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BLU E SK Y ENVIRONMENTA L LL C

Jun e 30,200 4 Mr . Rober

t T . Donaldson , Associat

e Directo r Busines s Complianc e Divisio n Burea u o f Wast e Preventio n Departmen

t o f Environmenta

l Protectio n On e Winter Street, Eight

h Floo r Boston , M A 0210 8 SUBJECT : Propose

d Amendments to 31 0 CM R7.0 0 an d 31 0 CM R70.0

0 Dea r Mr . Donaldson : These comment

s supplemen

t th e testimon

y (se e attached

) tha t I provide d t o th

e Massachusett

s Departmen

t o f Environmenta

l Protectio n ("DEP" ) o n Jun e 22 , 200 4 a t th e publi c hearing regarding th

e proposed regulatio n changes fo r engine s an

d turbine s (31 0 CM R7.0 0 an d 31 0 CM R 70.00) . M y specifi c comment s ar e a s follows : • Amendin g th

e definitio n o f

"emergency " i s ver

y importan

t t o keeping th

e light s o n i n Massachusetts . Th

e DE P shoul d include language i n th e definitio n tha

t wil l allo w emergenc y engine s t o operat

e durin g ISO' s O

P 4 , Actio n 1 2 conditions . These condition s ar e ver y rarel y calle d b y th

e ISO ; the

y ar e reserved fo r

rea l emergencies . • Th e modifie d definitio n o f

"emergency " shoul d apply t o al l ne w an d existin g sources , whethe r the y ar e permitte d b y rul e o

r b y a n air pla n approval . Al l emergenc y engine s should b e treated consistently . Thus , th e existin g air

regulation s fo r

emergenc

y engine s a

s regulated b y permi t

b y rul e nee

d t o b e amende d s o tha t th e definitio n o f

"emergency " als o applie s to existin g emergenc y engine s locate d a

t facilitie s wit h existin g air pla n approvals . Thus , th e modifie d definitio n o f

emergenc

y wil l be consistent ; otherwise , the DE P wil l hav e to modif

y ever y air pla n approva l tha t ha s bee n issue d fo r emergenc

y engines . • Th e Pla n Approval optio n shoul d b e extende d t o al l type s o f

facilities , not

jus t aselec t fe w a s th e DE P ha s proposed . • I believ e th

e distribute d generation ("DG" ) limits , a s proposed , ar

e to o low . Althoug h I agre e wit h th e us e o f fuel-neutral , output-base d standards fo r

larg e base-loa

d powe r generatin g facilities , I d

o no t agre e tha t fuel-neutral standard

s shoul d b e use d fo r small D G engines . Diesel-fuele d D G engine s wil l no t b e abl e to mee t th e propose d standards , eve

