Red Hills Power Project

TENNESSEE VALLEY AUTHORITY

Red Hills Power Project

AGENCY: Tennessee Valley Authority.

ACTION: Issuance of record of decision.

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SUMMARY: This notice is provided in accordance with the Council on

Environmental Quality's regulations (40 CFR parts 1500 to 1508) and

TVA's procedures implementing the National Environmental Policy Act.

TVA has decided to adopt the preferred alternative identified in its

Final Environmental Impact Statement (EIS) on the Proposed Purchase of

Electricity Generated by the Red Hills Power Project (RHPP). The Final

EIS was made available to the public on July 3, 1998. A notice of

Availability of the Final EIS was published in the Federal Register on

July 10, 1998. Under the preferred alternative, TVA would commit to

purchase all of the electricity generated by the Red Hills Power

Project in Choctaw County, Mississippi. This would result in the

construction and operation of a 440-megawatt (MW) lignite-fueled

generation facility by Choctaw Generation Limited

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Partnership and an adjacent surface lignite mine by Mississippi Lignite

Mining Company. TVA would also construct a transmission line connecting

the generation facility to the TVA power distribution system; this

transmission line would be constructed within Corridor A (the preferred

alternative corridor).

FOR FURTHER INFORMATION CONTACT: Charles P. Nicholson, NEPA Specialist,

Environmental Management, Tennessee Valley Authority, 400 West Summit

Hill Drive, WT 8C, Knoxville, Tennessee 37902-1499; telephone (423)

632-3582 or e-mail [email protected].

SUPPLEMENTARY INFORMATION: In December 1995, TVA issued its ``Energy

Vision 2020 Integrated Resource Plan and Final EIS.'' This document

projected demands for electricity in the TVA power service area through

the year 2020 and evaluated different ways of meeting these projected

increases. Under the load forecast adopted by TVA, the demand for

electricity was projected to exceed TVA's 1996 generating capacity of

28,000 MW by 6,250 MW in 2005. TVA plans to meet this demand through a

combination of supply-side options, customer service options, and

environmental control options. One of the supply-side options is

purchasing power from independent power producers. An independent power

producer, Tractebel Power, Inc., parent company of Choctaw Generation

Limited Partnership, and Phillips Coal Company, parent company (along

with The North American Coal Company) of Mississippi Lignite Mining

Company, joint venture partners in the RHPP, submitted a proposal to

TVA for the sale of the total electric power output from the RHPP.

TVA provided public notice of its intent to prepare an

Environmental Impact Statement on its proposed purchase of power from

the RHPP on October 16, 1996. A public meeting on the proposal was held

on November 15, 1996. TVA released its draft EIS on February 13, 1998,

and held a public meeting to receive comments on the document on March

12, 1998. Comments were received from two federal and four state

agencies, two corporations, one university institute, seven

representatives of local governments or development corporations, and

seven individuals. After considering all comments, TVA revised the EIS

appropriately. The Final EIS was distributed to commenting agencies and

the public on July 2, 1998.

Alternatives Considered

Alternative methods of meeting TVA's future electrical generation

capacity requirements were evaluated in ``Energy Vision 2020.'' One of

the selected methods was the purchase of power from independent power

producers such as Tractebel. Tiering from ``Energy Vision 2020,'' the

RHPP Final EIS evaluates a No Action Alternative and an Action

Alternative.

Under the No Action Alternative, TVA would not purchase the

electricity generated by the RHPP. TVA would also not construct a

transmission line connecting the generation facility to the TVA power

distribution system. The environmental impacts associated with TVA's

purchase of this electrical power would not occur, and TVA would

consider other options for meeting its future electrical demands. This

would not necessarily preclude eventual development of the generation

facility and/or mine, with the electricity sold to another purchaser.

