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(ii) The volume of fuel consumed by type for the previous 2 years by the existing powerplants; and

(iii) The reasons for claiming that the existing powerplants would cause or contribute to a pollutant concentration if they used coal as a primary energy source;

(3) An affidavit executed by a duly authorized officer of the electric utility which will operate the proposed powerplant certifying that the powerplant shall be operated at all times in the future only as an intermediate load powerplant. The certification shall set forth the design capacity of the proposed powerplant and the maximum allowable generation of the proposed powerplant in kilowatt hours for its first 12 months of operation as an intermediate load powerplant;

(4) An affidavit executed by a duly authorized officer and a qualified engineer of the utility operating the powerplant which certifies that the powerplant will be maintained (operated) at a net heat input rate of 9,500 Btu's per

kilowatt hour less throughout the useful life of the powerplant;

(5) An affidavit executed by a duly authorized officer and a qualified engineer of the operating utility certifying that the powerplant will meet the synthetic fuels capability requirement described in paragraph (a)(6) of this section, identifying the specific synthetic fuels, and agreeing to cease using petroleum when ERA has found that such synthetic fuels are available;

(6) An analysis of the reasons the petitioner cannot qualify for any general use exemption. This analysis should cover all reasonable alternate fuels at the site of the proposed powerplant or at any other reasonable alternate site. In addition, the petitioner must identify the type of plant it could construct and the alternate fuel it could burn for each site examined.

(7) Identification of the synthetic fuel(s) the proposed plant is designed to use, with appropriate documentation including:

(i) The expected source of synthetic fuel, if known;

(ii) The year when the synthetic fuel is expected to be available in adequate quantity at an acceptable price;

(iii) Estimates of the future prices of the synthetic fuel the proposed plant would be designed to use;

(iv) Federal role, if any, in developing the facilities to produce the synthetic fuel;

(v) The special features of the proposed plant that will enable it to use synthetic fuel(s);

(vi) The petitioner's basis for believing that these fuels can be burned in its proposed plant in conformance with applicable Federal and State environmental standards;

(8) No alternate power supply as required under $ 503.8;

(9) Use of mixtures as required under $ 503.9;

(10) Use of fluidized bed combustion not feasible as required under $ 503.10;

(11) Conservation measures as required under $ 503.13;

(12) Petroleum and natural gas consumption as required under $ 503.14;

(13) Environmental impact analysis as required under $ 503.15; and

(14) Fuels search as required under $ 503.16.

(c) Terms and conditions. ERA, if it grants this exemption, will limit the amount of oil to be used by the proposed powerplant. In general, ERA will require that the granting of this exemption will result in a reduction in oil or natural gas use or a reduction in the rate of increase of oil and natural gas use by the system. The reduction in oil or natural gas use would be achieved by ceasing operation of the applicable existing units and by employing the more efficient proposed unit in their place.

(d) Reporting requirement. If the petition is granted, the petitioner must report to ERA, at the end of each 12month period from the first day of the month following the effective date of the exemption and, if applicable, upon reaching the maximum number of hours of permitted operation within each 12-month period, the number of kilowatt hours of actual operation. The petitioner must also report at the same time the amount of petroleum or natural gas used by the unit and the

80-029 0-81--6

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total amount of petroleum or natural under $ 503.9 is not economically or gas by all units in petitioner's system. technically feasible.

(e) Periodic review. ERA shall, from (5) Conservation measures time to time, review this exemption quired under $ 503.13; and the exemption shall terminate (6) Petroleum and natural gas conwhen ERA finds that there is available sumption as required under $ 503.14; a supply of synthetic fuel suitable for (7) Environmental Impact Analysis use by the exemption powerplant. as required under $ 503.15.

(8) Fuels search as required under 8 503.43 Scheduled equipment outages for $ 503.16. installations.

