NOTICE:

This report was prepared by Pace University Energy Project in the course of performing work contracted for and sponsored by the New York State Energy Research and Development Authority (hereafter “NYSERDA”). The opinions expressed in this report do not necessarily reflect those of NYSERDA or the State of New York, and reference to any specific product, service, process, or method does not constitute an implied or expressed recommendation or endorsement of it. Further, NYSERDA, the State of New York, and the contractor make no warranties or representations, expressed or implied, as to the fitness for particular purpose or merchantability of any product, apparatus, or service, or the usefulness, completeness, or accuracy of any processes, methods, or other information contained, described, disclosed, or referred to in this report. NYSERDA, the State of New York, and the contractor make no representation that the use of any product, apparatus, process, method, or other information will not infringe privately owned rights and will assume no liability for any loss, injury, or damage resulting from, or occurring in connection with, the use of information contained, described, disclosed, or referred to in this report.

ABSTRACT

Businesses and industry in New York State that employ on-site power generation with heat recovery can dramatically reduce both energy consumption and its associated environmental impacts. This approach, called combined heat and power (CHP – also known as cogeneration), is already an important generating resource in New York with approximately 5,000 MW of capacity installed at 210 sites. Much of this capacity is in very large sites. This Guidebook is targeted at the growing market for smaller-sized projects, those in the 1 MW to 5 MW range, or below 1 MW in size.

Clean distributed generation (DG) and combined heat and power (CHP) offer an array of benefits to energy customers and the public. However, once an on-site generation project becomes more than an idea, a plethora of siting, permitting and codes-related approval processes must typically be navigated to bring the project to fruition.

A major hurdle in obtaining approvals for DG/CHP project is lack of clarity about what requirements exist, which agencies have jurisdiction, what agency processes must be followed, and the timetable for approvals. This lack of clarity can consume time and money for both developers and agency staff, in the form of research, meetings, review and correction of applications, re-design of projects, and construction modifications.

The purpose of this guidebook is to dispel this confusion for prospective project developers, owners and planning/code officials in New York State by providing a step-by-step, user-driven menu of information. The guidebook is designed to serve as the starting point and continuing reference for those seeking to design, install and operate smaller-sized DG/CHP systems in the state.

In New York, there are:

» 57 counties, each with multiple cities, plus the City of New York, with 5 local boroughs (building codes, land use, noise, aesthetics)
» Six major investor-owned utilities, almost 40 major municipal utilities, over 325 water companies (interconnection to the electric grid, supply of natural gas through distribution pipelines, water supply)
» Eleven regional state building code offices.

New York City and the upstate region (the rest of the state) feature different sets of building codes. With regard to air quality requirements, NYC and certain surrounding counties (Nassau, Suffolk, Westchester, Rockland, parts of Orange County) are classified as severe non-attainment areas in terms of air quality. The remainder of the State is classified as a moderate non-attainment area and faces different air permitting thresholds. DG developers should be aware of these differences as they identify the appropriate bodies that govern the prospective project site and seek the approvals that are needed for the project under consideration.

Acknowledgements

The authors gratefully acknowledge the input and contributions of some key advisors who provided information and participated in meetings in August, September and November 2002 to review the content and presentation of the material in this guidebook. We thank them for all of their valuable input, and note that any remaining errors that may be in this guidebook are solely the responsibility of the authors.

The contributors included:
Gerry Kelpin, Rose Marabetti, Peter Grzybowski, Peter Amos, Steve Stone, Scott Butler, David Ahrens, Scott Yanuck, Ray Hodges, John Tacetta, Sam Marcovici, Nick Grecco, Hooshang Nejathim, Robert Sliwinski, John Barnes, Robert Cordell, Tom Piwinski, Jim Coyle, Steve Mohr, Clif Wassel, Cathy Carp, Bill Cristofaro, Jeremy MacDonald, Dawn Dana, Nag Patibandla, Dana Levy, Anne-Marie Borbely-Bartis, Mike Sheehan, Gregg Giampaolo, Anthony Perrera, Pat Maher, Bob Gibeault, Mark Grasso, Dennis Rigstad, Al Ribaudo, Mike Burnetter, Victor Vientos, John Franceschina

The authors wish to give special recognition to the efforts of the NYSERDA project managers Dr. Nag Patibandla and Dr. Dana Levy. They offered critical input throughout the process, contributed much to the design and content of the Guide in several planning meetings and participated fully in nearly all of the expert group meeting held in Albany and Downstate NY locations. Finally, we’d like to acknowledge the diligent effort of Pace Law School student intern Anish A. Joshi who was instrumental in providing background research for all parts of the Guidebook, assisted in preparation for outreach meetings as well as contributing to writing drafts of earlier versions of the Guide.

Note: any corrections or updates to information in this guidebook can be sent to Tom Bourgeois at the Pace Energy Project: TBourgeois@law.pace.edu or fax 914-422-4180

Distributed Generation Siting, Permitting and Codes Guidebook

• This guidebook is an interactive, drill-down capable, HTML linked application to be available through the NYSERDA and Pace Energy Project websites. It is intended to step prospective project developers, owners, and planning/code officials through all applicable regulations governing smaller-scale (from .1 MW to 10 MW) on-site generation projects.

• The focus of this guidebook is small to medium sized facilities installing clean Combined Heat and Power technologies (reciprocating engines, microturbines, fuel cells, combustion turbines), but some Title V Major Source information is provided.

•The information in this guidebook is up to date as of May 1, 2003.

