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Spagnoli Road Energy Center

March 28, 2002

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

Applicant: Keyspan Energy Development Corporation [Spagnoli Road Energy Center], One Metro Tech Center 18th Floor, Brooklyn, NY 11201-3850

Application Number: DEC # 1-4726-01500/00001, [State Siting Board Case # 01-F-0761]

Project Description: The Applicant, Keyspan Energy Development Corporation, proposes to construct and operate the Spagnoli Road Energy Center, a gas-fired combined cycle power generation facility consisting of a combustion turbine generator (CTG) operating in conjunction with a heat recovery steam generator (HRSG), a steam turbine generator (STG), an air-cooled condenser and associated balance-of-plant systems and facilities. The fuel will be exclusively natural gas. The nominal electric generating capacity of the proposed facility will be approximately 250 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 dry low-NOx combustors and Selective Catalytic Reduction (SCR) to control formation of nitrogen oxides (NOx) and associated emissions. The air emissions resulting from the turbines and generators will be vented through a single 195 foot high exhaust stack.

The facility's water supply requirements are projected to range from approximately 29 gallons per minute (0.042 million gallons per day) during fall, winter and spring operations, to approximately 54 gallons per minute (0.078 million gallons per day) during summer operations. The Applicant proposes to obtain water supply for the facility from the South Huntington Water District (the Water District). Process and sanitary wastewater will be routed to the Bergen Point Sewage Treatment Plant. Stormwater from site runoff and secondary containment areas will be discharged to a refurbished infiltration basin. The proposed project site is approximately 31.7 acres in area and is located on the south side of Spagnoli Road, about 0.5 miles west of Route 110, in the southwest corner of the Town of Huntington, near the Nassau County-Suffolk County line, Suffolk County.

Air Permit Applications

Title V Permit: Title V of the federal Clean Air Act requires Applicants of major air emission sources to obtain preconstruction air permits. Pursuant to Title 6 of the New York Compilation of Codes, Rules and Regulations (6 NYCRR) Subpart 201-6, Keyspan Energy Development Corporation has opted to obtain a Title V permit authorizing the construction and operation of the proposed Spagnoli Road Energy Center Energy facility. Consistent with the requirements of Environmental Conservation Law (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 Energy Development Corporation has filed a complete application with the Department of Environmental Conservation (DEC) for this Title V permit. DEC Staff has determined that federal Prevention of Significant Deterioration (PSD) requirements and maximum achievable control technology (MACT) requirements of 40 CFR, Part 63, Subpart B are not applicable to the project. 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 proposed facility. Pursuant to the Phase II requirements of Title IV of the Clean Air Act and 40 CFR §72.6(a)(3), Staff has also reviewed Keyspan Energy Development Corporation's acid rain permit application included in the Title V application and has found it approvable.

The conditions in DEC's draft air permit authorize the construction and operation of the proposed facility pursuant to 6 NYCRR Subpart 201-6.1 and assure conformance of the Spagnoli Road Energy Center facility with requirements of 6 NYCRR Parts 201, 202, 204, 211, 227, 231, and 257, as well as all other applicable State air pollution regulations and Federal requirements per New Source Performance Standards (NSPS) at 40 CFR Part 60 on enforceable permit conditions. In accordance with 6 NYCRR §621.5(d)(9) and §201-6.4(c), the Administrator of the United States Environmental Protection Agency (USEPA) has the authority to bar issuance of any Title V Facility Permit if it is determined not to be in compliance with applicable requirements of the Clean Air Act or 6 NYCRR Part 201.

Emission Reduction Credits: Keyspan Energy Development Corporation is also required to obtain emissions offsets in the form of 75 tons of emission reduction credits (ERCs) for NOx. The project is a minor source of volatile organic compounds (VOCs) per 6 NYCRR Subpart 231-2 definition. Pursuant to 6 NYCRR Subpart 231-2, Keyspan Energy Development Corporation has obtained 64.8 tons of NOx ERCs from Zapco Energy Tactics' Oyster Bay facility (DEC facility # 1-2824-00077), and 10.2 tons of NOx ERCs from Zapco Energy Tactics' Oceanside facility (DEC facility # 1-2820-00951) for a total of 75 tons of the necessary NOX ERCs. Therefore, this notice also serves as the public notice for the ERCs and provides for the public comment period required by 6 NYCRR 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 a refurbished infiltration basin during the construction and operation of the proposed facility.

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 New York State Public Service Law (PSL) Article X (Siting of Major Electric Generating Facilities). The PSL Article X application was filed on January 28, 2002 (State Siting Board Case #01-F-0761). The conditions contained in the DEC draft permits identified in this notice will be incorporated into the Article X hearing record for the Keyspan Energy Development Corporation generating project. The entire existing Article X record also hereby is incorporated by reference into the record of this DEC proceeding.

The DEC public hearing noticed herein will be held contemporaneously and on a joint record with the related PSL Article X proceedings concerning the application filed by Keyspan Energy Development Corporation for a Certificate (State Siting Board Case #01-F-0761). 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/spagnoli.htm.

NYS Environmental Conservation Law and Implementing Regulations: In addition to the specific statutes and regulations cited above, the subject SPDES, Title IV and Title V permit applications are being processed by 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 Subparts 201-6 (Permits and Registrations) and 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 designated by 6 NYCRR §617.5(c)(35). A comprehensive environmental review is required 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. 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 DEC Staff has reviewed Keyspan Energy Development Corporation's application materials and supporting documentation and has determined that the application is complete pursuant to 6 NYCRR Part 621. DEC Staff has made a tentative determination to approve this application and has prepared draft permits. Further, DEC Staff has determined that all air program 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 to meet and exceed regulatory requirements. Therefore, 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 Lowest Achievable Emission Rate (LAER) for nitrogen oxides (NOx) pursuant to subpart 231-2. Although LAER is not required in this case for volatile organic compounds (VOCs) since the project is a minor source of VOCs as per the 6 NYCRR Subpart 231-2 definition, the project will meet a LAER-compatible limit for emissions of VOCs. The background documentation of this determination is available in the "fact sheets" that are part of the draft air permit and the administrative record for the project.

