Issuance of a Loan Guarantee to Abengoa Bioenergy Biomass of Kansas, LLC for the Abengoa Biorefinery Project Near Hugoton, Stevens County, KS, 62050-62052 [2011-25857]
Download as PDF
<![CDATA[
mstockstill on DSK4VPTVN1PROD with NOTICES
62050
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
11–109–LNG. DOE/FE suggests that
electronic filers carefully review
information provided in their
submissions and include only
information that is intended to be
publicly disclosed; (2) e-mailing the
filing to fergas@hq.doe.gov with FE
Docket No. 11–109–LNG in the title
line; (3) mailing an original and three
paper copies of the filing to the Office
Natural Gas Regulatory Activities at the
address listed in ADDRESSES; or (4) hand
delivering an original and three paper
copies of the filing to the Office of
Natural Gas Regulatory Activities at the
address listed in ADDRESSES.
A decisional record on the
Application will be developed through
responses to this notice by parties,
including the parties’ written comments
and replies thereto. Additional
procedures will be used as necessary to
achieve a complete understanding of the
facts and issues. A party seeking
intervention may request that additional
procedures be provided, such as
additional written comments, an oral
presentation, a conference, or trial-type
hearing. Any request to file additional
written comments should explain why
they are necessary. Any request for an
oral presentation should identify the
substantial question of fact, law, or
policy at issue, show that it is material
and relevant to a decision in the
proceeding, and demonstrate why an
oral presentation is needed. Any request
for a conference should demonstrate
why the conference would materially
advance the proceeding. Any request for
a trial-type hearing must show that there
are factual issues genuinely in dispute
that are relevant and material to a
decision and that a trial-type hearing is
necessary for a full and true disclosure
of the facts.
If an additional procedure is
scheduled, notice will be provided to all
parties. If no party requests additional
procedures, a final Opinion and Order
may be issued based on the official
record, including the Application and
responses filed by parties pursuant to
this notice, in accordance with 10 CFR
590.316.
The Application filed by
ConocoPhillips is available for
inspection and copying in the Office of
Natural Gas Regulatory Activities docket
room, Room 3E–042, 1000
Independence Avenue, SW.,
Washington, DC 20585. The docket
room is open between the hours of 8
a.m. and 4:30 p.m., Monday through
Friday, except Federal holidays. The
Application and any filed protests,
motions to intervene or notice of
interventions, and comments will also
be available electronically by going to
VerDate Mar<15>2010
16:07 Oct 05, 2011
Jkt 226001
the following DOE/FE Web address:
https://www.fe.doe.gov/programs/
gasregulation/. In addition,
any electronic comments filed will also
be available at: https://
www.regulations.gov.
Issued in Washington, DC, on September
30, 2011.
John A. Anderson,
Manager, Natural Gas Regulatory Activities,
Office of Oil and Gas Global Security and
Supply, Office of Fossil Energy.
[FR Doc. 2011–25887 Filed 10–5–11; 8:45 am]
BILLING CODE 6450–01–P
Issued at Washington, DC, on September
30, 2011.
Carol A. Matthews,
Committee Management Officer.
[FR Doc. 2011–25888 Filed 10–5–11; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Issuance of a Loan Guarantee to
Abengoa Bioenergy Biomass of
Kansas, LLC for the Abengoa
Biorefinery Project Near Hugoton,
Stevens County, KS
U.S. Department of Energy,
Loan Programs Office.
ACTION: Record of decision.
AGENCY:
DEPARTMENT OF ENERGY
DOE/NSF Nuclear Science Advisory
Committee
AGENCY:
Department of Energy, Office of
Science.
ACTION:
Notice of renewal.
Pursuant to Section
14(a)(2)(A) of the Federal Advisory
Committee Act (Pub. L. 92–463), and in
accordance with Title 41 of the Code of
Federal Regulations, Section 102–
3.65(a), and following consultation with
the Committee Management Secretariat,
General Services Administration, notice
is hereby given that the DOE/NSF
Nuclear Science Advisory Committee
(NSAC) will be renewed for a two-year
period beginning on September 30,
2011.
The Committee will provide advice to
the Director, Office of Science
(Department of Energy), and the
Assistant Director, Directorate for
Mathematical and Physical Sciences
(National Science Foundation), on
scientific priorities within the field of
basic nuclear science research.
