Notice of Intent To Prepare an Environmental Impact Statement and Notice of Wetlands Involvement for the Abengoa Biorefinery Project Near Hugoton, KS (DOE/EIS 0407)

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[Federal Register: August 25, 2008 (Volume 73, Number 165)]
[Notices]
[Page 50001-50003]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25au08-32]

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DEPARTMENT OF ENERGY

Notice of Intent To Prepare an Environmental Impact Statement and
Notice of Wetlands Involvement for the Abengoa Biorefinery Project Near
Hugoton, KS (DOE/EIS 0407)

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy (DOE).
ACTION: Notice of intent to prepare an environmental impact statement,
conduct a public scoping meeting, and opportunity for public comment;
Notice of Wetlands Involvement.

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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to
prepare an Environmental Impact Statement (EIS) pursuant to the
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et
seq.), the Council on Environmental Quality NEPA regulations (40 Code
of Federal Regulations [CFR] Parts 1500-1508), and the DOE NEPA
regulations (10 CFR Part 1021) to assess the potential environmental
impacts of a project proposed by Abengoa Bioenergy Biomass of Kansas,
LLC (ABBK), to construct and operate a biomass-to-ethanol and energy
facility near Hugoton, Kansas (hereinafter termed ``Abengoa Biorefinery
Project'' or the ``Project''). DOE's proposed action is to provide
cost-share Federal funding to ABBK to construct and operate the
Project. DOE is issuing this Notice of Intent to inform the public
about the proposed action; announce plans to conduct a public scoping
meeting; invite public participation in the scoping process; and
solicit public comments for consideration in establishing the scope of
the EIS, including the range of reasonable alternatives and the
potential environmental impacts to be analyzed.

DATES: The public scoping period begins on August 25, 2008, and will
continue through October 9, 2008. DOE will consider all comments
received or postmarked by October 9, 2008, in defining the scope of
this EIS. Comments received or postmarked after that date will be
considered to the extent practicable. A public scoping meeting will be
held in Memorial Hall at the Stevens County Courthouse, Hugoton,
Kansas, on September 10, 2008 from 6 p.m. to 8 p.m. Written and oral
comments will be given equal weight.

ADDRESSES: Written comments on the scope of the EIS should be directed
to Kristin Kerwin at the U.S. Department of Energy Golden Field Office,
1617 Cole Boulevard, Golden, Colorado 80401. You may also contact Ms.
Kerwin by telephone at 303-275-4968, fascimilie at 303-275-4790, or e-
mail: kristin.kerwin@go.doe.gov. Envelopes and the subject line of e-
mails should be labeled ``Abengoa EIS Scoping Comments.''
    The public scoping meeting will be held on September 10, 2008 from
6 p.m. to 8 p.m. at the following location: Memorial Hall, Stevens
County Courthouse, 200 East 6th St., Hugoton, Kansas 67951-2606.

FOR FURTHER INFORMATION CONTACT: For information on the proposed
project, information on how to comment, or to receive a copy of the
draft EIS when it is issued, contact Kristin Kerwin by any of the means
described in the ADDRESSES section above.
    For further information on the DOE Office of Energy Efficiency and
Renewable Energy Integrated Biorefinery Program, contact Jacques
Beaudry-Losique, Biomass Program Manager, U.S. Department of Energy,
1000 Independence Avenue, SW., EE-2E, 5H-021, Washington, DC 20585,
telephone: 202-586-5188, facsimile: 202-586-1640, e-mail: 
eere_biomass@ee.doe.gov.
    For general information on the DOE NEPA process, please contact:
Carol M. Borgstrom, Director, Office of NEPA Policy and Compliance (GC-
20), U.S. Department of Energy, 1000 Independence Avenue, SW.,
Washington, DC 20585-0103; e-mail: AskNEPA@hq.doe.gov; telephone: 202-
586-4600; leave a message at 1-800-472-2756; or facsimile: 202-586-
7031.

