## Department of Environmental Conservation

DIVISION OF AIR QUALITY D irector ’ s Office

410 Willoughby Avenue, Suite 303 PO Box 111800 Juneau, AK 99811

- 1800 Main: 907

- 465

- 5100 Toll free: 866

- 241

- 2805 fax: 907

- 465

- 5129 http://dec.alaska.gov/air/index.htm CERTIFIED MAIL: 7014 0510 0001 9932 7852 Return Receipt Requested

Novem ber 28 , 2014

Janet McCabe U

. S

. EPA Headquarters William Jefferson Clinton Building 1200 Pennsylvania Avenue, N. W. Mail Code: 6101A Washington, DC 20460

Subject: L anguage in 40 C

. F

. R . 60 and 40 C.F.R. 63

, exemptions for sources in r ural a rea s of Alaska

Dear Ms

. McC abe :
The Alaska Department of Environmental Conservation (ADEC) appreciat es the opportunity to bring a regulatory contradiction issue to EPA’s attention

. ADEC finds that there are inconsistencies between the exemptions for sources located in rural areas of Alaska for Compression Ignition (CI) Internal Combustion Engines (ICE) found in 40 C.F.R. 60 Subpart IIII and for Stationary Reciprocating Internal Combustion Engines (stationary RICE) found in 40 C.F.R. 63 Subpart ZZZZ.

ADEC respectf ully request s that EPA review options for administrative correct ion or other available procedures to correct the exemption language for sources in rural areas of Alaska in 40 C.F.R. 60 Subpart IIII to be the same as the exemption language in 40 C.F.R. 63 Subpart ZZZZ. In this administrative correction request, ADEC requests that EPA add the exemption language found in 40 C.F.R. 63 Subpart ZZZZ at § 63.6603(b)(2) to 40 C.F.R. 60 Subpart IIII at § 60.4201 (f) , § 60.4202 (g) , and § 60.4216 (a

- f). ADEC is not requesting that any other aspect of 40 CFR 60 Subpart IIII be considered for revision.

The exemption for sources in rural areas of Alaska in 40 C.F.R. 60 Subpart IIII remains tied to the FAHS (Federal A id Highway System)

, whereas the exemption in 40 C.F .R. 63 subpart ZZZZ has been expanded to include sources
connect ed to the FAHS solely through the Alaska Marine Highway System ( AMHS) or those isolat ed from the Alaska Railbelt Grid. As a result, many isolated Alaskan communities are currently caught between the two definitions of “rural ”

. This ha s resulted in confusion and unintended consequences for CI ICE and stationary RICE

sources subject to regulations in both 40 C.F.R. 60 Subpart IIII and 40 C.F.R. 63 Subpart ZZZZ

.

EPA currently recognizes that rural areas of Alaska

, as exempted in 40 C

. F

. R

. 63 Subpart ZZZZ

, are compliant with the CI ICE emission standards through Generally Achievable Control Technology ( GACT ) management practices

. EPA further acknowledges that it is impractical for those s ources in rural areas of Alaska to employ MACT standards

. Therefore

, the exemption inconsistency could result in some remote A laskan utilities delaying or



### Clean AirJanet McCabe November 28, 2014 U.S. EPA Headquarters

cc: Dennis McLerran, EPA Region 10/Regional Administrator Kate Kelly, EP A , Region 10 Dave Bray, EPA Region 10 Heather Valdez, EPA Region 10 Larry Hartig , ADEC/ Commissioner Lynn Kent, ADEC/Deputy Commissioner John Kuterbach, ADEC/APP Manager Sara F isher

- Goad, AEA/Executive Director

Page 3 of 3**AL AS**  **KA POWER & TELEPHONE COMPA**  **NY PORT TOWNSEND, W**  **A 98368 (360) 385** 

**- 1733** 

**– (800) 982** 

**- 0136**  **FAX (360) 385**

**- 5177** 

Alaska Power Company • Alaska Telephone Company • AP&T Wireless, Inc. • AP&T Long Distance, Inc North Country Telephone, Inc. • Bettles Telephone, Inc. • Goat Lake Hydro, Inc. • BBL Hydro, Inc. August 6, 2012

Air and Radiation Docket and I nformation Center Environmental Protection Agency Mail Code: 6102T 1200 Pennsy

lvania Avenue NW Washington, DC 20460

**Subject: Docket ID**  **No. EPA**

**- HQ** 

**- OAR** 

**- 2008** 

**- 0708**  **Proposed Rule for National Emissions Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines** 

To whom it may

concern,

Thank you for the opportunity t o comment on the proposed reconsideration of the National Emission Standards for Hazardous Air Pollutants (NESHAP) for Reciprocating Internal Combustion Engines (RICE), published in the Federal Register on June 7, 2012. A laska Power & Telephone (AP&T) appreciates the proposed amendments made to the definition of remote areas of Alaska within the language of 40 CFR Part 63, Subpart ZZZZ.

AP&T is a regulated power and telephone utility serving 23 electricall y isolated communities in rural Alaska. These communities are located above the Arctic Circl e, deep in the Wrangell Mountains and throughout the islands of Southeast Alaska. Small diesel generators operate 24 hours per day , 365 day s per y ear to supply power for these communities except those that have small h ydro projects which require diesel sta ndby generators as well. Some of these small diesel plants are located on the FAHS and AP&T believes that implementing the Subpart ZZZZ regulation will place undue economic burden on these communities with no appreciable benefit.

