Peaking Capacity Additions

TENNESSEE VALLEY AUTHORITY

Peaking Capacity Additions

AGENCY: Tennessee Valley Authority (TVA).

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 for Peaking Capacity Additions.

The Final Environmental Impact Statement (EIS) was made available to

the public on May 13, 1999. A Notice of Availability (NOA) of the Final

EIS was published by the Environmental Protection Agency in the Federal

Register on May 21, 1999. Under the preferred alternative, TVA will

construct additional peaking capacity at two TVA fossil plants: 340

megawatts (MW) at Johnsonville Fossil Plant, in Humphreys County,

Tennessee and 340 MW at Gallatin Fossil Plant in Sumner County,

Tennessee. The additions will be gas fired simple cycle combustion

turbines.

FOR FURTHER INFORMATION CONTACT: Richard B. Armstrong Jr., NEPA

Specialist, Environmental Management, Tennessee Valley Authority, 400

West Summit Hill Drive, mail stop WT 8C, Knoxville, Tennessee 37902-

1499; telephone (423) 632-8059 or e-mail [email protected].

SUPPLEMENTARY INFORMATION: In December 1995, TVA issued its final

Energy 2020 Integrated Resource Plan and Programmatic Environmental

Impact Statement. 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 forecast

adopted by TVA, the demand for electricity was projected to exceed

TVA's 1996 generating capacity of 28,000 (MW) by approximately 6,250 MW

in the year 2005. TVA decided to meet this demand through a combination

of supply-side options and customer service options.

One of the supply-side options was to construct additional peaking

capacity within the TVA power system. Tiering

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from the Energy Vision 2020 EIS, this Peaking Addition EIS evaluates

the decision of adding up to 1,530 MW capacity among three existing TVA

fossil plants; Colbert Fossil Plant, Colbert County, Alabama; Gallatin

Fossil Plant, Sumner County and Johnsonville Fossil Plant, Humphreys

County, Tennessee. The evaluation considered the following: the No

Action Alternative, and seven Action Alternatives based on all

combinations of the use of one, two or three candidate sites. Other

options evaluated included generation technology, transmission

connectivity and distribution, and fuel supply. The three candidate

sites were selected based on the following criteria: location in the

TVA service area, sites currently owned by TVA, and use of TVA fossil

plants that now operate combustion turbines. Operating nuclear plant

sites were not considered. The alternative selected was based on both

economic and environmental considerations. The preferred alternative

locates the capacity additions at Gallatin and Johnsonville Fossil

Plants, Tennessee.

On August 12, 1998, TVA issued a Notice of Intent (NOI) to prepare

an EIS on its proposed construction of additional peaking capacity at

TVA existing sites. Press announcements were sent to TVA region news

media on July 22, 1998, which generally described TVA's plans to add

new peaking capacity by June 2000. On August 24, 1998, TVA issued a

press release which contained specific information about TVA's intent

to hold public scoping meetings concerning the peaking additions. Also,

newspaper notices were published for the meetings. These meetings were

held at the following locations: Gallatin, Sumner County, Tennessee;

Waverly, Humphreys County, Tennessee and Cherokee, Colbert County,

Alabama. Public comments were considered in preparing the draft EIS. A

NOA of the draft EIS was published by the Environmental Protection

Agency (EPA) in the Federal Register on January 29, 1999. Three public

information and comment meetings were held on February 16, 18, and 22,

1999 at Waverly, Tennessee; Cherokee, Alabama; and Gallatin, Tennessee

respectively. Comments were received from three federal and three state

agencies, two corporations, and eight individuals. After considering

all comments, TVA revised the EIS appropriately. The Final EIS was

distributed to commenting agencies and the public on May 13, 1999. A

NOA of the final EIS was published by EPA in the Federal Register on

May 21, 1999.

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 to construct additional electric generation

capacity within the TVA system. Tiering from Energy Vision 2020, to

address the peaking capacity additions, two alternatives were

evaluated: a No Action Alternative and an Action Alternative.

Under the No Action Alternative, TVA would not construct additional

peaking generation capacity and would not construct or upgrade

transmission lines or natural gas lines connecting to the new

facilities to the TVA transmission system and fuel supplies. Instead,

TVA would select another fossil alternative evaluated in Energy Vision

2020, such as an option purchase agreement or spot market purchases.

This would not necessarily preclude development and construction of

additional generating capacity in the future by TVA or suppliers of

power to TVA. However, this would be uncertain at this time.

Under the Preferred Alternative, TVA would construct peaking

capacity additions of 340 MW at both Gallatin and Johnsonville Fossil

Plant sites, increasing the total peaking capacity of the TVA system by

680 MW. Each site would receive four simple-cycle combustion turbines

(CT) with a per unit capacity of 85 MW. These CTs are designed to

operate with dual fuel capacity firing either natural gas or low sulfur

distillate fuel oil to maximize fuel flexibility and lower operational

cost. The CTs at both sites would be equipped with dry low nitrogen

oxides (NOX) burners for natural gas firing and would use

water injection for NOX control when firing No. 2 distillate

oil. The peaking capacity additions are proposed to be completed and

operational by June 2000. In addition to the peaking capacity

additions, associated transmission lines serving as a connection to

TVA's power distribution system would be constructed and or upgraded.