SUPPLEMENTARY INFORMATION:
    Background and Need for Agency Action: The Energy Policy Act of
2005 (EPAct 2005), Section 932, directs the Secretary of Energy to
conduct a program of research, development, demonstration, and
commercial application for bioenergy, including, integrated
biorefineries that may produce biopower, biofuels, and bioproducts.
Section 932 provides that ``the goals of the biofuels and bioproducts
programs shall be to develop, in partnership with industry and
institutes of higher education--
    (1) Advanced biochemical and thermochemical conversion technologies
capable of making fuels from lignocellulosic feedstocks that are price-
competitive with gasoline or diesel in either internal combustion
engines or fuel cell-powered vehicles;
    (2) Advanced biotechnology processes capable of making biofuels and
bioproducts with emphasis on development of biorefinery technologies
using enzyme-based processing systems;
    (3) Advanced biotechnology processes capable of increasing energy
production from lignocellulosic feedstocks, with emphasis on reducing
the dependence of industry on fossil fuels in manufacturing facilities;
and
    (4) Other advanced processes that will enable the development of
cost-effective bioproducts, including biofuels.''
    Section 932(d) provides that ``the Secretary shall carry out a
program to demonstrate the commercial application of integrated
biorefineries. The Secretary shall ensure geographical distribution of
biorefinery demonstration under this subsection. The Secretary shall
not provide more than $100,000,000 under this subsection for any single
biorefinery demonstration. In making awards under this subsection, the
Secretary shall encourage--
    (A) The demonstration of a wide variety of lignocellulosic feedstocks;
    (B) The commercial application of biomass technologies for a
variety of uses, including--
    i. Liquid transportation fuels;
    ii. High-value biobased chemicals;
    iii. Substitutes for petroleum-based feedstocks and products; and
    iv. Energy in the form of electricity or useful heat; and
    (C) The demonstration of the collection of treatment of a variety
of biomass feedstocks.''
    Section 932(d) further directs the Secretary to solicit proposals
for demonstration of advanced biorefineries and to select only proposals
that demonstrate economic viability without Federal subsidy after initial
construction costs are paid and for projects that are replicable.
    In implementing section 932, DOE's goal is to demonstrate that
commercial-scale integrated biorefineries that use a wide variety of
lignocellulosic feedstocks (biomass), can operate profitably once
constructed, and can be replicated. Lignocellulosic feedstock includes
energy crops, corn fiber, wood wastes, agricultural wastes such as corn

[[Page 50002]]