n wit h add-o

n controls . A n emission s fe e syste msimila r t o wha t Ne w Hampshir

e ha s enacte d shoul d be implemente d a s soo n a s possible . I propos e tha

t th e DE P initiat e a committee wit h th

e task o f developin g a

n emission s fee-base

d syste mi n lie u o f

th e 104 0 Grea t Plai n Avenu e • 2 n dFloor • Needham , M A • 0249

2 Telephon e 781-453-1150 • Ce

U 617-834-840

8 »Fa x 781-453-114

2Mr . Rober

t Donaldso n Departmen

t o f Environmenta

l Protectio n Jun e 30 , 200 4 Pag e 2

propose d emissio n standards . I a mconfiden t

tha t apropose

d syste mcoul d b

e develope

d i n afe w month s an

d I woul d happil y agre

e t o participat

e i n th e developmen

t o f it . Than k yo u ver y muc h fo r allowin g m

e to commen

t o n these regulations . I f

yo u hav e an y question s or requir e additiona

l information , pleas e d

o no t hesitat e t o contac

t m e a t 781-453-1150 . Sincerely , Blu e Sk y Environmenta

l LL C

Donal d C . DiCristofafo , CC M Presiden t enclosur e

104

0 Grea t Plai n Avenu e • 2 n dFloor • Needham , M A • 0249

2 Telephon e 781-453-1150 • Ce

U 617-834-840

8 »Fa x 781-453-114

2TESTIMON Y Fro m Donald C . DiCristofaro , CC M Blue Sk y Environmenta

l LL C 104 0 Grea t Plai n Avenue ; 2 n dFloor Needham,MA 0249

2 Regarding Propose d Amendment s t o 31 0 CM R 7.0 0 an d 31 0 CM R 70.00 Jun e 22 , 200

4 M y nam e i s Do n DiCristofar o an

d I a ma n air qualit y meteorologis t

wit h ove r 23 year s o f experience i n air

permitting . M y compan

y i s Blu e Sk

y Environmenta

l LL C o f Needham , Massachusetts . I hav

e tw o degrees i n meteorolog y an d I a maCertifie d Consultin g Meteorologis t

a s designate

d b y th e America

n Meteorologica

l Society . Las t

summe r I participate d i n th

e Connecticu

t Departmen

t o f Environmenta

l Protection' s ("DEP" ) Stat e Implementatio n Pla

n Revisio n Advisor

y Committe e ("SIPRAC" ) subcommittee tha t developed th

e propose

d distribute d generation regulation s fo r Connecticut . These proposed regulation s tha

t hav e gon e throug h th

e hearin g proces s an

d tha t ar e expecte d to b e approve

d thi s fal l an

d enacte d o n Januar

y 1 , 2005 ar

e simila r to th e propose

d Massachusett

s DE P regulations , bu t

wit h som

e key differences , especiall y regardin g th

e definitio n o f

"emergency. " I woul d lik e to focu s my comment s toda y o n th e definitio n o f "emergency. " Ia mals o representing toda y Pinpoint

Powe r LL C o f Needham , Massachusett s an d EnerNOC , Inc . o f

Boston , Massachusetts . Pinpoint Powe r develops , own s an

d manage s powe r an d deman d sid e managemen

t asset s i n th e Northeast . Pinpoin

t Powe r ha s bee n a n activ e Deman

d Respons

e Provide

r i n th e Ne w England Powe

r Poo l sinc e 2002 . EnerNO C i s aprivately-funde d compan y tha t help s energ

y user s manag e thei r energ y consumptio n an

d reduce thei r

deman d fo r electricit y durin g localize d an

d system-wid

e capacit y deficienc y emergencie s t o creat e amor e robus t an d reliabl e electricit

y gri d - a solutio n calle d Deman

d Response . EnerNO C i s activ e i n area s wher e th e electricit

y gri d i s most strained , includin g Northeas t Massachusetts/Bosto

n ("NEMA/Boston") , Ne w York City , Lon g Island , an

d Southwes

t Connecticu

t ("SWCT") . W e applau

d the DEP' s effort s t o proactivel y addres s bot h ne w distribute d generation technolog y an

d a t th e sam e tim e th e urgen t nee d to increas e th

e reliabilit y o f

electri c powe r supplie s i n Massachusetts . The Independen

t Syste mOperato

r fo r Ne w England ("IS O New England " or "ISO") , th

e not-for-profi t

entit y responsible fo r

operatin g New England' s bul k powe r system , ha

s determined tha

t electri c load i n parts o f Massachusett

s coul d excee

d th e capabilit

y o f 1existin g electri c generatin g an d transmissio n resource s i n th e region . Unde

r certain conditions , these existin g resource s ma y no t be abl e to suppl

y th e load withou t overloadin g th

e line s o r reducin g voltage . I n 2002 , th e IS O reported tha

t tw o to fou r time s pe r yea r th e IS O wa

s onl y on e ste p awa y fromsheddin

g 5 0 to 10

0 megawatt

s ("MW" ) o f

load fo r a s man y a s te n hour s a t atime . Th

e Commonwealt

h need s to ac t immediately to ensur

e th e continue d reliabilit y o f powe r supplie s i n Massachusetts . Withou t thi s reliability, Massachusetts ' econom y an d busines s climat

e wil l severel

y suffer . Th e DEP' s intent

to amen d th e definitio n o f

"emergency " to include situation s whe n IS O New Englan

d declare s Actio n 1 2 unde r NEPOO L Operatin g Procedur e 4 ("O P 4" ) "Actio n Durin g A Capacit y Deficiency " or

