Posted: 3:23 p.m. Monday, Aug. 5, 2013
By April Hunt
The Atlanta Journal-Constitution
Showing posts with label permits. Show all posts
Showing posts with label permits. Show all posts
Monday, August 5, 2013
Judge dismisses case against biomass plant
http://www.ajc.com/news/news/local/judge-dismisses-case-against-biomass-plant/nZFKt/
Posted: 3:23 p.m. Monday, Aug. 5, 2013
Posted: 3:23 p.m. Monday, Aug. 5, 2013
Tuesday, April 2, 2013
The Root of Georgia’s Pellet Boom
http://www.biomassmagazine.com/articles/8795/the-root-of-georgiaundefineds-pellet-boom
Over 24 million acres of biomass, an attractive
business climate and suite of incentives is keeping Georgia in the
project spotlight.
The
late Ray Charles once said an old, sweet song kept Georgia on his
mind. Today, it’s the growing biomass production industry that is
keeping pellet producers from forgetting the Empire State of the South.
Georgia’s forestry industry had every right to sing the blues during the Great Recession. In the years between 2006 and 2010, the industry lost 41,235 direct and indirect employees, dealing a horrible blow to Georgia’s second-largest industry and the 47 counties that are dependent on the state’s forests, according to the Georgia Forestry Commission.
With the economy currently rebounding, however, the U.S. Southeast, especially Georgia, has become a hotbed for biomass projects. Georgia’s forestry industry is showing signs of stabilization as of 2011, due in part to the biomass industry. Herty Advanced Materials and Development Center, a "new product accelerator" aligned with Georgia Southern University, currently has 32 bioenergy projects, proposed or in operation, ranking it second in the nation––behind California with 33––according to Jill Stuckey, director of external relations. These projects are investing millions of dollars in rural communities hit hard by the recession and employing dozens of local residents, she says. Germany-based RWE Innogy located its wholly owned subsidiary Georgia Biomass LLC, one of the largest pellet plants in the world, at Waycross, Ga.
Neighboring states are experiencing slower development––Florida currently has 15 bioenergy projects and Alabama has eight. So what makes Georgia the Graceland of southern bioenergy? James Roecker, CEO of Georgia Biomass, says RWE’s decision to locate the company’s first U.S. facility in Georgia was influenced by several factors, largely, Georgia offers an abundant fiber supply in close proximity to the coast. “[And] the Savannah harbor we are utilizing has good capability to handle and ship wood pellets in bulk, and has proven capability and facilities to store and ship other bulk products,” he adds. There is also an established rail corridor that connects the fiber basket with the harbor, plus the city of Waycross has a healthy business climate and provided access to good labor talent, he says. “We received exceptional support from the local, economic development organization, the county, and the state of Georgia.”
Though it isn’t the sole factor, as evidenced by Roecker’s statements, an abundant—and growing—biomass supply is playing a major role in what’s being perceived as a pellet and biomass project boom.
More Biomass, More Business
Georgia has an estimated 24 million acres of trees, which have been growing roughly 30 percent above usage for the past few years, according to Craig Scroggs, a USDA Rural Business and Cooperative specialist. The state forestry commission says that of the 24 million acres, 92 percent is in private hands and ready for commercial use, the highest in the U.S.
Recognizing the value of its largest natural resources, Georgia takes great strides in sustaining its forested lands. According to the forestry commission, the state's forested land has remained stable since the 1950s, and has a greater volume than in the 1930s. Forest loss due to expanding cities is offset by converting old farm lands to forest, the commission says. By responsibly managing its green sea, the forestry industry provides the perfect nest for bioenergy projects and other wood-related businesses. “We have more biomass than anyone in the nation except for Oregon—we plant trees like Iowa plants corn,” Stuckey says.
The business environment is the second reason pellet producers are making Georgia their home. State and local governments cooperate with existing and interested parties to create incentives and an efficient planning process, and it’s that business/government synergy that’s making things happen.
