Site Evaluation Committee begins
deliberating on Laidlaw permit
CONCORD — No signifi cant roadblocks were identifi ed
yesterday as the N.H. Site Evaluation Committee began
deliberations on Laidlaw Berlin BioPower’s application
to construct and operate a 70-megawatt biomass plant in
Berlin.
By the end of the day, the committee had reviewed most of
the criteria Laidlaw must satisfy to obtain its permit. While
no votes were taken, the committee appears to be moving
towards approving the application, subject to a number of
conditions.
Overall, committee members felt Laidlaw had demonstrated
the fi nancial, technical, and managerial capability
to properly run the facility. But the recent change in
its ownership structure and its complicated organizational
chart caused some concern. Amy Ignatius, of the N.H. Public
Utilities Commission, said it was diffi cult to evaluate the
fi nancial capability with the company in fl ux. She said she
felt some of the entities are placeholders and will change as
the project progresses. PUC Staff Engineer Michael Harrington
said he wanted to know what entity is ultimately
responsible for ensuring all the permits and conditions are
met.
Committee Chair Tom Barack, head of the N.H. Department
of Environmental Services, suggested the committee
can require all three main entities, Laidlaw, NewCo Energy
LLC and PJPD Holdings, be responsible. NewCo owns 100
percent of the stock of LBB while PJPD owns the property.
Don Kent, representing the Department of Resources and
Economic Development, pointed out the applicant has signifi
cant equity in the project already, has a power purchase
agreement with Public Service of N.H. pending before the
N.H. Public Utilities Commission, has a wood supply agreement
with Cousineau Forest Products, is applying for $44
million in New Market Tax Credits, and has at least one
large institutional investor, John Hancock Insurance, seriously
interested in investing in the project. Kent said he
thought Laidlaw had met the burden of fi nancial capability.
Burack noted that Fibrowatt CEO Carl Strickler has
an extensive background in operating biomass facilities.
Fibrowatt will oversee the operation of the Laidlaw plant.
The committee spent much of the afternoon discussing
wood supply and wood sustainability issues in light of testimony
from Clean Power Development and a number of
existing biomass plants that there is not suffi cient lowgrade
wood to supply the Laidlaw plant without negatively
impacting their facilities. Kent noted Clean
officials had testifi ed Laidlaw’s power
purchase agreement would give it an
unfair advantage because the agreement
includes a fuel adjustment
clause.
Kent said determining how much
low-grade wood is available is diffi
cult to determine and depends on
a number of factors. He asked if the
issue even falls under the SEC’s jurisdiction.
Harrington also questioned whether
the committee should try to regulate
wood supply.
“I don’t think we have the authority
to pick winners and losers here,”
he said.
Harrington noted Clean Power’s
real objection was with the power
agreement and pointed out that is
before the PUC. Committee members
indicated PUC approval of the power
agreement would likely be a condition
of any certifi cate it would issue.
Director of Water Resources Harry
Stewart observed that while higher
wood prices may not be good for existing
plants, the logging industry would
benefi t and that impacts the local
economy.
Ignatius asked about the environmental
impacts of increased biomass
demand. Christopher Northrop of the
Offi ce of Energy and Planning said
the amount of low-grade wood used
would be about the same as when
the paper mills were running. Kent
pointed to the voluntary sustainability
measures for fuel procurement
Laidlaw has reached in conjunction
with the state forester and counsel for
the public. The company has agreed
the agreement can be included as conditions
on the certifi cate issued by the
SEC.
Several members noted much of the
testimony about wood supply and sustainable
came from potential competitors
of Laidlaw and had to be taken
with a grain of salt.
The committee reviewed the various
air and water permits obtained
by Laidlaw and also discussed the
site. Several members noted Laidlaw
would be reusing an existing boiler on
property that has been used for over
100 years as an industrial site. They
noted the project has the support of
city, county, and local economic development
offi cials.
Burack said the committee would
fi nish its review of the criteria today
and take a straw poll. If there is support
for approving the project, he said
the committee would discuss conditions
it might want to attach to the
certifi cate.
