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Parts 222, 200 and Subpart 227-2 Revised Express Terms Summary

The Department of Environmental Conservation (Department) proposes to adopt 6 NYCRR Part 222, 'Distributed Generation Sources' and revise Part 200, 'General Provisions' and Subpart 227-2, 'Reasonably Available Control Technology (RACT) for Oxides of Nitrogen (NOx)' to conform to new Part 222. A distributed generation (DG) source is defined in Section 222.2(b)(2) as a stationary reciprocating or rotary internal combustion engine that feeds into the distribution grid or produces electricity for use at the host facility or both.

Applicability

Part 222 will apply to owners and operators of distributed generation (DG) sources where the potential NOx emissions are below the major source threshold set forth in paragraph 201-2.1(b)(21) of Part 201 and that have maximum mechanical output ratings of 200 horsepower (hp) or greater in the New York City metropolitan area or 400 hp or greater elsewhere in the state.

Emergency generators owned and operated by municipalities or municipal agencies may be used when the usual supply of power is available if doing so would prevent a violation of the Clean Water Act or Article 17 of the New York State Environmental Conservation Law through April 30, 2021. Thereafter, such sources will be subject to the emission standards set forth in Section 222.4 of Part 222.

Definitions and General Provisions

Definitions specific to Part 222 are presented in Part 222. Besides the definition of DG sources presented above, the other key term defined in Section 222.2 is 'economic dispatch source': "(a) distributed generation source used to reduce energy costs or ensure a reliable electricity supply for a facility. A distributed generation source that is not an emergency power generating stationary internal combustion engine as defined in section 200.1 is considered to be an economic dispatch source" (see paragraph 222.2(b)(3)).

A requirement that owners or operators of economic sources subject to Part 222 notify the Department in writing no later than January 2, 2017 regarding whether the sources will continue to be operated as economic dispatch sources or operated as emergency generators is incorporated into Section 222.3. If a source owner or operator fails to notify the Department as required in paragraph 222.3(a)(1), the Department will assume that such sources remain classified as economic dispatch sources.

Control Requirements (Section 222.4)

Economic dispatch sources must meet the following NOx standards effective on May 1, 2017:

  1. combined cycle combustion turbines firing natural gas: 25 parts per million on a dry volume basis corrected to 15 percent oxygen;
  2. combined cycle combustion turbines firing oil: 42 parts per million on a dry volume basis corrected to 15 percent oxygen;
  3. simple cycle combustion turbines firing natural gas: 50 parts per million on a dry volume basis corrected to 15 percent oxygen;
  4. simple cycle combustion turbines firing oil: 100 parts per million on a dry volume basis corrected to 15 percent oxygen;
  5. reciprocating engines firing natural gas: 1.5 grams per brake horsepower-hour.
  6. reciprocating engines firing distillate oil (solely or in combination with other fuels): 2.3 grams per brake horsepower-hour.

Diesel-fired economic dispatch sources will be subject to a particulate matter limit of 0.30 grams per brake horsepower-hour effective May 1, 2017. An alternative compliance option is to equip affected sources with pollution control devices designed to remove 85 percent or more of the particulate matter from the exhaust stream.

Alternative Compliance Options

There are five alternative compliance options for owners or operators of economic dispatch sources which cannot meet the proposed NOx emission limits set forth in Part 222. First, an owner or operator could apply for a variance for a source-specific NOx limit. The owner or operator must provide sufficient documentation or other proof to convince the Department that it is economically or technically infeasible for the source to comply with the appropriate NOx limit.

Second, an owner or operator may permanently shut down a DG source by May 1, 2018. The intent to shut down a source must be recorded as part of an enforceable permit modification prior to May 1, 2017.

Third, an owner or operator of a diesel-fired economic dispatch source may convert the source to fire natural gas by May 1, 2018. The intent to shut down a source must be recorded as part of an enforceable permit modification prior to May 1, 2017.

The fourth option is available to facilities with renewable generation systems (RGS).1 An effective emission rate, calculated using Equation 1 (below), may be compared to the applicable NOx emission limit to demonstrate compliance with the emission limit. This option may only be used in cases where the NOx standard is in units of grams per brake horsepower-hour. This approach allows a facility to take credit for electricity generated by the RGS.

Equation 1. E = 0.338*N/(D+R)
where:
E = effective emission rate (grams per brake horsepower-hour);
N = NOx emissions (pounds);
D = electricity generated by the DG source (megawatt-hours); and
R = electricity generated by the RGS (megawatt-hours).

The fifth option (subdivision 222.5(b)) is available only to DG sources enrolled during calendar years 2014 or 2015 in demand response programs established to maintain the reliability of the electric grid. Eligible sources would be granted an extra year (until May 1, 2018) to comply with the emission standards set forth in Section 222.4 provided:

  • the source owner or operator complies with the notification requirement of subdivision 222.3(a) of Part 222;
  • the source owner or operator provides evidence that the source was enrolled during calendar year 2014 or 2015 in a demand response program established to maintain the reliability of the electric grid; and
  • the source owner or operator does not pledge an amount of generation during calendar year 2017 greater than that pledged during 2014 or 2015.

The Department may extend the compliance date for sources subject to subdivision 222.5(b) of Part 222 until May 1, 2019 based, at least in part, on a determination by the New York State Department of Public Service that an extension is needed to preserve reliability of the electric grid in the particular zone or subzone in which an affected source is located.

Emissions Testing

Sources subject to emission limits must be tested by April 30, 2017 and must undergo additional emissions testing once every 10 years. Emergency generators are exempt from this provision since this class of sources will not be subject to any emission limits.

Changes to Part 200 and Subpart 227-2

The definition of a 'stationary internal combustion engine' under current 6 NYCRR Subpart 227-2.2(b)(11) will be removed and added to Section 200.1 since the term will now be applicable to multiple regulations.

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1 A renewable generation system is defined in Section 222.2 as a photovoltaic or wind power electricity generating system.


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