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Ravenswood Cogeneration Facility

January 24, 2001

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

Applicant: KeySpan Energy, One MetroTech Center, Brooklyn, New York, 11201

Application Number: DEC # 2-6304-00024/00004, PSC Case # 99-F-1625, SPDES #NY0005193

Project Description: The applicant, KeySpan Energy (KeySpan), proposes to construct and operate Ravenswood Cogeneration Facility, a combined cycle/cogeneration electric generating facility consisting of a General Electric 7FA combustion turbine generator (CTG), a heat recovery steam generator (HRSG), one steam turbine generator (STG) and associated balance-of-plant systems and facilities. The primary fuel will be natural gas and low (0.04 percent) sulfur fuel oil will be used for back-up. The nominal electric generating capacity of the proposed facility will be approximately 250 megawatts (MW). The applicant also proposes to install a carbon monoxide (CO) catalyst to reduce CO and volatile organic compounds (VOCs), and a "dry low oxides of nitrogen (NOx) burner" and Selective Catalytic Reduction (SCR) to reduce NOx. The facility will not require the intake of cooling water from the East River since it will use an air-cooled condenser.

The energy facility would be located adjacent to the Ravenswood Generating Station on Vernon Boulevard in Long Island City, Queens County, New York, on part of an approximately 28-acre parcel owned by the applicant. The entire project area is zoned for Heavy Manufacturing. The Ravenswood Generating Station is bounded on the west by the East River, on the east by Vernon Boulevard, on the south by Con Edison's 138 kV Vernon Substation, and on the north by Con Edison's 345 kV Rainey Substation.

State Pollutant Discharge Elimination System (SPDES) Permit Application

SPDES Permit: Pursuant to Environmental Conservation Law (ECL) § 17-0823, the applicant has filed an application with the New York State Department of Environmental Conservation (DEC) for a SPDES wastewater discharge permit and a request for certification that its discharges will comply with the applicable provisions of §§ 301, 302, 303, 306 and 307 of the Federal Clean Water Act. The application was filed on July 28, 2000 and supplemented on November 10, 2000, and is consistent with the requirements of § 402 of the Federal Clean Water Act for discharges from new steam electric generating facilities.

The applicant seeks approval to discharge wastewater to a collection system and then to the East River. Storm water runoff will be discharged to existing onsite drainage areas during the construction and operation of the proposed facility. Sanitary wastewater will be routed to the New York City sewer system.

The discharges covered under the draft SPDES permit are described as follows:

The following additional low volume waste streams will be directed to the existing cooling water discharge canal, which discharges to the East River:

Outfall 001D - oil/water separator effluent

Outfall 001E - neutralized boiler blowdown

Outfall 001F - granular filter backwash

Outfall 001G - neutralized ion exchange demineralization regeneration reject water

Outfall 001H - evaporative cooler blowdown

Outfall 001I - air-cooled condenser fan washwater

Outfall 001J - ion exchange softening regeneration effluent

Outfall 001K - neutralized external heat exchange blowdown.

Air Permit Applications

Title V Permit: Title V of the federal Clean Air Act requires applicants of major sources of air pollutants to obtain preconstruction air permits. As allowed by Part 201 of Title 6 of the New York Compilation of Codes, Rules and Regulations (6 NYCRR), KeySpan has opted to obtain a Title V permit authorizing the construction and operation of the proposed Ravenswood Cogeneration facility, pursuant to 6 NYCRR Subpart 201-6.1. Pursuant to the requirements of ECL Article 19, 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), KeySpan has filed a complete application with DEC for this Title V permit. DEC hereby notices a complete application and draft permit for the purpose of issuing a Title V Permit, along with a set of permit conditions for the facility. Pursuant to the Phase II requirements of Title IV of the Clean Air Act and 40 CFR § 72.6(a)(3), the staff has also reviewed Keyspan's Acid Rain Permit Application included in the PSD application and has found it approvable. The conditions in DEC's draft permit authorize the construction and operation of the proposed facility pursuant to 6 NYCRR Subpart 201-6.1 and assure conformance of the Ravenswood Cogeneration facility with requirements of 6 NYCRR Parts 201, 225, 227, 231, and 257, as well as all other applicable State air pollution regulations and Federal requirements on enforceable permit conditions.

In addition to the Part 201-6.1 Title V draft permit, DEC is concurrently issuing for public comment a Notice of Determination to Issue Prevention of Significant Deterioration (PSD) conditions pursuant to 40 CFR §§ 52.21 and 124.

KeySpan has obtained Emission Reduction Credits (ERCs) for NOx and expects to shortly obtain them for VOCs. A separate Public Notice will be issued at that time. The air permits will not be issued without completed ERCs.

Additional Regulatory Provisions

NYS Public Service Law (PSL): This project is subject to review pursuant to Article X of the New York State Public Service Law (Siting of Major Electric Generating Facilities) and requires a Certificate of Environmental Compatibility and Public Need (Certificate) from the New York State Board on Electric Generation Siting and the Environment (Siting Board) to construct and operate a 250 MW (megawatt) natural gas-fired combined cycle/cogeneration combustion turbine generating facility. The Article X application was filed on July 28, 2000. The conditions contained in the draft permits identified in this notice will be incorporated into the Article X hearing record for the Ravenswood Cogeneration Facility.