Additionally, the renewal of the
NSAC has been determined to be
essential to conduct business of the
Department of Energy and the National
Science Foundation and to be in the
public interest in connection with the
performance of duties imposed upon the
Department of Energy, by law and
agreement. The Committee will
continue to operate in accordance with
the provisions of the Federal Advisory
Committee Act, and the rules and
regulations in implementation of that
Act.
SUMMARY:
Dr.
Timothy Hallman, Designated Federal
Officer, at (301) 903–3613.
FOR FURTHER INFORMATION CONTACT:
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
The U.S. Department of
Energy (DOE) announces its decision to
issue a $134 million loan guarantee
under Title XVII of the Energy Policy
Act of 2005 (EPAct 2005) to Abengoa
Bioenergy Biomass of Kansas, LLC
(Abengoa) for construction and start-up
of a cellulosic ethanol plant near
Hugoton, Kansas (Project). The
integrated biorefinery will use a
combination of biomass feedstocks,
such as corn stover and wheat straw, to
produce cellulosic ethanol and to
generate sufficient electricity to power
the facility. The Project site comprises
approximately 810 acres of row-cropped
agricultural land. The biorefinery
facilities will be developed on 385 acres
and the remaining 425 acres will
continue in agricultural use and act as
a buffer area between the biorefinery
and the Hugoton city limits. The
environmental impacts of the
construction and operation of this
project were analyzed pursuant to the
National Environmental Policy Act
(NEPA) in the Final Environmental
Impact Statement for the Proposed
Abengoa Biorefinery Project near
Hugoton, Stevens County, Kansas (DOE/
EIS–0407F) (Final EIS) (August 2010)
and in an associated Supplement
Analysis (DOE/EIS–0407/SA–1; July
2011), prepared by the DOE Office of
Energy Efficiency and Renewable
Energy (EERE) Golden Field Office. DOE
published a Record of Decision (ROD)
on January 12, 2011 (76 FR 2096) to
provide Federal funding under Section
932 of EPAct 2005 to Abengoa for the
Project. The project for which DOE
earlier provided funding under Section
932, with some modifications, is the
same project for which DOE is now
making a decision to issue a loan
guarantee under Title XVII of EPAct
2005. DOE Loan Programs Office
determined that the project analyzed in
the Final EIS and Supplement Analysis
SUMMARY:
E:\FR\FM\06OCN1.SGM
06OCN1
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
encompasses all activities covered by
the loan guarantee.
ADDRESSES: Copies of this ROD and the
Final EIS may be obtained by contacting
Sharon Thomas, NEPA Document
Manager, Environmental Compliance
Division, Loan Programs Office (LP–10),
U.S. Department of Energy, 1000
Independence Avenue, SW.,
Washington, DC 20585; telephone 202–
586–5335; or e-mail
Sharon.R.Thomas@hq.doe.gov, or by
accessing these documents on the DOE
NEPA Web site at https://energy.gov/
nepa and on the Loan Programs Web
site at https://
www.loanprograms.energy.gov.
For
further information about this ROD,
contact Sharon Thomasmailto:, as
indicated in the ADDRESSES section
above. For general information about the
DOE NEPA process, contact Carol
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; leave a message at 800–472–
2756; or e-mail askNEPA@hq.doe.gov.
Information about DOE NEPA activities
and access to DOE NEPA documents are
available through the DOE NEPA Web
site at https://energy.gov/nepa.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
mstockstill on DSK4VPTVN1PROD with NOTICES
Background
The Abengoa Project will be
constructed on a 385-acre parcel near
Hugoton, Kansas. Abengoa has optioned
an additional 425 acres immediately
east of the biorefinery parcel, between
the biorefinery and the Hugoton city
limits, as a buffer area. The planned
usage of the optioned parcel would be
to continue its use as irrigated
agricultural land, to test production of
biomass feedstocks, and for biomass
storage. The biomass-to-ethanol and
cogeneration facility proposed by
Abengoa would use lignocellulosic
biomass (biomass) as feedstock to
produce biofuels and electricity.
Biomass, including corn stover, wheat
straw, milo stubble, mixed warm season
grasses (such as switchgrass), and other
available materials, would be harvested
as feedstock and fermented to produce
ethanol and potentially lignin. The
biorefinery’s cogeneration facility would
also produce biopower, or bioenergy, in
the form of electricity. The cogeneration
facility co-located at the site would use
direct-firing (that is, using the biomass
as a solid fuel in a biomass boiler) to
produce steam. Steam produced in the
biomass boiler would be used for
VerDate Mar<15>2010
16:07 Oct 05, 2011
Jkt 226001
facility processes and to produce
electricity.
