5.3. ERMUSR 09-08-2015 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Mike O'Neill—Technical Services
John Dietz—Chair Superintendent
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
September 8, 2015 5.3
SUBJECT:
Environmental Pollution Agency Rules affecting ERMU's Diesel Generation Facility
BACKGROUND:
In preparation for the 2016 power contract with GRE in regards to the Diesel Engine Power
Plant, I have been working with vendors/contractors to assess the need and cost of retrofitting
and upgrading the exhaust systems for our#3 and#4 generators to bring them into compliance
with new EPA regulations.
DISCUSSION:
The following information is submitted for your review:
1. The Environmental Protection Agency has created new regulations in regards to
Stationary Engines. This affects two of our four engines because we allow GRE to place
these generators on the Midcontinent Independent System Operator(MISO)market.
2. In the original Reciprocating Internal Combustion Engine rules, also known as R.I.C.E.
rules, it stipulated that entity could run the engines up to 100 hours for testing and
maintenance. This exception was later deleted by a court's decision. Another Petition for
Review was submitted and a stay of the earlier ruling was granted until a final decision
could be reached. This stay of issuance of the mandate will be in place through May 1
2016. A final decision should be forth coming prior to the expiration of the stay.
3. Elk River Municipal Utilities (ERMU)must decide whether to upgrade the exhaust
systems to bring them into compliance at a cost of approximately$400,000 or forgo
placing them on the in the MISO market with GRE and keep the assets to be used for
emergency use only.
4. If at a later time ERMU decides to bring these engines online in the MISO market,the
engines will have to be brought into compliance with the rules at that time.
EN 1OPEOEO IT
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ACTION REQUESTED:
No action requested.
ATTACHMENTS:
• United States Court of Appeals No. 13-1093
r O U E A E ® 1 1
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USCA Case#13-1093 Document#1567886 Filed:08/14/2015 Page 1 of 1
!thteb cttttes Clue of Appe d
FOR THE DISTRICT OF COLUMBIA CIRCUIT
No. 13-1093 September Term, 2014
EPA-78FR6674
Filed On:August 14,2015
Delaware Department of Natural Resources
and Environmental Control,
Petitioner
v.
Environmental Protection Agency,
Respondent
Electric Power Supply Association,et al.,
Intervenors
Consolidated with 13-1102, 13-1104
BEFORE: Garland,Chief Judge;Williams and Randolph, Senior Circuit
Judges
ORDER
Upon consideration of the motion of respondent EPA and the joint motion of
respondent-intervenors to stay issuance of the mandate,the responses in support and
in opposition thereto,and the replies,it is
ORDERED that respondent-intervenors'motion to stay issuance of the mandate
be denied. It is
FURTHER ORDERED that EPA's motion to stay issuance of the mandate be
granted. The Clerk is directed to withhold issuance of the mandate through May 1,
2016.
Per Curiam
FOR THE COURT:
Mark J. Langer,Clerk
BY: /s/
Michael C.McGrail
Deputy Clerk
E44
P DWERED BY
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