REQUEST FOR PROPOSALS

RFP08-1

FOR

RESEARCH AND DEVELOPMENT OF ILLINOIS COAL

Illinois Department of Commerce and Economic Opportunity

Office of Coal Development

through the

Illinois Clean Coal Institute

This Request for Proposals (RFP) is intended for all qualified research organizations, including, but not limited to, universities, colleges, not-for-profit laboratories, national laboratories, and small businesses. Preference will be given to proposals from Illinois organizations conducting research, including subcontracts, in Illinois. If there is a compelling reason for doing work outside the state, it must be justified and will be considered on an individual basis. Industry participation will be viewed favorably. Neither receipt of this RFP from the DCEO, nor the submission of a proposal in response to this RFP confers any rights upon the offerer. The issuance of this RFP does not obligate the DCEO or the ICCI to award a contract or to pay any costs incurred by the offerer in preparation and submission of a proposal.

TABLE OF CONTENTS

RESEARCH AND DEVELOPMENT PROGRAM FUNDING AREAS……….………………...….. 11. Carbon Management………………………………………………................................................. 12. Coal Gasification…...……………………………………………………………………...…....…. 3

2.1 Economics of Coal Gasification ………………………………………………………….…. 32.2 Coal Liquids…………………………………………………………………………………. 62.3 Syngas Cleanup……………………………………………………………………………… 82.4 Gasification Byproducts……………………………………………………………………... 8

3. Advanced Coal Mining Technologies……………………….….……………………………….... 94. Coal Preparation and Other Production Business Practices…………….……………..………...... 115. Power Generation and Plant Efficiencies ………………………..……………………….............. 136. Flue-Gas Cleaning, Mercury Emissions and Other Air Toxics…………………………………… 167. Coal Chemistry…………………………………………………………………..……………..…. 188. Commercialization and Technology Transfer…………………………………………………….. 199. Other Research…………………………………………………………………………………….. 20

REQUIREMENTS FOR SUBMISSION OF PROPOSALS..................................................................21

PROPOSAL RESPONSIVENESS............................................................................................................22

THE PROPOSAL REVIEW PROCESS..................................................................................................23

PROPOSAL FORMAT, DEADLINE AND SUBMISSION...................................................................26

DETAILED INSTRUCTIONS..................................................................................................................27Section 1. Instructions for the Application Form..................................................................................28

Application Form......................................................................................................30Section 2. Title and Abstract Page........................................................................................................31Section 3. Executive Summary.............................................................................................................31Section 4. Description of Technology...................................................................................................31Section 5. The Market for the Proposed Technology or Information...................................................31Section 6. Proposed R&D and Statement of Work...............................................................................32

6.1 Project Objectives and Approach..................................................................................326.2 Statement of Work........................................................................................................326.3 Deliverables...................................................................................................................336.4 Project Schedule............................................................................................................33

Section 7. Project Management Plan.....................................................................................................34Section 8. Project Cost Proposal...........................................................................................................35

8.1 Instructions for Direct Labor and Benefits....................................................................35Form 8.1 Direct Labor and Benefits........................................................................36

8.2 Instructions for Itemized Non-Labor Project Costs......................................................37Form 8.2 Itemized Non-Labor Project Costs...........................................................38

8.3 Instructions for Contract Pricing by Task.....................................................................39Form 8.3 Contract Pricing by Task..........................................................................40

8.4 Instructions for Budget Summary & Contributions from Other Sources......................41Form 8.4 Budget Summary & Contributions from Other Sources…......................42

8.5 Project Management Statement.....................................................................................43Section 9. Subgrant Review Certification.............................................................................................44

Carbon Management

RESEARCH AND DEVELOPMENT PROGRAM FUNDING AREAS

The program funding areas listed below cover a broad range of technology that has the potential to influence the utilization of Illinois coal. These areas are not listed in order of priority.

Carbon Management Coal Gasification

Economics of Coal Gasification Coal Liquids Syngas Cleanup Gasification Byproducts

Advanced Coal Mining Technologies Coal Preparation and Other Production Business Practices Power Generation and Plant Efficiencies Flue-Gas Cleaning, Mercury Emissions, and Other Air Toxics Coal Chemistry Commercialization and Technology Transfer Other Research

1. Program Area – Carbon Management

This program area targets two of the best known greenhouse gases – carbon dioxide (CO2) and methane (CH4). CO2 occurs naturally in the Earth’s atmosphere, but according to the Department of Energy (DOE), atmospheric levels of CO2 have risen from pre-industrial levels of 280 parts per million (ppm) to present levels of 375 ppm. Evidence suggests this observed rise in atmospheric CO 2 levels is due primarily to expanding use of fossil fuels for energy. Predicted increases in future global energy use have prompted calls to regulate CO2 emissions and sequester them deep underground in geologic formations. The DCEO/ICCI has been and continues to support projects in this area, including cost sharing of a major multi-state effort with one of the seven DOE-sponsored consortiums. The Midwest Geological Sequestration Consortium – Illinois Basin (MGSC) led by the Illinois State Geological Survey (ISGS) is investigating sequestration opportunities in coal seams, oil reservoirs and deep saline aquifers.

According to the Intergovernmental Panel on Climate Change, CH4 is 23 times more warming than an equivalent amount of CO2 released into the atmosphere. However, unlike other greenhouse gases, methane can be used to produce energy since it is a major component of natural gas. Methane stored on the internal surfaces of coal is referred to as coal bed methane (CBM). Methane emitted in the course of coal mining and processing is called coal mine methane (CMM), which is the fourth leading source of methane emissions resulting from human activity according to the US Environmental Protection Agency (EPA). Ongoing research has significantly improved technologies used to measure and recover CBM. Using this technology, recent ISGS studies suggest that the actual gas content of Illinois coal is much higher than previous DOE estimates. Furthermore, since Illinois is home to one of the largest coal reserves in the nation, the DCEO/ICCI continues to support efforts to develop and employ CBM recovery technologies specific to the Illinois Basin. Because of coal’s greater affinity for CO2 than CH4, CBM recovery can be enhanced by sequestering CO2

in coal seams (ECBM). CO2 sequestration also enhances recovery from oil reservoirs (EOR). ECBM is not practical for all coal seams in Illinois because of future mining potential and CO 2 migration concerns for shallow seams, and the operational inability to perforate and stimulate thinner seams. Nonetheless, the ISGS has estimated that coals in the Illinois Basin have the potential to store 3,400 MMtonnes of CO2

and produce 12.5 Tscf of ECBM.

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Carbon Management

The priorities in this program area are:

1.1A. Carbon Dioxide Sequestration.

Coordinate research and development efforts with ISGS studies. Investigate sequestration-readiness of emissions from gasification facilities.

1.1B. Carbon Dioxide Capture.

Investigate and advance solid or liquid alternatives to or improvements in amine adsorption for concentrating CO2.

Conduct studies on dilute flue gases from coal combustion or syngas from coal gasification. Processes must be chlorine tolerant and must address effects of sulfur and trace element

content in the flue gas. Processes must be energy efficient with the lowest possible installation and operating cost. Determine the effect that the end use of CO2 has on process requirements and economics,

including the quality of CO2 (e.g. pressure, purity, moisture, etc.). Address methods for efficient compression of CO2. Development of sorbents is not a priority.

1.1C. Development of practical methods for recovering methane from Illinois coal seams.

Emphasis should be on economic feasibility. Stand-alone CBM recovery and CBM recovery enhanced by CO2 sequestration (ECBM) may

be considered separately or in combinations. Efforts to capture and/or utilize CMM or ventilation air methane (VAM) must comply with

all applicable Mine Safety and Health Administration (MSHA) statutes.

2

Coal Gasification

2. Program Area – Coal Gasification

Near-zero emission coal gasification coupled with CO2 sequestration has taken center stage in the past year due to DOE’s FutureGen plan for building a model coal gasification/power production system that will also be used as an experimental base for new gasification developments. After Mattoon, Illinois was selected as the FutureGen site, DOE changed its mind and is currently planning on breaking the program into several pieces. Illinois is hoping that they will reconsider this change and continue with FutureGen.

Coal gasification considers activities related to the economical conversion of coal into gaseous products, either as an end product for sale or as an intermediate for power production or products such as Fischer-Tropsch liquids. The emphasis has been on production of low-cost power in compliance with environmental regulations and CO2 sequestration. Interest in the generation of chemical intermediates such as hydrogen, organic chemicals, and diesel fuel, either alone or in conjunction with power generation, is increasing. While the ICCI believes that the use of gasification is the ultimate method for environmentally acceptable use of Illinois coal, it is a long-term technology. With the high cost of natural gas, a near-term implementation of this technology may be the installation of coal gasifiers in connection with a natural gas-fired combined-cycle utility. Proposers are also referred to the Industrial Gasification Park concept discussed in Section 5.

This area has been divided into the following categories:

Economics of Coal Gasification Coal Liquids Syngas Cleanup Gasification Byproducts

2.1. Economics of Coal Gasification

The economics of coal gasification are quite complex and many factors must be investigated to estimate the economic viability of any proposed installation. The size of the plant is the first consideration and is determined primarily by the demand for the end product (IGCC, chemical production, or polygeneration). In addition, the size and location of extractable coal reserves available will influence the siting, along with infrastructure for operation of the gasifier complex. A major need in this area is a compilation of coal reserves in Illinois that could supply a typical gasifier for a thirty-year life period. This would be based on existing data that should be publicly available.

Many other factors influence the economics of coal gasification and require investigation/definition, e.g. permitting factors and carbon management. A major factor in siting/economics of coal gasification is water usage. Several studies1,2 have been conducted defining water usage in coal gasification for both IGCC and hydrogen production. Using these as the basis, it would be beneficial to undertake studies in methods for lowering water usage in coal gasification.

