Page images
PDF
EPUB

provides the maximum possible reduction of pollution;

(5) An examination of the environmental compliance of the facility, including an analysis of its ability to meet applicable standards and criteria when using both the proposed fuel and the alternate fuel(s) which would provide the basis for the exemption. All such analysis must be based on accepted analytical techniques, such as air quality modeling, and reflect current conditions of the area which would be affected by the facility. The petitioner is responsible for obtaining the necessary data to accurately characterize these conditions. Environmental compliance must be examined in the context of available pollution control equipment which would provide the maximum possible reduction of pollution. The analysis must contain: (i) Requests for bids and other inquiries made and responses received by the petitioner concerning the availability and performance of pollution control equipment; or (ii) other comparable evidence such as technical studies documenting the efficacy of equipment to meet applicable requirements;

(6) An examination of any regulatory options available to the petitioner in seeking to achieve environmental compliance (such as offsets, variances and State Implementation Plan (SIP) revisions); and

(7) Any other documentation which demonstrates an inability to comply with applicable environmental requirements;

(8) No alternate power supply exists as required under $503.8 of these regulations;

(9) Use of mixtures is not feasible, as required under $503.9 of these regulations;

(10) Alternative sites are not available, as required under $503.11 of these regulations;

(11) Environmental impact analysis, as required under $503.13 of these regulations; and

(12) Fuels search, as required under 8503.14 of these regulations.

(d) Certification alternative. (1) To qualify for this exemption, in lieu of meeting the evidentiary requirements of paragraph (c) of this section, a petitioner may certify that:

(i) The site for the facility is or will be located in a Class I area or Class II area in which the allowable increment established by law has been consumed, as defined in part of the Clean Air Act; the use of an alternate fuel will cause or contribute to concentrations of pollutants which would exceed the maximum allowable increases in a Class I or Class II area even with the application of best available control technology; the site for the facility is or will be located in a non-attainment area as defined in part D of the Clean Air Act for any pollutant which would be emitted by the facility; or, even with the application of the lowest achievable emission rate, the use of an alternate fuel will cause or contribute to concentrations in an air quality control region of a pollutant for which any national ambient air quality standard is or would be exceeded;

(ii) No alternate power supply exists, as required under $503.8 of these regulations;

(iii) Alternative sites are not available, as required under $503.11 of these regulations; and

(iv) Use of mixtures is not feasible, as required under $503.19 of these regulations.

(2) A petition by certification under this paragraph must include:

(i) Duly executed certifications required under paragraph (d)(1) of this section;

(ii) Exhibits containing the basis for the certifications required under paragraph (d)(1) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption);

(iii) Environmental impact analysis, as required under $503.13 of these regulations, and

(iv) Fuels search, as required under $503.14 of these regulations. [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989) $503.35 Inability to obtain adequate

capital. (a) Eligibility. Section 212(a)(1)(D) of the Act provides for a permanent exemption due to inability to obtain adequate capital. To qualify, a petitioner must certify that:

(1) Despite good faith efforts the peti- $503.36 State or local requirements. tioner will be unable to comply with

(a) Eligibility. Section 212(b) of the the applicable prohibitions imposed by

Act provides for an exemption due to the Act because the additional capital

certain State or local requirements. To required for an alternate fuel-capable unit beyond that required for the pro

qualify a petitioner must certify that: posed unit cannot be raised;

(1) With respect to the proposed site

of the unit, the operation or construc(2) The additional capital cannot be

tion of the new unit using an alternate raised:

fuel is infeasible because of a State of (i) Due to specific restrictions (e.g.,

local requirement other than a buildconvenants on existing bonds) which

ing code, nuisance, or zoning law; constrain management's ability to

(2) The petitioner has made a good raise debt or equity captial;

faith effort to obtain a variance from (ii) Without a substantial dilution of

the State or local requirement but has shareholder equity;

been unable to do so or has dem(iii) Without an unreasonably adverse

onstrated why none is available; affect on the utility's credit rating; or

(3) The granting of the exemption (iv) In the case of non-investor-owned

would be in the public interest and public utilities, without jeopardizing

would be consistent with the purposes the utility's ability to recover its cap

of the Act; ital investment, through tariffs, with

(4) The petitioner is not entitled to out unreasonably adverse economic ef

an exemption for lack of alternate fuel fect on its service area (such as adverse impacts on local industry or undue

supply, site limitation, environmental

requirements, or inability to obtain hardship to ratepayers).

