[Code of Federal Regulations]
[Title 40, Volume 14]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR72.44]
[Page 62-65]
TITLE 40--PROTECTION OF ENVIRONMENT
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
PART 72--PERMITS REGULATION--Table of Contents
Subpart D--Acid Rain Compliance Plan and Compliance Options
Sec. 72.44 Phase II repowering extensions.
(a) Applicability. (1) This section shall apply to the designated
representative of:
(i) Any existing affected unit that is a coal-fired unit and has a
1985 actual SO2 emissions rate equal to or greater than 1.2
lbs/mmBtu.
(ii) Any new unit that will be a replacement unit, as provided in
paragraph (b)(2) of this section, for a unit meeting the requirements of
paragraph (a)(1)(i) of this section.
(iii) Any oil and/or gas-fired unit that has been awarded clean coal
technology demonstration funding as of January 1, 1991 by the Secretary
of Energy.
(2) A repowering extension does not exempt the owner or operator for
any unit governed by the repowering plan from the requirement to comply
with such unit's Acid Rain emissions limitations for sulfur dioxide.
(b) The designated representative of any unit meeting the
requirements of paragraph (a)(1)(i) of this section may include in the
unit's Phase II Acid Rain permit application a repowering extension plan
that includes a demonstration that:
(1) The unit will be repowered with a qualifying repowering
technology in order to comply with the Phase II emissions limitations
for sulfur dioxide; or
(2) The unit will be replaced by a new utility unit that has the
same designated representative and that is located at a different site
using a qualified repowering technology and the existing unit will be
permanently retired from service on or before the date on which the new
utility unit commences commercial operation.
(c) In order to apply for a repowering extension, the designated
representative of a unit under paragraph (a) of this section shall:
(1) Submit to the permitting authority, by January 1, 1996, a
complete repowering extension plan;
(2) Submit to the Administrator, before June 1, 1997, a complete
petition for approval of repowering technology; and
(3) If the repowering extension plan is submitted for conditional
approval, submit by December 31, 1997, a notification to activate the
plan in accordance with Sec. 72.40(c).
(d) Contents and Review of Petition for Approval of Repowering
Technology. (1) A complete petition for approval of repowering
technology shall include the following elements, in a format prescribed
by the Administrator, concerning the technology to be used in a plan
under paragraph (b) of this section and may follow the repowering
technology demonstration protocol issued by the Administrator:
(i) Identification and description of the technology.
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(ii) Vendor certification of the guaranteed performance
characteristics of the technology, including:
(A) Percent removal and emission rate of each pollutant being
controlled;
(B) Overall generation efficiency; and
(C) Information on the state, chemical constituents, and quantities
of solid waste generated (including information on land-use requirements
for disposal) and on the availability of a market to which any by-
products may be sold.
(iii) If the repowering technology is not listed in the definition
of a qualified repowering technology in Sec. 72.2, a vendor
certification of the guaranteed performance characteristics that
demonstrate that the technology meets the criteria specified for non-
listed technologies in Sec. 72.2; provided that the existence of such
guarantee shall not be a defense against the failure to meet the
criteria for non-listed technologies.
(2) The Administrator may request any supplemental information that
is deemed necessary to review the petition for approval of repowering
technology.
(3) The Administrator shall review the petition for approval of
repowering technology and, in consultation with the Secretary of Energy,
shall make a conditional determination of whether the technology
described in the petition is a qualifying repowering technology.
(4) Based on the petition for approval of repowering technology and
the information provided under paragraph (d)(2) of this section and
Sec. 72.94(a), the Administrator will make a final determination of
whether the technology described in the petition is a qualifying
repowering technology.
(e) Contents of repowering extension plan. A complete repowering
extension plan shall include the following elements in a format
prescribed by the Administrator:
(1) Identification of the existing unit governed by the plan.
(2) The unit's federally-approved State Implementation Plan sulfur
dioxide emissions limitation.