Finally, the effects of the coal properties (Illinois bituminous, PRB, etc.) and the depth of coal cleaning on the gasification system are of interest. This would also include an analysis of which systems would have the greatest effect on efficiency/economics. Conclusions from this study should result in recommendations of priority in research and development to yield the maximum increase in economic benefits.

1 http://www.netl.doe.gov/technologies/coalpower/gasification/pubs/pdf/WaterReport_Revised%20May2007.pdf2 http://asap.sustainability.uiuc.edu/members/michellewander/ihsq

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Coal Gasification

The priorities in this area are:

2.1A. Illinois coal reserves available for gasification.

A typical coal gasification facility would consist of one or more gasifier trains. The current standard gasifier train will process 2,500 tons of coal/day (approximately 300 MWe). If we assume two standard gasifier trains and a requirement of a 30 year life expectancy for the plant, the coal reserve that would be needed would be at least 50 million tons of extractable coal. In addition to location of these reserves, the location, size, and availability of infrastructure support systems will influence siting of the plant. To help prospective investment in coal gasification in Illinois, it would be helpful if these coal reserves were easily identifiable and their relationship defined with respect to the infrastructure needed for operation. This final study would include, but not be limited to:

A mapping of the size and location of Illinois coal reserves with at least 50 million tons of extractable coal.

Indication of sites suitable for carbon dioxide sequestration, their capacity, and any existing piping available for this purpose.

Overlays of existing railroads and navigable waterways. Overlay of existing pipeline systems that could transport H2/syngas. Overlay of available water resources and overlay of the Illinois power grid. Overlays of developed areas, such as cities, and recreational areas, such as lakes and forests. Identification of the owners or companies that control the reserve. Properties of the coal, such as Btu, S, Cl, moisture, ash and trace metal content. Suitability of mining (depth and thickness of seam; most appropriate mining method).

2.1B. Carbon management in coal gasification.

Carbon management will be controlled in the near future and any coal gasification installation must address the technology, permitting, economics, etc., dictated by this issue. A major factor will be the degree of carbon sequestration/reduction that must be met. An analysis of carbon management for a typical Illinois coal gasification unit would include, but not be limited to:

Effect of degree of carbon reduction/sequestration mandated (e.g. 25%, 50%, 100%). Compare effects of carbon management on IGCC vs. Chemicals Production vs.

Polygeneration. Determine effects of the end use of CO2 on process requirements and economics, including

the quality of CO2 (e.g. pressure, purity, moisture, etc.). Compare economics of currently commercial coal gasification systems. Effect of gasifier size on carbon management technology and economics. Compare/contrast overall gasification systems. Compare effect of individual sections for each gasification system on carbon management. Compare the most current published data on capital and operating costs on equivalent basis. Identify available sources of economics.

4

Coal Gasification

2.1C. Analysis of coal gasification permitting issues in Illinois.

Various permitting issues must be addressed for any coal gasification installation and an analysis of these requirements with recommendations for resolution would be helpful in future planning. A typical gasification installation of 5,000 tons/day of coal (two typical gasification trains) must be assumed. The areas to be addressed would include, but not be limited to:

Investigation of greenfield vs. brownfield sites, and the effect of installation size. Water usage and air permits. Carbon management – long term sequestration.

2.1D. Methods for reduction of water usage in coal gasification systems.

Based on previous studies defining water usage in coal gasification, an investigation of methods for reducing this water usage is of interest. The factors to be considered would include, but not be limited to:

Define end product (IGCC, chemicals/syngas, polygeneration). Define coal gasification systems to be studied. Effect of installation size (standard is 5,000 tons/day of coal). Analysis should be on a consistent basis. Define quality of water streams. Estimate quality and size of discharge streams. Define each complete gasification system which should include, at a minimum, coal

handling, oxygen generation (if oxygen blown), gasifier, gas cleanup, water-gas shift (if required), and ash handling.

Compare/contrast overall gasification systems for water usage. Compare water usage of individual sections for each gasification system. Compare effects of water usage on siting and capital/operating economics. Identify available sources of economics.

2.1E. Effects of coal properties on downstream gasification systems.

Individual coal properties such as moisture, S, Cl, Hg, and ash content will affect the design and operation of individual coal gasification systems. This priority would result in a compilation of current commercial gasification systems and the effects of individual coal properties on the design, capital cost, and operation of each system.

End product should be a listing of current commercial coal gasification systems showing effects of coal properties on their construction/operation and economics.

Define gasification system(s) to be used. Perform parametric modeling of effect of coal properties such as sulfur, Btu, moisture, ash,

etc., on individual systems such as oxygen requirements, gasifier size, temperature, pressure, sulfur and trace element removal systems, etc.

Perform parametric analysis of improvements in individual elements on downstream systems, especially in terms of sulfur, mercury, oxygen generation efficiency, etc. (e.g. if oxygen generation efficiency is increased by 5% what are the effects downstream?).

Effect of combined biomass and coal gasification may be considered. Consider effect of coal prep plant to improve coal properties. Estimate size and distribution of Illinois coal reserves with the desired properties. Make recommendations for research/development.

2.1F. Economics of systems for combined coal and biomass gasification.

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Coal Gasification

As Illinois is both a major agrarian and coal producing state, the combined use of biomass and coal for gasification is of interest. Proposed systems should fully define:

Gasification technology(ies) to be used. Specify separate or combined gasifiers. Indicate biomass to be used and its source. Determine degree of reductions in carbon emissions due to use of biomass. Compare economics to that of straight coal gasification.

2.2. Coal Liquids

Due to high crude oil prices and the national interest in minimizing oil imports, there is renewed interest in coal gasification to produce transportation fuels, chemicals and intermediate feedstocks. An industrial gasification park would have a central coal gasification section that could feed the syngas produced to an electrical utility for power generation as well as provide a supply of high purity hydrogen and syngas for the production of fertilizers, chemicals, and various intermediate feedstocks. Formation of the Coal Fuels Alliance (Purdue University, Southern Illinois University, and the University of Kentucky) has also spurred renewed interest in the production of transportation fuels from Illinois-basin coal.

There is significant interest in both ethanol and bio-diesel for use as transportation fuels. Because of its enormous agricultural industry, Illinois is uniquely suited to develop both of these renewable fuel sources. The ICCI believes that Illinois could become the US energy center by developing both biofuels and fuels from coal. In fact, there may be synergies in combining these technologies. One such synergism could be the utilization of low temperature heat from exothermic steps in coal gasification to supply some of the heat required for the production of these renewable fuels. Combinations of technologies could lead to significant increases in efficiency and cost reductions. Another example of an industrial application is the use of Illinois coal to supply both power and process heat for production of ethanol.

The priorities in this area are:

2.2A. Use of syngas for the production of intermediate feedstocks.

Although Fischer-Tropsch (FT) chemistry has been extensively investigated, the ICCI is interested in novel or improved technology for the production of chemicals and intermediate feedstocks from syngas.

Syngas would replace natural gas or oil as the basic raw material in the process. Investigation of new chemical pathways can be explored. Technology should improve on capital and operating economics of existing methods.

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Coal Gasification

2.2B. Coal-derived fuels.

Illinois was instrumental in the formation of the Coal Fuels Alliance and the ICCI is interested in new technologies for the production of liquid fuels from coal syngas. Any proposed work that will be considered should include:

Use of syngas for FT conversion to liquid fuels such as low-sulfur diesel. Improvement of existing FT process. Novel methods of producing liquid fuels from syngas. Comparative testing of existing and novel FT catalysts. Development of optimal catalysts for production of liquid transportation fuels by single-stage

FT processes. Novel methods for upgrading FT liquids. Evaluate economics of the process. Removal of sulfur and mercury compounds is of prime interest.

2.2C. Synergies in the production of biofuels and coal gasification.

Synergies in combining coal gasification with the production of biofuels could lead to significant cost and energy savings for both systems. One such synergism could be the utilization of low temperature heat from exothermic steps in coal gasification to supply some of the heat required for the production of these renewable fuels. Combinations of technologies could lead to significant increases in efficiency and cost reductions. In this area, the ICCI strongly suggests collaboration between biofuel and coal gasification investigators. The ICCI is interested in funding research in the following areas:

Investigation of improved product properties from combined coal/biomass liquids production such as:

Lubricity of FT liquids. Cetane number. Combustion properties. Emissions. Reduction in swelling of rubber gaskets or tubing.

A techno-economic analysis of one or more of the following cases to determine beneficial synergies: 1) Gasification of Illinois coal plus ethanol production; 2) Gasification of Illinois coal plus bio-diesel production; 3) Gasification of Illinois coal plus production of both ethanol and bio-diesel.

The lowering of net CO2 emissions with combined coal/biomass liquids production should be included.

Proposal must define the system to be investigated. Parametric studies of system operating conditions vs. efficiency and costs should be

included.

7

Coal Gasification

2.3. Syngas Cleanup

The downstream systems of the coal gasification unit are a very expensive portion of any gasification system. Both capital and operating costs are significant, and lowering these costs is imperative to make coal gasification economically attractive.

The priorities in this area are:

2.3A. Advanced methods of syngas cleanup.

Removal of H2S, NH3, particulates, and other undesirable byproducts from crude syngas streams remains one of the most expensive parts of any coal gasification system. Methods for purification of the syngas that will lower capital and operating costs are needed to advance the technology.

Define intended use of syngas and purity required. Hot-gas cleaning purification systems are preferred. Address removal of mercury and other trace metals. Must be an alternative to or an improvement of current methods of amine scrubbing. Define level of impurities in inlet and outlet streams. If a sorbent is to be used, it must be in an advanced stage of development.

Proposers who are interested in CO2 removal from syngas should also refer to Section 1, Carbon Management.

