[Federal Register Volume 74, Number 31 (Wednesday, February 18, 2009)]
[Notices]
[Pages 7596-7598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-3411]


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DEPARTMENT OF ENERGY


Notice of Intent To Prepare an Environmental Impact Statement for 
a Proposed Federal Loan Guarantee To Support Construction of the TX 
Energy, LLC, Industrial Gasification Facility Near Beaumont, TX

AGENCY: Department of Energy.

ACTION: Notice of Intent to Prepare an Environmental Impact Statement 
and Conduct a Public Scoping Meeting, and Notice of Proposed Floodplain 
and Wetland Involvement.

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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to 
prepare an environmental impact statement (EIS) pursuant to the 
National Environmental Policy Act (NEPA), the Council on Environmental 
Quality (CEQ) NEPA regulations (40 CFR Parts 1500-1508), and the DOE 
NEPA implementing procedures (10 CFR Part 1021) to assess the potential 
environmental impacts for its proposed action of issuing a Federal loan 
guarantee to TX Energy, LLC (TXE) (DOE/EIS-0412). TXE submitted an 
application to DOE under the Federal loan guarantee program pursuant to 
the Energy Policy Act of 2005 (EPAct 2005) to support construction of 
the TXE Industrial Gasification Facility near Beaumont, Texas (the 
Facility).\1\
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    \1\ The amount requested for the loan guarantee is not being 
disclosed at this time because it is business sensitive. Moreover, 
should DOE approve a loan guarantee, the amount may differ from the 
original request.
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    TXE is a subsidiary of Eastman Chemical Company (Eastman) and 
proposes to develop the Facility on a 417-acre parcel of land. The 
Facility would utilize gasification technology with petroleum coke 
(petcoke) as the feedstock to produce synthesis gas (a mixture of 
carbon monoxide (CO) and hydrogen (H2) commonly referred to 
as syngas) and molten sulfur. The majority of the carbon dioxide 
(CO2) produced from clean-up of the raw syngas would be 
captured and transferred from the Facility via a newly constructed 
pipeline spur (no longer than 2 miles) to a new pipeline for use in 
enhanced oil recovery (EOR); CO2 not captured would be 
vented. A portion of the syngas would be processed further to produce 
pure H2, the majority of which would be sold via a newly 
constructed pipeline. The balance of the syngas and a portion of the 
H2 would be piped to a nearby, existing plant via two 
separate newly constructed 1.5-mile pipelines for processing to 
methanol and ammonia that would be sold or used by Eastman, the plant 
owner.
    The EIS will evaluate the potential impacts of TXE's proposed 
project and the range of reasonable alternatives. The purpose of this 
Notice of Intent is to inform the public about DOE's proposed action; 
invite public participation in the EIS process; announce plans for a 
public scoping meeting; and solicit public comments for consideration 
in establishing the scope and content of the EIS. DOE invites those 
agencies with jurisdiction by law or special expertise to be 
cooperating agencies.
    The site of the proposed Facility contains floodplains and 
wetlands, and the footprint of the TXE proposed Facility would affect 
approximately 52 acres of wetlands and potentially some floodplains. 
Therefore, DOE hereby gives notice that it will include in the EIS a 
floodplain and wetland assessment prepared in accordance with the DOE 
Regulations for Compliance with Floodplain and Wetland Environmental 
Review Requirements (10 CFR Part 1022).

DATES: To ensure that all of the issues related to this proposal are 
addressed, DOE invites comments on the proposed scope and content of 
the EIS from all interested parties. Comments must be postmarked, e-
mailed, or faxed by March 20, 2009 to ensure consideration. Late 
comments will be considered to the extent practicable. In addition to 
receiving written comments (see ADDRESSES below), DOE will conduct a 
public scoping meeting in which government agencies, private-sector 
organizations, and the general public are invited to provide comments 
or suggestions with regard to the alternatives and potential impacts to 
be considered in the EIS. The public scoping meeting will be held from 
5 p.m. to 9 p.m. on March 5, 2009, at the Beaumont Civic Center 
Complex, 701 Main St., Beaumont, Texas (see Public Scoping Process 
below).

ADDRESSES: Written comments on the proposed EIS scope and questions 
regarding the public scoping meeting should be addressed to: Sharon R. 
Thomas, Loan Guarantee Program Office (CF-1.3), U.S. Department of 
Energy, 1000 Independence Avenue, SW., Washington, DC 20585. Electronic 
submission of comments is encouraged due to processing time required 
for regular mail. Comments can be submitted electronically to Ms. 
Thomas by fax: 202-586-4052; or electronic mail: 
[email protected].

