Northern States Power Company 414 Nicollet Mall 211 N. Broadway, Suite 211 Minneapolis, MN Green Bay, WI 54303

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1 PC Lab USA CUP Ash Processing Facility 02/07/18 Property Owner Applicant Northern States Power Company Lab USA 414 Nicollet Mall 211 N. Broadway, Suite 211 Minneapolis, MN Green Bay, WI Request and Location Request for review and approval of a Conditional Use Permit to allow for the mining of ash and for the operation of an Ash Processing Facility. The proposed facility will recover and remove ferrous and non-ferrous metals from the combustor ash generated by the Wilmarth Steam Plant, and from the existing ash landfill associated with the Wilmarth Ash Disposal Facility. The location on the property for the proposed use is zoned Agricultural. It is also located within the Urban Fringe Overlay District of the City of Mankato. The property is located in part of the Northeast Quarter of the Northwest Quarter and part of the Northwest Quarter of the Northeast Quarter of Section 32, South Bend Township. Legal Description The property is located in part of the Northeast Quarter of the Northwest Quarter and part of the Northwest Quarter of the Northeast Quarter of Section 32, South Bend Township. Zoning The property is zoned Conservation and Agricultural, and is also located within the Urban Fringe Overlay District of the City of Mankato. Site History and Project Proposal The general area has been used as a solid waste disposal area since In 1986, Northern States Power (NSP) purchased 42 acres from the original landfill owners and in 1987 began operations of the Wilmarth Ash Disposal Facility. The property currently consists of acres that includes the Wilmarth Ash Disposal Facility, several monitoring wells, and a portion of 200 th Lane (a private road). The facility operates daily and year-round when the Wilmarth generating facility is in operation. Normal operating hours are 6:30a 6:00p. The facility is not open to the public. The facility accepts refuse derived fuel (RDF) ash from Xcel Energy s Wilmarth Generating Station in Mankato. The ash is a mixture of fly ash, bottom ash, and lime scrubber solids resulting from the combustion of RDF to create electricity. The facility only accepts ash and ash contaminated material such as dust masks, shop rags, and other material that has come into contact with the ash at the gathering station. The facility is currently permitted to store a maximum of 2.65 million cubic yards of ash. The site accepts approximately 50,000 cubic yards of ash per year from the Xcel Energy Wilmarth Generating Station. Based on current acceptance rates, Xcel Energy anticipates the existing facility having enough capacity to operate until

2 PC Lab USA CUP Ash Processing Facility 02/07/18 Lab USA is proposing to construct a 73,200 ft 2 facility which will process both the combustor ash, as well as the ash mined onsite. The purpose of the processing is to recover and remove ferrous and non-ferrous metals. The extraction of the ferrous material is done through a mechanical process involving magnets. The extraction of the non-ferrous material is done through a process known as Eddy Currents. In this process, loops of electrical current are used to create magnetic fields which captures the non-ferrous material. Neither process requires the use of chemicals or additives, and the ash will remain chemically unchanged. It is important to note that Lab USA has a similar project, with an identical extraction process, that was approved in Red Wing, Minnesota. As a part of that application and approval process a Voluntary Environmental Assessment Worksheet (EAW) was completed. The EAW focused on the ash material, and the proposed project s potential to negatively impact the air quality, stormwater, groundwater, traffic, introduce dust, and create noise. After the review was completed and the MPCA addressed questions and concerns from the public, the MPCA determined the proposed use does not have the potential for significant environmental effects. Project Outcome If approved, the applicant s will need to apply for and receive approval of a construction permit before proceeding with any development on this site. Once the structure is built, the construction of cell 11 will begin. At the same time, cells 5 and 6 will be mined so the ash in those cells can be processed and used for the construction of cell 11. See Attachments A-4a & A-4b Existing Land Use within One Mile North: 200 th Lane (Private Road), Ponderosa Solid Waste Landfill, woodland that includes a ravine system, crop land, a gravel mining operation, and the Blue Earth River South: Woodland, crop land, 198 th Lane (Township Road), Galena Lane (Township Road), CSAH 34, and 540 th Avenue (Township Road) East: Ponderosa Landfill, woodland, crop land, CSAH 34, and 549 th Lane (Township Road) West: Wooded ravine system, Blue Earth River, crop land, a gravel mining operation, and 539 th Lane (Township Road) Dwellings: Currently, there are 29 residential dwellings located within one mile of this location. The closest being approximately 1,300 feet south of the proposed structure. See Attachment A-5 Access No change in access is being proposed. The existing access is to and from 200 th Lane, a private road. As a part of this Conditional Use Permit, a portion of 200 th Lane will need to be graded and realigned to accommodate the size of the proposed structure and to improve the turning ability of the associated truck traffic. 2