2.4. Gasification Byproducts

There are two major byproducts from coal gasification, elemental sulfur and slag/bed material. Sulfur is produced from the cleanup of the syngas and is frequently touted as a major economic asset to offset the cost of the gasification process. Coal ash will be removed as either a molten slag or combined with spent limestone if a fluidized bed is used to remove a portion of the sulfur. Both sulfur and slag/ash may be thought of as byproducts. The priority in this area is limited to a study of the market for the sulfur produced from coal gasification facilities in Illinois and surrounding states:

2.4A. Market for sulfur from coal gasification.

Define current uses of sulfur and size of market. Define sulfur purity requirements. Show major sulfur customers and their proximity to sulfur producers. Indicate impact on sulfur market of the production from coal gasification.

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Advanced Coal Mining Technologies

3. Program Area – Advanced Coal Mining Technologies

According to the Illinois State Geological Survey, more than 211 billion tons of identified coal resources lie beneath 68% of the State’s surface. Illinois’ demonstrated coal reserve base is the second largest in the United States and, for bituminous coal, is the largest in the nation. The energy content of Illinois’ coal resources is more than all of the oil reserves of Saudi Arabia and Kuwait combined. Coal makes up nearly 85% of US fuel resources and, at current rates of consumption, should last for more than 250 years. Coal plays an important role in the nation’s energy mix, accounting for nearly one-third of all energy produced and more than one-half of electricity generation. The electricity generating industry is by far the largest user of Illinois coal. Soaring energy prices and coal’s continued position as the lowest-cost fossil fuel mean the demand for coal is strong.

Coal is often the fuel of choice because it is not only the lowest cost fuel, but has shown remarkable price stability over the years. Recent surges in the price of other energy sources have brought attention back to readily available US coal resources, and Illinois’ vast bituminous coal reserves. However, there is a wide disparity in regional coal prices that continues to favor coal producers in other states. For Illinois to take advantage of current and future market conditions, given the State’s central geographic location requiring direct competition with lower cost producers in the west, lowering the delivered cost per ton of Illinois coal must be a high priority. Cost reductions can best be accomplished by maximizing mine productivity.

The coal mining industry in Illinois is now in its fifth year without a fatality. However, recent industry disasters in other states continue to paint the industry with a negative image and point to the need for improved or additional resources that provide increased safety in today’s mines. Research has shown that safety and productivity go hand in hand. Thus, while maximizing productivity is important, projects in this area must focus to some degree on insuring the health and safety of miners.

The priorities in the program area of Advanced Coal Mining Technologies are:

3.1A. Increasing efficiencies.

In the past 25 years, the coal industry has experienced an extensive application of complex continuous systems capable of remarkably high production rates. The ICCI supports efforts to develop the full potential of these systems. Such efforts would include, but not be limited to the following:

Haulage efficiency – bed design for capacity optimization, engine or power unit performance, tire performance, battery life between recharges, etc., for both surface and underground equipment.

Cycle times – optimizing haulage routes, cut sequences, bolting functions, belt moves and other repeated functions.

Maintenance – reducing costs and increasing equipment availability. Extraction ratio – increasing recovered fraction of coal reserves.

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Advanced Coal Mining Technologies

3.1B. Developing new mining technologies.

Historically, mine productivity has benefited greatly from technological advancements in mining equipment, such as longwall mining, remote-controlled miners, continuous haulage, and high-voltage equipment. The ICCI supports mining companies and equipment manufacturers who are willing to advance cutting edge mining technology by developing and demonstrating new ideas. Such efforts would include, but not be limited to the following:

Horizon control technology on mining machines. Automated roof bolting. High tech communication and monitoring systems. Exploration technologies for defining reserve characteristics with less drilling. Remote mining systems. Energy efficient conveyor belts, ventilation networks, supply systems and other support

functions.

3.1C. Training.

Mining takes place in a hazardous environment with sophisticated equipment. A substantial amount of task training is required for a new miner to become proficient. Regular refresher training is required to maintain critical skills and an alert awareness of hazards as well as to meet government regulations. Industry trends point toward an aging workforce and a lack of skilled replacement workers to meet increasing demands for coal. The ICCI supports training programs that would involve a collaborative, cost-shared effort between educational institutions, government agencies, and the mining industry, and focus on accomplishing the following:

Provide mine-specific training on improving cycle times, reducing out-of-seam dilution (OSD), etc.

Develop tools for measuring the success of training programs. Provide career enhancement training programs focused on specific mine related skills. Provide training to develop a labor pool with all of the necessary general mining skills.

3.1D. Improving health and safety.

The coal industry has made tremendous strides in improving the occupational environment. However, coal mining is still a hazardous occupation and miners continue to get hurt or killed. The ICCI believes that every effort should be made to provide technology that enhances safety in the mine environment and supports continuing efforts in the following areas:

Improving dust control with new or more efficient technology. Improving noise control with sound damping construction materials, better designed motors,

or noise control devices that are acceptable to both the mining and regulatory communities. Developing systems for continuous monitoring of mine environment and conditions. Improving ground control or the stability of mine openings with the use of backfilling or

optimally engineered mine openings. Developing better methods and/or materials for sealing abandoned areas that take into

account more stringent MSHA regulations.

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Coal Preparation and Other Production Business Practices

4. Program Area - Coal Preparation and Other Production Business Practices

Due to the geology of Illinois coal seams, raw (run-of-mine) coal typically contains rock that must be removed from the coal before it can be used. This process of cleaning or preparing the coal is called coal preparation, a production business practice that adds to the overall cost of producing coal. Transporting coal from the mine to the consumer adds additional costs. Obviously, coal producers want to minimize all of these add-on costs.

This program area is concerned with all that happens to coal from the time it comes out of the mine until its final end use. Almost without exception, coal preparation involves “washing” or the use of water. Since moisture adversely affects the heating value of coal, dewatering is a critical issue in coal preparation. The efficiency and operating cost of dewatering equipment is related to the size of the coal on which it operates with efficiency decreasing and cost increasing as particle size decreases. Currently, most mines in Illinois discard fine coal below 100-mesh (0.15 mm) in size considering dewatering for that size material to be uneconomical. This wastes a valuable resource that has already incurred mining costs and is of the highest quality when cleaned with readily available technology. Advanced coal cleaning technologies developed in previous projects funded by the DCEO/ICCI have been quite successful at recovering and dewatering this fine coal. The ICCI strongly supports applied research leading to eventual commercialization of these demonstrated technologies.

The ICCI believes that “clean coal technology” includes pre-utilization technology that efficiently removes inert material from raw (run-of-mine) coal yielding a high-value marketable commodity requiring minimal amounts of post-utilization technology to clean-up or control emissions and byproducts. Furthermore, the ICCI believes that the unit cost of pre-utilization clean coal technology is substantially lower than the unit cost of post-utilization clean coal technology. The ICCI has been successful in developing novel coal cleaning technologies and intends to continue to support the advancement of these and other as yet undeveloped technologies towards full-scale commercialization.

In addition to coal preparation, other production business practices, such as transportation and blending, affect access to potential markets and the bottom-line price of coal. The ICCI supports efforts aimed at examining all business practices that have bearing on Illinois coal markets to determine effective strategies for promoting Illinois coal and expanding its marketability.

The priorities in the program area of Coal Preparation and Other Production Business Practices are:

4.1A. Improving product quality.

Sulfur emission regulations severely impacted the Illinois coal industry in the 1990s. Mercury emission regulations were issued in 2005 expanding marketable quality parameters beyond the traditional Btu (and moisture) content and percent ash. The ICCI supports efforts that improve plant efficiencies or develop new technologies for cleaning coal to meet stricter specifications in contractual areas. Such efforts would include, but not be limited to the following:

Pre-combustion removal of any solid inert material. Removal of mercury and other trace elements before shipping. Other Btu enhancements including coal drying and dewatering and lowering inherent

moisture.

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Coal Preparation and Other Production Business Practices

4.1B. Increasing preparation plant efficiencies and safety.

Most plants operate at set points based on data collected during mine development. Coal characteristics can vary throughout a reserve leaving the plant operating at less than optimum conditions as mining locations change. In addition to dealing with changing operating conditions, nearly 40% of coal preparation costs are incurred in plant maintenance. The ICCI supports any of the following efforts to address these issues:

Develop and implement fine coal cleaning technologies that recover and dewater even the finest size fractions of run-of-mine (ROM) coal.

Develop advanced technologies that provide optimized incremental control of various plant streams and increase overall plant recovery and product quality.

Develop engineered materials that maintain their size, shape, functionality and/or structural integrity for longer periods and evaluate the effects of such materials on efficiency and safety, including compliance with noise regulations.

4.1C. Waste handling at coal preparation facilities.

Raw coal cleaning processes result in waste products that must be treated at minimal cost while maintaining compliance with environmental regulations. The combustion process also generates byproducts that are increasingly being disposed of at mine sites. Water quality and land reclamation issues must be addressed. The ICCI supports work that focuses on the following areas to improve environmental compliance while minimizing waste handling costs:

Control of acid mine drainage, the discharge of sulfates and chlorides, and other water quality issues.

Placement of coal preparation waste and coal combustion byproduct materials in mined out surface pits or underground workings.

Reuse of byproducts, such as magnetite in fly ash or discarded middling and fine material as a gasifier feed.

Reclamation liabilities including reclaiming old mine sites and disposal areas. Monitoring systems to verify regulatory compliance and inhibit environmental damage.

4.1D. Creating additional markets for Illinois coal.

The ICCI supports efforts to increase Illinois coal markets that include, but are not limited to:

Investigating transportation systems to develop strategies for moving more Illinois coal within the Illinois Basin in a cost competitive manner. This work may be combined with product quality considerations addressed in 4.1A.

Examining the economic impacts of blending options that would create additional markets for Illinois coal. This might address issues related to mercury, chlorine, sulfur, and Btu.

Determining the effect of various emission credits available and the impact on Illinois coal if these credits are exhausted.

Investigating policy development related to sales tax issues and ash haulback.

