GREEN CAPITAL$M

UK Budget 2021: Chancellor must

 'make finance green', say campaigners

Roger Harrabin - BBC environment analyst
Wed, February 24, 2021

City image overlaid with trees

Chancellor Rishi Sunak is being urged to use the Budget to change the financial system to better protect the environment.

One group wants him to impose a carbon tax and use the proceeds to protect the poor from high energy bills.

A second petition is calling for Bank of England rules to encourage banks not to invest in fossil fuels.

Mr Sunak is expected anyway to update the Bank’s mandate to include a greater focus on climate.

But campaigners want the new wording to stop the Bank from supporting fossil fuel firms through schemes such as its £20bn corporate bond purchase programme, which involves buying debt issued by firms such as Shell and BP.

The Bank responded to similar calls in January by saying that it has "an ambitious work programme on climate change, from the stress testing of the largest UK banks and insurers against climate-related financial risks through to working internationally with the central bank network for greening the financial system".

Bank of England criticised for financing carbon-intensive firms

£3bn UK climate finance to be spent on supporting nature

Some campaigners also want the Bank to work with the Treasury in funding a National Infrastructure Bank investing in sustainable industries.

The petition comes from Positive Money, a not-for-profit organisation claiming 65,000 supporters that was set up in the aftermath of the financial crisis and is funded by trusts and foundations.

One campaigner, Hannah Dewhirst, said: “The Bank and the financial system it regulates is currently funding catastrophic climate breakdown, which will again see ordinary people paying the price of bankers’ recklessness."

Anna Vickerstaff, another campaigner for the climate group 350.org, said: “British banks are the worst in Europe for funding fossil fuels.

“Banks operating in the UK are fuelling the climate crisis by financing fossil fuel projects from Argentina to Mozambique.”

The petition comes after MPs on the cross-party Environmental Audit Committee (EAC) last week called on the government to add climate and nature objectives to the Bank’s mandate.


Protests by Extinction Rebellion have previously taken place outside of the Bank of England.

They urged the chancellor to impose VAT reductions to encourage energy efficiency, the use of recycled materials and repair services.

The EAC also urged the government to begin scoping work on a carbon tax. That call was backed on Wednesday by a green organisation, the Zero Carbon Campaign.

The UK currently runs several taxes that affect carbon emissions, including Air Passenger Duty, the landfill tax and car tax.

The campaign asks the chancellor to simplify the “inconsistent” pricing system by placing a charge on every tonne of CO₂ emitted in the UK. Proceeds should be used to shield the poorest from the tax changes, it said.

The group believes this will trigger a transition to a clean economy by ensuring that individuals, businesses, manufacturers and policymakers choose less-polluting options.

The Treasury has been examining the relationship between tax and the environment, including a carbon tax. It has also been looking at a pay-as-you drive scheme for motorists to compensate for the loss of cash from petrol taxes as vehicles go electric.

Recent media reports suggest that officials may be moving away from the carbon tax proposal.

The Treasury will not discuss tax changes until the Budget, while the Bank of England declined to comment when it was approached by BBC News.

GREEN CAPITAL$M

UK

Chancellor urged to use upcoming Budget to stop banks from funding fossil fuels

Daisy Dunne
Wed, February 24, 2021

Campaigners have called on Rishi Sunak to use the upcoming Budget to stop banks from funding fossil fuels(REUTERS)

Campaigners have called on the chancellor Rishi Sunak to use the upcoming Budget to stop banks from funding the use of fossil fuels.

The call comes as a petition signed by nearly 65,000 members of the public urges the Bank of England to “cut off the money pipeline” for fossil fuel projects.

Mr Sunak is expected to make updates to the Bank of England’s mandate to include a greater focus on measures to tackle the climate crisis as part of announcements due next week.

However, campaign groups including 350.org, Positive Money and SumOfUs have said that any update should ensure that the Bank “gets its own house in order” by ending financial support for fossil fuels.