One example is Georgia’s Quick Start program. The program provides free workforce training to qualified businesses in the state, and each training program is tailor-made to the specific company. The program trained 80 employees at Georgia Biomass, and Roecker says the training included team dynamics, problem solving, communications and plant operations. He adds that he has received very favorable feedback from the involved employees.
One Stop Shop, a program established by Herty in 2005, is another tool pellet companies are utilizing. It acts as a networking forum for new and expanding businesses, and includes matching companies to universities and state and federal offices to expedite permitting and explain state and federal policies and procedures. Stuckey says other states have tried to duplicate the program, but was unaware if they were as successful. The Herty program has brought in billions of dollars of new companies to Georgia, and more are coming in, she says.
Herty’s newest pilot pellet mill, at Savannah, Ga., also demonstrates the cooperation between state organizations and private businesses. On Feb. 5, Herty announced the opening of the fully integrated pilot pellet mill, which will provide a facility for producers to validate process technology testing different pellet designs. The plant allows producers to lower risk by testing a pellet design without having to interrupt a plant’s production line.
Georgia also offers tax credits to taxpayers and biomass projects. Taxpayers are eligible for credits when they transport or divert wood waste to biomass facilities on a per-ton basis, and biomass projects are eligible for a clean energy property tax credit. The credit is available to businesses installing renewable energy products and can cover up to 35 percent of the cost.
Even the USDA invests in biomass projects in Georgia. Scroggs says that in 2012, the USDA Rural Development guaranteed a $9.6 million loan for SEGA Biofuels to retool its facility to produce a more desirable wood pellet, and other USDA programs utilized were the Rural Energy for America Program, Woody Biomass Utilization Grant, and the Advanced Biofuel Producer Program. To date, the USDA has invested up to $450 million in biomass projects in the state.
Although Georgia has the natural resources and the government and private programs that assist getting steel in the ground, the existing infrastructure is the last crucial piece of the biomass boom.
Ideal Infrastructure
The cohesion between road, rail, and shipping terminal creates the ideal logistic scenario for producers. As of 2007, Georgia is crisscrossed with over 117,000 miles of public roads, including 18,000 miles of state highway and 1,000-plus miles of major interstate highway. A $119 million expansion of the Jimmy DelLoach Parkway is one of the most recent updates to the state's road system. Set to come online in late 2015, the project is a four-lane extension from Interstate 95 to less than a mile from the Port of Savannah, and aims to make port traffic more efficient and less congested.
With more than 5,000 miles of rail, Georgia’s railroad system could stretch from Chicago to Moscow, attracting many pellet producers to locate their facilities on or near this major line of transportation. Georgia Biomass and SEGA Biofuels are located on the CSX mainline to the Port of Savannah. At the ribbon cutting for Georgia Biomass, Hans Bünting, CEO of RWE Innogy, said the partnership between CSX rail yards and the port in Savannah was one of the most important factors in choosing a location for the project.
Although Georgia’s 100-mile coastline is shorter than its northern and southern neighbors, it is home to the fastest growing deep-water ports in the U.S, and their capabilities are being upgraded. The ports in Savannah and Brunswick are in the process of expanding or renovating their facilities. According to the Georgia Port Authority, Gov. Nathan Deal allocated more than $134.4 million and proposed another $46 million to deepen the Port of Savannah to accommodate super-sized container ships. The GPA predicts the expansion project will prepare the area for larger container ships and lower transportation costs.
Mostly known for its automobile import and export facility, the Port of Brunswick is also receiving a makeover from the state. In order to meet the growing demand for local biomass fuels, the GPA has upgraded the East River Terminal at the Port of Brunswick, which increased output to 1 million tons annually.
Economics 101 says with a boom, there must be a bust. As more and more biomass projects locate to Georgia, it seems that it is only a matter of time before pellet producers have to compete with each other, as well as other forestry-related industries, while remaining sustainable. Scroggs said although biomass production levels have been 20 to 30 percent higher than usage, tremendous growth in the pellet industry in Georgia will move the state towards a one-to-one production-to-usage ratio in the near future.