3 PC Lab USA CUP Ash Processing Facility 02/07/18 NATURAL RESOURCES INFORMATION Topography The topography of the site ranges between gradual elevation changes within the property, to steep slopes along the river and around the landfill area. See Attachment A-6 Floodplain There is no mapped FEMA Floodplain within the area of the proposed structure. The nearest mapped FEMA Floodplain is approximately 550 feet west of the proposed structure. See Attachment A-7 Shoreland The northwest corner of the property contains an area within the Shoreland Overlay District of the Blue Earth River. However, the proposed structure will be located approximately 270 feet east of the Shoreland Overlay District. See Attachment A-8 Township Review In an dated, December 6, 2017, Jamie Malvin, the Clerk for South Bend Township stated the applicant s attended the regularly scheduled Township meeting for December The Township reviewed the proposal and approves of the request regarding the Metal Recovery Project. City of Mankato Review In an dated, December 20, 2017, Mark Konz, the Planning Coordinator of the Community Development Department of the City of Mankato stated that the City of Mankato does not object to the proposal as it is a complimentary use to the existing allowed utilization of the property. Minnesota Pollution Control Agency Review During a phone call on January 24, 2018, staff discussed this proposal with Dan Aamodt, an Engineer in the Solid Waste Division of the Minnesota Pollution Control Agency. Mr. Aamodt stated that the proposal is identical to the approved Ash Processing Facility in Red Wing, Minnesota. Because the processes within the two projects are identical, the environmental information contained in the voluntary EAW for the Red Wing site would also apply for the site in Blue Earth County. During this conversation we also discussed the continued monitoring of the proposed use to ensure no pollution issue arises. Mr. Aamodt stated that the applicants are required to submit quarterly reports that include test results related to dissolved solids, total suspended solids, as well as tests for the presence of any heavy metals. See Attachment A-9 Voluntary EAW Findings As previously discussed, a Voluntary EAW was conducted for the location in Red Wing, Minnesota. The entire report can be viewed at the Blue Earth County Environmental Services Department or online at the following web address: For the EAW Findings, see Attachment A-10 3

4 PC Lab USA CUP Ash Processing Facility 02/07/18 Environmental Health Review See Attachment A-11 APPLICABLE SECTIONS OF THE COUNTY ZONING ORDINANCE Sec Planning Commission (f) Findings required. 1) Enumeration. The Planning Commission shall not forward a recommendation of approval for a conditional use permit unless they find the following facts at the hearing where the applicant shall present a statement and evidence in such form as the Planning Agency may require: a. That the proposed use conforms with the county land use plan. b. The demonstrated need for the proposed use. c. That the proposed use will not degrade the water quality of the county. d. That the proposed use will not adversely increase the quantity of water runoff. e. That soil conditions are adequate to accommodate the proposed use. f. That the proposed use does not create a potential pollution hazard. g. That adequate utilities, access roads, drainage and other necessary facilities have been or are being provided. h. That adequate measures have been or will be taken to provide sufficient off-street parking and loading space to serve the proposed use. i. That facilities are provided to eliminate any traffic congestion or traffic hazard which may result from the proposed use. j. That the conditional use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted. k. That the establishment of the conditional use will not impede the normal and orderly development and improvement of surrounding vacant property for predominant uses in the area. l. That adequate measures have been or will be taken to prevent or control offensive odor, fumes, dust, noise and vibration, so that none of these will constitute a nuisance, and to control lighted signs and other lights in such a manner that no disturbance to neighboring properties will result. m. That the density of proposed residential development is not greater than the density of the surrounding neighborhood or not greater than the density indicated by the applicable zoning district. 4

