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TransGas Energy Systems, LLC

June 4, 2003

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: TransGas Energy Systems, LLC, One North 12th Street, Brooklyn, New York 11201.

Application Number: DEC # 2-6101-00149/00014/[SPDES # NY0006301], (State Siting Board Case # 01-F-1276)

Project Description: The Applicant, TransGas Energy Systems, LLC, proposes to construct and operate a new 1,100 megawatt combined-cycle cogeneration energy facility on the East River waterfront between the Greenpoint and Williamsburg's North Side sections of Brooklyn (the Project). The facility will be fueled primarily by natural gas, with very low-sulfur distillate as a backup fuel. Heat recovery and delivery infrastructure for potential steam sales is included.

The proposed facility will be located on an approximately eight-acre site at the existing Bayside Oil Terminal at North 12th Street and Kent Avenue, in Brooklyn, New York. Combined-cycle cogeneration technology uses waste heat from the combustion turbine thermodynamic cycle to serve as the heat input to a conventional steam turbine thermodynamic cycle. Cogeneration refers to the use of steam for direct heating and cooling via the district heating network. The combustion turbine cycle consists of a compressor, combustor and turbine sections. A generator is coupled to the turbine shaft to transfer rotational mechanical energy into electrical energy. The proposed facility will be configured with two power blocks. Each block will consist of two Siemens Westinghouse W501-F combustion turbine generators (CTG), two heat recovery steam generators (HRSG), one steam turbine generator (STG) and associated balance-of-plant systems and facilities. Each gas turbine will burn natural gas and will be coupled to its HRSG, which will produce steam to operate the steam turbine and for steam export. To provide flexibility for steam export and help serve the Facility's thermal needs, two auxiliary boilers have also been incorporated into the design.

State Pollutant Discharge Elimination System (SPDES) Permit Application

SPDES Permit: The existing property (i.e., Bayside Oil Terminal) currently holds a SPDES permit to discharge hydrostatic test water and storm water associated with industrial activity from the site. TransGas is required to obtain a separate SPDES permit that reflects the operations of the proposed facility in order to obtain authorization to discharge the new waste streams from the site. Therefore, pursuant to ECL §17-0823, TransGas has filed an application with the New York State Department of Environmental Conservation (NYSDEC) for a State Pollutant Discharge Elimination System 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 December 24, 2002, and as amended 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 storm water to the Bushwick Inlet and waste water to the East River. Storm water runoff will be discharged to onsite drainage areas during the construction and operation of the proposed facility. Sanitary wastewater will be routed to existing treatment facilities on the site. The Facility's principal process intake is from Metropolitan Transit Authority subway dewatering effluent. Supplemental and backup water for the Facility will be obtained from the municipal distribution system. The present discharges covered under the draft SPDES permit are described as follows:

Outfall 001 (Storm Water from Yard Drains, Transformer Area, Oil Storage Tank Area and Barge Unloading Containment Area) will discharge to the Bushwick Inlet/East River.

Outfall 002 (Storm Water from Roof Drains) will discharge to the Bushwick Inlet/East River.

Outfall 003 (First Stage Reverse Osmosis Reject Water and Steam Condensate Return) will discharge to the East River.

Air Permit Applications

Preconstruction (Air) Permit and Certificate to Operate: Title V of the federal Clean Air Act requires Applicants of major sources of air pollutants to obtain preconstruction air permits. As allowed by 6 NYCRR Part 201, the Applicant, TransGas, has opted to obtain a preconstruction permit and certificate to operate, authorizing the construction and operation of the proposed Project, pursuant to 6 NYCRR Subpart 201-6.1, prior to the Title V permit application. Pursuant to the requirements of ECL Article 19, and 6 NYCRR Part 201 (Permits and Registrations) and 6 NYCRR Subpart 231-2 (Requirements for Emission Units Subject to the Regulation on or after November 15, 1992), TransGas, has filed a complete application with the NYSDEC for this preconstruction air emissions permit and the NYSDEC hereby notices a complete application and draft preconstruction permit and certificate to operate for the purpose of issuing a State Facility Permit, incorporating a set of permit conditions for the facility. The conditions in NYSDEC's draft preconstruction permit authorize the construction and operation of the proposed facility pursuant to 6 NYCRR Subpart 201-6.1 and assure conformance of the Project facility with requirements of 6 NYCRR Parts 201, 204, 225, 227, 231, and 257, as well as all other applicable State air pollution regulations and Federal requirements pertaining to enforceable permit conditions per New Source Performance Standards (NSPS) at 40 CFR Part 60. DEC Staff also has determined that federal maximum achievable control technology (MACT) requirements of 40 CFR, Part 63, Subpart B are not applicable to the project.

