Intent To Prepare an Environmental Impact Statement for the Proposed Minnesota Agri-Power Plant and Associated Facilities

DEPARTMENT OF ENERGY

Intent To Prepare an Environmental Impact Statement for the

Proposed Minnesota Agri-Power Plant and Associated Facilities

AGENCY: Department of Energy.

ACTION: Notice of intent to prepare an environmental impact statement.

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SUMMARY: In accordance with the National Environmental Policy Act of

1969 (NEPA), and Minnesota Statutes, Ch 116D, the U.S. Department of

Energy (DOE) and the Minnesota Environmental Quality Board [MEQB, a

Minnesota State agency] announce their intent to prepare a joint

Environmental Impact Statement (EIS) regarding a proposal by the

Minnesota Valley Alfalfa Producers (MnVAP) to construct and operate a

75-103 megawatt biomass

[[Page 53886]]

fueled gasifier and electric generating facility, known as the

Minnesota Agri-Power Plant (MAPP), and associated transmission lines

and alfalfa processing facilities. The plant would be fueled with

alfalfa stems grown and processed primarily in Minnesota and South

Dakota. Two sites (preferred and alternative) for the power plant have

been proposed by MnVAP near Granite Falls, Minnesota. Depending upon

the site selected for the power plant, 115 kilovolt (kV) transmission

lines would run between two and six miles to an existing substation

owned by Northern States Power Company in Granite Falls. Alfalfa

processing facilities for separating the alfalfa leaves from stems

would be located throughout the growing region when the locations of

growers are established.

DOE proposes to partially fund the MAPP project, through a

cooperative agreement with MnVAP for a renewable energy technology

commercialization project under various provisions of the Energy Policy

Act of 1992 (Pub. L. 102-486). Under the applicable Minnesota Statutes

and Department of Energy NEPA regulations (10 CFR Part 1021), the

proposed action requires an EIS. In the spirit of the regulations of

the Council on Environmental Quality (CEQ) implementing NEPA (40 CFR

1501.5(b)) and Minnesota Rules Part 4410.3900, DOE and MEQB will be

``joint lead agencies,'' to satisfy the requirements of NEPA and the

Minnesota Environmental Policy Act (MEPA). The document will be titled

Minnesota Agri-Power Plant Project Environmental Impact Statement, DOE-

EIS/0300/MAPP-P-1.

In this notice, DOE and MEQB announce their intentions to prepare

an EIS and hold public scoping meetings for the proposed project. The

scoping process will include notification of the public and Federal,

State, Tribal, and local agencies of the proposed action, and

identification by the public and agencies of issues and reasonable

alternatives to be considered in the EIS.

DATES: The public scoping period begins with the publication of this

Notice of Intent and will continue until December 9, 1998. The purpose

of this Notice is to encourage public involvement in the EIS process

and to solicit public comments on the proposed scope and content of the

EIS. DOE and MEQB will hold public scoping meetings at the following

locations and times:

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Location Address Times

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St Paul, Minnesota............... Minnesota History 7-9 PM, Monday, November 16, 1998.

Center, 345 West

Kellogg Boulevard.

Granite Falls, Minnesota......... American Legion 60 7-9 PM, Tuesday, November 17, 1998.

6th Street.

Ada, Minnesota................... Ada Elementary 7-9 PM, Wednesday, November 18, 1998.

School Gym, 209 6th

Street West.

Redfield, South Dakota........... Leo's Cafe, 602 N. 7-9 PM, Thursday, November 19, 1998.

Main.

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Both oral and written comments will be accepted at the meetings.

Individuals wishing to schedule a specific time to speak should call

Ms. Deborah Turner at the number listed below or the 24-hour toll-free

information line, 1-800-267-9330.

In addition to the public meetings, comments can be submitted by

calling 1-800-267-9330, or by sending them to Ms. Deborah Turner at the

address listed below. All comments on the scope of the EIS will be

shared with the MEQB and should be submitted by December 9, 1998, to

ensure consideration. Any scoping comments submitted after December 9,

1998, will be considered to the extent practicable.

ADDRESSES: Please direct comments or suggestions on the scope of the

EIS, requests to speak at public scoping meetings, requests for special

arrangements to enable participation at scoping meetings (e.g.,

interpreter for the hearing impaired), and questions concerning the

project to: Ms. Deborah Turner, Document Manager, U.S. Department of

Energy, Golden Field Office 1617 Cole Blvd., Golden, CO 80401, Phone:

303-275-4746 or 1-800-267-9330, Fax: 303-275-4788, E-mail:

[email protected].

