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PSEG Power New York, Inc. (October 2001)

October 17, 2001

STATE OF NEW YORK
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
ANNOUNCEMENT OF PUBLIC COMMENT PERIOD, and
COMBINED NOTICE OF COMPLETE APPLICATIONS,
PUBLIC HEARING and ISSUES CONFERENCE

This Notice Reschedules the Legislative Hearing, Issues Conference and deadline for Petitions for Party Status. It also extends the public comment period. The original Notice was published on September 5, 2001.

This Notice does not extend the public comment period for the "Notice of Determination to Issue Prevention of Significant Deterioration (PSD) Permit published in the ENB on September 5, 2001.

Applicant: PSEG Power New York Inc, 80 Park Plaza, Newark, NJ 07101

Application Number: DEC # 4-0122-00044/00021; PSC Case # 97-F-2162

Project Description: The Applicant, PSEG Power New York Inc (PSEGNY), proposes to construct and operate the Bethlehem Energy Center (BEC), a gas-fired combined cycle power generation facility consisting of three General Electric 7 FA combustion turbines (CTGs), three heat recovery steam generators (HRSGs), one steam turbine generator (STG) and associated balance-of-plant systems and facilities. The primary fuel will be natural gas and the facility will have the capacity to use low (0.04 percent) sulfur distillate oil as a secondary fuel. The nominal electric generating capacity of the proposed facility will be approximately 750 megawatts (MW).

The Applicant proposes to install an oxidation catalyst system to reduce carbon monoxide (CO) and volatile organic compounds (VOC), and a selective catalytic reduction system (SCR) to reduce NOx. The air emissions resulting from the turbines and generators will be vented through three 248 foot high exhaust stacks. The Applicant proposes to utilize evaporative mechanical draft cooling towers with a closed-loop circulating-water system.

The BEC will be located on the site of an existing power generating facility, the Albany Steam Station, on State Route 144 in Glenmont, Town of Bethlehem, Albany County, on an 84 acre parcel owned by the applicant. The Albany Steam Station will be permanently retired upon commencement of commercial operation of the BEC. The entire project area is zoned for Heavy Industrial use. The BEC is bounded on the west by State Route 144, on the east by the Hudson River, on the south by an unused oil terminal owned by Niagara Mohawk, and on the north by unused property owned by Niagara Mohawk.

State Pollutant Discharge Elimination System (SPDES)

SPDES Permit: Pursuant to ECL §17-0823, the Applicant has filed an application with the DEC for a SPDES wastewater discharge permit and a request for certification that its discharges will comply with the applicable provisions of §§301, 302, 303, 306 and 307 of the Federal Clean Water Act. The application was filed on July 3, 2001, and as amended is consistent with the requirements of §402 of the Federal Clean Water Act for discharges from new steam electric generating facilities.

The DEC concludes that the application for this permit is complete within the meaning of 6 NYCRR §621.1(d) and has tentatively determined to issue the permits. Consequently the DEC has prepared draft permits pursuant to 6 NYCRR §621.5(d)(7).

The Applicant proposes to withdraw an average of 4.72 million gallons per day (MGD) (8.53 MGD maximum) from the Hudson River via an intake structure located at the facility. Sanitary wastewater will be routed to the publicly owned treatment works at the Town of Bethlehem. Wastewater will be subject to appropriate monitoring and treatment and discharged to the Hudson River via existing outfalls. Stormwater will be discharged to the Hudson River via existing outfalls.

The intake is from the Hudson River. The discharges covered under the draft SPDES permit are described as follows:

Outfall 001 (Cooling Tower Blowdown and Facility Service Water) will discharge to the Hudson River.

Outfall 002 (Site Runoff) will discharge to the Hudson River.

Outfall 003 (Combination of suboutfalls 003A and 003C) will discharge to the Hudson River.

Outfall 03A (Low Volume Wastestreams-Equipment and Floor Drains) will be sent to an oil/water separator and will discharge to the Hudson River via Outfall 003.

Outfall 03C (Wastewater Treatment Plant Effluent and HRSG Blowdown) will be sent thru on-site waste water treatment facility and discharged to the Hudson River via Outfall 003.

Outfall 004 (Oil Storage Area Runoff) will discharge to the Hudson River.

Outfall 04A (Hydrostatic Tank Test Water) will discharge to the Hudson River via Outfall 004.

Outfall 005 (Chlorine Analyzer) will discharge to the Hudson River.

