South Mississippi Electric Cooperative: Plant Ratcliff, Kemper County Integrated Gasification Combined-Cycle (IGCC) Project, 36996-36997 [2012-15035]

Download as PDF 36996 Federal Register / Vol. 77, No. 119 / Wednesday, June 20, 2012 / Notices burden of the collection of information on those who are to respond, through the use of appropriate automated, electronic, mechanical, technological, or other forms of information technology collection techniques. All responses to this notice will become a matter of public record and be summarized in the request for OMB approval. Signed at Washington, DC, May 22, 2012. Joseph T. Reilly, Associate Administrator. [FR Doc. 2012–14958 Filed 6–19–12; 8:45 am] BILLING CODE 3410–20–P DEPARTMENT OF AGRICULTURE Rural Utilities Service South Mississippi Electric Cooperative: Plant Ratcliff, Kemper County Integrated Gasification Combined-Cycle (IGCC) Project Rural Utilities Service, USDA. Notice of Adoption of a Final Environmental Impact Statement. ACTION: The South Mississippi Electric Power Association (SMEPA), a rural electric generation and transmission cooperative, has approached the USDA Rural Utilities Service (RUS, the Agency) for financial assistance through which SMEPA would acquire a 17.5% undivided ownership interest in Plant Ratcliff, an Integrated Gasification Combined-Cycle (IGCC) Project currently under construction in Kemper County, Mississippi (hereinafter ‘‘the Project’’) and owned by Mississippi Power Company (MPCo). In accordance with RUS Environmental Policies and Procedures, 7 CFR 1794, RUS has discretion in determining whether a proposal is subject to the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321, when potential borrowers will have only partial ownership of a project for which they are requesting financing (7 CFR 1794.20, Control). Though acknowledging that RUS financing will provide SMEPA with significantly limited control of the Project, RUS considers the Project subject to NEPA and to the National Historic Preservation Act (NHPA) and its implementing regulations at 36 CFR part 800. This notice documents the efforts undertaken by RUS to ensure compliance with NEPA, NHPA, and all other applicable environmental laws and regulations through the adoption of the Final Environmental Impact Statement (FEIS) prepared for the Project by the United States Department mstockstill on DSK4VPTVN1PROD with NOTICES VerDate Mar<15>2010 16:14 Jun 19, 2012 Jkt 226001 Written comments on the Adoption will be accepted for 30 days following the publication of the U.S. Environmental Protection Agency’s Notice of Adoption in the Federal Register. DATES: A link to FEIS will be posted on the RUS Web site, https://www.rurdev.usda.gov/ UWP-eis4.htm. To obtain additional information or provide comments, please contact: Emily Orler, Environmental Protection Specialist, USDA Rural Utilities Service, 1400 Independence Avenue SW., Stop 1571, Washington, DC 20250–1571 or email: emily.orler@wdc.usda.gov. FOR FURTHER INFORMATION CONTACT: The Project will produce 582 megawatts (MW) of power through the use of clean coal IGCC technology. Lignite mined locally by North American Coal Corporation (NACC) will be converted into a synthesis gas (syngas) that will drive two gas combustion turbines. Heat recovery steam generators will convert excess heat from primary combustion to drive a steam turbine that will produce additional electrical power. The Project will demonstrate greater efficiencies and reduced carbon dioxide (CO2), sulfur dioxide (SO2), nitrogen oxide (NOX), mercury, and particulate emissions as compared to conventional lignite-fired electrical power plants. In addition to the IGCC facility and the mining operation, the Project requires the construction and/or upgrading of a natural gas supply pipeline, a reclaimed water supply pipeline, a CO2 pipeline, and electrical transmission infrastructure including power lines and substations. Southern Company, in cooperation with two of its subsidiaries, Southern Company Services and Mississippi Power Company (MPCo), has received cost-shared financing for the Project from the Department of Energy (DOE) under the Clean Coal Power Initiative. DOE conducted its NEPA review by preparing an Environmental Impact Statement (EIS) in cooperation with the U.S. Army Corps of Engineers (USACE), which resulted in the issuance of a Record of Decision (ROD) announcing the agency’s decision to finance the Project in March 2010. MPCo received Air and Water Pollution Control permits from the state of Mississippi in March of 2010, and the Mississippi Public Service Commission issued a Certificate of Public Convenience and Necessity in SUPPLEMENTARY INFORMATION: AGENCY: SUMMARY: of Energy (DOE) in cooperation