sappi cloquet new paper machine project signature document

STATE OF MINNESOTA MINNESOTA POLLUTION CONTROL AGENCY

IN THE MATTER OF THE DECISION ON THE NEED FOR AN ENVIRONMENTAL IMPACT STATEMENT FOR THE PROPOSED SAPPI CLOQUET NEW PAPER MACHINE PROJECT CARLSON COUNTY CLOQUET, MINNESOTA

FINDINGS OF FACT CONCLUSIONS OF LAW AND ORDER

FINDINGS OF FACT Pursuant to Minn. R. 4410.1000 - 4410.1600 (2006), the Minnesota Pollution Control Agency (MPCA) staff has prepared an Environmental Assessment Worksheet (EAW) for the proposed Sappi Cloquet New Paper Machine Project (Project). Based on the MPCA staff environmental review, comments, and information received during the comment period, and other information in the record of the MPCA, the MPCA hereby makes the following Findings of Fact, Conclusions of Law, and Order.

Facility History

1. The Sappi Cloquet, LLC Mill , located in Cloquet, Minnesota, includes facilities for the receiving and processing of pulpwood to produce bleached kraft pulp, two existing paper machines and one off-machine coater. Paper Machine #12 produces 180,000 tons of paper per year and Paper Machine #4 produces 160,000 tons of paper per year, for a total of 340,000 tons of fine coated paper per year produced by the existing mill. Steam and electricity are needed for pulp and paper-making. There are three power boilers and one recovery boiler at the existing mill, producing steam that is utilized by three steam turbines, which co-generate electricity and process steam for use as a source of heat in pulp or paper making. The mill generates approximately 98 percent of the electricity it needs to operate. Additional electrical power is purchased from Minnesota Power. Approximately 93 percent of the steam and electricity produced at the existing mill is derived from renewable biomass. Biomass fuel consists of bark or off-spec chips not suitable for use in other processes. The biomass is transported to the mill by truck and stored in piles in the fuel yard of the Existing Mill for use as a fuel in the power boilers.

2. The existing mill has been in business since 1898 and permitted with the state as long as it has been required. The mill currently holds a number of local, state and federal permits for its various operations.

3. Previous environmental review for the existing mill occurred in 1992, when an Environmental Impact

Statement was completed for a major expansion of the kraft pulp mill and associated facilities including the conversion of the bleaching process to 100 percent chlorine dioxide. The project was subsequently permitted and constructed.

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On the Need for an Environmental Impact Statement Findings of Fact Sappi Cloquet New Paper Machine Project Conclusions of Law Cloquet, Minnesota And Order

Proposed Project Description

4. Sappi proposes to construct a new paper machine complex (the Project) to produce 671,000 net tons per year of fine coated paper. The proposed Project will include ancillary operations such as stock and coating preparation, finishing, converting, warehousing, and shipping. To provide steam for the proposed Project, a new natural gas fired package boiler will be installed. Because the proposed Project will be constructed in the existing on-site wood yard area, the Project also includes creating a new wood storage yard to an open area that at one time was used as a tree nursery area. Sappi is also proposing to annex portions of Avenue B and rerouting traffic to 18th Street between the exiting scale road and Highway 45.

5. The amount of wood processed at the existing mill will not increase as a result of the project; therefore, the amount of timber harvesting in Minnesota for the Existing Mill plus proposed Project will not increase as a result of the proposed Project.

6. As a fully integrated pulp and papermill, operations are conducted under a number of state and local permits addressing a variety of environmental concerns. The environmental review focused primarily on the following areas. • Air emissions including effects on human health • Dust • Noise • Surface water/stormwater

7. Additional concerns were described in comment letters received during the public notice period for the environmental review: • Traffic • Visual impacts

8. To enhance community involvement in the process, Sappi held meetings with:

• Carlton County Commissioners on May 12, 2009 • Scanlon City Council on May 12, 2009 • Cloquet City Council on May 19, 2009

Procedural History

9. Pursuant to Minn. R. 4410.4300, subp. 13, an EAW was prepared by MPCA staff on the proposed

Project. Pursuant to Minn. R. 4410.1500, the EAW was distributed to the Environmental Quality Board (EQB) mailing list and other interested parties on May 1, 2009.

10. The MPCA notified the public of the availability of the EAW for public comment. A news release

was provided to Aitkin, Itasca, Koochiching, Carlton, St. Louis, Lake, and Cook counties, as well as other interested parties, on May 4, 2009. In addition, the EAW notice of availability was published in the EQB Monitor on May 4, 2009, and available for review on the MPCA Web site at http://www.pca.state.mn.us/news/eaw/index.html#open-eaw on May 4, 2009.

