[Federal Register: February 18, 2009 (Volume 74, Number 31)]
[Notices]
[Page 7596-7598]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18fe09-37]
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DEPARTMENT OF ENERGY
Notice of Intent To Prepare an Environmental Impact Statement for
a Proposed Federal Loan Guarantee To Support Construction of the TX
Energy, LLC, Industrial Gasification Facility Near Beaumont, TX
AGENCY: Department of Energy.
ACTION: Notice of Intent to Prepare an Environmental Impact Statement
and Conduct a Public Scoping Meeting, and Notice of Proposed Floodplain
and Wetland 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), the Council on Environmental
Quality (CEQ) NEPA regulations (40 CFR Parts 1500-1508), and the DOE
NEPA implementing procedures (10 CFR Part 1021) to assess the potential
environmental impacts for its proposed action of issuing a Federal loan
guarantee to TX Energy, LLC (TXE) (DOE/EIS-0412). TXE submitted an
application to DOE under the Federal loan guarantee program pursuant to
the Energy Policy Act of 2005 (EPAct 2005) to support construction of
the TXE Industrial Gasification Facility near Beaumont, Texas (the
Facility).\1\
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\1\ The amount requested for the loan guarantee is not being
disclosed at this time because it is business sensitive. Moreover,
should DOE approve a loan guarantee, the amount may differ from the
original request.
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TXE is a subsidiary of Eastman Chemical Company (Eastman) and
proposes to develop the Facility on a 417-acre parcel of land. The
Facility would utilize gasification technology with petroleum coke
(petcoke) as the feedstock to produce synthesis gas (a mixture of
carbon monoxide (CO) and hydrogen (H2) commonly referred to
as syngas) and molten sulfur. The majority of the carbon dioxide
(CO2) produced from clean-up of the raw syngas would be
captured and transferred from the Facility via a newly constructed
pipeline spur (no longer than 2 miles) to a new pipeline for use in
enhanced oil recovery (EOR); CO2 not captured would be
vented. A portion of the syngas would be processed further to produce
pure H2, the majority of which would be sold via a newly
constructed pipeline. The balance of the syngas and a portion of the
H2 would be piped to a nearby, existing plant via two
separate newly constructed 1.5-mile pipelines for processing to
methanol and ammonia that would be sold or used by Eastman, the plant
owner.
The EIS will evaluate the potential impacts of TXE's proposed
project and the range of reasonable alternatives. The purpose of this
Notice of Intent is to inform the public about DOE's proposed action;
invite public participation in the EIS process; announce plans for a
public scoping meeting; and solicit public comments for consideration
in establishing the scope and content of the EIS. DOE invites those
agencies with jurisdiction by law or special expertise to be
cooperating agencies.
The site of the proposed Facility contains floodplains and
wetlands, and the footprint of the TXE proposed Facility would affect
approximately 52 acres of wetlands and potentially some floodplains.
Therefore, DOE hereby gives notice that it will include in the EIS a
floodplain and wetland assessment prepared in accordance with the DOE
Regulations for Compliance with Floodplain and Wetland Environmental
Review Requirements (10 CFR Part 1022).
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 postmarked, e-
mailed, or faxed by March 20, 2009 to ensure consideration. Late
comments will be considered to the extent practicable. In addition to
receiving written comments (see ADDRESSES below), DOE will conduct a
public scoping meeting in which government agencies, private-sector
organizations, and the general public are invited to provide comments
or suggestions with regard to the alternatives and potential impacts to
be considered in the EIS. The public scoping meeting will be held from
5 p.m. to 9 p.m. on March 5, 2009, at the Beaumont Civic Center
Complex, 701 Main St., Beaumont, Texas (see Public Scoping Process
below).
ADDRESSES: Written comments on the proposed EIS scope and questions
regarding the public scoping meeting should be addressed to: Sharon R.
Thomas, Loan Guarantee Program Office (CF-1.3), U.S. Department of
Energy, 1000 Independence Avenue, SW., Washington, DC 20585. Electronic
submission of comments is encouraged due to processing time required
for regular mail. Comments can be submitted electronically to Ms.
Thomas by fax: 202-586-4052; or electronic mail:
Sharon.R.Thomas@hq.doe.gov.
