Hearing examiner review of appeal on environmental impact for Ferndale terminal expansion expected

ALA Energy, LLC (ALA Energy), a subsidiary of AltaGas, has submitted permit applications for 33 projects at the Ferndale Terminal located in the 4100 block of Unick Road. The applications include a Major Project Permit (MPP), a Conditional Use Permit (CUP), and a State Environmental Policy Act (SEPA) checklist.

The proposal includes 31 prior improvements completed between 2016 and 2021 and 2 planned projects. The planned improvements consist of a waste gas recycling system and a new enclosed ground flare. The recycling system is designed to capture process gases for use as fuel in compressor engines to reduce greenhouse gas (GHG) emissions. The flare project is intended to reduce volatile organic compounds (VOC).

The cumulative construction cost for the improvements is $3,420,000. The terminal facility employs 45 people.

The application process follows a settlement between the company and Whatcom County after the county identified code violations for projects completed without permits. The company also paid a $4,000,000 fine to the Northwest Clean Air Agency (NWCAA) in 2021 for underreporting emissions. According to NWCAA records, railcar visits to the terminal increased from 1,000 to 16,000 per year between 2015 and 2019, and vessel traffic increased from 5 to 26 berthing events per year.

Whatcom County Planning and Development Services (PDS) issued a Determination of Completeness for the application on August 7, 2024. A Notice of Application was issued on August 21, 2024. On September 3, 2025, the county issued a Mitigated Determination of Non-Significance (MDNS) for the projects.

A coalition of environmental organizations filed an appeal of the MDNS. The Whatcom County Hearing Examiner held a consolidated hearing regarding the appeal and the CUP application from January 28, 2026, through February 2, 2026. Written closing arguments were submitted by March 6, 2026.

The focus of this appeal is the increased transportation and handling of butane and propane at the terminal that the Permits facilitate, and the significant safety and environmental impacts that follow from it. – SEPA Appeal – Appellant Statement (September 29, 2025)

A decision from the Hearing Examiner was expected to be issued by March 20, 2026, but no decision has been published as of March 28, 2026.