Transcript PROMISED EPA RULE RELAXES - Aee

REGULATION OF
EMERGENCY ENGINES
DEMAND RESPONSE
PEAK SHAVING
Presented by Richard H. Friedman
© 2013 McNees Wallace & Nurick LLC

"RICE" NESHAP RULE (CAA §112): FINAL REVISIONS
TO NATIONAL EMISSION STANDARDS FOR
HAZARDOUS AIR POLLUTANTS ("NESHAP") FOR
RECIPROCATING INTERNAL COMBUSTION
ENGINES; 78 FR 6674 (1/30/13), 40 CFR part 63,
subpart ZZZZ

STATIONARY ENGINE NSPS RULE (CAA §111):
REVISIONS TO NEW SOURCE PERFORMANCE
STANDARDS ("NSPS") FOR STATIONARY INTERNAL
COMBUSTION ENGINES USED FOR DEMAND
RESPONSE (For Rule Consistency); 78 FR 6674
(1/30/13), 40 CFR part 60, subparts IIII and JJJJ

Notice of Reconsideration, 78 FR 54606 (9/5/13)
© 2013 McNees Wallace & Nurick LLC

The RULES apply to all stationary spark
ignition ("SI") and compression ignition ("CI")
engines.

Nonroad (portable or transportable) engines
are not subject to the RULES.

RULES allow for expanded use of emergency
engines in non-emergency situations.

Ban peak shaving by emergency engines
after May 3, 2014 (limited now).
© 2013 McNees Wallace & Nurick LLC
AREA SOURCE EMERGENCY
ENGINES

Emergency stationary engines at area sources of
hazardous air pollutants ("HAP") that are residential,
commercial, institutional, or industrial facilities are covered
by the rule if the engines operate or are contractually
obligated to be available to operate for more than 15 hours
per year for emergency demand response, or if they
operate to mitigate local transmission and/or distribution
limitations.

The rule became effective for existing compression ignition
stationary engines at area sources of HAPs on May 3, 2013
and becomes effective for existing spark ignition stationary
engines at area sources of HAPs on October 19, 2013.
© 2013 McNees Wallace & Nurick LLC

Rule, applicable to all emergency engines:
•
•
Allows unlimited emergency use;
Allows up to 100 hours per year combined use, for:

Maintenance and readiness checks (as
recommended or required, or otherwise specifically
approved by EPA), and

Preventing electrical outages via demand response,
specifically,
o
o
Energy Emergency Alert Level 2 conditions
Frequency or voltage deviations of 5% or greater
(power quality)
© 2013 McNees Wallace & Nurick LLC

At major sources of HAPs, up to 50 hours
of the 100-hour maximum may be used for
non-emergency situations, but not for peak
shaving or non-emergency demand
response, or to generate income for a
facility to supply power to an electric grid
or otherwise supply power as part of a
financial arrangement with another entity.
© 2013 McNees Wallace & Nurick LLC

For area sources of HAPs only, up to 50 hours of the
100-hour maximum may be used to supply power to
another entity under a financial arrangement, when,

The engine is dispatched by the ISO

The dispatch is for system reliability (voltage collapse or
line overloads)

The dispatch follows reliability protocols and is under a
pre-existing plan

Power is provided only for the facility itself or for the local
transmission and distribution system, and

The dispatch information is recorded by the owner (or
local authority/system operator).
© 2013 McNees Wallace & Nurick LLC

Also, until March 3, 2014, for existing stationary
emergency engines at area sources, up to 50
hours is allowed (counting toward the 100 hour per
year total)
•
If the engines are operated as part of a peak shaving
(load management) program with the local distribution
system operator and the power is provided only to the
facility itself or to support the local distribution system,
of:



Peak shaving
Non-emergency demand response to generate income for
a facility, or
To otherwise supply power as part of a financial
arrangement with another entity.
© 2013 McNees Wallace & Nurick LLC

If an emergency engine exceeds any of
these limits, it is forever excluded from
qualification as an emergency engine and
will need to meet the applicable nonemergency RICE NESHAP or be replaced
with a new, low-emissions engine. Older
engines losing their emergency status
would require major controls to meet the
emission limits of a non-emergency engine.
© 2013 McNees Wallace & Nurick LLC
ADDITIONAL TECHNICAL
REQUIREMENTS FOR EMERGENCY
ENGINES:

Operate and maintain the stationary RICE
according to the manufacturer’s emissionrelated operation and maintenance
instructions or approved custom plan

Must have non-resettable hour meter

Minimize idle time and <30 minutes

General duty to minimize emissions
© 2013 McNees Wallace & Nurick LLC
ADDITIONAL TECHNICAL
REQUIREMENTS FOR EMERGENCY CI
RICE ENGINES OVER 100 HP:
•
Beginning in 2015, emergency CI RICE engines over 100
horsepower ("HP") operated or committed for more than 15 hours
under these demand response programs will be required to –

Use ultra low sulfur diesel (ULSD) fuel (existing fuel may be depleted)

Perform, record and maintain records of periodic maintenance activity,
including
o
Change oil and filter every 500 hours of operation or
annually, whichever comes first
o
Inspect air cleaner every 1,000 hours of operation or
annually, whichever comes first, and replace as necessary,
and
o
Inspect all hoses and belts every 500 hours of operation or
annually, whichever comes first, and replace as necessary.
© 2013 McNees Wallace & Nurick LLC
ADDITIONAL TECHNICAL
REQUIREMENTS FOR EMERGENCY
STATIONARY SI RICE ENGINES:

