(a) General. (1) A violation of any provision of the regulations issued under the authority of the Act (other than section 402 of the FUA), or any order, rule, exemption, or permit issued pursuant thereto will be subject to the penalties and sanctions as provided in Subtitle C of Title VII of FUA.

(2) Each day, that any provision of the regulations issued under the authority of the Act or any order, rule, exemption, or permit issued pursuant thereto is violated, constitutes a separate violation within the meaning of the provisions of this section relating to civil penalties.

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(b) Criminal fines. Any person who willfully violates any provision these regulations will be subject to a fine of not more than $50,000 or imprisonment of not more than 1 year, or both, for each violation.

(c) Civil penalties. (1) Any person who willfully violates any provision will be subject to the following civil penalty which may be up to $25,000 for each violation: Any person who operates a powerplant or major fuel burning installation which exceeds the use of natural gas or petroleum allowed by an exemption granted by ERA, will be assessed a civil penalty of up to $3 per MCF of natural gas or $10 per barrel of oil that is used in excess of that allowed by the exemption.

(2) ERA may compromise and settle, and collect civil penalties whenever it considers it to be appropriate or advisable.

(d) Corporate personnel. (1) If a director, officer, or agent of a corporation willfully authorizes, orders, or performs any act or practice constituting a violation of any provision of the regulations issued under authority of the Act, or any order, rule, or exemption, or permit issued pursuant thereto, he will be subject to the penalties specified in paragraphs (b) and (c) of this section without regard to any penalties to which the corporation may be subject. He will not, however, be subject to imprisonment under paragraph (b) of this section unless he knew of noncompliance by the corporation, or had received from ERA notice of noncompliance by the corporation.

(2) For purposes of this paragraph: (i) "Agent" includes any employee or other person acting on behalf of the corporation on either a temporary or permanent basis; and

(ii) "Notice of noncompliance" is a final Fuel Use Order issued under § 501.167 of this part.

§ 501.182 Injunctions.

Whenever it appears to ERA that any person has committed, is committing, or is about to commit a violation of any regulation, order, rule, or exemption issued under the Act, ERA may in accordance with section 724 of the FUA bring a civil action in the appropriate district court of the United States to enjoin such acts or practices. The relief sought may include a mandatory injunction commanding any person to comply with any provision of such order, regulation, rule, exemption, or permit the violation of which is prohibited by section 724 of the FUA and may also include interim equitable relief.

§ 501.183 Citizen suits.

(a) General. A person who believes he is aggrieved by the failure of ERA to perform any nondiscretionary act or duty under the Act may file a "Petition for Action" for ERA to take such action as he may feel to be proper. This petition must be filed at the address provided in § 501.11. The petition must specify the action requested and set forth the facts and legal arguments that constitute the basis for the request and will serve as notice to ERA pursuant to section 725 of FUA for purposes of any citizens suit that may be subsequently filed.

(b) ERA decision. Within sixty (60) days of receiving the Petition for Action, ERA will notify the person giving notice under this section that it has instituted the action requested or that other described action is being taken, or that no action is being taken and state the reasons therefor.

Subpart M-Use of Natural Gas or Petroleum for Emergency and Unanticipated Equipment Outage Purposes

§ 501.190 Purpose and scope.

(a) If a person operates a: (1) Powerplant or installation covered by any of the prohibitions of Titles II, III, or IV, with the exception of Title IV, section 402, or the requirements of Title V of FUA, § 501.191 of this subpart establishes procedures he must follow for the use of minimum amounts of natural gas or petroleum in order to alleviate or prevent unanticipated equipment outages and emergencies directly affecting the public health, safety, or welfare that would result from electric power outages under section 103(a)(15)(B) of FUA; or

(2) Peakload powerplant or an installation covered by any of the prohibitions of Titles II, III, or IV, with the exception of Title, IV, section 402, or the requirements of Title V of FUA, § 501.192 of this subpart establishes procedures he must follow for the emergency use of natural gas or petroleum as a primary energy during a temporary emergency condition under section 404(g) of FUA.

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(b) Explanatory note. If a person operates a rental boiler as a powerplant or installation covered by any of the prohibitions of Titles II, III, or IV except Title IV, section 402, or the requirements of Title V of FUA, he may be able to use the provisions of this subpart for the emergency use of natural gas or petroleum.

§ 501.191 Use of natural gas or petroleum for certain unanticipated equipment outages and emergencies defined in section 103(a)(15)(B) of the Act.

(a) In the event of the occurrence or imminent occurrence of an emergency, or of the occurrence or imminent occurrence of an unanticipated equipment outage in the unit, an owner or operator of a powerplant or installation is automatically permitted to use minimum amounts of natural gas or petroleum in the unit or in a substitute unit to prevent or alleviate the

outage or to prevent or alleviate the emergency if he complies with procedures contained in paragraph (b) of this section.

