[Federal Register Volume 74, Number 81 (Wednesday, April 29, 2009)]
[Notices]
[Pages 19543-19546]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9716]


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DEPARTMENT OF ENERGY


Amended Notice of Intent To Modify the Scope of the Environmental 
Impact Statement for the Abengoa Biorefinery Project Near Hugoton, KS

AGENCY: Office of Energy Efficiency and Renewable Energy, U.S. 
Department of Energy.

ACTION: Amended notice of intent.

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SUMMARY: The U.S. Department of Energy (DOE or the Department) is 
providing this Amended Notice of Intent to announce its intent to 
modify the scope of an ongoing environmental impact statement in which 
DOE is assessing the potential environmental impacts of a project 
proposed by Abengoa Bioenergy Biomass of Kansas, LLC (ABBK), to 
construct and operate a biomass-to-ethanol and energy facility near 
Hugoton, Kansas (Abengoa Biorefinery Project). DOE issued its original 
Notice of Intent on Aug. 25, 2008, for the proposed construction and 
operation of a biomass-to-ethanol and energy facility that was planned 
to be

[[Page 19544]]

integrated with a traditional grain-to-ethanol production facility on 
the same site.

DATES: The public scoping period begins today, and will end on May 29, 
2009. DOE will consider all comments received or postmarked by May 29, 
2009. DOE will consider late comments to the extent practicable. DOE 
will hold a public scoping meeting in Memorial Hall at the Stevens 
County Courthouse, 200 East 6th St., Hugoton, Kansas 67951-2606, on May 
19, 2009, from 6 p.m. to 8 p.m. DOE will give equal weight to written 
and oral comments.

ADDRESSES: Please direct written comments on the scope of the EIS to 
Ms. Kristin Kerwin at the U.S. Department of Energy, Golden Field 
Office, 1617 Cole Boulevard, Golden, Colorado, 80401. You also may 
contact Ms. Kerwin by telephone at 303-275-4968, by facsimile at 303-
275-4790, or by e-mail at [email protected]. Please label 
envelopes and the subject line of e-mails with the heading ``Abengoa 
EIS Scoping Comments.''

FOR FURTHER INFORMATION CONTACT: For information on the proposed 
project, information on how to comment, or to receive a copy of the 
Draft EIS when it is issued, contact Ms. Kristin Kerwin by any of the 
means described above under the ``ADDRESSES'' section.
    For further information on the DOE Office of Energy Efficiency and 
Renewable Energy, Integrated Biorefinery Program, contact: Ms. Valri 
Lightner, Biomass Program Manager (Acting), U.S. Department of Energy, 
1000 Independence Avenue, SW., EE-2E, Washington, DC 20585; telephone: 
202-586-0937; facsimile: 202-586-1640; e-mail: [email protected].
    For further information on DOE's Loan Guarantee Program, contact: 
Mr. Daniel Tobin, Loan Guarantee Officer, U.S. Department of Energy, 
1000 Independence Avenue, SW., CF-1.3, Washington, DC 20585; telephone: 
202-586-1940; facsimile: 202-586-4052; e-mail: [email protected].
    For further information on the U.S. Department of Agriculture Rural 
Business-Cooperative Service Biorefinery Assistance Program contact: 
Energy Branch, Attention: Biorefinery Assistance Program, 1400 
Independence Avenue, SW., Mail Stop 3225, Washington, DC 20250-3225; 
telephone: 202-720-1400.
    For general information regarding the DOE National Environmental 
Policy Act (NEPA) process contact: Ms. Carol M. Borgstrom, Director, 
Office of NEPA Policy and Compliance, U.S. Department of Energy, 1000 
Independence Avenue, SW., GC-20, Washington, DC 20585; e-mail 
[email protected]; telephone 202-586-4600; or leave a message at 1-
800-472-2756.

