Notice of Intent To Prepare an Environmental Impact Statement and Notice of Floodplain and Wetlands Involvement for the Proposed Jacksonville Electric Authority Circulating Fluidized Bed Combustor Project

DEPARTMENT OF ENERGY

Notice of Intent To Prepare an Environmental Impact Statement and

Notice of Floodplain and Wetlands Involvement for the Proposed

Jacksonville Electric Authority Circulating Fluidized Bed Combustor

Project

AGENCY: Department of Energy.

ACTION: Notice of intent to prepare an Environmental Impact Statement

(EIS), and notice of floodplain and wetlands involvement.

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SUMMARY: The Department of Energy (DOE) announces its intent to prepare

an Environmental Impact Statement (EIS) pursuant to the National

Environmental Policy Act (NEPA) of 1969, as amended (42 U.S.C. 4321 et

seq.), the Council on Environmental Quality NEPA regulations (40 CFR

Parts 1500-1508), and the DOE NEPA regulations (10 CFR Part 1021), to

assess the potential environmental and human health impacts of the

construction and operation of a project proposed by the Jacksonville

Electric Authority (JEA) that has been selected by DOE to demonstrate

circulating fluidized bed (CFB) technology under the Clean Coal

Technology (CCT) Program. The proposed project would involve

construction and operation of a CFB combustor fueled by coal and

petroleum coke to repower an existing steam turbine at JEA's Northside

Generating Station in Jacksonville, Florida, to generate nearly 300

megawatts of electricity (MWe). This EIS will support a DOE decision

regarding whether DOE will provide approximately $75 million in cost-

shared funding (about 24% of the total cost of approximately $309

million) for the proposed project.

The purpose of this Notice of Intent is to inform the public about

the proposed action; present the schedule for the action; announce the

plans for a public scoping meeting; invite public participation in the

scoping process; and solicit public comments for consideration in

establishing the scope and content of the EIS. The EIS will evaluate

the potential impacts of the proposed action and reasonable

alternatives. Because the proposed project may involve an action in

floodplains and wetlands, the EIS will include a floodplain and

wetlands assessment and a statement of findings in accordance with DOE

regulations for compliance with floodplain and wetlands environmental

review requirements (10 CFR Part 1022).

DATES: To ensure that the full range of issues related to this proposal

is addressed, DOE invites comments on the scope and content of the EIS

from all interested parties. All comments must be received by December

31, 1997, to ensure consideration. Late comments will be considered to

the extent practicable. In addition to receiving comments in writing

and by telephone, DOE will conduct a public scoping meeting in which

agencies, organizations, and the general public are invited to present

oral comments or suggestions with regard to the range of actions,

alternatives, and impacts to be considered in the EIS. The scoping

meeting will be held at the Northside Generating Station, In-Plant

Conference Room, 4377 Heckscher Drive, Jacksonville, Florida, on

Wednesday, December 3, 1997, at 7 p.m.

ADDRESSES: Written comments and requests to participate in the public

scoping process should be addressed to: Dr. Jan Wachter, NEPA Document

Manager for the JEA Project, Federal Energy Technology Center, U.S.

Department of Energy, 3610 Collins Ferry Road, Morgantown, WV 26507-

0880. Individuals who would like to verbally or electronically provide

comments should contact Dr. Wachter at direct telephone 304-285-4607;

toll free number 1-800-432-8330 (ext. 4607); fax 304-285-4469; or E-

mail [email protected]

FOR FURTHER INFORMATION CONTACT: To obtain additional information about

this project or to receive a copy of the draft EIS when it is issued,

contact Dr. Jan Wachter at the address provided above. For general

information on the DOE NEPA process, contact Ms. Carol M. Borgstrom,

Director, Office of NEPA Policy and Assistance (EH-42), U.S. Department

of Energy, 1000 Independence Avenue, S.W., Washington, D.C. 20585-0119;

telephone 202-586-4600; or leave a message at 1-800-472-2756.

