WHAT'S NEW:

No recent state activity has been identified.

AIR EMISSIONS REGULATIONS:

Air Quality Status	8 areas are in moderate nonattainment for PM-10, 2 areas are in serious nonattainment with PM-10 standards, and 2 areas are designated as Subpart 1 nonattainment for 8-hr ozone. There is also one area in primary nonattainment with SO2 standards. EPA's Nonattainment Areas.
Major Source Threshold	PTE 250 tons (100 tons for listed sources) of any criteria pollutant in attainment areas
Minor Source Permitting Exemption	Less than 325 hp
Minor Source Treatment	Operating limits based on emissions and size of unit
Emergency Generating Limits	PTE based on 500 hours per year

 

DE MINIMIS EXEMPTIONS

Units smaller than 325 hp are exempt from permitting. No letter or notification is required, however sources must be able to document their emissions. If a source has a potential to emit above the levels listed below it cannot be exempted:

· 100 tpy of CO

· 40 tpy of NOx, SO2 or VOCs

· 15 tpy of PM-10 or

· 25 tpy of PM

Also, internal combustion engines, engine-drive compressors, IC engine-driven electrical generator sets, and IC engine-driven water pumps used only for emergency replacement or standby service are considered “insignificant” activities and exempt from the permitting process. See R18-2-201 for a more comprehensive lists of activities exempt from the permitting process (“trivial” activities are also often exempt from permitting), http://www.azsos.gov/public_services/Title_18/18-02.htm#Article_3.

MINOR SOURCE PERMITTING

A general permit is available for stationary units smaller than 3,000 hp. A general permit will include enforceable operating limits to ensure that the unit remains a minor source. In most cases units receive an operating limit below 8,760 hours per year, however a generator less than 500 hp is not likely to have such a limit.

Larger sources must obtain a Class II permit which includes a case by case determination of limits. Examples of sources subject to Class II permits are internal combustion engines with a total rated capacity of 325 bhp or larger or fuel burning equipment that is fired at a sustained rate of more than 1 MMBtu/hr for more than an 8-hr period. The state will consider emissions and modeling data. If a unit exceeds ambient air impact levels or has emissions over 100 tpy, the permit will include an hourly limit to avoid Title V permitting. Several years ago a 3,250 hp project was permitted in an attainment area in the state. Modeling showed that the unit exceeded ambient impacts for NOx so the stacks were raised.

There is a 30-day public comment period for Class II permits, but none for general permits. The total permitting time authorized for Class II permits is approximately a year, but it generally takes only 5-6 months. A general permit is authorized to take 5-6 months, but is usually issued within 2-3 weeks.

A summary of Arizona’s different air quality permits can be found here, http://www.azdeq.gov/environ/air/permits/class.html. There is also an accelerated permitting process for those sources that request and are willing to pay for the actual cost of acceleration. Information on the accelerated permit process can be accessed at: http://www.azdeq.gov/environ/air/permits/acc.html.

AZ permitting contact, Trevor Baggiore
Air Quality Permits Section Manager
Phone: (602) 771-2321

MAJOR NSR/PSD PERMITTING

A potential to emit 250 tons (100 tons for listed sources) or more of any criteria pollutant triggers PSD in attainment areas. 100 tons per year triggers NSR.

PTE 100 tpy or more of any air pollutant triggers NSR in nonattainment areas. A of 70 tons per year of PM-10 in serious nonattainment areas triggers NSR. Major sources must obtain a Class I permit.

TREATMENT OF EMERGENCY ENGINES

Emergency generators can only be operated when the primary source of power is interrupted.

SITING REQUIREMENTS FOR NON-UTILITY GENERATORS:

In 1971, the Arizona Legislature required that the Corporation Commission establish a power plant and line siting committee now called the Arizona Power Plant and Line Siting Committee. The Committee provides a single, independent forum to evaluate applications to build power plants of 100 MW or more. Power Plant Siting Committee Website

BUILDING, ZONING AND FIRE CODES:

Building Codes: Arizona does not have a statewide building code. Municipal jurisdictions select their own building codes.

• Department of Fire, Building, and Life Safety

Energy Codes: Arizona has adopted ASHRAE 90.1-2004 as mandatory for state-owned and funded buildings.[1] Many counties and cities have also adopted some version of the IECC for local use. No state-wide minimum energy code is currently in force (an older State Energy Code does not appear to still be active).

Fire Codes: Arizona follows the IFC 2003 with some revisions.

• State Fire Marshall website

Zoning: For the most part, Arizona counties and municipalities have primary authority on zoning. Consult each community for zoning requirements in the locality.

Resources (information may not be as current as provided above)

A general overview of each state’s enacted codes can be found HERE.

The International Code Council Adoption page gives state-by-state adoption status of specific ICC codes, as well as information about code adoption by some municipal governments within that state.

Information about energy codes can be found at the DOE’s Building Codes for Energy Efficiency page or at the Building Codes Assistance Project.

INTERCONNECTION REQUIREMENTS:

In Progress: In June 2007, the Arizona Corporation Commission (ACC) initiated a rulemaking process to establish statewide interconnection standards for distributed generation (DG). This proceeding is still in progress. Until the new official rules go into effect, the commission has recommended that utilities use the draft rules as a guide. This document applies to systems up to 10 megawatts (MW) in capacity.

Interconnection requirements are currently maintained by the utility companies.

The Salt River Project, which is not regulated by the ACC, has its own set of distributed generation guidelines with separate rules based on system capacity.

Tucson Electric Power (TEP) and Arizona Public Service (APS) are regulated by the ACC, but they have their own interconnection requirements. It is expected that they will adopt the ACC interconnection standards when the final rule is adopted.

For more information contact either the ACC or your electricity transmission and distribution utility.

Arizona Corporate Commission	ACC Utilities Division 1200 W Washington St . Phoenix, AZ 85007 Phone: (602) 542-4251 (800) 222-7000
Salt River Project	SRP Generator Requirements 1521 N. Project Drive Tempe, AZ 85281-1298 Phone: Residential: John Kirby, (602) 236-4453 Business: Commercial Customer Services, (602) 236-8833
Tucson Electric Power	Tucson Electric Power Company P.O. Box 711 Tucson, AZ 85702-0711 Phone: (520) 623-7711 (800) 328-8853

 

EXIT FEES:

There are no exit fees for DG in the state of Arizona. In Arizona, Competitive Transition Charges are not imposed on self-generation facilities even when the loads were formerly served by the utility. The Arizona Corporation Commission Rule 14-2-1607 provides:

F. Any reduction in electricity purchases from affected utility resulting from self-generation, demand side management, or other demand reduction attributable to any cause other than the retail access provisions of this Article shall not be used to calculate or recover any Stranded Cost from a consumer.

UTILITY STANDBY RATES:

Arizona does not have a statewide policy on standby rates. Relevant policies for Arizona utilities are listed below.

Arizona Public Service Company

Arizona Public Service Co - Rate E-55 - standby service is provided to customers that contract with the utility for a specific amount of standby capacity. A demand based reservation charge and a customer charge is assessed every month, with actual usage being billed through energy charges. Rate available at: http://www.aps.com/_files/rates/e-55.pdf _