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"FUA” means the Powerplant and Industrial Fuel Use Act of 1978, 42 U.S.C. 8301 et seq.

“Fuel Use Act” means "FUA”.

"Fuel use order” means a directive issued by ERA pursuant to $ 501.167 of these regulations.

“Gas turbine” means "combustion turbine".

“General use exemption" means a permanent exemption due to lack of alternate fuel supply, site limitations, environmental requirements, lack of adequate capital, or State or local requirements under section 212 (a) and (b) of FUA.

“High-priority user," for purposes of subsection 312(j) of FUA, means any residential user of natural gas, or any commercial user whose consumption of natural gas on peak day is less than 50 Mcf.

“Installation" means “major fuel burning installation."

"Intermediate load powerplant" means a powerplant (other than a peakload powerplant), the electrical generation of which in kilowatt hours does not exceed for any 12-calendarmonth period, such powerplant's design capacity multiplied by 3,500 hours.

"Internal combustion engine" means a heat engine in which the combustion that generates the heat takes place inside the engine proper.

"Interpretation” means written statement issued by the DOE General Counsel or his delegate, in response to a written request, that applies the regulations, rulings, and other precedents previously issued by the DOE to the particular facts of a prospective or completed act or transaction.

“Limited use exemption" means a permanent exemption due to lack of alternate fuel supply for installations where the use of the unit will not exceed 600 hours per year, fuel mixtures of less than 25% of the total annual Btu heat input of the primary energy source of installations, peakload powerplants, emergency purposes, and scheduled outages of less than 28 days per year, under section 212 of FUA.

“Major fuel burning installation” (1) means a stationary unit consisting of a boiler, gas turbine unit, combined

cycle unit, or internal combustion engine that:

(i) 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

(ii) is in a combination of two or more such 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: (A) To determine if a MFBI is to be aggregated toward the 250 million Btu's per hour threshold for purposes of paragraph (1)(ii) of this definition, see $ 500.5 of this part.

(B) To determine if units, for purposes of paragraph (1)(ii) of this definition, are located at the same site, ERA will consider physical proximity, common ownership, and whether non-contiguous parcels are connected by any easements, pipes, or steam lines under common ownership.

(C) For purposes of paragraph (1)(ii) of this definition, the term "in a combination" means functionally integrated. In determining if such units are functionally integrated, ERA will consider the following factors:

(1) Whether the units are contributing to the same end product, blend stock, or intermediate product;

(2) Whether the units are part of the same plant or facility producing different products;

(3) Whether the units have a physical connection with common energy or power systems, other than provided by a public utility; and

(4) Any other factors which would indicate that the units are functionally integrated.

(iii) ERA will not aggregate toward the 250 million Btu's per hour threshold any rental boiler if it is 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.

(2) Does not include:
(i) Any electric powerplant;

(ii) Any pump or compressor used solely in connection with the production, gathering, transmission, storage, or distribution of gases or liquids, but only upon the filing of a written certification of such use with ERA in accordance with procedures specified in $ $ 501.7 and 501.11 of the regulations.

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"MFBI” means a “major fuel burning installation".

"Mixture,” when used in relation to fuels used in a unit, means a mixture of petroleum or natural gas and an alternate fuel, or a combination of such fuels, used simultaneously or alternately in such unit.

“Natural gas” means any fuel consisting in whole or in part of natural gas, including components of natural gas such

as methane and ethane; liquid petroleum gas; synthetic gas derived from petroleum or natural gas liquids; or any mixture of natural gas and synthetic gas. Natural gas does not include:

(1) Gaseous waste by-products or waste gas specifically designated as an alternate fuel in § 500.2 of these regulations;

(2) Natural gas which is commercially unmarketable by reason of:

(i) Quality, where the cost of producing, upgrading to commercial quality, storing, and distributing the gas would not be covered by reasonably expected revenues from its sale; or

(ii) Quantity, where the quantities of natural gas are so small that the revenues to be reasonably expected from the sale of the gas would not cover the cost of its production, distribution, or storage.

