Record of Decision, Texas Clean Energy Project, 60478-60488 [2011-25070]
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DEPARTMENT OF ENERGY
Hydrogen and Fuel Cell Technical
Advisory Committee (HTAC)
Department of Energy, Office of
Energy Efficiency and Renewable
Energy.
ACTION: Notice of open meeting.
AGENCY:
The Hydrogen and Fuel Cell
Technical Advisory Committee (HTAC)
was established under section 807 of the
Energy Policy Act of 2005 (EPAct) (Pub.
L. 109–58; 119 Stat. 849). The Federal
Advisory Committee Act (Pub. L. 92–
463, 86 Stat. 770) requires that publish
notice of these meetings be announced
in the Federal Register.
DATES: Thursday, November 3, 2011;
9 a.m.–6:15 p.m.
Friday, November 4, 2011; 9 a.m.–
2:45 p.m.
ADDRESSES: L’Enfant Plaza Hotel DC,
480 L’Enfant Plaza, SW., Washington,
DC 20024.
FOR FURTHER INFORMATION CONTACT:
Please send an e-mail to:
HTAC@nrel.gov
SUMMARY:
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SUPPLEMENTARY INFORMATION:
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Issued at Washington, DC on September
23, 2011.
LaTanya R. Butler,
Acting Deputy Committee Management
Officer.
[FR Doc. 2011–25058 Filed 9–28–11; 8:45 am]
BILLING CODE 6450–01–P
Purpose of the Meeting: To provide
advice, information, and
recommendations to the Secretary on
the program authorized by Title VIII of
EPAct.
Tentative Agenda: (Subject to change;
updates will be posted on the website
at: https://hydrogen.energy.gov and
copies of the final agenda will available
the date of the meeting).
• Public Comment.
• Coordination with Efficiency and
Renewable Advisory Committee.
• Impact of Natural Gas Supply on
Fuel Cell and Hydrogen Market.
• Industry Presentations.
• Status Cost and Performance of
Battery Technology.
• Vehicle Battery Charging Cost.
• European Large-Scale Hydrogen
Storage of Renewable Electricity.
• Financing Hydrogen and Fuel Cell
Technologies.
• State Initiatives.
Public Participation: Members of the
public are welcome to observe the
business of the meeting of HTAC and to
make oral statements during the
specified period for public comment.
The public comment period will take
place between 9:15 a.m. and 9:30 a.m.
on November 3, 2011. To attend the
meeting and/or to make oral statements
regarding any of the items on the
agenda, please send an e-mail to:
HTAC@nrel.gov at least five business
days before the meeting. Please indicate
if you will be attending the meeting,
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whether you want to make an oral
statement, and what organization you
represent (if appropriate). Members of
the public will be heard in the order in
which they sign up for the public
comment period. Oral comments should
be limited to two minutes in length.
Reasonable provision will be made to
include the scheduled oral statements
on the agenda. The Chair of the
committee will make every effort to hear
the views of all interested parties and to
facilitate the orderly conduct of
business. If you would like to file a
written statement with the committee,
you may do so either by submitting a
hard copy at the meeting or by
submitting an electronic copy by e-mail
to: HTAC@nrel.gov.
Minutes: The minutes of the meeting
will be available for public review at the
following Web site: https://
hydrogen.energy.gov.
DEPARTMENT OF ENERGY
Record of Decision, Texas Clean
Energy Project
Department of Energy.
Record of decision.
AGENCY:
ACTION:
The U.S. Department of
Energy (DOE) announces its decision to
continue to provide financial support to
the Texas Clean Energy Project (TCEP).
DOE prepared an Environmental Impact
Statement (EIS) (DOE/EIS–0444) to
assess the environmental impacts
associated with the TCEP, a project that
Summit Texas Clean Energy, LLC
(Summit) would design, construct, and
operate. The project will demonstrate
advanced power systems using
integrated gasification combined-cycle
(IGCC) technology to generate 400
megawatts (gross) of electric power from
coal and will put 130 to 213 megawatts
on the power grid while capturing
approximately 90 percent of its carbon
dioxide (CO2) emissions. The project
will sequester approximately 2.5 to 3.0
million tons (2.3 to 2.7 million metric
tonnes) of CO2 per year. The CO2 will
be delivered through a regional pipeline
network to existing oil fields in the
Permian Basin of West Texas for use in
enhanced oil recovery (EOR) by thirdparties. The plant will also produce
urea, argon, and sulfuric acid for sale in
commercial markets. Because of its
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multiple products, the facility is
referred to as a polygeneration (polygen)
plant. The plant will be built on a 600acre (243-hectare) oil field site in Ector
County, Texas, north of the community
of Penwell, and will continue in
commercial operation for 30 to 50 years.
DOE’s proposed action, as described
in the EIS, is to provide cost-shared
financial assistance under DOE’s Clean
Coal Power Initiative (CCPI) using a
combination of American Recovery and
Reinvestment Act of 2009 (ARRA) (Pub.
L. 111–5) funds and other CCPI program
funds. After careful consideration of the
potential environmental impacts and
other factors such as program goals and
objectives, DOE has decided to provide,
through a cooperative agreement with
Summit, $450 million in cost-shared
funding, which is approximately 26
percent of the project’s total capital cost
of $1.73 billion (2009 dollars). The
balance of project funding is expected to
come from private sector investors and
lenders.
ADDRESSES: The Final EIS is available
on the National Energy Technology
Laboratory’s Web site at: https://
www.netl.doe.gov/publications/others/
nepa/ and on the DOE NEPA
Web site at: https://energy.gov/nepa.
Copies of the EIS may be obtained from
Mr. Mark L. McKoy, Environmental
Manager, U.S. Department of Energy,
National Energy Technology Laboratory,
P.O. Box 880, Morgantown, WV 26507–
0880; telephone: 304–285–4426; tollfree number: 1–800–432–8330 (ext
4426); fax: 304–285–4403; or e-mail:
mmckoy@netl.doe.gov.
FOR FURTHER INFORMATION CONTACT: To
obtain additional information about this
project, the EIS, or this Record of
Decision (ROD), contact Mr. McKoy by
the means specified above under
ADDRESSES. For general information on
the DOE NEPA process, contact Ms.
Carol M. Borgstrom, Director, Office of
NEPA Policy and Compliance (GC–54),
U.S. Department of Energy, 1000
Independence Avenue, SW.,
Washington, DC 20585; telephone: 202–
586–4600; fax: 202–586–7031; or leave a
toll-free message at: 1–800–472–2756.
SUPPLEMENTARY INFORMATION: DOE
prepared this ROD pursuant to the
National Environmental Policy Act
(NEPA) of 1969 (42 U.S.C. 4321 et seq.),
Council on Environmental Quality’s
(CEQ’s) regulations for implementing
the procedural provisions of NEPA [40
Code of Federal Regulations (CFR) Parts
1500–1508], DOE’s NEPA regulations
(10 CFR Part 1021), and DOE’s
Compliance with Floodplain and
Wetland Environmental Review
Requirements (10 CFR Part 1022). This
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ROD is based on DOE’s Final EIS for the
Texas Clean Energy Project (DOE/EIS–
0444), comments submitted on the EIS
and proposed project, other information,
and program considerations.
Background and Purpose and Need for
Agency Action
The TCEP involves the planning,
design, construction, and operation by
Summit of a coal-fueled electric power
and chemicals production plant
integrated with CO2 capture and
geologic sequestration through EOR.
Summit is owned jointly by the Summit
Power Group, Inc., and CW NextGen,
Inc., a Clayton Williams company. The
project team includes Summit; Summit
Power Group, Inc.; Siemens Energy,
Inc.; Linde, AG; Fluor Corporation; Blue
Source, LLC; and others.
DOE selected this project for an award
of financial assistance through a
competitive process under the CCPI
Round 3 program pursuant to the
process set out in Funding Opportunity
Announcement (FOA) DE–FOA–
0000042. DOE’s financial assistance will
occur through cost sharing as specified
under the terms of a financial assistance
agreement between DOE and Summit.
This project includes a demonstration
period (including plant reliability and
operations testing) following the
construction and commissioning of the
plant and continuing until the end of
the cooperative agreement’s period of
performance (July 15, 2017).
As the nation’s most abundant fossil
fuel, coal is expected to have an
important role in the United States’
energy future. However, fossil fuel
combustion is a major source of
anthropogenic CO2 emissions. Electric
power generation contributes
approximately 39 percent of all CO2
emissions in the U.S. In 2009, 81
percent of all electricity productionrelated CO2 emissions resulted from the
burning of coal.
Public Law 107–63, enacted in
November 2001, established the CCPI
program, which is a cost-shared
collaboration between the Federal
government and industry to increase
investment in advanced, low-emissions
coal technologies. Later, with Title IV of
the Energy Policy Act of 2005 (EPACT
2005) (Pub. L. 109–58), the Congress
established additional criteria for
projects receiving financial assistance
under the CCPI program. Under these
criteria, CCPI projects must help the
nation successfully commercialize
advanced power systems that ‘‘advance
efficiency, environmental performance,
and cost competitiveness well beyond
the level of technologies that are in
commercial service’’ (EPACT 2005,
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section 402(a)). In February 2009, the
Congress appropriated $3.4 billion to
DOE for fossil energy research and
development, with $800 million
allocated to the CCPI program. CCPI’s
Round 3 seeks to address the challenge
of meeting the United States’ dynamic
demand for electricity while decreasing
emissions of CO2 from coal-based power
generation. This is done through
financial assistance awards to industrial
participants for demonstrations, at
commercial scale and in commercial
settings, of low-CO2 emissions coalbased technologies that have
opportunities for timely deployment in
the power industry.
DOE’s purpose is to provide financial
assistance to projects that have the best
chance of achieving the CCPI program’s
objectives as established by the
Congress. Specifically, DOE’s purpose
and need for action is to demonstrate
the commercial-readiness of CO2
capture and geologic sequestration fully
integrated with a power plant. The
technical, environmental, financial and
performance data generated from the
design, construction, and operation of
the polygen plant will provide a
commercial reference plant for these
technologies.
EIS Process
DOE published a Notice of Intent in
the Federal Register on June 2, 2010 (75
FR 30800) announcing its plan to
prepare an EIS and hold a public
scoping meeting. DOE held the scoping
meeting in Odessa, Texas, on June 17,
2010. DOE considered all of the
comments it received on the scope of
the EIS and addressed them in the Draft
EIS. On March 18, 2011, the U.S.
Environmental Protection Agency (EPA)
published a Notice of Availability of the
Draft EIS in the Federal Register (76 FR
14969). On March 22, 2011, DOE
published in the Federal Register (76
FR 15968) a Notice of Availability and
announced a public hearing in Odessa
on April 5, 2011. Comments were
solicited at the public hearing and
throughout the 45-day public comment
period, which ended May 2, 2011.
Comments on the Draft EIS included:
• Proposed options to use municipal
waste water and the proposed Fort
Stockton Holdings water supply
pipeline;
• Possible changes in discharges to
Monahans Draw and salt loading due to
discharge to the draw;
• The need to reduce the project’s
demand for potable water in light of the
limited regional supply;
• The choice of West Texas as the site
for a coal-fueled electricity generating
plant instead of a site near either the
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supply of coal or the demand for the
electricity;
• The market for electricity and the
economic viability of the project;
• DOE’s proposed funding of clean
coal projects instead of projects using
renewable resources;
• The need for a comprehensive CO2
emissions assessment that extends
through the EOR process to the end uses
of produced petroleum products;
• Increased railroad traffic and
associated coal dust; and
• The existence of additional
foreseeable projects that should be
included in the cumulative effects
section of the EIS.
In the Final EIS, DOE considered and,
as appropriate, responded to comments
on the Draft EIS. The EPA published a
Notice of Availability for the EIS in the
Federal Register on August 5, 2011 (76
FR 47579). In addition to responding to
comments on the Draft EIS, the Final
EIS included new information related
to, among other things, treatment of
process water and the disposal of waste
water by two additional options:
evaporation ponds and deep well
injection.
Decision
DOE has decided to proceed with
$450 million in financial assistance (i.e.,
cost-shared funding) under the terms of
the cooperative agreement with Summit
for the design, construction and
demonstration of the TCEP.
Basis of Decision
DOE’s decision was reached after
considering the potential environmental
impacts presented in the EIS, the
practicable options for mitigation of the
impacts, the importance of achieving
the objectives of programmatic and
legislative mandates (CCPI, EPACT
2005, and ARRA) and other information.
Specifically, the project meets or
exceeds the three primary objectives of
CCPI Round 3 and satisfies the
programmatic and legislative objective
of demonstrating the technical
practicality of producing electricity and
other products from coal while
capturing and beneficially using most of
the CO2 produced from coal gasification.
Furthermore, the project will create
jobs and modernize the nation’s
infrastructure, meeting the objectives of
the ARRA. During most of the
construction period, the gross domestic
product (GDP) in the region of influence
(Ector, Midland, Crane and Ward
Counties) is estimated to increase by
more than 0.4 percent; during the final
year of construction it will increase by
an estimated 0.67 percent. During plant
operations, regional GDP will increase
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by about 0.16 percent, representing a
long-term benefit. Property taxes paid
by the project are expected to total $14.5
million annually during the operations
phase, after deducting anticipated
abatements and tax reliefs. Income and
sales taxes related to the project will
further benefit local governments.
Summit estimates that an average of
650 construction workers will be
needed to build the plant with a peak
at perhaps 1,500 workers. TCEP’s
operational work force is expected to be
approximately 150 workers. Accounting
for indirect and induced jobs, the total
number of jobs resulting from the
project will average about 1,000 during
construction and 300 during operations.
This decision incorporates all
practicable means to avoid or minimize
environmental, social, or economic
harm. DOE plans to verify the
implementation of appropriate
avoidance and mitigation measures.
Mitigation
As a condition of its decision to
provide funding for the design,
construction and operation of the
project, DOE is imposing requirements
that will avoid or minimize the
environmental impacts of the project.
These conditions are described below.
Under the terms of the cooperative
agreement, DOE requires Summit to
comply with applicable Federal, state
and local government laws, regulations,
permit conditions, and orders.
Mitigation measures beyond those
specified in permit conditions
enforceable by other Federal, state and
local agencies are addressed in this ROD
and, as appropriate, will be set forth in
a Mitigation Action Plan (MAP) as
required by 10 CFR 1021.331. The MAP
will further detail the mitigation
measures, explaining how they will be
planned, implemented, monitored and
reported. These mitigation requirements
are a condition for continued DOE
funding.
DOE will ensure that commitments in
this ROD (as further detailed in the
MAP) are met through management of
the cooperative agreement, which makes
the conditions in the ROD contractually
enforceable. DOE will make the MAP
available for public inspection via
postings on the DOE and NETL Web
sites.
