Determination of Significance, Notice of Request for EIS Scoping Comments, and Notice of Public Scoping Meeting: Updated January 27, 2016 Proponent: Northwest Innovation Works, Tacoma, LLC Project Name: Tacoma Manufacturing and Marine Export Facility (TMMEF) Location of Proposal: Blair-Hylebos Peninsula, Port of Tacoma: 3400 Taylor Way, Tacoma, tax parcels: 0321363034, 0321363037, 0321363033, 0321363013, 0321363033, 0321363036, and 0321354035; see attached map (also at www.cityoftacoma.org/planning, under 'Proposed Methanol Plant' SEPA Lead Agency: City of Tacoma – File No. SEPA2015-40000260025 Project Description: Northwest Innovation Works, Tacoma, LLC (NWIWT) proposes to develop and operate a natural gas-to-methanol production plant and export facility on approximately 125 acres in the Port of Tacoma (Port). The project objective is the manufacture and shipment of methanol (a liquid) to global markets for use as a feedstock for manufacturing olefins used in the production of plastics and other materials. The characteristics of the proposed project are described below. As proposed, the plant will include up to four methanol production lines, each with a production capacity of 5,000 metric tons per day, for a total of 20,000 metric tons per day. The plant will also include ancillary elements such as an administrative and lab building, employee parking, access roadways, fire suppression facilities, air separation units, air storage, water storage and treatment facilities, wastewater treatment facilities, cooling towers, a flare system for the disposal of flammable gases and vapors, substations and emergency generators. Plant components are proposed to be primarily located on approximately 110 acres of Port property situated at the southwest base of the Blair-Hylebos peninsula. Construction is expected to proceed in two phases, each including two production lines totaling production capacity of 10,000 metric tons per day. The plant will utilize ultra-low emissions (ULE) reforming technology, which will emit substantially lower greenhouse gas and other air pollutants compared to conventional technologies for reforming natural gas to methanol. Natural gas will be delivered to the methanol plant via a new lateral pipeline, which will transmit odorized gas. Northwest Pipeline GP will be responsible for obtaining permits and constructing this lateral pipeline. This lateral pipeline will connect the existing regional pipeline to the NWIWT project site over an approximately 10-mile corridor through unincorporated Pierce County, the Puyallup Tribe of Indians Reservation, and the cities of Sumner, Puyallup, Fife, Tacoma, and potentially others. Separately, Northwest Pipeline GP is pursuing expansion of its regional pipeline between Sumas and Longview, Washington which is being permitted through the Federal Energy Regulatory Commission. NWIWT anticipates using natural gas distribution capacity that will be provided by that portion of the Northwest Pipeline regional expansion project between Sumas and Tacoma. The production process will require up to approximately 10.4 million gallons per day of water, which will be supplied by the City of Tacoma Domestic water and sanitary services for on-site personnel use will be obtained from the City of Tacoma. Treated process wastewater (up to approximately 1.44 million gallons per day) will be discharged to the City of Tacoma's wastewater treatment works. A construction stormwater permit will be required. Stormwater management post-construction will be discharged through Port of Tacoma outfalls or through the City of Tacoma's stormwater system. At full production, the project will require up to approximately 450 megawatts of electrical power, which will be transmitted through the existing transmission system with localized upgrades if necessary. The anticipated yearly production at full capacity is approximately 7.2 million metric tons of methanol. Up to approximately 300,000 metric tons of methanol will be stored in storage tanks at atmospheric pressure and ambient temperature and surrounded by secondary containment. Storage tanks will be co-located with plant components, as well as on approximately 15 acres of land adjacent to or in close proximity to the main 110 acre plant site. Methanol product will be transferred by pipeline across Port property from the storage area to the Port's existing deep draft marine terminal (the "East Blair One [EB1] terminal) on the Blair Waterway. Roadway improvements to access the EB1 terminal may be necessary. NWIWT anticipates loading between four and seven ships per month depending on vessel size. The Port will be responsible for obtaining permits for modifications to the dock, as well as localized dredging, if necessary, in the vicinity of the berth. The plant will be operated in compliance with applicable fire, health, and safety regulations and codes. Plant safety features will include fire suppression systems, fire safety equipment, and storage and containment systems designed to current industry standards and regulatory requirements. NWIWT will conduct process safety management assessments and develop emergency response plans in accordance with applicable local, state and federal regulations. Determination of Significance: NWIWT acknowledges the issuance of a Determination of Significance as the SEPA Threshold Determination