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tion.

Subpart C-Temporary

following evidence in order to make Exemptions for New Facilities the demonstration required by this sec

tion: 8503.20 Purpose and scope.

(1) Duly executed certifications re(a) This subpart implements the pro

quired under paragraph (a) of this secvisions contained in section 211 of the

tion; Act with regard to temporary exemp

(2) Exhibits containing the basis for tions for new facilities.

the certifications required under para(b) This subpart establishes the cri- graph (a) of this section (including teria and standards which owners or those factual and analytical materials operators of new powerplants who peti- deemed by the petitioner to be suffition for a temporary exemption must cient to support the granting of this meet to sustain their burden of proof exemption); under the Act.

(3) All data required by $503.6 (cost (c) All petitions for temporary ex- calculation) of these regulations necemptions shall be submitted in accord- essary for computing the cost calculaance with the procedures set out in tion formula; and part 501 of this chapter and the applica- (4) The anticipated duration of the ble requirements of part 503 of these lack of alternate fuel supply which regulations.

constitutes the basis for the exemp(d) The duration of any temporary exemption granted under this subpart (c) Duration. This temporary exempshall be measured from the date that

tion, taking into account any extenthe facility is placed in service using

sions or renewals, may not exceed 10 petroleum or natural gas.

years. 146 FR 59903, Dec. 7, 1981, as amended at 54

(46 FR 59903, Dec. 7, 1981, as amended at 47 FR 52894, Dec. 22, 1989)

FR 15315, Apr. 9, 1982; 54 FR 52894, Dec. 22,

1989) 8503.21 Lack of alternate fuel supply.

(a) Eligibility. Section 211(a)(1) of the $503.22 Site limitations. Act provides for a temporary exemp

(a) Eligibility. Section 211(a)(2) of the tion due to the unavailability of an

Act provides for a temporary exempadequate and reliable supply of an alternate fuel at a cost which does not

tion due to a site limitation. To qualify substantially exceed the cost of using

for such an exemption, a petitioner imported petroleum. To qualify, a peti

must certify that: tioner must certify that:

(1) One or more specific physical lim(1) A good faith effort has been to ob

itations relevant to the location or optain an adequate and reliable supply of

eration of the proposed facility exist an alternate fuel of the quality nec

which, despite diligent good faith efessary to conform to the design and forts, cannot be overcome before the operational requirements of the unit; end of the proposed exemption period;

(2) For the period of the proposed ex- (2) The petitioner will be able to emption, the cost of using such alter- comply with the applicable prohibinate fuel would substantially exceed tions of the Act at the end of the prothe cost of using imported petroleum posed exemption period; and as a primary energy source as defined (3) No alternate power supply exists, in $ 503.6 (Cost calculation) of these reg as required under $503.8 of these reguulations;

lations. (3) The petitioner will be able to

NOTE: Examples of the types of site limitacomply with the applicable prohibi

tions to which a petitioner may certify in tions of the Act at the end of the pro

order to qualify for this exemption include: posed exemption period; and

(4) No alternate power supply exists, (i) Inaccessability of alternate fuels as required under $503.8 of these regu- as a result of a specific physical limitalations.

tion; (b) Evidence required in support of a (ii) Unavailability of transportation petition. The petition must include the facilities for alternate fuels;

(iii) Unavailability of adequate land tions of the Act and with applicable enor facilities for handling, using, or vironmental requirements by the end storing an alternate fuel;

of the temporary exemption period. (iv) Unavailability of adequate land

NOTE: (1) For purposes of considering an or facilities for controlling and dis

exemption under this section, OFE's decision posing of wastes, including pollution

will be based solely on an analysis of the pecontrol equipment or devices necessary

titioner's capacity to physically achieve apto assure compliance with applicable plicable environmental requirements. The environmental requirements;

petition should be directed toward those con(v) Unavailability of adequate and re ditions or circumstances which make it liable supply of water, including water

physically impossible to comply during the for use in compliance with applicable

temporary exemption period. The cost of

compliance is not relevant, but cost-related environmental requirements; or

considerations may be presented as part of a (vi) Other site limitations exist

demonstration submitted under $503.21. which will not permit the location or

(2) Prior to submitting an exemption petioperation of the proposed unit using an tion, it is recommended that a meeting be alternate fuel.