“The pellet industry is here now and has been really successful and really fast growing,” Stuckey says. While the pellet industry is a wonderful placeholder for the next 10 to 15 years, she adds, where the real future lies will be with companies that can afford to pay more for biomass feedstock to efficiently create crude oil products for drop-in fuel replacements, chemicals and pharmaceuticals. To avoid future feedstock conflicts, Herty is looking at other types of plants that grow faster than pine trees, such as miscanthus and the paulownia tree to create a more sustainable environment, as well as testing different pellet consistencies with Herty’s pilot pellet mill.
Roecker, too, is optimistic about the future. “We strategically located our Waycross facility to be in a fiber basket that is not shared by others in our industry or by sawmills along the coast,” he says. “Based on the studies we have participated in, all indications are that fiber supply will be plentiful for the foreseeable future.”
Author: Chris Hanson
Staff Writer, Biomass Magazine
701-738-4970
chanson@bbiinternational.com
Georgia’s forestry industry had every right to sing the blues during the Great Recession. In the years between 2006 and 2010, the industry lost 41,235 direct and indirect employees, dealing a horrible blow to Georgia’s second-largest industry and the 47 counties that are dependent on the state’s forests, according to the Georgia Forestry Commission.
With the economy currently rebounding, however, the U.S. Southeast, especially Georgia, has become a hotbed for biomass projects. Georgia’s forestry industry is showing signs of stabilization as of 2011, due in part to the biomass industry. Herty Advanced Materials and Development Center, a "new product accelerator" aligned with Georgia Southern University, currently has 32 bioenergy projects, proposed or in operation, ranking it second in the nation––behind California with 33––according to Jill Stuckey, director of external relations. These projects are investing millions of dollars in rural communities hit hard by the recession and employing dozens of local residents, she says. Germany-based RWE Innogy located its wholly owned subsidiary Georgia Biomass LLC, one of the largest pellet plants in the world, at Waycross, Ga.
Neighboring states are experiencing slower development––Florida currently has 15 bioenergy projects and Alabama has eight. So what makes Georgia the Graceland of southern bioenergy? James Roecker, CEO of Georgia Biomass, says RWE’s decision to locate the company’s first U.S. facility in Georgia was influenced by several factors, largely, Georgia offers an abundant fiber supply in close proximity to the coast. “[And] the Savannah harbor we are utilizing has good capability to handle and ship wood pellets in bulk, and has proven capability and facilities to store and ship other bulk products,” he adds. There is also an established rail corridor that connects the fiber basket with the harbor, plus the city of Waycross has a healthy business climate and provided access to good labor talent, he says. “We received exceptional support from the local, economic development organization, the county, and the state of Georgia.”
Though it isn’t the sole factor, as evidenced by Roecker’s statements, an abundant—and growing—biomass supply is playing a major role in what’s being perceived as a pellet and biomass project boom.
More Biomass, More Business
Georgia has an estimated 24 million acres of trees, which have been growing roughly 30 percent above usage for the past few years, according to Craig Scroggs, a USDA Rural Business and Cooperative specialist. The state forestry commission says that of the 24 million acres, 92 percent is in private hands and ready for commercial use, the highest in the U.S.
Recognizing the value of its largest natural resources, Georgia takes great strides in sustaining its forested lands. According to the forestry commission, the state's forested land has remained stable since the 1950s, and has a greater volume than in the 1930s. Forest loss due to expanding cities is offset by converting old farm lands to forest, the commission says. By responsibly managing its green sea, the forestry industry provides the perfect nest for bioenergy projects and other wood-related businesses. “We have more biomass than anyone in the nation except for Oregon—we plant trees like Iowa plants corn,” Stuckey says.
