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Model Energy Crop Fuel Contract


Note: You can download a Microsoft Word document of our draft "Model Fuel Contract". Be patient, it is a very large file!
[If the file does not download automatically, a box will appear on your browser asking you to select the application type that you want to open the file in. Most word processing applications are located in your computer's Program File such as Microsoft Word or Wordperfect, etc. Click "browse" and scroll down to your spreadsheet software application and click.]

Key Points: The "Model Fuel Contract" is a work-in-progress draft contract between an energy crop fuel supplier and an electric utility. While technical (legal and engineering) in scope -- the general audience may find the document's pricing section of particular interest.

Through the proposed pricing mechanism, we are attempting to identify "value" and a sharing of this value between parties.

SO2 & NOx: Under the Clean Air Act, a market was created for Companies to buy and sell NOx and SO2 credits. By co-firing energy crop fuel, emission credits may be created which have a market value. [want to learn more about this?]

CO2 Emissions: Many companies are cutting CO2 emissions to head off tougher regulations. In voluntary programs, some companies are allocating a value of $5 per ton for CO2 reductions. [want to learn more about this?]

Renewable Energy Portfolio Standards: In addressing the issue of electricity deregulation, the U.S. Congress and many States are considering (or have enacted) minimum levels of Renewable Energy that electric utilities must either generate or purchase in the open market . [want to learn more about this?]

Tax Credits: In March 2003, the Finance Committee of the U.S. Senate proposed extending and explanding tax credits for the production of electricity from using biomass fuels -- including biomass co-firing in coal power plants. [want to learn more about this?]