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HomeMy WebLinkAboutMinutes 09/22/2010ROLL CALL MINUTES PLANNING COMMISSION Port Angeles, Washington 98362 September 22, 2010 6:00 p.m. Members Present: John Matthews, Doc Reiss, Tim Boyle, Nancy Powers, Carla Sue, Sissi Bruch, Mike Caudill Members Excused. Doc Reiss Staff Present: Nathan West, Scott Johns, Sue Roberds, Heidi Greenwood, Kent Myers, Jim Mahlum, Public Present: Brenda Nailor, Bill and Kay Hermann, Joanne Eagan, Lee Whetham, R. Pursley, Linda Rotmark, Rod Weeks, John Calhoun, Jeff Robb, Janet Marx, Harold Norlund, Darlene Putnam, Amy Dougherty, Jon Jacobs, Ken Reandeau, Bill Atkinson, Sally Knight, Steve Johnson, Randy Johnson, Gary and Jan I Iolmquist, Duff Badgley, Mary Sue French, Cathy Price, Ellen Fefchiet, Bill Marsh, Darlene Schanfald, Jim Hallett, Doug Ahmann, Diana Somerville, Jim and Marie Moran, Paul Perlwitz, Elizabeth Clark, Elizabeth Koehler, Harry Bell, Rae Puntenney, Sean Newman, Carlene Godwin, Brian Walsh, Shirley Nixon, Carol Johnson, Jo Johnston, Paul McHugh, Jim McEntire, Gene Peterson, Gretchen Brewer, Alice Derry, Ron Richards, Norma Turner, Dan Curto, Alice Deery, Bobette, Tami Smith yactfo Chair Matthews opened the meeting and conducted the Pledge of Allegiance at 6 10 p.m. APPROVAL OF MINUTES Chair Matthews noted that consideration of the September 8, 2010 minutes would be continued to the end of the meeting. PUBLIC HEARINGS: SHORELINE SUBSTANTIAL DEVELOPMENT PERMIT SMA 10-01 NIPPON PAPER INDUSTRIES USA CO., LTD 1902 Marine Drive: An application to facilitate a biomass cogeneration use at the Mill site located in the IH Industrial Heavy zone within the shoreline jurisdiction. Associate Planner Scott Johns reviewed the Department Report recommending approval of Shoreline Substantial Development Permit SMA 10 -01 with conditions. Mr Johns read a statement to clarify important parameters of the meeting procedure indicating that the proposed development will require two separate application approvals. The first item will be consideration of the industrial expansion in the Industrial Heavy zone within a shoreline location. The second item is consideration of a conditional use permit to allow an increase in height for several of the structures in the event the first item is approved. The second item will only be heard if the shoreline use is approved. It is not within the Planning Commission's purview to determine air quality impacts nor is it the responsibility of the Port Angeles Planning Commission to evaluate perceived or expected off site impacts other than those scoped in the environmental impact Planning Commission Minutes September 22, 2010 Page 2 statement -that include truck traffic, noise, water resources, and site impacts that are relative to the expansion issue. Environmental and operational issues that are not within the purview of the City will be considered by other state and federal agencies with jurisdiction for oversight and approval of such activities such as the Olympic Region Clean Air Agency (ORCAA). It is the responsibility of the Planning Commission to consider the known land use impacts of the proposed use specific to the site. He noted that the Planning Commission would need to stay within their area of jurisdiction in this matter to create a good record of review Community Economic Development ICED) Director Nathan West noted that, although the Staff Report was not read into the record in its entirety, the entire Report including the Final Environmental Impact Statement (FEIS) submitted in support of the application is considered to be part of the record. Planner Johns responded to Commissioner Bruch indicating that the Planning Commission's purview in this matter is to consider known impacts of the proposed expansion to the shoreline area in which the site is located and whether the proposed activity is supported and is in compliance with the City's Comprehensive Plan, Zoning Ordinance, Shoreline Master Program and other development regulations. The Planning Commission's authority does not extend to forestry or air quality issues. Mr Johns noted that other agency permits must be obtained for the use to be successful including air quality permits from the Olympic Region Clean Air Authority (ORCAA). Assistant City Attorney Heidi Greenwood reiterated that the Planning Commission's limit of authority is defined in the findings and conclusions found in staff's report and are the land use impacts of the proposal within the shoreline and zone in which the site is located. In response to Commissioner Powers, Mr Johns answered that the net increase in truck traffic is estimated at one truck per hour over a 24 -hour period for approximately 20 /day Chair Matthews read the qualifying questions regarding the Appearance of Fairness and Conflict of Interest Doctrines for the Commissioner's responses. All Commissioners responded that they do not have any issues to make public and could act fairly on the matter at hand. Chair Matthews asked audience members if they have grounds to disqualify any Commission member from acting on the matter No one responded. Chair Matthews reviewed the public hearing procedure. Given the number of people who indicated that they intended to provide testimony, the Chair placed a 2 minute time limit for speakers with the applicant wrapping up the testimony by responding briefly to any issues at the end of public testimony Planning Manager Sue Roberds acted as timekeeper Nippon Paper Industries USA Mill Manager Harold Norlund, 1902 Marine Drive, Port Angeles, WA stated that the current Mill expansion is the largest improvement planned by the Mill in more than 40 years. Upon completion, the new facilities will efficiently produce steam for paper making operations, and the cogeneration facilities will produce 20 megawatts of renewable energy to help meet the regional need for electricity The Mill has operated at the current site for 90 years producing paper products. The proposed expansion will allow the Mill operation to become less dependent on fossil fuels that will reduce air pollutant emissions. The Mill prides itself on following rules and producing a light weight paper that is certified as "sustainable," while recycling paper products, all within a low carbon footprint. The Mill survivability is dependent on using resources wisely and being innovative. The expansion will Planning Commission Minutes September 22, 20/0 Page 3 not only reduce dependence on fossil fuels but will use raw materials readily available locally that are a byproduct of the forest industry The expansion will retain and create jobs. The Mill has worked for years to reduce greenhouse gas emissions. The current boiler is too small to meet steam requirements. The proposed boiler will produce 100% of the Mill's regular steam needs from biomass. Coupled with a new steam turbine generator, the new boiler will be more efficient because it will include a combustion chamber and will be coupled with state of the art air quality equipment required by ORCAA. The new boiler will substantially reduce air emissions. Burning biomass in the boiler system will reduce open burning throughout Clallam and Jefferson Counties by reducing slash burning which is the current method of dealing with slash. Forty (40) to 90 jobs will temporarily be created during the 18 month construction process with 20 permanent jobs. The industrial expansion will allow the Mill to operate much more efficiently and will be environmentally responsible. Mr. Norlund responded to Commissioner Caudill that