5 PC Lab USA CUP Ash Processing Facility 02/07/18 n. That the intensity of proposed commercial or industrial development is not greater than the intensity of the surrounding uses or not greater than the intensity characteristic of the applicable zoning district. o. That site specific conditions and such other conditions are established as required for the protection of the public's health, safety, morals and general welfare. Sec Uses. (b) Conditional uses. The following uses may be allowed in the A district as a conditional use as regulated in article II of this chapter (10) Extraction of minerals, associated mining and processing activities as regulated in Sec (provided as a handout) Proposed Findings of Facts (The proposed findings below are directly related to the above standards, labeled, items a-o) After careful review of the project and all associated documents, staff has developed the following suggested findings for this project: a. That the proposed use conforms with the county land use plan. The Blue Earth County Land Use Plan states, Blue Earth County contains large areas of environmentally sensitive land. It is in the County s best interest to adopt performance standards to protect natural resources such as bluff areas, rivers, wetlands, and wooded areas, from development pressures. This request will allow the proposed structure to be located in an area that is already disturbed, and away from the environmentally sensitive areas to the west and near the Blue Earth River. For this reason, the request appears to be consistent with the intent of the Land Use Plan. b. The demonstrated need for the proposed use. The property owner has stated that recycling this material is in the best interest of the public. The recycling of this material will reduce the need for virgin materials to make products that use both ferrous and non-ferrous metals. An additional benefit will be a slight increase in the capacity of the ash landfill which will extend the life of the facility. It appears there has been a demonstrated need for the proposed use. c. That the proposed use will not degrade the water quality of the county. The site has several monitoring wells located throughout the property. In addition to these monitoring wells, there are other regulations placed on this activity by the MPCA including annual and quarterly testing of the stormwater and groundwater. If all regulations are followed, it seems unlikely that the proposed use will degrade the water quality of the county. 5

6 PC Lab USA CUP Ash Processing Facility 02/07/18 d. That the proposed use will not adversely increase the quantity of water runoff. The property has a sedimentation pond located on both the west and east sides of the parcel. The applicant s will be required to update the Storm Water Pollution Prevention Plan (SWPPP) to accommodate the proposed structure. In addition to the stormwater infrastructure, there is also an underground leachate tank that is pumped out regularly and its contents are removed from the property. Therefore, it seems unlikely that the project would adversely increase the quantity of water runoff. e. That soil conditions are adequate to accommodate the proposed use. According to the Blue Earth County Soils Map, the property consists of a series of soil types which are not classified as potentially highly erodible land. If the project area is revegetated and erosion control measures are maintained, it seems likely that the onsite soil conditions are adequate to support the proposed use. f. That the proposed use does not create a potential pollution hazard. As stated in the Voluntary EAW, this proposed use was tested for impacts from noise, dust, stormwater, leachate, traffic, and hazardous air pollutants. It was concluded by the MPCA that the proposed use does not have the potential for significant environmental effects. g. That adequate utility, access roads, drainage and other necessary facilities have been or are being provided. The proposal has been reviewed by the South Bend Township Board. They expressed no concerns with the use. The onsite truck traffic will be on a private road that is not maintained by the Township. In addition, the property has two sedimentation ponds and a leachate system to help manage drainage. For these reasons, it appears likely that the proposed use meets this required standard. h. That adequate measures have been or will be taken to provide sufficient off-street parking and loading space to serve the proposed use. The project narrative and the Site Plan discusses and displays the loading and unloading areas, as well as an off-street parking area to the east of the proposed structure. As shown, the parking area will accommodate 10 parking spaces. Lab USA states the facility will staff 4-8 employees during hours of operation. It appears adequate measure are being taken to provide sufficient off-street parking and loading space to serve the proposed use. i. That facilities are provided to eliminate any traffic congestion or traffic hazard which may result from the proposed use. The area where the proposed use will be conducted is nearly 300 feet from the nearest public right-of-way. In addition, this private road is not open to use by the public. All the traffic along this private road is connected to either this facility or the County Ponderosa Landfill to the north. For these reasons, it appears unlikely that the proposed use will create a traffic congestion issue or traffic hazard in the immediate area. 6