Under Section 932 of EPAct 2005,
Congress directed DOE to carry out a
program to demonstrate the commercial
application of integrated biorefineries
for the production of biofuels, in
particular ethanol, from lignocellulosic
feedstocks. To implement its
responsibilities under Section 932, DOE
issued a funding opportunity
announcement in February 2006 for the
design, construction, and startup of
commercial-scale integrated
biorefineries. In February 2007, DOE
EERE selected Abengoa and five other
applicants for negotiation of award. In
December 2009, Abengoa applied for a
loan guarantee from the Department’s
Loan Programs Office pursuant to Title
XVII of EPAct 2005.
NEPA Review
In August 2008, DOE published in the
Federal Register its Notice of Intent to
Prepare an Environmental Impact
Statement and Notice of Wetlands
Involvement for the Abengoa Biorefinery
Project near Hugoton, KS (73 FR 50001),
starting a 45-day public scoping period
during which DOE held a public
scoping meeting in Hugoton, Kansas. In
April 2009, DOE re-opened public
scoping and published in the Federal
Register its Amended Notice of Intent to
Modify the Scope of the Environmental
Impact Statement for the Abengoa
Biorefinery Project near Hugoton, KS (74
FR 19543). The amended notice
informed the public about changes in
the Project relevant to the scope of the
ongoing EIS. DOE conducted a 30-day
public scoping period and held a second
public scoping meeting in Hugoton,
Kansas. On September 23, 2009, DOE
published in the Federal Register its
Notice of Availability for the Draft
Environmental Impact Statement for the
Abengoa Biorefinery Project Near
Hugoton, Stevens County, KS (DOE/EIS–
0407D) (74 FR 48525) (Draft EIS). On
September 25, 2009, the U.S.
Environmental Protection Agency (EPA)
listed the Draft EIS in its weekly notice
of availability (74 FR 48951).
DOE conducted a public hearing in
Hugoton during the 45-day public
comment period on the Draft EIS. DOE
prepared a comment-response chapter
for the Final EIS (Chapter 10) that
includes each public comment received
on the Draft EIS and DOE’s response.
DOE issued the Final EIS, and EPA
listed the Final EIS in its weekly notice
of availability on August 20, 2010 (75
FR 51458). DOE issued a ROD,
published on January 12, 2011 (76 FR
2096), to provide Federal funding under
Section 932 of EPAct 2005 to Abengoa
PO 00000
Frm 00017
Fmt 4703
Sfmt 4703
62051
for the Project (identified in the Final
EIS and ROD as the Proposed Action).
Since issuance of the ROD, Abengoa
has proposed a modification to the
Proposed Action. Under the original
Proposed Action, the biorefinery would
process approximately 2,500 dry short
tons per day of feedstock and produce
up to 19 million gallons of denatured
ethanol per year and 125 megawatts of
electricity, 75 of which would be sold
commercially. Under the Modified
Proposed Action, the biorefinery would
process approximately 1,000 dry short
tons per day of feedstock and produce
up to 25 million gallons of denatured
ethanol per year and 20 megawatts of
electricity for use at the facility, none of
which would be sold to the grid. In July
2011, pursuant to DOE NEPA
regulations (10 CFR 1021.314), DOE
issued a Supplement Analysis for the
Final Environmental Impact Statement
for the Proposed Abengoa Biorefinery
Project near Hugoton, Stevens County,
Kansas (DOE/EIS–0407/SA–1) that
examined the potential environmental
impacts of the Modified Proposed
Action and addressed whether they
were within the range of the potential
environmental impacts analyzed in the
Final EIS. Based on the Supplement
Analysis, DOE determined on July 7,
2011, that the Modified Proposed
Action would not constitute a
substantial change in actions previously
analyzed and would not present
significant new circumstances or
information relevant to the
environmental concerns and bearing on
the previously analyzed actions or
impacts, within the meaning of 40 CFR
1502.9(c) and 10 CFR 1021.314.
Accordingly, DOE determined that a
supplement to the FEIS was not
required. On August 19, 2011, DOE
announced its decision to offer a
conditional commitment to Abengoa to
provide a $134 million loan guarantee to
support the financing of the Project
(Modified Proposed Action).
