[Federal Register Volume 59, Number 218 (Monday, November 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28042]


[[Page Unknown]]

[Federal Register: November 14, 1994]


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DEPARTMENT OF ENERGY

 

Record of Decision; Pinon Pine Power Project; Tracy Station, 
Nevada

AGENCY: Department of Energy.

ACTION: Record of Decision; Pinon Pine Power Project of the Clean Coal 
Technology Demonstration Program at Tracy Power Station, Reno, Nevada.

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SUMMARY: The Department of Energy (Department) has decided to provide 
approximately $135 million in cost-shared Federal funding as part of 
the Clean Coal Technology Demonstration Program for the design, 
construction, and operation of the Pinon Pine Power Project. It would 
demonstrate integrated gasification combined-cycle technology with hot 
gas clean-up at the Sierra Pacific Power Company's (Sierra Pacific) 
Tracy Power Station near Reno, Nevada. A Mitigation Action Plan will be 
prepared before initiation of any actions for which mitigation measures 
have been committed. With the exception of the dry cooling option, all 
practicable means of avoiding or minimizing environmental harm from the 
preferred alternative have been adopted.
    The Department prepared an Environmental Impact Statement (DOE/EIS-
0215) to assess the environmental impacts associated with the Pinon 
Pine Power Project, a 104 megawatt gross generation demonstration 
project at the Tracy Power Station, 17 miles east of Reno, Nevada. The 
Department's participation in this project is to provide cost-shared 
financial assistance under its Clean Coal Technology Demonstration 
Program to Sierra Pacific for the development of an air-blown, 
fluidized bed, integrated gasification combined-cycle demonstration 
facility. Specifically, the Pinon Pine Power Project will receive cost-
shared (50 percent) financial assistance in the amount of $135 million 
under the terms of the Clean Coal Technology Demonstration Program.
    The Department has considered the proposal to provide cost-shared 
financial assistance for the design, construction, and operation of 
this integrated gasification combined-cycle demonstration project to be 
a major Federal action subject to the provisions of the National 
Environmental Policy Act and corresponding Department regulations (10 
CFR Part 1021) and has determined that the appropriate level of 
National Environmental Policy Act review was an Environmental Impact 
Statement.
    Following careful evaluation of the potential environmental 
impacts, consideration of Clean Coal Technology Demonstration Program 
goals and objectives, review and analysis of public comments, and 
consultation with Federal and state agencies and Indian tribal 
representatives, the Department issued the Final Environmental Impact 
Statement for the Pinon Pine Power Project. A Notice of Availability 
for the Final Environmental Impact Statement for the Pinon Pine Power 
Project was published in the Federal Register (59 FR 49926) on 
September 30, 1994.
    The Department has determined that the congressionally-mandated 
goals and objectives of demonstrating clean coal technologies would be 
achieved through the construction and operation of this project, which 
will demonstrate the integrated performance of coal gasification and 
combined-cycle technologies. The Pinon Pine Power Project, successfully 
demonstrated, will provide a promising technology ready for 
commercialization in the 1990s. The project is expected to generate 
sufficient data from design, construction, and operation to allow 
private industry to further assess the potential for commercial 
application of this technology to new or existing generating 
facilities. No unacceptable adverse impacts are expected from the 
construction or operation of the Pinon Pine Power Project.
    Comments Received: The Department received three comments on the 
Final Environmental Impact Statement. One commenter expressed support 
for the project but noted concerns regarding the handling of coal with 
a high sulfur content, the loss of the safety factor provided by the 
two silo system of coal storage, water sources and usages, air 
emissions, and the revised mitigation section. The Department believes 
that these issues were adequately addressed in the Final Environmental 
Impact Statement.
    The Nevada Department of Transportation recommended that Sierra 
Pacific provide active fog warning signs as a mitigation measure 
because of the potential for increased fog occurrences. In addition, 
they requested that Sierra Pacific install a fog and ice detection 
system. The Department of Energy agrees with these recommendations and 
has incorporated the suggested mitigation measures (installation of a 
system that includes fog and ice detection and active warning 
capabilities) into this Record of Decision.

FOR FURTHER INFORMATION:
For further information on the Department's activities related to this 
project, please contact Dr. Suellen A. Van Octeghem, Environmental 
Project Manager, Morgantown Energy Technology Center, 3610 Collins 
Ferry Road, Morgantown, WV 26507-0880 or call at (304) 285-5443.
    For further information on the Department's National Environmental 
Policy Act process, please contact Carol M. Borgstrom, Director, Office 
of NEPA Oversight [EH-25], Office of Environment, Safety and Health, 
U.S. Department of Energy, 1000 Independence Avenue, S.W., Washington, 
D.C. 20585, or call at either (202) 586-4600 or (800) 472-2756.

Background

    The Department has prepared this Record of Decision pursuant to 
Council on Environmental Quality regulations for implementing the 
provisions of the National Environmental Policy Act (40 CFR Parts 1500-
1508) and Department regulations (10 CFR part 1021). This Record of 
Decision is based on the Department's Final Environmental Impact 
Statement for the Pinon Pine Power Project (DOE/EIS-0215).
    An overall National Environmental Policy Act compliance strategy 
was developed for the Clean Coal Technology Demonstration Program that 
includes consideration of both programmatic and project-specific 
environmental impacts during and after the process of selecting a 
project. This strategy is called tiering (40 CFR 1508.28), and refers 
to the coverage of general matters in a broader Environmental Impact 
Statement (e.g., the Programmatic Environmental Impact Statement for 
the Clean Coal Technology Demonstration Program), with subsequent 
narrower statements or environmental analyses incorporating by 
reference those general discussions found in the broader programmatic 
document. A project-specific document, therefore, concentrates solely 
on the issues specific to that particular project being considered.
    The Department strategry has three principal elements. The first 
element involved preparation of a comprehensive Programmatic 
Environmental Impact Statement for the Clean Coal Technology 
Demonstration Program (DOE/EIS-0146, November 1989) to address the 
potential environmental consequences of widespread commercialization of 
up to 22 successfully demonstrated clean coal technologies by the year 
2010. The Programmatic Environmental Impact Statement evaluated (1) a 
no-action alternative, that assumed the Clean Coal Technology 
Demonstration Program was not continued and that conventional coal-
fired technologies with flue gas desulfurization controls would be used 
for new plants or as replacements for existing plants that are retired 
or refurbished, and (2) a proposed action, that assumed that Clean Coal 
Technology Demonstration Program projects would be selected for funding 
and that successfully demonstrated technologies would undergo 
widespread commercialization by 2010.
    The second element involved preparation of a preselection 
environmental review of project-specific environmental data and 
analyses that the Clean Coal Technology Demonstration Program offerors 
were required to supply to the Department as part of their Clean Coal 
Technology Demonstration Program proposal.
    The third element consists of preparing site-specific National 
Environmental Policy Act documents for each selected project. As part 
of this overall strategy, the Pinon Pine Power Project's Environmental 
Impact Statement draws upon the Programmatic Environmental Impact 
Statement and preselection environmental reviews that analyzed various 
alternatives and scenarios (e.g., alternative technologies and sites).

