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Besicorp-Empire Development Company, LLC (January 2004)

January 21, 2004

STATE OF NEW YORK
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
ANNOUNCEMENT OF SUPPLEMENTAL PUBLIC COMMENT PERIOD, and
SUPPLEMENTAL COMBINED NOTICE OF USE OF EMISSION REDUCTION CREDITS,
and ISSUES CONFERENCE

Applicant: Besicorp-Empire Development Company, LLC, 1151 Flatbush Road, Kingston, NY 12401.

Application Number: DEC # 4-3814-00052/00001 - Part 201 Air State Facility PSC Case # 00-F-2057

Project Description: The Empire State Newsprint Project will consist of a recycled newsprint manufacturing plant (RNMP) and a nominal 505 MW combined cycle cogeneration plant.

The recycled newsprint manufacturing plant will be located on the northern portion of the site where the existing BASF manufacturing plant is located. A majority of the existing buildings at the BASF manufacturing plant will be demolished to accommodate construction of the recycling facility. The recycled newsprint manufacturing plant will consist of a deinking plant, stock preparation and paper mill, and finishing and shipping. The recycled newsprint manufacturing plant will process approximately 430,000 metric tons/year of waste newspapers and magazines to produce 330,000 metric tons/year of 100 percent-recycled newsprint.

The cogeneration plant will supply steam and electricity (approximately 55 MW) to the recycled newsprint manufacturing plant. The remainder of the electricity generated will be offered on the merchant market. The cogeneration plant is configured with two GE Frame 7FA combustion turbines with dry low-nitrogen oxide (NOx) combusters, heat recovery steam generators (HRSGs), a steam turbine and an auxiliary boiler. With all of these components of the facility included, the maximum electrical output will be 670 MW. The cogeneration plant will use natural gas as the primary fuel and low sulfur (0.05%) distillate as the secondary fuel in the combustion turbines and duct burners within the HRSGs. The auxiliary boiler will also fire natural gas and low-sulfur distillate fuel. Distillate fuel use will be limited up to the equivalent of 1,080 hours per year at 100 percent load.

This project was the subject of a public notice issued May 31, 2002. At the time of the first notice, the source specific Emission Reduction Credits had not been identified by the applicant. The applicant has now obtained the necessary ERCs and submitted the required Use of ERC Forms, consistent with 6 NYCRR 231-2.4 and 231-2.10.

Emission Reduction Credits

The Department hereby provides notice that the Applicant is intending to use Emission Reduction Credits (ERCs) to offset potential emissions from the RNMP and cogeneration facility. The total amount of ERCs needed are 188 tons per year of VOCs and 258 tons per year of NOx. The ERCs to be used have been supplied from the following sources:

Pollutant Amount Acquired (TPY) Source
VOC 190 Universal Packaging, Saratoga County, NY
TOTAL 190 TPY TOTAL VOC ERCs REQUIRED = 188 TPY
NOx 260 Rochester Gas & Electric, Beebee Station, Monroe County, NY
TOTAL 260 TPY TOTAL NOx ERCs REQUIRED = 258 TPY

All ERCs were acquired from sources within New York State and are currently on the "Emission Reduction Credit Registry." All ERCs comply with the "equal or higher" than non-attainment class area and "contribution test" requirement of subpart 231-2 and Air Guide 26, Appendix D. The New York State ERCs registry will be amended to reflect the committed ERCs.

Written Comments: All written comments about the Applicant's intended use of Emission Reduction Credits (ERCs) to offset potential emissions from the RNMP and cogeneration facility must be filed with the NYSDEC Office of Hearings and Mediation Services, 625 Broadway, First Floor, Albany, New York 12233-1550, attn: Associate Examiner/ALJ P. Nicholas Garlick . Written comments must be postmarked no later than February 23, 2004.

Public comments on the ERCs do not constitute evidence but may be used by the Associate Examiner as a basis to inquire further of the parties and potential parties at the supplemental issues conference, as set forth in the Department's Permit Hearing Regulations (6 NYCRR part 624). Specific comments must be supported by full documentation and references should be limited to readily available information.