(3) Natural gas produced by the user from a well, the maximum efficient production rate of which is less than 250 million Btu's per day.

For purposes of paragraph (3) of this definition:

(i) “Produced by the user” means:

(A) All gas produced by the well, when such gas is delivered for use in the user's facility through a gas delivery, gathering, or

transportation system which could not deliver such gas to any other user; or

(B) Only that amount which represents the user's net working (mineral) interest in the gas produced from such well, where such gas is delivered for use in the user's facility through a gas delivery, gathering, or transportation system which could deliver such gas to any other user.

(ii) “Maximum efficient production rate" (MEPR) means that rate at which production of natural gas and oil may be sustained without damage to the reservoir or the rate which may be sustained without damage to the ultimate recovery of oil or gas through the well. The MEPR must include the Btu value of any crude oil, gas condensate, and natural gas liquids which may be produced from the well, in addition to that of the natural gas.

(4) Occluded methane in coal seams with the meaning of section 107(c)(3) of the Natural Gas Policy Act of 1978 (NGPA);

(5) The following gas from wells spudded prior to January 1, 1990:

(i) Gas produced from geopressured brine within the meaning of section 107(c)(2) of the NGPA;

(ii) Gas produced from Devonian shale, within the meaning of section 107(c)(4) of the NGPA;

(iii) Gas produced from tight sands, as designated by the FERC in accordance with section 107(c)(5) of the NGPA; and

(iv) Other gases designated by FERC as "high-cost natural gas" in accordance with section 107(c)(5) of the NGPA, except as specifically designated as “natural gas” by ERA.

(6) Synthetic gas derived from coal or other alternate fuel, the heat content of which is less than 600 Btu's per cubic foot at 14.73 pounds per square inch (absolute) and 60 degrees Fahrenheit.

(7) Mixtures of natural gas and synthetic gas derived from alternate fuels for which the person proposing to use the gas certifies to ERA that:

(i) He owns, or is entitled to receive at the point of manufacture, synthetic gas derived from alternate fuels;

(ii) He delivers, or arranges for the delivery of such, synthetic gas to a pipeline which by transport or displacement is capable of delivering such synthetic gas, mixed with natural gas, to facilities owned by the user;

(iii) The total annual Btu content of the synthetic gas delivered to a pipeline is equal to or greater than the total annual Btu content of the natural gas delivered to the facilities owned by the user, plus the approximate total annual Btu content of any natural gas consumed or lost in transportation; and

(iv) All necessary permits, licenses, or approvals from appropriate Federal, State, and local agencies (including Indian tribes) have been obtained for construction and operation of the facilities for the manufacture of the synthetic gas involved, except that for purposes of the prohibition under section 201 (2) of FUA against powerplants being constructed without the capability of using coal or another alternate fuel, only permits, licenses, and approvals for the construction of such synthetic gas facilities shall be required, under this paragraph, to be certified and documented.

(8) A mixture of natural gas and an alternate fuel when such mixture is deliberately created for purposes of (i) complying with a prohibition order issued pursuant to section 301(c) of the Act, or (ii) qualifying for a fuel mixtures exemption under this Act, provided such exemption is granted.

“NEPA” means the National Environmental Policy Act of 1969, amended, 42 U.S.C. 4321 et seq.

“New electric powerplant” means any electric powerplant: (1) That was not classified as existing under Part 515 of this subchapter; (2) that was reconstructed; as described below; or (3) for which construction was begun after November 9, 1978.

