[Federal Register Volume 74, Number 195 (Friday, October 9, 2009)]
[Notices]
[Pages 52228-52230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-24422]


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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 and Start-up 
of the Taylorville Energy Center in Taylorville, IL

AGENCY: Department of Energy, Loan Guarantee Program.

ACTION: Notice of intent to prepare an environmental impact statement 
and conduct a public scoping meeting.

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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 of 1969, as amended (NEPA), the 
Council on Environmental Quality (CEQ) NEPA regulations, and the DOE 
NEPA implementing procedures to assess the potential environmental 
impacts for its proposed action of issuing a Federal loan guarantee to 
Christian County Generation, L.L.C. (CCG) (DOE/EIS-0430). CCG submitted 
an application to DOE under the Federal loan guarantee program pursuant 
to the Energy Policy Act of 2005 (EPAct 2005) to support construction 
and start-up of the Taylorville Energy Center in Taylorville, Illinois 
(``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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    CCG is a limited liability company that is currently owned by 
Tenaska Taylorville, LLC, an affiliate of Tenaska, Inc., an Omaha, 
Nebraska-based power development company, and by MDL Holding Company, 
L.L.C. of Louisville, Kentucky. CCG proposes to develop the Facility on 
an 886-acre parcel of land. As proposed, the approximately 730 megawatt 
(gross) electric generation Facility would utilize integrated 
gasification combined-cycle technology to produce electricity from 
Illinois bituminous coal. Synthesis gas processing would also allow the 
separation and capture of carbon dioxide (CO2) and the 
manufacture of pipeline-quality Substitute Natural Gas (``SNG'' or 
``methane''). SNG would be used in a power block with two combustion 
turbines and one steam turbine. The Facility would be designed

[[Page 52229]]

such that surplus SNG can be transported offsite to an interstate 
pipeline for sale. The Facility would capture at least 50 percent of 
the CO2 and over 99 percent of the sulfur compounds that 
would otherwise be emitted. The CO2 stream would be 
compressed and delivered at the fenceline to another party for pipeline 
transport to enhanced oil recovery operations and geologic storage. CCG 
is also studying the feasibility of geologic storage of CO2 
in the vicinity of the site.
    The EIS will evaluate the potential impacts of the issuance of a 
DOE Loan Guarantee for CCG'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.

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 or 
emailed by November 9, 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 the vicinity of the proposed Facility at 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 
date, time, and location of the public scoping meeting will be 
announced in local news media and on the DOE Loan Guarantee Program's 
``NEPA Public Involvement'' Web site (http://www.lgprogram.energy.gov/NEPA-2.html) at least 15 days prior to the date of the meeting.

ADDRESSES: Public comments can be submitted electronically or by U.S. 
Mail. Written comments on the proposed EIS scope should be addressed 
to: Ms. Angela Colamaria, Loan Guarantee Program Office (CF-1.3), U.S. 
Department of Energy, 1000 Independence Avenue, SW., Washington, DC 
20585. Please submit one signed original paper copy. Electronic 
submission of comments is encouraged due to processing time required 
for regular mail. Comments can be submitted electronically by sending 
an email to: [email protected]. All electronic and written comments 
should reference Project No. DOE/EIS-0430.

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
this EIS, the public scoping meeting, or to receive a copy of the draft 
EIS when it is issued, contact Angela Colamaria by telephone: 202-287-
5387; toll-free number: 800-832-0885 ext. 75387; 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 800-472-2756.

SUPPLEMENTARY INFORMATION:

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.'' A principal goal 
of the loan guarantee program is to encourage commercial use in the 
United States of new or significantly improved energy-related 
technologies. DOE believes that accelerated commercial use of these new 
or improved technologies will help to sustain economic growth, yield 
environmental benefits, and produce a more stable and secure energy 
supply.

Purpose and Need for Agency Action

    CCG submitted a Part I application to DOE for a loan guarantee on 
December 19, 2008, and submitted a Part II application on March 23, 
2009. The purpose and need for agency action is to comply with DOE's 
mandate under Title XVII of EPAct 2005 by selecting eligible projects 
that meet the goals of the Act. DOE is using the NEPA process to assist 
in determining whether to issue a loan guarantee to CCG to support the 
proposed project.

