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section_id ▼ title_number title_name chapter subchapter part_number part_name subpart subpart_name section_number section_heading agency authority source_citation amendment_citations full_text
10:10:5.0.1.1.3.1.1.1 10 Energy II E 503   A Subpart A—General Prohibition   § 503.1 Purpose and scope. DOE     [54 FR 52893, Dec. 22, 1989] This subpart sets forth the statutory prohibition imposed by the Act upon new powerplants. The prohibition in the subpart applies to all new baseload electric powerplants unless an exemption has been granted by OFE under subparts C and D of this part. Any person who owns, controls, rents, leases or operates a new powerplant that is subject to the prohibition may be subject to sanctions provided by the Act or these regulations.
10:10:5.0.1.1.3.1.1.2 10 Energy II E 503   A Subpart A—General Prohibition   § 503.2 Prohibition. DOE     [54 FR 52893, Dec. 22, 1989] Section 201 of the Act prohibits, unless an exemption has been granted under subpart C or D of this part, any new electric powerplant from being constructed or operated as a baseload powerplant without the capability to use coal or another alternate fuel as a primary energy source.
10:10:5.0.1.1.3.1.1.3 10 Energy II E 503   A Subpart A—General Prohibition   § 503.3 [Reserved] DOE        
10:10:5.0.1.1.3.2.1.1 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.4 Purpose and scope. DOE       This subpart establishes the general requirements necessary to qualify for either a temporary or permanent exemption under this part and sets out the methodology for calculating the cost of using an alternate fuel and the cost of using imported petroleum.
10:10:5.0.1.1.3.2.1.10 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.13 Environmental impact analysis. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 51 FR 18866, May 22, 1986; 52 FR 658, Jan. 7, 1987; 54 FR 52894, Dec. 22, 1989] In order to enable OFE to comply with NEPA, a petitioner must include the information indicated in this section if a permanent exemption is requested. Material which has been prepared pursuant to any Federal, State or local requirement for environmental information for this unit or site may be incorporated by reference and appended to the petition. Guidelines issued by OFE for environmental reports should be used in preparing this analysis (44 FR 63740, November 5, 1979). These guidelines, which are also available in the OFE public document room, have been designed to insure that environmental reports follow the format prescribed by Council on Environmental Quality final regulations implementing NEPA. The guidelines are subject to discussion at a prepetition conference and to modification according to the facts of a particular case. (a) All petitions for permanent exemptions must contain the following information: (1) A description of the facility, including site location, and surroundings, alternative site(s), the facility's current proposed operations, its fuel capability, and its pollution abatement systems and equipment (including those systems and equipment necessary for all fuel scenarios considered); (2) A description of the existing environment, including air, water, and land resources; (3) Direct and indirect environmental impacts of the proposed action including impacts of alternative fuel scenarios, and no build alternatives. (4) Regulatory requirements governing the facility, including a description of Federal, State and local requirements for air, water, noise and solid waste disposal which must be met for each fuel considered. (b) For exemptions for cogeneration, the information enumerated below is to be submitted in lieu of the information required by paragraph (a) of this section. However, submission of the following information merely establishes a rebuttable presumption that the grant or denial of the exemption would have no significant environmental impact. OFE may, in individual cases, d…
10:10:5.0.1.1.3.2.1.11 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.14 Fuels search. DOE     [54 FR 52894, Dec. 22, 1989] Prior to submitting a petition for a permanent exemption for lack of alternate fuel supply, site limitations, inadequate capital, or state or local requirements, a petitioner must examine the use of conventional solid coal as a primary energy source at the site under consideration, and at reasonable alternative sites. Where a petitioner believes that its use of such coal would be infeasible, however, and where OFE and the petitioner can reach accord, it may evaluate use of a different alternate fuel in lieu of solid coal. A petitioner of these exemptions must demonstrate for any fuel examined that he would qualify for an exemption.