NOTE: Reconstruction of an electric powerplant occurs when the capital expenditures for refurbishment or modification of the unit, as defined by FERC, on a cumulative basis for the current calendar year and preceding two (2) calendar years beginning January 1, 1979, are equal to or greater than fifty (50) percent of the capital costs of an equivalent replacement unit of the same capacity, capable of burning the same fuels. Reconstruction shall not include expenditures for: (1) Routine operation and maintenance; (2) expenditures made for pollution control equipment; (3) expenditures made for providing the capability to use an available alternate fuel; and (4) expenses related directly to movement of the unit. In addition, reconstruction will not be deemed to have occurred where refurbishment or modification of the unit does not result in increased remaining useful life, or an increase in total annual fuel consumption, but is undertaken solely for the purpose of increasing fuel burning efficiency of the unit. Costs of reconstruction shall include only expenditures for items capitalized (i.e., not expensed) according to the FERC Uniform System of Accounts.

“New major fuel burning installation" means any MFBI: (1) That was not classified as existing under Part 515 of this subchapter; (2) that was reconstructed, as described below; or (3) for which construction begun after November 9, 1978.

NOTE: Reconstruction of a MFBI occurs when capital expenditures for refurbishment or modification of the unit on a cumulative basis for the current calendar year and preceding two calendar years, beginning January 1, 1979, are equal to or greater than fifty (50) percent of the expenditures for an equivalent replacement unit of the same capacity, capable of burning the same fuels. Reconstruction shall not include expenditures for routine operation and maintenance expenditures made for pollution control equipment, expenditures made for providing the capability to use an alternate fuel, and expenses related directly to movement of the unit. Costs of reconstruction shall include only expenditures for items capitalized (i.e., not expensed) according to Internal Revenue Service standards. In addition, reconstruction will not be deemed to have occurred where refurbishment or modification of the unit does not result in increased remaining useful life, or an increase in total annual fuel consumption, but is undertaken solely for the purpose of increasing fuel burning efficiency of the unit.

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"NGPA” means the Natural Gas Policy Act of 1978, 15 U.S.C. 3301 et seq.

"Non-boiler” means any powerplant or MFBI which is not a boiler and consists of either a combustion turbine unit, combined cycle unit, or, in the case of an MFBI, an internal combustion engine.

“Notice of violation" means a written statement issued to a person by DOE that states one or more alleged violations of the provisions of these regulations, any order issued pursuant thereto, or the Act.

Offset” means “emission offset”.

“Order” means a final disposition, other than the issuance of a rule, issued by DOE pursuant to these regulations or the Act.

"Peakload powerplant” means powerplant the electrical generation of which in kilowatt hours does not exceed for any 12-calendar-month period, such powerplant's design capacity multiplied by 1,500 hours.

“Person" means any:

(1) Individual, corporation, company, partnership, association, firm, institution, society, trust, joint venture, or joint stock company;

(2) Any State;

(3) Any Federal, State, or local agency or instrumentality (including any municipality) thereof; or

(4) A parent and the consolidated and unconsolidated entities (if any) which it directly or indirectly controls.

"Petroleum” means crude oil and products derived from crude oil, other than:

(1) Petroleum products specifically designated as alternate fuels pursuant to these regulations;

(2) Synthetic gas derived from crude oil;

(3) Liquid petroleum gas;

(4) Petroleum coke or waste gases from industrial operations; and

(5) A liquid, solid, or gaseous waste by-product of refinery operations which is commercially unmarketable by reason of:

(i) Quality, where the cost of processing (limited to upgrading the product to commercial quality), storing, and distributing the by-product would not be covered by reasonably expected revenues from its sale; or

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

NOTE: For the purposes of this subparagraph, waste by-products do not include components (such as butane and propane) that can be extracted from the waste by. product by reasonable further processing of the waste by-product at the refinery, nor do they include final products that use the waste by-product as a blend stock at the refinery.

Petition" means a formal request for any action including an exemption submitted to DOE under these regulations.

“Powerplant” means “electric powerplant."

“Product or process requirements” means that product or process for which the use of an alternate fuel is not technically feasible due to the necessity to maintain satisfactory control of product quality and for which the substitution of steam is not technically feasible due to process requirements.

