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Kings Park Energy, LLC

March 22, 2002

STATE OF NEW YORK
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
NOTICE OF PUBLIC HEARING

Applicant: Kings Park Energy, LLC., 11350 Random Hills Road, Suite 400, Fairfax, VA 22030

Application Number: DEC # 1-4734-00333/00003; PSC Case # 00-F-1356

Project Description: The applicant, Kings Park Energy, LLC, proposes to construct and operate a gas-fired simple cycle electric power generation facility consisting of six General Electric (GE) LM6000 combustion turbine generators (CTGs), and associated balance-of-plant systems and facilities. The fuel will be natural gas with low-sulphur distillate oil (0.05 percent) backup under emergency conditions. The nominal electric generating capacity of the proposed Facility will be approximately 300 megawatts (MW).

The Applicant proposes to install an oxidation catalyst system to reduce emissions of carbon monoxide (CO) and volatile organic compounds (VOCs), and proposes to use water injection and Selective Catalytic Reduction (SCR) to control formation of nitrogen oxides (NOx) and associated emissions. The air emissions resulting from the turbines will be vented through three 110 feet high exhaust stacks. Suffolk County Water Authority, a public water supply company, will provide the 0.30 million gallons per day (MGD) on average required for the project. Sanitary wastewater will be discharged to two onsite subsurface disposal systems. Stormwater runoff will be directed to onsite recharge basins and leaching pools/pits. Process wastewater will be discharged to a holding tank and trucked off-site for proper disposal at a Suffolk County wastewater treatment facility. The project site is on Town Line Road, south of Old Northport Road, in the Town of Smithtown, Suffolk County.

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 air permits. Pursuant to Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York (6 NYCRR) Part 201-6.1, Kings Park Energy, LLC has opted to obtain a preconstruction permit and certificate to operate authorizing the construction and operation of the proposed Kings Park Energy Facility, prior to obtaining a Title V permit. Pursuant to the requirements of Environmental Conservation Law (ECL) Article 19, and 6 NYCRR Part 201 (Permits and Registrations) 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), Kings Park Energy LLC has filed a complete application with the DEC for this air emissions permit. The NYSDEC concludes that the application for this permit is complete within the meaning of 6 NYCRR §621.1(d) and has tentatively determined to issue the permit. Consequently, the DEC Staff has prepared a draft permit pursuant to 6 NYCRR §621.5(d)(7), and hereby notices a complete application and draft permit to construct and certificate to operate, along with permit conditions for the facility. The conditions in DEC's draft permit authorize the construction and operation of the proposed facility pursuant to 6 NYCRR Subpart 201-6.1. The DEC Staff's position is that the conditions assure conformance of the Kings Park Energy facility with requirements of 6 NYCRR Parts 201, 204, 225, 227, 231, and 257, as well as all other applicable State air pollution regulations and Federal requirements on enforceable permit conditions. Pursuant to the Phase II requirements of Title IV of the Clean Air Act and 40 CFR §72.6(a)(3), DEC Staff has also reviewed Kings Park Energy LLC's acid rain permit application included in the Air State Facility application, and has found it approvable.

Kings Park Energy LLC is also required to obtain emissions offsets in the form of emission reduction credits (ERCs) for NOx and volatile organic compounds (VOCs). Pursuant to 6 NYCRR Subpart 231-2, Kings Park Energy LLC will be providing a list of VOC and NOx emission offset sources which will be subsequently noticed for a separate public comment in accordance with §231-2.10.

State Pollutant Discharge Elimination System (SPDES)

SPDES Permits: Pursuant to ECL §17-0823, the Applicant has filed an application with the DEC for a SPDES wastewater discharge permit and a request for certification that its discharges will comply with the applicable requirements of the Federal Clean Water Act. The Applicant seeks approval to discharge storm water runoff to onsite drainage areas during the construction and operation of the proposed facility.

The DEC Staff concludes that the application for this permit is complete within the meaning of 6 NYCRR §621.1(d) and has tentatively determined to issue the permit. Consequently, the DEC Staff has prepared draft permits pursuant to 6 NYCRR §621.5(d)(7).

Additional Regulatory Provisions

NYS Public Service Law (PSL): This project requires a Certificate of Environmental Compatibility and Public Need (Certificate) to construct and operate, and is subject to review pursuant to Article X of the New York State Public Service Law (Siting of Major Electric Generating Facilities).

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

The DEC public hearings noticed below are being held contemporaneously and on a joint record with the related PSL Article X proceedings concerning the application filed by Kings Park Energy LLC, for a Certificate (PSC Case #00-F-1356). For additional information concerning the PSL Article X application and related hearings go to the Department of Public Service web page at: http://www.dps.state.ny.us/kingspark.htm.

