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Southern Energy Bowline, LLC

January 16, 2001

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

Applicant: Southern Energy BowlineL.L.C., 400 Rella Boulevard, Suite 157, Suffern, New York 10901

Application Number: DEC # 3-3922-0003/00015, SPDES # NY0264342, (State Siting Board Case # 99-F-1164)

Project Description: The Applicant, Southern Energy Bowline, L.L.C., proposes to construct and operate Bowline Unit #3, a combined cycle electric generating facility consisting of three General Electric 7 FA combustion turbine generators (CTG), three heat recovery steam generators (HRSG), one steam turbine generator (STG) and associated balance-of-plant systems and facilities. The primary fuel will be natural gas and low (0.05 percent) sulfur fuel oil will be used for back-up. The nominal electric generating capacity of the proposed Facility will be approximately 750 megawatts (MW).

The proposed facility will be located adjacent to two existing power facilities, Bowline Units #1 and #2, off of Samsondale Avenue in the Town of Haverstraw, Rockland County, New York, on part of a 257 acre parcel owned by the Applicant. The entire project area is zoned Planned Industrial Office. The project site is bounded on the east by Bowline Point Park and the Hudson River, on the west by a public park (Peck's Pond), on the south by combined residential and light industry properties, and on the north by Keahon Auto Wreckers and approximately 97 acres of vacant land which is also part of the 257 acres of Bowline Generating Station property.

State Pollutant Discharge Elimination System (SPDES) Permit Application

SPDES Permit: Pursuant to ECL §17-0823, the Applicant has filed an application with the New York State Department of Environmental Conservation (NYSDEC) for a State Pollutant Discharge Elimination System (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 March 20, 2000, 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 Applicant seeks approval to discharge wastewater to a collection system and then to the Hudson River. Storm water runoff will be discharged to onsite drainage areas during the construction and operation of the proposed facility. Sanitary wastewater will be routed to existing treatment facilities on the site.

The Intake is from the Hudson River via Bowline Pond. The discharges covered under the draft SPDES permit are described as follows:

Outfall 001 (Cooling Tower Blowdown) will discharge to the Hudson River.

Outfall 01A (Demineralization Regenerant Backwash / Rinse) will be used as cooling tower make-up and will discharge to the Hudson River via Outfall 001.

Outfall 01B (Boiler Blowdown) will be used as cooling tower make-up and will discharge to the Hudson River via Outfall 001.

Outfall 01C (Carbon Filter Backwash) will be used as cooling tower make-up and will discharge to the Hudson River via Outfall 001.

Outfall 01D (Floor Drains) will be sent to an oil/water separator, used as cooling tower make-up and will discharge to the Hudson River via Outfall 001.

Outfall 002 (Stormwater Sedimentation Pond No. 3) will discharge to the Minisceongo Creek.

Outfall 003 (Stormwater Sedimentation Pond No. 1) will discharge to the Minisceongo Creek.

Outfall 004 (Stormwater Sedimentation Pond No. 2) will discharge to the Minisceongo Creek.

Air Permit Applications

Preconstruction (Air) Permit and Certificate to Operate: Title V of the federal Clean Air Act requires Applicants of major sources of air pollutants to obtain preconstruction air permits. As allowed by 6NYCRR Part 201, Southern Energy has opted to obtain a preconstruction permit and certificate to operate, authorizing the construction and operation of the proposed Bowline Unit 3 facility, pursuant to 6 NYCRR Subpart 201-6.1, prior to the Title V permit application. Pursuant to the requirements of ECL Article 19, and 6 NYCRR Part 201 (Permits and Registrations) and 6 NYCRR Subpart 231-2 (Requirements for Emission Units Subject to the Regulation on or after November 15, 1992), Southern Energy has filed a complete application with the NYSDEC for this preconstruction air emissions permit and the NYSDEC hereby notices a complete application and draft preconstruction permit and certificate to operate for the purpose of issuing a State Facility Permit, along with a set of permit conditions for the facility. The conditions in NYSDEC's draft preconstruction permit authorize the construction and operation of the proposed facility pursuant to 6 NYCRR Subpart 201-6.1 and assure conformance of the Bowline Unit 3 facility with requirements of 6 NYCRR Parts 201, 225, 227, 231, and 257, as well as all other applicable State air pollution regulations and Federal requirements pertaining to enforceable permit conditions.

