Minnesota Pollution Control Agency

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1 Minnesota Pollution Control Agency STATE OF MINNESOTA Minnesota Pollution Control Agency INDUSTRIAL DIVISION PUBLIC NOTICE OF INTENT TO REISSUE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES)/ STATE DISPOSAL SYSTEM (SDS) PERMIT MN Public Comment Period Begins: October 18, 2013 Public Comment Period Ends: November 18, 2013 Current Permit Issued: August 23, 2006 Current Permit Expiration Date: July 31, 2011 Name and Address of Permittee: Facility Name and Location: BioFuel Energy Corporation; Buffalo Lake Energy, LLC Buffalo Lake Energy 1600 Broadway Ste N Bixby Rd Denver, CO T102N, R31W, Section 1, Fairmont, Martin County, Minnesota Receiving Waters: Judicial Ditch 18 to Center Creek Description of Permitted Facility The Permittee has redesigned the facility, by eliminating former utility wastewater outfall SD001, to achieve compliance. The plant after completion of the facility redesign increases the production capacity from 118 to million gallons per year of undenatured ethanol, consuming approximately 43.7 million bushels (approximately 1.2 million tons) of corn per year. The facility also co produces 360,000 tons per year of distiller s dry grains with solubles (DDGS) and occasional lesser amounts of syrup and wet cake, sold as animal feed. The facility also extracts corn oil as a co product, and manages warehousing/storage/shipment elevators for grain not consumed at the facility. The fuel for the facility is natural gas. The makeup water for the facility is supplied by wells in the Cretaceous and Mount Simon aquifers, and by new wells in a lower sand and gravel aquifer; the facility water supply from the new wells replaces at least an equivalent amount of water previously supplied by the Cretaceous/Mount Simon wells. The raw well supply is treated and distributed to the ethanol production process, boiler, cooling tower and cold lime softening (CLS) systems. The water treatment residual wastes, boiler and cooling tower blowdowns, and floor drainage from the

2 Page 2 of 6 Water Treatment Building are treated by a CLS system, with the sludge press filtrate (when generated) and Water Treatment Building sumps returning back to the wastewater holding tanks for re treatment. The lime sludge is incorporated into the wet cake/ddgs, and/or stored in covered, indoor, metal containers, before transport off site to a MPCA authorized landfill for disposal (as monitored through station WS003), or to land application as agricultural liming materials (as monitored through station WS004). The water balance flow diagram below shows the intake and treatment units. The boiler feed ion exchange softener regeneration wastes are incorporated into the wet cake/ddgs. Reverse osmosis system cleaning activities are conducted periodically for the facility as maintenance; reverse osmosis cleaning and permeate flush wastewaters, sediments and residuals are hauled into the process water system. Boiler cleaning residuals have no blowdown or other release or discharge from the facility. The CLS clarifier effluent, and other flows (such as tank bottoms, hydroblasting and washdown waters, floor drainage and wet air emission control waters) generated by the ethanol and co product production processes are recycled and contained within the production process system, and have no blowdown or other release from the facility. Rinse waters, sediments and the residuals from the other non utility waste streams noted above are returned to the ethanol manufacturing process, which leads to the ultimate generation of ethanol and other final co products. None of the facility syrup, stillage, wet cake, modified wet cake, DDGS, or other byproducts are land applied. The only outdoor storage of raw materials, intermediate and finished products, byproducts and solid waste at the facility is for containerized totes, packaged containers and wet cake, and truck and rail fuel loading sites. The outdoor management of wet cake consists of storage on, and transport out from, a walled and unroofed outdoor concrete pad. During normal operating conditions, drainage from this pad is collected on the pad and returned to the plant process. The facility storm water is managed by a system of best management practices, including detention ponds, most of which collectively discharge through weir outfall SD002 to the municipal concrete storm sewer, which discharges at County Highway 39 to Judicial Ditch (JD) 18 to Center Creek (both class 2B, 3C, 4A, 4B, 5 and 6 waters). Drainage from the DDGS Storage Building, Administration Building and entrance road flows to the Highway 39 ditch, separate from the outfall SD002 system. No tile drainage is present at the facility except for: pre existing eastflowing tiles in the N ½ of the NE ¼ of Section 1; the JD 18 old and new (parallel) tile mains; JD 18 tile Branches F and G; tile placed laterally along the edge of certain of the rail loop immediately upgradient of the facility stormwater pond inlets; and a drain tile from the north side of the cooling towers to the facility stormwater collection system. None of these tiles have open intakes/drains on the facility property, or convey cooling water or other non stormwater flows. No dust control chemicals are applied at the facility. Aboveground storage tanks are covered under Aboveground Storage Tank (AST) Major Facility Permit No ; this AST permit covers the tank secondary containment drainage, which includes the flows from the facility truck and rail fuel loading sites. The drainage that accumulates in the tank secondary containment area is inspected and tested for the absence of fuel related contaminants before being routed to the facility stormwater detention ponds. Certain types of facility hydrostatic testing water discharges, for new equipment, also may occur. Domestic wastewater only is discharged to the city of Fairmont sanitary sewer collection system and is not covered by this permit. The location of the facility and outfall SD002 are shown on the following pages.

