[Federal Register Volume 68, Number 69 (Thursday, April 10, 2003)]
[Notices]
[Pages 17608-17611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8837]



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DEPARTMENT OF ENERGY


Notice of Intent To Prepare an Environmental Impact Statement for 
the Gilberton Coal-to-Clean Fuels and Power Project, Gilberton, PA

AGENCY: Department of Energy.

ACTION: Notice of intent.

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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to 
prepare an Environmental Impact Statement (EIS) pursuant to the 
National Environmental Policy Act (NEPA), the Council on Environmental 
Quality (CEQ) NEPA regulations (40 CFR parts 1500-1508), and the DOE 
NEPA regulations (10 CFR part 1021), to assess the potential 
environmental impacts of a proposed project by WMPI PTY, LLC, to 
design, construct, and operate a demonstration plant near Gilberton, 
Schuylkill County, Pennsylvania. The proposed Gilberton Coal-to-Clean 
Fuels and Power Project, selected under the Clean Coal Power Initiative 
competitive solicitation, would produce electricity, clean hydrocarbon 
liquids, and steam from coal waste that exists in legacy piles from old 
mining practices. The proposed project would be the first commercial-
scale demonstration of coal waste gasification and Fischer-Tropsch (F-
T) synthesis of liquid hydrocarbon fuels in the United States. The 
proposed project would involve construction and operation of a plant to 
produce about 5,000 barrels-per-day of ultra-clean liquid hydrocarbon 
fuels and approximately 41 MW (megawatts) of electricity for the local 
electrical grid. The quantity of feed material for the plant could be 
up to approximately 4,700 dry tons-per-day of coal waste from prior and 
current anthracite mining. An estimated 300 million tons of this coal 
waste exists throughout Pennsylvania. The EIS will evaluate the 
proposed project and reasonable alternatives.
    The EIS will help DOE decide whether to provide 16 percent 
(approximately $100 million as a repayable loan) of the total estimated 
funding of $612 million for the proposed project. The purpose of this 
Notice of Intent is to inform the public about the proposed project; 
invite public participation in the EIS process; announce the plans for 
a public scoping meeting and explain the EIS scoping process; and 
solicit public comments for consideration in establishing the proposed 
scope and content of the EIS.

DATES: To ensure that all of the issues related to this proposal are 
addressed, DOE invites comments on the proposed scope and content of 
the EIS from all interested parties. Comments must be received by May 
19, 2003, to ensure consideration. Late comments will be considered to 
the extent practicable. In addition to receiving comments in writing 
and by telephone (see ADDRESSES below), 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 D.H.H. Lengel Middle 
School, 1541 West Laurel Boulevard, Pottsville, PA, on May 5, 2003, 
beginning at 7 p.m. (see Public Scoping Process). The public is invited 
to an informal session at this location beginning at 4 p.m. to learn 
more about the proposed action.
    Displays and other forms of information about the proposed agency 
action and the demonstration plant will be available, and DOE personnel 
will be present at the informal session to discuss the proposed project 
and the EIS process.

ADDRESSES: Written comments on the proposed EIS scope and requests to 
participate in the public scoping meeting should be addressed to the 
NEPA Document Manager for the Gilberton Coal-to-Clean Fuels and Power 
Project: Mr. Lloyd Lorenzi, National Energy Technology Laboratory, U.S. 
Department of Energy, P.O. Box 10940, Pittsburgh, PA 15236-0940.
    Individuals who would like to otherwise participate in the public 
scoping process should contact Mr. Lloyd Lorenzi directly by telephone: 
412-386-6159; toll free number: 1-800-276-9851; fax: 412-386-4604; or 
electronic mail: [email protected].

