[Federal Register Volume 62, Number 125 (Monday, June 30, 1997)]
[Proposed Rules]
[Pages 35113-35114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17031]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 69
[FRL-5850-5]
Special Exemptions From Requirements of the Clean Air Act for the
Territory of Guam
AGENCY: Environmental Protection Agency (``EPA'').
ACTION: Notice of proposed rulemaking.
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SUMMARY: On February 11, 1997, the Governor of Guam submitted a
petition (``Petition'') to the Administrator of EPA seeking a waiver of
certain Clean Air Act (``CAA'') requirements which apply to two
baseload diesel electric generators to be located at the Piti Power
Plant on Guam. The Petition was submitted pursuant to section 325(a) of
the CAA. The waiver will help to ease a serious and ongoing energy
emergency on Guam. Based upon the information in the Petition, EPA is
proposing to grant the waiver requested.
The waiver allows two 45 megawatt baseload slow speed diesel
electric generators and associated waste heat recovery boilers with a
steam generator to be constructed, but not operated, at the Piti Power
Plant prior to the receipt of a final Prevention of Significant
Deterioration permit. Comments on this proposed rulemaking action may
be made to the EPA as described below.
DATES: Comments on this proposed rulemaking action must be received on
or before July 30, 1997.
ADDRESSES: Comments may be mailed to: Norman Lovelace, Chief, Insular
Area Program, Cross Media Division (CMD-5), U.S. Environmental
Protection Agency, Region IX 75 Hawthorne Street, San Francisco, CA
94105.
FOR FURTHER INFORMATION CONTACT: Norman Lovelace, Chief, Insular Area
Program, Cross Media Division (CMD-5), U.S. Environmental Protection
Agency, Region IX, 75 Hawthorne Street, San Francisco, California
94105. Telephone: (415) 744-1599.
SUPPLEMENTARY INFORMATION:
Background
Via a letter dated February 11, 1997, Governor Gutierrez of Guam
submitted a petition (``Petition'') to the Administrator of EPA. The
Petition seeks a waiver of certain Clean Air Act (``CAA'') requirements
for the construction of two 45 megawatt baseload slow speed diesel
electric generators and associated waste heat recovery boilers with a
steam generator. These units will be part of the Piti Power Plant. The
units will be designated as Piti Units No. 8 and No. 9.
The waiver application seeks to allow construction of Piti Units
No. 8 and No. 9 prior to receipt of a Prevention of Significant
Deterioration (``PSD'') permit. Neither of these Piti Units will
operate prior to receipt of a final PSD permit.
Guam has experienced a longstanding shortage of electrical energy,
repeatedly leading to rotating blackouts in areas of the Island. The
background to this energy shortage is described in a previous waiver
proceeding before EPA in 1993. 50 FR 15579, 15580. The Petition
describes how the 1993 energy shortage has continued despite a
substantial capital development program by the Guam Power Authority
(``GPA''). The energy shortage was created originally because of very
rapid growth in energy demand due to increased residential electrical
consumption and a boom in tourism. The Petition describes how energy
shortfalls are now exacerbated as a result of substantial facility
outages caused by equipment failures and a continued growth in demand.
As EPA noted in the 1993 waiver proceeding, Guam is an isolated
island. 58 FR 13580. GPA currently generates all commercial electric
power used on the Island. Unlike power authorities on the mainland
United States, GPA does not have the option of purchasing power from
outside the Island. Guam is, and must remain, self sufficient with
regard to electric power generation.
The Petition states that Guam's electric power shortfall has
continued because of facility outages caused by
[[Page 35114]]
planned and unplanned maintenance requirements. The longstanding nature
of the electric power shortage has required GPA to use its existing
facilities at peak capacity for several years. GPA has also deferred
planned maintenance, when safety considerations have allowed, to permit
units to remain in service. Because of the length of time which has
elapsed since the beginning of the emergency, the result is now
substantially reduced reliability of GPA's electric generating units.
The Petition also describes how Guam's Legislature and Guam's
Governor have actively become involved to find a solution to the
continued energy crisis. In June 1996, the Legislature enacted special
procurement legislation to allow the rapid purchase of new generating
equipment. In response to the recommendation of a blue ribbon task
force, the Governor issued an executive order in August 1996, directing
GPA to oversee the repair of existing units, the construction of new
units, and the operation of electric generating facilities by
independent power producers. Piti Units No. 8 and No. 9 are a part of
this effort, and will provide electricity to be distributed by GPA.
The construction and operation of additional, reliable baseload
generating units will enable GPA to satisfy electrical demand with an
appropriate margin of safety, while at the same time allowing for
planned maintenance outages of generating units. Once sufficient
baseload capacity exists and can be operated, unplanned blackouts on
the Island will be ended. Piti Units No. 8 and No. 9, which are to
provide electric power under contract to GPA, are such baseload units.
