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KeySpan Energy

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

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

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

Project Description: The applicant, KeySpan Energy (Keyspan), has applied for Prevention of Significant Deterioration (PSD) pre-construction conditions from the New York State Department of Environmental Conservation (DEC) pursuant to 40 Code of Federal Regulations (CFR) § 52.21 and for a Certificate of Environmental Compatibility and Public Need under Article X of the NYS Public Service Law from the New York State Board on Electric Generation Siting and the Environment so that it may construct and operate the 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). DEC has conducted the PSD review contained in 40 CFR §§ 52.21 and 124. 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.

Public Notice: DEC staff has made a tentative determination that the proposed construction of a 250 MW natural gas-fired combined cycle/cogeneration facility by KeySpan is subject to and satisfies the federal requirements for the PSD contained in 40 CFR § 52.21. The air emissions will result from the turbines and generators and will be vented through a single 400-foot high exhaust stack. The following PSD-affected air pollutants will be controlled with the Best Available Control Technology (BACT): sulfur dioxide (SO2), 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 an 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. In fact, the projected maximum concentrations of the PSD-affected criteria pollutants are below U.S. Environmental Protection Agency (EPA)-defined significance levels. The facility is also affected by federal New Source Performance Standards (NSPS) at 40 CFR Part 60. In addition to the operating restrictions and emission limitations proposed by KeySpan for the Ravenswood Cogeneration Facility, which have been incorporated as special permit conditions, DEC staff has imposed limitations on the draft PSD permit to assure compliance with nitrogen oxide (NOx) Lowest Achievable Emissions Reduction (LAER) requirements, CO LAER requirements, VOC LAER requirements and reductions in ammonia emissions, as provided in the "fact sheet" in the administrative record and as summarized below.

Project Location: 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.

NYS Public Service Law: This project is subject to review pursuant to Article X of the New York State Public Service Law (PSL) (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 to construct and operate a 250 MW natural gas-fired combined cycle/cogeneration facility. The Article X application was filed on July 28, 2000 and supplemented on November 10, 2000.

Other Regulatory Provisions: In addition to the specific regulations cited above, the entire Article X application is being processed by DEC 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 Title 6 of the New York Compilation of Codes, Rules and Regulations (6 NYCRR) Part 201 (Permits and Registrations), 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) and Part 621 (Uniform Procedures). A separate notice will be issued concurrently for comment on the 6 NYCRR Part 201 and State Pollutant Discharge Elimination System (SPDES) draft permits.

SEQRA Status: DEC has determined that the proposed action is a Type II action 6 NYCRR § 617.5(c)(35), and is not subject to review pursuant to the State Environmental Quality Review Act (SEQRA) (ECL Article 8) and 6NYCRR Part 617. A comprehensive environmental review is being conducted pursuant to PSL Article X.

Tentative DEC Staff Position: DEC staff has reviewed the PSD application and determined it is complete pursuant to 6 NYCRR Part 621. Staff has determined that all statutory and regulatory criteria can be met through the imposition of special conditions. A draft PSD determination and conditions are being made available for comment.

The emissions limits and special permit conditions imposed on the Ravenswood Cogeneration Facility construction and operations reflect those proposed and analyzed by KeySpan in its PSD application (Appendix 5B of the November 10, 2000 revised Article X application). A draft PSD determination is available for review.

Public Comments/Appeal Procedure: DEC invites public comment regarding this tentative determination. DEC's final determination will be made only after full consideration of all public comment received. Comments are to be limited to PSD concerns and must be in writing, and must be accompanied with adequate supporting information. 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 February 23, 2001. The final determination may be appealed administratively within 30 days of KeySpan's receipt of the final PSD permit determination. Only those persons who file comments on this PSD preliminary determination may petition the EPA Environmental Appeals Board for administrative review of the PSD determination. Persons who fail to file comments may petition for review only to the extent of any 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 determination from the draft to the final decision, no opportunity for further review or appeal will be available.

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 following the final EPA decision.

Document Availability: All filed application materials and the preliminary PSD determination are available for public inspection at the following DEC offices between 9:00 AM and 4:00 PM, Monday through Friday: (1) NYS Department of Environmental Conservation, Division of Environmental Permits, 50 Wolf Road, Room 538, Albany, New York 12233-1750. Contact: Orest Lewinter, Project Manager at (518) 457-7718; (2) 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.

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