Permit discussion begins in Austin

June 2, 2010

Emily Peter
Abilene Reporter-News

The hearing for Tenaska’s air quality permit application began in Austin on Wednesday with a Tenaska official touting international interest in the "revolutionary" carbon-capturing technology the coal-fired power plant is proposing to use.

Opponents of the power plant questioned Tenaska officials about the uncertain funding sources some fear could fall through and lead the plant to emit more carbon into the Sweetwater skies than expected.

Those parties will continue hashing out issues surrounding the $3.5 billion Trailblazer Energy Center through early next week at the State Office of Administrative Hearings.

Two administrative law judges are gathering the testimonies for the Texas Commission on Environmental Quality, which will consider approving the permits Tenaska needs to start construction. The Sierra Club, which claims TCEQ standards are slack, reports the agency has approved 97 percent of its permits since 1971.

Opposing the plant are lawyers from the Sierra Club and the Multi-County Coalition, which represents a group of angry citizens who live near the proposed plant. (One of the state’s leading environmental organizations previously agreed not to oppose the plant when Tenaska agreed to use technology that would limit emissions and water usage.)

Greg Kunkel, Tenaska vice president of environmental affairs, was the first witness brought by Tenaska.

Kunkel touted the international interest in this plant’s plan to capture 85 to 90 percent of its carbon byproduct to sell to Permian Basin companies for use in oil drilling.

He said Tenaska’s purpose for building the nation’s first carbon-capture plant of this size and nature is "to prepare ourselves for a regulatory future that limits our greenhouse gases and emissions for the industry. Through this project, we learn the engineering that’s needed to solve these things."

Kunkel said that selling the carbon dioxide could fund about half the plant’s operations but that the plant’s future is dependent on other funding sources, such as federal carbon capture incentives "still floating around in the Legislature."

"We would not move forward until we have all the necessary (funds)," Kunkel said, noting he’s confident various agencies will soon solidify incentive plans for carbon control.

MCC attorney Wendi Hammond noted the proposed TCEQ permit doesn’t require Tenaska to capture any carbon. If those funding sources fall through, she fears nothing stops Tenaska from building "just another coal plant" or selling the permit to someone else who won’t capture carbon.

Kunkel said he didn’t think the company had considered selling the permit.

Kunkel also said some of the emission levels proposed in this air quality permit are higher than standards required for tax credits with the Texas Clean Energy Project recently passed by the state Legislature.

He said Tenaska could work to lower those emissions to qualify.

Hammond also asked Kunkel about funding falling within the timeline, noting construction must start 18 months after TCEQ approves a permit.

"Time is the enemy of all projects," Kunkel acknowledged. "Once we get the air permit, we’ll work very hard to put all the other financing pieces together. That’s always an issue for any project."

Christina Mann, an attorney with the Sierra Club, questioned a Tenaska environmental consultant about chemical emission limits and noted TCEQ standards aren’t always tough enough. She pointed out instances where Tenaska has recently proposed lower emission limits in some of its facilities in other states.

The consultant, Paul Greywall of Trinity Consultants, agreed, but noted other chemical limits are better than state standards.

Tenaska opposition groups have asked to hold testimony from their expert witnesses until Monday. They are expected to present testimony about an alternative type of carbon-busting technology and global warming, which has not previously been allowed in similar hearings.

A handful of Nolan County residents are expected to attend the hearing each day.

"All I’m hearing are a bunch of ‘ifs’ coming out of their mouths," said Treet Broadwell, who has a farm near the proposed plant site. "So much of it still seems to be unknown."

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