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
the TXE project or this EIS or to receive a copy of the draft EIS when 
it is issued, contact Ms. Thomas by telephone: 202-586-5335; toll-free 
number: 1-800-832-0885; or electronic mail: [email protected]. 
For general information on the DOE NEPA process, please contact: Ms. 
Carol M. Borgstrom, Director, Office of NEPA Policy and Compliance (GC-
20), U.S. Department of Energy, 1000 Independence Avenue, SW., 
Washington, DC 20585; telephone: 202-586-4600; facsimile: 202-586-7031; 
electronic mail: [email protected]; or leave a toll-free message at 1-
800-472-2756.

SUPPLEMENTARY INFORMATION:

[[Page 7597]]

Background

    EPAct 2005 established a Federal loan guarantee program for 
eligible energy projects that employ innovative technologies. Title 
XVII of EPAct 2005 authorizes the Secretary of Energy to make loan 
guarantees for a variety of types of projects, including those that 
``avoid, reduce, or sequester air pollutants or anthropogenic emissions 
of greenhouse gases; and employ new or significantly improved 
technologies as compared to commercial technologies in service in the 
United States at the time the guarantee is issued.'' The two principal 
goals of the loan guarantee program are to encourage commercial use in 
the United States of new or significantly improved energy-related 
technologies and to achieve substantial environmental benefits.

Purpose and Need for Agency Action

    TXE submitted an application to DOE for a loan guarantee on 
November 18, 2008, to support construction of the Facility. The purpose 
and need for agency action is to comply with DOE's mandate under EPAct 
2005 by identifying eligible projects that meet the goals of the Act 
and therefore to determine whether to issue a loan guarantee to TXE to 
support construction of the proposed Facility.

Proposed Action

    DOE's proposed action is to issue a loan guarantee to TXE to 
support construction of the TXE proposed Facility. The Facility would 
utilize gasification technology with petcoke as the feedstock to 
produce syngas (a mixture of CO and H2) and molten sulfur. 
The Facility is being designed to handle the following inputs: 2.4 
million tons of petcoke per year; 120,000 tons of fluxant (a blend of 
sand and stone) per year; 2.4 million tons of oxygen per year; and 7 
billion gallons of water per year. Although not proposed by TXE, coal 
could also be used as an alternate feedstock. The oxygen required for 
gasification would be provided by air separation units (ASUs) adjacent 
to the Facility and owned by another entity. DOE plans to analyze 
construction and operation of the ASUs in the EIS as a connected 
action.
    The Facility is being designed to produce 150 billion standard 
cubic feet of syngas per year. Molten sulfur byproduct (150,000 tons 
per year) would be sold. A portion of the syngas would be used to 
produce 261 million standard cubic feet of H2 per year. The 
majority of the H2 would be sold for use in the petroleum 
refining industry and transferred via a newly constructed pipeline. 
Cleaning of the raw syngas would be done using Rectisol[supreg] Acid 
Gas Removal technology, licensed from Lurgi, and would produce 5.4 
million tons of CO2 per year. TXE anticipates that less than 
12 percent of the CO2 produced annually under normal 
operations would be vented and not captured. The captured 
CO2 would be transferred via a newly constructed pipeline 
spur (no longer than 2 miles) to a new pipeline for use in EOR.
    The balance of the syngas and a portion of the H2 would 
be piped via two newly constructed, separate 1.5-mile pipelines to an 
existing plant owned by Eastman for processing to methanol and ammonia, 
which would be sold or used by Eastman. DOE plans to analyze the 
modification and operation of this plant, which is adjacent to the 
site, as a connected action. The Facility would also include an onsite 
wastewater treatment plant. Solid waste (slag) from the process would 
be either sold as a commercial product (e.g., an aggregate substitute) 
or transported by truck for disposal at a non-hazardous, solid waste 
landfill. The construction work force would peak at a range of 2000 to 
2500 workers. The Facility would be operated and maintained by a staff 
of approximately 250 employees.
    The site of the proposed Facility consists of a 417-acre parcel of 
land located at 6275 Highway 347 in Jefferson County, Texas, adjacent 
to the southeast city limits of Beaumont. Construction laydown and 
parking areas are estimated to use approximately 150 acres. This 
includes 100 acres leased from the owner of the adjacent facility to 
the south and an additional 50 acres of land located at and adjacent to 
the existing Eastman plant.
    The site includes a combination of previously developed and 
undeveloped parcels and is bound by transportation land use (Ohio 
Street, TX-347W, U.S. 69/287/97, and Martin Luther King Jr. Parkway (US 
380)) to the west and southwest and the Neches River to the east and 
northeast. The Neches River forms the eastern site boundary. The site 
is topographically flat and consists primarily of urban land cover 
resulting from historical industrial land uses. Land use around the 
perimeter of the site consists of early-successional and invasive 
herbaceous, scrub shrub, and tree species; wetland complexes; and open 
water habitat associated with the Neches River. The vicinity of the 
subject property consists of industrial, bulk storage, agricultural, 
commercial, and residential uses. The region is characterized by land 
uses traditionally associated with industrial chemical production 
(e.g., petroleum products, methanol, sulfur products), barge traffic, 
ports, and associated off-loading facilities.
    The site of the proposed Facility contains floodplains and 
wetlands, and the footprint of the TXE proposed Facility would affect 
approximately 52 acres of wetlands and potentially some floodplains. 
These wetlands include a combination of emergent marsh, scrub shrub, 
and bottomland hardwood. The eastern and northeastern portions of the 
site (the areas nearest the Neches River) are located within the 100-
year floodplain. DOE will prepare a floodplain and wetland assessment 
in accordance with its regulations at 10 CFR Part 1022 and include the 
assessment in the EIS.

