PROPOSED STIPULATION NO. 1: AIR QUALITY & METEOROLOGY

The Application will examine the impacts of criteria pollutants and other NYSDEC regulated pollutants (Study) and non-criteria pollutants (Non-Criteria Pollutant Study) from the Project on air quality. The components of the Study will include identification of climate and air quality conditions, an inventory of the Project's proposed emission sources, and an assessment of Project technology and design, emissions, impacts, and certain cumulative impacts. The components of the Non-Criteria Pollutant Study will include identification of emissions constituents, an assessment of Project impacts, and an assessment of certain cumulative impacts. If necessary, the Non-Criteria Pollutant Study also will include a multipathway risk assessment.

1. To the extent consistent with the following paragraphs contained in this stipulation, the methodologies, standards, and definitions for assessing air quality will follow procedures outlined, and use data contained, in the following documents:

For performing air quality dispersion modeling:

New York State Department of Environmental Conservation (NYSDEC), Air Guide-26, NYSDEC Guidelines on Modeling Procedures for Source Impact Analyses (December 1996).

NYSDEC, Air Guide-36, Emission Inventory Development for Cumulative Air Quality Impacts Analysis (June 1995), if necessary.

Air Modeling Protocol to be established to the satisfaction of NYSDEC and DPS Staff specifically for this case (hereinafter Air Modeling Protocol), and once approved, to be appended hereto as Attachment I.

NYSDEC, Air Guide-12, Review of Major Sources (for PSD and increment consumption only).

USEPA, Guidelines on Air Quality Models, EPA450/12-78-027R USEPA, Appendix W of 40 CFR Part 51.

New York City, Mayor's Office of Environmental Coordination, City Environmental Quality Review Technical Manual (December 1993).

For determining stack height:

USEPA, Guidelines for Determination of Good Engineering Practice Stack Height (EPA Technical Support Document for the Stack Height Regulations), Document Number EPA-450/4-80-023R (June 1995).

For impacts on soils and vegetation:

USEPA, A Screening Procedure for the Impacts of Air Pollution Sources on Plants, Soils, and Animals, Document Number EPA-450/2-81-078 (1981).

For quantification and assessment of the Project's contribution to the New York State total deposition of sulfates and nitrates, in accordance with the State Acid Deposition Control Act:

Source Specific Acidic Deposition Impacts for Permit Applications - Memorandum from Leon Sedefian to IAM Staff (March 4, 1993). For performing visibility degradation modeling per Prevention of Significant Determination (PSD) regulations:

USEPA, Workbook for Plume Visual Impact Screening and Analysis. Document Number EPA-454/R-92-023 (October 1992).

For any required control technology evaluations:

US EPA 40CFR Part 60, Subpart GG; US EPA 40CFR Section 52.21; NYSDEC 6 NYCRR Subpart 231-2; US EPA BACT/LAER Clearinghouse; US EPA, Draft New Source Review (NSR) Workshop Manual (October 1990); and US EPA 40CFR Part 63, Subchapter B.

For non-criteria pollutant ambient air limitations and benchmarks: NYSDEC.DAR-1.AGC/SGC Tables. Division of Air Resources, Bureau of Stationary Sources, July 12, 2000.

USEPA's On- Line Integrated Risk Information System (IRIS) Database.

USEPA's Annual Health Effects Assessment Summary Tables (HEAST).

USEPA's National Center for Environmental Assessment (NCEA).

US Department of Health and Human Services, Agency for Toxic Substances and Disease Registry (ATSDR).

Risk-based ambient air criteria developed by the New York State Department of Health (DOH) or other recognized organizations, such as the World Health Organization.

