June 17, 2014

 

Re: Resolution No. 14-06-18; Consent to a Business Oregon Application Changing the Enterprise Zone Boundary

 

Lake County

513 Center Street

Lakeview, Oregon 97630

 

Town of Lakeview

525 North 1st Street

Lakeview, Oregon 97630

 

South Central Oregon Economic Development District

P.O. Box 1529

Klamath Falls, Oregon 97601

 

Dear Commissioners and Councilors:

 

Thank you for the opportunity to provide you with my comments regarding Resolution No. 14-06-18; A Resolution of the Lake County Board of Commissioners Consenting to a Business Oregon Application Changing the Enterprise Zone Boundary in the South Industrial District.

 

My concerns relating to your proposed action are both the adequacy of the 30+ year old Lake County Comprehensive Land Use Plan (CUP) and its relationship to the Town and County efforts regarding the United States Environmental Protection Agency Particulate Matter Advance Program and Town of Lakeview PM Advance Action Plan.

 

I believe that while it is true that such an annexation may create new job opportunities for our citizens and enhance our property tax base, it is also true that such an annexation may exacerbate existing air quality issues we are currently working hard to mitigate, thereby harming the health and welfare of our citizens.

 

1.  The Lake County Comprehensive Land Use Plan is Outdated

 

There is a shelf life of any planning document. Generally, planning documents that provide an overall, long-term, “vision” are thought to have a 20-year life. However, such a plan can be revisited in less a time frame, particularly if circumstances have substantially changed. Comprehensive planning documents can help a community work toward common goals, avoid potential social and environmental pitfalls associated with growth, and allow a community to sell themselves to their State, Country and World.

 

The CUP is over 30 years old, with a publish date of 1983. I believe there has been substantial change in the community during that timeframe.

 

Industries that were once prominent are no longer, population changes have occurred, government tax forbearance through land use decisions like this being proposed (but not included in the current CUP) have already been enacted, tax expenditures on behalf of outside entities in the form of Municipal Utility Districts have increased, and external mandates like Clean Air and Water Act compliance have placed additional pressures on both the residents of the community and current and future industrial enterprises.

 

I question the adequacy of the incremental nature of constant amendments being offered and approved as part of the CUP. I argue that the County is acting arbitrarily and capriciously, practicing the inexact art of incrementalism. Such incrementalism inherently creates unintended consequences – in the case of this annexation being considered working against Town of Lakeview air quality mandates as per the Clean Air Act.

 

The economy of Lake County and the Town of Lakeview has shifted in the last 30 years. Instead of timber extraction, Lake County and the Town of Lakeview are well situated for the “new economy” of sustainable energy development. This shift creates different pressures on land use, property rights, government expenditures and commitments, human health, and environmental mitigation, conservation and preservation efforts.

 

In the case of this annexation, the addition is being made at the request of Redrock Biofuels and gives them tax breaks to develop the site. Red Rock Biofuels plans to use 140,000 tons of woody biomass to create 14 million gallons of jet fuel for military use. They have received $4.1 million in Defense Department funds for their venture.

 

The proposed annexation is to the south of the Town of Lakeview and contiguous to the existing South Industrial District / Enterprise Zone – upwind from the predominant direction. Any industrial development in this area that produces fine particulate matter of any quantity will exacerbate air quality problems in the Town of Lakeview. The very concept of industrial emissions to the south of the Town of Lakeview and any further encouragement of development in this area needs to be reconsidered, best addressed through a completely updated CUP.

 

Red Rock Biofuels is neither the only development being proposed nor where impacts need mitigation:

 

•  The Town of Lakeview has already embarked on the development of several, unauthorized by taxpayer, Municipal Utility Districts – most recently taking out millions in dollars in loans and impacting the water rights of Mr. Phil Blythe of what was once known as “stinking corner” on U.S. 395.

•  The Town of Lakeview is currently in the process of a “government taking” of Mr. Andy Parker’s property rights to develop yet another geothermal district, utilizing both a Town developed geothermal well that now serves the Warner Creek Correctional Facility and another yet to be long-term leased where there is conflict with two existing private geothermal wells.

•  Additional geothermal development has occurred both at Paisley and in the Adel area. ORMAT has purchased additional leases in the Warner Valley area.