(c) Certification alternative for use (a) Eligibility. Section 212(j) of the

less than 28 days per year. If use of the Act provides for a permanent exemp

proposed unit is not to exceed an avertion for installations to meet sched

age of 28 days per year over a threeuled equipment outages. To qualify a

year period, the petitioner may, in lieu petitioner must demonstrate that:

of the requirement of paragraph (b) of (1) The petitioner's routine mainte

this section, substitute the following:

(1) A duly executed certification nance schedule does not permit, or

that routine maintenance schedule could not be adjusted to permit, continuing production or other activity

does not permit, or could not be adcarried on at the site unless ERA

justed to permit continuing produc

tion or other activity carried on at a grants this exemption;

site unless ERA grants this exemption; (2) If scheduled outages and, there

(2) That the use of the proposed by, projected use of the proposed unit

unit will not exceed an average of 28 exceeds an average of 28 days per year

days per year over a three-year period; over a three-year period, the petition

and er cannot meet its requirements by

(3) That the unit will be used only burning an alternate fuel; and

during those periods when other units (3) The pertinent unit will be used

are not in operation for reason of only during those periods when other

scheduled outage in accordance with a units are not in operation for reason

schedule of operation submitted simulof scheduled outage.

taneously which contains an estimate (b) Evidence required in support of a

of the annual number of days used petition. To submit an adequate peti- and fuel consumed. tion for review by ERA, a petition

(4) Use of a mixture of petroleum or must include the following informa

natural gas and an alternate fuel is tion in order to make the demonstra

not commercially and technically feation required by this section:

sible; and (1) An explanation of why petition

(5) Certification as required under er's routine maintenance schedule

$ 503.15(b). does not permit, or could not be ad- (d) Terms and conditions. By petijusted to permit, continuing produc- tioning for an exemption under paration or other activity carried on at the

graph (b)(1) of this section, the petisite unless ERA grants this exemption;

tioner agrees, upon grant of the ex(2) A schedule of operation for the emption, to the following terms and pertinent unit estimating the number

conditions: of hours per year used and fuel con- (1) The MFBI will only be operated sumed on an annual basis;

for use necessary to meet scheduled (3) A description of the maintenance equipment outages; schedule for all units located at the fa- (2) Use of the MFBI will not exceed cility specifically identifying those an average of 28 days per year over a units at the facility which will be out three-year period. of service for scheduled maintenance (3) All steam pipes must be insulatat times when the proposed unit is op- ed and all steam traps properly mainerating; and

tained. (4) Demonstration that the use of a (4) The quality of any petroleum to mixture of petroleum or natural gas be burned in the installation as a priand an alternate fuel as required mary energy source will be of the

Sec. 504.16 Use of fluidized bed combustion not

feasible-general requirement for cer

tain permanent exemptions. 504.17 Terms and conditions; compliance

plans. 504.18 Conservation measures. 504.19 Petroleum and natural gas con

sumption. 504.20 Environmental impact analysis. 504.21 Fuels search.

lowest grade available which is technically feasible, and capable of being burned consistent with applicable environmental requirements.

(5) Petitioner must comply with any terms and conditions which may be imposed pursuant to environmental requirements of $ 503.15(b) of these regulations.

(e) Reporting requirement. ERA will rely upon the schedule of operation submitted with the petition as the permanent schedule for exempt use. The petitioner must notify ERA in advance of any changes to this schedule.

(f) Emergency use. A petition for an emergency exemption may be submitted in addition to a petition for a scheduled equipment outage. Eligibility and evidence requirements of each exemption must be satisfied. If granted, separate reporting requirements will be required for each exemption.

Subpart D-Temporary Exemptions for Existing

Facilities

504.30 Purpose and scope. 504.31 Lack of alternate fuel supply. 504.32 Site limitations. 504.33 Inability to comply with applicable

environmental requirements. 504.34 Future use of synthetic fuels. 504.35 Cogeneration. 504.36 Use of innovative technologies. 504.37 Public interest. 504.38 Retirement. 504.39 Temporary exemption for power

plants where necessary to maintain reli

ability of service. 504.40 Temporary peakload powerplants.

8 503.44 Product or process requirements.

