Record of Decision; Pinon Pine Power Project; Tracy Station, Nevada

DEPARTMENT OF ENERGY

Record of Decision; Pinon Pine Power Project; Tracy Station,

Nevada

AGENCY: Department of Energy.

ACTION: Record of Decision; Pinon Pine Power Project of the Clean Coal

Technology Demonstration Program at Tracy Power Station, Reno, Nevada.

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SUMMARY: The Department of Energy (Department) has decided to provide

approximately $135 million in cost-shared Federal funding as part of

the Clean Coal Technology Demonstration Program for the design,

construction, and operation of the Pinon Pine Power Project. It would

demonstrate integrated gasification combined-cycle technology with hot

gas clean-up at the Sierra Pacific Power Company's (Sierra Pacific)

Tracy Power Station near Reno, Nevada. A Mitigation Action Plan will be

prepared before initiation of any actions for which mitigation measures

have been committed. With the exception of the dry cooling option, all

practicable means of avoiding or minimizing environmental harm from the

preferred alternative have been adopted.

The Department prepared an Environmental Impact Statement (DOE/EIS-

0215) to assess the environmental impacts associated with the Pinon

Pine Power Project, a 104 megawatt gross generation demonstration

project at the Tracy Power Station, 17 miles east of Reno, Nevada. The

Department's participation in this project is to provide cost-shared

financial assistance under its Clean Coal Technology Demonstration

Program to Sierra Pacific for the development of an air-blown,

fluidized bed, integrated gasification combined-cycle demonstration

facility. Specifically, the Pinon Pine Power Project will receive cost-

shared (50 percent) financial assistance in the amount of $135 million

under the terms of the Clean Coal Technology Demonstration Program.

The Department has considered the proposal to provide cost-shared

financial assistance for the design, construction, and operation of

this integrated gasification combined-cycle demonstration project to be

a major Federal action subject to the provisions of the National

Environmental Policy Act and corresponding Department regulations (10

CFR Part 1021) and has determined that the appropriate level of

National Environmental Policy Act review was an Environmental Impact

Statement.

Following careful evaluation of the potential environmental

impacts, consideration of Clean Coal Technology Demonstration Program

goals and objectives, review and analysis of public comments, and

consultation with Federal and state agencies and Indian tribal

representatives, the Department issued the Final Environmental Impact

Statement for the Pinon Pine Power Project. A Notice of Availability

for the Final Environmental Impact Statement for the Pinon Pine Power

Project was published in the Federal Register (59 FR 49926) on

September 30, 1994.

The Department has determined that the congressionally-mandated

goals and objectives of demonstrating clean coal technologies would be

achieved through the construction and operation of this project, which

will demonstrate the integrated performance of coal gasification and

combined-cycle technologies. The Pinon Pine Power Project, successfully

demonstrated, will provide a promising technology ready for

commercialization in the 1990s. The project is expected to generate

sufficient data from design, construction, and operation to allow

private industry to further assess the potential for commercial

application of this technology to new or existing generating

facilities. No unacceptable adverse impacts are expected from the

construction or operation of the Pinon Pine Power Project.

Comments Received: The Department received three comments on the

Final Environmental Impact Statement. One commenter expressed support

for the project but noted concerns regarding the handling of coal with

a high sulfur content, the loss of the safety factor provided by the

two silo system of coal storage, water sources and usages, air

emissions, and the revised mitigation section. The Department believes

that these issues were adequately addressed in the Final Environmental

Impact Statement.

The Nevada Department of Transportation recommended that Sierra

Pacific provide active fog warning signs as a mitigation measure

because of the potential for increased fog occurrences. In addition,

they requested that Sierra Pacific install a fog and ice detection

system. The Department of Energy agrees with these recommendations and

has incorporated the suggested mitigation measures (installation of a

system that includes fog and ice detection and active warning

capabilities) into this Record of Decision.

FOR FURTHER INFORMATION:

For further information on the Department's activities related to this

project, please contact Dr. Suellen A. Van Octeghem, Environmental

Project Manager, Morgantown Energy Technology Center, 3610 Collins

Ferry Road, Morgantown, WV 26507-0880 or call at (304) 285-5443.

For further information on the Department's National Environmental

Policy Act process, please contact Carol M. Borgstrom, Director, Office

of NEPA Oversight [EH-25], Office of Environment, Safety and Health,

U.S. Department of Energy, 1000 Independence Avenue, S.W., Washington,

D.C. 20585, or call at either (202) 586-4600 or (800) 472-2756.

Background

The Department has prepared this Record of Decision pursuant to

Council on Environmental Quality regulations for implementing the

provisions of the National Environmental Policy Act (40 CFR Parts 1500-

1508) and Department regulations (10 CFR part 1021). This Record of

Decision is based on the Department's Final Environmental Impact

Statement for the Pinon Pine Power Project (DOE/EIS-0215).

An overall National Environmental Policy Act compliance strategy

was developed for the Clean Coal Technology Demonstration Program that

includes consideration of both programmatic and project-specific

environmental impacts during and after the process of selecting a

project. This strategy is called tiering (40 CFR 1508.28), and refers

to the coverage of general matters in a broader Environmental Impact

Statement (e.g., the Programmatic Environmental Impact Statement for

the Clean Coal Technology Demonstration Program), with subsequent

narrower statements or environmental analyses incorporating by

reference those general discussions found in the broader programmatic

document. A project-specific document, therefore, concentrates solely

on the issues specific to that particular project being considered.

The Department strategry has three principal elements. The first

element involved preparation of a comprehensive Programmatic

Environmental Impact Statement for the Clean Coal Technology

Demonstration Program (DOE/EIS-0146, November 1989) to address the

potential environmental consequences of widespread commercialization of

up to 22 successfully demonstrated clean coal technologies by the year

2010. The Programmatic Environmental Impact Statement evaluated (1) a

no-action alternative, that assumed the Clean Coal Technology

Demonstration Program was not continued and that conventional coal-

fired technologies with flue gas desulfurization controls would be used

for new plants or as replacements for existing plants that are retired

or refurbished, and (2) a proposed action, that assumed that Clean Coal

Technology Demonstration Program projects would be selected for funding

and that successfully demonstrated technologies would undergo

widespread commercialization by 2010.