FOR FURTHER INFORMATION CONTACT: To request information about this EIS,

or to be placed on the EIS document distribution list, please call the

24-hour toll-free information line at 1-800-267-9330. Please provide

your name, complete address, and phone number, if you are requesting to

be placed on the document distribution list so that documents can be

mailed as expeditiously as possible.

For general information on the DOE's NEPA process, please contact:

Ms. Carol Borgstrom, Director, Office of NEPA Policy and Assistance,

EH-42, U.S. Department of Energy, 1000 Independence Avenue, SW,

Washington, DC 20585-0119, Phone: 202-586-4600 or leave a message at 1-

800-472-2756.

For information regarding the MEQB process please contact: Mr. John

Wachtler, Energy Facility Siting Project Director, Minnesota

Environmental Quality Board, 300 Centennial Building, St. Paul,

Minnesota 55155, Phone: 651-296-4095, Fax: 651-292-3698, E-mail:

[email protected].

For information regarding MnVAP, please contact: Mr. David L.

Wilbur, General Manager, Minnesota Valley Alfalfa Producers, 681

Prentice Street, Granite Falls, Minnesota 56241, Phone: 320-564-2400,

Fax: 320-564-2451.

SUPPLEMENTARY INFORMATION: MnVAP is a farmer-owned cooperative,

incorporated in 1994 to increase the value of farm products grown in

and near the State of Minnesota. In response to a joint Department of

Energy and U.S. Department of Agriculture, Solicitation for Financial

Assistance for Biomass Power for Rural Development (DE-PS36-95GO10052),

MnVAP submitted a proposal to establish Minnesota Agri-Power as a

limited liability corporation, with MnVAP as the majority stock holder,

for the purposes of siting, constructing, and operating a 75-103

megawatt power plant fueled with gasified alfalfa stems. DOE selected

the MnVAP project as one of several promising efforts to meet the goals

of the Energy Policy Act of 1992 to develop and ultimately

commercialize biomass energy systems for the purposes of positively

affecting global climate change and the revitalization of rural

America. (The U.S. Department of Agriculture has declined to

participate as a cooperating agency in preparing this EIS). Under the

terms of the solicitation, MnVAP and DOE would share the financial

burden of taking a biomass gasification technology from the

demonstration phase to full commercial production.

The proposed project would also serve in part to meet the Minnesota

``Biomass Power Mandate,'' Minnesota State Law, 216B.2424, which

requires that:

A public utility * * * that operates a nuclear-powered electric

generating plant within this state must construct and operate,

purchase, or contract to construct and

[[Page 53887]]

operate (1) by December 31, 1998, 50 megawatts of electric energy

installed capacity generated by farm-grown closed-loop biomass

scheduled to be operational by December 31, 2001; and (2) by

December 31, 1998, an additional 75 megawatts of installed capacity

so generated scheduled to be operational by December 31, 2002.

Northern States Power, the sole producer of nuclear power in

Minnesota, has entered into a power purchase agreement with MnVAP to

buy power if the proposed plant becomes operational under the governing

provisions of the Minnesota Statutes.

MEQB is responsible under the MEPA (Minnesota Statutes, Ch 116D and

Minnesota Rules, Part 4410) and the Minnesota Power Plant Siting Act

(Minnesota Statutes, Ch 116.51 to 116.69, and Minnesota Rules, Part

4400) for reviewing the proposed action in response to an Application

for Site Designation and Certificate of Site Compatibility submitted by

MnVAP on August 12, 1998, and accepted by MEQB on September 30, 1998.

Copies of the Application are available to the public by contacting DOE

or MEQB.

Proposed Action: The MAPP project would use an ``integrated

gasification combined-cycle'' or IGCC system. The gasifier would be

sized to process approximately 1,100 tons of alfalfa stems per day

which is approximately 750 million British thermal units per hour. In

the gasifier, the alfalfa stems would be rapidly heated to gasification

temperatures at approximately 1,650 degrees Fahrenheit while in contact

with air and steam at a pressure of 300 pounds per square inch gage.

The gas would then be cooled to 1,020 degrees Fahrenheit and cleaned to

meet air quality standards and requirements for the combustion turbine.