10:10:5.0.1.1.3.2.1.2 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.5 Contents of petition. DOE       Before OFE will accept a petition for either a temporary or permanent exemption under this part, the petition must include all of the evidence and information required in this part and part 501 of this chapter.
10:10:5.0.1.1.3.2.1.3 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.6 Cost calculations for new powerplants and installations. DOE     [46 FR 59903, Dec. 7, 1981; 46 FR 63033, Dec. 30, 1981; 47 FR 15314, Apr. 9, 1982; 54 FR 52893, Dec. 22, 1989] (a) General. (1) This calculation compares the cost of using alternate fuel to the cost of using imported petroleum. It must be performed for each alternate fuel and/or alternate site that the petitioner is required to examine. (2) The cost of using an alternate fuel as a primary energy source will be deemed to substantially exceed the cost of using imported petroleum if the difference between the cost of using alternate fuel and the cost of using imported oil is greater than zero. (3) There are two comparative cost calculations—a general cost test and a special cost test. Both take into consideration cash outlays for capital investments, annual expenses, and the effect of depreciation and taxes on cash flow. To demonstrate eligibility for a permanent exemption, a petitioner must use the procedures specified in the general cost test (paragraph (b) of this section). To demonstrate eligibility for a temporary exemption, the petitioner may apply the procedures specified in either the general cost test or the special cost test (paragraph (c) of this section). (b) Cost calculation—general cost test. (1) A petitioner may be eligible for a permanent exemption if he can demonstrate that the cost of using an alternate fuel from the first year of operation substantially exceeds the cost of using imported petroleum. Unless the best practicable cost estimates as prescribed below will not materially change during the first ten years of operation of the unit (given the best information available at the time the petition is filed), the petitioner must also demonstrate that the cost of using an alternate fuel beginning at any time within the first ten years of operation and using imported petroleum or natural gas until such time ( i.e., delayed use of alternate fuel) would substantially exceed the cost of using only imported petroleum. (2) The petitioner would only be eligible for a temporary exemption if the computed costs of delayed alternate fuel use, commencing at the start of the second through eleventh years of op…
10:10:5.0.1.1.3.2.1.4 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.7 State approval—general requirement for new powerplants. DOE       (a) Where approvals by the appropriate State regulatory authority are required prior to the construction or use of a new powerplant, a petition for an exemption for consideration by OFE may be submitted to OFE prior to obtaining such approvals from the State regulatory authority. (b) An exemption granted for a powerplant shall not become effective until an adequate demonstration has been made to OFE that all applicable approvals required by the State regulatory authorities have been obtained.
10:10:5.0.1.1.3.2.1.5 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.8 No alternate power supply—general requirement for certain exemptions for new powerplants. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15314, Apr. 9, 1982; 54 FR 52894, Dec. 22, 1989] (a) Application. To qualify for an exemption, except in the case of an exemption for cogeneration units, section 213(c) of the Act requires a demonstration that, despite reasonable good faith efforts, there is no alternative supply of electric power available within a reasonable distance at a reasonable cost without impairing short-run or long-run reliability of service. If a petitioner is unable to demonstrate that there is no alternate supply during the first year of operation, OFE will conclude that the absence of the proposed powerplant will not impair short-term reliability of service, and as a result will not grant the exemption. Such action would not impair long-term reliability of service, since a petition may be submitted for a powerplant that would begin operation in a subsequent year. (b) Criteria. To meet the demonstration required under paragraph (a) of this section, a petitioner must certify that: (1) A diligent effort has been made to purchase firm power for the first year of operation to cover all or part of the projected shortfall at a cost that is less than ten (10) percent above the annualized cost of generating power from the proposed plant (including the capital, operation and maintenance expenses, and fuel prices); and (2)(i) Despite these efforts, the reserve margin in the petitioner's electric region, normal dispatch area, or service area, in the absence of the proposed plant, would fall below twenty (20) percent during the first year of proposed operation; or (ii) Despite these efforts, the reserve margin will be greater than twenty (20) percent but reliability of service would be impaired. In such case, the certification must be related to factors not included in the calculation of reserve margin, such as transmission constraints. (c) Evidence. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certification required under paragraph (b) of this section; and (2) Exhibits containing the basis for the …
