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Notice of Proposed Rulemaking Public Comment Period - Demand Response Generating Sources

Monday, July 1, 2019

DOEE, pursuant to the authority set forth in Section 107(4) of the District Department of the Environment Establishment Act of 2005, effective February 15, 2006 (D.C. Law 16-51; D.C. Official Code § 8-151.07(4) (2013 Repl. & 2018 Supp.)); Section 6 of the District of Columbia Air Pollution Control Act of 1984, effective March 15, 1985 (D.C. Law 5-165; D.C. Official Code § 8-101.06 (2012 Repl. & 2018 Supp.)); Section 204 of the Air Quality Amendment Act of 2014, effective September 9, 2014 (D.C. Law 20-135; D.C. Official Code § 8-101.14 (2013 Repl. & 2018 Supp.)); Mayor’s Order 2006-61, dated June 14, 2006; and Mayor’s Order 2015-191, dated July 23, 2015; hereby gives notice of the intent to adopt a new Chapter 12 (Demand Response Generating Sources) in Title 20 (Environment) of the District of Columbia Municipal Regulations (DCMR), in not less than thirty (30) days from the date of publication of this notice in the D.C. Register.

This rulemaking establishes requirements for operators of demand response generators that operate in the District of Columbia. The new Chapter 12 establishes rules to implement Title II of the Air Quality Amendment Act of 2014 to allow for limited participation in electric grid demand response programs by stationary generators.

As background, in order to promote electric grid reliability while minimizing the costs of grid maintenance, the regional electric grid operator (PJM) has developed programs to call upon distributed generation sources to supplement the electric grid in times of power shortfalls. One of the ways to do this is to establish programs where people and businesses owning diesel and other fossil fuel-fired generators can use these generators to power their facilities for financial compensation in lieu of drawing power from the electric grid. Often the days when this supplemental power is most needed are also the hottest days of the summer when air conditioning loads are highest. These days frequently coincide with the worst air quality days of the year and are particularly bad days for numerous generators to operate, in particular older generators with higher emission rates.

To address these air quality concerns while still allowing participation in demand response programs, The Air Quality Amendment Act of 2014 incorporated a requirement that the current Best Available Control Technology (BACT) be installed on any generator permitted to participate in these programs. This proposed regulation defines a process to determine BACT for individual generators in the program. The rule establishes the permitting procedures and application requirements that generators must meet in order to act as demand response generating sources.

This regulation clarifies the ways that stakeholders can participate in these programs, albeit with stringent emission controls consistent with the enabling legislation. It also provides clarity to generator owners on how to participate. The proposed regulation allows generator participation in these demand response programs in order to assist with providing an additional level of grid reliability. At the same time, the rule minimizes impacts on peak pollution days, thereby protecting air quality and public welfare. In addition, the Department is proposing to adopt all of the federal standards.

All persons desiring to comment on the proposed regulations should file comments in writing no later than thirty (30) days after the publication of this notice in the D.C. Register. Comments should identify the commenter and be clearly marked “DOEE Demand Response Generating Sources Comments.” Comments may be (1) mailed or hand-delivered to DOEE, 1200 First Street NE, 5th Floor, Washington, D.C. 20001, Attention: DOEE Demand Response Generating Sources Comments, or (2) sent by e-mail to [email protected], with the subject indicated as “DOEE Demand Response Generating Sources Proposed Rule Comments.” No comments submitted after July 29, 2019 will be accepted.

The proposed rules are available for viewing in the attachment below. Additionally, a copy of these proposed rules will be on available for viewing at the Department of Energy & Environment; 1200 First Street NE – 5th Floor; Washington, D.C. 20002, during normal business hours. A hard copy of the proposed rules can be requested by calling 202-535-1747.