Project Description

    Sierra Pacific plans to expand its electric generating capacity by 
constructing the Pinon Pine Power Project, an air-blown, fluidized bed, 
integrated gasification combined-cycle facility with hot gas cleanup. 
This project was selected under the Department's Clean Coal Technology 
Demonstration Program to demonstrate the commercial application of 
integrated gasification combined-cycle technology. When compared to 
conventional coal burning techniques, the Pinon Pine Power Project will 
provide several unique features that are designed to increase coal 
utilization efficiency while significantly reducing potential 
environmental releases.
    In the facility, coal, mixed with limestone (for in-bed sulfur 
control), will be partially burned in a gasifier to produce fuel gas. 
The fuel gas will be subsequently cleaned by cyclones and then by hot 
gas cleanup barrier filters to remove particulates and by external-bed 
sorbents to remove residual sulfur, prior to being used in a combined-
cycle combustion turbine to produce electricity. Gasification 
technology can utilize a variety of coals; thus, it allows greater fuel 
flexibility to produce fuel gas. The airblown coal gasification process 
will also allow higher thermal efficiency (comparied with oxygen-blown 
gasification systems) because less auxiliary power consumption is 
associated with an air-blown gasification process. The gasification 
portion of the project will be based on technology developed by KRW 
Energy Systems Inc. and provided by The M.W. Kellogg Company. Hot gas 
cleanup will reduce environmental emissions, while increasing 
efficiency because thermal losses associated with conventional cold gas 
cleanup technologies (such as wet scrubbers) will not occur. The hot 
gas cleanup portion of this project will also be based largely on 
technology provided by KRW Energy Systems Inc. The integrated 
gasification combined-cycle process is at least 10 to 12 percent more 
efficient than a conventional coal-fire power plant.
    Integrated gasification combined-cycle facilities offer several 
additional advantages over conventional coal-based power generation 
technology, including (1) major reductions in sulfur dioxide, oxides of 
nitrogen, carbon dioxide, and dust emissions; (2) decreased coal 
consumption associated with increased generating efficiency; (3) 
modular construction which allows economic increments of capacity to 
match load growth; (4) greater fuel flexibility; (5) reduced land area 
and cooling water requirements; and (6) the potential for design 
standardization due to modular construction, which should reduce 
required engineering effort, construction time, and potential 
permitting complications for construction of future plants.
    The combined-cycle design consists of a combustion turbine/
generator, a heat recovery steam generator, and a steam turbine/
generator. Combined-cycle technology is currently the most efficient 
commercially available method of producing electricity because 
combined-cycle generation reuses the exhaust heat from the combustion 
turbine to produce additional electricity. The combined-cycle portion 
of this project will be an industrial frame-type combustion turbine to 
produce additional electricity. The combined-cycle portion of this 
project will be an industrial frame-type combustion turbine, with a 
technologically advanced firing temperature and cooling system supplied 
by General Electric. The associated steam turbine and generator to be 
used in the Pinon Pine Power Project will be of conventional design.
    Combining these technologies as part of the project will allow the 
Sierra Pacific to couple the high thermal efficiency of air-blown 
integrated gasification combined-cycle design with the low cost of coal 
as a fuel, and will also allow assessment of the long-term 
compatibility, reliability, availability, and maintainability of the 
various technology components. Environmental emissions from the Pinon 
Pine Power Project will be further reduced when compared to 
conventional power plants because the design coal to be used in this 
facility is a low-sulfur western bituminous coal.

Project Status

    Project activities to date include applications for permits and 
approvals necessary to construct and operate the Pinon Pine Power Plant 
at Tracy Station; preparation of designs and specifications necessary 
to apply for these permits and approvals; and preparation, publication, 
and distribution of the Draft and Final Environmental Impact 
Statements.
    In 1991, Sierra Pacific proposed the Pinon Pine Power Project to 
the Public Service Commission of Nevada as part of Sierra Pacific's 
Electric Resource Plan, to meet anticipated load growth. Following 
public hearings, on November 8, 1993, the Commission issued an 
``Interim Order'' granting resource planning approval for the Pinon 
Pine Power Project citing the advantages of flexibility, diversity, 
displacement of fuel, and reliability. Sierra Pacific is currently in 
the process of obtaining other permits and approvals required to 
support this project.

Alternatives

    Congress directed the Department to pursue the goals of the Clean 
Coal Technology Demonstration Program by means of partial funding of 
projects owned and controlled by nonfederal-government sponsors. This 
statutory requirement places the Department in a more limited role than 
if the Federal government were the owner and operator of the project. 
In the latter situation, the Department would be responsible for a 
comprehensive review of reasonable alternatives for the project. 
However, when the Department signs a Cooperative Agreement with an 
industrial partner, the scope of alternatives is necessarily more 
restricted because the Department must focus on alternative ways that 
not only accomplish its purpose but also reflect the industrial 
partner's needs and the functions it plays in the decision making 
process. It is, therefore, appropriate for the Department to give 
substantial weight to the industrial partner's needs in establishing a 
project's reasonable alternatives.
    Based on the foregoing principles, the reasonable alternative to 
the preferred alternative is the no-action alternative (including 
scenarios reasonably foreseeable as a consequence of the no-action 
alternative). The alternatives available to the Department for this 
decision, therefore, are either to provide cost-shared financial 
assistance for the project or to deny financial assistance. After 
reviewing all potential environmental effects, the Department has 
determined that its preferred alternative is to provide cost-shared 
financial assistance for the Pinon Pine Power Project.