The second element involved preparation of a preselection

environmental review of project-specific environmental data and

analyses that the Clean Coal Technology Demonstration Program offerors

were required to supply to the Department as part of their Clean Coal

Technology Demonstration Program proposal.

The third element consists of preparing site-specific National

Environmental Policy Act documents for each selected project. As part

of this overall strategy, the Pinon Pine Power Project's Environmental

Impact Statement draws upon the Programmatic Environmental Impact

Statement and preselection environmental reviews that analyzed various

alternatives and scenarios (e.g., alternative technologies and sites).

Project Description

Sierra Pacific plans to expand its electric generating capacity by

constructing the Pinon Pine Power Project, an air-blown, fluidized bed,

integrated gasification combined-cycle facility with hot gas cleanup.

This project was selected under the Department's Clean Coal Technology

Demonstration Program to demonstrate the commercial application of

integrated gasification combined-cycle technology. When compared to

conventional coal burning techniques, the Pinon Pine Power Project will

provide several unique features that are designed to increase coal

utilization efficiency while significantly reducing potential

environmental releases.

In the facility, coal, mixed with limestone (for in-bed sulfur

control), will be partially burned in a gasifier to produce fuel gas.

The fuel gas will be subsequently cleaned by cyclones and then by hot

gas cleanup barrier filters to remove particulates and by external-bed

sorbents to remove residual sulfur, prior to being used in a combined-

cycle combustion turbine to produce electricity. Gasification

technology can utilize a variety of coals; thus, it allows greater fuel

flexibility to produce fuel gas. The airblown coal gasification process

will also allow higher thermal efficiency (comparied with oxygen-blown

gasification systems) because less auxiliary power consumption is

associated with an air-blown gasification process. The gasification

portion of the project will be based on technology developed by KRW

Energy Systems Inc. and provided by The M.W. Kellogg Company. Hot gas

cleanup will reduce environmental emissions, while increasing

efficiency because thermal losses associated with conventional cold gas

cleanup technologies (such as wet scrubbers) will not occur. The hot

gas cleanup portion of this project will also be based largely on

technology provided by KRW Energy Systems Inc. The integrated

gasification combined-cycle process is at least 10 to 12 percent more

efficient than a conventional coal-fire power plant.

Integrated gasification combined-cycle facilities offer several

additional advantages over conventional coal-based power generation

technology, including (1) major reductions in sulfur dioxide, oxides of

nitrogen, carbon dioxide, and dust emissions; (2) decreased coal

consumption associated with increased generating efficiency; (3)

modular construction which allows economic increments of capacity to

match load growth; (4) greater fuel flexibility; (5) reduced land area

and cooling water requirements; and (6) the potential for design

standardization due to modular construction, which should reduce

required engineering effort, construction time, and potential

permitting complications for construction of future plants.

The combined-cycle design consists of a combustion turbine/

generator, a heat recovery steam generator, and a steam turbine/

generator. Combined-cycle technology is currently the most efficient

commercially available method of producing electricity because

combined-cycle generation reuses the exhaust heat from the combustion

turbine to produce additional electricity. The combined-cycle portion

of this project will be an industrial frame-type combustion turbine to

produce additional electricity. The combined-cycle portion of this

project will be an industrial frame-type combustion turbine, with a

technologically advanced firing temperature and cooling system supplied

by General Electric. The associated steam turbine and generator to be

used in the Pinon Pine Power Project will be of conventional design.

Combining these technologies as part of the project will allow the

Sierra Pacific to couple the high thermal efficiency of air-blown

integrated gasification combined-cycle design with the low cost of coal

as a fuel, and will also allow assessment of the long-term

compatibility, reliability, availability, and maintainability of the

various technology components. Environmental emissions from the Pinon

Pine Power Project will be further reduced when compared to

conventional power plants because the design coal to be used in this

facility is a low-sulfur western bituminous coal.

Project Status

Project activities to date include applications for permits and

approvals necessary to construct and operate the Pinon Pine Power Plant

at Tracy Station; preparation of designs and specifications necessary

to apply for these permits and approvals; and preparation, publication,

and distribution of the Draft and Final Environmental Impact

Statements.

In 1991, Sierra Pacific proposed the Pinon Pine Power Project to

the Public Service Commission of Nevada as part of Sierra Pacific's

Electric Resource Plan, to meet anticipated load growth. Following

public hearings, on November 8, 1993, the Commission issued an

``Interim Order'' granting resource planning approval for the Pinon

Pine Power Project citing the advantages of flexibility, diversity,

displacement of fuel, and reliability. Sierra Pacific is currently in

the process of obtaining other permits and approvals required to

support this project.

Alternatives

Congress directed the Department to pursue the goals of the Clean

Coal Technology Demonstration Program by means of partial funding of

projects owned and controlled by nonfederal-government sponsors. This

statutory requirement places the Department in a more limited role than

if the Federal government were the owner and operator of the project.

In the latter situation, the Department would be responsible for a

comprehensive review of reasonable alternatives for the project.

However, when the Department signs a Cooperative Agreement with an

industrial partner, the scope of alternatives is necessarily more

restricted because the Department must focus on alternative ways that

not only accomplish its purpose but also reflect the industrial

partner's needs and the functions it plays in the decision making

process. It is, therefore, appropriate for the Department to give

substantial weight to the industrial partner's needs in establishing a

project's reasonable alternatives.

Based on the foregoing principles, the reasonable alternative to

the preferred alternative is the no-action alternative (including

scenarios reasonably foreseeable as a consequence of the no-action

alternative). The alternatives available to the Department for this

decision, therefore, are either to provide cost-shared financial

assistance for the project or to deny financial assistance. After

reviewing all potential environmental effects, the Department has

determined that its preferred alternative is to provide cost-shared

financial assistance for the Pinon Pine Power Project.

