[Federal Register Volume 62, Number 219 (Thursday, November 13, 1997)]
[Notices]
[Pages 60889-60892]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29890]


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DEPARTMENT OF ENERGY


Notice of Intent To Prepare an Environmental Impact Statement and 
Notice of Floodplain and Wetlands Involvement for the Proposed 
Jacksonville Electric Authority Circulating Fluidized Bed Combustor 
Project

AGENCY: Department of Energy.

ACTION: Notice of intent to prepare an Environmental Impact Statement 
(EIS), and notice of floodplain and wetlands involvement.

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SUMMARY: The 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 and human health impacts of the 
construction and operation of a project proposed by the Jacksonville 
Electric Authority (JEA) that has been selected by DOE to demonstrate 
circulating fluidized bed (CFB) technology under the Clean Coal 
Technology (CCT) Program. The proposed project would involve 
construction and operation of a CFB combustor fueled by coal and 
petroleum coke to repower an existing steam turbine at JEA's Northside 
Generating Station in Jacksonville, Florida, to generate nearly 300 
megawatts of electricity (MWe). This EIS will support a DOE decision 
regarding whether DOE will provide approximately $75 million in cost-
shared funding (about 24% of the total cost of approximately $309 
million) for the proposed project.
    The purpose of this Notice of Intent is to inform the public about 
the proposed action; present the schedule for the action; announce the 
plans for a public scoping meeting; invite public participation in the 
scoping process; and solicit public comments for consideration in 
establishing the scope and content of the EIS. The EIS will evaluate 
the potential impacts of the proposed action and reasonable 
alternatives. Because the proposed project may involve an action in 
floodplains and wetlands, the EIS will include a floodplain and 
wetlands assessment and a statement of findings in accordance with DOE 
regulations for compliance with floodplain and wetlands environmental 
review requirements (10 CFR Part 1022).

DATES: To ensure that the full range of issues related to this proposal 
is addressed, DOE invites comments on the scope and content of the EIS 
from all interested parties. All comments must be received by December 
31, 1997, 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 the general public are invited to present 
oral comments or suggestions with regard to the range of actions, 
alternatives, and impacts to be considered in the EIS. The scoping 
meeting will be held at the Northside Generating Station, In-Plant 
Conference Room, 4377 Heckscher Drive, Jacksonville, Florida, on 
Wednesday, December 3, 1997, at 7 p.m.

ADDRESSES: Written comments and requests to participate in the public 
scoping process should be addressed to: Dr. Jan Wachter, NEPA Document 
Manager for the JEA Project, Federal Energy Technology Center, U.S. 
Department of Energy, 3610 Collins Ferry Road, Morgantown, WV 26507-
0880. Individuals who would like to verbally or electronically provide 
comments should contact Dr. Wachter at direct telephone 304-285-4607; 
toll free number 1-800-432-8330 (ext. 4607); fax 304-285-4469; or E-
mail [email protected].

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
this project or to receive a copy of the draft EIS when it is issued, 
contact Dr. Jan Wachter at the address provided above. For general 
information on the DOE NEPA process, contact Ms. Carol M. Borgstrom, 
Director, Office of NEPA Policy and Assistance (EH-42), U.S. Department 
of Energy, 1000 Independence Avenue, S.W., Washington, D.C. 20585-0119; 
telephone 202-586-4600; or leave a message at 1-800-472-2756.

SUPPLEMENTARY INFORMATION:

Background and Need for the Proposed Action

    Under Public Law 99-190, Congress provided authorization and funds 
to DOE to support the construction and operation of demonstration 
facilities selected for cost-shared financial assistance as part of 
DOE's CCT Program. In December 1985, Congress made funds available to 
DOE for conducting the first round of the CCT Program. Congress 
directed that this first solicitation for federal cost-sharing (1) be 
open to all market applications of clean coal technologies, (2) apply 
to any segment of the U.S. coal resource base, and (3) encompass both 
new and retrofit applications. In response to the solicitation, 
proposals were received and projects were selected by DOE for 
negotiation. In addition, a list of alternate candidates was 
established from which replacement selection could be made should any 
of the original selections not proceed. JEA's proposed CFB combustor 
project has evolved through a series of site changes from a project 
that was selected from the alternate list for demonstration.
    The demonstration of JEA's CFB combustor project under the CCT 
Program would fulfill an existing DOE programmatic need. Coal has the 
potential to address critical energy supply issues because of its 
abundant reserves; however, barriers to increased use of coal include 
concerns about environmental issues, such as acid deposition, global 
climate change, polyaromatic hydrocarbon emissions, and solid waste. 
Since the early 1970's, DOE and its predecessor agencies have sponsored 
long-term programs to develop innovative coal technologies through the 
proof-of-concept stage to overcome these environmental barriers while 
improving combustion efficiency and reducing costs.
    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 seriously be 
considered for commercialization, it must be demonstrated at a large 
enough 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 congressionally-
directed CCT Program provides a mechanism to accelerate the 
commercialization of innovative technologies to meet the nation's near-
term energy and environmental goals, to

[[Page 60890]]

reduce technological risk to industry to an acceptable level, and to 
provide private sector incentives required for continued research and 
development aimed at finding solutions to long-range energy supply 
problems.

