The United States Department of Energy, National Energy Technology Laboratory (DOE NETL) prepared this Environmental Assessment (EA) to analyze the potential environmental impacts of providing funding for the proposed Pope/Douglas Third Combustor Expansion Project in Alexandria, Minnesota. The Proposed Action is for DOE to provide $927,514 of cost-shared funding for this project, or 5% of the overall total project cost of $19,400,000. The proposed project is a Congressionally Directed Project selected by the DOE Office of Energy Efficiency and Renewable Energy (EERE) to advance research and the development and demonstration of energy efficiency or renewable energy technologies or programs. The proposed project would construct and operate a third Municipal Waste Combustor (MWC) to complement the two existing MWCs at the Pope/Douglas Solid Waste Management (PDSWM) waste-to-energy facility. The proposed project would be consistent with DOE's goal to increase the use and amount of renewable energy generation projects. The third MWC would have a nominal capacity of 120 tons of waste per day and would double the facility's overall capacity. Expansion of the facility would enable PDSWM to manage the solid waste of five counties and provide steam to three customers. Excess steam produced at the facility would be used to produce electricity for in-house use or would possibly be sold to the local energy grid. The proposed third MWC unit would be designed and operated similarly to the two existing MWC units, and would be constructed on an already paved surface, immediately south of the existing MWCs. The proposed project would require a construction permit and a Major Amendment to the facility's existing air emissions operating permit. However, no other permits are anticipated to be required. No significant adverse impacts are anticipated to result from implementation of this proposed project.