Preferred Alternative

The preferred alternative is the provision of approximately $135

million in cost-shared Federal funding support for the design,

construction, and operation of a nominal 800-ton-per-day (approximately

104 megawatt gross generation) coal-fired power generating facility

that integrates coal gasification and combined-cycle technologies to

develop a highly efficient new technology for removing sulfur and

particles from fuel gas prior to combustion. A combustion turbine unit

will be integrated with heat recovery steam generator and steam turbine

generator facilities to form a combined-cycle generating unit with coal

gasification facilities to complete the 104-megawatt Pinon Pine Power

Project at Tracy Power Station.

A KRW Energy Systems Inc. air-blown fluidized-bed gasifier will be

used to produce a fuel gas. Crushed coal and limestone will be fed to

the pressurized gasifier bed. The gasifier bed will be maintained in a

``fluidized'' form by injecting controlled amounts of steam, recycle

gas, and air through special nozzles into the combustion zone. Heat

from the combustion zone will cause the coal to gasify (creating fuel

gas). A portion of the sulfur gasses generated will be removed from the

fuel gas by reacting with the limestone in the fluidized bed. Fuel gas

leaving the gasifier will spin through a cyclone unit to remove nearly

all of the particulate matter. The particles removed in the cyclone

will be returned to the fludized-bed, while the partially-cleaned fuel

gas will enter a hot gas cleanup section. The hot gas cleanup devices

(employing barrier filters to remove remaining particles and zinc-based

sorbents to remove hydrogen sulfide) will complete the cleaning of the

fuel gas prior to its entrance into the combustion turbine. Because

desulfurization and particulate removal will be carried out at an

elevated temperature, the inefficiencies (and higher capital costs) of

cooling and cleaning the fuel gas at a low temperature will be avoided.

Cleaned fuel gas will be routed to a combined-cycle system for

electric power generation. The General Electric combustion turbine will

covert fuel gas into approximately 61 megawatts (gross) of electricity

and produce exhaust gases that will be used to superheat high pressure

steam. The high pressure steam will then be used to produce an

additional 43 megawatts (gross) of electricity using a conventional

steam turbine generator.

No Action

Under the no-action alternative, the Department would not provide

cost-shared Federal funding support for the Pinon Pine Power Project,

and the advanced KRW gasification technology with hot gas cleanup would

be demonstrated in Reno, Nevada, or elsewhere because there are not

similar proposals in the Clean Coal Technology Demonstration Program.

Sierra Pacific has stated that without cost-shared funding support

from the Department, it will not construct the project as proposed.

However, Sierra Pacific still must find a cost-effective means of

meeting the projected energy demand of its customers. This increased

demand requires the addition of generating capacity by the company.

Should the Department not fund the Pinon Pine Power Project, the ``most

reasonable'' course of action of Sierra Pacific to pursue is currently

the construction of essentially the same project without the capability

of using coal fuel; the use of natural gas with distillate oil as a

secondary fuel source is most likely. A final determination, however,

would be made in compliance with the resource planning process required

by the state of Nevada. Sierra Pacific would analyze all possibilities

and present their most preferred (least-cost) option of the Public

Service Commission of Nevada; Sierra Pacific would proceed only after

receiving Commission approval.

The configuration of a natural gas and distillate oil combined-

cycle power plant would include the same General Electric combustion

turbine and auxiliary equipment selection as described for the Pinon

Pine Power Project. A slightly smaller size steam turbine might be

utilized. If the proposed Tuscarora pipeline is constructed, natural

gas potentially could be used exclusively. The pipeline would end at

the property line of the Tracy Power Station and Sierra Pacific would

be responsible for extending it approximately 50 feet. The Federal

Energy Regulatory Commission is in the process of preparing an

Environmental Impact Statement for this proposed pipeline; a decision

to proceed is independent of decisions pertaining to the Tracy Power

Station.

Alternative Sites

The Department is not the owner-operator of the Pinon Pine Power

Project under consideration. Therefore, the Department's evaluation of

the project's reasonable site alternatives is focused on a review of

the site selection study and criteria prepared by the industrial

partner. Sierra Pacific conducted a preliminary site selection study

before submitting its proposal to the Department. Following a screening

analysis of the potential candidate sites, four potential locations for

the integrated gasification combined cycle project were considered: (1)

Fort Churchill Power Plant; (2) North Valmy Power Plant; (3) Tracy

Power Station; and (4) Carlin, Nevada.

Because there are no existing generating facilities nor gas

pipeline capacity in the Carlin area, a specific site was not pursued

and no further analysis of the area was conducted. (Use of an existing

generating station reduces the construction costs of common facilities

such as warehouses, substations, parking lots, and office buildings,

and requires fewer additional employees.) The environmental evaluation

of the remaining three candidate sites considered the potential for

regulatory compliance and potential environmental impacts. All of the

sites are judged by Sierra Pacific to be acceptable from an

environmental perspective. Sierra Pacific also subjectively ranked

economic and reliability data for each site, and the Tracy site scored

highest overall.

On the basis of its review of the site analysis conducted by Sierra

Pacific, the Department has determined that the Tracy Station site is

the only site that meets Sierra Pacific's goals and objectives.

Environmentally Preferred Alternative

Fewer impacts would result from the no-action alternative if Sierra

Pacific built the same plant without the capability of using coal.

Under the no-action alternative, it is reasonably foreseeable that

Sierra Pacific would construct essentially the same project at the same

site, but with natural gas as its primary fuel source. However, Sierra

Pacific's actual course of action without Department funding is as yet

undetermined because the financial determination would depend on the

decision of the Public Service Commission of Nevada. In any event,

because the no-action alternative would not further the goals of the

Clean Coal Technology Demonstration Program, the no-action alternative

is not the preferred alternative.