Anna Vickerstaff, from the climate campaign group 350.org, said: “British banks are the worst in Europe for funding fossil fuels, with Barclays and HSBC alone pouring more than £145bn into dirty energy projects since the UK signed the Paris Agreement in 2015.

“Banks operating in the UK are fuelling the climate crisis by financing fossil fuel projects from Argentina to Mozambique, projects that trample on indigenous rights, destroy livelihoods and irreparably damage communities.

“The Bank of England must cut the flow of finance to fossil fuels and channel funds towards rebuilding an economy that works for people, not polluters.”

The campaign groups urged the bank to stop supporting fossil fuels through programmes such as its £20bn corporate bond purchase scheme, which involves the bank buying debt issued by oil majors such as BP and Shell.

Campaigners also called on the Bank of England to do more to stop the banks it regulates from pouring money into fossil fuel projects.

Hannah Dewhirst, a campaigner at Positive Money, a group advocating for a more fair and sustainable banking system, said: “[Mr] Sunak has a huge opportunity in this Budget to make the Bank of England get its act together.

“By stopping billions flowing to dirty fossil fuels and investing in green job-creating projects instead, we can ensure Britain is leading by example ahead of the critical Cop26 climate summit in Glasgow this November.”

The call comes after a cross-party group of MPs last week said that the Bank’s remit should be updated to include “climate and nature objectives”.

The Environmental Audit Committee also recommended a range of measures that the government could take to put climate action at the heart of Covid-19 economic recovery plans.

These included VAT cuts on green home upgrade schemes and new incentives to encourage faster uptake of electric cars. The MPs also said the government should “begin scoping work on a carbon tax” as part of its drive to pursue a green recovery from the pandemic.

A spokesperson for the treasury said: “The UK has some of the most ambitious climate commitments in the world and we recently announced proposals to extend the UK’s global leadership in green finance.

“The government’s 10-point plan for a green industrial revolution also sets out £12bn in green investment, including for hydrogen and carbon capture technology, greener homes, electric vehicle charging infrastructure, walking and cycling infrastructure, flood defences and backing offshore wind to power every UK home by 2030.”

The Independent also approached the Bank of England for comment.

Read More

Climate crisis ‘biggest security threat humans have faced’, Sir David Attenborough tells UN

GREEN CAPITAL$M
HSBC, Barclays challenged over bond linked to Vietnamese coal project




HSBC, Barclays challenged over bond linked to Vietnamese coal project

 Man walks past a sign of Japan Bank for International Cooperation (JBIC)

 at it's headquarters in Tokyo

Simon Jessop, Melanie Burton and Aaron Sheldrick
Wed, February 24, 2021, 3:09 AM

LONDON (Reuters) - HSBC and Barclays, which have pledged to stop financing new coal projects, have been challenged by a legal group over a Japanese bond it says will contribute to the financing of coal-fired power in Vietnam.

Both banks have come under pressure from investors keen to see them do more to help the world shift to a low-carbon economy and HSBC faces a shareholder vote over its fossil fuel financing at its annual meeting in April.

While both have policies to refrain from financing new coal plants, the complaint focuses on their alleged role in helping to fund others who go on to finance such projects.

Legal experts say this could be just the first in a series of challenges to banks over indirect financing at odds with their climate commitments.

The bond, a 250 million pound ($354.35 million) issue by the Japan Bank for International Cooperation (JBIC) earlier this month, will support expansion of the Vung Ang 2 power project, the Australian-based Environmental Defenders Office (EDO) said in a letter to the banks seen by Reuters.

HSBC declined to comment when contacted by Reuters. Barclays and JBIC did not immediately return requests for comment.

Acting on behalf of climate-focused think-tank the Anthropocene Fixed Income Institute (AFII), the EDO said it was concerned that the promotion and issuance of the bond had "entailed possible breaches" of the banks' legal duties.

It highlighted reported comments from both banks that they would no longer finance the expansion of coal-fired power stations.

While the JBIC money was not raised specifically to fund Vung Ang 2, the EDO said previous statements from JBIC have made clear the money would go into the pot from which funding for the Vietnamese project would be drawn.

