EcoElectrica, L.P.; Notice of Intent to Prepare a Joint Draft Environmental Impact Statement/Preliminary Environmental Impact Statement for the Proposed EcoElectrica LNG Import Terminal and Cogeneration Project in Guayanilla Bay, Puerto Rico; Request for Comments on Environmental Issues and Notice of Scoping Meetings

DEPARTMENT OF ENERGY

[FERC Docket No. CP95-35-000; PRPB Docket No. 94-62-1219-JPU]

EcoElectrica, L.P.; Notice of Intent to Prepare a Joint Draft

Environmental Impact Statement/Preliminary Environmental Impact

Statement for the Proposed EcoElectrica LNG Import Terminal and

Cogeneration Project in Guayanilla Bay, Puerto Rico; Request for

Comments on Environmental Issues and Notice of Scoping Meetings

March 14, 1995.

The staff of the Federal Energy Regulatory Commission (FERC or

Commission) will prepare a joint environmental impact statement (EIS)

with the Puerto Rico Planning Board (PRPB or Board). The document will

discuss the environmental impacts of the construction and operation of

facilities proposed for EcoElectrica L.P. (EcoElectrica) Liquefied

Natural Gas (LNG) Import Facility and Cogeneration Project in

Guayanilla Bay, Puerto Rico. The FERC and the PRPB will use this joint

EIS in their decision-making process (whether or not to authorize the

proposed project).\1\

\1\EcoElectrica filed an application with the Commission on

October 25, 1994 pursuant to Section 3 of the Natural Gas Act and

Parts 153 and 380 of the Commission's regulations. The action

involves authorization of a place of import and the construction and

operation of facilities at this place of import. On November 23,

1994, the Land Use Consultation was filed with the PRPB pursuant to

Law 75 of June 24, 1975.

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The PRPB will be the lead agency for the Commonwealth of Puerto

Rico and the FERC will be the lead Federal agency in the preparation of

this joint EIS. The joint document will avoid duplication of

environmental analyses, and satisfy the requirements of Puerto Rico's

law requiring an EIS under the Puerto Rico Environmental Quality Board

(PREQB) Regulations (Article 4[c] of Law No. 9) and the National

Environmental Policy Act (NEPA).

Summary of the Proposed Project

EcoElectrica is seeking approval for a 36-acre site in Guayanilla

Bay near Ponce, Puerto Rico, to import LNG for power generation. The

facilities that require Commission approval (``jurisdictional''

facilities) include the construction and operation of the LNG

facilities. This would consist of a marine unloading facility, two LNG

storage tanks with individual capacities of up to 1,000,000 barrels, a

vaporization system, and a natural gas accumulator pipeline.

In addition, EcoElectrica proposes to construct a ``non-

jurisdictional'' cogeneration facility that will use the imported LNG

as a fuel source for power [[Page 14744]] generation. The power plant

facility would consist of two gas turbines operating on natural gas and

one steam turbine with a net station output of 461 megawatts (MW) at

230 kilovolts (kV). The gas turbines could also use propane (LPG) as a

secondary fuel and high grade fuel oil as an emergency fuel.

The electricity generated by EcoElectrica's cogeneration facility

would be purchased by the Puerto Rico Electric Power Authority (PREPA),

the government-created public utility that supplies nearly all of the

electric power consumed in Puerto Rico. PREPA has identified a need for

additional electric generating capacity of 1,200 MW by the year 2000 to

meet future demand growth, enhance system reliability and to diversify

the fuel sources that generate electricity.

EcoElectrica also proposes to construct a desalination facility

that would generate up to 4,000,000 gallons of freshwater per day.

Freshwater uses at the power plant could require up to 1,000,000

gallons per day. The surplus capacity would be sold for public use.

Other facilities necessary for the operation of the cogeneration

facility include a 2.3-mile long, 230-kV transmission line connecting

the plant substation to an existing PREPA substation; a 3.5-mile long,

10-inch diameter pipeline to supply LPG to the facility; and a water

pipeline for connecting into an existing offsite water supply or to

outside delivery systems.

