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SUBCHAPTER E-ALTERNATE FUELS

PART 500-DEFINITIONS

Sec. 500.1 Purpose and scope. 500.2 General definitions. 500.3 Electric regions-electric region

groupings for reliability measurements under the Powerplant and Industrial

Fuel Use Act of 1978. 500.4 Criteria for determining if an electric

generating unit is jurisdictional. 500.5 Criteria for determining if an indus

trial unit is jurisdictional. 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 46267, Sept. 15, 1977.

SOURCE: 45 FR 38280, June 6, 1980, unless otherwise noted.

8 500.1 Purpose and scope.

Unless otherwise expressly provided or the context clearly indicates otherwise, this section defines the terms used in these regulations. The use of the male gender is to include female; the use of singular to include plural.

(1) A single State agency designated as the official State air pollution control agency;

(2) An agency established by two or more States and having substantial powers or duties pertaining to the prevention and control of air pollution;

(3) A city, county, or other local government health authority or, in the case of any city, county, or other local unit of government in which there is an agency other than the health authority charged with responsibility for enforcing ordinances or laws relating to the prevention and control of air pollution, such other agency; or

(4) An agency of two or more municipalities located in the same State or in different States and having substantial powers or duties pertaining to the prevention and control of air pollution.

“Alternate fuel" means electricity or any fuel, other than natural gas or petroleum. The term includes, but is not limited to:

(1) Coal;
(2) Solar energy;

(3) Petroleum coke; shale oil; uranium; biomass; municipal, industrial, or agricultural wastes; wood; and renewable and geothermal energy sources (for purposes of this paragraph (3), the term "industrial” does not include refineries);

(4) Liquid, solid, or gaseous waste by. products of refinery or industrial operations which are commercially unmarketable, either by reason of quality or quantity. (For purposes of this paragraph (4), the term “waste by-product” is defined as an unavoidable byproduct of the industrial or refinery operation).

(i) A waste by-product of a refinery operation is commercially unmarketable if it meets the criteria listed in the definition of petroleum set forth below.

(ii) A waste by-product of an industrial operation is commercially unmarketable either by reason of:

(A) Quality, where the cost of processing (limited to upgrading the product to commercial quality), storing,

$ 500.2 General definitions.

For purposes of this part and Parts 501-518 the term(s):

“Act” means “FUA.

“Action" means a prohibition, by rule or order, in accordance with sections 202, 301 (b) and (c), 302 (a) and (b), 401, 402 and 405 of FUA; an order granting or denying an exemption in accordance with sections 211, 212, 311, and 312 of FUA; a modification or rescission of any such order, or rule; an interpretation; a notice of violation; a remedial order; an interpretive ruling; or a rulemaking, undertaken by DOE.

“Affiliate”, when used in relation to person, means another person who controls, is controlled by, or is under common control, with such person.

“Aggrieved”, for purposes of administrative proceedings, describes and means a person (with interest sought to be protected under FUA) who is adversely affected by an action proposed or undertaken by DOE.

"Air pollution control agency” means any of the following:

an

and distributing the by-product would not be covered by reasonably expected revenues from its sale; or

(B) Quantity, where the cost of aggregating the by-product into commercial quantities through storing and distributing the by-product would not be covered by reasonably expected revenues from its sale.

(5) Any fuel derived from an alternate fuel; and

(6) Waste gases from industrial operations. (For purposes of this paragraph, the term “industrial” does not include refineries.)

“Applicable environmental requirements” includes:

(1) Any standard, limitation, or other requirement established by or pursuant to Federal or State law (including any final order of any Federal or State court) applicable to emissions of environmental pollutants (including air and water pollutants) or disposal of solid waste residues resulting from the use of coal or other alternate fuels, natural gas, or petroleum as a primary energy source or from the operation of pollution control equipment in connection with such use, taking into account any variance of law granted or issued in accordance with Federal law or in accordance with State law to the extent consistent with Federal law; and

(2) Any other standard, limitation, or other requirement established by, or pursuant to, the Clean Air Act, the Federal Water Pollution Control Act, the Solid Waste Disposal Act, the Resource Conservation and Recovery Act of 1976, or the National Environmental Policy Act of 1969.

"Base load powerplant” means powerplant, the electrical generation of which in kilowatt hours exceeds, for any 12-calendar-month period, such powerplant's design capacity multiplied by 3,500 hours.

“Boiler" means a closed vessel in which water is heated or vaporized to produce steam of one (1) percent or more quality.

