[Federal Register Volume 72, Number 216 (Thursday, November 8, 2007)]
[Notices]
[Pages 63169-63171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21959]


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DEPARTMENT OF ENERGY


Notice of Availability of the Draft Environmental Impact 
Statement for the Mesaba Energy Project

AGENCY: Department of Energy.

ACTION: Notice of Availability and public hearings.

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SUMMARY: The U.S. Department of Energy (DOE) announces the availability 
of the Draft Environmental Impact Statement for the Mesaba Energy 
Project (DOE/EIS-0382D) for public comment, as well as the dates, 
locations and times for public hearings. The draft environmental impact 
statement (EIS) analyzes the potential environmental consequences of 
DOE's proposed action to provide a total of $36 million in co-funding, 
through a financial assistance cooperative agreement, for the design 
and one-year operational demonstration of a coal-based, Integrated 
Gasification Combined Cycle (IGCC) electric generating facility on the 
Iron Range of northern Minnesota. DOE may also provide a loan guarantee 
pursuant to the Energy Policy Act of 2005 to guarantee a portion of 
private sector financing for the project; however, this loan guarantee 
is not part of DOE's proposed action. The facility would be 
demonstrated through a cooperative agreement between DOE and Excelsior 
Energy Inc. (Excelsior) under the Clean Coal Power Initiative (CCPI) 
program.

DATES: DOE invites the public to comment on the draft EIS during the 
public comment period, which ends January 11, 2008. DOE will consider 
all comments postmarked or received during the public comment period in 
preparing the Final EIS and will consider late comments to the extent 
practicable.
    DOE will conduct two public hearings to obtain comments on the 
draft EIS. The meetings will be held at the Taconite Community Center, 
26 Haynes Street, Taconite, Minnesota, on Tuesday, November 27, 2007, 
beginning at 7 p.m., and at Hoyt Lakes Arena, 106 Kennedy Memorial 
Drive, Hoyt Lakes, Minnesota, on Wednesday, November 28, 2007, 
beginning at 7 p.m. An informational session will be held at each 
location from 4 p.m. to 7 p.m. preceding each meeting on the dates 
above. See the SUPPLEMENTARY INFORMATION section for details on the 
meeting process.

ADDRESSES: Requests for information about this draft EIS, or to receive 
a copy of the draft EIS, should be directed to: Mr. Richard A. Hargis, 
Jr., NEPA Document Manager, M/S 922-178C, U.S. Department of Energy, 
National Energy Technology Laboratory, P.O. Box 10940, Pittsburgh, PA 
15236-0940. Requests may also be submitted by telephone: 412-386-6065; 
toll free number: 888-322-7436 ext. 6065; fax: 412-386-4604; or 
electronic mail: [email protected].
    The draft EIS will be available at: http://www.eh.doe.gov/nepa/. 
Copies of the draft EIS are also available for review at the locations 
listed in the SUPPLEMENTARY INFORMATION section of this Notice. Written 
comments on the draft EIS can be submitted by mail, fax, or electronic 
mail to Mr. Richard A. Hargis, Jr., as indicated above. Oral comments 
on the draft EIS will be accepted only during the public hearings 
scheduled for the dates and locations provided in the DATES section of 
this Notice.

FOR FURTHER INFORMATION, CONTACT: For further information regarding the 
proposed project or the draft EIS, please contact Mr. Richard A. 
Hargis, Jr., (see ADDRESSES). For general information on the DOE NEPA 
process, please contact: Ms. Carol M. Borgstrom, Director, Office of 
NEPA Policy and Compliance (GC-20), U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC 20585-0103; Telephone: 202-
586-4600, or leave a toll-free message at: 800-472-2756.

