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Jefferson County Foundation sends Notice of Intent to File Suit

Ranson is administering the Northport Avenue road extension construction project — the road to Rockwool — for the West Virginia Department of Highways without a valid construction stormwater permit. The project has been inspected by the West Virginia Department of Environmental Protection (DEP) three times and each time, Ranson has had violations. Jefferson County Foundation filed a Notice of Intent to file suit on Friday, August 7. “Our hope is that Ranson will apply for a valid Construction Stormwater General Permit Registration (CGPR) under the 2019 General Permit,” states Foundation president, Christine Wimer. “We want the DEP to require Ranson and all such entities to obtain a valid construction stormwater general permit registration. And we want the EPA to require the DEP to abide by the EPA’s objection to the DEP allowing entities to continue to operate under the invalid and less protective 2012 permit.”

Background:

The Northport Avenue extension is a project administered by the City of Ranson for the West Virginia Department of Highways (WVDOH) to extend the road and utilities in front of Rockwool. It comprises approximately 0.65 miles (or approximately 3200 LF) of a multimodal Urban Local Road and utilities that will extend the existing Northport Avenue from West Virginia Route 9 to the northern boundary of the former Jefferson Orchards parcel with a reported limit of disturbance of 24.4 acres.

Ranson accepted bids for this project from February 13, 2019 to March 11, 2019. The project was awarded to Jefferson Asphalt on April 2, 2019 by a vote of the city council (Resolution #2019-13 – A Resolution of the City Council of Ranson, West Virginia Approving a Contract with Jefferson Asphalt for the Construction of Northport Avenue).

Permitting:

A Construction Stormwater General Permit Registration (CGPR) has been applied for three times for this project by the City of Ranson.

The CGPR application was first applied for, for this project on July 23, 2018 under the 2012 Construction Stormwater General Permit (CGP). This application was terminated on December 14, 2018, by the DEP for lack of response by Ranson to DEP requests.[1]  Ranson started a second Construction Stormwater General Permit Registration application on January 9, 2019. The permit was issued less than a month later on February 6, 2019. In this application, it was stated that construction would start on February 1, 2019 and end by December 31, 2019. As this was less than one year, no public comment or public notice was provided for.

The last (chronologically) comment from the permit reviewer on February 5, 2019 stated:

“The re-issued permit, WV0115924, effective February 9, 2019 requires that all BMP’s listed in the application are required to be ENHANCED BMP’s. This permit can [be] found on our website:”

“All permits issued between Feb. 9, 2018 & Feb. 9, 2019 will be given an opportunity to submit a form stating that they will be following the new permit.

This permit application has shown that “silt fence” will be used rather than the Enhanced BMP “Super Silt Fence” or “Belted Silt Fence”. Please replace these in your application and make this correction on all of your maps and narrative showing that the Re-issued Permit will be followed.”

Clearly it was the intention of the DEP to approve the permit by February 9, 2019 to afford the city of Ranson the opportunity to qualify for this provision, and allow Ranson to avoid applying under the 2019 permit. This comment was at least partially addressed by the city. In the SWPPP, 4 of the 11 times that silt fence is referred to, it was updated to belted silt fencing. However, the much larger issue here is that the permit reviewer incorrectly implies that the only difference between the 2012 and 2019 is the Enhanced BMP. This is an egregious oversimplification. Most notably, this project would have to have a stand-alone project specific GPP (Groundwater Protection Plan) with a Karst Mitigation Plan. This was not done.

Nevertheless, after issuance of the permit registration on February 6, 2019, this project was not started in February as initially planned.

On June 7, 2019, a reissuance of the registration under the 2019 permit was applied for and granted on September 11, 2019. This application was incomplete with only 7 out of 20 sections submitted and provided for; no substantive changes to the actual stormwater handling. The only two changes were to the signature page, now referred to the 2019 general permit, and the timeline was lengthened to over one year. No actual review of this application seems to have been done with no comment or applicant comments recorded, and no record of review in the application tracking page.

The City of Ranson is now operating this project under this reissuance and has incurred multiple violations.

Northport Avenue: A Timeline

July 23, 2018

1st Construction Stormwater General Permit Registration (CGPR) Application

Ranson applies under the 2012 Construction Stormwater Permit

July 23, 2018
December 18, 2018

Application Terminated by the DEP

This application was terminated on December 14, 2018, by the DEP for lack of response by Ranson to DEP requests.

