HomeMy WebLinkAboutCOM 0582.041 2004-2006 Page 1 of 1
Murashige, Laura
From: James Weatherford [gardengreen@hawaiiantel.net]
Sent: Monday, September 18, 2006 1:41 PM
To: counciltestimony@co.hawaii.hi.us.
Subject: Testimony for Environmental Management Committee September 29 ,2006
Attachments: Council Testimony, EMC September 19, 2006, Communication 582.38.doc
James Weatherford, Ph.D.
P.O. Box 2017
[15-1888 6th Avenue (Hialoa), Hawaiian Paradise Park]
Kea'au, Hawaii 96749
808-982-5549
Comm. No. J p 2.41
Ref. To:Pte~ee
Ref. Uate P-_.~~0_6
9/22/2006
Comm. 582.38: SOLID WASTE REDUCTION PROJECT
PART ONE.
Neither Technology nor Regulations can Assure no Harm to the Community
The following are examples of cases that demonstrate why environmental regulations
provide false assurance and technology safeguards cannot be relied on to avoid
exposing the community to harm.
CASE I.
City of Perham, Minnesota sought $1,750,000 in disposal system revenue bonds in
March 5, 2003.
The Perham facility is awaste-to-energy facility located in an industrial park in the City.
The Facility was constructed in 1985 and began operation in 1986.
In July 1998, the Facility operations ceased under written directive from the Minnesota
Pollution Control Agency due to particulate emissions violations and failure of the
operator to correct the violation within the time frame allowed under Minnesota law. The
Facility had also not maintained auxiliary burners for start-up, shut-down and period of
low furnace temperatures in accordance with the permit requirements.
In August 1999, the City acquired the Facility in anticipation of its retrofitting and use.
NOTE:
Particulates are known to be harmful to human health.
The problem caused by low furnace temperatures is that dioxin is formed at these low
temperatures.
Twelve years from inception of operations, the facility ceased operations due to operator
negligence.
Thirteen years from inception of operations, public expenditure was used to purchase
the facility.
Seventeen years from inception of operations, including five years of no operation,
public debt was required to `retrofit'the facility.
The environmental health risks that this community was exposed to were not about
whether the technology being used was `modern.' It was about irresponsible operation.
Neither technological capability nor regulatory controls prevented conditions that create
dioxins and that resulted in emissions of particulates.
Technological safeguards and regulatory assurances failed to protect this community.
Source: Allison-Williams Company -Investment Bankers
CASE II.
This is about a Virginia State Air Pollution Control Board enforcement action issued to
Covanta Alexandria /Arlington, Inc. of Alexandria, Virginia.
On April 18, 2002 a Notice of Violation was issued to Covanta for violations of State Air
Pollution Control Board Regulations and applicable permit conditions. Specifically, the
violations were in regard to Covanta's failure to submit Excess Emissions Reports. On
January 3, 2002 there was a malfunction that resulted in a 4-hour exceedance of the
carbon monoxide limit set forth in the air permit. In 2003 a civil charge of $14,695.00 was
imposed on Covanta.
NOTE:
Regulations against excessive emissions failed to prevent environmental degradation.
Source: Virginia Department of Environmental Quality
Comm. 582.38: SOLID WASTE REDUCTION PROJECT
CASE III.
This is drawn from information provided by the regarding violations of environmental
regulations by Covanta.
On February 20, 2001 three notices of violation were issued.
1) Failure to prevent the emission of air pollution, as defined in the Pennsylvania Air
Pollution Control Act.
2) Failure to take reasonable actions to prevent particulate matter from becoming
airborne.
3) Failure to operate and maintain a source or control device in accordance with the
specifications.
NOTE:
The violations all occurred because the facility was not operated properly. Neither
antiquated technology nor lack of regulations was at fault -the operator (a vendor
proposing a facility in Hawaii County) was negligent.
Source: Pennsylvania Department of Environmental Protection
CASE IV.
Wheelabrator Falls Inc committed numerous air emission and monitoring violations at its
municipal waste incinerator in Falls Township, Bucks County, Pennsylvania.
Environmental Protection Regional Director Joseph A. Feola: "We found that
Wheelabrator had violated at least one permit condition every quarter since April 1999,
with some quarterly reports documenting as many as 15 separate violations."
Violations noted in monitoring reports from April 1999 through September 2003:
? Ash residue not stored according to regulations, including prevention of
dispersal.
? Solid waste not confined to unloading and approved storage areas.
? Surface or groundwater contact with waste not prevented or minimized.
? Refusal, hindrance, obstruction, delay, or threat against an agent of
Commonwealth.
? Operation not in accordance with approved plans and permit.
