[Federal Register Volume 73, Number 184 (Monday, September 22, 2008)]
[Notices]
[Pages 54569-54573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22100]
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DEPARTMENT OF ENERGY
Notice of Intent to Prepare an Environmental Impact Statement and
Notice of Proposed Floodplain and Wetlands Involvement for the Kemper
County IGCC Project, Kemper County, MS
AGENCY: Department of Energy.
ACTION: Notice of Intent and Notice of Proposed Floodplain and Wetlands
Involvement.
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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to
prepare an Environmental Impact Statement (EIS) pursuant to the
National Environmental Policy Act (NEPA) of 1969, as amended (42 U.S.C.
4321 et seq.), the Council on Environmental Quality NEPA regulations
(40 CFR Parts 1500-1508), and the DOE NEPA regulations (10 CFR Part
1021), to assess the potential environmental impacts associated with
the construction and operation of a project proposed by Southern
Company, through its affiliate Mississippi Power Company (Mississippi
Power), which has been selected by DOE for consideration for cost-
shared funding under the Clean Coal Power Initiative (CCPI) program. In
addition, the U.S. Army Corps of Engineers will be a cooperating agency
in the preparation of the EIS, and the
[[Page 54570]]
U.S. Environmental Protection Agency Region IV has expressed an
interest in also participating in the preparation of the EIS as a
cooperating agency. The proposed project would demonstrate Integrated
Gasification Combined Cycle (IGCC) technology using lignite coal as a
feedstock for a new electrical generating plant at a site in Kemper
County, Mississippi. The facilities would convert lignite coal into
synthesis gas for generating electricity while minimizing sulfur
dioxide, oxides of nitrogen, mercury, and particulate emissions as
compared to conventional lignite-fired power plants.
The EIS will help DOE decide whether to provide a total of $294
million in cost-shared funding (15% or less of the total project cost,
which is currently projected to be greater than $2 billion) for the
proposed project under the CCPI program. In addition, the EIS would
help DOE decide, pending receipt of an application from Mississippi
Power, whether to provide a loan guarantee pursuant to the Energy
Policy Act of 2005. Accordingly, the EIS will evaluate the potential
impacts of the proposed project, connected actions, and reasonable
alternatives. The purpose of this Notice of Intent is to inform the
public about the proposed project; invite public participation in the
EIS process; announce the plans for a public scoping meeting; solicit
public comments for consideration in establishing the scope and content
of the EIS; and provide notice of proposed floodplain and wetlands
involvement.
DATES: To ensure that all of the issues related to this proposal are
addressed, DOE invites comments on the proposed scope and content of
the EIS from all interested parties. Comments must be received by
October 23, 2008, to ensure consideration. Late comments will be
considered to the extent practicable. In addition to receiving comments
in writing and by telephone, DOE will conduct a public scoping meeting
in which agencies, organizations, and members of the general public are
invited to present oral comments or suggestions with regard to the
range of actions, alternatives, and potential impacts to be considered
in the EIS. The scoping meeting will be held at Kemper County High
School, 429 Philadelphia Road, DeKalb, Mississippi, at 7 p.m. on
October 14, 2008. The public is also invited to learn more about the
proposed project at an informal session at this location beginning at 5
p.m. Displays and other forms of information about the proposed agency
action and the demonstration plant will be available, and DOE personnel
will be present at the informal session to discuss the proposed project
and the EIS process.
ADDRESSES: Written comments on the proposed EIS scope and requests to
participate in the public scoping meeting should be addressed to: Mr.
Richard A. Hargis, U.S. Department of Energy, National Energy
Technology Laboratory, 626 Cochrans Mill Road, P.O. Box 10940,
Pittsburgh, PA 15236-0940. Individuals who would like to orally or
electronically provide comments should contact Mr. Hargis directly by
telephone: 412-386-6065; toll-free number: 1-888-322-7436; fax: 412-
386-4604; or electronic mail: [email protected].
FOR FURTHER INFORMATION CONTACT: For information about this project or
to receive a copy of the draft EIS when it is issued, contact Mr.
