Reaching an agreement to build a new coal-fired power plant near a national park by mitigating potential environmental impacts

This paper presents an interesting example of compromise through comprehensive environmental analysis and intensive negotiation to build a coal-fired power plant near an environmentally sensitive area. In December 1993, the US Department of Energy (DOE) completed the final environmental impact statement (EIS) for the Healy clean Coal Project (HCCP), a proposed demonstration project that would be cost- shared by DOE and the Alaska Industrial Development and Export Authority (AIDEA). The HCCP would be built adjacent to the existing coal-fired Golden Valley Electric Association, Inc. (GVEA) Unit No. 1 in Healy, Alaska, about 4 miles north of Denali National Park and Preserve (DNPP). In response to US Department of the Interior (DOI) concerns about potential air quality related impacts on DNPP, DOE facilitated negotiations among DOE, AIDEA, and GVEA which overcame a ``stalemate`` situation. A Memorandum of Agreement was signed by all four parties, enabling DOI to withdraw its objections. The cornerstone of the Agreement is the planned retrofit of Unit No. 1 to reduce emissions of sulfur dioxide and oxides of nitrogen. If the demonstration technologies operate as expected, combined emissions from the Healy site would increase by only about 8% but electrical generation would triple. The Agreement is a ``win/win`` outcome: DOE can demonstrate the new technologies, AIDEA can build a new power plant for GVEA to operate, and DOE can safeguard the pristine environment DNPP