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MAY 26 198 ADA 49 ' _ 4) The feasibility, including a technical and cost analysis, of converting vehicles to the burning of pure ethanol. 5) Financial advantage of using ethanol to produce gasohol for use in municipal fleets. 6) The availability of fuel such as methane from landfills, low pressure steam from garbage to energy facilities, waste 'heat from utility operations, etc. with which to powbr an ethanol plant and the potential financial return to the participating governments. We are requiring each participating government to contribute $5,000 to support this program. To date, ten Florida jurisdictions (St. Petersburg, Orange County, Ft. Lauderdale, Clearwater, Kissimmee, Lee County, Melbourne, Manatee County, Jacksonville, and Pinellas County) have committed to the program with another 15 seriously considering participation. Governments choosing not to participate wi]l not be allowed a second option at a later date in order -to protect the investment of the initial supporters. The legal work during this project will be conducted by -Clint Brown, a Tampa based attorney, who has extensive ex- perience in working with local governments.- The analysis on feedstock and vehicles will be conducted by the Florida Innovation Group who will contract with appropriate techni- cal and agricultural resources to successfully complete the analysis. I am firmly convinced that the future holds nothing but escalating fuel prices as well as possible shortages for local government. I call your attention to the enclosed articles from the March 15, 1982 issue of Forbes Magazine and the September/October, 1981 issue of the Harvard Business Review. The Harvard Business Review article is alerting private sector companies to get prepared for coming shortages. I most certainly feel that local government should share the concern of the private sector in regard to what the future holds for fossil fuels. A steady source of ethanol would permit- us to extend our supplies. A guaranteed- purchase agreement with an alcohol plant could provide a substantial price advantage. The use of pure alcohol would reduce our dependency on gasoline as our only primary fuel. The potential of local government equity in ethanol facilities in partnership with the private sector also offers potentially attractive new revenue sources for Florida local governments. We want to get this project underway during June, 1982 so I ask you to seriously consider and confirm your government's participation and financial support as soon as possible. The Florida Innovation Group will serve as the agent to receive the funds for this program. FIG will set up a special account, provide monthly financial statements, and disburse funds upon approval by a Project Financial Committee of participating local governments. Either Paul Yingst of my staff or Bob Havlick of the Florida', Innovation Group will contact your office within 'the next few weeks to determine your interest and need for a detailed briefing in your jurisdiction. The financial risk we are asking you to consider is small when compared to the potentials for a guaranteed, renewable fuel supply and new revenue sources. I hope you will join us. Sincerely, 17 n N. Harvey (J _ 1 -y Manager }