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Astoria Energy, LLC (Corrected)

February 28, 2001

CORRECTED VERSION
NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
NOTICE OF COMPLETE APPLICATION
PUBLIC HEARING and ISSUES CONFERENCE

Applicant: Astoria Energy LLC a/k/a SCS Astoria, 85 Main Street, Concord, Massachusetts

DEC Project No.: 2-6301-00647/00001

Project Description and Location

Astoria Energy LLC (the "applicant") proposes to construct and operate a combined-cycle electric generating facility that will produce 1,000 megawatts (MW). The facility will use natural gas as its primary source of fuel with low sulfur distillate fuel oil serving as a backup for up to 720 hours annually. The facility will consist of two independent two-on-one combined cycle power blocks. Each power block will contain two General Electric Frame 7F series combustion turbines (CT), two heat recovery steam generators and one steam turbine. The facility will utilize air-cooled condensers to condense the steam turbine exhaust; there will no water intake from the East River. When firing natural gas the facility will control nitrogen oxide (NOx) emissions by using dry low-NOx combustors and a selective catalytic reduction (SCR) system. When firing low distillate fuel oil, the facility will control NOx emissions by injecting water into the CT and using the SCR system. The facility stack will be 269 feet high.

The project site is located at 17-10 Steinway Street, Astoria, Queens. The site is currently a fuel oil storage and distribution terminal operated by Castle Astoria Terminals, Inc. ("Castle Oil"), and is zoned M3-1 Heavy Manufacturing under the New York City Zoning Resolution. The project site currently contains several large fuel oil tanks. Two existing storage tanks will be refurbished and used to store approximately 12.6 million gallons of backup low sulfur distillate fuel oil.

State Pollutant Discharge Elimination System (SPDES) Permit Application

Pursuant to the New York State Environmental Conservation Law (ECL) 17-0823, the applicant has filed an application with the New York State Department of Environmental Conservation (DEC) to transfer and modify the SPDES storm water discharge permit issued to Castle Oil and modify the Best Management Practices Plan currently issued to Castle Oil for storm water management at the site. The existing permit includes two oil/water separators and associated outfalls. For facility operations, the storm water management system will be divided into three drainage areas. For two of the drainage areas, retention basins will be constructed which will be designed to retain the drainage area's runoff from the "first flush," the first one-half inch of precipitation. The third drainage area will not be developed and during operations the area's runoff will continue to drain via sheet flow into Steinway Creek. To address storm water discharges during construction, a Notice of Intent will be submitted for a General Construction Activity Storm water Permit prior to the start of construction. Facility wastewater (industrial and sanitary) will be discharged to the New York City Bowery Bay Pollution Control Facility, located adjacent to the project site on Steinway Street through the existing sewer connection to the project site. The total daily average of wastewater generated by the facility is estimated at 236,600 gallons.

The Department hereby provides notice of a complete application for the transfer and modification of the SPDES permit, and provides notice of the availability for review of a draft SPDES permit Fact Sheet.

Air Emissions Permit Applications

As allowed by Part 201 of Title 6 of the New York Compilation of Codes, Rules and Regulations (6 NYCRR), Astoria Energy has applied for a permit under Title V of the Clean Air Act Amendments of 1990 authorizing the construction and operation of the proposed facility. Pursuant to the requirements of ECL Article 19 Permits and Registrations), 6 NYCRR Part 201 and 6 NYCRR Subpart 231-2 Requirements for Emission Sources Subject to §§ 172 and 173 of the Clean Air Act, 42 USC §§ 7501 and 7503 on or after November 15, 1992), Astoria Energy has filed a complete application for the Title V permit. The Department hereby provides notice of the complete application and of the availability of a draft Title V permit for review, and a set of permit conditions for the facility. In accordance with 6 NYCRR Parts 621.5(d)(9) and 201-6.4(c), the Administrator of the United States Environmental Protection Agency (USEPA) has the authority to bar issuance of any Title V Facility Permit if it is determined not to be in compliance with applicable requirements of the Clean Air Act or 6 NYCRR Part 201.

Pursuant to the Phase II requirements of Title IV of the Clean Air Act Amendments of 1990, and 40 CFR § 72.6(a)(3), staff has reviewed Astoria Energy's Acid Rain Permit Application and determined that it is complete; a draft Title IV permit is also available for review.

The conditions in the draft permits authorize the construction and operation of the proposed facility pursuant to 6 NYCRR Subpart 201-6.1 and assure the proposed facility's conformance with requirements of 6 NYCRR Parts 201, 225, 227, 231, and 257, and all other applicable State air pollution regulations and Federal requirements as enforceable permit conditions.