Decision

TVA has decided to implement the Preferred Alternative at Gallatin

and Johnsonville fossil plant sites, because it would add a total

capacity of 680 MW to the TVA power system with minimal environmental

impacts and would be more cost effective than constructing additional

capacity at the Colbert Fossil Plant in Colbert County, Alabama. TVA

will also build and upgrade the associated transmission lines serving

as a connection to the TVA power distribution system. This will help

TVA meet the projected demand for electricity in its service area as

well as maintain reliable service to TVA customers.

Environmentally Preferred Alternative

TVA has concluded that the Preferred Alternative is the

environmentally preferred alternative. Alternatives that included the

Colbert Fossil plant required the construction of new or upgraded

natural gas pipelines which had additional potential impacts. There is

no clear basis for identifying either the No Action or the Preferred

Alternative as environmentally preferable to the other. Selection of

the No Action Alternative would eliminate potential adverse impacts

from TVA's construction and operation of new generation peaking

capacity. However, there is no assurance that power purchased by TVA

under the No Action Alternative would be produced by existing

facilities or by facilities with less environmental impacts than the

facilities contemplated by the Preferred Alternative. To the contrary,

given the current and projected needs for new power generation, it may

be more reasonable to assume the purchased power would be produced by

new generating units with unknown environmental cost. Also, by

selecting the Preferred Alternative and constructing its own generation

units, TVA can better assure that appropriate mitigation measures are

employed and that the construction and operation of the new units will

comply with all environmental regulations and policies. In addition,

the Preferred Alternative may better assure the reliability necessary

to meet customer demand.

Environmental Consequences and Commitments

Standard construction and best management practices would be

followed in all aspects of the project construction and operation to

avoid or minimize adverse environmental impacts. In addition, TVA has

adopted the following mitigation measures pertaining to the

construction and operation of the peaking capacity additions at

Gallatin and Johnsonville:

Air quality impacts of construction dust will be mitigated

by sprinkling water on open construction areas and roads to reduce

fugitive dust emissions.

Air emission during operation will comply with limits set

in the PSD permit to be issued by Tennessee Department of Environment

and Conservation (TDEC).

[[Page 38934]]

TVA will use natural gas and low sulfur distillate oil

(maximum sulfur content of 0.05%) as fuels.

TVA will install post-combustion emission controls on all

CTs.

Best Management Practices will be used at all stream and

river crossings by natural gas pipelines and transmission line

resagging, reconductoring, and new construction activities.

All wetlands will be avoided by vans, trucks, bulldozers

and other equipment used to access points along transmission ROW where

resagging and reconductoring activities are required. In no case will

equipment pass through wetlands.

Discharges to surface waters will comply with limits set

in NPDES permits issued by Tennessee Department of Environment and

Conservation.

Stormwater will be managed in accordance with Storm Water

Pollution Prevention Control and Countermeasure plans.

A TVA botanist will delineate a 50 feet buffer around each

population of bladderpod (Lesquerella perforata) plant in the Spring

Creek bottom area along the Gallatin to Lebanon Industrial Park ROW. No

construction related traffic, vehicular or pedestrian, will be allowed

within the delineated buffer area. Botanists from TVA and TDEC will

meet on site with the transmission line reconductoring project engineer

or project manager to emphasize the significance of the bladderpod

populations and the importance of enforcing the restrictions of

maintaining the non-intrusive 50 feet buffer zone. If any activities

relating to the reconductoring of the transmission line through the

Spring Creek bottom area are modified to the extent that these

activities may directly or indirectly impact this species, TVA, U.S.

Fish and Wildlife Service, and TDEC would meet to establish a strategy

to protect the species.

TVA will use BMP techniques in accordance with TVA

guidelines for environmental protection (Muncey 1992) during the

construction of transmission lines.

Transmission line and natural gas pipeline ROW will be

revegetated where natural vegetation is removed.

TVA will avoid the removal of unique vegetation.

Construction delivery trucks will not be loaded beyond

legal limits and will meet all safety standards. Hauling will comply

with all state, federal, and local ordinances.

Impacts on cultural resources will be mitigated in

accordance with the Memorandum of Agreement (MOA) between TVA and the

Tennessee State Historical Preservation Officer and with Section 106 of

the National Historical Preservation Act (NHPA). All proposed

transmission line ROWs that require reconductoring, resagging or new

construction will be surveyed for cultural, archaeological and historic

resources.

Dated: June 28, 1999.

Joseph R. Bynum,

Executive Vice President, Fossil Power Group.

[FR Doc. 99-18452 Filed 7-19-99; 8:45 am]

BILLING CODE 8120-08-P