----- Forwarded by Melanie King/RTP/USEPA/US on 04/06/2010 02:18 PM

----- Rick Counihan <RCounihan@enernoc.com> wrote on 04/05/2010 06:29:57 AM:

> From: > > Rick Counihan <RCounihan@enernoc.com> > > To: > > Melanie King/RTP/USEPA/US@EPA, Jeneva Craig/DC/USEPA/US@EPA, Michael > Horowitz/DC/USEPA/US@EPA, Peter Tsirigotis/RTP/USEPA/US@EPA, RobertJ > Wayland/RTP/USEPA/US@EPA, Rob Brenner/DC/USEPA/US@EPA > > Cc: > > "David M. Friedland" <DFriedland@bdlaw.com>, "don@blueskyenviro.com" > <don@blueskyenviro.com>, Ken Schisler <kschisler@enernoc.com>, Don > DiCristofaro <DDiCristofaro@enernoc.com>, Rick Counihan > <RCounihan@enernoc.com> > > Date: > > 04/05/2010 06:30 AM > > Subject: > > RE: Follow-up from Meeting with EPA r.e. RICE NESHAPS and 15 Hour > Emergency DR Limit > > All, > > > > Thank you for taking the time to meet with us on Tuesday. We very > much appreciate your willingness to brainstorm with us on the > important issue that we have raised. > > > > To restate the problem: 15 hours does not meet the minimum number of > hours required to qualify for the emergency demand response programs > in PJM, ERCOT or ISO New England. As a result, the NESHAPs > regulation, as currently written, will preclude all emergency > generators from participating in these markets - removing a > significant amount of reliable capacity from the system. > > > > The number of hours allowed for emergency DR participation is not a > simple question of risk allocation for us, as Peter suggested at the > end of our meeting. As I hope we have demonstrated, regardless of how > many hours are actually dispatched in a given year, it would be a > tariff violation to represent that an asset is available for 60 hours > per year (the PJM example) when regulations only allow it to be > available for 15 hours. > > > > You asked us to think about alternatives to simply increasing the > current 15 hour limit on emergency DR to 60 hours. Following are two > proposals for your consideration: > > > > Proposal A > > > > As finalized, NESHAPs has three different hourly limits for emergency > generators (40 CFR 63.6640 (f) (4)). First, there is an overall limit > of 100 hours per year for testing and maintenance. > Second, within that 100 hour limit, there is an allowance for up to 50 > hours of "non-emergency operation" (not to include peak shaving). > Third, of the 50 hours for non-emergency operation, only 15 can be > used for emergency DR. > > > > One idea is to eliminate the 50 hour allowance for "non-emergency > operation" and increase the limit for emergency DR participation to 60> hours. Such a change would preserve the overall 100 hour limit and

> the prohibition on peak shaving, while likely reducing overall run > time because (a) "non-emergency operation" would be disallowed and (b) > generator owners have the incentive to skip testing in months when > emergency DR events are called because operation during DR events > satisfies monthly testing requirements. Importantly, this change > would preserve the last line of electric system defense currently > provided by emergency generators. > > > > Proposal B > > > > Another idea is to limit emergency DR participation to "the lesser of > 60 hours or the minimum number of hours required by a regional > transmission organization or equivalent balancing authority's tariff > to participate in emergency demand response" (or similar language). > The effect of this modified provision would be a 60 hour maximum in > PJM and ISO New England, and a 24 hour maximum in ERCOT. > > > > Obviously, the two proposals described above could be combined as > well. That is, eliminate the 50 hour allowance for "non-emergency > operation" and increase the limit for emergency DR participation to > the lesser of 60 hours or the minimum number of hours required by a > regional transmission organization or equivalent balancing authority's > tariff to participate in emergency demand response. > > > > I hope these ideas are helpful. We look forward to hearing back from > you after you have had a chance to further discuss this issue. > > > > Sincerely, > > > > Rick Counihan - Vice President Regulatory Affairs > > EnerNOC, Inc. | 400 8th St., NW, Suite 804 | Washington D.C. 20004 > > o. 415.517.1861 > > rcounihan@enernoc.com www.enernoc.com > > EnerNOC - get more from energy