November 16, 2010

The Honorable Lisa Jackson Administrator United States Environmental Protection Agency Ariel Rios Building (Mail Code 1101) 1200 Pennsylvania Ave., NW Washington, D.C. 20460 Re: Petition for Reconsideration of Portions of the Final Rule: National Emission Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines Dear Administrator Jackson: I am writing in support of the National Rural Electric Cooperative Association’s (NRECA) October 19, 2020, Pe tition for Reconsideration of portions of the Final National Emission Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines promulgated on August 20, 2010, ( 75 Fed. Reg. 51,570). Heartland Power consumer- owners would suffer hardships because of the cost of higher cost energy and the low hog, chicken, cattle markets and unemployment in our service area with the price of upgrading their generator s to meet the higher standards. Heartland Power was not aware of the RICE NESHAP rule until recently due to EPA’s extended and sporadic rulemaking process which has fostered confusion within the regulated community, particularly in regard to owners and operators of small emergency generating units participating in peak prog rams. Futhermore, there remain inconsistencies in the rules regarding how certain RICE are to be regulated. For example, in EPA’s final rule for spark ignition (“SI”) RICE, the Agency finalized a subcategory of nonemergency RICE that operate 24 hours or less per year at area sources. NRECA’s petition addresses restrictions contained in the final rule that prohibit the use of small emergency generating units for peak shaving programs and limits demand reduction service beginning in 2013 without the ad dition of expensive emission reduction technology on units larger than a specified size. The majority of the small stationary SI and CI engines are not owned by the cooperative, but rather by the consumer

- owners ; therefore we have no control over their expenditure of capital cost for controls in order to continue the program. While peak

- shaving programs do not generate income for the distribution cooperative, they do produce economic benefits by reducing the level of demand on their electric power suppliers, resulting in reduced demand costs. These reduced costs, in turn, are shared with our members (the owners) ofthese small emergency generating units that participate in peak shaving programs. This is a win

arrangement that helps hold down power costs for the owners of these generators as well as for Heartland Power’s other consumer - owners. Reduced cost of electrical energy is a very important consideration during this time of national economic strain and is of particular importance to Heartland Power and other rural electric cooperatives since our members are some of the mo st economically depressed areas in the nation. To help offset the cost of these units Heartland Power uses them in peak shaving and demand reduction programs. Without the benefits of these programs, Heartland Power may be forced to discontinue this servi ce. In that event, these facilities will be forced to purchase their own units with the cost borne by the residents of Heartland Power member

- consumers and our area of the country is already severely economically depressed. Another restriction contained in the final RICE NESHAP rules is in regard to the limitation of 15 hours

per - year for demand reduction purposes. The final rule restrictions may prevent emergency engines from continued participation in emergency demand reduction programs since the engin es may no longer be able to meet Independent System Operator tariff requirements that specify minimum hours of availability to participate. The result again would be higher costs, the need for replacement capacity, and a potentially less reliable electric grid system that depends upon central station versus distributed generation. Heartland supports EPA’s efforts to protect the public health and the environment from harm caused by the presence of toxic air pollutants. Heartland Power is very concerned, h owever, that the Agency has included unnecessary restrictions in this NESHAP rule that will cause economic harm across rural America without providing any meaningful environmental benefit. In light of the minimal environmental effects but significant be nefit from having these small stationary emergency units available Heartland Power requests that EPA reconsider the provisions of the final RICE NESHAP rules that restrict the operation of these emergency units for peak

- shaving and demand reduction program s. Heartland Power believes the restrictions on the use of small stationary compression ignition and spark ignition RICE emergency generating units for peak

- shaving and demand reduction purposes should be eliminated. Alternatively, the restrictions sho uld be minimized so as to not diminish the value of these programs. Heartland Power suggests that one way that EPA could address this issue for SI RICE is to revise 63.6640 in its August 20, 2010, final rule by simply removing the restrictions on peak s having and demand reduction service, and the 50 hour limitation on non

- emergency service. This change would not result in any additional run

-time above the 100 hours of operation that is already provided for in the rule. In other words, the change would allow owners/operators of small stationary emergency generating units to use their units without restriction up to 100 hours

- per - year for non

- emergency operation in ways that best meet their particular circumstances and needs. All hours of operation for m aintenance, testing, peak shaving, demand reduction, and all other non

- emergency operation would be at the owner/operators discretion

– but not to exceed 100 hours

- per - year. Owners/operators with special circumstances that require additional operating hou rs could petition the Agency for additional hours of non - emergency operation on a case

- by

- case basis. Upon adequate justification, the additional hours would not be unreasonably denied by the Agency.By revising the final SI RICE NESHAP rules in this m anner would not, and must not, detract in any way

from the unlimited hours of operation needed for true emergency service. Heartland Power also believes it is necessary and urges EPA to amend the March 2010 CI RICE NESHAP final rule and the July 2006 NS PS rule with conforming changes so all applicable rules are clear and consistent. Please contact Ron Gasteiger, Manager of Members Services of Heartland Power in the event you have any additional questions at 641

- 713

-4965. Thank you for your considerat ion of our request and we hope you will respond favorably to our request. Cordially,
Ron Gasteiger Manager of Member Services 216 Jackson Street PO Box 65 Heartland Power Cooperative Thompson/St. Ansgar, Iowa
CC: Robert Wayland Melanie King Kevin Bromberg, SBA