Coal Terminal Has New Plan to Build Dust Control Domes

Attempting to end their fight with air quality regulators, operators of a controversial coal terminal in the Port of Los Angeles announced Friday that they are raising the money to build two domes that will control potentially hazardous dust from petroleum coke piles at the facility.

Gerald Swan, the chief executive officer for the Los Angeles Export Terminal, said the operation is securing the necessary financing for the $20-million domes from among its 37 business partners.

Consequently, Swan said, the terminal is on the verge of reaching a settlement with the South Coast Air Quality Management District, which required the coverings last December as a condition of the facility’s permit to operate.

“I think we are in a position to go ahead with these domes, although we have to finalize some things with the AQMD,” Swan said. “The agency is cooperating and we hope to reach a solution that is satisfactory to everybody.”

Swan said the final agreement with the agency should be worked out in the next 30 days.

The Los Angeles Export Terminal became controversial in July, when it filed a formal request with the agency to withdraw its offer to build shelters over piles of petroleum coke at the facility.

Terminal officials contended that they could no longer afford the domes because of reduced exports to Asia and rapidly increasing prices for the two coverings.

In public statements that were highly critical of the agency, terminal operators also contended that they were being unfairly singled out for more stringent air pollution controls than their competitors.

News of the terminal’s reversal angered local residents and port workers, who were concerned about the potential health effects of airborne dust traveling from the cargo terminal.

Fine particles of petroleum coke, which is a byproduct of the refinery process, can aggravate respiratory illnesses such as asthma, bronchitis and pneumonia.

After the request was filed, agency officials said that the domes were required by law and that the agency would oppose the terminal’s efforts to avoid installing them. A five-member panel that reviews agency decisions was scheduled to consider the dispute in November.

Swan said the terminal has had to seek additional financing from its business partners because a plan to have the Port of Los Angeles pay for the domes and then charge the terminal additional rent to recover the investment is unworkable.

According to a report released Friday by the Harbor Department, the additional rent might drive the new terminal into bankruptcy and cause considerable financial risks for the port.

The report, which was requested by Councilman Rudy Svorinich Jr. in July, also stated that the Harbor Department cannot afford to pay for the domes because it has already invested heavily in capital improvement projects.