THE LUYSTER CREEK ENERGY PROJECT ... - Energy Highway

A S T O R I A
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THE LUYSTER CREEK ENERGY PROJECT MAY 30, 2012

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G E N E R A T I N G
Existing Astoria
Facility
Introduction
The Luyster Creek Energy Project
The Luyster Creek Energy Project (LCEP) is a state-of-the-art repowering project designed to be
the cleanest and lowest heat rate fossil fuel unit in New York City. The project will replace older
less efficient generation and will reduce emissions through unit retirements and binding emission
limits. LCEP, which will be a 410 MW combined cycle unit, is in the final stages of permitting.
Building the project will create temporary construction jobs and 25-30 permanent union jobs. In
addition, LCEP will improve the environment, use the most up-to-date electric generating technology
available and provide affordable energy for New York City residents.
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New York State Energy Highway
Request for Information
Response by Astoria Generating Company,
a US Power Generating Company
Luyster Creek Energy Project
The New York State Energy Highway envisions public-private partnerships that provide reliable,
affordable power to New York’s homes and businesses for the next half century while creating
jobs, energizing private-sector investment and protecting the State’s environment and the wellbeing
of its citizens.
The RFI is looking for projects that
Create jobs and opportunities for New Yorkers;
Contribute to an environmentally sustainable future for New York State;
Apply advanced technologies that benefit system performance and operations; and
Maximize New York State electric ratepayer value in the operation of the electric grid.
The Luyster Creek Energy Project is in the final stages of the permitting process. The benefits of
LCEP include a reduction of existing air emissions while providing an increase in needed electric
generating capacity of up to 235 MW 1 in a constrained sub-load pocket.
The project will create several hundred temporary construction jobs and maintain existing permanent
jobs at the Astoria facility, improve the environment, use the most state-of-the-art electric
generating technology available and provide affordable energy.
Respondent
Information
Astoria Generating Company, L.P., a USPowerGen Company
John Reese, Senior Vice President
300 Atlantic Street, 5th Floor
Stamford, Connecticut 06901-3522
jreese@uspowergen.com
Telephone 212.792.0897
Background and Experience
Astoria Generating Company L.P. (AGC) is the wholly owned subsidiary of US Power Generating
Company (USPowerGen), a privately held firm that owns, operates and develops electric
generating facilities in areas with competitive wholesale markets. The management and operations
teams at USPowerGen and AGC have substantial experience doing business in New York
City and operating and developing generating facilities as well as implementing complex major
projects.
1
The construction of the new 410 MW project will be partly offset by retirement of existing generation creating up to an
incremental addition of 235 MW.
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AGC, acquired by USPowerGen on February 23, 2006, owns and operates fifty-three generating
units at three facilities in New York City with a total summer capacity of over 2,164 Megawatts (MW)
providing energy, capacity and ancillary services. These facilities operate in and generate electricity
for New York City’s power market (Zone J), which is administered by the NYISO. The three facilities
include the Astoria Generating Station (the “Astoria Facility”), the Gowanus Gas Turbine Facility
(“Gowanus”) and the Narrows Gas Turbine Facility (“Narrows”). The Astoria Facility consists of five
operating units (Units 20, 30, 40, 50 and GT-1) located in Astoria, New York. The five combined
operating units have a summer capacity rating of 1,298 MW. Units 30, 40, and 50 operate as intermediate
units, which run frequently, but are often used to follow load, ramping up during the peak
and shoulder hours of the day and backing down or shutting off during most low load hours. Unit
20 operates primarily as a peaking facility, running only during high load periods. Unit GT-1 is a 17
MW natural gas-fired combustion turbine provides peaking power and black start capability. The
generating units at the Gowanus and Narrows facilities are peaking units located in Brooklyn, New
York. Gowanus has 32 units (16 dual-fuel) with a summer capacity rating of 559 MW and Narrows
has 16 units (all dual-fuel) with a summer capacity rating of 307 MW.
In addition to these facilities, AGC has two development projects each of which is being individually
submitted in response to the Request For Information (RFI). The subject of this RFI submission
is the Luyster Creek Energy Project and is described below. Additional information regarding
the LCEP can be obtained at http://www.uspowergen.com/projects/luyster-creek/.