Proposed Action

    The proposed action is for DOE to provide, through a cooperative 
agreement with JEA, cost-shared financial assistance to JEA for the 
design, construction, and operation of the proposed project, as 
described below. JEA plans to form an alliance with Foster Wheeler 
Corporation through its subsidiary, Foster Wheeler Power Systems, Inc., 
to jointly own and operate the project. Together with other Foster 
Wheeler affiliates, Foster Wheeler Power Systems, Inc. will provide the 
CFB combustor and perform the project engineering, procurement, and 
construction. The demonstration project would last 24 months and cost 
approximately $309 million, with DOE's share being nearly $75 million 
(24%). The proposed project would be located at JEA's existing 
Northside Generating Station in Jacksonville, Florida, which currently 
consists of 3 heavy oil- and natural gas-fired steam generation units 
and 4 diesel oil-fired combustion turbine units.
    The Northside Generating Station is approximately 10 miles north of 
downtown Jacksonville, Florida. The Northside Generating Station is an 
industrial site encompassing approximately 400 acres, with 200 acres 
devoted to existing steam generation units, combustion turbine units, 
and associated infrastructure. New construction associated with JEA's 
proposed CFB combustor project would occupy approximately 60 acres of 
previously disturbed land. The Northside Generating Station contains a 
number of wetland areas, especially in the perimeter areas. Preliminary 
analysis indicates that the site may be in a hurricane storm surge 
area, in addition to the 100-year floodplain of the St. Johns River. 
The most significant environmental feature associated with the 
Northside Generating Station is the nearby presence of estuarine salt 
marsh backwaters of the St. Johns River. St. Johns River Power Park, an 
industrial site which consists of two 624 MWe coal- and petroleum coke-
burning power plants on 1,656 acres, is adjacent to the Northside 
Generating Station.
    The overall objective of the project is to demonstrate the 
feasibility of CFB technology at a size that will be attractive for 
large-scale utility operation. The new CFB combustor would use coal and 
petroleum coke to generate nearly 300 MWe by repowering the existing 
Unit 2 steam turbine, a 297.5-MWe unit that has been out of service 
since 1983. The project is expected to provide JEA with a low-cost, 
efficient, and environmentally-sound generating resource. In addition, 
JEA plans to repower the currently operating Unit 1 steam turbine 
without cost-shared funding from DOE. The Unit 1 steam turbine will be 
essentially identical to the turbine for Unit 2, and is scheduled to be 
repowered about 6 to 12 months after the Unit 2 repowering. While the 
proposed project only consists of the Unit 2 repowering (because DOE 
would provide no funding for the Unit 1 repowering), the EIS will 
evaluate the Unit 1 repowering as a related action.
    In a CFB combustor, coal and coal/fuel blends, air, and limestone 
are introduced into the lower portion of the combustor, where initial 
combustion occurs. As the fuel is reduced in size through combustion 
and breakage, it is transported higher in the combustor where 
additional air is introduced. Ash and unburned fuel and limestone pass 
out of the combustor, collect in a particle separator, and recirculate 
to the lower portion of the combustor. Sulfur reacts with limestone 
added in the furnace to form ash that can be marketed as a useful 
byproduct such as roadbed material.
    For the proposed project, the combined installation of the CFB 
combustor and a flue gas scrubber is expected to remove over 97% of the 
sulfur dioxide emitted from burning coal that contains up to 4.5% 
sulfur. The relatively low furnace operating temperature of about 
1650 deg.F would result in appreciably lower nitrogen oxide emissions 
compared to conventional coal-fired power plants.
    The project would also include a new selective non-catalytic 
reduction system to further reduce emissions of nitrogen oxides. Over 
99.8% of particulate emissions would be removed by a new baghouse or a 
new electrostatic precipitator.
    In addition to the CFB combustor itself and the air pollution 
control systems, new equipment for the project would include a new 
stack and new fuel, limestone, and ash handling systems. The height of 
the proposed new stack is expected to be approximately 450 feet 
compared to 300 feet for the existing stack at Unit 2. The project 
would also require overhaul and/or modifications to existing systems 
such as the steam turbine, condensate and feedwater systems, 
circulating water systems, water treatment systems, plant electrical 
distribution systems, the switchyard, and the control systems.
    Options being considered for transport of coal include (1) an 
extension of conveyors from the nearby St. Johns River Power Park, and 
(2) construction of new receiving, handling, and storage facilities for 
solid fuel. Limestone and ash storage and handling facilities also 
would be required. Wherever possible, existing facilities and 
infrastructure located at the Northside Generating Station would be 
used for the proposed project. These include the discharge system for 
cooling water to the St. Johns River, the wastewater treatment system, 
and the electric transmission lines and towers.
    Because Unit 2 has not operated since 1983, the baseline emissions 
from that unit are zero. Units 1 and 3 have been operating at annual 
capacity factors of less than 40%, firing either heavy oil or natural 
gas. Unit 3 would continue as a 563.7-MWe oil/gas-fired unit. With the 
exception of low-NOX (nitrogen oxide) burners on Unit 3, 
Units 1 and 3 are not currently equipped with emission control systems.
    The area is in attainment of the National Ambient Air Quality 
Standards. However, as part of JEA's commitment to the local community 
in the implementation of this project, JEA has committed to a 10% 
reduction in the annual stack emissions for criteria pollutants (i.e., 
sulfur dioxide, nitrogen oxides, and particulate matter) from the 
Northside Generating Station (as compared to recent annual emissions). 
In achieving this objective, the combined emissions from the repowered 
Units 1 and 2 operating at annual capacity factors of 100% are 
projected to be less than recent typical annual emissions from Unit 1 
alone.
    Another part of JEA's community commitment is that groundwater 
consumption will be reduced by at least 10% from recent levels. This 
would be accomplished by increased recycling of the treated wastewater 
produced at the station. Plant wastewater is presently treated with 
lime, followed by clarification in settling basins. While some recycled 
water is currently utilized, most of the treated wastewater is 
discharged to percolation ponds. Should the proposed project be 
implemented, the discharge of treated wastewater to the ponds would be 
reduced.
    Project activities would include engineering and design, 
permitting, equipment procurement, construction, startup, and a 24-
month demonstration of the commercial feasibility of the technology. 
DOE plans to complete the EIS and issue a Record of Decision

[[Page 60891]]

within 15 months of publication of this Notice of Intent, assuming 
timely delivery of environmental information from JEA for use in 
developing the EIS. Upon completing its NEPA review, if DOE decides to 
implement the proposed action, construction would commence in early 
1999 and finish in late 2001, startup would occur in early 2002, and 
demonstration of the technology would begin in April 2002. During the 
demonstration, Unit 2 would be operated on several different types of 
coal and coal/fuel blends to demonstrate the flexibility of the 
technology. Upon completion of the demonstration phase, the facility 
would continue its commercial operation.