AP&T supports the Envi ronmental Protection Agency (EPA) proposal to better clarify t he definition of “remote areas of Alaska” by r emoving reference to the Federal Aid Highway Sy stem (FAHS). E PA correctl y recognizes that areas accessible by t he FAHS but not connected to the Ala ska Railbelt Grid face the same unique challenges as those areas not accessible by

the FAHS, including accessibility issues, low population density , severe weather conditions, high energy costs, and isolated micro

- grids. Page 2 August 10, 2012

Alaska Power Company • Alaska Telephone Company • AP&T Wireless, Inc. • AP&T Long Distance, Inc North Country Telephone, Inc. • Bettles Telephone, Inc. • Goat Lake Hydro, Inc. • BBL Hydro, Inc. As for the specific criteria pro posed for the revised definition of “remote areas of Alaska,” Alaska Power & Telephone agrees that it is appropriate to only consider engines not connected to the Alaska Railbelt Grid, and that at least 10% of the power generated by these engine s per y ear should be used for residential purposes. These two criteria reflect a reasonable approach to adequatel y describe the type of Alaska communities and electrical sy stems that serve remote residential populations where the impact of even higher energy

costs i s a great concern. Further, Alaska Power & Telephone strongly believes a single definition is needed for “remote areas of Alaska” for both RICE NESHAP and NPS

. Wh ile the proposed RICE NESHAP definition for remote areas of Alaska will benefit many road (and some marine highway) connected

c ommunities/facilities with RICE NESHAP engines, once these areas either reconstruct an existing RICE, or install model year 2014 or later diesel engines, they will be subject to the full final NSPS Tier 4 emissions requ irements, which currently require exhaust oxidation catalysts, particulate filters and SCR urea injection systems. These systems are not viable or sustainable in small, isolated grid communities.

A single definition is needed for "remote areas of Alaska" for both RICE NESHAP and NSPS, otherwise, as remote road connected utilities transition from RICE NESHAP to NSPS engines, these engines will be subject to the full NSPS final Tier 4 requirements and will not be eligible for the regulatory relief pr ovided under the current NSPS definition of "remote areas of Alaska", which is limited to areas "not accessible to the Federal Aid Highway system"

Thank y ou for considering the unique circumstances of Alaska’s rural communities.

Sincerely

,

Robert S. Grimm President

cc: Melanie King, EPA Energy Strategies Group (D243

- 01) Heather Valdez, EPA Region 10 (AWT

- 107) Senator L isa Murkowski, US Senate Senator Mark Begich, US Senate Representative Don Young, US House of RepresentativesAugust 8, 2012

Air and Radiation Docket and Information Center Environmental Protection Agency Mailcode: 6102T 1200 Pennsylvania Ave., NW. Washington , DC 20460.

Subject: Docket ID No. EPA

– HQ

– OAR

– 2008

– 0708: National Emission Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines; New Source Standards for Stationary Internal Combustion Engines. Proposed Rule

Yakutat Pow er supports the comments provided to the EPA request ing clarification, support ing the proposed RICE NESHAP amendment expanding the definition of “remote areas of Alaska”, and request ing the expansion of the current NSPS definition of “remote areas of Alask a” to align with the proposed RICE NESHAP definition.

Additionally, Yakutat Power requests that EPA provide regulatory relief to owners and operators of model year 2006 RICE engines that were manufactured after April 1, 2006 that do not meet Tier 1 NSPS r equirements. Utilities, and other owner and operators, in good faith ordered non

Tier, model year 2006 engines that, due to unprecedented world demand created by worldwide natural disasters, were delayed up to a year and not manufactured until after the Ap ril 1, 2006 NSPS deadline for complying with Tier 1 emissions requirements.

40 CFR 60.4210(c)(2)(iii) states that CI ICE engines manufactured after April 1, 2006 that do not meet Tier 1 requirements may not be used in the U.S. (This is an engine Manufact urers requirement). However, 40 CFR 60.4200 stipulates that the NSPS requirements only apply to Manufacturers of stationary CI ICE with displacement less than 30 liters per cylinder where the model year is 2007 or later

. 40 CFR 60.4200(a)(2) states that Owners and operators of stationary CI ICE that commence construction after July 11, 2005, where the stationary CI ICE are manufactured after April 1, 2006 are subject to the NSPS rule.

40 CFR 60.4204(a) states that Owners and operators of pre

- 2007 model y ear non

- emergency stationary CI ICE with a displacement of less than 10 liters per cylinder must comply with the emission standards in table 1 to this subpart (which are Tier 1 emissions requirements).

Therefore, a Manufacturer was permitted after April 1 , 2006 to manufacture a model year 2006 engine that is not labeled and does not comply with NSPS emissions requirements, BUT the owner or operator of that same engine is subject to NSPS Tier 1 emissions requirements.This has to be an unintended oversi ght on the part of the EPA. The intent of the NSPS rule puts

the burden of emissions compliance on the engine manufacturer and requires engine manufacturers to certify and label 2007 and later stationary engines, while the owner/operator complies by operat ing and maintaining the certified engine in accordance with the manufacturer’s requirements.

Allowing engine manufacturers, unbeknownst to the owner/operator, to manufacture and deliver an engine not certified and labeled in compliance with NSPS requirem ents, yet requiring the owner/operator to comply with the NSPS emission requirements, is unjust.

Yakutat Power requests that EPA waive applicability of the NSPS requirements to this small class of model year 2006 engines, and clarifies that these engines are subject to RICE NESHAP rule and not the NSPS rule.

Sincerely,

Scott Newlun General Manager

cc: Melanie King, EPA Energy Strategies Group (D243

- 01) Heather Valdez, EPA Region 10 (AWT

- 107) Senator Lisa Murkowski, US Senate Senator Mark Begich, US Senate Representative Don Young, US House of Representatives