State of Florida Takes Steps to Prevent Another Piney Point

As plans are finalized to barge treated wastewater from the Piney Point facility near Port Manatee out into the Gulf of Mexico (see related story page 12), the Florida Department of Environmental Protection is proposing new rules that strengthen financial requirements. Phosphate companies will have to prove that they can cover the full cost of closing stacks, including removal of acidic water from the stacks, and submit to periodic reviews of those closure estimates.

Companies that lack sufficient funds would be required to purchase a bond or insurance policy to cover the difference, said Janet Llewellyn, DEP deputy director of water resource management.

DEP postponed its rulemaking procedures until after this spring’s legislative session because bills on the issue had been filed in both the House and Senate. Even with industry support for increased severance taxes and approved bills in both houses, legislation died in conference committee. “Absent new legislation, we’re moving forward with public review and comment on the rule changes we already have authority to implement,” Llewellyn adds. “It’s a slow process but we hope to have the rules in place by the end of the year.”

The proposed rules, which are still pending industry input, are expected to call for:

• Periodic adjustments to estimated stack closure costs, including treating and removing water
• Immediate notification of changes in debt obligations, an action which is not currently required
• Strengthened financial ratio requirements that track a company’s cash flow to ensure that liquid assets are available to cover the costs of closing the stacks in a worst-case scenario
• Establishment of a “danger zone” process requiring companies that lack sufficient liquid assets to immediately develop a stack closure plan and identify funding sources. Companies that come up short may be required to purchase a bond or insurance policy to cover the difference, and submit unaudited financial statements on a quarterly basis.

Phosphate companies have been involved in the rulemaking process, and generally support them, Llewellyn adds. “But they’re not completely comfortable with all the recommendations, so there will be some discussion.”

Legislation Expected to Expand Protection, Cover Clean-up Costs

While no significant legislation was passed on this issue this year, an additional $45 million was authorized from the industry-funded Non-mandatory Land Reclamation Trust Fund for clean-up initiatives at both Piney Point and its sister plant near Mulberry.

“We’ve addressed the finance problems for this year, and I’m confident that we’ll be able to pass legislation next year,” said Rep. Jerry Paul, R-Port Charlotte. House and Senate leaders crafted a compromise bill after the first session ended that would have raised severance taxes from $1.32 to $1.62 per ton to replenish the trust fund, and strengthen financial requirements beyond what DEP can accomplish through rulemaking.

Key elements in the plan call for designating a greater portion of the trust fund for clean-up costs and requiring that companies meet stringent financial assurances before they open new phosphogypsum stacks or phosphate mines.

“The mining requirement was a negotiated point, but I thought it was important to the state,” Paul said. The bill also calls for spending about $2.7 million from the industry trust fund for a $70 million insurance policy that would protect taxpayers if another fertilizer manufacturer hits hard times.

Additionally, the legislation would give DEP authority to step in earlier if necessary. “Current statutes give us some authority to go in and abate imminent hazards on a site,” Llewellyn said. “The new legislation would have clearly stated that failure to meet financial tests would qualify as an imminent hazard, so we don’t have to wait until there is about to be a spill.”

The legislation also holds individuals who do not comply with DEP rules more accountable, making it possible for them to be charged with a third-degree felony punishable with a fine of up to $50,000 and five years of imprisonment.

“In some ways, I’d like to go further, but this should make people think more carefully,” said Senator J.D. Alexander, R-Lake Wales. “It’s really criminal that they just left the taxpayers with a $160 million clean-up bill, and we can’t allow that to happen again.”

While environmental attorney Tom Reese hasn’t seen the proposed rules, he supports legislation that provides for industry-paid insurance coverage and criminal liability for individuals involved. “Having coverage the industry paid for is a major step forward,” he said.

Water Disposal Efforts Continue at Piney Point

As state officials work to prevent another Piney Point from occurring, efforts to cope with 1.2 billion gallons of toxic wastewater continue at the abandoned fertilizer plant that has been called one of the biggest threats ever to Florida’s environment.

Up to 1.67 million gallons per day of treated water is being released into Bishop Harbor so storage capacity in the phosphogypsum stacks has grown slightly in spite of near-record rainfall. Careful monitoring of Bishop Harbor indicates only minimal impacts in the pristine estuary, says Robert Brown, Manatee County’s water quality administrator.

“They’ve kept the (nitrogen) loadings within limits that allow the system to stay static,” Brown said. “The aeration ponds keep the ammonia levels low and chlorophyll levels in Bishop Harbor are high but not to the point that we’re seeing an algae bloom. It’s ironic, and we’re all amazed, but we’re validating the computer model.”

The water being released from Piney Point has been treated by reverse osmosis or a “double lime plus aeration” process that normalizes acidity and removes most nutrients. After treatment, the wastewater is actually very similar to reclaimed water that many Tampa Bay residents sprinkle on their lawns, according to the Florida Department of Environmental Protection. Although salt levels are higher, they’re much lower than seawater, and levels of heavy metals are below surface water standards.

While the Bishop Harbor disposal and other uses by a variety of partners alleviated short-term concerns, they can handle only a small portion of the water stored at Piney Point. Over the long-term, the DEP struck a deal with federal regulators and local fishing organizations to dispose of up to 534 million gallons of treated water in the Gulf of Mexico.

The treated water will be barged at least 40 miles offshore to an area that extends nearly 20,000 square miles with an average depth of 130 feet. DEP will monitor the area with satellite imagery and a tracking buoy that provides data on gulf currents, and each barge will carry a DEP professional to watch for changes in water quality. A two-mile pipeline to Port Manatee was completed in late June and DEP expects to begin barging treated water by mid-July.

“It’s a real balancing act,” says Brown. “We don’t like barging it to the gulf, but we can’t dispose of any more in Bishop Harbor, and we have to have adequate discharge to close the plant.”

In a worst-possible scenario, if efforts to dispose of water were halted, the untreated water could breach the dikes and spill across U.S. 41 and into Bishop Harbor and Tampa Bay. Highly acidic and slightly radioactive, that water could cause a massive fish kill and severe environmental damage.