highe r fo r aspecifie d are

ai s strongly supported . Thi s wil l allo w back-u p generator

s to participat

e i n IS O Ne w England' s 30

- minut e real-tim

e deman d response progra

m(the "emergency " deman d response program) . O

P 4 , Actio n 12 , a

s i t i s referre d to , i s th

e star t o f brownout s wit h th

e nex t ste p bein g involuntar

y interruption s o f

load . Thi s declaratio n i s take n ver y seriously b y th

e ISO . I n fact , eve

n unde r th e extrem e weathe r condition s whic h occurred durin g th e summe r o f 2002 , th e IS O di d no t

declar e O P 4 , Actio n 12 . Othe

r tha n o n Augus t

15 , 2003 , i n response to the majo r powe r failur e tha

t occurred throughou

t th e Northeast , thi s leve l ha s rarel y bee

n declared - i t

i s trul y reserved fo r

emergenc

y situations . Thi s declaratio n shoul d no t

b e confuse d wit h othe r IS O programs tha

t ar e enacte d fo r economic reasons (suc

h a s th e ISO' s pric e response program) . The specifi c language o f O P 4 , Actio n 12 , a

s approve d b y th e NEPOO L Participant s Committee o n Jun

e 26 , 2003 , is : "Implemen

t avoltag e reductio n o f

five percen

t (5% ) o f norma l operatin g voltag e requirin g mor

e tha n 1 0 minute s to implement . Interrup t Real-Tim

e Deman d Respons e - 3 0 Minute s or

Les s Notificatio n (tha

t require s avoltag e reductio n to b e implemented). " W e recommen

d tha t th e DE P use language simila

r t o th e language tha

t the Connecticu

t DE P ha s use d i n it s propose

d amendmen

t t o th e definitio n o f

"emergency. " Thi s proposa l ha s gon e throug h th

e publi c hearin g proces s an d i s expecte

d to b e enacte

d on Januar y 1 , 2005 . Th

e propose d language tha

t the Connecticu

t DE P ha s proposed i n §22a

174-22(a)(4 ) tha

t revise s th

e definitio n o f

"emergency " is : "require s th

e operatio n o f

th e emergenc

y engin e durin g th

e perio d o f

tim e i n whic h th

e New England Regio n Syste mOperato

r begin s voltag e reduction s o

r involuntar

y load interruption s withi n th e Connecticu

t loa d zone. " Thi s amendmen

t doe s no t explicitl y us

e the ter

mO P 4 , Actio n 1 2 becaus e th e Connecticu

t SIPRA C subcommitte

e o f th e DE P tha t drafte d these proposed regulation s wa s concerne

d tha t IS O ma y chang e th e terminolog y i n th

e future . Thus , language wa s use d tha t describe s O

P 4 , Actio n 1 2 instead . I t i s no t unti l O P 4 , Actio n 1 2 tha

t th e IS O ca n implemen

t voltag e reductions . Further , the definitio n doe s no t eve n identif y th e ISO

Ne w Englan

d b y nam

e - but rathe r use s the New Englan

d Regio n Syste

mOperato

r terminolog y instea

d - to accoun

t fo r an y futur e reorganizatio n o r renaming o f

tha t entity . 2

iW

e d o no t believ e th

e language tha

t th e DE P propose s i n it s revision s to 31 0 CM R 7.0 0 i s adequate . Specifically , th e propose d language : "Emergenc

y shal l als o mea

n whe n th e imminent

threa t o f apowe r outage i s likel y du e to failur e o f

th e electrica

l supply or

whe n capacit y deficiencie s resul t i n adeviatio n o f

voltag e fromth

e electrica

l supplie r to th e premise s o f thre e percen t (3% ) abov

e or five percen

t (5% ) belo w standar

d voltage. " shoul d b e replaced wit h th e followin g language tha t combine s th

e Massachusett

s DEP' s proposed language along wit h wha t the Connecticu

t DE P i s using : "Emergency shal l als o mea n whe n th e imminent

threa t o f apowe r outage i s likel y du e t o failur e o f

the electrica

l supply , suc

h a s whe n th e operatio n o f

th e emergenc y engin e i s require d durin g the perio d o f tim e i n whic h the New Englan d Regio n Syste