Under the Action Alternative, TVA would commit to purchasing the

electricity generated by the RHPP and would construct a transmission

line connecting the generation facility to the TVA power distribution

system. The generation facility would be built near the town of

Ackerman, Choctaw County, Mississippi. It would use two circulating

fluidized bed boilers with limestone injection, feeding a single steam

turbine with a net output of 440 MW of electricity. The facility would

consume about 3 million tons per year of lignite from the adjacent

lignite mine. To control sulfur emissions, the lignite would be burned

with about 235,000 tons per year of limestone from existing quarries in

central Mississippi. Other air emissions would be controlled by use of

the circulating fluidized bed boilers, combustion controls, and a

fabric filter baghouse. The facility would also be capable of cofiring

up to 245,000 tons per year of wood waste. Both limestone and wood

waste would be transported to the facility by truck. The generation

facility would produce about 677,000 tons per year of ash, which would

be trucked from the facility to an adjacent ash management unit.

The generation facility would use a wet mechanical draft cooling

tower system. With the anticipated maximum reuse of cooling water, a

continuous source of about 6.33 million gallons per day of blowdown

makeup water would be required. This would be supplied by three nearby

wells pumping water from the Massive Sands of the Tuscaloosa Aquifer

System at depths of about 3,000 feet. Blowdown from the cooling tower

would be processed for removal of silica and other dissolved solids and

recycled to the cooling system. Reject water from the silica removal

process would be used to wet the ash to control dust. There would be no

discharges of wastewater from generation facility systems.

The lignite mine would be located between the generation facility

and the Natchez Trace Parkway. Mine development would begin in late

1998, and consist of construction of access roads, mine support

facilities, a lignite handling facility, temporary stream diversions, a

stormwater runoff control pond, and sedimentation control ponds.

Overburden removal would begin in 1999 and actual lignite mining

operations would begin in 2000, concurrent with the completion of the

generation facility.

Mining would begin near the generation facility, progress towards

the northwest, and disturb about 110 acres per year. Over the 30-year

life of the mine, about 4,700 acres would be disturbed, 1,400 acres by

mine development activities and 3,300 by lignite removal operations.

Lignite would be mined from six seams. Overburden would be removed by a

combination of electric or diesel-powered shovels, trucks, dozers, and

a dragline. Lignite would be loaded by front-end loaders and hydraulic

backhoes, and transported from the mine pit to the lignite handling

facility by high capacity dump trucks. The lignite would be crushed at

the lignite handling facility and transported by conveyor to the

generation facility.

Reclamation would be concurrent with mining. Following removal of

the final lignite seam, the mine pit would be filled with overburden

spoil from the adjacent active mine pit. Spoil would be regraded to

approximate the original contours and drainage patterns. A topsoil

substitute consisting of selected, oxidized overburden materials would

then be spread over the graded mine spoil. Soil amendments would be

added as necessary. A cover crop would be planted or mulch spread over

the area being reclaimed. The plant species used in establishing the

permanent vegetative cover would vary with the postmining land use,

which would be dependent on premining land use and surface landowner

preferences. Most of the mined areas would likely be reclaimed as

commercial forest planted with loblolly pine.

Two potential routes for the transmission line connecting the

generation facility to the TVA power distribution system were

evaluated, Corridor A and Corridor B. Corridor A

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is 10.3 miles long. About 5.4 miles of Corridor A would parallel an

existing transmission line; the remainder would be on new right-of-way.

Corridor B is 10.9 miles long and all on new right-of-way. The cleared

right-of-way for each corridor would vary from 100 to 175 ft wide. The

transmission line would be a double-circuit, 161-kV line using steel

double pole structures with horizontal cross arms. TVA would also

expand the switchyard facilities at its Sturgis substation to

accommodate the new line.

Choctaw County and the state of Mississippi plan to develop the Red

Hills EcoPlex industrial park near the generation facility. Targeted

industries would use steam and other generation facility byproducts.

Initial EcoPlex development would occupy about 500 acres and, when

fully occupied, about 1,000 acres would be developed. The Final EIS

describes cumulative impacts of EcoPlex development and operation,

which are not TVA actions.