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PROJECT
DESCRIPTION
Type of proposed project
Electric Generation
Size of proposed project, with expected capability in energy and capacity
LCEP is designed to have capacity and energy output of 410 MW,
Proposed project location
LCEP will be located in NYISO Zone J at 18-01 20th Avenue, Astoria, Queens, New York. The project
will be constructed at the current Fuel Oil Terminal Facility (FOTF) at the AGC Astoria Facility.
Fuel source and availability of fuel/infrastructure, as appropriate
LCEP will fire natural gas as its primary fuel and will utilize a supplementary natural gas-fired heat
recovery steam generator (HRSG). A new aboveground fuel oil tank will also be constructed on
the site for the storage of Ultra Low Sulfur Diesel fuel oil as a backup fuel.
Earliest date project can be operational
Commercial operation could begin within 26-30 months of project approval.
Experience, market availability and suitability of project technology
The Siemens SGT6-8000H combined cycle combustion turbine is the most advanced fossil
fuel technology available on the market. The equipment‘s advanced compressor design and
coatings along with enhanced sealing increases traditional combined cycle efficiencies. The
Siemens H class provides operating flexibility including fast start up and cycling capability to
support intermediate as well as continuous operation. The machine also has low level turndown
capability that maintains high efficiency and low emissions. The low heat rates and unit flexibility
make the Siemens H Class units well matched for the New York City market, displacing older units
and responding to the reliability and market demands of the system. While the 50 Cycle Siemens
H Class units have been in operation for several years the first 60 cycle units in the US are currently
under construction. The units are readily available in the timeframe envisioned for the LCEP.
Description of Proposed Project: Luyster Creek Energy Project
The LCEP consists of the installation of a new highly efficient Siemens H-class combustion turbine
operating in a combine cycle configuration with a generating capacity of approximately 410
megawatts (MW) matched with an emissions reduction strategy.
The existing Astoria Facility consists of three dual-fueled (natural gas and No.6 oil) boilers, one
natural gas-fueled boiler and a small simple cycle CT, with a combined generating capacity of approximately
1,300 MW. The FOTF is a parcel consisting of approximately 12.5 acres that is located
approximately 2,400 feet to the northeast of the current Astoria Facility building. These parcels
are connected by utilities and easements and have been determined to be contiguous and adjacent
for air permitting purposes by the New York State Department of Environmental Conservation
(NYSDEC). A new aboveground fuel oil tank would also be constructed at the FOTF for the storage
of ultra low sulfur diesel (ULSD) fuel. Currently there are approximately 8 million gallons of No.6 oil
storage at the FOTF in four tanks for the existing Astoria Facility Units. Those tanks will remain in
service. Fuel is currently delivered by barge to the tanks from the adjacent A-10 dock and will be
delivered from the same dock to the new tank. The unit will be dual-fuel-capable, using natural gas
as a primary fuel, with ULSD as backup fuel to be used for up to approximately 30 days annually.
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One of the benefits of the LCEP is that it will provide new, high efficiency, clean electric generation,
while reducing emissions. The potential emissions resulting from the additional generating
capacity will be offset by implementing the strategies described below. These actions will fully
address community concerns and ensure that total air emissions will be reduced by a combination
of methods, including:
1. Use of a high efficiency, low emissions combustion turbine technology.
2. Establishment of enforceable emissions limits on existing Astoria Facility Units.
3. Shutdown/retirement of existing Astoria Facility Unit 20.
4. A permit cap on the sulfur content of the fuel oil.
5. The LCEP equipment will employ air cooling. There will be no air emissions
from the cooling system; the use of wet cooling would result in additional
particulate emissions.
Project
Justification
The LCEP responds to the objectives outlined in the RFI. More specifically it will;
Reduce constraints on the flow of electricity to and within the downstate area;
Assure long term reliability of the electric system; and
Increase efficiency of power generation, particularly in densely populated
urban areas.