10:10:5.0.1.1.3.2.1.6 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.9 Use of mixtures—general requirement for certain permanent exemptions. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989] (a) Criteria. To qualify for a permanent exemption, except in the case of an exemption for fuel mixtures, section 213(a)(1) of the Act requires a demonstration that the use of a mixture of natural gas and petroleum and an alternate fuel for which an exemption under 10 CFR 503.38 (Fuel mixtures) would be available, would not be economically or technically feasible. (b) Evidence. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications to the criteria set forth in paragraph (a) of this section; and (2) Exhibits containing the basis for the certifications submitted under this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support its certifications to this general requirement.) In meeting this general requirement, OFE will require a petitioner to examine only mixtures of oil and coal and natural gas and coal, or, where petitioner wishes to examine an additional or substitute mixture, such other alternate fuels as OFE and the petitioner agree are reasonable to petitioner's circumstances.
10:10:5.0.1.1.3.2.1.7 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.10 Use of fluidized bed combustion not feasible—general requirement for permanent exemptions. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989] (a) OFE finding. Except in the case of an exemption for fuel mixtures, OFE may deny permanent exemptions authorized under section 212 of the Act if OFE finds on a site-specific or generic basis that use of a method of fluidized bed combustion of an alternate fuel is economically and technically feasible. (b) Demonstration. If OFE has made such a finding, OFE will deny a petitioner's request for exemption unless the petitioner demonstrated that the use of a method of fluidized bed combustion is not economically or technically feasible. The petition or any supplement thereto required by OFE must include the following evidence: (1) If use of a method of fluidized bed combustion were to be required, evidence that the petitioner would be eligible for a permanent exemption for lack of alternate fuel supply, site limitations, environmental requirements, lack of adequate capital, or State or local requirements; or (2) Use of a method of fluidized bed combustion is not technically or economically feasible due to design or special circumstances.
10:10:5.0.1.1.3.2.1.8 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.11 Alternative sites—general requirement for permanent exemptions for new powerplants. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989] (a) Criteria. To qualify for permanent exemption due to lack of alternate fuel supply, site limitations, environmental requirements, or inadequate capital, section 212(a) of the Act requires a demonstration that one of these exemptions would be available for any reasonable alternative site for the facility. (b) Evidence. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications to the criteria set forth in paragraph (a) of this section; and (2) Exhibits containing the basis for the certifications submitted under this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support its certifications to this general requirement).
10:10:5.0.1.1.3.2.1.9 10 Energy II E 503   B Subpart B—General Requirements for Exemptions   § 503.12 Terms and conditions; compliance plans. DOE       (a) Terms and conditions generally. A petitioner must comply with any terms and conditions imposed upon the grant of an exemption petition. OFE will limit any such terms and conditions to the unit(s) which is the subject of the petition. (b) Compliance plans for temporary exemptions. (1) Any compliance plan required to accompany a petition for a temporary exemption shall include the following: (i) A detailed schedule of progressive events and the dates upon which the events are to take place, indicating how compliance with the applicable prohibitions of the Act will occur; (ii) Evidence of binding contracts for fuel, or for facilities for the production of fuel, which are required for compliance with the applicable prohibitions of the Act; (iii) A schedule indicating how any necessary permits and approvals required to burn an alternate fuel will be obtained; and (iv) Any other documentary evidence which indicates an ability to comply with the applicable prohibitions of the Act. (2) Any exemption for which a compliance plan is required shall not be effective until the compliance plan is approved by DOE. (3) If the petition is granted, an updated, duly executed plan must be submitted to OFE within one (1) month of an alteration of any milestone in the compliance plan, together with the reasons for the alteration and its impact upon the scheduling of all other milestones in the plan.