stover, and certain municipal solid wastes. DOE notes that, while the
refining process for ethanol from biomass is more complex than the
refining process for ethanol derived from grain, cellulosic ethanol can
yield a greater net energy benefit and result in lower greenhouse gas
emissions.
    Accordingly, DOE issued a funding opportunity announcement for the
construction and operation of commercial-scale integrated biorefineries
intended to demonstrate the use of a wide variety of cellulosic
feedstocks. On February 28, 2007, DOE announced the selection of six
biorefinery projects for negotiation of financial assistance awards. In
that announcement, DOE proposes to invest up to $385 million in the six
projects over the next four years.
    Abengoa Bioenergy Biomass of Kansas, LLC (ABBK) of Chesterfield,
Missouri, was one of the six applicants competitively selected for
negotiation of award under DOE's funding opportunity announcement.
Abengoa proposed an innovative approach to biorefinery operations that
involves production of a biofuel and of energy in the form of steam
that can be used to meet energy needs and displace fossil fuels such as
coal and natural gas. In addition, siting the facility in Kansas would
qualify Abengoa for state tax credits for biofuels, which would make
the biorefinery a more viable commercial operation.
    DOE granted an initial award to ABBK to advance the conceptual
design; to initiate the permitting process; and to support an
environmental review under NEPA for ABBK's proposed biomass-to-ethanol-
and-energy facility near Hugoton, KS. DOE requires that ABBK fulfill
these design, permitting, and environmental review obligations prior to
deciding whether to cofund the construction and operation phase of the
project. The total anticipated cost of this initial work is $37.5
million of which DOE is funding 40% ($15 million) and ABBK is providing
60% ($22.5 million).
    As described below, DOE is now proposing to negotiate a second
financial assistance agreement for approximately $61 million for the
construction and operation of the biomass to ethanol facility, whose
anticipated total cost is approximately $190.5 million.
    ABBK is also planning to construct and operate a traditional grain-
to-ethanol production facility at the same site that would integrate
the biomass-to-ethanol facility into the overall facility. This grain-
to-ethanol facility would use a traditional starch conversion process
to produce ethanol from grain feedstocks (sorghum or corn) along with
distillers grains with solubles, which is a product. While the
traditional grain-to-ethanol facility would be constructed and operated
with private funds, DOE plans to analyze the traditional grain-to-
ethanol facility as a connected action in the EIS.
    Proposed Action: DOE is proposing to provide approximately $61
million in Federal funding to ABBK for the construction and operation
of a commercial-scale biomass-to-ethanol and energy facility near
Hugoton, KS. The total estimated cost (beyond the initial award) for
construction and operation of the biomass-to-ethanol portion of the
project is approximately $190.5 million.
    The biomass-to-ethanol facility would process 400 dry metric tons
per day of biomass to produce approximately 12 million gallons per year
(MGPY) of denatured ethanol. The biomass-to-ethanol facility would
utilize an enzymatic hydrolysis process for converting biomass
feedstocks to ethanol and co-products, and a gasification technology to
convert biomass to synthesis gas. Biomass feedstock would be supplied
from waste products from the production of crops produced within a 30
mile radius of the facility, and may include sorghum stubble, corn
stover, switchgrass, and other opportunity feedstocks that are
available in the area.
    The traditional grain-to-ethanol process would use 32 million
bushels of grain (sorghum and corn) to produce approximately 88 MGPY of
denatured ethanol annually, two-thirds of which (i.e. that derived from
sorghum) would qualify as Advanced Biofuels under Section 207 of the
Energy Independence and Security Act of 2007 (EISA) (Per EISA, Advanced
Biofuels includes all biofuels except corn-based ethanol). Solids from
the process will be converted to animal feed, resulting in the
production of up to 781,800 tons per year wet distillers grain with
solubles (WDGS). The facility will have the capability to dry up to 50
percent of the WDGS, producing a maximum of 152,000 tons per year of
dried distiller's grains with solubles (DDGS). The difference between
the two sources of animal feed is moisture; DDGS contains approximately
10 percent moisture while WDGS contains approximately 65 percent moisture.
    The overall integrated biorefinery, comprising both the proposed
biomass-to-ethanol facility and the grain-to-ethanol facility, would be
capable of producing about 100 MGPY of denatured ethanol and would be
located on approximately 800 acres, which includes the combined
facility footprint of about 385 acres and a buffer area between the
proposed biorefinery and the City of Hugoton to the east. Hugoton has a
population of about 3,700 and is located in Stevens County in southwest
KS. Land use in the area is primarily agricultural in nature with
cropland being the dominant use and grassland being the secondary use.
The area has diverse biomass feedstocks, numerous large cattle
feedlots, and a variety of grains grown locally.
    The project site itself currently consists of row-cropped
agricultural land and is adjoined by grain elevators, an asphalt plant,
industrial park, and airport to the south; golf course and agricultural
land to the west; two residences to the northwest; and agricultural
cropland to the north. About 65 % of the site would qualify as prime
farmland if it were irrigated. The proposed biorefinery site and
additional buffer area to the east are currently zoned Agricultural,
but the biorefinery location is proposed for a change to Heavy
Industrial zoning.
    Infrastructure required to operate the proposed biorefinery would
include the following:
    • Water, which would be supplied from wells on-site and near
the project site utilizing water rights acquired from local owners;
    • Electricity, which would be brought to the project site by
Pioneer Electric from an existing substation located a few miles to the
north of the project site;
    • Natural gas, which would be brought through a lateral
connection to one of the nearby interstate pipelines or through the
local distribution company;
    • Wastewater treatment--wastewater would be treated on-site,
non-contact cooling water will be used for irrigation;
    • Railroad service would be provided by the Cimarron Valley
Short Line which runs adjacent to the project site; and
    • Road access would be via a truck bypass route that the City of
Hugoton intends to construct prior to the completion of the project.
    During construction, truck traffic to the site would be expected to
average about 30 shipments a day. During operations, truck traffic
would be expected to increase to about 470 shipments a day. Most of the
grain and biomass would be obtained from growers located near the
proposed facility, but about 8 million tons of grain would be shipped
to the facility from non-local sources each year.
    Alternatives: NEPA requires that agencies evaluate reasonable
alternatives to the proposed action in an EIS. To implement the
requirements of

[[Page 50003]]