The New York State Reliability Council requires that 83% of the electrical power in New York City
(City) or Zone J be supplied by units dedicated to supplying Zone J for system reliability. The
Existing Astoria Facility Units are older, less efficient units that are generally used for reliability
and high electric load days. Because the Siemens turbine is the most efficient unit commercially
available, it will displace the operation of other generating units in the system, including both the
older units in the City (including the existing Astoria Facility Units) and also existing combined cycle
units which, even though more efficient than older steam generating units, are not as efficient
as the LCEP. This displacement will provide a tremendous environmental benefit in reduced air
emissions resulting from the generation of electricity. In addition to the environmental benefit,
the cost of production of electricity would be reduced due to the higher efficiency of the LCEP
equipment. Load profiles and existing capacity resources in the City require that the City have
quick start and intermediate load generation capability to meet demand. The LCEP equipment
will be designed to start up and shut down quickly, and will have greater operational flexibility
than the standard combined cycle facilities currently operating in the City. This flexibility will reduce
emissions during start up and shut down periods, and allow the LCEP equipment to be shut
down if there are more economical sources available to operate during uneconomic periods.
Additionally, the LCEP is consistent with New York City’s PlaNYC, and the New York State Energy
Planning process, providing cleaner, more reliable power and upgrading the energy infrastructure.
AGC is increasing efficiency (replacing older less efficient generating capacity at the Astoria
Facility with a new highly efficient Siemens H-class combustion turbine) operating in a combined
cycle configuration. The H class combustion turbine is the most efficient machine available in
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today’s market. Because NYISO uses economic dispatch to schedule generation resources for
operation and LCEP will be one of the most efficient and lowest cost unit in New York City, the
LCEP will be one of the first units to be called to operate.
Financial
The likely financial plan and potential funding sources that would be needed for project success,
including long-term contracts, structure and duration required.
The project will utilize a traditional project finance structure. Equity will be funded from the balance
sheets of AGC and USPowerGen, potentially in partnership with outside investors. Debt
financing will be funded through the project finance bank market..
A standard project finance would include a tenor of 5 – 8 years with an initial equity commitment
of between 40% - 50% of the total project funding. A long-term contract of at least 5 years would
be important to secure attractive financing terms.
Name of potential Project Sponsor(s), if applicable, and Sponsor(s) financial commitment to the
project
AGC will be the main Project Sponsor, potentially in partnership with additional investors.
Projected amounts of energy and capacity to be produced or delivered; identification of potential
ancillary services and environmental attributes that may be available for sale of delivery.
The project has a nameplate rating of 410 MW. It is anticipated that the project will be capable
of providing 350 MW UCAP in the summer and 404 MW of UCAP in the winter. In addition, the
project is capable of providing quick start, black start, voltage support and reserves.
Potential sources of project revenue – As examples, whether the project is currently or expected
to be in a New York State Public Service Commission (PSC) proceeding, or whether it
would require a power purchase agreement with a creditworthy counterparty, or would rely on
power merchant sales
It is expected that the project will require some portion of the output to be secured with a power
purchase agreement.
Projected range of pricing for project products (i.e., energy, capacity, ancillary services and
environmental attributes, if applicable).
The project economics will benefit from the existing Astoria site infrastructure, including the
point of interconnection, deliverability rights, land, gas pipeline, fuel oil storage, as well as shared
personnel. These competitive cost advantages - in combination with the state-of-the-art, high
efficiency generation technology - will enable the project to be very price competitive relative to
all other units in New York City.
Risk of price changes due to changes in prices for commodities, manufacturer quotations and
other materials and services.
The project will be constructed through an engineering, procurement, and construction (EPC)
contract which will limit the risk from commodity, manufacturer quotation, and other material and
service price changes. In addition, the existing infrastructure from AGC’s adjacent facilities, including
a natural gas pipeline, 138 kilovolt (kV) electric transmission line, utility switchyard, water
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supply, sanitary wastewater discharge pipelines, oil storage, and existing operations and maintenance
personnel to operate and maintain the new equipment will limit the scope of required
construction and therefore reduce price risk.
Anticipated incentives, such as applicable tax incentives and impact on pricing.
It is anticipated that the project will qualify for the UTEP property tax exemption, for generation
projects sited within Zone J.