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http://www.pca.state.mn.us/news/eaw/index.html#open-eaw


11. The public comment period for the EAW began on May 4, 2009, and ended on June 3, 2009. During

the 30-day comment period, the MPCA received two comment letters from government agencies and received three comment letters from citizens. None of the commenters requested preparation of an Environmental Impact Statement (EIS).

12. The MPCA prepared responses to all comments received during the 30-day public comment period.

Comment letters received have been hereby incorporated by reference as Appendix A to these findings. The MPCA responses to comments received are hereby incorporated by reference as Appendix B to these findings.

Criteria for Determining the Potential for

Significant Environmental Effects

13. Under Minn. R. 4410.1700, the MPCA must order an Environmental Impact Statement (EIS) for projects that have the potential for significant environmental effects. In deciding whether a project has the potential for significant environmental effects, the MPCA must compare the impacts that may be reasonably expected to occur from the project with the criteria set forth in Minn. R. 4410.1700, subp. 7. These criteria are: A. the type, extent, and reversibility of environmental effects;

B. cumulative potential effects of related or anticipated future projects;

C. the extent to which the environmental effects are subject to mitigation by ongoing public

regulatory authority; and

D. the extent to which environmental effects can be anticipated and controlled as a result of other available environmental studies undertaken by public agencies or the project proposer, including other EISs.

The MPCA Findings With Respect to Each of These Criteria

Are Set For the Below

Type, Extent, and Reversibility of Environmental Effects

14. The first criterion that the MPCA must consider when determining if a project has the potential for significant environmental effects is the "type, extent, and reversibility of environmental effects" Minn. R. 4410.1700, subp. 7.A. The MPCA findings with respect to each of these factors are set forth below.

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On the Need for an Environmental Impact Statement Findings of Fact Sappi Cloquet New Paper Machine Project Conclusions of Law Cloquet, Minnesota And Order 15. The types of impacts that may reasonably expected to occur from the Project include the following:

• Air emissions including effects on human health • Dust • Noise • Water quality impacts

16. With respect to the extent of any potential air quality effects that are reasonably expected to occur

from the Project, the MPCA makes the following findings.

Air Emissions including effects on human health 17. A preliminary Risk Analysis Screening Spreadsheet (RASS) was submitted by Sappi to estimate

potential health impacts to the surrounding community from the proposed Project. The RASS is a screening tool developed by the MPCA as part of the Air Emission Risk Analysis process. Sappi later conducted a more refined inhalation risk analysis of air emissions from the Existing Mill and an inhalation risk analysis of estimated mill emissions after the proposed Project to understand the potential incremental change in risks posed by the proposed Project. Multi-pathway risks were not computed for the proposed modification because the associated pollutants are primarily volatile and, therefore, are not deposited to a great degree in the vicinity of the Existing Mill, nor do they persist in the environment long enough for a significant portion to bioaccumulate in the food chain. As a result, the risks are primarily from just one pathway, the inhalation pathway. The results of the Air Emissions Risk Analysis indicated that the incremental risks from the proposed Project will not significantly contribute to or change the magnitude of the existing risks.

18. The only increases in emissions on an annualized basis are associated with natural gas firing in the new power boiler and natural gas firing at the new paper machine. Existing boiler 9 is proposed to be equipped with selective non-catalytic reduction to decrease nitrogen oxides emissions.

Dust 19. Construction of the proposed Project will include removal of existing railroad spurs, construction of

local buildings, paving of roadways, and utility upgrades as necessary. This will generate dust typical of large construction projects for an 18 to 24-month period. Construction-related dust impacts can be controlled by proper management practices on the site and are not expected to be significant or sustained.

20. Roadways at the existing mill will be paved as part of the proposed Project. This is expected to result

in less overall impact from fugitive dust at the exiting mill plus the proposed Project. Due to the proximity to residential areas, dust controls will also be implemented at the new wood storage yard.

Noise 21. Noise will be generated by the proposed Project during construction and operation. Noise during

construction will be temporary. This noise will include clearing equipment and construction equipment, including haul trucks. The construction of the proposed Project is anticipated to take approximately 18 to 24 months to complete.

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22. The noise generated by the proposed Project during operation will be similar to the existing mill noise

with the addition of potential noise impacts generated by operations of the wood yard in a new location.

23. The wood yard will be moved south of the existing mill across Avenue B in a primarily residential area. This will create the potential for noise impacts to nearby residences. Possible mitigation measures being considered include the following: • When feasible, maintain a pile of wood on the west side of the yard to provide sound barrier for

residents across the street. • Limiting typical operating hours to daylight hours.