EPAct 2005, Section 932(d), in a separate, earlier proceeding DOE
conducted a competitive solicitation. DOE received 24 applications in
the response to the solicitation. Of these, nine did not comply with
statutory requirements for eligibility under Section 932. DOE reviewed
the remaining 15 applications on their merits and, having considered
the objectives set forth in Section 932, selected six proposals,
including ABBK's proposal for appropriate NEPA review. DOE selected
ABBK's proposal for negotiation of a funding agreement in part because
of its particular scale, location, and technology.
    DOE will consider reasonable only alternatives to the proposed
action that meet its purpose and need. Accordinly, DOE proposes to
analyze the following alternatives in detail in the EIS: (1) To provide
federal funding for the Abengoa Biorefinery Project as proposed by ABBK
(the Proposed Action); (2) to provide federal funding for the Abengoa
Biorefinery Project contingent on implementation of environmental
mitigation measures, which would be determined based on the
environmental impact analysis in the EIS; and (3) to not provide
federal funding for the proposed project (the No Action alternative).
    Preliminary Identification of Environmental Issues: The purpose of
this Notice is to solicit comments and suggestions for consideration in
the preparation of the EIS. As background for public comment, this
Notice contains a list of potential environmental issues that DOE has
tentatively identified for analysis. This list identifies resource
areas that may be affected by construction and operation of the
proposed Project and that DOE plans to analyze in the EIS. This list is
not intended to be all-inclusive or to imply any predetermination of
impacts. DOE welcomes comments on this list and other suggestions on
the scope of the EIS.
    1. Water Resources: Potential impacts on surface and groundwater
resources and water quality, including effects of water usage,
wastewater management, storm water management.
    2. Potential impacts on apparent isolated wetlands at the project site.
    3. Utility and transportation infrastructure requirements for
delivery of feedstocks and process chemicals to the facility and
distribution of products from the facility to the marketplace.
    4. Land Use: Changes in land use, including the proposed site and
the geographical area that will provide feedstock to the proposed facility.
    5. Local and Regional Air Quality.
    6. Cultural Resources: Including potential effects on historic and
archaeological resources and Native American tribal resources.
    7. Ecological Resources: Terrestrial and aquatic plants and animals
including state and Federally listed threatened and endangered species
and other protected resources.
    8. Health and safety impacts: Including construction-related safety
and process-related safety associated with handling and management of
process chemicals.
    9. Noise: Potential impacts resulting from construction and
operation of the proposed plant and from transportation of feedstocks,
process materials, and plant byproducts.
    10. Socioeconomic impacts: Potential socioeconomic impacts of plant
construction and operation, including effects on public services and
infrastructure resulting from the influx of construction personnel and
plant operating staff, and environmental justice issues.
    11. Aesthetic and scenic resources: Potential visual effects
associated with plant structures and operations.
    12. Cumulative impacts that result from the incremental impacts of
the proposed plant when added to the other past, present, and
reasonably foreseeable future activities within the regions of
influence. This may include potential impacts resulting from widespread
replication of this type of technology.
    13. Global Climate Change: Potential greenhouse gas emissions and
impacts on global climate change that may result from this project.
    Public Scoping Process: Interested agencies, organizations, Native
American tribes, and members of the public are encouraged to submit
comments or suggestions concerning the content of the EIS, including
the range of reasonable alternatives and the potential environmental
impacts to be analyzed. DOE invites oral comments and suggestions at
the public scoping meeting. The public scoping period will be open
until October 9, 2008.
    Written comments should be sent to Kristin Kerwin as described in
the ADDRESSES section of this Notice. The public scoping meeting will
be held at the location, date, and time listed in the DATES and
ADDRESSES sections of this notice. This meeting will be informal. A
presiding officer designated by DOE will establish procedures governing
the conduct of the meeting and an overview of the proposed Project will
be provided. The meeting will not be conducted as an evidentiary
hearing, and those who choose to make statements will not be cross-
examined by other speakers. However, DOE representatives may ask
speakers questions to help ensure that DOE fully understands their
comments or suggestions. To request time to speak at the meeting,
please contact Kristin Kerwin via telephone, mail, fax or e-mail as
listed in the ADDRESSES section of this Notice. Persons may also sign
up to speak before the meeting at the reception desk at the entrance to
the meeting and will be provided opportunities to speak after
previously scheduled speakers have spoken, as time allows. To ensure
that everyone who wishes to speak has a chance to do so, five minutes
will be allotted to each speaker. Depending on the number of persons
requesting to speak, DOE may allow longer times for representatives of
organizations. Persons wishing to speak on behalf of an organization
should identify that organization when they sign up to speak.
    A complete transcript of the public scoping meeting will be
retained by DOE and made available to the public for review via the
Golden Field Office Online Public Reading Room at:
www.eere.energy.gov/golden/Reading_Room.aspx and during business hours
at the Department of Energy, Freedom of Information Reading Room,
Forrestal Building, Room 1E-90, 1000 Independence Avenue, SW.,
Washington, DC 20585-0001. Additional copies of the public scoping
meeting transcripts will be made available during business hours at the
following location: Stevens County Library, 500 S. Monroe Street,
Hugoton, Kansas 67951.
    Draft EIS Schedule and Availability: The draft EIS is scheduled to
be issued in late 2008. The availability of the draft EIS will be
announced in the Federal Register and local media. The draft EIS will
be made available for public inspection at the location listed above
and on the Internet. Comments on the Draft EIS will be considered in
preparing the Final EIS.
    Interested parties who do not wish to submit comments at this time,
but who would like to receive a copy of the draft EIS should contact
Kristin Kerwin as provided in the ADDRESSES section of this notice.

    Issued in Washington, DC, on this 19th day of August, 2008.
Alexander A. Karsner,
Assistant Secretary, Energy Efficiency and Renewable Energy.
[FR Doc. E8-19633 Filed 8-22-08; 8:45 am]
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Notice of Intent To Prepare an Environmental Impact Statement and Notice of Wetlands Involvement for the Abengoa Biorefinery Project Near Hugoton, KS (DOE/EIS 0407)

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