with the U.S. Army Corps of Engineers (USACE). PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 May 2010.1 DOE’s Mitigation Action Plan (MAP) was issued in September 2010 and construction began in December of that year. SMEPA Involvement and Request for Financing SMEPA is a consumer-owned, not-forprofit rural electric generation and transmission cooperative that provides wholesale electric service to its eleven (11) member distribution cooperatives in 56 counties of Mississippi. SMEPA’s mission is to provide affordable and reliable power to its members. MPCo, a private utility that sells power to SMEPA to serve approximately a third of SMEPA members’ power demands, approached SMEPA in 2009 with the opportunity to participate in the Project. Based on its need to diversify generation resources in the region, SMEPA elected to support the Project and executed a Letter of Intent to evaluate potential joint ownership. SMEPA has evaluated their participation in the Project based on forecasted power demand, an evaluation of alternatives, and consideration of the Project’s overall economic feasibility. In 2010, SMEPA prepared a Generation Construction Work Plan (GCWP), which evaluated SMEPA’s construction needs to meet their projected power demand based on feasibility, environmental acceptability, and affordability. The GCWP reviewed previous Power Requirements Studies (PRS) and a long-range Power Supply Option Study (PSOS), which evaluated SMEPA’s existing generation resources and the projected demand growth, and established that SMEPA would be capacity deficient by 2015. SMEPA subsequently released a Request for Power Supply Proposal to identify potential resources to meet this demand. Taking into account demand growth, carbon emissions, construction costs, and gas price forecasts, the submissions were analyzed in comparison to selfbuild options (SMEPA-constructed generation facilities) and participation in the Project. SMEPA also accounted for potential financial implications of their participation in the Project for their members. Given that the Project will proceed regardless of SMEPA’s participation, SMEPA’s membership will be affected by Project-associated rate increases associated with the construction and operation of the Project due to preexisting and immutable contractual agreements with 1 The Certificate of Public Convenience and Necessity has since been appealed, reversed by the Mississippi Supreme Court and remanded to the Mississippi PSC for further proceedings in March of 2012. The Certificate was reissued by the Mississippi PSC on April 24, 2012. E:\FR\FM\20JNN1.SGM 20JNN1 Federal Register / Vol. 77, No. 119 / Wednesday, June 20, 2012 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES MPCo. SMEPA determined that partial ownership in the Project would help minimize the unavoidable rate increase. Based on these evaluations, SMEPA determined that a 17.5% undivided ownership interest in the Project would be the best overall option and has formally requested financial assistance from RUS to finance this action. SMEPA’s partial ownership would include the IGCC facility, the CO2 pipeline, the reclaimed water supply line, the surface lignite mine, and electrical transmission facilities. RUS Action RUS conducts the rural electrification loan program, which provides financing through direct loans and loan guarantees for the construction and operation of generation facilities and electric transmission and distribution lines and systems to improve electric service for rural Americans. RUS bases its decisions on financial, engineering, and environmental considerations. RUS assessed whether SMEPA would have sufficient control and responsibility to alter the development of the Project in order to determine if the project is subject to NEPA, in accordance with 7 CFR 1794.20. Through discussions with SMEPA, and review of loan and contractual documentation, RUS established that the project will be completed regardless of RUS-funded SMEPA participation. RUS further established that the Joint Ownership and Operating Agreement (JOOA), to be executed with MPCo, will provide SMEPA with only a limited ability to influence the Project.2 However, due to the Project’s significant public interest and potential federal expenditure, RUS decided to consider the Project a federal action subject to NEPA and an undertaking as defined by Section 106 of the NHPA. RUS reviewed transmission system impact studies and additional engineering studies provided by SMEPA, and the Final EIS (FEIS) and the associated MAP prepared by the DOE in cooperation with the USACE. RUS determined that SMEPA’s participation would not require any additional infrastructure, and therefore would not cause any environmental