24. Noise levels from the existing mill plus proposed Project are expected to comply with Minnesota rules and standards. Current noise standards provided for the state of Minnesota are described in Minn. R. 7030.0040, subp. 2. The rules describe permissible noise levels according to noise area classification, such as residential areas compared to industrial areas. The rules also distinguish between nighttime and daytime noise. For example, the most restrictive noise levels are in residential areas during the nighttime, whereas the least restrictive noise levels are in industrial areas. Noise standards are measured in decibels and sound levels exceeded for 10 and 50 percent of the time in a one-hour survey (L10 and L50) for each noise area classification. Noise regulations are a part of the Air Quality Permit and, therefore, will be enforced by the MPCA.

25. The proposed Project will take place within the footprint of the existing mill and as a result overall noise related impacts beyond the noise associated with the current operations at the existing mill plus proposed Project are not anticipated.

26. Based on the air quality modeling analysis, the proposed Project will comply with the applicable air

quality standards and is not expected to contribute to an adverse potential air quality effect.

27. With respect to the reversibility of any potential air quality impacts that are reasonably expected to occur from the Project the MPCA makes the following findings.

28. The MPCA finds that any potential air quality impacts that are reasonably expected to occur from

construction of this Project would be temporary and reversible. The MPCA finds that any potential air impacts that are reasonably expected to occur from operation of the completed Project would not be reversible. As discussed above, however, the expected effects on air quality are minimal. There is no reason to believe that this Project will cause a significant adverse impact on air quality. If, due to circumstances which were not anticipated, air quality were to be more than minimally impacted, there are measures that can be implemented to address the impacts. For example, the MPCA has authority to initiate an investigation and require the Project proposer to make operational and maintenance changes.

29. All potential impacts to air quality that are reasonably expected to occur from the proposed Project

have been considered during the review process and methods to prevent adverse impacts have been developed.

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30. The MPCA finds that the Project, as it is proposed, does not have the potential for significant

environmental effects based on the type, extent, and reversibility of environmental effects reasonably expected to occur as a result of its air emissions.

Water Quality 31. With respect to the extent of water quality impacts that are reasonably expected to occur from the

Project, the MPCA makes the following findings. 32. Stormwater at the existing mill is currently directed to the St. Louis River. The existing mill and the

proposed Project are subject to an existing Stormwater Pollution Prevention Plan (SWPPP) to oversee stormwater management. The SWPPP will be updated to manage stormwater at the proposed Project.

33. Additional impervious surfaces will be generated from the construction of the proposed Project. The stormwater detention ponds will provide treatment and control of stormwater discharges. The stormwater ponds have been designed to ensure that post-construction peak flows are less than or equal to pre-construction peak flows.

34. The city of Cloquet is currently in the process of being designated as a Municipal Separate Storm Sewer System (MS4), under which it will be required to follow the guidelines detailed in the National Pollutant Discharge Elimination System (NPDES) General Stormwater Permit. Upon implementation of the MS4 Permit, additional stormwater best management practices (BMPs) and monitoring of stormwater quality may be required at the existing mill plus proposed Project.

35. With the addition of the proposed stormwater detention ponds, the BMPs in the updated SWPPP for the proposed Project and Sappi’s coordination with the city of Cloquet on potential stormwater management requirements outlined in the MS4 plan, the overall stormwater quality and quantity at the proposed Project will not change significantly compared to existing conditions. No significant impacts to local stormwater management or downstream receiving waters are expected as a result of the proposed Project.

36. With respect to the reversibility of any potential water quality impacts that are reasonably expected to

occur from the Project, the MPCA finds that the impacts on water quality from this Project would be reversible. As discussed above, the expected effects on water quality are minimal. Proposed permit limits are expected to prevent degradation of the water quality. Potential environmental effects are expected to be minimal based on current conditions. Though not expected to occur, impacts from a release of effluent not meeting the limits stipulated in the NPDES/SDS Permit for the proposed Project would be of finite duration and the environment would be expected to ultimately return to current conditions. There is no reason to believe that this Project is reasonably expected to cause a significant negative effect on water quality.

37. The MPCA finds that all potential impacts to water quality that are reasonably expected to occur from

the proposed expansion of this facility have been considered during the review process and a method to prevent these impacts has been developed.

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On the Need for an Environmental Impact Statement Findings of Fact Sappi Cloquet New Paper Machine Project Conclusions of Law Cloquet, Minnesota And Order 38. The MPCA finds that the Project, as it is proposed, does not have the potential for significant

environmental effects based on the type, extent, and reversibility of environmental effects on water quality that are reasonably expected to occur from the project.

Potential Cumulative Effects of Related or Anticipated Future Projects

39. The second criterion that the MPCA must consider, when determining if a project has the potential for

significant environmental effects is the "potential cumulative effects of related or anticipated future projects," Minn. R. 4410.1700, subp. 7.B. The MPCA findings with respect to this criterion are set forth below.