3 Page 3 of 6 Location of Facility

4 Page 4 of 6

5 Page 5 of 6 Preliminary Determination on the Draft Permit The Minnesota Pollution Control Agency (MPCA) Commissioner has made a preliminary determination to reissue this NPDES/SDS permit for a term of approximately five years. A draft permit is available for review at the MPCA office at the St. Paul address listed below, at the Rochester regional office and on line at A copy of the draft permit will be mailed to you if the MPCA receives your written or oral request at this office. If you have questions about this draft permit or the Commissioner's preliminary determination, please contact Jim D. Strudell at Written Comments You may submit written comments on the conditions of the draft permit or on the Commissioner s preliminary determination. Written comments must include the following: 1. A statement of your interest in the permit application or the draft permit. 2. A statement of the action you wish the MPCA to take, including specific references to sections of the draft permit that you believe should be changed. 3. The reasons supporting your position, stated with sufficient specificity as to allow the Commissioner to investigate the merits of your position. Petition for Public Informational Meeting You also may request that the MPCA Commissioner hold a public informational meeting. A public informational meeting is an informal meeting that the MPCA may hold to solicit public comment and statements on matters before the MPCA, and to help clarify and resolve issues. A petition requesting a public informational meeting must include the following information: 1. A statement identifying the matter of concern. 2. The information required under items 1 through 3 of Written Comments, identified above. 3. A statement of the reasons the MPCA should hold a public informational meeting. 4. The issues that you would like the MPCA to address at the public informational meeting. Petition for Contested Case Hearing You also may submit a petition for a contested case hearing. A contested case hearing is a formal evidentiary hearing before an administrative law judge. In accordance with Minn. R , the MPCA will grant a petition to hold a contested case hearing if it finds that: (1) there is a material issue of fact in dispute concerning the application or draft permit; (2) the MPCA has the jurisdiction to make a determination on the disputed material issue of fact; and (3) there is a reasonable basis underlying the disputed material issue of fact or facts such that the holding of the contested case hearing would allow the introduction of information that would aid the MPCA in resolving the disputed facts in making a final decision on the draft permit. A material issue of fact means a fact question, as distinguished from a policy question, whose resolution could have a direct bearing on a final MPCA decision.

6 Page 6 of 6 A petition for a contested case hearing must include the following information: 1. A statement of reasons or proposed findings supporting the MPCA decision to hold a contested case hearing according to the criteria in Minn. R , as discussed above. 2. A statement of the issues proposed to be addressed by a contested case hearing and the specific relief requested or resolution of the matter. In addition and to the extent known, a petition for a contested case hearing should also include the following information: 1. A proposed list of prospective witnesses to be called, including experts, with a brief description of proposed testimony or summary of evidence to be presented at a contested case hearing. 2. A proposed list of publications, references, or studies to be introduced and relied upon at a contested case hearing. 3. An estimate of time required for you to present the matter at a contested case hearing. MPCA Decision You may submit a petition to the Commissioner requesting that the MPCA Citizens Board (Board) consider the permit issuance. To be considered timely, the petition must be received by the MPCA by 4:30 p.m. on the date the public comment period ends, identified on page 1 of this notice. Under the provisions of Minn. Stat , subd. 6(4), the decision whether to issue the permit and, if so, under what terms will be presented to the Board for decision if: (1) the Commissioner grants the petition requesting the matter be presented to the Board; (2) one or more Board members request to hear the matter before the time the Commissioner makes a final decision on the permit; or (3) a timely request for a contested case hearing is pending. You may participate in the activities of the Board as provided in Minn. R The written comments, requests, and petitions submitted on or before the last day of the public comment period will be considered in the final decision on this permit. If the MPCA does not receive written comments, requests, or petitions during the public comment period, MPCA staff as authorized by the Board, will make the final decision on the draft permit. Comments, petitions, and/or requests must be submitted in writing on or before the end date of the public comment period identified on page 1 of this notice to: Jim D. Strudell Industrial Division Minnesota Pollution Control Agency 520 Lafayette Road North St. Paul, MN

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