FOR FURTHER INFORMATION, CONTACT: For information regarding the 
Gilberton Coal-to-Clean Fuels and Power Project or to receive a copy of 
the draft EIS for review when it is issued, contact Mr. Lloyd Lorenzi 
as described above. Those seeking general information on the DOE NEPA 
process, contact: Ms. Carol M. Borgstrom, Director, Office of NEPA 
Policy and Compliance (EH-42), U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC 20585-0119. Telephone: (202) 
586-4600. Facsimile: (202) 586-7031, or leave a toll-free message at 1-
800-472-2756.

SUPPLEMENTARY INFORMATION:

Background and Need for Agency Action

    Since the early 1970s, DOE and its predecessor agencies have 
pursued research and development programs that include long-term, high-
risk activities that support the development of innovative concepts for 
a wide variety of coal technologies through the proof-of-concept stage. 
However, the availability of a technology at the proof-of-concept stage 
is not sufficient to ensure continued development and subsequent 
commercialization. Before any technology can be considered seriously 
for commercialization, it must be demonstrated. The financial risk 
associated with technology demonstration is, in general, too high for 
the private sector to assume in the absence of strong incentives. The 
Clean Coal Power Initiative (CCPI) was established in 2002 as a 
government/industry partnership to implement the President's National 
Energy Policy recommendation to increase investment in clean coal 
technology. This recommendation addresses a national challenge of 
ensuring the reliability of electric supply while simultaneously 
protecting the environment.
    The goal of the CCPI program is to accelerate commercial deployment 
of advanced coal technologies that provide the United States with 
clean, reliable, and affordable energy. Through cooperative agreements 
established pursuant to the CCPI program, DOE would accelerate 
deployment of innovative technologies to meet near-term energy and 
environmental goals; to reduce technological risk to the business 
community to an acceptable level; and to provide private sector 
incentives required for continued activity in innovative research and 
development directed at providing solutions to long-range energy supply 
problems.

Proposed Action

    The proposed action is for DOE to provide, through a cooperative 
agreement with WMPI, financial assistance for the proposed Gilberton 
Coal-to-Clean Fuels and Power Project (hereafter termed the ``Gilberton 
Project''). The Gilberton Project would be designed for long-term 
commercial operation following completion of an approximately 27-month 
demonstration period under a 6-year cooperative agreement with DOE, and 
would cost a total of approximately $612 million; DOE's share would be 
approximately $100 million (16%) in the form of a repayable loan.
    The Gilberton Project would result in design, construction, and 
operation of a new plant to co-produce approximately 41 MW of 
electricity for export to the local grid at extremely high 
environmental performance, about 5,000 barrels-per-day of high quality, 
ultra-clean liquid hydrocarbon products, and