CRITERIA POLLUTANTS

2. The air quality Study will include:

(a) An assessment of existing climate data for the Project area. Data will be obtained from climate summaries prepared by the National Oceanographic and Atmospheric Administration for LaGuardia Airport as described in the Air Modeling Protocol, the average and extreme of wind direction speed, temperature, and precipitation for the Project site. (b) An assessment of existing air quality levels and air quality trends for criteria pollutants in the region surrounding the Project, including air quality levels and trends taken from NY, New Jersey and Connecticut air quality summaries and air quality trend reports as described in the Air Modeling Protocol. For its PSD Application to the Department of Environmental Conservation, the Applicant shall submit a request for a waiver approval for PSD pre-construction monitoring, which will be issued by EPA. The PSD application shall be submitted upon waiver approval. (c) An assessment of the impacts from quantifiable criteria pollutant emissions, including those generated during construction of the Project. (d) A control technology assessment for pollutants subject to Prevention of Significant Deterioration (PSD) review and Nonattainment New Source Review (NNSR) promulgated under 40 CFR 52.21 and 6 NYCRR 231, respectively, to determine the best available control technology (BACT) and lowest achievable emission rate (LAER) for the applicable pollutants. NOX BACT will include an analysis of Selective Catalytic Reduction (SCR) and SCONOX. New stationary combustion turbines are subject to 40 CFR part 63 Subpart B - Requirements for the Control Technology Determinations for Major Sources in Accordance with Clean Air Act Sections 112(g) and 112(j). This regulation requires a case-by case determination of the Maximum Achievable Control Technology (MACT) for major sources, which exceed the annual emission thresholds of 10 tons per year for an individual Hazardous Air Pollutant (HAP) or 25 tons per year for total HAP emissions. If the Project HAP emissions exceed the regulatory thresholds, an analysis will be conducted to determine an emission limit or control technology associated with the best controlled similar source. The Applicant will also provide estimated HAP emission rates with and without an oxidation catalyst. The analyses required per Part 231-2 in addition to the "top down" BACT per PSD rule will be provided. (e) Pursuant to Air Guide 26, an assessment of an optimal stack height taking into consideration Good Engineering Practice (GEP) stack height for the Project and air quality related values, visual impacts, and other considerations such as aesthetics and proximity of LaGuardia Airport. (f) An assessment of stack emissions of criteria pollutants and other regulated air pollutants, stack emissions being provided in hourly and annual estimates based on manufacturer's data, available emission factors, control equipment efficiencies, and other data or regulatory specifications related to the design of the Project and the regulatory guidance in Paragraph No. 1. (g) A calculation of the number of NOx and VOC emission offsets to be obtained at a 1.3 to 1.0 ratio; a calculation of the number of CO emission offsets (if any) to be obtained; and how those offsets will be obtained in accordance with 6 NYCRR 231. Also, a discussion of the applicability and requirements of the "cap and trade" program pursuant to the proposed 6 NYCRR 204 and/or 227-3 and the federal Title IV acid rain program. An acid rain permit application will be submitted to NYSDEC and will be provided. (h) An assessment of the potential impacts to ambient air quality that may result from criteria pollutant emissions from the Project, the modeling to be done in accordance with the Air Modeling Protocol, and a computer file output of the dispersion modeling results shall to be provided to NYSDEC and DPS Staff. (i) An assessment of visibility impacts from stationary combustion turbine emissions of NOx and PM10 from the Project, as described in the Air Modeling Protocol. (j) An assessment of the impacts to soils and vegetation that may result from criteria pollutant emissions of the Project using EPA screening criteria. (k) An assessment of the impacts of any economic growth that may result from development of the Project in accordance with the Air Modeling Protocol. (l) An assessment of the predicted air quality impacts from the dispersion modeling analyses to the Significant Impact Levels and Prevention of Significant Deterioration (PSD) increments and air quality standards. (m) In accordance with the State Acid Deposition Control Act, an assessment of the Project's contribution to the New York State total deposition of sulfates and nitrates at defined sensitive receptors as identified in the Air Modeling Protocol. (n) A cumulative source impact analysis for any criteria pollutant for which the Project has impacts above Significant Impact Levels. The additional sources to be analyzed to determine whether the Project, in conjunction with existing and proposed major sources, will cause or contribute to exceedances of applicable national or state ambient air quality standards (NAAQS and NYAQS) or PSD increments, will include those identified as "nearby" existing sources, as defined in the EPA Modeling Guidelines and NSR Workshop Manual, and by the Air Guide 26 procedures. The proposed inventory sources also will include all other proposed major electric generating facilities in New York State for which applications have been filed with the Siting Board, and which applications have received a compliance determination from the Siting Board Chairman, and will be limited to those located within a circular area defined by the Significant Impact Area (SIA) of the proposed Project, plus 50 kilometers, at the time of NYSDEC approval of the Project's cumulative source inventory per Air Guide 36 requirements. The inventory of existing major sources shall be developed using data obtained from the NYSDEC and New Jersey and Connecticut. The inventory, if necessary, shall be included as an appendix to the PSD application and verified by the source state or per Air Guide 36 requirements and the Air Modeling Protocol. The PSD application will be submitted only after the inventory is approved by NYSDEC. All information submitted in support of the inventory of nearby sources, including verification worksheets per Air Guide 36 requirements will become public information. Following approval of the major source inventory, no further sources subsequently proposed or modified shall be added. (o) If applicable under section 112 (r) of the Clean Air Act, an analysis of an accidental release scenario for ammonia performed to meet the requirements of USEPA's regulations implementing section 112 (r). (p) An Environmental Justice (EJ) Analysis will be performed as part of the PSD application. The EJ analysis will be based on requirements of Presidential Order 12898 and on guidelines described in an April 3, 2000 letter from Mr. Steven Riva of USEPA Region II to Mr. Leon Sedefian of NYSDEC, per the methodology presented in Air Modeling Protocol.

