Recent Regulatory Initiatives Concerning Greenhouse Gases


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  • Four major regulatory actions: The GHG Reporting Rule U.S. EPA’s Electronic GHG Reporting Tool The GHG Tailoring Rule Future Federal Rulemaking Activities
  • Part 98 requires large sources and suppliers to report GHG data and other relevant information in order to collect accurate and timely GHG data to inform future policy decisions Part 98 affects: Suppliers of certain products that would result in GHG emissions if released, combusted or oxidized; direct emitting source categories; and facilities that inject CO2 underground for geologic sequestration or any purpose other than geologic sequestration, are covered in Part 98. Facilities that emit 25,000 metric tons or more per year of GHGs are required to submit annual reports to EPA.
  • In a direct interim rule EPA has deferred the reporting of “inputs to equations” from March 31, 2011 to August 31, 2011.  Giving EPA more time to promulgate the longer-term deferral through notice and comment. This deferral does not affect the reporting deadline for actual 2010 GHG emissions. The proposed longer-term deferral allows EPA to evaluate issues related to reporting and public availability of inputs to emission equations.
  • Step 1 - User account specific to individual Central Data Exchange (CDX) login can be used. Security features – remember your questions!. Electronic Signature Agreement (ESA) Print, sign and mail in. U.S. EPA review for completeness before account is activated. Step 2 – Facility registration Set up facility profile. Step 3 – Identify Designated Representative All facilities must have a Designated Representative (DR) to submit reports. Identify yourself or someone else. DR must be a registered e-GGRT user. Electronic invitation sent for acceptance. Can also designate Alternate Designated Representative (ADR) (optional). Location, owners/operators. Step 4 – Identify Agents (optional) DR or ADR delegates authority to make electronic submissions for the facility. Agent must be a registered e-GGRT user. Electronic invitation sent for acceptance. DR or ADR must confirm. Step 5 – DR and ADR sign and submit Certificate of Representation Establishes the DR/ADR's authority to certify, sign, and submit annual GHG reports. Electronic invitation sent. Each facility must have a complete Certificate of Representation by January 30, 2011. Delegates authority to submit annual GHG reports. Electronic invitation sent.
  • Multiple challenges in Courts Rule remains in effect Step 1 PSD sources are in a critical position – what is BACT?
  • How we got here: LDVR put limits on mobile sources 1/2/11 the first day that anyone can sell a car of a model year 2012 vehicle (which is when these standards apply) – this is why the effective date isn’t 1/1/11
  • This is why they’ve “tailored” the thresholds – this information came from EPA. New thresholds for GHGs make this manageable to handle. Not having the tailoring rule makes this an “absurd result”.
  • For a GHG PSD significant project: (Step 2) Permit issued prior to 1/2/11 – you’re ok. Permit issued prior to 7/1/11 – you need to begin construction before 7/1/11 or you need to go through PSD “ definition of BEGIN ACTUAL CONTSTRUCTION under PSD regs”
  • GHG Emission Standards On December 23, 2010 U.S. EPA announced that it would begin setting standards for GHG emissions from stationary sources in 2011.  Initially the standards will apply to petroleum refineries and fossil fuel power plants-electric generating units (EGUs). The schedule for setting these GHG emission standards has been set by settlement agreements in court cases where several states, local governments and environmental organizations sued U.S. EPA for failing to update the pollution standards for fossil fuel power plants and petroleum refineries, two of the largest source categories of GHG emissions in the United States.   U.S. EPA’s schedule for petroleum refinery GHG standards is to propose new source performance standards (NSPS) for new and modified refineries and emission guidelines for existing refineries by December 15, 2011 and to finalize these standards by November 15, 2012.  As part of this rulemaking effort U.S. EPA will also conduct a residual risk and technology review of current air toxic standards that apply to petroleum refineries. For EGUs U.S. EPA plans to propose new source performance standards (NSPS) for new and modified EGUs and emission guidelines for existing EGUs by July 26, 2011 and to finalize these standards by May 26, 2012.