Richard A. Hargis as described above. For general information on the
DOE NEPA process, 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; fax: 202-586-7031; or leave a toll-free message at 1-800-472-
2756.
SUPPLEMENTARY INFORMATION:
Background and Need for Agency Action: Since the early 1970s, DOE
and its predecessor agencies have pursued research and development
programs that include long-term, technically complex activities that
support the development of innovative concepts for a wide variety of
coal technologies through the proof-of-concept stage. However, the
availability of a technology at the proof-of-concept stage is not
sufficient to ensure its continued development and subsequent
commercialization. Before any technology can be considered seriously
for commercialization, it must be demonstrated at a sufficient scale to
prove its reliability and to show economically competitive performance.
The financial risk associated with such large-scale demonstration is,
in general, too high for the private sector to assume in the absence of
strong incentives.
The CCPI program was established in 2002 as a government/industry
partnership to implement the President's National Energy Policy
recommendation to increase investment in clean coal technology. The
goal of the CCPI program is to accelerate commercial deployment of
advanced coal technologies that provide the United States with clean,
reliable, and affordable energy. Through cooperative agreements
established with industry, the CCPI program plans to advance selected
coal technologies to commercialization.
The Energy Policy Act of 2005 established a Federal loan guarantee
program for eligible energy projects that employ innovative
technologies. Title XVII of the Energy Policy Act of 2005 authorizes
the Secretary of Energy to make loan guarantees for a variety of types
of projects, including projects that ``avoid, reduce, or sequester air
pollutants or anthropogenic emissions of greenhouse gases; and employ
new or significantly improved technologies as compared to commercial
technologies in service in the United States at the time the guarantee
is issued.'' Section 1703(a)(1), 42 U.S.C. 16513. Mississippi Power has
submitted a pre-application to DOE and was invited to submit a formal
application for a loan guarantee.
Proposed Action: The proposed action for DOE is to provide a total
of $294 million in cost-shared funding under CCPI for the proposed
project. DOE has already provided a portion of the total funding ($24.4
million) to Southern Company for cost-sharing for preliminary design
and project definition, prior to completion of the NEPA process. In
addition, DOE may also provide a loan guarantee pursuant to section
1703 of the Energy Policy Act of 2005.
The proposed IGCC electricity generating facility would be
constructed on an undeveloped site of approximately 1,650 acres in
Kemper County, Mississippi. The site is located in east-central
Mississippi near the town of Liberty, approximately 20 miles north of
the city of Meridian and consists principally of uplands and some
wetlands. The uplands are mostly of managed pine timberlands, large
portions of which have been clear-cut, while the wetlands are mostly
mixed hardwood forest. Significant portions of the wetlands have been
previously altered by human influences, including clear-cutting and
conversion to grazing areas. Siltation from upland silvaculture has
also previously impacted some wetlands. The generally undisturbed
wetlands on the site have a canopy of red maple, yellow poplar and
sweet gum. The site's topography is characterized by undulating sand
and clay hills, and elevations vary from 400 feet above sea level along
an unnamed tributary to Chickasawhay Creek in the site's southwestern
corner to 500 feet above sea level in the site's northeastern corner.
The IGCC facilities would occupy approximately 150 acres (or less
than 10 percent) of the site. The rest of the site would remain
undeveloped, with the
[[Page 54571]]
exception of new transmission lines, a natural gas supply pipeline, a
carbon dioxide (CO2) pipeline and site access and fuel
handling infrastructure.
The proposed facilities would demonstrate IGCC technology in a new
power plant consisting of two lignite coal gasifiers with gas cleanup
systems, two gas combustion turbines (CTs), two heat recovery steam
generators (HRSG), a single steam turbine, and associated support
facilities. Onsite non-potable deep wells would provide approximately 6
million gallons per day of groundwater required for cooling water
makeup, steam cycle makeup, and other processes. The IGCC facility
would produce synthesis gas from lignite coal and use this gas to drive
the two CTs. Hot exhaust gas from the gas turbines would generate steam
from water in the HRSGs to drive the steam turbine; all three turbines
would generate electricity. The gas turbines would be capable of
operating on either natural gas or synthesis gas. At full capacity, the
two new lignite coal gasifiers would be expected to use about 12,000
tons of lignite coal per day to produce synthesis gas. Combined, the
three turbines would generate approximately 550 MW of electricity. This
combined-cycle approach of using gas turbines and a steam turbine in
tandem increases the amount of electricity that can be generated from a
given amount of lignite coal.
