From: Marquissee, Mike
Sent: Tuesday, April 29, 2014 11:22 AM
To: Mies, Timothy A; Anderson, Gary L; Dale Johnston (dkjohnst@igb.illinois.edu)
Subject: RE: Copy of UofI propane 040414-MLM EDITS.xls

Tim,

See answers below.

Mike

From: Mies, Timothy A
Sent: Tuesday, April 29, 2014 9:01 AM
To: Marquissee, Mike; Anderson, Gary L; Dale Johnston (dkjohnst@igb.illinois.edu)
Subject: RE: Copy of UofI propane 040414-MLM EDITS.xls

Hi Mike,

Several questions have come up that I would like you input on in regards to the green revolving loan fund in cases that might occur that do not follow the typical project pattern.

Scenario 1) The energy farm reverts to another department at the completion of the grant of the Energy Biosciences Institute before the loan is repaid.  How would the loan be handled in cases where the new department weren’t within the VCR cost area? 

• Since the loan is being repaid from the campus pool in favor of the VCR, it is likely that it would still pay out in favor of which other campus department it goes to.  Unless it turns into a self-supporting entity, which is unlikely.  In that unlikely event, the self-supporting entity would repay the loan.

Scenario 2) A crop loss occurs one year that would limit/prevent the savings that are estimated from our initial estimates? 

• The Campus utility pool would still pay out.  Just that the savings would not be recognized.  It would also pay for the additional propane.  The loss would not come out of the project.

Scenario 3) Miscanthus ceases to be produced on the energy farm, resulting in no more mxg produced locally?  Would F&S then consider purchasing MXG from a local farmer who could supply the material? Assuming the boiler installed could handle multiple feedstocks, wood chips may be an alternative. 

• We support this project because there is a research project attached to it.  If that project is discontinued, we would then have to discuss who repays the loan.  Most likely it would be out of the research fund, then, which would also pay for the restoration of the site and so on.  I don’t think we would be interested in providing alternative fuel sources or manage an abandoned research project.

Thanks for your input.

Tim