SB 236 — AN ACT CONCERNING THE USE OF BACK-UP DIESEL GENERATORS FOR PURPOSES OF PEAK SHAVING.

Senate General Assembly RaisedFile Bill No.

236241 February Session, 2022 LCOSubstitute Senate Bill No.

1504236 ReferredSenate, toMarch 31, 2022 The Committee on ENVIRONMENTEnvironment Introducedreported by:through SEN.

(ENV)COHEN ANof ACTthe CONCERNING12th THEDist., USEChairperson OFof BACK-UPthe DIESELCommittee GENERATORSon FORthe PURPOSESpart OFof PEAKthe SHAVING.Senate, that the substitute bill ought to pass.

AN ACT CONCERNING THE USE OF BACK-UP DIESEL GENERATORS FOR PURPOSES OF PEAK SHAVING.

T1 Pollutant Emission limit (pounds per megawatt hour) T2 NitrousNitrogen oxide 0.6 T3 Particulate matter 0.07 T4 Carbon monoxide 2.0 T5sSB236 Non-methane/ hydrocarbonsFile 0.3 LCO No.

1504241 1 ofsSB236 2File RaisedNo. Bill No.236 (2) Notwithstanding the provisions of subdivision (1) of this subsection, any such diesel reciprocating engine shall not be used for peak shaving, testing or maintenance purposes on any day for which the Commissioner of Energy and Environmental Protection forecasts that ozone levels will be "moderate to unhealthy for sensitive groups", "unhealthy for sensitive groups", "unhealthy" or "very unhealthy".

(3)241 TheT5 useNon-methane 0.3 T6 hydrocarbons (2) Notwithstanding the provisions of subdivision (1) of this subsection, any such diesel reciprocating engine atshall suchnot abe facilityused shallfor bepeak limitedshaving, totesting notor moremaintenance thanpurposes threeon hundredany hoursday offor operationwhich perthe yearCommissioner of peakEnergy shaving and notEnvironmental moreProtection thanforecasts fivethat hundredozone cumulativelevels hourswill perbe year"moderate ofto operationunhealthy for thesensitive followinggroups", purposes:"unhealthy for sensitive groups", "unhealthy" or "very unhealthy".

Emergencies,(3) The use of any such diesel reciprocating engine at such a facility shall be limited to not more than three hundred hours of operation per year of peak shaving and not more than five hundred cumulative hours per year of operation for peak shaving, maintenance and testing.

Section 1 July 1, 2022 New section StatementENV ofJoint Purpose:Favorable Subst.

TosSB236 establish/ emission,File useNo. and exhaust standards for certain diesel reciprocating engines used for peak shaving.

[Proposed241 deletions2 aresSB236 enclosedFile inNo. brackets.

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1504In 2general, fiscal impacts are based upon a variety of 2informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

See Below Municipal Impact:

See Below Explanation The bill limits the use of certain diesel engines to reduce power consumption from the electric grid during:

(1) peak demand (a.k.a., “peak shaving”);

or (2) emergencies.

Peak shaving refers to leveling out peaks in electricity use by industrial and commercial power consumers.

Power consumption peaks affect procurement costs.

As such, restricting the practice or potential for “peak shaving” would lead to higher electricity rates for certain consumers, which may include the state and municipalities.

Also, the bill allows the Department of Energy and Environmental Protection (DEEP) adopt more stringent requirements for these engines if applicable federal air permitting regulations allow.

This has no fiscal impact as the agency currently has expertise for this purpose.

Ratepayer Impact Statement Since restricting the practice or potential for “peak shaving” would lead to higher electricity rates for certain consumers, the bill may result in increased electric costs for ratepayers.

The Out Years Any increased costs to the state and municipalities in the outyears would continue into the future subject to the amount of electricity consumed and the cost of electricity.

sSB236 / File No.

241 3 sSB236 File No.

241 OLR Bill Analysis sSB 236 AN ACT CONCERNING THE USE OF BACK-UP DIESEL GENERATORS FOR PURPOSES OF PEAK SHAVING.

SUMMARY This bill establishes emissions and hour limits for certain diesel reciprocating engines used for (1) on-site power generation to reduce power consumption from the electric grid (“peak shaving”) and (2) emergencies.

The limits apply to engines contemporaneously installed at a single facility and totaling more than five megawatts (MW) of generating capacity.

Under the bill, these engines must be designed and operated so that, when operating at steady-state, they do not exceed the pollutant emissions limits in Table 1 below.

Table 1:

Pollutant and Emissions Limits Pollutant Emissions Limits (Pounds per MW Hour) Nitrogen oxide 0.6 Particulate Matter 0.07 Carbon monoxide 2.0 Non-methane hydrocarbons 0.3 The bill caps the annual use of these diesel engines at (1) 300 hours of operation for peak shaving and (2) 500 cumulative hours of operation for peak shaving, maintenance, and testing.

It also:

1.

prohibits these engines from being used for peak shaving, testing, or maintenance, on days for which the Department of Energy and Environmental Protection (DEEP) commissioner sSB236 / File No.

241 4 sSB236 File No.

241 forecasts that ozone levels will be “moderate to unhealthy for sensitive groups,” “unhealthy for sensitive groups,” “unhealthy,” or “very unhealthy” and 2.