Potential Environmental Impacts and Mitigation Measures

In compliance with the National Environmental Policy Act, the

Department analyzed the environmental impacts and mitigation

alternatives associated with the construction and operation of the

Pinon Pine Power Project and of the no-action alternative.

Construction Impacts and Mitigation Measures

Site preparation and plant construction are expected to have a

negligible impact on current land use. The Pinon Pine Power Project

will be in conformance with zoning for Storey County, and a Special Use

Permit will be obtained. To reduce visual impacts, trees, such as

cottonwoods, poplars, and alders, will be planted along the south bank

of the Truckee River to screen portions of the proposed facility. Pinon

Pine Power Project facilities that lend themselves to painting will be

painted in earth-tones. Steel will be painted a silver/grey color to

blend in with existing Tracy Power Station structures. Fugitive dust

emissions will be minimized by water application, as necessary.

Approximately 120,000 cubic yards of soil will be disturbed during

construction but erosion will be controlled through the use of best

management practices. Because there is a slight possibility that

liquefiable zones would exist within the new facility's footprint, a

design-level subsurface investigation program will be initiated and if

liquefiable material is found, appropriate mitigation measures (such as

excavating and removing loose to medium density materials) will be

implemented. Although near-surface site soils appear to have a moderate

potential for collapse, the practices of over-excavating, saturating

the soil, and then compacting it prior to construction have proven

successful and may be employed. Because a site-specific resistivity

survey showed moderate corrosion potential to steel, a soil resistivity

test program also will be implemented and used in the design of

underground features. Soil excavations will follow current Occupational

Health and Safety Administration (OSHA) regulations.

During the 26-month construction phase, projected water usage is

not expected to differ from current consumption rate; consumption would

average 1,972 acre-feet per year (1,221 gpm, 2.8 cfs), which is

comparable to recent annual withdrawals at the Tracy Station site. Best

management practices will be implemented to control nonpoint source

pollution discharges to surface waters to alleviate sedimentation and

siltation during construction. The groundwater withdrawal rate is not

expected to increase. The only potentially significant influence on

groundwater flows would be the dewatering that might be required during

excavation of the coal unloading facility; however, groundwater

modeling results indicate that this would involve only slight changes

in surface or groundwater flows for a short time period. No permanent

adverse impacts to groundwater quality are expected because best

management practices will be followed. Construction of the new

switchyard in the Federal Emergency Management Agency-designated 100-

year floodplain also would require the use of best management practices

to minimize runoff and sedimentation. Because the proposed switchyard

is relatively small in size, minimal impacts are anticipated.

Construction of the Pinon Pine Power Project is not expected to impact

wetlands; however, a temporary fence adjacent to wetlands areas will be

erected, if necessary, to ensure that all activities occur outside the

wetlands.

Short-term impacts to aquatic ecosystems may include dust

contamination from the windblown, dry, and unstabilized area; truck

traffic; and other activities. Aquatic resources of the Truckee River

also could be impacted if increased soil erosion leads to increased

fine sediment loads in the river, but this would be unlikely because

construction zones will be located away from the river or other

drainages and a soil erosion control plan will be implemented.

Potential impacts on aquatic resources also would be avoided through

implementation of the hazardous spill control plan.

Construction impacts to vegetation would be minimal because a

majority of the project site is barren. There would, however, be

permanent displacement of some wildlife species that now utilize the

site. Mule deer that regularly use the power plant property to access

the river would be displaced and would need to find a new river access

location site; this will be facilitated by planting food source plants

such as rose and currant in an appropriate area to act as an

attractant.

Impacts on sensitive or threatened species from construction

activities are expected to be minor. The Cui-ui and Lahontan cutthroat

trout are not present in the immediate area and bald eagle wintering

habitat requirements, such as perching and roosting trees and foraging

areas, would not be affected.

The temporary (1- to 2-week period) and short-duration (about 2\1/

2\ minutes each) steam blowing activity will produce audible levels of

noise. Prior to the initiation of steam blowing, letters of explanation

will be sent to the nine residences in the area. Sierra Pacific also

will offer to temporarily relocate affected residents to a hotel in the

Reno/Sparks area.

No adverse impacts from construction are expected to occur to any

cultural resources. To ensure protection of identified sites, 6-foot

chain-link fences will be constructed. If construction activities

encounter buried deposits, construction will cease until a professional

archaeologist, in consultation with the State Historic Preservation

Officer, evaluates the resource. It is not expected that any Native

American cultural resources or historic resources would be impacted.

The currently available construction labor resources in the

affected area are sufficient to satisfy projected labor needs. An

average labor rate of $36.00 per hour and the estimated total

construction period of 1,147,900 person-hours is expected to yield a

construction-phase payroll of approximately $41.3 million dollars, with

a total income of approximately $59.0 million. Total sales tax revenue

accruing during the construction phase would be approximately $9.0

million, based on a sales tax rate of 6.75 percent.

Construction of the new facility would not have disproportionately

high and adverse human health or environmental effects on low-income,

minority, or Native American communities. All direct impacts are

expected to occur on site, with little effect on surrounding areas of

Storey or Washoe counties.

Appropriate health and safety measures will be implemented for all

identified and anticipated hazards to worker health and safety. During

construction, portions of the interior fences will be removed, however,

the perimeter fence will remain intact to deter intrusion by

unauthorized persons. Additional fences will be constructed to secure

new facilities (and to prevent encroachment on existing resources).

Sierra Pacific is responsible for storage and disposal of all

hazardous and solid wastes generated during construction; stipulations

for the handling and transportation of solid wastes are included in

special use permits. Only small quantities of hazardous wastes will be

generated and no impacts from hazardous or toxic materials are

anticipated.

Operations Impacts and Mitigation Measures

No impacts to land use are expected to result from the operation of

the Pinon Pine Power Project; the special use permits for construction

will also apply to operations. The project will not create significant

visual impacts because the new facilities will blend with existing

power plant structure.