(b) If the owner or operator uses minimum amounts of natural gas or petroleum for purposes specified in this section, he must:

(1) Notify ERA of such use by telegram or telephone within 24 hours after the commencement of such use;

(2) Immediately thereafter confirm such use and describe such purposes in writing, signed by a responsible official of the company; and

(3) File with ERA every thirty (30) days after notification to ERA as provided in paragraph (c)(1) of this section, a progress report describing the status of the emergency or outage condition and the continuing efforts to abate such condition. In appropriate cases, ERA may determine that such a filing is unnecessary.

(c) For purposes of this section only: (1) An "emergency" is an unanticipated occurrence or threat of imminent Occurrence of an emergency which exists only when there is a direct effect on the public health, safety, or welfare which results or would result from an electric power outage;

equipment

(2) "Unanticipated outage" shall mean an unexpected outage due to equipment failure.

(3) "Minimum amounts required to alleviate or prevent” shall mean:

(i) For powerplants, the amounts of natural gas or petroleum required to prevent curtailment by the operating utility of noninterruptible electric supply to industrial customers where such utility has, to the maximum extent possible, utilized alternate fuelfired capacity to prevent such curtailment; and

(ii) For installations, the amounts of natural gas or petroleum required to meet plant protection or human health and safety needs, including services to hospitals, public transportation facilities, sanitation, or water supply and pumping.

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§ 501.192 Use of natural gas or petroleum during a temporary emergency condition pursuant to section 404(g) of the Act.

(a) For purpose of this section only, a "temporary emergency condition" ("emergency") is an unanticipated occurrence which exists when:

(1) For installations, the use of natural gas or petroleum is necessary for purposes of:

(i) Plant protection;

(ii) Preservation of human health; or (iii) Continued production that would otherwise be reduced as a result of an interruption of alternate fuel supplies, equipment failures, imminent equipment failures or temporary environmental restrictions; and

(2) For peakload powerplants, the operating utility would be required to curtail noninterruptable electric

supply to its industrial customers.

(b) Where the owner or operator is eligible to use natural gas or petroleum for emergency purposes, in the alternative, under this section under § 501.191 of this subpart, he may use the procedures provided in § 501.191.

or

(c) In the event of occurrence of a temporary emergency condition, the owner or operator is automatically permitted to use natural gas or petroleum in his peakload powerplant or installation or in a substitute unit until the termination of the emergency condition, a period not to exceed twentyfour (24) months, if he:

(1) Notifies ERA by telegram or telephone within twenty-four (24) hours after the commencement of the emergency condition that he requires such emergency use of natural gas or petroleum;

(2) Immediately thereafter confirms such use in writing, signed by the responsible officer of the company; and (3) Is not notified in writing by ERA during such period that the emergency condition:

(i) Has terminated; or

(ii) Does not otherwise warrant the use of natural gas or petroleum involved.

(d) Every thirty (30) days after notification, as provided in paragraph (c)(1), the owner or operator must file with ERA a written statement certi

fied by the responsible officer of his company detailing the circumstances of the continuing emergency condition including, a description of the units in which he is using natural gas or petroleum for such condition, and the extent of such use. In appropriate cases, ERA may determine such a filing is unnecessary.

(e) At the end of the first month of the emergency condition the owner or operator must file with ERA a written statement certified by the responsible officer of his company, detailing the plans to end the emergency condition, including an estimate of the time period for which he will be required to operate the facility using natural gas or petroleum as a primary energy source, and the projected extent of such use.

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(f) If the emergency condition has terminated, the or operator must file with ERA a written statement, certified by the responsible office of his company indicating the day on which the facility returned to normal operation.

(g) The administrative provisions of section 701 of FUA do not apply to this section.

(h) Any hours of emergency operation allowed under this section shall not be included in a peakload powerplant's operating hours for purposes of penalties set forth in section 723(b) of FUA, and any reporting requirements or conditions imposed under any peakload or emergency exemption under FUA are independent of any requirements imposed under this section. Additionally, any consumption of petroleum or natural gas, during any periods of emergency operation allowed under this section, are independent of any reporting requirements or conditions of use imposed by any exemption granted under FUA.

503.30 Purpose and scope. 503.31 Lack of alternate fuel supply for the

first 10 years of useful life.

503.32 Lack of alternate fuel supply at a cost which does not substantially exceed the cost of using imported petroleum. 503.33 Site limitations. 503.34 Inability to comply with applicable environmental requirements.