Issues Conference

A supplemental pre-adjudicatory Issues Conference will be held on February 25, 2004 at 1:30 P.M., at the NYSDEC Headquarters, 625 Broadway, Albany, New York 12233, first floor conference room. Participation at the NYSDEC Issues Conference is limited to the NYSDEC Staff, the Applicant and those persons who already have received party status or who are requesting party status in the NYSDEC permit hearing. Party status in this proceeding is not automatically conferred upon the parties to the PSL Article X proceeding, other than NYSDEC Staff and the Applicant. The purpose of the supplemental Issues Conference is to determine party status for any person who has properly filed a petition regarding the ERCs component of the project, as indicated below, and to define, narrow and, if possible, resolve proposed adjudicable issues concerning the ERCs component of the project that have been raised by the Issues Conference participants. Any persons requesting party status pursuant to this supplemental notice, must appear or be represented at the Issues Conference so that all proposed issues may be fully discussed. In the event no petitions for party status are filed, the issues conference may be canceled.

Filing for Party Status and Proposed Issues: To participate at the supplemental NYSDEC Issues Conference concerning the ERCs component of the project, parties must file a written petition requesting party status, including the facts intended for presentation, pursuant to 6 NYCRR 624.4(b) and 624.5(c). In addition, any petition must fully identify the proposed party and the name(s) of the person(s) who will act as the party's representative(s), the party's environmental interests, the statutory considerations relevant to the ERC component of the project, whether the request is for full party status or amicus status, and the precise grounds for opposing or supporting the ERC component of the project. Mere opposition to the project is not a sufficient basis to be granted party status. The NYSDEC Permit Hearing Regulations, 6 NYCRR part 624, may be accessed via the NYSDEC/OHMS web page at http://www.dec.state.ny.us/ (click on "Hearings and Mediations" under "About DEC" and then click on "Guide to Permit Hearings") .

One copy of any petition requesting either full party status or amicus status must be filed with the ALJ/Examiners identified below and served upon the following other individuals:

  1. J. Michael Harrison , Administrative Law Judge/PSL Art. X Presiding Examiner, NYSDPS, Office of Hearings and Alternative Dispute Resolution, 3 Empire State Plaza, Albany, New York 12223-1350;
  2. P. Nicholas Garlick, Administrative Law Judge/PSL Art. X Associate Examiner, NYSDEC, Office of Hearings and Mediation Services, 625 Broadway, Albany, NY 12233-1550;
  3. Mark Sanza, Esq., Associate Attorney, Office of General Counsel, NYSDEC 625 Broadway, Albany, New York 12233-1500;
  4. Paul Agresta, Esq., NYSDPS, 3 Empire State Plaza, Albany, New York 12223-1350; and
  5. Kevin Bernstein, Esq., Bond, Schoeneck & King, LLP, One Lincoln Center, Syracuse, New York, 13202-1355

Electronic filing of petitions is acceptable, but must be followed by a paper copy via first class U.S. mail, postmarked by Febraury 20, 2004. Filings by E-mail must be transmitted both in Microsoft Word 97 , Wordperfect 8.0 or compatible wordprocessing platform (extension ".doc") and Rich Text Format (extension ".rtf").

Document Availability:

The NYSDEC application materials, including a draft preconstruction (air) permit, fact sheet, ERCs forms and supporting documentation are available for review at the following locations between 9:00 AM and 4:00 PM, Monday through Friday:

  1. NYSDEC Office of Hearings and Mediation Services, 625 Broadway, First Floor, Albany, NY 12233-1550;
  2. NYSDEC Division of Environmental Permits, Department of Environmental Conservation, 625 Broadway, Road, Albany, New York 12233-1750. Contact: Christopher Hogan, Project Manager, at (518) 402-9151.

NYS ECL and Implementing Regulations: In addition to the specific statutes and regulations cited above, the above-reference air preconstruction permit is being processed by NYSDEC Staff pursuant to ECL article 3, title 3 (General Functions), ECL article 19 (Air Pollution Control), 6 NYCRR subpart 231-2 (Requirements for Emission Sources Subject to sections 172 and 173 of the Clean Air Act, 42 USC §§7502 and 7503 on or after November 15, 1992), 6 NYCRR part 621 (Uniform Procedures), and part 624 (Permit Hearing Procedures).

James T. McClymonds
Chief Administrative Law Judge

Albany, New York
January 21, 2004

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