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place (existing or exempt) covered by FUA if they are less than 40 years old in the case of a field-erected unit or less than 20 years old in the case of a package unit. In the case of existing units, you may not include units that have burned an alternate fuel or are capable of burning an alternate fuel, and, you may only include units described by this paragraph if they will be retired or shut down if this exemption is granted.

(iii) You may include the oil or gas that would be consumed by units not yet constructed that would be covered by the FUA regulations if you can demonstrate that each unit would be entitled to an exemption.

(iv) You may include the oil or gas that would be consumed by powerplants to generate electricity supplied to the grid to the extent that such electricity, if you cogenerate, will no longer be supplied by the grid. The oil or gas portion must be based on a 10 year forecast that includes new construction and retirement of plants within those 10 years.

(2) In the case of a cogeneration facility that would consist of an existing unit or an exempted unit and a new unit, you must calculate the amount of oil or gas that would otherwise be consumed as the sum of:

(i) The five-year annual average oil or gas consumption of the existing or exempted unit; and

(ii) The amount that would be consumed in units described in paragraphs (c)(1)(i) through (iv) of this section that would now be satisfied by the cogeneration facility.

(d) Evidence required in support of a petition. You must include in your Fuels Decision Report at least the following evidence in order to make the demonstration required by this section:

(1) An engineering description of the cogeneration system, including output and uses thereof, with sufficient detail to ensure that the facility qualifies as a cogeneration facility;

(2) A detailed oil and natural gas savings calculation identifyng the projected oil or natural gas consumption of the cogeneration facility and the oil or natural gas that would otherwise be used;

(3) Identification of the FUA staus of the units described in paragraph (c)(1)(i) through (iv) of this section with respect to coverage and designation as new, existing, or exempted, age of units, and alternate fuel capability of units;

(4) Identification of all persons and their roles in the cogeneration facility; and

(5) In the case of paragraph (a)(2) of this section, an explanation of the public interest factors you believe should be considered by ERA.

(e) Exercise of discretion by ERA. ERA may refuse to grant this exemption to you if it determines that such grant would not be in the public interest or in accordance with the purposes of the Act, notwithstanding the fact that the evidence you have furnished to ERA in your exemption petition substantiates that your facility would otherwise be eligible to receive this exemption. (Dept. 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. 3289 (42 U.S.C. 8301 et seq.); E.O. 12009, 42 FR 46267) (44 FR 43208, July 23, 1979)

PART 508—SPECIAL RULE FOR TEM

PORARY PUBLIC INTEREST EXEMPTION

Sec.
508.1 Policy.

8.2 Eligibility. 508.3 Duration. 508.4 Limitation of applicability. 508.5 Definitions. 508.6 Terms and conditions; enforcement. 508.7 Evidence required in support of a pe

tition. 508.8 Administrative provisions.

AUTHORITY: Dept. of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 U.S.C. 7101 et seg); Powerplant and Industrial Fuel Use Act of 1978, Pub. L. 95-620, 92 Stat. 3289 (42 U.S.C. 8301 et seq).

SOURCE: 44 FR 21231, Apr. 9, 1979, unless otherwise noted.

8 508.1 Policy.

ERA intends to issue temporary public interest exemptions to existing powerplants which are subject to the prohibitions of section 301(a) (2) or (3) mination to be in the public interest. A temporary public interest exemption, including all extensions, may not exceed the maximum five year period authorized by the Act.

of FUA and which would otherwise burn middle distillates or residual fuel oils as a primary energy source. ERA's grant of a special temporary exemption under this part would not relieve an existing powerplant from compliance with any pertinent rules or regulations concerning the acquisition or distribution of natural gas that are administered by the Federal Energy Regulatory Commission (FERC) or any pertinent State regulatory agency or from any public utility obligations to pertinent categories of customers. This part pertains exclusively to a special temporary exemption from the provisions of FUA. 8 508.2 Eligibility.