SUPPLEMENTARY INFORMATION:
    Background: In September 2007, DOE granted an initial award to ABBK 
to advance the conceptual design, initiate the permitting process, and 
support an environmental review under NEPA for ABBK's proposed biomass-
to-ethanol and energy facility near Hugoton, Kansas, pursuant to 
section 932 of EPAct 2005. DOE requires completion of the design, 
permitting, and environmental review obligations prior to deciding 
whether to co-fund the construction and operation phase of the project. 
The total anticipated cost of this initial work was $37.5 million of 
which DOE funded 40 percent ($15 million) and ABBK provided 60 percent 
($22.5 million). For additional information on section 932 of EPAct 
2005 and details regarding DOE's competitive solicitation process for 
commercial-scale integrated biorefineries, refer to the original NOI, 
(73 FR 50001 (Aug. 25, 2008)).
    In DOE's original NOI, the Department announced its intent to 
prepare an EIS for the Abengoa Biorefinery Project. DOE indicated that 
it was proposing to negotiate a second financial assistance agreement 
for approximately $61 million for the final design, construction, and 
operation of the biomass-to-ethanol and energy facility. This facility 
was planned to be integrated with a traditional grain-to-ethanol 
production facility, and the grain-to-ethanol facility was to be 
constructed and operated using private funds.
    In January 2009, because of economic viability concerns and 
anticipated market conditions, ABBK notified DOE that it no longer was 
considering the construction and operation of the traditional grain-to-
ethanol facility, and, further, was proposing to modify its biomass-to-
ethanol and energy production facility by including a steam-driven 
turbine to generate electricity that would be supplied to the regional 
power grid. In addition, ABBK stated its intent to solicit loan 
guarantees from the DOE Loan Guarantee Program pursuant to Title XVII 
of EPAct 2005 and from the USDA RBC Biorefinery Assistance Program 
pursuant to section 9003 of the 2008 Farm Bill.
    EPAct 2005 (Title XVII) authorizes the Department to issue loan 
guarantees to eligible projects 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.'' ABBK submitted a DOE loan guarantee application 
on February 26, 2009.
    Section 9003 of the 2008 Farm Bill is intended to assist in the 
development and construction of commercial-scale biorefineries and the 
retrofitting of existing facilities using eligible technology for the 
development of advanced biofuels. ABBK has not submitted an application 
to the USDA RBC Biorefinery Assistance Program for a loan guarantee 
under section 9003 of the 2008 Farm Bill. After the receipt and review 
of an application, the RBC may decide to provide a loan guarantee to 
ABBK. The RBC would only do so if the application is for an eligible 
project that provides for the development, construction, and 
retrofitting of commercial biorefineries using eligible technology.
    Previous Public Scoping Comments: The Department received 14 
scoping comments during the public scoping period that ended on October 
9, 2008, and received no comments after that date. Commenters expressed 
support for the proposed biorefinery project, suggested there would be 
no adverse environmental impacts from constructing and operating the 
biorefinery, requested information, or asked that DOE include certain 
analyses in the EIS. For example, the U.S. Department of Agriculture 
Natural Resources Conservation Service requested an analysis of the 
potential impacts from biomass production and harvesting on soils, 
surface and groundwater quality and quantity, air quality, and upland 
wildlife habitat. DOE will address these comments, as well as those 
submitted during the public comment period for this Amended NOI, in the 
Abengoa Biorefinery EIS.
    Proposed Action: DOE is proposing to provide cost-shared Federal 
funding, only potentially, to issue a loan guarantee for the Abengoa 
Biorefinery Project. DOE would provide approximately $61 million in 
Federal funding pursuant to section 932 of EPAct 2005 to ABBK for the 
final design, construction, and initial operation of a commercial-scale 
biomass-to-ethanol and energy production facility near Hugoton, Kansas. 
The total estimated cost (beyond the initial award) for final design, 
construction, and initial operation of the facility with the new scope 
is approximately $290 million.