40. The EAW, public comments, and MPCA follow-up evaluation did not disclose any related or anticipated future projects that may interact with this Project in such a way as to identify any potential cumulative environmental effects that are reasonably expected to occur.

41. The Air Emission Risk Analysis conducted for the environmental review included the emissions from

the proposed Project plus the existing mill to evaluate the incremental inhalation risks posed by the proposed Project and the cumulative inhalation risks of the mill after the proposed Project. Multi-pathway risks were not computed for the proposed modification because the associated pollutants are primarily volatile and, therefore, are not deposited to a great degree in the vicinity of the Existing Mill, nor do they persist in the environment long enough for a significant portion to bioaccumulate in the food chain. As a result, the risks are primarily from just one pathway, the inhalation pathway. The results of the analysis indicated that the estimated cumulative inhalation risks from the proposed Project will not significantly contribute to or cause the existing inhalation risk to exceed benchmarks established to protect human health.

42. The modeling analysis of the cumulative risks for multi-pathway exposure to air emissions (i.e.,

inhalation, ingestion of home-grown meat and dairy products and fish consumption) estimated that the maximum excess lifetime farmer cancer risk in the area just north of Sappi’s northeast boundary is approximately 3 in 100,000 (3E-05). This exceeded the Minnesota Department of Health/MPCA facility cancer risk guideline of 1 in 100,000 (1E-05). The farmer lifetime cancer risk estimate is primarily based on the assumption that an adult resident farmer consumes five quarter-pound servings of beef raised on their farm and that the same farmer consumes approximately 30 eight-ounce servings of milk produced from dairy cows raised on their farm property per week. The pollutants primarily driving the risks for the milk consumption pathway were dioxins/furans and polycyclic aromatic hydrocarbons (PAHs). These same pollutants also form the basis of the estimated cancer risk from the fish consumption exposure pathway.

43. The MPCA will regulate the proposed Project based on current conditions or conditions that are

reasonably expected to exist in the foreseeable future. In this case, the MPCA has no information that current land use in the area of the modeled maximum risk is or is likely to include producing beef or dairy for home use. The risks that are identified will serve to alert local government and the public so that future land use planning can take the information into consideration.

44. The MPCA has also proposed an air emission permit which includes the goal of reducing emissions of the pollutants (dioxin/furan and PAH) that are responsible for most of the modeled cancer risk. The permit language requires Sappi to complete and submit an analysis addressing the estimated

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risks associated with dioxin/furan and PAH emissions as identified in the EAW.The analysis shall include the following elements.

• An analysis of what would be required to reduce the estimated fisher cancer risks to 1 in 100,0000 or lower.

• A best available control technology-like analysis of the technical and economic feasibility of add-on controls or other means of reducing emissions of the subject pollutants.

45. Reducing dioxin/furan and PAH emissions would not only reduce risks to the public from the fish

consumption exposure pathway, but would also reduce risks from exposure to dairy products if they are produced at some time in the future in the vicinity north of Sappi.

46. The evaluation presented in the EAW and MPCA follow-up evaluation did not disclose any related or anticipated future projects that may interact with this Project in such a way as to identify significant cumulative impacts on human health that are reasonably expected to occur from air emissions from the proposed Project and the existing mill.

47. In considering the potential cumulative effects of related or anticipated future projects, the MPCA

finds that the environmental effects from this Project will not be significant.

The Extent to Which the Environmental Effects Are Subject to Mitigation by Ongoing Public Regulatory Authority

48. The third criterion that the MPCA must consider, when determining if a project has the potential for

significant environmental effects is "the extent to which the environmental effects are subject to mitigation by ongoing public regulatory authority," Minn. R. 4410.1700, subp. 7.C (2006). The MPCA findings with respect to this criterion are set forth below.

49. The following permits or approvals will be required for the Project:

Unit of government Type of application or update Status Major Amendment to Title V Operating Permit

Application for permit amendment submitted

NPDES Stormwater Construction Permit Application to be submitted NPDES Industrial Stormwater Permit Application for permit

amendment to be submitted

MPCA

Aboveground Storage Tank Permit Application for permit amendment to be submitted

DNR City of Cloquet Water Appropriations Permit

Application for permit amendment to be submitted

WLSSD Capacity Allocation Agreement Application to amend current agreement to be submitted.

City of Cloquet Building Permit Application to be City of Cloquet JOBZ District participation agreement Application to be submitted City of Cloquet Grading Permit – related to stormwater

pollution prevention planning Application to be submitted

City of Cloquet Road Relocation To be approved

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On the Need for an Environmental Impact Statement Findings of Fact Sappi Cloquet New Paper Machine Project Conclusions of Law Cloquet, Minnesota And Order 50. The above-listed permits include general and specific requirements for mitigation of environmental

effects of the Project. The MPCA finds that the environmental effects of the project are subject to ongoing public regulatory.