Pursuant to 6 NYCRR Subpart 231-2, TransGas is also required to obtain emissions offsets in the form of emission reduction credits (ERCs) for nitrogen oxides (NOx) and volatile organic compounds (VOCs). The specific list of ERC sources must be provided by TransGas and will be the subject of a separate notice for public comment at a later date, in accordance with 6 NYCRR 231-2.10. Concurrent with this notice of the Part 201-6.1 preconstruction permit and certificate to operate, the NYSDEC is providing for public comment on a Notice of Determination to Issue a Prevention of Significant Deterioration (PSD) Permit pursuant to 40 CFR 52.21 and 124.

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) to construct and operate a 1,100 megawatt natural gas-fired combined cycle cogeneration facility. The Article X application was filed on December 24, 2002, and supplemented in March 2003 (Siting Board Case #01-F-1276).

The conditions contained in the draft permits identified in this notice, if issued to TransGas, will be incorporated into the Article X hearing record for the TransGas Energy Systems, LLC, generating project. The entire Article X record that exists to date also hereby is incorporated by reference into the record for this proceeding. The NYSDEC Issues Conference described below will be held contemporaneously and on a joint record with the related PSL Article X proceedings concerning the application for a Certificate filed by TransGas Energy Systems, LLC. (Siting Board Case #01-F-1276). Coordinated with the publication of this NYSDEC hearing notice, the Secretary of the State Siting Board will issue a Notice of Issues and Prehearing Conference. For additional information concerning the PSL Article X application and related documents, go to the Department of Public Service web page at: "http://www.dps.state.ny.us/transgasenergie.htm" (click on "Access Electronic File Room Documents" regarding Case 01-F-1276).

SEQRA Status: The NYSDEC 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 required pursuant to PSL Article X.

Notice of Complete Application: The NYSDEC Staff has reviewed the application materials and supporting documentation and has determined that the materials are complete for the purpose of commencing departmental review, pursuant to ECL Article 70 and 6 NYCRR Part 621.

Tentative NYSDEC Staff Position: The NYSDEC Staff has made a tentative determination to approve these applications, and Staff has prepared draft SPDES and Air permits. NYSDEC Staff has determined that all statutory and regulatory criteria can be met through the imposition of special permit conditions, as set forth in the draft permits. For the 201-6 permit to construct and certificate to operate, NYSDEC Staff has incorporated control technologies and emission limits proposed by the Applicant and has independently established additional conditions which are determined to be necessary to achieve compliance with state and federal requirements. The background documentation for this determination is available in the "fact sheets" and in the NYSDEC administrative record for the project. DEC Staff has concluded that the project will have minimal impacts on the ambient air quality and will not cause or contribute to air quality standards violations.

Written Comments: All written comments on the draft SPDES permit and 201-6 air preconstruction permit and certificate to operate must be filed with the NYSDEC Division of Environmental Permits, Department of Environmental Conservation, 625 Broadway, Albany, New York 12233-1750, attn: John Cole, Project Manager. Written comments must be postmarked no later than July 23, 2003.

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.

Public Hearings Sessions and Issues Conference

Legislative Public Hearing: Two Legislative Hearing sessions to receive unsworn statements from the public on the NYSDEC permit applications and the NYSDEC draft permits, described above, will be held before Administrative Law Judge (ALJ) Kevin J. Casutto, on July 17, 2003 at 4:00 P.M., and at 7:00 P.M., at the Polish National Home, 261 Driggs Ave (Greenpoint), Brooklyn, 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 (see address, below).

Issues Conference: A pre-adjudicatory Issues Conference will be held on July 18, 2003 at 9:30 A.M., at the Department of Public Service, One Penn Plaza, Eighth Floor Hearing Room, New York, New York, and will continue on successive days, as necessary. Participation at the NYSDEC Issues Conference is limited to the NYSDEC Staff, the Applicant and those persons requesting party status in the NYSDEC permit hearing. Party status in this proceeding is not automatically conferred upon the parties to the PSL Article X proceeding, other than NYSDEC Staff and the Applicant. The purpose of the Issues Conference is to determine party status for any person who has properly filed a petition as indicated below, and to define, narrow and if possible, resolve proposed adjudicable issues concerning the permit application that have been raised by the Issues Conference participants. Separate filing of specific issues and for party status is required for the DEC permitting and the Article X issues. Any persons requesting party status must appear or be represented at the Issues Conference so that all proposed issues may be fully discussed. The draft PSD permit conditions referred to above are not subject to an adjudicatory or evidentiary hearing, pursuant to 40 CFR §124.71(c).