During project planning, Summit
incorporated various mitigation
measures and anticipated permit
requirements. The analyses in the EIS
assumed that these measures would be
in effect. These measures are identified
in Tables S2–7 and 2–8 of the EIS as
commitments made by Summit and are
incorporated into this ROD as
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conditions for DOE’s financial
assistance under the cooperative
agreement.
Mitigations identified in this ROD
shall be made a term and condition for
future ownership or management of the
TCEP by any other parties during the
period of performance under the
cooperative agreement.
After carefully reviewing the EIS, the
comments received on the EIS and
proposed project, and the current events
in the region, DOE requires the
following mitigation measures as a
condition of its decision:
(1) Summit shall design and construct
the TCEP to capture at least 90 percent
of the carbon in the fossil fuels when
operating under normal conditions, and
Summit shall use best efforts to achieve
at least a 90 percent capture rate during
the demonstration period.
(2) Summit shall develop jointly with
the Texas Bureau of Economic Geology
and DOE a plan for monitoring,
verification and accounting (MVA) of
CO2 sequestered through EOR. The
MVA will be implemented by thirdparty buyers of the CO2. Contracts
established between Summit and these
buyers (or the field operators who
ultimately use the CO2) shall make the
implementation of the MVA plan a term
and condition of the contract and shall,
as appropriate, involve the Texas
Bureau of Economic Geology and the
Texas Railroad Commission in the
certification of the sequestration of CO2
via EOR. MVA reports submitted to the
State of Texas shall also be submitted to
Summit and to DOE (via Summit).
(3) Summit shall not use the proposed
Fort Stockton Holdings waterline as a
primary water supply for the TCEP. If
constructed, this waterline may be used
as a backup supply to temporarily
provide water to the TCEP when the
primary water supply is not in service.
(4) Summit shall not enter into
contracts whereby waste water
discharge into Monahans Draw would
increase by more than 0.75 million
gallons per day, as an annual average,
and 6 million gallons per day as a daily
maximum, as a result of the TCEP.
(5) The TCEP’s power island shall be
designed, constructed and operated
with dry cooling towers. If this is found
to be technically infeasible, then a
hybrid cooling system (or a wet cooling
assist) may be used. A wet cooling
system is acceptable for the chemical
plant component of the TCEP.
(6) If the TCEP uses solar evaporation
ponds, Summit shall plan, design, and
construct any high salinity ponds to be
ready for installation of bird deterrent
netting. Before completing final design
on solar evaporation ponds, Summit
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shall prepare, jointly with DOE and
governmental agencies with regulatory
jurisdiction, a plan for bird deterrence,
monitoring and reporting; and this plan
shall be implemented during the design,
construction and operation of the solar
evaporation ponds.
(7) If Summit chooses to dispose of
desalination reject water by deep well
injection, in addition to complying with
the terms and conditions of a permit
under Texas’s Underground Injection
Control Program, Summit shall install a
well near the bottom of the zone of
potentially potable ground water (i.e.,
ground water with a total dissolved
solids concentration of less than 10,000
milligrams per liter) and monitor this
water for increases in total dissolved
solids and hydrocarbons as indicators of
possible leakage of more deeply injected
brine reject water or displaced native
fluids. It may be feasible to use the same
well for both monitoring and for
supplying potable water to the polygen
plant. Before completing final design on
a system for deep well injection of brine
reject water, Summit shall prepare,
jointly with DOE and government
agencies with regulatory jurisdiction, a
plan for monitoring well design,
construction, monitoring and reporting;
and this plan shall be implemented
during the design, construction and
operations of the system for deep well
injection.
(8) Before land disturbance at the
plant site and along the utility corridors,
Summit shall survey areas to be
disturbed and undertake measures to
protect wetlands, waterways (including
non-jurisdictional waters), playa lakes,
rare species (e.g., the sand dune lizard,
Sceloporus arenicolus, Federal
candidate for listing) and critical
habitats (e.g., the Shinnery Oak Sand
Dune habitat), and state-listed rare
species (particularly the Texas horned
lizard), as specified in the MAP. As
appropriate, Summit shall consult with
the U.S. Fish and Wildlife Service and
the Texas Parks and Wildlife
Department regarding special natural
communities and features, as well as
rare species and their habitats.
(9) To reduce impacts to species
protected under the Migratory Bird
Treaty Act, ground disturbing activities
in areas of potential breeding habitat
shall be avoided during the breeding
and nesting season (March 1 through
July 31). If this seasonal avoidance is
not practicable, a qualified biologist
shall survey the potentially affected area
prior to any ground disturbing activities
to determine if nesting is underway; and
buffer areas shall be established as
needed to protect eggs and young birds
until they fledge. Owls and hawks may
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nest in this area at other times of year.
Surveys shall be conducted for owl and
hawk nests, and buffer areas shall be
established around active nests. If a
power transmission line route crosses or
is located near a water body or playa
lake bed, the adjacent section of the line
shall have line markers to reduce the
potential for bird collisions. To prevent
electrocution of perching raptors and to
reduce power outages and maintenance,
Summit shall consider the use of
various protection measures such as
adequate line spacing, perch guards,
and insulated jumper wires.
(10) For linear facility routes chosen
by Summit, phase I cultural resource
surveys (including archaeological and
paleontological surveys), along with
consultations with the Texas State
Historic Preservation Officer and DOE,
shall be completed for segments not
previously surveyed but for which
surveys are warranted. Further
consultation with the State Historic
Preservation Officer for any unforeseen
areas of construction or ground
disturbance not included within the EIS
shall be completed before construction
starts to determine the need for further
cultural resource investigations and any
appropriate mitigation measures.
(11) For any pipeline crossings of
Monahans Draw, Summit shall first
consider the practicability of pipeline
installation beneath the streambed by
directional drilling. If trenching is
chosen as the method of installation of
pipeline, Summit shall seek to use
crossing locations and construction
techniques whereby impacts to aquatic
life, vegetation and land surface features
along the draw would be minimized;
and Summit shall use land surface
reconstruction, erosion controls, and
revegetation (with native species) to
stabilize and restore the affected
floodplains, stream banks, stream beds,
and vegetation.
(12) Where vegetative ground cover
remains disturbed or soil remains
exposed after project-related
construction activities, Summit shall
strive to achieve beneficial results in
terms of erosion control, land
stabilization, long-term vegetative cover
and habitat improvement through
revegetation, landscaping and other
techniques as appropriate. Plantings of
vegetation shall use species that are
native, adaptable to the planting
location, beneficial to wildlife, drought
tolerant, and helpful with water
conservation. Where practicable, grass
re-seedings or plantings shall use only
native species, usually in a mixture of
grasses and forbs appropriate to address
potential erosion problems and provide
long-term cover.
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(13) Summit shall prepare annual
reports during the term of the
cooperative agreement that document
the operations and corresponding air
emissions from the TCEP. Annual
reports shall include summary
information on the TCEP’s emissions of
criteria pollutants, mercury and other
toxic pollutants of concern, and CO2.
These reports shall indicate the
performance and emissions of the TCEP
during normal operations. If air
emissions data are collected during
periods of operation outside normal
steady-state conditions, this information
also shall be summarized in the report.
(14) To reduce visual impacts
associated with polygen plant structures
and facilities, including exposed
portions of linear facilities, DOE
recommends that Summit choose,
where appropriate, finish coat colors for
exterior surfaces that reduce the form,
color and line contrasts between the
surrounding landscape and the exteriors
of buildings and structures. Chosen
colors should be slightly darker than the
surrounding landscape to achieve
optimal benefit. This choice of color
would not apply where regulation,
safety, service, material type, or other
reasons dictate the choice of other
colors or no paint.
Summit will conduct further resource
assessments as the project planning and
design continues. If there are substantial
changes in the TCEP proposal or
significant new information relevant to
environmental concerns, as described in
40 CFR 1502.9(c)(1), DOE will prepare
a supplemental EIS. If it is unclear
whether an EIS supplement is required,
DOE will prepare a Supplement
Analysis, in accordance with 10 CFR
1021.314(c), to support the
determination. DOE will make
Supplement Analyses available to the
public and to regulatory agencies with
jurisdiction for 30 days of review and
comment prior to DOE determining
whether a supplemental EIS is required.
Project Description and Location
The project will be located
approximately 15 miles (mi) (24
kilometers) southwest of the city of
Odessa in Ector County, Texas. Summit
will build the polygen plant on a 600acre (243-hectare) site adjacent to the
community of Penwell and north of
Interstate Highway 20 (I–20) along a
Union Pacific Railroad line. Summit
chose this site primarily because of its
proximity to an existing CO2 market, a
connection point to a CO2 pipeline
network, and multiple oil fields
currently performing or suitable for CO2
floods.
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The project’s linear facilities include
one or two electric transmission lines to
connect the plant with one or both of
the nearby power grids; process water
supply pipelines; a natural gas pipeline;
a pipeline for captured and compressed
CO2; one or two access roads; and a rail
spur.
The TCEP will employ integrated
gasification combined-cycle (IGCC)
technology. Gasification is the process
of converting coal into a fuel called
synthesis gas (syngas). A combinedcycle electric power plant is one that
uses both a gas turbine-generator
(similar to a jet aircraft engine) and a
steam turbine-generator (which uses
steam produced by exhaust heat from
the gas turbine-generator) to produce
more electricity than would be
produced by a boiler and conventional
steam turbine-generator alone.
Combining (integrating) the gasification
process with a combined-cycle power
plant is known as IGCC.
This polygen plant will include CO2
capture and compression with transport
of the CO2 off-site for geologic
sequestration through EOR. Specifically,
the plant will have an air separation
unit, a coal gasification system (with
two operating gasifiers), a syngas
cleanup system, a mercury (Hg) removal
filter, an acid gas scrubber (for sulfur
species and CO2), a CO2 compressor
system, a sulfuric acid (H2SO4)
production plant, a gas turbinegenerator, a heat recovery steam
generator (HRSG), a steam turbinegenerator, and a urea production plant.
The linear facilities will convey the
outputs and inputs of the polygen plant
to and from existing infrastructure.
Summit’s TCEP will generate up to
400 megawatts (MW), of which 130 to
213 MW (approximately 1.0 to 1.7
billion net kilowatt-hours of electricity
per year) will be available to the
electricity grid. In addition, the plant
will be designed to capture, as CO2, 90
percent or more of the total carbon in
the fossil fuels used by the plant under
typical operating conditions. Summit
will capture up to 3 million tons (2.7
million metric tonnes) of CO2 annually.
Approximately 2.5 to 3.0 million tons
(2.3 to 2.7 million metric tonnes) of the
captured CO2 will be sold under
commercial contracts and subsequently
injected into partially depleted oil
reservoirs where it will be used to
extract more oil. In addition, the plant
will produce urea for sale as fertilizer.
Products from the gasification process
(argon, H2SO4, and inert slag) will also
be sold on the commercial market.
Summit received a financial
assistance award in Round 3 of DOE’s
CCPI program and qualified for
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investment tax credits under Internal
Revenue Code (IRC) section 48A,
Qualifying Advanced Coal Project.
Summit intends to seek tax credits
under IRC section 45Q, Credit for
Carbon Dioxide Sequestration. However,
most of TCEP’s funding will consist of
owner-invested equity and debt
obtained in private capital markets.
tkelley on DSKG8SOYB1PROD with NOTICES
DOE’s Proposed Action
DOE’s Proposed Action, as described
in the EIS, is to provide a total of
approximately $450 million in financial
assistance for Summit’s TCEP through a
cooperative agreement. The financial
assistance would be provided on a costshare basis for the planning, design,
construction, and demonstration-phase
testing and operation of the project.
Under the terms of the agreement, DOE
has already made available
approximately $48 million on a costshare basis for the project’s definition
phase, which includes completion of
the NEPA process.
Alternatives
The Congress directed DOE to pursue
the goals of the CCPI by providing
financial assistance to projects owned
by non-Federal sponsors and using coal
for at least 75 percent of the project’s
fuel requirement. This approach places
DOE in a much more limited role than
if it were the owner and operator of the
project. Here, the purpose and need for
DOE action is defined by the CCPI
program and the ARRA. Given that
CCPI’s programmatic purposes and
needs are defined by legislation, the
reasonable alternatives available to
DOE, prior to selection of this project,
were the other projects submitted for
DOE’s consideration in response to the
FOA and that were determined to be
responsive to the FOA’s requirements.
All projects that were deemed
responsive to the FOA were analyzed in
an environmental critique pursuant to
10 CFR 1021.216, which establishes a
specific NEPA process for competitive
awards of financial assistance and
contracts. A synopsis of the
environmental critique is included in
Appendix B of the EIS.
After DOE selects a project, the
reasonable alternatives become: (1) The
project as proposed by the applicant, (2)
alternatives or options still under
consideration by the applicant or that
are within reasonable confines of the
project as proposed (e.g., the particular
location of the plant on the parcel of
land proposed for the project), and (3)
the ‘‘no action’’ alternative.
DOE issued the FOA for CCPI Round
3 in August 2008, and reopened it in
June 2009 in response to the addition of
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ARRA funding to the CCPI program.
Private sector participants submitted 38
proposals in response to the reopened
solicitation. After an initial screening
removed from further consideration
those proposals that failed to meet the
eligibility requirements, the remaining
25 responsive proposals were subjected
to environmental review and
consideration (during the selection
process) in accordance with 10 CFR
1021.216. From these 25 proposals DOE
selected three proposals representing
diverse technologies and using a variety
of coals to further the goals of the CCPI
program. DOE selected the TCEP under
the reopening of Round 3 because it
would demonstrate IGCC power
generation integrated with chemical
production and CO2 capture
technologies in a commercial project.
Summit chose the site for its TCEP
based on a selection process that it had
completed prior to applying for DOE’s
financial assistance. Because of its
desire to integrate IGCC technology with
CO2 capture, Summit focused its site
selection efforts in Texas, which has
both a regional market for CO2 for use
in EOR and existing infrastructure for
transporting CO2 to oil fields. Summit
considered several sites in Texas,
including Corpus Christi, Oak Grove,
Big Brown, and two sites—Jewett and
Odessa—that had been considered for
DOE’s FutureGen project. Summit
ultimately selected the Odessa site
primarily because of its proximity to an
existing CO2 pipeline and multiple oil
fields where EOR is or may be used. The
Odessa site also has close access to rail,
natural gas, transmission lines, and
sources of water, which the other sites
lacked in varying degrees. The Odessa
site enjoys significant community
support for the TCEP.
Under the proposed action
alternative, DOE assessed the potential
environmental impacts associated with
alternative water supplies, alternative
routes for linear facilities, and options
for certain plant sub-systems (e.g.,
evaporation ponds versus deep well
injection of reject water from the
desalination of supply water) as
described in the EIS. In identifying
alternative routes for linear facilities,
Summit considered selection factors
such as using or paralleling existing
rights of ways and avoiding developed
areas and sensitive areas. In the EIS,
DOE reviewed the potential
environmental impacts of these various
project alternatives still under
consideration by Summit with the goal
of deciding for each of Summit’s
alternatives whether any adverse
consequences might be sufficiently
objectionable that DOE would disallow
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the usage of that alternative in the TCEP
as a condition for DOE’s financial
assistance.
No-Action Alternative
Under the No-Action Alternative,
DOE would not share in the cost for
detailed design, construction and a
three-year demonstration phase of the
TCEP. For purposes of analysis in the
EIS, DOE considered the ‘‘no-action’’
alternative to be the same as the ‘‘nobuild’’ alternative.
In the absence of financial assistance
from DOE, Summit might choose to
construct and operate the TCEP if it
could obtain sufficient private
financing. However, DOE believes this
option is unlikely, because of the
financial risks and costs of deploying a
new power plant, especially one with
IGCC technology integrated with CO2
capture and sequestration. Without DOE
participation, it is likely that the
proposed project would not be built,
environmental resources would remain
in their current condition, and none of
the impacts associated with the project
would occur, whether adverse or
beneficial (i.e., no new construction,
jobs, marketable products, resource use,
land-use alterations, emissions,
discharges, or wastes).
If the project were canceled, the
proposed technologies of the TCEP (e.g.,
commercial-scale IGCC integrated with
CO2 capture and geologic storage of CO2
using EOR; the manufacture of urea
from gasified coal) may not be
implemented in the near term.
Consequently, commercialization of
these technologies may be delayed or
may not occur because utilities and
industries tend to use known and
demonstrated technologies rather than
new technologies. The no action
alternative would not contribute to
CCPI’s goals of accelerating the
commercial readiness of advanced
multi-pollutant emissions control;
improving combustion, gasification, and
efficiency technologies; and
demonstrating advanced coal-based
technologies that capture and sequester
CO2 emissions.
Potential Environmental Impacts
In making its decision to provide
continued financial assistance to the
TCEP, DOE considered the
environmental impacts of the proposed
project and no-action alternative on
affected resources. These include air
quality and greenhouse gas emissions;
climate; soils, geology, and mineral
resources; ground water; surface water,
floodplains and wetlands; biological
resources; aesthetics; cultural resources;
land use; socioeconomics and
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community services; environmental
justice; utility services; transportation;
materials and waste management;
human health, safety, and accidents;
and noise and vibration. The EIS also
examined potential incremental impacts
of the TCEP in combination with other
past, present, and reasonably
foreseeable actions (i.e., cumulative
impacts). The following sections
summarize the environmental impacts
and mitigation measures described and
analyzed in the Final EIS.
tkelley on DSKG8SOYB1PROD with NOTICES
Air Quality
The TCEP will be categorized as a
major source of air pollutants under
Clean Air Act regulations because
emissions of some criteria pollutants
(NO2, SO2, CO, PM10, and PM2.5) will
exceed 100 tons per year. Constructionrelated and operational emissions
would not cause air quality to exceed
either the Prevention of Significant
Deterioration (PSD) increments or the
National Ambient Air Quality Standards
(NAAQS). However, ambient air
concentrations of criteria pollutants
could increase between 9 percent and
200 percent at the point of maximum
ground level impact under certain
weather conditions during plant
operations. While the TCEP will capture
for beneficial use at least 90 percent of
the carbon as CO2 in its fuels, annual
emissions of CO2 from the TCEP will
reach 300,000 tons per year, and these
emissions will contribute to global
atmospheric concentrations of CO2.
Plant-wide emissions of hazardous air
pollutants will not exceed either the
individual pollutant threshold (10 tons
per year) or the combined pollutant
threshold (25 tons per year). Maximum
predicted concentrations for all
identified compounds that could have a
negative impact to human health were
found to be below their respective
effects screening limits for general
public exposure, except for short-term
exposures to coal dust on the plant site
(which will not exceed industrial
exposure criteria).
Although air quality impacts will be
small, the TCEP will reduce emissions
and impacts to the fullest extent
practicable. As a condition of its
decision, DOE requires reports on air
emissions from the TCEP (see
Mitigation).
Climate
Construction and operation of the
TCEP will not cause measurable impacts
on local, regional or global climate and
meteorology. However, operations of the
TCEP will contribute greenhouse gas
emissions to the atmosphere. Annual
emissions of CO2 from the TCEP
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operations will range up to 300,000 tons
per year, and these emissions will
contribute to global atmospheric
concentrations of CO2. Small amounts of
methane and other organic compounds
(the TCEQ-issued air emissions permit
limit equals 39.6 tons per year) will be
emitted and will contribute to
greenhouse gas effects.
The TCEP is designed to reduce its
emissions of greenhouse gases (and
precursors) to levels that are much
lower than conventional power plants of
equivalent gross generating capacity and
lower than other advanced clean coal
power plants that have been constructed
and operated. DOE requires as a
condition of its decisions that the TCEP
be designed and constructed to capture
at least 90 percent of the carbon in its
fossil fuels (see Mitigation).
Soils, Geology and Mineral Resources
Soils will be disturbed as areas are
prepared for construction. Disturbed
soils will be protected from erosion and
will be re-planted where practicable.
Disturbance at the plant site will result
in permanent removal or displacement
of soils on up to 600 acres. Soil
disturbance in utility corridors is
expected to be temporary and will vary
greatly depending on the options and
routes selected, ranging from 132 to
1,032 acres (53.4 and 417.7 hectares)
(assuming that the permanent rights-ofways but not the temporary rights-ofways will be fully disturbed). New
transportation corridors connecting to
the power plant site could require
between 25.3 and 39.0 acres (10.2 and
15.8 hectares) of soil disturbance.
The CO2 from the TCEP will be sold
to ongoing EOR operations in the
Permian Basin. This use of CO2 in the
basin is a well-established process that
will serve as final sequestration for the
CO2 captured at the TCEP. Capture and
sale of CO2 from the polygen plant will
promote the recovery of oil and gas in
the Permian Basin, where average
additional oil production is
approximately 1.86 barrels of oil per ton
of CO2 injected. As a tertiary method of
EOR, CO2 floods help oil field operators
recover another 8 to 16 percent of the
original quantity of oil in the reservoir.
Because oil and gas are withdrawn
from oil reservoirs as CO2 is injected,
fluid pressures within the reservoir
would not be expected to build up to
levels that would represent a substantial
risk of seismic activity, displacement of
native fluids into overlying strata, or
migration of injected CO2 into other
strata. Abandoned oil wells typically
present the most likely leakage routes in
old oil fields, and these leaks can
usually be identified and plugged. Over
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the long term, injected CO2 would be
trapped in the reservoirs that had
previously trapped oil and natural gas
through many millions of years. DOE
requires as a condition of its decision
that Summit monitor and verify the
sequestration of TCEP’s injected CO2
(see Mitigation).
Ground Water
Supplies of non-potable (brackish or
saline) ground water appear more than
adequate in the region to meet TCEP’s
consumption rates for process
(industrial) water. Although no adverse
impacts are expected to occur if nonpotable ground water is used, water
conservation and use of a dry cooling
system have been included as an
integral part of the plant to minimize
the potential for water supply impacts
to the fullest extent practicable.
Aside from meeting the TCEP’s needs
for process water, Summit is
considering installation of an on-site
well into the Dockum Aquifer to serve
the plant’s potable water needs.
Operational demand will be
approximately 4,500 gal (17,034 L) per
day based on approximately 150
workers on-site. In Ector County, the
quality of the Dockum Aquifer ranges
from fresh to brackish. Although
irrigation and public supply use is
limited in Ector County, at least one
resident in the adjacent community of
Penwell currently relies on water from
the same aquifer for residential and
small-scale commercial use. Potential
water quality effects on this adjacent
well user will be estimated through
testing of a newly drilled well on-site,
if this option is further investigated for
its potential to supply potable water to
the TCEP.
The TCEP could affect ground water
in several ways: (1) Project consumption
from underground sources of drinking
water, (2) displacement of fluids into
underground sources of drinking water,
(3) contamination due to spills, leaks,
releases or leaching during construction
and operations, and (4) diminished
recharge due to alterations of the ground
surface.
The consumption of potable water
from ground water aquifers would
constitute a significant impact if the
TCEP were to use such sources for
primary supply of process water. From
the beginning, project planners were
aware of the potential harms in using
potable water for the plant’s process
water needs, so this type of water
supply was disfavored.
The Edwards-Trinity (Plateau)
Aquifer was considered as one of the
options for water supply, using an
existing well field located near the town
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of Fort Stockton, Texas. This well field
yields water of marginal quality for
human consumption and the water
would benefit from desalination to
improve its acceptance for drinking
water. Currently water from this field is
being used for agricultural irrigation.
The proposed Fort Stockton Holdings
waterline would divert water currently
used for irrigation to the cities of
Midland and Odessa where it could be
used for potable water supply.
If the Fort Stockton Holdings
waterline were built, the TCEP could
use approximately 10 percent of its
capacity. Because no additional ground
water would be withdrawn from the
aquifer (beyond the current rate of
pumping for agricultural irrigation) and
because very little of the water currently
used for irrigation recharges the
Edwards-Trinity Aquifer, Fort Stockton
Holdings’ proposed waterline project,
and TCEP’s use of 10 percent of the
waterline’s capacity, would have no
additional impact on the aquifer. The
proposed Fort Stockton Holdings
waterline is highly controversial and
has been unable to obtain needed
permits and approvals. Therefore, it is
unlikely that this waterline would be
built in time for the TCEP to use it as
a primary water supply. DOE requires as
a condition of its decision that the Fort
Stockton Holdings water line not be
used as a primary source of water (see
Mitigation).
The Capitan Reef Complex Aquifer is
a minor aquifer in West Texas that is
approximately 25 miles to the west of
the plant site. Summit proposed this
aquifer as an option for the process
water source. The aquifer generally
contains poor quality water. Most of the
ground water pumped from this aquifer
in Texas is used for secondary oil
recovery. A small amount is used for
irrigation of salt-tolerant crops. Over the
last 70 years, water levels in the aquifer
have declined in some areas. The Oxy
Permian pipeline system distributes
brackish ground water from the Capitan
Reef formation to water flood projects in
the Permian Basin. The closest source of
Oxy Permian water to the polygen plant
site is a group of ground water wells
near the town of Kermit, Texas.
The Oxy Permian system is not used
at its full capacity, and demand for
water for use in secondary oil recovery
has been slowly declining. Because the
amount of water pumped for the Oxy
Permian pipeline has steadily
decreased, the impacts of additional
pumping for use as TCEP process water
would be small. Usage of this water
supply option would require the
installation and use of a substantial
desalination system at the TCEP plant
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site, with disposal of a substantial
volume of desalination reject water
(brine).
Summit also considered the Pecos
Alluvium Aquifer in response to a
suggestion submitted during the public
comment period on the Draft EIS. This
aquifer is of major regional importance
and has been widely used for irrigation.
In central Ward County, it is also used
for municipal and industrial purposes.
Production rates greatly exceed recharge
rates and aquifer drawdown has
approached 200 feet (61 meters) in some
areas. The aquifer is also highly variable
in production quality and quantity. If
TCEP were to use this option, impacts
to the aquifer’s water quality and
quantity would likely be significant
within the region of the drawdown.
If deep injection wells are used for the
disposal of waste water (whether brine
water or industrial waste water), its
injection could displace native fluids
upward into underground sources of
drinking water. The area of risk would
be around the injection wells where
fluid pressures could increase
significantly in response to the
injection. The extent of this area would
be estimated after a test well is drilled
by Summit to gather hydrologic
information on each of the likely
injection targets. If Summit chooses this
option, DOE requires monitoring of
changes in water quality in the deepest
underground source of drinking water
above the injection site (see Mitigation).
If additional municipal waste water,
after treatment, would be disposed of
into Monahans Draw as a result of the
TCEP, there would be only a small risk
of increased contamination of ground
water beneath the draw. Permit limits
on total dissolved solids (salinity) in
water discharged into the draw will not
be increased, but the volume of waste
water discharged and salt loading could
increase. DOE requires a limit on TCEPrelated waste water discharges and salt
loading to Monahan’s Draw (see
Mitigation).
Surface Water, Floodplains and
Wetlands
At the TCEP site and along access
roads, no surface water resources,
floodplains, or wetlands are present
and, therefore, no direct impacts to
them are expected. Floodplains and
wetland areas have been identified
within pipeline corridors, with the
following amounts of wetlands being
subject to disturbance: WL1, up to 2.53
acres (1.0 hectares); WL3, up to 0.86
acres (0.35 hectares); and WL5, up to
1.29 acres (0.52 hectares). The options
for installation of pipelines beneath
wetlands and water bodies are trenching
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and directional drilling. The choice of
installation technique would be made
by Summit on a case-by-case basis after
more information is gathered at each
location. After construction is complete,
pipelines will not further impact
floodplains. For transmission lines,
structures could be sited to avoid
wetlands along these routes.
Construction activities in corridors that
have water bodies (WL1, WL3 and WL5)
are likely to result in short-term,
construction-related impacts such as
increased turbidity, sedimentation,
streambed disturbance, and stream-bank
vegetation removal.
Under one option for primary supply
of process water, municipal waste water
from Midland would be processed
through primary and secondary
treatment by the Gulf Coast Authority’s
(GCA’s) plant and then processed
through micro-filtration or ultrafiltration devices before being piped to
the TCEP for use. If this option is
chosen by Summit, there would be an
increase in effluent discharge to
Monahans Draw from the GCA outfall as
a result of accepting more waste water,
on most days, than is required for the
TCEP and as a result of disposal of the
reject water. The draw would be dry
most of the time if not for the discharges
of treated municipal and industrial
waste water that maintain ponds and
wetlands on portions of the draw. The
wetlands, although small, are among the
largest and best in the area and are used
by a variety of birds and other wildlife.
The potential increase in GCA’s
discharge to Monahans Draw (1) would
not contribute significantly to flooding
events in downstream low-lying areas,
(2) would make a small contribution to
the existing salt loading in the draw,
and (3) would further support and may
slightly expand wetlands within the
draw.
If Summit chooses the option to use
Midland’s municipal waste water, the
forecasted average increase of 0.75million gallons per day (2.8-million
Liters/day) in GCA’s discharge to
Monahans Draw would represent a 27
percent increase over the current
average discharge from the GCA outfall
and may cause a small increase in the
downstream extent of stream flow along
the draw during dry periods and in the
downstream extent of wetlands. Neither
the average per day increase in GCA’s
effluent discharge, nor the infrequent
full release of waste water received from
Midland (6 million gallons per day)
would represent a significant impact to
flood flow volume, flood elevations, or
flooding frequency in the downstream
areas along Monahans Draw.
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The increase in concentration of total
dissolved solids in GCA’s discharges
would be negligible (dissolved salts
would pass through the micro filtration
or ultra filtration devices). However, if
Summit chooses to use Midland’s
municipal waste water, there would be
a small contribution to the existing salt
loading in the draw because of the
increase in the quantity of effluent.