The Extent to Which Environmental Effects can be Anticipated and Controlled as a Result of Other Available Environmental Studies Undertaken by Public Agencies or the Project

Proposer, Including Other EISs

51. The fourth criterion that the MPCA must consider is “the extent to which environmental effects can be anticipated and controlled as a result of other available environmental studies undertaken by public agencies or the project proposer, including other EISs,” Minn. R. 4410.1700, subp. 7.D. The MPCA findings with respect to this criterion are set forth below.

52. The following documents were reviewed by MPCA staff as part of the potential environmental impact analysis for the proposed expansion of the Sappi Cloquet New Paper Machine Project. This list is not intended to be exhaustive. The MPCA also relies on information provided by the Project proposer, commenters, staff experience, and other available information. • EAW • Permit application • Air emission modeling • Previous Environmental Impact Statement

53. There are no elements of the Project that will result in impacts which pose the potential for significant

environmental effects that cannot be addressed in the Project design and permit development processes, or by regional and local plans.

54. Based on the environmental review, previous environmental studies and MPCA staff expertise on similar projects, the MPCA finds that the environmental effects of the Project that are reasonably expected to occur can be anticipated and controlled.

CONCLUSIONS OF LAW

55. The MPCA has jurisdiction in determining the need for an EIS for this Project. The EAW, the permit development process, the responses prepared by MPCA staff to comments on the Sappi Cloquet New Paper Machine Project EAW, and the evidence in the record are adequate to support a reasoned decision regarding the impacts that are reasonably expected to occur from this Project and the potential for significant environmental effects.

56. Areas where the potential for significant environmental effects may have existed have been identified and appropriate mitigation measures have been incorporated into the Project design and permits. The Project is expected to comply with all MPCA standards.

57. Based on a comparison of impacts that are reasonably expected to occur from the Project with the criteria established in Minn. R. 4410.1700, the Project does not have the potential for significant environmental effects.

58. An EIS is not required.

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APPENDIX A

Minnesota Pollution Control Agency

Sappi Cloquet New Paper Machine Project Environmental Assessment Worksheet

LIST OF COMMENT LETTERS RECEIVED

1. Michael L. Roemhildt, Cloquet, Minnesota. Letter received May 20, 2009. 2. City of Scanlon. Letter received May 21, 2009. 3. Joy Wiecks, Fond Du Lac Indian Reservation. E-mail received May 29, 2009. 4. Ryan Okerlund, Cloquet, Minnesota. Letter received June 1, 2009. 5. Ronald Wieland, Minnesota Department of Natural Resources. Letter received June 3, 2009.

APPENDIX B

Minnesota Pollution Control Agency (MPCA)

Sappi Cloquet New Paper Machine Project (Project) Environmental Assessment Worksheet (EAW)

RESPONSES TO COMMENTS ON THE EAW

1. Comments by Michael L Roemhildt, Cloquet, Minnesota. Letter received May 20, 2009. Comment 1-1: Commenter stated concern that the current plant emits a lot of light pollution and the proposed expansion will just add to the existing problem. Response: Even though light pollution is not formally regulated, the company is aware of the issue and states that the lights from the Project, like the lighting from the existing mill, will have a downward focus in order to illuminate areas within the mill and reduce the amount of illumination to areas adjacent to the mill. The new paper machine building will include similar light levels to those that currently exist around other facilities at the mill. The Project site is within the footprint of the existing Sappi Cloquet Mill and the proposed expansion and activities at the Project site will be similar to the activities that currently occur at the site. A certain amount of light is required to maintain safety and security around the mill. Comment 1-2: Commenter stated concern that the proposed plant expansion will increase the amount of noise generated at the Sappi paper mill, which is just within state noise standards. Response: Noise will be generated by the proposed Project during construction and operation. Noise during construction will be temporary. This noise will include clearing equipment and construction equipment, including haul trucks. The construction of the proposed Project is anticipated to take approximately 18 to 24 months to complete. The noise generated by the proposed Project during operation will be similar to the existing mill noise, with the addition of potential noise impacts generated by operations of the wood yard in a new location. The wood yard will be moved south of the existing mill across Avenue B in a primarily residential area. This will create the potential for noise impacts to nearby residences. Possible mitigation measures being considered include the following: • When feasible, maintain a pile of wood on the west side of the yard to provide a sound barrier for

residents across the street. • Limiting typical operating hours to daylight hours. Noise levels from the existing mill plus proposed Project will comply with Minnesota rules and standards. Current noise standards provided for the state of Minnesota are described in Minn. R. 7030.0040, subp. 2. The rules describe permissible noise levels according to noise area classification, such as residential areas compared to industrial areas. The rules also distinguish between nighttime and daytime noise. For example, the most restrictive noise levels are in residential areas during the nighttime, whereas the least restrictive noise levels are in industrial areas. Noise standards are measured in decibels (dB(A)) and sound levels exceeded for 10 and 50 percent of the time in a one-hour survey (L10 and L50) for each noise area classification. Noise regulations are a part of the Air Quality Permit and, therefore, will be enforced by the MPCA.