"Primary energy source” means the fuel or fuels used by any existing or new electric powerplant or major fuel burning installation, except:

(1) Minimum amounts of fuel, not to exceed fifteen (15) percent, unless otherwise demonstrated, of the total annual Btu heat input of the unit, required for unit ignition, startup, testing, flame stabilization, and control uses; and

(2) Minimum amounts of fuel required to alleviate or prevent:

(i) Unanticipated equipment outages as defined in $ 501.191 of these regulations; and

(ii) Emergencies directly affecting the public health, safety, or welfare that would result from electric power outages as defined in $ 501.191.

NOTE: For purposes of paragraph (1), no fuel will be excluded from the definition of primary energy source where a mixtures exemption has been granted under Parts 503 or 504 of these regulations. The minimum amount of natural gas or petroleum provided by a mixtures exemption to maintain reliability of operation, consistent with maintaining a reasonable level of fuel efficiency is in lieu of the minimum amount required for unit ignition, start-up, testing, flame stabilization, and control uses.

"Prohibition order" means:

(1) An order issued pursuant to sections 202(b), 301(b) and (c), 302(a) and (b), and 401 of the Act that prohibits a powerplant or major fuel burning installation or a boiler used for space heating purposes from burning natural gas or petroleum as its primary energy source; or

(2) An order issued pursuant to sections 301(c) and 302(b) of the Act that prohibits excessive use of natural gas or petroleum in mixtures burned by a powerplant or major fuel burning installation as its primary energy source.

“Refinery operation,” as the term is used in these regulations, means an operation which separates or converts crude oil as its primary feedstock into unfinished, semi-refined, or refined products. For the purposes of this definition, the term, “crude oil” means a mixture of hydrocarbons, including lease condensate, which exists in a liquid state or as an amorphous solid in underground reservoirs.

“Resource Conservation and Recovery Act of 1976" means the Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901 et seq.

“SIP' means State Implementation Plan pursuant to section 10 of the Clean Air Act.

“Site limitation," when used with respect to any powerplant or installation, means a specific physical limitation associated with a particular site that relates to the use of an alternate fuel as a primary energy source for the powerplant or installation, such

(5) Lack of an adequate and reliable supply of water, including water for use in compliance with applicable environmental requirements.

"Solid Waste Disposal Act” means 42 U.S.C. 6901 et seq., as amended.

"Specified use exemption" means a permanent exemption for cogeneration, fuel mixtures, emergency purposes, reliability of source, peakload powerplants, intermediate load powerplants, product or process requirements, or scheduled equipment outages under section 212 (c) through (j) of FUA.

"State regulatory authority” means any State agency that acts as ratemaking or power supply authority with respect to the sale of electricity by any State regulated electric utility.

“Synthetic fuel" means any fuel derived from an alternate fuel and does not include any fuels derived from petroleum or natural gas.

“Wetlands areas" means, for purposes of section 103(a)(12) of the Act, those geographical areas designated as wetlands areas by State or local envi. ronmental regulatory authorities, or in the absence of any such geographic designation, those areas that are inundated by surface or ground water with frequency sufficient to support, and under normal circumstances does or would support, a prevalence of vegetation or aquatic life that requires saturated, seasonably saturated, or tidally saturated soil conditions for growth or reproduction.

as:

(1) Inaccessibility to alternate fuels;

(2) Lack of transportation facilities for alternate fuels;

(3) Lack of adequate land or facilities for the handling, use, and storage of alternate fuels;

(4) Lack of adequate land or facilities for the control or disposal of wastes from such powerplant or installation, including lack of land for pollution control equipment or devices necessary to assure compliance with applicable environmental requirements; and

8 500.3 Electric regions-electric region

groupings for reliability measurements under the Powerplant and Industrial

Fuel Use Act of 1978. (a) The following is a list of electric regions for use with regard to the Act. The regions are identified by FERC Power Supply Areas (PSA's) as authorized by section 202(a) of the Federal Power Act except where noted. They will be reviewed annually by ERA. Each grouping meets one or more of the following criteria:

(1) Existing centrally dispatched pools and hourly power brokers;

(2) Systems with joint planning and construction agreements;

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