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S O U T H P I E R I M P R O V E M E N T P R O J E C T 0 1M A Y 3 0 , 2 0 1 2

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Gowanus Generating Station

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The South Pier Improvement Project

The South Pier Improvement Project (South Pier) is a shovel-ready project with all major permits

designed to provide power to the Gowanus and Greenwood areas. Building the South Pier at the

Gowanus Generating Station at 29th Street and 2nd Avenue would reduce existing air emissions

by approximately 49% while providing an increase in needed electric generating capacity of ap-

proximately 100 MW in the highest-priced, most electrically constrained area of Brooklyn, in New

York City. The South Pier was designed with an awareness of the environment and incorporates

input from the community. The project was designed by renowned green architect Bob Fox of

Cook+ Fox Architects, is planned to achieve LEED certification by the U.S. Green Building Coun-

cil, and has been modified to incorporate climate adaption considerations.

Building the project will create temporary construction jobs and three to five permanent incre-

mental jobs, improve the environment, use the most up-to-date electric generating technology

available and provide affordable energy at peak hours.


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New York State Energy Highway Request for InformationResponse by Astoria Generating Company, a USPowerGenerating South Pier Improvement 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 well-

being 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 South Pier Improvement Project (South Pier) is a shovel-ready project with all necessary per-

mits, a project that meets the Request for Information (RFI) criteria perfectly. The benefits of the

South Pier include a reduction of existing air emissions by approximately 49% while providing an

increase in needed electric generating capacity of approximately 100 MW in a constrained sub-

load pocket. It will create numerous temporary construction jobs and three to five permanent

jobs, improve the environment, use the most up-to-date electric generating technology available

and provide affordable energy at peak hours.

Astoria Generating Company, L.P., a USPowerGen CompanyJohn Reese, Senior Vice President 300 Atlantic Street, 5th FloorStamford, Connecticut [email protected] 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 gen-

erating facilities in areas with competitive wholesale markets. The management and operation

teams at USPowerGen and AGC have extensive experience in doing business in New York City

and in operating and developing generating facilities as well as implementing complex major

projects.

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

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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 Facil-

ity 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, ramp-

ing 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 that provides peaking

power and provides 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 indi-

vidually submitted in response to the RFI. The subject of this RFI submission is the South Pier.

Additional information regarding the South Pier can be obtained at

http://www.uspowergen.com/projects/south-pier/.

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The USPowerGen Narrows


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Type of proposed project

Electric Generation

Size of proposed project, with expected capability in energy and capacity

South Pier is designed to have a capacity and energy output of 100 MW.

Proposed project location

The fully permitted South Pier is located in NYISO Zone J, Sunset Park, Brooklyn, New York at

the site of the existing AGC Gowanus Gas Turbine Facility at 29th Street and 2nd Avenue. The

project is permitted on an earthen pier owned by AGC and directly adjacent to the existing float-

ing generating facilities.

Fuel source and availability of fuel/infrastructure, as appropriate

The primary fuel for the South Pier will be natural gas with Ultra Low Sulfur Diesel (ULSD) back-

up. The South Pier Improvement Project will use the existing gas infrastructure for supply.

Earliest date project can be operational

The South Pier is fully permitted and awaiting construction. A contractor was competitively se-

lected in 2010. Upon a notice to proceed, South Pier would be operational in 25 months.

Experience, market availability and suitability of project technology

South Pier will utilize the General Electric LMS100 (LMS100), the first modern production gas

turbine in the power generation industry to employ off-engine intercooling technology with the

use of an external heat exchanger. The LMS100 provides the highest simple cycle efficiency

available in the power industry today. The LMS100 is also characterized by highly efficient com-

bustion. Air is compressed through aerodynamically improved blades and flow channels until

it reaches the environmental combustor combustion zone. The fuel and air are mixed through

tangential inlet slots on the environmental combustor burner cone to form the lean-premix fuel.

The fuel is burned in a controlled, efficient process, which results in a low-temperature, stable,

single-flame halo. In the sequential environmental combustor zone, the remaining fuel is injected

into each combustion chamber vortex to provide additional premixing. This combustion technol-

ogy minimizes nitrogen oxides (NOX) formation. The LMS 100 has become the industry standard

for peaking technology. The quick start, load following and cycling capabilities paired with the

high efficiency, low environmental impact of these units makes the technology uniquely quali-

fied for the urban environment in New York City and for the highly congested sub-load pocket in

Gowanus. The units are in full production and are generally available. AGC has been monitoring

availability and will establish a firm queue position when economically justified.