requested with OFE and EPA or the appro(b) Evidence required in support of a priate State or local regulatory agency to petition. The petition must include the discuss options for operating an alternate following evidence in order to make

fuel fired facility in compliance with applithe demonstration required by this sec

cable environmental requirements. tion:

(b) Evidence required in support of a (1) Duly executed certifications re petition. The petition must include the quired under paragraph (a) of this sec following evidence in order to make tion;

the demonstration required by this sec(2) Exhibits containing the basis for tion: the certifications required under para (1) Where the petitioner has applied graph (a) of this section (including for a construction permit from EPA or those factual and analytical materials an appropriate State agency prior to deemed by the petitioner to be suffi- petitioning for an exemption under this cient to support the granting of this section, a copy of that application and exemption); and

synopsis of supporting documents filed (3) The anticipated duration of the

with or subsequent to that application site limitation which constitutes the

must be submitted to OFE with the pebasis for the exemption.

tition or at the time filed with the per(c) Duration. This temporary exemp mitting agency; tion, taking into account any exten (2) To the extent applicable, a copy of sions and renewals, may not exceed the EPA or State denial of the confive years.

struction permit application; (46 FR 59903, Dec. 7, 1981, as amended at 54

(3) To the extent applicable, a synFR 52894, Dec. 22, 1989)

opsis of the administrative record of

the EPA or State or local permit pro$503.23 Inability to comply with appli ceedings; cable environmental requirements.

(4) To the extent applicable, a sum(a) Eligibility. Section 211(a)(3) of the mary of the technology upon which the Act provides for a temporary exemp- denial was based, including a performtion due to an inability to comply with ance comparison between the proposed applicable environmental require technology and that technology which ments. To qualify a petitioner must would provide the maximum possible demonstrate that despite diligent good reduction of pollution; faith efforts:

(5) An examination of the environ(1) The petitioner will be unable, as mental compliance of the facility, inof the projected date of commencement cluding an analysis of its ability to of operation, to comply with the appli meet applicable standards and criteria cable prohibitions of the Act without when using both the proposed fuel and violating applicable Federal or State the alternate fuel(s) which would proenvironmental requirements; and

vide the basis for exemption. All such (2) The petitioner will be able to analysis must be based on accepted ancomply with the applicable prohibi- alytical techniques, such as air quality modeling, and reflect current condi- be emitted by the facility; or, even tions of the area which would be af- with the application of the lowest fected by the facility. The petitioner is achievable emission rate, the use of an responsible for obtaining the necessary alternate fuel will cause or contribute data to accurately characterize these to concentrations in an air quality conconditions. Environmental compliance trol region, of a pollutant for which must be examined in the context of any national ambient air quality available pollution control equipment standard is or would be exceeded; and which would provide the maximum pos- (ii) No alternate power supply exists, sible reduction of pollution. The anal- as required under $503.8 of these reguysis must contain: (i) Requests for bids lations. and other inquiries made and responses (2) A petition by certification under received by the petitioner concerning this paragraph must include: the availability and performance of (i) Duly executed certifications repollution control equipment; (ii) con

quired under paragraph (d)(1) of this tracts signed, if any, for an alternate section; fuel supply and for the purchase and in

(ii) Exhibits containing the basis for stallation of pollution control equip

the certifications required under parament; or (iii) other comparable evi

graph (d)(1) of this section (including dence such as technical studies docu

those factual and analytical materials menting the efficacy of equipment to

deemed by the petitioner to be suffimeet applicable requirements;

cient to support the granting of this (6) An examination of any regulatory exemption); and options available to the petitioner in

(iii) The anticipated duration of the seeking to achieve environmental com

circumstances which constitute the pliance (such as offsets, variances, and

basis for the exemption. State Implementation Plan revisions); (46 FR 59903, Dec. 7, 1981, as amended at 54

(7) Any other documentation which FR 52894, Dec. 22, 1989] demonstrates an inability to comply with applicable environmental require $503.24 Future use of synthetic fuels. ments;