[[Page 19545]]

DOE may also provide a loan guarantee pursuant to Title XVII of EPAct 
2005.\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, that amount may differ from the 
original request.
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    The biomass-to-ethanol facility would use an enzymatic hydrolysis 
process for converting biomass feedstocks to ethanol and co-products, 
and a gasification technology to convert biomass to synthesis gas. The 
synthesis gas would be used to fire a gas-powered boiler to generate 
steam that ultimately would be used to produce electricity. Biomass 
feedstock would be supplied from waste products from the production of 
crops produced near the facility, and may include sorghum stubble, corn 
stover, switchgrass, and other opportunity feedstocks that are 
available.
    The estimated biomass usage (dry metric tons per day) and output of 
ethanol (million gallons per year) for the biomass-to-ethanol facility, 
the project site features and location, and infrastructure requirements 
would remain the same as outlined in the original NOI. However, 
electricity produced by the steam-powered turbine would be sold to 
Pioneer Electric Cooperative, Inc., for supply to the regional power 
grid. As discussed in the original NOI, the proposed project would 
require a new transmission line to bring electricity to the site. The 
power produced by the steam-powered turbine would be supplied back to 
the regional power grid via this same new transmission line. The line 
would run from the proposed project location to the east side of Road 
11, then several miles north to the existing substation.
    In addition to processing an estimated 400 dry metric tons per day 
of biomass for the biomass-to-ethanol facility (to produce 
approximately 12 million gallons per year of denatured ethanol), the 
synthesis gas production facility would process an estimated 300 dry 
metric tons per day of biomass, and the electric generation portion of 
the facility would process and estimated 275 to 700 dry metric tons per 
day of biomass. The entire facility would process approximately 975 to 
1400 dry metric tons per day of biomass.
    Alternatives: The Department proposes to analyze the following 
alternatives in detail in the EIS: (1) The Abengoa Biorefinery Project 
as proposed by ABBK; (2) the Abengoa Biorefinery Project as proposed by 
ABBK without supplying electricity to the regional power grid; and (3) 
the No Action alternative, which assumes that none of the proposed 
facilities is constructed.
    In addition, DOE plans to evaluate ranges of options for 
implementing the proposed project, including onsite versus offsite 
storage of feedstock; wet (unprotected or uncovered) versus dry 
(protected or covered) storage of feedstock; and smaller or larger 
boiler sizes. DOE will also explore potential mitigation measures that 
could be implemented for any of the alternatives.
    Preliminary Identification of Environmental Issues: One purpose of 
this Amended NOI is to solicit comments and suggestions for DOE to 
consider in preparing the EIS. As background for public comment, the 
Department tentatively has identified the following list of potential 
environmental issues for analysis. This list identifies resource areas 
that may be affected by construction and operation of the proposed 
Abengoa Biorefinery Project and that DOE plans to analyze in the EIS. 
This list is not intended to be all-inclusive or to imply any 
predetermination of impacts. DOE welcomes comments on these resource 
areas and other suggestions on the scope of the EIS.
    1. Water resources: potential impacts on surface and groundwater 
resources and water quality, including effects of water usage, 
wastewater management, and storm water management.
    2. Wetlands: potential impacts on apparent isolated wetlands at the 
project site.
    3. Utility and transportation infrastructure: requirements for 
delivery of feedstocks and process chemicals to the facility and 
distribution of products from the facility to the marketplace.
    4. Land use: changes in land use, including the proposed site and 
the geographical area that will provide feedstock to the proposed 
facility.
    5. Local and regional air quality: changes in air quality.
    6. Cultural resources: including potential effects on historic and 
archaeological resources and American Indian tribal resources.
    7. Ecological resources: terrestrial and aquatic plants and animals 
including state and Federally-listed threatened and endangered species 
and other protected resources.
    8. Health and safety: including construction-related safety and 
process-related safety associated with handling and management of 
process chemicals.
    9. Noise: potential impacts resulting from construction and 
operation of the proposed plant and from transportation of feedstocks, 
process materials, and plant byproducts.
    10. Socioeconomics: potential socioeconomic impacts of plant 
construction and operation, including effects on public services and 
infrastructure resulting from the influx of construction personnel and 
plant operating staff, and environmental justice issues.
    11. Aesthetic and scenic resources: potential visual effects 
associated with plant structures and operations.
    12. Cumulative impacts that result from the incremental impacts of 
the proposed plant when added to the other past, present, and 
reasonably foreseeable future activities. This may include potential 
impacts resulting from widespread replication of this type of 
technology, and from traditional grain-to-ethanol production 
facilities.
    13. Global climate change: potential greenhouse gas emissions that 
may result from this project.
    Public Scoping Process: Interested agencies, organizations, 
American Indian tribes, and members of the public are encouraged to 
submit comments or suggestions concerning the proposed content of the 
Abengoa Biorefinery EIS, including the range of reasonable alternatives 
and the potential environmental impacts. DOE invites written and oral 
comments and suggestions at the public scoping meeting. The public 
scoping period will be open until May 29, 2009.
    Please send written comments to Ms. Kristin Kerwin, as described 
above under the ``ADDRESSES'' section. The public scoping meeting will 
be held at the location, date, and time listed in the ``DATES'' and 
``ADDRESSES'' sections of this Amended NOI. This meeting will be 
informal. A presiding officer designated by DOE will establish 
procedures governing the conduct of the meeting, and DOE will provide 
an overview of the proposed Abengoa Biorefinery Project. DOE will not 
conduct the meeting as an evidentiary hearing, and those who choose to 
make statements will not be cross-examined by other speakers. However, 
DOE representatives may ask speakers questions to help ensure that DOE 
understands their comments or suggestions.
    For advanced registration to speak at the meeting, please contact 
Ms. Kristin Kerwin via telephone, mail, fax, or e-mail as listed in the 
``ADDRESSES'' section. For those persons who wish to speak but do not 
register in advance, DOE will provide an opportunity to speak after 
previously scheduled speakers have spoken, as time allows. To ensure 
that everyone who wishes to speak has a chance to do so, DOE will allot 
at least five minutes to each speaker. Persons wishing to speak on 
behalf of an organization should identify that organization when they 
request to speak.

