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Environment Committee Update
December 8, 2014

Contact: Darren Suarez

LNG

The Department of Environmental Conservation (DEC) in the November 12th, 2014 State Register published a Notice of Revised Rule Making. The proposed substantial revision would establish an upper limit of 70,000 gallons on the amount of LNG that a facility would be permitted to store. A limit on LNG facility capacity of 70,000 gallons is consistent with the large tanks/facilities included in the National Fire Protection Association standards. DEC has stated as it “gains experience with permitting LNG facilities and more information becomes available regarding the relationship between facility capacity and the risk of fire or explosion, and other relevant issues, DEC may reconsider the capacity limit in future revisions to Part 570.”

The DEC will be accepting written public comments through Friday, December 12, 2014 on the revised proposed Part 570 and revised supporting rule making documents.

Written comments can be submitted by:

  1. Email to DEC [include 'Comments on Revised Proposed Part 570' in the subject line]; or
  2. Mail to Mr. Russ Brauksieck, NYSDEC, Division of Environmental Remediation, 625 Broadway, Albany, NY 12233-7020.

Letter

The Business Council expects to remain supportive of the DECs efforts to amend 6 NYCRR Part 570, provided however, The Business Council is concerned that the limitation of tank size coupled with the transportation issues will chill the deployment of LNG to particularly large industrial facilities. If members have concerns that the proposed limit on LNG facility capacity of 70,000 gallons is too restrictive please make me aware. Ultimately, the benefits of the proposed regulation and a commitment to review the cap in the future appear to warrant the Business Council’s support.

The Business Council is planning to issue a letter in support of the proposed regulations as they will have a positive environmental and economic benefit, as it will permit an alternative fuel source that is safe, affordable and cleaner. Comments that The Business Council issued last year.  Additionally, the Business Council will work with the other organizations to develop a sign on letter to express support for the adoption of the proposed regulations.

Summary of LNG Operations:

Prometheus Energy Group is providing an institutional customer in western Massachusetts with a multi-year turnkey LNG service. LNG is being used to operate steam boilers and a cogeneration facility providing a cleaner burning, more economical natural gas fuel source throughout the winter months. This turnkey LNG service includes a Prometheus Energy designed onsite storage and regasification unit (shown below), onsite LNG operations and inventory management, and finally, transportation and supply of LNG to the site. The site was operational ahead of the target start date.

Prometheus Energy

About Prometheus Energy
Prometheus Energy is one of the largest and fastest growing suppliers of liquefied natural gas (LNG) to the industrial sector in North America. Prometheus provides turnkey fuel solutions to convert industrial users of diesel, propane and other crude-derived fuels to clean, domestic, secure LNG, resulting in reduced fuel cost and environmental footprint. The company is vertically integrated from LNG production through logistics, distribution, onsite equipment and field support. A pioneer in the industrial LNG market, Prometheus is recognized for its industry leadership. Prometheus Energy is privately held by Shell Technology Ventures Fund 1 B.V. and Black River Asset Management LLC, a wholly owned but independently managed subsidiary of Cargill. For more information and to calculate fuel savings associated with LNG, please visit www.PrometheusEnergy.com.

Future Site Visits

Any member interested in hosting future site visits to projects that are particular relevant to the Energy or the Environment Committee should contact darren.suarez@bcnys.org and arrangements will be made.

Brownfields

At the end of this legislation session the Business Council supported S.7878/A.10153 which will extend the Brownfield Cleanup Tax credit until March 31, 2017 and provide $300 M in new bonding for the State Superfund program.

The legislation passed both houses of the legislature and has yet to be advanced to the Governor’s desk. The Business Council supports the enactment of the legislation and was pleased that it has been reported that the Governor planned to sign the legislation, provided however, members of the administration have recently expressed doubts regarding the fate of the legislation. The Business Council will be drafting a letter in support and a coalition supporting the extension. The following are past items of interest related to brownfields.

Report
The Public Policy Institute is finalizing its report on the State Brownfield program. There is an opportunity for members to be directly involved in the development of the report. Member’s or individual or firm that have worked on projects and are interested in sharing them as a case study for inclusion in the report. The following information will be needed for each project: