Governor says it is all about whether issuing air permit is the ‘right policy’

by Richard Lamb, Advance Editor

So what is holding up the decision on Wolverine?s major permit, the air quality or permit to install? Or is there a holdup at all? What does the governor think about the power plant proposal?

Since the promise made by the Department of Environmental Quality (DEQ) to make a decision by the end of 2009 has come and gone, another power plant has earned its permit, the name and leadership of the state agency has changed and those both in favor of the plant and those opposed continue to wait for a decision.

With the announcement of an air quality permit being granted to a downstate power plant, speculation has risen about the fate of Wolverine Power?s request for the same. According to Gov. Jennifer Granholm, it is first important to understand whether the plant is needed before a decision can be made.

The announcement Dec. 29 that the state granted a permit to install for a 930-megawatt coal-fired power plant in Essexville drew the attention of lawmakers elected to serve the area. State Rep. Andy Neumann (D.-Alpena) and State Sen. Jason Allen (R.-Traverse City) each stepped up to the plate to push for a positive decision on Wolverine?s request. Each blamed the governor?s office for stalling the procedures and asked the decision be made soon.

SO WHAT IS the governor?s view on Wolverine? The Advance posed a series of questions to the governor and received a reply to our questions. We asked if the governor is in support or opposed to the ?Wolverine Clean Energy Venture (WCEV)? what roadblocks stand in the way of a decision on the permit; if the state is waiting for Wolverine to rethink its application, as some opposed to the project have suggested should happen; and if the decision process is driven by ?science and the law? as Department of Natural Resources and Environment (DNRE) representative Bob McCann told the Advance last week, or is there more to the decision-making process. Through deputy press secretary Megan Brown, the governor replied to the Advance Monday.

Support the Wolverine project or not? ?Before determining whether to support the construction of a new coal-fired power plant that would cost Michigan ratepayers billions of dollars and affect Michigan?s environment and natural resources, the governor believes it?s important to first understand whether the energy from the plant is needed and whether the plant is the best way to meet our energy needs,? Brown said.

Decision based on politics or science and the law? The decision of whether or not to issue the air permit to Wolverine is not being driven by politics ? this is all about whether issuing the permit is the right policy for Michigan under the laws that govern air quality,? Brown said. Reason for delays?

?Processing an air permit of this magnitude is enormously complex. The DNRE staff have received 6,500 individual comments on the proposed air permit, which must be reviewed, considered, and responded to before taking action on the permit. Permits like these take time to process ? both in Michigan and around the country ? because they have such important stakes,? Brown said.

SOME OF THOSE questions may have been answered for the governor in a report she requested of the Michigan Public Service Commission (MPSC) last fall. Regarding the WCEV a 600-megawatt power plant proposed for Rogers Township, the MPSC found that ?Wolverine Power Cooperative failed to demonstrate the need for the proposed facility to meet its projected capacity.?

In a separate report issued, the MPSC also gave a discouraging report on Consumers Energy?s project in Essexville, suggesting it delay its project until older power plants are retire

d. In issuing its permit to install Dec. 29, the DNRE required Consumers to retire up to seven of its older plants, following the MPSC suggestion.

Wolverine disagreed with the MPSC report, saying that it ignored the facts of Wolverine?s power supply situation and the realities of today?s wholesale electric marketplace and is potentially devastating for northeastern Michigan?s economy. In its report, MPSC staff stated that Wolverine ?failed to demonstrate the need? for its WCEV power plant project. However, the MPSC report did not identify a lower cost alternative to the WCEV plant for generating power.

THE ONLY consideration given to the permit is what the law allows, McCann asserted, regardless of political pressures from outside organizations, both for and opposed to the power plant, or even from the governor?s office. ?There is obviously a great deal of outside interest from a number of parties, however, decisions by our permitting staff are made solely on scientific and legal purposes. Quite simply, the law doesn’t allow for anything else,? McCann said. The wait continues.