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    DOE will retain a transcript of the public scoping meeting and will 
make the transcript available to the public for review via the Golden 
Field Office Online Public Reading Room at: http://www.eere.energy.gov/golden/Reading_Room.aspx. DOE will make available additional copies of 
the public scoping meeting transcripts during business hours at the 
following location: Stevens County Library, 500 S. Monroe Street, 
Hugoton, Kansas 67951.
    Schedule: DOE expects to issue the Draft EIS in summer 2009 and 
will announce the availability of the Draft EIS in the Federal Register 
and local media. DOE will consider comments on the Draft EIS in 
preparing the Final EIS.
    Interested parties who do not wish to submit comments at this time, 
but who would like to receive a copy of the Draft EIS, should contact 
Kristin Kerwin, as provided in the ``ADDRESSES'' section of this 
notice.
    Other Agency Involvement: The Department has invited the U.S. 
Department of Agriculture to become a cooperating agency in the 
preparation of this EIS. DOE anticipates that the U.S. Department of 
Agriculture Rural Business-Cooperative Service will assist with the 
Department's review process and adopt the Abengoa Biorefinery EIS, to 
the extent practicable, to satisfy that agency's NEPA-related 
requirements and support its decisions under section 9003 of the 2008 
Farm Bill.

    Issued in Washington, DC, on April 22, 2009.
Steven G. Chalk,
Principal Deputy Assistant Secretary, Energy Efficiency and Renewable 
Energy.
[FR Doc. E9-9716 Filed 4-28-09; 8:45 am]
BILLING CODE 6450-01-P