Options to reduce pricing and pricing uncertainty
Equity and debt financing costs are driven by project risk. A Power Purchase Agreement with
a longer duration and higher proportion of secured revenues will help to lower project risk and,
therefore, lower the required contract pricing.
Permit/Approval
Process
Federal, State and local permits needed to develop and operate the project
Title V Permit Modification (6 NYCRR 201-6) (NYSDEC)
Acid Rain Permit (known as Title IV) (6NYCRR 201-6) (NYSDEC)
SPDES Permit Modification (6 NYCRR 750) (NYSDEC)
SPDES General Permit for Storm water Discharge from Construction Activity (including
SWPPP) (GP-10-01) Notice of Intent (NYSDEC)
CO2 Budget Permit (6 NYCRR 242-3) (NYSDEC)
Clean Air Interstate Rule (CAIR) NOX Annual Trading Permit (6 NYCRR 244-3) and CAIR
SO2 Trading Permit (6 NYCRR 245-3) (NYSDEC)
Updated Spill Prevention Control and Countermeasure (SPCC) Plan (40 CFR 112 and 6
NYCRR 612-614) (NYSDEC)
Bulk Petroleum Storage Tank Permit (FDNY) and Petroleum Bulk Storage Permit (NYS-
DEC)
New York State Chemical Bulk Storage (NH3 tank) Registration (6 NYCRR Parts 595-
599) (NYSDEC)
Waterfront Revitalization Program (WRP) Consistency Review (NYSDEC, NYSPSC)
PSL Section 68 Certificate of Public Convenience and Necessity (NYSPSC)
PSL Section 69 Approval (NYSPSC)
Lightened Regulation Approval (NYSPSC)
Increase water use connection/approval (NYCDEP)
Fire Department Storage Permit (aqueous ammonia

A S T O R I A
G E N E R A T I N G
A Draft Scope of Work was issued by NYSDEC on July 7, 2010 and Final Scope issued
on November 10, 2010
AGC filed an Air Permit Application on August 30, 2010
AGC filed a DEIS on December 14, 2010 and revised the document on May 20, 2011
and June 30, 2011
AGC filed a revised Air Permit Application on May 20, 2011 and June 30, 2011
NYS DEC issued a Notice of Completion of the DEIS on June 29, 2011
NYSDEC issued a draft Title IV and V Air permit on June 29, 2011
NYSDEC held a public hearing on the DEIS on August 24, 2011
LCEP has been assigned Queue position #361 by the NYISO
On May 25, 2012 AGC submitted a revised Feasibility Study to the NYISO for their
review.
Other
considerations
Key uncertainties in federal, State and local project permitting and suggestions for how such uncertainties
can be addressed
The project has received draft air permits and has been through the public hearing and comment
period on the DEIS. The remaining items to be addressed include the CO2 PSD requirement and
some minor adjustments on overall emissions to achieve a net reduction which can be readily addressed
in a short period of time. There are no major uncertainties remaining.
Other Considerations, if applicable
Issues or challenges the proposal faces and suggestions for how these issues and challenges
can be addressed for the project and future projects.
There are no other issues or challenges facing the LCEP other than market conditions.
Additional
Information
Property
Ownership of the potential project location(s), and the extent to which the project would utilize
existing rights-of-way and/or previously disturbed land.
The LCEP will be constructed on previously disturbed industrially zoned land that is
owned by AGC.
Projected in-service date and project schedule
Timeline for development and financing of the potential project, culminating in the commercial
operation of the project, that includes preliminary engineering and licensing, detailed engineering
and design, permitting, procurement of major equipment, construction, testing and commissioning.
Preliminary engineering has been completed to the point required to prepare and file
the applicable permit applications. The permitting process is well advanced as noted
above and should be completed in less than six months. An estimated time line is appended
as attachment A.
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Interconnection
Potential interconnection point(s)
The LCEP equipment will be electrically interconnecting to the grid via existing connections
from the existing Astoria Facility Units. The specific proposed Point of Interconnection
(POI) is Con Ed’s Astoria West Substation via the existing Astoria West 138 kV
Substation Unit 3 (A3) feeders 24121/24122.