NYS Environmental Conservation Law and implementing regulations: In addition to the specific regulations cited above, the air preconstruction permit applications are being processed by the DEC Staff pursuant to ECL Article 3, Title 3 (General Functions), 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).

SEQRA Status: The DEC Staff has determined that the proposal is a Type II action as designated by the State Environmental Quality Review Act (SEQRA), 6 NYCRR §617.5(c)(35), statutory authority ECL Article 8. A comprehensive environmental review is conducted pursuant to PSL Article X.

SHPA Status: A cultural resource survey has been completed. This project is subject to Article X of the Public Service Law and the New York State Department of Public Service will ensure compliance with the State Historic Preservation Act (SHPA) through consultation with the Office of Parks Recreation and Historic Preservation.

Tentative DEC Staff Position and Document Availability: The Department Staff have reviewed Kings Park Energy LLC's application materials and supporting documentation and have determined that they are complete pursuant to 6 NYCRR Part 621. A tentative determination has been made to approve this application and prepare draft permits. It has been determined that all air program statutory and regulatory criteria can be met through the imposition of special permit conditions. For the 201-6 permit to construct and certificate to operate, DEC Staff have incorporated control technologies and emission limits proposed by the applicant and further refined these limits, with concurrence from Kings Park Energy LLC, to achieve compliance with Subpart 227-1 for particulate matter less than ten microns in aerodynamic diameter (PM10) and with Subpart 231-2 LAER determination for VOC limits. In addition, although the project is not subject to Prevention of Significant Deterioration regulations, it will meet the level of emissions compatible with Best Available Control Technology (BACT) for carbon monoxide (CO), particulate matter less than ten microns in aerodynamic diameter (PM10), sulphur dioxide (SO2), and sulfuric acid (H2SO4). The project will also meet USEPA-defined Lowest Achievable Emission Rate (LAER) for VOC and NOx. The background documentation of this determination is available in the "fact sheets" and the administrative record for the project.

The application materials, fact sheet and draft preconstruction (air) permit, draft Phase II title IV permit, and the draft SPDES permit are available for review at the following locations during normal business ours between 9:00 AM and 4:00 PM, Monday through Friday:

  • NYS DEC Office of Hearings and Mediation Services, 625 Broadway, First Floor, Albany, NY 12233-1550 (518-402-9003).
  • NYS DEC Division of Environmental Permits, 625 Broadway, Albany, New York 12233-1750. Contact Kevin Kispert, Project Manager, at (518) 402-9161; and
  • NYS DEC Region 1 Office, SUNY Bldg. 40, Stony Brook, 12750. Contact: John Pavacic or Roger Evans at (631) 444-0365.

The draft permits are also available at the libraries to which the Article X application was sent, specifically: Smithtown Library, Kings Park Branch Library, Commack Branch Library, Nesconset Branch Library, Commack Public Library, Northport Public Library, and East Northport Public Library.

Written Comments: All written comments about the draft 201-6 air preconstruction permit and certificate to operate, draft Phase II title IV permit, and draft SPDES permit must be filed, received by April 29, 2002 with the Office of Hearings and Mediation Services, Department of Environmental Conservation, 625 Broadway, First Floor, Albany, NY 12233-1550, attn: Susan J. DuBois, Administrative Law Judge.

Public Hearings Sessions and Issues Conference

Legislative Public Hearing: Legislative hearing sessions to receive unsworn statements from the public on the applications and the draft permits, described above, will be held before Administrative Law Judge Susan DuBois, on MONDAY, APRIL 29, 2002 at 3:00 P.M. to 6 P.M. and at 7:00 P.M. to 10:00 P.M., at the KINGS PARK HIGH SCHOOL, 200 ROUTE 25A, KINGS PARK, NEW YORK. As stated above, this hearing is being held on a joint record with the related PSL Article X proceedings. 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 Administrative Law Judge at least 10 days prior to the hearing, pursuant to the State Administrative Procedures Act.

Issues Conference: A pre-adjudicatory hearing Issues Conference will be held at a date, time and place to be announced later. The purpose of the Issues Conference is to determine what issues, if any, require adjudication, and will define the scope of such issues. The Issues Conference may be canceled if no filings for party status are received by the deadline listed below. Participation at the Issues Conference will be limited to the DEC Staff, the Applicant and those persons requesting party status pursuant to 6 NYCRR §§624.4 and 624.5 in advance of the Issues Conference. The required contents of petitions for party status are as stated in §§624.4 and 624.5. The deadline for such petitions will be identified at a later date.

Party status in the DEC proceeding is NOT automatically conferred upon the parties to the PSL Article X proceeding, other than the DEC Staff and the Applicant.

Daniel E. Louis
Chief Administrative Law Judge

Albany, New York
March 22, 2002

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