The DOE National Energy Technology Laboratory (NETL) prepared this Environmental Assessment (EA) to analyze the potential environmental impacts of providing funding to Norwich Public Utilities (NPU) for its proposed Norwich Cogeneration Initiative in Norwich, New London County, Connecticut. DOE's proposed action is to provide a financial assistance grant of about $718,000. The total project cost would be about $1.47 million, with NPU providing the balance of the funding. The proposed funding is based on a Congressional earmark. DOE's Office of Energy Efficiency and Renewable Energy believes this project will advance research and development and demonstrate energy efficiency technology. NPU would construct and operate a high-efficiency natural-gas-fired reciprocating engine cogeneration facility on property leased from and adjoining Atlantic City Linen Supply New England (ACLS). ACLS operates an industrial laundry service at this location. The proposed project would install a natural-gas-fired reciprocating engine to generate 540 kilowatts of electricity and use the thermal energy, in the form of a closed-loop hot water heat exchanger, to produce hot water for ACLS's operations. The electricity generated by the unit would be transmitted to NPU's distribution system and offset electricity purchases, potentially reducing costs to all customers.