Summary of the Proposed Facilities

The general location of the proposed facilities for the

EcoElectrica LNG/Cogeneration Project is shown in figure 1. The

proposed LNG import terminal, cogeneration power plant, and

desalination plant will be located in Penuelas, about 9 miles west of

the City of Ponce on the south coast of Puerto Rico. The proposed 36-

acre site is at the end of a peninsula presently owned by Union Carbide

Caribe, Inc. (Union Carbide). The site is bordered on the north by

Union Carbide's existing fuel storage tank farm operations and on the

east, west, and south by Tallaboa and Guayanilla Bays (see figure 2).

The site currently contains a decommissioned naptha storage tank and

ring foundation for a demolished storage tank.

Major facilities of the proposed project can be divided between LNG

import facilities and cogeneration/desalination facilities.

LNG Import Facilities

The LNG import facilities include a ship unloading system, two LNG

storage tanks, and LNG vaporization and vapor handling systems. The

proposed project facilities would be designed, constructed, and

maintained to comply with the Department of Transportation (DOT)

Federal Safety Standards for Liquefied Natural Gas Facilities (49 Code

of Federal Regulation (CFR) Part 193). The facilities constructed at

the site would also meet the National Fire Protection Association 59A

LNG standards. The marine cargo transfer system and any appurtenances

located between the vessel and the last valve located immediately

before a storage tank will comply with the U.S. Coast Guard (USCG)

regulations in 33 CFR Part 127 and Executive Order 10173.

Liquefied natural gas would be imported to Puerto Rico for use in

the power plant portion of the project. No firm supply of LNG has been

identified at this time. EcoElectrica is considering potential LNG

suppliers from Trinidad and Nigeria. It is anticipated that the project

would import up to 130 million MMBtu per year, requiring between 10 and

60 LNG tanker unloadings annually.

The LNG tankers that would be used to transport the LNG would be

the 125,000 cubic meter class and would use any of six Coast Guard

approved containment systems. Any LNG carrier used for the project

would be built in strict accordance with all current regulatory and

classification society requirements.

The ship unloading system would consist of unloading facilities and

a pier. The unloading facilities are designed to handle LNG ships with

a capacity of up to 135,000 cubic meters with a draft of up to 40 feet.

Four breasting and mooring dolphins are proposed for securing the LNG

ships to the pier's berth. The tanker berth would be roughly parallel

to the shore in 50 feet of water. The unloading platform would be a

two-level structure with a 40-foot wide by 100-foot long lower level

and a 20-foot wide by 76-foot long upper level. The pier is proposed to

be 27 feet wide and 1,800 feet long. It would be constructed on 20- to

30-inch diameter steel pipe piles, or prestressed concrete tubes. The

pile bents are expected to be constructed on 70-foot spacings. Pier

framing, roadway, and spill impoundment system contained within the

pier would be constructed of reinforced and prestressed concrete.

On-board pumps would deliver the LNG to the terminal. Four

articulated marine unloading arms would be installed on the berth for

this purpose. Three of the arms would be used to receive LNG from the

ship, and one would return natural gas vapor to the ship. Fire fighting

and fire and leak detection systems would be installed on the pier to

comply with 33 CFR Part 127. Potential LNG spills from piping at the

unloading platform, on the piping pier, and onshore would be impounded

in concrete trenches located below the piping. The impoundment trenches

would drain to a single impoundment basin located onshore near the end

of the pier.

LNG would be stored in two double-containment insulated tanks. The

tanks would be 166 feet in height and 254 feet in diameter with an

individual capacity to store up to 1,000,000 barrels of LNG each at a

temperature of minus 260 deg.F and a pressure of 2.0 pounds per square

inch gauge (psig). Each storage tank would consist of an inner tank

constructed of 9 percent nickel steel, and an outer tank constructed of

carbon steel. Outer walls would be designed to contain the product

vapors and protect the insulation systems from moisture. Insulation

would consist of perlite installed between the inner and outer tank

walls. Each LNG tank would be surrounded by a concrete wall capable of

containing 110 percent of the tank's LNG contents. This method of

construction would ensure spill containment even if there were a

complete rupture of the double walled metal tanks.

