DES MOINES -- A company hoping to build a power plant near Waterloo has written a letter to area lawmakers urging them to reject legislation that would require merchant coal-fired plants to invest in renewable energy. But they say they would be willing to write a check to the University of Northern Iowa for research.

The letter from Elk Run Energy Associates Vice President Paul Thessen pledges that money could be available for UNI to study the feasibility of acquiring and transporting biomass fuels to the plant's site.

But the letter suggests that money might not available if the renewable energy mandate is passed.

Rep. Bob Kressig, D-Cedar Falls, said he was "dismayed" when he received the letter.

"I don't think it's proper. I really don't," Kressig said.

The letter says the company, Elk Run Energy Associates, an affiliate of LS Power Development, is committed to providing $100,000 to UNI for four consecutive years after the plant is in place.

"However, none of this will be possible if the continued viability of our plant is compromised by the legislative climate in Iowa. We are deeply concerned about recently proposed legislation aimed exclusively and directly at merchant coal-fired power plant generators," the letter said.

The Iowa Senate has passed a bill that would require merchant plants like the one the company is proposing in Waterloo to generate, provide or purchase 8 percent of its plant's capacity from renewable sources.

Mark Milburn, project manager for LS Power, said the company has talked to many lawmakers about why the mandate would not be good for merchant power plants that sell energy on the market.

He said the letter clarifies that position for legislators and demonstrates that the company is making a commitment to support in-state research.

"What we said to the legislators in the letter is that we're willing to step up and do that. We think we'd like that research to be done in state and not somewhere else," Milburn said.

Environmentalists have praised the idea of a mandate, saying a company that will produce greenhouse gas emissions that contribute to global warming should play a part in the solutions.

But the company is opposed to the mandate. A House committee stripped the renewable mandate, but its future remains uncertain in the closing days of the legislative session.

"We believe imposing this type of mandate on merchant generators is misguided and may severely impact the financial viability or our project, and in general, the competitive power market in Iowa," the letter said. "We hope that we can count on you and your colleagues to thwart this type of legislation."

Kressig thinks it makes sense for the company to invest in renewable energy. He voted against stripping the mandate from a larger energy bill.

Sen. Bill Dotzler, D-Waterloo, is pleased the plant wants to look at using biomass, but he still believes the proposed plant should abide by renewable energy standards as investor-owned utilities are.

"I think our constituency is very clear. People in Waterloo and Cedar Falls are very concerned about this plant and they want to make sure that they do everything they can to lessen the effect on the environment and burning renewable fuels is part of that," Dotzler said.

Dotzler is encouraged by the fact the company wants to work with UNI.

"I think there can be some improvements in what they have offered, and I'm hoping we can work something out," Dotzler said.

Rep. Doris Kelley, D-Waterloo, called it "awesome" that the company was looking for ways to incorporate biomass in the Waterloo plant.

"I would like to see them working with the University of Northern Iowa," Kelley said.

Contact Charlotte Eby at (515) 243-0138 or chareby@aol.com.