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GSF Energy, LLC and Fresh Gas, LLC

March 20, 2000

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

Co-Applicants: New York City Department of Sanitation (DOS), 44 Beaver Street, 12th Floor, New York, New York 10004; and GSF Energy LLC/Fresh Gas LLC (GSF), 3321 Bee Caves Road, Austin, Texas, 78746.

Application Numbers: 2-6499-00029/101, 6 NYCRR Part 201 Air State Facility Modification and 2-6499-00029/00175, 6 NYCRR Part 360, Solid Waste Management.

Project Description and Location: The New York City Department of Sanitation (DOS) as Facility Owner was issued a permit to construct and operate a landfill gas (LFGas) collection and enclosed flare system in July 1998 for the reduction of odors and landfill gas emissions from the Fresh Kills Landfill located along the Arthur Kill waterfront in Richmond County, New York.

GSF currently operates a gas processing plant (Plant #1) at the Fresh Kills landfill which processes the raw landfill gas into commercial quality gas for beneficial use. DOS and GSF propose to upgrade the processing capacity of Plant #1 from 10 million standard cubic feet per day (MMscfd) to 14.1 (Mmscfd) of LFGas. In addition to the Plant #1 upgrade, the applicants also propose to construct two additional gas processing plants (Plant #2 & Plant #3) and a process power array to self-generate the electricity needed to operate the Plants. All three plants and the process power array are referred to herein as the "Facility". A gas transmission line is proposed to connect the gas collection systems at four landfill locations to the Facility. It is the intent of the applicants to have the Facility function as the primary emission control for LFGas from the Fresh Kills Landfill with the existing flares serving as secondary emission control. The continuous use of the flares for emission control will decrease as the capacity of the Facility to process gas increases.

Permits Requested: A Solid Waste Management permit pursuant to 6 NYCRR Part 360 and modification of an existing DEC Part 201 air permit for the construction and operation of the gas recovery system. Provisions designed to satisfy federal Prevention of Significant Deterioration of air quality (PSD) permit requirements pursuant to 40 CFR Part 52, and State New Source Review permit requirements, pursuant to Part 231 of Title 6 of the New York Compilation of Codes, Rules, and Regulations (6 NYCRR) are included.

DEC has been delegated authority by USEPA to issue permits to any stationary sources located within New York State that are subject to PSD requirements pursuant to subchapter I, Part C of the Clean Air Act. Federal regulations (40 CFR 52.21) require facilities located in an attainment area for any criteria pollutant to satisfy PSD requirements prior to commencing new construction or modification of an existing source if the facility meets one of the criteria set forth in the regulations. The proposed project constitutes a modification of an existing major source.

EPA has also approved DECs program to conduct New Source Review and issue permits to new or modified major stationary sources located within the non-attainment areas of the State and whose emissions exceed applicable thresholds. DEC regulates such sources pursuant to 6 NYCRR Part 231. New York City is designated as a non-attainment area for carbon monoxide (CO) and ozone and the proposed facility's emissions of CO and NOx (NOx is a precursor to ozone and regulated under Part 231) are above the applicable thresholds triggering Part 231 review and permitting requirements.

The proposed Facility provides equivalent controls for nonmethane organic compounds/volatile organic compounds (NMOC/VOCs), NOx, CO and decreases the emissions of sulfur compounds and particulates when compared to the emissions from the existing enclosed flare system.

Other Regulatory Provisions: In addition to the specific regulations cited above, the subject application is being processed by the Department of Environmental Conservation pursuant to Environmental Conservation Law (ECL)Article 3, Title 3 (General Functions), ECL Article 19 (Air Pollution Control), ECL Article 27 (Solid Waste), and 6 NYCRR Parts 621 (Uniform Procedures) and 617 (State Environmental Quality Review).

SEQRA Status: The New York City Department of Sanitation, as lead agency, has determined that the proposed unlisted action described above will not have a significant effect on the environment pursuant to the State Environmental Quality Review Act (SEQRA) (ECL Article 8) and the SEQRA regulations (6 NYCRR Part 617), the New York City Executive Order 91 of 1977, as amended, and the Rules of Procedure for City Environmental Quality Review. A Draft Environmental Impact Statement will not be prepared.

Tentative DEC Staff Position: DEC 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 in a permit. Draft Air and Solid Waste permits are available for review.

Hearing for Public Comment: A hearing for public comment will be held at 7:30 p.m. on Thursday, April 27th, 2000 at The Center for the Arts at the College of Staten Island, 2800 Victory Blvd., Lecture Hall IP119. 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 deaf persons at no charge upon written request to the DEC Office of Hearings and Mediation Services (Room 423, 50 Wolf Road, Albany, New York 12233-1550) at least 10 days prior to the hearing, pursuant to the State Administrative Procedures Act.

Public Comments/Appeal Procedure: In addition to or in lieu of providing oral comments at the hearing, interested persons may submit written comments to the Administrative Law Judge at the hearing, or mail them to the NYSDEC, Region 2 Office, 47-40 21st Street, L.I. City 11101, attention: Elizabeth Clarke, no later than May 1, 2000. Written comments shall be considered equally with oral comments made at the hearing.

In addition to the State review process, the PSD aspects of the preliminary permit determination are appealable to the USEPA in accordance with the Consolidated Permit Regulations set forth at 40 CFR Part 124. The PSD aspects, as noted above, address the proposed emissions of sulfur dioxide, inhalable particulate matter (PM-10 and particulates), and NOx.

The public comment period will run from the date of publication of this public notice until May 1, 2000. Only those persons who file comments or participate in the public hearing on the PSD aspects of the preliminary permit determination may petition the US EPA for administrative review of the PSD aspects of the draft permit. Persons who fail to file comments or fail to participate in the public hearing on the PSD aspects of the draft permit may petition for review only to the extent of the changes from the draft to the final permit decision regarding PSD issues. If no comments are received and DEC makes no changes to the PSD aspects of the permit, from the draft to the final permit, no EPA administrative review will be made available. Any petition for EPA review must be made within thirty (30) days of the service of notice of the final permit decision. Pursuant to the consolidated permit regulations codified at 40 CFR Part 124, the 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).

Document Availability: All filed application materials and the draft permit are available for inspection at DECs Region 2 office in Long Island City. To review the file at the Region 2 office, please call Elizabeth Clarke of DECs Division of Environmental Permits at 718-482-4997. In addition, these materials are on file in the Fresh Kills public repository at Staten Island Borough Hall, 10 Richmond Terrace, Staten Island.

Daniel E. Louis
Chief Administrative Law Judge

Albany, New York
March 20, 2000

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