Preferred Alternative

    The preferred alternative is the provision of approximately $135 
million in cost-shared Federal funding support for the design, 
construction, and operation of a nominal 800-ton-per-day (approximately 
104 megawatt gross generation) coal-fired power generating facility 
that integrates coal gasification and combined-cycle technologies to 
develop a highly efficient new technology for removing sulfur and 
particles from fuel gas prior to combustion. A combustion turbine unit 
will be integrated with heat recovery steam generator and steam turbine 
generator facilities to form a combined-cycle generating unit with coal 
gasification facilities to complete the 104-megawatt Pinon Pine Power 
Project at Tracy Power Station.
    A KRW Energy Systems Inc. air-blown fluidized-bed gasifier will be 
used to produce a fuel gas. Crushed coal and limestone will be fed to 
the pressurized gasifier bed. The gasifier bed will be maintained in a 
``fluidized'' form by injecting controlled amounts of steam, recycle 
gas, and air through special nozzles into the combustion zone. Heat 
from the combustion zone will cause the coal to gasify (creating fuel 
gas). A portion of the sulfur gasses generated will be removed from the 
fuel gas by reacting with the limestone in the fluidized bed. Fuel gas 
leaving the gasifier will spin through a cyclone unit to remove nearly 
all of the particulate matter. The particles removed in the cyclone 
will be returned to the fludized-bed, while the partially-cleaned fuel 
gas will enter a hot gas cleanup section. The hot gas cleanup devices 
(employing barrier filters to remove remaining particles and zinc-based 
sorbents to remove hydrogen sulfide) will complete the cleaning of the 
fuel gas prior to its entrance into the combustion turbine. Because 
desulfurization and particulate removal will be carried out at an 
elevated temperature, the inefficiencies (and higher capital costs) of 
cooling and cleaning the fuel gas at a low temperature will be avoided.
    Cleaned fuel gas will be routed to a combined-cycle system for 
electric power generation. The General Electric combustion turbine will 
covert fuel gas into approximately 61 megawatts (gross) of electricity 
and produce exhaust gases that will be used to superheat high pressure 
steam. The high pressure steam will then be used to produce an 
additional 43 megawatts (gross) of electricity using a conventional 
steam turbine generator.

No Action

    Under the no-action alternative, the Department would not provide 
cost-shared Federal funding support for the Pinon Pine Power Project, 
and the advanced KRW gasification technology with hot gas cleanup would 
be demonstrated in Reno, Nevada, or elsewhere because there are not 
similar proposals in the Clean Coal Technology Demonstration Program.
    Sierra Pacific has stated that without cost-shared funding support 
from the Department, it will not construct the project as proposed. 
However, Sierra Pacific still must find a cost-effective means of 
meeting the projected energy demand of its customers. This increased 
demand requires the addition of generating capacity by the company. 
Should the Department not fund the Pinon Pine Power Project, the ``most 
reasonable'' course of action of Sierra Pacific to pursue is currently 
the construction of essentially the same project without the capability 
of using coal fuel; the use of natural gas with distillate oil as a 
secondary fuel source is most likely. A final determination, however, 
would be made in compliance with the resource planning process required 
by the state of Nevada. Sierra Pacific would analyze all possibilities 
and present their most preferred (least-cost) option of the Public 
Service Commission of Nevada; Sierra Pacific would proceed only after 
receiving Commission approval.
    The configuration of a natural gas and distillate oil combined-
cycle power plant would include the same General Electric combustion 
turbine and auxiliary equipment selection as described for the Pinon 
Pine Power Project. A slightly smaller size steam turbine might be 
utilized. If the proposed Tuscarora pipeline is constructed, natural 
gas potentially could be used exclusively. The pipeline would end at 
the property line of the Tracy Power Station and Sierra Pacific would 
be responsible for extending it approximately 50 feet. The Federal 
Energy Regulatory Commission is in the process of preparing an 
Environmental Impact Statement for this proposed pipeline; a decision 
to proceed is independent of decisions pertaining to the Tracy Power 
Station.

Alternative Sites

    The Department is not the owner-operator of the Pinon Pine Power 
Project under consideration. Therefore, the Department's evaluation of 
the project's reasonable site alternatives is focused on a review of 
the site selection study and criteria prepared by the industrial 
partner. Sierra Pacific conducted a preliminary site selection study 
before submitting its proposal to the Department. Following a screening 
analysis of the potential candidate sites, four potential locations for 
the integrated gasification combined cycle project were considered: (1) 
Fort Churchill Power Plant; (2) North Valmy Power Plant; (3) Tracy 
Power Station; and (4) Carlin, Nevada.
    Because there are no existing generating facilities nor gas 
pipeline capacity in the Carlin area, a specific site was not pursued 
and no further analysis of the area was conducted. (Use of an existing 
generating station reduces the construction costs of common facilities 
such as warehouses, substations, parking lots, and office buildings, 
and requires fewer additional employees.) The environmental evaluation 
of the remaining three candidate sites considered the potential for 
regulatory compliance and potential environmental impacts. All of the 
sites are judged by Sierra Pacific to be acceptable from an 
environmental perspective. Sierra Pacific also subjectively ranked 
economic and reliability data for each site, and the Tracy site scored 
highest overall.
    On the basis of its review of the site analysis conducted by Sierra 
Pacific, the Department has determined that the Tracy Station site is 
the only site that meets Sierra Pacific's goals and objectives.

Environmentally Preferred Alternative

    Fewer impacts would result from the no-action alternative if Sierra 
Pacific built the same plant without the capability of using coal. 
Under the no-action alternative, it is reasonably foreseeable that 
Sierra Pacific would construct essentially the same project at the same 
site, but with natural gas as its primary fuel source. However, Sierra 
Pacific's actual course of action without Department funding is as yet 
undetermined because the financial determination would depend on the 
decision of the Public Service Commission of Nevada. In any event, 
because the no-action alternative would not further the goals of the 
Clean Coal Technology Demonstration Program, the no-action alternative 
is not the preferred alternative.