The business environment is the second reason pellet producers are making Georgia their home. State and local governments cooperate with existing and interested parties to create incentives and an efficient planning process, and it’s that business/government synergy that’s making things happen.
One example is Georgia’s Quick Start program. The program provides free workforce training to qualified businesses in the state, and each training program is tailor-made to the specific company. The program trained 80 employees at Georgia Biomass, and Roecker says the training included team dynamics, problem solving, communications and plant operations. He adds that he has received very favorable feedback from the involved employees.
One Stop Shop, a program established by Herty in 2005, is another tool pellet companies are utilizing. It acts as a networking forum for new and expanding businesses, and includes matching companies to universities and state and federal offices to expedite permitting and explain state and federal policies and procedures. Stuckey says other states have tried to duplicate the program, but was unaware if they were as successful. The Herty program has brought in billions of dollars of new companies to Georgia, and more are coming in, she says.
Herty’s newest pilot pellet mill, at Savannah, Ga., also demonstrates the cooperation between state organizations and private businesses. On Feb. 5, Herty announced the opening of the fully integrated pilot pellet mill, which will provide a facility for producers to validate process technology testing different pellet designs. The plant allows producers to lower risk by testing a pellet design without having to interrupt a plant’s production line.
Georgia also offers tax credits to taxpayers and biomass projects. Taxpayers are eligible for credits when they transport or divert wood waste to biomass facilities on a per-ton basis, and biomass projects are eligible for a clean energy property tax credit. The credit is available to businesses installing renewable energy products and can cover up to 35 percent of the cost.
Even the USDA invests in biomass projects in Georgia. Scroggs says that in 2012, the USDA Rural Development guaranteed a $9.6 million loan for SEGA Biofuels to retool its facility to produce a more desirable wood pellet, and other USDA programs utilized were the Rural Energy for America Program, Woody Biomass Utilization Grant, and the Advanced Biofuel Producer Program. To date, the USDA has invested up to $450 million in biomass projects in the state.
Although Georgia has the natural resources and the government and private programs that assist getting steel in the ground, the existing infrastructure is the last crucial piece of the biomass boom.
Ideal Infrastructure
The cohesion between road, rail, and shipping terminal creates the ideal logistic scenario for producers. As of 2007, Georgia is crisscrossed with over 117,000 miles of public roads, including 18,000 miles of state highway and 1,000-plus miles of major interstate highway. A $119 million expansion of the Jimmy DelLoach Parkway is one of the most recent updates to the state's road system. Set to come online in late 2015, the project is a four-lane extension from Interstate 95 to less than a mile from the Port of Savannah, and aims to make port traffic more efficient and less congested.
With more than 5,000 miles of rail, Georgia’s railroad system could stretch from Chicago to Moscow, attracting many pellet producers to locate their facilities on or near this major line of transportation. Georgia Biomass and SEGA Biofuels are located on the CSX mainline to the Port of Savannah. At the ribbon cutting for Georgia Biomass, Hans Bünting, CEO of RWE Innogy, said the partnership between CSX rail yards and the port in Savannah was one of the most important factors in choosing a location for the project.
Although Georgia’s 100-mile coastline is shorter than its northern and southern neighbors, it is home to the fastest growing deep-water ports in the U.S, and their capabilities are being upgraded. The ports in Savannah and Brunswick are in the process of expanding or renovating their facilities. According to the Georgia Port Authority, Gov. Nathan Deal allocated more than $134.4 million and proposed another $46 million to deepen the Port of Savannah to accommodate super-sized container ships. The GPA predicts the expansion project will prepare the area for larger container ships and lower transportation costs.
Mostly known for its automobile import and export facility, the Port of Brunswick is also receiving a makeover from the state. In order to meet the growing demand for local biomass fuels, the GPA has upgraded the East River Terminal at the Port of Brunswick, which increased output to 1 million tons annually.