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Power Generation and Plant Efficiencies

5. Program Area – Power Generation and Plant Efficiencies

This area emphasizes the use of Illinois coal for electrical power generation. At least 90% of the coal mined in Illinois is consumed by electric utilities. The overwhelming majority of these utilities use pulverized-coal boilers, although other boiler types, such as FBC and cyclone-furnace combustors, are occasionally found. Regulatory restrictions on emissions from all types of pulverized-coal-combustion systems have had a significant influence on the decline in Illinois coal sales. For high-sulfur Illinois coal, the foremost of these is the emission of SOx. Disposal of solid residues from coal combustion and flue-gas scrubbing, hazardous air pollutants, and the issue of global climate change have increased the complexity of meeting EPA limits.

The reduction of greenhouse gas by sequestration has already been discussed in the section on carbon management. Another method for reducing these emissions is to increase the efficiency of existing coal fueled boilers so that less coal is burned per kilowatt hour of electricity produced. Improved heat rates by more efficient heat exchangers or improved coal combustion may be the quickest method for decreasing CO2 emissions as they may be accomplished by adding to or retrofitting existing boilers. Sequestration of the CO2 from existing PC units would require CO2 capture or production of a concentrated CO2 output by oxycombustion.

There are multiple approaches to lowering emissions from the use of Illinois coal. Research areas, for example, can investigate treating coal to remove sulfur and trace elements, such as mercury; retrofitting or replacing the combustion process itself by processes such as integrated gasification combined cycle (IGCC) or FBC; or improving processes to control the flue gas emissions. While the ICCI believes that IGCC is the most environmentally acceptable use of Illinois coal in power generation, it is a long-term technology. However, the ICCI welcomes any research that will contribute to and advance this technology. Researchers interested in coupling IGCC with chemicals and liquid fuels production should also refer to Section 2, Coal Gasification.

There is considerable interest in the development of mine-mouth power production systems. Unfortunately, the market for electric power is not in close proximity to mines. Furthermore, there is a question as to how much new electrical generation capacity is needed in the short term. One of the major limitations holding back development of this expanded use of Illinois coal is power transmission and the transportation infrastructure. The ICCI welcomes research proposals in these areas.

In the shorter term, the greatest opportunity to eliminate the capital cost disadvantage of using Illinois coal in existing boilers would be to repower existing, aged, low-efficiency, pulverized-coal units by adding emission controls to comply with environmental requirements. There is a strong move by several groups to revoke the grandfathering of existing plants and require them to meet current, new-source performance standards. This would essentially require repowering of these utilities. Multipollutant controls would be required in any repowering process. Available repowering technological approaches include three possible options:

Refurbishing an aged pulverized-coal unit simply by adding an advanced flue-gas desulfurization unit and retrofitting the pulverized-coal unit to obtain a higher efficiency and reduce carbon dioxide emissions.

Convert a conventional pulverized-coal unit into a higher-efficiency CFB combustion system that can burn high-sulfur Illinois coal.

Modifying a pulverized-coal unit by adding a partial gasification stage with a high-efficiency gas turbine followed by pulverized-coal combustion to burn the char with flue-gas desulfurization for emission control.

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Power Generation and Plant Efficiencies

The ICCI would also like to investigate the utilization of existing natural gas combined-cycle (NGCC) plants, but with coal supplying the fuel. This could be accomplished by production of methane from coal gasification or conversion of the NGCC to burn a syngas or a liquid fuel, such as methanol. The syngas or liquid fuel would be generated from a large, centrally located coal gasification facility, ideally located near large coal reserves, adequate water supplies, and with good outbound logistics (barge or rail). Ideally, the site would have regional industries or NGCC plants nearby that could benefit from inexpensive syngas from coal.

In some of the work defined in this section, the scale of the proposed work may be beyond the scope of the ICCI funding program. Therefore, in this area we encourage cost sharing with industry and/or other agencies.

The priorities in the program area of power generation are:

5.1A. Evaluation of technologies to increase the efficiency of new or existing PC coal boilers while meeting emission requirements.

The ICCI will consider concepts for repowering existing, aged, low-efficiency, pulverized-coal units by modifying the combustion system for increased efficiency and adding emission controls to comply with environmental requirements. The work proposed should:

Select a technology that would maximize the unit’s power output while meeting current emissions requirements and lowering CO2 emissions.

Minimize the derating of existing units due to CO2 capture and concentration. Produce a concentrated CO2 stream suitable for sequestration. Evaluate the most promising site and most favorable options for repowering and/or

refurbishment for emission control and increased efficiency. Consider methods and economics of carbon management. Address challenges posed by changes in operating conditions such as temperature profiles.

High cost and availability of specialty alloys for heat exchange surfaces, and overall refractory requirements must be investigated.

5.1B. Materials research for advanced boilers and wet scrubber systems.

Advancements in power generation may place more stringent requirements on materials of construction. Any proposed work in this area would first define the advanced combustion and/or scrubber technologies involved and define the requirements for new materials development. The proposal must discuss the advantages/disadvantages for the use of Illinois coal, and must consider the chlorine and sulfur content of the coal. This experimental work could focus on improved and/or less expensive:

Alloys for high-temperature boiler tubes. Refractory materials for combustion chambers. Alloys for wet scrubbers, and materials for wet stacks containing an acid gas atmosphere.

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Power Generation and Plant Efficiencies

5.1C. Investigation of utilization of existing natural gas combined-cycle power plants.

There are many existing NGCC power generators in Illinois that are underutilized because of the high price for natural gas. If these units could be supplied with a low-cost fuel (synthetic natural gas, syngas, or liquid fuel) produced from coal, they could be fully utilized while increasing the market for Illinois coal. Areas of study could include, but not be limited to:

Both experimental and design work. Production of low-cost methane from coal for these units would be considered. Investigation of the conversion of NGCC plants to burn a syngas or a liquid fuel, such as

methanol. A study of the number and capacity of units installed statewide and within a 20 mile radius in

surrounding states, and the current status of the units. Investigation of technical barriers to the conversion to burn alternative fuels such as syngas or

methanol, e.g. space constraints in current plants, permitting issues, etc. Natural gas burner modifications to burn alternative fuels, including full-scale burner tests. A techno-economic study of the best alternative coal-derived fuel to use.

5.1D. Investigation of novel industrial combustors using Illinois coal.

In addition to large-scale utilities, industrial boilers pose a major market for Illinois coal. In this work, collaboration of researchers with an industrial user is preferred. The work proposed would include:

Identify the industrial user and determine the potential market size. Find novel methods for integrating the use of coal combustion for process heat into the

industrial process. Show favorable economics of the proposed process. Define emission controls for the combustion system. Methods and economics of CO2 capture should be considered.

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Flue-Gas Cleaning, Mercury Emissions and Other Air Toxics

6. Program Area – Flue-Gas Cleaning, Mercury Emissions and Other Air Toxics

Efforts in the area of flue gas cleaning are aimed at improving the applicability and cost-effectiveness of available technologies, and researching new concepts and/or processes for multipollutant removal. Novel or improved cool, wet, or dry FGD and methods for NOx, trace elements and particulate removal, especially in combination, are needed to assure continuation of Illinois coal markets and to help electric utilities meet the Clean Air Act Amendments limits for SOx, NOx, mercury and particulate emissions.

One area that is of great concern to the utility industry is the uncertainty regarding the “science of mercury” in the flue-gas environment. While data have been collected under varying conditions, we are still unable to reliably and consistently predict the behavior of mercury in the flue-gas environment. Mercury may be present in the flue gas in several forms. The specific chemical form (speciation) has a strong impact on the capture of mercury by boiler air pollution control equipment. Mercury may be present in the flue gas as elemental mercury vapor, as a vapor of an oxidized mercury species, and as particulate-bound (sorbed or captured) mercury. Other flue-gas components (especially SO 2 and H2O) have also been shown to affect mercury speciation, tending to suppress Hg oxidation as the concentration of SO2 or H2O is increased. This is due to competition for active sites on the surface of carbon or other flue-gas solids. In general, Illinois coals tend to have higher chlorine content and also tend to produce higher levels of unburned carbon in the fly ash. As a result, the flue gas from the burning of Illinois coals tends to contain higher amounts of oxidized mercury (Hg2+) vapor while that of subbituminous and lignite coals tends to contain more Hgº vapor.

The ICCI believes that selenium (Se) and arsenic (As) will be regulated in the near future. Any fundamental study on mercury reactions should include selenium and arsenic studies as well.

The priorities in this program area are:

6.1A. Study of the fundamental chemical reactions involved in trace element emissions.

The complex interactions affecting mercury oxidation and capture/sorption in the flue-gas environment need to be studied. Of specific interest is the influence of SO 3

on mercury speciation and subsequent capture in wet FGD’s. Reactions must be conducted in an atmosphere with elevated levels of SOx and HCl to simulate an Illinois coal flue gas.

Determine profile of mercury and selenium species as a function of flue-gas temperature. Interactions of mercury and arsenic with fly ash and scrubber material are important. Improved trace metal capture in elevated SO3 environments are of interest.

6.1B. Basic investigation of the chemistry of mercury capture in scrubbers.

While it is well known that oxidized mercury can be captured in wet FGD’s, the reactions and chemistry of the scrubber system are not well understood. Mercury re-emission from wet scrubbers, and the reasons for re-emission, are priority research areas. Cost-effective scrubber additives to promote mercury oxidation and prevent mercury reemission are also of interest.

Simultaneous removal of SOx and NOx are preferred. Large-scale studies are of interest.

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Flue-Gas Cleaning, Mercury Emissions and Other Air Toxics

6.1C. Investigation of the “best available control technologies” for additional mercury capture, above and beyond standard equipment such as SCR’s, baghouses and scrubbers. This area focuses on so-called “polishing” removal of mercury, especially when high capture efficiencies (e.g. > 90%) can be occasionally, but not regularly, attained.

Development of mercury sorbent work is not of interest.