Since the biomass gasification technology proposed for MAPP has yet to

be successfully demonstrated at full commercial scale, DOE is proposing

to fund $44 million (up to 30%) of the cost of construction of the

plant and associated facilities (approximately $140 to $200 million) as

part of the Department's mission to support biomass technology

commercialization.

The combustion turbine would be designed to operate efficiently on

the low energy biomass fuel produced by the gasifier unit with a gross

electric power output of 66 megawatts. The alfalfa gas would be

supplemented with natural gas as needed. The usable heat remaining in

hot combustion gases leaving the combustion turbine would be recovered

in the form of super-heated, high pressure steam. The steam would be

used to produce an additional 37 megawatts of gross electrical output

in a steam turbine generator. The gross output of the power plant could

be as high as 103 megawatts.

Construction of the proposed facility would involve extension of

existing water, gas and electric utilities to either of two alternative

sites. Depending on the site, the proposed facility would either

utilize existing city sanitary capacity or an onsite septic system.

Facility cooling may either use conventional mechanical draft cooling

towers or air cooling systems. Make-up water for cooling would be

obtained from the Minnesota River. Blowdown discharges would go into

the Minnesota River after meeting required discharge permit levels.

Construction of the facility would require approximately two years and

involve 100-300 workers onsite, while operations would require

approximately 25 full-time employees.

In addition, the proposed action will require the siting,

construction, and operation of four or five alfalfa processing

facilities. Construction of these alfalfa processing facilities is

likely even if the MAPP is not built. These alfalfa processing

facilities would be strategically located in MnVAP's alfalfa production

area, which encompasses western Minnesota and eastern South Dakota, in

order to minimize total transportation, storage, and handling costs.

The exact location of the new processing facilities is not known at

this time and will not be decided on the basis of this EIS. The siting

and permitting of such facilities would be the subject of environmental

review consistent with State requirements when their locations are

determined. However, for the purpose of evaluating transportation

impacts to and from the proposed MAPP, the operation of processing

facilities at regional, non-site-specific locations will be evaluated

in this EIS.

Alternative Sites: A preferred and an alternative site near Granite

Falls, Minnesota for the power plant have been proposed by MnVAP. The

preferred site is located in the Granite Falls Industrial Park (Section

35 & 36, Township 116 & Range 39); the alternative site is located

approximately 3.5 miles south of Granite Falls (Section 20, Township

115 & Range 39).

No Action Alternative: Under CEQ and DOE NEPA regulations, and

MEPA, the No Action alternative must be analyzed to provide a basis for

comparison to the proposed action. Under the No Action alternative in

this EIS, it will be assumed, for the comparative purposes set forth in

Federal and State regulations, that the proposed MAPP would not be

constructed. However, even under the No Action alternative, MnVAP's

development of alfalfa production and processing capability would

continue because such action is not dependent upon a decision to

proceed with funding the MAPP project.

Preliminary Identification of EIS Issues: DOE and MEQB have

tentatively identified the following issues for analysis in the EIS.

This list is neither intended to be all inclusive nor is it a

predetermination of potential environmental impacts. The list is

presented to facilitate comments on the scope of the EIS. Additions to

or deletions from the list may occur as a result of the public scoping

process.

Comparison of alternative sites;

Potential impacts of air emissions from the power plant

and the alfalfa processing facilities;

Potential impacts resulting from the use of Minnesota

River or ground water;

Potential traffic impacts resulting from alfalfa shipments

to processing facilities and fuel transport to the power plant;

Potential socioeconomic impacts, especially from the

construction work force, which may exceed local housing capacity;

Potential socioeconomic impacts from long-term operations;

Potential impacts on cultural, historical and

archaeological resources;

Potential disproportionately high and adverse impacts on

minority or low income populations;

Potential impacts from ash application onto agricultural

fields or disposal in landfills;

Potential impacts on local terrestrial and aquatic flora

and fauna, especially endangered species, from facility construction

and operations;

Potential impacts resulting from modification of existing

infrastructure;

Potential noise and visual impacts on neighbors of the

proposed MAPP, transmission lines, and alfalfa processing plants;

Potential agricultural impacts, such as erosion and

fertilizer demand, resulting from introduction of alfalfa into existing

crop rotations.