The complaint also highlighted concerns with the bond prospectus, including that it did not explicitly mention the funds could be used to fund Vung Ang 2.

In view of JBIC's significant investments in fossil fuel projects, it said the prospectus failed to highlight the potential risk that some of the assets could become uneconomic given the world's transition to a low-carbon economy.

DENIAL OF BREACH

AFII founder Ulf Erlandsson said he had received an initial reply from both banks denying a breach of their coal policy. HSBC declined to comment on the prospectus while Barclays said the prospectus had met all applicable rules.

Erlandsson said he would go back to the banks to clarify elements of their response before deciding on the next steps. Previous EDO complaints have resulted in formal court challenges, including with Woodside Petroleum and Santos.

Thom Wetzer, professor of law and finance and director of the Oxford Sustainable Law Programme at the University of Oxford, said the EDO's letter was unlikely to be the last challenge to banks over climate.

"Investors expect banks to make credible commitments to decarbonise their business and to stick to them. When they fail to do so, and non-legal challenges do not sufficiently change that outcome, investors appear increasingly willing to take legal action to expose and end such greenwashing."

Xavier Lerin, senior banking analyst at ShareAction, which co-filed the shareholder resolution against HSBC, said the potential use of fungible proceeds from the bond to finance Vung Ang 2 raised questions over HSBC’s coal policy.

"HSBC says it is committed to help its clients transition. But how credible is this commitment if the bank continues to provide financing to top coal financiers and coal developers with absolutely no string(s) attached?"

($1 = 0.7055 pounds)

(Additional reporting by Nupur Anand; Editing by Steve Orlofsky and Barbara Lewis)

Fukushima nuclear plant operator: Seismometers were broken



Japan Nuclear Fukushima

This aerial photo shows the Fukushima Dai-ichi nuclear power plant operated by Tokyo Electric Power Company (TEPCO) in Okuma town, Fukushima prefecture, northeastern Japan, on Feb. 14, 2021, a day after a strong earthquake. TEPCO says both of two seismometers at Unit 3, one of three melted reactors, had been out of order since last week and were not able to collect data when the powerful earthquake struck the area on Feb. 13, calling into question if the company's risk management has improved since the disaster. (Hironori Asakawa/Kyodo News via AP)

MARI YAMAGUCHI
Mon, February 22, 2021, 8:23 AM

TOKYO (AP) — The operator of the wrecked Fukushima nuclear power plant said Monday that two seismometers at one of its three melted reactors have been out of order since last year and did not collect data when a powerful earthquake struck the area earlier this month.

The acknowledgement raised new questions about whether the company's risk management has improved since a massive earthquake and tsunami in 2011 destroyed much of the plant.

The malfunctioning seismometers surfaced during a Nuclear Regulation Authority meeting on Monday to discuss new damage at the plant resulting from a magnitude 7.3 quake that struck the region on Feb. 13. Cooling water and pressure levels fell in the Unit 1 and 3 reactors, indicating additional damage to their primary containment chambers.

The operator, Tokyo Electric Power Co., has repeatedly been criticized for coverups and delayed disclosures of problems at the plant.

Regulatory officials asked TEPCO at the meeting why it did not have seismological data from the Unit 3 reactor for Saturday's quake, and utility officials acknowledged that both of its seismometers had failed — one in July and the other in October — and had never been repaired.

TEPCO also said that seismometers at all but two of the reactor buildings that survived the 2011 disaster were submerged by water from the tsunami and have never been replaced.

During Monday's meeting, regulatory officials said they were concerned about the declining water levels and pressure in the Unit 1 and 3 primary containment chambers because of the possibility that the quake had expanded the existing damage or opened new leakage paths, and urged the utility to closely check for any increased radiation levels in the ground water surrounding the reactor buildings.

TEPCO said no abnormality has been detected in water samples so far.

New damage could further complicate the plant's already difficult decommissioning process and add to the large amounts of contaminated water being stored at the plant.

