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5.2. ERMUSR 08-09-2011
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5.2. ERMUSR 08-09-2011
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8/5/2011 4:11:48 PM
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City Government
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ERMUSR
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8/9/2011
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OPTIONS FOR ERMU <br />Option I - No Change <br />Under the NESHAP-RICE Regulations, as currently proposed, Elk River Municipal Utilities <br />(ERMU) could continue its present operation until May 3, 2013. After that date, ERMU's <br />diesels will be subject to the new regulations, which allow up to 100 hours/year far <br />maintenance and readiness testing, but not for financial benefit, such as peak shaving, if <br />part of an Emergency Demand Response (EDR) program. <br />The current version of the regulations allow the non-complying unit to be designated as <br />an Emergency Unit, to allow operating 15 hours per year, during defined emergency <br />times, but the 15 hours must count towards the above mentioned 100 hours. The <br />IAMU, MMUA, and CMMPA have filed comments tothe-Environmental Protection <br />Agency (EPA) requesting that the Emergency Units be allowed to operate, beyond <br />readiness testing, up to 100 hours per year, while allowing financial credits from the <br />designated unit, for diesels subject to an EDR program. It is unknown what the EPA's <br />response will be or how soon a decision will be made on this request. One industry <br />observer speculated that the EPA might finalize on 60 hours within the next year, <br />although at least one State (Delaware) is asking that this be reduced to 0 hours. <br />If all of ERMU's diesels become Emergency Units, they could be run if there was an <br />outage on the interconnection. However, under the proposed regulations, ERMU could <br />not continue to receive capacity credits without emissions controls. If EPA revises the <br />present regulations to requested levels of 100 hours, or even 60 hours, then ERMU <br />could continue its present operation, without emissions controls, even it were in an EDR <br />program. In order to become Emergency Units, the ERMU diesels would need to adopt <br />certain maintenance features, discussed later in this Study. <br />11 <br />
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