“Btu” means British thermal unit. “Capability to use alternate fuel", for the purpose of the Title II prohibition relating to construction of new powerplants, means the powerplant to be constructed must be able to use, in

compliance with applicable environmental requirements, an alternate fuel as a primary energy source on a continuous basis at the time it becomes operational or at the expiration of a temporary exemption. This alternate fuel must be available to the operator at the powerplant site at the time it becomes operational or at the expiration of a temporary exemption. Examples:

(1) High-Btu gas from coal is an alternate fuel within FUA. If a petitioner proposes to construct a new powerplant that is to use natural gas, he cannot assert, for purposes of the prohibition on construction of new powerplants without alternate fuel capability, that the powerplant is capable of using high-Btu gas from coal as a primary energy source unless this gas will be available to the powerplant in sufficient quantities to be a primary energy source at the time of initial operation or upon expiration of a temporary exemption.

(2) A petitioner who proposes to construct a new powerplant that will have a boiler capable of using either coal or oil, would be in violation of the prohibition on construction relating new powerplants without alternate fuel capability, absent an exemption, unless the powerplant is constructed with coal handling, pollution control, and ash removal systems and other equipment necessary to burn coal so in compliance with applicable environmental requirements or standards.

“Clean Air Act” means the Clean Air Act, 42 U.S.C. 7401 et seq. (1970), as amended by Pub. L. 93-319, 88 Stat. 246, and Pub. L. 95-91, 91 Stat. 685.

“Coal” means anthracite, bituminous and sub-bituminous coal, lignite, and any fuel derivative thereof.

“Cogeneration facility” means an electric powerplant or a major fuel burning installation that produces:

(1) Electric power; and

(2) Any other form of useful energy (such as steam, gas, or heat) that is, or will be, used for industrial, commercial, or space heating purposes. In addition, for purposes of this definition, electricity generated by the cogeneration facility must constitute than ten (10) percent and less than

a

more

ninety (90) percent of the useful energy output of the facility.

“Combined cycle unit” means a unit that consists of a combination of one or more combustion turbine units and one or more waste heat boilers with a substantial portion of the required energy input to the waste heat boiler provided by the exhaust gas from the combustion turbine unit(s).

“Conference" means an informal meeting, incident to any proceeding, between DOE and any interested person.

“Combustion turbine” means a unit that is a rotary engine driven by a gas under pressure that is created by the combustion of any fuel.

“Construction" means substantial physical activity at the unit site and includes more than clearance of a site or installation of foundation pilings. The addition of a waste heat recovery or supplemental-fired boiler to an existing combustion turbine constitutes construction of a new combined cycle unit. The addition of a combustion turbine, as a heat source for an existing boiler, also constitutes construction of a new combined cycle unit.

“Cost of petroleum or natural gas” means the cost of imported oil as computed in $ 503.6(d)(2) of these regulations.

“Costs” means total costs, both operating and capital, incurred over the estimated remaining useful life of an electric powerplant or major fuel burning installation, discontinued to the present pursuant to rules established in Parts 503 and 504 of these regulations.

“DEOA” means the Department of Energy Organization Act (Pub. L. 9591) (42 U.S.C. 7101 et seq.), as implemented by Executive Order 12009 (42 FR 46267, September 15, 1977).

“Design capability” shall be determined as follows:

(1) For a powerplant defined in section 103(a)(7) of FUA:

(i) Boiler and associated generator turbines. The design fuel heat input rate of a steam-electric generating unit (Btu/hr) shall be the product of the generator's nameplate rating, measured in kilowatts, and 3412 (Btu/ kWh), divided by the overall boilerturbine-generator unit design efficien

cy (decimal); or if the generator's nameplate does not have a rating measured in kilowatts, the product of the generator's kilovolt-amperes nameplate rating, and the power factor nameplate rating, and 3412 (Btu/kWh), divided by the boiler turbine-generator unit's design efficiency (decimal). (The number 3412 converts kilowatt-hours (absolute) into Blu's (mean).)

(ii) Combustion turbine and associated generator. The design fuel heat input rate of a combustion turbine (Btu/hr) shall be the product of its nameplate rating, measured in kilowatts, and 3412 (Btu/kWh), divided by the combustion turbine-generator unit's design efficiency (decimal), adjusted for peaking service at an ambient temperature of 59 degrees Fahrenheit (15 degrees Celsius) and at the unit's elevation. (The number 3412 converts kilowatt-hours (absolute) into Btu's (mean).)