Decision

TVA has decided to purchase the electricity generated by the RHPP,

and to construct the associated transmission line within Corridor A.

Purchasing power from the RHPP will help TVA meet the demand for

electricity in its service area and maintain reliable service to its

customers. TVA's actions were identified as both the Action Alternative

and the Preferred Alternative in the Final EIS.

Environmentally Preferable Alternative

Because the No Action Alternative would make the construction and

operation of the generation facility, lignite mine, and transmission

line less likely, it could be characterized as the environmentally

preferable alternative. It would not, however, accomplish TVA's goal of

securing additional electrical generation capacity, and would not

provide the significant local socioeconomic benefits forecast under the

Action Alternative. TVA would have to choose another source of

electrical generation capacity. Other potential sources, described in

``Energy Vision 2020,'' would result in their own impacts which would

likely be equal to or less than those resulting from the Action

Alternative. However, none of these other generation alternatives would

produce the local socioeconomic benefits that would result from the

RHPP.

Environmental Consequences and Commitments

TVA, Choctaw Generation Limited Partnership, and Mississippi

Lignite Mining Company have adopted many mitigation measures to avoid

or minimize environmental harm. TVA has adopted the following

mitigation measures pertaining to its construction and operation of the

transmission line:

All construction and maintenance activities will utilize

applicable Best Management Practices. Construction activities will also

adhere to the Right-of-Way Clearing Specifications and Environmental

Quality Protection Specifications for Transmission Line Construction

listed in Appendix B-2 of the Final EIS. These list requirements for

protecting sensitive areas, water and air quality, reducing noise, and

disposing of wastes.

Wetlands will be avoided to the extent practicable.

Identified wetlands, streams, and drainage ways will not be modified so

as to alter their natural hydrological patterns during transmission

line clearing, construction, and maintenance. Hydric soils will not be

disturbed or modified in any way that would alter their hydrological

properties.

Initial right-of-way clearing within forested wetlands

will be accomplished using accepted silvicultural practices for timber/

vegetation harvesting within wetlands.

Within streams, riparian zones, and wetlands, trees will

be above ground level and stumps will not be uprooted or removed.

Transmission line maintenance using mechanical means in

areas surrounding or adjacent to identified wetlands will only be

conducted during seasonal dry periods, usually late summer or early

fall, and will be accomplished without the use of heavy equipment.

Potential impacts to the two historic properties will be

minimized by maintaining existing trees between the churches and the

transmission line, and by placing transmission line poles in locations

where they will not be visible from the properties.

Any herbicide applications would be by licensed personnel

and use EPA-registered herbicides.

Many mitigation measures are required as conditions of permits

issued by the Mississippi Department of Environmental Quality (MDEQ)

and the U.S. Army Corps of Engineers. These include the following:

Air emissions will comply with limits set in the PSD

permit to be issued by MDEQ.

During all construction activities and mine operations,

open burning will only be conducted in accordance with applicable

regulations and Mississippi Forestry Commission guidelines. Fugitive

dust will also be controlled as necessary.

Best Management Practices for silt control will be

utilized during all construction activities and during mine operations.

These practices include use of filter fabric fences, hay bale dikes,

sedimentation ponds and revegetation.

Discharges to surface waters will comply with limits set

in NPDES permits to be issued by MDEQ. Stormwater will be managed in

accordance with Storm Water Pollution Prevention plans and accidental

spills will be managed in accordance with Spill Prevention Control and

Countermeasure plans.

Well operations will comply with MDEQ water supply permit

limitations. Alternative water supplies will be provided to residents

whose supplies are disrupted by project operations.

Streams impacted by mining will be restored to their

premining locations and approximate drainage patterns. Streambanks will

be revegetated and approximate premining drainage patterns will be

restored.

Special handling techniques will be used for unoxidized

mine overburden containing acid-or toxic-forming materials. Anoxic

limestone drains or other techniques will be used to neutralize acidic

seeps if they appear following mine reclamation.

