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NYC Energy, LLC (Wallabout Channel)

November 3, 2000

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

APPLICANT: NYC Energy LLC ("NYCE"), 1041 Third Avenue, New York, NY 10021 [DEC Application No. 2-6101-00349/00011

PROJECT and LOCATION: The Applicant proposes to construct and operate a 79.9 Megawatt ("MW") floating power barge (220 feet by 90 feet) to be anchored on the west side of the Wallabout Channel at the Brooklyn Navy Yard, near the intersections of Kent Avenue and Clymer Street and between the Williamsburg and Manhattan Bridges in Brooklyn Community District No. 2. This barge will be brought to the site where the Applicant will perform additional work including the driving of 4 piles for mooring and installation and connection to existing underground utility lines. This facility, named the NISA Electric Generation Project, would include two combustion gas turbine generators with dry low oxides of nitrogen ("DLN") combustors. Primary fuel will be natural gas with low sulfur distillate as a back-up fuel. The project is also to include a heat recovery steam generator ("HRSG")with a selective catalytic reduction ("SCR") system and a catalytic oxidation system for carbon monoxide ("CO") emission control. The project's location may require the boring of a conduit underneath the Wallabout Channel from the south side of the Channel to the north side for the purposes of interconnecting the generating facility to gas, electric, water and sewer systems. The project would encompass 18,000 square feet of water surface and 8,000 square feet of roads, buildings, and driveways.

PERMITS: This is an application for an air pollution control permit to construct and to operate stationary combustion equipment 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").

The DEC staff has tentatively determined that the application meets the air pollution control requirements of ECL Article 19 and Part 201 of 6 NYCRR. The federal Air State Facility program requires Departmental notice to the federal Environmental Protection Agency ("EPA") of completeness of Air State Facility permit applications and issuance of such permits. On August 9, 2000, the DEC Staff issued a completeness determination on this Air State Facility permit application.

SEQRA STATUS: Pursuant to the State Environmental Quality Review Act ("SEQRA"), ECL Article 8 and 6 NYCRR Part 617 and the New York City Environmental Quality Review ("CEQR"), on January 10, 2000, the New York City Department of Environmental Protection ("DEP"), as lead agency, determined that the proposed project would have no significant effect on the environment upon meeting the conditions of the Conditional Negative Declaration ("CND"). In August 1997, DEP had previously issued a CND for a proposal to install a 28.5 MW floating power barge (the NISA Cogeneration Facility) to be anchored along Pier D at the Brooklyn Navy Yard. In October 1998, DEP had issued a revised CND for the NISA Electric Generation Project which was to be located 1800 feet to the north of Pier D, to the east side of the Wallabout Channel. The project's electrical output was increased to 79.9 MW. In January 2000 DEP issued a revised CND for the NISA Electric Generation Project which was relocated to the west side of the Wallabout Channel. This project is the one currently proposed.

PUBLIC HEARING: A legislative hearing session for the receipt of public comments, on the application will be held at the Fire Department Auditorium, 9 Metro Tech Center, Brooklyn, Ny 11201 on December 12, 2000 beginning at 6 p.m. 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. Parties may file written comments with the Department's Office of Hearings and Mediation Services ("OHMS"), 50 Wolf Road, Room 423, Albany, New York 12233-1550, provided they are postmarked no later than December 11, 2000. 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 location is reasonably accessible to persons with a mobility impairment.

DOCUMENT AVAILABILITY: The permit application, conditioned negative declaration, draft permit, and Permit Hearing Procedures and other documents associated with this application are available for public review at the following locations:

1. NYSDEC Office of Hearings and Mediation Services, 50 Wolf Road, Room 423, Albany, NY 12233-1550.

2. NYSDEC Region 2, 47-40 21st Street, Long Island City, NY 11101. Contact: Tom Kunkel

3. Brooklyn Community Board 2, 350 Jay Street, 8th Floor, Brooklyn, NY 11201

STATUTORY and REGULATORY PROVISIONS: Environmental Conservation Law Article 19 (Air Pollution); and 6 NYCRR Part 201 (General Provisions - Air Pollution Control).

DANIEL E. LOUIS
CHIEF ADMINISTRATIVE LAW JUDGE

Albany, New York
November 3, 2000

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