impacts beyond what was identified and discussed in the FEIS. RUS reviewed and determined that the FEIS and MAP 2 Through the JOOA, SMEPA would only be granted audit rights and authority for on-site representation during Project construction and operation. Should a Project Management Committee (PMC) be formed, SMEPA’s representation would be proportional to their percentage of ownership, and therefore limited to 17.5% influence over construction and management decisions. VerDate Mar<15>2010 16:14 Jun 19, 2012 Jkt 226001 36997 adequately assessed the potential impacts of the Project, and intends to adopt the EIS in accordance with 40 CFR 1506.3 and 7 CFR 1794.72. RUS/ SMEPA participation will not cause any additional impacts on historic properties. RUS has therefore determined that the Project qualifies as an undertaking with no potential to effect historic properties in accordance with 36 CFR 800.3(a)(1). This notice documents the Agency’s intent to adopt the DOE/USACE FEIS, and fulfills the agency’s responsibilities for public involvement, in accordance with 36 CFR 800.2(d)(2). Secretary at the address below. The closing period for their receipt is July 30, 2012. A copy of the notification will be available for public inspection at the Office of the Executive Secretary, Foreign-Trade Zones Board, Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230–0002, and in the ‘‘Reading Room’’ section of the Board’s Web site, which is accessible via www.trade.gov/ ftz. For further information, contact Diane Finver at Diane.Finver@trade.gov or (202) 482–1367. Nivin Elgohary, Assistant Administrator, Electric Programs, Rural Utilities Service. Elizabeth Whiteman, Acting Executive Secretary. [FR Doc. 2012–15035 Filed 6–19–12; 8:45 am] BILLING CODE P [FR Doc. 2012–15088 Filed 6–19–12; 8:45 am] BILLING CODE P DEPARTMENT OF COMMERCE DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [B–44–2012] [B–45–2012] Foreign-Trade Zone 7—Mayaguez, PR; Notification of Proposed Production Activity; Baxter Healthcare of Puerto Rico; (Pharmaceutical and Nutritional Intravenous Bags and Administration Sets); Aibonito and Jayuya, PR The Puerto Rico Industrial Development Company, grantee of FTZ 7, submitted a notification of proposed production activity on behalf of Baxter Healthcare of Puerto Rico (Baxter), at two sites within FTZ 7, located in Aibonito and Jayuya, Puerto Rico. The facilities are used for the manufacture of pharmaceutical and nutritional intravenous (I.V.) bags, I.V. administration sets and their components. Production under FTZ procedures could exempt Baxter from customs duty payments on the foreign status components used in export production. On its domestic sales, Baxter would be able to choose the duty rates during customs entry procedures that apply to the filled I.V. products and administration sets) (duty-free) for the foreign status inputs noted below. Customs duties also could possibly be deferred or reduced on foreign status production equipment. Components and materials sourced from abroad include: Foil pouches, ABS resin, L-tryptophan, glutamic acid, NAcetyl-L-Tyrosine and L-Lysine-Acetate (duty rate range: 3%–6.5%). Public comment is invited from interested parties. Submissions shall be addressed to the Board’s Executive PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 Foreign-Trade Zones Board Foreign-Trade Zone 61—San Juan, PR; Notification of Proposed Production Activity; Pfizer Pharmaceuticals LLC (Subzone 61A); (Ibuprofen Pharmaceutical Products); Guayama, PR The Puerto Rico Trade and Export Company, grantee of FTZ 61, submitted a notification of proposed production activity on behalf of Pfizer Pharmaceuticals LLC (Pfizer) (Subzone 61A) for its manufacturing facility located in Guayama, Puerto Rico. The notification conforming to the requirements of the regulations of the Board (15 CFR 400.22) was received on June 13, 2012. Subzone 61A was originally approved by the Board in 1992 at the former Searle plant located at Munoz Marin Avenue and Road 189 in Caguas, Puerto Rico, for the production and distribution of various pharmaceutical products under zone procedures (Board Order 617, 12/11/1992, 57 FR 61046, 12/23/1992). On June 8, 2012, a minor boundary modification under 15 CFR 400.38 of the Board’s regulations was approved to relocate the subzone from Pfizer’s Caguas plant to its facility located at PR 2, Km 141.3 in Guayama, Puerto Rico (S–69–2012). Pfizer is now requesting to produce ibuprofen pharmaceutical products in bulk mixture or dosage form under FTZ procedures at the Guayama site. Production under FTZ procedures could exempt Pfizer from customs duty payments on the foreign status components used in export production. E:\FR\FM\20JNN1.SGM 20JNN1