SUPPLEMENTARY INFORMATION:

Background and Need for the Proposed Action

Under Public Law 99-190, Congress provided authorization and funds

to DOE to support the construction and operation of demonstration

facilities selected for cost-shared financial assistance as part of

DOE's CCT Program. In December 1985, Congress made funds available to

DOE for conducting the first round of the CCT Program. Congress

directed that this first solicitation for federal cost-sharing (1) be

open to all market applications of clean coal technologies, (2) apply

to any segment of the U.S. coal resource base, and (3) encompass both

new and retrofit applications. In response to the solicitation,

proposals were received and projects were selected by DOE for

negotiation. In addition, a list of alternate candidates was

established from which replacement selection could be made should any

of the original selections not proceed. JEA's proposed CFB combustor

project has evolved through a series of site changes from a project

that was selected from the alternate list for demonstration.

The demonstration of JEA's CFB combustor project under the CCT

Program would fulfill an existing DOE programmatic need. Coal has the

potential to address critical energy supply issues because of its

abundant reserves; however, barriers to increased use of coal include

concerns about environmental issues, such as acid deposition, global

climate change, polyaromatic hydrocarbon emissions, and solid waste.

Since the early 1970's, DOE and its predecessor agencies have sponsored

long-term programs to develop innovative coal technologies through the

proof-of-concept stage to overcome these environmental barriers while

improving combustion efficiency and reducing costs.

However, the availability of a technology at the proof-of-concept

stage is not sufficient to ensure its continued development and

subsequent commercialization. Before any technology can seriously be

considered for commercialization, it must be demonstrated at a large

enough scale to prove its reliability and to show economically

competitive performance. The financial risk associated with such large-

scale demonstration is, in general, too high for the private sector to

assume in the absence of strong incentives. The congressionally-

directed CCT Program provides a mechanism to accelerate the

commercialization of innovative technologies to meet the nation's near-

term energy and environmental goals, to

[[Page 60890]]

reduce technological risk to industry to an acceptable level, and to

provide private sector incentives required for continued research and

development aimed at finding solutions to long-range energy supply

problems.

Proposed Action

The proposed action is for DOE to provide, through a cooperative

agreement with JEA, cost-shared financial assistance to JEA for the

design, construction, and operation of the proposed project, as

described below. JEA plans to form an alliance with Foster Wheeler

Corporation through its subsidiary, Foster Wheeler Power Systems, Inc.,

to jointly own and operate the project. Together with other Foster

Wheeler affiliates, Foster Wheeler Power Systems, Inc. will provide the

CFB combustor and perform the project engineering, procurement, and

construction. The demonstration project would last 24 months and cost

approximately $309 million, with DOE's share being nearly $75 million

(24%). The proposed project would be located at JEA's existing

Northside Generating Station in Jacksonville, Florida, which currently

consists of 3 heavy oil- and natural gas-fired steam generation units

and 4 diesel oil-fired combustion turbine units.

The Northside Generating Station is approximately 10 miles north of

downtown Jacksonville, Florida. The Northside Generating Station is an

industrial site encompassing approximately 400 acres, with 200 acres

devoted to existing steam generation units, combustion turbine units,

and associated infrastructure. New construction associated with JEA's

proposed CFB combustor project would occupy approximately 60 acres of

previously disturbed land. The Northside Generating Station contains a

number of wetland areas, especially in the perimeter areas. Preliminary

analysis indicates that the site may be in a hurricane storm surge

area, in addition to the 100-year floodplain of the St. Johns River.

The most significant environmental feature associated with the

Northside Generating Station is the nearby presence of estuarine salt

marsh backwaters of the St. Johns River. St. Johns River Power Park, an

industrial site which consists of two 624 MWe coal- and petroleum coke-

burning power plants on 1,656 acres, is adjacent to the Northside

Generating Station.

The overall objective of the project is to demonstrate the

feasibility of CFB technology at a size that will be attractive for

large-scale utility operation. The new CFB combustor would use coal and

petroleum coke to generate nearly 300 MWe by repowering the existing

Unit 2 steam turbine, a 297.5-MWe unit that has been out of service

since 1983. The project is expected to provide JEA with a low-cost,

efficient, and environmentally-sound generating resource. In addition,

JEA plans to repower the currently operating Unit 1 steam turbine

without cost-shared funding from DOE. The Unit 1 steam turbine will be

essentially identical to the turbine for Unit 2, and is scheduled to be

repowered about 6 to 12 months after the Unit 2 repowering. While the

proposed project only consists of the Unit 2 repowering (because DOE

would provide no funding for the Unit 1 repowering), the EIS will

evaluate the Unit 1 repowering as a related action.