Alternatives Considered
In the Final EIS, DOE considered
three alternatives, including the Project
as identified in the Final EIS as the
Proposed Action (selected by DOE in
the January 2011 ROD), an Action
Alternative, and the No Action
Alternative. These alternatives were
described in detail and fully analyzed in
the Final EIS.
The DOE decision to select the
Proposed Action (provide Federal
funding under Section 932 of EPAct
2005 for the Project) includes best
management practices and mitigation
measures identified in Chapter 6 of the
Final EIS, Best Management Practices
E:\FR\FM\06OCN1.SGM
06OCN1
62052
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
and Mitigation, and summarized in the
January 2011 ROD. These practices and
mitigation measures, and additional
mitigation measures identified in the
Supplement Analysis for the Modified
Proposed Action, will be implemented
for the Project. Mitigation measures
beyond those specified in permit
conditions will be addressed in a
mitigation action plan (MAP) that DOE
will prepare pursuant to 10 CFR
1021.331. The MAP and annual
monitoring reports will be available on
the DOE NEPA Web site (https://
energy.gov/nepa) and the DOE Golden
Field Office Web site (https://
www.eere.energy.gov/golden/
Reading_Room.aspx).
DOE’s decision in this ROD is
whether or not to issue a $134 million
loan guarantee to Abengoa to support
construction and start-up of the Project.
Accordingly, DOE’s alternatives are (1)
to issue a loan guarantee to Abengoa for
the Proposed Action alternative selected
in the January 2011 ROD and
subsequently modified (the Modified
Proposed Action described in the
Supplement Analysis), and (2) No
Action Alternative, i.e., no loan
guarantee.
mstockstill on DSK4VPTVN1PROD with NOTICES
Environmentally Preferred Alternative
Issuance of a loan guarantee for the
Project would result in both beneficial
and adverse potential environmental
impacts. Potential beneficial impacts
include those associated with
reductions in greenhouse gas emissions
and a decrease in water withdrawals;
adverse impacts include those
associated with a substantial increase in
transportation activity and minor
impacts from air emissions. On balance,
DOE regards the No Action Alternative,
which would result in no change in
existing environmental conditions, as
the environmentally preferred
alternative.
Decision
On January 12, 2011, DOE announced
the issuance of a ROD to provide
Federal funding under Section 932 of
EPAct 2005 to Abengoa for the Project.
DOE’s decision in this ROD is to select
alternative (1) identified above: To issue
a loan guarantee for construction and
start-up of the Project (the Modified
Proposed Action as described in the
Supplement Analysis). Under
alternative (2), the No Action
Alternative, DOE would not issue a loan
guarantee for the Project, and it is
unlikely that Abengoa would implement
the Project as currently planned. While
the direct and indirect environmental
impacts of the Project would be avoided
under the No Action Alternative, the
VerDate Mar<15>2010
16:07 Oct 05, 2011
Jkt 226001
benefits that would be gained from the
development, demonstration, and
commercial operation of an integrated
biorefinery that uses lignocellulosic
feedstocks would not be realized. In
addition, no benefits would be realized
from the reduction of air pollutants and
emissions of greenhouse gases by
displacing gasoline with biofuel.
Approval of the loan guarantee for the
Project meets DOE’s purpose and need
pursuant to Title XVII of EPAct 2005 (42
U.S.C. 16511–16514) for eligible
projects under Section 1703 of Title
XVII, which authorizes the Secretary of
Energy to make loan guarantees for
projects that (1) avoid, reduce, or
sequester air pollutants or
anthropogenic emissions of greenhouse
gases and (2) employ new or
significantly improved technologies as
compared to commercial technologies in
service in the United States at the time
the guarantee is issued. Issuance of loan
guarantees for projects under Section
1703 of Title XVII of EPAct 2005
facilitates the acceleration of the
commercialization of innovative,
environmentally-friendly technologies
that will have an impact on ensuring
clean, affordable, and reliable supplies
of energy. The purpose and need for
DOE’s loan guarantee action is to
comply with DOE’s mandate under Title
XVII of EPAct 2005 by selecting projects
that meet the goals of the Act.
In addition, the Project is also eligible
for a loan guarantee under Section 1705
of Title XVII (implemented pursuant to
Section 406 of the American Recovery
and Reinvestment Act of 2009 (ARRA)).
