Peaking Capacity Additions

In December 1995, TVA issued its final Energy 2020 Integrated Resource Plan and Programmatic Environmental Impact Statement. This document projected demands for electricity in the TVA power service area through the year 2020 and evaluated different ways of meeting these projected increases. Under the forecast adopted by TVA, the demand for electricity was projected to exceed TVA's 1996 generating capacity of 28,000 (MW) by approximately 6,250 MW in the year 2005. TVA decided to meet this demand through a combination of supply-side options and customer service options. One of the supply-side options was to construct additional peaking capacity within the TVA power system. Tiering

from the Energy Vision 2020 EIS, this Peaking Addition EIS evaluates the decision of adding up to 1,530 MW capacity among three existing TVA fossil plants; Colbert Fossil Plant, Colbert County, Alabama; Gallatin Fossil Plant, Sumner County and Johnsonville Fossil Plant, Humphreys County, Tennessee. The evaluation considered the following: the No Action Alternative, and seven Action Alternatives based on all combinations of the use of one, two or three candidate sites. Other options evaluated included generation technology, transmission connectivity and distribution, and fuel supply. The three candidate sites were selected based on the following criteria: location in the TVA service area, sites currently owned by TVA, and use of TVA fossil plants that now operate combustion turbines. Operating nuclear plant sites were not considered. The alternative selected was based on both economic and environmental considerations. The preferred alternative locates the capacity additions at Gallatin and Johnsonville Fossil Plants, Tennessee. On August 12, 1998, TVA issued a Notice of Intent (NOI) to prepare an EIS on its proposed construction of additional peaking capacity at TVA existing sites. Press announcements were sent to TVA region news media on July 22, 1998, which generally described TVA's plans to add new peaking capacity by June 2000. On August 24, 1998, TVA issued a press release which contained specific information about TVA's intent to hold public scoping meetings concerning the peaking additions. Also, newspaper notices were published for the meetings. These meetings were held at the following locations: Gallatin, Sumner County, Tennessee; Waverly, Humphreys County, Tennessee and Cherokee, Colbert County, Alabama. Public comments were considered in preparing the draft EIS. A NOA of the draft EIS was published by the Environmental Protection Agency (EPA) in the Federal Register on January 29, 1999. Three public information and comment meetings were held on February 16, 18, and 22, 1999 at Waverly, Tennessee; Cherokee, Alabama; and Gallatin, Tennessee respectively. Comments were received from three federal and three state agencies, two corporations, and eight individuals. After considering all comments, TVA revised the EIS appropriately. The Final EIS was distributed to commenting agencies and the public on May 13, 1999. A NOA of the final EIS was published by EPA in the Federal Register on May 21, 1999.

Alternatives Considered

Alternative methods of meeting TVA's future electrical generation capacity requirements were evaluated in Energy Vision 2020. One of the selected methods was to construct additional electric generation capacity within the TVA system. Tiering from Energy Vision 2020, to address the peaking capacity additions, two alternatives were evaluated: a No Action Alternative and an Action Alternative. Under the No Action Alternative, TVA would not construct additional peaking generation capacity and would not construct or upgrade transmission lines or natural gas lines connecting to the new facilities to the TVA transmission system and fuel supplies. Instead, TVA would select another fossil alternative evaluated in Energy Vision 2020, such as an option purchase agreement or spot market purchases. This would not necessarily preclude development and construction of additional generating capacity in the future by TVA or suppliers of power to TVA. However, this would be uncertain at this time. Under the Preferred Alternative, TVA would construct peaking capacity additions of 340 MW at both Gallatin and Johnsonville Fossil Plant sites, increasing the total peaking capacity of the TVA system by 680 MW. Each site would receive four simple-cycle combustion turbines (CT) with a per unit capacity of 85 MW. These CTs are designed to operate with dual fuel capacity firing either natural gas or low sulfur distillate fuel oil to maximize fuel flexibility and lower operational cost. The CTs at both sites would be equipped with dry low nitrogen oxides (NOX) burners for natural gas firing and would use water injection for NOX control when firing No. 2 distillate oil. The peaking capacity additions are proposed to be completed and operational by June 2000. In addition to the peaking capacity additions, associated transmission lines serving as a connection to TVA's power distribution system would be constructed and or upgraded.

