KALAMAZOO, MI (From news reports) -- Michigan regulators say a proposed air permit for a Kalamazoo paper mill would reduce air pollution by permanently retiring two older boilers and an older production line while consolidating factory output on newer equipment.
The Michigan Department of Environment, Great Lakes and Energy (EGLE) is proposing to approve a permit-to-install for Graphic Packaging International that would decommission the Kalamazoo mill's older K3 production line and shut down Boilers 8 and 9.
The permit would allow higher annual production limits on the company's newer K2 coated recycled board machine without increasing its daily production ceiling, according to EGLE.
The two boilers are older steam units whose retirement accounts for most of the projected emissions reductions.
The state's analysis projects the changes would cut the mill's potential emissions by about 100 tons per year of nitrogen oxides, 79 tons of carbon monoxide, 27.6 tons of volatile organic compounds, 9.4 tons each of PM10 and PM2.5, and smaller reductions in sulfur dioxide and other pollutants.
A public comment period on the draft permit ends Jan. 14.
The permit action occurs against the backdrop of years worth of odor complaints from neighborhoods around the mill, where residents and officials have pointed to rotten egg-like stink from hydrogen sulfide and other nuisance odors tied to fugitive emissions associated with industrial wastewater handling.
In 2023, state health officials found that prolonged exposure to hydrogen sulfide at levels measured in the predominantly Black Northside neighborhood near the mill could pose a chronic health concern, particularly for people with asthma or other respiratory conditions.
In permitting documents, EGLE says the facility "has historically been a source of odors" and the proposed permit carries forward existing requirements for a Nuisance Minimization Plan for Odors, including provisions for updates the state decides are necessary.
EGLE spokesperson Josef Greenberg Stephens said that the company has been "complying" with its odor plan and they were "deemed in-compliance" during their last inspection in 2024.
Stephens said EGLE is "currently in discussions with them to make some updates" to the odor plan and the facility's malfunction abatement plan.
According to the draft permit conditions, the mill's odor plan must identify responsible supervisors, potential odor sources, monitoring and mitigation steps, timelines, and corrective actions for elevated odors.
Regulators say the project would not trigger additional federal oversight because it would result in less overall pollution from the plant and still meet national air quality standards.
Graphic Packaging installed the new K2 production line in 2021 and 2022 with the help of public incentives. State and local officials approved tax abatements and other economic development support tied to the roughly $600 million Kalamazoo expansion.
The incentives drew scrutiny at the time because they were granted amid ongoing odor and air quality concerns in nearby neighborhoods.
In September, Graphic Packaging settled a lawsuit brought by local neighborhood residents upset by stink and dust fallout.
Trade and industry publications have described the Kalamazoo mill's K2 line as a cornerstone investment intended to produce high-quality recycled paperboard more efficiently.
The company's push to retire older equipment in Kalamazoo fits a broader packaging industry pattern of consolidating production into newer, more efficient assets amid shifting demand and cost pressures, according to industry data and trade reporting.