Eligible Section 1705 projects include
renewable energy projects and related
manufacturing facilities, electric power
transmission projects, and leading edge
biofuels projects. The primary purposes
of ARRA are job preservation and
creation, infrastructure investment,
energy efficiency and science, assistance
to the unemployed, and state and local
fiscal stabilization. Issuances of loan
guarantees for eligible projects under
Section 1705 are designed to address the
current economic conditions facing the
nation. To qualify under Section 1705,
projects must commence construction
by September 30, 2011.
Mitigation
This ROD incorporates all practicable
means to avoid or minimize
environmental harm. The Project that
will be supported by issuance of the
DOE loan guarantee includes all
mitigation conditions applied by DOE
for this Project in its Final EIS, January
2011 ROD, and Supplement Analysis. In
the Supplement Analysis, DOE
concluded that additional mitigation
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
measures are warranted to reduce
potential impacts from accidental
releases of anhydrous ammonia.
Mitigation measures beyond those
specified in permit conditions will be
addressed in a MAP that DOE will
prepare pursuant to 10 CFR 1021.331.
The MAP will explain how the
mitigation measures will be planned,
implemented, and monitored. DOE will
ensure that commitments in the ROD
are incorporated into DOE’s loan
guarantee agreement with Abengoa. The
MAP and annual monitoring reports
will be available on the DOE NEPA Web
site (https://energy.gov/nepa) and the
DOE Golden Field Office Web site
(https://www.eere.energy.gov/golden/
Reading_Room.aspx).
DOE’s loan guarantee agreements
require the applicant to comply with all
applicable laws and the MAP, including
mitigation measures contained therein.
An applicant’s failure to comply with
applicable laws and the MAP would
constitute a default. Upon the
continuance of a default, DOE would
have the right under the loan guarantee
agreement between it and the applicant
to exercise usual and customary
remedies. To ensure that the applicant
so performs, the DOE Loan Programs
Office proactively monitors all operative
loan guarantee transactions.
Issued in Washington, DC, on September
20, 2011.
Jonathan M. Silver,
Executive Director, Loan Programs Office.
[FR Doc. 2011–25857 Filed 10–5–11; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
Issuance of a Loan Guarantee to First
Solar, Inc., for the Desert Sunlight
Solar Farm Project
U.S. Department of Energy.
Record of decision.
AGENCY:
ACTION:
The U.S. Department of
Energy (DOE) announces its decision to
issue a loan guarantee under Title XVII
of the Energy Policy Act of 2005 (EPAct
2005) to First Solar, Inc., (First Solar) for
construction and start-up of the Desert
Sunlight Solar Farm Project (DSSFP or
the Project), a 550-megawatt (MW)
nominal capacity solar photovoltaic
power generating facility on
approximately 4,144 acres, all of which
is administered by the U.S. Department
of the Interior, Bureau of Land
Management (BLM), in Riverside
County, California. The potential
environmental impacts of constructing
and operating this project were analyzed
pursuant to the National Environmental
SUMMARY:
E:\FR\FM\06OCN1.SGM
06OCN1
]]>Agencies
[Federal Register Volume 76, Number 194 (Thursday, October 6, 2011)]
[Notices]
[Pages 62050-62052]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25857]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Issuance of a Loan Guarantee to Abengoa Bioenergy Biomass of
Kansas, LLC for the Abengoa Biorefinery Project Near Hugoton, Stevens
County, KS
AGENCY: U.S. Department of Energy, Loan Programs Office.