Potential Environmental Impacts and Mitigation Measures

    In compliance with the National Environmental Policy Act, the 
Department analyzed the environmental impacts and mitigation 
alternatives associated with the construction and operation of the 
Pinon Pine Power Project and of the no-action alternative.

Construction Impacts and Mitigation Measures

    Site preparation and plant construction are expected to have a 
negligible impact on current land use. The Pinon Pine Power Project 
will be in conformance with zoning for Storey County, and a Special Use 
Permit will be obtained. To reduce visual impacts, trees, such as 
cottonwoods, poplars, and alders, will be planted along the south bank 
of the Truckee River to screen portions of the proposed facility. Pinon 
Pine Power Project facilities that lend themselves to painting will be 
painted in earth-tones. Steel will be painted a silver/grey color to 
blend in with existing Tracy Power Station structures. Fugitive dust 
emissions will be minimized by water application, as necessary.
    Approximately 120,000 cubic yards of soil will be disturbed during 
construction but erosion will be controlled through the use of best 
management practices. Because there is a slight possibility that 
liquefiable zones would exist within the new facility's footprint, a 
design-level subsurface investigation program will be initiated and if 
liquefiable material is found, appropriate mitigation measures (such as 
excavating and removing loose to medium density materials) will be 
implemented. Although near-surface site soils appear to have a moderate 
potential for collapse, the practices of over-excavating, saturating 
the soil, and then compacting it prior to construction have proven 
successful and may be employed. Because a site-specific resistivity 
survey showed moderate corrosion potential to steel, a soil resistivity 
test program also will be implemented and used in the design of 
underground features. Soil excavations will follow current Occupational 
Health and Safety Administration (OSHA) regulations.
    During the 26-month construction phase, projected water usage is 
not expected to differ from current consumption rate; consumption would 
average 1,972 acre-feet per year (1,221 gpm, 2.8 cfs), which is 
comparable to recent annual withdrawals at the Tracy Station site. Best 
management practices will be implemented to control nonpoint source 
pollution discharges to surface waters to alleviate sedimentation and 
siltation during construction. The groundwater withdrawal rate is not 
expected to increase. The only potentially significant influence on 
groundwater flows would be the dewatering that might be required during 
excavation of the coal unloading facility; however, groundwater 
modeling results indicate that this would involve only slight changes 
in surface or groundwater flows for a short time period. No permanent 
adverse impacts to groundwater quality are expected because best 
management practices will be followed. Construction of the new 
switchyard in the Federal Emergency Management Agency-designated 100-
year floodplain also would require the use of best management practices 
to minimize runoff and sedimentation. Because the proposed switchyard 
is relatively small in size, minimal impacts are anticipated. 
Construction of the Pinon Pine Power Project is not expected to impact 
wetlands; however, a temporary fence adjacent to wetlands areas will be 
erected, if necessary, to ensure that all activities occur outside the 
wetlands.
    Short-term impacts to aquatic ecosystems may include dust 
contamination from the windblown, dry, and unstabilized area; truck 
traffic; and other activities. Aquatic resources of the Truckee River 
also could be impacted if increased soil erosion leads to increased 
fine sediment loads in the river, but this would be unlikely because 
construction zones will be located away from the river or other 
drainages and a soil erosion control plan will be implemented. 
Potential impacts on aquatic resources also would be avoided through 
implementation of the hazardous spill control plan.
    Construction impacts to vegetation would be minimal because a 
majority of the project site is barren. There would, however, be 
permanent displacement of some wildlife species that now utilize the 
site. Mule deer that regularly use the power plant property to access 
the river would be displaced and would need to find a new river access 
location site; this will be facilitated by planting food source plants 
such as rose and currant in an appropriate area to act as an 
attractant.
    Impacts on sensitive or threatened species from construction 
activities are expected to be minor. The Cui-ui and Lahontan cutthroat 
trout are not present in the immediate area and bald eagle wintering 
habitat requirements, such as perching and roosting trees and foraging 
areas, would not be affected.
    The temporary (1- to 2-week period) and short-duration (about 2\1/
2\ minutes each) steam blowing activity will produce audible levels of 
noise. Prior to the initiation of steam blowing, letters of explanation 
will be sent to the nine residences in the area. Sierra Pacific also 
will offer to temporarily relocate affected residents to a hotel in the 
Reno/Sparks area.
    No adverse impacts from construction are expected to occur to any 
cultural resources. To ensure protection of identified sites, 6-foot 
chain-link fences will be constructed. If construction activities 
encounter buried deposits, construction will cease until a professional 
archaeologist, in consultation with the State Historic Preservation 
Officer, evaluates the resource. It is not expected that any Native 
American cultural resources or historic resources would be impacted.
    The currently available construction labor resources in the 
affected area are sufficient to satisfy projected labor needs. An 
average labor rate of $36.00 per hour and the estimated total 
construction period of 1,147,900 person-hours is expected to yield a 
construction-phase payroll of approximately $41.3 million dollars, with 
a total income of approximately $59.0 million. Total sales tax revenue 
accruing during the construction phase would be approximately $9.0 
million, based on a sales tax rate of 6.75 percent.
    Construction of the new facility would not have disproportionately 
high and adverse human health or environmental effects on low-income, 
minority, or Native American communities. All direct impacts are 
expected to occur on site, with little effect on surrounding areas of 
Storey or Washoe counties.
    Appropriate health and safety measures will be implemented for all 
identified and anticipated hazards to worker health and safety. During 
construction, portions of the interior fences will be removed, however, 
the perimeter fence will remain intact to deter intrusion by 
unauthorized persons. Additional fences will be constructed to secure 
new facilities (and to prevent encroachment on existing resources).
    Sierra Pacific is responsible for storage and disposal of all 
hazardous and solid wastes generated during construction; stipulations 
for the handling and transportation of solid wastes are included in 
special use permits. Only small quantities of hazardous wastes will be 
generated and no impacts from hazardous or toxic materials are 
anticipated.