503.35 Inability to obtain adequate capital. 503.36 State or local requirements. 503.37 Cogeneration.

503.38 Permanent exemption for certain fuel mixtures containing natural gas or petroleum.

503.39 Emergency purposes.

503.40 Permanent exemption for powerplants necessary to maintain reliability of service.

Sec.

503.44 Product or process requirements. [Reserved]

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, Sept. 15, 1977.

SOURCE: 45 FR 38308, June 6, 1980, unless otherwise noted.

Subpart A-Prohibitions

§ 503.1 Purpose and scope.

This subpart sets forth the statutory prohibitions imposed by the Act upon new powerplants and major fuel burning installations (MFBI's). The prohibitions in this subpart apply to all new electric powerplants and MFBI'S unless an exemption has been granted by ERA under Subparts C and D of this part. Any person who owns, controls, rents, leases or operates a new powerplant or MFBI which is subject to the prohibitions may be subject to sanctions provided by the Act of these regulations.

§ 503.2 Prohibitions (powerplants).

(a) Section 201 of the Act prohibits, unless an exemption has been granted under Subparts C or D of this part, the following:

(1) The use of petroleum or natural gas as a primary energy source in any new electric powerplant; and

(2) The construction of any new powerplant without the capability to use an alternate fuel as a primary energy source.

(b) For purposes of the prohibition set forth in paragraph (a)(2) of this section a powerplant will be considered to be constructed with the capability to use an alternate fuel if it is able to use, in compliance with applicable environmental requirements, an alternate fuel as a primary energy source at the time it becomes operational or at the expiration of a temporary exemption.

Act prohibits, unless an exemption has been granted under Subpart C or D of this part, the use of petroleum or natural gas as a primary energy source in any new MFBI which consists of a boiler.

(b) Prohibition on the use of natural gas or petroleum as a primary energy source in nonboilers-(1) Prohibition by rule. (i) ERA may prohibit, by issuance of a rule, the use of petroleum or natural gas as a primary energy source by certain prescribed categories of new MFBI's which consist of a combustion turbine unit, combined cycle unit or internal combustion engine.

(ii) In any such rulemaking proceeding, ERA will consider any special circumstances or characteristics of the category of such MFBI's that would be prohibited from using natural gas or petroleum as a primary energy source. Factors to be considered include the overall technical capability of units within the category to burn an alternate fuel, as well as the size and geographic location of such units. ERA will consider all other circumstances, characteristics, and factors it deems relevant and appropriate that are brought to its attention.

(iii) Application of a final rule promulgated under this subsection shall be stayed with respect to an installation subject to such rule while ERA is considering a petition for an exemption which is filed in accordance with Subpart F of Part 501 within 60 days after publication of the final rule in the FEDERAL REGISTER. The stay will remain in effect pending judicial review of ERA's action upon such exemption petition.

(iv) No final rule will apply to an installation that:

(A) Has received any final order containing a comparable prohibition;

(B) Has received a proposed order but did not receive a final order because of a demonstration that the installation qualified or would have qualified for an exemption under the Act; or

(C) Has been granted an exemption in accordance with Subparts C and D; (2) Prohibition by order. (i) ERA may prohibit, by order, the use of natural gas or petroleum as a primary energy source in an installation which

consists of a combustion turbine unit, combined cycle unit or internal combustion engine, if that installation has not been identified as a member of a category subject to a final rule in accordance with § 503.3(b)(1)(i) at the time of the issuance of the proposed order.

(ii) ERA shall not issue a final order to an installation covered by this subsection if it can be demonstrated that the installation is eligible for an exemption. However, if the installation is eligible only for a temporary exemption, ERA may issue a final order that will take effect at the expiration of the temporary exemption.

(iii) If ERA does not issue a final prohibition order because a facility qualifies for a permanent exemption, or, if the effective date of the order is delayed during the period that a temporary exemption is effective, ERA shall take appropriate action to assure compliance with the same requirements including terms and conditions, if any, or would have been contained in an order if an exemption would have been granted.

(3) Limitation. ERA may not prohibit the use of petroleum or natural gas in an installation covered by this subsection if acquisition or construction of such installation was begun before the date the proposed rule or proposed order containing the prohibition was published. Under such circumstances, ERA will consider the installation to be an "existing" installation for purposes of Title III of the Act.

Subpart B-General Requirements for Exemptions

§ 503.4 Purpose and scope.

This subpart establishes the general requirements necessary to qualify for either a temporary or permanent exemption under this part and sets out the methodology for calculating the cost of using an alternate fuel and the cost of using imported petroleum.

§ 503.5 Contents of petition.

Before ERA will accept a petition for either a temporary or permanent exemption under this part, the peti