ACTION: Record of decision.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Energy (DOE) announces its decision to
issue a $134 million loan guarantee under Title XVII of the Energy
Policy Act of 2005 (EPAct 2005) to Abengoa Bioenergy Biomass of Kansas,
LLC (Abengoa) for construction and start-up of a cellulosic ethanol
plant near Hugoton, Kansas (Project). The integrated biorefinery will
use a combination of biomass feedstocks, such as corn stover and wheat
straw, to produce cellulosic ethanol and to generate sufficient
electricity to power the facility. The Project site comprises
approximately 810 acres of row-cropped agricultural land. The
biorefinery facilities will be developed on 385 acres and the remaining
425 acres will continue in agricultural use and act as a buffer area
between the biorefinery and the Hugoton city limits. The environmental
impacts of the construction and operation of this project were analyzed
pursuant to the National Environmental Policy Act (NEPA) in the Final
Environmental Impact Statement for the Proposed Abengoa Biorefinery
Project near Hugoton, Stevens County, Kansas (DOE/EIS-0407F) (Final
EIS) (August 2010) and in an associated Supplement Analysis (DOE/EIS-
0407/SA-1; July 2011), prepared by the DOE Office of Energy Efficiency
and Renewable Energy (EERE) Golden Field Office. DOE published a Record
of Decision (ROD) on January 12, 2011 (76 FR 2096) to provide Federal
funding under Section 932 of EPAct 2005 to Abengoa for the Project. The
project for which DOE earlier provided funding under Section 932, with
some modifications, is the same project for which DOE is now making a
decision to issue a loan guarantee under Title XVII of EPAct 2005. DOE
Loan Programs Office determined that the project analyzed in the Final
EIS and Supplement Analysis
[[Page 62051]]
encompasses all activities covered by the loan guarantee.
ADDRESSES: Copies of this ROD and the Final EIS may be obtained by
contacting Sharon Thomas, NEPA Document Manager, Environmental
Compliance Division, Loan Programs Office (LP-10), U.S. Department of
Energy, 1000 Independence Avenue, SW., Washington, DC 20585; telephone
202-586-5335; or e-mail Sharon.R.Thomas@hq.doe.gov, or by accessing
these documents on the DOE NEPA Web site at https://energy.gov/nepa and
on the Loan Programs Web site at https://www.loanprograms.energy.gov.
FOR FURTHER INFORMATION CONTACT: For further information about this
ROD, contact Sharon Thomasmailto:, as indicated in the ADDRESSES
section above. For general information about the DOE NEPA process,
contact Carol 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; leave a message at 800-
472-2756; or e-mail askNEPA@hq.doe.gov. Information about DOE NEPA
activities and access to DOE NEPA documents are available through the
DOE NEPA Web site at https://energy.gov/nepa.
SUPPLEMENTARY INFORMATION:
Background
The Abengoa Project will be constructed on a 385-acre parcel near
Hugoton, Kansas. Abengoa has optioned an additional 425 acres
immediately east of the biorefinery parcel, between the biorefinery and
the Hugoton city limits, as a buffer area. The planned usage of the
optioned parcel would be to continue its use as irrigated agricultural
land, to test production of biomass feedstocks, and for biomass
storage. The biomass-to-ethanol and cogeneration facility proposed by
Abengoa would use lignocellulosic biomass (biomass) as feedstock to
produce biofuels and electricity. Biomass, including corn stover, wheat
straw, milo stubble, mixed warm season grasses (such as switchgrass),
and other available materials, would be harvested as feedstock and
fermented to produce ethanol and potentially lignin. The biorefinery's
cogeneration facility would also produce biopower, or bioenergy, in the
form of electricity. The cogeneration facility co-located at the site
would use direct-firing (that is, using the biomass as a solid fuel in
a biomass boiler) to produce steam. Steam produced in the biomass
boiler would be used for facility processes and to produce electricity.
Under Section 932 of EPAct 2005, Congress directed DOE to carry out
a program to demonstrate the commercial application of integrated
biorefineries for the production of biofuels, in particular ethanol,
from lignocellulosic feedstocks. To implement its responsibilities
under Section 932, DOE issued a funding opportunity announcement in
February 2006 for the design, construction, and startup of commercial-
scale integrated biorefineries. In February 2007, DOE EERE selected
Abengoa and five other applicants for negotiation of award. In December
2009, Abengoa applied for a loan guarantee from the Department's Loan
Programs Office pursuant to Title XVII of EPAct 2005.
NEPA Review
In August 2008, DOE published in the Federal Register its Notice of
Intent to Prepare an Environmental Impact Statement and Notice of
Wetlands Involvement for the Abengoa Biorefinery Project near Hugoton,
KS (73 FR 50001), starting a 45-day public scoping period during which
DOE held a public scoping meeting in Hugoton, Kansas. In April 2009,
DOE re-opened public scoping and published in the Federal Register its
Amended Notice of Intent to Modify the Scope of the Environmental
Impact Statement for the Abengoa Biorefinery Project near Hugoton, KS
(74 FR 19543). The amended notice informed the public about changes in
the Project relevant to the scope of the ongoing EIS. DOE conducted a
30-day public scoping period and held a second public scoping meeting
in Hugoton, Kansas. On September 23, 2009, DOE published in the Federal
Register its Notice of Availability for the Draft Environmental Impact
Statement for the Abengoa Biorefinery Project Near Hugoton, Stevens
County, KS (DOE/EIS-0407D) (74 FR 48525) (Draft EIS). On September 25,
2009, the U.S. Environmental Protection Agency (EPA) listed the Draft
EIS in its weekly notice of availability (74 FR 48951).