In addition to the Part 201-6.1 preconstruction permit and certificate to operate, on November 11, 2000 the NYSDEC issued for public comment a Notice of Determination to Issue a Prevention of Significant Deterioration (PSD) Permit pursuant to 40 CFR 52.21 and 124.

Additional Regulatory Provisions

NYS Public Service Law (PSL): 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) to construct and operate a 750 megawatt natural gas-fired combined cycle combustion turbine generating facility. The Article X application was filed on March 20, 2000. To date, it has been subject to public hearings held on September 12, 2000, at the Town Hall in Garnerville, New York.

The conditions contained in the draft permits identified in this notice will be incorporated into the Article X hearing record for the Bowline Unit #3 generating project. The entire Article X record that exists to date also hereby is incorporated by reference into the record for this proceeding.

The NYSDEC Issues Conference described below is being held contemporaneously and on a joint record with the related PSL Article X proceedings concerning the application for a Certificate filed by Southern Energy Bowline, L.L.C. (Siting Board Case #99-F-1164). Coordinated with the publication of this NYSDEC hearing notice, the Secretary of the State Siting Board will issue a Notice of Issues and Prehearing Conference. For additional information concerning the PSL Article X application and related documents, go to the Department of Public Service web page at: "http://www.dps.state.ny.us/bowline.htm" (click on "Access Electronic File Room documents regarding Case 99-F-1164").

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

Notice of Complete Application: The NYSDEC Staff has reviewed the application materials and supporting documentation and has determined that the materials are complete for the purpose of commencing departmental review, pursuant to ECL Article 70 and 6 NYCRR Part 621.

Tentative NYSDEC Staff Position: The NYSDEC Staff has made a tentative determination to approve this application and Staff has prepared draft SPDES and Air permits. NYSDEC Staff has determined that all statutory and regulatory criteria can be met through the imposition of special permit conditions, as set forth in the draft permits. For the 201-6 permit to construct and certificate to operate, NYSDEC Staff has incorporated control technologies and emission limits proposed by the Applicant and has independently established, with concurrence from USEPA Region II Staff, a set of additional conditions which are determined to be necessary to achieve Best Available Control Technology (BACT) for CO and Lowest Achievable Emission Rate (LAER) for Volatile Organic Compounds (VOC). The background documentation for this determination is available in the "fact sheets" and in the NYSDEC administrative record for the project. Specifically, in Staff's determination on VOC LAER (as well as CO BACT for the draft PSD permit), NYSDEC Staff is proposing the installation of a CO catalyst which has been demonstrated to achieve a minimum of one-third reduction in VOC emissions over those achieved by best combustion technology. However, NYSDEC Staff is proposing a one hour VOC limit of 1.2ppm (gas burning, without duct firing) in recognition of information from CO catalyst manufactures and from other permit applications which identify a concern with the ability of various turbine types, including those for two facilities which have been permitted in the Northeast at a 1.0ppm VOC limit, to achieve this lower limit. Thus, in addition to the proposed permit conditions, NYSDEC Staff is seeking specific comments on this issue.

Written Comments: All written comments about the draft SPDES permit and 201-6 air preconstruction permit and certificate to operate must be filed with the NYSDEC Division of Environmental Permits, Department of Environmental Conservation, 50 Wolf Road, Road, 538, Albany, New York 12233-1750, attn: Robert L. Ewing, Project Manager. Written comments must be postmarked no later than February 21, 2001.

All public comments on the application and the draft SPDES and Subpart 201-6 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.

Public Hearings Sessions and Issues Conference

Legislative Public Hearing: A Legislative Hearing to receive unsworn statements from the public on the NYSDEC permit applications and the NYSDEC draft permits, described above, will be held before Administrative Law Judge (ALJ) Kevin J. Casutto, on February 21, 2001 at 6:30 P.M., at the Haverstraw Town Hall Auditorium, 1 Rosman Road, Garnerville, New York. 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 ALJ at least 10 days prior to the hearing, pursuant to the State Administrative Procedures Act (see address, below).