mOperato

r begin s voltag e reduction s or involuntar

y load interruption s withi n th e Massachusett

s loa d zone. " The modifie d definitio n o f "emergency " shoul d apply to al l ne w an d existin g sources , whethe r they ar e permitte d b y rul e or

b y a n air pla n approval . Al l emergenc y engine s shoul d b e treated consistently . Thus , th e existin g ai r

regulation s fo r

emergenc y engine s a s regulate d b y permi t

b y rul e nee

d to b e amende

d s o tha t th e definitio n o f

"emergency " als o applie s to existin g emergenc y engine s locate d a

t facilitie s wit h existin g air pla n approvals . Thus , th

e modifie d definitio n o f

emergenc y wil l b e consistent ; otherwise , th e DE P wil l hav

e to modif

y ever y ai r pla n approva

l tha t ha s bee n issue d fo r emergenc

y engines . A repor t prepared b y Synaps

e Energy Economics , Inc . fo r th e Environmenta

l Protectio n Agenc y ("EPA" ) entitle d "Results o f Deman d Respons

e Emission s Modeling " b y Geof f Keith , Bruc e Biewald , Davi d Whit e an d Mik e Drunsi c date

d August , 200 3 an

d revise d Septembe r 4 , 2003 , assesse

s th e impact s o f

deman d response ("DR" ) an

d energ y efficienc y program s i n New Englan d usin g a n electri c syste

mdispatch model . A s th e repor t states , "when th

e D R resource i s use

d to mee t reserv e requirements , th

e result i s mor e efficien t

uni t commitment , reduce

d operatio n o f

oil

- an d gas-fire d stea

munit s an

d increase d operatio n o f

combined-cycle unit s i n Ne w England. " Eve n assumin

g al l D R i s fromdiesels , th

e repor t showe d ane t benefi t i n air quality . Thus , b y changing th e definitio n o f

"emergency" , mor

e D R resource s wil l provid e th e necessar

y reserv e capacit y an d regiona l air qualit y shoul d actuall y improve . A s note d i n th

e Synaps e report , "Ne w England ha s asmal l amoun

t o f quick-star

t capacit y relativ e to th

e regiona l pea k loa d compare

d t o mos t othe r contro l areas . Many analyst s hav e note d tha

t thi s require s larg e powe r plant s to operat

e mor e tha n they woul d otherwis e hav

e t o i n orde

r to maintai n sufficien t

operatin g reserve s - capacit y tha t ca n b e provide d quickl y i n response to unplanned losse s o f capacity . A key goa

l o f thi s wor k fo r EP A wa s t o verif y tha t larg e unit s wer

e indeed bein g operate

d mor e tha n necessar

y i n Ne w England t o mee

t reserv e requirements , t o gaug

e th e probable emissio n impact s o f thi s dynamic , an

d to estimat

e potentia

l emissio n reduction s tha t additiona

l D R coul d provid e i f i t wer e use d to mee t operating reserv

e requirements. "

3W

e ar e supportiv e o f

th e Department' s effort s to foste r the developmen

t o f improve d combustion an

d pollutio n contro l technologie s tha t woul d lowe

r emission s o f

ai r pollutant s an

d improv e air

quality i n th

e Commonwealth . However , the ensuin g requirements canno

t b e s o stringen

t tha t th e Commonwealth' s state

d goal s o f

promotin g ne w technologies , increasin g th e availability o f

renewabl e energy , ensuring th

e reliabilit y o f th e electrica

l supply system , an

d improvin g environmenta l qualit y ar e no t realized . W e ar e hopefu l tha

t th e Departmen

t wil l giv e furthe r

consideratio n t o it s proposal . W e ar e confiden

t tha t throug h suc

h adeliberativ e proces s th e appropriat

e balanc e tha

t i s neede d i n thi s instanc e ca

n b e realize d to th

e ultimate benefi t

o f th e environmen

t an d th e regulated communit

y alike . Than

k yo u i n advanc

e fo r you r consideratio n o f

ou r comments .

4