boiler #8 will need to remain as a backup for emergency use. Gary Holmquist, 1038 Grant Avenue, Port Angeles, WA, Nippon Paper Industries stated that boiler #8 was built in the mid 1950's and was converted to burn biomass in 1976. The boiler has been using oil and biomass since that time. In response to Commissioner Bruch, Mr Holmquist stated that cooling tower issues are a little undecided because it is anticipated that water temperature will drop with removal of the Elwha Dams. Mr Nordlund responded to several questions regarding steam generation, water needed for Mill operations, and where biomass is acquired. Mr. Norlund indicated that the amount of biomass needed will approximately double with the project. Biomass comes from sawmill discards, urban wood discards, remains from forestry harvesting, forest slash, tree trimmings. Commissioner Brach was concerned with forest health issues. CED Director Nathan West encouraged the Commission to stay on point with questions relative to the proposal. Commissioner Powers asked if there would be a push to hire locally Mr Norlund indicated that there may be some skill needs that cannot be met locally but there will be many jobs available particularly during the construction phase which is anticipated to be 15 to 18 months. Rod Weeks, 807 N. Lees Creek Road, Port Angeles, WA is an employee of Nippon Paper Industries and represented a union of Mill workers who support the application. Many paper products are now produced in other countries where regulations for industry are not so strict. It is difficult to compete in this environment while continuing to upgrade safety and emission equipment. Results of the Mill expansion will be new jobs and the retention of existing jobs while adding a "green" power source and continuing to produce a sustainable green product. The Mill has consistently upgraded its equipment and has been a good neighbor The proposal will result in an overall net reduction in emitted pollution elements. He encouraged approval of the project as a further investment in the community Bill Hermann, 2477 Blue Mountain Road, Port Angeles, WA said the project will be in conformance with laws that emanated from voter approved Initiative 937 that requires that everything be done to reduce dependence on fossil fuels. Commercial forests on the Peninsula can produce up to 400,000 tons of bone dry biomass per year. Biomass consists of brush and limbs that are left behind after forestry operations have been completed. Nippon Paper will use Planning Commission Ahnutes September 22, 2010 Page 4 approximately 25% of the biomass that is currently being created. Biomass does not include stumps or the duff layer of the harvest floor Forests are not harvested for biomass. The Pacific Northwest Research Station determined that current forest practices result in a reduction of nutrients from the forest floor of 3% to 5 which amount of nutrient is regenerated when newly planted forest plants begin to drop their needles once again adding to the forest floor environment. He submitted a copy of the report he referred to on forest management for the record. Jim Hallett, 321 E. First Street, Port Angeles, WA represented the Port Angeles Chamber of Commerce. Speaking for the Chamber of Commerce, and as a community member, he encouraged approval of the shoreline permit. The issue is pretty straight forward and is asking for expansion of an industrial use within a shoreline area. If not for the shoreline location, the permit would not be under consideration. The conditions, findings, and conclusions easily support the activity John Calhoun, 311 Dancing Elk Road, Beaver, WA is a Commissioner for the Port of Port Angeles but was speaking as Director of the University of Washington Olympic Natural Resources Center in Forks, Washington. A critical question of woody biomass use as a green energy supply is whether the feed source is sustainable. Adequate biomass will always be left in the forest to support ecological functions. The Center encourages approval of the shoreline permit as it is a project that meets the dictates of the State in seeking alternative energy sources to reduce dependence on fossil fuels. Linda Rotmark, 180 Still Road, Port Angeles, WA spoke on behalf of the Clallam County Economic Development Council that expressed strong support for the project. Jeff Robb, Director Executive Director for the Port of Port Angeles, P.O. Box 1350, Port Angeles, WA strongly supported the project on behalf of the Port and the Port Commission. The proposal creates and sustains jobs while improving the environment by a reduction in air pollutionemissions of 20 The removal of slash from the woods to be burned as biomass increases the health of the woods as it allows for replanting at least one year sooner than if the debris is left behind Slash burning in the field sterilizes the ground for a period of time. This is a very important decision and furthers the mandates of the people as signified by the passing of Initiative 937 on a statewide basis. Jinn McEntire, Port of Port Angeles Commissioner, P.O. Box 1350, Port Angeles, WA urged expeditious approval of the shoreline permit. The proposal thoroughly comports with citizen passed Initiative to reduce the dependence on fossil fuels. The proposal is in concert with both environmental and economic concerns of the people of Clallam County William Atkinson, 1702 West Fourth Street, Port Angeles, WA thanked Nippon for the innovative plans to upgrade the Mill. He questioned traffic impacts to roads serving the site, particularly Marine Drive and noise. Has road maintenance been addressed? He asked that the City delay its decision until the Olympic Region Clean Air Agency has issued its findings on a current study on air quality and climate implications on woody biomass. Diana Somerville, 2399 East Third Avenue, Port Angeles, WA has been a science writer for many years. A lot of information has been presented that is difficult to understand for a lay person. There is a great deal not known about the impact of biomass removal on forests. She expressed concern that emissions will be increased and that the information in the FEIS does not adequately address these matters. She asked that the City delay this action until more Planning Compassion dlmutes September 22, 2010 Page 5 information is received and the debates have taken place to answer some of the questions regarding this type of use. If this is a good project now, it will still be a good project 6 months from now Duff Badgley, 1900 West Nickerson Street, Seattle, WA coordinates a state wide organization opposed to biomass burners throughout the State. He referred to a three page letter submitted as part of the record and referred to a few sections of that letter. He believes the FEIS is flawed in that it fails to discuss impacts to the affected forest environment or mitigation measures. It is essential that these impacts be thoroughly evaluated yet there is no discussion in the FEIS. He believes that the omissions violate SEPA requirements. Seven states have guidelines for biomass removal, but Washington State does not have such guidelines. The FEIS is defective. Janet Marx, 112 Lockerbee Place, felt that even considering this application is premature. The application does not indicate how biomass handling, storage, and operation will affect the shoreline environment. What are the dangers of water pollution? These issues are critical and are not addressed in the FEIS that was used as a basis for this decision. Alice Deery, 1862 Deer