In addition, DEC is concurrently issuing for public review and comment a Notice of Determination to Issue Prevention of Significant Deterioration (PSD) conditions pursuant to 40 CFR §§ 52.21 and 124.

The proposed facility is located in a severe non-attainment area for ozone; accordingly, the emissions of the ozone precursors, Nox and VOC, must be offset at a ratio of 1.3 to 1. The facility is also located in a moderate non-attainment area for CO, and must provide emissions offsets for CO at a ratio of 1 to 1. Astoria Energy has identified the Emission Reduction Credits (ERCs) that will be utilized for achieving Nox, CO and VOC emission offsets.

ADDITIONAL REGULATORY PROVISIONS

New York State Public Service Law

This project is subject to review pursuant to Article X of the New York State Public Service Law (Siting of Major Electric Generating Facilities) and requires a Certificate of Environmental Compatibility and Public Need (Certificate) from the New York State Board on Electric Generation Siting and the Environment (Siting Board) to construct and operate the proposed facility. The conditions contained in the draft permits identified above will be incorporated into the Article X hearing record for the proposed facility.

The DEC public hearings noticed below are being held contemporaneously and on a joint record with the related PSL Article X proceedings concerning the application filed by Astoria Energy for a Certificate (Siting Board Case 99-F-1191). For additional information concerning the PSL Article X application and related hearings go to the Department of Public Service internet site at: http://www.dps.state.ny.us./

NYS Environmental Conservation Law and Implementing Regulations

In addition to the regulations cited above, review of the subject SPDES, Title IV and Title V permit applications is administered pursuant to ECL Article 3, Title 3; ECL Article 17 (Water Pollution Control); ECL Article 19 (Air Pollution Control); 6 NYCRR Subpart 231-2 (Requirements for Emission Sources Subject to §§ 172 and 173 of the Clean Air Act , 42 USC §§ 7502 and 7503 on or after November 15, 1992); Part 621 (Uniform Procedures); Part 624 (Permit Hearing Procedures); and Parts 750 et seq. (State Pollutant Discharge Elimination System).

State Environmental Quality Review

Pursuant to 6 NYCRR 617.5(c)(35), the proposal is a Type II action.

Tentative DEC Staff Position and Document Availability

Department staff have determined that the subject applications are complete and have made a tentative decision to issue the permit. Accordingly, draft permits have been prepared. Staff have concluded that applicable statutory and regulatory criteria can be met through the imposition of special permit conditions. For the Part 201-6 Title V draft air permit, the Department has incorporated control technologies and emission limits proposed by the applicant and has independently established, with concurrence from Astoria Energy, a maximum sulfur limit of 0.033% for back up fuel oil to assure impacts remain below USEPA significance levels.

The application materials, as well as a draft SPDES permit, fact sheet and draft Title V permit and Title IV conditions are available for review at the following locations during normal business hours:

NYSDEC, Division of Environmental Permits, 47-40 21st Street, Long Island City, NY 11101-5407, attn: Elizabeth Clarke, 718/482-4079; Community Board 1, Queens County, 36-01 35th Ave., Astoria, NY 11106; Community Board 2, Queens County, 43-22 50th St., Woodside, NY 11377; Community Board 3, Queens County, 82-11 37th Ave., Suite 606, Jackson Heights, NY 11372; Astoria Branch, Queens Library, 14-01 Astoria Boulevard, Long Island City, NY 11102; Broadway Branch, Queens Library, 40-20 Broadway, Long Island City, NY 11103; The Central Library, 89-11 Merrick Boulevard, Jamaica, NY 11432; Corporation Counsel's Library, 100 Church Street #6-310, New York, NY 10007-2601; Hillcrest Branch Queens Library, 18705 Union Turnpike, Flushing, NY 11366-1704; Howard Beach Queens Library, 9206 156th Avenue, Jamaica, NY 11414-2722; Kew Gardens Library, 12501 Queens Boulevard, Floor 7 #722, Jamaica, NY 11415-1514; Mr. Gary E. Strong, Director, Queens Borough Public Library, 89-11 Merrick Boulevard, Jamaica, NY 11432; Steinway Branch, Queens Library, 21-45 31 Street, Long Island City, NY 11105; and William Hallock Park Memorial Library 455 1st Avenue, New York, NY 10016-9102. NYSDEC, Division of Environmental Permits, 50 Wolf Road, Room 538, Albany, NY 12233-1750, John J. Ferguson, Project Manager, 518/457-7718; Nicholas Garlick, Administrative Law Judge, NYSDEC Office of Hearings and Mediation Services, 50 Wolf Road, Room 423, Albany, NY 12233-1550, 518/457-3468.