Economics 101 says with a boom, there must be a bust. As more and more biomass projects locate to Georgia, it seems that it is only a matter of time before pellet producers have to compete with each other, as well as other forestry-related industries, while remaining sustainable. Scroggs said although biomass production levels have been 20 to 30 percent higher than usage, tremendous growth in the pellet industry in Georgia will move the state towards a one-to-one production-to-usage ratio in the near future.
“The pellet industry is here now and has been really successful and really fast growing,” Stuckey says. While the pellet industry is a wonderful placeholder for the next 10 to 15 years, she adds, where the real future lies will be with companies that can afford to pay more for biomass feedstock to efficiently create crude oil products for drop-in fuel replacements, chemicals and pharmaceuticals. To avoid future feedstock conflicts, Herty is looking at other types of plants that grow faster than pine trees, such as miscanthus and the paulownia tree to create a more sustainable environment, as well as testing different pellet consistencies with Herty’s pilot pellet mill.
Roecker, too, is optimistic about the future. “We strategically located our Waycross facility to be in a fiber basket that is not shared by others in our industry or by sawmills along the coast,” he says. “Based on the studies we have participated in, all indications are that fiber supply will be plentiful for the foreseeable future.”
Author: Chris Hanson
Staff Writer, Biomass Magazine
701-738-4970
chanson@bbiinternational.com
Thursday, July 14, 2011
Rentech gets final approval for 55-MW biomass project in Florida
http://www.utilityproducts.com/news/2011/07/1456569462/rentech-gets-final-approval-for-55-mw-biomass-project-in-florida.html
(ADP Renewable Energy Track) - Jul 14, 2011 - US clean energy company Rentech Inc (AMEX:RTK) said Wednesday it had obtained final air permit from the Florida Department of Environmental Protection for its 55-MW Port St Joe biomass-to-power project.
The facility, located in northwestern Florida, will use Rentech-SilvaGas biomass gasifier to produce clean electricity from 930 dry tonnes of woody biomass a day. Local utility Progress Energy will buy most of the electricity output under a long-term power purchase agreement.
Rentech has already signed a term sheet for the project's engineering, procurement and construction (EPC) with US White Construction.
(ADP Renewable Energy Track) - Jul 14, 2011 - US clean energy company Rentech Inc (AMEX:RTK) said Wednesday it had obtained final air permit from the Florida Department of Environmental Protection for its 55-MW Port St Joe biomass-to-power project.
The facility, located in northwestern Florida, will use Rentech-SilvaGas biomass gasifier to produce clean electricity from 930 dry tonnes of woody biomass a day. Local utility Progress Energy will buy most of the electricity output under a long-term power purchase agreement.
Rentech has already signed a term sheet for the project's engineering, procurement and construction (EPC) with US White Construction.
Wednesday, June 15, 2011
Green Energy in South DeKalb?
http://southdekalb.wordpress.com/2011/06/15/green-energy-in-south-dekalb/
Biomass proposal draws protesters, wins DeKalb support | ajc.com.
DeKalb County says it is the greenest county in America. And to help bolster that claim, they have approved a green energy facility that will have little or no pollution, and can generate electricity for 7,000 homes. At least that is the sell that Green Energy Partners has told DeKalb County. Residents in that part of the county are not impressed. They had been fighting to keep the facility from being built, but their pleas fell on deaf ears as DeKalb commissioners voted unanimously to approve the plant.
Green Energy Partners is not the only group to attempt to open a biomass facility in DeKalb. In 2009 Southeastern Renewable Energy asked the county to rezone some land on Briarwood Road near I-85 and North Druid Hills Road so that they could build essentially the same type of facility. In fact if you read the SLUP for both, the purpose is exactly the same with the exception of who is requesting, and where it is located. Here is the stated purpose of each:
Green Energy
June 15, 2011
DeKalb County says it is the greenest county in America. And to help bolster that claim, they have approved a green energy facility that will have little or no pollution, and can generate electricity for 7,000 homes. At least that is the sell that Green Energy Partners has told DeKalb County. Residents in that part of the county are not impressed. They had been fighting to keep the facility from being built, but their pleas fell on deaf ears as DeKalb commissioners voted unanimously to approve the plant.