Air emissions expected during operation of the facility include 225

tons per year of sulfur dioxide, 123 tons per year of particulate

matter, 575 tons per year of oxides of nitrogen, and 304 tons per year

of carbon monoxide. Modeling results based on these emissions loadings

and consideration of surrounding topography and meteorology indicate

that pollutant emission levels would be in compliance with National

Ambient Air Quality Standards and would not have a significant impact

on nonattainment areas in the Truckee Meadows and Washoe County. Both

the Class I and Class II Prevention of Significant Deterioration

increment analyses indicate that the Pinon Pine Power Project would not

result in significant degradation of air quality in the project area.

The Class I PSD increment analysis showed that operation of the Pinon

Pine Power Project would result in the consumption of no more than 3/5

of 1 percent of a PSD Class I increment. The results of the Class II

PSD increment analysis indicated that the Pinon Pine Power Project's

contribution to the consumption of the annual increment would be

between 10 and 11 percent for sulfur dioxide and 12 percent for

particulate matter. In addition, site-specific analyses for Nixon and

Wadsworth areas show that no adverse air quality impacts would occur on

tribal lands.

Visibility impact analyses performed for the area surrounding the

proposed facility indicate that the Pinon Pine Power Project emissions

of oxides of nitrogen and particulate matter will not result in a plume

detectable against the background sky beyond 3.1 miles; visual impact

analysis performed for the nearest Class I Area (Desolation Wilderness)

indicate that emissions from existing and proposed facilities would be

below the screening criteria for all impact categories; and there would

be no significant visual impacts in the Desolation Wilderness or other

scenic areas (e.g., Lassen Volcanic National Park, Yosemite National

Park, Grand Canyon National Park) located further away. At the request

of the U.S. Forest Service, the Class I visibility analysis was re-

evaluated using a value for background visual range that was actually

measured in the Desolation Wilderness Area. The visual impacts analysis

still indicated that sources from existing and proposed facilities

would be below the screening criteria for all impact categories.

As a result of the Pinon Pine Power Project, there may be some

occasional increase in the production of fog in the canyon during cold

weather. The Nevada Department of Transportation, in cooperation with

Sierra Pacific, already has posted warning signs in the canyon in order

to mitigate any potential problems generated by natural sources.

Results of a modeling analysis indicate that the addition of the Pinon

Pine Power Project could result in an incremental increase in annual

fog hours of 3 percent. Sierra Pacific will provide a system that

includes fog and ice detection with active warning capabilities, which

will be installed by the Nevada Department of Transportation. Sierra

Pacific will also continue to work with the Nevada Department of

Transportation to minimize any adverse impacts from fog.

Because of the design features to be implemented (Uniform Building

Code, Seismic Zone 4), if an earthquake occurs, external structures and

internal features of the Pinon Pine Power Project are expected to

withstand the potential force. If a breach in containment of hazardous

materials occurs, Chemical Emergency Response Plan and Spill Prevention

Control and Countermeasures Plan procedures would reduce or eliminate

the extent of the potential impact. No activity associated with

operation of the facility is expected to impact soil erosion or soil

quality. However, procedures are in place for the response to and

remediation of a spill that could potentially contaminate the soil.

River water quality is not expected to be impacted by plant

operations because the plant will continue as a ``zero discharge''

system. Discharges from the project will be directed to a new, double-

lined evaporation pond. This pond will be regulated by the Nevada

Division of Environmental Protection under Nevada Revised Statutes,

Chapter 445. Stormwater from the Pinon Pine Power Project will be

routed to the cooling pond and could result in some siltation. However,

it is unlikely that a storm event would result in significant runoff.

Routing of the stormwater runoff to the cooling pond should prevent

discharge of suspended material to the Truckee River. In addition, best

management practices will be incorporated into the containment of

hazardous materials and coal to prevent them from entering the Truckee

River and potentially harming fish or other wildlife.

Protection of groundwater quality will be accomplished by storing

coal, coke, and limestone in concrete or steel enclosures and using

protective double liners for liquid waste impoundments. Coal will be

delivered via a covered handling system equipped with a sump to reclaim

and recycle any water used for dust suppression. Chemical and petroleum

product and hazardous waste storage facilities and handling procedures

will be designed to prevent or contain accidental spills. The impact of

increased groundwater withdrawal on adjacent will owners also was

evaluated. Results from the simulation show that the area affected by

additional drawdowns would be quite small. The level of impact to

groundwater flow are not expected to change as a result of the Pinon

Pine Power Project.

Because of the limited size and open structure of the switchyard,

potential impacts to the floodplain are expected to be minimal. The

site is largely devoid of vegetation, is not an ecologically sensitive

area, and contains no wetlands. Therefore, potential indirect impacts

to habitat, resulting from flood storage and impediments to flow

conveyance, are not expected.

During the early design phases of the project, Sierra Pacific

incorporated several measures to reduce water consumption. These water-

conserving measures are currently part of the proposed facility. The

increase in water consumption, compared to present operations, would be

relatively small. Projected water usage during the 26-month

construction phase would not differ from current consumption.

Consumption would average 1,972 acre-feet per year (1,221 gpm, 2.8

cfs), which is comparable to recent annual withdrawals at the Tracy

Station site. Consequently, construction would be unlikely to affect

water availability. The average water consumption for the Tracy Station

site for cooling after the start-up of the Pinon Pine Power Project is

estimated to be 2,806 acre-feet/year (or 3.9 cfs), averaged over the

operation years 1997 through 2011 and excluding the construction years

prior to 1997. Of this amount, downstream users are expected to

experience a water loss of 1,004 acre-feet/year (1.4 cfs; 630 gpm),

which would be attributed to the Pinon Pine Power Project. This amount

is typically less than one percent of current normal Truckee River

flows. No change would be anticipated in water use during drought

conditions.