Alternatives

    NEPA requires that agencies discuss the reasonable alternatives to 
the proposed action in an EIS. The purpose for agency action determines 
the range of reasonable alternatives. Congress established the CCT 
Program with a specific purpose: to demonstrate the commercial 
viability of technologies that use coal in more environmentally benign 
ways than conventional coal technologies. Congress also directed DOE to 
pursue the goals of the CCT Program by means of partial funding (cost-
sharing) of projects owned and controlled by non-federal government 
sponsors. This statutory requirement places DOE in a much more limited 
role than if the federal government were the owner and operator of the 
project. In the latter situation, DOE would be responsible for a 
comprehensive review of reasonable alternatives. However, in dealing 
with an applicant, the scope of alternatives is necessarily more 
restricted. It is appropriate in such cases for DOE to give substantial 
weight to the applicant's needs in establishing a project's reasonable 
alternatives.
    An overall strategy for compliance with NEPA was developed for the 
CCT Program that includes consideration of both programmatic and 
project-specific environmental impacts during and after the process of 
selecting a project. As part of the NEPA strategy, the EIS for JEA's 
proposed CFB combustor project will tier off the program's final 
Programmatic Environmental Impact Statement (PEIS) that was issued by 
DOE in November 1989 (DOE/EIS-0146). Two alternatives were evaluated in 
the PEIS: (1) the no action alternative, which assumed that the CCT 
Program was not continued and that conventional coal-fired 
technologies, with flue gas desulfurization and nitrogen oxide controls 
to meet New Source Performance Standards, would continue to be used; 
and (2) the proposed action, which assumed that the clean coal projects 
would be selected and funded, and that successfully demonstrated 
technologies would undergo widespread commercialization by the year 
2010.
    For JEA's proposed CFB combustor project, the range of reasonable 
alternatives to be considered in the EIS is also narrowed in accordance 
with the overall NEPA strategy. The no action alternative will be 
analyzed in the EIS as a reasonable alternative to the proposed action 
of providing cost-shared funding support for the proposed project. DOE 
will consider any other reasonable alternatives that may be suggested 
during the public scoping period.
    Under no action, DOE would not provide partial funding for the 
design, construction, and operation of the project. In the absence of 
DOE funding, there are three options that JEA could reasonably pursue. 
These options will be analyzed under the no action alternative. JEA 
could construct the proposed project without DOE cost-shared funding. 
Under this scenario, the potential environmental impacts or benefits at 
Northside Generating Station are expected to be identical to those of 
the proposed project. A second option is that JEA could construct a new 
gas-fired combined cycle facility at Northside Generating Station or at 
another location. Under this scenario, potential environmental impacts 
or benefits at Northside Generating Station would vary from those of 
the proposed project. A third option is that JEA could purchase 
electricity from other utilities to meet JEA's projected demand. Under 
this scenario, potential environmental impacts or benefits at Northside 
Generating Station related to demonstration of the proposed project 
would not be realized. In addition, the second and third options would 
not contribute to the objective of the CCT Program, which is to make 
available to the U.S. energy marketplace advanced, more efficient, 
economically feasible, and environmentally acceptable coal 
technologies.
    Because of DOE's limited role of providing cost-shared funding for 
JEA's proposed project and because of the advantages associated with 
the proposed location, DOE does not plan to evaluate alternative sites 
for the proposed project. JEA considered additional sites during its 
site selection process. Site selection was governed primarily by 
benefits that could be realized by JEA. An existing plant site was 
preferred because the cost associated with construction of the project 
at a ``greenfield'' site in an undisturbed area would be much higher, 
and the environmental impact likely would be much greater than at an 
existing facility. The existing Northside Generating Station has 
several advantages because it is an operating plant with land available 
for installation of new facilities. Much of the required 
infrastructure, including the electric transmission lines and towers, 
is already in place, thereby reducing the level of capital investment 
and construction impacts. The station has the flexibility to 
accommodate possible fuel delivery needs with its existing rail and 
water facilities. Furthermore, most of the operational staffing for the 
new facility would be accommodated by the existing Northside Generating 
Station staff.