Description of Proposed Project: South Pier Improvement Project

The South Pier is proposed by the AGC to improve the Gowanus Gas Turbine Facility. Not only

will the project add 100 net new megawatts (MW) of cleaner, state-of-the-art electric generating

equipment to the south pier, but it will reduce the actual net emissions from the AGC facilities in

Sunset Park (including the Gowanus Gas Turbine Facility and the Narrows Gas Turbine Facility,

located nearby at 53rd Street at the waterfront in Brooklyn).

The South Pier consists of two distinct components: the installation of one General Electric (GE)

LMS100 combustion turbine/electric generator set with ancillary components and the imple-

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mentation of an overall facility emissions reduction strategy. The primary benefits of the South

Pier are that it will provide additional cleaner electric generation while reducing the actual net

emissions from the AGC facilities in Sunset Park for the regulated pollutants, including carbon

monoxide (CO), volatile organic compounds (VOC), particulate matter (PM) with an aerodynamic

diameter of 10 microns or less (PM10), PM with an aerodynamic diameter of 2.5 microns or less

(PM2.5), NOX, and sulfur oxides (SOX). NOX and SOX are precursors to PM2.5 formation and

NOX is also a precursor to ozone (O3) formation. These air quality benefits will be achieved

through a coordinated emission reduction strategy that includes the implementation of enforce-

able permit limits and emission control technologies.

In addition to the primary benefit of reducing emissions, AGC has committed to implement sev-

eral energy efficiency and environmentally sensitive design concepts into the South Pier and has

also incorporated Climate Adaptation considerations working with the Columbia Climate Center

Earth Institute. These strategies are intended to reduce the environmental effects of the facility

further and promote innovative design of a modern power generating facility. The environmen-

tally sensitive design strategies to be employed at the South Pier include the use of solar arrays,

hybrid electric vehicles, plantings throughout the site, conversion of all existing units from #2

oil (the grade of liquid fuel for the existing units), to ultra low sulfur diesel (ULSD) (as a backup

fuel) for the LMS100, collection and reuse of rainwater for irrigation, installation of green roofs

and walls, and enhancement of waste recycling programs. The new structures will be designed

to achieve Leadership in Environmental and Energy Design (LEED) certification and a biophillic

design. The existing structures will be reviewed and upgraded to achieve LEED certification for

existing buildings, as allowed. The LMS100 will operate as a simple-cycle, peaking power plant.

The facility will run when electrical demand is high (during peak periods) and when there are

conditions that require the facility to be operational for grid support and reliability. The LMS100

is nominally rated to produce approximately 100 MW of electric power under typical operating

conditions. The South Pier utility interconnections include an existing natural gas pipeline, a 138

kilovolt (kV) electric transmission line to the existing, adjacent utility switchyard, and existing wa-

ter supply and sanitary wastewater discharge pipelines. The existing utility infrastructure at the

Gowanus Gas Turbine Facility will minimize environmental impacts associated with the construc-

tion of new interconnects.

The South Pier responds to the objectives outlined in the RFI by:

Reducing constraints on the flow of electricity to and within the downstate area;

Assuring long term reliability of the electric system; and

Increasing efficiency of power generation, particularly in densely populated urban areas.

Further, it accomplishes this while reducing emissions and rebuilding critical

New York infrastructure.

The South Pier is a 100 MW unit of new, cleaner, state-of-the-art electric generating equipment

at the Gowanus Gas Turbine Facility south pier which will reduce the actual net emissions from

Gowanus and Narrows, the two AGC facilities in Sunset Park. The South Pier is designed to meet

the needs of the immediate communities within the Gowanus and Greenwood “sub-load pocket”

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within the City’s electric transmission and distribution system as well as provide efficient peaking

power supply during times of high system demands to the City. A sub-load pocket is essentially

a load pocket within a load pocket – an area that doubly needs efficient, local power generation.

