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Dynegy Northeast Generation, Inc. - Roseton Generating Station

April 12, 2005

NEW YORK STATE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION

ANNOUNCEMENT OF PUBLIC COMMENT PERIOD
- and -
AVAILABILITY OF DRAFT PERMIT, LEGISLATIVE PUBLIC HEARING
AND ISSUES CONFERENCE

Applicant: Dynegy Northeast Generation, Inc., 992-994 River Road, Newburgh, New York 12550

Application Number: DEC Number 3-3346-00075/00001

Project Description: The New York State Department of Environmental Conservation (Department) proposes to renew and modify the State Pollutant Discharge Elimination System (SPDES) Permit for the Roseton Generating Station (Roseton, SPDES permit number NY0008231). The station is located in the Town of Newburgh, Orange County, New York, on the west shore of the Hudson River approximately at river mile 65. The draft permit contains conditions which address conventional industrial wastewater pollutant discharges, thermal discharge and cooling water intake. The draft permit prepared by DEC Staff would require Dynegy Northeast Generation, Inc. (Dynegy) to continue and to implement measures to reduce impingement and entrainment of fish and other aquatic organisms by the cooling water intake. The draft permit identifies performance standards for reducing impingement and entrainment mortalities.

Technology and water quality assessments of the existing permit limits were conducted. As a result, the Department staff proposes to change the limits for the non-contact cooling water intake-discharge temperature differential, and the limits and monitoring requirements for certain pollutants. The draft permit would require Dynegy to conduct a thermal study to assess mixing zone requirements. Department staff proposes to add two existing stormwater suboutfalls recently identified by Dynegy, to update the schedule of compliance in the permit, and to add standard Best Management Practices conditions. Please see the draft permit and fact sheet for additional information.

State Pollutant Discharge Elimination System (SPDES)

SPDES Permits: Pursuant to Environmental Conservation Law (ECL) §17-0823, Dynegy filed an application to renew the existing SPDES permit in April 1992. The permit was extended under the provisions of the State Administrative Procedures Act. In July 2002, Department staff commenced reviews of methods to reduce impingement and entrainment from the facility's cooling water intake structure, as well as a water quality review. Those reviews resulted in modifications that are reflected in the draft permit.

Additional Regulatory Provisions

NYS Environmental Conservation Law and implementing regulations: In addition to the specific statutes and regulations cited above, the subject SPDES permit application is being processed by Department Staff pursuant to ECL article 3, title 3 (General Functions), ECL article 17 (Water Pollution Control), ECL article 70 (Uniform Procedures) and title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York (6NYCRR) part 621 (Uniform Procedures), part 624 (Permit Hearing Procedures), and part 750 (State Pollutant Discharge Elimination System).

Part 621 (Uniform Procedures): The Department issued a Notice of Complete Application dated February 28, 2000, that was published in the Department's Environmental Notice Bulletin on March 8, 2000 and in the Middletown Times Herald-Record on March 14, 2000. A draft permit was not made available at the time of the notice.

SEQRA Status: Department staff determined that the proposal is a Type I action as designated by 6 NYCRR Part 617 (State Environmental Quality Review). A coordinated review was conducted and the Department, as lead agency, determined that the project may have a significant adverse impact on the environment.

A Draft Environmental Impact Statement (DEIS) was prepared concerning the SPDES permit renewal applications for three facilities: Roseton Electric Generating Facility Units 1 and 2, Indian Point Electric Generating Facility Units 2 and 3, and Bowline Point Electric Generating Facility Units 1 and 2. The DEIS for these three facilities was considered adequate for public review on February 28, 2000. On May 2, 2000, the Department issued a notice extending the comment period and scheduling a hearing that was held on June 8, 2000. The Department prepared a Final Environmental Impact Statement (FEIS) in which the public comments were addressed. The FEIS was accepted by the Department on June 25, 2003.

Each of the SPDES permit renewals and modifications are now being renoticed to accept public comments on the draft permits. A notice regarding the Indian Point Electric Generating Facility's SPDES renewal application was issued on November 12, 2003. A draft SPDES permit for the Bowline Point Electric Generating Facility has not yet been prepared by the Department.

