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Annual Report on Emergency Engines Due to Environmental Protection Agency March 31, 2016, and Update Regarding Emergency Engine Demand Response Participation

March 15, 2016

by Richard Friedman and Teresa Schmittberger

The annual report for emergency stationary combustion engines (“emergency engines”) must be submitted to the Environmental Protection Agency (“EPA”) by March 31, 2016.  You are required to submit this report to EPA if you operated an emergency engine for more than 15 hours to participate in emergency demand response programs or conduct maintenance or readiness testing during calendar year 2015.  The annual report should be submitted at the following link:

EPA requires the following information within the annual report: (a) company name and address; (b) model, rating, and location of the engine; (c) hours and dates of engine operation; (d) hours for which the engine was contractually obligated to be available; and (e) whether any deviations in fuel requirements for the engine occurred.  If you have any questions as you fill out the electronic form, please feel free to contact us.

As a reminder, emergency engines may not be used for demand response participation beginning May 1, 2016.  On May 1, 2015, the D.C. Circuit Court of Appeals rejected EPA regulations that allowed emergency engines to operate for demand response purposes for up to 100 hours.  This court decision was stayed for one year, however, this stay will be lifted on May 1, 2016.  At such time, emergency engines will be prohibited from participating in demand response programs.[1]  EPA expects to issue a policy document before May 1, 2016, to inform owners of emergency engines of the restrictions that now apply to these engines.

Although emergency engines may not be used for demand response after May 1, 2016, emergency engines may continue to operate for up to 100 hours for maintenance checks and readiness testing. In addition, no time limit applies to these engines during emergencies.  In order to continue participating in demand response programs with an emergency engine, the engine must be permitted with either EPA or the relevant state environmental agency.  We are available to assist if you have any questions regarding the permitting process.

Please do not hesitate to contact us if you have any questions regarding emergency engine reporting or demand response requirements.  Thank you.

[1] EPA is taking the position that a prior 15-hour limit on demand response participation is not automatically reinstated after the D.C. Circuit’s rejection of the 100-hour limit.