Court Vacates 100-Hour Exemption for Emergency Generators

On May 1, 2015, the D.C. Circuit Court of Appeals ruled that the 100-hour exemption for emergency generators that participate in demand-response programs under 40 CFR Part 63, Subpart ZZZZ, the so-called RICE rule, is arbitrary and capricious. The court vacated the exemption, but otherwise left the RICE rule in place.  The court’s mandate will not take effect until seven days after the disposition of any petition for rehearing – in the meantime, the exemption remains in place. Thus, it could be several months before the order vacating the exemption takes effect.

Those with backup/emergency generators that rely upon the 100-hour exemption for participation in demand-response programs will need to evaluate this development and the potential new compliance options for these engines. In addition, such sources may need to amend their air emission licenses to reflect the court’s decision and any new applicable requirements that may apply to their emergency generators as a result. 

If you have any questions about this development or the impact on your facility’s engines and/or licenses, please contact Environmental Practice Group partner Brian Rayback at 207.791.1188.