[Federal Register Volume 63, Number 194 (Wednesday, October 7, 1998)]
[Notices]
[Pages 53885-53888]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26874]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY


Intent To Prepare an Environmental Impact Statement for the 
Proposed Minnesota Agri-Power Plant and Associated Facilities

AGENCY: Department of Energy.

ACTION: Notice of intent to prepare an environmental impact statement.

-----------------------------------------------------------------------

SUMMARY: In accordance with the National Environmental Policy Act of 
1969 (NEPA), and Minnesota Statutes, Ch 116D, the U.S. Department of 
Energy (DOE) and the Minnesota Environmental Quality Board [MEQB, a 
Minnesota State agency] announce their intent to prepare a joint 
Environmental Impact Statement (EIS) regarding a proposal by the 
Minnesota Valley Alfalfa Producers (MnVAP) to construct and operate a 
75-103 megawatt biomass

[[Page 53886]]

fueled gasifier and electric generating facility, known as the 
Minnesota Agri-Power Plant (MAPP), and associated transmission lines 
and alfalfa processing facilities. The plant would be fueled with 
alfalfa stems grown and processed primarily in Minnesota and South 
Dakota. Two sites (preferred and alternative) for the power plant have 
been proposed by MnVAP near Granite Falls, Minnesota. Depending upon 
the site selected for the power plant, 115 kilovolt (kV) transmission 
lines would run between two and six miles to an existing substation 
owned by Northern States Power Company in Granite Falls. Alfalfa 
processing facilities for separating the alfalfa leaves from stems 
would be located throughout the growing region when the locations of 
growers are established.
    DOE proposes to partially fund the MAPP project, through a 
cooperative agreement with MnVAP for a renewable energy technology 
commercialization project under various provisions of the Energy Policy 
Act of 1992 (Pub. L. 102-486). Under the applicable Minnesota Statutes 
and Department of Energy NEPA regulations (10 CFR Part 1021), the 
proposed action requires an EIS. In the spirit of the regulations of 
the Council on Environmental Quality (CEQ) implementing NEPA (40 CFR 
1501.5(b)) and Minnesota Rules Part 4410.3900, DOE and MEQB will be 
``joint lead agencies,'' to satisfy the requirements of NEPA and the 
Minnesota Environmental Policy Act (MEPA). The document will be titled 
Minnesota Agri-Power Plant Project Environmental Impact Statement, DOE-
EIS/0300/MAPP-P-1.
    In this notice, DOE and MEQB announce their intentions to prepare 
an EIS and hold public scoping meetings for the proposed project. The 
scoping process will include notification of the public and Federal, 
State, Tribal, and local agencies of the proposed action, and 
identification by the public and agencies of issues and reasonable 
alternatives to be considered in the EIS.

DATES: The public scoping period begins with the publication of this 
Notice of Intent and will continue until December 9, 1998. The purpose 
of this Notice is to encourage public involvement in the EIS process 
and to solicit public comments on the proposed scope and content of the 
EIS. DOE and MEQB will hold public scoping meetings at the following 
locations and times:

----------------------------------------------------------------------------------------------------------------
             Location                     Address                                 Times
----------------------------------------------------------------------------------------------------------------
St Paul, Minnesota...............  Minnesota History     7-9 PM, Monday, November 16, 1998.
                                    Center, 345 West
                                    Kellogg Boulevard.
Granite Falls, Minnesota.........  American Legion 60    7-9 PM, Tuesday, November 17, 1998.
                                    6th Street.
Ada, Minnesota...................  Ada Elementary        7-9 PM, Wednesday, November 18, 1998.
                                    School Gym, 209 6th
                                    Street West.
Redfield, South Dakota...........  Leo's Cafe, 602 N.    7-9 PM, Thursday, November 19, 1998.
                                    Main.
----------------------------------------------------------------------------------------------------------------

    Both oral and written comments will be accepted at the meetings. 
Individuals wishing to schedule a specific time to speak should call 
Ms. Deborah Turner at the number listed below or the 24-hour toll-free 
information line, 1-800-267-9330.
    In addition to the public meetings, comments can be submitted by 
calling 1-800-267-9330, or by sending them to Ms. Deborah Turner at the 
address listed below. All comments on the scope of the EIS will be 
shared with the MEQB and should be submitted by December 9, 1998, to 
ensure consideration. Any scoping comments submitted after December 9, 
1998, will be considered to the extent practicable.

