2.

PREPARATION OF VOLUME II: TECHNICAL PROPOSAL

2.1

The text below identifies the information needed by DOE to evaluate

the proposal according to the criteria contained in SECTION V.3.1, "Technical Evaluation Criteria."

The Technical Evaluation Criteria are divided into two major categories. The first, "Commercialization Factors," addresses the projected commercialization of the proposed technology. This is different from the proposed demonstration project itself. It deals with all of the other steps and factors involved in the commercialization process.

The second major category, "Demonstration Project Factors,"
recognizes the fact that the proposed demonstration project re-
presents the critical step between "pre-demonstration" scale of
operation and commercial readiness, and deals with the proposed
project itself.

Discussion of Commercialization Factors:

The technical proposal (Volume II) must contain a narrative
discussion of, and supporting data and analyses for, the
commercialization factors described below.

The purpose of this discussion is to demonstrate the degree to which the proposal satisfies these criteria and to document the relevant data and/or analyses that substantiate the anticipated and claimed commercial viability and environmental performance of the proposed commercial version of the clean coal technology.

Appendix L provides energy projection data which must be used when proposers are making projections of the economics and marketability of their technologies. However, the offeror may include additional analyses provided that documentation is given of the assumptions used, and also that the methodology used is explained.

(a)

ENVIRONMENTAL, HEALTH, SAFETY, AND SOCIOECONOMIC (EHSS) ASPECTS

Based upon the information provided in the market projections
of SECTION 2.1(b), "Marketability" (below), provide informa-
tion on how applicable EHSS statutes and regulations (as of
January 1, 1986) will be met in regions where significant
market potential is projected. In this context, EHSS includes,
but is not limited to, air quality and emissions, water quality
and effluents, waste disposal, water resource requirements, health,
safety, and, if applicable, socioeconomic aspects. A discussion
must be provided stating how anticipated environmental emissions,
occupational or public exposure to liquid and solid waste

streams, intermediate process streams or products, and byproducts produced by the proposed technology will meet and exceed the requirements of these statutes and regulations, and whether there are any aspects that may present a problem in achieving compliance.

Discuss the range of process design variations, inherent advantages of the proposed technology, and control technology options available to improve environmental performance in a cost-effective manner.

Discuss the EHSS impacts of the technology in its commercial scale implementation. Identify types and quantities of

unregulated pollutants that may be released. Discuss direct and indirect environmental impacts, long term and/or cumulative effects, and irretrievable commitments of resources.

The proposal must compare the EHSS impacts of the proposed technology with alternative technology options that are commercially available, in the same markets proposed for this technology and show the incremental improvements that can be achieved.

(b) MARKETABILITY

The technical proposal must include a discussion of the impact of the proposed clean coal technology's commercialization on continued and increased use of U.S. coals and/or decreased use of oil and/or natural gas. This discussion must include a description of the projected market and the projected impact of the proposed clean coal technology in the marketplace. The discussion must address the following points affecting marketability (including assumptions affecting the analysis) to the extent applicable:

Potential total market (identifying equipment types for retrofit applications) and market geographic distribution in which the proposed technology will compete including size and its characteristics;

o Projection of penetration of the proposed technology into the market described; including a time-phased estimate of that penetration both in terms of relative (percent) penetration and absolute penetration (e.g., tons of coal per year, MWe generated, etc.);

Competing commercial technologies and fuels that will be
displaced by the proposed technology;

Economic comparisons (all on the same basis) of the proposed technology vs. the competing technologies. This analysis should present and establish the rationale for the proposer's expectations that the clean coal technology will be economically competitive in the applications identified and should consider infrastructure modification costs.

Provide the underlying assumptions and calculation methods;

Characterization of (i.e., specifications for) the energy or clean fuel product;

Oil or gas displacement and reduction in overall energy consumption;

0 Indication of willingness of the potential marketplace to accept and use the new clean coal technology;

o Availability of raw materials required for the technology
to achieve the level of projected market penetrations
(coal, water, limestone, catalysts, etc.);

0 Sources and types of coal that can be commercially utilized by the proposed technology;