SOLAR TODAY - May 2011

robert ukeiley (rukeiley @ igc.org) is a lawyer who represents environmental nonprofits in clean air act litigation affecting energy issues.

New Rules Open Market for Renewable Sales

This column often talks about the ways environmen- tal regulations will impact large, centralized power plants and thus “grid” energy. There are, however, a number of Clean Air Act regulations coming into place that should create new opportunities in a variety of innovative applications for renewable energy and energy efficiency. These regulations, coupled with the ever-increasing cost of fossil fuels, especially diesel, should help to level the economic playing field for clean energy.

For example, on Jan. 1, the U.S. Environmental Protec-
tion Agency’s (EPA’s) interim Tier 4 regulations began to
apply to certain stationary engines. The final Tier 4 regula-
tions take effect between 2013 and 2015, depending on the
size of the engine. The regulations apply to diesel engines
used in power generation as well as industrial applications
such as mining, oil and gas extraction, agricultural and non-
road construction equipment. These regulations will, in
most cases, make the engines more expensive and also make
the diesel fuel more expensive as the fuel will have to be
cleaner in order not to damage the pollution controls on the
engines. The increased costs for diesel equipment means
renewable energy can be a more attractive option if renew-
able energy sellers can provide solar-and-battery-powered
equipment that can do the job more economically. More
information about EPA’s regulation of non-road diesel
engines is available here: epa.gov/nonroad-diesel.
On Feb. 23, EPA signed another final rule limiting the
emissions of hazardous air pollutants for various indus-
trial, commercial and institutional boilers. EPA estimates
that the new pollution limits will apply to approximately
200,000 boilers. This includes boilers at large sources of air
pollutants, including refineries, chemical plants and other
industrial facilities, and boilers located at small sources
of air pollutants, including universities, hospitals, hotels
and commercial buildings. Again, as the cost of pollution
is internalized at these facilities, renewables and energy
efficiency such as solar water-heating and efficiency mea-
sures to reduce the demand for steam or hot water should
become more and more attractive. More information about
this rule is available at epa.gov/airquality/combustion.