These constraints have consistently made the Gowanus and Greenwood sub-load pockets the

highest priced points in New York City. Much of the generation capacity that supplies Brooklyn

on a daily basis is located outside the Borough (i.e., New Jersey and other parts of New York) and

flows through interconnections across Staten Island or directly into Brooklyn. When those trans-

mission lines are carrying a very heavy electric load or generation outside the load pocket is not

available, it is not possible to supply all local needs from remote areas. During those times, much

of Southwest Brooklyn relies on generation capacity on the Brooklyn waterfront. This generation

is all older and less efficient than the South Pier. The South Pier will meet the current and future

increasing demands for electricity in this load pocket, support the broader grid system reliability

and reduce electricity costs across the City.

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 bal-

ance sheets of AGC and USPG, potentially in partnership with outside investors. Debt financing

will be funded through the project finance bank market.

A standard project financing would include a tenor of 5 – 8 years with an initial equity commit-

ment of between 40% - 50% of the total project funding. A long-term power purchase agree-

ment of at least 5-years would be important to securing 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 poten-tial ancillary services and environmental attributes that may be available for sale of delivery.

The project has a nameplate rating of 100 MW. It is anticipated that the project will be capable of

providing 93 MW UCAP in the summer and 97 MW of UCAP in the winter. In addition, the project

will be capable of providing quick start, black start, voltage support and reserves.

Potential sources of project revenue – As examples, whether the project is currently or ex-pected 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 (ie, energy, capacity, ancillary services and environmental attributes, if applicable).

The project utilizes the same generation technology as the Zone J – NYC demand curve proxy

unit and possesses similar but favorable economics. As such, all-in pricing for project products

is expected to approximate the $265/kW-yr recently established as the all-in pricing equivalent

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for the proxy unit used to establish the current demand curve, adjusted for inflation. South Pier

offers a number of competitive advantages given that the existing AGC owned and operated

generating facility at Gowanus will share infrastructure, as well as staff and services. The project

is also located in one of the most congested, and hence, expensive sub-load pockets in New

York which provides a relative pricing advantage as well.

Risks 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, in-

cluding a natural gas pipeline, 138 kilovolt (kV) electric transmission line, utility switchyard, water

supply, sanitary wastewater discharge pipelines, oil storage, and existing operations and main-

tenance 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, which is tailored

specifically for LMS100 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.

Federal, State and local permits needed to develop and operate the project

The development and operation of the South Pier required the following primary federal, state,

and local regulatory agency notifications, actions, permits and approvals, all of which have suc-

cessfully been approved or completed:

NYSDEC State Facility Air Permit. 6 NYCRR 201-51,.

NYSDEC Acid Rain Permit. (Title IV). 6 NYCRR 201-6.

NYSDEC Title V Permit Modification. 6 NYCRR 201-6.

Updated SPCC due to new piping. 40 CFR 112 and 6 NYCRR 612-6142.

NYSDEC SPDES Permit Modification for Additional Stormwater, including an update to the existing Best Management Practices (BMP) plan. 6 NYCRR 7502.

NYSDEC SPDES General Permit for Stormwater Discharge from Construction Activity (including a Stormwater Pollution Prevention Plan) GP-02-01, 6 NYCRR 7502.

DEP Certificate of Operation. 15 RCNY Chapter 2 and NYC Administrative Code, Title 24 Air Pollution Control2.

NYSDEC Chemical Bulk Storage (aqueous ammonia 19%). 6 NYCRR 596-5992.

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1 The potential to emit for the South Pier will be less than major modification threshold emission levels. Thus, Preven-tion of Significant Deterioration (PSD) and Nonattainment New Source Review (6 NYCRR 231, including the proposed revisions were not required.


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NYSDEC Petroleum Bulk Storage. 6 NYCRR 6132.

DEP water use connection/approval2.

Federal Aviation Administration (FAA) Notice of Proposed Construction2.

FDNY approvals2.

Modification of Existing United States Coast Guard (USCG)/United States Environmen-tal Protection Agency (U.S. EPA) Facility Response Plan2.

City Department of City Planning (DCP) WRP Consistency Review.

New York State Department of State (NYSDOS) Coastal Zone Management Consist-ency Review.

NYSDPS Certificate of Public Convenience and Necessity, pursuant to Section 68 of the Public Service Law.

Permitting status, including NYISO interconnection status

As stated above, all permits and approvals required to begin construction of the South Pier

have been received. On May 30th, AGC submitted a new Interconnection Queue request to the

NYISO as well as the requisite security deposit for necessary studies. A full System Reliability

Impact Study had been completed for the South Pier. However due to an inability to begin con-

struction based on market conditions, participation in Class Year 2011 was declined, requiring

the re-submittal.