December 18, 2018
January 9, 2019

2nd CGPR Application Submitted by Ranson

Ranson started a second Construction Stormwater General Permit Registration application on January 9, 2019

January 9, 2019
February 5, 2019

DEP Requests Permit Correction

The DEP makes several comments on the permit about making Best Management Practices (BMPs) into ENHANCED BMPs, including comments about silt fencing and signing a statement that the permitee will follow the new 2019 guidelines.

February 5, 2019
February 6, 2019

DEP Approves the Permit Registration under 2012

The permit stated that construction would start on February 1, 2019 and end by December 31, 2019. As this was less than one year, no public comment or public notice was provided for. However, this project was not started in February as initially planned.

February 6, 2019
June 7, 2019

3rd CGPR Application by Ranson

Ranson completes only 7 out of 20 sections, extends construction timeline to over one year.

June 7, 2019
September 11, 2019

DEP Approves Permit Registration under 2019

No change to registration materials from the 2012 application. No actual review of this application seems to have been done with no DEP comment or applicant comments recorded, and no record of review in the application tracking page.

September 11, 2019
February 6, 2020

1st DEP Inspection and Notice of Violation Issued

The DEP goes to the site to inspect and writes up a notice of violation for several issues. They were found to have sediment-laden water leaving the construction site.

February 6, 2020
March 11, 2020

2nd DEP Inspection

Some issues noted in February appear to be unresolved.

March 11, 2020
May 14, 2020

3rd Inspection and Notice of Violation

Ranson repeatedly has the same violations.

May 14, 2020

Issues:

The DEP seems to have rushed Ranson’s registration application for this project such that Ranson would avoid having to reapply under the 2019 permit. The DEP did so by approving the permit registration just two days before the deadline and less than 30 days after the application was first initiated. Only a cursory attempt was made 24 hours before the application was approved to bring it up to the standards of the 2019 general permit. Only a few words were changed and no substantive changes were made. Most notably, a Karst mitigation plan was not required. Several months later, prior to the start of construction, the permit was reissued under the 2019 general permit with no change to the substance of the application. The only change was to the timeline, which was lengthened from 11 months to more than 13. No public notice or comments were performed, as required by the permit conditions of the 2019 (and 2012) permit. Here in this case yet again we have no public notice and an end run around the 2019 permit conditions.

Though Ranson has a registration under the 2019 CGP, they do not have the required elements of that registration including a site-specific groundwater protection plan and a karst mitigation plan. Without these critical components Ranson is unable to meet the requirements of the 2019 and is effectively operating under the 2012 permit conditions. Therefore Ranson’s registration is invalid, and they are operating a construction project in violation of the Clean Water Act. Jefferson County Foundation hopes this letter persuades Ranson to apply for a valid registration under the 2019 permit, the DEP to require Ranson to do so, and the EPA to force the DEP to stop allowing entities to operate under the 2012 permit conditions.

Site inspection and violations:

The site has been inspected three times (February 6, March 11, and May 14) and incurred two notices of violations (February 6 and May 14). They repeatedly have the same violations and have even been found to have sediment-laden water leaving the construction site. Despite the warnings and violations Jefferson Asphalt seems unable to correct the errors. For example, they have been cited all three times for not having an outflow marker (permit cite evaluation number 4). Not only are they operating without a valid CGPR, but they are incurring multiple violations endangering the water resources of the county and region.


[1] Quoted directly from the Application Milestones page of the application RANSON, CITY OF New NPDES/State Storm Water Construction #1    WVR110004

Rebutting the recent article in the Spirit of Jefferson on July 1, 2020

The Spirit of Jefferson published another Rockwool propaganda piece on July 1, 2020, with no apparent regard for the facts and no effort made to cite real sources. Here is our fact-based rebuttal. 

120 vs. 150 Jobs

In May of 2019, Rockwool finalized a deal with the West Virginia Economic Development Authority (WVEDA). This deal was a bond lease agreement in which the WVEDA will take ownership of Rockwool’s land and property for 10 years, which means Rockwool will not need to pay property tax during that time. The WVEDA also promised Rockwool up to $150 million in loans fulfilled with state-backed bonds. When it came time to sign the agreement on the dotted line, Rockwool was willing to commit only to “120 full-time equivalent jobs.” And in another WVEDA deal, this time in November 2019 to obtain state help to pay for its water lines, Rockwool again committed only to “120 full-time equivalent jobs.” That is one-fifth less than the 150 jobs the July 1 article claims.

Good paying jobs? Depends on your math.