  • Recent Regulatory Initiatives Concerning Greenhouse Gases

    1. 1. Recent Regulatory Initiatives Concerning Greenhouse Gases SWEP Climate Change Series Part 6 February 7, 2011 Merritt McGlynn All4 Inc.
    2. 2. Agenda <ul><li>GHG Reporting Rule </li></ul><ul><ul><li>Amendments During 2010 </li></ul></ul><ul><li>e-GGRT </li></ul><ul><ul><li>Getting Ready to Report </li></ul></ul><ul><li>GHG Tailoring Rule </li></ul><ul><li>Future Rulemaking – GHG Emission Standards </li></ul>
    3. 3. GHG Reporting Rule <ul><li>40 CFR Part 98 – Mandatory Greenhouse Gas Reporting. </li></ul><ul><li>Effective Date – December 29, 2009 </li></ul><ul><li>Data monitoring and recordkeeping requirements began January 1, 2010. </li></ul><ul><li>Annual 2010 GHG emissions must be reported by March 31, 2011, and then annually thereafter. </li></ul>
    4. 4. GHG Reporting Rule Amendment Activity During 2010 <ul><li>Proposed Confidential Business Information (CBI) Determinations – July 2010. </li></ul><ul><ul><li>“ Inputs to emission equations” are not CBI. </li></ul></ul><ul><ul><li>Include data on production, throughput, raw material consumption. </li></ul></ul><ul><ul><li>No opportunity to claim CBI when submitting data. </li></ul></ul><ul><ul><li>Comment period ended September 7, 2010.   </li></ul></ul><ul><ul><li>More CBI action December 2010. </li></ul></ul>
    5. 5. Confidential Business Information <ul><li>December 2010 Updates to GHG Reporting Rule and Request for Comments </li></ul><ul><ul><li>Deadline for reporting 2010 “inputs to emission equations” deferred until 08/31/2011 </li></ul></ul><ul><ul><li>Proposed longer-term deferral of reporting “inputs to emission equations” until 03/31/2014 </li></ul></ul><ul><ul><li>Information Request: </li></ul></ul><ul><ul><ul><li>How public availability of “inputs to equations” harms reporters. </li></ul></ul></ul><ul><ul><ul><li>Which data is already publicly available, discernable from other publicly available info, or otherwise not sensitive </li></ul></ul></ul><ul><ul><ul><li>Additional calculation or measurement approaches that would not use sensitive data for “inputs to emissions” calculations. </li></ul></ul></ul>
    6. 6. GHG Reporting Rule Amendment Activity During 2010 <ul><li>Final new source categories – September 2010 </li></ul><ul><ul><li>Magnesium production – Subpart T </li></ul></ul><ul><ul><li>Underground coal mines – Subpart FF </li></ul></ul><ul><ul><li>Industrial wastewater treatment – Subpart II </li></ul></ul><ul><ul><li>Industrial waste landfills – Subpart TT </li></ul></ul>
    7. 7. GHG Reporting Rule Amendment Activity During 2010 <ul><li>Final amendments to General Provisions – November 2010. Applies to 2010 reports. </li></ul><ul><li>Reporters must include the following: </li></ul><ul><ul><li>Names and physical addresses of all of their U.S. parent companies and their respective percentages of ownership. </li></ul></ul><ul><ul><li>Primary NAICS code and any additional applicable NAICS codes. </li></ul></ul><ul><ul><li>Whether any reported emissions include GHG emissions from a cogeneration unit located at the facility (either yes or no). </li></ul></ul>
    8. 8. GHG Reporting Rule Amendment Activity During 2010 <ul><li>December 2010 Amendments </li></ul><ul><ul><li>Correct and clarify technical and editorial errors. </li></ul></ul><ul><ul><li>Clarify and amend certain provisions. </li></ul></ul><ul><ul><li>Affects the 2010 reporting year - </li></ul></ul><ul><ul><li>Examples of proposed changes: </li></ul></ul><ul><ul><ul><li>New exemptions that eliminate the requirement to monitor and report GHG emissions for certain types of stationary combustion sources. </li></ul></ul></ul><ul><ul><ul><li>Revised calculation methodologies. </li></ul></ul></ul>
