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Consolidated Edison Company of New York, Inc. (East River)

STATE OF NEW YORK
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
NOTICE OF DETERMINATION TO ISSUE
PREVENTION OF SIGNIFICANT DETERIORATION (PSD) PERMIT

Applicant: Consolidated Edison Company of New York, Inc.

Application Number: DEC # 2-6206-00012/000021

PSC Case # 99-F-1314

Project Description: This project is known as the East River Repowering Project (ERRP). The Applicant, Consolidated Edison Company of New York, Inc., has applied for a Prevention of Significant Deterioration (PSD) pre-construction review by the New York State Department of Environmental Conservation (NYSDEC), pursuant to 40 CFR (Code of Federal Regulations) Sections 52.21 and 124, and for a Certificate of Environmental Compatibility and Public Need under Article X of the New York State Public Service Law from the New York State Board on Electric Generation Siting and the Environment, so that it may construct and operate two dual fuel General Electric combustion turbine generators (CTGs) and two heat recovery steam generators (HRSGs) to produce an estimated 3,000,000 pounds per hour of steam and a nominal electric generation capacity of 360 MW (megawatts).

Public Notice: The New York State Department of Environmental Conservation (NYSDEC) has made a tentative determination that the proposed construction of the facility by Consolidated Edison is subject to and satisfies the federal requirements for the Prevention of Significant Deterioration (PSD) contained in 40 CFR 52.21. The air emissions will result from the turbines and generators and will be vented through two existing stacks (1 and 2) that are 367.5 feet tall.

The only PSD affected air pollutant is nitrogen oxides (NOx) which will be controlled with Best Available Control Technology (BACT). In this case, however, BACT for NOx is defined by the more restrictive Lowest Achievable Emission Rate (LAER) since this pollutant is a precursor for Ozone and the project site is in the severe non-attainment area for Ozone. The emissions of other potential PSD regulated pollutants are either below the significant emission rates for major source modification (i.e. elemental lead, sulfur dioxide (SO2) and sulfuric acid mist (H2SO4)) or are being regulated and limited through 6NYCRR Part 231-2 non-attainment area provisions of LAER and emission offsets (i.e. carbon monoxide (CO), particulate matter (PM & PM10), Volatile Organic Compounds (VOCs), and NOx). A separate notice is being issued for the 6NYCRR Subpart 201-6 permit to construct and certificate to operate which addresses these pollutant limits and conditions. The DEC Staff has also verified that the emissions of the PSD pollutant (NOx) will not cause or significantly contribute to the exceedence of any national primary or secondary ambient air quality standards, and will not consume more than the allowable PSD air quality increment. The facility is also affected by federal New Source Performance Standards (NSPS) at 40 CFR Part 60. DEC Staff have imposed special conditions as a result of their review of the PSD application in order to ensure compliance with all applicable requirements.

In accord with Federal Executive Order 12898 and EPA Region II requirements, Con Edison has submitted a revised Environmental Justice assessment on December 14, 2000 to supplement the analysis contained in the East River Project's PSD application. This assessment is being noticed for public review and comment.

Project Location: The energy facility will be located in the Consolidated Edison East River Complex in Manhattan between East 13th and East 15th Streets from the FDR Drive to Avenue C.

NYS Public Service Law: This project requires a Certificate of Environmental Compatibility and Public Need (Certificate) to construct and operate a 360 MW natural gas-fired steam and electric generating facility, and is subject to review pursuant to Article X of the New York State Public Service Law (Siting of Major Electric Generating Facilities). To date, it has been subject to the following notices, hearings and conferences: (1) a Notice of Pre-Hearing Conference was issued on August 2, 2000, (2) Notices of Public Statement Hearings were issued on August 2 and September 8, 2000. As noticed, a Pre-Hearing Conference convened on August 22, 200 at One Penn Plaza in Manhattan, New York. In addition, Public Statement Hearings were held on August 22, 2000 at One Penn Plaza offices of the Public Service Commission in Manhattan, New York City, and on October 5, 2000 at Public School No. 34 at 730 East 12th Street, near Avenue D in Manhattan.