Construction of the units prior to the issuance of PSD permits will
allow the units to become available in a much more expeditious time
frame. It is anticipated that final PSD permits can and will be issued
prior to completion of construction of Piti Units No. 8 and No. 9.
Section 325(a) of the CAA allows a waiver of certain CAA
requirements, based upon local factors, only if the waiver will not
cause exceedences of any primary national ambient air quality standard
(``NAAQS'') or violations of the hazardous air pollutant provisions of
the CAA. The hazardous air pollutant provisions of the CAA are not
affected by the Petition. The 1993 waiver proceeding and a subsequent
1995 waiver proceeding included air quality analyses, utilizing
computer modeling, which demonstrated that all NAAQS would be
protected. Data submitted to the EPA pursuant to the prior waiver
proceedings indicates that all NAAQS continue to be adequately
protected.
The Petition currently before the EPA is limited to the
construction of Piti Units No. 8 and No. 9 prior to the issuance of PSD
permits, and hence will not result in the increase of any air
contaminant. Prior to the issuance of any PSD permit, the PSD
permitting process will require, among other things, assurances that
operation of Piti Units No. 8 and No. 9 will not lead to exceedences of
any NAAQS.
The Cabras and Piti Power Plants operate under an intermittent
control strategy which utilizes fuel switching. This intermittent
control strategy is described in an EPA document entitled the ``Cabras
Area ICS.'' This strategy, which was modified pursuant to the 1995
waiver proceeding, has required the use of fuel oil with a maximum
sulfur content of 1.19 percent when winds blow in an onshore direction,
and the use of fuel oil with a maximum sulfur content of 2.00 percent
when winds blow in an offshore direction. If EPA issues the waiver
requested in the Petition in a final rulemaking action, the Cabras Area
ICS will be modified to require fuel switching at Piti Units No. 8 and
No. 9 when operation of those units is commenced.
Guam Environmental Protection Agency has received and reviewed a
copy of the Petition. It supports this proposed rulemaking and the
issuance of a waiver.
Regulatory Analysis
Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA
must prepare a Regulatory Flexibility Analysis assessing the impact of
any proposed or final rule on small entities. 5 U.S.C. 603 and 604.
Alternatively, EPA may certify that the rule will not have a
significant economic impact on a substantial number of small entities.
Small entities include small businesses, small not-for-profit
enterprises, and government entities with jurisdiction over populations
of less than 50,000.
This proposed rule applies only to two large sources of air
emissions used to generate electrical power on Guam. These sources of
electrical power will be constructed by an independent power producer
which is not a small entity. Therefore, EPA certifies that this
rulemaking will not have an impact on small entities.
This action has been classified as a Table 3 action for signature
by the Administrator under the procedures published in the Federal
Register on January 19, 1989 (54 FR 2214-2225). The Office of
Management and Budget has exempted this regulatory action from
Executive Order 12866 review.
List of Subjects in 40 CFR Part 69
Environmental protection, Air pollution control.
Dated: June 24, 1997.
Carol Browner,
Administrator.
Part 69 of chapter I, title 40 of the Code of Federal Regulations
is proposed to be amended as follows:
PART 69--[AMENDED]
1. The authority citation for part 69 continues to read as follows:
Authority: Section 325, Clean Air Act, as amended (42 U.S.C.
7625-1)
2. Section 69.11 is amended by adding paragraph (d) to read as
follows:
Sec. 69.11 New exemptions.
* * * * *
(d) Pursuant to Section 325(a) of the CAA and a petition submitted
by the Governor of Guam on February 11, 1997 (``1997 Petition''), the
Administrator of EPA conditionally exempts Piti Power Plant Units No. 8
and No. 9 from certain CAA requirements.
(1) A waiver of the requirement to obtain a PSD permit prior to
construction is granted for the electric generating units identified in
the 1997 Petition as Piti Units No. 8 and No. 9 (two 45 megawatt
baseload diesel electric generators and associated waste heat recovery
boilers with a steam generator), with the following conditions:
(i) Piti Units No. 8 and No. 9 shall not operate until final PSD
permits are received for these units;
(ii) Piti Units No. 8 and No. 9 shall not operate until they comply
with all requirements of their PSD permits, including, if necessary,
retrofitting with BACT;
(iii) If either Piti Units No. 8 or No. 9 operate either prior to
the issuance of a final PSD permit or without BACT equipment, the Piti
Unit(s) shall be deemed in violation of this waiver and the CAA
beginning on the date of commencement of construction of the unit(s).
[FR Doc. 97-17031 Filed 6-27-97; 8:45 am]
BILLING CODE 6560-50-P