Since the 2011 disaster, cooling water has been escaping constantly from the damaged primary containment vessels into the basements of reactor and turbine buildings, where the volume increases as groundwater seeps in. The water is pumped up and treated, then part of it is reused as cooling water, while the rest is stored in about 1,000 tanks.

TEPCO initially reported there was no abnormality at the plant from Saturday's earthquake. But on Monday, it said about 20 of the tanks had slid slightly due to the quake, a storage container carrying radioactive waste had tilted, and asphalt pavement at the plant was cracked.

GENTRIFICATION OF THE BADLANDS

Farmers chuckled when doctors bought this rural land for a racetrack — but they aren't laughing now

Kyle Bakx CBC

© Supplied by Badlands Motorsports Resort About 170 hectares of land near near Rosebud, Alta., about 100 kilometres east of Calgary, has been rezoned for development of a racetrack resort.

When a group of seven doctors bought a parcel of land in a remote river valley in Alberta more than 15 years ago to build a racetrack, farmers in the area could only chuckle in disbelief.

They found it impossible to imagine race cars skidding around multiple tracks on a plot of land in their secluded part of the Prairies, which rarely attracts visitors on the gravel roads that wind through the deep valley.

What may have seemed like a farfetched idea at the time is now much closer to reality, as those doctors hope to break ground on the $500-million racing resort this summer.

Badlands Motorsports Resorthas said it has all of its permits in place, but just needs to raise more investment before the first phase of the complex can be built near Rosebud, about 100 kilometres east of Calgary.

However, the process hasn't been easy and local opposition remains.

Dozens of farmers who were skeptical all those years ago have spent hundreds of thousands of dollars in legal fees and other expenses in their battle to stop the project from proceeding. Their latest salvo includes a Federal Court challenge asking for Ottawa to intervene and stop the development to protect a threatened bird species.
New racing venue

In 2005, Calgary radiologist Dr. Jay Zelazo and some of his colleagues in the medical field came up with the idea to build a track to race street-legal vehicles, since they enjoyed driving at high speeds and the only track near the city was struggling to stay afloat. Race City Speedway eventually closed in 2011.

They chose the property near Rosebud since there were few other parcels of land on the market that were the appropriate size.

The early concept grew over time to include four tracks, a hotel, residential development, go-kart track and other facilities. The Badlands Motorsports Resort could employ as many as 200 people.

"There's so many vehicles and people with vehicles, they just cannot use them for their potential. I mean ... that's what this idea is, is safe track driving," said James Zelazo, Jay's father, who is the project's chief financial officer.

© Kyle Bakx/CBC A few natural gas wells are located on the property, which has been used in the past to grow crops and raise cattle.

The first phase would involve constructing one track and temporary buildings. The cost would be about $30 million, said Zelazo. The developers also have to pave the road leading to the site, which would cost about $15 million. Zelazo is hopeful the provincial government may cover that cost.

So far, the group has raised about $5 million, he said.

About 250 people, mostly locals, have each already made a $1,000 deposit toward a potential membership, he said.

The racetrack could provide a boost for tourism in the area, which includes the Royal Tyrrell Museum, home to one of the world's largest displays of dinosaurs.

"I think this is an opportunity for a different segment of the population to come and enjoy this area and, if it gets built like the picture that I'm looking at indicates, I think it'll be a real jewel in Alberta," said Darryl Drohomerski, chief administrative officer of the town of Drumheller, which is located about 35 kilometres northeast of Rosebud.

The Alberta government did not respond to requests for comment about the proposed project.© Kyle Bakx/CBC The racetrack developer is required to widen and pave this road, which is estimated to cost about $15 million.

Entrenched opposition

The local opposition is easy to see as many "No race track" signs are visible on fence posts throughout the area.

Wendy Clark is one of the farmers spearheading the effort to halt the development. She has about 800 hectares of grain fields in the region.

"If you live here," she said, "you kind of instinctively come to the realization that it's your job to take care of this river valley."

She said she's worried about the impact on the land, the water and the wildlife.