6.1D. Development/evaluation of new concepts and/or improved methods for flue gas scrubbing that can economically control NOx, SOx, and mercury in the flue gas from combustion of high-sulfur Illinois coal.

Most of the available control technologies focus on the removal of a specific pollutant (e.g. scrubbers for SOx, ESPs for particulates, SCRs for NOx). Of interest in this section is the removal of multiple pollutants by a single technology, or via modifications to existing equipment, such as advances to wet and dry scrubbers. Elimination of the SCR unit is preferred, as the SCR leads to the formation of SO3 mists. Research should focus on:

Flue gases containing high levels of SOx and HCl. Coal trace elements in the flue gas. Determination of the basic chemistry involved. Development of methods to lower the build-up of chlorides in the FGD scrubbing liquid. Determination of the efficiency of SO3 removal. Determination of the amount of mercury that may be reemitted from the scrubber. Determination of the effect of the scrubber operation on the level of PM2.5 emissions. Final disposition of the compounds being removed (SOx, NOx, mercury, PM2.5). Basic economics.

Researchers interested in this area should also refer to Section 5.1B, dealing with materials research for advanced boilers and wet scrubber systems.

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Coal Chemistry

7. Program Area – Coal Chemistry

The last decade has seen a substantial decrease in funding on both the federal and state level for coal research programs. Numerous well-established programs nationwide have been severely curtailed in the last few years and many coal researchers have moved on to other areas in order to secure research funding. This “brain-drain” issue in academia, independent and industrial research groups and the coal industry is of great concern to the ICCI. The ICCI believes there are many issues in basic coal research that remain unresolved, or require a fresh look, capitalizing on the enhancement of analytical instruments developed over the last 20 years.

For any proposal submitted in this area, the statement of work should include a comprehensive study on the current world-wide status of the proposed research area and topic.

The priorities in the program area of coal chemistry are:

7.1A. Investigations into the structure of coal, and how the structure could be manipulated or altered to remove high levels of impurities, such as ash, organic sulfur and chlorine.

7.1B. Investigation of fundamental reactions for improved and/or novel coal liquefaction. Both direct and indirect liquefaction are of interest. Projects that focus exclusively on FT liquids and catalysis may also fit in Section 2.2.

7.1C. Basic reactions for purification and/or upgrading of Illinois coal. Economic processes for the removal of mineral matter, sulfur and trace elements should be investigated.

7.1D. The production of high-value products from coal via a non-gasification (i.e. direct) route. Of interest are any high value chemicals, including coal tar pitches. The economics of the process, the product yield and product quality are all of paramount importance.

Applicants interested in basic chemistry should also refer to Sections 2.2 and 6.1.

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Commercialization and Technology Transfer

8. Program Area – Commercialization and Technology Transfer

The ICCI has been actively promoting the movement of technology developed under its funding toward commercialization. The aim of this area is to implement technologies that will promote the use of Illinois coal.

For the purpose of this section of the RFP, the difference between commercialization and technology transfer is defined as follows:

Commercialization - The preparation and implementation of a business plan to move the technology to commercialization. This could include a developmental demonstration of the technology.

Technology Transfer - Dissemination of new technologies to appropriate users. This would include the technical aspects of the process as well as its economic, environmental, and other benefits.

The areas of interest are:

8.1A. Commercialization of Clean Coal Technologies.

Technology must promote new or continued use of Illinois coal. Technology does not require previous funding by the DCEO/ICCI. Economic benefits must be shown. The project requires the formation of a project team, including energy producers and/or a coal

mine, a commercial plant, and/or the technology developer. Significant cost sharing by the members of the team is required.

8.1B. Technology Transfer.

Technology must be the result of research previously funded by the DCEO/ICCI. Technology must promote the use of Illinois coal. Emphasis must be on implementation of the technology by industry (coal mines, utilities,

etc.). The formation of teams and cost sharing with industrial partners is encouraged.

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Other Research

9. Program Area - Other Research

9.1A. Included in this category are all activities that may be beneficial to maintaining and/or improving Illinois coal markets and utilization, which do not belong to any of the previously described research areas. Projects in this area must be creative and innovative. The activities in this area must directly benefit Illinois coal and support the overall goals of the Illinois Clean Coal Institute as defined in the ICCI Mission Statement. A copy of the ICCI Mission Statement is available at http://www.icci.org/mission.html.

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REQUIREMENTS FOR SUBMISSION OF PROPOSALS

This section provides a broad overview of the requirements and procedures for the preparation and submission of proposals. Each year changes are made in these requirements, and those preparing proposals are advised to carefully read this RFP.

The proposal that is submitted under this RFP is the only basis for judgment of the merits of the intended work. The outline that is presented in this document is intended to help the proposer to convey the merits of their submission in a manner that is most readily useable by reviewers who will be judging these proposals. Therefore, proposers who wish to present the most favorable aspects of their intended work WILL FOLLOW THE OUTLINE REQUESTED AND INCLUDE ALL PERTINENT DOCUMENTS AND ATTACHMENTS. It must be remembered that if the sense of the proposed work is difficult to follow or not all of the requested information is submitted, the proposal will probably receive a negative review.

This RFP focuses on projected markets for the technology rather than on technology itself. As a result, the review process is designed to not only select projects that have the greatest potential to benefit the Illinois coal industry and their customers, but also to plan the longer-term investments required to advance the most promising technologies to a level of technical maturity that will allow their demonstration. The technical and economic advantages of the technology should be clearly stated in the proposal submitted. To assist the DCEO/ICCI in developing these longer-term investment plans, proposals must show the anticipated plan to advance these technologies to a level of technical maturity where they are ready for demonstration.

The DCEO/ICCI reserves the right to reject any and all proposals not complying with the requirements of this RFP, and also reserves the right to waive any non-material irregularity in a proposal if it determines that such waiver is in the best interest of the DCEO.

Proposers are strongly encouraged to submit proposals under this solicitation that include cost sharing from industry, the DOE, other state programs, and/or other financial organizations. Funding will be provided for the best technical proposals from a capable team of researchers, with preferential consideration to those including cost sharing. Cost sharing may be either in-kind or direct contributions.

The DCEO/ICCI encourages interaction between universities, business schools, research centers, industry, the DOE and/or other agencies to provide the multi-disciplinary expertise and cost-sharing necessary to develop new technologies to facilitate future utilization of Illinois coal. Preferential consideration will be given to those proposals that show industrial participation in scale-up and possible near-term commercialization of the new technology. Although preference will be given to proposals from in-state organizations, we encourage any proposals that will benefit the use of Illinois coal.

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PROPOSAL RESPONSIVENESS

Do not use forms from previous RFP’s when submitting your proposal. Proposals will be viewed as non-responsive if the forms contained in this RFP are not used.

To be responsive to this solicitation, the proposal must consist of the following sections and appendices in the order given, using the appropriate section number, and include the required CD ROM.

Section 1. Application Form.

The application form must be the first page of your proposal. Do not include any cover letters, cover pages, table of contents or forms not provided in this RFP.

Section 2. Title and Abstract Page.

Section 3. Executive Summary.

Section 4. Description of Technology.

Section 5. The Market for the Proposed Technology or Information.

Section 6. Proposed R&D and Statement of Work.

Section 7. Project Management Plan.

Section 8. Project Cost Proposal.

Section 9. Subgrant Review Certification.

Appendix A. Resumes.

Appendix B. Contract Pricing Proposals for each subcontract.

CD-ROM containing the complete proposal in Microsoft Word (no PDF files) format. Please label the CD with proposal title, principal investigator’s name and organization, and RFP08-1.

Instructions for preparing each of the above sections are provided in the DETAILED INSTRUCTIONS section, starting on page 27.

The initial review by the ICCI will be to determine whether the proposal is responsive and thereby eligible for the more detailed in-house and outside peer review required to rank the responsive proposals. To be considered responsive, the proposal must contain all elements listed above and adhere to the guidelines set forth in the PROPOSAL FORMAT, DEADLINE & SUBMISSION section on page 26. All proposals will be reviewed by the ICCI technical staff to ensure that they are in conformance with the stated goals and objectives of the RFP.

Responsive proposals will be reviewed based upon an evaluation of certain review factors. These factors and their relative weights are discussed in THE PROPOSAL REVIEW PROCESS section on the following page.

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THE PROPOSAL REVIEW PROCESS

To achieve the goal of the DCEO/ICCI R&D program, investments must be made in technology with the greatest potential to benefit the Illinois coal industry in the shortest possible time. Therefore, the intent of the proposal review process is to select those projects that have the greatest potential to advance toward commercialization and/or to provide information that will be of the greatest benefit to the Illinois coal industry. The review process consists of the following steps:

Initial review by the ICCI to determine if the proposal is responsive. Responsive proposals will be reviewed in detail by both the ICCI staff and outside peer reviewers. Recommendations for funding will be made based upon the reviews and submitted to the DCEO for final funding authorization.

All proposals considered responsive will be reviewed on the following factors:

Technical factors. Market factors. Commercialization or information transfer factors. Project organization and management factors. Project funding factors. Project cost-sharing factors.

The two factors considered most important in rating proposals are the technical and market factors. Of these two, scoring high on the technical factors will be considered a necessary, but not sufficient condition to win a contract award. For example, if the probability of the technical success of the project is low, the chances it will create a market are also low. On the other hand, an excellent technical proposal cannot overcome economic or other constraints that create non-technical barriers to the implementation of the proposed technology.

Technical Factors

The technical factors review considers factors that play critical roles in determining the technical success of the proposed process. Technical factors include:

Research approach. Identification of potential technical barriers. A well-defined Statement of Work (SOW) with milestones and decision points, as well as staff assignments for particular tasks identified. The ability of the work described in the SOW to generate the information required to attack any technical barriers and allow a quantitative process evaluation to be conducted. Available facilities. Staff expertise.