Key uncertainties in federal, State and local project permitting and suggestions for how such uncertainties can be addressed

There are no uncertainties related to the permitting of the South Pier. As stated above, all per-

mits and approvals have been received.

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 issues or challenges facing the South Pier. AGC is simply waiting for power supply and pricing conditions.

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 South Pier will be constructed on previously disturbed industrially zoned land that is owned by AGC.

Projected In-service

A timeline for development of the potential project, culminating in the commercial operation of

the project, is attached as Attachment A.

OT H E R C O N S I d E R AT I O N S

2 Operations approvals to be obtained at time of construction.


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Interconnection

Potential interconnection point(s)

The South Pier will be connected to the existing Gowanus substation located approxi-mately 40 feet east of the South Pier site via a 138 kV line. As an alternative, replacing the interconnection point of one of the two oil fired barges at the AGC Gowanus facility and removal of the existing units will also be studied.

Respondent’s assessments of why such interconnection point(s) are optimum, from both an eco-

nomic and reliability perspective.

As detailed earlier in the “Project Justification” section, the South Pier will be connect-ed into the Greenwood “sub-load” pocket. The load pocket is frequently constrained and, as a result, is generally at a price premium to other locations within NYC. The South Pier will displace higher heat rate units within this load pocket, lowering average prices as a result.

Respondent’s assessment of whether the energy and/or capacity is deliverable to the bulk elec-

tric system

AGC has determined that with a relatively minor amount of system upgrades both the energy and capacity of the South Pier are deliverable to the electric grid.

Technical

Anticipated life of facility components and Warranties

The South Pier will be designed for a useful operating life of approximately 30 years. The equipment will be procured from major manufacturers, including GE, with appropri-ate warranties.

Construction

Opportunities for New York-based manufacturing and/or assembly of equipment

Construction of the South Pier will result in a substantial expenditure as outlined in the financial section, of which more than one third is expected to be spent in the local New York Metropolitan Area. A Cornell study estimates additional economic activity by ap-plying the output multiplier (1.66). While this multiplier has some limitations, it is reason-able to assume half again as much economic activity due to the local expenditures. This benefit is anticipated to be in the tens of millions of dollars.

Description of potential contractual arrangement(s) during construction

This project will be conducted under an EPC arrangement.

Availability of labor, materials and installation equipment

USPG has determined that there is adequate labor, material and equipment to con-struct 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

To the extent the facility is to be decommissioned, AGC or a successor entity will be the

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responsible party. However, during the life of the South Pier, maintenance and refur-bishment of the components will be required. Near the end of its useful life, the primary equipment of the South Pier 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 South Pier, it is reasonable to expect that new, even more efficient, state-of-the-art equipment could be installed at the South Pier site in lieu of refurbishment. To the extent that the transmission and distribution system in Sunset Park and the City remains similar to that which currently exists, it is likely that the South Pier site will remain a critical location for electric power generation. The South Pier 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.

Operation

Projected or guaranteed project availability and/or energy production over project life

The South Pier is anticipated to have an availability of well over 90% which is in line with other LMS 100 installations.

Safety and emergency considerations

Certified by the OSHA as a “Star” site under the Voluntary Protection Program. The fa-cility 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 Gowanus 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.

Socio-Economic

Socioeconomic effects of the South Pier were evaluated in the Draft and Final Environmental

Impact Statements prepared in March and September of 2009.

Potential benefits to and adverse impacts on the local economy

Benefits are noted above in the “Construction” section. Also, the South Pier will have a positive impact on City and state collection of sales taxes revenues. The Borough of Brooklyn will benefit indirectly through the disbursement of tax receipts for program support. Sales tax revenues are collected by the City of New York and the State of New York. In addition, the MTA collects a 0.25% sales tax on business and utility taxes within the city. In total, construction of the South Pier is expected to generate sales and busi-ness taxes, which will be divided between the state, the MTA, and the City of New York.

The City will also benefit from the utility tax which is levied based on the gross income of the generating facility on a monthly basis. The extent of increased revenues can-not be determined at this time, particularly given the nature of the competitive energy market in New York State.