The Final EIS also presented alternative cooling methods, which

were investigated in an effort to find ways to conserve water. In

addition to the option incorporated into the preferred alternative (use

of wet cooling in the form of a cooling tower), other options of air

condensers (dry cooling), a wet-dry cooling tower (hybrid cooling), a

spray pond, a cooling pond with cooling tower, and a cooling tower were

analyzed. Only the use of air condensers (dry cooling option) was shown

to substantially reduce water consumption when compared to the other

options. Although there were environmental advantages associated with

the dry cooling option when compared to the wet cooling tower in the

preferred alternative (a 1.3 cfs [941 acre-fee/year] reduction of water

consumption, elimination of fogging, icing, and plume visibility

potential, elimination of requirements for chemical treatment of

cooling water and disposal of blowdown), it was dropped from further

consideration due to its economic and environmental disadvantages. The

cost of air condensers was $7.8M more than the wet cooling tower (which

could potentially be reflected in an increase in rates). In addition,

the inclusion of air condensers would require more coal use (in order

to generate the same gross electrical output) due to parasitic power

requirements of the air condenser fans and to compensate for the higher

backpressures resulting from the air condenser system. This increase

coal usage potentially translates into increased air emissions (12 tons

per year of sulfur dioxide; 32 tons per year of oxides of nitrogen; 7

tons per year of particulate matter, and 17 tons per year of carbon

monoxide). Other characteristics associated with air condensers

compared to wet cooling systems at Tracy Station include more noise,

risk of freezing, more noticeable structures, and higher degree of

technical risk. In addition, the unused water (1.3 cfs) resulting from

the use of air-cooled condensers would probably be consumed as a

resource for current or future operations at Tracy Station and/or

another Sierra Pacific location, rather than augmenting downstream flow

from the Tracy Station site. Thus, the most probable end effect of

conserving water through the use of air condensers would be a

redistribution of projects and/or locations that would use existing

water rights (including the 1.3 cfs) held by Sierra Pacific. However,

in any event, the Pyramid Lake Pauite Indian Tribe holds the most

senior water rights, and would not be affected by this additional

withdrawal.

No significant impacts on Truckee River aquatic habitat are

expected. Two wire mesh plate screens at the intake facility at the

Tracy Power Station currently prevent entrainment of fish from the

Truckee River and can accommodate any additional diversion volume. The

anticipated consumption of additional water is within Sierra Pacific's

existing water rights and full use of these water rights has been

assumed as part of the hydrological foundation of the Cui-ui Recovery

Plan. A Biological Assessment was formally submitted to the U.S. Fish

and Wildlife Service in February 1994. The Service concurred with the

conclusion that the Pinon Pine Power Project would result in ``no

effect'' on the Cui-ui sucker, the efforts of the Cui-ui Recovery Plan,

the Lahontan cutthroat trout, and the bald eagle.

The cooling pond at the Tracy Power Station currently supports a

number of warmwater fish species. The Pinon Pine Power Project will

result in changes to the pond's inflow and outflow (because utilization

of existing Tracy Station units will change), but there should be no

significant variations in water level. Although evaporative water loss

from the cooling pond could slightly increase total dissolved solids

over time, no significant alterations in the existing ionic

concentration are expected. Anticipated temperature fluctuations in the

pond resulting from divergent ambient air temperatures and varying

utilization are expected to remain within the current range.

Wastewater in the evaporation ponds is not anticipated to result in

any adverse effect on wildlife. Sierra Pacific will periodically test

the evaporation ponds and compare the results with the standards of

section 445 of the Clean Water Act for wildlife propagation. If water

quality is found to be out of compliance with these standards, Sierra

Pacific will either neutralize the pond's contents or work with the

Nevada Division of Wildlife to develop necessary exclusion measures.

Loss or modification of habitat and noise disturbance within the

operation area may affect wildlife, but any impact is expected to be

minor. The habitat types that will be impacted (i.e., natural and

disturbed big sage desert shrub communities) are common habitat types

in the area and some natural revegetation likely would occur in areas

such as evaporation pond tailings, and along the new railroad spur. In

addition, wildlife species using the project area appear to be

accustomed to the noise from the Tracy Power Station, traffic along I-

80, the Southern Pacific Railroad, and surrounding mining operations.

No significant impact to the birds in the area is anticipated. Although

an increase in collision potential may occur during foggy conditions,

this has not been a major concern with current structures, and such an

increase would be slight.

Railroad access to the site is provided by the Southern Pacific

Railroad Company. Because a new railroad spur will be constructed as

part of this facility, minimal impact to the right-of-way utilized by

existing train traffic is expected. Coal will be delivered by rail in

railcars of approximately 100-110 ton capacity, resulting in a small

increase in rail traffic along the main route. Train cars will be

pulled off the main track during the coal off-loading process. No

adverse impact to the Truckee River is expected from coal

transportation. If a spill occurs during transport, Southern Pacific

Railroad will be responsible for cleanup. The railroad company has a

contingency plan on file and is required to notify Washoe County Health

Department, Nevada Health Department, Nevada Division of Environmental

Protection, Pyramid Lake Paiute Indian Tribe, Nevada Department of

Wildlife, the U.S. Fish and Wildlife Service, and the Truckee-Carson

Irrigation District. The Tracy Bridge, which links the access road over

the Truckee River to the Pinon Pine Power Project site, will be

maintained as necessary to safely accommodate the current maximum load

rating of 52 tons; no increase in load bearing capacity is needed.

Potential noise impacts have been assessed for the nearest

residence at a distance of 1 mile and for the residences in the

community of Patrick about 3 miles from the site. The addition to the

Pinon Pine Power Project is expected to increase the noise level by 1

to 2 dBA for the nearest residences and by 1 dBA for the community of

Patrick. In addition, the Storey County noise ordinance limit of 84 dBA

at the property line in the frequency range of 500 to 1,800 Hz would

not be exceeded.