7 PC Lab USA CUP Ash Processing Facility 02/07/18 j. That the conditional use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted. The nearest residential structures in the area is approximately 1,300 feet away from the location of the processing facility. The hours of operation for the proposed use will mirror those of the existing uses in the area. According to the information contained in the EAW, the noise level of the proposed use should not exceed 85 decibels (about the same as a garbage disposal or household blender) inside the building. Therefore, the proposed use should not be injurious to the use and enjoyment of other property in the immediate vicinity. k. That the establishment of the conditional use will not impede the normal and orderly development and improvement of surrounding vacant property for predominant uses in the area. The proposed use does not have any additional setback requirements for a residential structure, and does not require a residential development right to be constructed. Therefore, it seems unlikely that this project would impede the development of surrounding vacant property in the area. l. That adequate measures have been or will be taken to prevent or control offensive odor, fumes, dust, noise and vibration, so that none of these will constitute a nuisance, and to control lighted signs and other lights in such a manner that no disturbance to neighboring properties will result. The proposed use will be contained entirely by the 73,000 square foot facility, and will not add any lighting to the property. The MPCA has specific parameters for determining what sized particles can be considered dust. The particles that make up the ash at this location are too large and have a moisture content that is high enough to keep them from being considered dust. In addition to the previously discussed noise levels, the voluntary EAW also considered several other categories that could constitute a nuisance. None of these categories exceed the allowed levels of the MPCA. The extraction process involves the use of a magnet or electric current to capture the ferrous and non-ferrous material. The process does not involve any burning or chemical reactions so no offensive odors should be present. Therefore, it is unlikely that this proposed use would create any disturbance for the neighboring property owners. m. That the density of proposed residential development is not greater than the density of the surrounding neighborhood or not greater than the density indicated by the applicable zoning district. This standard does not apply to this request. 7

8 PC Lab USA CUP Ash Processing Facility 02/07/18 n. That the intensity of proposed commercial or industrial development is not greater than the intensity of the surrounding uses or not greater than the intensity characteristic of the applicable zoning district. Although this is an Agricultural zoned district, this immediate area has operated as an industrial zone for nearly 50 years. The proposed use in a temporary intensification that is scheduled to last for approximately 10 years. If all County and State regulations are followed during that time, it is unlikely that the increased intensity of the industrial development will be greater than that of the surrounding industrial use. o. That site specific conditions and such other conditions are established as required for the protection of the public's health, safety, morals and general welfare. The protection of the public's health, safety, morals and general welfare are addressed in the findings of the voluntary EAW, in the MPCA s permitting requirements, and in the conditions recommended below. Recommendations Staff recommends APPROVAL of the request to for the mining of ash and for construction and operation of an Ash Processing Facility with the following conditions: 1. Operation of the Ash Processing Facility shall be subject to all required MPCA approvals. 2. Standard operating hours of the Ash Processing Facility shall be between 7:00 am and 5:00 pm, Monday through Saturday. Any substantial change to these hours must be reviewed and approved by the Blue Earth County Environmental Services department. 3. Prior to the commencement of the proposed use, the applicants shall comply with all MPCA stormwater requirements. 4. The applicants shall apply for and receive a construction permit before commencing any construction related activities. 5. The proposed structure shall be located at least three feet from any of the existing monitoring wells. 6. Prior to the commencement of any grading or filling activities, the extent of the entire project (grading, filling, the re-alignment of the road, the perimeter of the structure, the parking area, etc.) shall be staked or otherwise marked so the potential impact to nearby monitoring wells can be reviewed by the Blue Earth County Well Specialist. If any wells need to be sealed because of this project, those wells shall be sealed by a licensed contractor and in accordance with all Blue Earth County regulations. 7. The applicant shall provide a copy of the local Minnesota Department of Health Well Log for any replacement monitoring wells associated with this project. 8

9 PC Lab USA CUP Ash Processing Facility 02/07/18 8. Once it is sealed, the applicant shall provide a copy of the local Minnesota Department of Health Sealed Well Log for monitoring well MW Any construction activities near #H07902, the sealed well west of the proposed structure, shall be conducted in a manner that does not disturb the integrity of the properly sealed well. 10. Only ash from the Mankato Wilmarth Power Plant or the Xcel Energy Ash Landfill shall be allowed to be processed at the ash processing facility. 11. The construction and operation of this use shall not impede the normal operations of the County s Ponderosa Landfill. 12. Prior to the issuance of a construction permit, the applicant shall obtain a County Land Disturbance Permit. 13. Prior to the issuance of a construction permit, the applicant shall prepare a Stormwater Pollution Prevention Plan. 14. Prior to the issuance of a construction permit, the applicant shall receive an MPCA Construction Stormwater Permit. Attachments A-1 General Location Map A-2a Current Site Map A-2b Current Site Map A-3a Project Narrative A-3b Project Plans A-4a Proposed Site Map A-4b Cell Location Map A-5 Residential Structure Proximity Map A-6 Topography Map A-7 Floodplain Map A-8 Shoreland Overlay Map A-9 MPCA Review A-10 Voluntary EAW Findings A-11 Environmental Health Review 9