Operations Impacts and Mitigation Measures

    No impacts to land use are expected to result from the operation of 
the Pinon Pine Power Project; the special use permits for construction 
will also apply to operations. The project will not create significant 
visual impacts because the new facilities will blend with existing 
power plant structure.
    Air emissions expected during operation of the facility include 225 
tons per year of sulfur dioxide, 123 tons per year of particulate 
matter, 575 tons per year of oxides of nitrogen, and 304 tons per year 
of carbon monoxide. Modeling results based on these emissions loadings 
and consideration of surrounding topography and meteorology indicate 
that pollutant emission levels would be in compliance with National 
Ambient Air Quality Standards and would not have a significant impact 
on nonattainment areas in the Truckee Meadows and Washoe County. Both 
the Class I and Class II Prevention of Significant Deterioration 
increment analyses indicate that the Pinon Pine Power Project would not 
result in significant degradation of air quality in the project area. 
The Class I PSD increment analysis showed that operation of the Pinon 
Pine Power Project would result in the consumption of no more than 3/5 
of 1 percent of a PSD Class I increment. The results of the Class II 
PSD increment analysis indicated that the Pinon Pine Power Project's 
contribution to the consumption of the annual increment would be 
between 10 and 11 percent for sulfur dioxide and 12 percent for 
particulate matter. In addition, site-specific analyses for Nixon and 
Wadsworth areas show that no adverse air quality impacts would occur on 
tribal lands.
    Visibility impact analyses performed for the area surrounding the 
proposed facility indicate that the Pinon Pine Power Project emissions 
of oxides of nitrogen and particulate matter will not result in a plume 
detectable against the background sky beyond 3.1 miles; visual impact 
analysis performed for the nearest Class I Area (Desolation Wilderness) 
indicate that emissions from existing and proposed facilities would be 
below the screening criteria for all impact categories; and there would 
be no significant visual impacts in the Desolation Wilderness or other 
scenic areas (e.g., Lassen Volcanic National Park, Yosemite National 
Park, Grand Canyon National Park) located further away. At the request 
of the U.S. Forest Service, the Class I visibility analysis was re-
evaluated using a value for background visual range that was actually 
measured in the Desolation Wilderness Area. The visual impacts analysis 
still indicated that sources from existing and proposed facilities 
would be below the screening criteria for all impact categories.
    As a result of the Pinon Pine Power Project, there may be some 
occasional increase in the production of fog in the canyon during cold 
weather. The Nevada Department of Transportation, in cooperation with 
Sierra Pacific, already has posted warning signs in the canyon in order 
to mitigate any potential problems generated by natural sources. 
Results of a modeling analysis indicate that the addition of the Pinon 
Pine Power Project could result in an incremental increase in annual 
fog hours of 3 percent. Sierra Pacific will provide a system that 
includes fog and ice detection with active warning capabilities, which 
will be installed by the Nevada Department of Transportation. Sierra 
Pacific will also continue to work with the Nevada Department of 
Transportation to minimize any adverse impacts from fog.
    Because of the design features to be implemented (Uniform Building 
Code, Seismic Zone 4), if an earthquake occurs, external structures and 
internal features of the Pinon Pine Power Project are expected to 
withstand the potential force. If a breach in containment of hazardous 
materials occurs, Chemical Emergency Response Plan and Spill Prevention 
Control and Countermeasures Plan procedures would reduce or eliminate 
the extent of the potential impact. No activity associated with 
operation of the facility is expected to impact soil erosion or soil 
quality. However, procedures are in place for the response to and 
remediation of a spill that could potentially contaminate the soil.
    River water quality is not expected to be impacted by plant 
operations because the plant will continue as a ``zero discharge'' 
system. Discharges from the project will be directed to a new, double-
lined evaporation pond. This pond will be regulated by the Nevada 
Division of Environmental Protection under Nevada Revised Statutes, 
Chapter 445. Stormwater from the Pinon Pine Power Project will be 
routed to the cooling pond and could result in some siltation. However, 
it is unlikely that a storm event would result in significant runoff. 
Routing of the stormwater runoff to the cooling pond should prevent 
discharge of suspended material to the Truckee River. In addition, best 
management practices will be incorporated into the containment of 
hazardous materials and coal to prevent them from entering the Truckee 
River and potentially harming fish or other wildlife.
    Protection of groundwater quality will be accomplished by storing 
coal, coke, and limestone in concrete or steel enclosures and using 
protective double liners for liquid waste impoundments. Coal will be 
delivered via a covered handling system equipped with a sump to reclaim 
and recycle any water used for dust suppression. Chemical and petroleum 
product and hazardous waste storage facilities and handling procedures 
will be designed to prevent or contain accidental spills. The impact of 
increased groundwater withdrawal on adjacent will owners also was 
evaluated. Results from the simulation show that the area affected by 
additional drawdowns would be quite small. The level of impact to 
groundwater flow are not expected to change as a result of the Pinon 
Pine Power Project.
    Because of the limited size and open structure of the switchyard, 
potential impacts to the floodplain are expected to be minimal. The 
site is largely devoid of vegetation, is not an ecologically sensitive 
area, and contains no wetlands. Therefore, potential indirect impacts 
to habitat, resulting from flood storage and impediments to flow 
conveyance, are not expected.
    During the early design phases of the project, Sierra Pacific 
incorporated several measures to reduce water consumption. These water-
conserving measures are currently part of the proposed facility. The 
increase in water consumption, compared to present operations, would be 
relatively small. Projected water usage during the 26-month 
construction phase would not differ from current consumption. 
Consumption would average 1,972 acre-feet per year (1,221 gpm, 2.8 
cfs), which is comparable to recent annual withdrawals at the Tracy 
Station site. Consequently, construction would be unlikely to affect 
water availability. The average water consumption for the Tracy Station 
site for cooling after the start-up of the Pinon Pine Power Project is 
estimated to be 2,806 acre-feet/year (or 3.9 cfs), averaged over the 
operation years 1997 through 2011 and excluding the construction years 
prior to 1997. Of this amount, downstream users are expected to 
experience a water loss of 1,004 acre-feet/year (1.4 cfs; 630 gpm), 
which would be attributed to the Pinon Pine Power Project. This amount 
is typically less than one percent of current normal Truckee River 
flows. No change would be anticipated in water use during drought 
conditions.
    The Final EIS also presented alternative cooling methods, which 
were investigated in an effort to find ways to conserve water. In 
addition to the option incorporated into the preferred alternative (use 
of wet cooling in the form of a cooling tower), other options of air 
condensers (dry cooling), a wet-dry cooling tower (hybrid cooling), a 
spray pond, a cooling pond with cooling tower, and a cooling tower were 
analyzed. Only the use of air condensers (dry cooling option) was shown 
to substantially reduce water consumption when compared to the other 
options. Although there were environmental advantages associated with 
the dry cooling option when compared to the wet cooling tower in the 
preferred alternative (a 1.3 cfs [941 acre-fee/year] reduction of water 
consumption, elimination of fogging, icing, and plume visibility 
potential, elimination of requirements for chemical treatment of 