The proposed project would minimize sulfur dioxide, oxides of
nitrogen, mercury, and particulate emissions as compared to
conventional lignite-fired power plants. The project would be expected
to remove in excess of 99% of the sulfur dioxide produced in the IGCC
process. The removal of nearly all of the fuel-bound nitrogen from the
synthesis gas prior to combustion in the gas turbines would result in
oxides of nitrogen emissions of less than 0.07 pounds per million Btu.
At least 90% of the mercury in the lignite would be removed. Over 99%
of the particulates in the synthesis gas would be removed using high-
temperature, high-pressure filtration. In addition, the facility is
planned for carbon capture systems sufficient to remove approximately
25% of CO2. The CO2 would be piped off-site for
geologic sequestration via enhanced oil recovery in Jasper County,
approximately 60 miles southwest of the project location. Ash generated
by the gasifiers would be stored onsite or made available for
appropriate recycling alternatives.
In addition to the gasifiers and turbines, new equipment for the
project would include stacks, onsite deep groundwater supply wells,
mechanical-draft cooling towers, synthesis gas cleanup facilities, and
particulate filtration systems. The height of the proposed main stacks
would be approximately 325 feet above ground. The project would also
require systems for coal handling and storage, as well as plant roads,
administration buildings, water and wastewater treatment systems, and
ash handling and management facilities. Connected actions would include
a natural gas supply pipeline, planned CO2 capture systems
and CO2 pipeline, electric transmission facilities, and a
surface lignite mine.
The overall objective of the project is to demonstrate the
feasibility of this selected IGCC technology at a size that would be
attractive to utilities for commercial operation. The lignite coal
gasifier is based on a technology that Southern Company, KBR Inc., and
DOE have been developing since 1996 at a research facility near
Wilsonville, Alabama. The technology is unique among coal gasification
technologies in that it is cost-effective when using low-rank coal,
including lignite, as well as coals with high moisture or high ash
content. These coals comprise about half the proven U.S. and worldwide
reserves.
Project activities would include engineering and design,
permitting, equipment procurement, construction, startup, operations,
and demonstration of the commercial feasibility of the technology. If
DOE decides to implement the proposed action upon completing the EIS
and issuing a Record of Decision, the approximately 3-year construction
period would be expected to commence in 2010, and operation of the
plant would be expected to begin in 2013. Following a 4.5-year
demonstration period, the facility would continue with commercial
operations immediately afterward.
Connected Actions: While the proposed project under the cooperative
agreement would consist of the gasifiers, synthesis gas cleanup
systems, two CT/HRSGs, a steam turbine, and supporting facilities and
infrastructure, the EIS will also address the construction and
operation of the neighboring surface lignite coal mine, associated
transmission lines (and substations), CO2 capture systems
and CO2 pipeline, and a natural gas pipeline, as connected
actions.
The mine would be operated by North American Coal Corporation and
would provide the primary source of fuel for the project; the secondary
source of fuel would be natural gas. Mining would result in two types
of landscape disturbance during the 40-year life of mine area. Actual
mining--the uncovering and removal of lignite--would disturb
approximately 275 acres per year for about 40 years, or a total of
about 11,000 acres. The mine would use draglines and a truck and shovel
operation to remove the overburden, mine the lignite coal, and reclaim
the site in accordance with a mine plan approved by the Mississippi
Department of Environmental Quality. Actual mining would disturb
uplands and wetlands and require stream diversions. The lignite coal
would be transported by truck and/or overland conveyor. Following
lignite removal, approximately 275 acres per year of mined land would
be restored to approximate the pre-mine land contour and re-vegetated
to a land use consistent with a mine reclamation plan approved by the
Mississippi Department of Environmental Quality.