Figure 1. Source, City of Ranson, West Virginia Proposed Fiscal Year 2017-2018 Budget

The article also repeated a claim of Espinosa, who apparently said that Rockwool would “generate” between $500,000 and $750,000 in taxes to Ranson a year. It would be very interesting to know what taxes these would be. According to Ranson’s 2017-2018 budget, the Revenue for the General Fund has three major sources: the Ad Valorem or property tax, B&O tax, and the 1% sales tax (Figure 1). With the execution of the WVEDA bond lease agreement as discussed above, Rockwool will have no property tax obligation and therefore, Ranson will collect no Ad Valorem Tax from Rockwool. The 1% sales tax is collected on retail sales and since Rockwool will have no appreciable retail sales in Ranson it therefore will not generate revenue for Ranson through the retail sales tax. B&O tax is also assessed on sales. The plant in Ranson is a manufacturing operation and Rockwool’s sales will likely be made from their headquarters in New Jersey. Therefore, Ranson is unlikely to collect any B&O tax from Rockwool either. The remainder of the taxes that round out the revenue for the Ranson General Fund are Hotel-Motel Tax, Fines and Fees, Charges to Other Funds, Garbage Service, Utility Tax, and Wine and Liquor. It is not plausible that Rockwool will be contributing significantly to any of these revenue streams. Where will this half- to three-quarters of a million dollars in tax revenue from Rockwool come from?

Paul Espinosa, public affairs manager for Rockwool Ranson and current member of the West Virginia House of Delegates (representing District 66), is cited as claiming that Rockwool’s employees will make on average $42,700 a year. This is a notable reduction from what was promised. A 2017 Deloitte economic impact study we obtained via FOIA, which was used to convince local leaders in the JCDA and elsewhere to support Rockwool, claimed the average yearly salary would be $46,611. Espinosa’s claim thus represents a surprising $3,911 per year reduction, or a more than 9% lower average pay from what was promised. Worse yet, according to the Deloitte economic impact study, paid for by Rockwool, the majority of workers (117 of them) will make an average of $31,000 a year – nowhere close to the $46,611 a year that was used to woo our public representatives.

$750,000 vs. nearly nothing


Figure 2. Source, Deloitte Economic Impact Study: Project Shuttle

It is likely that by “generate” Espinosa was slyly referring to “Indirect and Induced taxes” not taxes Rockwool will actually pay. This calculated estimated, explained in the Deloitte study, considers taxes generated by “business-to-business and household expenditure activities arising from the direct impact of Rockwool’s operations”. The issue is as explained above these business-to-business transactions will not occur in Ranson to any significant extent, because Rockwool’s suppliers are outside of Ranson. Similarly, the employees of Rockwool’s suppliers likely live nearer to those businesses and pay taxes there. Further may of the taxes taken into consideration in this calculation are state and federal not municipal taxes as can be seen in table 8.

The article also published Rockwool’s claim that for the first 10 years Rockwool will pay $40,000 in property and “other taxes.” Is Espinosa referring here to a payment in lieu of taxes? If so, we note that no payment in lieu of taxes is called for in the May 2019 WVEDA deal (which simply absolves Rockwool of their property tax burden altogether for a decade) and no other agreement providing for payments of this type can be found. And the article fails to say that only a minor portion (17%, according to the 2019 levy rate sheet) of this property tax money would go to Ranson no matter how much is paid. 

Unexplained projections?

Espinosa further touts a $21.8 million yearly increase in economic activity in the county and claims that $5 million of that will be in Ranson. Frankly any rational consideration of this representation indicates it is impossible. What goods will Rockwool purchase in Ranson? There are no quarries in Ranson, no coal mines, no fracking pads, no formaldehyde concentrate dealers, no liquid oxygen suppliers – so what is Rockwool buying in Ranson to produce this $5 million impact? It is not plausible that this will all come from employee spending in Ranson. Even if every employee spent every last dollar they made after taxes and Rockwool indeed paid out $6.4 million in payroll it would not amount to $5 million in impact. This is just another in the long line of misleading and easily disproven claims to be made by Rockwool in its efforts to bring heavy industry to Jefferson County. 

Ranson has decided to continue the hearing on a different date. They did vote on June 23 as reported from several sources. However, they will not act on this vote. They will hear the remainder of the speakers at a different time and then vote again. They are going to allow members of the public to speak who were not able to tell it was their turn. This meeting will be on the Tuesday, June 30 at 7:00 p.m.

Jefferson County Foundation would like to thank Billie Garde, our in-house lawyer and board member, for all of her hard work on this into the late night last night and this morning. Your leadership and dedication are inspiring and we are all grateful!

HOLD THE LINE!

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