"We're all just so angry," she said, calling the project an "intrusive development."© Kyle Bakx/CBC These signs can be seen throughout the Rosebud area.

She and other landowners have objected to the racetrack to every level of government. So far, they have only been able to slow down the process, not stop it.

At the provincial Environmental Appeals Board, Clark and others argue the racetrack will cause irreparable damage to the environment, since the developer plans to infill two wetlands and modify three others. The appeal process is ongoing.

The farmers also want the federal government to take action to halt the development to protect the bank swallow population. The small, brown and white songbirds were designated as a threatened species in 2013 under the federal Species at Risk Act (SARA).

The bank swallow has suffered a "severe long-term decline amounting to a loss of 98% of its Canadian population over the last 40 years," the SARA website says.

As a threatened species, the bank swallow is protected by the federal government.

The landowners filed an application to the Federal Court of Canada last year to force Ottawa to prepare a recovery plan for the birds and designate critical habitat areas. A date for a virtual hearing has been set for late April.

"You're putting a racetrack in between the nesting sites of these bank swallows and their foraging territory. So, what do you think is going to happen to the bank swallows?" said Clark.

In a statement to CBC News, Environment Canada said the development of a recovery strategy for the bank swallow is ongoing. That strategy will identify the threats to the species and critical habitat. However, the government said the land-use authorization for the proposed racetrack is a provincial matter.

Badlands Motorsports Resort maintains it has the right to move ahead with the project because the property is private land. The river valley will be protected and the wetlands are often dry, said JamesZelazo.

The bank swallows have nests across the road from the racetrack development, but Zelazo said he hasn't seen any of the birds himself, so he doesn't know if they still inhabit the area.

The landowners who oppose the project made an offer to purchase the land from the racetrack developer in 2013, but Zelazo said his group wasn't interested.

If the farmers continue to oppose the project and cause further financial costs and delays, he may consider launching legal action to recover those expenses, he said.

A separate $25-million racetrack development north of Calgary was supposed to open last year, but has also faced delays.

© Kyle Bakx/CBC Bank swallows dig nesting burrows in eroding vertical banks. This photo is taken across the road from the Badlands Motorsports property.

BHP and Aboriginal group probe fallen rock shelter in Western Australia

MELBOURNE (Reuters) - BHP Group has launched a joint investigation with an Indigenous group into what caused a rock fall at a culturally significant rock shelter at its iron ore operations in Western Australia, both groups said.

© Reuters/MELANIE BURTON A tonne of nickel powder made by BHP Group sits in a warehouse at its Nickel West division, south of Perth

BHP discovered the damage to the site of significance to the Banjima people on Jan. 29, as part of monitoring at its Mining Area C operations. It informed its Banjima partners and the groups agreed to set up a probe into the incident, BHP President Minerals Australia, Edgar Basto said in a statement.

“This site is not part of current mining operations. The cause of this rock fall is not known," Basto said in a statement late on Tuesday.

Mining Area C is part of BHP's $3.4 billion South Flank replacement project in the state's Pilbara region.

Miners are facing closer scrutiny over what they do to protect sacred Indigenous sites in the wake of Rio Tinto's destruction of two ancient, sacred rock shelters at Juukan Gorge last May. The mining company had obtained a permit to destroy the sites.

Basto and Brandon Craig, head of BHP's Western Australian iron ore operations, met with Banjima Elders as part of the Banjima Heritage Advisory Council that BHP set up last year following the Juukan Gorge incident.

"We will continue to work with the Banjima in a spirit of respect and cooperation,” BHP said.

The Banjima Native Title Aboriginal Corporation said that it had met with BHP executives on Feb. 11 to clarify details in an initial report, and carry the investigation forward.

(Reporting by Melanie Burton; Editing by Simon Cameron-Moore)

Fortescue apologises for clearing land on Aboriginal sacred site

MELBOURNE (Reuters) - Australia's Fortescue Metals Group has apologised to an Aboriginal group for clearing land on a heritage site while flouting a government condition for representatives of the community to be present when the damage took place.

