An Energy Solution for 2017 and beyond

1. An Energy Solution for 2017 and beyond

2. Energy is the foundation • 3 million square feet of academic, research, office and housing space • Average age of building: 33 years • Plans to add more than 230,000 square feet • All these things need heat and power

3. Atkinson plant • Two coal boilers (1964) • One oil boiler (1972) • One oil & gas boiler (1986) Creates • Steam: to heat campus Runs turbines to create • Electricity • We also have: • 10 megawatt diesel generator and an electrical distribution system

4. Combined heatand power The best choicefor efficiency

5. UAF energy sources • $7.8 million annual cost • 70,000 tons of coal • 1.2 million gallons of oil • 12 million cubic feet of natural gas

6. Current fuel costs per million BTU • Biomass and pipedgas are unknown

7. Our current foundation

8. What if a coal boiler fails? • Enormous jumpincosts that could harm: • The programs we provide • The research we do • The students we serve

9. We studied the options • A wide variety of generation options using gas, coal, biomass, solid waste, hydroelectric and wind • 15 months of study • Met with industry and environmental groups to gather input and ideas

10. Competing considerations • Environmental responsibility • Regulatory climate • Political reality in Alaska and the nation • The state’s uncertain energy future • The economics for UAF and our programs and students • Responsible stewardship of state funds • Risk of catastrophic failure (current plant’s 50-year lifespan is almost over)

11. A diversified energy portfolio: • Anchored by a new 15-20 megawatt circulating fluidized bed (CFB) boiler • Flexible solid fuel • Coal with 10-30 percent biomass possible • Replaceoil boilers with gas or propane • Purchase renewable energy, when available • Energy conservation on campus • Small renewable projects on campus • Flexible, sustainable, fiscally responsible 11

12. Replacement now is fiscally responsible • Aging plant and a growing campus • More than $40 million in maintenance needed in the coming years. • That doesn’t guarantee continued reliable operation • About half of those projects are bandages not needed in a new plant. • We need energy solutions for our future, not temporary patches.

13. Replacement now is environmentally responsible • Current plant: Coal and oil • UAF’snew plant: Coal, waste/biomass, gas or propane, other solid fuels • Augmented with solar, wind and other renewable options that become available. • A new plant will mean cleaner air

14. Timeline • Current fiscal year: $3 million for preliminary design and permitting • FY14: $22 million for complete design • Beyond: $175 million for construction • Target completion and opening: Summer 2017

15. What can you do? • We need community partners like you. • We want to know what you are hearing from your friends, neighbors and colleagues. • Share accurate information: • We need energy solutions for the future, not temporary patches. • UAF’s future rests on reliable heat and power. • Combined heat and power is the most efficient option. • A new plant will mean cleaner air. • We are pursuing a diversified energy portfolio: coal, waste/biomass, gas, solar, wind, conservation • Flexible, sustainable, fiscally responsible

16. Questions?