RYAM threats result in No Ethanol Fernandina dropping challenge of bioethanol air permit

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In an unexpected turn of events, local activist Tom Budd has withdrawn his petition challenging Rayonier Advanced Materials' (RYAM) air permit for a proposed bioethanol plant on Amelia Island.

Budd's decision came after he received notice that RYAM was planning to seek to recover its legal expenses - estimated at $300,000 - from Budd by filing a "motion for sanctions" that included claims the air permit challenge was frivolous.

Budd's petition, allied with the grassroots organization No Ethanol Fernandina, had successfully won an administrative hearing to contest the Florida Department of Environmental Protection's issuance of a draft air permit for the bioethanol facility planned at RYAM's existing Gum Street cellulose plant complex.

The administrative hearing had been scheduled in Fernandina Beach Nov. 18-20.

"It just shows what corporations can do, what the powerful can do and how they can squash a legitimate effort and scare people and that's what they (RYAM) did," said retired chemical engineer Medardo Monzon, who was No Ethanol Fernandina's subject matter expert.

RYAM is seeking to build a bioethanol plant that would produce 7.5 million gallons of bioethanol per year. RYAM officials said it is a $50 million project.

Budd cited legal pressures and representation challenges in his decision to withdraw the petition.

According to his email statement to volunteers, RYAM threatened sanctions that could have resulted in his being responsible for paying RYAM's attorney fees.

Budd had filed his petition last April, requesting an administrative hearing be conducted stating, "This project did not meet these applicable statutes and regulations required for preconstruction review." Specifically, the petition questioned the accuracy of air emissions data submitted by RYAM in its air quality permit application to FDEP.

In its draft motion for sanctions, RYAM said ,"However, it is now apparent that Mr. Budd and his counsel are participating in this hearing for an “improper purpose.” As such, RYAM seeks attorney’s fees and costs pursuant to sections 57.105, 120.595, and 120.569(2)(e), Florida Statutes." The petition was signed by RYAM's environmental litigation attorney Frederick Aschauer Jr. of Tallahassee.

"I was threatened, by RYAM, with sanctions to pay their attorney’s fees if we did not withdraw.  Our attorney counseled us to do so immediately," Budd said in his email.

Tom Budd
Tom Budd

The attorney, Ralf Brooks, told Budd that he was stepping down from the case because of the risk of the threatened sanctions.

Despite receiving encouraging opinions from several other legal experts about the merits of the No Ethanol Fernandina air permit challenge, Budd found himself unable to secure adequate legal representation after his original attorney withdrew.

"It is vitally important that no one views this disappointing news as a RYAM win," Budd stated in his announcement. He emphasized that the real battle over the bioethanol plant would likely shift to the city level, particularly regarding building permit applications and compliance with local comprehensive planning requirements.

The administrative hearing would have examined whether RYAM's air permit application contained inaccurate data and misleading information. Budd indicated that while this particular challenge has ended, the broader community discussion about the plant's future in Fernandina Beach, a popular resort destination with more than a million visitors per year, is far from over.

"The No Ethanol Administrative Hearing was asking FDEP to look at hazardous emissions and air quality issues. We were trying to protect our community by requiring RYAM to have to use the best and most modern air pollution control devices available. But I guess when you’re a corporation in a position of power -- you use it. They think they've silenced us, but NEF and community concern won’t be going away," said No Ethanol Fernandina's Julie Ferreira.

No Ethanol Fernandina plans to regroup after the upcoming city commission elections to discuss new strategies for engaging with the city's decision-making process regarding the proposed facility.

RYAM project manager Mark Homans said the company will prove that bioethanol production is not chemical manufacturing, which is prohibited in the city by the Comprehensive Plan and Land Development Code.

The city charter puts the decision-making authority with the city manager on whether to issue RYAM a building permit to allow construction of the bioethanol plant. Sarah Campbell is the new city manager who starts work on Nov. 18.

Budd has called for continued community involvement, stating, "I'm going to stay in this fight. We're going to have our volunteers meeting with the folks who have worked on this and find out if there is a consensus on how to move forward."

Budd advocates a strategy moving forward "that should be to launch a new and robust campaign to help our city make the right decision when that time comes. We need to continue to rally support and public pressure on the city commission to understand how significant this is and continue that effort until they have to make that decision."