HCCP clears permitting hurdle
Along with the Alaska Industrial Development and Export Authority, we are pleased to have completed negotiating a Consent Decree (agreement) with the Environmental Protection Agency. The Conscent Decree will now go before a federal judge for review.
The Consent Decree resolves concerns that the EPA may have had with the Alaska Department of Environmental Conservation with regards to renewing HCCPs air permit.
We chose to pursue the Consent Decree option with the EPA, otherwise, there was no defined end to the air permitting process. And, very importantly, the Consent Decree avoids what we believe would have been lengthy and costly litigation.
Consent Decree* Stipulations:
- We agreed to install the most rigorous emission controls available on HCCP with an estimated cost of $40 million. We’ll also install additional nitrous oxide controls on Healy 1, estimated at less than $5 million.
- We agreed to pay $250,000 to help fund the Fairbanks North Star Borough and Denali Borough Woodstove Change-out program. This will help alleviate the particulate matter problems in the Interior.
- We negotiated for a minimal payment of $115,000 to the EPA. Payments to the EPA are required under the rules of a Consent Decree.
A couple of things still need to happen before we have the keys to the plant:
- Judge’s final approval of the Consent Decree
- Finalize the environmental review process required by the Rural Utilities Service
Once we have the keys to the plant, we anticipate HCCP start up in 18 to 24 months.
*The Consent Decree does not require any mandatory shutdown dates for either Healy 1 or HCCP. GVEA’s board of directors retains full control of decisions regarding shutdown of either plant.
