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Wawayanda Energy Center, LLC

October 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: Wawayanda Energy Center, L.L.C., The Pilot House, 2nd Floor, Lewis Wharf, Boston, MA 02110

Application Number: DEC # 3-3356-00109/0001; PSC Case # 00-F-1256

Project Description: The applicant, Wawayanda Energy, proposes to construct and operate two General Electric 7FB combustion turbines (CTGs), heat recovery steam generators (HRSGs) and one steam turbine generator and associated balance-of-plant systems and facilities. The fuel will be natural gas. The nominal electric generating capacity of the proposed Facility will be approximately 540 megawatts (MW). The Project will employ an Air Cooled Condenser (ACC) and will require on average 244,000 gallons per day (gpd) of cooling water. Cooling water will be supplied by the City of Middletown's publicly owned treatment works (POTW) and potable water (5,000 gpd) will be supplied by the City of Middletown through Wawayanda Water and Sewer District No. 1. The project is located off Dolsontown Road, approximately 2,000 feet east of the intersection with State Route 17M, in the Town of Wawayanda, Orange County.

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 air permits. Pursuant to Title 6 of the Official Codes, Rules and Regulations of the State of New York (6 NYCRR) Part 201, Wawayanda Energy has opted to obtain a preconstruction permit and certificate to operate authorizing the construction and operation of the proposed Wawayanda facility, pursuant to 6 NYCRR Subpart 201-6.1, prior to obtaining a Title V permit. Pursuant to the requirements of Environmental Conservation Law (ECL) Article 19, and 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), Wawayanda Energy has filed a complete application with the Department of Environmental Conservation (DEC) for this air emissions permit. The NYS DEC hereby notices a complete application and draft permit to construct and certificate to operate, along with permit conditions for the facility. The conditions in DEC's draft permit authorizes the construction and operation of the proposed facility pursuant to 6 NYCRR Subpart 201-6.1 and assure conformance of the Wawayanda 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 on enforceable permit conditions. 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 Wawayanda Energy's acid rain permit application included in the Air State Facility application and has found it approvable.

Wawayanda Energy is also required to obtain emissions offsets in the form of emission reduction credits (ERCs) for oxides of nitrogen (NOx). It is a minor source of volatile organic compounds (VOCs) as defined in 6 NYCRR Subpart 231-2. Pursuant to 6 NYCRR Subpart 231-2, Wawayanda Energy will provide a list of sources from which it obtains the necessary NOx ERCs. Thereafter, a separate public notice for the ERCs will be provided for public comment pursuant to 6 NYCRR 231-2.10.

In addition to the Part 201-6.1 preconstruction permit and certificate to operate, NYS DEC is concurrently issuing for public comment a Notice of Determination to Issue a Prevention of Significant Deterioration (PSD) Permit pursuant to 40 CFR 52.21 and 124.

State Pollutant Discharge Elimination System (SPDES)

SPDES Permits: The project is subject to SPDES General Permit GP-93-06 (Storm Water Discharges from Construction Activities) and SPDES General Permit GP-98-03 (Storm Water Discharges Associated with Industrial Activity Except Construction Activity), issued pursuant to ECL Article 17, Titles 7 and 8 and ECL Article 70. No individual permit for wastewater discharge is required since the discharge will be to the City of Middletown POTW.

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 Article X of the New York State Public Service Law (Siting of Major Electric Generating Facilities).

The conditions contained in the draft permits identified in this notice will be incorporated into the Article X hearing record for the Wawayanda Energy generating project. The entire Article X record that exists to date is also hereby incorporated, by reference, into the record for this proceeding.

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 Wawayanda Energy Limited Partnership, for a Certificate (PSC Case #00-F-1256). 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/independence.htm

NYS Environmental Conservation Law and implementing regulations: In addition to the specific regulations cited above, the air preconstruction permit applications are being processed by the DEC Staff pursuant to ECL Article 3, Title 3 (General Functions), 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).

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 conducted 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 and 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 have reviewed Wawayanda Energy's 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. It has been determined that all air program statutory and regulatory criteria can be met through the imposition of special permit conditions. For the 201-6 permit to construct and certificate to operate, DEC Staff has incorporated control technologies and emission limits proposed by the applicant and have further refined these limits, with concurrence from Wawayanda Energy, to achieve Best Available Control Technology (BACT) and Lowest Achievable Emission Rate (LAER) for the auxiliary equipment. The background documentation of this determination is available in the "fact sheets" and the administrative record for the project.

The application materials, fact sheet and draft preconstruction (air) 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. NYS DEC Office of Hearings and Mediation Services, 1st Floor, 625 Broadway, Albany, NY 12233-1550, at (518) 402-9003;
  2. NYS DEC Division of Environmental Permits, Department of Environmental Conservation,625 Broadway, Albany, New York 12233-1750. Contact Christopher Hogan, Project Manager, at (518) 402-9151; and,
  3. NYS DEC Region 3 Office, 21 South Putt Corners Road, New Paltz, New York, 12561. At the DEC Region 3 Office, contact Mike Merriman at (845) 256-3014.

Written Comments: All written comments about the 201-6 air preconstruction permit and certificate to operate must be filed, postmarked no later than December 5, 2001, with the Office of Hearings and Mediation Services, Department of Environmental Conservation, 625 Broadway Albany, New York 12233-1550, attn: P. Nicholas Garlick, Administrative Law Judge.

All public comments on the application and the Subpart 201-6 draft permits will be reviewed by DEC Staff 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: Legislative hearing sessions to receive unsworn statements from the public on the applications and the draft permits, described above, will be held before Administrative Law Judge P. Nicholas Garlick, on December 4, 2001 at 1:00 p.m. and 7:00 p.m. at the Slate Hill Social Hall, 1975 Route 284, Slate Hill, New York, 10973. As stated above, this hearing is being held on 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 Administrative Law Judge (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 at 11:30 a.m. on December 6, 2001 at the Slate Hill Social Hall, 1975 Route 284, Slate Hill, New York 10973 At the Issues Conference, the ALJ will determine what issues, if any, require adjudication, and will define the scope of such issues. 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. The draft PSD permit conditions referred to above are not subject to an adjudicatory or evidentiary hearing, pursuant to 40CFR §124.71(c).

Filing for Party Status and Proposed Issues: To participate at the DEC Issue 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). 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. A grant of party status in the parallel Article X proceeding does not automatically grant party status in the DEC hearing process.

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 4:00 p.m. on November 30, 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 P. Nicholas Garlick, NYSDEC Office of Hearings and Mediation Services, 625 Broadway, Albany, NY 12233-1550.
  2. Administrative Law Judge Rafael Epstein, NYSDPS, Office of Hearings and Alternative Dispute Resolution, 3 Empire State Plaza, Albany, New York 12223-1350.
  3. William Little, Esq., Senior Attorney, Office of General Counsel, NYSDEC 625 Broadway, Albany, New York 12233-1500.
  4. Saul Rigberg, Esq., NYSDPS, 3 Empire State Plaza, Albany, New York 12223-1350.
  5. Michael Murphy, Esq. and Stephen Gordon, Esq., Beveridge & Diamond, P.C., 477 Madison Avenue, 15th Floor, New York, NY 10022-5802.

Service by fax is NOT authorized.

Daniel E. Louis
Chief Administrative Law Judge

October 24, 2001
Albany, New York

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