•  The Town and County have authorized large solar arrays (largest in Oregon) through CUP amendment; property rights issues were also at play in this development to the southwest of the Town of Lakeview. Another solar array has been proposed for North Lake County at the former military “Backscatter” radar facility.

•  Iberdrola Renewables has been permitted to construct several very large structures as part of a biomass energy project on top of an aquifer contaminated by uranium milling activities - through amendment and variance allowance.

•  Reuse of the former Lakeview Uranium Millsite is a US DOE priority with geothermal giant ORMAT and solar industries showing interest. Tax breaks on several governmental levels would better be spent developing that potential to promote these truly sustainable sources of energy.

•  The Ruby Pipeline has since been built allowing for the addition of natural gas to be utilized in the Town of Lakeview. Physical presence on the land and tax base issues aside, the Town of Lakeview, Lake County, Red Rock Biofuels and other industrial sources have plans for developing a gas spur into Town.

•  Threatened and Endangered Species have been warranted / dedicated since 1983 and the CUP does not reflect land uses that are incongruent with their recovery plans. The Goose Lake fisheries, several plants and insects, and more recently mitigation efforts for Sage Grouse are examples.

 

All of the above has occurred since the development of the current Lake County General Plan. Those that have been developed have been approved, incrementally, through amendment. In many cases, property rights and environmental issues were involved. Costly litigation has been and will be encountered. These legal issues could have been addressed and mitigated through an updated County General Plan.

 

We still struggle to mitigate the toxic legacy of past economic activities with land use restrictions being added to the CUP through amendment. For example, the Lakeview Mill Uranium Mine Tailings Remediation Act site has been remediated since the development of the General Plan and the impacts of the contaminated aquifer were addressed, incrementally, through amendment. That impact is a 4 ½ deep water table that is contaminated with the byproducts of radioactive materials and a prohibition of domestic water wells in a defined area north of Lakeview and that contains the industrial park north of town.

 

The issue for today is a different contamination pathway. Less domestic use and more industrial use that results in surface contamination. For example, Collin’s Forest Products operates on top of that contaminated aquifer and may be using contaminated water for log yard dust and fire control purposes. Iberdrola Renewables will be digging footings to support structures of up to 150 feet in height. These footings will be substantial and require contaminated water to be excavated/pumped into the environment, providing a contamination pathway that will affect the health of those working on site and of the environment of Thomas Creek and beyond.

 

And, because Iberdrola cannot get water for their biomass electrical generation processes from their site, they have entered into an agreement with the Town of Lakeview to provide it to them (a similar agreement in place for the Warner Creek Correctional Facility) – putting the domestic water needs of town residents at risk.

 

It is my contention that, along with less cost associated with a natural gas spur, the proposed annexation to the South Industrial District for Redrock Biofuels is precisely because of these water quality issues. They cannot collocate with Iberdrola, Collins and Cornerstone in the North Industrial District due to costly water quality concerns. Even so, they, too, will likely require Town of Lakeview water and sewer service with this annexation to the South Industrial District.

 

In short, there has been substantial change to our County’s land use, policy, government commitment and expenditure for economic development, and a much different set public health and environmental impacts.

 

We now know that water quality at the North Industrial Area and air quality issues associated with the South Industrial Area may deem BOTH areas unacceptable for development. Perhaps, our “enterprise” efforts for industrial development should be redirected to an area with fewer impacts to mitigate.

 

I believe Lake County has a responsibility to immediately embark on a process to update the CUP. I contend that any further land use amendment action by the County without fully updating the CUP is reason for appeal to the Land Use Board of Appeals – particularly when substantial change with substantial potential impact is being incrementally approved through amendment. I believe that this appeal would not only be in the best interest of the people of Lake County but to the people of the State of Oregon.

 

Finally, the proposed annexation area includes seasonal wetlands that would be negatively impacted by any industrial development. Migratory birds of all type use the proposed area, including geese, ibis, cranes, and many others. Because this is wetland, any land development change would need to be reflected in the CUP – either through amendment or through complete update.

 

That said, even the current 2007 Lake County / Lakeview Enterprise Zone is not included in the CUP. I suppose such a thing could be included via amendment; however, I would argue that this best illustrates the need for a completely updated CUP.