© Reuters/David Gray FILE PHOTO: File picture of a giant 

excavator loading a mining truck at the Fortescue Solomon iron

 ore mine south of Port Hedland

It is the week's second such incident, despite pressure on Australian iron ore miners to show they have improved practices to manage important sites after Rio Tinto destroyed two sacred rock shelters for a mine expansion last May.

Fortescue had state government permission to clear the land in the Weelamurra Creek area registered as sacred to the Wintawari Guruma people, on condition that community elders were present to perform salvage and cultural rites, four documents reviewed by Reuters showed.

But an administrative error led to land clearing works earlier than scheduled on Feb. 1 in the absence of the representatives, Fortescue Chief Executive Elizabeth Gaines said in a statement.

"I have spoken to Wintawari Gurama Aboriginal Corporation (WGAC) Chairman Glen Camille regarding this incident to personally express my regret and sincere apology on behalf of Fortescue," she said.

"We have carried out a full investigation into the matter which has shown that this unfortunately occurred as a result of an administrative error...We have paused all clearing works at this site as we work with WGAC on the matter."

Gaines did not provide detail on the nature of the administrative error.

In a statement, the community corporation said, "WGAC members are disappointed by FMG’s actions, particularly after investing so much time negotiating an outcome with them that included elders being present during the destruction.

It added, "WGAC is concerned by yet another example of poor conduct by a mining company and the apparent disregard for Aboriginal cultural heritage."

WGAC chairman Glenn Camille requested that the Western Australian government prosecute Fortescue, in a letter to Minster for Aboriginal Affairs Ben Wyatt, reviewed by Reuters.

"We sincerely hope that you and the next Minister for Aboriginal Affairs decide to send a message to the mining industry about the importance of protecting our Indigenous heritage."

In a statement, Wyatt said that he had been advised that an alleged breach was under official investigation.

"The matter is being treated very seriously and with utmost priority by the Department. I trust that the investigation will be managed expeditiously and concluded swiftly."

Earlier this week, BHP Group said it was investigating how a rock fall damaged a registered site at its South Flank operations that was not part of active mining operations.

Last year's Rio Tinto destruction cost its chief executive and two senior leaders their jobs, and sparked a parliamentary inquiry.

(Reporting by Melanie Burton; Editing by Clarence Fernandez and Louise Heavens)

 

Nestlé Nominates Lindiwe Majele Sibanda To Its Board of Directors

Published on Feb 22 2021 7:59 AM in A-Brands tagged: Nestlé / AGM / Board of Directors / Diversity & Inclusion

Nestlé has nominated professor Lindiwe Majele Sibanda for election to its board of directors, scheduled at its Annual General Meeting (AGM) on 15 April 2021.

Currently, Majele Sibanda serves as the director and chairwoman of the African Research Universities Alliance Centre of Excellence in Sustainable Food Systems at the University of Pretoria, South Africa,

Her nomination follows board member Ursula Burns' decision to not stand for re-election.

Paul Bulcke, chairman of the Nestlé board of directors, thanked Burns for her engagement, expert advice and valuable perspectives during her tenure.

'Invaluable Guidance'

Commenting on Majele Sibanda's nomination, Bulcke said, "With her hands-on farming experience and expertise in environmental sustainability, public policy, and sustainable food systems, she will provide invaluable guidance along our journey to build regenerative food systems at scale.

"Her broad experience across the African continent as well as across the globe will enrich the Board's insights."

With Majele Sibanda, the Nestlé Board will comprise 14 members, of which twelve are independent directors.

Nestlé added that it aims to continuously add diverse experiences and unique perspectives to its board, as well as to enhance its cultural and gender diversity.

An Experienced Professional

Majele Sibanda also serves as the co-chairwoman of the Global Alliance for Climate-Smart Agriculture hosted by the Food and Agriculture Organization of the United Nations in Rome, Italy.

Previously, she served as the vice-president, country support, policy and partnerships for the Alliance for a Green Revolution in Africa in Kenya.

