[Federal Register Volume 77, Number 187 (Wednesday, September 26, 2012)]
[Notices]
[Pages 59166-59167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-23603]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


South Mississippi Electric Cooperative: Plant Ratcliffe, Kemper 
County Integrated Gasification Combined-Cycle (IGCC) Project

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of Availability of a Record of Decision.

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SUMMARY: The Rural Utilities Service (RUS) has issued a Record of 
Decision (ROD) for the adoption of the Final Environmental Impact 
Statement (EIS) for the proposed participation of South Mississippi 
Electric Power Association (SMEPA) in Plant Ratcliffe, an Integrated 
Gasification Combined-Cycle Facility located in Kemper County, 
Mississippi (the Project). The Acting Administrator of RUS has signed 
the ROD, which is effective on the publication of this notice. The U.S. 
Department of Energy (DOE) prepared an Environmental Impact Statement 
(EIS) for the Project in cooperation with the U.S. Army Corps of 
Engineers (USACE). The purpose of the EIS was to evaluate the potential 
environmental impacts of the Project so that the DOE could assess 
potential cost-shared financing under the Clean Coal Power Initiative 
(CCPI) and issuance of a loan guarantee under the Energy Policy Act of 
2005 (EPAct05), and the USACE could consider potential issuance of 
permits under Section 404 of the Clean Water Act.
    The DOE/USACE Final EIS was issued in May 2010, and DOE issued 
their Record of Decision (ROD) in August 2010. RUS is considering 
providing a $480 million loan guarantee to SMEPA that would provide for 
the acquisition of a 15% undivided ownership interest in the Project. 
RUS adopted the Final EIS pursuant to the National Environmental Policy 
Act of 1969 (NEPA) (U.S.C. 4231 et seq.), and in accordance with the 
Council on Environmental Quality's (CEQ) regulations for implementing 
the procedural provisions of NEPA (40 CFR Parts 1500-1508) and RUS's 
Environmental Policies and Procedures (7 CFR Part 1794). RUS determined 
that the actions covered by the DOE/USACE Final EIS and RUS's proposed 
action were substantially the same, given that no new infrastructure 
would be required for SMEPA's participation (40 CFR 1506.3(b)). RUS 
conducted an independent evaluation of the DOE/USACE Final EIS, the 
associated Mitigation Action Plan (MAP) and Record of Decision (ROD), 
determined the documentation met the standards of an adequate statement 
(40 CFR 1506.3(a)), and adopted the documentation (Subpart H, 7 CFR 
Part 1794).

ADDRESSES: To obtain copies of the ROD, or for further information, 
please contact Ms. Emily Orler, Environmental Protection Specialist, at 
USDA, Rural Utilities Service, 1400 Independence

[[Page 59167]]

Avenue SW., Stop 1571, Washington DC 20250-1571, (202) 720-1414, or 
[email protected]. The ROD is available on the RUS Web site, 
http://www.rurdev.usda.gov/UWP-eis4.htm.

SUPPLEMENTARY INFORMATION: SMEPA has requested financing from RUS to 
acquire a 15% undivided ownership interest in the Project. The Project 
was developed under DOE's Clean Coal Power Initiative (CCPI) by 
Mississippi Power Company (MPCo), and will demonstrate the feasibility 
of the Integrated Gasification Combined-Cycle (IGCC) technology for 
commercial operation. The Project has an expected net generation 
capacity of 573 MW, and has been designed to capture approximately 67% 
of the carbon dioxide (CO2) that enters the facility as 
fuel. MPCo, a private utility that provides approximately a third of 
SMEPA's load through a power purchase agreement (PPA) at cost-based 
wholesale rates, approached SMEPA in 2009 with the opportunity to 
participate in the Project. Due to the existing PPA with MPCo, SMEPA 
rates will be affected regardless of their participation in the 
Project. Participation in the Project will allow SMEPA to meet 
projected future power demand and will provide potential cost savings 
through the wholesale rate reductions.
    RUS circulated a Notice of Adoption and the Executive Summary of 
the DOE/USACE Final EIS, in accordance with 40 CFR 1502.19, and made 
the document available on the RUS Web site (http://www.rurdev.usda.gov/UWP-eis4.htm). RUS published a Notice of Adoption in the Federal 
Register on June 20, 2012 (77 FR 36996), and the U.S. Environmental 
Protection Agency acknowledged its receipt of the DOE/USACE Final EIS 
and RUS's intent to adopt the document in the Federal Register on June 
29, 2012 (77 FR 38801), which began the 30-day public review period. 
The comment period concluded on July 31, 2012; RUS received three (3) 
comments, which are responded to in the ROD.
    In accordance with NEPA, the CEQ regulations for implementing the 
procedural provisions of NEPA, and RUS's Environmental Policies and 
Procedures, RUS has determined that the environmental impacts of the 
Project have been adequately addressed. While acknowledging that SMEPA 
lacks sufficient control and responsibility over the Project, RUS 
determined that financing SMEPA's participation in the Project would be 
subject to NEPA and conducted an independent evaluation of the DOE/
USACE Final EIS and associated documents. RUS also reviewed the 
engineering studies submitted by SMEPA that further assessed the 
purpose and need and alternatives of SMEPA's involvement in the 
Project. RUS has determined that its independent evaluation and 
adoption of the DOE/USACE FEIS fulfills its obligations under the above 
cited statute and regulations for its action related to the Project. 
Final loan approval for the Project is dependent on the conclusion of 
the financial and engineering reviews. Additional detail regarding 
RUS's regulatory authority, the rationale for the decision, and 
compliance with applicable regulation are included in the ROD.

Approval

    This Record of Decision is effective on signature.

    Dated: September 19, 2012.
John Charles Padalino,
Acting Administrator, Rural Utilities Service.
[FR Doc. 2012-23603 Filed 9-25-12; 8:45 am]
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