Park Road, Port Angeles, WA was concerned about forests. She objected to the proposal and thought that forest waste should remain in the forest. Biomass will quickly exhaust resources and Nippon will put pressure on agencies to allow an increase in logging. She preferred a chipping operation to allow nutrients to remain in the forest. Bob Manette, 220 Strawberry Fields Dr, Sequim, WA 98382 was employed in the renewable energy field for more than 30 years and owned one of the largest renewable energy consulting companies in the U.S. for more than 15 years. This is not a renewable project and should be put on hold. The FEIS did not respond to written comments. The project does not comply with the City's Shoreline Master Program or SEPA. He did not believe the use is located on the shorelines in such a manner that will improve the quality of the environment. There are serious questions about long the term supply of biomass. A real test would be to ask Nippon if it is ready to enter into long term contracts to sell energy to Bonneville Power Administration for renewable energy from biomass. Carol Johnson, 123 Henry Boyd Road, Port Angeles, WA Executive Director of the North Olympic Timber Action Committee NOTAC) supported the project and stated that Washington's forests are managed by a strict Forest and Fish law and habitat conservation plan as well as a majority of ownerships that manage their forest lands under recognized forest certification systems the goal of which is to provide forest products and forests now and for future generations. During the past decade, more attention has been directed to wood waste as a means to provide renewable power NOTAC supports the shoreline permit application for the following reasons: it will reduce dependence on fossil fuels; secure existing jobs; create jobs; replace old technology with upgraded technology; reduce forest fire risk from slash burns; generate taxes, reduce air pollution from slash burns. This type of project is successful in other places in the United States and foreign countries and will be successful in Port Angeles. Gretchen Brewer, Director of PT Ainvatchers, P.O. Box 1653, Port Townsend, 98368 questioned whether electric generation will be a secondary use. In a lot of these facilities, the electrical generation dwarfs the previous use. She spoke of air quality standard levels and emissions of CO2 that contribute to shoreline waters. CO2 contributes to the acidification of the water that affects shellfish. The use is within a floodplain. There are high pressures in the Planning Commission Momtcs September 22, 2010 Page 6 boilers. What's happening with the ash. The thermal effects question was not fully answered in the FEIS. She presented written comments. In response to Commissioner Bruch, she briefly explained the standards of air pollution technology for air quality The Maximum Achievable Control Technology (MACT) is the newest technology Shirley Nixon, P.O. Box 178, Port Angeles, WA lives on the bluff above the Nippon Mill. She represented herself and the Center for Environmental Law and Policy (CELP) in her comments. She referenced all of the comments she provided during the written comment periods that were included in the Draft and Final Environmental Impact Statement documents and shoreline substantial development and conditional use permit applications and the information submitted by CELP for the DEIS and shoreline applications as being pertinent to her testimony Impacts to the entire shoreline should be considered in this application not just the immediate shoreline environment. The staff report indicates that comments to the DEIS were addressed in the FEIS. She believes the FEIS is defective. Comments raised by herself and CELP during the comment period were in toto not addressed in the FEIS. The proposal is too vague for a decision to be made at this juncture. Ron Richards, 124 Township Line Road, Port Angeles, WA is a chemical engineer The project is a fiscally irresponsible project that is not a green energy project. This is a diesel demand energy project. The biomass energy conversion projects have not been fully evaluated. He asked that the proposal be denied or delayed until further information is made available. He questioned the use of so much water during a critical time for the fish. Jeb and Marie Moran, 1710 West Fourth Street, Port Angeles, WA wondered if there would be additional power lines to block view Chair Matthews asked Mr Norlund to address Mrs. Moran's question. Mr Norlund responded that no new power lines would be installed. Only existing power lines will be used to transmit and receive electricity Norma Turner, 39289 Mt. Angeles Road, Port Angeles, WA admittedly did not know much about biomass but felt there had been no real opportunity for the community to be involved in this project. She was concerned about the future of the Waterfront Trail through the Mill site. The majority of physicians in Shelton are opposed to biomass. She was concerned that the utility use is considered as being accessory not primary in this location. Darlene Schanfald, Olympic Environmental Council, P.O. Box 2664, Sequim, WA 98382 does not believe this is green energy She submitted an additional packet to the Commission's review This action is very premature. The public should be able to discuss this more fully She questioned the public notification adequacy and felt that everyone under the plume of the smokestack should have been notified. The plant should not go in under old Environmental Protection Act requirements. Karlene Godwin 117 Tondo Vista, Port Angeles, WA read a letter from another Port Angeles resident (Dorothea Kramer, 743 Finn Hall Road, Port Angeles) against the biomass proposal based on experience in another state with a biomass use. She urged delay until a full and intensive study could be completed of biomass operations throughout the country Why rush this issue? Planning Commission M ,notes September 22, 20/0 Page 7 Pau! McHugh, 300 North Sequin: Avenue, Sequim, WA 98382 supported the proposal. There is nothing in the proposal that will change the long established industrial use of the site in this shoreline location. He encouraged the Planning Commission to approve the shoreline use and if there are further debates about biomass, so be it. But those discussions should not hinder the proposal to proceed as an industrial expansion at this time. Paul Perlwitz, Nippon Paper Industries, submitted and read a letter from Governor Gregoire indicating that the State of Washington has made a commitment to bio energy as a component of a renewable energy future based on sustainable amounts of biomass from our forest lands consisting primarily of residuals of forest operations that have little if any other commercial value. Mr Perlwitz discussed renewable energy projects and what types of projects are considered appropriate. The Maximum Achievable Control Technology (MACT) standards for air quality is a component of the project, and Nippon is confident that the project will comply with those requirements. The Washington State Department of Commerce is assisting with this project. Timber will not be harvested for biomass use. Burning forest residuals is nothing new Improved technology only continues to make that practice more environmentally responsible Gene Peterson, Principal Environmental Planner for CH2M Hill, has been working in the environmental planning field for more than 30 years. He believes this project is very unique and unprecedented in the wins category In response to