LNG from the storage tanks would be pressurized, vaporized, and

heated so that natural gas can be delivered to the power plant turbines

at the required pressure, temperature, and flow. Pumps in the LNG tanks

would transfer and pressurize the LNG to between two and six 95 million

cubic feet per day vaporizers. Two shell and tube vaporizers would use

a water-ethylene glycol solution heated by the air intakes of the gas

turbines. Four open rack vaporizers would use warm seawater to provide

the heat required for vaporization. These are two independent systems.

Cogeneration Facilities

The cogeneration facilities can be subdivided into three distinct

aspects: power plant facilities, cooling water systems, and

desalination facilities. All facilities will meet all applicable

Federal and Commonwealth laws. The cogeneration facilities are ``non-

jurisdictional'' from the FERC perspective, and will not have any

permitting authority for the ``non-jurisdictional'' facilities. The

PRPB will have a primary role in assuring that all aspects of the

cogeneration facilities meet the Commonwealth of Puerto Rico laws and

regulations, including environmental regulations. Since both agencies

require a NEPA document, this joint EIS will serve the needs of both

agencies. [[Page 14745]]

The power plant would be located on about 11 acres of the 36-acre

site (see figure 2). The plant would have a net station output of about

461 MW at 230 kV when operating on natural gas under base load

conditions. The plant would consist of two gas combustion turbines

operating principally on natural gas and one steam turbine. The

turbines could also be operated on LPG as a secondary fuel supply and

high grade fuel oil as an emergency source. The LPG would be stored at

a nearby location and transported to the facility by a proposed 10-inch

diameter pipeline. Fuel oil would be stored on the site in a storage

tank.

The power plant facility would consist of a building to house the

steam turbine generator, condenser, control room, electrical room,

battery room, maintenance area, offices, and other activities.

Administrative and storage buildings would also be constructed on the

site. These buildings would serve both the LNG import terminal and

power plant facilities. A perimeter security system and fire

protection/detection system would be monitored both from the

administrative building and the power plant control room.

The power plant facility would also include a substation for the

transfer of electricity generated by the plant to the PREPA system. The

substation would be designed to inter-tie the EcoElectrica power plant

facility to the PREPA circuits. The substation system would also be

used to supply power to the LNG facility's electrical equipment.

A cooling water system would be constructed at the facility to

provide for power plant cooling and desalinated water production.

EcoElectrica has proposed to use a closed cycle seawater cooling tower

(SWCT) system. Other methods of cooling would be analyzed as possible

alternatives.

The SWCT system would consist of 10 cells. Each cell would be 50

feet in length and 50 feet in width. The overall site area would

encompass 100 feet by 250 feet, with a tower 55 feet high from grade to

the top of the fan stack. Water would be obtained from Guayanilla Bay

from an intake pipeline placed under the LNG pier. About 13,000 gallons

per minute of the SWCT blowdown would be mixed with other treated site

water discharge for return to Guayanilla Bay through an offshore

diffuser or discharged into Tallaboa Bay via a near-shore outfall

structure. Water temperatures of the outfall would not exceed

91.4 deg.F under any operating scenario.

EcoElectrica has also proposed construction of a desalination plant

to provide freshwater for power plant operation and to supply potable

water for sale to other users. Freshwater uses at the power plant would

include potable water for internal consumption, utility water, and

after further treatment, high quality boiler feedwater totaling up to

1,000,000 gallons per day. The maximum freshwater production rate

proposed for the desalination plant is expected to be up to 4,000,000

gallons per day. The surplus capacity would be sold for public use.

A Multi-Stage Flash (MSF) distillation technology is proposed to be

used for desalination. MSF distillation plants use thermal energy,

generally supplied in the form of low pressure steam to desalinate

seawater. The combined cycle power plant facility would supply

sufficient amounts of steam at suitable temperatures and pressures to

drive the desalination process.

Offsite Facilities

Several offsite facilities are associated with the project. These

include an electric transmission line, a natural gas accumulator

pipeline, an LPG pipeline, a potable water supply line and new access

roads (see figure 2 for locations of these facilities).