The permanent chain-link fence constructed to protect

archaeological sites will remain in place during operation; no adverse

impacts are expected. No Indian sacred sites of religious worship have

been identified on the project property or within the affected property

area. Consultations with Native American Tribes have not indicated any

religious practices associated with the facility or site. No

infringement of the American Indian Religious Freedom Act of 1978 and

no impacts on Native American cultural resources would occur as a

result of project operation. The Nevada State Historic Preservation

Officer and the Advisory Council on Historic Preservation concurred

with the determination that operation of the Pinon Pine Project would

not adversely impact historic resources on, or adjacent to, the Tracy

Power Station site.

No significant adverse socioeconomic impacts are anticipated with

operation of the Pinon Pine Project. Adequate labor force, housing,

schools, police protection, fire protection, and medical services are

available. A beneficial impact of increased tax revenue is expected.

Based upon an average hourly labor rate for public utility workers of

$16.14, the annual wages for a total of 25 permanent workers would be

approximately $850,000. The Pinon Pine Project is expected to yield a

total annual income of approximately $1.165 million during the

operations phase. The project also is expected to generate

approximately $1 million annually in state and local property taxes.

Operation of the Pinon Pine Project is not expected to result in a

disproportionately high and adverse human health or environmental

effects on low-income, minority, or Native American communities.

Coordination with the Pyramid Lake Paiute Indian Tribe, initiated

before this project was proposed, will continue during project

operation and beyond.

The greatest potential health and safety concern is the accidental

or emergency release of fugitive coal dust. The facility provides

engineering controls to minimize fugitive dust, such as the use of

bottom dump railcars in a negative pressure building. A dust filtration

system also will be included in the design to minimize airborne dusts.

Dusts generated from coal crushing and screening will be collected in

negative pressure hoods that will be vented through a pulse jet or

similar baghouse to adequately control emissions and manage the

potential impacts to workers in the area. Coal fines will be collected

and consumed as fuel in the gasifier and, therefore, are not expected

to present a disposal problem. Although there is some potential for

fire or ignitability from the coal storage or coal dust build-up in the

coal crushing and handling systems, workers will be trained on proper

management. A fire suppression system, to be designed, will comply with

applicable fire and safety specifications and regulations.

Lime (calcium oxide) in LASH reacts with water to form hydrated

lime (calcium hydroxide) and generates a considerable amount of heat.

Chronic exposure to LASH dusts could potentially result in

carcinogenicity. A material safety data sheet (MSDS) will be available

to all workers. If required to handle LASH, workers will be trained in

the proper handling of the material and appropriate protective

equipment will be provided.

Up to a maximum of 134 tons/day of cooled LASH will exit the

fluidized-bed sulfation combustor and be conveyed continuously to the

solid waste storage silo using a covered belt conveyor system. The

storage silo, with a 5-day storage capacity, is designed to prevent

rainwater runoff from contacting the LASH and wind from dispersing LASH

particles into the environment.

Washoe County requires that the LASH pass the Toxic Characteristic

Leaching Procedure test associated with the Resource Conservation and

Recovery Act requirements before the material can be landfilled.

Although it is expected that the LASH will be able to pass this test,

improved means of disposal are being investigated. Various uses for the

LASH and resulting environmental impacts are also being evaluated. The

results of these evaluations will be used to determine the most cost-

effective residuals management solution. Until a final decision on

reuse is reached, however, the planned procedure for LASH disposal is

to transport it daily to a nearby landfill by truck. The LASH storage

silo will be equipped with a rotary underloader equipped with discharge

valve and a telescope loading chute to minimize dusting during the

truck loading operation. Transportation will be performed in accordance

with all Federal, state, and local regulations. The most likely

location for LASH disposal is the Lockwood landfill, which has a life

expectancy of 122 years based on the assumption that 8,000 tons of

solid waste is received daily.

Other solid wastes to be generated by the facility include barrier

filters and spent sorbent from the external hot gas desulfurization

vessels. Barrier filters could capture some of the trace metals from

the coal; therefore, analytical testing will be performed to determine

if the filters contain any hazardous constituents and to ensure that

they are disposed properly. Wastewater and wastewater sediments will be

reclaimed, thus minimizing wastes and the potential for adverse impacts

to workers.

Safety considerations for high-pressure systems will be implemented

to minimize potential impacts from the accidental release of pressure

during normal operations. Leak detection (area monitors) will be

required at all flanges located in enclosed areas. In addition, hand-

held leak detectors will be used by operators during leak detection and

repair programs. The design for desulfurization and sulfation also

takes into account control measures to minimize the potential release

of toxic gases, thereby minimizing potential impacts to the worker

population.

Near-field or in-plant noise levels will be controlled by a

specific requirement that equipment cannot produce a noise level that

exceeds 85 dBA (at 3 feet). This will permit compliance with noise

exposure regulations (29 CFR 1910.95) without hearing protection.

However, hearing protection will be required in each area posted as a

high noise level area. The existing Tracy Power Station hearing

conservation program will be extended to include the Pinon Pine Power

Project.

An in-place site program is in full compliance with the Hazard

Communication/Right-To-Know Program (29 CFR 1910.1200). All aspects of

health and safety compliance monitoring are implemented and conform to

Federal and state requirements. To ensure that employee exposures to

hazardous substances do not exceed the standards allowed by the

Occupational Health and Safety Administration or the National Institute

of Occupational Safety and Health, the Sierra Pacific Industrial

Hygienist will determine requirements for personal protective

equipment, modified work practices, engineering controls, and/or

administrative controls. Until instructed otherwise, all employees in

affected work areas will wear prescribed personal protective equipment.

The chemical analyses of the existing evaporation pond were

reviewed to determine potential health impacts to workers and

individuals in the vicinity of the proposed new evaporation pond from

water sprayed by the floating spray units. An assessment also was

conducted to determine the impacts to workers from breathing vapors

from the pond spray. All chemicals of concern were determined to be

below the threshold limit values.