Biological Resources
Land disturbance and usage at the
TCEP site will result in the permanent
loss of up to 600 acres (243 hectares) of
the mesquite shrub and grassland
vegetation community and associated
habitat functions. Construction
activities could result in the death of
slow-moving terrestrial species not able
to escape the path of construction
equipment. Noise associated with
construction could result in wildlife
displacement and behavioral changes
that could have minimal impacts on
reproductive success. Noise associated
with plant operations will have
negligible long-term effects on wildlife,
because the wildlife will become
accustomed to it. Land at the plant site
is suitable for the Texas horned lizard
(Phrynosoma cornutum) (state listed,
threatened) as well as 11 other statelisted rare species. DOE requires, as a
condition of its decision, measures to
protect listed species (see Mitigation).
Construction of the linear facilities
will result in the permanent removal of
132 to 1,032 acres (53 to 418 hectares)
of mesquite shrub and grassland
community and associated habitat
functions, based on the smallest and
largest combinations of the linear
facility options. An additional 246 to
949 acres (100 to 384 hectares) of habitat
could be temporarily removed or
disturbed during construction. Impacts
to terrestrial species will be similar to
those described above. DOE requires, as
a condition of its decision, measures to
protect listed species (see Mitigation).
At the polygen plant site up to 600
acres (243 hectares) of suitable habitat
for scrubland-nesting migratory birds
and their nests will be permanently
removed. Introduced species (European
starlings and house sparrows)
commonly associated with development
activities (e.g., maintained landscaping,
open trash receptacles) could encroach
on the plant site and displace or outcompete native songbird species.
Migratory birds could experience noiserelated impacts. Additional habitat loss
for migratory birds will occur from the
construction and operation of the linear
facilities. Furthermore, disturbance from
access road construction and use could
displace migratory birds from areas
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adjacent to these. Bird and bat
mortalities due to collisions with
transmission lines will also occur. DOE
requires, as a condition of its decision,
minimization of impacts to migratory
birds (see Mitigation).
If Summit chooses to use solar
evaporation ponds for the disposal of
waste water, the ponds could attract
waterfowl to them thereby exposing the
birds to concentrated brine water, which
could cause salt toxicosis and salt
encrustation of feathers leading to bird
deaths. Covering ponds with netting
would be one option for deterring birds
from contacting the brines. Others
options exist for deterring birds, and
these would be considered when
Summit prepares a bird deterrence plan
(see Mitigation).
Aesthetics
Visual impacts caused by the polygen
plant were evaluated from a number of
key observation points in the area. The
plant, as viewed from most locations
(including the Monahans Sandhills
State Park) will have only minor
impacts on the view shed. The view of
the plant will be more dramatic from the
crest of the escarpment to the east,
especially as seen by motorists traveling
west from Odessa on I–20.
During operations, the height and size
of the plant structures and coal storage
pile will create moderate, adverse,
direct impacts as viewed from the crest
of the escarpment to the east because of
the strong form, color, and line contrasts
with the surrounding landscape. Water
vapor emitted from the cooling tower
will increase the extent of visual
intrusion.
Adverse impacts to night sky
conditions could occur during both
construction and operations due to the
installation of high-intensity lighting
within and around the site. Light
reflected upward will create regionally
visible light pollution and sky glow.
Strobe lighting (if required by the
Federal Aviation Administration) on the
top of the taller plant structures will
adversely affect night sky conditions by
imposing high-intensity flashing lights
that will be regionally visible.
Transmission line structures will
adversely impact the view-shed because
of their height and intrusive vertical
form contrasts with the landscape and
because they will be visible from major
travel routes. Because of existing power
lines, however, they will not become a
focus of viewer attention.
Minor adverse impacts will occur
during construction of pipelines
because equipment and trenches will be
visible and because vegetation will be
cleared along rights-of-ways. Although
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pipelines will be buried, long-term
impacts to aesthetics will occur because
rights-of-ways will be maintained clear
of larger vegetation.
Cultural Resources
Construction and operation of the
TCEP are not anticipated to impact
significant cultural resources; however,
utility corridors have not been
thoroughly investigated and could have
resources that deserve protection. Near
the plant site one historical complex or
set of buildings, the Rhodes Welding
Complex, is considered eligible for the
National Register of Historic Places
(NRHP). Changes to the setting will not
affect its NRHP eligibility. DOE requires,
as a condition of its decision, cultural
resource surveys to be completed for
options and linear facility routes
tentatively chosen by Summit (see
Mitigation).
Land Use
The plant site is currently used for
ranching and oil and gas production,
and these will be displaced on the 600acre plant site by the TCEP. Existing
subsurface rights will continue to be
available for exploration and production
of oil and gas. Operation of the polygen
plant will not be incompatible with
most of the surrounding land uses.
However, the project will directly affect
at least one and perhaps other nearby
residential units in the mostly
abandoned community of Penwell.
For the linear facilities, existing land
uses will be briefly and temporarily
affected by construction. During
operations, impacts to land use will be
limited to the rights-of-way. The rightsof-way land requirements vary by
facility type, and the associated impacts
will last for at least the life of the
utilities. The linear facilities will be
consistent with the intent of the zoning
districts through which they pass.
Generally, existing land uses will be
expected to continue after the linear
facilities are constructed.
Socioeconomics and Community
Services
Impacts to local and regional
population during construction will be
minor because most workers will
commute from nearby communities.
Impacts to population during operations
will be negligible because most of the
150 permanent workers will come from
the local population, although some
may come from outside the area.
Existing housing and hotel supply will
be adequate to meet demands during
operations and most of the construction
phase. Because TCEP workers will come
primarily from the existing nearby
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populations, no changes are anticipated
in the demand for law enforcement,
emergency response, health services,
schools, and recreational opportunities
in the region.
During most of the construction, GDP
in the region of influence (Ector,
Midland, Crane and Ward Counties) is
estimated to increase by more than 0.4
percent. During the final year of
construction, it will increase an
estimated 0.67 percent. During
operations, it will increase by about 0.16
percent, representing a long-term and
beneficial impact for the region. Tax
revenue from the TCEP will have a
beneficial and long-term impact to the
region as revenue will be redistributed
to counties, which in turn will allocate
and redistribute to local communities.
Environmental Justice
Construction and operation of the
proposed project are not anticipated to
have disproportionately high and
adverse impacts on minority or lowincome populations in the area around
the TCEP. Ector County has a higher
concentration of minority populations
than the state as a whole, and many
areas of the county have higher
concentrations of low-income
individuals and families. Minority and
low-income populations were not
identified in the immediate vicinity of
the TCEP (e.g., region of influence for
operational noise). Project emissions are
not expected to cause significant air
quality impacts or exceed regulatory
thresholds. Impacts to surface and
ground water resources are not expected
to be high. Construction-related traffic
congestion and traffic noise would
temporarily increase significantly in
some road segments very near the plant
site, but these impacts are not expected
to be disproportionate. Noise generated
by operations and construction of the
project would be significant locally;
however, these impacts would not be
disproportionate on environmental
justice populations.
In general, the project could
disproportionally harm minority and
low-income communities in regard to
housing availability (primarily shortterm housing, such as motels), utility
rates, and safety issues associated with
increased traffic, but these impacts are
not expected to be high. Short-term
beneficial impacts could include an
increase in employment opportunities
and higher wages during construction.
Utility Service
To accommodate the electricity
generated by the TCEP, there may be a
need for system upgrades associated
with the electrical interconnection to
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either the Electric Reliability Council of
Texas (ERCOT) grid or the Southwestern
Power Pool (SPP) grid. The nature of the
upgrades will be further defined as
interconnection studies are completed.
These upgrades could involve local
installation of larger conductors, new
power transmission line segments, and
upgrades of other local system
components.
Transportation
Several routes were considered as
potential new access roads to the
polygen plant site. One route is directly
from the community of Penwell, linking
FM 1601 to the plant site via an
underpass beneath the railroad at the
southern border of the plant. The other
routes are from the east and northeast of
the plant site, connecting either to FM
866 or an I–20 frontage road.
During the period of plant
construction, local traffic will increase
as a function of the employment levels
at the plant site. Delays associated with
merging traffic and increased percent of
time spent following slow vehicles will
affect the level of service (LOS) of each
road to which a plant site access road
may be connected. Construction
activities will result in temporary
localized traffic delays, and most
impacts will occur during shift changes.
During TCEP operations, there will be
an average of four additional 150-car
unit-trains per week along the railroad
(Union Pacific), amounting to a 3
percent increase over the existing rail
traffic on this line. Under the peak urea
production option, there would be an
average of approximately six additional
150-car unit-trains per week along the
railroad, amounting to a five percent
increase in rail traffic. Neither option
represents an increase that would
exceed system capacity nor cause delay
to existing railway operations. Because
the loading and unloading of TCEPrelated materials will occur on the
railroad spur, no impacts to the railroad
will occur.
Materials and Waste Management
No impacts will occur from the
management of construction materials.
Furthermore, no impacts will occur to
the supply of construction materials as
a result of the demand from the project.
Operations materials will include coal,
natural gas, process water, process
chemicals, and commercially
marketable products. No impacts from
the management of these materials are
expected. Plans for delivery, handling,
and storage of operations materials will
be in place before operations begin.
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Human Health, Safety, and Accidents
During construction, Summit will
follow established procedures to
provide a safe and healthy environment
for workers, contractors, visitors, and
the community. Based on industry
workplace hazard statistics, the TCEP
construction workforce could
experience 91.65 nonfatal, recordable
incidents and 48.75 lost workdays.
Statistics suggest that fatalities are
unlikely (0.19 fatality) during the threeyear construction period.
Design features and safety programs
will be established by Summit to
minimize hazards during operations of
the TCEP and linear facilities. Based on
industry workplace hazard statistics,
over the life of the project the TCEP
operations workforce could experience
158 recordable incidents, 122 lost
workdays, and less than one fatality.
Adverse impacts to human health and
safety, although unlikely, could result
from various types of accidents or acts
of sabotage and terrorism, ranging from
small pipeline leaks to, in an extremely
unlikely case, an explosion at the
polygen plant. The greatest risks to
human health and safety are associated
with sudden, unconstrained releases of
toxic gases, such as ammonia (NH3) and
hydrogen sulfide (H2S). Exposure
modeling of unmitigated releases using
worst-case atmospheric conditions was
used to evaluate the risks of various
levels of harm. These analyses were
made assuming no mitigations are used;
therefore, these risks can be reduced
with the appropriate measures, such as
planning, design and engineering
controls. While the probability of
intentional acts like sabotage and
terrorism cannot be easily predicted, the
consequences could be similar to the
accidents analyzed in the risk
assessment.
During operations of the polygen
plant, the risk of someone being killed
by exposure to a toxic gas in the event
of a release would vary depending on
his location relative to the release. The
risk per year ranges from one in 1,000
to one in 100,000,000 of being killed in
the project area. Toxic substance
hazards are dominated by the potential
releases of ammonia gas from the
pipeline leading from the ammonia
synthesis unit to the urea synthesis
plant, or through ammonia production
or storage processes. Risks are greatest
to those workers closest to the ammonia
synthesis unit.
Noise and Vibration
During construction, equipment noise
will be perceptible outdoors at the
Penwell receptor locations north of I–
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20; however, people south of I–20 will
likely not hear a substantial increase in
noise owing to existing noise from
vehicles on I–20. Intermittent increases
in noise will result from steam venting
prior to and during plant startup and
commissioning. Although this venting
will briefly exceed acceptable Federal
Transit Administration (FTA) levels for
residential areas (there will be a series
of short loud blasts over a two-week
period), the FTA’s commercial-area
construction threshold levels will not be
exceeded.
Construction of some linear facilities
(WL3, TL5, TL6, NG1–NG3, and AR1)
will likely create temporary, adverse
noise impacts to residents where the
proposed lines are located close to
residential areas.
During polygen plant operations,
several plant components (e.g.,
generators, pumps, fans, vents, relief
valves, coal delivery/handling system)
will generate noise. This operational
noise will exceed the EPA’s 55 dBA Ldn
outdoor noise threshold at the two
closest noise-sensitive receptors in
Penwell (exceeding the threshold by 6
and 4 dBA). Long-term indoor noise
levels are expected to be in compliance
with EPA health and safety guidelines.
Environmentally Preferred Alternative
From a local perspective, the noaction alternative is environmentally
preferable because it would result in no
changes to the existing environmental
conditions. However, from a national
perspective, DOE’s Proposed Action is
the environmentally preferred
alternative because it could hasten the
deployment of carbon capture and
sequestration practices at power plants
and other industrial facilities around the
world in an effort to reduce greenhouse
gas emissions that otherwise will occur
with the continued combustion of fossil
fuels, especially coal, in stationary
facilities. In addition to demonstrating
carbon capture from a power plant and
sequestration of captured CO2 through
EOR, the TCEP will encourage faster
deployment of several other
technologies that, if widely deployed by
industry, could help reduce
environmental impacts: (1) Integrated
gasification combined-cycle technology,
which allows for the production of more
electricity from a given quantity of coal
compared to convention power plants;
(2) polygeneration, which may allow for
lower cost and more efficient
production of electricity and various
other products (including products
made using captured CO2, such as urea);
(3) dry cooling, which greatly reduces
water consumption or usage by various
industrial processes; (4) zero liquid
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discharge or water reuse concepts,
which help reduce water consumption
and minimize the quantity of waste
water.
Comments Received on the Final EIS
DOE received comments, both oral
and written, from U.S. EPA’s Region 6
on the Final EIS concerning the lack of
identification of preferred alternatives
and the need to further investigate
potential impacts to resources in
association with some of the options.
EPA’s Region 6 found that DOE’s
revisions to the Draft EIS were generally
improvements, but it remains concerned
that a preferred alternative for each of
the linear facilities was not identified in
the Final EIS. Region 6 understood that
Summit could not identify a preferred
alternative for each of the linear
facilities until additional investigations
occur.
For the TCEP, DOE identified its
preferred alternative in the Final EIS,
which is to fund the project. Subject to
the mitigations required by this ROD
and given the information presented in
the Final EIS, DOE has no preference
among the options not dismissed from
further consideration by this ROD. DOE
finds all the remaining options to be
equally acceptable, provided that
Summit undertakes the mitigations
required by this ROD.
EPA’s Region 6 also requested that
DOE make a commitment in the ROD
that, if field investigations reveal that an
option chosen by Summit has impacts
greater than those identified in the EIS,
DOE would prepare a supplemental
analysis. EPA further requested that the
supplement analysis be provided to all
regulatory agencies, including the EPA,
for review. DOE will gather additional
information and, if that information
reveals potential impacts that are not
adequately addressed in the EIS, it will
prepare a Supplement Analysis to assist
DOE in determining whether a
supplemental EIS is needed.
DOE also received comments in
writing from the Texas Parks and
Wildlife Department (TPWD) on the
Final EIS concerning protection of
wildlife and habitat.
TPWD recommended that DOE review
TPWD’s comments and
recommendations submitted during the
public scoping and comment periods as
many of these remain applicable to the
project described in the Final EIS. As
requested, DOE has again reviewed
these two submittals and has factored
TPWD’s previous comments and
recommendations into this ROD,
particularly in the section on Mitigation.
TPWD notes that because few water
sources exist on or near the project site,
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60487
resident and migratory birds may be
attracted to the proposed evaporation
ponds spanning 160 acres in this arid
area. TPWD therefore recommends a
bird deterrent system be developed for
the evaporation ponds. In anticipation
of this request, this ROD includes a
requirement for a bird deterrent plan
and the implementation of the plan, if
Summit chooses to use solar
evaporation ponds (see Mitigation).
More specifically, this ROD requires
that high salinity ponds be designed and
constructed to be ready for the
installation of netting. TPWD further
asks that it be contacted to discuss
specific details of a bird deterrent
system. DOE and Summit will consult
with TPWD during the development of
the bird deterrent plan.
TPWD supports Summit’s preferred
option of using Midland’s municipal
waste water as a supply for the polygen
plant. However, TPWD believes that
waterline option WL1 appears to better
minimize adverse impacts to surface
waters than WL5 because it has fewer
crossings of Monahans Draw. To
minimize impacts to the draw, TPWD
recommends that the TCEP use
directional drilling rather than
trenching for pipeline crossings
regardless of the waterline route chosen.
The EIS notes that trenching, if this
method of pipeline installation is
chosen, would include restoration
procedures, such as stream bank
stabilization and revegetation. Further
site investigations into the technical
feasibility, costs, and potential for
adverse impacts would be completed
before determining the exact stream
crossing locations, method of pipeline
installation at streambeds, and
mitigation methods.
One individual submitted comments
on the Final EIS. These comments
encourage the use of desalinated
brackish or brine ground water
(particularly water co-produced with oil
and gas) and provided an Internet
address for an article on emerging
desalination technologies that may cost
less for waters produced from oil fields.
The comments also suggest that Summit
should consider a larger desalination
system that could serve both the TCEP
and some portion of the municipal
water supply needs of Odessa. In
response, Summit indicates that it is
investigating various desalination
systems and currently plans to size its
system to meet the TCEP’s needs
assuming that brackish water from the
Capitan Reef Complex Aquifer would be
the source. Summit further indicates
that it has engaged in preliminary
discussions with representatives of the
city of Odessa regarding the possibilities
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for cooperation in the desalination of
water.
Issued in Pittsburgh, Pennsylvania on this
22nd of September 2011.
Anthony V. Cugini,
Director, National Energy Technology
Laboratory.
[FR Doc. 2011–25070 Filed 9–28–11; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Project No. 14145–001]
tkelley on DSKG8SOYB1PROD with NOTICES
Pacific Green Power, LLC; Notice of
Intent To File License Application,
Filing of Pre-Application Document,
Denying Use of the Traditional
Licensing Process, Commencement of
Licensing Proceeding, Scoping, and
Solicitation of Study Requests and
Comments on the PAD and Scoping
Document
a. Type of Filing: Notice of Request To
Use the Traditional Licensing Process.
b. Project No.: 14145–001.
c. Dated Filed: July 25, 2011.
d. Submitted by: Pacific Green Power,
LLC.
e. Name of Project: Two Girls Creek
Hydroelectric Project.
f. Location: On Two Girls Creek River,
in Linn County, Washington. The
project occupies United States lands
administered by the Forest Service.
g. Filed Pursuant to: 18 CFR 5.3 of the
Commission’s regulations.
h. Potential Applicant Contact: Mr.
David G. Harmon, P.E., Pacific Green
Power, LLC, P.O. Box 44, Sweet Home,
Oregon 97386; phone: (541) 405–5236.
i. FERC Contact: Jennifer Harper at
(202) 502–6136; or e-mail at
Jennifer.Harper@FERC.gov.
j. Pacific Green Power, LLC filed its
request to use the Traditional Licensing
Process on July 25, 2011. With this
notice, the Director of the Division of
Hydropower Licensing denies Pacific
Green Power, LLC’s request to use the
Traditional Licensing Process.
k. With this notice, we are initiating
informal consultation with: (a) The U.S.
Fish and Wildlife Service and NOAA
Fisheries under section 7 of the
Endangered Species Act and the joint
agency regulations thereunder at 50
CFR, Part 402; (b) NOAA Fisheries
under section 305(b) of the MagnusonStevens Fishery Conservation and
Management Act and implementing
regulations at 50 CFR 600.920; and (c)
the Oregon State Historic Preservation
Officer, as required by section 106,
National Historical Preservation Act,
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and the implementing regulations of the
Advisory Council on Historic
Preservation at 36 CFR 800.2.
l. Pacific Green Power, LLC filed a
Pre-Application Document (PAD;
including a proposed process plan and
schedule) with the Commission,
pursuant to 18 CFR 5.6 of the
Commission’s regulations.
m. A copy of the PAD is available for
review at the Commission in the Public
Reference Room or may be viewed on
the Commission’s Web site (https://
www.ferc.gov), using the ‘‘eLibrary’’
link. Enter the docket number,
excluding the last three digits in the
docket number field to access the
document. For assistance, contact FERC
Online Support at
FERCONlineSupport@ferc.gov or toll
free at 1–866–208–3676, or for TTY,
(202) 502–8659. A copy is also available
for inspection and reproduction from
the applicant listed in paragraph h.
Register online at https://
www.ferc.gov/docs-filing/
esubscription.asp to be notified via email of new filing and issuances related
to this or other pending projects. For
assistance, contact FERC Online
Support.
n. With this notice, we are soliciting
study requests, as well as comments on
the PAD and Scoping Document 1
(SD1). All study requests, as well as
comments on the PAD and SD1 should
be sent to the address above in
paragraph h. In addition, all study
requests, comments on the PAD and
SD1, requests for agency cooperator
status and all communications to and
from Commission staff related to the
merits of the potential application must
be filed with the Commission.
Documents may be filed electronically
via the Internet. See 18 CFR
385.2001(a)(1)(iii) and the instructions
on the Commission’s Web site https://
www.ferc.gov/docs-filing/efiling.asp.
Commenters can submit brief comments
up to 6,000 characters, without prior
registration, using the eComment system
at https://www.ferc.gov/docs-filing/
ecomment.asp. You must include your
name and contact information at the end
of your comments. For assistance,
please contact FERC Online Support.
Although the Commission strongly
encourages electronic filing, documents
may also be paper-filed. To paper-file,
mail an original and seven copies to:
Kimberly D. Bose, Secretary, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426.
All filings with the Commission must
include the project name and number,
and bear the heading ‘‘Study Requests,’’
‘‘Comments on Pre-Application
Document,’’ ‘‘Comments on Scoping
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Document 1,’’ ‘‘Request for Cooperating
Agency Status,’’ or ‘‘Communications to
and from Commission Staff.’’ Any
individual or entity interested in
commenting on the PAD must do so by
November 22, 2011.
o. At this time, the Commission
intends to prepare an Environmental
Assessment (EA) on the project, in
accordance with the National
Environmental Policy Act, as
determined by the issues identified
during the scoping process. If an EIS is
determined to be required for the
project, the U.S. Army Corps of
Engineers has requested to be a
cooperating agency.
Scoping Meetings
Commission staff will hold two
scoping meetings in the vicinity of the
project at the time and place indicated
below. The daytime meeting will focus
on resource agency and nongovernmental organization (NGO)
concerns, while the evening meeting is
primarily for receiving input from the
public. We invite all interested
individuals, organizations, and agencies
to attend one or both of the meetings,
and to assist staff in identifying
particular study needs, as well as the
scope of environmental issues to be
addressed in the environmental
document. The times and locations of
these meetings are as follows:
Daytime Scoping Meeting
Dates: Tuesday, October 18, 2011,
Time: 1 p.m.–4 p.m.,
Place: Sweet Home Ranger District
Office, 4431 Highway 20, Sweet Home,
OR 97386.
Evening Scoping Meeting
Date: Tuesday, October 18, 2011,
Time: 6 p.m.–9 p.m.,
Place: Sweet Home Senior and
Community Center, 880 18th Ave,
Sweet Home, OR 97386.
Scoping Document 1 (SD1), which
outlines the subject areas to be
addressed in the environmental
document, was mailed to the
individuals and entities on the
Commission’s mailing list. Copies of
SD1 will be available at the scoping
meetings, or may be viewed on the web
at https://www.ferc.gov, using the
‘‘eLibrary’’ link. Follow the directions
for accessing information in paragraph
n. Based on all oral and written
comments, a Scoping Document 2 (SD2)
may be issued. SD2, if needed, would
include a revised process plan and
schedule, as well as a list of issues,
based on the scoping process.
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Agencies
[Federal Register Volume 76, Number 189 (Thursday, September 29, 2011)]
[Notices]
[Pages 60478-60488]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25070]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Record of Decision, Texas Clean Energy Project
AGENCY: Department of Energy.
ACTION: Record of decision.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Energy (DOE) announces its decision to
continue to provide financial support to the Texas Clean Energy Project
(TCEP). DOE prepared an Environmental Impact Statement (EIS) (DOE/EIS-
0444) to assess the environmental impacts associated with the TCEP, a
project that Summit Texas Clean Energy, LLC (Summit) would design,
construct, and operate. The project will demonstrate advanced power
systems using integrated gasification combined-cycle (IGCC) technology
to generate 400 megawatts (gross) of electric power from coal and will
put 130 to 213 megawatts on the power grid while capturing
approximately 90 percent of its carbon dioxide (CO2)
emissions. The project will sequester approximately 2.5 to 3.0 million
tons (2.3 to 2.7 million metric tonnes) of CO2 per year. The
CO2 will be delivered through a regional pipeline network to
existing oil fields in the Permian Basin of West Texas for use in
enhanced oil recovery (EOR) by third-parties. The plant will also
produce urea, argon, and sulfuric acid for sale in commercial markets.
Because of its multiple products, the facility is referred to as a
polygeneration (polygen) plant. The plant will be built on a 600-acre
(243-hectare) oil field site in Ector County, Texas, north of the
community of Penwell, and will continue in commercial operation for 30
to 50 years.
DOE's proposed action, as described in the EIS, is to provide cost-
shared financial assistance under DOE's Clean Coal Power Initiative
(CCPI) using a combination of American Recovery and Reinvestment Act of
2009 (ARRA) (Pub. L. 111-5) funds and other CCPI program funds. After
careful consideration of the potential environmental impacts and other
factors such as program goals and objectives, DOE has decided to
provide, through a cooperative agreement with Summit, $450 million in
cost-shared funding, which is approximately 26 percent of the project's
total capital cost of $1.73 billion (2009 dollars). The balance of
project funding is expected to come from private sector investors and
lenders.
ADDRESSES: The Final EIS is available on the National Energy Technology
Laboratory's Web site at: https://www.netl.doe.gov/publications/others/nepa/ and on the DOE NEPA Web site at: https://energy.gov/nepa. Copies of the EIS may be obtained from Mr. Mark L. McKoy,
Environmental Manager, U.S. Department of Energy, National Energy
Technology Laboratory, P.O. Box 880, Morgantown, WV 26507-0880;
telephone: 304-285-4426; toll-free number: 1-800-432-8330 (ext 4426);
fax: 304-285-4403; or e-mail: mmckoy@netl.doe.gov.
FOR FURTHER INFORMATION CONTACT: To obtain additional information about
this project, the EIS, or this Record of Decision (ROD), contact Mr.
McKoy by the means specified above under ADDRESSES. For general
information on the DOE NEPA process, contact Ms. Carol M. Borgstrom,
Director, Office of NEPA Policy and Compliance (GC-54), U.S. Department
of Energy, 1000 Independence Avenue, SW., Washington, DC 20585;
telephone: 202-586-4600; fax: 202-586-7031; or leave a toll-free
message at: 1-800-472-2756.
SUPPLEMENTARY INFORMATION: DOE prepared this ROD pursuant to the
National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321 et
seq.), Council on Environmental Quality's (CEQ's) regulations for
implementing the procedural provisions of NEPA [40 Code of Federal
Regulations (CFR) Parts 1500-1508], DOE's NEPA regulations (10 CFR Part
1021), and DOE's Compliance with Floodplain and Wetland Environmental
Review Requirements (10 CFR Part 1022). This
[[Page 60479]]
ROD is based on DOE's Final EIS for the Texas Clean Energy Project
(DOE/EIS-0444), comments submitted on the EIS and proposed project,
other information, and program considerations.
Background and Purpose and Need for Agency Action
The TCEP involves the planning, design, construction, and operation
by Summit of a coal-fueled electric power and chemicals production
plant integrated with CO2 capture and geologic sequestration
through EOR. Summit is owned jointly by the Summit Power Group, Inc.,
and CW NextGen, Inc., a Clayton Williams company. The project team
includes Summit; Summit Power Group, Inc.; Siemens Energy, Inc.; Linde,
AG; Fluor Corporation; Blue Source, LLC; and others.
DOE selected this project for an award of financial assistance
through a competitive process under the CCPI Round 3 program pursuant
to the process set out in Funding Opportunity Announcement (FOA) DE-
FOA-0000042. DOE's financial assistance will occur through cost sharing
as specified under the terms of a financial assistance agreement
between DOE and Summit. This project includes a demonstration period
(including plant reliability and operations testing) following the
construction and commissioning of the plant and continuing until the
end of the cooperative agreement's period of performance (July 15,
2017).
As the nation's most abundant fossil fuel, coal is expected to have
an important role in the United States' energy future. However, fossil
fuel combustion is a major source of anthropogenic CO2
emissions. Electric power generation contributes approximately 39
percent of all CO2 emissions in the U.S. In 2009, 81 percent
of all electricity production-related CO2 emissions resulted
from the burning of coal.
Public Law 107-63, enacted in November 2001, established the CCPI
program, which is a cost-shared collaboration between the Federal
government and industry to increase investment in advanced, low-
emissions coal technologies. Later, with Title IV of the Energy Policy
Act of 2005 (EPACT 2005) (Pub. L. 109-58), the Congress established
additional criteria for projects receiving financial assistance under
the CCPI program. Under these criteria, CCPI projects must help the
nation successfully commercialize advanced power systems that ``advance
efficiency, environmental performance, and cost competitiveness well
beyond the level of technologies that are in commercial service''
(EPACT 2005, section 402(a)). In February 2009, the Congress
appropriated $3.4 billion to DOE for fossil energy research and
development, with $800 million allocated to the CCPI program. CCPI's
Round 3 seeks to address the challenge of meeting the United States'
dynamic demand for electricity while decreasing emissions of
CO2 from coal-based power generation. This is done through
financial assistance awards to industrial participants for
demonstrations, at commercial scale and in commercial settings, of low-
CO2 emissions coal-based technologies that have
opportunities for timely deployment in the power industry.
DOE's purpose is to provide financial assistance to projects that
have the best chance of achieving the CCPI program's objectives as
established by the Congress. Specifically, DOE's purpose and need for
action is to demonstrate the commercial-readiness of CO2
capture and geologic sequestration fully integrated with a power plant.
The technical, environmental, financial and performance data generated
from the design, construction, and operation of the polygen plant will
provide a commercial reference plant for these technologies.
EIS Process
DOE published a Notice of Intent in the Federal Register on June 2,
2010 (75 FR 30800) announcing its plan to prepare an EIS and hold a
public scoping meeting. DOE held the scoping meeting in Odessa, Texas,
on June 17, 2010. DOE considered all of the comments it received on the
scope of the EIS and addressed them in the Draft EIS. On March 18,
2011, the U.S. Environmental Protection Agency (EPA) published a Notice
of Availability of the Draft EIS in the Federal Register (76 FR 14969).
On March 22, 2011, DOE published in the Federal Register (76 FR 15968)
a Notice of Availability and announced a public hearing in Odessa on
April 5, 2011. Comments were solicited at the public hearing and
throughout the 45-day public comment period, which ended May 2, 2011.
Comments on the Draft EIS included:
Proposed options to use municipal waste water and the
proposed Fort Stockton Holdings water supply pipeline;
Possible changes in discharges to Monahans Draw and salt
loading due to discharge to the draw;
The need to reduce the project's demand for potable water
in light of the limited regional supply;
The choice of West Texas as the site for a coal-fueled
electricity generating plant instead of a site near either the supply
of coal or the demand for the electricity;
The market for electricity and the economic viability of
the project;
DOE's proposed funding of clean coal projects instead of
projects using renewable resources;
The need for a comprehensive CO2 emissions
assessment that extends through the EOR process to the end uses of
produced petroleum products;
Increased railroad traffic and associated coal dust; and
The existence of additional foreseeable projects that
should be included in the cumulative effects section of the EIS.
In the Final EIS, DOE considered and, as appropriate, responded to
comments on the Draft EIS. The EPA published a Notice of Availability
for the EIS in the Federal Register on August 5, 2011 (76 FR 47579). In
addition to responding to comments on the Draft EIS, the Final EIS
included new information related to, among other things, treatment of
process water and the disposal of waste water by two additional
options: evaporation ponds and deep well injection.
Decision
DOE has decided to proceed with $450 million in financial
assistance (i.e., cost-shared funding) under the terms of the
cooperative agreement with Summit for the design, construction and
demonstration of the TCEP.
Basis of Decision
DOE's decision was reached after considering the potential
environmental impacts presented in the EIS, the practicable options for
mitigation of the impacts, the importance of achieving the objectives
of programmatic and legislative mandates (CCPI, EPACT 2005, and ARRA)
and other information. Specifically, the project meets or exceeds the
three primary objectives of CCPI Round 3 and satisfies the programmatic
and legislative objective of demonstrating the technical practicality
of producing electricity and other products from coal while capturing
and beneficially using most of the CO2 produced from coal
gasification.
Furthermore, the project will create jobs and modernize the
nation's infrastructure, meeting the objectives of the ARRA. During
most of the construction period, the gross domestic product (GDP) in
the region of influence (Ector, Midland, Crane and Ward Counties) is
estimated to increase by more than 0.4 percent; during the final year
of construction it will increase by an estimated 0.67 percent. During
plant operations, regional GDP will increase
[[Page 60480]]
by about 0.16 percent, representing a long-term benefit. Property taxes
paid by the project are expected to total $14.5 million annually during
the operations phase, after deducting anticipated abatements and tax
reliefs. Income and sales taxes related to the project will further
benefit local governments.
Summit estimates that an average of 650 construction workers will
be needed to build the plant with a peak at perhaps 1,500 workers.
TCEP's operational work force is expected to be approximately 150
workers. Accounting for indirect and induced jobs, the total number of
jobs resulting from the project will average about 1,000 during
construction and 300 during operations.
This decision incorporates all practicable means to avoid or
minimize environmental, social, or economic harm. DOE plans to verify
the implementation of appropriate avoidance and mitigation measures.
Mitigation
As a condition of its decision to provide funding for the design,
construction and operation of the project, DOE is imposing requirements
that will avoid or minimize the environmental impacts of the project.
These conditions are described below. Under the terms of the
cooperative agreement, DOE requires Summit to comply with applicable
Federal, state and local government laws, regulations, permit
conditions, and orders. Mitigation measures beyond those specified in
permit conditions enforceable by other Federal, state and local
agencies are addressed in this ROD and, as appropriate, will be set
forth in a Mitigation Action Plan (MAP) as required by 10 CFR 1021.331.
The MAP will further detail the mitigation measures, explaining how
they will be planned, implemented, monitored and reported. These
mitigation requirements are a condition for continued DOE funding.
DOE will ensure that commitments in this ROD (as further detailed
in the MAP) are met through management of the cooperative agreement,
which makes the conditions in the ROD contractually enforceable. DOE
will make the MAP available for public inspection via postings on the
DOE and NETL Web sites.
During project planning, Summit incorporated various mitigation
measures and anticipated permit requirements. The analyses in the EIS
assumed that these measures would be in effect. These measures are
identified in Tables S2-7 and 2-8 of the EIS as commitments made by
Summit and are incorporated into this ROD as conditions for DOE's
financial assistance under the cooperative agreement.
Mitigations identified in this ROD shall be made a term and
condition for future ownership or management of the TCEP by any other
parties during the period of performance under the cooperative
agreement.
After carefully reviewing the EIS, the comments received on the EIS
and proposed project, and the current events in the region, DOE
requires the following mitigation measures as a condition of its
decision:
(1) Summit shall design and construct the TCEP to capture at least
90 percent of the carbon in the fossil fuels when operating under
normal conditions, and Summit shall use best efforts to achieve at
least a 90 percent capture rate during the demonstration period.
(2) Summit shall develop jointly with the Texas Bureau of Economic
Geology and DOE a plan for monitoring, verification and accounting
(MVA) of CO2 sequestered through EOR. The MVA will be
implemented by third-party buyers of the CO2. Contracts
established between Summit and these buyers (or the field operators who
ultimately use the CO2) shall make the implementation of the
MVA plan a term and condition of the contract and shall, as
appropriate, involve the Texas Bureau of Economic Geology and the Texas
Railroad Commission in the certification of the sequestration of
CO2 via EOR. MVA reports submitted to the State of Texas
shall also be submitted to Summit and to DOE (via Summit).
(3) Summit shall not use the proposed Fort Stockton Holdings
waterline as a primary water supply for the TCEP. If constructed, this
waterline may be used as a backup supply to temporarily provide water
to the TCEP when the primary water supply is not in service.
(4) Summit shall not enter into contracts whereby waste water
discharge into Monahans Draw would increase by more than 0.75 million
gallons per day, as an annual average, and 6 million gallons per day as
a daily maximum, as a result of the TCEP.
(5) The TCEP's power island shall be designed, constructed and
operated with dry cooling towers. If this is found to be technically
infeasible, then a hybrid cooling system (or a wet cooling assist) may
be used. A wet cooling system is acceptable for the chemical plant
component of the TCEP.
(6) If the TCEP uses solar evaporation ponds, Summit shall plan,
design, and construct any high salinity ponds to be ready for
installation of bird deterrent netting. Before completing final design
on solar evaporation ponds, Summit shall prepare, jointly with DOE and
governmental agencies with regulatory jurisdiction, a plan for bird
deterrence, monitoring and reporting; and this plan shall be
implemented during the design, construction and operation of the solar
evaporation ponds.
(7) If Summit chooses to dispose of desalination reject water by
deep well injection, in addition to complying with the terms and
conditions of a permit under Texas's Underground Injection Control
Program, Summit shall install a well near the bottom of the zone of
potentially potable ground water (i.e., ground water with a total
dissolved solids concentration of less than 10,000 milligrams per
liter) and monitor this water for increases in total dissolved solids
and hydrocarbons as indicators of possible leakage of more deeply
injected brine reject water or displaced native fluids. It may be
feasible to use the same well for both monitoring and for supplying
potable water to the polygen plant. Before completing final design on a
system for deep well injection of brine reject water, Summit shall
prepare, jointly with DOE and government agencies with regulatory
jurisdiction, a plan for monitoring well design, construction,
monitoring and reporting; and this plan shall be implemented during the
design, construction and operations of the system for deep well
injection.
(8) Before land disturbance at the plant site and along the utility
corridors, Summit shall survey areas to be disturbed and undertake
measures to protect wetlands, waterways (including non-jurisdictional
waters), playa lakes, rare species (e.g., the sand dune lizard,
Sceloporus arenicolus, Federal candidate for listing) and critical
habitats (e.g., the Shinnery Oak Sand Dune habitat), and state-listed
rare species (particularly the Texas horned lizard), as specified in
the MAP. As appropriate, Summit shall consult with the U.S. Fish and
Wildlife Service and the Texas Parks and Wildlife Department regarding
special natural communities and features, as well as rare species and
their habitats.
(9) To reduce impacts to species protected under the Migratory Bird
Treaty Act, ground disturbing activities in areas of potential breeding
habitat shall be avoided during the breeding and nesting season (March
1 through July 31). If this seasonal avoidance is not practicable, a
qualified biologist shall survey the potentially affected area prior to
any ground disturbing activities to determine if nesting is underway;
and buffer areas shall be established as needed to protect eggs and
young birds until they fledge. Owls and hawks may
[[Page 60481]]
nest in this area at other times of year. Surveys shall be conducted
for owl and hawk nests, and buffer areas shall be established around
active nests. If a power transmission line route crosses or is located
near a water body or playa lake bed, the adjacent section of the line
shall have line markers to reduce the potential for bird collisions. To
prevent electrocution of perching raptors and to reduce power outages
and maintenance, Summit shall consider the use of various protection
measures such as adequate line spacing, perch guards, and insulated
jumper wires.
(10) For linear facility routes chosen by Summit, phase I cultural
resource surveys (including archaeological and paleontological
surveys), along with consultations with the Texas State Historic
Preservation Officer and DOE, shall be completed for segments not
previously surveyed but for which surveys are warranted. Further
consultation with the State Historic Preservation Officer for any
unforeseen areas of construction or ground disturbance not included
within the EIS shall be completed before construction starts to
determine the need for further cultural resource investigations and any
appropriate mitigation measures.
(11) For any pipeline crossings of Monahans Draw, Summit shall
first consider the practicability of pipeline installation beneath the
streambed by directional drilling. If trenching is chosen as the method
of installation of pipeline, Summit shall seek to use crossing
locations and construction techniques whereby impacts to aquatic life,
vegetation and land surface features along the draw would be minimized;
and Summit shall use land surface reconstruction, erosion controls, and
revegetation (with native species) to stabilize and restore the
affected floodplains, stream banks, stream beds, and vegetation.
(12) Where vegetative ground cover remains disturbed or soil
remains exposed after project-related construction activities, Summit
shall strive to achieve beneficial results in terms of erosion control,
land stabilization, long-term vegetative cover and habitat improvement
through revegetation, landscaping and other techniques as appropriate.
Plantings of vegetation shall use species that are native, adaptable to
the planting location, beneficial to wildlife, drought tolerant, and
helpful with water conservation. Where practicable, grass re-seedings
or plantings shall use only native species, usually in a mixture of
grasses and forbs appropriate to address potential erosion problems and
provide long-term cover.
(13) Summit shall prepare annual reports during the term of the
cooperative agreement that document the operations and corresponding
air emissions from the TCEP. Annual reports shall include summary
information on the TCEP's emissions of criteria pollutants, mercury and
other toxic pollutants of concern, and CO2. These reports
shall indicate the performance and emissions of the TCEP during normal
operations. If air emissions data are collected during periods of
operation outside normal steady-state conditions, this information also
shall be summarized in the report.
(14) To reduce visual impacts associated with polygen plant
structures and facilities, including exposed portions of linear
facilities, DOE recommends that Summit choose, where appropriate,
finish coat colors for exterior surfaces that reduce the form, color
and line contrasts between the surrounding landscape and the exteriors
of buildings and structures. Chosen colors should be slightly darker
than the surrounding landscape to achieve optimal benefit. This choice
of color would not apply where regulation, safety, service, material
type, or other reasons dictate the choice of other colors or no paint.
Summit will conduct further resource assessments as the project
planning and design continues. If there are substantial changes in the
TCEP proposal or significant new information relevant to environmental
concerns, as described in 40 CFR 1502.9(c)(1), DOE will prepare a
supplemental EIS. If it is unclear whether an EIS supplement is
required, DOE will prepare a Supplement Analysis, in accordance with 10
CFR 1021.314(c), to support the determination. DOE will make Supplement
Analyses available to the public and to regulatory agencies with
jurisdiction for 30 days of review and comment prior to DOE determining
whether a supplemental EIS is required.
Project Description and Location
The project will be located approximately 15 miles (mi) (24
kilometers) southwest of the city of Odessa in Ector County, Texas.
Summit will build the polygen plant on a 600-acre (243-hectare) site
adjacent to the community of Penwell and north of Interstate Highway 20
(I-20) along a Union Pacific Railroad line. Summit chose this site
primarily because of its proximity to an existing CO2
market, a connection point to a CO2 pipeline network, and
multiple oil fields currently performing or suitable for CO2
floods.
The project's linear facilities include one or two electric
transmission lines to connect the plant with one or both of the nearby
power grids; process water supply pipelines; a natural gas pipeline; a
pipeline for captured and compressed CO2; one or two access
roads; and a rail spur.
The TCEP will employ integrated gasification combined-cycle (IGCC)
technology. Gasification is the process of converting coal into a fuel
called synthesis gas (syngas). A combined-cycle electric power plant is
one that uses both a gas turbine-generator (similar to a jet aircraft
engine) and a steam turbine-generator (which uses steam produced by
exhaust heat from the gas turbine-generator) to produce more
electricity than would be produced by a boiler and conventional steam
turbine-generator alone. Combining (integrating) the gasification
process with a combined-cycle power plant is known as IGCC.
This polygen plant will include CO2 capture and
compression with transport of the CO2 off-site for geologic
sequestration through EOR. Specifically, the plant will have an air
separation unit, a coal gasification system (with two operating
gasifiers), a syngas cleanup system, a mercury (Hg) removal filter, an
acid gas scrubber (for sulfur species and CO2), a
CO2 compressor system, a sulfuric acid
(H2SO4) production plant, a gas turbine-
generator, a heat recovery steam generator (HRSG), a steam turbine-
generator, and a urea production plant. The linear facilities will
convey the outputs and inputs of the polygen plant to and from existing
infrastructure.
Summit's TCEP will generate up to 400 megawatts (MW), of which 130
to 213 MW (approximately 1.0 to 1.7 billion net kilowatt-hours of
electricity per year) will be available to the electricity grid. In
addition, the plant will be designed to capture, as CO2, 90
percent or more of the total carbon in the fossil fuels used by the
plant under typical operating conditions. Summit will capture up to 3
million tons (2.7 million metric tonnes) of CO2 annually.
Approximately 2.5 to 3.0 million tons (2.3 to 2.7 million metric
tonnes) of the captured CO2 will be sold under commercial
contracts and subsequently injected into partially depleted oil
reservoirs where it will be used to extract more oil. In addition, the
plant will produce urea for sale as fertilizer. Products from the
gasification process (argon, H2SO4, and inert
slag) will also be sold on the commercial market.
Summit received a financial assistance award in Round 3 of DOE's
CCPI program and qualified for
[[Page 60482]]
investment tax credits under Internal Revenue Code (IRC) section 48A,
Qualifying Advanced Coal Project. Summit intends to seek tax credits
under IRC section 45Q, Credit for Carbon Dioxide Sequestration.
However, most of TCEP's funding will consist of owner-invested equity
and debt obtained in private capital markets.
DOE's Proposed Action
DOE's Proposed Action, as described in the EIS, is to provide a
total of approximately $450 million in financial assistance for
Summit's TCEP through a cooperative agreement. The financial assistance
would be provided on a cost-share basis for the planning, design,
construction, and demonstration-phase testing and operation of the
project. Under the terms of the agreement, DOE has already made
available approximately $48 million on a cost-share basis for the
project's definition phase, which includes completion of the NEPA
process.
Alternatives
The Congress directed DOE to pursue the goals of the CCPI by
providing financial assistance to projects owned by non-Federal
sponsors and using coal for at least 75 percent of the project's fuel
requirement. This approach places DOE in a much more limited role than
if it were the owner and operator of the project. Here, the purpose and
need for DOE action is defined by the CCPI program and the ARRA. Given
that CCPI's programmatic purposes and needs are defined by legislation,
the reasonable alternatives available to DOE, prior to selection of
this project, were the other projects submitted for DOE's consideration
in response to the FOA and that were determined to be responsive to the
FOA's requirements. All projects that were deemed responsive to the FOA
were analyzed in an environmental critique pursuant to 10 CFR 1021.216,
which establishes a specific NEPA process for competitive awards of
financial assistance and contracts. A synopsis of the environmental
critique is included in Appendix B of the EIS.
After DOE selects a project, the reasonable alternatives become:
(1) The project as proposed by the applicant, (2) alternatives or
options still under consideration by the applicant or that are within
reasonable confines of the project as proposed (e.g., the particular
location of the plant on the parcel of land proposed for the project),
and (3) the ``no action'' alternative.
DOE issued the FOA for CCPI Round 3 in August 2008, and reopened it
in June 2009 in response to the addition of ARRA funding to the CCPI
program. Private sector participants submitted 38 proposals in response
to the reopened solicitation. After an initial screening removed from
further consideration those proposals that failed to meet the
eligibility requirements, the remaining 25 responsive proposals were
subjected to environmental review and consideration (during the
selection process) in accordance with 10 CFR 1021.216. From these 25
proposals DOE selected three proposals representing diverse
technologies and using a variety of coals to further the goals of the
CCPI program. DOE selected the TCEP under the reopening of Round 3
because it would demonstrate IGCC power generation integrated with
chemical production and CO2 capture technologies in a
commercial project.
Summit chose the site for its TCEP based on a selection process
that it had completed prior to applying for DOE's financial assistance.
Because of its desire to integrate IGCC technology with CO2
capture, Summit focused its site selection efforts in Texas, which has
both a regional market for CO2 for use in EOR and existing
infrastructure for transporting CO2 to oil fields. Summit
considered several sites in Texas, including Corpus Christi, Oak Grove,
Big Brown, and two sites--Jewett and Odessa--that had been considered
for DOE's FutureGen project. Summit ultimately selected the Odessa site
primarily because of its proximity to an existing CO2
pipeline and multiple oil fields where EOR is or may be used. The
Odessa site also has close access to rail, natural gas, transmission
lines, and sources of water, which the other sites lacked in varying
degrees. The Odessa site enjoys significant community support for the
TCEP.
Under the proposed action alternative, DOE assessed the potential
environmental impacts associated with alternative water supplies,
alternative routes for linear facilities, and options for certain plant
sub-systems (e.g., evaporation ponds versus deep well injection of
reject water from the desalination of supply water) as described in the
EIS. In identifying alternative routes for linear facilities, Summit
considered selection factors such as using or paralleling existing
rights of ways and avoiding developed areas and sensitive areas. In the
EIS, DOE reviewed the potential environmental impacts of these various
project alternatives still under consideration by Summit with the goal
of deciding for each of Summit's alternatives whether any adverse
consequences might be sufficiently objectionable that DOE would
disallow the usage of that alternative in the TCEP as a condition for
DOE's financial assistance.
No-Action Alternative
Under the No-Action Alternative, DOE would not share in the cost
for detailed design, construction and a three-year demonstration phase
of the TCEP. For purposes of analysis in the EIS, DOE considered the
``no-action'' alternative to be the same as the ``no-build''
alternative.
In the absence of financial assistance from DOE, Summit might
choose to construct and operate the TCEP if it could obtain sufficient
private financing. However, DOE believes this option is unlikely,
because of the financial risks and costs of deploying a new power
plant, especially one with IGCC technology integrated with
CO2 capture and sequestration. Without DOE participation, it
is likely that the proposed project would not be built, environmental
resources would remain in their current condition, and none of the
impacts associated with the project would occur, whether adverse or
beneficial (i.e., no new construction, jobs, marketable products,
resource use, land-use alterations, emissions, discharges, or wastes).
If the project were canceled, the proposed technologies of the TCEP
(e.g., commercial-scale IGCC integrated with CO2 capture and
geologic storage of CO2 using EOR; the manufacture of urea
from gasified coal) may not be implemented in the near term.
Consequently, commercialization of these technologies may be delayed or
may not occur because utilities and industries tend to use known and
demonstrated technologies rather than new technologies. The no action
alternative would not contribute to CCPI's goals of accelerating the
commercial readiness of advanced multi-pollutant emissions control;
improving combustion, gasification, and efficiency technologies; and
demonstrating advanced coal-based technologies that capture and
sequester CO2 emissions.
Potential Environmental Impacts
In making its decision to provide continued financial assistance to
the TCEP, DOE considered the environmental impacts of the proposed
project and no-action alternative on affected resources. These include
air quality and greenhouse gas emissions; climate; soils, geology, and
mineral resources; ground water; surface water, floodplains and
wetlands; biological resources; aesthetics; cultural resources; land
use; socioeconomics and
[[Page 60483]]
community services; environmental justice; utility services;
transportation; materials and waste management; human health, safety,
and accidents; and noise and vibration. The EIS also examined potential
incremental impacts of the TCEP in combination with other past,
present, and reasonably foreseeable actions (i.e., cumulative impacts).
The following sections summarize the environmental impacts and
mitigation measures described and analyzed in the Final EIS.
Air Quality
The TCEP will be categorized as a major source of air pollutants
under Clean Air Act regulations because emissions of some criteria
pollutants (NO2, SO2, CO, PM10, and
PM2.5) will exceed 100 tons per year. Construction-related
and operational emissions would not cause air quality to exceed either
the Prevention of Significant Deterioration (PSD) increments or the
National Ambient Air Quality Standards (NAAQS). However, ambient air
concentrations of criteria pollutants could increase between 9 percent
and 200 percent at the point of maximum ground level impact under
certain weather conditions during plant operations. While the TCEP will
capture for beneficial use at least 90 percent of the carbon as
CO2 in its fuels, annual emissions of CO2 from
the TCEP will reach 300,000 tons per year, and these emissions will
contribute to global atmospheric concentrations of CO2.
Plant-wide emissions of hazardous air pollutants will not exceed
either the individual pollutant threshold (10 tons per year) or the
combined pollutant threshold (25 tons per year). Maximum predicted
concentrations for all identified compounds that could have a negative
impact to human health were found to be below their respective effects
screening limits for general public exposure, except for short-term
exposures to coal dust on the plant site (which will not exceed
industrial exposure criteria).
Although air quality impacts will be small, the TCEP will reduce
emissions and impacts to the fullest extent practicable. As a condition
of its decision, DOE requires reports on air emissions from the TCEP
(see Mitigation).
Climate
Construction and operation of the TCEP will not cause measurable
impacts on local, regional or global climate and meteorology. However,
operations of the TCEP will contribute greenhouse gas emissions to the
atmosphere. Annual emissions of CO2 from the TCEP operations
will range up to 300,000 tons per year, and these emissions will
contribute to global atmospheric concentrations of CO2.
Small amounts of methane and other organic compounds (the TCEQ-issued
air emissions permit limit equals 39.6 tons per year) will be emitted
and will contribute to greenhouse gas effects.
The TCEP is designed to reduce its emissions of greenhouse gases
(and precursors) to levels that are much lower than conventional power
plants of equivalent gross generating capacity and lower than other
advanced clean coal power plants that have been constructed and
operated. DOE requires as a condition of its decisions that the TCEP be
designed and constructed to capture at least 90 percent of the carbon
in its fossil fuels (see Mitigation).
Soils, Geology and Mineral Resources
Soils will be disturbed as areas are prepared for construction.
Disturbed soils will be protected from erosion and will be re-planted
where practicable. Disturbance at the plant site will result in
permanent removal or displacement of soils on up to 600 acres. Soil
disturbance in utility corridors is expected to be temporary and will
vary greatly depending on the options and routes selected, ranging from
132 to 1,032 acres (53.4 and 417.7 hectares) (assuming that the
permanent rights-of-ways but not the temporary rights-of-ways will be
fully disturbed). New transportation corridors connecting to the power
plant site could require between 25.3 and 39.0 acres (10.2 and 15.8
hectares) of soil disturbance.
The CO2 from the TCEP will be sold to ongoing EOR
operations in the Permian Basin. This use of CO2 in the
basin is a well-established process that will serve as final
sequestration for the CO2 captured at the TCEP. Capture and
sale of CO2 from the polygen plant will promote the recovery
of oil and gas in the Permian Basin, where average additional oil
production is approximately 1.86 barrels of oil per ton of
CO2 injected. As a tertiary method of EOR, CO2
floods help oil field operators recover another 8 to 16 percent of the
original quantity of oil in the reservoir.
Because oil and gas are withdrawn from oil reservoirs as
CO2 is injected, fluid pressures within the reservoir would
not be expected to build up to levels that would represent a
substantial risk of seismic activity, displacement of native fluids
into overlying strata, or migration of injected CO2 into
other strata. Abandoned oil wells typically present the most likely
leakage routes in old oil fields, and these leaks can usually be
identified and plugged. Over the long term, injected CO2
would be trapped in the reservoirs that had previously trapped oil and
natural gas through many millions of years. DOE requires as a condition
of its decision that Summit monitor and verify the sequestration of
TCEP's injected CO2 (see Mitigation).
Ground Water
Supplies of non-potable (brackish or saline) ground water appear
more than adequate in the region to meet TCEP's consumption rates for
process (industrial) water. Although no adverse impacts are expected to
occur if non-potable ground water is used, water conservation and use
of a dry cooling system have been included as an integral part of the
plant to minimize the potential for water supply impacts to the fullest
extent practicable.
Aside from meeting the TCEP's needs for process water, Summit is
considering installation of an on-site well into the Dockum Aquifer to
serve the plant's potable water needs. Operational demand will be
approximately 4,500 gal (17,034 L) per day based on approximately 150
workers on-site. In Ector County, the quality of the Dockum Aquifer
ranges from fresh to brackish. Although irrigation and public supply
use is limited in Ector County, at least one resident in the adjacent
community of Penwell currently relies on water from the same aquifer
for residential and small-scale commercial use. Potential water quality
effects on this adjacent well user will be estimated through testing of
a newly drilled well on-site, if this option is further investigated
for its potential to supply potable water to the TCEP.
The TCEP could affect ground water in several ways: (1) Project
consumption from underground sources of drinking water, (2)
displacement of fluids into underground sources of drinking water, (3)
contamination due to spills, leaks, releases or leaching during
construction and operations, and (4) diminished recharge due to
alterations of the ground surface.
The consumption of potable water from ground water aquifers would
constitute a significant impact if the TCEP were to use such sources
for primary supply of process water. From the beginning, project
planners were aware of the potential harms in using potable water for
the plant's process water needs, so this type of water supply was
disfavored.
The Edwards-Trinity (Plateau) Aquifer was considered as one of the
options for water supply, using an existing well field located near the
town
[[Page 60484]]
of Fort Stockton, Texas. This well field yields water of marginal
quality for human consumption and the water would benefit from
desalination to improve its acceptance for drinking water. Currently
water from this field is being used for agricultural irrigation. The
proposed Fort Stockton Holdings waterline would divert water currently
used for irrigation to the cities of Midland and Odessa where it could
be used for potable water supply.
If the Fort Stockton Holdings waterline were built, the TCEP could
use approximately 10 percent of its capacity. Because no additional
ground water would be withdrawn from the aquifer (beyond the current
rate of pumping for agricultural irrigation) and because very little of
the water currently used for irrigation recharges the Edwards-Trinity
Aquifer, Fort Stockton Holdings' proposed waterline project, and TCEP's
use of 10 percent of the waterline's capacity, would have no additional
impact on the aquifer. The proposed Fort Stockton Holdings waterline is
highly controversial and has been unable to obtain needed permits and
approvals. Therefore, it is unlikely that this waterline would be built
in time for the TCEP to use it as a primary water supply. DOE requires
as a condition of its decision that the Fort Stockton Holdings water
line not be used as a primary source of water (see Mitigation).
The Capitan Reef Complex Aquifer is a minor aquifer in West Texas
that is approximately 25 miles to the west of the plant site. Summit
proposed this aquifer as an option for the process water source. The
aquifer generally contains poor quality water. Most of the ground water
pumped from this aquifer in Texas is used for secondary oil recovery. A
small amount is used for irrigation of salt-tolerant crops. Over the
last 70 years, water levels in the aquifer have declined in some areas.
The Oxy Permian pipeline system distributes brackish ground water from
the Capitan Reef formation to water flood projects in the Permian
Basin. The closest source of Oxy Permian water to the polygen plant
site is a group of ground water wells near the town of Kermit, Texas.
The Oxy Permian system is not used at its full capacity, and demand
for water for use in secondary oil recovery has been slowly declining.
Because the amount of water pumped for the Oxy Permian pipeline has
steadily decreased, the impacts of additional pumping for use as TCEP
process water would be small. Usage of this water supply option would
require the installation and use of a substantial desalination system
at the TCEP plant site, with disposal of a substantial volume of
desalination reject water (brine).
Summit also considered the Pecos Alluvium Aquifer in response to a
suggestion submitted during the public comment period on the Draft EIS.
This aquifer is of major regional importance and has been widely used
for irrigation. In central Ward County, it is also used for municipal
and industrial purposes. Production rates greatly exceed recharge rates
and aquifer drawdown has approached 200 feet (61 meters) in some areas.
The aquifer is also highly variable in production quality and quantity.