FOR FURTHER INFORMATION CONTACT: To obtain additional information about
the TXE project or this EIS or to receive a copy of the draft EIS when
it is issued, contact Ms. Thomas by telephone: 202-586-5335; toll-free
number: 1-800-832-0885; or electronic mail: Sharon.R.Thomas@hq.doe.gov.
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; telephone: 202-586-4600; facsimile: 202-586-7031;
electronic mail: askNEPA@hq.doe.gov; or leave a toll-free message at 1-
800-472-2756.
SUPPLEMENTARY INFORMATION:
[[Page 7597]]
Background
EPAct 2005 established a Federal loan guarantee program for
eligible energy projects that employ innovative technologies. Title
XVII of EPAct 2005 authorizes the Secretary of Energy to make loan
guarantees for a variety of types of projects, including those 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.'' The two principal
goals of the loan guarantee program are to encourage commercial use in
the United States of new or significantly improved energy-related
technologies and to achieve substantial environmental benefits.
Purpose and Need for Agency Action
TXE submitted an application to DOE for a loan guarantee on
November 18, 2008, to support construction of the Facility. The purpose
and need for agency action is to comply with DOE's mandate under EPAct
2005 by identifying eligible projects that meet the goals of the Act
and therefore to determine whether to issue a loan guarantee to TXE to
support construction of the proposed Facility.
Proposed Action
DOE's proposed action is to issue a loan guarantee to TXE to
support construction of the TXE proposed Facility. The Facility would
utilize gasification technology with petcoke as the feedstock to
produce syngas (a mixture of CO and H2) and molten sulfur.
The Facility is being designed to handle the following inputs: 2.4
million tons of petcoke per year; 120,000 tons of fluxant (a blend of
sand and stone) per year; 2.4 million tons of oxygen per year; and 7
billion gallons of water per year. Although not proposed by TXE, coal
could also be used as an alternate feedstock. The oxygen required for
gasification would be provided by air separation units (ASUs) adjacent
to the Facility and owned by another entity. DOE plans to analyze
construction and operation of the ASUs in the EIS as a connected
action.
The Facility is being designed to produce 150 billion standard
cubic feet of syngas per year. Molten sulfur byproduct (150,000 tons
per year) would be sold. A portion of the syngas would be used to
produce 261 million standard cubic feet of H2 per year. The
majority of the H2 would be sold for use in the petroleum
refining industry and transferred via a newly constructed pipeline.
Cleaning of the raw syngas would be done using Rectisol[supreg] Acid
Gas Removal technology, licensed from Lurgi, and would produce 5.4
million tons of CO2 per year. TXE anticipates that less than
12 percent of the CO2 produced annually under normal
operations would be vented and not captured. The captured
CO2 would be transferred via a newly constructed pipeline
spur (no longer than 2 miles) to a new pipeline for use in EOR.
The balance of the syngas and a portion of the H2 would
be piped via two newly constructed, separate 1.5-mile pipelines to an
existing plant owned by Eastman for processing to methanol and ammonia,
which would be sold or used by Eastman. DOE plans to analyze the
modification and operation of this plant, which is adjacent to the
site, as a connected action. The Facility would also include an onsite
wastewater treatment plant. Solid waste (slag) from the process would
be either sold as a commercial product (e.g., an aggregate substitute)
or transported by truck for disposal at a non-hazardous, solid waste
landfill. The construction work force would peak at a range of 2000 to
2500 workers. The Facility would be operated and maintained by a staff
of approximately 250 employees.
The site of the proposed Facility consists of a 417-acre parcel of
land located at 6275 Highway 347 in Jefferson County, Texas, adjacent
to the southeast city limits of Beaumont. Construction laydown and
parking areas are estimated to use approximately 150 acres. This
includes 100 acres leased from the owner of the adjacent facility to
the south and an additional 50 acres of land located at and adjacent to
the existing Eastman plant.
The site includes a combination of previously developed and
undeveloped parcels and is bound by transportation land use (Ohio
Street, TX-347W, U.S. 69/287/97, and Martin Luther King Jr. Parkway (US
380)) to the west and southwest and the Neches River to the east and
northeast. The Neches River forms the eastern site boundary. The site
is topographically flat and consists primarily of urban land cover
resulting from historical industrial land uses. Land use around the
perimeter of the site consists of early-successional and invasive
herbaceous, scrub shrub, and tree species; wetland complexes; and open
water habitat associated with the Neches River. The vicinity of the
subject property consists of industrial, bulk storage, agricultural,
commercial, and residential uses. The region is characterized by land
uses traditionally associated with industrial chemical production
(e.g., petroleum products, methanol, sulfur products), barge traffic,
ports, and associated off-loading facilities.
