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Equus Power I, LP

September 24, 2003

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

APPLICANT: Equus Power I, LP
5603 Willers Way
Houston, Texas 77056

APPLICATION No. 1-2820-04508/00003 - Air State Facility Permit
1-2820-04508/00004 - Title IV: Acid Rain Permit

PROJECT LOCATION: Equus Freeport Power Generating Station
289 Buffalo Ave.
Freeport, NY 11520

PROJECT DESCRIPTION: Equus Power I, LP ("Equus Freeport") proposes to construct and operate a new gas turbine facility, Equus Freeport Power Generating Station. The new facility will be constructed immediately adjacent to the Village of Freeport Power Plant #2. The proposed Equus Freeport Power Generating Facility will consist of one General Electric (GE) LM6000 Sprint simple cycle combustion turbine. The total new electrical power from this combustion turbine generator will have a nominal electrical power output of 47 MW.

The combustion turbine will fire natural gas, with low sulfur oil (0.05%) as backup for a maximum of 15 days a year. The units will operate in simple cycle mode (no heat recovery) to provide electric generation particularly during periods of high demand. The turbine will utilize water injection and selective catalytic reduction (SCR) to control nitrogen oxide (NOx) emissions and an oxidation catalyst will be used to control emissions of carbon monoxide (CO) and volatile organic compounds (VOC). Upon leaving the turbine, the exhaust will be directed into a 187-foot stack.

PERMITS:

AIR: Equus Freeport has applied for an air pollution control permit 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 ("6 NYCRR"). A Title IV Acid Rain permit has also been applied for by the applicant. DEC has tentatively determined that the application meets all air pollution control requirements of Article 19 and Part 201.

ASSOCIATED FACILITY: On May 22, 2003, the Village of Freeport received all required permits to construct an identical plant adjacent to the proposed facility. The tidal wetland permit originally issued to the Village of Freeport will be modified to include a reference to the Equus Freeport Power Generating Station. The SPDES permit issued to the Village of Freeport does not need to be modified because discharge volumes and effluent limitations do not need to be modified.

SEQR STATUS: Pursuant to the State Environmental Quality Review Act ("SEQR", ECL Article 8 and 6 NYCRR Part 617), the Village of Freeport, as lead agency, prepared an Environmental Assessment, dated June 5, 2002, that addressed the construction and operation of two energy facilities. On June 24, 2002, the Village of Freeport issued a negative declaration, concluding that the construction and operation of both facilities will not have significant environmental impacts. As a result of Equus Power taking over the construction of the second energy facility, the Village of Freeport issued a supplemental environmental analysis, dated September 2003, addressing project changes. In a memorandum dated September 15, 2003, the Village of Freeport determined that the project as modified would still not have significant environmental impacts, and the original negative declaration did not need to be modified.

PUBLIC HEARING: A legislative hearing pursuant to 6 NYCRR Part 621 for the receipt of public comments on the application will be held, beginning at 7:00 PM on October 22, 2003 at the following location:

Village of Freeport Recreation Center
130 E. Merrick Road
Freeport, NY 11520

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: All written comments on the Subpart 201-5 air preconstruction permit and certificate to operate and the Title IV Acid Rain permit, must be postmarked no later than, October 31, 2003 with the Office of Hearings and Mediation Services, Department of Environmental Conservation, 625 Broadway Albany, New York 12233-1550, attn: Molly McBride, Administrative Law Judge.

All public comments on the application and the Subpart 201-5 draft permits will be reviewed by DEC Staff 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.

DOCUMENT AVAILABILITY: The Department has reviewed the application materials, determined that they are complete pursuant to 6 NYCRR Parts 201 and 621, made a tentative determination to approve the application and has prepared draft permits. 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 draft air permits, are available for review during normal business hours, Monday through Friday, at the following locations:

1. NYSDEC Division of Environmental Permits, 625 Broadway, 4th Floor, Albany, New York 12233-1750. Contact: Christopher Hogan. Tel: 518/402-9151.

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

3. Freeport Memorial Library, 144 West Merrick Road, Freeport, New York.

STATUTORY and REGULATORY PROVISIONS: The air permit application is being reviewed pursuant to ECL Article 19 (Air Pollution Control) and 6 NYCRR Part 201 (General Provisions - Air Pollution Control); Part 617 (SEQR); and Part 621 (Uniform Procedures).

September 24, 2003
Albany, New York

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