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Market Factors

Market factors are those that have a direct effect on the sale of Illinois coal. This effect could result from:

The potential of the technology to create or protect markets for Illinois coal. The potential of the technology to lower the cost of using Illinois coal. The potential to solve Illinois coal users’ environmental problems at competitive costs.

Obviously, some technologies could significantly influence all of the above factors while others will predominantly affect a single market factor. For example, the predominant effect of the utilization of coal combustion residues will be lowering the cost of using Illinois coal to existing customers, but will not in itself create new markets for Illinois coal. On the other hand, significant cost reductions for IGCC systems could have a significant impact on all three of the above factors. However, the development of cost competitive IGCC systems will require a longer period of time, entail greater technical risk, and require a substantial investment. The issues involved in balancing risk with potential payoff are discussed next in the section on commercialization factors.

Commercialization Factors

As pointed out above, there are factors other than market factors that influence the potential of a particular technology to influence the Illinois coal market. Before any technology can influence the Illinois coal market, it must advance to a level of technical maturity that justifies its demonstration. To assess its potential to reach this level of technical maturity, the following factors affecting commercialization potential will be evaluated.

The perceived advantages over existing or developing technology. The time required to advance to the demonstration level of technical maturity. The investment required to advance to the demonstration level of technical maturity. The technical risks involved. The plan for technology transfer. The approach and plan for transferring the technology to an entity that has the capability to commercialize it must be specified. Participation of an organization with the ability to commercialize the technology.

Information Transfer Factors

If the objective of a project is the generation of data/information that will benefit the Illinois coal industry, instead of reviewing commercialization factors, the following factors will be considered:

The need for the information and how it will benefit Illinois coal. The major users of the information. The approach to presenting and disseminating the information.

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Project Organization and Management Factors

Key considerations include the capabilities, expertise, and commitment of the project staff. In addition, project organization and management of both in-house and subcontractor staff will be carefully appraised. Specific evaluation factors include:

The organizational capability and expertise to effectively carry out projects of the type proposed. Previous history of successful, on-time completion of a DCEO/ICCI project. Project control and communication of results. Subcontractor role definition and control. Documentation by subcontractors demonstrating their understanding of their project role.

Project Funding Factors

The funding factors included in the evaluation will be:

Project cost. Overhead costs. Ability to utilize existing facilities and equipment.

Project Cost Sharing

The fraction of total project costs provided by other organizations. All project cost sharing must be documented and justified. Contributions may be made by the proposing organization or by other sponsors.

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PROPOSAL FORMAT, DEADLINE AND SUBMISSION

Format: Prepare two (2) single-sided copies with original signatures, four (4) additional double-sided copies, and a CD-ROM containing the complete proposal in Microsoft Word (no PDF files) format. Please label the CD with the proposal title, principal investigator’s name and organization, and RFP08-1.

Use binder clips only; do not staple or bind the proposals in any way.

Do not include any cover letters, cover pages or forms not provided in this RFP.

Detailed information on the proposal format begins on the following page.

Contact address: Submit the proposal to:

Dr. Francois BothaIllinois Clean Coal Institute5776 Coal Drive, Suite 200Carterville, IL 62918-3328

Phone: 618-985-3500

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DETAILED INSTRUCTIONS FOR COMPLETING RFP08-1

This section describes the proposal format required. Proposal preparation must follow the format described below to be considered responsive.

Proposals must include the following 8 sections and the appendices in the order given, using the appropriate section number:

Section 1. Application Form.

The application form must be the first page of your proposal.

Do not include any cover letters, cover pages, table of contents or forms not provided in this RFP.

Beginning with the Application Form, number all pages at bottom-center.

Section 2. Title and Abstract Page.

Section 3. Executive Summary. – Maximum of two pages.

Section 4. Description of Technology. Total number of pages

Section 5. The Market for the Proposed Technology or Information. for sections 4 through 7

Section 6. Proposed R&D and Statement of Work. must not exceed 20

Section 7. Project Management Plan. pages.

Section 8. Project Cost Proposal. (Four (4) budget forms and the Project Management

Statement).

Section 9. Subgrant Review Certification.

Appendix A. Include brief resumes of the main scientific personnel participating in the proposed work. Do not include resumes for technicians and undergraduate students. Resumes, including a few recent publications, are limited to two pages in length (one double sided page) for each individual.

Appendix B. Each subcontractor, listed on form 8.2 of the original proposal, must submit a separate Contract Pricing Proposal (Section 8, Forms 8.1 to 8.4).

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Section 1. Instructions for the Application Form

Research Area: Indicate only one area from the Research and Development Funding Areas section of the RFP that you will address in this research by listing its identifying number, e.g. 1.1B for a project in the development of new coal mining technologies.

Duration of Project: Give the proposed length of the project in months. Shorter project durations are encouraged; however, pay close attention to the proposed tasks and ensure that you can complete the project in the time allotted, as no project extensions will be given.

Project Title: The project title must be as short as possible with a maximum of 75 characters. The use of the title must be consistent throughout the RFP. Give careful consideration to the title as this exact title will be used on all subsequent forms, reports, correspondence, presentations, and other activities associated with the ICCI.

Project Location: The laboratory or building where the research will be conducted.

Proposing Organization: List the lead organization.

Principal Investigator: The Principal Investigator to be listed on the proposal must be the person who either performs the major portion of the work or the one who does the day-to-day direction of the project.  Supervisors who are not performing these functions cannot be listed as the PI. List only one person; no exceptions please. Please indicate the correct title (Dr., Mr., Ms.) for the individual. Names and addresses of other investigators must be shown on the project title page in section 2. For proposals involving more than one organization, the lead organization must subcontract with any other organization(s) included in the proposal according to the instructions under the subsection "Collaborative or Cooperative Arrangements" in Section 7. Any institutional subcontracting expenses must be included in your budget.

Contract Manager: This is the same person as your Financial Officer on Form 8.3 - Contract Pricing By Task.

Funding from Other Sources: Break down contributions from other sources into “in-kind” and “cash” contributions. The total contributions from other sources must match the value from line 10 on Form 8.4.

Project Cost: Fill in Total Research Cost from line 10 of Form 8.4.

Funding Provided by Applicant: Fill in the corresponding contribution total from line 10 in Form 8.4.

Funding Requested from ICCI: Fill in the Total from "ICCI Amount Requested" from Form 8.4.

% ICCI Funding Requested: (Funding requested from ICCI ÷ Project cost) x 100.

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Has this work been submitted for funding elsewhere?

If you have submitted a proposal to perform similar work to another funding agency, please indicate when and to whom it was submitted.

Proprietary Data in Proposals: Proprietary data are acceptable and applicable sections should be clearly identified as such. Arbitrary and unreasonably broad use of proprietary designations is not permitted. The extent to which data are marked proprietary in a proposal should be limited. If possible, proprietary data designations should be applied to data which are subject to or expected to be subject to patent applications or trade secret protection. Each page of the proposal containing proprietary data must also be clearly identified as such. Arbitrary and unwarranted use of this restriction is discouraged, and whole proposals and reports cannot be designated as proprietary.

Note the statement at the bottom of the Application Form about proposals containing proprietary data or privileged business information and that such information must be disclosed for evaluation purposes to peer reviewers.

It must be understood that the sponsor can only make a best-effort attempt to ensure that proprietary information will be restricted. The sponsor cannot be held responsible if disclosures of such information occur. Consequently, the proposing organization acknowledges by submission of a proposal in response to this RFP that these disclosures are possible and that the sponsor will not be held responsible.

Signatures: This form must be signed by both the Principal Investigator and the Contract Manager or Financial Officer. Institutions that require additional signatures can add the appropriate signatures here.

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Application Form : RFP08-1

Research area to be addressed (list only one number): Duration of Project (months):

PROJECT TITLE (maximum of 75 characters)

PRINCIPAL INVESTIGATOR CONTRACT MANAGER/FINANCIAL OFFICERName: (Dr., Mr., Ms.) Name: (Dr., Mr., Ms.)

Organization:

Address: Address:

E-Mail: E-Mail:

Telephone: Telephone:

Project Location:

PROJECT FINANCIALSFunding Requested from ICCI: % ICCI Funding Requested:

Funding Provided by Applicant:

Funding from Other Sources:

Total Project Cost:

Sources of Other Funds In-Kind Funding ($) Cash Funding ($) Total Funding

1.

2.

Total of Funding from Other Sources:

Has this work been submitted for funding elsewhere?

List Any Page Numbers that Contain Proprietary Data:

The information contained in the above mentioned pages of this proposal has been submitted in confidence and contains trade secrets and/or privileged or confidential information, and such information shall be used or disclosed only for evaluation purposes to peer reviewers. If funds are awarded to this proposer as a result of or in connection with the submission of this proposal, the sponsor shall have the right to use or disclose the information herein to the extent provided in the funding agreement. This restriction does not limit the right of the sponsor to use or disclose information obtained from any non-restricted source including the proposer.

SIGNATURESPrincipal Investigator: Date:

Contract Manager/Financial Officer: Date:

Other Required Signature (optional): Date:

Section 2. Title and Abstract Page

In this order, include the project title, names, addresses, and telephone numbers of all senior investigators involved in the project (with an asterisk in front of the principal investigator), funding requested, project duration, and an abstract describing the proposed research in non - technical language suitable for use in general information publications. Do not include proprietary or confidential information.

Section 3. Executive Summary

This section, which can be no longer than two pages, must briefly summarize the proposal. This would include the technology proposed and why it is superior to existing or other technologies under development, the relevance of the proposed work to creating or increasing a market for Illinois coal, the anticipated time and cost of future work to take the technology to commercialization, and major participants in the project. Do not include any proprietary data or information in the Executive Summary.

Section 4. Description of Technology

In this section, the theoretical basis of the technology including a brief review of pertinent literature and discussion of any previous work done by the proposer is given.