Potential impacts on real estate and property values

The site of the South Pier is currently disturbed and is used for electric generation. The


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South Pier will improve the site, which is in an industrial zone and, therefore, no adverse impacts will result to real estate or property values.

Impact on jobs, such as retention, creation of new jobs (temporary and permanent) and retraining

opportunities

Temporary employees will be needed over the course of the over one year of construc-tion of the new facility. An effort will be made to recruit locally for jobs. 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 9-month construction period.

Once the South Pier is operational, it is expected to require additional full-time staff of between 3 and 5 employees. The total annual payroll for this additional workforce is estimated to be $500,000 per year. In addition to direct payroll, AGC paid over $100 million to New York businesses and government for operation/maintenance, goods, services and taxes over the course of the last twelve months. All else being equal, 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 construction and operation of the South Pier is not anticipated to result in any sig-nificant 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.

Tourism impacts

There are no impacts on tourism.

Aesthetic issues

A visual impact assessment was conducted for the project and presented in the Final Environmental Impact Statement. In summary, the screening provided by the existing built environment, including sometimes massive industrial and commercial structures in the vicinity of the South Pier site, and the relatively low heights of the proposed South Pier structures compared to the heights of the adjacent structures immediately to the southwest and northeast of the site, results in minimal visual impacts to those visually sensitive resources that will experience at least some South Pier site visibility.

South Pier site structures have been designed to visually integrate the project with the surrounding landscape and serve multiple functions to the greatest extent pos-sible. Compatible colors will be used for the stack, tanks, and site buildings to mitigate potential visual impacts. In addition, landscape and architectural treatments are being incorporated into the South Pier 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 concerns into NYSDEC’s


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permitting process and was presented in the FEIS. The results and conclusions were that the South Pier will not contribute any additional environmental burden on the local Potential Environmental Justice Area. The project will not contribute to the community’s air pollution burden and will in fact decrease the annual actual emissions now coming from the AGC owned facilities and therefore will reduce the contribution of AGC on air quality components that may contribute to environmental and health impacts. This is why the South Pier had support from local environmental justice leaders through the permitting process.

Furthermore, the South Pier will supply greatly needed energy during peak periods, thereby increasing reliability and uninterrupted electrical generation service for area businesses, residences and the City of a whole. The consequences of the South Pier include a reduction of existing emissions, no significant noise levels, de minimis in-creases in traffic levels associated with project operations, and a visually sensitive de-sign in order to integrate the South Pier with the surrounding landscape.

Smart growth considerations

The South Pier supports the Smart Growth principles 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 envi-ronmentally sensitive design considerations.

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Environmental

Environmental benefit to region

The South Pier will have minimal environmental impact and will result in an overall net decrease in air emissions. AGC analyzed the City’s energy system, the expected op-eration of the LMS100 and the effect of the LMS100 on the existing system. This model predicted the environmental benefits associated with running the existing generating facilities less. Results indicate that the South Pier will result in lower emissions through-out the City for all major pollutants, including NOX, SOX, PM2.5 and PM10, and carbon dioxide (CO2) based on the predicted economic dispatch of the South Pier.

Projected reductions in greenhouse gases

The addition of the South Pier in combination with the operating conditions to be im-posed on the existing AGC Sunset Park area facilities, will result in a net reduction in CO2 of approximately 13%.

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 it 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 South Pier is a state-of-the-art energy project that incorporates en-vironmentally sensitive design attributes aesthetic enhancements, renewable energy technologies, and resource conservation. The benefits of the South Pier include a re-duction of existing air emissions by approximately 49% while providing an increase in needed electric generating capacity of approximately 100 MW in a constrained sub-load pocket. All potential environmental effects of a power generating project of this type have been reviewed by AGC including air quality impacts, noise impacts, traffic impacts, wildlife impacts, water impacts, and visual impacts and all analysis have dem-onstrated insignificant or beneficial impacts.

In approving the project, the NYSDEC adopted a SEQR finding that the “…Project has been designed, and where necessary revised to avoid, minimize or mitigate any ad-verse environmental impacts….”