Electric output from the power plant would be supplied to the PREPA

power grid. A 2.3-mile long, 230-kV transmission line would be

constructed between the power plant substation and the existing PREPA

substation. The line would be constructed on steel structures in a 100-

foot wide right-of-way. Existing easements for the transmission

corridor would be used whenever possible.

LPG would be used as the primary fuel during the construction of

the LNG import facility, and as a backup fuel after the LNG facility is

operational. LPG would be supplied to the power plant through a 10-inch

diameter pipeline extending about 3.5 miles from the existing ProCaribe

LPG terminal to the power plant (see figure 2). The LPG supply line

would follow previously permitted pipeline routes and would use

existing pipe racks wherever possible.

Normally, a natural gas accumulator vessel would be incorporated

into the power plant facility infrastructure. It is used to ensure that

natural gas volumes are available to prevent an instantaneous

``emptying'' or ``voiding'' of the supply line during startup of the

plant and to prevent over-pressurization of the line after a shutdown.

Instead, EcoElectrica has proposed to use a pipeline ``stub'' rather

than a vessel that would be built to the northern edge of the facility

along the LPG pipeline right-of-way. This line would serve both as the

accumulator line for the power plant and potentially as a feed for

future natural gas refueling efforts should these markets develop.

EcoElectrica is not seeking approval for additional sales to sources

outside this proposed action.

A water pipeline is also proposed for construction. Surplus

freshwater would be marketed to the Puerto Rico Aqueduct and Sewer

Authority (PRASA) or to other municipal, commercial, or retain

customers. An exact alignment for connection to offsite water supplies

or delivery systems outside the easements acquired from the present

owner (Union Carbide) has not been obtained. Those easements and

environmental documentation would be the responsibility of the PRASA or

other users.

Access roads on the Union Carbide property and the proposed site

would be developed or upgraded to bring workers and construction

materials from route PR-127 and the existing Union Carbide dock (see

figure 2). Roads constructed or upgraded would remain active during

operation of the facility for materials' deliveries and worker access.

Construction

The LNG import facility and cogeneration facilities at Guayanilla

Bay would be constructed by EcoElectrica using conventional

construction procedures and techniques. Two design and construction

schedules have been developed: one for the cogeneration facilities and

another for the LNG import facilities.

The power plant and desalination facilities would be designed and

constructed over a 18 to 24-month period. Site preparation and levee

construction would begin six months after the start of basic

engineering design. Preparation of the site would require raising the

base elevation of the existing site interior (about 5 feet above mean

sea level [msl]) to about 10 feet above msl. Increasing the existing

perimeter height of the levee from 10 feet to between 12 and 16 feet

above msl would also be done. The interior of the site would be filled

with imported soils and caliche. The combined levee construction and

filling of the site interior would require about 175,000 cubic yards of

materials that would be obtained locally from existing sources and

transported to the site.

The southeast quadrant of the proposed site would be used for a

construction material laydown area and the location of temporary

offices. A permanent access road and temporary construction worker

parking area would be located north of the laydown area. An existing

construction off-loading [[Page 14746]] dock would be used during

construction (see figure 2).

Foundation construction would begin about six months after site

preparation activities are begun. Construction of the power plant and

desalination facilities would be complete in about one year from the

start of foundation construction. Startup of the facility is

anticipated two years after the start of basic engineering. Commercial

operation would begin after a one-month startup and commissioning

period.

The power plant structure would be about 75 feet high and

constructed of a steel frame with insulated metal siding and roofing.

The structures will be designed following all Federal, Commonwealth,

and local building codes.

Construction of the proposed LNG facilities would follow a similar

schedule. From basic engineering design to commercial operation would

take about 24 to 30 months. Foundation installation on the LNG facility

would begin about six months after the start of power plant

foundations.

Marine terminal construction would begin four months after the

start of foundation construction. The pier would connect the shore

facilities with the unloading platform.

LNG tank construction would begin one month after the start of the

marine terminal construction. The tanks would be constructed on

insulated concrete pads. The tanks would be designed and constructed

following all requirements of American Petroleum Institute (API) 620

and 49 CFR Part 193. Completion of all LNG facilities is anticipated

about 18 months after initial foundation work. Commercial operation of

the LNG facility is expected to start about one year after the start of

commercial operation of the cogeneration facilities.