The second type of landscape disturbance is the associated mining
disturbance that would result from the installation of facilities and
structures supporting the actual mining operation. Facilities would
include an entrance road, office, shop, fuel farm complex, dragline
assembly area, employee and equipment parking areas, and electrical
substations and transmission lines. Support structures would include
temporary reservoirs, ponds, and associated stream diversions to route
rainfall and surface water flows (e.g. streams, drainages, and
tributaries) from undisturbed areas away from or around areas where
actual mining disturbance would occur, and storm water sedimentation
control ponds to retain and treat surface runoff from areas disturbed
by the mining and reclamation operations. As mining advances, those
diversions, ponds and roads that would no longer be needed to support
mining would either be restored to their approximate pre-mine contour
or retained as permanent post-mine structures with appropriate
landowner and regulatory agency approval.
The outer boundary of the mining area would encompass approximately
31,000 acres principally in Kemper County and partially in Lauderdale
County. Within this area, a total of approximately 15,500 acres would
be disturbed and reclaimed over the life of the mine. These 15,500
acres would include approximately 11,000 acres for mining,
approximately 4,000 acres for temporary reservoirs, ponds and stream
diversions, and approximately 500 acres for mining support facilities.
The mine would produce approximately 3.8 million tons of lignite per
year to supply the IGCC project. The mine area has
[[Page 54572]]
similar topographical characteristics as described for the plant site
area above.
The proposed plant site is about 20 miles north of the existing
Mississippi Power transmission infrastructure in the Meridian,
Mississippi, metro area. New transmission facilities, including
appropriate lines and substations, would be constructed to interconnect
the plant to the existing grid and to provide firm transmission service
for the plant's output. The new transmission lines would include
construction of approximately 57 miles of 230 kilovolt (kV)
transmission and approximately nine miles of 115 kV transmission.
Rights-of-way (ROW) up to 125 feet would be required for these new
transmission lines. The IGCC plant would also require approximately 27
miles of existing transmission lines to be upgraded. The new and
upgraded transmission lines would be in Kemper, Lauderdale and Clarke
Counties in Mississippi. An approximately 5-mile natural gas pipeline
extending due east from the proposed facilities and an approximately
60-mile CO2 pipeline would also be built. The CO2
pipeline would extend from the plant through Lauderdale and Clarke
counties and end in Jasper County, connecting to an existing
CO2 pipeline used for enhanced oil recovery. The ROW for
these underground facilities would be up to 75 feet wide for the
CO2 pipeline and 50 feet wide for the natural gas pipeline.
Alternatives: NEPA requires that agencies evaluate the reasonable
alternatives to the proposed action in an EIS. The range of reasonable
alternatives encompasses those alternatives that would satisfy the
underlying purpose and need for agency action. The CCPI program was
established to help implement the President's National Energy Policy
recommendation to increase investment in clean coal technology, thus
improving the reliability and affordability of domestic energy supplies
while simultaneously protecting the environment. The CCPI program was
structured to achieve National Energy Policy goals by promoting private
sector initiatives to invest in demonstrations of advanced coal
technologies that could be widely deployed commercially. Rather than
being responsible for the siting, construction, and operation of the
projects, DOE's role is limited to evaluating applications by project
sponsors to determine if they meet the CCPI program goals. The same is
true of DOE's role with regard to applications under the loan guarantee
program.
In determining the range of reasonable alternatives to be
considered in the EIS for the proposed Kemper County IGCC Project, DOE
identified the reasonable alternatives that would satisfy the
underlying purpose and need for agency action. Because of DOE's limited
role in deciding whether to provide cost-shared funding, and possibly a
loan guarantee for the project, DOE currently plans to analyze in
detail the project as proposed by Mississippi Power (proposed action),
the proposed action as modified by conditions (e.g., mitigation), and
the no action alternative.
In analyzing the proposed action, DOE will analyze implementing
options for the location of the plant footprint within the site
boundaries, the route of linear facilities (transmission lines and
pipelines), options for CO2 sequestration (e.g., saline
aquifers), and other reasonable alternatives that may be suggested
during the public scoping period.