SUPPLEMENTARY INFORMATION:

Description of Alternatives and Scope of the EIS

    DOE's Proposed Action is to provide a total of $36 million in co-
funding, through a cooperative agreement with Excelsior under the CCPI 
Program, for the design and one-year operational demonstration testing 
period for Phase I of the proposed two-phased Mesaba Energy Project. 
The first phase would be a nominal 606 megawatt electricity (MWe) IGCC 
power plant with an estimated cost of $2.16 billion. Phase II, which 
would be an identical, co-located 606 MWe plant, would be privately 
financed and not involve co-funding by DOE. The project would 
demonstrate the commercial-readiness of the Conoco-Phillips E-Gas 
TM gasification technology, including advanced gasification 
and air separation systems, feedstock flexibility, improved

[[Page 63170]]

environmental performance, and improved thermal efficiency. Although 
DOE's proposed action would be applicable to Phase I only, the draft 
EIS considers the combined impacts of both phases as connected actions.
    DOE prepared this draft EIS in accordance with the National 
Environmental Policy Act, of 1969 (NEPA) (42 U.S.C. 4321 et seq.), the 
Council on Environmental Quality regulations that implement the 
procedural provisions of NEPA (40 CFR parts 1500-1508), and the DOE 
procedures implementing NEPA (10 CFR part 1021). Because the proposed 
facility is considered a Large Electric Power Generating Plant, the 
Project is subject to the Minnesota Power Plant Siting Act, which 
requires the preparation of a state-equivalent EIS. The EIS 
requirements under NEPA and the Act are substantially similar, and DOE 
has prepared this draft EIS in cooperation with the Minnesota 
Department of Commerce to fulfill the requirements of both laws. 
Federal cooperating agencies for the EIS include the U.S. Army Corps of 
Engineers, St. Paul District, and the U.S. Department of Agriculture, 
Forest Service, Superior National Forest, Laurentian District. Because 
the proposed Project may affect floodplains and wetlands in northern 
Minnesota, the draft EIS includes a floodplain and wetlands assessment 
in accordance with DOE regulations for Compliance with Floodplain and 
Wetlands Environmental Review Requirements (10 CFR part 1022).
    DOE analyzed two main alternatives in the draft EIS--the Proposed 
Action (including two alternative sites for the project) and the No 
Action Alternative. Under the Proposed Action, DOE would provide cost-
shared funding to Excelsior for the design and one-year demonstration 
of a coal-based, IGCC electric generating facility to be located in the 
Taconite Tax Relief Area as defined in Minnesota Statutes Section 
273.134. DOE has entered into a cooperative agreement with Excelsior, 
which was a successful applicant in Round 2 of the CCPI program, to 
demonstrate the Project. Excelsior is an independent energy development 
company based in Minnetonka, Minnesota, that ultimately would be 
responsible for the siting, design, construction, demonstration, and 
operation of the Project and related components. Until the NEPA process 
is complete, no funds would be provided for project activities that 
could either have an adverse impact on the environment or limit the 
choice of reasonable alternatives available to DOE. Pursuant to the 
Energy Policy Act of 2005, DOE may also provide a loan guarantee for a 
portion of the private-sector financing for the Project; however, this 
loan guarantee is not part of DOE's proposed action.
    The Minnesota Power Plant Siting Act is intended to ensure that 
power plants and high voltage transmission lines are routed in an 
orderly manner compatible with environmental preservation and the 
efficient use of resources. The Minnesota Public Utilities Commission 
oversees permitting in accordance with the Act. State rules established 
for the Act require the applicant for a site permit to identify at 
least two sites for the power plant--a preferred site and an 
alternative site. Excelsior identified the West Range site (Taconite, 
Itasca County, Minnesota) as its preferred site and the East Range site 
(Hoyt Lakes, St. Louis County, Minnesota) as its alternative site. 
Although DOE has not participated in the identification or selection of 
sites, the potential environmental impacts of locating the project at 
either site are evaluated in the draft EIS. The final decision on which 
site would be permitted, if any, will be made by the Minnesota Public 
Utilities Commission in accordance with the Minnesota Power Plant 
Siting Act.
    For the No Action Alternative, DOE would not provide cost-shared 
funding for the Project beyond that required to complete the NEPA 
process. In this case, the remaining funding withheld from the Project 
may be made available for other current or future CCPI projects.
    Without DOE funding, it is not likely that the Mesaba Energy 
Project would be built, although it is possible that Excelsior could 
still elect to construct and operate the proposed power plant provided 
that it could replace the Federal financing component and obtain the 
required permits from state and Federal agencies. However, without DOE 
participation, it is possible that the proposed project would be 
canceled. Therefore, for purposes of analysis in the draft EIS, the No 
Action Alternative is assumed to be equivalent to a ``No Build'' 
Alternative, meaning that environmental conditions would remain in the 
status quo (no new construction, resource utilization, emissions, 
discharges, or wastes generated). The No Action Alternative would not 
contribute to the goal of the CCPI program, which is to accelerate 
commercial deployment of advanced technologies that provide the United 
States with clean, reliable, and affordable energy.
    The draft EIS analyzes the environmental consequences that may 
result from the proposed action at each of the two alternative sites, 
as well as the no action alternative. Potential impacts identified 
during the scoping process and analyzed in the draft EIS relate to the 
following: aesthetics; air quality and climate; geology and soils; 
groundwater and surface water resources; floodplains and wetlands; 
biological resources; cultural resources; land use; socioeconomics; 
environmental justice; utility systems; community services; 
transportation and traffic; materials and waste management; human 
health and safety; and noise.

