Coal-to-diesel plant faces problems

Fairbanks officials are hoping to build a coal-to-diesel plant near Eielson Air Force Base. But obstacles are mounting in trying to coordinate with the military, placing a $10 million federal earmark in jeopardy that would move the project along.

U.S. Sen. Lisa Murkowski says a top Air Force official has told her the military will work with Fairbanks officials about concerns that the joint endeavor is off track.

Former Sen. Ted Stevens worked $10 million into the Air Force budget, earmarking the money for phase-two studies of a coal-to-liquids project at Eielson.

—The Associated Press