ADDRESSES: Please direct comments or suggestions on the scope of the 
EIS, requests to speak at public scoping meetings, requests for special 
arrangements to enable participation at scoping meetings (e.g., 
interpreter for the hearing impaired), and questions concerning the 
project to: Ms. Deborah Turner, Document Manager, U.S. Department of 
Energy, Golden Field Office 1617 Cole Blvd., Golden, CO 80401, Phone: 
303-275-4746 or 1-800-267-9330, Fax: 303-275-4788, E-mail: 
[email protected].

FOR FURTHER INFORMATION CONTACT: To request information about this EIS, 
or to be placed on the EIS document distribution list, please call the 
24-hour toll-free information line at 1-800-267-9330. Please provide 
your name, complete address, and phone number, if you are requesting to 
be placed on the document distribution list so that documents can be 
mailed as expeditiously as possible.
    For general information on the DOE's NEPA process, please contact: 
Ms. Carol Borgstrom, Director, Office of NEPA Policy and Assistance, 
EH-42, U.S. Department of Energy, 1000 Independence Avenue, SW, 
Washington, DC 20585-0119, Phone: 202-586-4600 or leave a message at 1-
800-472-2756.
    For information regarding the MEQB process please contact: Mr. John 
Wachtler, Energy Facility Siting Project Director, Minnesota 
Environmental Quality Board, 300 Centennial Building, St. Paul, 
Minnesota 55155, Phone: 651-296-4095, Fax: 651-292-3698, E-mail: 
[email protected].
    For information regarding MnVAP, please contact: Mr. David L. 
Wilbur, General Manager, Minnesota Valley Alfalfa Producers, 681 
Prentice Street, Granite Falls, Minnesota 56241, Phone: 320-564-2400, 
Fax: 320-564-2451.

SUPPLEMENTARY INFORMATION: MnVAP is a farmer-owned cooperative, 
incorporated in 1994 to increase the value of farm products grown in 
and near the State of Minnesota. In response to a joint Department of 
Energy and U.S. Department of Agriculture, Solicitation for Financial 
Assistance for Biomass Power for Rural Development (DE-PS36-95GO10052), 
MnVAP submitted a proposal to establish Minnesota Agri-Power as a 
limited liability corporation, with MnVAP as the majority stock holder, 
for the purposes of siting, constructing, and operating a 75-103 
megawatt power plant fueled with gasified alfalfa stems. DOE selected 
the MnVAP project as one of several promising efforts to meet the goals 
of the Energy Policy Act of 1992 to develop and ultimately 
commercialize biomass energy systems for the purposes of positively 
affecting global climate change and the revitalization of rural 
America. (The U.S. Department of Agriculture has declined to 
participate as a cooperating agency in preparing this EIS). Under the 
terms of the solicitation, MnVAP and DOE would share the financial 
burden of taking a biomass gasification technology from the 
demonstration phase to full commercial production.
    The proposed project would also serve in part to meet the Minnesota 
``Biomass Power Mandate,'' Minnesota State Law, 216B.2424, which 
requires that:

    A public utility * * * that operates a nuclear-powered electric 
generating plant within this state must construct and operate, 
purchase, or contract to construct and

[[Page 53887]]

operate (1) by December 31, 1998, 50 megawatts of electric energy 
installed capacity generated by farm-grown closed-loop biomass 
scheduled to be operational by December 31, 2001; and (2) by 
December 31, 1998, an additional 75 megawatts of installed capacity 
so generated scheduled to be operational by December 31, 2002.