10:10:5.0.1.1.3.3.1.1 10 Energy II E 503   C Subpart C—Temporary Exemptions for New Facilities   § 503.20 Purpose and scope. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989] (a) This subpart implements the provisions contained in section 211 of the Act with regard to temporary exemptions for new facilities. (b) This subpart establishes the criteria and standards which owners or operators of new powerplants who petition for a temporary exemption must meet to sustain their burden of proof under the Act. (c) All petitions for temporary exemptions shall be submitted in accordance with the procedures set out in part 501 of this chapter and the applicable requirements of part 503 of these regulations. (d) The duration of any temporary exemption granted under this subpart shall be measured from the date that the facility is placed in service using petroleum or natural gas.
10:10:5.0.1.1.3.3.1.2 10 Energy II E 503   C Subpart C—Temporary Exemptions for New Facilities   § 503.21 Lack of alternate fuel supply. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 54 FR 52894, Dec. 22, 1989] (a) Eligibility. Section 211(a)(1) of the Act provides for a temporary exemption due to the unavailability of an adequate and reliable supply of an alternate fuel at a cost which does not substantially exceed the cost of using imported petroleum. To qualify, a petitioner must certify that: (1) A good faith effort has been to obtain an adequate and reliable supply of an alternate fuel of the quality necessary to conform to the design and operational requirements of the unit; (2) For the period of the proposed exemption, the cost of using such alternate fuel would substantially exceed the cost of using imported petroleum as a primary energy source as defined in § 503.6 (Cost calculation) of these regulations; (3) The petitioner will be able to comply with the applicable prohibitions of the Act at the end of the proposed exemption period; and (4) No alternate power supply exists, as required under § 503.8 of these regulations. (b) Evidence required in support of a petition. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption); (3) All data required by § 503.6 (cost calculation) of these regulations necessary for computing the cost calculation formula; and (4) The anticipated duration of the lack of alternate fuel supply which constitutes the basis for the exemption. (c) Duration. This temporary exemption, taking into account any extensions or renewals, may not exceed 10 years.
10:10:5.0.1.1.3.3.1.3 10 Energy II E 503   C Subpart C—Temporary Exemptions for New Facilities   § 503.22 Site limitations. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989] (a) Eligibility. Section 211(a)(2) of the Act provides for a temporary exemption due to a site limitation. To qualify for such an exemption, a petitioner must certify that: (1) One or more specific physical limitations relevant to the location or operation of the proposed facility exist which, despite diligent good faith efforts, cannot be overcome before the end of the proposed exemption period; (2) The petitioner will be able to comply with the applicable prohibitions of the Act at the end of the proposed exemption period; and (3) No alternate power supply exists, as required under § 503.8 of these regulations. Examples of the types of site limitations to which a petitioner may certify in order to qualify for this exemption include: (i) Inaccessability of alternate fuels as a result of a specific physical limitation; (ii) Unavailability of transportation facilities for alternate fuels; (iii) Unavailability of adequate land or facilities for handling, using, or storing an alternate fuel; (iv) Unavailability of adequate land or facilities for controlling and disposing of wastes, including pollution control equipment or devices necessary to assure compliance with applicable environmental requirements; (v) Unavailability of adequate and reliable supply of water, including water for use in compliance with applicable environmental requirements; or (vi) Other site limitations exist which will not permit the location or operation of the proposed unit using an alternate fuel. (b) Evidence required in support of a petition. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption); and (3) The anticipated duration of the site limitation which…
10:10:5.0.1.1.3.3.1.4 10 Energy II E 503   C Subpart C—Temporary Exemptions for New Facilities   § 503.23 Inability to comply with applicable environmental requirements. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989] (a) Eligibility. Section 211(a)(3) of the Act provides for a temporary exemption due to an inability to comply with applicable environmental requirements. To qualify a petitioner must demonstrate that despite diligent good faith efforts: (1) The petitioner will be unable, as of the projected date of commencement of operation, to comply with the applicable prohibitions of the Act without violating applicable Federal or State environmental requirements; and (2) The petitioner will be able to comply with the applicable prohibitions of the Act and with applicable environmental requirements by the end of the temporary exemption period. (1) For purposes of considering an exemption under this section, OFE's decision will be based solely on an analysis of the petitioner's capacity to physically achieve applicable environmental requirements. The petition should be directed toward those conditions or circumstances which make it physically impossible to comply during the temporary exemption period. The cost of compliance is not relevant, but cost-related considerations may be presented as part of a demonstration submitted under § 503.21. (2) Prior to submitting an exemption petition, it is recommended that a meeting be requested with OFE and EPA or the appropriate State or local regulatory agency to discuss options for operating an alternate fuel fired facility in compliance with applicable environmental requirements. (b) Evidence required in support of a petition. The petition must include the following evidence in order to make the demonstration required by this section: (1) Where the petitioner has applied for a construction permit from EPA or an appropriate State agency prior to petitioning for an exemption under this section, a copy of that application and synopsis of supporting documents filed with or subsequent to that application must be submitted to OFE with the petition or at the time filed with the permitting agency; (2) To the extent applicable, a copy of the EPA or State denial of the construction pe…
10:10:5.0.1.1.3.3.1.5 10 Energy II E 503   C Subpart C—Temporary Exemptions for New Facilities   § 503.24 Future use of synthetic fuels. DOE     [46 FR 59903, Dec. 7, 1981; 47 FR 15315, Apr. 9, 1982; 54 FR 52894, Dec. 22, 1989] (a) Eligibility. Section 211(b) of the Act provides for a temporary exemption based upon the future use of synthetic fuels. To qualify, a petitioner must certify that: (1) The petitioner will be able to comply with the applicable prohibitions imposed by the Act by the use of a synthetic fuel derived from coal or another alternate fuel as a primary energy source in the proposed facility by the end of the proposed exemption period; (2) The petitioner will not be able to comply with the applicable prohibitions imposed by the Act by use of a synthetic fuel until the end of the proposed exemption period; and (3) No alternate power supply exists, as required under § 503.8 of these regulations. (b) Evidence required in support of a petition. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption); and (3) A preliminary compliance plan, including to the extent available, the information required under § 503.12. (c) Final Compliance Plan. Before an exemption may become effective, the petitioner must submit and OFE must approve a final compliance plan as required by § 503.12. (d) Duration. This temporary exemption may be granted for a period of up to ten (10) years. Unless the petitioner requests otherwise, any temporary exemption from the fuel use prohibitions of the Act for the future use of synthetic fuels will commence on the date of commercial operation of the facility. Contracts based on the anticipated successful demonstration of a development program and/or the anticipated economic feasibility of a synthetic fuels facility, will generally be sufficient to meet the “binding contract” requirements for this exemption.
10:10:5.0.1.1.3.3.1.6 10 Energy II E 503   C Subpart C—Temporary Exemptions for New Facilities   § 503.25 Public interest. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989] (a) Eligibility. Section 211(c) of the Act provides for a temporary public interest exemption. To qualify, a petitioner must demonstrate that: (1) The unit will be capable of complying with the applicable prohibitions at the end of the proposed exemption period; (2) The granting of the exemption would be in accord with the purposes of the Act and would be in the public interest; and (3) No alternate power supply exists, as required under § 503.8 of these regulations. (b) Evidence required in support of a petition. The petition must include the following evidence in order to make the demonstration required by this section: (1) Substantial evidence to corroborate the eligibility requirements identified above; and (2) The anticipated duration of the circumstances which constitute the basis for the exemption. (c) Certification alternative. If the petitioner requires use of oil or natural gas in a unit, during the construction of an alternate-fuel fired unit, the petitioner may substitute, in lieu of the evidentiary requirements of paragraphs (b)(1) and (2) of this section: (1) A duly executed certification, including the requested duration of the exemption, that the unit will be operated on oil or natural gas only during the construction of an alternate fuel fired unit to be owned or operated by the petitioner; and (2) Exhibits containing the basis for the certifications required under paragraph (c)(1) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption). (d) Duration. This temporary exemption, taking into account extension and renewals, may not exceed 5 years.