Sappi Cloquet New Paper Machine Project Responses to Comments on the Cloquet, Minnesota Environmental Assessment Worksheet The proposed Project will take place within the footprint of the existing mill and as a result overall noise related impacts beyond the noise associated with the current operations at the existing mill plus proposed Project are not anticipated. Comment 1-3: Commenter stated concern that the increase in light pollution and noise pollution will cause property values to plummet near the mill. Response: The issue of property values is beyond the scope of the EAW; however, your concerns regarding the potential impacts to local property values if the proposed Project is constructed have been passed along to the city for its consideration. 2. Comments by City of Scanlon. Letter received May 21, 2009. Comment 2-1: The City of Scanlon stated support for the proposed Project. Response: No response required. 3. Comments by Joy Wiecks, Fond Du Lac Indian Reservation. E-mail received May 29, 2009. Comment 3-1: We feel the EAW does not adequately address the risks if, in the future, dairy operations come within the maximum risk area. Page 34 of the EAW states that, “The maximum farmer cancer risks fall in a location just north of the Sappi northeast boundary. There is not currently a farmstead at that location.” However, this does not mean there may not be a farmstead at that location in the future. Further down the page, we read “…several farms would fall in an area where estimated cancer risks would be above the 1E-05 guideline…There are currently no pigs, dairy cows, or sheep housed routinely as a farm business in that area, although it is possible this type of business could occur in the future since it is not prohibited by zoning laws.” What if a dairy operation does move into these locations in the future? Response: The MPCA must regulate a proposed project based on current conditions or conditions that are reasonably expected to exist in the foreseeable future. In this case, the MPCA has no information that current land use in the area of the modeled maximum risk will or is likely to change. Part of the reason for identifying a risk that could occur in the future is to alert local government and the public so that future land use planning can take the information into consideration. That said, the MPCA has proposed an air emission permit with the goal of reducing emissions of the pollutants that cause the modeled cancer risk. The maximum excess lifetime farmer cancer risk in the area just north of Sappi’s northeast boundary is estimated to be approximately 3 in 100,000 (3E-05). The Minnesota Department of Health (MDH)/ MPCA facility cancer risk guideline is 1 in 100,000 (1E-05). The farmer lifetime cancer risk estimate is primarily based on the assumption that an adult resident farmer consumes five quarter-pound servings of beef raised on their farm and that the same farmer consumes approximately 30 eight-ounce servings of milk produced from dairy cows raised on their farm property per week. The pollutants primarily driving the risks for the milk consumption pathway are dioxins/furans and polycyclic aromatic hydrocarbons (PAHs). These same pollutants also form the basis of the estimated cancer risk from the fish consumption exposure pathway.

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Sappi Cloquet New Paper Machine Project Responses to Comments on the Cloquet, Minnesota Environmental Assessment Worksheet The MPCA has written a permit requirement for Sappi with the goal that it reduce their dioxin/furan and PAH emissions. The permit language requires Sappi to "complete and submit an analysis addressing the estimated risks associated with dioxin/furan and PAH emissions as identified in the EAW, which was placed on public notice for 30-days beginning May 3, 2009. The analysis shall include the following elements. 1. An analysis of what would be required to reduce the estimated fisher cancer risks to 1 in 100,0000 or lower. 2. A BACT-like analysis of the technical and economic feasibility of add-on controls or other means of reducing emissions of the subject pollutants." Reducing dioxin/furan and PAH emissions would not only reduce risks to the public from the fish consumption exposure pathway, but would also reduce risks from exposure to dairy products if they are produced at some time in the future in the vicinity north of Sappi. Comment 3-2: The commenter asks what the time line is for addressing the fisher multi-pollutant risk for cancer. Response: As described above in response to question #1, Sappi will be required to submit an analysis of ways to reduce emissions of pollutants driving the risks from consuming fish caught from the Thomson Reservoir by December 30, 2011. The primary pollutants responsible for the estimated cancer risks are dioxins/furans and PAHs. Comment 3-3: The commenter asks why the maximum hourly hazard index was not computed at the farmer location, especially if it is possible that a farm may exist at that location in the future. Response: The farming location mentioned in the risk assessment is the location where the computer model showed the highest potential cancer risk based on chronic exposure to annual averaged concentrations in areas where farming could possibly occur. The maximum hourly hazard index often occurs at a different location because it is calculated from the maximum hourly pollutant concentration, not an annual concentration. Because the maximum acute hazard index, which is based on the worst-case hourly concentrations at any location, was less than the MPCA/MDH health-based hazard index guideline of 1, the acute hazard index at potential farming locations would also be less than 1. The maximum acute hazard index was estimated to be at a location outside the south Sappi property boundary in an area between residential and commercial development, not in the farming location. Comment 3-4: The commenter asks if the AERA included toxics from nearby sources including heavy equipment emissions from Sappi. Response: Actual emission data for specific pollutants were not available from nearby sources. The MPCA, therefore, computed ‘background’ risks to represent sources not associated with the Sappi facility using Duluth ambient monitoring data supplemented with nitrogen oxide data from a monitoring station near Cloquet. This data reflects a population density, mix of residential and commercial land use and roadways similar to those of Cloquet. It also reflects more distant emissions sources that contribute to a regional level of pollutants that have been detected at similar levels across northern Minnesota. The air toxics data from 2005-2007 are summarized below in terms of cancer risks and noncancer hazard