The site of the proposed Facility contains floodplains and
wetlands, and the footprint of the TXE proposed Facility would affect
approximately 52 acres of wetlands and potentially some floodplains.
These wetlands include a combination of emergent marsh, scrub shrub,
and bottomland hardwood. The eastern and northeastern portions of the
site (the areas nearest the Neches River) are located within the 100-
year floodplain. DOE will prepare a floodplain and wetland assessment
in accordance with its regulations at 10 CFR Part 1022 and include the
assessment in the EIS.
Alternatives
In determining the range of reasonable alternatives to be
considered in the EIS for the proposed TXE Facility, DOE identified the
reasonable alternatives that would satisfy the underlying purpose and
need for agency action. DOE currently plans to analyze in detail the
project as proposed by TXE; subalternatives for coal as a feedstock,
solid waste disposal, and CO2 disposition; and the no action
alternative. DOE will also analyze mitigation measures as appropriate.
DOE will describe TXE's site selection process in the EIS; however,
DOE does not plan to analyze in detail alternative sites considered by
TXE in its site selection process. Key factors considered by TXE in
selecting the site included the region's strong petroleum refining
base, which provides a source for petcoke, a market for H2,
and near-term EOR opportunities; the nearby plant that would use the
syngas product for the production of methanol and ammonia; and the
proximity to infrastructure and surface water. On this basis, DOE
believes at this time that there are no other reasonable siting
alternatives.
Under the no action alternative, DOE would not provide the loan
guarantee for the TXE project. This option 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.''
Preliminary Identification of Environmental Issues
The following environmental resource areas have been tentatively
identified for consideration in the EIS. This list is neither intended
to be all-inclusive nor
[[Page 7598]]
a predetermined set of potential environmental impacts. DOE invites
comments on whether other resource areas or potential issues should be
considered in the EIS:
Air quality
Greenhouse gas emissions and climate change
Energy use and production
Water resources, including groundwater and surface waters
Wetlands and floodplains
Geological resources
Ecological resources, including threatened and endangered
species and species of special concern
Cultural resources, including historic structures and
properties; sites of religious and cultural significance to tribes; and
archaeological resources
Land use
Visual resources and aesthetics
Transportation and traffic
Noise and vibration
Hazardous materials and solid waste management
Human health and safety
Accidents and terrorism
Socioeconomics, including impacts to community services
Environmental justice
Public Scoping Process
To ensure that all issues related to DOE's proposed action are
addressed, DOE seeks public input to define the scope of the EIS. The
public scoping period will begin with publication of the NOI and end on
March 20, 2009. Interested government agencies, private-sector
organizations, and the general public are encouraged to submit comments
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 to assist DOE in identifying significant issues.
Comments must be postmarked, e-mailed, or faxed by March 20, 2009 to
ensure consideration. (See ADDRESSES). Late comments will be considered
to the extent practicable. DOE invites those agencies with jurisdiction
by law or special expertise to be cooperating agencies.
A public scoping meeting will be held on March 5, 2009, from 5 p.m.
to 9 p.m. at the Beaumont Civic Center Complex, 701 Main St, Beaumont,
Texas. Members of the public and representatives of groups and Federal,
state, local, and tribal agencies are invited to attend. An informal
session at this location will begin at 5 p.m., followed by the
opportunity to present oral comments at 7 p.m. Displays and other forms
of information about the proposed agency action, the EIS process, and
the TXE proposed Facility will be available, with DOE personnel
available for discussions with attendees. DOE requests that anyone who
wishes to present oral comments at the meeting contact Ms. Sharon R.
Thomas by phone, fax, or e-mail (see ADDRESSES). Individuals who do not
make advance arrangements to speak may register at the meeting.
Speakers who need more than five minutes should indicate the length of
time desired in their request. DOE may need to limit speakers to five
minutes initially, but will provide additional opportunities as time
permits. Written comments regarding the scoping process can also be
submitted to DOE officials at the scoping meeting.
Issued in Washington, DC, on February 12, 2009.
Steve Isakowitz,
Chief Financial Officer, Office of the Chief Financial Officer.
[FR Doc. E9-3411 Filed 2-17-09; 8:45 am]
BILLING CODE 6450-01-P