adequate capital at the site of the pro(3) No alternative power supply ex

posed powerplant or at any reasonable ists, as required under $503.8 of these

alternative site for the alternate regulations;

fuel(s) considered; (4) Use of mixtures is not feasible, as

(5) At the proposed site and every required under $503.9 of these regula

reasonable alternative site where the tions; and

petitioner is not entitled to an exemp(5) Alternative sites are not avail

tion for lack of alternate fuel supply, able, as required under $503.11 of these

site limitation, environmental requireregulations.

ments, or inability to obtain adequate (b) Evidence required in support of a capital, the petitioner nevertheless petition. A petition must include the

would be barred at each such proposed following evidence in order to make

or alternate site from burning an alterthe demonstration required by this sec nate fuel by reason of a State or local tion:

requirement; (1) Duly executed certifications re

(6) No alternate power supply exists, quired under paragraph (a) of this sec as required under $503.8 of these regution;

lations; and (2) Exhibits containing the basis for (7) Use of mixtures is not feasible, as the certifications required under para required under $503.9 of these regulagraph (a) of this section (including tions. those factual and analytical materials (b) Evidence required in support of a deemed by the petitioner to be suffi

petition. The petition must include the cient to support the granting of this

following evidence in order to make exemption);

the demonstration required by this sec(3) Environmental impact analysis, tion: as required under $503.13 of these regu

(1) Duly executed certifications relations; and

quired under paragraph (a) of this sec(4) Fuels search, as required under tion; 8503.14 of these regulations.

(2) Exhibits containing the basis for [46 FR 59903, Dec. 7, 1981, as amended at 47 the certifications required under paraFR 15315, Apr. 9, 1982; 54 FR 52895, Dec. 22, graph (a) of this section (including 1989)

those factual and analytical materials

194-031 D-01--3

AVERAGE ANNUAL UTILIZATION OF OIL AND NAT

URAL GAS FOR ELECTRICITY GENERATION BY STATE—Continued [BTU's per KWHR sold)

Oilgas State name

savings Btu/kWh

deemed by the petitioner to be sufficient to support the granting of this exemption);

(3) Environmental impact analysis, as required under $503.13 of these regulations; and

(4) Fuels search, as required under 9503.14 of these regulations. (46 FR 59903, Dec. 7, 1981; 46 FR 63033, Dec. 30, 1981, as amended at 54 FR 52895, Dec. 22, 1989) 8503.37 Cogeneration.

The following table may be used to determine eligibility for a permanent exemption based on oil and natural gas savings. AVERAGE ANNUAL UTILIZATION OF OIL AND NAT

URAL GAS FOR ELECTRICITY GENERATION BY STATE

(BTU's per KWHR sold)

[blocks in formation]

Oilgas savings Btu/kWh

State name

Alabama Arizona Arkansas California Colorado Connecticut Delaware Washington, DC. Florida Georgia Idaho Illinois Indiana lowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont

33 802 1,363 3,502

289 3,924 3,478

895 3,177 45

0 250

53 147 686

34 4,189 2,560

895 5,250

256

Data are based upon 1987 oil, natural gas and electricity statistics published by DOE's Energy Information Administration.