Section 311(e) of the Act provides for discretionary temporary public interest exemptions. You will be eligible to petition under this special rule for a temporary public interest exemption to burn natural gas if you meet the following criteria:

(a) Your existing powerplant will be:

(1) Prohibited on May 8, 1979, from using natural gas as a primary energy source by section 301(a)(2) of the Act,

8 508.4 Limitation of applicability.

ERA may determine to limit the applicability of this special rule to certain facilities or to specific geographic areas when such limitation is in the public interest. In making a determination whether to establish any limitations, the Administrator may consider, among other criteria, the impact of the grant or denial of the exemption on air quality, on regional or local energy supply, on refinery output and regional availability of petroleum products in light of refinery capabilities, on facilitating and advancing coal conversion programs, and on system supplies of natural gas.

or

(2) Prohibited from using natural gas in excess of the average base year quantities allowed in section 301(a)(3) of the Act;

(b) Your proposed use of natural gas as a primary energy source, to the extent that such natural gas use would be prohibited by section 301(a) (2) or (3) of the Act,

(1) Will displace consumption of middle distillates or residual fuel oils as defined in $ 508.5 of this part; and

(2) Will not displace the use of coal or any other alternate fuel in any facility of your utility system, including the powerplant for which you are petitioning for an exemption.

8 508.5 Definitions.

(a) This subpart defines certain terms which are unique to this part 508. Other pertinent definitions are contained in $ 500.2, which was published in the form of proposed rules in the FEDERAL REGISTER, (43 FR 53974, November 17, 1978).

(b) Throughout this part, “Act” or "FUA” means the Powerplant and Industrial Fuel Use Act of 1978 (Pub. L. 95-620, November 9, 1978).

(c) For purposes of this part:

(1) “Fuel oil” means middle distillates or residual fuel oils including #1 and #2 heating oils, kerosene-base jet fuel, #4, #5, and #6 fuel oils; crude oil burned directly as a fuel, and blends of any of the above.

(2) The term "middle distillate" means any derivatives of petroleum, including kerosene, home heating oil, range oil, stove oil, diesel fuel, and Type A (kerosene-base) aviation turbine fuel which have a fifty percent boiling point in the ASTM D86 standard distillation test falling between 371° and 700° F. Products specifically excluded from this definition are all specialty items which are solvents, lubricants, waxes and process oil;

(3) The term "residual fuel oil” means the fuel oil commonly known as: (i) No. 4, No. 5 and No. 6 fuel oils;

8 508.3 Duration.

ERA intends to grant temporary exemptions for an initial period of up to two years, and may extend such exemptions for periods of from one to three additional years. The grant of a temporary public interest exemption under this special rule is subject to termination by ERA upon six months written notice, if ERA deems such ter

(ii) Bunker C; (iii) Navy Special Fuel Oil; (iv) all other fuel oils which have a fifty percent boiling point over 700° F in the ASTM D-86 standard distillation test, (v) Nos. 3, 4 and 6 intermediate fuel oils (which are blended with or contain No. 6 oil); and (vi) for the purposes of this rule, crude oil burned directly as a fuel.

tion of middle distillates or residual fuel oils as defined in $ 508.5 of this part; and

(D) Your proposed use of natural gas, for which you are petitioning for an exemption, will not displace coal or any other alternate fuel in any of facilities in your utility system including the facility for which you are petitioning for an exemption.

(b) If you are requesting a temporary exemption for more than two years, you must demonstrate why it would be in the public interest for ERA to grant your petition for more than a two-year period.

8 508.6 Terms and conditions; enforce

ment. (a) You must comply with the terms and conditions of an exemption granted under this part by ERA.

(b) An exemption is subject to termination upon the violation of any of its terms and conditions.

(c) The granting or denial of a petition for a temporary public interest exemption under this special rule shall have no effect upon the rights of a petitioner granted under the Act to receive any other exemption, temporary or permanent, from any prohibitions under the Act.