Respondent’s assessments of why such interconnection point(s) are optimum, from both an economic
and reliability perspective.
LCEP optimizes existing interconnection points and the existing infrastructure in the
Astoria Complex.
Respondent’s assessment of whether the energy and/or capacity is deliverable to the bulk electric
system.
AGC has determined that with a relatively minor amount of system upgrades both the
energy and capacity of the LCEP are deliverable to the electric grid.
Technical
Anticipated life of facility components
The LCEP will be designed for a useful operating life of approximately 30 years.
Quality and duration of original equipment manufacturer warranties
Final manufacturer warranties have not yet been negotiated; however, nothing less
than industry standard warranties will be acceptable.
Construction
Opportunities for New York-based manufacturing and/or assembly of equipment
It is anticipated that construction and equipment will result in an expenditure of $800
million to $1.0 billion, of which it is estimated more than 25% is expected to be spent in
the local New York Metropolitan Area. An effort will be made to identify local competitive
suppliers. The local expenditures are expected to generate tens of millions in additional
secondary, economic activity in the area. A Cornell study estimated additional
economic activity from a project by applying the output multiplier (1.66). While this
multiplier has some limitations, it is reasonable to assume half again as much economic
activity will be created by the project due to the local expenditures and could result in
hundreds of millions of dollars in local economic activity.
Labor expenditures for construction of the LCEP Equipment will be a substantial portion
of the total cost of the project. The majority of this labor cost is expected to be paid
to labor provided from the metropolitan area. An effort will be made to hire locally. In
addition to local temporary jobs, the community will also benefit from additional direct
non-payroll expenditures.
Description of potential contractual arrangement(s) during construction
This project will be conducted under an EPC arrangement.
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Availability of labor, materials and installation equipment
USPG has determined that there is adequate labor, material and equipment to construct
the facility.
Potential decommissioning options for removal of a project at the end of its life cycle, including
designation of a potential responsible party from a cost and environmental perspective
The LCEP unit will be designed for a useful operating life of approximately 30 years.
During the life of the LCEP, maintenance and refurbishment of the components will be
required. Near the end of its useful life, the primary components of the LCEP equipment
could undergo significant refurbishment to maintain a competitive position in the market
and extend the life of the components. Alternatively, since electric generation technology
is anticipated to advance over the life of the LCEP equipment, it is reasonable
to expect that new, even more efficient, state-of-the-art equipment could be installed at
the site in lieu of refurbishment. To the extent that the transmission and distribution system
in Queens and the City remains similar to that which currently exists, it is likely that
the site will remain a critical location for electric power generation. The site’s proximity
to the existing, adjacent utility switchyard is expected to continue to be required as an
electric generation site to maintain system reliability.
In the event AGC determines that the LCEP equipment is no longer economically viable
it may be decommissioned and the equipment offered for sale. The value of this
equipment could be reinstallation at another location or for its intrinsic scrap value. The
expectation is that the purchaser would be responsible for dismantling and removal of
the equipment from the site and that the salvage value would be in excess of the cost
to remove. The site could then be redeveloped for another business or appropriate use
consistent with City requirements at the time of decommissioning.
Operational
Projected or guaranteed project availability and/or energy production over project life
It is anticipated that the Siemens H unit and ancillary equipment will have availability in
the high nineties with corresponding capacity factors reflecting the efficiency of the unit
which will have the lowest heat rate in New York.
Safety and emergency considerations
Certified by the OSHA as a “Star” site under the Voluntary Protection Program, the existing
Astoria Facility has implemented a proactive safety program which provides and
promotes a safe and healthy workplace environment through the active involvement by
all employees across all levels of the organization.
The Astoria Facility is regulated under the USCG Marine Transportation Security Act
as well as the Oil Pollution Act. Both of these regulations subject the site to frequent
inspections to ensure that proper security plans, response plans and procedures are in
place to ensure compliance and preparation.
The operation of the LCEP is not anticipated result in any significant adverse impacts
to the public safety and security in the vicinity of the project. Because the site is currently
an active electric generating facility, there are Health and Safety Plans prepared
and in effect.