cooling water and disposal of blowdown), it was dropped from further 
consideration due to its economic and environmental disadvantages. The 
cost of air condensers was $7.8M more than the wet cooling tower (which 
could potentially be reflected in an increase in rates). In addition, 
the inclusion of air condensers would require more coal use (in order 
to generate the same gross electrical output) due to parasitic power 
requirements of the air condenser fans and to compensate for the higher 
backpressures resulting from the air condenser system. This increase 
coal usage potentially translates into increased air emissions (12 tons 
per year of sulfur dioxide; 32 tons per year of oxides of nitrogen; 7 
tons per year of particulate matter, and 17 tons per year of carbon 
monoxide). Other characteristics associated with air condensers 
compared to wet cooling systems at Tracy Station include more noise, 
risk of freezing, more noticeable structures, and higher degree of 
technical risk. In addition, the unused water (1.3 cfs) resulting from 
the use of air-cooled condensers would probably be consumed as a 
resource for current or future operations at Tracy Station and/or 
another Sierra Pacific location, rather than augmenting downstream flow 
from the Tracy Station site. Thus, the most probable end effect of 
conserving water through the use of air condensers would be a 
redistribution of projects and/or locations that would use existing 
water rights (including the 1.3 cfs) held by Sierra Pacific. However, 
in any event, the Pyramid Lake Pauite Indian Tribe holds the most 
senior water rights, and would not be affected by this additional 
withdrawal.
    No significant impacts on Truckee River aquatic habitat are 
expected. Two wire mesh plate screens at the intake facility at the 
Tracy Power Station currently prevent entrainment of fish from the 
Truckee River and can accommodate any additional diversion volume. The 
anticipated consumption of additional water is within Sierra Pacific's 
existing water rights and full use of these water rights has been 
assumed as part of the hydrological foundation of the Cui-ui Recovery 
Plan. A Biological Assessment was formally submitted to the U.S. Fish 
and Wildlife Service in February 1994. The Service concurred with the 
conclusion that the Pinon Pine Power Project would result in ``no 
effect'' on the Cui-ui sucker, the efforts of the Cui-ui Recovery Plan, 
the Lahontan cutthroat trout, and the bald eagle.
    The cooling pond at the Tracy Power Station currently supports a 
number of warmwater fish species. The Pinon Pine Power Project will 
result in changes to the pond's inflow and outflow (because utilization 
of existing Tracy Station units will change), but there should be no 
significant variations in water level. Although evaporative water loss 
from the cooling pond could slightly increase total dissolved solids 
over time, no significant alterations in the existing ionic 
concentration are expected. Anticipated temperature fluctuations in the 
pond resulting from divergent ambient air temperatures and varying 
utilization are expected to remain within the current range.
    Wastewater in the evaporation ponds is not anticipated to result in 
any adverse effect on wildlife. Sierra Pacific will periodically test 
the evaporation ponds and compare the results with the standards of 
section 445 of the Clean Water Act for wildlife propagation. If water 
quality is found to be out of compliance with these standards, Sierra 
Pacific will either neutralize the pond's contents or work with the 
Nevada Division of Wildlife to develop necessary exclusion measures.
    Loss or modification of habitat and noise disturbance within the 
operation area may affect wildlife, but any impact is expected to be 
minor. The habitat types that will be impacted (i.e., natural and 
disturbed big sage desert shrub communities) are common habitat types 
in the area and some natural revegetation likely would occur in areas 
such as evaporation pond tailings, and along the new railroad spur. In 
addition, wildlife species using the project area appear to be 
accustomed to the noise from the Tracy Power Station, traffic along I-
80, the Southern Pacific Railroad, and surrounding mining operations. 
No significant impact to the birds in the area is anticipated. Although 
an increase in collision potential may occur during foggy conditions, 
this has not been a major concern with current structures, and such an 
increase would be slight.
    Railroad access to the site is provided by the Southern Pacific 
Railroad Company. Because a new railroad spur will be constructed as 
part of this facility, minimal impact to the right-of-way utilized by 
existing train traffic is expected. Coal will be delivered by rail in 
railcars of approximately 100-110 ton capacity, resulting in a small 
increase in rail traffic along the main route. Train cars will be 
pulled off the main track during the coal off-loading process. No 
adverse impact to the Truckee River is expected from coal 
transportation. If a spill occurs during transport, Southern Pacific 
Railroad will be responsible for cleanup. The railroad company has a 
contingency plan on file and is required to notify Washoe County Health 
Department, Nevada Health Department, Nevada Division of Environmental 
Protection, Pyramid Lake Paiute Indian Tribe, Nevada Department of 
Wildlife, the U.S. Fish and Wildlife Service, and the Truckee-Carson 
Irrigation District. The Tracy Bridge, which links the access road over 
the Truckee River to the Pinon Pine Power Project site, will be 
maintained as necessary to safely accommodate the current maximum load 
rating of 52 tons; no increase in load bearing capacity is needed.
    Potential noise impacts have been assessed for the nearest 
residence at a distance of 1 mile and for the residences in the 
community of Patrick about 3 miles from the site. The addition to the 
Pinon Pine Power Project is expected to increase the noise level by 1 
to 2 dBA for the nearest residences and by 1 dBA for the community of 
Patrick. In addition, the Storey County noise ordinance limit of 84 dBA 
at the property line in the frequency range of 500 to 1,800 Hz would 
not be exceeded.
    The permanent chain-link fence constructed to protect 
archaeological sites will remain in place during operation; no adverse 
impacts are expected. No Indian sacred sites of religious worship have 
been identified on the project property or within the affected property 
area. Consultations with Native American Tribes have not indicated any 
religious practices associated with the facility or site. No 
infringement of the American Indian Religious Freedom Act of 1978 and 
no impacts on Native American cultural resources would occur as a 
result of project operation. The Nevada State Historic Preservation 
Officer and the Advisory Council on Historic Preservation concurred 
with the determination that operation of the Pinon Pine Project would 
not adversely impact historic resources on, or adjacent to, the Tracy 
Power Station site.
    No significant adverse socioeconomic impacts are anticipated with 
operation of the Pinon Pine Project. Adequate labor force, housing, 
schools, police protection, fire protection, and medical services are 
available. A beneficial impact of increased tax revenue is expected. 
Based upon an average hourly labor rate for public utility workers of 
$16.14, the annual wages for a total of 25 permanent workers would be 
approximately $850,000. The Pinon Pine Project is expected to yield a 
total annual income of approximately $1.165 million during the 
operations phase. The project also is expected to generate 
approximately $1 million annually in state and local property taxes.
    Operation of the Pinon Pine Project is not expected to result in a 
disproportionately high and adverse human health or environmental 
effects on low-income, minority, or Native American communities. 
Coordination with the Pyramid Lake Paiute Indian Tribe, initiated 
before this project was proposed, will continue during project 
operation and beyond.
    The greatest potential health and safety concern is the accidental 
or emergency release of fugitive coal dust. The facility provides 
engineering controls to minimize fugitive dust, such as the use of 
bottom dump railcars in a negative pressure building. A dust filtration 
system also will be included in the design to minimize airborne dusts. 
