[Federal Register Volume 74, Number 217 (Thursday, November 12, 2009)]
[Notices]
[Pages 58265-58267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27166]


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

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 Indiana Gasification, LLC, Industrial Gasification Facility in 
Rockport, IN

AGENCY: Department of Energy, Loan Guarantee Program.

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

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

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 
Indiana Gasification, LLC (IG) (DOE/EIS-0429). IG 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 a coal to substitute natural gas (SNG) facility in 
Rockport, Indiana (the Facility).\1\ The Facility would utilize 
gasification technology with Illinois Basin coal as the feedstock to 
produce SNG. Other products from the gasification process would be 
sulfuric acid, argon, and electric power, all of which would be sold.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    The EIS will evaluate the potential impacts of the issuance of a 
DOE Loan Guarantee for IG's proposed project and the range of 
reasonable alternatives. The purpose of this Notice of Intent (NOI) is 
to inform the public about DOE's proposed action; invite public 
participation in the EIS process; announce plans for a public scoping 
meeting; solicit public comments for consideration in establishing the 
scope and content of the EIS; and provide notice of a proposed 
floodplain and wetlands assessment. 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 e-
mailed by December 14, 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 project 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: Mr. Doug Boren, 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 e-mail to: [email protected]. All electronic and written comments 
should reference Project No. DOE/EIS-0429.

FOR FURTHER INFORMATION CONTACT: To obtain additional information about 
this NOI, the public scoping meeting, or to receive a copy of the draft 
EIS when it is issued, contact Doug Boren by telephone: 202-287-5346; 
toll-free number: 800-832-0885 ext. 75346; 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-54), 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.'' 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. On 
September 22, 2008, the DOE Loan Guarantee Program Office issued a 
solicitation for coal based power generation and industrial 
gasification facilities. A portion of the funds made available in the 
solicitation come under the authority of the Consolidated 
Appropriations Act, 2008, P.L. 110-161, which provides loan guarantee 
support for advanced coal gasification projects. The proposed IG 
project qualifies under this provision of the loan guarantee authority.

Purpose and Need for Agency Action

    IG submitted an application to DOE for a loan guarantee in March 
2009, to support construction and start-up of the Facility. The purpose 
and need for agency action is to comply with DOE's mandate under EPAct 
2005 by identifying and providing loan

[[Page 58266]]

guarantees to eligible projects that meet the goals of the Act. DOE has 
determined that the IG project meets the two principal goals of the 
Act--encouraging commercial use of new or significantly improved 
energy-related technologies, and achieving substantial environmental 
benefits. The IG Project is expected to operate below the emission 
limits established in Title XVII of EPAct 2005 for sulfur dioxide, 
nitrogen oxides, particulate matter, and mercury.