[Reserved]

PART 504—EXISTING FACILITIES

Subpart E–Permanent Exemptions for Existing

Facilities

Subpart A-Restrictions on the Increased Use

of Petroleum

Sec. 504.1 Prohibition against the increased use

of petroleum.

Subpart B-Prohibitions and System

Compliance Option

504.2 Purpose and scope. 504.3 Statutory prohibitions (powerplants). 504.4 Electric utility system compliance

option. 504.5 Purpose and scope. 504.6 Prohibitions by order (case-by-case). 504.7 Prohibitions against excessive use of

petroleum or natural gas in mixtures.

504.50 Purpose and scope. 504.51 Lack of alternate fuel supply. 504.52 Site limitations. 504.53 Inability to comply with applicable

environmental requirements. 504.54 State or local requirements. 504.55 Cogeneration. (Reserved) 504.56 Permanent exemption for certain

fuel mixtures containing natural gas or

petroleum. 504.57 Emergency purposes. 504.58 Permanent peakload powerplants. 504.59 Intermediate load powerplants. 504.60 Use of natural gas by powerplant

with capacity of less than 250 million

Btu's per hour. 504.61 Use of liquefied natural gas. 504.62 Scheduled equipment outages. 504.63 Installations served by certain inter

national pipelines. 504.64 Product or process requirements.

[Reserved] APPENDIX I-PROCEDURES FOR THE COMPUTA

TION OF THE REAL COST OF CAPITAL 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 53692, Aug. 12, 1980, unless otherwise noted.

Subpart C-General Requirements for

Exemptions 504.10 Purpose and scope. 504.11 Contents of petition. 504.12 Cost calculations for existing power

plants and installations. 504.13 No alternative power supply-gener

al requirement for certain permanent

exemptions for existing powerplants. 504.14 [Reserved) 504.15 Use of mixtures-general require

ment for certain permanent exemptions.

Subpart A-Restriction on the Increased Use of Petroleum

8 504.1 Prohibition against the increased

use of petroleum. (a) Prohibition. No existing electric powerplant, which during 1977 used an alternate fuel as a primary energy source, may use petroleum as a primary energy source in any calendar year in excess of the "base year amount" unless ERA issues a permit authorizing such increased use. The "base year amount” means the quantities of petroleum used in the powerplant as a primary energy source during calendar year 1977.

(b) Policy note. (1) Section 405 of the Act directs ERA by rule to restrain the use of petroleum by powerplants which burned an alternate fuel in 1977. Section 405 also directs ERA to establish, by rule, a procedure whereby powerplants may be permitted increased use of petroleum. Such permit shall be issued where the powerplant cannot comply with the requirements of the Clean Air Act without the permit and the increased use of petroleum is necessary to prevent an impairment of reliability of service. For example, where an electric powerplant requires a reasonably predictable time period to install pollution control equipment before returning to the use of an alternate fuel, ERA may issue a limited duration permit to use more petroleum as necessary to prevent impairment of reliability. In some cases, however, an electric powerplant may be unable to return to the use of an alternate fuel for indeterminate period of time, or even permanently. Therefore, ERA, in implementing section 405 of the Act, has designed two alternate procedures. Under either procedure the applicant should provide the information necessary to enable EPA, the appropriate State regulatory agency, and ERA to make their decisions.

(2) The Act directs ERA to limit the duration of the permit allowing increased oil consumption above the base year amount to the period it determines is necessary to carry out the statutory mandate. In order to make this determination as to duration,

ERA needs to know when an existing powerplant either will be able to resume the use of an alternate fuel, or will no longer need to use petroleum to avoid impairment of reliability of electric service notwithstanding that it cannot burn an alternate fuel.

(3) ERA encourages applicants to plan for any interruption of alternate fuel use on a schedule that minimizes the need to burn increased amounts of petroleum and invites informal discussion prior to applying for a permit as to the duration of such increased use.

(c) Temporary interruptions necessary to comply with the Clean Air Act and prevent impairment of reliability of service.

NOTE: Examples contemplated under this subsection would include those cases where it is necessary to install pollution control equipment, arrange for the delivery of suitable fuel, or bring other units in the applicant's system on line.