The EIS Process

The NEPA requires the Commission to take into account the

environmental impacts that could result from a major Federal action

whenever it considers the approval of a place of import for natural

gas. The PRPB, as a Commonwealth Agency with authority over location

approval and land use control, is required to consider the same

potential impacts within the Commonwealth of Puerto Rico under PREQB

regulations under Article 4(c) of Law No. 9. The joint EIS we are

preparing will give both the PRPB and the Commission the information we

need to do that.

NEPA also requires us to discover and address public concerns about

proposals. We call this ``scoping.'' The main goal of the scoping

process is to focus the analysis in the joint EIS on the important

environmental issues, and to separate those issues that are

insignificant and do not require detailed study. By the Notice of

Intent, the Commission requests public comments on the scope of the

issues it will address in the joint EIS. All comments received are

considered during the preparation of the EIS. State and local

government representatives are encouraged to notify their constituents

of this proposed action and encourage them to comment on their areas of

concern.

The joint EIS will discuss impacts that could occur from the

construction and operation of the proposed project. These impacts may

include, but are not limited to:

Geology and Soils

--Seismology and soil liquefaction

--Erosion control

--Right-of-way restoration

--Hazardous waste sites

--Seismic criteria

Water Resources

--Site-specific impacts on surface and groundwater

--Potential introduction of non-indigenous species and diseases from

tanker ballast water

--Effect on potable water supplies

--Effect in wetland hydrology

--Effect on construction in areas with shallow, contaminated

groundwater

--Effects of water discharge on marine water quality and ambient

temperature

Biological Resources

--Effect of plant construction and operation on threatened and

endangered species

--Effect of increased tanker traffic and marine construction traffic on

manatees along the route

--Effects of construction of terminal on marine life in Guayanilla and

Tallaboa Bays

Cultural Resources

--Effect on historic and prehistoric sites

--Effect on underwater cultural resources

--Native American and tribal concerns

Socioeconomics

--Impact of a peak work force of 400 on surrounding area

--Long-term effects of increased employment and taxes on local economy

Air Quality and Noise

--Air quality and noise impacts associated with LNG and congeneration

facilities during operations

--Air quality and noise impacts associated with construction

Marine Transportation

--Effects of increased marine traffic on existing commercial and

recreational marine traffic

--Probability of increased accident risk and potential for release of

LNG or other hazardous materials

Public Safety

--Compliance with 49 CFR 193 for exclusion zones (thermal and vapor gas

dispersion) siting criteria, and seismic criteria

--Consequences of a major spill, both on land and marine

--Cryogenic design and technical review

Land Use

--Impact on industrial areas

--Effect of rights-of-way and aboveground facilities on visual

aesthetics in the region

--Consistency with local land use plans

--Impact on homes

Cumulative Impacts

--Identification of related projects

--Analysis of cumulative impacts and mitigation measures

We will also evaluate possible site and technology alternatives to

the project and recommend specific mitigation measures to lessen or

avoid impacts on the various resource areas.

Federal and Commonwealth agencies are being asked to indicate

whether they wish to cooperate with us in the preparation of the joint

EIS. These agencies are listed in appendix A and may choose to

participate once they have evaluated the proposed project and their

agencies' responsibilities.\2\

\2\The appendices and figures referenced in this notice are not

being printed in the Federal Register. Copies are available from

FERC's Public Reference Branch, Room 3104, 941 North Capitol Street,

NE., Washington, DC 20426 or call (202) 208-1371. Copies of the

appendices were sent to all those receiving this notice in the mail.