10:10:5.0.1.1.3.4.1.1 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.30 Purpose and scope. DOE       (a) This subpart implements the provisions contained in section 212 of the Act with regard to permanent exemptions for new facilities. (b) This subpart establishes the criteria and standards which owners or operators of new powerplants and installations who petition for a permanent exemption must meet to sustain their burden of proof under the Act. (c) All petitions for permanent exemptions for new facilities shall be submitted in accordance with the procedures set out in part 501 of this chapter and the applicable requirements of part 503 of these regulations.
10:10:5.0.1.1.3.4.1.10 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   §§ 503.39-503.44 [Reserved] DOE        
10:10:5.0.1.1.3.4.1.2 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.31 Lack of alternate fuel supply for the first 10 years of useful life. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989] (a) Eligibility. Section 212(a)(1)(A)(i) of the Act provides for a permanent exemption due to lack of an adequate and reliable supply of alternate fuel within the first 10 years of useful life of the proposed unit. To qualify, a petitioner must certify that: (1) A good faith effort has been made to obtain an adequate and reliable supply of an alternate fuel for use as a primary energy source of the quality and quantity necessary to conform with the design and operational requirements of the unit; (2) Such a supply is not likely to be available within the first 10 years of useful life of the proposed unit; (3) No alternate power supply exists, as required under § 503.8 of these regulations; (4) Use of mixtures is not feasible, as required under § 503.9 of these regulations; and (5) Alternative sites are not available, as required under § 503.11 of these regulations. (b) Evidence required in support of a petition. A petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption); (3) Environmental impact analysis, as required under § 503.13 of these regulations; and (4) Fuels search, as required under § 503.14 of these regulations.
10:10:5.0.1.1.3.4.1.3 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.32 Lack of alternate fuel supply at a cost which does not substantially exceed the cost of using imported petroleum. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 54 FR 52895, Dec. 22, 1989] (a) Eligibility. Section 212(a)(1) (A)(ii) of the Act provides for a permanent exemption due to lack of an alternate fuel supply at a cost which does not substantially exceed the cost of using imported petroleum. To qualify a petitioner must certify that: (1) A good faith effort has been made to obtain an adequate and reliable supply of an alternate fuel for use as a primary energy source of the quality and quantity necessary to conform with the design and operational requirements of the proposed unit; (2) The cost of using such a supply would substantially exceed the cost of using imported petroleum as a primary energy source during the useful life of the proposed unit as defined in § 503.6 (cost calculation) of these regulations; (3) No alternate power supply exists, as required under § 503.8 of these regulations. (4) Use of mixtures is not feasible, as required under § 503.9 of these regulations; and (5) Alternative sites are not available, as required under § 503.11 of these regulations. (b) Evidence required in support of a petition. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption); (3) Environmental impact analysis, as required under § 503.13 of these regulations; (4) Fuels search, as required under § 503.14 of these regulations; and (5) All data required by § 503.6 (cost calculation) of these regulations necessary for computing the cost calculation formula.