EXAMPLE: The proposed cogeneration project is to be located in Massachusetts and is to use distillate oil. It will have a capacity of 50 MW, an average annual heat rate of 7600 BTU/KWHR, and be operated at a capacity factor of 90%. The annual fuel consumption is therefore calculated to be 2,996x109 Btu/yr. (50,000 KWX7600 BTU/KWHRx.98760 HR/YR) The oil and gas backed off the grid would be calculated to be 2070x109 BTU/YR. (50,000 KWx5250 BTU/KWHRX.9x8760 HR/YR) since the proposed unit would consume more oil that would be "backed off the grid, the unit would not be eligible for a permanent exemption based on savings of oil and natural gas. (54 FR 52895, Dec. 22, 1989)

151 1,519

57
60
139
761
2,695
1,894
1,528
4,219

49
47

36
5,180

0 771 1,800

24 36

20
4,899

107
105

$503.38 Permanent exemption for cer

tain fuel mixtures containing nat

ural gas or petroleum. (a) Eligibility. Section 212(d) of the Act provides for a permanent exemption for certain fuel mixtures. To qualify a petitioner must certify that:

(1) The petitioner proposes to use a mixture of natural gas or petroleum and an alternate fuel as a primary energy source;

(2) The amount of petroleum or natural gas proposed to be used in the mixture will not exceed the minimum percentage of the total annual Btu heat input of the primary energy sources needed to maintain operational reliability of the unit consistent with maintaining a reasonable level of fuel efficiency; and

(3) No alternate power supply exists, as required under $503.8 of these regulations.

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

1

U.S.C. 87101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, Pub. L. 95-620, 92 Stat. 3289 (42 U.S.C. 8301 et seq.); Energy Security Act, Pub. L. 96-294, 94 Stat. 611 (42 U.S.C. 8701 et seq.); E.O. 1209, 42 FR 46267, Sept. 15, 1977.

SOURCE: 45 FR 53692, Aug. 12, 1980, unless otherwise noted. (Approved by the Office of Management and Budget under control number 1903-0075. See 46 FR 63209, Dec. 31, 1981.)

8504.2 Purpose and scope.

(a) Sections 504.5, 504.6, and 504.8, set forth the prohibitions that OFP, pursuant to section 301 of the Act, as amended, may impose upon existing powerplants after a review of the certification and prohibition order compliance schedule submitted by the owner or operator of a powerplant. Sections 504.5 and 504.8 are explanatory sections, and $ 504.6 provides the informational requirements necessary to support the certification.

(b) Sections 504.6 and 504.7, set forth the prohibitions that OFP may impose upon certain electing powerplants, pursuant to former section 301 (b) and (c) of FUA, where OFP can make the findings as to the unit's technical capability and financial feasibility to use coal or another alternate fuel as a primary energy source. The prohibitions may be made to apply to electing powerplants unless an exemption is granted by OFP under the provisions of the Final Rule for Existing Facilities (10 CFR parts 500, 501 and 504) published at 45 FR 53682, Aug. 12, 1980 and 46 FR 59872, Dec. 7, 1981. Any person who owns, controls, rents or leases an existing electing powerplant may be subject to the prohibitions imposed by and the sanctions provided for in the Act or these regulations, if OFP can make the findings required by former section 301 (b) and (c) of FUA. (Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus Budget Reconciliation Act of 1981, Pub. L. 97-35; E.O. 12009, 42 FR 46267, Sept. 15, 1977) [47 FR 50849, Nov. 10, 1982]

the demonstration required by this section:

(1) Duly executed certifications required under paragraph (a) of this section;

(2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption);

(3) A description of the fuel mixture, including component fuels and the percentage of each such fuel to be used; and

(4) Environmental impact analysis as required under $503.13 of these regulations.

(c) Solar mixtures. OFE will grant a permanent mixtures exemption for the use of a mixture of solar energy (including wind, tide, and other intermittent sources) and petroleum or natural gas, where:

(1) Solar energy will account for at least 20 percent of the total annual Btu heat input, of the primary energy sources of the unit; and

(2) Petitioner meets the eligibility and evidentiary requirements of paragraphs (a) and (c) of this section. [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52896, Dec. 22, 1989)

$8503.39-503.44 [Reserved)