DOE conducted a public hearing in Hugoton during the 45-day public
comment period on the Draft EIS. DOE prepared a comment-response
chapter for the Final EIS (Chapter 10) that includes each public
comment received on the Draft EIS and DOE's response.
DOE issued the Final EIS, and EPA listed the Final EIS in its
weekly notice of availability on August 20, 2010 (75 FR 51458). DOE
issued a ROD, published on January 12, 2011 (76 FR 2096), to provide
Federal funding under Section 932 of EPAct 2005 to Abengoa for the
Project (identified in the Final EIS and ROD as the Proposed Action).
Since issuance of the ROD, Abengoa has proposed a modification to
the Proposed Action. Under the original Proposed Action, the
biorefinery would process approximately 2,500 dry short tons per day of
feedstock and produce up to 19 million gallons of denatured ethanol per
year and 125 megawatts of electricity, 75 of which would be sold
commercially. Under the Modified Proposed Action, the biorefinery would
process approximately 1,000 dry short tons per day of feedstock and
produce up to 25 million gallons of denatured ethanol per year and 20
megawatts of electricity for use at the facility, none of which would
be sold to the grid. In July 2011, pursuant to DOE NEPA regulations (10
CFR 1021.314), DOE issued a Supplement Analysis for the Final
Environmental Impact Statement for the Proposed Abengoa Biorefinery
Project near Hugoton, Stevens County, Kansas (DOE/EIS-0407/SA-1) that
examined the potential environmental impacts of the Modified Proposed
Action and addressed whether they were within the range of the
potential environmental impacts analyzed in the Final EIS. Based on the
Supplement Analysis, DOE determined on July 7, 2011, that the Modified
Proposed Action would not constitute a substantial change in actions
previously analyzed and would not present significant new circumstances
or information relevant to the environmental concerns and bearing on
the previously analyzed actions or impacts, within the meaning of 40
CFR 1502.9(c) and 10 CFR 1021.314. Accordingly, DOE determined that a
supplement to the FEIS was not required. On August 19, 2011, DOE
announced its decision to offer a conditional commitment to Abengoa to
provide a $134 million loan guarantee to support the financing of the
Project (Modified Proposed Action).
Alternatives Considered
In the Final EIS, DOE considered three alternatives, including the
Project as identified in the Final EIS as the Proposed Action (selected
by DOE in the January 2011 ROD), an Action Alternative, and the No
Action Alternative. These alternatives were described in detail and
fully analyzed in the Final EIS.
The DOE decision to select the Proposed Action (provide Federal
funding under Section 932 of EPAct 2005 for the Project) includes best
management practices and mitigation measures identified in Chapter 6 of
the Final EIS, Best Management Practices
[[Page 62052]]
and Mitigation, and summarized in the January 2011 ROD. These practices
and mitigation measures, and additional mitigation measures identified
in the Supplement Analysis for the Modified Proposed Action, will be
implemented for the Project. Mitigation measures beyond those specified
in permit conditions will be addressed in a mitigation action plan
(MAP) that DOE will prepare pursuant to 10 CFR 1021.331. The MAP and
annual monitoring reports will be available on the DOE NEPA Web site
(https://energy.gov/nepa) and the DOE Golden Field Office Web site
(https://www.eere.energy.gov/golden/Reading_Room.aspx).
DOE's decision in this ROD is whether or not to issue a $134
million loan guarantee to Abengoa to support construction and start-up
of the Project. Accordingly, DOE's alternatives are (1) to issue a loan
guarantee to Abengoa for the Proposed Action alternative selected in
the January 2011 ROD and subsequently modified (the Modified Proposed
Action described in the Supplement Analysis), and (2) No Action
Alternative, i.e., no loan guarantee.