10:10:5.0.1.1.3.4.1.4 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.33 Site limitations. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989] (a) Eligibility. Section 212(a)(1)(B) of the Act provides for a permanent exemption due to site limitations. To qualify for such an exemption, a petitioner must certify that: (1) One or more specific physical limitations relevant to the location or operation of the proposed facility exist which, despite good faith efforts, cannot reasonably be expected to be overcome within five years after commencement of operations; (2) No alternate power supply exists, as required under § 503.8 of these regulations; (3) Use of mixtures is not feasible, as required under § 503.9 of these regulations; and (4) Alternative sites are not available, as required under § 503.11 of these regulations. Examples of the types of site limitations to which a petitioner may certify in order to qualify for this exemption include: (i) Inaccessibility of alternate fuels as a result of a specific physical limitation; (ii) Unavailability of transportation facilities for alternate fuels; (iii) Unavailability of adequate land or facilities for handling, using or storing an alternate fuel; (iv) Unavailability of adequate land or facilities for controlling and disposing of wastes, including pollution control equipment or devices necessary to assure compliance with applicable environmental requirements; (v) Unavailability of adequate and reliable supply of water, including water for use in compliance with applicable environmental requirements; or (vi) Other site limitations exist which will not permit the location or operation of the proposed unit using an alternate fuel. (b) Evidence required in support of the petition. A petitioner must include in the petition the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the grantin…
10:10:5.0.1.1.3.4.1.5 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.34 Inability to comply with applicable environmental requirements. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989] (a) Eligibility. Section 212(a)(1)(C) of the Act provides for a permanent exemption due to the inability to comply with applicable environmental requirements. To qualify, a petitioner must demonstrate that despite good faith efforts: (1) The petitioner will be unable within 5 years after beginning operation, to comply with the applicable prohibitions imposed by the Act without violating applicable Federal or state environmental requirements; and (2) Reasonable alternative sites, which would permit the use of alternate fuels in compliance with applicable Federal or state environmental requirements, are not available. (1) For purposes of considering an exemption under this section, OFE's decision will be based solely on an analysis of the petitioner's capacity to physically achieve applicable environmental requirements. The cost of compliance is not relevant, but cost-related considerations may be presented as part of a demonstration submitted under § 503.32 (Lack of alternate fuel supply). (2) Prior to deciding to submit an exemption petition, it is recommended that a petitioner request a meeting with OFE and EPA or the appropriate state or local regulatory agency to discuss options for operating an alternate fuel-fired facility in compliance with the applicable environmental requirements. (b) [Reserved] (c) Evidence required in support of a petition. The petitioner must include in the petition the following evidence in order to make the demonstration required by this section: (1) Where the petitioner has applied for a construction permit from EPA or an appropriate state agency prior to petitioning for an exemption from OFE under this section, a copy of such application and a synopsis of all supporting documents filed with or subsequent to the application must be submitted to OFE with the petition or at the time filed with the permitting agency; (2) To the extent applicable, a copy of the EPA or state denial of the construction permit application; (3) To the extent applicable, a synopsis of the admini…
10:10:5.0.1.1.3.4.1.6 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.35 Inability to obtain adequate capital. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 54 FR 52895, Dec. 22, 1989] (a) Eligibility. Section 212(a)(1)(D) of the Act provides for a permanent exemption due to inability to obtain adequate capital. To qualify, a petitioner must certify that: (1) Despite good faith efforts the petitioner will be unable to comply with the applicable prohibitions imposed by the Act because the additional capital required for an alternate fuel-capable unit beyond that required for the proposed unit cannot be raised; (2) The additional capital cannot be raised: (i) Due to specific restrictions (e.g., convenants on existing bonds) which constrain management's ability to raise debt or equity capital; (ii) Without a substantial dilution of shareholder equity; (iii) Without an unreasonably adverse affect on the utility's credit rating; or (iv) In the case of non-investor-owned public utilities, without jeopardizing the utility's ability to recover its capital investment, through tariffs, without unreasonably adverse economic effect on its service area (such as adverse impacts on local industry or undue hardship to ratepayers). (3) No alternative power supply exists, as required under § 503.8 of these regulations; (4) Use of mixtures is not feasible, as required under § 503.9 of these regulations; and (5) Alternative sites are not available, as required under § 503.11 of these regulations. (b) Evidence required in support of a petition. A petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption); (3) Environmental impact analysis, as required under § 503.13 of these regulations; and (4) Fuels search, as required under § 503.14 of these regulations.