Dusts generated from coal crushing and screening will be collected in 
negative pressure hoods that will be vented through a pulse jet or 
similar baghouse to adequately control emissions and manage the 
potential impacts to workers in the area. Coal fines will be collected 
and consumed as fuel in the gasifier and, therefore, are not expected 
to present a disposal problem. Although there is some potential for 
fire or ignitability from the coal storage or coal dust build-up in the 
coal crushing and handling systems, workers will be trained on proper 
management. A fire suppression system, to be designed, will comply with 
applicable fire and safety specifications and regulations.
    Lime (calcium oxide) in LASH reacts with water to form hydrated 
lime (calcium hydroxide) and generates a considerable amount of heat. 
Chronic exposure to LASH dusts could potentially result in 
carcinogenicity. A material safety data sheet (MSDS) will be available 
to all workers. If required to handle LASH, workers will be trained in 
the proper handling of the material and appropriate protective 
equipment will be provided.
    Up to a maximum of 134 tons/day of cooled LASH will exit the 
fluidized-bed sulfation combustor and be conveyed continuously to the 
solid waste storage silo using a covered belt conveyor system. The 
storage silo, with a 5-day storage capacity, is designed to prevent 
rainwater runoff from contacting the LASH and wind from dispersing LASH 
particles into the environment.
    Washoe County requires that the LASH pass the Toxic Characteristic 
Leaching Procedure test associated with the Resource Conservation and 
Recovery Act requirements before the material can be landfilled. 
Although it is expected that the LASH will be able to pass this test, 
improved means of disposal are being investigated. Various uses for the 
LASH and resulting environmental impacts are also being evaluated. The 
results of these evaluations will be used to determine the most cost-
effective residuals management solution. Until a final decision on 
reuse is reached, however, the planned procedure for LASH disposal is 
to transport it daily to a nearby landfill by truck. The LASH storage 
silo will be equipped with a rotary underloader equipped with discharge 
valve and a telescope loading chute to minimize dusting during the 
truck loading operation. Transportation will be performed in accordance 
with all Federal, state, and local regulations. The most likely 
location for LASH disposal is the Lockwood landfill, which has a life 
expectancy of 122 years based on the assumption that 8,000 tons of 
solid waste is received daily.
    Other solid wastes to be generated by the facility include barrier 
filters and spent sorbent from the external hot gas desulfurization 
vessels. Barrier filters could capture some of the trace metals from 
the coal; therefore, analytical testing will be performed to determine 
if the filters contain any hazardous constituents and to ensure that 
they are disposed properly. Wastewater and wastewater sediments will be 
reclaimed, thus minimizing wastes and the potential for adverse impacts 
to workers.
    Safety considerations for high-pressure systems will be implemented 
to minimize potential impacts from the accidental release of pressure 
during normal operations. Leak detection (area monitors) will be 
required at all flanges located in enclosed areas. In addition, hand-
held leak detectors will be used by operators during leak detection and 
repair programs. The design for desulfurization and sulfation also 
takes into account control measures to minimize the potential release 
of toxic gases, thereby minimizing potential impacts to the worker 
population.
    Near-field or in-plant noise levels will be controlled by a 
specific requirement that equipment cannot produce a noise level that 
exceeds 85 dBA (at 3 feet). This will permit compliance with noise 
exposure regulations (29 CFR 1910.95) without hearing protection. 
However, hearing protection will be required in each area posted as a 
high noise level area. The existing Tracy Power Station hearing 
conservation program will be extended to include the Pinon Pine Power 
Project.
    An in-place site program is in full compliance with the Hazard 
Communication/Right-To-Know Program (29 CFR 1910.1200). All aspects of 
health and safety compliance monitoring are implemented and conform to 
Federal and state requirements. To ensure that employee exposures to 
hazardous substances do not exceed the standards allowed by the 
Occupational Health and Safety Administration or the National Institute 
of Occupational Safety and Health, the Sierra Pacific Industrial 
Hygienist will determine requirements for personal protective 
equipment, modified work practices, engineering controls, and/or 
administrative controls. Until instructed otherwise, all employees in 
affected work areas will wear prescribed personal protective equipment.
    The chemical analyses of the existing evaporation pond were 
reviewed to determine potential health impacts to workers and 
individuals in the vicinity of the proposed new evaporation pond from 
water sprayed by the floating spray units. An assessment also was 
conducted to determine the impacts to workers from breathing vapors 
from the pond spray. All chemicals of concern were determined to be 
below the threshold limit values.
    Appropriate containment structures will be constructed around 
chemical or petrochemical storage tanks to avoid entraining spillage of 
those compounds in surface runoff. Surface runoff draining from areas 
of industrial activity will be directed through a filter or separator 
treatment device capable of removing entrained pollutants. Solid and 
liquid wastes retained by treatment devices will be disposed of 
periodically, as required. Either a hazardous waste disposal contractor 
or used-oil recycler contractor will remove the waste material for 
disposal in compliance with the appropriate Federal, state, and local 
environmental regulations. The discharge of nonstormwater (process 
water or water from floor drains) from the new facility will be 
directed to the double-lined evaporation pond to prevent co-mingling 
with stormwater.
    The Pinon Pine Power Project will use small quantities of hazardous 
chemicals during routine operations, which are not expected to pose any 
threat to public health and safety. However, if a spill or other 
accidental release of these materials occurs, use of secondary 
containment, containment piping, leak detection, and other techniques 
to contain a release would minimize the potential impact.
    The Pinon Pine Power Project probably will use sealed low-level 
radiation sources in process control sensors for coal, limestone, and 
LASH handling. While the accumulated dose from these sources is not 
expected to exceed the federally mandated whole-body dose, radiation 
safety surveys will be required in the areas where employees may be 
working with these materials. Until the results of these surveys are 
known, all employees working with these sources will be required to 
wear personal dosimeters and to adhere strictly to the procedures 
established for working with these materials.
    Existing Tracy Power Station pollution prevention measures will 
continue to be implemented. Attempts currently are being made to 
replace hazardous materials with non-hazardous materials and prevent 
resulting pollution. For example, Tracy Power Station is using non-
hydrazine containing oxygen scavenger chemicals for steam cycle 
corrosion control.
    No impact to the general public's health and safety is expected 
from operation of the facility. Unauthorized personnel will continue to 
be prevented from entering the site by a perimeter fence surrounding 
the property. For added security and safety, additional fences will 
surround specific facilities, as necessary. In addition, in the 
unlikely event of an accident, the implementation of the Chemical 
Emergency Response Plan would ensure that proper notification and 
evacuation procedures are followed. This plan will be modified to 
incorporate the new facilities and processes of the project.
    In sum, with the exception of the dry cooling option, all 
practicable means of avoiding or minimizing environmental harm from the 
preferred alternative have been adopted. The reasons for not selecting 
the dry cooling option have been presented earlier in this section.

