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Proposed New York State Rule Restricting NOX and PM Emissions from Electric Generators

April 16, 2008

By Lisa K. Rushton and Jennifer L. Shea

The New York State Department of Environmental Conservation (NYSDEC) has proposed regulations to implement more stringent nitrogen oxide (NOx) and particulate matter (PM) emissions limits and impose operational restrictions on new and existing distributed generation sources in the State of New York. Distributed generation sources are those generators used to produce electricity where the source is located, including backup generators. As a result of the proposed rule, financial services institutions, along with other facilities in Manhattan with backup generators, may need to install add-on control technology or upgrade existing generators and be subject to increased administrative burden, recordkeeping, and reporting obligations. One financial institution estimates compliance costs running between $2-3 million to meet the new emissions standards under the proposed rule.

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