    Northern States Power, the sole producer of nuclear power in 
Minnesota, has entered into a power purchase agreement with MnVAP to 
buy power if the proposed plant becomes operational under the governing 
provisions of the Minnesota Statutes.
    MEQB is responsible under the MEPA (Minnesota Statutes, Ch 116D and 
Minnesota Rules, Part 4410) and the Minnesota Power Plant Siting Act 
(Minnesota Statutes, Ch 116.51 to 116.69, and Minnesota Rules, Part 
4400) for reviewing the proposed action in response to an Application 
for Site Designation and Certificate of Site Compatibility submitted by 
MnVAP on August 12, 1998, and accepted by MEQB on September 30, 1998. 
Copies of the Application are available to the public by contacting DOE 
or MEQB.
    Proposed Action: The MAPP project would use an ``integrated 
gasification combined-cycle'' or IGCC system. The gasifier would be 
sized to process approximately 1,100 tons of alfalfa stems per day 
which is approximately 750 million British thermal units per hour. In 
the gasifier, the alfalfa stems would be rapidly heated to gasification 
temperatures at approximately 1,650 degrees Fahrenheit while in contact 
with air and steam at a pressure of 300 pounds per square inch gage. 
The gas would then be cooled to 1,020 degrees Fahrenheit and cleaned to 
meet air quality standards and requirements for the combustion turbine. 
Since the biomass gasification technology proposed for MAPP has yet to 
be successfully demonstrated at full commercial scale, DOE is proposing 
to fund $44 million (up to 30%) of the cost of construction of the 
plant and associated facilities (approximately $140 to $200 million) as 
part of the Department's mission to support biomass technology 
commercialization.
    The combustion turbine would be designed to operate efficiently on 
the low energy biomass fuel produced by the gasifier unit with a gross 
electric power output of 66 megawatts. The alfalfa gas would be 
supplemented with natural gas as needed. The usable heat remaining in 
hot combustion gases leaving the combustion turbine would be recovered 
in the form of super-heated, high pressure steam. The steam would be 
used to produce an additional 37 megawatts of gross electrical output 
in a steam turbine generator. The gross output of the power plant could 
be as high as 103 megawatts.
    Construction of the proposed facility would involve extension of 
existing water, gas and electric utilities to either of two alternative 
sites. Depending on the site, the proposed facility would either 
utilize existing city sanitary capacity or an onsite septic system. 
Facility cooling may either use conventional mechanical draft cooling 
towers or air cooling systems. Make-up water for cooling would be 
obtained from the Minnesota River. Blowdown discharges would go into 
the Minnesota River after meeting required discharge permit levels. 
Construction of the facility would require approximately two years and 
involve 100-300 workers onsite, while operations would require 
approximately 25 full-time employees.
    In addition, the proposed action will require the siting, 
construction, and operation of four or five alfalfa processing 
facilities. Construction of these alfalfa processing facilities is 
likely even if the MAPP is not built. These alfalfa processing 
facilities would be strategically located in MnVAP's alfalfa production 
area, which encompasses western Minnesota and eastern South Dakota, in 
order to minimize total transportation, storage, and handling costs. 
The exact location of the new processing facilities is not known at 
this time and will not be decided on the basis of this EIS. The siting 
and permitting of such facilities would be the subject of environmental 
review consistent with State requirements when their locations are 
determined. However, for the purpose of evaluating transportation 
impacts to and from the proposed MAPP, the operation of processing 
facilities at regional, non-site-specific locations will be evaluated 
in this EIS.
    Alternative Sites: A preferred and an alternative site near Granite 
Falls, Minnesota for the power plant have been proposed by MnVAP. The 
preferred site is located in the Granite Falls Industrial Park (Section 
35 & 36, Township 116 & Range 39); the alternative site is located 
approximately 3.5 miles south of Granite Falls (Section 20, Township 
115 & Range 39).
    No Action Alternative: Under CEQ and DOE NEPA regulations, and 
MEPA, the No Action alternative must be analyzed to provide a basis for 
comparison to the proposed action. Under the No Action alternative in 
this EIS, it will be assumed, for the comparative purposes set forth in 
Federal and State regulations, that the proposed MAPP would not be 
constructed. However, even under the No Action alternative, MnVAP's 
development of alfalfa production and processing capability would 
continue because such action is not dependent upon a decision to 
proceed with funding the MAPP project.
    Preliminary Identification of EIS Issues: DOE and MEQB have 
tentatively identified the following issues for analysis in the EIS. 
This list is neither intended to be all inclusive nor is it a 
predetermination of potential environmental impacts. The list is 
presented to facilitate comments on the scope of the EIS. Additions to 
or deletions from the list may occur as a result of the public scoping 
process.
     Comparison of alternative sites;
     Potential impacts of air emissions from the power plant 
and the alfalfa processing facilities;
     Potential impacts resulting from the use of Minnesota 
River or ground water;
     Potential traffic impacts resulting from alfalfa shipments 
to processing facilities and fuel transport to the power plant;
     Potential socioeconomic impacts, especially from the 
construction work force, which may exceed local housing capacity;
     Potential socioeconomic impacts from long-term operations;
     Potential impacts on cultural, historical and 
archaeological resources;
     Potential disproportionately high and adverse impacts on 
minority or low income populations;
     Potential impacts from ash application onto agricultural 
fields or disposal in landfills;
     Potential impacts on local terrestrial and aquatic flora 
and fauna, especially endangered species, from facility construction 
and operations;
     Potential impacts resulting from modification of existing 
infrastructure;
     Potential noise and visual impacts on neighbors of the 
proposed MAPP, transmission lines, and alfalfa processing plants;
     Potential agricultural impacts, such as erosion and 
fertilizer demand, resulting from introduction of alfalfa into existing 
crop rotations.
    Scoping Meetings: DOE and MEQB personnel will be available at the 
scoping meetings to explain the proposal to the public and answer 
questions. DOE and MEQB will designate a facilitator for the scoping 
meetings. At the opening of each meeting, the facilitator will 
establish the order of speakers and will announce any additional 
procedures necessary for conducting the meetings. To ensure that all 
persons wishing to make a presentation are given the opportunity, each 
speaker may be limited to 5-

