## From: "Higgins, Cortney" <Cortney_Higgins@omb.eop.gov> To: Melanie King/RTP/USEPA/US@EPA Cc: RobertJ Wayland/RTP/USEPA/US@EPA, Paula VanLare/DC/USEPA/US@EPA Date: 01/14/2013 12:16 PM Subject: RE: Suggested Edits to the Impacts Memo and Preamble regarding Reporting

Hi Melanie, Attached are additional interagency comments on the regulatory text. Please let me know if you have questions about these suggestions. Regards,Cortney(See attached file: Comments on the RICE Rule14Jna2013_InteragencycommentsunderEO13563.docx)63.6640(f)(4)

(i) For existing emergency stationary RICE located at area

sources , prior to May 3, 2014, the 50 hours per year for nonemergency situations can be used for peak shaving or nonemergency demand response to generate income for a facility, or to otherwise supply power as part of a financial arrangement with another entity if the engine is 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. (ii) For existing emergency stationary RICE located at area

sources, the 50 hours per year for non-emergency situations can be used to supply power as part of a financial arrangement with another entity if all of the following conditions are met: (A) The engine is dispatched by the local balancing authority or local transmission and distribution system

operator. (B) The dispatch is intended to mitigate local transmission and/or distribution limitations so as to avert potential voltage collapse or line overloads that could lead to the interruption of power supply in a local area or region. Comment [A1]: For clarity you might want to add the following text, shown in read and underlined.§63.6585 Am I subject to this subpart?

* * * * * (f) The emergency stationary RICE listed in paragraphs (f)(1) through (3) of this section are not subject to this subpart. The stationary RICE must meet the definition of an emergency stationary RICE in §63.6675, which includes operating according to the provisions specified in §63.6640(f). (1) Existing residential emergency stationary RICE located at an area source of HAP emissions that do not operate or are not contractually obligated to be available for more than 15 hours per calendar year for the purposes specified in §63.6640(f)(2)(ii) and (iii) and that do not operate for the purpose specified in §63.6640(f)(4)(ii).

§63.6675 What definitions apply to this subpart? Backup power for renewable energy means an engine that provides backup power to a facility that generates electricity from the following renewable energy resources : (a) wind, solar, geothermal, wasteheat recovery, hydrothermal, wave, tidal, river in-stream, or hydropower;

(b) low-emission nontoxic biomass based on solid or liquid organic fuels from wood, forest and field residues, or animal or fish products;

(c) dedicated energy crops available on a renewable basis; or

(d) landfill gas and digester gas.] Deleted: , as that term is defined in Alaska Statute 42.45.045(l)(5) (incorporated by reference, see §63.14). Comment [A2]: EPA should incorporate the text of the definition of renewable energy resources, particularly when it will apply to any RICE and not only to those located in Alaska. The Alaska Statue (“ Sec. 42.45.045. Renewable energy grant fund and recommendation program.” ) could change in the future if Alaska wants to add or exclude a renewable energy source from their renewable energy grant fund program.