(a) Eligibility. Section 211(b) of the (8) No alternate power supply exists, Act provides for a temporary exempas required under $503.8 of these regu tion based upon the future use of synlations.

thetic fuels. To qualify, a petitioner (c) Duration. This temporary exemp

l'his temporary exemp- must certify that: tion, taking into account any exten (1) The petitioner will be able to sion and renewals, may not exceed 5 comply with the applicable prohibiyears.

tions imposed by the Act by the use of (d) Certification alternative. (1) To a synthetic fuel derived from coal or qualify for this exemption, in lieu of another alternate fuel as a primary enmeeting the evidentiary requirements ergy source in the proposed facility by of paragraph (b) of this chapter, a peti- the end of the proposed exemption petioner may certify that, for the period riod; of the exemption:

(2) The petitioner will not be able to (i) The site for the facility is or will comply with the applicable prohibibe located in a Class I area or Class II tions imposed by the Act by use of a area in which the allowable increment synthetic fuel until the end of the proestablished by law has been consumed, posed exemption period; and as defined in part of the Clean Air (3) No alternate power supply exists, Act; the use of an alternate fuel will as required under $503.8 of these regucause or contribute to concentrations lations. of pollutants which would exceed the (b) Evidence required in support of a maximum allowable increases in a petition. The petition must include the Class I or Class II area even with the following evidence in order to make application of best available control the demonstration required by this sectechnology; the site for the facility is tion: or will be located in a non-attainment (1) Duly executed certifications rearea as defined in part D of the Clean quired under paragraph (a) of this secAir Act for any pollutant which would tion;

(2) Exhibits containing the basis for (c) Certification alternative. If the petithe certifications required under para- tioner requires use of oil or natural gas graph (a) of this section (including in a unit, during the construction of an those factual and analytical materials alternate-fuel fired unit, the petitioner deemed by the petitioner to be suffi- may substitute, in lieu of the evicient to support the granting of this dentiary requirements of paragraphs exemption); and

(b)(1) and (2) of this section: (3) A preliminary compliance plan, (1) A duly executed certification, inincluding to the extent available, the cluding the requested duration of the information required under $503.12.

exemption, that the unit will be oper(c) Final Compliance Plan. Before an

ated on oil or natural gas only during exemption may become effective, the

the construction of an alternate fuel petitioner must submit and OFE must

fired unit to be owned or operated by approve a final compliance plan as re

the petitioner; and quired by $ 503.12.

(2) Exhibits containing the basis for (d) Duration. This temporary exemp

the certifications required under paration may be granted for a period of up

graph (c)(1) of this section (including to ten (10) years. Unless the petitioner

those factual and analytical materials requests otherwise, any temporary ex

deemed by the petitioner to be suffiemption from the fuel use prohibitions

cient to support the granting of this of the Act for the future use of syn

exemption). thetic fuels will commence on the date

(d) Duration. This temporary exempof commercial operation of the facility.

tion, taking into account extension NOTE: Contracts based on the anticipated and renewals, may not exceed 5 years. successful demonstration of a development program and/or the anticipated economic (46 FR 59903, Dec. 7, 1981, as amended at 54 feasibility of a synthetic fuels facility, will FR 52894, Dec. 22, 1989) generally be sufficient to meet the "binding contract" requirements for this exemption.

Subpart D-Permanent (46 FR 59903, Dec. 7, 1981; 47 FR 15315, Apr. 9, Exemptions for New Facilities 1982; 54 FR 52894, Dec. 22, 1989) $503.25 Public interest.