For 13 years, she worked in South Africa as the CEO and head of mission of the pan-African Food, Agriculture and Natural Resources Policy Analysis Network, which operates in 19 African countries.

Between 2016 to 2018, she served on the EAT-Lancet Commission on healthy diets from sustainable food systems and a member of the Australian Centre for International Agricultural Research Policy Advisory Council.

She serves as the managing director of Linds Agriculture Services in Harare, Zimbabwe.

© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.

#WATERISLIFE

Permission granted: SRWMD opens the faucets for Nestlé

Suzette Cook | Mainstreet Daily News Reporter
Feb 23, 2021 

Ginnie SpringsPhoto by Zoe Esteban / Shutterstock

The Suwannee River Water Management District (SRWMD) board approved today a permit that grants Nestlé access to more than 1 million gallons of Ginnie Springs water a day.

The decision came after dozens of residents, scientists and springs conservationists spoke of the negative impact the removal of the water from the Floridan aquifer would have on an already ailing system that experts say is in state of recovery.

In addition to the public comments against approval, Alachua County expressed its concerns in a letter to the board before its decision, saying the removal of water affects Alachua County water systems.

"We are concerned with potential negative impacts on Poe Springs and other water resources within the Lower Santa Fe watershed," the letter said.

In the letter Alachua County asked the board to issue a temporary moratorium on consumptive use permits to allow time for more study of the “reasonable beneficial use” and “public interest” criteria—and to gather broad public support.

"With the current outcry from the public, it seems prudent to clearly define and understand these prongs of the [consumptive use permit] process,” the letter said.

Alachua County cited the status report published earlier this month showing conditions in the Lower Santa Fe have improved since 2014, but it said the matter needs more study: “It will be important to clearly demonstrate how this improvement was achieved, as some members of the public currently believe that the criteria were just simply changed to achieve this result.”

The Alachua County Board of County Commissioners (BOCC) was still in session when the water district issued its decision, allowing the board to discuss the approval in the evening portion of the meeting.

The BOCC agenda has "Seven Springs Consumptive Use Permit Discussion" listed as item nine. "If a legal challenge is pursued, the CAO will need a budget for hiring legal and technical professional services," the fiscal consideration states.

The recommended action proposed on the agenda states, "Direct County staff to follow both the consumptive use permit process for this application and the process for establishing minimum flows and levels for the Santa Fe River. Report back to the Commission with updates on any relevant action taken by the Water Management District."

In a statement provided to Mainstreet Daily News, Nestlé Water North America spokesperson Lisa Garcia said the 984,000 gallons per day allowed under the new permit is less than its previous permit and that it represents less than one-quarter of 1 percent of SRWMD's groundwater.

"Spring water is a renewable resource when managed responsibly," she said, pointing to studies that found Nestlé's withdrawals would not harm the area. "We support the science behind the Seven Springs permit application and will continue to take great care to help Seven Springs Water Company as needed to ensure that the water withdrawn from Ginnie Springs that we buy will not adversely impact the spring, river, or surrounding wetlands.”




Suzette Cook
Mainstreet Daily News Reporter
Suzette Cook is a Mainstreet Daily News reporter who has been a community journalist for more than 30 years.

#WATERISLIFE

 Bottling of Florida’s spring water to expand after Nestle given permit extension

Ginnie Springs (Photo by (WT-de) Mistoffeles via Wikimedia Commons)

TALLAHASSEE, Fla. – Nestle Waters North America will be able to ramp up bottling to nearly 1 million gallons of water a day from the Ginnie Springs area after a permit was approved Tuesday over the objections of opponents who said it will continue the degradation of the state’s natural springs and rivers.

After hours of public comment, mostly opposed to the proposal, the Suwannee River Water Management District Governing Board approved a permit application from Seven Springs Water Co. that will help Nestle expand its bottled-water operations in Gilchrist County.

Board members said the vote was taken under protest to keep open the ability to challenge an administrative law judge’s recommendation backing the permit. Yet a couple of board members said after the vote the issue has been vetted for nearly two years, and they weren’t ready to spend more on a challenge.