Liquid fuels, oils, and other chemicals will be stored in

curbed or diked areas. Pollution Prevention Plans will be implemented.

The generation facility and mine will register with EPA as

Conditionally Exempt Small Quantity Generators or Small Quantity

Generators. Hazardous wastes will be managed in accordance with

applicable RCRA regulations.

The ash management facility will be built and operated in

accordance with conditions of the MDEQ Special/Industrial Solid Waste

Permit.

Wetlands eliminated by mining activities will be mitigated

to a minimum mitigation ratio of 2:1 in compliance with U.S. Corps of

Engineers permit requirements. Wetland mitigation for the generation

facility will consist of creation of 8.8 acres of wetlands and purchase

and preservation of 19 acres of forested wetlands, which also meets

Corps requirements. All wetland mitigation for mining activities will

occur on the mine site or elsewhere in affected watersheds. Only native

plant species will be used in creating or restoring wetlands. All

wetland mitigation projects will include multi-year monitoring plans

and success determination criteria.

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Backfilling and grading of mined areas will be

contemporaneous with mining.

Mined areas will be reclaimed to have a soil productivity

at least as high as existed before mining.

Native plant species, in combination with approved

introduced species, will be used in establishing permanent vegetative

cover during mine reclamation. The survival of permanent plantings will

be monitored for at least five years and additional plantings made as

necessary to meet reclamation requirements.

Hardwood trees will be planted in buffer strips at least

50 feet wide on each side of reclaimed streams. Mast and fruit-bearing

trees and shrubs will be planted in clumps throughout the reclaimed

mine area.

Except for the populations of swamp hickory and pin oak,

the populations of state-listed plants within the mine area will be

either avoided or transplanted to protected areas.

The cactus community and spring-head seepage area located

near the northwest corner of the mine will either be avoided or

mitigated by transplantation or other means.

Mining impacts to historic and archaeological resources

will be mitigated in accordance with the June, 1998 Memorandum of

Understanding among the Mississippi Lignite Mining Company, MDEQ,

Mississippi State Historic Preservation Officer, and the Advisory

Council on Historic Preservation. No mining will occur within 100 feet

of the Tullos Cemetery.

Road closure and relocation plans will be approved by the

Choctaw County Board of Supervisors. All public roads will be rebuilt

to meet or exceed existing standards in their original locations or

more suitable, approved locations. Access by surface landowners to

lands not being mined will be maintained throughout mine operations.

Following are additional mitigation measures which Choctaw

Generation Limited Partnership and Mississippi Lignite Mining Company

have committed to carrying out, as described in an agreement with TVA:

No mining construction activities, such as construction of

sedimentation ponds, will occur within 500 feet of National Park

Service lands, and no lignite removal will occur within 2,000 feet of

the Natchez Trace Parkway centerline or within 1,000 feet of the

property line around the Little Mountain Overlook.

Tree buffers will be maintained or planted around the edge

of the generation facility site.

Lighting techniques designed to reduce impacts to the

darkness of the night sky will be used by the generation facility and

mine. Replacement ``dark sky'' lighting equipment will be provided by

the generation facility for existing commercial facilities at the

entrance to the Jeff Busby developed area.

Choctaw Generation Limited Partnership and Mississippi

Lignite Mining Company will instruct their vendors that the vendors'

trucks are not to use the Natchez Trace Parkway when delivering

materials and supplies to the RHPP. Employees will be discouraged from

commuting on the Parkway.

Project facilities and operations will be designed to

minimize noise levels. Mississippi Lignite Mining Company and the

National Park Service will cooperatively monitor noise at Little

Mountain Overlook using the L90 noise metric.

Generation facility and mine employees will receive fire

and safety training. Mine employees will receive emergency medical

training. Emergency services will be coordinated with local providers.

Dated: August 10, 1998.

William J. Museler,

Executive Vice President, Transmission/Power Supply Group.

[FR Doc. 98-22471 Filed 8-20-98; 8:45 am]

BILLING CODE 8120-08-P