Air Permits:

The Applicant has filed individual applications seeking the issuance of (a) a preconstruction permit pursuant to 6 NYCRR §201-6.1(b) and Subpart 201-5, (b) a Prevention of Significant Deterioration (PSD) permit pursuant to 40 CFR §51.21 as incorporated by reference at 6 NYCRR §200.10, and (c) a Phase II acid rain permit pursuant 40 CFR Part 72 as incorporated by reference at 6 NYCRR §200.10. The DEC concludes that the applications for these permits are complete within the meaning of 6 NYCRR §621.1(d) and has tentatively determined to issue the permits. Consequently, the DEC has prepared draft permits pursuant to 6 NYCRR §621.5(d)(7).

The conditions in the draft preconstruction permit authorizes the construction and operation of the proposed facility and assures conformance of the BEC with all applicable State and federal air pollution control regulations including the requirements of 6 NYCRR Parts 201, 204, 225, 227, 231, and 257, as well as all New Source Performance Standards (NSPS) at 40 CFR Part 60. Pursuant to 6NYCRR Subpart 231-2, the Applicant had created internal offsets of 838.9 tons of NOx and 23.7 tons of VOC from the existing Albany Steam Station which will be permanently retired upon commencement of commercial operation of the Bethlehem Energy Center. These offsets were established as Emission Reduction Credits (ERCs) in the Environmental Notice Bulletin (ENB) on 7/18/01. No public comments were received on the ERCs notice. These ERCs "offset" the project emissions of 446.2 tons of NOx and 56.3 tons of VOCs such that the net increase was below the thresholds of 231-2 applicability. The current notice also serves as the public notice of the ERCs pursuant to the requirements of 6 NYCRR Section 231-2.10.

The terms and conditions of the draft PSD permit are not subject to public hearing under State administrative procedures. Reference to the PSD permit in this notice is for informational purposes only. The DEC is concurrently issuing for public comment a Notice of Determination to Issue Prevention of Significant Deterioration (PSD) Permit pursuant to 40 CFR §52.21 and Part 124.

Additional Regulatory Provisions

NYS Public Service Law (PSL): This project requires a Certificate of Environmental Compatibility and Public Need (Certificate) to construct and operate, and is subject to review pursuant to New York State Public Service Law (PSL) Article X (Siting of Major Electric Generating Facilities). The PSL Article X application was filed on July 2, 2001. The conditions contained in the draft permits identified in this notice will be incorporated into the Article X hearing record for the (BEC).

The DEC public hearings noticed below are being held jointly with the related PSL Article X proceedings concerning the Article X application filed by PSEG Power, for a Certificate for the BEC (PSC Case #97-F-2162). For additional information concerning the PSL Article X application and related hearings go to the Department of Public Service web page at: http://www.dps.state.ny.us/bethlehem.htm

NYS Environmental Conservation Law and implementing regulations: In addition to the specific statutes and regulations cited above, the subject SPDES and the preconstruction and Phase II title IV air permit applications are being processed by the DEC pursuant to ECL Article 3, Title 3 (General Functions), ECL Article 17 (Water Pollution Control), ECL Article 19 (Air Pollution Control), and 6 NYCRR Subparts 201-6 (Permits and Registrations) and 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- 758 (State Pollutant Discharge Elimination System).

SEQRA Status: The DEC Staff has determined that the proposal is a Type II action as designated by 6 NYCRR §617.5(c)(35). A comprehensive environmental review is being conducted pursuant to PSL Article X.

Tentative DEC Staff Position and Document Availability: The DEC has reviewed the Applicant's application materials and supporting documentation and has determined that they are complete pursuant to 6 NYCRR Part 621. A tentative determination has been made to approve this application and prepare draft permits. It has been determined that all air program statutory and regulatory criteria can be met through the imposition of special permit conditions. For the 201-6 draft air preconstruction permit, the DEC has incorporated control technologies and emission limits proposed by the Applicant, and has independently developed additional conditions to ensure compliance with all regulatory requirements. The background documentation of this determination is available in the "fact sheets" and the administrative record for the project.

