Summary of Teleconference with EnerNOC 

Regarding the Stationary Existing RICE NESHAP 

March 30, 2010 

Attendees 

Peter Tsirigotis, EPA Ken Schisler, EnerNOC 

Bob Wayland, EPA Rick Counihan, EnerNOC 

Melanie King, EPA 

Michael Horowitz, EPA 

Jenny Craig, EPA 

Don DiCristofaro, Blue Sky Environmental 

David Friedland, Beveridge & Diamond 

 

Summary of Meeting

EnerNOC requested this teleconference with EPA to discuss the final NESHAP for 

existing stationary compression ignition engines. A copy of a presentation and supporting 

documentation proved by EnerNOC is included as Attachment 1. The focus of the 

teleconference was on engines used in demand response programs. EnerNOC provided 

information on the ISO/RTO tariff requirements for the hours of operation in emergency demand 

response and recommended that EPA allow up to 60 hours for demand response operation in 

order to allow engines to participate in the emergency demand response programs. 
Attachment 1 
NESHAPS Emergency Demand Response

Ken Schisler, Rick Counihan, Don DiCristofaro

March 30, 2010
Agenda

• EPA Appropriately Included Emergency Demand Response (DR) 

Programs in RICE NESHAPS, Subpart ZZZZ

• Problem Statement: 15 Hour Limit Will Prevent Engines From 

Participating in Emergency DR 

• Minimum Required Availability by ISO Tariffs for Participation in 

Emergency DR Programs

• Emergency DR Program Tariffs

– PJM

– ERCOT

– ISO New England

• How Can EPA Be Assured of Limited Emergency DR Use?

• EPA Justification for 15 Hour Limit

• EPA Misinterpretation of DRSP Comments

• Greenhouse Gases Regulations’ Definition of Emergency Generator

• Our Recommendation Regarding an Hour per Year Limit for Emergency 

DR

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EPA Appropriately Included Emergency 

Demand Response (DR) Programs in RICE 

NESHAPS, Subpart ZZZZ

We applaud the EPA for listening to EnerNOC’s concerns and including a 

definition of emergency demand response in the NESHAPS final regulation:

“...owners and operators may operate the emergency engine for a maximum 

of 15 hours per year as part of a demand response program if the regional 

transmission organization or equivalent balancing authority and transmission 

operator has determine there are emergency conditions that could lead to a 

potential electrical blackout, such as unusually low frequency, equipment 

overload, capacity or energy deficiency, or unacceptable voltage level”

40 CFR 63.6640(f)(4)

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Problem Statement: 15 Hour Limit Will Prevent 

Engines From Participating in Emergency DR 

• Emergency engines will be prevented from participating in emergency 

demand response programs since they will not be able to meet tariff 

requirements that specify minimum hours of availability to participate. 

• Engines then would have to be treated as non-emergency engines in the 

NESHAPS in order to meet the > 15 hour tariff requirements

• Many sites will drop out of the program due to the non-emergency 

NESHAPS requirements rather than fund upgrades.

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Required Availability By ISO Tariffs for 

Participation in Emergency DR Programs

• PJM: 60 hours per year

• ERCOT: 24 hours per year

• ISO-NE: No hour limit

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Emergency DR Program Tariffs - Overview

• PJM Emergency Load Response Program (ELRP)

– Program timeframe: June 1 – September 30, non-holiday weekdays

– Program duration: Up to 6 hours per event, required to perform in first 10 events 

called by PJM (60 hours per year)

– Called just prior to brownout 

• Texas Emergency Interruptible Load Service (EILS)

– Program timeframe: January 1 – December 31, 24/7

– Program duration: Maximum 6 dispatches and 24 hours per year

– Called just prior to brownout, next action is forced load shedding

• ISO New England Operating Procedure (OP) 4, Action 12

– Program timeframe: January 1 – December 31, business days (excluding national 

holidays) between 7 am and 7 pm

– Program duration: No hourly limits, no maximum hours per year

– Called coincident with initial brownout

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PJM Emergency DR • Dispatched after Maximum 

Emergency Generation

• Maximum Emergency 

Generation is beyond the 

normal limits of operation for a 

power plant

• System is designed to avoid 

running at Maximum 

Emergency Generation 

because of serious risk of 

damage to power plants

• After Maximum Emergency 

Generation, there is literally 

nothing left to prevent 

brownouts/blackouts except 

Emergency Demand Response

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PJM Emergency DR Tariff

• Emergency generators cannot make the required representation in the tariff if

there is a 15 hour per year limit because pursuant to PJM Reliability Assurance 

Agreement (Rate Schedule FERC No. 44, Sheet 33):

- Performance is required for up to 10 dispatches.

- Up to 6 hours per event.

Emergency generators can no longer meet the 60 hour limit under final rule.

8
PJM Emergency DR Tariff (Continued)

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ERCOT EILS Tariff

6.5.12 (15) An EILS Resource shall be subject to a maximum of two (2) 

Dispatch Instructions per EILS Contract Period. Additionally, an EILS 

Resource shall be subject to a maximum of eight (8) hours of Dispatch 

Instructions per EILS Contract Period, unless an EILS deployment is still in 

effect when the eighth hour lapses (in which case the EILS Resource must 

follow the Dispatch Instruction until ERCOT releases the EILS Resource).