Green Energy Partners is not the only group to attempt to open a biomass facility in DeKalb. In 2009 Southeastern Renewable Energy asked the county to rezone some land on Briarwood Road near I-85 and North Druid Hills Road so that they could build essentially the same type of facility. In fact if you read the SLUP for both, the purpose is exactly the same with the exception of who is requesting, and where it is located. Here is the stated purpose of each:
Green Energy
Application of Patrick Ejike to request a Special Land Use Permit to operate a utility generation facility (Biomass Renewable Energy Facility) within the M-2 (Industrial) zoning district. The property is located on the east side of Rogers Lake Road,Southeastern Renewable Energy
approximately 446 feet south of Lithonia Industrial Boulevard at 1744 and 1770 Rogers Lake Road. The property has approximately 483 feet of frontage along Rogers Lake Road and contains 21.12 acres
Application of Raine Cotton to request a Special Land Use Permit to operate a utility generation facility (Biomass Renewable Energy Facility) within the M-2 zoning district. The property is located on the southwest side of Briarwood Road (vicinity of Georgia Power Easment)approximately 880 northwest of Interstate 85 (vacant land, no address). The property has approximately 150 feet of frontage on Briarwood Road and contains 3.16 acresSo what made the Green Energy application so much more plausible than the SRE application? After all, the planning department denied the SRE application based on several issues including “..anticipated significant impacts on water quality, air quality, noise impacts and transportation impacts.” Yet they recommended referral for the Green Energy application. Commissioners repeatedly deferred the SRE application from 2009 until April of 2010 when the application was finally withdrawn. So here are two facilities that use similar technologies to produce energy, yet one is considered a health hazard while the other is given the go ahead to operate. I am also wary of the timing of this entire thing. In April of 2010, DeKalb commissioners entertained the idea of this plant from Green Energy. A week later SRE’s application was withdrawn. In July of the same year, the commission voted to sell the very wood chips Green Energy says it will use in it’s facility for five dollars a ton. And now they have approved the facility in southeast DeKalb. If I lived within a half mile of this thing, I would definitely want to know more about how this whole thing wound it’s way through the county leadership.
Monday, April 4, 2011
Beaver Wood sees setback PSB: We have no jurisdiction over pellet manufacturing side
http://www.benningtonbanner.com/ci_17771897
The Public Service Board entered a decision Friday ruling that it does not hold jurisdiction over the wood pellet manufacturing side of the facilities.
In Vermont, under Section 248, the PSB has jurisdiction over facilities that produce electricity, but non-electric commercial operations of a certain size fall under Act 250 environmental commissions.
Beaver Wood Energy's proposed facilities called into question which permitting process should be used. According to Beaver Wood, the facilities would use "waste wood" from logging operations, and what couldn't be used for wood pellets would be burned to make electricity; meanwhile excess heat from the power plant would be used to dry the pellets.
Both processes take into account environmental impacts, but Section 248 also examines economic factors as well as the affect on the power grid. Act 250 does not exempt a project from local zoning, and in most cases if a project has triggered the need for an Act 250 hearing, it also requires local zoning permits.
Hans Huessy, of Kenlan Schwieber Facey & Goss, P.C., a Rutland firm representing Beaver Wood, said the PSB decision is disappointing as it could lead to a long, more complex and expensive permitting process.
He said the company will now assess the likelihood of obtaining an Act 250 permit as well as local zoning permissions. There's an estimated 60 to 70 percent overlap between the work done for the Section 248 permit and what an Act 250 permit would require, Huessy said. Another option on the table for Beaver Wood is simply going forward with the biomass plant and leaving out the pellet factory.
According to its order, the PSB is requesting a filing from Beaver Wood indicating what it will do next by April 18.