The application materials, fact sheets, the draft 201-6 Title V permit, draft Title IV permit, and the draft SPDES permit are available for review at the following locations during normal business hours between 9:00 a.m., and 4:00 p.m., Monday through Friday:

  • NYS DEC Office of Hearings and Mediation Services, 625 Broadway, First Floor, Albany, NY 12233-1550. Contact: Administrative Law Judge (ALJ)/Associate Examiner Kevin J. Casutto at (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 where the PSL Article X application is available for public review: Farmingdale Library, 116 Merritts Rd., Farmingdale, NY 11735; Huntington Central Library, 338 Main St., Huntington, NY 11743; Huntington Public Library, 1351 New York Ave., Huntington, NY 11743; Half-Hollow Hills Community Library, 510 Sweet Hollow Road., Dix Hills, NY 11747; Half-Hollow Hills Community Library, 55 Vanderbilt Parkway, Dix Hills, NY 11747; Plainview-Old Bethpage Library,

999 Old Country Road, Plainview, NY 11803; Syosset Library, 225 S. Oyster Bay Rd., Syosset, NY 11791; The Greeley Library, SUNY Farmingdale, Route 110, Farmingdale, NY 11735; West Babylon Public Library, 211 Route 109, West Babylon, NY 11703.

Written Comments: All written comments regarding the draft 201-6 Title V air permit, draft Title IV permit, Emission Reduction Credits and draft SPDES permit must be sent to ALJ/ Associate Examiner Kevin J. Casutto at NYSDEC OHMS, 625 Broadway [1st Floor], Albany, New York 12233-1550. All written comments must be received by May 7, 2002.

Public comments on the Subpart 201-6 draft Title V permit, Title IV permit, emission reduction credits and draft SPDES permit do not constitute evidence but may be used by the ALJ/Associate Examiner as a basis to inquire further of the parties and potential parties at the issues conference, as set forth in the Department's Permit Hearing Regulations (6 NYCRR 624.4(a)(4)). Specific comments must be supported by full documentation and references should be limited to readily available information.

Public Hearings Sessions and Issues Conference

Legislative Public Hearing: Legislative hearing sessions to receive unsworn statements from the public on the DEC permit applications and the draft permits described above, will be held before DEC ALJ/PSL Article X Associate Examiner Kevin J. Casutto, on May 7, 2002 at 1:00 p.m. and 7:00 p.m. at the Auditorium at Old Bethpage Village, 1303 Round Swamp Road, Old Bethpage, New York 11804. As stated above, this hearing will be held upon 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 ALJ/ Associate Examiner identified above, at least 10 days prior to the hearing, pursuant to the State Administrative Procedures Act.

Issues Conference: A pre-adjudicatory hearing DEC Issues Conference is scheduled to be held on May 10, 2002, at 10:00a.m., at the N.Y.S. Department of Public Service Hearing Room, One Penn Plaza [Eighth Floor], New York, New York 10119-0002, and will continue on successive days as necessary. At the Issues Conference, the DEC ALJ/Associate Examiner 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 in the DEC Issues Conference will be limited to the DEC Staff, the Applicant and those persons requesting party status pursuant to 6 NYCRR §624.5 in advance of the Issues Conference. Party status in this DEC proceeding is not automatically conferred upon the parties to the PSL Article X proceeding, other than NYSDEC Staff and the Applicant. Parties to the related PSL Article X proceeding must file a petition pursuant to 6 NYCRR §624.5 to participate in the DEC Issues Conference (and any subsequent DEC proceedings in this matter).

Filing for Party Status and Proposed Issues: To participate in the DEC Issues Conference, a person must file a written petition requesting party status including the facts intended for presentation pursuant to 6 NYCRR §§624.4(c) and 624.5(b). In addition, 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 interests, 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.

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 party 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 party 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 3:00 p.m. on May 1, 2002. One copy of any petition requesting either full party status or amicus status must be filed with the ALJ/Examiners identified below and served upon the following other individuals:

  • Kevin J. Casutto, DEC ALJ/PSL Article X Associate Examiner, NYSDEC, Office of Hearings and Mediation Services, 625 Broadway [1st Floor], Albany, NY 12233-1550;
  • Robert Garlin, DPS ALJ/PSL Article X Presiding Examiner, NYSDPS, Office of Hearings and Alternative Dispute Resolution, 3 Empire State Plaza, Albany, New York 12223-1350;
  • Jennifer Hairie, Esq., Senior Attorney, Office of General Counsel, NYSDEC, 625 Broadway, Albany, NY 12233-1500;
  • Kim Harriman, Esq., Office of General Counsel, NYSDPS, 3 Empire State Plaza, Albany, New York 12223-1350; and
  • Michael Gerrard, Arnold & Porter, 399 Park Avenue, New York, New York 10022-4690.

Electronic filing of petitions by facsimile transmission or E-mail is NOT authorized. As previously explained, parties to the related PSL Article X proceeding are not automatically granted full party status with respect to the DEC environmental permits and must file a petition pursuant to 6 NYCRR §624.5 in order to participate in the DEC Issues Conference.

Daniel E. Louis
Chief Administrative Law Judge

Albany, New York
March 28, 2002

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