MedRecycler-RI CEO 'Considering Legal Options' Over Permit Denial

WEST WARWICK, RI — The would-be developer of a medical waste-to-energy plant planned at 1600 Division Road said today that Tuesday's permit denial by the Rhode Island Department of Environmental Management is indicative of the state's poor business climate.

“This decision makes it perfectly clear why Rhode Island’s business climate was ranked 46th out of the 50 states earlier today," stated Nicholas Campanella, Chairman and CEO of Sun Pacific Holding Corp., MedRecycler-RI's parent company, through a spokesperson. "The company will consider all of its legal options, of which there are many.”

Campanella was referring to a recent announcement that Rhode Island had moved from 5oth to 46th place in CNBC's "Top States for Business" rankings.

As for legal options, lawyers for MedRecycler on July 2 wrote to to the DEM arguing that a recently-passed state law that bans high-heat medical waste processing facilities in the state would have no effect upon the West Warwick proposal, "because there is no express retroactive language." In his letter, Michael A. Kelly of the KSP law firm further argued that the legislation is unconstitutional because it represented a targeted and specific attempt to stop MedRecycler-RI.

In denying MedRecycler's permit, DEM director Terrence Gray did cite the new law, and said he does believe it prevents state regulators from approving the plant. But Gray also pointed to other deficiencies in the MedRecycler application. (Read the denial letter here)

Sen. Bridget Valverde and Rep. Justine Caldwell spoke on the State House steps with Kevin Budris, a staff attorney with the Conservation Law Foundation. (Mary Serreze/Patch)

Attorney Kevin Budris of the Conservation Law Foundation said Wednesday that MedRecycler's lawyers are missing the point.

"That legislation was one of many reasons that DEM cited, any one of which is sufficient to deny the permit," Budris told Patch. "The DEM made it clear that the project is fundamentally flawed, poorly thought-out, and potentially dangerous. It doesn't belong in Rhode Island, or anywhere else."

Budris also responded to Campanella's statement about Rhode Island's business climate.

"Actually, (the permit denial) shows that Rhode Island is a good place for environmentally safe businesses," Budris said. "And MedRecycler is not an environmentally safe business."

Campanella in March said that one reason he chose the state is because of its economic development incentives. The company had preliminary approval from the R.I. Industrial Facilities Corporation (RIIFC), an arm of Rhode Island Commerce, to offer $17 million in tax-exempt bonds to investors. The bond issue was contingent upon MedRecycler-RI receiving its state and local permits, the East Greenwich News reported.

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MedRecycler proposed to process up to 70 tons of medical waste per day in a high-heat, zero-oxygen process known as pyrolysis. They said they would be producing "renewable energy" in an environmentally responsible facility and keeping waste from the landfill while helping the economy with tax benefits and jobs.

Critics said the technology was largely untested, asserted that pyrolysis is no better than incineration, warned that out-of-state waste would be trucked in, and said the plant poses potential health risks. Neighbors in West Warwick and East Greenwich waged a vigorous fight against the plant, with the support of state lawmakers and others, including the Conservation Law Foundation.

Attorney General Peter Neronha opined Tuesday that the DEM had done the right thing. "This decision is an apt example of the benefit of having a comprehensive state regulatory process that includes robust public input," Neronha said.

Sen. Bridget Valverde and Rep. Justine Caldwell, Rhode Island lawmakers who sponsored the legislation to ban high-heat medical waste processing plants, celebrated on social media.

"DEM has denied MedRecycler & thanks to our colleagues in the GA, they can’t bring their waste and dangerous tech to our beautiful state," Caldwell said on Twitter.

"We knew the proposal to burn medical waste in our community was bad news. Application denied! And with the new law passed by me, @Justine4RI and our colleagues, it can't go anywhere else in our state," said Valverde.