million loan to the backers of what has been billed as the nation's first plant to convert waste coal into zero-sulfur diesel fuel and home-heating oil. The decision was announced Friday in a joint statement by Pennsylvania Sens. Arlen Specter and Bob Casey and Rep. Tim Holden, D-Pa. Lawmakers on Feb. 5 were surprised to see a line buried in President Bush's proposed budget that would take away a loan promised in 2003 for the Schuylkill County plant because its backers had not yet secured full funding. Under an agreement, the plant backers now have until the end of the year to secure funding for the facility before the loan is rescinded, according to the lawmakers. Sean Kevelighan, a spokesman with the Office of Management and Budget, said the decision was reached after Specter arranged a meeting with the parties involved. "At a time when our nation is grappling with energy security, we should be using every incentive and tool at our disposal to promote clean coal-to-liquid technology in the U.S.," Specter said in a statement. The $800 million facility is to be built between an existing plant in West Mahanoy Township and the Mahanoy state prison. A study said it would burn 1.7 million tons of anthracite coal waste per year, creating a clear, zero-sulfur product called syngas to formulate diesel fuel, jet fuel and naphtha, a fuel and solvent. ========= Plant will keep loan BY LESLIE RICHARDSON STAFF WRITER lrichardson@republicanherald.com 02/17/2007 republicanherald.com GILBERTON — The loan to help fund a coal-to-fuel plant is back on the table. The decision was announced Friday in a joint statement issued by U.S. Sens. Arlen Specter and Bob Casey and U.S. Rep. T. Timothy Holden. The lawmakers on Feb. 5 were surprised to see a line buried in President Bush’s proposed budget that would take away a loan in the amount of $100 million promised in 2003 to the backers of WMPI Pty LLC for a coal-to-oil project in Mahanoy Township. “We, Gov. Rendell, Sen. Specter, Sen. Casey and myself, were never quite sure why the loan was revoked to begin with,” Holden said Friday. “We had a good conversation with Rob Portman, director of Office Management and Budget, as to why the decision was made and he said he would look into it.” “The president, in his State of the Union address, promised to promote clean coal technologies and lead the charge for cutting America’s reliance on oil,” Rendell said last week. “But his new budget instead cuts funding for a very promising solution to our energy needs.” John W. Rich Jr., president of WMPI, has been working on the $800 million coal project for 13 years. A coal-gasifier would turn anthracite culm waste to a zero-sulfur diesel fuel and home heating oil. Without the loan, Rich had only two other government incentives backing his project — $47 million in tax credits the state offered him in 1999 and a $7.7 million competitive cost-share investment from the U.S. Department of Energy that Rich won in 2000. The White House reversed its course, and under an agreement, the plant backers now have until Dec. 31 to secure funding for the facility before the loan is rescinded, according to Holden. Casey said last week that Rich was given no fair warning the majority of his funding plan would be taken away. “I haven’t even figured out what happened in the first place,” Rich said Friday. “The president talked about less dependence on foreign oil, so I figured it was just a mistake. I have faith in the system.” Both Casey and Specter sent letters to Secretary of Energy Samuel W. Bodman and Portman requesting they reinstate funding for the nation’s first coal-to-diesel project. Sean Kevelighan, a spokesman with the Office of Management and Budget, said the decision was reached after Specter arranged a meeting with the parties involved. “Governor Rendell did a good job communicating the usefulness of the off-product,” Holden said. “He said the commonwealth would take all the product for the fleet or for home heating oil. He stressed the importance of energy independence.” “We are continuing as we were. We are moving ahead with all of the detailed engineering work that has to be done and continuing with our development efforts,” Rich said. “Spending close to $1 billion a day to buy foreign oil is not good for our nation. Taking coal and producing ethanol, and biodeisel is the right thing to be doing. It will keep money and jobs in this country.” The proposed facility is slated to be built next to the State Correctional Institution/Mahanoy. A study said it would burn 1.7 million tons of anthracite coal waste per year, creating a clear, zero-sulfur product called syngas to formulate diesel fuel, jet fuel and naphtha, a fuel and solvent. ©The REPUBLICAN & Herald 2007