Preliminary Identification of Environmental Issues

    The following issues have been tentatively identified for analysis 
in the EIS. This list, which was developed partly on the basis of 
concerns provided by the public in response to JEA's stakeholder 
outreach program, is not intended to be all inclusive, but is presented 
to facilitate public comment on the scope of the EIS. Additions to or 
deletions from this list may occur as a result of the scoping process. 
The issues include:
    (1) Atmospheric Resources: potential air quality impacts resulting 
from air emissions during current and future operation of Northside 
Generating Station (e.g., effects of ground-level concentrations of 
criteria pollutants, and trace metals including mercury, on surrounding 
residential areas and the Timucuan Preserve (a National Park Service 
Class II ecological and historic preserve adjacent to the western edge 
of the Northside Generating Station); potential effects of greenhouse 
gas emissions on global climate change;
    (2) Water Resources and Aquatic Ecology: potential effects on 
surface water and groundwater resources consumed and discharged; 
potential effects on estuarine salt marsh ecosystems and aquatic biota 
resulting from withdrawing and discharging cooling water from the St. 
Johns River (e.g., thermal discharge, entrainment or impingement of 
fish and invertebrate species);
    (3) Infrastructure and Land Use: potential effects resulting from 
the transport of coal, petroleum coke, and limestone required for the 
proposed project, including the development of land for infrastructure, 
storage, or waste disposal; affected resource areas including land 
(e.g., existing shoreline and wetlands), utilities, and

[[Page 60892]]

transportation routes (e.g., train traffic to supply coal);
    (4) Solid Waste: pollution prevention and waste management 
practices, including solid waste impacts, caused by the generation, 
treatment, transport, storage, and disposal of solid wastes;
    (5) Construction: impacts associated with noise, traffic patterns, 
and construction-related emissions;
    (6) Visual: impacts associated with a new stack that is taller than 
existing structures at Northside Generating Station;
    (7) Floodplains: potential impacts (e.g., impeding floodwaters, re-
directing floodwaters, on-site and off-site property damage) of siting 
new buildings and infrastructure within floodplain and hurricane storm 
surge areas;
    (8) Wetlands: potential reduction of wetlands due to new 
construction (e.g., construction associated with feedstock transport 
infrastructure);
    (9) Community Impacts: impacts on public safety related to fire and 
emergency vehicle access to the Northside community of Jacksonville; 
impacts to local traffic patterns resulting from rail traffic; 
socioeconomic impacts on public services and infrastructure (e.g., 
police protection, schools, and utilities); noise associated with 
project operation; environmental justice with respect to the 
surrounding community; and
    (10) Cumulative effects that result from the incremental impacts of 
the proposed project when added to other past, present, and reasonably 
foreseeable future actions (e.g., incremental discharge of cooling 
water affecting aquatic biota).

Public Scoping Process

    To ensure that the full range of issues related to this proposal 
are addressed, DOE will conduct an open process to define the scope of 
the EIS. The public scoping period will run until December 31, 1997. 
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 the 
alternatives that should be analyzed.
    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 December 31, 1997 (see ADDRESSES).
    In addition, a public scoping meeting to be conducted by DOE will 
be held in the In-Plant Conference Room at the Northside Generating 
Station on December 3, 1997, at 7 p.m. The address of the Northside 
Generating Station is 4377 Heckscher Drive, Jacksonville, Florida. DOE 
requests that anyone who wishes to speak at this public scoping meeting 
contact Dr. Jan Wachter, either by phone, fax, computer, or in writing 
(see ADDRESSES in this Notice). Individuals who do not make advance 
arrangements to speak may register at the meeting and will be given the 
opportunity to speak after all previously scheduled speakers have made 
their presentations. Speakers who wish to make presentations longer 
than five minutes should indicate the length of time desired in their 
request. Depending on the number of speakers, it may be necessary to 
limit speakers to five minute presentations initially, with the 
opportunity for additional presentation as time permits. Speakers can 
also provide additional written information to supplement their 
presentations. Oral and written comments will be given equal weight.
    DOE will begin the meeting with an overview of the proposed CFB 
combustor project. A presiding officer will be designated by DOE 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 to clarify their statements to ensure that DOE fully 
understands the 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, D.C., this 6th day of November, 1997.
Peter N. Brush,
Acting Assistant Secretary, Environment, Safety and Health.
[FR Doc. 97-29890 Filed 11-12-97; 8:45 am]
BILLING CODE 6450-01-P