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steam near Gilberton, Schuylkill County, Pennsylvania.
    The liquid hydrocarbon products would include clean diesel fuel and 
naphtha. The new plant would use four major technology systems: (1) 
Gasification technology from Shell, which would be particularly 
suitable for processing the high ash (40%), low cost, anthracite coal 
waste that would provide the primary feed to the plant. The 
gasification process would produce raw synthesis gas consisting 
primarily of carbon monoxide and hydrogen; (2) raw synthesis gas 
treatment and cleaning technology systems to remove solid particulate 
matter and gaseous contaminants to trace concentrations; (3) indirect 
liquefaction for converting cleaned synthesis gas into synthetic 
hydrocarbon liquids using Fischer-Tropsch (F-T) technology from SASOL 
Technology, Ltd., and (4) combustion of cleaned, unconverted synthesis 
gas in a gas turbine/combined cycle power plant to produce electricity 
and steam.
    The Gilberton Project would be located on an approximately 50-acre 
site near Gilberton, PA, north of Interstate 81 and east of 
Pennsylvania State Highway 61, off Morea Road. The site for the 
Gilberton Project would be adjacent to the eastern boundary of the 
existing 80 MW Gilberton Power Plant, which has been operating 
continuously since 1986 using circulating fluidized-bed combustion 
technology to process anthracite coal waste. Site preparation would 
require grading, clearing of vegetation, and addition of infrastructure 
improvements, such as roads, fencing, and drainage. Construction 
preparations would include installation of concrete piers and 
foundations for the plant equipment and structures.
    The primary feed material for the Gilberton Project would be up to 
approximately 4,700 dry tons-per-day of anthracite coal waste, which is 
abundant locally in legacy waste piles from old mining practices. These 
anthracite tailings, which are potential sources of soil and water 
contamination, would be reclaimed for the Gilberton Project from the 
surrounding area, although the plant would also be capable of 
processing feed containing a blend of anthracite waste with petroleum 
coke, other coals, or biomass.
    Air separation would be used to produce a high purity oxygen stream 
for the Shell gasification process. The anthracite waste, combined with 
about 400 tons-per-day of a fluxing agent such as limestone to assist 
with maintaining ash in a molten form, would be processed through a 
Shell gasifier to produce a raw synthesis gas that would be cleaned to 
produce approximately 200 million standard cubic-feet-per-day blend of 
primarily hydrogen and carbon monoxide. The mineral content of the 
anthracite waste and the fluxing agent fed to the Shell gasifier would 
produce about 2,000 tons-per-day of molten slag and 160 tons-per-day of 
collected dry particulate that could be used as construction materials.
    Cleaning of gas from the Shell gasifier would be achieved using a 
combination of initial quenching to remove any entrained molten slag, 
filtration to remove dry particulate, scrubbing to remove any residual 
solid particles and alkali salts, catalytic removal of sulfur 
compounds, and treatment in a Rectisol unit to remove carbon dioxide. 
The gas cleaning processes would remove impurities and produce a carbon 
dioxide stream that could be used for future sequestration if economics 
permit, although sequestration is not part of the proposed project.
    The cleaned synthesis gas would be processed through a low-
temperature F-T unit and downstream product treatment units to produce 
about 5,000 barrels-per-day of ultra-clean diesel fuel and naphtha, 
which would be virtually free of sulfur, nitrogen, and aromatic 
compounds and superior in both end-use and environmental properties 
compared with liquid hydrocarbon products produced from petroleum 
refining. Operations could be altered to change the distribution of 
products, including kerosene that would service specialty jet fuel 
markets, and to produce alcohols and liquefied petroleum gas. The F-T 
liquid products would be readily marketable to the refining industry. 
Diesel product from F-T synthesis possesses a high Cetane value and has 
demonstrated significantly reduced engine emissions of particulate 
matter, nitrogen oxides, hydrocarbons, and carbon monoxide, while 
meeting all current fuel specifications and the expected future (2006) 
Environmental Protection Agency specification for low sulfur fuels. 
Naphtha product can either be readily upgraded to a high-octane, clean 
reformulated gasoline or used as an on-board, sulfur-free feed to a 
reformer to produce hydrogen for fuel-cell-powered vehicle 
applications.
    Unconverted, cleaned synthesis gas from the F-T unit would be 
combusted in a gas turbine/combined-cycle power plant to produce 
electricity for the Gilberton Project and for export to the local power 
grid. High pressure and medium pressure steam produced in the plant 
would be used to produce additional power using steam turbo-generators. 
Excess steam from the power plant system would be marketed to local 
customers. Other potentially marketable byproducts from the plant would 
include elemental sulfur and a vitrified material resembling coarse 
sand that could be used in the construction and building industries.
    Wastewater, including contaminated runoff from the project site, 
would be handled using a combination of storm water retention, 
wastewater treatment, oil recovery, biological treatment and solids 
removal, and disposal. Water treatments would include equalization, API 
separator treatment for oil removal and recovery, dissolved air 
flotation for additional oil removal, and biological treatment.
    Construction of the proposed plant would be expected to require 
approximately 30 months. Plant start-up, system and feedstock testing, 
and long-term performance and reliability demonstration under the 
cooperative agreement with DOE would require approximately 27 months, 
after which the plant could continue in commercial operation.
    Successful demonstration of technology in the Gilberton Project 
would generate opportunities for a broad range of commercial 
applications, especially in coal producing and consuming regions of the 
United States. Commercial applications would result in substantial 
socioeconomic benefits to the coal regions, including direct and 
indirect job stimulation and the related benefits of enhanced 
productivity and tax revenues; environmental benefits of abandoned mine 
land reclamation as coal waste is converted into high value products; 
and increasing energy independence.