In a CFB combustor, coal and coal/fuel blends, air, and limestone

are introduced into the lower portion of the combustor, where initial

combustion occurs. As the fuel is reduced in size through combustion

and breakage, it is transported higher in the combustor where

additional air is introduced. Ash and unburned fuel and limestone pass

out of the combustor, collect in a particle separator, and recirculate

to the lower portion of the combustor. Sulfur reacts with limestone

added in the furnace to form ash that can be marketed as a useful

byproduct such as roadbed material.

For the proposed project, the combined installation of the CFB

combustor and a flue gas scrubber is expected to remove over 97% of the

sulfur dioxide emitted from burning coal that contains up to 4.5%

sulfur. The relatively low furnace operating temperature of about

1650 deg.F would result in appreciably lower nitrogen oxide emissions

compared to conventional coal-fired power plants.

The project would also include a new selective non-catalytic

reduction system to further reduce emissions of nitrogen oxides. Over

99.8% of particulate emissions would be removed by a new baghouse or a

new electrostatic precipitator.

In addition to the CFB combustor itself and the air pollution

control systems, new equipment for the project would include a new

stack and new fuel, limestone, and ash handling systems. The height of

the proposed new stack is expected to be approximately 450 feet

compared to 300 feet for the existing stack at Unit 2. The project

would also require overhaul and/or modifications to existing systems

such as the steam turbine, condensate and feedwater systems,

circulating water systems, water treatment systems, plant electrical

distribution systems, the switchyard, and the control systems.

Options being considered for transport of coal include (1) an

extension of conveyors from the nearby St. Johns River Power Park, and

(2) construction of new receiving, handling, and storage facilities for

solid fuel. Limestone and ash storage and handling facilities also

would be required. Wherever possible, existing facilities and

infrastructure located at the Northside Generating Station would be

used for the proposed project. These include the discharge system for

cooling water to the St. Johns River, the wastewater treatment system,

and the electric transmission lines and towers.

Because Unit 2 has not operated since 1983, the baseline emissions

from that unit are zero. Units 1 and 3 have been operating at annual

capacity factors of less than 40%, firing either heavy oil or natural

gas. Unit 3 would continue as a 563.7-MWe oil/gas-fired unit. With the

exception of low-NOX (nitrogen oxide) burners on Unit 3,

Units 1 and 3 are not currently equipped with emission control systems.

The area is in attainment of the National Ambient Air Quality

Standards. However, as part of JEA's commitment to the local community

in the implementation of this project, JEA has committed to a 10%

reduction in the annual stack emissions for criteria pollutants (i.e.,

sulfur dioxide, nitrogen oxides, and particulate matter) from the

Northside Generating Station (as compared to recent annual emissions).

In achieving this objective, the combined emissions from the repowered

Units 1 and 2 operating at annual capacity factors of 100% are

projected to be less than recent typical annual emissions from Unit 1

alone.

Another part of JEA's community commitment is that groundwater

consumption will be reduced by at least 10% from recent levels. This

would be accomplished by increased recycling of the treated wastewater

produced at the station. Plant wastewater is presently treated with

lime, followed by clarification in settling basins. While some recycled

water is currently utilized, most of the treated wastewater is

discharged to percolation ponds. Should the proposed project be

implemented, the discharge of treated wastewater to the ponds would be

reduced.

Project activities would include engineering and design,

permitting, equipment procurement, construction, startup, and a 24-

month demonstration of the commercial feasibility of the technology.

DOE plans to complete the EIS and issue a Record of Decision

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within 15 months of publication of this Notice of Intent, assuming

timely delivery of environmental information from JEA for use in

developing the EIS. Upon completing its NEPA review, if DOE decides to

implement the proposed action, construction would commence in early

1999 and finish in late 2001, startup would occur in early 2002, and

demonstration of the technology would begin in April 2002. During the

demonstration, Unit 2 would be operated on several different types of

coal and coal/fuel blends to demonstrate the flexibility of the

technology. Upon completion of the demonstration phase, the facility

would continue its commercial operation.