Availability of the Draft EIS

    Copies of the draft EIS have been distributed to Members of 
Congress; Federal, Native American tribal government, state, and local 
officials; and agencies, organizations and individuals who may be 
interested or affected. The draft EIS will be available on the Internet 
at: http://www.eh.doe.gov/nepa/. Copies of the draft EIS are available 
for public review at the Bovey Public Library, 402 2nd Street, Bovey, 
Minnesota; City of Taconite Community Center, 28 Haynes Street, 
Taconite, Minnesota; Grand Rapids Public Library, 140 NE., 2nd Street 
Grand Rapids, Minnesota; the Hibbing Public Library, 2020 East 5th 
Avenue, Hibbing, Minnesota; and the Hoyt Lakes Public Library, 206 
Kennedy Memorial Drive, Hoyt Lakes, Minnesota. Additional copies also 
can be requested (see ADDRESSES).

Public Meetings

    DOE will conduct a public hearing near each of the two alternative 
sites, in conjunction with the Minnesota Department of Commerce, to 
obtain comments on the draft EIS. Requests to speak at the public 
hearings can be made by contacting Mr. Richard A. Hargis, Jr., as 
indicated in the ADDRESSES section above. Requests to speak that have 
not been submitted prior to the hearing will be accepted in the order 
in which they are received at the hearing. Speakers are encouraged to 
provide a written version of their oral comments for the record. Each 
speaker will be allowed approximately five minutes to present comments. 
Those speakers who want more than five minutes should indicate the 
length of time desired in their request. Depending on the number of 
speakers, DOE may need to limit all speakers to five minutes initially 
and provide additional opportunities as time permits. Comments will be 
recorded by a court reporter and will become part of the public hearing 
record. Oral and written comments will be given equal consideration.

[[Page 63171]]

    Each hearing will begin with an informational session at 
approximately 4 p.m. DOE will then begin each meeting's formal session 
at 7 p.m. with an overview of the project, followed by oral statements 
by the scheduled speakers. Speakers may be asked questions to help 
ensure that DOE fully understands the comments. A presiding officer 
will establish the order of speakers and provide any additional 
procedures necessary to conduct the meetings.
    All meetings will be accessible to people with disabilities. Any 
individual with a disability requiring special assistance, such as sign 
language interpreter, or a translator, should contact Mr. Richard A. 
Hargis, Jr., the NEPA Document Manager, (see ADDRESSES) at least 48 
hours in advance of the meeting so that arrangements can be made.

Meeting Schedule

West Range Site--Taconite

    Date: Tuesday, November 27, 2007.
    Place: Taconite Community Center, 26 Haynes Street, Taconite, 
Minnesota.

East Range Site--Hoyt Lakes

    Date: Wednesday, November 28, 2007.
    Place: Hoyt Lakes Arena, 106 Kennedy Memorial Drive, Hoyt Lakes, 
Minnesota.

    Issued in Washington, DC, on November 2, 2007.
Mark J. Matarrese,
Director, Office of Environment, Security, Safety and Health, Office of 
Fossil Energy.
[FR Doc. E7-21959 Filed 11-7-07; 8:45 am]
BILLING CODE 6450-01-P