PART 504-EXISTING POWERPLANTS

504.2 Purpose and scope. 504.3-504.4 [Reserved] 504.5 Prohibitions by order (certifying pow

erplants under section 301 of FUA, as

amended). 504.6 Prohibitions by order (case-by-case). 504.7 Prohibition against excessive use of

petroleum or natural gas in mixtures

electing powerplants. 504.8 Prohibitions against excessive use of

petroleum or natural gas in mixtures

certifying powerplants. 504.9 Environmental requirements for certi

fying powerplants. APPENDIX I TO PART 504-PROCEDURES FOR

THE COMPUTATION OF THE REAL COST OF

CAPITAL APPENDIX II TO PART 504_FUEL PRICE COM

PUTATION AUTHORITY: Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42

$8504.3-504.4 [Reserved]

conditions subsequent so as to delay

the effectiveness of the prohibitions 8504.5 Prohibitions by order (certi. contained in the final prohibition order fying powerplants under section

until the above events or permits have 301 of FUA, as amended).

occurred or been obtained. (a) In the case of existing power

(Approved by the Office of Management and plants, OFP may prohibit, in accord

Budget under control number 1903-0077) ance with section 301 of the Act, as amended, the use of petroleum or nat (Department of Energy Organization Act, ural gas as a primary energy source

Pub. L. 95–91 (42 U.S.C. 7101 et seq.); Energy where the owner or operator of the

Supply and Environmental Coordination Act

of 1974, Pub. L. 93–319, as amended by Pub. L. powerplant presents a complete certifi

94–163, Pub. L. 95–70, and Pub. L. 95-620 (15 cation concurred in by OFP. The cer

U.S.C. 719 et seq.); Powerplant and Industrial tification, which may be presented at Fuel Use Act of 1978, Pub. L. 95-620, as any time, pertains to the unit's tech amended by Pub. L. 97–35 (42 U.S.C. 8301 et nical capability and financial feasi seq.); Omnibus Budget Reconciliation Act of bility to use coal or another alternate 1981, Pub. L. 97–35) fuel as a primary energy source in the

(47 FR 17044, Apr. 21, 1982] unit. The informational requirements necessary to support a certification are $ 504.6 Prohibitions by order (case-bycontained in $504.6 of these regula case). tions. A prohibition compliance sched

(a) OFP may prohibit, by order, the ule which meets the requirements of

use of natural gas or petroleum as a $504.5(d) shall also be submitted.

primary energy source in existing pow(b) If OFP concurs with the certifi

erplants under certain circumstances. cation, a prohibition order on the pow

In the case of certifying powerplants erplant's use of petroleum or natural

under section 301 of the Act, as amendgas will be issued following the proce

ed, the petitioner must present evidure outlined in $501.52 of these regula

dence to support the certification, retions. (c) The petitioner may amend its cer

quired by $504.6 (c), (d), (e), and (f). In

the case of electing powerplants, OFP tification at any time prior to the ef

must make the following findings refective date of the prohibitions con

quired by 8504.6 (c), (d), (e), and (f), in tained in the final prohibition order in

order to issue a prohibition order to order to take into account changes in relevant facts and circumstances by

the unit, pursuant to former section

301 (b) or (c): following the procedure contained in

(1) The unit currently has, or pre$501.52(d). (d) Prohibition order compliance sched

viously had, the technical capability to ule. The certification described above,

use an alternate fuel as a primary enwhich forms the basis for the issuance

ergy source; of a prohibition order to a powerplant,

(2) The unit has this technical capashall include a prohibition order com

bility now, or it could have the techpliance schedule. The compliance

nical capability without: schedule should contain the following: (i) A substantial physical modifica(1) A schedule of progressive events

tion of the unit; or involved in the conversion project, in

(ii) A substantial reduction in the cluding construction of any facilities rated capacity of the unit; and for the production of fuel or fuel han (3) It is financially feasible for the dling equipment, and contracts for the unit to use an alternate fuel as its pripurchase of alternate fuels, and esti mary energy source. mated date of compliance with the ap (b) In the case of electing power plicable prohibitions of the Act; and plants, OFP must make a proposed

(2) A schedule indicating estimated finding regarding the technical capadates for obtaining necessary federal, bility of a unit to use alternate fuel as state, and local permits and approvals. identified in paragraph (a) (1) of this Any prohibition order issued under the section prior to the date of publication certification provisions of 88 504.5, 504.6, of the notice of the proposed prohibiand 504.8 will be subject to appropriate tion. OFP will publish this finding in

« PreviousContinue »