The application materials, fact sheet, the draft air preconstruction permit, draft Phase II title IV permit, and the draft SPDES permit are available for review at the following locations during normal business hours between 9:00 AM and 4:00 PM, Monday through Friday:

  1. NYS DEC Office of Hearings and Mediation Services, 625 Broadway, First Floor, Albany, NY 12233-1550. Contact: Administrative Law P. Nicholas Garlick at (518) 402-9003;
  2. NYS DEC Division of Environmental Permits, 625 Broadway, Albany, New York 12233-1750. Contact Kevin Kispert, Project Manager, at (518) 402-9161; and
  3. NYS Department of Environmental Conservation, Region 4 Headquarters, 1150 North Westcott Rd., Schenectady, NY 12306. Contact: Michael T. Higgins at (518)357-2069.

Written Comments: All written comments about the draft preconstruction permit, draft Phase II title IV permit, and draft SPDES permit must be postmarked by December 3, 2001, and sent to Administrative Law Judge P. Nicholas Garlick, NYS DEC Office of Hearings and Mediation Services, 625 Broadway, First Floor, Albany, New York 12233-1550.

All public comments on the permits will be reviewed to determine whether they raise substantive and significant issues that warrant further review through adjudication. Specific comments must be supported by full documentation and references should be limited to readily available information. The draft PSD permit referenced above is not subject to hearings under State administrative procedures.

Public Hearings Sessions and Issues Conference

Legislative Public Hearing: Legislative hearing sessions to receive unsworn statements from the public on the applications and the draft permits, described above, will be held before Administrative Law Judge Nicholas Garlick , on Monday, December 3, 2001 at 7 p.m., at the Town of Bethlehem, Town Hall, 445 Delaware Avenue, Delmar, New York. As stated above, this hearing is being held on a joint record with the related PSL Article X proceedings. 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. The hearing location is fully accessible to persons with a mobility impairment. Interpreter services shall be made available to deaf persons at no charge upon written request to the Administrative Law Judge, identified above, at least 10 days prior to the hearing, pursuant to the State Administrative Procedures Act.

Issues Conference: A pre-adjudicatory hearing Issues Conference is scheduled to be held Wednesday, December 12, 2001 at 10:00 a.m. at Department of Public Service Offices, 3rd Floor, Agency Building 3, 3 Empire State Plaza, Albany, New York, and continue day to day at the same location, if necessary. At the Issues Conference, the ALJ will determine what issues, if any, 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. Participation in the DEC Issues Conference will be limited to the DEC Staff, the Applicant and those persons requesting party status pursuant to 6 NYCRR §624.5 in advance of the Issues Conference. Parties to the related PSL Article X proceeding are not automatically granted full party status, and must file a petition pursuant to 6 NYCRR §624.5 to participate in the DEC Issues Conference. The draft PSD permit conditions referred to above is not subject to an adjudicatory or evidentiary hearing.

Filing for Party Status and Proposed Issues: To participate in the Issue Conference concerning the draft permits identified in this Notice (except the PSD permit), parties must file a written petition requesting party status including the facts intended for presentation pursuant to 6 NYCRR §§624.4(c) and 624.5(b). 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 project, whether the request is for full party status or amicus status, and the precise grounds for opposing or supporting the project. Mere opposition to the project is not a sufficient basis to be granted party status.

If 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 party intends to rely upon expert testimony, the petition must also include an offer of proof that specifies the witness(es), the nature of the arguments, any documentary evidence that the party 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 3:00 p.m. November 28, 2001. One copy of any petition requesting either full party status or amicus status must be served upon the following individuals:

  1. Administrative Law Judge Nicholas Garlick, Office of Hearings and Mediation Services, NYSDEC, 625 Broadway, First Floor, Albany, NY 12233-1550;
  2. Administrative Law Judge William Bouteiller, Office of Hearings and Alternative Dispute Resolution, NYSDPS, 3 Empire State Plaza, Albany, New York 12223-1350;
  3. Thomas J. McGuire, Esq., Senior Attorney, Office of General Counsel, NYSDEC, 625 Broadway, Albany, NY 12233-1500;
  4. David Van Ort, Esq., Office of General Counsel, NYSDPS, 3 Empire State Plaza, Albany, New York 12223-1350; and
  5. Richard M. Cogen, Esq., Nixon Peabody LLP, Omni Plaza, Suite 900, 30 South Pearl Street, Albany, NY 12207-3497.

Service by fax is NOT authorized. As previously explained, parties to the related PSL Article X proceeding are not automatically granted full party status with respect to the DEC environmental permits and must file a petition pursuant to 6 NYCRR §624.5 in order to participate in the DEC Issues Conference.

Daniel E. Louis
Chief Administrative Law Judge

Albany, New York
October 17, 2001

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