## ENERG Y AN

D ENVIRONMENTA L ANALYSIS , INC . 1655 NORT H FOR

T MYE R DRIV E ARLINGTON , VIRGINI A 2220 9 FAX : 703/528-510 6 TEL : 703/528-190 0 Jun e 30 , 200 4

Mr . Rober

t Donaldso n Departmen

t o f Environmenta

l Protectio n Busines s Complianc e Divisio n On e Winter Stree t Boston , M A 0210 8 Dea r Mr . Donaldson : Thi s lette r i s afollow-u p to my previou s comments regardin g th e proposed Massachusett s regulation s fo r

smal l engine s an

d turbines , 31 0 CM R 7.20 . Thi s lette r focuse s o n th

e lac k o f recognitio n fo r

CH P i n the propose

d rule . Combined hea

t an d power (CHP) i s th

e sequentia

l generation o f

electri c an

d therma l outpu t fro m acommon hea

t input . CH

P system s use muc h les s energ

y tha n require d to provid e th

e sam e inpu t fromconventiona

l separat e therma l an d electri c generation . B y usin g les s fue l th e CH P syste mals o reduce s emission s o f al l pollutants . The benefit s o f CH P hav e bee n recognize d b y th e U.S . EPA , U.S . DOE , NESCAUM , STAPPA/ALAPCO , man y environmenta

l organization s an d man y states . Th e discussion i n th

e proposed rul e suggest

s tha t recognizin g th

e therma l output o f CH P woul d be a n illega l "nettin g ou t

o f BACT " an

d result i n increase

d emissions . I believ e tha t thi s i s incorrec t o n bot h counts . First , th e goa l o f recognizin g th

e therma l output o f CH P i s no t t o avoi d regulation , but

to recogniz e th

e emissio n reduction s tha t ar e actuall y achieved throug h th e applicatio n o f

ahighe r efficienc y technolog y (CHP) . Th e use o f increased efficienc y a

s afor mo f

pollutio n preventio n (P2 ) t o reduc

e emission s ha

s bee n widel y endorse

d b y environmenta

l regulator s an

d environmentalists . P

2 i s no t jus t a n alternativ e t o conventiona l emissio n contro l technologies , i t i s actually preferabl e because i t reduce s emission s o f

al l pollutants , avoid s th

e generation o f secondar y pollutant s and reduce s consumptio n o f fossi l fuel . Thus , fromapurel y polic y goal , promotin g emission reduction s throug h efficien t CH P woul d see

mto be ahig h priorit y fo r Massachusetts . Fro malega

l position , th e "nettin g ou t o f BACT " argumen

t seem s t o assum

e tha t onl y direc t emissio n contro l technologie s ca n b e include d a

s par t o f th e BAC T assessmen

t o f emission reductions . I n fact , Federa l guidance o n BAC T instruct s state s t o include inherentl y low

emittin g processes a

s par t o f th e BAC T analysis . Thi s woul d include th e emission reductio n benefit s o f

ahighe r efficienc y proces s suc

h a s CHP . A complet

e assessmen

t o f BAC T shoul dLetter

to : Bo b Donaldso n Jun e 30 , 200 4 Pag e 2 therefor e include th

e cost-effectivenes s o f

CH P a s a n alternativ e emission contro l technology . Since th e goa l o f th e proposed rul e i s streamline d permitting , asimple r alternativ e i s calle d for . Th e RA P model rul e include s astructur e tha t recognize s th

e therma l outpu t o f anew CH

P facilit y b y incorporatin g th e effec t o f a n avoide d therma

l generato r (boiler ) tha

t applie s BACT . Thu s thi s incorporate s the effec t o f BAC T on th

e therma l componen

t o f th e CH P facilit y withou t alength y calculatio n an

d provide s recognitio n o f th e effec t o f pollutio n preventio n i n setting a n appropriat e electricity-base d emissio n limi t fo r th e CH P facility . Thi s i s no t

nettin g ou

t o f BACT . I t

i s appropriately considerin g th e effec t o f efficienc y i n aBAC T analysis . Thi s i s a lega l approac h and shoul d b

e include d i n th

e Massachusett

s rule . The stat e o f Massachusett

s ha s bee n a t th e forefron t

o f encouraging energ

y efficienc y throug h the us e o f output-base

d regulation . Thi s effor t i s becomin g mor

e importan

t a s Massachusett

s expand s it s programs to reduc e greenhouse gase s a s wel l a s criteri apollutants . CH

P i s th e most widel y applicabl e an

d immediatel y availabl e technolog y t o achiev e these goals . I hope tha

t yo u wil l no t mis s th e opportunit

y t o tak e ful l advantag

e o f thi s importan

t tool . Sincerely ,

Joel Bluestein , P.E .