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Bethpage Energy Center 3, LLC (June 2004)

June 2, 2004


APPLICANT: Bethpage Energy Center 3, LLC.
2 Atlantic Avenue, 3rd Floor
Boston, MA 02110

APPLICATION No. 1-2824-00947/00008 Article 19 - Air Pollution Control
1-2824-00947/00006 Article 19 - Title IV, Acid Rain Deposition

PROJECT LOCATION: TBG Cogen Partners, 939 South Broadway, Hicksville.

PROJECT DESCRIPTION: Bethpage Energy Center 3, LLC, a subsidiary of Calpine Corporation (the Applicant), proposes to construct and operate a 79.9 MW electric generating station (the project) adjacent to the existing TBG Cogen Partners cogeneration facility and the CPN Bethpage 3rd Turbine, Inc. simple cycle gas turbine located at 939 South Broadway, Hicksville. This project is an expansion of the existing power generation facility, which consists of a cogeneration plant and a simple cycle power plant.

The project entails the construction and operation of a combined cycle power plant. The new equipment includes a General Electric (GE) LM 6000 PC SPRINT Combustion Turbine Generator (CTG), a two-cell wet cooling tower with a drift eliminator to serve the inlet air chillers, a Once Through Steam Generator (OTSG) with duct burners, a steam turbine generator (STG), a five-cell wet cooling tower with a drift eliminator, and associated balance-of-plant systems and facilities. The total new electrical power from this project will be limited to a net output of 79.9 MW to the electric grid. The project is scheduled for completion by summer 2005.

The CTG and duct burners will be fueled exclusively by natural gas. The CTG will utilize a water injection system and selective catalytic reduction (SCR) to control emissions of nitrogen oxides (NOx). An oxidation catalyst will be used to control emissions of carbon monoxide (CO) and volatile organic compounds (VOCs). Emissions from the CTG will exhaust through a single 100-foot stack.

The facility's peak water supply requirements will be approximately 700,000 gallons per day and will be provided by the Northrop Grumman Corp. (NGC), which currently supplies the existing facility. Average water supply requirements will be approximately 350,000 gallons per day. Sanitary wastewater, pretreated combustion turbine wash water and boiler blowdown will be sent to the Nassau County sewer system. Stormwater from site runoff will be managed by the existing TBG Cogen Partners facility system of interconnected catch basins and storm drains which discharge into the larger NGC system which ultimately discharges into two groundwater recharge basins located immediately southwest of the site. Stormwater from all process and secondary containment areas will be trucked off-site to an appropriately licensed disposal facility.

PERMITS: The Applicant has filed individual applications seeking the issuance of (a) a preconstruction state facility air pollution control permit pursuant to pursuant to Article 19 of the Environmental Conservation Law ("ECL") and Part 201 of Title 6 of the New York Compilation of Codes, Rules and Regulations ("6NYCRR"), and (b) a Phase II acid rain permit pursuant 40 CFR Part 72 as incorporated by reference at 6 NYCRR §200.10. The DEC has tentatively determined that the applications meet all air pollution control requirements of ECL Article 19, 6NYCRR Part 201, Part 204, Subpart 231-2, Part 227, and Title IV (Acid Rain) of the Clean Air Act Amendments of 1990. 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 TBG Cogen Partners facility is an existing major stationary source and thus the project is treated as a modification to that existing facility. The potential to emit from the proposed project would be less than the Prevention of Significant Deterioration (PSD) thresholds of 40 CFR 52.21(b)(i), and therefore the project is not subject to PSD review.

Emission reduction credits (ERCs): The project is subject to Nonattainment New Source Review pursuant to 6 NYCRR 231-2 and the applicant is required to obtain emissions offsets in the form of ERCs for NOx. Pursuant to 6 NYCRR Subpart 231-2, the applicant has identified the necessary 34.62 tons of NOx ERCs. 25.0 tons of NOx ERCs were obtained from Morgan Stanley (originally derived from the Con Edison Astoria facility DEC ID # 2-6301-00006), and 9.62 tons of NOx ERCs were obtained from the Calpine Stony Brook facility (DEC ID # 1-4722-02441/00005). This notice also serves as the public notice for the ERCs and provides for the public comment period required by 6 NYCRR 231-2.10.

SEQRA STATUS: Pursuant to the State Environmental Quality Review Act ("SEQR", ECL Article 8 and 6 NYCRR Part 617), Long Island Power Authority (LIPA), as lead agency, has determined that the project will not result in significant adverse environmental impact. LIPA issued a Negative Declaration on May 26, 2004

PUBLIC HEARING: A legislative hearing session for the receipt of public comments on the application will be held at 7:00 PM on Wednesday, June 23, 2004 at the following location:

Bethpage High School
10 Cherry Avenue
Bethpage, New York 11714

All persons, organizations, corporations, or government agencies who may be affected by the proposed project are invited to attend the hearing and to submit oral or written comments on the application. It is not necessary to file in advance to speak at the hearing. Lengthy comments should be submitted in writing. Equal weight will be given to both oral and written statements. The Administrative Law Judge (ALJ) may limit the time available for oral comments to 5 minutes per person to ensure that all persons have an opportunity to be heard. The hearing facility is reasonably accessible to the mobility impaired.

WRITTEN COMMENTS: Parties may file written comments with the NYS DEC Division of Environmental Permits, Department of Environmental Conservation, 625 Broadway, Albany, New York 12233-1750, attn: Kevin Kispert, Project Manager. Written comments must be postmarked no later than July 2, 2004.

DOCUMENT AVAILABILITY: The Department has reviewed the application materials, determined that they are complete pursuant to 6NYCRR Parts 201 and 621, made a tentative determination to approve the application and has prepared a draft permit. It has been determined that all statutory and regulatory criteria can be met through the imposition of special permit conditions. The application materials, as well as a draft air permit, are available for review during normal business hours, Monday through Friday, at the following locations:

1. NYSDEC Division of Environmental Permits, 625 Broadway, Albany, New York 12233-1750.
Contact: Kevin Kispert. (518) 402-9161.

2. NYSDEC Region 1, SUNY Campus, Loop Road, Building 40, Stony Brook, NY 11790-2356.
Contact John Pavacic. (631) 444-0365.

3. Bethpage Public Library, 47 Powell Avenue in Bethpage. (516) 931-3907.

STATUTORY and REGULATORY PROVISIONS: The air permit applications are being reviewed pursuant to ECL Article 8 (SEQRA), Article 19 (Air Pollution Control), Article 70 (Uniform Procedures Act), 6NYCRR Part 201 (General Provisions - Air Pollution Control), Part 617 (SEQR), and Part 621 (Uniform Procedures).

June 2, 2004
Albany, New York

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