8 508.7 Evidence required in support of a

petition. (a) You must include and certify to the following in your petition:

(1) Your name, mailing address, telephone number, and name of person to contact;

(2) The geographic location of each facility for which you are petitioning for an exemption;

(3) An affadavit, signed by a responsible officer of petitioner, which states:

(i) An estimate of the volumes, type and sulfur content of the fuel oil which will be displaced by natural gas at the facility for which you are petitioning for an exemption;

(ii) That the facility for which you are petitioning for an exemption is either

(A) Prohibited on May 8, 1979, from using natural gas as a primary energy source by section 301(a)(2) of the Act, or

(B) Prohibited from using natural gas in excess of the average base year quantities allowed in section 301(a)(3) of the Act;

(C) Your proposed use of natural gas as prohibited by section 301(a) (2) or (3) of the Act, will displace consump

8 508.8 Administrative provisions.

(a) This section establishes general procedures which are unique to this special rule (Part 508). Other procedures which may be applicable to this special rule are provided in Part 501, (published in the form of proposed rules in the FEDERAL REGISTER, 43 FR 53974 (November 17, 1978)), except that Subpart B of Part 501 in regard to filing fees does not apply to this special rule.

(b) You must submit your petition to the Assistant Administrator for Fuels Regulation, Economic Regulatory Administration, 2000 M Street, N.W., Washington, D.C. 20461.

(c) You may submit your petition at any time after publication of this special rule.

(d) You should clearly label any petition or document that you file with ERA under this part as "FUA Petition for Special Public Interest Exemption (Natural Gas)” both on the document and on the outside of the envelope in which the document is transmitted.

PART 515- TRANSITIONAL

FACILITIES

ubpart A-General Provisions

Sec. 515.1 Policy. 515.2 Purpose and scope.

Subpart B-Electric Powerplants 515.3 Eligibility. 515.4 Powerplants automatically classified Sec. 515.5 Powerplants automatically classified

as “new”.

as "existing". 515.6 Powerplants which ERA will classify

as "existing". 515.7 Evidence required in support of a re

quest for classification.

Subpart C-Major Fuel-Burning Installations

515.10 Eligibility. 515.11 Installations automatically consid

ered to be "new". 515.12 Installations automatically consid

ered to be “existing". 515.13 Installations which ERA will classi

fy as “existing". 515.15 Evidence required in support of a

request for classification.

Subpart D-Definitions

515.20 Definitions.

Subpart E-Administrative Provisions

515.25 Purpose and scope. 515.26 Notice and public comment. 515.27 Conferences. 515.28 Appearance before ERA. 515.29 Computation of time. 515.30 Service. 515.31 General filing requirements. 515.32 Extension of time. 515.33 Effective date of decision. 515.34 Order of precedence. 515.35 Addresses for filing documents with

the ERA. 515.36 Office of Public Information.

AUTHORITY: Dept. 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. 3289 (42 U.S.C. 8301 et seq.); E.O. 12009, 42 FR 4267.

SOURCE: 44 FR 60692, Oct. 19, 1979, unless otherwise noted.

tional facilities which are in the early stages of planning and construction, and which would not incur a substantial financial penalty, an adverse effect upon electric system reliability (for powerplants), or a significant operational detriment (for major fuelburning installations). These facilities will therefore be considered to be “new." As new facilities, they will be subject to the statutory prohibitions of Title II of FUA, but will have the opportunity to petition ERA for an exemption from those prohibitions. Where a person requesting classification of a transitional facility as “existing” can demonstrate that the facility is in a more advanced stage of construction and would sustain any of the penalties, adverse effects, or detriments identified above, ERA will classify the facility as “existing" in order to avoid disruptive impacts on the facility as well as on the economy at large.

(b) You are eligible to request that ERA classify your transitional facility as “existing” if a contract for the facility's construction or acquisition was signed prior to November 9, 1978. Moreover, you are also eligible to request that ERA classify your transitional facility as “existing” if a contract was signed prior to November 9, 1978, for the reconstruction of your facility (including refurbishment of or addition to the facility) to the extent that the reconstruction equals or exceeds 50 percent of the price of a replacement unit. We base these criteria for eligibility as a transitional facility on the principle that a contract constitutes a commitment, after which time any cancellation, rescheduling, or modification may result in a substantial financial penalty, a significant operational detriment, or an adverse effect on electric system reliability. If you are otherwise eligible to request classification of a rental boiler under this part, your request must also be filed on behalf of all other persons, if any, who have an interest in (i.e., own, operate and/or control) the boiler at the time the request is filed, unless ERA has, for good cause shown, waived this requirement.

