On July 1, 2019, the Department of Energy and Environment (DOEE) announced their intent to add a new chapter to their air quality regulations (Chapter 12) for the permitting of engines that participate in a demand response program. Under this proposed regulation, a demand response generating source is defined as a stationary generator subject to an agreement or obligation to provide power in response to power grid needs, economic signals from competitive wholesale electric markets, or special retail rates.

Following is a summary of the proposed regulation:

  • A demand response generating source needs to obtain a Chapter 2 air quality permit for construction/operation.
  • A demand response generating source cannot be classified or permitted as an emergency generator.
  • The owner/operator of a demand response generating source needs to evaluate Best Available Control Technology (BACT) in accordance with Title 20 of the District of Columbia Municipal Regulations (20 DCMR) 1200.7-9 as part of the air quality permit application process. BACT cannot be less stringent than the standards specified for non-road engines for 2014, and newer model year engines found in Title 40 of the Code of Federal Regulations (40 CFR) 1039.101, 1039.105, 1039.107, and 1039.115.
  • Once BACT has been determined and a permit is issued by the DOEE, BACT does not need to be re-evaluated at the time of the air quality permit renewal per 20 DCMR 1200.4.

The proposed rule can be found online here. Anyone interested in providing comments on the proposed regulation must do so by July 29, 2019. Comments may be mailed/hand delivered to DOEE or e-mailed to airqualityregulations@dc.gov with the subject indicated as “DOEE Demand Response Generating Sources Proposed Rule Comments.”

Trinity Consultant's Washington, D.C. office has experience in assisting clients with demand response participation across the Mid-Atlantic region and the air quality permitting nuances associated with these types of sources. Please contact our office (240) 379-7490 if you have any questions or concerns regarding the proposed regulation and potential impacts.