Page 266 - Sustainable On-Site CHP Systems Design, Construction, and Operations

Operating Permits and Compliance Management Pr ograms 239

upon a maximum operating schedule and assumed hourly emission rate; but the
permit would not necessarily specify the hourly emission rate. If the test shows that
PM emissions exceed hourly rate assumptions, the developer can project that continued
CHP operations would result in a violation at the end of the 30-day period, but the
system would remain in compliance until then because there are no short-term limits in
the permit to be enforced. If prior to the end of the 30-day period the CHP is demon-
strated through a second test to emit at a lower rate, or if the developer reduces the
operating schedule to maintain compliance with the 30-day limit, no actual violation
would occur and no relief from the permit would be immediately needed (although
coordination with the regulatory agency is warranted).
If the test results indicate emissions in excess of a concentration limit (ppmv or mg/m ),
3
or a short-term mass limit (lb/h or kg/h), or a mass rate (lb/MW-h, or kg/MW-h), then
the developer may have to temporarily shut down the CHP and the permit holder may
have to seek temporary relief from enforcement of the permit or applicable regulation.
Such relief can often be justified based upon the following conditions:
• Economic hardship of not operating
• Lack of alternative sources of power or heat to maintain facility processes or to
preserve goods in process
• Critical public need for services supported by the CHP system such as hospitals,
wastewater treatment facilities, etc.
• The need for system operations to identify the problem, and to subsequently
demonstrate compliance

Regulators may also consider operator diligence and responsiveness when deter-
mining if relief is warranted. It is critical to demonstrate that the violation was
unforeseen and beyond the control of the operator. It is also critical to demonstrate
that prompt action was taken to try to avoid noncompliance and to advise the regula-
tory agency of the violation.
The process of obtaining relief from construction permit conditions may be as
simple as coordinating with regulatory agency staff. In many cases, agency staff and
management have authority to enter into compliance agreements with the permit
holder. These agreements are sometimes referred to as stipulated orders or stipulated
agreements. In other cases, agency staff and management may be precluded from
granting temporary relief from permit conditions or regulatory requirements. In these
cases, the permit holder may have no choice but to petition for relief through a public
hearing. During the hearing the developer and the regulatory agency would be allowed
to present testimony regarding eligibility and the need for relief.

Issuance of the Final Operating Permit
Once all commissioning activities are complete and compliance with permit conditions
are demonstrated, the developer, operator, and regulatory agency can proceed to con-
vert the construction permit into an operating permit. This point of the permitting pro-
cess may be the last time that simple administrative changes can be made to the permit
without an application submittal or fee payment. It is also at this point that commis-
sioning requirements will be deleted from the permit, leaving only ongoing compliance
conditions that the operator will be required to meet.