Scoping Meetings: DOE and MEQB personnel will be available at the

scoping meetings to explain the proposal to the public and answer

questions. DOE and MEQB will designate a facilitator for the scoping

meetings. At the opening of each meeting, the facilitator will

establish the order of speakers and will announce any additional

procedures necessary for conducting the meetings. To ensure that all

persons wishing to make a presentation are given the opportunity, each

speaker may be limited to 5-

[[Page 53888]]

minutes, except for public officials and representatives of groups, who

will be allotted ten minutes each. DOE encourages those providing oral

comments to also submit them in writing. Comment cards will also be

available for those who prefer to submit their comments in written

form. Speakers may be asked clarifying questions, but the scoping

meetings will not be conducted as evidentiary hearings.

Upon close of the scoping period, DOE and MEQB will review all

comments and prepare a draft Scope Statement that will identify the

proposed scope of the EIS and be issued to all interested parties. The

issuance of the draft Scope Statement will be accompanied by a notice

of an MEQB/DOE public meeting on the Statement at which the Agencies

will finalize the Scope Statement. The final Scope Statement will be

distributed to interested parties.

DOE and MEQB will make the final Scope Statement, transcripts of

the scoping meetings, the draft EIS and final EIS when issued, and

project-related materials available for public review in the following

reading rooms:

U.S. Department of Energy, Freedom of Information Public Reading Room,

Forrestal Building, Room 1E-190, 1000 Independence Avenue, SW.,

Washington, DC 20585, Telephone: (202) 586-3142

U.S. Department of Energy, Golden Field Office, Public Reading Room,

15013 Denver West Parkway, Golden, CO 80401, Telephone: (303) 384-6565

Region 6, Willmar Public Library, 410 Fifth Street, SW., Willmar, MN

56201-3298, Telephone: (320) 235-3162

Minnesota Office of Strategic and Long Range Planning Library, 658

Cedar Street, 300 Centennial Office Building, St. Paul, MN 55155,

Telephone: (651) 296-3985

Legislative Reference Library, 645 State Office Building, St. Paul, MN

55155, Telephone: (651) 296-3398

Granite Falls Public Library, 155 Seventh Avenue, Granite Falls, MN

56241, Telephone: (320) 564-3738

NEPA/MEPA Process: The EIS will be prepared in accordance with the

requirements of the CEQ's NEPA implementing regulations (40 CFR Parts

1500-1508), DOE's NEPA implementing procedures (10 CFR Part 1021), and

Minnesota's MEPA and implementing rules (Minnesota Statutes Ch 116D and

Minnesota Rules, Part 4410).

After the completion of the public scoping process, a draft EIS

will be prepared. Interested persons, the public, and agencies will be

notified when the draft is available through a Notice of Availability

published in the Federal Register, the EQB Monitor, and local media.

The draft EIS will be distributed to individuals and agencies that

request a copy and will also be placed in the reading rooms listed

above. A 45-day comment period on the draft EIS is planned, and public

hearings to receive comments will be held approximately four weeks

after distribution of the draft EIS. In addition, under the Minnesota

Power Plant Siting Act procedures, a Minnesota administrative law judge

will hold a formal hearing on the Application for Site Designation and

Certificate of Site Compatibility, which will include a review of

information in the draft EIS. The draft EIS public comment hearings and

the formal siting hearing may be combined. The locations and times for

comment hearings will be included in the Notice of Availability. The

draft EIS is scheduled to be issued during spring 1999.

The final EIS, which will consider the public comments received on

the draft EIS, is scheduled to be published during summer 1999. DOE and

MEQB will coordinate their decision processes, but each agency will

document its decision according to its specific governing statutes. No

sooner than 30 days after the U.S. Environmental Protection Agency's

Notice of Availability of the final EIS is published in the Federal

Register, DOE will issue its Record of Decision and publish it in the

Federal Register. Minnesota State Statutes require that the MEQB issue

a decision as to the adequacy of the EIS and if it is deemed adequate,

issue a Site Designation and Certificate of Site Compatibility. MEQB

will issue its decisions in the EQB Monitor. It is currently planned to

issue simultaneous DOE/MEQB decision documents during summer/fall 1999.

Signed in St. Paul, Minnesota, this 30th day of September 1998.

Rod Sando,

Chairman, MEQB, State of Minnesota.

Signed in Washington, DC, this 1st day of October 1998.

Peter N. Brush,

Acting Assistant Secretary, Environment, Safety and Health, U.S.

Department of Energy.

[FR Doc. 98-26874 Filed 10-6-98; 8:45 am]

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