 

All planning documents have a useful shelf life. There has been substantial change in Lake County. Thirty-plus years to update the CUP are far too long.

 

2.  Annexation Illustrates “Bad Faith” Concerning PM Advance Program and Action Plan

 

My comments regarding the draft PM Advance Action Plan related, in part, to how current and, in particular, future industrial point source polluters like Redrock Biofuels will be treated during the life of the Action Plan. Furthermore, I attended all of the public meetings regarding the development of the PM Advance Action Plan and there was never any discussion regarding annexation of land for the development of a additional industrial point source polluters – much less that source being located upwind of the Town of Lakeview.

 

The annexation decision and approval of the PM Advance Action Plan on the same day, combined with the lack of inclusion in the Action Plan of the known interest of Redrock Biofuels and their siting decision, in my mind illustrate that both the Town of Lakeview and Lake County have acted in “bad faith” regarding their involvement in the EPA PM Advance Program.

 

There are air quality impacts to the further development of the industrial park to the south of the Town of Lakeview. As stated earlier, the proposed annexation is to the southwest of Town – exactly from the predominant wind direction. Furthermore, any industrial development in this area that produces fine particulate matter of any quantity will exacerbate air quality problems in the Town of Lakeview. Because Lakeview already violates PM 2.5 Clean Air Act standards with a three year average of 47 micrograms per cubic meter, ANY additional source of PM 2.5 cannot be allowed – particularly with the case of Sierra Club v. EPA (1/13) that invalidated the use of Significant Impact Levels (SILs). Even Oregon Department of Environmental Quality admits as much in the Final PM Advance Action Plan and Response to Public Comments.

 

At a minimum, the PM Advance Action Plan should not be approved at this time. The Plan needs to be reopened with the annexation and siting of Redrock Biofuels addressed and modeled. It is my position that if the PM Advance Action Plan is not revisited in such a manner, the U.S. EPA should revisit their allowance of the Town of Lakeview to be included in the program.

 

Conclusion

 

During the PM Advance Action Plan meetings I raised the concern about annexing the area south of 9th Street to Kadrmas Road, citing not only the ability to control air quality issues but also to protect the health and safety of those residents who do not have Town water and sewer. Real estate folks tell potential buyers to not buy south of 9th because of the water sanitation and quality problems, as each town-sized plot needs its own domestic well and septic. This is a very real public health issue that needs to be addressed by Town and County government.

 

During that meeting, I was told by Commissioner Kestner that a vote from the public for annexation needed to take place and that the Town and County cannot just make it so. If a vote were required in that instance, why is a vote of the County residents not required for this 90-acre annexation proposal? This is yet another reason why our CUP needs a complete update.

 

I appreciate the opportunity to respond to this very important issue. In my view, this annexation request best illustrates the need to fully update the CUP. It also illustrates the need to revisit the contents of the yet approved PM Advance Action Plan to make this industrial development area congruent with those air quality goals.

 

We have a great place with a great future. Our latent potential to recruit the industries of the future - those that pride themselves on sustainable business practices and on giving their employees an outstanding quality of life - cannot be matched throughout the State and, perhaps, the Nation.

 

In my view, we need a coherent and common vision, one that provides for careful consideration and mitigates impacts to the health and livability of our community and environment before those impacts occur. This is the very purpose of Comprehensive Land Use Plans.

 

In the name of jobs at any cost, we did not do this in the past and are now suffering the consequences to our quality of life. Understand that some so-called “sustainable” energy sources can very well be unsustainable for the health of the residents of our community and of the physical and economic environment of the Town of Lakeview and of Lake County. Like all real estate, costs and benefits are all “location, location, and location”.

 

Let’s not make the same mistakes again.

 

For the reasons stated, above, I ask you to not approve Resolution No. 14-06-18.

 

Sincerely,

 

 

 

Chris Zinda

11839 Highway 395

Lakeview, Oregon 97630

541/947-2284

 

Cc:

 

Paul Kaprowski, U.S. EPA

Justin Spinello, U.S. EPA

Larry Caulkins, Oregon DEQ

Mr. Andy Parker, Lakeview, Oregon

Mr. Phil Blythe, Lakeview, Oregon