Section 5. The Market for the Proposed Technology or Information

Since the DCEO/ICCI R&D program is market rather than technology driven, an important part of the review process will be the evaluation of the proposer’s knowledge of competitive technology and the presentation of a technically and economically sound case for the proposed technology.

For projects that may lead to commercialization, this section must also contain a plan for developing the technology from the level of technical maturity anticipated to exist at the completion of the proposed project to a level where the technology is ready for demonstration. In summary, this section must discuss the following issues:

Identification of the commercial market for the proposed technology or information on how the technology/information will be of specific benefit to producers or users of Illinois coal.

Competitive technology. Describe the predicted advantages for the proposed technology over competing technologies.

A commercialization plan. Provide a plan for proceeding from the work proposed to a level where the technology is ready for demonstration. This plan must include the following:

A development schedule. Identification of the partners required to commercialize the technology. Specify milestones and measurable decision points. A preliminary estimate of the cost by phases of bringing the project to demonstration.

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Section 6. Proposed R&D and Statement of Work

6.1 Project Objectives and Approach

Discuss the overall research approach to obtain the necessary data and justify the experimental plan to be used.

Project Objectives must be specific and measurable. It is not sufficient to state that the objective is “to investigate.” The objective must rather be stated in terms of the specific measures of performance to be achieved. For example, the objective of a coal preparation project would state the degree of pyrite/ash rejection and Btu recovery that were required. A sorbent development project would state the desired capacity and other performance parameters required to establish commercial feasibility.

Discuss the parameters anticipated to have the greatest effect on the performance of the commercial product or process and establish the values of these parameters that must be achieved to satisfy the project objectives. Also, state the basis for selection of these performance parameters and their values. For example, in a sorbent development program, the capacity and attrition resistance would be important performance parameters. In a coal cleaning project for example, the pyrite/ash rejection and Btu recovery would be specified.

Discuss the approach that will be taken to transfer the technology. To advance any project from R&D to demonstration will require that the data and information generated during the R&D phases be translated into an engineering design that provides a basis for accurately evaluating the economics as well as for construction and operation. Therefore, the proposers plan for technology transfer will be important in reviewing the proposal.

6.2 Statement of Work (SOW)

This section must specifically define the work that will be done under the proposed contract. The work should be broken into tasks. (For reporting purposes, the number of tasks should be kept to a minimum.) For each task, include the following:

A complete description of the project task to be conducted indicating the number and operating conditions of the tests to be conducted and the key personnel responsible for the task. Include, for example, the parameters to be studied, the number of tests required to achieve the project objectives, etc.

The expected numerical range of the parameters to be measured. A description of the experimental equipment, the data collection system, the method of data

analyses, and the application and relevance of the data and information obtained to developing the ultimate product or process must be discussed in detail. Specify what existing experimental facilities, instrumentation, and analytical equipment are available for project use. The purchase of any new equipment must be specified and justified. It is very difficult to justify the purchase of personal electronic devices, such as computer equipment and digital cameras, with project funding.

Tasks that involve modeling without experimental validation are not acceptable.

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6.3 Deliverables

It is necessary to be as specific as possible in defining deliverables. Typically, the primary deliverables will be the monthly progress reports and a final report. The monthly reports will be used to compare actual progress on the project with the progress projected in the SOW and will therefore be an important management tool. Other deliverables may include project activities such as establishing relationships with commercialization partners and other activities required for commercialization such as developing intellectual property. It should be pointed out that while the R&D budget cannot be used for patent activities, it is desirable to protect information that is regarded as intellectual property both in the proposal and in project reports.

6.4 Project Schedule

A project time line chart or schedule showing milestones and decision points is necessary. Pay close attention to the proposed tasks and ensure that you can complete the project in the time allotted, as no project extensions will be given. All monthly and final reports must be indicated on this schedule, and should match the Project Objectives section. This milestone/decision point chart will be an important project management tool and it must therefore be carefully prepared. Milestones are measurable events such as completing installation of equipment, initiating testing, completion of a particular test campaign, submission of a report, etc. A decision point is a milestone upon which a significant project decision is dependent. For example, achieving a required sorbent capacity or some other performance parameter that influences the project viability would be considered a decision point. A sample chart giving examples of hypothetical milestones and decision points is shown in Figure 1.

Task 1 - Cold Tests a b

Task 2 - Hot Tests a cA

Task 3 – Physical Analysis dB C

Task 4 – Chemical Analysis e

Task 5 – Reports m m m m m m m m m m m f

Month S O N D J F M A M J J A

Milestones Decision Pointsa Equipment assembled A Acceptable attrition resistanceb Cold Tests completed B Achieve objective sulfur capacityc Hot Tests completed C Compare to existing sorbentsd Density analysis completede Mercury analysis completedm Monthly reportf Final report

Figure 1. Example of a Schedule of Projected Milestones and Decision Points

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Section 7. Project Management Plan

The applicant must submit a management plan describing in detail how the proposed project will be managed. This plan must include the following sections: Personnel, Communication, Safety, Equipment Available, Collaborative or Cooperative Arrangements (if any), and Reports.

Personnel: Include a list by name and title of the key personnel involved in the project. Roles must be defined in terms of experience in pertinent areas of project responsibility. The time commitment of key project staff must be provided. Brief resumes of the key project personnel must be included as Appendix A (see page 27). Resumes, including a few recent publications, are limited to two pages in length (one double sided page). Also, identify other workforce requirements and the projected source of personnel, i.e., graduate students, technicians, etc.

Safety: Outline any procedures, situations, or materials that could be hazardous to personnel, and describe the precautions that will be exercised.

Equipment Availability: For development and demonstration projects, suppliers of equipment to be used must be specified and the delivery time must be indicated. In other words, is this equipment “off-the-shelf” or must it be custom built?

Collaborative or Cooperative Arrangements:

Describe any subcontracts for work related to applicant's project. Include a letter of intent from each subcontractor signifying concurrence with the work scope, schedule, and total budget suggested in your proposal for that subcontractor's performance. If the proposed project includes a subcontract(s), please provide the following information on each subcontract:

a description and schedule of the subcontractor's work to be performed.

the qualifications of the subcontractor.

A summary of the costs for the subcontract.

A detailed Contract Pricing Proposal (Section 8, Forms 8.1 to 8.4) must be completed for each subcontractor and should be attached to the proposal as Appendix B (see page 27).

Remember that if your project is funded, a copy of all subcontracts must be routed to the ICCI.

Reporting: This solicitation requires a one to two page monthly progress report and a final project report. Submission of these reports when due is a contractual obligation you incur upon project award. Therefore, the ICCI reserves the right to terminate any project for which reports are late without prior approval from the ICCI.

The Principal Investigator Guidelines, with more details on report preparation and format, will be sent to successful proposers at a later date.

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Section 8. Project Cost Proposal

Section 8 consists of five sub-sections, each with a corresponding form that must be completed.

You must use the budget forms supplied by the ICCI. Do not use your institution’s supplied form or other computer printout instead of the ICCI forms. You may add such a form to the back of your proposal, but it should not replace the ICCI form.

Section 8.1 Direct Labor and Benefits.

Section 8.2 Itemized Non-Labor Project Costs.

Section 8.3 Contract Pricing By Task.

Section 8.4 Budget Summary and Contributions from Other Sources.

Section 8.5 Project Management Statement.

Note: Financial Statement: Organizations shall submit a financial statement, upon request, showing proof that the applicant can cover any cost overruns that the project may incur.

Section 8.1 Instructions for Direct Labor and Benefits

In Column 2, list separately the names of all persons who will work on this project under their respective work titles. When names are not available, list the cost data as person A, person B, etc., under the appropriate work titles.

In Column A, list the time to be spent on the project by each person listed in Column 2; use units commensurate with the quoted salary or wage rate (man-months; man-hours). In Column B give the full gross wage (indicating 9-month or 12-month) or salary rate for each listed person; quote salary or wage rates for all personnel according to the standards for your institution and clearly show units ($/month or $/hr). Do not convert monthly salaries to hourly wages, or vice versa. Calculate the total cost for each person and enter each value in the "estimated cost" column (Column C). The Total Estimated Cost of Direct Labor on this form must agree with Total Personnel Costs on Forms 8.3 and 8.4. AGAIN, ONLY THOSE COSTS FOR FUNDS BEING REQUESTED FROM THE ICCI SHOULD BE INCLUDED ON THIS FORM.

Wage and salary figures do not include the cost of employee benefits. Therefore, the percent of wages or salary that will be added to the cost because of employee benefits must be listed in Column D. This column is a summary of retirement, health & life insurance, workmen’s compensation, unemployment and any other employee benefits. Dollar amounts of these benefits should be given in Column E and the total for this column must agree with the Labor Benefits given in Forms 8.3 and 8.4.

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Form 8.1 Direct Labor and Benefits

A B C D EWork Title Name Est. Hours

or MonthsRate

($/hr or $/mo)Est. Direct Labor Cost

(A*B)Benefits

%Benefits Amount

(C*D)

Sr. Scientific: 1.

2.

Jr. Scientific: 1.

2.

Post-Doc.: 1.

2.

Grad. Student: 1.

2.

Undergrad Student: 1.

Technician: 1.

Clerical: 1.

Other (specify): 1.

2.

Totals for Column C and E:

Total Labor and Benefits (Column C + E):

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Section 8.2 Instructions for Itemized Non-Labor Project Costs

Materials & Supplies: Materials and Supplies include laboratory supplies (glassware, chemicals, spatulas, etc.), office supplies, compressed gases, demurrage charges, etc. List each item in detail with corresponding cost. Finally, add the total costs in the box across from the title line.