    9. 9. GHG Reporting Rule Amendment Activity During 2010 <ul><li>New Source Categories (December 2010) </li></ul><ul><ul><li>Petroleum and Natural Gas Systems. (Subpart W) </li></ul></ul><ul><ul><li>Carbon Dioxide Injection. (Subpart UU) </li></ul></ul><ul><ul><li>Geologic Sequestration. (Subpart RR) </li></ul></ul><ul><ul><li>Electronics Manufacturing. (Subpart I) </li></ul></ul><ul><ul><li>Fluorinated Gas Production. (Subpart L) </li></ul></ul><ul><ul><li>Use of Electric Transmission and Distribution Equipment. (Subpart DD) </li></ul></ul><ul><ul><li>Imports and Exports of Equipment Pre-charged with Fluorinated GHGs or Containing Fluorinated GHGs in Closed-cell Foams. (Subpart QQ) </li></ul></ul><ul><ul><li>Electrical Equipment Manufacture or Refurbishment. (Subpart SS) </li></ul></ul>
    10. 10. GHG Reporting <ul><li>Get ready to report! March 31, 2011 deadline still in effect. </li></ul><ul><li>Important dates </li></ul><ul><li>Data checkup </li></ul><ul><li>Register to report </li></ul><ul><li>Where is U.S. EPA’s Electronic Greenhouse Gas Reporting Tool (e-GGRT)? </li></ul>
    11. 11. GHG Reporting Rule Getting Ready To Report <ul><li>Important Dates: </li></ul><ul><li>Reporter Registration: the first step in meeting GHG reporting obligations. The e-GGRT registration module is available on U.S. EPA's website. Deadline to register = January 30, 2011 . </li></ul><ul><li>Missed the deadline? U.S. EPA strongly encourages all reporters to register as soon as possible - good faith efforts to register as soon as possible after the 1/30/11 deadline will be taken into consideration. </li></ul><ul><li>GHG 2010 Emissions Reporting: March 31, 2011 deadline for facilities to report their GHG emissions remains in effect, and all facilities subject to Part 98 reporting of 2010 emissions are required to report by that date. </li></ul>
    12. 12. GHG Reporting Rule Getting Ready To Report <ul><li>Data Checkup </li></ul><ul><ul><li>Fuel usage and characteristics. </li></ul></ul><ul><ul><li>Process material quantities. </li></ul></ul><ul><ul><li>Process material carbon content. </li></ul></ul><ul><ul><li>Heat input capacity of aggregated units. </li></ul></ul><ul><ul><li>Sorbent usage. </li></ul></ul><ul><ul><li>Missing data. </li></ul></ul><ul><ul><li>Calculation tool. </li></ul></ul><ul><ul><li>“ Dry run” calculations. </li></ul></ul>
    13. 13. GHG Reporting Rule Getting Ready To Report <ul><li>U.S. EPA’s Electronic Greenhouse Gas Reporting Tool (e-GGRT) </li></ul><ul><ul><li>User registration portion available – deadline to register as a user was 1/30/2011. </li></ul></ul><ul><ul><li>Must use this system to submit Certificate of Representation (due January 30, 2011). </li></ul></ul>
    14. 14. GHG Reporting Rule Getting Ready To Report <ul><li>e-GGRT User Registration Process </li></ul><ul><li>Step 1 – System user registration </li></ul><ul><li>Step 2 – Facility registration </li></ul><ul><li>Step 3 – Identify Designated Representative </li></ul><ul><li>Step 4 – Identify Agents (optional) </li></ul><ul><li>Step 5 – DR and ADR sign and submit Certificate of Representation </li></ul>
    15. 15. GHG Tailoring Rule <ul><li>Prevention of Significant Deterioration (PSD) and Title V Greenhouse Gas (GHG) Tailoring Rule. </li></ul><ul><ul><li>Amends 40 CFR Parts 51, 52, 70 and 71. </li></ul></ul><ul><ul><li>Effective Date – August 2, 2010. </li></ul></ul><ul><ul><li>Sets timing and thresholds for addressing GHG emissions from stationary sources under Clean Air Act (CAA) permitting programs. </li></ul></ul><ul><li>GHG Tailoring Rule: real for now, despite being challenged in the courts. </li></ul>