Other Regulatory Provisions: In addition to the specific regulations cited above, the subject application is being processed by NYSDEC pursuant to Environmental Conservation Law (ECL) Article 3, Title 3 (General Functions), ECL Article 17 (Water Pollution Control), ECL Article 19 (Air Pollution Control), 6 NYCRR Part 201 (Permits and Registrations for Air Contamination Sources) 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), 6NYCRR Part 621 (Uniform Procedures), 6NYCRR Part 624 (Permit Hearing Procedures) and 6NYCRR Parts 750 et seq. (State Pollutant Discharge Elimination System). A separate notice will be issued for 6 NYCRR Part 201 (Permits and Registrations for Air Contamination Sources)and 6NYCRR Parts 750 et seq. (State Pollutant Discharge Elimination System).

SEQRA Status: NYSDEC has determined that the proposed action is a Type II action [6NYCRR §617.5(c)(35)], and is not subject to review pursuant to the State Environmental Quality Review Act (SEQRA) (ECL Article 8 and 6 NYCRR Part 617). A comprehensive environmental review is being conducted pursuant to PSL Article X.

Tentative DEC Staff Position: NYSDEC staff have reviewed the application and determined it is complete pursuant to 6 NYCRR Part 621. Staff have determined that all statutory and regulatory criteria can be met through the imposition of special conditions. A draft PSD determination is available for review.

Legislative Hearing: Pursuant to 6 NYCRR §621.7, and 40 CFR 124.71(c), legislative hearing sessions will be held on January 24, 2001 at 2:00 P.M. and 7:00 P.M. before Administrative Law Judge (ALJ) Daniel P. O'Connell, NYSDEC Office of Hearings and Mediation Services, Room 423, 50 Wolf Road, Albany, NY 12233-1550 [Telephone: 518-457-3468] at Public School No. 34 located at 730 East 12th Street, near Avenue D in Manhattan.

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. While 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. The hearing location is fully accessible to persons with a mobility impairment. Interpreter services shall be made available to hearing impaired 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.

Public Comments/Appeal Procedure: NYSDEC invites public comment regarding this tentative determination. NYSDEC's final determination will be made only after full review and consideration of all public comments. In addition to or in lieu of providing oral comments at the legislative hearing, interested persons may submit written comments to the ALJ at the hearing, or mail them prior to the hearing so they are received by the ALJ no later than February 2, 2001. Written comments shall be considered equally with oral comments made at the hearing.

Comments are limited to PSD concerns. The PSD aspects, as noted above, address the proposed emissions of nitrogen oxides (NOx), NSPS regulations and the Environmental Justice analysis. The public comment period will run from the date of publication of this public notice until February 2, 2001. Only those persons who file comments or participate in the public hearing on the PSD portion of this PSD preliminary determination may petition the EPA for administrative review of the PSD determination. Persons who fail to file comments or fail to participate in the public hearing on the PSD determination may petition for review only to the extent of the changes from the draft to the final decision regarding PSD issues. If no comments are received and NYSDEC makes no changes to the PSD determination, from the draft to the final decision, no opportunity for further review or appeal will be available.

Any petition for EPA review must be made within thirty (30) days of the service of notice of the final decision. The procedures for administrative review are defined in the Consolidated Permit Regulations at 40 CFR Part 124. Any such petition for review shall include a statement of the reasons supporting that review and shall adhere to the standards outlined in 40 CFR §§124.19(a)(1) and (2).

Upon completion of the administrative review process (if applicable), the final decision will become the final agency action and will be published in the Federal Register. Those who appealed for administrative review may petition for judicial review within 60 days of the final EPA decision.

Document Availability: All filed application materials and the preliminary PSD determination are open for public inspection at the following NYS Department of Environmental Conservation offices between 9:00 AM and 4:00 PM, Monday through Friday: (A) NYSDEC Office of Hearings and Mediation Services, Room 423, 50 Wolf Road, Albany, NY 12233-1550; (B) NYSDEC Division of Environmental Permits, Department of Environmental Conservation, Room 538, 50 Wolf Road, Albany, New York 12233-1750. Contact: Richard C. Benas, Project Manager, at (518) 457-5941; and (C) NYSDEC Region 2 Headquarters, 1 Hunters Point Plaza, 47-40 21st Street Long Island City, N.Y. 11101-5407. Contact: Elizabeth Clarke at (718) 482-4997.

Questions concerning this application and the hearings should be directed to ALJ Daniel O'Connell at (518) 457-3468.

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