(1) Eligibility. Existing electric powerplants which are subject to the prohibition imposed by this rule, but which will be able to comply after a temporary interruption are eligible for a permit if:

(i) The powerplant used an alternate fuel as a primary energy source during 1977;

(ii) The applicant has applied for a variance or other waiver from EPA or the State air pollution control agency to continue the use of an alternate fuel, and a decision with regard to that application has been rendered;

(iii) EPA or the appropriate State air pollution control agency has certified that: (A) The powerplant cannot comply with the requirements of the Clean Air Act, including any applicable implementation plan as defined in section 110(d) of the Clean Air Act, without issuance of a permit to use petroleum above the base year amount, and (B) the applicant has established the duration of the need for increased petroleum in order to comply;

(iv) The appropriate State regulatory authority has certified that the increased use of petroleum is necessary to prevent impairment of reliability of electric service in that State; and

an

of

(v) The powerplant's operation will be in compliance with the prohibition imposed by this rule by the expiration of the permit.

(2) Evidence of certification. The application for a permit must include the following in order to make the demonstration required by this section:

(i) A certification from EPA or the appropriate State air pollution control agency stating that the powerplant cannot comply with the requirements of the Clean Air Act, including any applicable implementation plan as defined in section 110(d) of the Clean Air Act, without the issuance of such a permit to use petroleum above the base year amount, and that the applicant has established the duration of need for increased petroleum in order to comply; and

(ii) A certification from the appropriate State regulatory authority stating that the increased use of petroleum by the powerplant is necessary to prevent impairment of reliability of service.

(3) Evidence of duration. The duration of any permit to increase the use of petroleum granted under this subsection shall be the minimum reasonable length of time necessary to comply with the requirements of the Clean Air Act without impairment of reliability of electric service. To assist ERA in determining this period of time, the applicant must submit to ERA along with the application the following statements:

(i) A compliance plan indicating how and in what time period the applicant plans to comply. The compliance plan must include the following:

(A) A specific schedule of milestones for bringing the powerplant back into compliance with the applicable environmental requirements;

(B) What steps will be taken to minimize use of petroleum and duration of such use; and

(C) The quantity of petroleum the applicant estimates is required and an estimate of the rate of use by month.

(ii) A statement of why the powerplant is unable to burn an alternate fuel in compliance with the Clean Air Act;

(iii) A statement showing whether the applicant attempted to get a vari

ance or other waiver from EPA or the State agency from applicable environmental requirements and if that waiver was denied; and

(iv) The basis, to the extent known to the applicant, for the State agency's reliability certification, including the data and analysis considered, the extent to which the State authority considered reliability in the applicant's electric region, and any other factors bearing on reliability which were considered.

(4) Limitation on duration permit. ERA shall issue the permit for the increased use of petroleum only for the quantity and duration it determines is necessary after review and evaluation of the information set out above. ERA reserves the right to re. quire whatever additional information may be necessary to enable it to make a determination as to duration.

(d) Indeterminate cessations due to inability to comply with environmental requirements and prevent impairment of reliability of electric service.

NOTE: Examples contemplated under this section would include those cases where a tinancial or physical limitation would preclude a powerplant from coming into compliance for an indeterminate period of time.

(1) Eligibility. In addition to the criteria enumerated

paragraphs (c)(1)(i), (ii), (iii), and (iv) above, existing electric powerplants which subject to the prohibition imposed by this rule, but which are unable to comply with the Clean Air Act requirements after a temporary interruption, are eligible for a permit if they will be unable for specified reasons set out in paragraph (d)(2)(ii) to comply with the prohibition imposed by this rule for an indeterminate period of time.

(2) Evidence of certification. In addition to the evidence enumerated in paragraphs (c)(2) (i) and (ii) above, an application for a permit must include the following:

(i) A statement to the extent such information is available to the applicant, of the basis for the State agency's certification, including the data and analysis considered and the extent to which it considered the reliability of the applicant's electric region; and

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