Page images
PDF
EPUB

(c) Final Compliance Plan. Before an exemption may become effective, the petitioner must submit and OFE must approve a final compliance plan as required by $503.12.

(d) Duration. This temporary exemption may be granted for a period of up to ten (10) years. Unless the petitioner requests otherwise, any temporary exemption from the fuel use prohibitions of the Act for the future use of synthetic fuels will commence on the date of commercial operation of the facility.

NOTE: Contracts based on the anticipated successful demonstration of a development program and/or the anticipated economic feasibility of a synthetic fuels facility, will generally be sufficient to meet the "binding contract" requirements for this exemption. (46 FR 59903, Dec. 7, 1981; 47 FR 15315, Apr. 9, 1982; 54 FR 52894, Dec. 22, 1989)

ated on oil or natural gas only during the construction of an alternate fuel fired unit to be owned or operated by the petitioner; and

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

(d) Duration. This temporary exemp tion, taking into account extension and renewals, may not exceed 5 years. (46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989)

Subpart D-Permanent Exemptions for New Facilities

3503.30 Purpose and scope.

(a) This subpart implements the provisions contained in section 212 of the Act with regard to permanent exemptions for new facilities.

(b) This subpart establishes the criteria and standards which owners or operators of new powerplants and installations who petition for a permanent exemption must meet to sustain their burden of proof under the Act.

(c) All petitions for permanent exemptions for new facilities shall be submitted in accordance with the procedures set out in part 501 of this chapter and the applicable requirements of part 503 of these regulations.

8503.25 Public interest.

(a) Eligibility. Section 211(c) of the Act provides for a temporary public interest exemption. To qualify, a petitioner must demonstrate that:

(1) The unit will be capable of complying with the applicable prohibitions at the end of the proposed exemption period;

(2) The granting of the exemption would be in accord with the purposes of the Act and would be in the public interest; 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 the demonstration required by this section:

(1) Substantial evidence to corroborate the eligibility requirements identified above; and

(2) The anticipated duration of the circumstances which constitute the basis for the exemption.

(c) Certification alternative. If the petitioner requires use of oil or natural gas in a unit, during the construction of an alternate-fuel fired unit, the petitioner may substitute, in lieu of the evidentiary requirements of paragraphs (b)(1) and (2) of this section:

(1) A duly executed certification, including the requested duration of the exemption, that the unit will be oper

8503.31 Lack of alternate fuel supply

for the first 10 years of useful life. (a) Eligibility. Section 212(a)(1)(A)(1) of the Act provides for a permanent exemption due to lack of an adequate and reliable supply of alternate fuel within the first 10 years of useful life of the proposed unit. To qualify, a petitioner must certify that:

(1) A good faith effort has been made to obtain an adequate and reliable supply of an alternate fuel for use as a primary energy source of the quality and quantity necessary to conform with the design and operational requirements of the unit;

(2) Such a supply is not likely to be available within the first 10 years of useful life of the proposed unit;

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

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

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

(b) Evidence required in support of a petition. A petition must include the following evidence in order to make 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 para graph (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) Environmental impact analysis, as required under $503.13 of these regulations; and

(4) Fuels search, as required under 8503.14 of these regulations. (46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989) 8 503.32 Lack of alternate fuel supply

at a cost which does not substantially exceed the cost of using im

ported petroleum. (a) Eligibility. Section 212(a)(1) (A)(ii) of the Act provides for a permanent exemption due to lack of an alternate fuel supply at a cost which does not substantially exceed the cost of using imported petroleum. To qualify a petitioner must certify that:

(1) A good faith effort has been made to obtain an adequate and reliable supply of an alternate fuel for use as a primary energy source of the quality and quantity necessary to conform with the design and operational requirements of the proposed unit;

(2) The cost of using such a supply would substantially exceed the cost of using imported petroleum as a primary energy source during the useful life of the proposed unit as defined in $503.6 (cost calculation) of these regulations;

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

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

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

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

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

(2) Exhibits containing the basis for 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) Environmental impact analysis, as required under $503.13 of these regulations;

(4) Fuels search, as required under 8503.14 of these regulations; and

(5) All data required by $503.6 (cost calculation) of these regulations necessary for computing the cost calculation formula. (46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 54 FR 52895, Dec. 22, 1989)

$503.33 Site limitations.