Appropriate containment structures will be constructed around

chemical or petrochemical storage tanks to avoid entraining spillage of

those compounds in surface runoff. Surface runoff draining from areas

of industrial activity will be directed through a filter or separator

treatment device capable of removing entrained pollutants. Solid and

liquid wastes retained by treatment devices will be disposed of

periodically, as required. Either a hazardous waste disposal contractor

or used-oil recycler contractor will remove the waste material for

disposal in compliance with the appropriate Federal, state, and local

environmental regulations. The discharge of nonstormwater (process

water or water from floor drains) from the new facility will be

directed to the double-lined evaporation pond to prevent co-mingling

with stormwater.

The Pinon Pine Power Project will use small quantities of hazardous

chemicals during routine operations, which are not expected to pose any

threat to public health and safety. However, if a spill or other

accidental release of these materials occurs, use of secondary

containment, containment piping, leak detection, and other techniques

to contain a release would minimize the potential impact.

The Pinon Pine Power Project probably will use sealed low-level

radiation sources in process control sensors for coal, limestone, and

LASH handling. While the accumulated dose from these sources is not

expected to exceed the federally mandated whole-body dose, radiation

safety surveys will be required in the areas where employees may be

working with these materials. Until the results of these surveys are

known, all employees working with these sources will be required to

wear personal dosimeters and to adhere strictly to the procedures

established for working with these materials.

Existing Tracy Power Station pollution prevention measures will

continue to be implemented. Attempts currently are being made to

replace hazardous materials with non-hazardous materials and prevent

resulting pollution. For example, Tracy Power Station is using non-

hydrazine containing oxygen scavenger chemicals for steam cycle

corrosion control.

No impact to the general public's health and safety is expected

from operation of the facility. Unauthorized personnel will continue to

be prevented from entering the site by a perimeter fence surrounding

the property. For added security and safety, additional fences will

surround specific facilities, as necessary. In addition, in the

unlikely event of an accident, the implementation of the Chemical

Emergency Response Plan would ensure that proper notification and

evacuation procedures are followed. This plan will be modified to

incorporate the new facilities and processes of the project.

In sum, with the exception of the dry cooling option, all

practicable means of avoiding or minimizing environmental harm from the

preferred alternative have been adopted. The reasons for not selecting

the dry cooling option have been presented earlier in this section.

No-action Alternative

For most resources, impacts from the no-action alternative would be

similar to those for the Department's preferred alternative. However,

air emissions from the no-action alternative would be less than for the

preferred alternative because the anticipated use of natural gas under

the no-action alternative would result in lower emissions of sulfur

dioxide, particulate matter, oxides of nitrogen, and carbon monoxide.

In addition, total water (surface and groundwater) consumption for the

no-action alternative would be approximately 1.098 cfs compared to

1.646 for the preferred alternative. Because the most likely project

that would result under the no-action alternative would be non-coal-

burning, no LASH would be generated and thus the anticipated two year

reduction in the 122-year lifespan of the Lockwood disposal facility

would not result. The beneficial impact of increased tax revenue would

be less with the no-action alternative because fewer construction

workers and employees would be required. However, the no-action

alternative would not further the goals of the Clean Coal Technology

Demonstration Program. Demonstration of the coal-based power generating

technology, with the KRW gasifier, in-bed desulfurization, external

regenerable sulfur removal, and fine particulate filters would not

occur.

Mitigation Action Plan

Section 1021.331(a) of the Department of Energy regulations

implementing the National Environmental Policy Act (10 CFR Part 1021)

states that the Department must prepare a Mitigation Action Plan that

addresses mitigation commitments expressed in the Record of Decision.

Most of the mitigation measures associated with the construction of the

Pinon Pine Power Project have already been incorporated into the design

and include sound engineering and proper construction practices. Many

of the mitigation measures associated with operation of the Pinon Pine

Power Project are part of existing Sierra Pacific operating procedures.

The Department has identified a number of additional mitigation

measures that Sierra Pacific will implement as appropriate. These

measures include planting trees on the south bank of the Truckee River

to screen portions of the facility; painting portions of the Pinon Pine

Power Project structures, where possible, in earth-tones; painting

structural steel silver/grey in color to blend with existing

facilities; minimizing fugitive dust emissions during construction by

water application, as necessary; providing a system with fog and ice

detection coupled active warning capabilities (to be installed by the

Nevada Department of Transportation) and continuing to work with the

Nevada Department of Transportation to improve travel safety during fog

events; preparing a geotechnical report and implementing mitigating

measures if soils are found liquefiable or collapsible, or if

settlements are found to exceed tolerable settlement values;

implementing a soil resistivity program and using it in the design of

underground features; periodically testing the evaporation pond and

either neutralizing the pond's contents or working with the Nevada

Division of Wildlife to develop necessary exclusion measures if water

if found to be hazardous to wildlife; providing habitat enhancement for

Mule deer by planting food source plants to act as an attractant;

protecting archaeological sites by permanent and temporary 6-foot

chain-link fences; and prior to the initiation of steam blowing,

sending letters of explanation to the nine residences in the area and

temporarily relocating, on a voluntary basis, affected residents to a

hotel in the Reno/Sparks area.

A Mitigation Action Plan for the Pinon Pine Power Project is being

developed that identifies how the Department will ensure that Sierra

Pacific implements all mitigation commitments. Copies of the Mitigation

Action Plan may be obtained from Dr. Suellen A. Van Ooteghem,

Environmental Project Manager, Morgantown Energy Technology Center,

3610 Collins Ferry Road, Morgantown, WV 26507-0880. Telephone: (304)

285-5443.

Conclusion

The Department has weighed the costs, benefits, and environmental

impacts in its decision to provide co-funding support for the design,

construction, and operation of the Pinon Pine Power Project at the

Tracy Power Station, near, Reno, Nevada. The Department will provide

$135 million in financial assistance under the terms of the Clean Coal

Technology Demonstration Program's Cooperative Agreement with Sierra

Pacific Power Company to construct and operate this project.

Issued in Washington, D.C., on November 8, 1994.

Patricia Fry Godley,

Assistant Secretary for Fossil Energy.

[FR Doc. 94-28042 Filed 11-10-94; 8:45 am]

BILLING CODE 6450-01-P-M