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Wawayanda Energy Center, L.L.C.

Prevention of Significant Deterioration

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

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.

Public Notice: Department of Environmental Conservation (DEC) Staff has made a tentative determination that the proposed construction of a 540 MW natural gas-fired combined cycle facility by Wawayanda Energy, L.P., is subject to and satisfies the federal requirements for the prevention of significant deterioration (PSD) contained in 40 CFR §52.21. The following PSD-affected air pollutants will be controlled with the Best Available Control Technology (BACT): particulate matter (PM & PM10), carbon monoxide (CO), nitrogen oxides (NOx), and sulfuric acid mist (H2SO4). The air emissions resulting from the turbines and generators will be vented through two 225 feet high exhaust stacks. The DEC Staff has also verified that the emissions of these PSD- affected air pollutants will not cause, or significantly contribute to, an exceedance of any national primary or secondary ambient air quality standards, and will not consume more than the allowable PSD air quality increments. 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 the Applicant, which have been incorporated as special permit conditions, DEC Staff have proposed and Wawayanda Energy has agreed to further emission limitations on the auxiliary equipment. The details are provided in the "fact sheet" in the administrative record.

Project Location: The facility would be located in Wawayanda, on a fifty-three acre undeveloped parcel of land adjacent to Dolsontown Road. The entire 53 acre parcel is under the control of the Applicant. The Wawayanda Energy Center is bounded on the south by Dolsontown Road, to the east by an abandoned railroad easement, to the west by several residences and open land, and to the north by electric transmission lines.

NYS Public Service Law: This project is subject to review pursuant to New York State Public Service Law (PSL) Article X (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 540 MW natural gas-fired combined cycle facility. The Article X application was filed on August 27, 2001.

Other Regulatory Provisions: In addition to the specific regulations cited above, the Article X application is being processed by DEC Staff 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 (Air 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, which will provide an opportunity for the public to comment on the 6 NYCRR Part 201-6.1 Air State Facility Permit and the 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). 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 public comment. The emissions limits and special permit conditions imposed on the Wawayanda Energy Project's construction and operations reflect those proposed by Wawayanda Energy in its PSD application (Appendix X of the Article X application, revised June, 2001). A draft PSD determination and fact sheets are 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 PM10), and sulfuric acid mist (H2SO4). The public comment period will run from the date of publication of this public notice until December 5, 2001. Written comments about DEC Staff's tentative PSD determination must be filed with the DEC project manager at the address provided below.

The final determination may be appealed administratively within 30 days of Wawayanda Energy'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, 625 Broadway, Albany, New York 12233-1750. Contact: Chris Hogan, Project Manager, at (518) 402-9151; and

(2) 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.

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