(a) Eligibility. Section 212(a)(1)(B) of the Act provides for a permanent exemption due to site limitations. To qualify for such an exemption, a petitioner must certify that:

(1) One or more specific physical limitations relevant to the location or operation of the proposed facility exist which, despite good faith efforts, cannot reasonably be expected to be overcome within five years after commencement of operations;

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

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

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

NOTE: Examples of the types of site limitations to which a petitioner may certify in order to qualify for this exemption include:

(1) Inaccessibility of alternate fuels as a result of a specific physical limitation;

(11) Unavailability of transportation facilities for alternate fuels;

(iii) Unavailability of adequate land or facilities for handling, using or storing an alternate fuel;

(iv) Unavailability of adequate land or facilities for controlling and disposing of wastes, including pollution control equip ment or devices necessary to assure compliance with applicable environmental requirements;

(v) Unavailability of adequate and reliable supply of water, including water for use in compliance with applicable environmental requirements; or

(vi) Other site limitations exist which will not permit the location or operation of the proposed unit using an alternate fuel.

(b) Evidence required in support of the petition. A petitioner must include in the petition the following evidence in order to make the demonstration required by this section:

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

tion;

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

(4) Fuels search, as required under 8503.14 of these regulations. (46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989)

ble Federal or state environmental requirements, are not available.

NOTE: (1) For purposes of considering an exemption under this section, OFE's decision will be based solely on an analysis of the petitioner's capacity to physically achieve ap plicable environmental requirements. The cost of compliance is not relevant, but costrelated considerations may be presented as part of a demonstration submitted under $ 503.32 (Lack of alternate fuel supply).

(2) Prior to deciding to submit an exemption petition, it is recommended that a petitioner request a meeting with OFE and EPA or the appropriate state or local regulatory agency to discuss options for operating an alternate fuel-fired facility in compliance with the applicable environmental requirements.

(b) (Reserved)

(c) Evidence required in support of a petition. The petitioner must include in the petition the following evidence in order to make the demonstration required by this section:

(1) Where the petitioner has applied for a construction permit from EPA or an appropriate state agency prior to petitioning for an exemption from OFE under this section, a copy of such application and a synopsis of all supporting documents filed with or subsequent to the application must be submitted to OFE with the petition or at the time filed with the permitting agency;

(2) To the extent applicable, a copy of the EPA or state denial of the construction permit application;

(3) To the extent applicable, a synopsis of the administrative record of the EPA or state or local permit proceedings;

(4) To the extent applicable, a summary of the technology upon which the denial was based, including a performance comparison between the proposed technology and that technology which 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. Al such analysis must be based on accepted analytical techniques, such as air quality modeling, and reflect current conditions of the area which would be

3.34 Inability to comply with applicable environmental requirements. (a) Eligibility. Section 212(a)(1)(C) of the Act provides for a permanent exemption due to the inability to comply with applicable environmental requirements. To qualify, a petitioner must demonstrate that despite good faith efforts:

(1) The petitioner will be unable within 5 years after beginning operation, to comply with the applicable prohibitions imposed by the Act with out violating applicable Federal or state environmental requirements; and

(2) Reasonable alternative sites, which would permit the use of alternate fuels in compliance with applica

affected by the facility. The petitioner area as defined in part D of the Clean is responsible for obtaining the nec- Air Act for any pollutant which would essary data to accurately characterize be emitted by the facility; or, even these conditions. Environmental com- with the application of the lowest pliance must be examined in the con achievable emission rate, the use of an text of available pollution control alternate fuel will cause or contribute equipment which would provide the to concentrations in an air quality conmaximum possible reduction of pollu- trol region of a pollutant for which any tion. The analysis must contain: (i) Re- national ambient air quality standard quests for bids and other inquiries is or would be exceeded; made and responses received by the pe (ii) No alternate power supply exists, titioner concerning the availability as required under $503.8 of these reguand performance of pollution controllations; equipment; or (ii) other comparable (iii) Alternative sites are not availevidence such as technical studies doc- able, as required under $503.11 of these umenting the efficacy of equipment to regulations; and meet applicable requirements;