“If we go back and spend thousands of dollars on appeal on a technicality, I’m not in favor of that,” board Member Larry Thompson said.

Environmentalists, considering their own legal challenge, said approval of the application will lead to further degradation of springs and rivers that are already requiring millions of dollars in restoration efforts. They also contended the permit, which had a $115 application fee, involves giving away natural resources without adequate compensation.

“This is not something that will benefit in any way, shape or form this county and any other county,” professional mermaid Michelle Colson said. “Nestle already bottles water in five different springs to be exact, and they don’t need this water, putting our spring water in bottles that are then going to end up in the rivers and the oceans, in landfills. It’s just not a good use for our spring water that as we all know is already in danger.”

Joe Little, an attorney representing Florida Defenders of the Environment and Our Santa Fe River, said his groups will discuss plans to legally challenge the permit for failing to provide a monetary benefit to the state as Nestle will pay Seven Springs to draw a projected 400 million gallons of water a year from the Ginnie Springs area.

“If the district grants this permit without requiring it to be amended to provide for payment of substantial amounts of money to the state of Florida, it is not consistent with the public interest of Florida,” Little said.

State Rep. Anna Eskamani, D-Orlando, said the decision is a step backward in revitalizing state waters.

“The fact that a private company with a small permit fee can be granted permission to pump upwards of a million gallons of water constantly is something that every Floridian should be upset by, no matter where you live in the state,” Eskamani said in an online news conference after the meeting.

Doug Manson, an attorney representing Seven Springs, disagreed with people who contended the permit will result in negative environmental impacts. Manson said water flow issues were thoroughly reviewed by staff members of the water management district.

“They found that there wouldn’t be environmental impacts, there was not going to be any issue with the pumpage and reductions in spring flow or the river,” Manson said. “So, those issues were looked at by staff before you got to the (administrative) proceeding.”

Manson added, “We believe that after two years of going through this, an immense amount of money that it took from Seven Springs to be able to defend the permit, that at this point, there should be a finality to it.”

Nestle factory employees, who expressed concerns about the future of the plant and their jobs, and the county government-backed the permit.

Gilchrist County Administrator Bobby Crosby said the bottling permit is tied to $545,783, or about 7%, of annual ad valorem and personal property taxes.

“With around 35% of our citizens only paying (property) taxes, that 7% is a very large number to us,” Crosby said.

Seven Springs applied to draw 984,000 gallons a day from the aquifer that serves as a source for the Ginnie Springs area and pipe it to the Nestle plant.

Seven Springs, which is headed by owners of the private Ginnie Springs Outdoors park along the Santa Fe River, has an expiring 20-year permit that allows 1.152 million gallons of water a day to be pumped. Until the new permit application was filed, top demand for water at the Seven Springs site reached 265,900 gallons a day.

Nestle plans to expand output of the plant by updating one old production line and adding two new production lines over the next five years, the life of the permit.

The water management district last year indicated it would not approve the permit, spurring Seven Springs to file a challenge in the state Division of Administrative Hearings. In part, the district pointed to the water being used by Nestle, while the permit would be held by Seven Springs.

Last month, Administrative Law Judge G.W. Chisenhall issued a 44-page order recommending that the district approve the permit, writing Seven Springs, which has supplied water to the local bottling plant since 1998, has “provided reasonable assurances, supported by competent, substantial evidence during the final hearing” that the plant would be able to process the requested amount of water.

“Seven Springs provided competent, substantial, and unrebutted evidence of the contractual obligation between it and Nestle, and of the obligation for all water to be used at the … bottling plant,” Chisenhall wrote. “Thus, the district now has reasonable assurances that all of the water withdrawn by Seven Springs will be utilized for a beneficial use, i.e., bottled water for personal consumption.”

Under administrative law, Chisenhall’s recommended order had to go back to the water management district for final action.

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ABOUT THE AUTHOR:

Jim Turner

Jim is a Capitol reporter for the News Service of Florida, providing coverage on issues ranging from transportation and the environment to Legislative and Cabinet