Alternatives

    NEPA requires that agencies evaluate the reasonable alternatives to 
the proposed action in an EIS. The purpose for agency action determines 
the range of reasonable alternatives.
    The Clean Coal Power Initiative (CCPI) was established to help 
implement the President's National Energy Policy (NEP) recommendation 
to increase investment in clean coal technology by addressing national 
challenges of ensuring the reliability of domestic electric and energy 
supplies while simultaneously protecting the environment. The CCPI 
program was structured to achieve NEP goals by promoting private sector 
initiatives to invest in demonstrations of advanced technologies that 
could be widely deployed commercially to ensure that the United States 
has clean, reliable, and affordable energy. Private sector investments 
and deployment of energy

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systems in the United States places DOE in a much more limited role 
than if the Federal government were the owner and operator of the 
energy systems. In the latter situation, DOE would be responsible for a 
comprehensive review of reasonable alternatives for siting the system. 
However, in dealing with applicants under the CCPI solicitation, the 
scope of alternatives is necessarily more restricted because DOE must 
focus on alternative ways to accomplish its purpose that reflect both 
the application before it and the functions that DOE plays in the 
decisional process. In such cases DOE must give substantial 
consideration to the applicant's needs in establishing a project's 
reasonable alternatives.
    The range of reasonable options to be considered in the EIS for the 
proposed Gilberton Project is determined in accordance with the overall 
NEPA strategy. Because of DOE's limited role of providing cost-shared 
funding for the proposed Gilberton Project, DOE currently plans to give 
primary emphasis to the proposed action and the no-action alternative. 
Under the no-action alternative, DOE would not provide partial funding 
for the design, construction, and operation of the project.
    In the absence of DOE funding, the Gilberton Project probably would 
not be constructed. Alternatives considered by WMPI, in developing the 
proposal for the Gilberton Project, including alternative sites and 
technologies for the proposed project also will be presented in the 
EIS. DOE will consider other reasonable alternatives that may be 
suggested during the public scoping period.
    Under the proposed action, project activities would include 
equipment design and fabrication, process engineering, plant permitting 
and construction, and testing and demonstration of the technology. DOE 
plans to complete the EIS within 15 months following publication of 
this Notice of Intent and to subsequently issue a Record of Decision. 
Upon completing the demonstration effort for DOE, WMPI could continue 
commercial operation of the plant constructed under the Gilberton 
Project.

