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Heritage Power, LLC

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

Applicant: Heritage Power LLC, 59 Independence Way, Oswego, New York 13126

Application Number: DEC # 7-3556-00097

PSC Case # 99-F-0558

Project Description: The Applicant, Heritage Power LLC, has applied for a Prevention of Significant Deterioration pre-construction permit pursuant to 40 CFR 52.21 and for a Certificate of Environmental Compatibility and Public Need under Article X of the NYS Public Service Law so that it may construct and operate a state-of-the-art, high efficiency, combined cycle electric generating facility consisting of two General Electric Steam and Gas (STAG) 107H system combustion turbine generators (CTG), two heat recovery steam generators (HRSG), two steam turbine generators (STG) and associated balance-of-plant systems and facilities. The nominal electric generating capacity of the proposed Facility will be approximately 800 megawatts (MW). The New York State Department of Environmental Conservation (NYSDEC) has conducted the Prevention of Significant Deterioration (PSD) review contained in 40 CFR 52.21 and 124.

Public Notice: The New York State Department of Environmental Conservation (NYSDEC) has made a tentative determination that the proposed construction of a 800 MW natural gas-fired combined cycle combustion turbine generating plant by Heritage Power LLC 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 225-foot high exhaust stacks (one for each unit), a wet cooling tower, and an emergency diesel generator with a 170-foot high exhaust stack.

The following PSD affected air pollutants will be controlled with the Best Available Control Technology (BACT): nitrogen oxides (NOx), sulfur dioxide (SO2), carbon monoxide (CO), particulate matter (PM & PM10) and sulfuric acid mist (H2SO4). The DEC Staff has also verified that the emissions of these PSD affected air pollutants 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 where one exists. The facility is also affected by federal New Source Performance Standards (NSPS) at 40 CFR Part 60. DEC Staff have imposed special permit limitations on the draft PSD permit to assure compliance with these applicable requirements.

Project Location: The energy facility will be located in the Independence Industrial Energy Park, part of the expanded Oswego Economic Development Zone in the town of Scriba, situated along County Route 1A, east of the City of Oswego, in the Town of Scriba, Oswego County. The project will be developed on a leased parcel within the 190-acre property site of the existing Independence Station, a 1,042 MW natural gas fueled power-generating plant. The site is bounded by Lake Ontario and the Independence Park recreational property to the north; by Route 1A, residences and rural areas to the south and east; and, by the Alcan Rolled Products Company (Alcan) to the west.

NYS Public Service Law: This project requires a Certificate of Environmental Compatibility and Public Need (Certificate) to construct and operate a 800 MW natural gas-fired combined cycle combustion turbine 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: Notices of Pre-Hearing Conference were issued on May 2, 2000 and June 9, 2000. As noticed, Pre-Hearing Conferences convened on May 16, 2000, and June 22, 2000 at the Common Council Chambers in Oswego, New York.

Other Regulatory Provisions: In addition to the specific regulations cited above, the subject application is being processed by the NYS Department of Environmental Conservation (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), 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).

SEQRA Status: The NYS Department of Environmental Conservation (NYSDEC) has determined that the proposed action is a Type II action [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: NYS 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. 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 before Administrative Law Judge Daniel P. O'Connell, NYS DEC Office of Hearings and Mediation Services, 50 Wolf Road, Albany, NY 12233-1550 [Telephone: 518-457-3468] on September 26, 2000 at 1:00 P.M. and 7:00 P.M. at the Scriba Town Hall, 42 Creamery Road, Scriba, NY. This hearing schedule coincides with the Article X hearings for this proposed facility. Part of the Article X hearing session will be put aside to receive comments on the draft PSD permit pursuant to 40 CFR §124.12 at which time comments should be limited to the conditions of the PSD permit.

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 deaf persons at no charge upon written request to the Administrative Law Judge (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 consideration of all public comments has been reviewed. The final determination may be appealed administratively within 30 days of Heritage Power LLC's receipt of the final determination. 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 September 27, 2000. 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), sulfur dioxide (SO2), carbon monoxide (CO), particulate matter (PM and PM-10), and sulfuric acid mist (H2SO4). The public comment period will run from the date of publication of this public notice until September 27, 2000. 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 NYS DEC 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) NYS DEC Office of Hearings and Mediation Services, 50 Wolf Road, Albany, NY 12233-1550; (B) NYS DEC Division of Environmental Permits, Department of Environmental Conservation, 50 Wolf Road, Road, Room 538, Albany, New York 12233-1750. Contact Robert L. Ewing, Project Manager, at (518) 457-9219; and, NYS DEC Region 7 Headquarters, 615 Erie Boulevard West, Syracuse, New York 13204-2400. At the DEC Region 7 Office, contact Robert A. Torba at (315) 426-7438.

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