(iv) Use of mixtures is not feasible, as (6) An examination of any regulatory required under $503.19 of these regulaoptions available to the petitioner in

tions. seeking to achieve environmental com (2) A petition by certification under pliance (such as offsets, variances and this paragraph must include: State Implementation Plan (SIP) revi (i) Duly executed certifications resions); and

quired under paragraph (d)(1) of this (7) Any other documentation which section; demonstrates an inability to comply (ii) Exhibits containing the basis for with applicable environmental require the certifications required under paraments;

graph (d)(1) of this section (including (8) No alternate power supply exists those factual and analytical materials as required under $503.8 of these regu deemed by the petitioner to be suffilations;

cient to support the granting of this (9) Use of mixtures is not feasible, as exemption); required under $503.9 of these regula

(iii) Environmental impact analysis, tions;

as required under $503.13 of these regu(10) Alternative sites are not avail lations; and able, as required under $503.11 of these

(iv) Fuels search, as required under regulations;

8503.14 of these regulations. (11) Environmental impact analysis, 146 FR 59903, Dec. 7, 1981, as amended at 54 as required under $503.13 of these regu- FR 52895, Dec. 22, 1989) lations; and

(12) Fuels search, as required under $503.35 Inability to obtain adequate $503.14 of these regulations.

capital. (d) Certification alternative. (1) To (a) Eligibility. Section 212(a)(1)(D) of qualify for this exemption, in lieu of the Act provides for a permanent exmeeting the evidentiary requirements emption due to inability to obtain adeof paragraph (c) of this section, a peti quate capital. To qualify, a petitioner tioner may certify that:

must certify that: (i) The site for the facility is or will (1) Despite good faith efforts the petibe located in a Class I area or Class II tioner will be unable to comply with area in which the allowable increment the applicable prohibitions imposed by established by law has been consumed, the Act because the additional capital as defined in part of the Clean Air required for an alternate fuel-capable Act; the use of an alternate fuel will unit beyond that required for the procause or contribute to concentrations posed unit cannot be raised; of pollutants which would exceed the (2) The additional capital cannot be maximum allowable increases in a raised: Class I or Class II area even with the (i) Due to specific restrictions (e.g., application of best available control convenants on existing bonds) which technology; the site for the facility is constrain management's ability to or will be located in a non-attainment raise debt or equity captial;

(ii) Without a substantial dilution of shareholder equity;

(iii) Without an unreasonably adverse affect on the utility's credit rating; or

(iv) In the case of non-investor-owned public utilities, without jeopardizing the utility's ability to recover its cap ital investment, through tariffs, with

unreasonably adverse economic effect on its service area (such as adverse impacts on local industry or undue hardship to ratepayers).

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

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

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

(b) Evidence required in support of a petition. A petition must include the following evidence in order to make 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) Environmental impact analysis, as required under $503.13 of these regulations; and

(4) Fuels search, as required under 8503.14 of these regulations. (46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 54 FR 52895, Dec. 22, 1989)

been unable to do so or has demonstrated why none is available;

(3) The granting of the exemption would be in the public interest and would be consistent with the purposes of the Act;

(4) The petitioner is not entitled to an exemption for lack of alternate fuel supply, site limitation, environmental requirements, or inability to obtain adequate capital at the site of the proposed powerplant or at any reasonable alternative site for the alternate fuel(s) considered;

(5) At the proposed site and every reasonable alternative site where the petitioner is not entitled to an exemption for lack of alternate fuel supply, site limitation, environmental requirements, or inability to obtain adequate capital, the petitioner nevertheless would be barred at each such proposed or alternate site from burning an alternate fuel by reason of a State or local requirement;

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

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

(b) Evidence required in support of a petition. The petition must include the following evidence in order to make 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) Environmental impact analysis, as required under $503.13 of these regulations; and

(4) Fuels search, as required under 8503.14 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.

3503.36 State of local requirements.

(a) Eligibility. Section 212(b) of the Act provides for an exemption due to certain State or local requirements. To qualify a petitioner must certify that:

(1) With respect to the proposed site of the unit, the operation or construction of the new unit using an alternate fuel is infeasible because of a State of local requirement other than a building code, nuisance, or zoning law;

(2) The petitioner has made a good faith effort to obtain a variance from the State or local requirement but has

« PreviousContinue »