“I have some bad news for you.” That’s what City of Grand Marais Electric Superintendent Mike Taylor said to the Public Utilities Commission (PUC) on March 21. The news? Coming into compliance with emission regulations issued in 2010 by the U.S. Environmental Protection Agency (EPA) will be costly, and it must be done by May 2013. “Don’t shoot the messenger!” Taylor said.
The EPA rule requires power-generating stations that use diesel-powered stationary reciprocating internal combustion engines (“RICE”) to install equipment that will reduce toxic air pollutants such as formaldehyde and methanol. The rule will also require ongoing emissions testing.
A March 15 memo from Taylor to the PUC states, “Grand Marais has a little over a year to complete this project. Contractor’s schedules may be pretty busy and it’s important that we get on someone’s list. After May 2013 the power plants that haven’t complied will be fined each day by the EPA when [the] plant is running.”
The cost to install the required emission-reducing equipment will be $250,000 to $500,000, based on quotes from two companies who can provide the necessary equipment. Taylor said the higher estimate came from the company that came to Grand Marais and inspected the power facility in person. That company submitted two options, one that was under $250,000 but could result in particulate matter and debris interfering with the operation of the equipment. The more expensive option would involve larger units that would require roof work.
Because of the disparity in the quotes, Taylor recommended that the PUC hire United Services Group to help prepare bids.
The good news is this, said City Administrator Mike Roth: “We do have the money.”
In the absence of Chair Karl Hansen, the PUC board – Adam Harju and Tim Kennedy – voted to hire United Services Group of Elk River to prepare a bid package for $1,425.
According to information from the PUC, the EPA estimates that the new regulations will affect more than 900,000 electrical-generating engines across the nation. The EPA expects air toxins to decrease by about 1,000 tons per year, fine particulates by 2,800 tons per year, carbon monoxide by 14,000 tons per year, and volatile organic compounds by 27,000 per year.
Health benefits are expected be a reduction of up to 270 premature deaths, 72 cases of chronic bronchitis, 170 nonfatal heart attacks, 160 hospital and emergency room visits, 180 cases of acute bronchitis, 15,000 days of missed work, 1,900 cases of aggravated asthma, and 87,000 acute respiratory symptoms.
Based on the value of the dollar in 2008, the cost to implement these regulations is expected to be $373 million. The benefits are expected to range from $940 million to $2.3 billion.
Broadband pole attachments
City Administrator Mike Roth and Arrowhead Electric Cooperative Director of Member Services and Broadband Joe Buttweiler have been working together on an agreement regarding Arrowhead attaching fiber optic lines to city lines as it works its way through the county. A grant and local sales tax revenue are funding a broadband build-out across the county.
Some of the city’s old poles will be replaced soon in preparation for the new infrastructure. Roth said this kind of system maintenance is in the city’s budget and includes hiring outside help to do it.
Sewer backup
Water/Wastewater Superintendent Tom Nelson reported that his staff recently had to dig under the avenue across from Dairy Queen in order to clear a sewer line. An empty pocket underneath Highway 61 had caused the three-foot-long clay pipes to bow. No sign of breakage was found, however.
Nelson figured the problem happened slowly over the course of the winter and could be prevented by occasionally flushing. If that section of the highway were redone, the pipes underneath could be resupported to prevent this from happening again.
Water use staying level
The people of Grand Marais are pretty good at conserving water. On February 22, 2012, City Water/Sewer Superintendent Tom Nelson told the Public Utilities Commission (PUC) board that water use in Grand Marais has been flat for the last 20 years. He said he thinks people have conserved water on their own as costs have gone up.
Nelson said he talked to a Minnesota Department of Natural Resources official about a proposed conservation rate structure rule that would call for charging more per gallon for higher water use. This is the opposite of the common practice of charging lower prices for consumer goods purchased in larger quantities. The official told Nelson that the proposed rule has no enforcement attached to it, however, and he was skeptical about the likelihood that the law would be passed.
Right now, water in Grand Marais is charged at a flat rate per gallon. Nelson said a suggestion has been made for the new rule to call for charging 25 percent more for the next tier of use above the level of average household user.
Nelson said he believes such a rule would be hardest on Grand Marais’ commercial users. City Administrator Mike Roth said the city has the right to bill commercial users at a different rate. He added that the state is considering making this a “recommendation” rather than a rule.
Nelson said they could also have different rates for winter and summer. One of the goals of the proposed law would be to reduce lawn watering.
This would be a critical issue for Grand Marais, said Administrator Roth, if it didn’t have Lake Superior as its water source.
Biomass
Biomass feasibility study coordinator Gary Atwood and Cook County Local Energy Project founder George Wilkes talked with the board about the proposed biomass district heating plant. The PUC has expressed openness to managing such a plant if the city owned it.
Administrator Roth said numerous considerations would need to be in place for the proposed system to be successful: smoke, noise, traffic, and location – all political issues – as well as economics.
“If it doesn’t make economic sense,” said board member and city councilor Tim Kennedy, “There’s no way we can do it.”
Roth said it might be helpful if they could see some examples of municipalities building infrastructure like this.
“We know that there’s a lot of questions,” Kennedy said. “If we can’t sell it on the economics of it, then we’ll have a real problem getting people to convert because there is a cost associated with it.” The work done so far indicates that the most cost-effective district biomass heating system would include public and commercial buildings but not individual homes because of the cost of the piping.
“This has been done successfully around the world,” said PUC board member Adam Harju.
The PUC board and city councilors will meet at 2 p.m. April 11 to talk about the study with the scientists and researchers who have been involved in the project.
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