Written Comments

All written comments on the draft SPDES permit and Part 201-6 air permit must be postmarked no later than April 19, 2001 and must be filed with DEC Project Manager John Ferguson at the above address.

All comments will be reviewed to determine if they raise substantive and significant issues warranting further review through adjudication. Specific comments must be supported by full documentation; references should be limited to readily available information. The draft PSD conditions referred to above are not subject to hearings pursuant to 40 CFR § 124.71(c)

PUBLIC HEARING AND ISSUES CONFERENCE

Legislative Public Hearing

Joint NYSDEC and NYSDPS public hearing sessions to receive unsworn statements from the public on the Article X applications, DEC permit applications and the draft permits, described above, will be held before ALJ Garlick and ALJ Harrison on April 18 & 19, 2001, at 7:00 pm - 10:00 pm in the Junior High School No. 141, 37-11 21st Ave., Astoria, NY. All persons, organizations, corporations, or government agencies which may be affected by the proposed project are invited to attend the hearing and to submit oral or written comments. It is not necessary to file in advance to speak at the legislative hearing. Lengthy statements should be in writing and summarized for oral presentation. Reasonable time limits may be set for each speaker to afford everyone an opportunity to be heard. Equal weight will be given to both oral and written statements. A separate NYSDPS public comment notice will be issued in the future.

The hearing location is reasonably accessible to persons with a mobility impairment. Interpreter services shall be made available to deaf persons at no charge upon written request to the ALJ at least 10 days prior to the hearing, pursuant to the State Administrative Procedures Act. A foreign language interpreter may be made available upon written request to ALJ Garlick 10 days prior to the hearing.

Issues Conference

A joint NYSDEC and NYSDPS pre-hearing issues conference is proposed and a separate pre-hearing notice will be issued by NYSDPS regarding this conference (case no. 99-F-1191). The NYSDEC Issues Conference is scheduled for May 2, 2001 and will continue from day to day as necessary. The issues conference will be held in the NYSDPS Offices, One Penn Plaza, 8th Floor, New York, NY (Manhattan) at 10:00. Based on the Issues Conference record, the ALJ will determine what issues require adjudication and will define the scope of such issues. The Issues Conference may be canceled if no filings for party status are received by the deadline listed below.

Filing for Party Status and Proposed Issues

To participate at the NYSDEC Issues Conference, persons must file a written petition requesting party status pursuant to 6 NYCRR 624.4(c) and 624.5(b). Any petition must fully identify the proposed party and the party's representative, the party's environmental interest, the statutory considerations relevant to the project, whether the request is for full party status or amicus status, and the precise grounds for opposing or supporting the project. Unelaborated statements of opposition to the project are not a sufficient basis to be granted party status.

In seeking full party status, the petitioner must propose issues that could result in permit denial, major modification of the proposed project, or the imposition of significant permit conditions. The petition must identify all statutory and regulatory requirements which may not be met, and explain why. If a petitioner intends to rely upon expert testimony, the petition must also include an offer of proof that specifies the witness, the nature of the arguments, any documentary evidence that the petitioner intends to present at the hearing, and the grounds upon which the assertions are based regarding the proposed issues. For amicus status, the filing must identify the nature of the legal or policy issues to be briefed, and provide a statement explaining why the proposed amicus is in a special position with respect to those issues.

All petitions must be received by April 19, 2001. One copy of any petition requesting either full party status or amicus status must be served upon the following individuals: ALJ Nicholas Garlick, NYSDEC Office of Hearings and Mediation Services, 50 Wolf Road, Albany, NY 12233-1550; ALJ Michael Harrison, NYSDPS, Office of Hearings and Alternative Dispute Resolution, 3 Empire State Plaza, Albany, New York 12223-1350; Franz Litz, Esq., DEC Office of General Counsel, 50 Wolf Road, Albany, New York 12233-1500; David Drexler, Esq., NYSDPS Office of General Counsel, 3 Empire State Plaza, Albany, New York 12223-1350; Leonard Singer, Esq. Couch White LLC, 540 Broadway, PO Box 22222, Albany, New York 12201-2222.

Service by fax is NOT authorized.

Daniel E. Louis
Chief Administrative Law Judge

February 28, 2001

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