Preliminary Identification of Environmental Issues

    The following environmental issues have been tentatively identified 
for analysis in the EIS. This list, which was developed from analyses 
of the proposed technology, the scope of the proposed project, and 
similar projects, and which is presented to facilitate public comment 
on the planned scope of the EIS, is neither intended to be all-
inclusive nor a predetermined set of potential impacts. Additions to or 
deletions from this list may occur as a result of the public scoping 
process.
    The environmental issues include:
    (1) Atmospheric resources: Potential air quality impacts resulting 
from emissions during construction and operation of the proposed 
Gilberton Project, including odor impacts;
    (2) Water usage: Potential effects on surface and groundwater 
resources, including impacts from withdrawals of groundwater and mine 
pool water from the Susquehanna River and Delaware River watersheds;
    (3) Water quality: Potential impacts resulting from wastewater 
treatment and discharge, from water usage, and from reclaiming 
abandoned anthracite waste;
    (4) Infrastructure and land use, including potential environmental 
and socioeconomic effects resulting from: Plant construction; delivery 
of feed materials; recovery of coal waste and mine pool water; steam 
and heat distribution; electric power generation and transmission; 
product hydrocarbon liquids transportation, distribution, and use; 
measures to prevent soil erosion and degradation; and site restoration;
    (5) Solid Waste: Pollution prevention and waste management, 
including, ash, slag, waste water treatment facility sludge;
    (6) Noise: Potential impacts resulting from construction and 
operation of the proposed plant and from transportation of feed 
materials and plant products;
    (7) Construction: Potential impacts associated with traffic 
patterns, construction-related emissions, and involvement of 
floodplains and wetlands;
    (8) Safety and health impacts, including construction-related 
safety, process safety, and management of chemicals and catalysts;
    (9) Ecological: Potential on-site and off-site impacts to 
vegetation, terrestrial wildlife, aquatic wildlife, threatened and 
endangered species, and ecologically sensitive habitats;
    (10) Community impacts, including potential impacts from local 
traffic patterns, socioeconomic impacts on public services and 
infrastructure, and environmental justice;
    (11) Visual impacts associated with plant structures and plant 
operations;
    (12) Reclamation impacts: Potential impacts resulting from recovery 
of coal waste from disposal and reclamation sites;
    (13) Cumulative effects that result from the incremental impacts of 
the proposed project when added to the other past, present, and 
reasonably foreseeable future projects, including the existing 80 MW 
Gilberton power plant;
    (14) Connected actions, including processing of gasifier slag into 
aggregate for use in construction applications, use of heat and energy 
from the plant, and both processing and use of liquid hydrocarbon 
products;
    (15) Compliance with regulatory requirements and environmental 
permitting; and
    (16) Environmental monitoring.

Public Scoping Process

    To ensure that all 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 end on May 19, 2003. Interested agencies, 
organizations, and the general public are encouraged to submit comments 
or suggestions concerning the content of the EIS, issues and impacts to 
be addressed in the EIS, and alternatives that should be considered. 
Scoping comments should identify specific issues or topics that the EIS 
should address in order to assist DOE in identifying significant 
issues. Written, e-mailed, or faxed comments should be communicated by 
May 19, 2003 (see ADDRESSES).
    DOE will conduct a public scoping meeting at D.H.H. Lengel Middle 
School, 1541 West Laurel Boulevard, in Pottsville, PA, on May 5, 2003, 
at 7 p.m. In addition, the public is invited to an informal session at 
this location beginning at 4 p.m., to learn more about the proposed 
action. Displays and other information about the proposed agency action 
and the demonstration plant will be available, and DOE personnel will 
be present to discuss the proposed action and the NEPA process.
    The formal scoping meeting will begin on May 5, 2003, at 7 p.m. DOE 
asks people who wish to speak at this public scoping meeting to contact 
Mr. Lloyd Lorenzi, either by phone, fax, computer, or in writing (see 
ADDRESSES in this notice).
    People who do not arrange in advance to speak may register at the 
meeting (preferably at the beginning of the meeting) and will be 
provided opportunities to speak following previously scheduled 
speakers. Speakers who need more than five minutes should indicate the 
length of time desired in their request. Depending on the number of 
speakers, DOE may need to limit speakers to five-minutes initially but 
will provide additional opportunities as time permits. Speakers may 
also provide written materials to supplement their presentations. Oral

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and written comments will be given equal consideration.
    DOE will begin the meeting with an overview of the proposed 
Gilberton Project. The meeting will not be conducted as an evidentiary 
hearing, and speakers will not be cross-examined. However, speakers may 
be asked questions to help ensure that DOE fully understands their 
comments or suggestions. A presiding officer will establish the order 
of speakers and provide any additional procedures necessary to conduct 
the meeting.

    Issued in Washington, DC, on this 4th day of April, 2003.
Beverly A. Cook,
Assistant Secretary, Environment, Safety and Health.
[FR Doc. 03-8837 Filed 4-9-03; 8:45 am]
BILLING CODE 6450-01-P