Filing for Party Status and Proposed Issues: To participate at the NYSDEC Issues Conference concerning the draft permits identified in this Notice (except the PSD permit), parties 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). Party status in this proceeding is not automatically conferred upon the parties to the PSL Article X proceeding, other than NYSDEC Staff and the Applicant.

Any petition for party status 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. The NYSDEC Permit Hearing Regulations, 6 NYCRR Part 624, may be accessed via the NYSDEC/OHMS web page at http://www.dec.state.ny.us/ (click on "Hearings and Mediations" under "About DEC" and then click on "Guide to Permit Hearings.")

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.

If seeking 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 July 10, 2003. 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:

  • Robert R. Garlin, Administrative Law Judge/PSL Art. X Presiding Examiner, NYSDPS, Office of Hearings and Alternative Dispute Resolution, 3 Empire State Plaza, Albany, New York 12223-1350; E-mail: "Robert_Garlin@dps.state.ny.us".
  • Kevin J. Casutto, Administrative Law Judge/PSL Art. X Associate Examiner, NYSDEC, Office of Hearings and Mediation Services, 625 Broadway, Albany, NY 12233-1550; E-mail: "kjcasutt@.gw.dec.state.ny.us".
  • Jennifer Hairie, Esq., Senior Attorney, Office of General Counsel, 625 Broadway, Albany, NY 12233-1500; E-mail:"jlhairie@.gw.dec.state.ny.us".
  • David Van Ort, Esq., Assistant Counsel, Office of General Counsel, NYSDPS, 3 Empire State Plaza, Albany, New York 12223-1350; E-mail: "david_vanort@dps.state.ny.us".
  • Sam M. Laniado, Esq., Read & Laniado, 25 Eagle Street, Albany, New York 12207; E-mail: "sml@readlaniado.com".

Electronic filing of petitions is acceptable, but must be followed by a paper copy via first class U.S. Mail, postmarked by July 10, 2003. Filings by E-mail must be transmitted both in Microsoft Word 97 or compatible (extension '.doc') and WordPerfect for Windows, version 6.1 or higher.(extension '.wpd').

Document Availability:

The NYSDEC application materials, as well as a draft SPDES permit, fact sheet and draft preconstruction (air) permit are available for review at the following locations between 10:00 AM and 4:00 PM, Monday through Friday:

  • NYSDEC Office of Hearings and Mediation Services, NYSDEC, Office of Hearings and Mediation Services, 625 Broadway, Albany, NY 12233-1550.
  • NYSDEC Division of Environmental Permits, Department of Environmental Conservation, 625 Broadway, Albany, NY 12233-1750. Contact John Cole, Project Manager, at (518)402- 9150.
  • NYSDEC Region 2 Headquarters, One Hunter's Point Plaza, 47-40 21st Street, Long Island City, New York 11101-5407. At the NYSDEC Region 2 Office, contact the Division of Environmental Permits, at (718) 482-4976.
  • Brooklyn Public Library, Central Library, Grand Army Plaza, Brooklyn, NY 11238 [Tel: (718) 230-2100].
  • Brooklyn Public Library, Greenpoint Branch, 107 Norman Ave at Leonard St., Brooklyn N.Y. 11222 [Tel: (718) 349-8504].
  • Brooklyn Public Library, Leonard Branch, 81 Devoe Street (at Leonard Street), Brooklyn, N.Y. 11221 [Tel: (718) 486-3365].
  • Steven Foster Director of Government, Library Services/Relations, Jay Katlan, Director of Public Programs, Business Library, 280 Cadman Plaza West, Brooklyn, N.Y. 11217 [Tel: (718) 623-7000].
  • New York Public Library, Kips Bay Branch, 446 Third Avenue, New York, N.Y. 10016 [Contact Pat Pardo, Librarian, at (212) 683-2520].
  • Queens Borough Public Library, Sunnyside Branch, 43-06 Greenpoint Avenue, Sunnyside, N.Y. 11104 [Tel: (718) 784-3033].
  • Community Board One, 435 Graham Avenue, Brooklyn, New York 11211 [Tel: (718) 389- 0009].

NYS Environmental Conservation Law and implementing regulations: In addition to the specific regulations cited above, the above referenced SPDES and air preconstruction permit applications are being processed by the NYSDEC 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).

James T. McClymonds
Acting Assistant Commissioner/Chief Administrative Law Judge
For Hearings & Mediation Services

June 4, 2003

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