Commissioner Bruch's question regarding an increased use of water during dry seasons, he stated that a water and resource section was added to the Final Environmental Impact Statement (FEIS pg. 43) due to the number of comments received during the public comment period on the Draft Environmental Impact Statement (DEIS). He provided information on water diversion methods and mitigation and quantity of water information. Water usage is governed and carefully monitored by the Department of Ecology The discharge of water from the Mill site is regulated by a National Pollution Discharge Elimination System (NPDES) permit that has a number of water quality parameters prior to discharge. One of those parameters is temperature. Another issue discussed during the evening's public hearing was traffic. Appendix A of the FEIS is a traffic study required by the City The City required Nippon to conduct traffic counts because the City did not have actual traffic counts on intersections that would be affected by an increase in traffic from the proposed use. The increases in traffic are well within current standards established by the City Impacts of truck trips on the roads wear and tear is a legitimate concern. The proposal would add about 18 truck trips per day along the Truck Route and overall 20 trips per day to the Mill site. The increase is approximately 6% over current truck traffic volumes. This project location is within the shoreline jurisdiction but is essentially an upland project. The impacts of the project's operation are limited to the upland footprint within the shoreline area. The prevailing winds in this area are west /northwest away from land. Gary Holmquist, Nippon Industries responded to a comment raised during the public hearing by stating that Nippon intends to enter into long term (15 20 year) contracts with the Department of Energy for the sale of energy In the mid 1990's, approximately 200,000 barrels of oil were burned a year, 19,000 barrels in 2008, and 10,000 barrels in 2010 representing an approximately 88% reduction in fossil fuels and an approximate 75% reduction in greenhouse gases during that period of time. This was accomplished by efficiencies in combustion of the existing biomass boiler, by improving the steam utilization within the Mill, and by recovery of waste energy from existing biomass boilers. Planning Camnnss,on AI nstes September 22. 2010 Page 8 Harold Norlund, Nippon Industries closed the presentation by noting that this is the first of many permits needed to conduct this project. This is an important project for the community and for the Mill and he encouraged approval of the permit. There being no further testimony, Chair Matthews closed the public hearing and read the qualifying information for those who intend to provide testimony Commissioner Bruch suggested that, given the amount of information presented during the public hearing and late comments received that the matter should be tabled Chair Matthews preferred that the matter proceed. Commissioner Bruch said she needed time to digest the information and did not want to continue action until the next meeting and asked that the matter be tabled. Commissioner Powers agreed that a lot of information had been presented but given that the Commission's scope is quite narrow, she believed that all of the information needed for the Commission to make a decision on the shoreline permit had been presented and the testimony did not add anything new that needed further review Commissioner Powers moved to approve Shoreline Substantial Development SMA 10 -01 subject to 6 findings, 17 findings, and 9 conclusions as follows: Conditions: 1 The applicant will develop and implement an Inadvertent Discovery and Archaeological Monitoring Plan (1DAMP) that shall be approved by the City The plan will include protocols to ensure the proper treatment of any archaeological materials or human remains that may be encountered during the project construction. The plan will require that a qualified professional archaeologist be on site during any ground disturbing activities and will outline additional protocols such as work stoppages, notifications, and information recording processes should archaeological materials or human remains be observed during the construction process. The plan should additionally include provisions for a pre- construction archaeological briefing for construction personnel. 2. The applicant is responsible for obtaining all necessary permits from local, regional, state, and federal agencies. Verification of permit issuance shall be provided to the City prior to commencement of any site alteration or construction relative to the proposed project. 3 The applicant shall ensure that the Waterfront Trail is kept open to the public throughout the demolition/construction period of the project to the greatest extent possible, considering public safety issues. Upon completion of the project, the Waterfront Trail pavement markings shall be repainted. If the main office building is demolished or removed during the project, a distinct separation between the Trail and the industrial area that was once the main office building will be developed through collaboration with City staff that may include a landscape barrier and informational signage created between the Trail and plant activity 4 Completed structures will be painted in a manner to blend with surrounding buildings and will be finished with non reflective and/or non distracting colors similar to that shown in the application. 5 Display and other exterior lighting shall be designed, shielded, and operated to minimize glare and avoid illuminating nearby properties, and to prevent hazards for public traffic. Planning Commission Minutes September 22, 2010 Page 9 6. Fuels for the cogeneration facility shall be as permitted by the Olympic Region Clean Air Authority Findings: Based on the application information submitted by Nippon Paper Industries USA Co., Ltd., and the Final EIS issued on September 3, 2010, information provided in the Staff Report for SMA 10 -01 dated September 22, 2010, including all of its attachments, comments and testimony presented during the September 22, 2010, public hearing. and the Planning Commission's discussion and deliberation at that hearing, the City of Port Angeles Planning Commission hereby finds that: 1 An application for a shoreline substantial development permit was submitted by Nippon Paper Industries USA Co., Ltd, on March 11, 2010, for the construction of a biomass fueled cogeneration facility The application indicates that the work will occur within the Urban Harbor Shoreline jurisdiction in the Port Angeles Harbor and Strait of Juan de Fuca. The cogeneration development will include the demolition of existing structures. 2. A Draft EIS (DEIS) for the proposal was prepared and issued for public comment by the City of Port Angeles on July 6, 2010 Written comments on the DEIS were accepted until August 5, 2010 A Final Environmental Impact Statement was issued per WAC 197 -11 by the City of Port Angeles SEPA Responsible Official for the proposal on September 3, 2010 All procedures and requirements of the State Environmental Policy Act have been satisfied. The FEIS adequately addresses environmental issues relative to the proposed project. 3 The Port Angeles Shoreline Master Program, Harbor Resource Management Plan, Comprehensive Plan, Zoning Ordinance and critical areas ordinances have been reviewed with respect to this application. Those sections found to be most pertinent to the proposal are attached to this staff report as Attachment `B" 4 The site is designated Industrial in the City's Comprehensive Plan, Industrial Heavy (IH) in the City's Zoning Ordinance, and Urban- Harbor in the City's Shoreline Master Program. 