Agencies

[Federal Register Volume 77, Number 119 (Wednesday, June 20, 2012)]
[Notices]
[Pages 36996-36997]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15035]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


South Mississippi Electric Cooperative: Plant Ratcliff, Kemper 
County Integrated Gasification Combined-Cycle (IGCC) Project

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of Adoption of a Final Environmental Impact Statement.

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SUMMARY: The South Mississippi Electric Power Association (SMEPA), a 
rural electric generation and transmission cooperative, has approached 
the USDA Rural Utilities Service (RUS, the Agency) for financial 
assistance through which SMEPA would acquire a 17.5% undivided 
ownership interest in Plant Ratcliff, an Integrated Gasification 
Combined-Cycle (IGCC) Project currently under construction in Kemper 
County, Mississippi (hereinafter ``the Project'') and owned by 
Mississippi Power Company (MPCo). In accordance with RUS Environmental 
Policies and Procedures, 7 CFR 1794, RUS has discretion in determining 
whether a proposal is subject to the National Environmental Policy Act 
of 1969 (NEPA), 42 U.S.C. 4321, when potential borrowers will have only 
partial ownership of a project for which they are requesting financing 
(7 CFR 1794.20, Control). Though acknowledging that RUS financing will 
provide SMEPA with significantly limited control of the Project, RUS 
considers the Project subject to NEPA and to the National Historic 
Preservation Act (NHPA) and its implementing regulations at 36 CFR part 
800. This notice documents the efforts undertaken by RUS to ensure 
compliance with NEPA, NHPA, and all other applicable environmental laws 
and regulations through the adoption of the Final Environmental Impact 
Statement (FEIS) prepared for the Project by the United States 
Department of Energy (DOE) in cooperation with the U.S. Army Corps of 
Engineers (USACE).

DATES: Written comments on the Adoption will be accepted for 30 days 
following the publication of the U.S. Environmental Protection Agency's 
Notice of Adoption in the Federal Register.

FOR FURTHER INFORMATION CONTACT: A link to FEIS will be posted on the 
RUS Web site, https://www.rurdev.usda.gov/UWP-eis4.htm. To obtain 
additional information or provide comments, please contact: Emily 
Orler, Environmental Protection Specialist, USDA Rural Utilities 
Service, 1400 Independence Avenue SW., Stop 1571, Washington, DC 20250-
1571 or email: emily.orler@wdc.usda.gov.

SUPPLEMENTARY INFORMATION: The Project will produce 582 megawatts (MW) 
of power through the use of clean coal IGCC technology. Lignite mined 
locally by North American Coal Corporation (NACC) will be converted 
into a synthesis gas (syngas) that will drive two gas combustion 
turbines. Heat recovery steam generators will convert excess heat from 
primary combustion to drive a steam turbine that will produce 
additional electrical power. The Project will demonstrate greater 
efficiencies and reduced carbon dioxide (CO2), sulfur 
dioxide (SO2), nitrogen oxide (NOX), mercury, and 
particulate emissions as compared to conventional lignite-fired 
electrical power plants. In addition to the IGCC facility and the 
mining operation, the Project requires the construction and/or 
upgrading of a natural gas supply pipeline, a reclaimed water supply 
pipeline, a CO2 pipeline, and electrical transmission 
infrastructure including power lines and substations.
    Southern Company, in cooperation with two of its subsidiaries, 
Southern Company Services and Mississippi Power Company (MPCo), has 
received cost-shared financing for the Project from the Department of 
Energy (DOE) under the Clean Coal Power Initiative. DOE conducted its 
NEPA review by preparing an Environmental Impact Statement (EIS) in 
cooperation with the U.S. Army Corps of Engineers (USACE), which 
resulted in the issuance of a Record of Decision (ROD) announcing the 
agency's decision to finance the Project in March 2010. MPCo received 
Air and Water Pollution Control permits from the state of Mississippi 
in March of 2010, and the Mississippi Public Service Commission issued 
a Certificate of Public Convenience and Necessity in May 2010.\1\ DOE's 
Mitigation Action Plan (MAP) was issued in September 2010 and 
construction began in December of that year.
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    \1\ The Certificate of Public Convenience and Necessity has 
since been appealed, reversed by the Mississippi Supreme Court and 
remanded to the Mississippi PSC for further proceedings in March of 
2012. The Certificate was reissued by the Mississippi PSC on April 
24, 2012.
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SMEPA Involvement and Request for Financing