The company announced a few weeks ago that it would suspend the permitting process for the proposed Pownal facility and would go forward with the Fair Haven project alone because of the market for biomass power in the state and the public response, which has been significantly more favorable in Fair Haven than Pownal.
For a number of reasons, the Maine-based company asserted that the PSB should hold jurisdiction over both operations and view them as one, however they were opposed by Williamstown, Mass., and the citizen group, Southern Vermont Citizens for Environmental Conservation and Sustainable Energy Inc., which said each facility was separate, and therefore not subject to just one permitting process.
Beaver Wood cited a 1971 opinion by the Attorney General that exempted aspect of electrical generation projects that bore a "Reasonable relationship and can be considered to be a part of and electric transmission or generation facility, having in mind the broad meaning to be ascribed to the word ‘facility.'"
The company also argued that having to go through both permits would be redundant, and it that it would impossible to determine which environmental impacts stemmed from which project, as they are so closely related. The company contended that the reviewers of each process must reach conflicting conclusions, thereby putting an impossible decision before the Vermont Supreme Court.
Williamstown and the SVC disagreed, saying the pellet facility does nothing toward the production of electricity and that it lies beyond the powers given to the PSB by statute.
In its decision, the PSB said the pellet facility isn't integrated enough with the operations of the biomass plant to be considered necessary for it to function; however, it did acknowledge that having both would likely benefit society as well as Beaver Wood's finances.
The PSB also rejected Beaver Wood's claim that state laws favor a "one-stop shopping" approach that would be contrary to requiring the two processes, citing the fact that each facility needs and has applied for 20 to 30 separate permits.
The PSB has ruled against Beaver Wood in the past, first in December when it rejected the company's request to begin basic construction so it would be able to qualify for a federal grant it feared would expire Dec. 31. While the point was rendered moot when Congress extended the grant deadline, the PSB issued a decision saying it didn't have the authority to grant permission for portions of projects.
Contact Keith Whitcomb at kwhitcomb@benningtonbanner.com.
Posted: 04/04/2011 10:59:16 PM EDT
Monday April 4, 2011 POWNAL -- A company proposing two 29.5-megawatt biomass and wood pellet factories in Pownal and Fair Haven has been dealt another setback.
The Public Service Board entered a decision Friday ruling that it does not hold jurisdiction over the wood pellet manufacturing side of the facilities.
In Vermont, under Section 248, the PSB has jurisdiction over facilities that produce electricity, but non-electric commercial operations of a certain size fall under Act 250 environmental commissions.
Beaver Wood Energy's proposed facilities called into question which permitting process should be used. According to Beaver Wood, the facilities would use "waste wood" from logging operations, and what couldn't be used for wood pellets would be burned to make electricity; meanwhile excess heat from the power plant would be used to dry the pellets.
Both processes take into account environmental impacts, but Section 248 also examines economic factors as well as the affect on the power grid. Act 250 does not exempt a project from local zoning, and in most cases if a project has triggered the need for an Act 250 hearing, it also requires local zoning permits.
Hans Huessy, of Kenlan Schwieber Facey & Goss, P.C., a Rutland firm representing Beaver Wood, said the PSB decision is disappointing as it could lead to a long, more complex and expensive permitting process.
He said the company will now assess the likelihood of obtaining an Act 250 permit as well as local zoning permissions. There's an estimated 60 to 70 percent overlap between the work done for the Section 248 permit and what an Act 250 permit would require, Huessy said. Another option on the table for Beaver Wood is simply going forward with the biomass plant and leaving out the pellet factory.
According to its order, the PSB is requesting a filing from Beaver Wood indicating what it will do next by April 18.
The company announced a few weeks ago that it would suspend the permitting process for the proposed Pownal facility and would go forward with the Fair Haven project alone because of the market for biomass power in the state and the public response, which has been significantly more favorable in Fair Haven than Pownal.
