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Final Technical Report Advanced MicroTurbine System (AMTS) -C200 MicroTurbine -Ultra-Low Emissions MicroTurbine

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Final Technical Report Advanced MicroTurbine System (AMTS) -C200 MicroTurbine -Ultra-Low Emissions MicroTurbine ( final-technical-report--advanced-microturbine-system-amtsc20 )

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California has Air Quality Management Districts (AQMD) that are allowed to levy specific requirements at the local jurisdiction. While many AQMDs provide exemptions to site equipment compliant with the CARB 2007 standard, others may still require a local permit to site equipment. The table below provides a summary chart for the various requirements in place for CARB 2007, SGIP, and local AQMD permits or exemptions. CALIFORNIA MICROTURBINE INSTALLATION REQUIREMENTS: EMISSIONS COMPLIANCE MATRIX Permitted Exempt SGIP Requirement 2006* 2007 CARB 2007 CERT CARB 2003 CERT NOx < 0.14 lb/MW-hr X NOx < 0.07 lb/MW-hr Efficiency > 66% LHV (iCHP only) X X X X X CO < 0.10 lb/MW-hr X X VOC < 0.02 lb/MW-hr X X 100% Load Rating X X X X X 1 yr Efficiency Verification X X X 2 yr Emissions Degradation Data X Site Testing Supply Manufacturer Emissions Data Possible Possible Possible X Ability to Sell if AQMD Will Not Permit Before 2007 2007 + X X X X X X X X *SGIP Reservation Request Subimtted Before January 1, 2007, But May Be Installed in 2007 Capstone performed a survey with a variety of its distributors and customers gain market feedback that could impact design implementation of the requirements. 1. Self Generation Incentive Program (SGIP) very attractive ($800/kWe) – CHP with overall efficiency > 67% LHV – CARB 2007 NOx level required after January 1, 2007 – Full CARB 2007 Emissions levels required after November 1, 2007 (pending) 2. Base-Load Self Generation required (consistent with SGIP) 3. CHP (Cogeneration) required for reasonable payback (ROI): – Full heat recovery at full electrical power efficiency yields fastest ROI – Part load operation will have a tough time being cost competitive with Utility electrical / gas-boiler heat operation 4. Backup power capability not a sales driver 5. Low pressure natural gas fuel (0.1 – 10 psig) 6. Capstone Product: – C65 iCHP – Grid connect operated at full power (like UTC PureComfort) – Gas Compressor solution required (not part of CARB Program) 172

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