Decision

TVA has decided to implement the Preferred Alternative at Gallatin and Johnsonville fossil plant sites, because it would add a total capacity of 680 MW to the TVA power system with minimal environmental impacts and would be more cost effective than constructing additional capacity at the Colbert Fossil Plant in Colbert County, Alabama. TVA will also build and upgrade the associated transmission lines serving as a connection to the TVA power distribution system. This will help TVA meet the projected demand for electricity in its service area as well as maintain reliable service to TVA customers.

Environmentally Preferred Alternative

TVA has concluded that the Preferred Alternative is the environmentally preferred alternative. Alternatives that included the Colbert Fossil plant required the construction of new or upgraded natural gas pipelines which had additional potential impacts. There is no clear basis for identifying either the No Action or the Preferred Alternative as environmentally preferable to the other. Selection of the No Action Alternative would eliminate potential adverse impacts from TVA's construction and operation of new generation peaking capacity. However, there is no assurance that power purchased by TVA under the No Action Alternative would be produced by existing facilities or by facilities with less environmental impacts than the facilities contemplated by the Preferred Alternative. To the contrary, given the current and projected needs for new power generation, it may be more reasonable to assume the purchased power would be produced by new generating units with unknown environmental cost. Also, by selecting the Preferred Alternative and constructing its own generation units, TVA can better assure that appropriate mitigation measures are employed and that the construction and operation of the new units will comply with all environmental regulations and policies. In addition, the Preferred Alternative may better assure the reliability necessary to meet customer demand.

Environmental Consequences and Commitments

Standard construction and best management practices would be followed in all aspects of the project construction and operation to avoid or minimize adverse environmental impacts. In addition, TVA has adopted the following mitigation measures pertaining to the construction and operation of the peaking capacity additions at Gallatin and Johnsonville: • Air quality impacts of construction dust will be mitigated by sprinkling water on open construction areas and roads to reduce fugitive dust emissions. • Air emission during operation will comply with limits set in the PSD permit to be issued by Tennessee Department of Environment and Conservation (TDEC).

• TVA will use natural gas and low sulfur distillate oil (maximum sulfur content of 0.05%) as fuels. • TVA will install post-combustion emission controls on all CTs. • Best Management Practices will be used at all stream and river crossings by natural gas pipelines and transmission line resagging, reconductoring, and new construction activities. • All wetlands will be avoided by vans, trucks, bulldozers and other equipment used to access points along transmission ROW where resagging and reconductoring activities are required. In no case will equipment pass through wetlands. • Discharges to surface waters will comply with limits set in NPDES permits issued by Tennessee Department of Environment and Conservation. • Stormwater will be managed in accordance with Storm Water Pollution Prevention Control and Countermeasure plans. • A TVA botanist will delineate a 50 feet buffer around each population of bladderpod (Lesquerella perforata) plant in the Spring Creek bottom area along the Gallatin to Lebanon Industrial Park ROW. No construction related traffic, vehicular or pedestrian, will be allowed within the delineated buffer area. Botanists from TVA and TDEC will meet on site with the transmission line reconductoring project engineer or project manager to emphasize the significance of the bladderpod populations and the importance of enforcing the restrictions of maintaining the non-intrusive 50 feet buffer zone. If any activities relating to the reconductoring of the transmission line through the Spring Creek bottom area are modified to the extent that these activities may directly or indirectly impact this species, TVA, U.S. Fish and Wildlife Service, and TDEC would meet to establish a strategy to protect the species. • TVA will use BMP techniques in accordance with TVA guidelines for environmental protection (Muncey 1992) during the construction of transmission lines. • Transmission line and natural gas pipeline ROW will be revegetated where natural vegetation is removed. • TVA will avoid the removal of unique vegetation. • Construction delivery trucks will not be loaded beyond legal limits and will meet all safety standards. Hauling will comply with all state, federal, and local ordinances. • Impacts on cultural resources will be mitigated in accordance with the Memorandum of Agreement (MOA) between TVA and the Tennessee State Historical Preservation Officer and with Section 106 of the National Historical Preservation Act (NHPA). All proposed transmission line ROWs that require reconductoring, resagging or new construction will be surveyed for cultural, archaeological and historic resources.

Dated: June 28, 1999. Joseph R. Bynum, Executive Vice President, Fossil Power Group. [FR Doc. 99-18452 Filed 7-19-99; 8:45 am] BILLING CODE 8120-08-P