Issues Conference: A pre-adjudicatory Issues Conference will be held on March 6, 2001 at 12:00 P.M., at the Haverstraw Town Hall Auditorium, 1 Rosman Road, Garnerville, New York, and will continue on successive days, as necessary. Participation at the NYSDEC Issues Conference is limited to the NYSDEC Staff, the Applicant and those persons 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 Issues Conference is to determine party status for any person who has properly filed a petition as indicated below, and to define, narrow and if possible, resolve proposed adjudicable issues concerning the permit application that have been raised by the Issues Conference participants. Any persons requesting party status must appear or be represented at the Issues Conference so that all proposed issues may be fully discussed. The draft PSD permit conditions referred to above are not subject to an adjudicatory or evidentiary hearing, pursuant to 40CFR §124.71(c).

Filing for Party Status and Proposed Issues: To participate at the NYSDEC Issues 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. 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.")

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.

If seeking 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 4:00 P.M. on February 20, 2001. 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. Gerald L. Lynch, 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; E-mail: "Gerald_Lynch@dps.state.ny.us".
  2. Kevin J. Casutto, Administrative Law Judge/PSL Art. X Associate Examiner, NYSDEC, Office of Hearings and Mediation Services, 50 Wolf Road, Albany, NY 12233-1550; E-mail: "kjcasutt@.gw.dec.state.ny.us".
  3. Meghan Purvee, Esq., Senior Attorney, Office of General Counsel, NYSDEC 50 Wolf Road, Albany, New York 12233-1500 "mapurvee@.gw.dec.state.ny.us".
  4. Steven Blow, Esq., Assistant Counsel, Office of General Counsel, NYSDPS, 3 Empire State Plaza, Albany, New York 12223-1350; E-mail: "Steven_Blow@dps.state.ny.us"..
  5. Barbara S. Brenner, Esq., Couch White LLP, 540 Broadway, P. O. Box 22222, Albany, New York 12201-2222; E-mail: "bbrenner@couchwhite.com".

Electronic filing of petitions is acceptable, but must be followed by a paper copy via first class U.S. Mail, postmarked by February 20, 2001. Filings by E-mail must be transmitted both in Microsoft Word 97 or compatible (extension '.doc') and Rich Text Format (extension '.rtf').

Document Availability:

The NYSDEC application materials, as well as a draft SPDES permit, fact sheet and draft preconstruction (air) permit are available for review at the following locations between 10:00 AM and 4:00 PM, Monday through Friday:

  1. NYSDEC Office of Hearings and Mediation Services, 50 Wolf Road, Albany, NY 12233-1550;
  2. NYSDEC Division of Environmental Permits, Department of Environmental Conservation, 50 Wolf Road, Road, 538, Albany, New York 12233-1750. Contact Robert L. Ewing, Project Manager, at (518) 457-9219; and,
  3. NYSDEC Region 3 Headquarters, 21 South Putt Corners Road, New Paltz, New York 12561-1696. At the NYSDEC Region 3 Office, contact the Environmental Permits Division, at (845) 256-3054.
  4. Haverstraw Library, Thiells Branch (1), 1 Rosman Road, Garnerville, New York 10923. Contact: Donna Sopalsky, Assistant Director, at (845) 786-3800.
  5. Kings Daughters Public Library, 85 Main Street, Haverstraw, NY10927. Contact: Joanne Ginsburg, Director, at (845) 429-3445.

NYS Environmental Conservation Law and implementing regulations: In addition to the specific regulations cited above, the above referenced SPDES and air preconstruction permit applications are being processed by the NYSDEC Staff pursuant to ECL Article 3, Title 3 (General Functions), ECL Article 17 (Water Pollution Control), ECL Article 19 (Air Pollution Control), and 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).

Daniel E. Louis
Chief Administrative Law Judge

January 16, 2001

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