NON-CRITERIA POLLUTANTS

3. The Non-Criteria Pollutant Study will include:

(a) A review of pertinent available data on non-criteria pollutants that are emitted by combustion sources at the Project, including formaldehyde, ammonia, and any other non-criteria pollutants with emission factors such as those published by USEPA that may be identified after review of available emissions data. The specific source, including publication date, of each emission factor will be clearly identified and referenced in the Application. (b) An assessment of the emission rates for non-criteria pollutants that may be emitted from sources at the Project. (c) An estimation of the maximum potential ground level and elevated receptor air concentrations (short-term and annual averages) of non-criteria pollutants for the Project, quantified using the models and approach as discussed in the Air Modeling Protocol. (d) A comparison of the maximum predicted ground level and elevated receptor air concentrations to benchmark air concentrations for both short-term and long-term exposures. These benchmark air concentrations will include the most recent: 1) NYSDEC Short-term and Annual Guideline Concentrations (SGCs and AGCs); and 2) Health risk-based criteria, to include Reference Concentrations (RfCs) for noncancer effects and air concentrations associated with an incremental lifetime risk of one-in-one million for cancer, obtained or derived from USEPA or other well-recognized organizations as summarized in item 1 of this stipulation. (e) If the maximum modeled air concentration of a non-criteria pollutant from the Project exceeds 10% of the corresponding health risk-based benchmark air concentration for non-cancer effects or is equal to or exceeds the corresponding benchmark air concentration for cancer risk, the Applicant will consult with the NYSDOH to determine if a cumulative air quality analysis is needed in the Application. If such an analysis is required, the Applicant will consult with the NYSDOH and NYSDEC to develop an acceptable approach for performing the analysis. (f) The Application will include an evaluation of the need for a multipathway risk assessment if (1) the maximum modeled air concentration for any non-criteria pollutant from the Project exceeds 10% of the corresponding health risk-based benchmark air concentration, or (2) the maximum modeled air concentration for any persistent, bioaccumulative and toxic non-criteria pollutant exceeds 1% of the corresponding health risk-based benchmark air concentration, and the modeled plume could impact beef or dairy farms, or an area that could reasonably support such farms. The Application will include a multipathway risk assessment for any pollutant that meets either of the above criteria, is persistent in the environment, has the potential to accumulate in soil, water, fish, homegrown vegetables, or beef and dairy products, and, based on the information available in the source identified above in this stipulation, is of significant toxicological concern via the ingestion pathway relative to the inhalation pathway of exposure. If the analysis described above demonstrates that an evaluation of the need for a multi-pathway risk assessment is necessary, the Applicant will consult with NYSDOH.

OTHER ANALYSES

4. The Application will provide a stack plume visibility analysis to assess the predicted extent and frequency of any visible water vapor plumes created by the Project in accordance with procedures set forth in the Air Modeling Protocol. The results of this analysis will be used for the visibility assessment discussed in the Stipulation entitled "Aesthetics and Visual Resources."

5. The Application will include an assessment based on publicly available information of the global warming (global climate change) issue associated with the emission of carbon dioxide and other global warming gases. The assessment will include: 1) a summary of the emission reduction goals of the Kyoto Protocols; 2) an estimate of the proposed facility's annual and life cycle emissions of carbon dioxide and/or other significant global warming gases; 3) a comparison of the Project's emissions with New York State, national and/or global emissions; and 4) a conclusory statement as to the probable importance of the proposed facility's emissions relevant to parts 1-4 above.

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