State Historic Preservation Act (SHPA) Determination: The proposed activity is not subject to review in accordance with SHPA. The permit type is exempt or the activity is being reviewed in accordance with federal historic preservation regulations.

Coastal Management: This project is located in a Coastal Management area and is subject to the Waterfront Revitalization and Coastal Resources Act.

Tentative Department Staff Position and Document Availability: Department staff has reviewed information submitted by Dynegy and information in numerous reports and studies conducted over more than 25 years related to entrainment and impingement at once-through cooling facilities. Department staff has also reviewed Dynegy's application materials and supporting documentation, and has determined that they are complete pursuant to 6 NYCRR part 621. A tentative determination has been made to approve this application and a draft permit has been prepared. The background documentation supporting this determination is available in the "fact sheets" and the administrative record for the project.

The application materials, fact sheet, and the draft SPDES permit are available for review at the following locations during normal business hours between 9:00 AM and 4:00 PM, Monday through Friday:

1) NYSDEC Office of Hearings and Mediation Services, 625 Broadway, First Floor, Albany, NY 12233-1550. Contact: Administrative Law Judge Susan DuBois at (518) 402-9003;

2) NYSDEC Division of Environmental Permits, 625 Broadway, Albany, New York 12233-1750. Contact: Christopher M. Hogan, Project Manager, at (518) 402-9151;

3) NYSDEC Region 3 Office, 21 South Putt Corners Road, New Paltz, NY 12561, telephone number (845) 256-3055; and

4) Newburgh Town Hall, 1496 Route 300, Newburgh, New York. Contact: Andrew Zarutskie, at (845) 564-4554.

Written Comments: All written comments about the draft SPDES permit must be postmarked by Thursday, June 2, 2005, and sent to Administrative Law Judge Susan DuBois, NYSDEC Office of Hearings and Mediation Services, 625 Broadway, First Floor, Albany, New York 12233-1550.

Legislative 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 at 2:00 p.m. and 7:00 p.m. on Tuesday, June 14, 2005 at the Newburgh Town Hall, 1496 Route 300, Newburgh, 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 make a request in advance in order 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, identified above, 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 at 10 A.M. on Wednesday, June 15, 2005 at the Newburgh Town Hall, 1496 Route 300, Newburgh, New York. The issues conference will continue day to day, as necessary. The purpose of the issues conference is to define, narrow, and, if possible, resolve proposed adjudicable issues concerning the renewal application. It is important that any persons requesting party status appear or be represented at the issues conference in order that all proposed issues may be fully discussed. If an adjudicatory hearing is necessary, it will be scheduled to occur at a later date.

Filing for Party Status and Proposed Issues: Persons seeking to participate in the issues conference and any subsequent adjudicatory hearing must file a petition (a written statement) explaining whether their request is for full party status or amicus status. For the required contents of petitions for full party status, see 6 NYCRR 624.5(b)(1) and (2). To determine whether an issue is substantive, see 6 NYCRR 624.4(c)(2) and to determine whether an issue is significant, see 6 NYCRR 624.4(c)(3). For the required contents of a petition seeking amicus status, see 6 NYCRR 624.5(b)(1) and (3).

All petitions must be received by 4:00 p.m. on Thursday, May 26, 2005. One copy of any petition requesting either full party status or amicus status must be served upon each of the following individuals:

(1) Administrative Law Judge Susan DuBois, NYSDEC Office of Hearings and Mediation Services, 625 Broadway, Albany, NY 12233-1550.

(2) Mark Sanza, Esq., Associate Counsel, Office of General Counsel, NYSDEC 625 Broadway, Albany, New York 12233-1500.

(3) Robert Alessi, Esq., LeBoeuf, Lamb, Greene & MacRae, LLP, 99 Washington Ave., Suite 2020, Albany, NY 12210-2820.

In the event no petitions for party status are filed, the issues conference may be canceled.

Service by fax is NOT authorized.

James T. McClymonds
Chief Administrative Law Judge

Albany, New York
April 12, 2005

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