Under the no action alternative, DOE would not provide continued
funding under the cooperative agreement or provide a loan guarantee for
the project. In the absence of DOE funding, Mississippi Power could
reasonably pursue two options. These options will be analyzed under the
no action alternative. First, the gasifiers, synthesis gas cleanup
systems, CT/HRSGs and supporting infrastructure could be built as
proposed without DOE funding; therefore, this option is essentially the
same as the proposed action. The connected actions would remain
unchanged. Second, Mississippi Power could choose not to pursue the
IGCC project. None of the connected actions would likely be built. This
option would not contribute to the goal of the CCPI program, which is
to accelerate commercial deployment of advanced coal technologies that
provide the United States with clean, reliable, and affordable energy.
Similarly, the no-action alternative would not contribute to the
Federal loan guarantee program goals to make loan guarantees for energy
projects that ``avoid, reduce, or sequester air pollutants or
anthropogenic emissions of greenhouse gases; and employ new or
significantly improved technologies.''
Alternatives considered by Mississippi Power in developing the
proposed project will be presented in the EIS. An analysis of
alternative sites has been prepared by Mississippi Power indicating
that the only reasonable site alternative is the Kemper County site
based on location of accessible lignite reserves near Mississippi
Power's service territory, proximity to infrastructure, topography,
including the location of floodplains and wetlands, and available open
space. DOE will describe and consider Mississippi Power's site
selection process in the EIS, however DOE does not plan to analyze in
detail the alternatives sites considered by Mississippi Power, because
DOE agrees with Mississippi Power's conclusion that the sites are not
reasonable alternatives.
Floodplains and Wetlands Involvement: Plans for siting the IGCC
facility on the plant site are such that the IGCC footprint would avoid
to the extent practicable wetlands and floodplains impacts. Final
design for the access roads from the mine to the coal handling
facilities and other ancillary plant facilities is not yet complete,
but may involve impacts to both wetlands and floodplains. Impacts on
wetlands and floodplains would be avoided to the extent practicable and
any unavoidable impacts would be minimized and mitigated appropriately.
Linear facilities include new and upgraded transmission lines,
CO2 pipeline, and natural gas pipeline. Wetlands delineation
surveys are not yet complete; however, it is expected that some wetland
impacts would occur. Construction and operation of the linear
facilities are not expected to impact floodplains. Wetland impacts
would be avoided to the extent practicable and any direct impacts would
be minimized and mitigated appropriately.
As noted above, the lignite mine operations would disturb uplands
and wetlands and will require stream diversions. Wetlands delineation
surveys are not yet complete; however, wetlands and floodplain impacts
are an inevitable part of surface mine operations due to the acreage
required for the operation. Minimization and mitigation of these
impacts and reclamation of disturbed areas would comply with the
Mississippi Department of Environmental Quality approved mine plan.
DOE will prepare a floodplain and wetlands assessment in accordance
with its regulations at 10 CFR Part 1022 and include the assessment in
the EIS.
Preliminary Identification of Environmental Issues: The following
environmental issues have been tentatively identified for analysis in
the EIS. This list, which was developed from preliminary internal
scoping of the proposed technology, permit applications that have been
filed for the proposed project, and information from similar projects,
is neither intended to be all-inclusive nor a predetermined set of
potential impacts, but is presented to facilitate public comment on the
planned scope of the EIS. Additions to or deletions from this list may
occur as
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a result of the public scoping process. The environmental issues
include:
(1) Atmospheric Resources: Potential air quality impacts resulting
from air emissions during construction and operation of the proposed
Kemper County IGCC Project and the connected actions (e.g., effects of
ground-level concentrations of criteria pollutants and trace metals
including mercury, on surrounding areas, including those of special
concern such as Prevention of Significant Deterioration Class I areas).
Potential effects of greenhouse gas emissions.
(2) Water Resources: Potential effects of groundwater withdrawals
and discharges of effluents to surface waters. Potential water
resources impacts resulting from construction and operation of the
connected actions.
(3) Infrastructure and Land Use: Potential effects on existing
infrastructure and land uses resulting from the construction and
operation of the proposed IGCC project and connected action facilities.
For example, potential traffic effects resulting from the proposed
project and potential land use impacts of committing land to power
plant or temporary land use impacts of mining.