Alternatives

    In determining the range of reasonable alternatives to be 
considered in the EIS for the proposed TXE Facility, DOE identified the 
reasonable alternatives that would satisfy the underlying purpose and 
need for agency action. DOE currently plans to analyze in detail the 
project as proposed by TXE; subalternatives for coal as a feedstock, 
solid waste disposal, and CO2 disposition; and the no action 
alternative. DOE will also analyze mitigation measures as appropriate.
    DOE will describe TXE's site selection process in the EIS; however, 
DOE does not plan to analyze in detail alternative sites considered by 
TXE in its site selection process. Key factors considered by TXE in 
selecting the site included the region's strong petroleum refining 
base, which provides a source for petcoke, a market for H2, 
and near-term EOR opportunities; the nearby plant that would use the 
syngas product for the production of methanol and ammonia; and the 
proximity to infrastructure and surface water. On this basis, DOE 
believes at this time that there are no other reasonable siting 
alternatives.
    Under the no action alternative, DOE would not provide the loan 
guarantee for the TXE project. This option would not contribute to the 
Federal loan guarantee program goals to make loan guarantees for energy 
projects that ``avoid, reduce, or sequester air pollutants or 
anthropogenic emissions of greenhouse gases; and employ new or 
significantly improved technologies.''

Preliminary Identification of Environmental Issues

    The following environmental resource areas have been tentatively 
identified for consideration in the EIS. This list is neither intended 
to be all-inclusive nor

[[Page 7598]]

a predetermined set of potential environmental impacts. DOE invites 
comments on whether other resource areas or potential issues should be 
considered in the EIS:
     Air quality
     Greenhouse gas emissions and climate change
     Energy use and production
     Water resources, including groundwater and surface waters
     Wetlands and floodplains
     Geological resources
     Ecological resources, including threatened and endangered 
species and species of special concern
     Cultural resources, including historic structures and 
properties; sites of religious and cultural significance to tribes; and 
archaeological resources
     Land use
     Visual resources and aesthetics
     Transportation and traffic
     Noise and vibration
     Hazardous materials and solid waste management
     Human health and safety
     Accidents and terrorism
     Socioeconomics, including impacts to community services
     Environmental justice

Public Scoping Process

    To ensure that all issues related to DOE's proposed action are 
addressed, DOE seeks public input to define the scope of the EIS. The 
public scoping period will begin with publication of the NOI and end on 
March 20, 2009. Interested government agencies, private-sector 
organizations, and the general public are encouraged to submit comments 
concerning the content of the EIS, issues and impacts to be addressed 
in the EIS, and alternatives that should be considered. Scoping 
comments should clearly describe specific issues or topics that the EIS 
should address to assist DOE in identifying significant issues. 
Comments must be postmarked, e-mailed, or faxed by March 20, 2009 to 
ensure consideration. (See ADDRESSES). Late comments will be considered 
to the extent practicable. DOE invites those agencies with jurisdiction 
by law or special expertise to be cooperating agencies.
    A public scoping meeting will be held on March 5, 2009, from 5 p.m. 
to 9 p.m. at the Beaumont Civic Center Complex, 701 Main St, Beaumont, 
Texas. Members of the public and representatives of groups and Federal, 
state, local, and tribal agencies are invited to attend. An informal 
session at this location will begin at 5 p.m., followed by the 
opportunity to present oral comments at 7 p.m. Displays and other forms 
of information about the proposed agency action, the EIS process, and 
the TXE proposed Facility will be available, with DOE personnel 
available for discussions with attendees. DOE requests that anyone who 
wishes to present oral comments at the meeting contact Ms. Sharon R. 
Thomas by phone, fax, or e-mail (see ADDRESSES). Individuals who do not 
make advance arrangements to speak may register at the meeting. 
Speakers who need more than five minutes should indicate the length of 
time desired in their request. DOE may need to limit speakers to five 
minutes initially, but will provide additional opportunities as time 
permits. Written comments regarding the scoping process can also be 
submitted to DOE officials at the scoping meeting.

    Issued in Washington, DC, on February 12, 2009.
Steve Isakowitz,
Chief Financial Officer, Office of the Chief Financial Officer.
 [FR Doc. E9-3411 Filed 2-17-09; 8:45 am]
BILLING CODE 6450-01-P