Washington (Platts)--15Jan2013/206 pm EST/1906 GMT

The US Environmental Protection Agency on Tuesday released its final amendments to emission standards for small, stationary engines used to generate power for oil and gas production and in power emergencies, saying the rule changes will save hundreds of millions of dollars while slashing pollutants.

EPA estimates there are more than 1 million these so-called reciprocating internal combustion engines, or RICE units, used nationwide for various purposes, including generating electricity and power equipment at large industrial and agricultural facilities, in oil and gas production and power generation.

The final amendments to the National Emissions Standards for Hazardous Air Pollutants will apply to these engines for offshore vessels operating on the Outer Continental Shelf, engines used in emergency demand-response programs, engines used in sparsely populated areas for oil and gas production, engines in remote areas of Alaska, and engines slated for replacement in a few years under state requirements.

For RICE units used to power equipment for oil and gas production in populated areas, EPA is placing numerical emission limits for stationary spark ignition 4-stroke engines above 500 horsepower. The rule also requires installing catalytic controls, annual performance checks and a high-temperature shutdown device.

Offshore vessels in the OCS with nonemergency compression ignition engines above 300 horsepower be subject to management practices.

For emergency engines used to prevent electrical outages, the rule will impose cleaner fuel requirements beginning in 2015 for units run more than 15 hours a year to prevent blackouts and brownouts. These units will be expected to switch to ultra low sulfur diesel if they commit to operate for more than 15 hours annually for emergency demand response.

Units with 100 horsepower or more that run between 15 and 100 hours a year for emergency demand response also will need to submit annual reports on their location and times and dates of operation.

EPA also said under its new rule these emergency units can be used for a combined total of 100 hours per year without meeting the emission limits under specific operations. They include maintenance and testing, emergency demand response for Energy Emergency Alert Level 2 situations, responding to when there is a voltage change of at least 5%, and operating up to 50 hours to prevent voltage collapse or line overloads.

Emergency RICE units of any size can run during hurricanes or ice storms without having to meet these federal controls or emission limits, EPA said.

Units that commit to run less than 15 hours a year for energy emergencies can do so without meeting these requirements or emission limits.

EPA estimates that the amended rule will call for capital costs of $840 million and annual compliance costs of $490 million. The amended rule is expected to reduce capital and compliance costs by $287 million and $139 million, respectively, the agency said.

The American Public Power Association commended EPA on its final rule for RICE units.

"With this rule, the EPA is fulfilling its obligation to protect public health while providing the electricity industry the flexibility it needs to prevent unnecessary electrical outages and keep the lights on for consumers," APPA CEO and President Mark Crisson said.

--Cathy Cash, cathy_cash@platts.com 
--Edited by Jason Lindquist, jason_lindquist@platts.com

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