If TCEP were to use this option, impacts to the aquifer's water quality
and quantity would likely be significant within the region of the
drawdown.
If deep injection wells are used for the disposal of waste water
(whether brine water or industrial waste water), its injection could
displace native fluids upward into underground sources of drinking
water. The area of risk would be around the injection wells where fluid
pressures could increase significantly in response to the injection.
The extent of this area would be estimated after a test well is drilled
by Summit to gather hydrologic information on each of the likely
injection targets. If Summit chooses this option, DOE requires
monitoring of changes in water quality in the deepest underground
source of drinking water above the injection site (see Mitigation).
If additional municipal waste water, after treatment, would be
disposed of into Monahans Draw as a result of the TCEP, there would be
only a small risk of increased contamination of ground water beneath
the draw. Permit limits on total dissolved solids (salinity) in water
discharged into the draw will not be increased, but the volume of waste
water discharged and salt loading could increase. DOE requires a limit
on TCEP-related waste water discharges and salt loading to Monahan's
Draw (see Mitigation).
Surface Water, Floodplains and Wetlands
At the TCEP site and along access roads, no surface water
resources, floodplains, or wetlands are present and, therefore, no
direct impacts to them are expected. Floodplains and wetland areas have
been identified within pipeline corridors, with the following amounts
of wetlands being subject to disturbance: WL1, up to 2.53 acres (1.0
hectares); WL3, up to 0.86 acres (0.35 hectares); and WL5, up to 1.29
acres (0.52 hectares). The options for installation of pipelines
beneath wetlands and water bodies are trenching and directional
drilling. The choice of installation technique would be made by Summit
on a case-by-case basis after more information is gathered at each
location. After construction is complete, pipelines will not further
impact floodplains. For transmission lines, structures could be sited
to avoid wetlands along these routes. Construction activities in
corridors that have water bodies (WL1, WL3 and WL5) are likely to
result in short-term, construction-related impacts such as increased
turbidity, sedimentation, streambed disturbance, and stream-bank
vegetation removal.
Under one option for primary supply of process water, municipal
waste water from Midland would be processed through primary and
secondary treatment by the Gulf Coast Authority's (GCA's) plant and
then processed through micro-filtration or ultra-filtration devices
before being piped to the TCEP for use. If this option is chosen by
Summit, there would be an increase in effluent discharge to Monahans
Draw from the GCA outfall as a result of accepting more waste water, on
most days, than is required for the TCEP and as a result of disposal of
the reject water. The draw would be dry most of the time if not for the
discharges of treated municipal and industrial waste water that
maintain ponds and wetlands on portions of the draw. The wetlands,
although small, are among the largest and best in the area and are used
by a variety of birds and other wildlife. The potential increase in
GCA's discharge to Monahans Draw (1) would not contribute significantly
to flooding events in downstream low-lying areas, (2) would make a
small contribution to the existing salt loading in the draw, and (3)
would further support and may slightly expand wetlands within the draw.
If Summit chooses the option to use Midland's municipal waste
water, the forecasted average increase of 0.75-million gallons per day
(2.8-million Liters/day) in GCA's discharge to Monahans Draw would
represent a 27 percent increase over the current average discharge from
the GCA outfall and may cause a small increase in the downstream extent
of stream flow along the draw during dry periods and in the downstream
extent of wetlands. Neither the average per day increase in GCA's
effluent discharge, nor the infrequent full release of waste water
received from Midland (6 million gallons per day) would represent a
significant impact to flood flow volume, flood elevations, or flooding
frequency in the downstream areas along Monahans Draw.
[[Page 60485]]
The increase in concentration of total dissolved solids in GCA's
discharges would be negligible (dissolved salts would pass through the
micro filtration or ultra filtration devices). However, if Summit
chooses to use Midland's municipal waste water, there would be a small
contribution to the existing salt loading in the draw because of the
increase in the quantity of effluent.
Biological Resources
Land disturbance and usage at the TCEP site will result in the
permanent loss of up to 600 acres (243 hectares) of the mesquite shrub
and grassland vegetation community and associated habitat functions.
Construction activities could result in the death of slow-moving
terrestrial species not able to escape the path of construction
equipment. Noise associated with construction could result in wildlife
displacement and behavioral changes that could have minimal impacts on
reproductive success. Noise associated with plant operations will have
negligible long-term effects on wildlife, because the wildlife will
become accustomed to it. Land at the plant site is suitable for the
Texas horned lizard (Phrynosoma cornutum) (state listed, threatened) as
well as 11 other state-listed rare species. DOE requires, as a
condition of its decision, measures to protect listed species (see
Mitigation).
Construction of the linear facilities will result in the permanent
removal of 132 to 1,032 acres (53 to 418 hectares) of mesquite shrub
and grassland community and associated habitat functions, based on the
smallest and largest combinations of the linear facility options. An
additional 246 to 949 acres (100 to 384 hectares) of habitat could be
temporarily removed or disturbed during construction. Impacts to
terrestrial species will be similar to those described above. DOE
requires, as a condition of its decision, measures to protect listed
species (see Mitigation).
At the polygen plant site up to 600 acres (243 hectares) of
suitable habitat for scrubland-nesting migratory birds and their nests
will be permanently removed. Introduced species (European starlings and
house sparrows) commonly associated with development activities (e.g.,
maintained landscaping, open trash receptacles) could encroach on the
plant site and displace or out-compete native songbird species.
Migratory birds could experience noise-related impacts. Additional
habitat loss for migratory birds will occur from the construction and
operation of the linear facilities. Furthermore, disturbance from
access road construction and use could displace migratory birds from
areas adjacent to these. Bird and bat mortalities due to collisions
with transmission lines will also occur. DOE requires, as a condition
of its decision, minimization of impacts to migratory birds (see
Mitigation).
If Summit chooses to use solar evaporation ponds for the disposal
of waste water, the ponds could attract waterfowl to them thereby
exposing the birds to concentrated brine water, which could cause salt
toxicosis and salt encrustation of feathers leading to bird deaths.
Covering ponds with netting would be one option for deterring birds
from contacting the brines. Others options exist for deterring birds,
and these would be considered when Summit prepares a bird deterrence
plan (see Mitigation).
Aesthetics
Visual impacts caused by the polygen plant were evaluated from a
number of key observation points in the area. The plant, as viewed from
most locations (including the Monahans Sandhills State Park) will have
only minor impacts on the view shed. The view of the plant will be more
dramatic from the crest of the escarpment to the east, especially as
seen by motorists traveling west from Odessa on I-20.
During operations, the height and size of the plant structures and
coal storage pile will create moderate, adverse, direct impacts as
viewed from the crest of the escarpment to the east because of the
strong form, color, and line contrasts with the surrounding landscape.
Water vapor emitted from the cooling tower will increase the extent of
visual intrusion.
Adverse impacts to night sky conditions could occur during both
construction and operations due to the installation of high-intensity
lighting within and around the site. Light reflected upward will create
regionally visible light pollution and sky glow. Strobe lighting (if
required by the Federal Aviation Administration) on the top of the
taller plant structures will adversely affect night sky conditions by
imposing high-intensity flashing lights that will be regionally
visible.
Transmission line structures will adversely impact the view-shed
because of their height and intrusive vertical form contrasts with the
landscape and because they will be visible from major travel routes.
Because of existing power lines, however, they will not become a focus
of viewer attention.
Minor adverse impacts will occur during construction of pipelines
because equipment and trenches will be visible and because vegetation
will be cleared along rights-of-ways. Although pipelines will be
buried, long-term impacts to aesthetics will occur because rights-of-
ways will be maintained clear of larger vegetation.
Cultural Resources
Construction and operation of the TCEP are not anticipated to
impact significant cultural resources; however, utility corridors have
not been thoroughly investigated and could have resources that deserve
protection. Near the plant site one historical complex or set of
buildings, the Rhodes Welding Complex, is considered eligible for the
National Register of Historic Places (NRHP). Changes to the setting
will not affect its NRHP eligibility. DOE requires, as a condition of
its decision, cultural resource surveys to be completed for options and
linear facility routes tentatively chosen by Summit (see Mitigation).
Land Use
The plant site is currently used for ranching and oil and gas
production, and these will be displaced on the 600-acre plant site by
the TCEP. Existing subsurface rights will continue to be available for
exploration and production of oil and gas. Operation of the polygen
plant will not be incompatible with most of the surrounding land uses.
However, the project will directly affect at least one and perhaps
other nearby residential units in the mostly abandoned community of
Penwell.
For the linear facilities, existing land uses will be briefly and
temporarily affected by construction. During operations, impacts to
land use will be limited to the rights-of-way. The rights-of-way land
requirements vary by facility type, and the associated impacts will
last for at least the life of the utilities. The linear facilities will
be consistent with the intent of the zoning districts through which
they pass. Generally, existing land uses will be expected to continue
after the linear facilities are constructed.
Socioeconomics and Community Services
Impacts to local and regional population during construction will
be minor because most workers will commute from nearby communities.
Impacts to population during operations will be negligible because most
of the 150 permanent workers will come from the local population,
although some may come from outside the area. Existing housing and
hotel supply will be adequate to meet demands during operations and
most of the construction phase. Because TCEP workers will come
primarily from the existing nearby
[[Page 60486]]
populations, no changes are anticipated in the demand for law
enforcement, emergency response, health services, schools, and
recreational opportunities in the region.
During most of the construction, GDP in the region of influence
(Ector, Midland, Crane and Ward Counties) is estimated to increase by
more than 0.4 percent. During the final year of construction, it will
increase an estimated 0.67 percent. During operations, it will increase
by about 0.16 percent, representing a long-term and beneficial impact
for the region. Tax revenue from the TCEP will have a beneficial and
long-term impact to the region as revenue will be redistributed to
counties, which in turn will allocate and redistribute to local
communities.
Environmental Justice
Construction and operation of the proposed project are not
anticipated to have disproportionately high and adverse impacts on
minority or low-income populations in the area around the TCEP. Ector
County has a higher concentration of minority populations than the
state as a whole, and many areas of the county have higher
concentrations of low-income individuals and families. Minority and
low-income populations were not identified in the immediate vicinity of
the TCEP (e.g., region of influence for operational noise). Project
emissions are not expected to cause significant air quality impacts or
exceed regulatory thresholds. Impacts to surface and ground water
resources are not expected to be high. Construction-related traffic
congestion and traffic noise would temporarily increase significantly
in some road segments very near the plant site, but these impacts are
not expected to be disproportionate. Noise generated by operations and
construction of the project would be significant locally; however,
these impacts would not be disproportionate on environmental justice
populations.
In general, the project could disproportionally harm minority and
low-income communities in regard to housing availability (primarily
short-term housing, such as motels), utility rates, and safety issues
associated with increased traffic, but these impacts are not expected
to be high. Short-term beneficial impacts could include an increase in
employment opportunities and higher wages during construction.
Utility Service
To accommodate the electricity generated by the TCEP, there may be
a need for system upgrades associated with the electrical
interconnection to either the Electric Reliability Council of Texas
(ERCOT) grid or the Southwestern Power Pool (SPP) grid. The nature of
the upgrades will be further defined as interconnection studies are
completed. These upgrades could involve local installation of larger
conductors, new power transmission line segments, and upgrades of other
local system components.
Transportation
Several routes were considered as potential new access roads to the
polygen plant site. One route is directly from the community of
Penwell, linking FM 1601 to the plant site via an underpass beneath the
railroad at the southern border of the plant. The other routes are from
the east and northeast of the plant site, connecting either to FM 866
or an I-20 frontage road.
During the period of plant construction, local traffic will
increase as a function of the employment levels at the plant site.
Delays associated with merging traffic and increased percent of time
spent following slow vehicles will affect the level of service (LOS) of
each road to which a plant site access road may be connected.
Construction activities will result in temporary localized traffic
delays, and most impacts will occur during shift changes.
During TCEP operations, there will be an average of four additional
150-car unit-trains per week along the railroad (Union Pacific),
amounting to a 3 percent increase over the existing rail traffic on
this line. Under the peak urea production option, there would be an
average of approximately six additional 150-car unit-trains per week
along the railroad, amounting to a five percent increase in rail
traffic. Neither option represents an increase that would exceed system
capacity nor cause delay to existing railway operations. Because the
loading and unloading of TCEP-related materials will occur on the
railroad spur, no impacts to the railroad will occur.
Materials and Waste Management
No impacts will occur from the management of construction
materials. Furthermore, no impacts will occur to the supply of
construction materials as a result of the demand from the project.
Operations materials will include coal, natural gas, process water,
process chemicals, and commercially marketable products. No impacts
from the management of these materials are expected. Plans for
delivery, handling, and storage of operations materials will be in
place before operations begin.
Human Health, Safety, and Accidents
During construction, Summit will follow established procedures to
provide a safe and healthy environment for workers, contractors,
visitors, and the community. Based on industry workplace hazard
statistics, the TCEP construction workforce could experience 91.65
nonfatal, recordable incidents and 48.75 lost workdays. Statistics
suggest that fatalities are unlikely (0.19 fatality) during the three-
year construction period.
Design features and safety programs will be established by Summit
to minimize hazards during operations of the TCEP and linear
facilities. Based on industry workplace hazard statistics, over the
life of the project the TCEP operations workforce could experience 158
recordable incidents, 122 lost workdays, and less than one fatality.
Adverse impacts to human health and safety, although unlikely,
could result from various types of accidents or acts of sabotage and
terrorism, ranging from small pipeline leaks to, in an extremely
unlikely case, an explosion at the polygen plant. The greatest risks to
human health and safety are associated with sudden, unconstrained
releases of toxic gases, such as ammonia (NH3) and hydrogen
sulfide (H2S). Exposure modeling of unmitigated releases
using worst-case atmospheric conditions was used to evaluate the risks
of various levels of harm. These analyses were made assuming no
mitigations are used; therefore, these risks can be reduced with the
appropriate measures, such as planning, design and engineering
controls. While the probability of intentional acts like sabotage and
terrorism cannot be easily predicted, the consequences could be similar
to the accidents analyzed in the risk assessment.
During operations of the polygen plant, the risk of someone being
killed by exposure to a toxic gas in the event of a release would vary
depending on his location relative to the release. The risk per year
ranges from one in 1,000 to one in 100,000,000 of being killed in the
project area. Toxic substance hazards are dominated by the potential
releases of ammonia gas from the pipeline leading from the ammonia
synthesis unit to the urea synthesis plant, or through ammonia
production or storage processes. Risks are greatest to those workers
closest to the ammonia synthesis unit.
Noise and Vibration
During construction, equipment noise will be perceptible outdoors
at the Penwell receptor locations north of I-
[[Page 60487]]
20; however, people south of I-20 will likely not hear a substantial
increase in noise owing to existing noise from vehicles on I-20.
Intermittent increases in noise will result from steam venting prior to
and during plant startup and commissioning. Although this venting will
briefly exceed acceptable Federal Transit Administration (FTA) le