8503.30 Purpose and scope. (a) Eligibility. Section 211(c) of the

(a) This subpart implements the proAct provides for a temporary public in

visions contained in section 212 of the

Act with regard to permanent exempterest exemption. To qualify, a peti

tions for new facilities. tioner must demonstrate that: (1) The unit will be capable of com

(b) This subpart establishes the criplying with the applicable prohibitions

teria and standards which owners or at the end of the proposed exemption

operators of new powerplants and inperiod;

stallations who petition for a perma(2) The granting of the exemption

nent exemption must meet to sustain would be in accord with the purposes of

their burden of proof under the Act. the Act and would be in the public in

(c) All petitions for permanent exterest; and

emptions for new facilities shall be (3) No alternate power supply exists. submitted in accordance with the proas required under $503.8 of these regu

cedures set out in part 501 of this chaplations.

ter and the applicable requirements of (b) Evidence required in support of a part 503 of these regulations. petition. The petition must include the following evidence in order to make

8 503.31 Lack of alternate fuel supply the demonstration required by this sec

for the first 10 years of useful life. tion:

(a) Eligibility. Section 212(a)(1)(A)(i) of (1) Substantial evidence to corrobo the Act provides for a permanent exrate the eligibility requirements iden emption due to lack of an adequate and tified above; and

reliable supply of alternate fuel within (2) The anticipated duration of the the first 10 years of useful life of the circumstances which constitute the proposed unit. To qualify, a petitioner basis for the exemption.

must certify that:

(1) A good faith effort has been made the design and operational requireto obtain an adequate and reliable sup- ments of the proposed unit; ply of an alternate fuel for use as a pri (2) The cost of using such a supply mary energy source of the quality and would substantially exceed the cost of quantity necessary to conform with using imported petroleum as a primary the design and operational require energy source during the useful life of ments of the unit;

the proposed unit as defined in 8503.6 (2) Such a supply is not likely to be (cost calculation) of these regulations; available within the first 10 years of (3) No alternate power supply exists, useful life of the proposed unit;

as required under $503.8 of these regu(3) No alternate power supply exists, lations. as required under $503.8 of these regu (4) Use of mixtures is not feasible, as lations;

required under $503.9 of these regula(4) Use of mixtures is not feasible, as tions; and required under $503.9 of these regula (5) Alternative sites are not availtions; and

able, as required under $503.11 of these (5) Alternative sites are not avail regulations. able, as required under $503.11 of these (b) Evidence required in support of a regulations.

petition. The petition must include the (b) Evidence required in support of a following evidence in order to make petition. A petition must include the the demonstration required by this secfollowing evidence in order to make

tion: the demonstration required by this sec (1) Duly executed certifications retion:

quired under paragraph (a) of this sec(1) Duly executed certifications re tion; quired under paragraph (a) of this sec (2) Exhibits containing the basis for tion;

certifications required under paragraph (2) Exhibits containing the basis for (a) of this section (including those facthe certifications required under para tual and analytical materials deemed graph (a) of this section (including by the petitioner to be sufficient to those factual and analytical materials support the granting of this exempdeemed by the petitioner to be suffi- tion); cient to support the granting of this

(3) Environmental impact analysis, exemption);

as required under $503.13 of these regu(3) Environmental impact analysis, lations; as required under $503.13 of these regu (4) Fuels search, as required under lations; and

$503.14 of these regulations; and (4) Fuels search, as required under (5) All data required by $ 503.6 (cost $503.14 of these regulations.

calculation) of these regulations nec

essary for computing the cost calcula(46 FR 59903, Dec. 7, 1981, as amended at 54

tion formula. FR 52895, Dec. 22, 1989)

[46 FR 59903, Dec. 7, 1981, as amended at 47 8503.32 Lack of alternate fuel supply FR 15315, Apr. 9, 1982; 54 FR 52895, Dec. 22,

at a cost which does not substan. 1989)
tially exceed the cost of using im-
ported petroleum.

$ 503.33 Site limitations. (a) Eligibility. Section 212(a)(1) (A)(ii) (a) Eligibility. Section 212(a)(1)(B) of of the Act provides for a permanent ex- the Act provides for a permanent exemption due to lack of an alternate emption due to site limitations. To fuel supply at a cost which does not qualify for such an exemption, a petisubstantially exceed the cost of using tioner must certify that: imported petroleum. To qualify a peti- (1) One or more specific physical limtioner must certify that:

itations relevant to the location or op(1) A good faith effort has been made eration of the proposed facility exist to obtain an adequate and reliable sup- which, despite good faith efforts, canply of an alternate fuel for use as a pri- not reasonably be expected to be overmary energy source of the quality and come within five years after comquantity necessary to conform with mencement of operations;

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