Alternatives

NEPA requires that agencies discuss the reasonable alternatives to

the proposed action in an EIS. The purpose for agency action determines

the range of reasonable alternatives. Congress established the CCT

Program with a specific purpose: to demonstrate the commercial

viability of technologies that use coal in more environmentally benign

ways than conventional coal technologies. Congress also directed DOE to

pursue the goals of the CCT Program by means of partial funding (cost-

sharing) of projects owned and controlled by non-federal government

sponsors. This statutory requirement places DOE in a much more limited

role than if the federal government were the owner and operator of the

project. In the latter situation, DOE would be responsible for a

comprehensive review of reasonable alternatives. However, in dealing

with an applicant, the scope of alternatives is necessarily more

restricted. It is appropriate in such cases for DOE to give substantial

weight to the applicant's needs in establishing a project's reasonable

alternatives.

An overall strategy for compliance with NEPA was developed for the

CCT Program that includes consideration of both programmatic and

project-specific environmental impacts during and after the process of

selecting a project. As part of the NEPA strategy, the EIS for JEA's

proposed CFB combustor project will tier off the program's final

Programmatic Environmental Impact Statement (PEIS) that was issued by

DOE in November 1989 (DOE/EIS-0146). Two alternatives were evaluated in

the PEIS: (1) the no action alternative, which assumed that the CCT

Program was not continued and that conventional coal-fired

technologies, with flue gas desulfurization and nitrogen oxide controls

to meet New Source Performance Standards, would continue to be used;

and (2) the proposed action, which assumed that the clean coal projects

would be selected and funded, and that successfully demonstrated

technologies would undergo widespread commercialization by the year

2010.

For JEA's proposed CFB combustor project, the range of reasonable

alternatives to be considered in the EIS is also narrowed in accordance

with the overall NEPA strategy. The no action alternative will be

analyzed in the EIS as a reasonable alternative to the proposed action

of providing cost-shared funding support for the proposed project. DOE

will consider any other reasonable alternatives that may be suggested

during the public scoping period.

Under no action, DOE would not provide partial funding for the

design, construction, and operation of the project. In the absence of

DOE funding, there are three options that JEA could reasonably pursue.

These options will be analyzed under the no action alternative. JEA

could construct the proposed project without DOE cost-shared funding.

Under this scenario, the potential environmental impacts or benefits at

Northside Generating Station are expected to be identical to those of

the proposed project. A second option is that JEA could construct a new

gas-fired combined cycle facility at Northside Generating Station or at

another location. Under this scenario, potential environmental impacts

or benefits at Northside Generating Station would vary from those of

the proposed project. A third option is that JEA could purchase

electricity from other utilities to meet JEA's projected demand. Under

this scenario, potential environmental impacts or benefits at Northside

Generating Station related to demonstration of the proposed project

would not be realized. In addition, the second and third options would

not contribute to the objective of the CCT Program, which is to make

available to the U.S. energy marketplace advanced, more efficient,

economically feasible, and environmentally acceptable coal

technologies.

Because of DOE's limited role of providing cost-shared funding for

JEA's proposed project and because of the advantages associated with

the proposed location, DOE does not plan to evaluate alternative sites

for the proposed project. JEA considered additional sites during its

site selection process. Site selection was governed primarily by

benefits that could be realized by JEA. An existing plant site was

preferred because the cost associated with construction of the project

at a ``greenfield'' site in an undisturbed area would be much higher,

and the environmental impact likely would be much greater than at an

existing facility. The existing Northside Generating Station has

several advantages because it is an operating plant with land available

for installation of new facilities. Much of the required

infrastructure, including the electric transmission lines and towers,

is already in place, thereby reducing the level of capital investment

and construction impacts. The station has the flexibility to

accommodate possible fuel delivery needs with its existing rail and

water facilities. Furthermore, most of the operational staffing for the

new facility would be accommodated by the existing Northside Generating

Station staff.

Preliminary Identification of Environmental Issues

The following issues have been tentatively identified for analysis

in the EIS. This list, which was developed partly on the basis of

concerns provided by the public in response to JEA's stakeholder

outreach program, is not intended to be all inclusive, but is presented

to facilitate public comment on the scope of the EIS. Additions to or

deletions from this list may occur as a result of the scoping process.