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 KeySpan for a Certificate (Siting Board Case 99-F-1625).

NYS Environmental Conservation Law and implementing regulations: In addition to the specific regulations cited above, the subject SPDES and Title V permit applications are being processed by the DEC Staff pursuant to 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 DEC Staff has determined that the proposal is a Type II action as specifically designated by 6 NYCRR § 617.5(c)(35). A comprehensive environmental review is conducted pursuant to PSL Article X.

Tentative DEC Staff Position and Document Availability: The DEC staff has reviewed the 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. Staff has determined that all statutory and regulatory criteria can be met through the imposition of special permit conditions. For the 201-6 Title V draft air permit, DEC staff has incorporated control technologies and emission limits proposed by the applicant and has independently established, with concurrence from U.S. Environmental Protection Agency (EPA) Region II staff, a set of additional conditions which are determined to be necessary to achieve Lowest Achievable Emission Rate (LAER) for CO and VOCs.

The application materials, as well as a draft SPDES permit, fact sheet and draft Title V (air) permit and Title IV conditions are available for review at the following locations during normal business hours between 9:00 AM and 4:00 PM, Monday through Friday:

(1) DEC Office of Hearings and Mediation Services (OHMS), 50 Wolf Road, Room 423, Albany, NY 12233-1550. Contact: Administrative Law Judge (ALJ) Helene G. Goldberger at (518) 457-3468;

(2) DEC Division of Environmental Permits, Department of Environmental Conservation, 50 Wolf Road, Road, 538, Albany, New York 12233-1750. Contact: Orest Lewinter, Project Manager at (518) 457-7718; and,

(3) DEC Region 2 Headquarters, Division of Environmental Permits, One Hunters Point Plaza, 47-40 21st St., Long Island City, NY 11101-5407. Contact: Elizabeth Clarke at (718) 482-4079.

Written Comments: All written comments about the draft SPDES permit and 201-6 air Title V permit must be filed with the ALJ Goldberger, OHMS, Department of Environmental Conservation, 50 Wolf Road, Room 423, Albany, New York 12233-1550. Written comments must be postmarked no later than February 23, 2001.

All public comments on the application and the draft SPDES and Subpart 201-6 permits will be reviewed 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. The draft PSD conditions referred to above are not subject to hearings pursuant to 40 CFR § 124.71(c).

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 ALJ Helene G. Goldberger, on February 28, 2001 at 7:00 PM at P.S.112, 25-05 37th Avenue, Long Island City, New York. 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 ALJ at least 10 days prior to the hearing, pursuant to the State Administrative Procedures Act.

Issues Conference: A pre-adjudicatory hearing Issues Conference is scheduled to be held on March 1, 2001 at 10 AM at 1 Penn Plaza, 8th Floor, New York, NY. The issues conference will continue on March 2, 2001, if necessary. Based upon the Issues Conference record, the ALJ will 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.

Filing for Party Status and Proposed Issues: To participate at the Issues Conference concerning the draft permits identified in this Notice (except the PSD permit), persons must file a written petition requesting party status pursuant to 6 NYCRR §§ 624.4(c) and 624.5(b). Any petition must fully identify the proposed party and the name(s) of the person(s) who will act as the party's representative(s), the party's environmental interest, the statutory considerations relevant to the project, whether the request is for full party status or amicus status, and the precise grounds for opposing or supporting the project. Mere opposition to the project is not a sufficient basis to be granted party status. The NYSDEC Permit Hearing Regulations, 6 NYCRR Part 624.

If seeking full party status, the petitioner must propose issues that could result in permit denial, major modification of the proposed project, or the imposition of significant permit conditions. The petition must identify all statutory and regulatory requirements which may not be met, and explain why. If a petitioner intends to rely upon expert testimony, the petition must also include an offer of proof that specifies the witness(es), the nature of the arguments, any documentary evidence that the petitioner intends to present at the hearing, and the grounds upon which the assertions are based regarding the proposed issues.

For amicus status, the filing must identify the nature of the legal or policy issues to be briefed, and provide a statement explaining why the proposed amicus is in a special position with respect to those issues.

All petitions must be received by 4:00 PM on February 21, 2001. One copy of any petition requesting either full party status or amicus status must be served upon the following individuals:

(1) Administrative Law Judge Helene Goldberger, DEC Office of Hearings and Mediation Services, 50 Wolf Road, Albany, NY 12233-1550.

(2) Administrative Law Judge Robert Garlin, NYSDPS, Office of Hearings and Alternative Dispute Resolution, 3 Empire State Plaza, Albany, New York 12223-1350.

(3) Jennifer Hairie, Esq., Attorney, Office of General Counsel, DEC 50 Wolf Road, Albany, New York 12233-1500.

(4) Jean Mc Donnell, Esq., NYSDPS, 3 Empire State Plaza, Albany, New York 12223-1350.

(5) Michael Gerrard, Esq., Arnold & Porter, 399 Park Avenue, New York, New York 10022.

Service by fax is NOT authorized.

Daniel E. Louis
Chief Administrative Law Judge

January 24, 2001

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