(3) The unit's 1995 actual SO2 emissions rate.
(4) A schedule for construction, installation, and commencement of
operation of the repowering technology approved or submitted for
approval under paragraph (d) of this section, with dates for the
following milestones:
(i) Completion of design engineering;
(ii) For a plan under paragraph (b)(1) of this section, removal of
the existing unit from operation to install the qualified repowering
technology;
(iii) Commencement of construction;
(iv) Completion of construction;
(v) Start-up testing;
(vi) For a plan under paragraph (b)(2) of this section, shutdown of
the existing unit; and
(vii) Commencement of commercial operation of the repowering
technology.
(5) For a plan under paragraph (b)(2) of this section:
(i) Identification of the new unit. A new unit shall not be included
in more than one repowering extension plan.
(ii) Certification that the new unit will replace the existing unit.
(iii) Certification that the new unit has the same designated
representative as the existing unit.
(iv) Certification that the existing unit will be permanently
retired from service on or before the date the new unit commences
commercial operation.
(6) The special provisions of paragraph (h) of this section.
(f) Permitting authority's action on repowering extension plan. (1)
The permitting authority shall not approve a repowering extension plan
until the Administrator makes a conditional determination that the
technology is a qualified repowering technology, unless the permitting
authority conditionally approves such plan subject to the conditional
determination of the Administrator.
(2) Permit issuance. (i) Upon a conditional determination by the
Administrator that the technology to be used in the repowering extension
plan is a qualified repowering technology and a determination by the
permitting authority that such plan meets the requirements of this
section, the permitting authority shall issue the Acid Rain portion of
the operating permit including:
(A) The approved repowering extension plan; and
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(B) A schedule of compliance with enforceable milestones for
construction, installation, and commencement of operation of the
repowering technology and other requirements necessary to ensure that
Phase II emission reduction requirements under this section will be met.
(ii) Except as otherwise provided in paragraph (g) of this section,
the repowering extension shall be in effect starting January 1, 2000 and
ending on the day before the date (specified in the Acid Rain permit) on
which the existing unit will be removed from operation to install the
qualifying repowering technology or will be permanently removed from
service for replacement by a new unit with such technology; provided
that the repowering extension shall end no later than December 31, 2003.
(iii) The portion of the operating permit specifying the repowering
extension and other requirements under paragraph (f)(2)(i) of this
section shall be subject to the Administrator's final determination,
under paragraph (d)(4) of this section, that the technology to be used
in the repowering extension plan is a qualifying repowering technology.
(3) Allowance allocation. The Administrator will allocate allowances
after issuance of an operating permit containing the repowering
extension plan (or, if the plan is conditionally approved, after the
revision of the Acid Rain permit under Sec. 72.40(c)) and of the
Administrator's final determination, under paragraph (d)(4) of this
section, that the technology to be used in such plan is a qualifying
repowering technology. Allowances will be allocated (including a pro
rata allocation for any fraction of a year), as follows:
(i) To the existing unit under the approved plan, in accordance with
Sec. 73.21 of this chapter during the repowering extension under
paragraph (f)(2)(ii) of this section; and
(ii) To the existing unit under the approved plan under paragraph
(b)(1) of this section or, in lieu of any further allocations to the
existing unit, to the new unit under the approved plan under paragraph
(b)(2) of this section, in accordance with Sec. 73.21 of this chapter,
after the repowering extension under paragraph (f)(2)(ii) of this
section ends.
(g) Failed repowering projects. (1)(i) If, at any time before the
end of the repowering extension under paragraph (f)(2)(ii) of this
section, the designated representative of a unit governed by an approved
repowering extension plan notifies the Administrator in writing that the
owners and operators have decided to terminate efforts to properly
design, construct, and test the repowering technology specified in the
plan before completion of construction or start-up testing and
demonstrates, in a requested permit modification, to the Administrator's
satisfaction that such efforts were in good faith, the unit shall not be
deemed in violation of the Act because of such a termination. If the
Administrator is not the permitting authority, a copy of the requested
permit modification shall be sumitted to the Administrator. Where the
preceding requirements of this paragraph are met, the permitting
authority shall revise the operating permit in accordance with this
paragraph and paragraph (g)(1)(ii) of this section and Sec. 72.81
(permit modification).
