Hospital boiler plan hits snag
Toolbox
By PATRICK McARDLE Herald Staff - Published: November 10, 2008
BENNINGTON — Southwestern Vermont Medical Center has received an Act 250 permit for its boiler replacement project, but hit a roadblock last week with the Public Oversight Committee.
Hospital officials say their facility is in desperate need of an upgrade to its heating and chilling system. An $11.8 million project, to relocate the boilers from an area within the hospital building to an adjacent building constructed for that purpose, was scheduled to begin by Thanksgiving.
In order to begin construction, however, the Bennington hospital requires a certificate of need from the Vermont Department of Banking, Insurance, Securities and Health Care Administration.
The Public Oversight Committee reviews hospital requests and makes a recommendation to the commissioner of the department.
Kevin Robinson, communications director for Southwestern Vermont Health Care, said the committee decided on Wednesday to defer a decision on the hospital's request.
"The committee decided they wanted additional information on our debt capacity and our ability to borrow money for the project. We thought we already had submitted enough information, but we've had subsequent discussions to determine exactly what information we can provide so they can make a decision," Robinson said.
According to Robinson, the health-care system has already gotten assurances from a financial expert who has worked with them on bonding issues in the past about the boiler replacement project.
Robinson said hospital officials were hoping to have a decision as early as December.
On Oct. 31, the Vermont Agency of Natural Resources' District 8 Act 250 Environmental Commission granted a land-use permit for the project.
After the hospital applied for the permit, the commission decided that no hearing would be necessary unless an objection was raised.
However, two organizations, the Bennington County Regional Commission and the Bennington Energy Committee, asked to appear before the Act 250 commission. Both groups were concerned that the hospital planned to build new boilers fueled by burning oil and not a renewable fuel like the gas created by wood chips.
Hospital officials said a boiler powered by wood chips was problematic because it needs to be shut down for periodic maintenance, which would be difficult to manage in a facility such as a hospital that is perpetually in operation.
While the Bennington County Regional Commission dropped its objection after the hospital agreed to commission a feasibility study on using alternate energy sources, the Bennington Energy Committee asked the Act 250 commission to schedule a full hearing.
Last month, Kevin McDonald, Southwestern Vermont Health Care's vice president of marketing and planning, said the delay caused by a full hearing could add $300,000 to the cost of the project.
On Sunday, William Christian, chairman of the Bennington Energy Committee, said the group had agreed to support the project after meeting with hospital officials.
"I think it came down to the fact that the hospital convinced us they were earnestly considering wood (as a fuel source). They agreed to the study and if it looks good, a wood-chip boiler would be part of their future plans," Christian said.
The Act 250 permit includes a requirement that the hospital "submit a feasibility study for wood gasification as an alternative energy source" by Feb. 9.
The Bennington County Regional Commission and the Bennington Energy Committee have been invited by the hospital to be part of the study.
Robinson said he didn't know what the deferment of the decision about a recommendation for a certificate of need would do to the hospital's timetable for building the new boiler site, but said there was no question the hospital needed to replace its current heating system.
"We definitely need to get under way," he said.
Contact Patrick McArdle at patrick.mcardle@rutlandherald.com.
12