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Our independent analysis of the issues will result in the

publication of a Draft/Preliminary EIS (the term Preliminary EIS is a

specific milestone in the Puerto Rico environmental documentation

procedures). This document will be mailed to Federal, state, and local

agencies, public interest groups, interested individuals, affected

landowners, newspapers, libraries, and the Commission's official

service list for these proceedings. A 45-day comment period will be

allotted for the review of the Draft/Preliminary EIS. We will consider

all comments on the Draft/Preliminary EIS and revise the document, as

necessary, before issuing a Final EIS. The final EIS will include our

response to each comment received. [[Page 14747]]

Public Participation and Scoping Meetings

You can make a difference by sending a letter with your specific

comments or concerns about the project. You should focus on the

potential environmental effects of the proposal, alternatives to the

proposal (including alternative sites), and measures to avoid or lessen

environmental impact. The more specific your comments, the more useful

they will be. Please follow the instructions below to ensure that your

comments are received and properly recorded:

Address your letters to:

Lois Cashell, Secretary, Federal Energy Regulatory Commission, 825

North Capitol St., NE., Washington, DC 20426

Luis Frias, Secretary, Puerto Rico Planning Board, P.O. Box 41119,

Santurce, PR 00940-1119

Reference Docket No. CP95-35-000 (FERC)

Reference Docket No. 94-62-1219-JPU (PRPB)

Send a copy of your letter to the following individuals:

Mr. Chris Zerby, FERC EIS Project Manager, Federal Energy Regulatory

Commission, 825 North Capitol St., NE, Room 7312, Washington, DC 20426

Mrs. Maria Gordillo, PRPB EIS Project Manager, Puerto Rico Planning

Board, P.O. Box 41119, Santurce, Puerto Rico 00940-1119

Mail your comments so that they are received in

Washington, D.C. or Santurce, PR on or before April 17, 1995.

Beside seeking your written comments, we invite you to attend any

of the joint public scoping meetings the FERC and the PRPB will

conduct. The locations and times for these meetings are listed below.

Requests to hold additional public scoping meetings will be considered.

The public meetings will be designed to give you more detailed

information and another opportunity to offer your comments on the

proposed project. Those wanting to speak at the meetings can call the

EIS Project Manager to pre-register their names on the speaker list.

Those people on the speaker list before the date of the meeting will be

allowed to speak first. A second speaker list will be developed at each

meeting. Priority will be given to people representing groups. A

transcript of each meeting will be made so that your comments will be

accurately recorded. This transcript will be available in both Spanish

and English.

Schedule for Joint EIS Public Scoping Meetings

April 18, 1995 (5:00-7:00 pm)

Puerto Rico Planning Board, Minillas Governmental Center, De Diego

Avenue, Stop 22, San Juan, Puerto Rico 00940

April 19, 1995 (5:00-7:00 pm)

City Hall, Penuelas, Puerto Rico

Becoming an Intervenor

In addition to involvement in the EIS process, you may want to

become an official party to the proceedings or an ``intervenor.'' Among

other things, intervenors have the right to receive copies of case-

related FERC documents and filings by other intervenors. Likewise, each

intervenor must provide copies of its filings to all other parties. If

you want to become an intervenor, you must file a Motion To Intervene

according to Rule 214 of FERC's Rules of Practice and Procedure (18 CFR

385.214) which is attached as appendix B.

The date for filing of timely motions to intervene in this

proceeding has passed. Therefore, parties now seeking to file late

interventions must show good cause, as required by section

385.214(b)(3), why this time limitation should be waived. Environmental

issues have been viewed as good cause for late intervention. You do not

need intervenor status to have your scoping comments considered.

Environmental Mailing List

This notice is being sent to all potential interested parties to

solicit focused comments regarding environmental considerations related

to the proposed project. As details of the project become established,

representatives of EcoElectrica will directly contact communities, and

public agencies concerning any other matters, including acquisition of

permits and rights-of-way.

If you do not want to send comments at this time but still want to

keep informed and receive copies of the Draft/Preliminary and Final

EIS, please return the Information Request (appendix C). If you do not

return the Information Request, you will be taken off the mailing list.

Additional information about the proposed project is available from

Mr. Chris Zerby, FERC Project Manager, at (202) 208-0111. Information

concerning the involvement of the Puerto Rico Planning Board can be

obtained from Mrs. Maria Gordillo, PRPB Project Manager, at (809) 727-

4444.

Linwood A. Watson, Jr.,

Acting Secretary.

[FR Doc. 95-6702 Filed 3-17-95; 8:45 am]

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