Beginning in 2015:
•
Change oil and filter every 500 hours of operation or
annually, whichever comes first
•
Inspect spark plugs every 1,000 hours of operation or
annually, whichever comes first, and replace as necessary,
and
•
Inspect all hoses and belts every 500 hours of operation or
annually, whichever comes first, and replace as necessary.
© 2013 McNees Wallace & Nurick LLC
FOR ALL EMERGENCY ENGINES
OVER 100 HP:

Operating or contractually obligated to be
available for more than 15 hours per year,
•

file electronic annual reports, starting in 2016 for
calendar year 2015, documenting all non-emergency
operation.
EPA anticipates that the dispatching entity
will file these reports on behalf of the facility
that owns the engines.
© 2013 McNees Wallace & Nurick LLC
RULES SUBJECT TO COURT
CHALLENGE

Four Petitions for Review were filed April 1, 2013 in
the U.S. Court of Appeals for the District of Columbia
Circuit

Filed by:

•
Delaware Dept. of Natural Resources & Environmental Control
•
National Rural Electric Cooperative Association
•
First Energy Solutions Corp.
•
Conservation Law Foundation
The rule remains in effect during the lawsuits'
consideration
© 2013 McNees Wallace & Nurick LLC
COMPLIANCE DATE EXTENSIONS

Timing of January 30th Rules and May 3,
2013 compliance date did not allow 120
days

Some intend to use emergency engines
for operation >50 hours, but must install
controls to do so

EPA will consider granting up to 1 year (40
CFR 63.6)(i)(4)(i)) extension upon request
© 2013 McNees Wallace & Nurick LLC
NOTICE OF RULES
RECONSIDERATION

Public comment by 11/4/13 on 3 issues:
•
For CI emergency engines that operate for
emergency demand response, voltage/frequency
deviations, or local reliability:

Initial compliance date for use of ultra low
sulfur diesel fuel

Initial compliance date and content for
information reporting
•
Conditions allowing up to 50 hour non-emergency
operations with financial arrangement with another
entity
© 2013 McNees Wallace & Nurick LLC
ULSD

Rule requires use after 1/1/15

Allows fuel purchased before to be
used up

EPA accepting comments on
immediate implementation
© 2013 McNees Wallace & Nurick LLC
REPORTING

Beginning for 2015 calendar year
March 31, 2016

Location, date, times of operation

Petitioners concerned about timing
and content

EPA accepting comments on timing
and content
© 2013 McNees Wallace & Nurick LLC
REPORTING REQUIRED

Company name and address where engine is located

Date of report; beginning & ending dates of the
reporting period

Engine site rating and model year

Latitude and longitude of the engine (in degrees
reported to the fifth decimal place)

Hours operated for
•
emergency demand response
•
deviations of voltage or frequency of 5 percent or greater
below standard
including: date, start time, and end time
© 2013 McNees Wallace & Nurick LLC
REPORTING REQUIRED (CON'T)

Number of hours the engine is contractually
obligated to be available for
•
•
emergency demand response
deviations of voltage or frequency of 5 percent or greater
below standard

Hours spent for operation for local system
reliability, including
•
date, start time and end time
•
entity that dispatched the engine
•
situation that necessitated the dispatch of the engine
© 2013 McNees Wallace & Nurick LLC
REPORTING REQUIRED (CON'T)

If so, statement that there were no deviations
from the fuel requirements during the
reporting period.

If there were deviations from the fuel
requirements that apply, information on
•
number, duration, and cause of deviations
•
corrective action taken.
© 2013 McNees Wallace & Nurick LLC
PETITIONERS

Want to add type, amount and sulfur
content of diesel fuel used
© 2013 McNees Wallace & Nurick LLC
LOCAL SYSTEM RELIABILITY

Specified non-emergency 50 hour
allowed use as part of financial
arrangement with another entity

Petitioners concerned that
conditions not clearly defined

EPA accepting comments on
conditions to operate for local
system reliability
© 2013 McNees Wallace & Nurick LLC
CONDITIONS FOR LOCAL SYSTEM
RELIABILITY

Engine is located at an area source

Dispatched by the local balancing
authority or local transmission and
distribution system operator

Dispatch to mitigate local transmission
/distribution limitations
•
to avert potential voltage collapse or line
overloads that could lead to the interruption of
power supply in a local area or region
© 2013 McNees Wallace & Nurick LLC
CONDITIONS FOR LOCAL SYSTEM
RELIABILITY (CON'T)

Dispatch follows reliability, emergency
operation or similar protocols that follow
specific NERC, regional, state, public
utility commission or local standards or
guidelines

Power is provided only to the facility itself
or to support the local transmission and
distribution system
© 2013 McNees Wallace & Nurick LLC
CONDITIONS FOR LOCAL SYSTEM
RELIABILITY (CON'T)

the owner/operator identifies and records
the entity that dispatches the engine and
the specific NERC, regional, state, public
utility commission or local standards or
guidelines that are being followed for
dispatching the engine
© 2013 McNees Wallace & Nurick LLC
PETITIONERS

Concerned that conditions are
•
too indistinct and expansive
•
difficult to enforce
could lead to engines operating
when there is no discernible threat to
the grid
© 2013 McNees Wallace & Nurick LLC
CONTACT INFORMATION

Rick Friedman
•
Tele: 717.237. 5469,
•
Email: [email protected]

Fred Osman,
•
Tele: 717.234.3610
•
Email: [email protected]

Bob Weishaar
•
202.898.5700
•
Email: [email protected]
© 2013 McNees Wallace & Nurick LLC