5 The primary use of the proposed facility is the production of steam for the Mill's paper making operation. The secondary use is to generate electricity using surplus steam from the process. The proposed facility is not a primary utility but is considered an accessory utility use. Chapter 5 of the City's Shoreline Master Program indicates that accessory utilities are permitted uses in the Urban Harbor shoreline designation. 6 The Nippon Mill currently uses steam produced by one large biomass boiler #8), two smaller, oil -fired boilers, and an electric boiler to produce steam needed to dry the paper and operate the other processes in the Mill. The proposed new boiler would be a 225,000- pound per -hour (lb/hr) steam generating unit that supplies high pressure steam to a 20 -MW turbine generator. Extracted steam from the turbine generator is intended to be used for the Mill's steam needs, while excess electrical power produced by the turbine generator can be sold to the regional utility grid. Nippon proposes to sell up to 20 MW of the power generated from this project to the grid as renewable energy and to continue to purchase its current power needs through the City of Port Angeles. 7 The following adopted City policies are most relevant to the proposed project: a. Shoreline Master Program's Urban- Harbor designation and Chapter 3, A 1, 6, 7, 9, B -1 and 4, D -3 and 10; E -2; and G -2, Chapter 4, Policies B -1 and 2, D -1, K -1 and 2, N -1 and 2, and 0 -2, Chapter 5, Policies D -1, 5 and 6, and Chapter 6, Policies E -2, and all associated regulations; b. Comprehensive Plan Land Use Element Goal A, Policy A -2, Goal I-I, Policy H -3 and 4, Conservation Element Goal B, Policies B -11 and 20, Goal D and Policies D -5 and 8, and Economic Development Element Goal A and Policies A -3 and 4 8. The City's Waterfront Trail runs along the length of the project. The Waterfront trail will remain in active use during and after construction of the proposed facility As described in the Recreation section of the FEIS, the public enjoyment of the Waterfront Trail will not be significantly affected by the proposed project on a long -term basis and mitigation measures are proposed for the temporary affects associated with construction. 9 If the main office structure is demolished, proposed structures will be required to observe a minimum setback of 30 feet from the Marine Drive right -of -way The existing distance between the Waterfront Trail and the main office structure is approximately 6 feet 6 inches. Planning Co,nm,ssmn Minutes September 22, 2010 Page 10 10 If the main office structure is demolished, leaving additional room for Waterfront Trail improvement, the property owner will meet with the City to design a practical method of creating some distinct separation between the Trail and the industrial area that was once the main office building that will include landscaping and may include informational signage. 11 Air quality impacts are regulated by the Olympic Region Clean Air Agency (ORCAA), which is the regional government agency charged with regulatory and enforcement authority for air quality issues in Clallam County Potential air quality impacts associated with the completed project will be mitigated through the new source review (NSR) process which Nippon initiated by submission of a Notice of Construction (NOC) for the proposed project on July 7, 2010 12. The FEIS indicates that the completed project will result in a number of beneficial effects to the environment during operation including air quality improvements (including significant reductions in certain air pollutants, such as carbon monoxide, sulfur dioxide, and particulate matter), reduction in greenhouse gas emissions, energy, noise reductions, dust control, and other environmental benefits described in the Final EIS 13 The new facility will increase the need for fuel by approximately 20 truck loads per day A traffic study conducted as part of the Environmental Impact Statement indicates that the level of service at major intersections in the city will not be reduced below the acceptable level as stated in the Comprehensive Plan. 14 Washington State Department of Natural Resources supports the use of forest biomass as a fuel to produce energy to reduce air pollutants over the use of other fuel sources or the combustion of forest slash on site. 15 The existing Nippon Mill property is located within the 100 -year floodplain as determined by the Federal Emergency Management Agency (FEMA) and is subject to Planning Comm,ss,on b/mules September 22, 2010 Page 11 coastal flooding. Based on the 1990 flood insurance rate map (FIRM), three flood zones exist in the proposed project area (Zone C, Zone A6 [elevation (el) 7], and Zone V6 [el 13 and el 14]). 16. The Washington State Legislature passed HB 2165 in 2009 authorizing the Washington State Department of Natural Resources to implement forest biomass -to- energy pilot projects. The Washington State Department of Natural Resources' website (www.dnr.wa.gov) indicates that Washington's forests have an abundant, renewable supply of woody biomass and that using some of this material for electrical power generation will play an important role in Washington's emerging green economy and will help to address climate change. 17 Notice of the shoreline substantial development permit application was published in the Peninsula Daily News on August 15, 2010 Notice was mailed to property owners within 300 feet of the project site on August 13, 2010 The site was posted for land use action on August 12, 2010 Written comment received by close of the written public comment period that ended on September 6, 2010, were included in the staff report for SMA 10 -02. Conclusions Based on all of the information cited above, and the above listed findings and conditions, the City of Port Angeles Planning Commission hereby concludes that: A. As conditioned, the proposed project is consistent with the policies, provisions, and procedures of the State Shoreline Management Act (Chapter 90.58 RCW) and its implementing regulations (Chapters 173 -22 and 27 WAC) as promulgated in the City's Shoreline Master Program (Chapter 15 08 PAMC). B The proposed project, as conditioned, is consistent with the City's Shoreline Master Program, Harbor Resource Management Plan, Comprehensive Plan, zoning ordinance and is not contrary to the public use and interest. C. The proposed project will not interfere with public use of lands or waters. D Air quality impacts associated with the proposed project will be addressed by the Olympic Region Clean Air Agency (ORCAA). E. The new facility will not create significant adverse impacts to traffic circulation. F The final EIS indicates that the project will not result in adverse impacts to the environment, including the shoreline environment. Mitigation measures have been identified to address some temporary impacts. Once complete, the project will result in a number of beneficial effects to the environment during operation, without long -term mitigation required. G. As conditioned, construction impacts will be temporary Mitigation measures have been identified to address construction impacts relative to the public's use of the area. If the main office structure is demolished or removed, a practical method will be used to create a distinct separation