[[Page 53888]]

minutes, except for public officials and representatives of groups, who 
will be allotted ten minutes each. DOE encourages those providing oral 
comments to also submit them in writing. Comment cards will also be 
available for those who prefer to submit their comments in written 
form. Speakers may be asked clarifying questions, but the scoping 
meetings will not be conducted as evidentiary hearings.
    Upon close of the scoping period, DOE and MEQB will review all 
comments and prepare a draft Scope Statement that will identify the 
proposed scope of the EIS and be issued to all interested parties. The 
issuance of the draft Scope Statement will be accompanied by a notice 
of an MEQB/DOE public meeting on the Statement at which the Agencies 
will finalize the Scope Statement. The final Scope Statement will be 
distributed to interested parties.
    DOE and MEQB will make the final Scope Statement, transcripts of 
the scoping meetings, the draft EIS and final EIS when issued, and 
project-related materials available for public review in the following 
reading rooms:

U.S. Department of Energy, Freedom of Information Public Reading Room, 
Forrestal Building, Room 1E-190, 1000 Independence Avenue, SW., 
Washington, DC 20585, Telephone: (202) 586-3142
U.S. Department of Energy, Golden Field Office, Public Reading Room, 
15013 Denver West Parkway, Golden, CO 80401, Telephone: (303) 384-6565
Region 6, Willmar Public Library, 410 Fifth Street, SW., Willmar, MN 
56201-3298, Telephone: (320) 235-3162
Minnesota Office of Strategic and Long Range Planning Library, 658 
Cedar Street, 300 Centennial Office Building, St. Paul, MN 55155, 
Telephone: (651) 296-3985
Legislative Reference Library, 645 State Office Building, St. Paul, MN 
55155, Telephone: (651) 296-3398
Granite Falls Public Library, 155 Seventh Avenue, Granite Falls, MN 
56241, Telephone: (320) 564-3738

    NEPA/MEPA Process: The EIS will be prepared in accordance with the 
requirements of the CEQ's NEPA implementing regulations (40 CFR Parts 
1500-1508), DOE's NEPA implementing procedures (10 CFR Part 1021), and 
Minnesota's MEPA and implementing rules (Minnesota Statutes Ch 116D and 
Minnesota Rules, Part 4410).
    After the completion of the public scoping process, a draft EIS 
will be prepared. Interested persons, the public, and agencies will be 
notified when the draft is available through a Notice of Availability 
published in the Federal Register, the EQB Monitor, and local media. 
The draft EIS will be distributed to individuals and agencies that 
request a copy and will also be placed in the reading rooms listed 
above. A 45-day comment period on the draft EIS is planned, and public 
hearings to receive comments will be held approximately four weeks 
after distribution of the draft EIS. In addition, under the Minnesota 
Power Plant Siting Act procedures, a Minnesota administrative law judge 
will hold a formal hearing on the Application for Site Designation and 
Certificate of Site Compatibility, which will include a review of 
information in the draft EIS. The draft EIS public comment hearings and 
the formal siting hearing may be combined. The locations and times for 
comment hearings will be included in the Notice of Availability. The 
draft EIS is scheduled to be issued during spring 1999.
    The final EIS, which will consider the public comments received on 
the draft EIS, is scheduled to be published during summer 1999. DOE and 
MEQB will coordinate their decision processes, but each agency will 
document its decision according to its specific governing statutes. No 
sooner than 30 days after the U.S. Environmental Protection Agency's 
Notice of Availability of the final EIS is published in the Federal 
Register, DOE will issue its Record of Decision and publish it in the 
Federal Register. Minnesota State Statutes require that the MEQB issue 
a decision as to the adequacy of the EIS and if it is deemed adequate, 
issue a Site Designation and Certificate of Site Compatibility. MEQB 
will issue its decisions in the EQB Monitor. It is currently planned to 
issue simultaneous DOE/MEQB decision documents during summer/fall 1999.

    Signed in St. Paul, Minnesota, this 30th day of September 1998.
Rod Sando,
Chairman, MEQB, State of Minnesota.

    Signed in Washington, DC, this 1st day of October 1998.
Peter N. Brush,
Acting Assistant Secretary, Environment, Safety and Health, U.S. 
Department of Energy.
[FR Doc. 98-26874 Filed 10-6-98; 8:45 am]
BILLING CODE 6450-01-P