in order to initiate SEPA scoping for an Environmental Impact Statement ("EIS") for the TMMEF Project. The EIS is not a substitute for permit review. It is a process that develops information that is used to support permit review and development of recommended mitigation measures related to potential impacts associated with matters such as transportation, fire, health and safety. Key permits for this project include the City of Tacoma Shoreline Substantial Development Permit, Department of Ecology Water Quality Certification, the Department of Fish and Wildlife's Hydraulic Project Approval, the U.S. Army Corps of Engineers' Sections 10 and 404 permits, and a Notice of Construction air contaminant permit from Puget Sound Clean Air Agency. The federal permits will likely involve a thorough review of waterway operations by the US Coast Guard. Scoping: Consistent with TMC Chapter 13.12, the City of Tacoma, as SEPA lead agency, is initiating a 60-day scoping process beginning December 15, 2015 and ending on February 17, 2016 to narrow the scope of the EIS. The NWIWT Project EIS will discuss the probable significant adverse impacts of the proposed action, the no-action alternative, and alternatives that are capable of attaining the proposal's objectives stated above. The Blair-Hylebos Terminal Redevelopment Project FEIS (Feb. 2009) and the Tacoma LNG FEIS (Nov. 2015) are proposed for incorporation, to the extent relevant, by reference under WAC 197-11-600(4)(b) to provide additional information and analysis in preparation of the project-specific TMMEF EIS. The City has determined that Environmental Health and Safety ("EH&S") will be areas of emphasis in the EIS. In addition to the foregoing topics, agencies, affected tribes, and members of the public are invited and encouraged to comment on the scope of this EIS. You may comment on alternatives, proposed mitigation measures, probable significant adverse impacts, permits, licenses and/or other approvals that may be required. The City will use the scoping comments to help define the topics to be examined closely in the project-specific EIS. Methods for presenting your comments are described below. All comments are due no later than 5 p.m. on February 17, 2016 March 4, 2016. * EIS Public Scoping Meetings (2 3) – The first EIS Public Scoping Meeting is scheduled to begin at 6:30 p.m. on Thursday January 21, 2016 at the City Convention Center, 1500 Broadway; NWIWT will have representatives and materials available in the foyer to share currently available information beginning at 5 p.m. The second EIS Public Scoping Meeting is scheduled to begin at 6:30 p.m. on Wednesday, February 10, 2016, in the 5th Floor E
xhibit Hall at the City Convention Center, 1500 Broadway (doors will open at 5:00 p.m. for speaker sign-up; speakers will be called upon in order of sign-up). The third EIS Public Scoping Meeting is scheduled for February 16 at Meeker Middle School in NE Tacoma. Doors will open at 5:00 p.m. for speaker sign-up; the meeting will begin at 6:30 p.m. We are locating the third meeting to make it easier for NE Tacoma residents to attend. * City staff plan to have a draft Scope of Work available and posted on the project web page no later than February 5, 2016. As much as possible, the second and third hearings should focus on the details of the Scope of Work. * The purpose of the public scoping meeting is to provide information about the proposed project and to provide an opportunity to make oral comment on the scope of the EIS. Additionally, written comments will be accepted at this meeting (comment forms will be available) which will be entered in the proposal's environmental review record as scoping comments. Additional information may be found at www.cityoftacoma.org/planning. * Submittal of written comments – Written comments may be submitted via mail, e-mail or fax to the City's Project Manager, as follows: Project Manager: Ian Munce, AICP, Principal Planner Address: City of Tacoma: Planning & Development Services Department 747 Market Street, Suite 345, Tacoma, WA 98402 E-mail: tacoma.methanol.sepa@cityoftacoma.org Phone#|Fax #: (253) 573-2478 | (253) 591-5433 Responsible Official: The Responsible Official is the designated person within the City of Tacoma's Planning & Development Services Department who is responsible for compliance with the SEPA lead agency procedural responsibilities. Issuance Date: December 15, 2015, Updated January 27, 2016 /s/Peter Huffman, Planning & Development Services Director SEPA Responsible Official Tacoma Daily Index Publication: December 15, 2015 and December 22, 2015, Updated January 27, 2016 The City of Tacoma does not discriminate on the basis of disability in any of its programs, activities, or services. To request this information in an alternative format or a reasonable accommodation, please contact the City Clerk's Office at 253.591.5505. TTY or speech-to-speech users please dial 711 to connect to Washington Relay Services. PROJECT AREA MAP Proponent: Northwest Innovation Works, Tacoma, LLC Project Name: Tacoma Manufacturing and Marine Export Facility (TMMEF) SEPA Lead Agency: City of Tacoma Agency File No.: SEPA2015-40000260025 Contact: Ian Munce Building and Land Use Services City of Tacoma 747 Market Street, Room 345, Tacoma, WA 98402 (253) 573-2478 | Tacoma.methanol.sepa@cityoftacoma.org IDX-679837 January 27