between the Trail and new structures that may include signage. H. The proposal is consistent with the requirements of Section 15 12.240 PAMC, the City's Floodplain Ordinance as the Shoreline Substantial Development acts as the necessary floodplain permit. Planning Conamsson Minutes September 2Z, 2010 Page 12 I. The FEIS was prepared in accordance with WAC 197 -11 and adequately and appropriately addresses environmental issues relative to the proposed project. The motion was seconded by Commissioner Caudill. Commissioner Bruch suggested amending Condition 5 to address protection of the night sky from light encroachment. Following discussion, it was determined that Condition 5 adequately addressed light encroachment from the site. Commissioner Bruch questioned the validity of Finding F, regarding the FEIS, based on testimony from the public. She was uncertain how to deal with the matter Director West clarified that staff has followed all of the dictates of the WACs relative to the EIS development through the SEPA process. A number of opportunities have existed for public comment, and comments submitted were addressed in the FEIS relative to the proposal. Staff is confident that the FEIS is complete and the process is correct. In response to Commissioner Bruch, Director West noted that the Planning Commission's decision is final unless appealed to the City Council. On call for the question, the motion passed 5 1 with Commissioner Bruch voting in the negative. The Commission took a 10 minute break at 8.30 p.m. The meeting reconvened at 8.40 p.m. CONDITIONAL USE PERMIT CUP 10 -04 NIPPON PAPER INDUSTRIES USA CO., LTD 1902 Marine Drive. An application to allow specific structures to exceed the 75 -foot height maximum in association with redevelopment of an industrial site in the IH Industrial Heavy zone (See SMA 10 -01). Commissioner Bruch stated that she works for the Lower Elwha Klallam Tribe (LEKT). She did not realize during the previous proceeding that the LEKT owns a significant amount of property in the area. She apologized for that oversight. Associate Planner Scott Johns presented the Department Report and made corrections to the Report with regard to the elimination of Condition 6 as being redundant. Mr Johns noted that the only item under consideration was the height of several structures within the Mill site relative to the operation of a biomass cogeneration use considered under SMA 10 -01 Chair Matthews read the qualifying questions regarding the Appearance of Fairness and Conflict of Interest Doctrines to the Commissioners. With the exception of Commissioner Bruch, all Commissioners responded that they do not have any issues to make public and could act fairly on the matter at hand Commissioner Bruch declared that she is an employee of the Lower Elwha Klallaln Tribe but does not know her employer's position on the application and could act fairly on the matter Chair Matthews asked audience members if they have grounds to disqualify any Commission member from acting on the matter No one responded. Chair Matthews opened the public hearing and read the qualifying information for those who intend to provide testimony Harold Norlund, Nippon Paper Industries, 1902 Marine Drive supported the conditional use permit (CUP) and asked that opening comments presented for Shoreline Substantial Development Permit SMA 10 -01 be incorporated into the record for the CUP He believed that the increased building heights are in concert in bulk and scale with other buildings on the site. Planning Commission Minutes September 22, 2010 Page 13 In response to Commissioner Powers, Gary Holmquist, Nippon Paper Industries responded that a determination will be made within the next two weeks as to specific design for new structures; however, the taller profile is the preferred option. It will take awhile longer to determine whether the main office building will be removed or remain. Equipment sizing and site use is all dependent on footprint impacts. The preference is not to remove the office building as it will provide a buffer between the Waterfront Trail and Mill operations and will increase safety measures on site and to pedestrians. The preferred boiler stack is 125 feet tall, the electro stat precipitator is 90 feet tall, the boiler building is 110 feet tall, and the biomass storage structure is 115 feet tall. In response to Commissioner Bruch, Mr Norlund said they will take care to direct lighting away from the night sky and neighboring uses but need to keep Mill safety foremost in development. Darlene Schanfald, Olympic Environmental Council, P.O. Box 2664, Sequim, WA 98382 was unhappy with the decision of the Planning Commission not to table the matters at hand in order to read the many pages of information carefully before acting on the applications. (She was referring to a good deal of written material that was distributed during the public hearing for SMA 10 -01). She hoped the courts would find the actions illegal. Gretchen Brewer, PT AirWatchers. P.O. Box 1633, Port Townsend, WA wished the Commission appeared to be more interested in the facts and took exception that the applicant's closing statements were not able to be rebutted by opponents. She objected that her information was not submitted to the Commissioners for review Closing statements made on the previous application extended beyond rebuttal and she believed that the applicant was given extensive opportunity to rebut but not objectors. An increase in height is death by degrees that will add to overall pollution. Director West noted that Ms. Brewer's written information delivered prior to the end of the written comment period had been delivered to the Planning Commission and were incorporated as part of the written staff report. Shirley Nixon, P.O. Box 178, Port Angeles, WA lives on West Fifth Street above the Mill. She submitted written comments that were included in the staff report. If we truly wish to improve the quality of life for all citizens and develop a better vision for Port Angeles and its waterfront, then the Nippon project should be denied. Steam is the first thing that visitors see when they come to Port Angeles. The Mill site and steam are a distinguishing feature of our beautiful waterfront. Conditional use permits for more industrial development give a message that Port Angeles is a mill town and it's okay to dominate the waterfront with very tall industrial structures that emit smoke and steam and impact views for everyone. Objections were not adequately addressed in the FEIS. She disputed statements in the staff report that identified the area as being historically industrial. All of the uses in the area are impacted by the height of the structures. The higher the stack, the further the emissions travel and are seen. There are no mitigating conditions in the conditional use permit other than paint and light. There is no mention of effort to reduce the amount of steam. She believes the use is contrary to Comprehensive Plan goals to conserve water and the region's natural resources. She appreciated the consultant's explanation of water resources during testimony of SMA 10 -01 but believes that Nippon intends to use more water to produce steam for this project and that cannot be separated from the CUP proposal. Taller buildings will result in more impact to the Waterfront Trail and nearby recreational uses. She believes the use is a primary utility not a secondary use. It seems that Nippon intends to primarily sell electricity to the Grid. An electrical generating facility requires different Planning Conun,ssmn Minutes September 22, 20/0 Page /4 permitting. The overheight structures are part of that electrical facility Do we want to site an electrical facility on the Waterfront? She expressed disappointment that the project is apparently on such a fast track. Jon Jacobs, 163 Parkway Heights Drive, Port Angeles, WA grew up living above the Mill. He applauded Nippon at the manner in which they have cleaned up the facility He believes that the proposal will significantly improve the appearance on the Waterfront. Speaking from 30 years of experience in the Mill industry, the proposal is superior and is a very sound project. Paul Perlwitz, Nippon Paper wished to respond that this is not a primary utility The Olympic Region Clean Air Authority (ORCAA) agrees with that assessment. Building height is dictated by many issues. The stack heights are dictated by those who are primarily designing structures to meet air pollution requirements and lessen site footprint. Can steam be reduced? Yes; however, there is a give and take with air pollution design. The plume may have to be visible but the intent was to go with a dry stack that would produce no steam that may not accomplish the air pollution reduction required by ORCAA standards. There being no further questions, Chair Matthews closed the public hearing. Associate Planner Johns noted a correction to Finding #11 regarding the application publication date, and noted correction to building heights that were noted in Mr Perlwitz's testimony Commissioner Bruch will abstain from the vote since she voted against the Shoreline Permit. She has mixed feelings about the project but feels it is a great project. She is concerned about protection of the forest industry, forests, water, and air. Following discussion and review of the proposed conditions, Commissioner Caudill moved to approve Conditional Use Permit 10 -04 with the following conditions, and citing the following findings and conclusions: Conditions: 1 The applicant will develop and implement an Inadvertent Discovery and Archaeological Monitoring Plan (IDAMP) that shall be approved by the City The plan will include protocols to ensure the proper treatment of any archaeological materials or human remains that may be encountered during the project construction. The plan will require that a qualified professional archaeologist be on site during any ground disturbing activities and will outline additional protocols such as work stoppages, notifications, and information recording processes should archaeological materials or human remains be observed during the construction process. The plan should additionally include provisions for a pre construction archaeological briefing for construction personnel. 2. The applicant is responsible for obtaining all necessary permits from local, regional, state, and federal agencies. Verification of permit issuance shall be provided to the City prior to commencement of any site alteration or construction relative to the proposed project. 3 The applicant shall ensure that the Waterfront Trail is kept open to the public throughout the demolition/construction period of the project to the greatest extent possible, considering public safety issues. Upon completion of the project, the Waterfront Trail pavement markings shall be repainted. If the main office building is demolished or removed during the project, a distinct separation between the Trail and the industrial area that was once the main office building will be developed through collaboration with City Planning Commission ALnutes September 22, 2010 Page 15 staff that may include a landscape barrier and informational signage created between the Trail and plant activity 4 Completed structures will be painted in a manner to blend with surrounding buildings and will be finished with non reflective and /or non distracting colors similar to that shown in the application. 5 Display and other exterior lighting shall be designed, shielded, and operated to minimize glare and avoid illuminating nearby properties, and to prevent hazards for public traffic. No lighting, other than those required for safety marking, navigational aids, aircraft, or other required safety warnings shall be installed on any over height structure above the allowed 75 -foot height. Display and other exterior lighting shall be designed, shielded, and operated to minimize glare and avoid illuminating nearby properties, and to prevent hazards for public traffic, and not in conflict with state and local regulations. 6. Building heights shall not exceed. boiler stack 125 feet tall, the electro stat precipitator 90 feet tall, the boiler building 110 feet tall, and the biomass storage structure 115 feet tall. Findings: Based on the application information submitted by Nippon Paper Industries USA Co., Ltd., and the Final EIS issued on September 3, 2010, relative to files SMA 10 -01 and CUP 10- 04 dated September 22, 2010, including all attachments, comments and testimony presented during the September 22, 2010, public hearing, and the Planning Commission's discussion and deliberation at that hearing, the City of Port Angeles Planning Commission hereby finds that: 1 Nippon Paper Industries USA Co., Ltd submitted Conditional Use Permit application CUP 10 -04 to allow an increase in height of 4 structures to exceed the maximum 75 feet allowed in the Industrial Heavy (IH) zone on August 12, 2010. 2. The subject site is the 71 acre parcel identified as parcel number 063000014600 Records of Clallam County, Washington, generally described as 1902 Marine Drive. The site is located at the base of the land formation entitled "Ediz Hook." The historically industrial property is developed as a paper mill, which has operated on the site since the 1920s. 3 Several existing structures currently exceed the 75 -foot height limit. Development in the area in the shoreline area is primarily industrial in nature with areas at the top of the marine bluff being residential. The site is situated at the base of Ediz Hook bordering both the Strait of Juan de Fuca and the Port Angeles Harbor 4 The City of Port Angeles Comprehensive Plan Land Use Map designates the site as Industrial (I). Adjacent land areas are designated Open Space (OS), and adjacent shorelines include the Port Angeles Harbor, and Strait of Juan de Fuca and associated wetland areas. The site is located in the City's Harbor Planning Area 5 The site is zoned Industrial Heavy (II -I). Development in the area is industrial with some public access facilities, including the Waterfront Trail. 6 Section 17.34.0010 PAMC (IH Industrial Heavy Purpose) reads "This is the least restrictive industrial zone intended to be the area that heavy industry could develop causing the least impact on other land uses. Significant adverse impacts can be expected from permitted industrial uses that involve hazardous materials, noise, air and water Planning Commission Minutes September 22. 2010 Page 16 pollution. shift work around the clock, entertainment businesses with adult -only activities, and outside storage yards and manufacturing activities. This zone provides the basic urban land use pattern for heavy industrial uses with direct access to major transportation facilities, design standards for greater truck traffic, and buffers for non industrial uses unless deemed impractical." 7 Section 17.34 050(C) PAMC (IH Area and Dimensional Requirements) allows building height in excess of 75 feet by conditional use permit. 