KINGSPORT — The Kingsport Economic Development Board approved a preliminary bond resolution Tuesday that would aid in Domtar’s odor mitigation efforts.
The resolution states that the bond would be a maximum of $55 million to provide financing for the wastewater treatment facilities including the anaerobic digester.
KEDB unanimously voted to approve the resolution to move the project along. Jay Moneyhun, bond counsel for the transaction, said that the preliminary approval will help Domtar get federal assistance.
“The state ECD gets a certain amount of tax exempt bond authority from the federal government each year and allocates it to eligible projects,†Moneyhun said. “This is an eligible project for tax exempt financing, but in order to apply to ECD for bond allocation, we have to get a local bond issuer, such as this board, to give a preliminary approval and to hold the TEFRA public hearing, which we just did.â€
Other updates
Troy Wilson, Kingsport mill manager, provided some other updates on the status of the mill. He said the short and long-term solution timelines remain the same, remaining parallel to each other.
“Here we’re working two paths,†Wilson said. “One is we’re working daily on opportunities to improve the odor within the community, mitigate the odor, eliminate the other. And at the same time, Charlie [Floyd] and his team are working on a project to put the anaerobic digester in that will take the place of the current wastewater treatment that we have on site today.â€
He said Domtar is waiting on the unit that will help add more oxygen into the lagoon, expected to arrive on Oct. 11. The additional aeration system would help enclose the oxygen in a “closed loop system to enhance aerobic treatment and mitigate odor,†a presentation by Domtar states.
Dredging is still planned for November, Wilson said. He stressed the importance of the process being done without bringing more odor issues.
“One part of what we asked [the company] to submit to us was, when they do the dredging, how do you control odor during the dredging,†Wilson said. “When you stir this sludge up and remove this 4,000 tons of sludge that you’re going to take out, we’re going to understand how you’re going to control the odor while you’re doing this.â€
Domtar will work with the city when the time comes for dredging, Wilson said, to make sure everyone is aware of what’s going on.
Long-term progress
Charlie Floyd, vice president of strategic capital projects, said Domtar is working with an environmental consultant on the proper permitting.
“We’ll have to make some modifications for both our air and our water permit,†Floyd said. “We just learned recently that we may even have to get the Army Corps involved if we move the discharge pipe in the river. So we’ve got to work really hard on that and try to get the ball rolling on that front, because there’s certain things you can and can’t do before you get your environmental permits.â€