In addition to the positive emissions benefits of the South Pier, the South Pier structures have been carefully designed to visually integrate with the surrounding landscape and to serve multiple functions to the extent possible. Compatible colors have been used for the stack, tanks, and site buildings to mitigate potential visual impacts and land-scape and architectural treatments have been incorporated into the South Pier design. Visual simulations prepared indicate that the South Pier will not have any adverse visu-al impacts and that it will have very little visibility from virtually all vantage points. From locations where components of the South Pier can be seen, the view will generally be enhanced compared to the existing industrial and energy-related structures in the im-mediate vicinity. The South Pier will not result in any adverse visual or other impacts to significant historical properties, including aboveground historic architectural resources


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Some of the environmentally friendly features of the South Pier slated to be included:

1. The use of solar panels to offset onsite energy loads including assisting in charging black start batteries.

2. Hybrid electric vehicles to replace station vehicles at retirement, where possible.

3. Plantings throughout the site to enhance the visual effects and consume CO2.

4. Conversion to ultra low sulfur diesel (ULSD) for the existing units and use of ULSD (as a back up fuel) for the LMS100 to reduce SO2 and PM2.5 emissions.

5. Structures constructed of environmentally-friendly materials including local, recycled, and low- or no-VOC products.

6. Review/modification of conservation efforts in the existing facility (i.e., replacing lights to energy efficient fixtures/bulbs).

7. Use of ULSD in construction equipment.

8. Collection and reuse of rainwater for irrigation.

9. Installation of green roofs and walls.

10. Enhancement of existing AGC waste recycling programs.

11. New structures designed to achieve Leadership in Environmental and Energy Design (LEED) certification and a biophillic design.

12. Existing structures upgraded to achieve LEED certification for existing buildings, if possible.

Project Contract/Request for Proposal (RFP) Status

An earlier pre-permit version of this project was submitted in response to a New York Power

Authority Request for Proposal in December of 2007 entitled “RFP lTS#5 To Provide Long-Term

Supply of In-City Unforced Capacity and Optional Energy”. It was not selected.

Public Outreach and Stakeholder Engagement

Anticipated stakeholder groups and affected individuals

Potential issues to be addressed

Public outreach plan

During the successfully completed environmental review and permitting process, AGC implemented an active process to inform the local community and the broader public about the South Pier and invite vigorous participation in the permitting and environ-mental review processes.

Because the NYSDEC has identified the Sunset Park community as a Potential Environ-mental Justice Area (PEJA), this outreach was conducted in accordance with NYS pro-cedures established in Commissioner Policy 29 (CP-29). The efforts outlined by AGC have been proactive and extensive to engage a wide array of community organizations and residents in the Sunset Park area. The details of AGC’s public outreach and stake-holder engagement process, including a list of stakeholder groups and individuals and a Public Participation Plan for the South Pier can be found at the following internet weblink: http://www.uspowergen.com/projects/south-pier/


A S T O R I A

G E N E R A T I N G

This project web site is one component of the outreach effort, incorporating:

Reports and analyses on the South Pier Improvement Project;

Preparatory materials for public briefings and meetings;

Fact sheets and Frequently Asked Questions (FAQs) in the languages predomi-nant in the Sunset Park area;

Summary reports from public meetings;

Regular reports to NYSDEC on implementation of the Public Participation Plan;

Draft and final Environmental Impact Statements (EIS);

Contact information for AGC representatives;

Opportunities to post and receive public comments on the Improvement Project; and

Calendar of regulatory process milestones, public meetings.

For those who do not have access to the internet, documents were placed in con-venient repositories and a toll-free number has been set up to receive comments and questions.

Visitors are invited to log onto this web site on a regular basis to review progress re-ports, which will be prepared by AGC in accordance with a detailed schedule that has been agreed upon with Stakeholders. These progress reports summarize the outreach activities during the previous period and respond to comments and questions collected on the website or by phone.

In addition to the project calendar available on this web site, notifications were made to stakeholders via email and US mail to the Stakeholder list and via postings to the Com-munity Board 7 websites. Public notices of the meetings were also given in appropriate local weekly newspapers, one daily newspaper of general circulation and, if required, the Environmental Notice Bulletin.

S O U T H P I E R I M P R O V E M E N T P R O J E C T M A Y 3 0 , 2 0 1 2

A P P E N D I X A

P R OJ E C T T I M E l I N E

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Notice to Proceed

Equipment Procurement

Sitework

Equipment Installation

Testing

In Service

Financing Process

Interconnection Process

Construction Timeline

PREVIOUSLY STUDIED

2012 2013 2014 2015

South Pier Timeline with Major Milestone Events.

A S T O R I A

G E N E R A T I N G

Documents

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