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Socio-Economic
Potential benefits to and adverse impacts on the local economy
The LCEP will have both direct and indirect positive economic effects, commencing
during the construction phase and continuing throughout the economic life of the LCEP
equipment. In the short term, the benefits of project construction will include additional
employment and income stemming from jobs in the various construction trades that
will be required to build the LCEP equipment. In the long term, the LCEP will provide an
array of direct and indirect economic benefits. It will generate additional revenue for
the City through additional tax payments based on the increased value of the Astoria
Facility and enhance energy reliability to the City. The local economic impacts are also
described above.
Operation of LCEP equipment may have several tax implications. First, the modified
Astoria Facility will be subject to a new tax appraisal and assessment for purposes of
determining assessed valuation and property taxes. The new appraisal will increase the
value of the Astoria Facility, which could result in higher taxes to be paid to the City of
New York. The amount of the increase cannot be determined at this time. In addition,
AGC may be able to qualify for local, state and federal tax incentives which may offset
a portion of the estimated tax for the operation of LCEP equipment.
The City will also benefit from the utility tax. The utility tax is levied based on the gross
income of a facility on a monthly basis. The LCEP equipment will not only increase the
capacity to provide power more efficiently, but it is anticipated that the LCEP equipment
will also generate greater revenues through the utility tax. The extent of increased
revenues cannot be determined at this time, particularly given the nature of the competitive
energy market in New York State. However, it is expected that the City would
realize a tax benefit from the LCEP.
Once the LCEP equipment is operational, it is expected to require additional full-time
staff of 25 to 30 employees. The total annual payroll for this additional workforce is
estimated to be over $3 million per year. In addition to direct payroll, AGC currently
expends over $ 100 million in operating, maintenance, and operation costs each year
in the local community on goods and services. It is expected that the local expenditure
will continue to be in this range and possibly higher due to the new equipment.
The LCEP Equipment is expected to operate as a base load to intermediate duty facility.
The LCEP equipment will also be available to rapidly start and quickly respond to
changes in the electric system providing fast response typically unavailable from larger
electric generating facilities.
Prices paid to generators of electricity during peak demand times are generally higher
than during normal demand periods because less efficient (more expensive) generating
units are needed to meet the demand requirements. When the LCEP equipment
operates it will displace higher cost generation, resulting in lower average costs to
produce electricity.
Potential impacts on real estate and property values
The site of the LCEP is currently disturbed and is used for electric generation and ancillary
activities. The LCEP will improve the site which is industrially zoned and therefore
no adverse impacts will result to real estate or property values.
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Impact on jobs, such as retention, creation of new jobs (temporary and permanent) and retraining
opportunities
Labor expenditures for construction of LCEP equipment will be substantial. The majority
of this labor cost is expected to be paid to labor provided from New York metropolitan
area. Efforts will be made to hire locally. In addition to local temporary jobs, the community
will also benefit from additional direct non-payroll expenditures in the New York
Metropolitan Area over the 24-month construction period.
Once the LCEP equipment is operational, it is expected to require additional full-time
staff of 25 to 30 employees. The total annual payroll for this additional workforce is
estimated to be over $3 million per year. In addition to direct payroll, AGC currently
expends over $100 million in operating, maintenance, and operation costs each year
in the local community on goods and services. It is expected that the local expenditure
will continue to be in this range and possibly higher due to the new equipment.
Public safety concerns
The operation of the LCEP is not anticipated result in any significant adverse impacts
to the public safety and security in the vicinity of the project. Because the site is currently
an active electric generating facility, there are Health and Safety Plans prepared
and in effect.
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Tourism impacts
There are no impacts on tourism.
Aesthetic issues
A visual impact assessment was conducted for the project and presented in the DEIS.
In summary, the LCEP is consistent with the current uses of the site. The LCEP equipment
will be consistent in appearance, scale, type and use with existing and similar
industrial and energy-related structures in the immediate vicinity, therefore no significant
visual impacts to identified resources will occur. In addition, design measures have
been incorporated into the LCEP equipment to further reduce its visual impacts. Compatible
colors will be used for the stack, tanks, and site buildings and landscaping and
architectural treatments are being incorporated into the site design.