Proposed Action

    DOE's proposed action is to issue a loan guarantee to CCG to 
support the construction and start-up of the Taylorville Energy Center 
in Taylorville, Illinois.
    The site of the proposed Facility consists of an 886-acre parcel of 
land located in Taylorville, Illinois. Of the 886 acres, CCG currently 
owns or controls via option agreements 713 acres, and is attempting to 
option approximately 173 additional, contiguous acres. The site and 
additional acreage to be acquired is bounded by County Road E1700N on 
the north, State Road 48 (and the Norfolk Southern Railroad) on the 
east, farmland on the south, and County Road N1400E on the west.
    As proposed, the Facility would manufacture pipeline quality SNG 
from Illinois bituminous coal and produce electricity utilizing 
integrated gasification combined-cycle technology. The Facility is 
expected to use 7,500 tons of coal per day (2.5 million tons of coal 
annually). The primary water supply would be municipal treated effluent 
from a local sanitary district.
    The Facility is expected to contribute 2 billion kilowatt-hours per 
year to the electric grid system. SNG would be used to fuel a power 
block with two combustion turbines and one steam turbine. The amount of 
SNG produced may exceed the requirements of the power block under 
certain operating conditions. The Facility would be designed such that 
surplus SNG can be transported offsite to an interstate pipeline for 
sale.
    The Facility would capture at least 50 percent of the 
CO2 and over 99 percent of the sulfur compounds that would 
otherwise be emitted. The CO2 stream would be compressed and 
delivered at the fenceline to another party for pipeline transport to 
enhanced oil recovery operations and geologic storage at a location to 
be determined by the off-taker. CCG is also studying the feasibility of 
geologic storage in the vicinity of the site using the Mt. Simon 
formation.
    Supporting infrastructure and facilities would include local access 
roads, rail interconnections, water supply and wastewater pipelines, 
CO2 pipelines, a natural gas pipeline, and a high voltage 
transmission line to connect the Facility to the electric grid system. 
Rail access to the site would be provided by construction of a rail 
connection to the Norfolk Southern Railroad east of the site. Coal may 
also be delivered by truck. Approximately 6 miles of County Road E1700N 
would be reconstructed and enhanced to 80,000 lbs. gross vehicle weight 
standards. DOE plans to analyze the impacts of construction and 
operation of the

[[Page 52230]]

supporting infrastructure and facilities in the EIS.
    The Facility would eliminate process wastewater entirely through 
use of water treatment, recycling, and zero liquid discharge systems. 
Solid waste (slag) and sulfur, by-products from the process, would be 
sold as a commercial product, disposed of onsite, or transported 
offsite for disposal at a non-hazardous, solid waste landfill. The 
construction work force would peak at up to 1,500 construction workers 
over a 4-year period. The Facility would be operated and maintained by 
a staff of approximately 145 employees and contractors.
    Coal gasification and electric generation components of the 
Facility would be constructed on approximately 70 acres of the site. 
The site is currently used for agriculture (row crops), is surrounded 
by farmland, and is zoned for industrial and agricultural use. The coal 
gasification and electric generation components of the Facility are 
entirely within property that is zoned for industrial use. In addition, 
several hundred acres of Prime Farmland within the 886-acre parcel 
could be affected by the construction of the Facility. Preliminary 
assessments indicate that the footprint of the proposed facility would 
not affect any wetlands or floodplains. In the event that further 
analysis indicates that wetlands or floodplains would be affected, 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 CCG 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 proposed by CCG and the no action alternative. DOE will also 
analyze design options available to CCG within the scope of the project 
(e.g., various methods for disposition of slag and sulfur and 
transportation of coal) and mitigation measures as appropriate.
    Under the no action alternative, DOE would not provide the loan 
guarantee for the CCG project and the project would not be constructed 
as part of the DOE loan guarantee program. 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 a predetermined set of potential environmental 
impacts:
     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.
    DOE invites comments on whether other resource areas or potential 
issues should be considered in the EIS.

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 
November 9, 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 or e-mailed by November 9, 2009 to ensure 
consideration. (See ADDRESSES above). 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 at a date, time, and location 
to be determined. Notice of this meeting will be provided in local news 
media and on the DOE Loan Guarantee Program's ``NEPA Public 
Involvement'' Web site (http://www.lgprogram.energy.gov/NEPA-2.html) at 
least 15 days prior to the date of the meeting. Members of the public 
and representatives of groups and Federal, State, local, and tribal 
agencies are invited to attend. The meeting will include both a formal 
opportunity to present oral comments and an informal session during 
which DOE and CCG personnel will be available for discussions with 
attendees. Displays and other forms of information about the proposed 
agency action, the EIS process, and the CCG proposed Facility will also 
be available for review. DOE requests that anyone who wishes to present 
oral comments at the meeting contact Ms. Colamaria by phone or e-mail 
(see ADDRESSES above). 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 October 6, 2009.
Steve Isakowitz,
Chief Financial Officer, Office of the Chief Financial Officer.
[FR Doc. E9-24422 Filed 10-8-09; 8:45 am]
BILLING CODE 6450-01-P