(4) Solid Waste: Pollution prevention and waste management issues,
including potential solid waste impacts caused by the generation,
treatment, transport, storage, and management of ash and solid wastes.
(5) Visual: Potential aesthetic impacts associated with new stacks,
mechanical-draft cooling tower, two flare derricks, and other plant
structures included in the IGCC plant and from the connected actions.
(6) Floodplain: Potential impacts (e.g., impeding floodwaters, re-
directing floodwaters, onsite property damage) of siting structures and
infrastructure within a floodplain.
(7) Wetlands: Potential effects to wetlands due to construction and
operation of the power plant and the connected action facilities.
(8) Ecological: Potential onsite and offsite impacts to vegetation,
terrestrial wildlife, aquatic wildlife, threatened and endangered
species (other than broadly distributed and wide ranging species such
as the bald eagle and red-cockaded woodpecker, the threatened Price's
potato bean is the only Federally protected species known to occur in
Kemper County), and ecologically sensitive habitats due to the
construction and operation of the power plant and connected actions.
(9) Safety and Health: Construction-related safety, process safety,
and management of process chemicals and materials.
(10) Construction: Potential impacts associated with noise, traffic
patterns, and construction-related emissions.
(11) Community Impacts: Potential congestion and other impacts to
local traffic patterns; socioeconomic impacts on public services and
infrastructure (e.g., police protection, schools, and utilities); noise
associated with project operation; and environmental justice issues
with respect to the surrounding community.
(12) Cultural and Archaeological Resources: Potential impacts to
such resources associated with construction of the project and
connected actions.
(13) Cumulative Effects: The incremental impacts of the proposed
project (e.g., incremental air emissions affecting ambient air quality)
when added to other past, present, and reasonably foreseeable future
actions, including the connected actions. This analysis will include
potential impacts on global climate change.
The level of analysis of issues analyzed in the EIS will be in
accordance with their level of importance and as determined by the
scoping process. The most detailed analyses are tentatively expected to
focus on potential impacts on air resources, cultural and
archaeological resources, communities (noise and traffic), water
resources, wetlands, and ecological resources.
Public Scoping Process: To ensure that all issues related to this
proposal are properly addressed, DOE will conduct an open process to
define the scope of the EIS. The public scoping period will end on
October 23, 2008. Interested agencies, organizations, and the general
public are encouraged to submit comments or suggestions concerning the
content of the EIS, issues and impacts to be addressed in the EIS, and
alternatives that should be considered. Scoping comments should clearly
describe specific issues or topics that the EIS should address in order
to assist DOE in identifying significant issues. Written, e-mailed,
faxed, or telephoned comments should be communicated by October 23,
2008 (see ADDRESSES).
In addition, DOE will conduct a public scoping meeting at the
Kemper County High School, 429 Philadelphia Road, DeKalb, Mississippi,
at 7 PM on October 14, 2008. The public is also invited to learn more
about the proposed project at an informal session at this location
beginning at 5 PM. DOE requests that anyone who wishes to speak at this
public scoping meeting contact Mr. Richard A. Hargis, either by phone,
fax, computer, or in writing (see ADDRESSES).
Individuals who do not make advance arrangements to speak may
register at the meeting and will be given the opportunity to speak
following previously scheduled speakers. Speakers who need 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
speakers to five-minute presentations initially, but will provide
additional opportunities as time permits. Speakers can also provide
written material to supplement their presentations. Oral and written
comments will be given equal weight.
DOE will begin the formal meeting with an overview of the proposed
Kemper County IGCC Project. DOE will designate a presiding officer to
chair the meeting. The meeting will not be conducted as an evidentiary
hearing, and speakers will not be cross-examined. However, speakers may
be asked questions to ensure that DOE fully understands their comments
or suggestions. The presiding officer will establish the order of
speakers and provide any additional procedures necessary to conduct the
meeting.
Issued in Washington, DC, this 17th day of September 2008.
James A. Slutz,
Assistant Secretary (Acting), Office of Fossil Energy.
[FR Doc. E8-22100 Filed 9-19-08; 8:45 am]
BILLING CODE 6450-01-P