? Violation for operating a source not identified in the application for the plan
approval/operating permit.
The ash residue from incinerators is known to very toxic. Failure to store ash properly
and to allow its dispersal put this community, including the workers at the incinerator
site, in harm's way.
These violations demonstrate the inability or unwillingness of the incinerator to abide by
contractual obligations and regulatory requirements.
Source: Pennsylvania Department of Environmental Protection
Comm. 582.38: SOLID WASTE REDUCTION PROJECT
CASE V.
Pinellas County, Florida has had incinerator plant operations under contract with
Wheelabrator Pinellas, Inc. (WPI) since 1980. The County contracts with an independent
engineering firm to conduct annual inspections of the plant.
The following is taken from a 2005 audit by the County's Clerk of The Circuit Court:
? WPI does not timely implement recommendations noted during annual inspections of
the County's independent engineering firms.
? It does not appear that WPI has exercised all reasonable efforts to reduce operating
costs. These include use of lime reagents and natural gas.
? WPI noncompliance could have a significant impact on the Solid Waste costs and
revenues.
? Repairs and maintenance (at WPI's expense) that are inadequate or untimely could
result in accelerated aging of machinery and equipment, requiring major rebuilds or
total replacements (at County expense).
? Plant management operating expenses have increased 46% since fiscal year 1998,
and total operating expenses increased by 58%. Plant management expenses
include fees and cost reimbursements paid to Wheelabrator Pinellas Inc. (WPI) for
the management, operation, and maintenance of the County's solid waste facility.
? Tonnage processed has only increased 9%, revenues increased 27%, and the CPI
increased 13% during this same five-year period.
Source: Internal Audit Division, Clerk of the Circuit Court, Pinellas County, Florida.
The incinerator operator neglected to fulfill its obligations regarding maintenance and
repairs.
SUMMARY.
In all of the above cases, no amount of regulation or type of technology was sufficient to
avoid exposing the communities to pollutants that are known to be life-threatening. It
may or may not be true that the example facilities operated within regulatory limits on
more days than not. It is true that regulations were enforced, if belatedly, with financial
penalties and with an order to cease operations. Nevertheless, that enforcement did not
protect the communities. There was exposure to life-threatening harm in all of the above
cases. In Case V the negligence poses financial risks to the County government. In
Case I, there was a prolonged period of no service and then a financial burden placed
on the community involved.
Comm. 582.38: SOLID WASTE REDUCTION PROJECT
PART TWO.
How to Maintain High Margins for `Waste-to-Energy' Incineration: Increase Prices,
Pass Costs on to Customers, and Compete with Recycling
Wheelabrator Technologies, Inc. is one of three companies now in process of proposing
so-called "waste-to-energy" incineration for Hilo.
Wheelabrator is a wholly-owned subsidiary of Waste Management, Inc.
According to a March 7, 2006 press release, Waste Management, Inc. considers the
following as risks:
1. "Trends toward requiring recycling, waste reduction at the source, and prohibiting
the disposal of certain types of wastes." These trends "could have negative
effects on volumes of waste going to landfills and waste-to-energy facilities,
which are higher margin businesses than recycling."
2. Inability to carry out "plans" for "pricing increases" and "passing on increased
costs to customers" could "negatively affect revenues and margins."
Increased recycling, waste reduction, and restrictions on what can be burned, are all
viewed as being negative for'waste-to-energy' operations. Recycling competes with
incineration.
The "higher margins" for waste-to-energy operations, as compared to recycling, means
that an incineration company makes better money burning resources than conserving
resources.
Making money is fine -wasting resources, price gouging, and poisoning the community
to do so is not acceptable.
The need to protect these high "margins" is also reflected in the intent to increase prices
and pass costs on to customers.
A policy of increasing prices to improve service delivery is not unheard of and is
acceptable business practice. However, fora "waste-to-energy" business, the purpose of
planned price increases is to keep garbage incineration at a high profit margin.
For example, the preliminary contract in the Stage 2 RFP includes a "pass through"
provision. This means the incinerator operator will not need to be innovative in the face
of rising costs. The incinerator will pass increased costs to the customer (Hawaii
County), while the operator's profit margin remains high.
* Competition between recycling and incineration has been confirmed elsewhere. In
Massachusetts, even as total tonnage of municipal solid waste disposed of statewide decreased
by six percent due to aggressive recycling, a "put-or-pay requirement" in waste-to-energy service
agreements served as a disincentive to recycling in communities with waste-to-energy projects.
Source: "The North East Solid Waste Committee Project: Planning and Development of a Public
Private Partnership" The Commonwealth of Massachusetts Office of the Inspector General
(1998).