(iii) Combined cycle unit. The design fuel heat input rate of a combined cycle unit (Btu/hr) shall be the summation of the product of its generator's nameplate rating, measured in kilowatts, and 3412 (Btu/kWh), divided by the overall combustion turbinegenerator unit's efficiency (decimal), adjusted for peaking service at an ambient temperature of 59 degrees Fahrenheit (15 degrees Celsius) and at the unit's elevation, plus the product of the maximum fuel heat input to any supplemental heat recovery steam generator/boiler in gallons or pounds per hour and the fuel's heat content. If the generator's nameplate does not have a rating measured in kilowatts, the product of the generator's kilowatt-amperes nameplate rating and power factor nameplate rating must be substituted for kilowatts. (The number 3412 converts kilowatt-hours (absolute) into Btu's (mean).)

(2) For a major fuel burning installation, defined in section 103(a)(10) of FUA, the fuel heat input rate of a boiler (Btu/hr) shall not be less than the safety valve relieving capacity (lbs/hr) multiplied by the enthalpy difference (Btu/lb) of feedwater input and steam output, divided by the boiler design efficiency (decimal) for the fuel. For the purpose of this definition, the safety valve capacity shall be determined in accordance with the current American Society of Mechanical Engineers Boiler and Pressure Vessel Code.

“Design capacity” of a powerplant, pursuant to section 103(a)(18) of FUA, is determined according to 18 CFR 287.101.

“DOE” or “the Department” means the United States Department of Energy, as defined in sections 201 and 301(a) of the DEOA, including the Secretary of Energy or his designee.

“Duly authorized representative" means a person who is authorized to appear before DOE in connection with a proceeding on behalf of a person interested in or aggrieved by that proceeding. Such appearance may include the submission of applications, petitions, requests, statements, memoranda of law, other documents, or of a personal appearance, oral communication, or any other participation in a proceeding.

“Electric generating unit” does not include:

(1) Any electric generating unit subject to the licensing jurisdiction of the Nuclear Regulatory Commission (NRC); and

(2) Any cogeneration facility from which less than half of the annual electric power generation is sold or exchanged for resale.

NOTE: For purposes of paragraph (1) of this definition, ERA will not consider any unit located at a site subject to NRC's licensing authority to be jurisdictional for purposes of FUA.

“Electric powerplant” means any stationary electric generating unit, consisting of (a) a boiler, (b) a gas turbine, or (c) a combined cycle unit which employs a generator to produce electric power for purposes of sale or exchange and:

(1) Has the design capability of consuming any fuel (or mixture thereof) at a fuel heat input rate of 100 million Btu's per hour or greater; or

(2) Is in a combination of two or more electric generating units that are located at the same site and that in the aggregate have a design capability of consuming any fuel (or mixture thereof) at a fuel heat input rate of 250 million Btu's per hour or greater.

NOTE: (i) To determine if an electric generating unit is to be aggregated toward the 250 million Btu's per hour threshold for purposes of paragraph (2), see $ 500.4 of this part.

(ii) To determine if electric generating units, for purposes of paragraph (2) of this definition, are located at the same site, ERA will consider physical proximity, common ownership or control, and whether noncontiguous parcels are connected by any easements, pipes, or steam lines under common ownership. All powerplants located at the same site will be considered in combination.

(3) ERA will not aggregate toward the 250 million Btu's per hour threshold any rental boiler being used because of and in compliance with an unanticipated equipment outage, emergency, or temporary emergency condition as described in Subpart M of these regulations.

"Electric Region” is as defined in $ 500.3 of this part.

"Electric utility” means any person, including any affiliate, or Federal agency, which sells electric power.

"Emission offset” means emission reductions as defined by EPA's regulations set forth at 40 CFR Part 51, Appendix 5.

“ERA” means the United States Environmental Protection Agency.

"EPA” means the Economic Regulatory Administration of DOE.

"Existing powerplant” means any powerplant other than a new powerplant.

"Existing major fuel burning installation" means any installation which is not a new major fuel burning installation.

“Federal Water Pollution Control Act” means 33 U.S.C. 1251 et seq., as amended.

"FERC” means the Federal Energy Regulatory Commission.

"Firm” means a parent company and the consolidated or unconsolidated entities (if any) that it directly or indirectly controls.

“Fluidized bed combustion” means combustion of fuel in connection with a bed of inert material, such as limestone or dolomite, that is held in a fluid-like state by the means of air or other gases being passed through such materials.

“FTC” means the Federal Trade Commission.

80-029 0-81---2

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