Environmentally Preferred Alternative
Issuance of a loan guarantee for the Project would result in both
beneficial and adverse potential environmental impacts. Potential
beneficial impacts include those associated with reductions in
greenhouse gas emissions and a decrease in water withdrawals; adverse
impacts include those associated with a substantial increase in
transportation activity and minor impacts from air emissions. On
balance, DOE regards the No Action Alternative, which would result in
no change in existing environmental conditions, as the environmentally
preferred alternative.
Decision
On January 12, 2011, DOE announced the issuance of a ROD to provide
Federal funding under Section 932 of EPAct 2005 to Abengoa for the
Project. DOE's decision in this ROD is to select alternative (1)
identified above: To issue a loan guarantee for construction and start-
up of the Project (the Modified Proposed Action as described in the
Supplement Analysis). Under alternative (2), the No Action Alternative,
DOE would not issue a loan guarantee for the Project, and it is
unlikely that Abengoa would implement the Project as currently planned.
While the direct and indirect environmental impacts of the Project
would be avoided under the No Action Alternative, the benefits that
would be gained from the development, demonstration, and commercial
operation of an integrated biorefinery that uses lignocellulosic
feedstocks would not be realized. In addition, no benefits would be
realized from the reduction of air pollutants and emissions of
greenhouse gases by displacing gasoline with biofuel.
Approval of the loan guarantee for the Project meets DOE's purpose
and need pursuant to Title XVII of EPAct 2005 (42 U.S.C. 16511-16514)
for eligible projects under Section 1703 of Title XVII, which
authorizes the Secretary of Energy to make loan guarantees for projects
that (1) avoid, reduce, or sequester air pollutants or anthropogenic
emissions of greenhouse gases and (2) employ new or significantly
improved technologies as compared to commercial technologies in service
in the United States at the time the guarantee is issued. Issuance of
loan guarantees for projects under Section 1703 of Title XVII of EPAct
2005 facilitates the acceleration of the commercialization of
innovative, environmentally-friendly technologies that will have an
impact on ensuring clean, affordable, and reliable supplies of energy.
The purpose and need for DOE's loan guarantee action is to comply with
DOE's mandate under Title XVII of EPAct 2005 by selecting projects that
meet the goals of the Act.
In addition, the Project is also eligible for a loan guarantee
under Section 1705 of Title XVII (implemented pursuant to Section 406
of the American Recovery and Reinvestment Act of 2009 (ARRA)). Eligible
Section 1705 projects include renewable energy projects and related
manufacturing facilities, electric power transmission projects, and
leading edge biofuels projects. The primary purposes of ARRA are job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and state and local fiscal
stabilization. Issuances of loan guarantees for eligible projects under
Section 1705 are designed to address the current economic conditions
facing the nation. To qualify under Section 1705, projects must
commence construction by September 30, 2011.
Mitigation
This ROD incorporates all practicable means to avoid or minimize
environmental harm. The Project that will be supported by issuance of
the DOE loan guarantee includes all mitigation conditions applied by
DOE for this Project in its Final EIS, January 2011 ROD, and Supplement
Analysis. In the Supplement Analysis, DOE concluded that additional
mitigation measures are warranted to reduce potential impacts from
accidental releases of anhydrous ammonia. Mitigation measures beyond
those specified in permit conditions will be addressed in a MAP that
DOE will prepare pursuant to 10 CFR 1021.331. The MAP will explain how
the mitigation measures will be planned, implemented, and monitored.
DOE will ensure that commitments in the ROD are incorporated into DOE's
loan guarantee agreement with Abengoa. The MAP and annual monitoring
reports will be available on the DOE NEPA Web site (https://energy.gov/nepa) and the DOE Golden Field Office Web site (https://www.eere.energy.gov/golden/Reading_Room.aspx).
DOE's loan guarantee agreements require the applicant to comply
with all applicable laws and the MAP, including mitigation measures
contained therein. An applicant's failure to comply with applicable
laws and the MAP would constitute a default. Upon the continuance of a
default, DOE would have the right under the loan guarantee agreement
between it and the applicant to exercise usual and customary remedies.
To ensure that the applicant so performs, the DOE Loan Programs Office
proactively monitors all operative loan guarantee transactions.
Issued in Washington, DC, on September 20, 2011.
Jonathan M. Silver,
Executive Director, Loan Programs Office.
[FR Doc. 2011-25857 Filed 10-5-11; 8:45 am]
BILLING CODE 6450-01-P