The issues include:

(1) Atmospheric Resources: potential air quality impacts resulting

from air emissions during current and future operation of Northside

Generating Station (e.g., effects of ground-level concentrations of

criteria pollutants, and trace metals including mercury, on surrounding

residential areas and the Timucuan Preserve (a National Park Service

Class II ecological and historic preserve adjacent to the western edge

of the Northside Generating Station); potential effects of greenhouse

gas emissions on global climate change;

(2) Water Resources and Aquatic Ecology: potential effects on

surface water and groundwater resources consumed and discharged;

potential effects on estuarine salt marsh ecosystems and aquatic biota

resulting from withdrawing and discharging cooling water from the St.

Johns River (e.g., thermal discharge, entrainment or impingement of

fish and invertebrate species);

(3) Infrastructure and Land Use: potential effects resulting from

the transport of coal, petroleum coke, and limestone required for the

proposed project, including the development of land for infrastructure,

storage, or waste disposal; affected resource areas including land

(e.g., existing shoreline and wetlands), utilities, and

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transportation routes (e.g., train traffic to supply coal);

(4) Solid Waste: pollution prevention and waste management

practices, including solid waste impacts, caused by the generation,

treatment, transport, storage, and disposal of solid wastes;

(5) Construction: impacts associated with noise, traffic patterns,

and construction-related emissions;

(6) Visual: impacts associated with a new stack that is taller than

existing structures at Northside Generating Station;

(7) Floodplains: potential impacts (e.g., impeding floodwaters, re-

directing floodwaters, on-site and off-site property damage) of siting

new buildings and infrastructure within floodplain and hurricane storm

surge areas;

(8) Wetlands: potential reduction of wetlands due to new

construction (e.g., construction associated with feedstock transport

infrastructure);

(9) Community Impacts: impacts on public safety related to fire and

emergency vehicle access to the Northside community of Jacksonville;

impacts to local traffic patterns resulting from rail traffic;

socioeconomic impacts on public services and infrastructure (e.g.,

police protection, schools, and utilities); noise associated with

project operation; environmental justice with respect to the

surrounding community; and

(10) Cumulative effects that result from the incremental impacts of

the proposed project when added to other past, present, and reasonably

foreseeable future actions (e.g., incremental discharge of cooling

water affecting aquatic biota).

Public Scoping Process

To ensure that the full range of issues related to this proposal

are addressed, DOE will conduct an open process to define the scope of

the EIS. The public scoping period will run until December 31, 1997.

Interested agencies, organizations, and the general public are

encouraged to submit comments or suggestions concerning the content of

the EIS, issues and impacts to be addressed in the EIS, and the

alternatives that should be analyzed.

Scoping comments should clearly describe specific issues or topics

that the EIS should address in order to assist DOE in identifying

significant issues. Written, e-mailed, faxed, or telephoned comments

should be communicated by December 31, 1997 (see ADDRESSES).

In addition, a public scoping meeting to be conducted by DOE will

be held in the In-Plant Conference Room at the Northside Generating

Station on December 3, 1997, at 7 p.m. The address of the Northside

Generating Station is 4377 Heckscher Drive, Jacksonville, Florida. DOE

requests that anyone who wishes to speak at this public scoping meeting

contact Dr. Jan Wachter, either by phone, fax, computer, or in writing

(see ADDRESSES in this Notice). Individuals who do not make advance

arrangements to speak may register at the meeting and will be given the

opportunity to speak after all previously scheduled speakers have made

their presentations. Speakers who wish to make presentations longer

than five minutes should indicate the length of time desired in their

request. Depending on the number of speakers, it may be necessary to

limit speakers to five minute presentations initially, with the

opportunity for additional presentation as time permits. Speakers can

also provide additional written information to supplement their

presentations. Oral and written comments will be given equal weight.

DOE will begin the meeting with an overview of the proposed CFB

combustor project. A presiding officer will be designated by DOE to

chair the meeting. The meeting will not be conducted as an evidentiary

hearing, and speakers will not be cross-examined. However, speakers may

be asked to clarify their statements to ensure that DOE fully

understands the comments or suggestions. The presiding officer will

establish the order of speakers and provide, any additional procedures

necessary to conduct the meeting.

Issued in Washington, D.C., this 6th day of November, 1997.

Peter N. Brush,

Acting Assistant Secretary, Environment, Safety and Health.

[FR Doc. 97-29890 Filed 11-12-97; 8:45 am]

BILLING CODE 6450-01-P