Estimated impacts on real estate and property values
See potential impacts on real estate and property values above.
Environmental Justice considerations
An analysis was prepared in accordance with the NYSDEC Commissioner Policy CP-29
providing guidance for incorporating Environmental Justice (EJ) concerns into NYS-
DEC’s permitting process and was presented in the DEIS. The LCEP is not expected
to contribute any additional environmental burden on the local potential environmental
justice area (PEJA) and will not increase potential air contaminants due to operation of
the LCEP and therefore will not contribute to the community’s air pollution burden. In
fact, the LCEP will decrease the annual actual emissions now coming from the Astoria
Facility, and therefore will reduce the contribution of the Astoria Facility on air quality
impacts that may contribute to adverse environmental and health impacts. The Project
will provide new, high efficiency, clean electric generation. In addition, a conservative
air dispersion modeling analysis demonstrates that the air quality impacts resulting
from the emissions of pollutants from the LCEP Equipment will be below their respective
Significant Impact Levels (SILs). Impacts that are below SILs by definition will not
cause or contribute to exceedences of ambient air quality standards.
The consequences of the LCEP include modification of the Title V Air Permit for the
existing Astoria Facility Units in order to retire existing Astoria Facility Unit 2 and implement
enforceable emissions limits on the remaining Astoria Facility Units. There
will be no significant noise, de minimis increases in traffic levels associated with project
operations, and a visually sensitive design used in order to integrate the LCEP
equipment with the surrounding landscape. The Site has been designed, structurally
and visually, to ensure that construction and operation activities will accommodate
and complement existing community plans and efforts
Smart growth considerations
The LCEP will support the Smart Growth principals in that it will reduce existing air
emissions in the area while providing a new, clean economic and efficient source of
electricity. It will also increase the reliability of electric supply to the local community
and be designed to integrate into the current surroundings and incorporate other environmentally
sensitive design considerations.
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Financial
(See Above)
Environmental
Environmental benefit to region
When the LCEP commences commercial operation, it will result in an overall decrease
in the emissions from the existing Astoria Facility which will be incorporated in the
facility air permit. In real terms, because NYISO uses economic dispatch to schedule
generation resources for operation and the LCEP equipment will be one of the most
efficient and therefore lowest cost units, the LCEP equipment will be one of the first
units to operate, resulting in reduced operation for other less efficient plants in the City.
LCEP will displace the operation of other generating units in the system, including both
the older units in the City (including the existing Astoria Facility units) and also existing
combined cycle units which, even though more efficient than older steam generating
units, are not as efficient as the LCEP equipment. This displacement will provide a tremendous
environmental benefit in reduced air emissions resulting from the generation
of electricity. In addition to the environmental benefit, the cost of production of electricity
would be reduced due to the higher efficiency of the LCEP equipment.
Projected reduction s in greenhouse gases
The proposed technology for this project is the Siemens 8000H combustion turbine in
a combined cycle mode. This is the most efficient technology available in the market
and as a result will have the lowest heat rate and emissions of CO 2
per unit of power
generated.
Wetlands, streams, forests and other natural areas that would be disturbed by the project
The project is being constructed on land that is an industrial site and already disturbed.
Therefore the project will not impact wetlands, streams, forests and other natural areas.
Environmental impacts of construction and operation
Any impact associated with construction will be minimal and temporary and mainly
confined to the site.
Proposed mitigation measures
In summary, the LCEP is an energy project that will add additional generating capacity
to the Astoria Facility while reducing environmental impacts. AGC believes that a coordinated
improvement of the Astoria Facility by the addition of new cleaner technology
is the most beneficial way to plan for the increasing load requirements of the City and
the eventual retirement of older generating units, while reducing the environmental
impacts of the existing Astoria Facility Units 20, 30, 40, 50 and GT-1, associated ancillary/auxiliary
equipment, and other displaced facilities. Operation of the LCEP will result
in environmental benefits and improve system reliability. The LCEP will also advance,
and is consistent with, the goals set forth in the Draft State Energy Plan with respect to
assuring system reliability, replacement of older capacity, greenhouse gas reductions,
reduced electric costs and environmental improvements.