8. Per 17.96.050 PAMC provides that the Planning Commission shall consider applications for conditional use permit uses as specified in the applicable Chapter of the Zoning Regulations. The Planning Commission may grant said permits that are consistent and compatible with the purpose of the zone in which the use is located, consistent with the Comprehensive Plan, and not contrary to the public use and interest. In each application, the Planning Commission may impose whatever restrictions or conditions are considered essential to protect the public health, safety, welfare, and to prevent depreciation of neighboring property Established City policy requires that uses be evaluated to determine if the characteristics of the intended use as related to the specific proposed site would defeat the purpose of the City's Zoning Regulations by introducing incompatible, detrimental, or hazardous conditions. The Planning Commission may refuse to issue a conditional use permit if the characteristics of the intended use would defeat the purpose of the City's zoning regulations. A development that is approved through the conditional use permit process must remain in continual compliance with specific conditions of approval or the permit may be revoked. 9 The proposal was reviewed against the City's Comprehensive Plan for consistency with the following provisions that were found to be most relevant to the proposal. Growth Management Element Goal A. Policy 1 e; Land Use Element Land Use Map, Goals, Policies, and Objectives Goal A. Policy 2, Industrial Goals, Policies, and Objectives, Goal G; Goal H, Policy 4, Utilities And Public Services Element Goal D, Objective 2, Conservation Element Goal B Policy 17, Economic Development Element Goal A. Policy 3, Goal A. Policy 4 10. Reviewing City Departmental comments were considered in the review of this application as well as comments received during the written public comment period and conclusions made in the Final Environmental Impact Statement prepared for the proposal. 11 Notification of the conditional use permit application was placed in the Peninsula Daily News on August 15, 2010, mailed to property owners within 300 feet of the subject property on August 13, 2010, and posted on the site on August 12, 2010 12. A Final Environmental Impact Statement (FEIS) was issued for this proposed action on September 3, 2010 The Final EIS concludes that the proposal will not significantly alter the visual character of the site, change the visual quality experienced by those looking at the site, or change the experience of users of the Waterfront Trail. Planning Commission Al September 22, 2010 Page 17 13 Application materials identify that 4 proposed structures may exceed the 75 -foot height limit. The structures for which a conditional use permit for height is requested include the boiler building, which will house the new boiler (110 feet); the biomass storage building/silo (108 feet) with a conveyor assembly on the top bringing the height to 115 feet; an electrostatic precipitator (air pollution control equipment) (90 feet); and a boiler stack (125 feet). Proposals solicited for boilers that met the required energy needs of this project to ensure complete combustion were all within the same approximate height that is being requested,100 to 120 feet. Proposed silo height is necessary to meet fuel storage requirements, to minimize footprint that will also facilitate safer traffic movement on the site. Air pollution equipment (ESP) over 75 feet height is to meet air permitting requirements, and a proposed stack height over 75 feet is to meet air permitting /emission requirements. 14 The Planning Commission opened a public hearing on the proposal at the September 22, 2010 regular meeting. 15 The conditions imposed as part of this permit are essential to protect the public health, safety, and welfare and will prevent the depreciation of neighboring property 16. The proposal, as conditioned, will not defeat the purposes of the City's IH zoning regulations, and it will not introduce incompatible, detrimental, or hazardous conditions. Information contained in the Final EIS for the project indicates that the resulting operation will reduce environmental impacts from what now exists on site. Conclusions: Based on the information provided in the Department of Community Development Staff Report for CUP 10 -04 dated September 22, 2010, including all of the information in the public record file, comments, and testimony presented during the public hearing, the Planning Commission's discussion and deliberation and the above listed conditions of approval and listed findings, the City of Port Angeles Planning Commission hereby concludes that: 1 As conditioned, the proposal is consistent with the City's Comprehensive Plan, specifically with. Growth Management Element Goal A. Policy 1 e; Land Use Element Land Use Map, Goals, Policies, and Objectives Goal A. Policy 2, Industrial Goals, Policies, and Objectives, Goal G; Goal H, Policy 4, Utilities And Public Services Element Goal D, Objective 2; Conservation Element Goal B Policy 17, Economic Development Element Goal A. Policy 3, Goal A. Policy 4 2. The proposed use complies with Section 17.34.050(C) (IH Zone) of the Port Angeles Municipal Code and, as conditioned, the proposal is consistent with development standards for allowing structures to exceed 75 feet in height in the IH Zone. 3 The proposed use is consistent and compatible with the purpose of the IH zone, and it is not contrary to the public use and interest. 4 The proposal is consistent with requirements for approval of a conditional use permit as specified in PAMC 17.96.050 Planning Cmmnuss'on Minutes September 22 2010 Page 18 5 The completed project will result in a number of beneficial effects to the environment during operation. Benefits associated with the project include air quality improvements and significant reductions in certain air pollutants, reduction in greenhouse gas emissions, long -term provision of renewable energy, noise reductions, dust control, job retention and creation, and other benefits described in the FEIS (See Final EIS, pgs. 4 -5 The increase in height as proposed is necessary to meet emission and operational permitting requirements. The motion was seconded by Commissioner Boyle and passed 5 -1 with Commissioner Bruch abstaining. APPROVAL OF MINUTES Commissioner Sue moved to approve the Planning Commission's regular meeting minutes of September 8, 2010. The motion was seconded by Commissioner Bruch and passed 5 1 with Commissioner Caudill abstaining due to absence at that meeting. COMMUNICATIONS FROM THE PUBLIC None STAFF REPORTS Director West informed the Commissioners that the Waterfront Transportation Improvement Plan consultants will be in the city during the following next week conducting interviews with stakeholders, and speaking with interested citizens and community groups. He outlined the neighborhood outreach plan schedule and open house procedures and encouraged Commissioners to participate freely He noted that the City Council concurred with the Planning Commission's recommendation to give preliminary approval for the Pendley Estates Subdivision at its September 21 meeting. Planning Manager Roberds noted that she received word that the first neighborhood meeting for Peninsula Community Mental Health would be held on October 12, in compliance with the PCMH CUP approval given on September 8. REPORTS OF COMMISSION MEMBERS None Planning Comnnsstmr Minutes September 22, 20/0 Page 19 ADJOURNMENT The meeting adjourned at 9 p.m. Sue Roberd ecretary t John Matthews Chair PREPARED BY S. Roberds