    SMEPA is a consumer-owned, not-for-profit rural electric generation 
and transmission cooperative that provides wholesale electric service 
to its eleven (11) member distribution cooperatives in 56 counties of 
Mississippi. SMEPA's mission is to provide affordable and reliable 
power to its members. MPCo, a private utility that sells power to SMEPA 
to serve approximately a third of SMEPA members' power demands, 
approached SMEPA in 2009 with the opportunity to participate in the 
Project. Based on its need to diversify generation resources in the 
region, SMEPA elected to support the Project and executed a Letter of 
Intent to evaluate potential joint ownership. SMEPA has evaluated their 
participation in the Project based on forecasted power demand, an 
evaluation of alternatives, and consideration of the Project's overall 
economic feasibility. In 2010, SMEPA prepared a Generation Construction 
Work Plan (GCWP), which evaluated SMEPA's construction needs to meet 
their projected power demand based on feasibility, environmental 
acceptability, and affordability. The GCWP reviewed previous Power 
Requirements Studies (PRS) and a long-range Power Supply Option Study 
(PSOS), which evaluated SMEPA's existing generation resources and the 
projected demand growth, and established that SMEPA would be capacity 
deficient by 2015. SMEPA subsequently released a Request for Power 
Supply Proposal to identify potential resources to meet this demand. 
Taking into account demand growth, carbon emissions, construction 
costs, and gas price forecasts, the submissions were analyzed in 
comparison to self-build options (SMEPA-constructed generation 
facilities) and participation in the Project. SMEPA also accounted for 
potential financial implications of their participation in the Project 
for their members. Given that the Project will proceed regardless of 
SMEPA's participation, SMEPA's membership will be affected by Project-
associated rate increases associated with the construction and 
operation of the Project due to preexisting and immutable contractual 
agreements with

[[Page 36997]]

MPCo. SMEPA determined that partial ownership in the Project would help 
minimize the unavoidable rate increase. Based on these evaluations, 
SMEPA determined that a 17.5% undivided ownership interest in the 
Project would be the best overall option and has formally requested 
financial assistance from RUS to finance this action. SMEPA's partial 
ownership would include the IGCC facility, the CO2 pipeline, 
the reclaimed water supply line, the surface lignite mine, and 
electrical transmission facilities.

RUS Action

    RUS conducts the rural electrification loan program, which provides 
financing through direct loans and loan guarantees for the construction 
and operation of generation facilities and electric transmission and 
distribution lines and systems to improve electric service for rural 
Americans. RUS bases its decisions on financial, engineering, and 
environmental considerations. RUS assessed whether SMEPA would have 
sufficient control and responsibility to alter the development of the 
Project in order to determine if the project is subject to NEPA, in 
accordance with 7 CFR 1794.20. Through discussions with SMEPA, and 
review of loan and contractual documentation, RUS established that the 
project will be completed regardless of RUS-funded SMEPA participation. 
RUS further established that the Joint Ownership and Operating 
Agreement (JOOA), to be executed with MPCo, will provide SMEPA with 
only a limited ability to influence the Project.\2\ However, due to the 
Project's significant public interest and potential federal 
expenditure, RUS decided to consider the Project a federal action 
subject to NEPA and an undertaking as defined by Section 106 of the 
NHPA.
---------------------------------------------------------------------------

    \2\ Through the JOOA, SMEPA would only be granted audit rights 
and authority for on-site representation during Project construction 
and operation. Should a Project Management Committee (PMC) be 
formed, SMEPA's representation would be proportional to their 
percentage of ownership, and therefore limited to 17.5% influence 
over construction and management decisions.
---------------------------------------------------------------------------

    RUS reviewed transmission system impact studies and additional 
engineering studies provided by SMEPA, and the Final EIS (FEIS) and the 
associated MAP prepared by the DOE in cooperation with the USACE. RUS 
determined that SMEPA's participation would not require any additional 
infrastructure, and therefore would not cause any environmental impacts 
beyond what was identified and discussed in the FEIS. RUS reviewed and 
determined that the FEIS and MAP adequately assessed the potential 
impacts of the Project, and intends to adopt the EIS in accordance with 
40 CFR 1506.3 and 7 CFR 1794.72. RUS/SMEPA participation will not cause 
any additional impacts on historic properties. RUS has therefore 
determined that the Project qualifies as an undertaking with no 
potential to effect historic properties in accordance with 36 CFR 
800.3(a)(1).
    This notice documents the Agency's intent to adopt the DOE/USACE 
FEIS, and fulfills the agency's responsibilities for public 
involvement, in accordance with 36 CFR 800.2(d)(2).

Nivin Elgohary,
Assistant Administrator, Electric Programs, Rural Utilities Service.
[FR Doc. 2012-15035 Filed 6-19-12; 8:45 am]
BILLING CODE P
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