Source: ERCOT Protocols Section 6: Ancillary Services

Maximum 6 dispatches; 8 hours of 

dispatch; 3 contract periods per year; 

and 24 hours per year

Emergency generators can no 

longer meet this requirement under

final rule.

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ISO-NE Emergency DR

• Generators participating as Emergency 

DR are called coincident with 5% 

voltage reduction (brownout) – Action 

12

• Emergency DR called only after all 

other available generation resources 

are exhausted – Actions 10 and 11

• After Action 12, the next steps are:

Further voltage reduction (brownout)

Request all non-contracted customer 

generation and curtailments

Radio & TV Power Warning appeals to 

reduce load

Alert Governors to reinforce Power 

Warning appeals to reduce load

Involuntary load shedding (blackout)

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ISO New England Emergency Generation Tariff

From ISO Operating Procedure 4:

ACTION 12 ...Implement a voltage reduction of five percent (5%) of normal operating 

voltage requiring more than 10 minutes to implement. Interrupt Real-Time Demand 

Response – 30 Minutes or Less Notification (that requires a voltage reduction to be 

implemented). 

From ISO NEW ENGLAND INC. TRANSMISSION, MARKETS AND SERVICES TARIFF FERC 

ELECTRIC TARIFF NO. 3, effective Feb 1, 2005:

Real-Time Emergency Generation Resource is Distributed Generation whose Federal, 

State and/or local air quality permits limit operation in response to requests from the ISO to 

the times when the ISO implements voltage reductions of five percent of normal operating 

voltage that require more than 10 minutes to implement. A Real-Time Emergency 

Generation Resource must be capable of: (i) curtailing its end-use electric consumption 

from the New England grid within 30 minutes of receiving a Dispatch Instruction; and (ii) 

continuing that curtailment until receiving a Dispatch Instruction to restore consumption

Real-Time Emergency Generation Event Hours means those hours, or portions thereof, 

between 7 a.m. and 7 p.m. Monday through Friday, non-Demand Response Holidays in 

which the ISO dispatches Real-Time Emergency Generation Resources to curtail electric 

consumption....

Emergency generators can no longer meet this requirement under final rule.

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How Can EPA Be Assured of Limited 

Emergency DR Use?

• The main defense against unrestricted use of generators in emergency 

demand response programs is the strict NERC/ISO tariffs/rules that these 

programs can only be triggered in response to very serious emergency 

conditions.

• As a result, historical data indicates these programs are rarely called upon.

• But given the tariff requirements discussed earlier, we request that EPA 

change the 15 hour limit to 60 hours to maintain a bottom line backstop, 

while still affording system operators flexibility to respond to rare extended 

emergencies.

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EPA Justification for 15 Hour Limit

“As discussed in the response to comment 6.1.1, EPA believes that it would be 

appropriate to allow engines to retain their status as emergency engines under 

subpart ZZZZ if they operate as part of demand response programs for 15 

hours of operation per year or less in situations where grid failure and a 

blackout are imminent. The commenter’s information indicates that no 

engine has needed more than 15 hours of operation per year to meet their 

requirements under their demand response programs. This alleviates the 

concerns expressed by the commenter.” [emphasis added] (Responses to 

Comments Section 13.5.2, at page 309)

Nothing in Commenter 85’s letter (DRSP Coalition) supports the EPA

justification.

Commenter 85’s letter stated that emergency demand response was

dispatched in New York between 0 and 40 hours per year over an 8 year

history to address system emergencies, with an average of 16 hours/per

year.

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EPA Misinterpretation of DRSP Comments

• EPA misinterpreted the comments in support of a 15 hour limit. 

• DRSP did not endorse a 15 hour limit.

• The data presented by the DRSP Coalition shows that a 15 hour limit would 

have been exceeded by the number of hours the program was called in five 

of the eight years the program has been in existence.

• CPower Inc. concurs that their comments were misinterpreted (see Binder, 

end of Tab 8):

“While we are pleased that the EPA in its final rule has recognized the 

importance of allowing emergency engines to operate in demand response 

programs, we believe the EPA unfortunately has improperly interpreted our 

comments as described in Reference 2, and are using this interpretation as 

justification of the 15-hour limit in the Final Rule.”

“We submit that nothing in the Reference 1 DRSP Coalition comments supports 

the EPA justification for the 15 hour cap. DRSP did not, and does not now, 

endorse a 15 hour limit.”

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Greenhouse Gases Regulations’ Definition of 

Emergency Generator

An emergency generator operates only during emergency situations, for 

training of personnel under simulated emergency conditions, as part of 

emergency demand response procedures, or for standard performance 

testing procedures as required by law or by the generator manufacturer. A 

generator that serves as a back-up power source under conditions of load 

shedding, peak shaving, power interruptions pursuant to an interruptible 

power service agreement, or scheduled facility maintenance shall not be 

considered an emergency generator.

Source: 40 CFR 98.6

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Our Recommendation Regarding an Hour Per 

Year Limit for Emergency DR

• Maximum 60 hour limit for emergency demand response

• 60 hour limit will meet PJM and ERCOT tariff requirements on availability

• We believe 60 hour limit will allow us to maintain eligibility in ISO NE

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Don DiCristofaro

101 Federal Street

Suite 1100

Boston, MA 02110

Tel: 617.834.8408

Email: 

ddicristofaro@enernoc.com

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