Travel: Excessive travel costs will significantly weaken the proposal. Travel to professional conferences and/or meetings is not allowed on project costs. The procedure for applying for such funding is contained in the Principal Investigator Guidelines. Travel outside the continental United States is not encouraged, as it will weaken the proposal since it requires special approval by the DCEO. In general, justified travel is related to carrying out the objectives of the project, e.g., collaborating with other investigators, planning meetings, obtaining samples, etc. All travel should be justified with details (for each trip, the destination, method of travel, number of personnel, length of stay, and a detailed breakdown of the costs must be given). Mileage for personal vehicles must be justified as the lowest possible cost, and rental cars should be used instead of personal vehicles, if rental costs are lower than mileage reimbursement. All air travel must be in coach class.

Other Direct Costs: This element includes: Physical plant services; rental/lease; utility services; mailing and moving; duplicating/copying; repair and maintenance; telecommunication services; professional services; and other (please specify). Please list each item separately and in detail.

Subcontracts: This element includes consultants and other subcontracted portions of the proposed project. List each subcontract separately, and give a detailed description of what work will be done under each subcontract.

Major Equipment: Major Equipment is defined as equipment that is not permanently attached to any of the organization's buildings or grounds, has a life expectancy of one year or more, and has a unit value of $500 or more. List each item separately and include the brand name and model number of the item to be purchased as well as the cost of freight and installation in the total cost. Increase the cost for inflation depending on when the equipment will be purchased. Finally, attach a detailed justification statement for the equipment and a recently dated price quote sheet from the manufacturer or distributor of the equipment. You must indicate whether this equipment will be a new resource or if it will replace an existing item. The purchase of personal electronic devices, such as computer equipment and digital cameras must be justified.

Indirect Costs: Specify each indirect cost according to your organizational requirements after consultation with your Contract Manager or Financial Officer. The DCEO determined indirect cost rate for Illinois state-supported institutions is 10% of the total direct cost consisting of the direct labor, fringe benefits, and all the items described above.

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Form 8.2 Itemized Non-Labor Project CostsList each item separately with associated cost

EXPENSE COST PER ITEM TOTAL

MATERIALS & SUPPLIES

1.2.3.4.5.

TRAVEL

1.2.3.

OTHER DIRECT COSTS

1.2.3.4.5.

SUBCONTRACTS

1.2.3.

MAJOR EQUIPMENT (indicate if new or replacement)

1.2.3.

INDIRECT COSTS

1.2.3.

Specify how Indirect Cost is calculated:

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Section 8.3 Instructions for Contract Pricing by Task

This form must be completed with the actual costs for each task as proposed in the Statement of Work, Section 6.2. Do not prorate the project cost over the proposed number of tasks.

Project Information: The project title, principal investigator, organization, and financial officer or contract manager should be exactly as shown on previous forms.

Principal Investigator: The person who signs the ICCI Project Management Statement takes overall responsibility for the necessary Federal and/or state permits, research, milestones, reports, and budgets; and receives requests and correspondence from the ICCI. The principal investigator must be the person who will actually be performing or doing the day-to-day direction of the majority of the research proposed. Only one person should be listed. Other investigators with direct research responsibilities may be listed on the title sheet.

Organization: List the lead organization.

Total Estimated Cost: This is the amount being requested and does not include any contributions from other sources. If contributions from other sources are available, they should only be listed on the form for Form 8.4 - Budget Summary.

Direct Labor: The total value in the far right column, found by combining the various tasks, should match the amount in Form 8.1 - Direct Labor & Benefits.

Other Costs: Next, calculate by task, the cost of Materials & Supplies, Travel, Other Direct Costs, Subcontracts, Major Equipment, Total Direct Cost, Indirect Costs, and Total Cost. The total value in the far right column, found by combining the various tasks, should match the amount on Form 8.2 – Itemized Non-Labor Project Costs.

Contract Manager or Financial Officer:

The person responsible for monitoring the budget, and sending financial statements and invoices to the ICCI. This is the same person as your Contract Manager on the Application Form.

Signatures: This form must be signed by both the Principal Investigator and the Contract or Financial Manager.

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Form 8.3 Contract Pricing by Task

Project Title:

Principal Investigator:

Organization:Complete with the actual costs for each task. Do not prorate the project cost over the proposed number of tasks.

ELEMENTS OF COST Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Task 8 TOTAL

Direct Labor 1

Labor Benefits 1

Materials & Supplies 2

Travel 2

Other Direct Costs 2

Subcontracts 2

Major Equipment 2

Total Direct Cost 3

Indirect Cost 2

TOTALS

1. Form 8.1 2. Form 8.2 3. Sum of all above categories

SIGNATURES

Principal Investigator: Date:

Contract Manager/Financial Officer: Date:

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Section 8.4 Instructions for Budget Summary and Contributions from Other Sources

Complete this section using the totals from Form 8.3 - Contract Pricing by Task.

Project Information: The project title, principal investigator, organization, and institutional financial officer should be exactly as shown on previous forms.

Cost Elements: Direct Labor, Benefits, Travel, and Indirect Costs are generally the only allowable contribution that an organization can make. Contributions of Materials and Supplies and Major Equipment are not impossible, but are very difficult to track for audit. Please discuss these contributions with your institutional financial officer before including them.

Contributions: Please note that indirect costs in excess of the 10% allowed for Illinois supported institutions should not be included as a contribution.

Contributions may be made by the proposing organization or by other sponsors. The work to be carried out with the other sponsor's funds must be well-defined, and consistent with the work proposed for and the research priorities of this RFP. Generally, a cost-sharing arrangement will be approved only after discussion and final agreement among the proposer, the other sponsor, and the ICCI staff.

Total Cost: Note the statement that the cost is fixed and firm for 180 days from the date of signature.

Signature: This form must be signed by the Contract or Financial Manager.

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Form 8.4Budget Summary and Contributions from Other Sources

Project Title:

Principal Investigator:

Organization:

Cost Element ICCI Amount Requested 1,2

Contribution Amounts(specify source below)

TotalProject Cost

I II III

1. Direct Labor

2. Benefits

3. Materials & Supplies

4. Travel

5. Other Direct Costs

6. Subcontracts

7. Major Equipment

8. Total Direct Costs

9. Indirect Costs 3

10. TOTALS

1 Totals from Form 8.1 - Direct Labor and Benefits. 2 Totals from Form 8.2 - Itemized Non-Labor Project Costs.3 Indirect costs in excess of the 10% allowed for Illinois supported institutions cannot be included as a contribution.

Source of Contribution: I.

II.

III.

The total cost is fixed and firm for 180 days from the date below.

SIGNATURE

Contract Manager or Financial Officer: Date:

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Section 8.5 Project Management Statement

Sign and date this form after reading its contents.

As principal investigator, I understand that I, in consultation with my supervisors as necessary in the normal conduct of business and research, will be required:

1. To be the initial point of contact for the ICCI on technical and administrative matters pertaining to this project; to refer questions or requests for information to appropriate officials of my organization if unable or unauthorized to respond directly; and to inform the ICCI Project Manager accordingly;

2. To be responsible for passing pertinent information on to other investigators;

3. To be responsible for submitting technical reports to the ICCI on time and in the accepted format;

4. To be responsible for meeting the technical objectives of the project in a timely way;

6. To be responsible for maintaining the safest possible working conditions and procedures for activities relating to this research project;

7. To work, as necessary, with appropriate officials of my organization, and with the ICCI Project Manager, to designate an acceptable alternate principal investigator for this project in case I am no longer available, due to an extended leave or other circumstances, and will request approval for such substitution from the ICCI in writing; and

8. To be responsible for initiating justified requests to the ICCI for budget changes through appropriate supervisory/administrative channels within my organization; it is understood that the ICCI cannot accept budget changes made within thirty days prior to the end of the contract period or thereafter.

9. It must be understood that the DCEO/ICCI can only make a best-effort attempt to ensure that proprietary information will be restricted. The DCEO/ICCI cannot be held responsible if disclosures of such information occur. Consequently, the proposing individual and organization acknowledges by submission of a proposal in response to this RFP that these disclosures might be possible and that the sponsor will not be held responsible.

The principal investigator signing this form must be the person who will actually be performing or doing the day-to-day direction of the majority of the research proposed.

The above statements of responsibility are recognized and accepted for this project:

Project Title:

Organization:

Principal Investigator:

PI Signature:

Date:

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Section 9. Subgrant Review Certification

Your institution’s Contract Manager must sign and date this form after reading its contents.

If a project from your organization is selected for funding, your organization will be required to sign a subgrant agreement. The subgrant is executed through Southern Illinois University Carbondale (SIUC) and is based on Illinois Department of Commerce and Economic Opportunity (DCEO) prime grant and State of Illinois and/or Southern Illinois University regulations. Please note that all awards are on a cost reimbursement basis. There are no exceptions to this provision.

The subgrant agreement form used for the previous year is posted online at www.icci.org/subgrant.pdf. While the subgrant may change slightly as Illinois/DCEO laws and regulations change, the majority of the clauses stay the same from year to year.

The ICCI requires that the contract manager for each organization submitting a proposal review the subgrant language. If your organization is unable or unwilling to sign a subgrant, funding cannot be awarded to your institution. By signing this certification document, you indicate that you understand that while minor changes may be made to accommodate your organization, substantial changes, including the deletion of whole sections of the subgrant, are not allowed. Please note that use of the ICCI billing form, referenced in the body of the subgrant and attached thereto as an exhibit, is required and is not negotiable.

Since some subgrant clauses may change to some degree from year to year, signing this certification form does not guarantee that you will be able to execute the subgrant or obligate you to do so. However, it does indicate that you are aware of the requirement and understand that the document must be executed before funding will be provided for any proposal submitted by your organization.

CERTIFICATION

I have reviewed the subgrant document posted at www.icci.org/subgrant.htm. I understand that a similar

document will be required if a project from my organization is selected for funding. I understand that

while minor changes may be made to accommodate my organization, substantial changes, including the

deletion of whole sections of the subgrant, are not allowed.

Organization:

Contract Manager Name:

Contract Manager Signature:

Date:

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