•The online version of the Guidebook is available at:
www.law.pace.edu/energy/index.html

This Guidebook Contains Seven Modules

• Introduction and Definitions
• Air Permitting in Downstate (“Severe Non-Attainment”) areas
• Building/Health & Safety/Noise Permits – New York City
• Air Permitting in Upstate (“Non-Attainment”) areas
• Building/Health/Safety/Noise Permits – Outside of the NYC
• FAQs about Air Permitting
• Forms Checklist and Detailed Appendices

How This Guidebook Works

• The roles and responsibilities of several authorities having jurisdiction over DG/CHP siting and permitting are outlined, including:

» Local building inspectors (e.g., building permits)
» Local Fire Marshalls (e.g., fuel storage codes)
» Local Zoning Boards (e.g., noise limitations)
» City/State Environmental Departments (e.g., air emissions permits)

• For all but the smallest DG/CHP applications, the principal hurdle is likely to be the air permit

• For this reason, the guidebook has been set up to first determine which air permit requirements will apply; the other permitting and code requirements follow

• Air permitting guidance follows a sequential structured pattern of consideration:

» Location
» Technology
» Size/emissions rates

• It is not expected that a user would need or see all of the screens provided in the guidebook, but only those that apply for their situation

• This process flow chart shows the typical procedure that a user would need to follow

DG Siting, Permitting and Codes Process Flow

Useful Definitions

Listed below are definitions for terms referred to throughout this Guide. Additional definitions can be found in the Glossary (Appendix H).

Best Available Control Technology (BACT): An emission limitation based on the maximum degree of reduction which DEC determines is achievable taking in to account energy, environmental and economic impacts and other costs. CAA § 169(3).

Criteria Pollutant: CAA § 108(2) Pollutants for which National Ambient Air Quality Standards (NAAQS) have been set by the EPA:

1.) Carbon monoxide (CO)
2.) Nitrogen oxides (NOx)
3.) Sulfur dioxide (SO2)
4.) Particulate matter (with an aerodynamic diameter less than 10 microns) (PM-10)
5.) Ozone (and its precursors)
6.) Lead

Facility: An existing or planned location or site at which prime movers, electric generators, and/or equipment for converting mechanical, chemical, and/or nuclear energy into electric energy are situated, or will be situated. A facility may contain more than one generator of either the same or different prime mover type. For a cogenerator, the facility includes the industrial or commercial process.

Hazardous Air Pollutant: An air pollutant listed by the EPA in Section 112(b) of the Federal Clean Air Act, or determined by the DEQ Environmental Quality Commission to cause adverse effects to human health or the environment.

Lowest Achievable Emission Rate (LAER): The rate of emissions which reflects the most stringent emission limitation which is contained in the NY SIP or, the most stringent emission limitation achieved in practice, whichever is more stringent. CAA § 171(3).

Major Source: Federal regulations require states to initially classify a combustion facility as Major if its physical capacity (i.e., heat input design rating) and operational capacity (i.e., continuous operation-24 hrs/day, 365 days/yr), also known as potential to emit (PTE), equal or exceed the Major thresholds. Limiting factors such as seasonal operation or fuel usage may give a more realistic actual annual emission level. However, these limiting factors must be recorded in a DEC air permit to be considered valid.

Major Source Thresholds (NOX): The major source thresholds for NOX is 25 tons per year in the severe non attainment areas of New York and 100 tons per year for the remainder of New York State

Maximum Achievable Control Technology (MACT): The maximum degree of reduction in emissions for new and existing air pollution sources, taking into consideration cost, non-air quality health and environmental impacts, and energy requirements.

Nameplate Capacity: The maximum electrical generating output (in MWe) that a generator can sustain over a specified period of time when not restricted by seasonal or other deratings as measured in accordance with the United States Department of Energy

National Emissions Standards for Hazardous Air Pollutants (NESHAP): The national standards covering asbestos, benzene, beryllium, inorganic arsenic, mercury, radionuclides and vinyl chloride.

Nonattainment Area: A geographic area that violates the National Ambient Air Quality Standards.

Point Source: Any discernible, confined, and discrete conveyance, including, but not limited to, any pipe, ditch channel, tunnel, conduit, well, discrete fissure, container, rolling stock, concentrated animal feeding operation, or vessel or other floating craft, from which pollutants are or may be discharged.

Potential To Emit (PTE): means the maximum capacity of an air pollution source to emit any regulated air pollutant under its physical and operational design; PTE assumes the source operates at maximum capacity 24 hours per day, 365 days per year (8760 hours/yr).

Pollutant: A contaminant that adversely alters the physical, chemical or biological properties of the environment.

Pollution Prevention: Any practice which reduces environmental degradation caused by human activities. Pollution prevention can be achieved by the protection of natural resources by conservation and improved management practices, increased efficiency in the use of raw materials, energy, water, or other resources, or source reduction and other practices that reduce or eliminate the creation of pollutants.

Prevention of Significant Deterioration (PSD): Prevention of Significant Deterioration program, as established in 40 CFR 52

Severe Non Attainment Area (NOX and VOC): In New York State the severe non attainment area for NOX includes New York City, Nassau and Suffolk counties, Westchester County and the lower Orange County metropolitan area. All other areas of New York State are classified as Moderate Non attainment area for NOX and VOC.

Site: The land or water area where any facility or activity is physically located or conducted, including adjacent land used in connection with the facility or activity.

STATIONARY SOURCE: Any “building, structure, facility, or installation” that emits or has the potential to emit any air pollutant subject to regulation under the Clean Air Act (see Appendix J)

RACT Reasonably Available Control Technology: the lowest emission limit that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility.

Tons per year (TPY): Tons per year is based on the combined potential to emit (PTE) of all combustion installations at a facility.

Volatile Organic Compounds (VOCs): Chemical compounds which easily evaporate into the atmosphere where they can react with sunlight to produce ground-level ozone, better known as smog.

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© 2003 Pace Energy Project