Proposed Action

    DOE's proposed action is to issue a loan guarantee to IG to support 
construction and start-up of the proposed Facility. The Facility would 
utilize gasification technology with Illinois Basin coal as the 
feedstock to produce raw syngas that would be further processed to 
produce SNG. The Facility could handle up to approximately 12,600 tons 
of coal per day, delivered to the site by barge or rail, to produce up 
to approximately 153 million standard cubic feet of SNG per day. The 
SNG would be pipeline quality and could be transported from the 
Facility to the Midwestern Gas Transmission line (3 miles) and/or the 
ANR Pipeline (4.5 miles). Byproducts of the gasification process would 
be sulfuric acid, argon, and electric power, all of which would be 
sold.
    The Facility would employ a variety of technologies. The raw syngas 
(a mixture of carbon monoxide (CO) and hydrogen (H2)) would 
be produced using gasification technology, processed to remove sulfur 
compounds and carbon dioxide (CO2) and converted to SNG 
using methanation technology. Solid waste (slag) from the process would 
be 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 approximately 1,000 
workers. The Facility would be operated and maintained by a staff of 
approximately 200 employees.
    The Facility would be designed to be capable of capturing and 
compressing approximately 85-90 percent of the CO2 produced 
during the gasification process. IG intends to sell the CO2 
to a third party off taker for use in enhanced oil recovery. 
Construction of a pipeline would be necessary to transport the 
CO2. IG has an agreement with a potential third party off 
taker in the Gulf Coast region for the sale of its CO2. The 
third party off taker would be responsible for construction of a 
pipeline to transport the CO2 but a commitment from the off 
taker to construct such a pipeline does not exist at this time, and IG 
is not proposing to construct a CO2 pipeline as part of the 
project. In the event a CO2 pipeline is not constructed and 
no other reasonable alternative to sequester the CO2 is 
determined, then the CO2 produced during the gasification 
process would be released to the atmosphere.
    The site of the proposed IG Facility is within a 1,300-acre parcel 
of land located in Spencer County, Indiana. The land is partially 
within the corporate limits of the City of Rockport. The center of the 
City of Rockport is approximately 2.3 miles south of the site. The 
proposed Facility would utilize approximately 600 acres of the site. 
This would include approximately 200 acres for the main facilities; 200 
acres for the rail area, consisting of the railroad spur to be 
reactivated and a coal unloading and storage area; 70 to 80 acres for 
road and utility access corridors; 30 acres for an Ohio River barge 
terminal for the delivery of construction equipment and coal, water 
intakes, and cooling water discharge; and 100 acres for material lay 
down, storage and construction parking, including 40 to 80 acres for a 
process water well-field to facilitate the withdrawal of water from an 
aquifer at the site, if required. The remaining approximately 700 acres 
of the proposed project site was made subject to option by IG in order 
to provide alternative paths from the Ohio River to the Facility site, 
a source for fill material, wetland mitigation areas, and additional 
buffer.
    Supporting infrastructure and facilities would include local access 
roads, rail and barge access, water supply and wastewater pipelines, a 
potential connection to a CO2 pipeline, and a high voltage 
transmission line to connect the Facility to the electric grid system. 
DOE plans to analyze the impacts of construction and operation of the 
supporting infrastructure and facilities in the EIS.
    The site is topographically flat and land use in the vicinity of 
the proposed Facility site is mainly agriculture and undeveloped, with 
small developed areas to the south and east. Several hundred acres of 
the proposed project site are considered prime farmland and could be 
affected by the proposed project. Wetlands comprise about 18 percent of 
the 1,300-acre optioned property limits. Most of the wetlands are 
forested wetlands along drainages and former channels. IG expects that 
most of the wetlands onsite would be avoided and only a minimal amount 
of the wetlands onsite would be permanently lost as a result of this 
project. IG estimates 400 acres of the site would need to be raised 
from one to seven feet in order to elevate the plant site out of the 
100-year floodplain. As a result, 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, DOE identified alternatives that would satisfy 
the underlying purpose and need for agency action. DOE currently plans 
to analyze in detail the project as proposed by IG and the no action 
alternative. As appropriate, DOE will also analyze alternatives to 
portions of the project that lessen or avoid impacts to affected 
resources and mitigation measures.
    Under the no action alternative, DOE would not provide the loan 
guarantee for the IG project and the project would not be constructed 
as part of the DOE loan guarantee program.

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

[[Page 58267]]

period will begin with publication of this NOI and end on December 14, 
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 December 14, 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 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 IG personnel will be available for discussions with 
attendees. Displays and other forms of information about the proposed 
agency action, the EIS process, and the IG proposed Facility will also 
be available for review. DOE requests that anyone who wishes to present 
oral comments at the meeting contact Mr. Boren by phone or e-mail (see 
ADDRESSES above). Individuals who do not make advance arrangements to 
speak may register at the meeting. 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 November 6, 2009.
Steve Isakowitz,
Chief Financial Officer, Office of the Chief Financial Officer.
[FR Doc. E9-27166 Filed 11-10-09; 8:45 am]
BILLING CODE 6450-01-P