For a number of reasons, the Maine-based company asserted that the PSB should hold jurisdiction over both operations and view them as one, however they were opposed by Williamstown, Mass., and the citizen group, Southern Vermont Citizens for Environmental Conservation and Sustainable Energy Inc., which said each facility was separate, and therefore not subject to just one permitting process.
Beaver Wood cited a 1971 opinion by the Attorney General that exempted aspect of electrical generation projects that bore a "Reasonable relationship and can be considered to be a part of and electric transmission or generation facility, having in mind the broad meaning to be ascribed to the word ‘facility.'"
The company also argued that having to go through both permits would be redundant, and it that it would impossible to determine which environmental impacts stemmed from which project, as they are so closely related. The company contended that the reviewers of each process must reach conflicting conclusions, thereby putting an impossible decision before the Vermont Supreme Court.
Williamstown and the SVC disagreed, saying the pellet facility does nothing toward the production of electricity and that it lies beyond the powers given to the PSB by statute.
In its decision, the PSB said the pellet facility isn't integrated enough with the operations of the biomass plant to be considered necessary for it to function; however, it did acknowledge that having both would likely benefit society as well as Beaver Wood's finances.
The PSB also rejected Beaver Wood's claim that state laws favor a "one-stop shopping" approach that would be contrary to requiring the two processes, citing the fact that each facility needs and has applied for 20 to 30 separate permits.
The PSB has ruled against Beaver Wood in the past, first in December when it rejected the company's request to begin basic construction so it would be able to qualify for a federal grant it feared would expire Dec. 31. While the point was rendered moot when Congress extended the grant deadline, the PSB issued a decision saying it didn't have the authority to grant permission for portions of projects.
Contact Keith Whitcomb at kwhitcomb@benningtonbanner.com.
Monday, March 14, 2011
Agreement reached with Florida biomass plant opponents
A settlement agreement reached between seven opponents of a biomass power plant in Florida and developer American Renewables will allow construction to procede as scheduled. The development timeline of the Gainesville Renewable Energy Center is crucial in receiving tax credits that will mean savings for ratepayers.
The seven opponents have each individually appealed at least one of three required permits for the 100-megawatt project: a need determination permit; an air permit; and a site certification permit, according to Josh Levine, Gainesville Renewable Energy Center project manager. The opponents recently issued motions of voluntary dismissal on all of their appeals on the grounds that American Renewables will carry out certain measures at its energy center. All but the needs determination appeal have been dismissed by the court, according to Levine. “We’re still waiting for that case to be dismissed,” he said. “There’s no drama or suspense to it. It will be dropped because all parties requested it be dropped.”
The agreement stipulates additional oversight of the plant during construction and operation; more stringent emission limits not required by the Florida Department of Environmental Protection; additional testing; easier public access to data; and additional oversight allowing the Alachua County Environmental Protection Department to conduct sight visits. “They already have that right,” Levine clarified of the last measure. “We just made it a little more formal.”
Although the complaints of the opposition were concluded to be unfounded, the residents have the legal right to appeal, Levine said. He added that American Renewables’ decision to reach a settlement was not because of concern over permit issuance, but instead was to ensure the project timeline remained similar.
“What we are really getting in this agreement is finality in the appeals,” he said. In order for the project to receive the federal production tax credit, it must be operational by Dec. 31, 2013. Over 30 years, the credit will bring a savings of almost $200 million that will be passed along to the ratepayers, Levine said.
American Renewables will build, own and operate the GREC facility and will sell all electricity and environmental attributes generated from it to Gainesville Regional Utilities, the municipally owned utility that serves the Gainesville community, under a 30-year power purchase agreement. The biomass plant will use a variety of clean, renewable biomass materials, including forestry residues and other wood processing residue, urban wood residue and other wood waste.
The company expects to complete its financing in the next couple months and begin construction in late spring or early summer. “It’s a very good thing that the appeals are done and the project can finally move on,” he said.
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