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The Astoria Facility site is well suited for additional electric generating capacity because
of the availability of properly zoned land, onsite availability of a natural gas pipeline,
and close proximity to a utility switchyard for electric interconnection, an existing
municipal water supply, existing sanitary wastewater discharge systems, and the liquid
fuel storage infrastructure. These existing features at the Astoria Facility will minimize
potential environmental impacts associated with the construction of utility interconnects
and reduce ancillary construction because many components currently exist.
Other project benefits are green design considerations for the proposed project which
include both green building techniques and renewable/conservation energy strategies.
The green designs attributes which are being evaluated, include, but are not limited to,
the following items:
Green Building Techniques
1) Green planted spaces around the facility.
2) Incorporating vegetation to mitigate potential visual and/or noise effects.
3) Laying out the facility to minimize bulk.
4) Selecting colors that blend into the area.
Renewable/Conservation Energy Strategies
1) Capturing rain water for irrigation on site.
2) Water conserving plumbing fixtures.
3) High efficiency lighting.
4) Review/modification of the conservation efforts in the existing Astoria Facility
(i.e., replacing lights to energy efficient fixtures/bulbs).
5) Consideration of using electric/hybrid vehicles on site.
6) Highest efficiency (lowest heat rate ) fossil fired electric generating unit.
Project Contract/Request for Proposal (RFP) Status
Whether or not the project has been submitted to a New York State agency or authority in response
to a Request for Proposals (“RFP”) (identify the name of the agency or authority, name of
the RFP and date of issuance)
The project has not been submitted to a New York State agency or authority in response to a
Request for Proposals.
Public Outreach and Stakeholder Engagement
Anticipated stakeholder groups and affected individuals
Potential issues to be addressed
Public outreach plan
AGC’s approach to developing the LCEP has been one of open communication with the
community. As part of this philosophy, prior to the LCEP being introduced to the general
public, AGC met with many community leaders, groups, and local politicians, to obtain
feedback on potential community concerns and issues the community may have had
with previous power generating projects. In addition to the community meetings, AGC
also met with the NYSDEC and local elected officials and is arranging meetings with the
City Planning Department and the City Department of Economic Development.
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A S T O R I A
G E N E R A T I N G
Sections of the Astoria community are considered Potential Environmental Justice Areas
by NYSDEC. Undertaking any activity requiring a permit in a Potential Environmental
Justice Area triggers the obligation on the part of an applicant to conduct an enhanced
public participation program. Consistent with its open communication approach, AGC
prepared a comprehensive and proactive Public Participation Plan, and submitted it
to the NYSDEC with the submittal of the Environmental Assessment Form to initiate
the formal review and permitting process. The Public Participation Plan contains commitments
by AGC to undertake significant public outreach, prepare a public contact
list, widely disseminate information, prepare fact sheets, hold public meetings, take
comments continually throughout the New York State Environmental Quality Review
Act review process, provide periodic progress reports summarizing public outreach
activities to date, update stakeholders on the project status, and respond to questions
and comments received. All project documents have been made available through
an extensive project website and at public repositories in local libraries and the Community
Board office. In addition, comments were encouraged to be provided at public
meetings, by mail, through the website, or via the established LCEP hotline. AGC has
actively implemented its Public Participation Plan. These extensive efforts have been
further supplemented by the analyses in the DEIS clearly demonstrating that the LCEP
will not contribute any additional environmental burden on the local Potential Environmental
Justice Area.
More information is available on the LCEP Website at
http://www.uspowergen.com/projects/luyster-creek/
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A S T O R I A
G E N E R A T I N G
A P P E N D I X A
THE LUYSTER CREEK ENERGY PROJECT MAY 30, 2012

A S T O R I A
G E N E R A T I N G
A P P E N D I X A
PROJECT
timeline
Luyster Creek Timeline with Major Milestone Events.
2012 2013 2014 2015
Construction
Timeline
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Notice to
Proceed
Equipment
Procurement
Sitework
Equipment
Installation
Testing
In Service
Financing
Process
Interconnection
Process
THE LUYSTER CREEK ENERGY PROJECT MAY 30, 2012