No-action Alternative

    For most resources, impacts from the no-action alternative would be 
similar to those for the Department's preferred alternative. However, 
air emissions from the no-action alternative would be less than for the 
preferred alternative because the anticipated use of natural gas under 
the no-action alternative would result in lower emissions of sulfur 
dioxide, particulate matter, oxides of nitrogen, and carbon monoxide. 
In addition, total water (surface and groundwater) consumption for the 
no-action alternative would be approximately 1.098 cfs compared to 
1.646 for the preferred alternative. Because the most likely project 
that would result under the no-action alternative would be non-coal-
burning, no LASH would be generated and thus the anticipated two year 
reduction in the 122-year lifespan of the Lockwood disposal facility 
would not result. The beneficial impact of increased tax revenue would 
be less with the no-action alternative because fewer construction 
workers and employees would be required. However, the no-action 
alternative would not further the goals of the Clean Coal Technology 
Demonstration Program. Demonstration of the coal-based power generating 
technology, with the KRW gasifier, in-bed desulfurization, external 
regenerable sulfur removal, and fine particulate filters would not 
occur.

Mitigation Action Plan

    Section 1021.331(a) of the Department of Energy regulations 
implementing the National Environmental Policy Act (10 CFR Part 1021) 
states that the Department must prepare a Mitigation Action Plan that 
addresses mitigation commitments expressed in the Record of Decision. 
Most of the mitigation measures associated with the construction of the 
Pinon Pine Power Project have already been incorporated into the design 
and include sound engineering and proper construction practices. Many 
of the mitigation measures associated with operation of the Pinon Pine 
Power Project are part of existing Sierra Pacific operating procedures. 
The Department has identified a number of additional mitigation 
measures that Sierra Pacific will implement as appropriate. These 
measures include planting trees on the south bank of the Truckee River 
to screen portions of the facility; painting portions of the Pinon Pine 
Power Project structures, where possible, in earth-tones; painting 
structural steel silver/grey in color to blend with existing 
facilities; minimizing fugitive dust emissions during construction by 
water application, as necessary; providing a system with fog and ice 
detection coupled active warning capabilities (to be installed by the 
Nevada Department of Transportation) and continuing to work with the 
Nevada Department of Transportation to improve travel safety during fog 
events; preparing a geotechnical report and implementing mitigating 
measures if soils are found liquefiable or collapsible, or if 
settlements are found to exceed tolerable settlement values; 
implementing a soil resistivity program and using it in the design of 
underground features; periodically testing the evaporation pond and 
either neutralizing the pond's contents or working with the Nevada 
Division of Wildlife to develop necessary exclusion measures if water 
if found to be hazardous to wildlife; providing habitat enhancement for 
Mule deer by planting food source plants to act as an attractant; 
protecting archaeological sites by permanent and temporary 6-foot 
chain-link fences; and prior to the initiation of steam blowing, 
sending letters of explanation to the nine residences in the area and 
temporarily relocating, on a voluntary basis, affected residents to a 
hotel in the Reno/Sparks area.
    A Mitigation Action Plan for the Pinon Pine Power Project is being 
developed that identifies how the Department will ensure that Sierra 
Pacific implements all mitigation commitments. Copies of the Mitigation 
Action Plan may be obtained from Dr. Suellen A. Van Ooteghem, 
Environmental Project Manager, Morgantown Energy Technology Center, 
3610 Collins Ferry Road, Morgantown, WV 26507-0880. Telephone: (304) 
285-5443.

Conclusion

    The Department has weighed the costs, benefits, and environmental 
impacts in its decision to provide co-funding support for the design, 
construction, and operation of the Pinon Pine Power Project at the 
Tracy Power Station, near, Reno, Nevada. The Department will provide 
$135 million in financial assistance under the terms of the Clean Coal 
Technology Demonstration Program's Cooperative Agreement with Sierra 
Pacific Power Company to construct and operate this project.

    Issued in Washington, D.C., on November 8, 1994.
Patricia Fry Godley,
Assistant Secretary for Fossil Energy.
[FR Doc. 94-28042 Filed 11-10-94; 8:45 am]
BILLING CODE 6450-01-P-M