(c) We have established milestones whereby facilities will automatically

Subpart A-General Provisions

8 515.1 Policy.

(a) The Economic Regulatory Administration (ERA) intends to administer the provisions of the Powerplant and Industrial Fuel Use Act of 1978 (FUA or the Act) relating to transitional facilities in a firm but fair and practical manner. A transitional facility is one which was not operational on April 20, 1977, but for which a contract for its construction or acquisition was signed prior to November 9, 1978, the date of FUA's enactment. ERA will not classify as “existing,” transi

а

an

be considered “new” or “existing" without contacting ERA. Where no contract for construction or acquisition of a facility was signed prior to November 9, 1978, the facility is clearly “new." Facilities which were operational, as defined in these regulations, on or before April 20, 1977, are automatically deemed “existing.” Individual transitional facilities with design capability of consuming any fuel at a heat input rate which does not equal or exceed 100 million BTU'S per hour, are automatically deemed “existing.”

(d) To further facilitate the processing of requests for classification of transitional facilities and to reduce the administrative burden on persons requesting classification and ERA alike, facilities which were completed and title transferred, operational or at a certain stage of construction by designated dates will be classified as “existing” upon certification to ERA and, in some cases, the submission of minimal documentation. Under this approach, powerplants and MFBIs which were completed on or before April 20, 1977 and for which title was transferred to the purchaser on or before April 20, 1977, will be classified as “existing" by ERA. In addition, units which were operational on May 8, 1979 (the effective date of FUA) will be classified as “existing" by ERA. Moreover, MFBIs which are prefabricated boilers and powerplants which are prefabricated boilers or combustion turbines which had been shipped by the manufacturer, or which had their main steam drum in place (for fielderected boilers) by November 9, 1978, will similarly be classified as “existing.”

(e) ERA believes that a powerplant or MFBI will incur a “substantial financial penalty" where 25 percent or more of the total projected project cost has been expended or irrevocably committed as of November 9, 1978. In assessing the expenditures or committed costs, however, ERA will exclude outlays which can be used toward the construction of an alternate fuel-fired facility or which may be cancelled. The limitation to nonrecoverable outlays follows from the definitions of new powerplants and MFBIs in Sec

tion 103 of the Act. These definitions recognize the extra costs that are incurred in building an alternate fuelfired plant by cancelling, rescheduling or modifying a partially completed oil or gas-fired plant.

(f) Where these nonrecoverable outlays do not reach 25 percent of the total projected project cost, ERA may consider other financially-related factors presented on a case-by-case basis. The purpose of these additional caseby-case evaluations, where facilities have not expended beyond 25 percent of their total projected project cost, in to permit persons requesting classification to present ERA with full explanations of the financial penalties they believe they may incur, but which are otherwise not properly included in computing the 25 percent test.

(g) If your transitional facility is a powerplant, one of the considerations ERA will employ in reaching a determination applicable to adverse effect on electric system reliability is whether the cancellation, rescheduling

modification of your proposed powerplant would result in your electric region's reserve margin falling below 20 percent during the 12-month period after you expect your proposed powerplant to begin operation. You may present whatever evidence you deem appropriate to ERA's reaching a determination on your claim of an adverse effect on electric system reliability.

(h) If your transitional facility is a major fuel-burning installation, your unit will be designated “existing" if you demonstrate to ERA that you would incur a significant operational detriment as a result of cancelling, rescheduling, or modifying your facility. In light of the complexity and variety of operational requirements in the MFBI sector, ERA will review these requests for classification on a case-bycase basis.

or

[44 FR 60692, Oct. 19, 1979, as amended at 44 FR 69920, Dec. 5, 1979)

8 515.2 Purpose and scope.

(a) Purpose. These rules govern requests for classification of transitional facilities by ERA as “existing" facilities subject to the provisions of Title

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