10:10:5.0.1.1.3.4.1.7 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.36 State or local requirements. DOE     [46 FR 59903, Dec. 7, 1981; 46 FR 63033, Dec. 30, 1981, as amended at 54 FR 52895, Dec. 22, 1989] (a) Eligibility. Section 212(b) of the Act provides for an exemption due to certain State or local requirements. To qualify a petitioner must certify that: (1) With respect to the proposed site of the unit, the operation or construction of the new unit using an alternate fuel is infeasible because of a State of local requirement other than a building code, nuisance, or zoning law; (2) The petitioner has made a good faith effort to obtain a variance from the State or local requirement but has been unable to do so or has demonstrated why none is available; (3) The granting of the exemption would be in the public interest and would be consistent with the purposes of the Act; (4) The petitioner is not entitled to an exemption for lack of alternate fuel supply, site limitation, environmental requirements, or inability to obtain adequate capital at the site of the proposed powerplant or at any reasonable alternative site for the alternate fuel(s) considered; (5) At the proposed site and every reasonable alternative site where the petitioner is not entitled to an exemption for lack of alternate fuel supply, site limitation, environmental requirements, or inability to obtain adequate capital, the petitioner nevertheless would be barred at each such proposed or alternate site from burning an alternate fuel by reason of a State or local requirement; (6) No alternate power supply exists, as required under § 503.8 of these regulations; and (7) Use of mixtures is not feasible, as required under § 503.9 of these regulations. (b) Evidence required in support of a petition. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption); (3) Environmental imp…
10:10:5.0.1.1.3.4.1.8 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.37 Cogeneration. DOE     [54 FR 52895, Dec. 22, 1989] The following table may be used to determine eligibility for a permanent exemption based on oil and natural gas savings. Average Annual Utilization of Oil and Natural Gas for Electricity Generation by State [BTU's per KWHR sold] Data are based upon 1987 oil, natural gas and electricity statistics published by DOE's Energy Information Administration.
10:10:5.0.1.1.3.4.1.9 10 Energy II E 503   D Subpart D—Permanent Exemptions for New Facilities   § 503.38 Permanent exemption for certain fuel mixtures containing natural gas or petroleum. DOE     [46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52896, Dec. 22, 1989] (a) Eligibility. Section 212(d) of the Act provides for a permanent exemption for certain fuel mixtures. To qualify a petitioner must certify that: (1) The petitioner proposes to use a mixture of natural gas or petroleum and an alternate fuel as a primary energy source; (2) The amount of petroleum or natural gas proposed to be used in the mixture will not exceed the minimum percentage of the total annual Btu heat input of the primary energy sources needed to maintain operational reliability of the unit consistent with maintaining a reasonable level of fuel efficiency; and (3) No alternate power supply exists, as required under § 503.8 of these regulations. (b) Evidence required in support of a petition. The petition must include the following evidence in order to make the demonstration required by this section: (1) Duly executed certifications required under paragraph (a) of this section; (2) Exhibits containing the basis for the certifications required under paragraph (a) of this section (including those factual and analytical materials deemed by the petitioner to be sufficient to support the granting of this exemption); (3) A description of the fuel mixture, including component fuels and the percentage of each such fuel to be used; and (4) Environmental impact analysis as required under § 503.13 of these regulations. (c) Solar mixtures. OFE will grant a permanent mixtures exemption for the use of a mixture of solar energy (including wind, tide, and other intermittent sources) and petroleum or natural gas, where: (1) Solar energy will account for at least 20 percent of the total annual Btu heat input, of the primary energy sources of the unit; and (2) Petitioner meets the eligibility and evidentiary requirements of paragraphs (a) and (c) of this section.

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