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Department of Energy
Washington, DC 20585


Prospective Offerors:

This Program Opportunity Notice (PON) is in response to the Clean Coal
Technology (CCT) portion of Public Law No. 99-190, "An Act Making
Appropriations for the Department of Interior and Related Agencies for
the Fiscal Year Ending September 30, 1986, and for Other Purposes."
Through this PON, the Department of Energy (DOE) is soliciting proposals
for financial assistance required to conduct cost-shared CCT demonstration
projects that will lead directly to accelerated commercial availability
of these emerging technologies.

On January 30, 1986, a draft PON was issued and public comments were requested by February 6, 1986. The comments received were carefully reviewed and used in considering modifications to the original draft PON. Accordingly, Prospective Offerors are advised that the PON enclosed with this cover letter differs in numerous aspects from the draft PON.

Prospective Offerors are also advised that this PON is not an extension
or duplication of the November 1984 "Program Announcement for Information
Regarding Emerging Clean Coal Technologies," also known as the "Section 321"
announcement. Proposals submitted in response to the earlier announcement
will not be evaluated or used in any way with regard to the present PON,
and prospective offerors are hereby instructed that they must submit a new
proposal if they wish to be considered for financial assistance. (See
SECTION III.26, "Previous Respondents to the Earlier "Clean Coal"
Announcement.") -

Argonne National Laboratory (ANL) is preparing for DOE a baseline environmental emissions profile. The data from this profile (and material submitted by proposers) will be used by DOE in preparing the Preselection Programmatic Environmental Impact Analysis. This ANL profile plus documentation specifying the sources of their data, and an explanation of how the data were assembled, will be accessible to the public after April 1, 1986, in the DOE Public Reading Room, Room 1E-190, Forrestal Building, 1000 Independence Avenue, S.W., Washington, D.C., 20585.

The following is a summary of the salient elements of this PON, but not an integral part of the enclosed PON. In the event of any conflict between this PON cover letter and the enclosed PON document, the data and information in the PON shall control.

Each project will consist of three phases: (1) Design and Permitting; (2)
Construction and Startup ("Shakedown"), and (3) Operation, Data Collection,


| Ślę - - - - Js - Reporting, and Disposition. The period of performance is to be proposed t 153% by the offeror. (See SECTION IV.2.2(d) regarding already completed

phases.) O

Your proposal must be submitted in accordance with the instructions in
SECTIONS III and IV. Each of the four proposal volumes should be bound
separately. The proposals must be received at the place designated in
SECTION III.5, "Time, Date, and Place Proposals Are Due," not later than
4:30 p.m. local time, Washington, D.C., on April 18, 1986.


A Preproposal Conference for this PON will be held on March 6, 1986, at
10:00 a.m. local Washington, D.C. time at the Departmental Auditorium,
1301 Constitution Avenue, N.W., located midway between 12th and 14th
Streets, N.W., Washington, D.C., 20024. (Note: This is a different
date, and a different location, than specified in the draft PON.) Details
are provided in SECTION III.17, "Preproposal Conference," of the PON.

Only proposals that can meet the Qualification Criteria and other
requirements as set forth in SECTION W.2, "Preliminary Evaluation,"
will be considered. Technical, Business and Management, and Cost
evaluation criteria are provided in SECTIONS V.3.1, "Technical Evalua-
tion Criteria," W.3.2, "Business and Management Evaluation Criteria,"
and W.3.3, "Cost Evaluation Criteria." The program policy factors appli-
cable to this PON are described in SECTION W.3.5, "Program Policy Factors."

Depending on the evaluated potential of proposals submitted, one or more
cooperative agreements may be awarded as a result of this PON.

This PON does not commit the Government to pay any costs incurred in (
connection with any proposal, to procure or contract for any services, or
to provide financial assistance to any offeror. The Government reserves
the right, without limitation, to accept or reject any or all proposals
regardless of the terms of the original proposal, and to request additional
clarifying information, including cost and pricing data.

DOE may award a cooperative agreement based on initial proposals received,
without discussion of such proposals with the offerors. Therefore, each
proposal to DOE should reflect the most favorable terms, from technical,
cost, and business and management standpoints, that the offeror can submit.

Offerors are advised that a Clean Coal Technology project selected for
financial assistance as a result of this PON will be subject to the
requirements of the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) and related DOE compliance procedures. Should an offeror's
proposal be selected, the offeror will be asked to provide information to
be used in preparing an environmental report to serve as the basis for an
environmental assessment (EA) or an environmental impact statement (EIS).
See SECTION III.27, "National Environmental Policy Act (NEPA) Strategy,"
for more information.

You are cautioned that certain proposal material submitted may become subject to disclosure to the public pursuant to the provisions of the Freedom of Information Act, as amended. See SECTION III.28, "Proprietary Data or Confidential Business Information."

All offerors are required to prepare and include in their proposals an abstract of the highlights of their proposed demonstration project, that may be released to the public at any time, in whole or in part. See SECTION IV.3.3, "Public Abstract."

The designated Government Representative for this PON is Mr. E. Stephen
Logan. All communications should cite the PON number and be directed
to his attention at the address prescribed in SECTION III.4, "DOE
Issuing Office," or by telephone call to (202) 252-1026.

DOE recognizes that a single offeror may not possess expertise and resources in every area covered by his proposal. Teaming and other arrangements are therefore permissible. See SECTION III.21, "Teaming Relationships," for details and requirements.

Your proposal must remain valid and authorize a period of time for acceptance by the Government of not less than 240 calendar days from the date specified above for receipt of proposals. Furthermore, you are cautioned that late proposals, modifications, and withdrawals will be treated in accordance with SECTION III.34, "Late Submissions, Modifications, and Withdrawals of Proposals."

Please complete the "Intention to Propose" form provided at Appendix M at the earliest practicable date. No other material should be returned if you do not intend to submit a proposal.

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