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Sappi Cloquet New Paper Machine Project Responses to Comments on the Cloquet, Minnesota Environmental Assessment Worksheet indices. The noncancer hazard indices reflect the respiratory portions of the total Hazard Index values because the inhalation noncancer hazard index related to potential Sappi emissions is based on respiratory system effects. Ambient Monitoring

Max Cancer Risk Chronic Non-Cancer Hazard Index

Acute Hazard Index

pop. density 500-2000/mi2 (Duluth)

4E-5 0.8 (respiratory) 0.6 (resp)

The focus of the risk assessment was to evaluate stack and fugitive emissions from the existing facility and from the proposed modification. Standard MPCA risk assessment practice has been to not include air toxics from on-site heavy equipment emissions. 4. Comments by Ryan Okerlund, Cloquet, Minnesota. Letter received June 1, 2009 Comment 4-1: Commenter stated concern that the rerouting of Avenue B will route traffic to 18th Street and will make it difficult to get in and out of his driveway since it is on 18th Street. In addition, the extra traffic will create an unacceptable amount of dirt, noise, and traffic and the use of “jake-breaking” by some of the trucks. Response: As part of the environmental review process, the consultant for the Project proposer, Wenck Associates Inc., completed a traffic study that looked at the changes in traffic patterns. The traffic study indicated that the revised traffic flow did not require any modifications to existing roadways or traffic controls. However, Sappi plans to add a right hand turn lane from Highway 45 onto 18th Street and widen 18th Street (on the Sappi wood yard side) to address this concern. Also, it is important to note that currently, all the logging trucks use 18th Street to enter the mill and that the Project does not require any increase in the number of logging trucks. Noise was discussed in response 1-2 above. Dust Construction of the proposed Project will include removal of existing railroad spurs, construction of local buildings, paving of roadways, and utility upgrades as necessary (see table below). This will generate dust typical of large construction projects for an 18 to 24-month period. Construction-related dust impacts are not expected to be significant or sustained.

Potential Dust Sources and Measures to Mitigate Adverse Impacts

Potential Dust Source Measures to Mitigate Adverse Impacts Earth moving for preparation proposed Project site

Compaction, water spraying of haul roads, minimizing of open areas, rapid revegetation of disturbed areas

Construction traffic Dust suppressant application (water or chemical) Truck loading and haul truck traffic associated with transfer of process materials