10 General Location Map Attachment A-1 Location of the Proposed CUP

11 Current Site Map Attachment A-2a Property Boundary (approximate) 200th Ln Existing Ash Landfill (approximate) Approved Ash Landfill Expansion (approximate) ,880 Feet

12 Current Site Map Attachment A-2b Property Boundary (approximate) Overhead Power Lines (moved underground) 200th Ln Existing Ash Landfill Boundary (approximate) Existing Leachate Tanks and Pump Feet

13 Project Narrative Attachment A-3a

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17 Project Plans Attachment A-3b

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24 Proposed Site Map Attachment A-4a Proposed Ash Processing Facility Property Boundary (approximate) 780 ft 200th Ln 90 ft 120 ft Existing Ash Landfill Boundary (approximate) Existing Leachate Tanks and Pump Feet

25 Cell Location Map Attachment A-4b

26 Residential Structure Proximity Map Attachment A-5 Houses within 1-Mile of Ash Landfill Property US H 204th Ln th Ln Garland Ln Blue Earth River Gooseberry Ln 549th Ln 200th St EF th Ln 198th Ln 549th Ave Galena Ln Greenstone Rd EF th Ave 195th Ln House within 1-Mile of Ash Landfill Property House over 1-Mile from Ash Landfill Property AshLandfill Ash Landfill Property 1-Mile Radius from Ash Landfill Property Mile µ Prepared By: Blue Earth County Environmental Services December 2017

27 810 Topography Map Attachment A ue Ea rth Riv er Proposed Ash Processing Facility Bl 200th Ln Parcel Elevation Contour Index (10 Ft) Intermediate (2 Ft) Feet ³ Source: Contours - MN LiDAR 2012

28 Floodplain Map Attachment A-7 April 20, 2011 Draft Data Preliminary Flood Insurance Rate Map Proposed Ash Processing Facility Blue Earth River 200th Ln Special Flood Hazard Area (1% Chance Flood) Feet ³ Base Flood Elevation (FT) Zone AE - Floodway Zone AE - Floodfringe Zone A - No Base Flood Elevations Other Flood Areas 0.2 % Chance Annual Flood Hazard Area Protected By Levee

29 Shoreland Overlay Map Attachment A-8 B l u e Ea rth R iv e r Proposed Ash Processing Facility 200th Ln

30 Aaron Stubbs From: Sent: To: Subject: MPCA Review Attachment A-9 Aamodt, Daniel (MPCA) Wednesday, January 31, :22 PM Aaron Stubbs MPCA comments on Xcel Wilmarth Permit Modification and Reissuance Aaron, The purpose of this is to summarize the discussions we ve had over the phone regarding the modifications to Xcel Energy s Wilmarth Ash Disposal Facility. As you are aware, Xcel Energy has submitted an application for reissuance and modification of their state issued solid waste permit SW-298. The most recently issued version of the permit expired in November 2011 but the facility has be allowed to carry on operations as outlined in Minnesota Rule The current permit application submitted by the permittee proposes to modify the facility s operations plan to allow for the extraction of ash previously placed at the facility for the purpose of metal recovery. The metal recovery will occur at a processing facility that will be constructed and operated by LabUSA in an area adjacent to the ash landfill. The MPCA has reviewed the submitted permit application and has determined that the modification to the facility s operations plan will not result in increased environmental impacts at the facility. The MPCA is currently preparing a draft version of the modified permit. When the draft permit is finalized a 30-day public comment period will be held to allow for citizens and local units of government to provide input on the draft permit before it is issued. It should be noted that the MPCA is currently only reviewing modifications related to the Ash Disposal Facility permit. LabUSA will be required to apply for a separate state issued solid waste permit to construct and operate the ash processing facility itself. The proposed ash excavation and processing operation is analogous to a similar operation that was permitted for Xcel Energy and LabUSA in Red Wing, Minnesota in For the Red Wing project LabUSA completed a voluntary Environmental Assessment Worksheet (EAW). Although the EAW was created specifically for the Red Wing facility many of the findings from the worksheet would equally apply to the proposed project at the Wilmarth facility. If you have any additional questions or concerns feel free to contact me. Regards, Dan Aamodt Engineer, Land Permits Unit Industrial Division Minnesota Pollution Control Agency 520 Lafayette Rd St. Paul, MN daniel.aamodt@state.mn.us 1

31 Voluntary EAW Findings Attachment A-10

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51 Environmental Health Review Attachment A-11