(ii) Regardless of whether notification under paragraph (g)(1)(i) of
this section is given, the repowering extension will end beginning on
the earlier of the date of such notification or the date by which the
designated representative was required to give such notification under
Sec. 72.94(d). The Administrator will deduct allowances (including a pro
rata deduction for any fraction of a year) from the Allowance Tracking
System account of the existing unit to the extent necessary to ensure
that, beginning the day after the extension ends, allowances are
allocated in accordance with Sec. 73.21(c)(1) of this chapter.
(2) If the designated representative of a unit governed by an
approved repowering extension plan demonstrates to the satisfaction of
the Administrator, in a requested permit modification, that the
repowering technology specified in the plan was properly constructed and
tested on such unit but was unable to achieve the emissions reduction
limitations specified in the plan and that it is economically or
technologically infeasible to modify
[[Page 65]]
the technology to achieve such limits, the unit shall not be deemed in
violation of the Act because of such failure to achieve the emissions
reduction limitations. If the Administrator is not the permitting
authority, a copy of the requested permit modification shall be sumitted
to the Administrator. In order to be properly constructed and tested,
the repowering technology shall be constructed at least to the extent
necessary for direct testing of the multiple combustion emissions
(including sulfur dioxide and nitrogen oxides) from such unit while
operating the technology at nameplate capacity. Where the preceding
requirements of this paragraph are met:
(i) The permitting authority shall revise the Acid Rain portion of
the operating permit in accordance with paragraphs (g)(2) (ii) and (iii)
and Sec. 72.81 (permit modification).
(ii) The existing unit may be retrofitted or repowered with another
clean coal or other available control technology.
(iii) The repowering extension will continue in effect until the
earlier of the date the existing unit commences commercial operation
with such control technology or December 31, 2003. The Administrator
will allocate or deduct allowances as necessary to ensure that
allowances are allocated in accordance with paragraph (f)(3) of this
section applying the repowering extension under this paragraph.
(h) Special provisions. (1) Emissions Limitations. (i) Sulfur
Dioxide. Allowances allocated during the repowering extension under
paragraphs (f)(3) and (g)(2)(iii) of this section to a unit governed by
an approved repowering extension plan shall not be transferred to any
Allowance Tracking System account other than the unit accounts of other
units at the same source as that unit.
(ii) Nitrogen oxides. Any existing unit governed by an approved
repowering extension plan shall be subject to the Acid Rain emissions
limitations for nitrogen oxides in accordance with part 76 of this
chapter beginning on the date that the unit is removed from operation to
install the repowering technology or is permanently removed from
service.
(iii) No existing unit governed by an approved repowering extension
plan shall be eligible for a waiver under section 111(j) of the Act.
(iv) No new unit governed by an approved repowering extension plan
shall receive an exemption from the requirements imposed under section
111 of the Act.
(2) Reporting requirements. Each unit governed by an approved
repowering extension plan shall comply with the special reporting
requirements of Sec. 72.94.
(3) Liability. (i) The owners and operators of a unit governed by an
approved repowering plan shall be liable for any violation of the plan
or this section at that or any other unit governed by the plan,
including liability for fulfilling the obligations specified in part 77
of this chapter and section 411 of the Act.
(ii) The units governed by the plan under paragraph (b)(2) of this
section shall continue to have a common designated representative until
the existing unit is permanently retired under the plan.
(4) Terminations. Except as provided in paragraph (g) of this
section, a repowering extension plan shall not be terminated after
December 31, 1999.
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 15649, Mar. 23, 1993; 62
FR 55481, Oct. 24, 1997]