Roads will be paved/impervious as part of construction of the proposed Project

Existing mill plus proposed Project operation

Discussed previously under Question 23

On-site traffic Paving of roadways, use of dust suppressants as needed

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Sappi Cloquet New Paper Machine Project Responses to Comments on the Cloquet, Minnesota Environmental Assessment Worksheet Roadways at the Existing Mill will be paved as part of the proposed Project. This is expected to result in less overall impact from fugitive dust at the existing mill plus proposed Project. Due to the proximity to residential areas, dust control will also be implemented at the new wood storage yard. Comment 4-3: The commenter stated concern that the relocation of the wood yard will create an eye sore for that end of town. Response: The new wood storage yard is located along Scanlon Way (SR 45), which serves as the south eastern entrance to the city of Cloquet. Sappi will coordinate with the city of Cloquet to determine an acceptable solution for mitigating visual impacts from the new wood storage area on the adjacent neighborhoods and roadways. Considerations in the design of the new wood storage yard to lessen visual impacts include the following: • Limit round wood pile heights to a maximum of 25 feet • For wood storage piles, maintain a 25-foot setback from sidewalks and roadways • Use of vegetative screening around perimeter of wood yard • Use of perimeter berms to provide visual screening as well as increase height of vegetative screen • Install perimeter fencing to provide screening and prevent public access The final design of the new wood storage yard will include a combination of the above mentioned mitigation measures to lessen visual impacts as a result of the proposed Project. Comment 4-4: The commenter stated concern that the increase in traffic, noise, dust and the relocation of the wood yard will have a negative impact on property values in the immediate area. Response: The issue of property values is beyond the scope of the EAW; however, your concerns regarding the potential impacts to local property values if the proposed Project is constructed have been passed along to the city for its consideration. 5. Comments by Minnesota Department of Natural Resourced. Letter received June 3, 2009. Comment 5-1: The commenter asks that the required shoreland setbacks and how these requirements are being met, especially on the east end of the proposed Project be discussed in detail. Response: The city of Cloquet is responsible for the adoption and implementation of shoreland rules and regulations. To date, the City has not adopted a shoreland ordinance. However, the City zoning ordinance does include a floodplain ordinance (185A). The EAW addresses the city of Cloquet floodplain ordinance under Item 14. The Cloquet floodplain ordinance states that all structures, including accessory structures and additions to existing structures, shall be constructed on fill so that the basement floor, or the first floor if there is no basement, is at or above the regulatory flood protection elevation (RFPE). Sappi intends to construct the new paper building at an elevation that is equal to or above the RFPE, in compliance with state and city rules. The proposed Project will occur within the footprint of the existing mill property. The National Pollutant Discharge Elimination System (NPDES) Stormwater Construction Permit and Stormwater Pollution Prevention Plan (SWPPP), and erosion and sedimentation control measures will minimize significant impacts from the proposed Project. Significant impacts to the St. Louis River and other water bodies are not anticipated.

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Sappi Cloquet New Paper Machine Project Responses to Comments on the Cloquet, Minnesota Environmental Assessment Worksheet

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Comment 5- 2: The commenter asks if additional water intake points would be established along the St. Louis River. If yes, please provide additional information on the intake facility and proposed methods to prevent fish entrainment. Response: No new water intakes are proposed. Comment 5- 3: The commenter asks that the volume and temperature of the discharge waters and whether it has the potential to affect the ambient temperature of local portions of the river be provided to the Minnesota Department of Natural Resources (DNR) for review. Response: No water is proposed to be discharged to the St Louis River. The 0.5 million gallons per day of fire water and noncontact cooling water is currently, and will be in the future, discharged to the Western Lake Superior Sanitary District. Comment 5- 4: The commenter stated that it would be useful to know the typical and historical low flows in the St. Louis River during such events, and whether the increased withdrawals could affect critical minimum flows. The DNR requests additional detail on the volume of these withdrawals, specific time of the year of their occurrence, concurrent flow volume of the St. Louis River and contingency plans developed for protecting the flow regime of the St. Louis River. Response: These withdrawals are currently permitted at the facility and do not change as a result of the Project. Comment 5- 5: The commenter stated that it would appreciate the presentation of a more detailed summary of the Stormwater Pollution Prevention Plan (SWPPP). The traditional approach to treat stormwater has been to promote its rapid movement from affected surfaces. The prevailing rainwater management philosophy and approach is to collect, concentrate, convey, centralize and control runoff through the use of stormwater sewers, pipes and ponds. Unfortunately, after many urban areas implemented this expensive approach, research has indicated that the strategy does not work very well. Furthermore, problems are often created for downstream areas. The treatment of water as a waste product instead of a resource discounts the importance of a functioning water cycle where precipitation is absorbed into ground surfaces where it falls. In general, the quality of runoff improves by increasing the size of infiltration area provided at the development site. Response: The existing mill has an existing, approved SWPPP. As part of the proposed Project, the SWPPP will be updated to include planned stormwater management practices for the new paper machine building, new finishing complex, and associated parking areas. New stormwater infrastructure will be installed to collect and transport runoff from the new buildings and parking areas including catch basins, storm sewers, vegetated swales, berms, and detention basins as needed. The city of Cloquet recently adopted an erosion control and stormwater management ordinance. The ordinance states that all SWPPPs for development sites must be submitted to the City for review. The revisions to the SWPPP will not be made until the final design for the project is complete. The DNR’s comments will be considered when the SWPPP is updated. The updated plan will be submitted to the city of Cloquet for review and approval prior to implementation. After addressing comments from the City, the SWPPP will then be submitted to the MPCA as part of the application for the NPDES Stormwater Construction Permit.

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