    16. 16. GHG Tailoring Rule <ul><li>GHGs become “subject to regulation” under the CAA on January 2, 2011. </li></ul><ul><li>The Light Duty Vehicle Rule (April 2010) established GHG emission standards. </li></ul><ul><li>U.S. EPA concludes that regulating GHG tailpipe emissions triggers regulating GHG under major source permitting programs (PSD and Title V). </li></ul>
    17. 17. GHG Tailoring Rule <ul><li>Major source permitting program emission thresholds are 100 and 250 tons per year (tpy). </li></ul><ul><ul><li>Tens of thousands of new PSD permits. </li></ul></ul><ul><ul><li>Millions of new Title V permits. </li></ul></ul><ul><li>GHG Tailoring Rule “tailors” these requirements to limit facilities required to get permits for GHG emissions. </li></ul>
    18. 18. GHG Tailoring Rule <ul><li>GHG Tailoring Rule is implemented for the largest sources of GHG emissions in two (2) steps. </li></ul><ul><ul><li>Step 1 – January 2, 2011 to June 30, 2011. </li></ul></ul><ul><ul><li>Step 2 – July 1, 2011 to June 30, 2013. </li></ul></ul><ul><li>U.S. EPA will begin rulemaking in 2011 to establish requirements for smaller sources. </li></ul><ul><li>In general, sources with GHG emissions below 50,000 tpy of carbon dioxide equivalent (CO 2 e) will not be regulated for at least six (6) years. </li></ul>
    19. 19. GHG Tailoring Rule <ul><li>PSD Applicability for GHG emission sources </li></ul><ul><ul><li>Projects adding new or modifying emission units. </li></ul></ul><ul><li>Step 1 – January 2, 2011 to June 30, 2011 </li></ul><ul><ul><li>No sources become major for PSD based solely on GHG emissions. </li></ul></ul><ul><ul><li>Sources major for any PSD pollutant other than GHG will also be major for GHG if the project increases GHG emissions by 75,000 tpy CO 2 e or more. </li></ul></ul><ul><li>Step 2 – On of after July 1, 2011 </li></ul><ul><ul><li>Regardless of other PSD pollutants, the following must meet PSD permitting requirements: </li></ul></ul><ul><ul><ul><li>New sources that emit GHGs at or above 100,000 tpy CO 2 e. </li></ul></ul></ul><ul><ul><ul><li>Modifications that increase GHG emissions by at least 75,000 tpy CO 2 e. </li></ul></ul></ul>
    20. 20. GHG Tailoring Rule <ul><li>What are PSD requirements for GHG emissions? </li></ul><ul><ul><li>Must demonstrate Best Available Control Technology (BACT). </li></ul></ul><ul><li>What is BACT for GHG Emissions? </li></ul><ul><ul><li>U.S. EPA guidance. </li></ul></ul><ul><ul><li>Energy efficiency assessment is a key element. </li></ul></ul><ul><ul><li>Inherently Lower-Emitting Processes/Practices/Designs </li></ul></ul><ul><ul><li>Add-On Controls </li></ul></ul><ul><ul><li>Combinations of Inherently Lower Emitting Processes/Practices/Designs and Add-On Controls </li></ul></ul>
    21. 21. GHG Tailoring Rule <ul><li>Title V Applicability for GHG emission sources </li></ul><ul><ul><li>Applications for new permits, renewals or revisions. </li></ul></ul><ul><li>Step 1 – January 2, 2011 to June 30, 2011 </li></ul><ul><ul><li>No sources become major requiring a Title V permit based solely on GHG emissions. </li></ul></ul><ul><ul><li>Sources currently subject to Title V program for pollutants other than GHG must apply all Title V requirements to their GHG emissions. </li></ul></ul><ul><li>Step 2 – On or after July 1, 2011 </li></ul><ul><ul><li>Facilities with GHG emissions of 100,000 tpy CO 2 e or more must obtain a Title V Operating Permit if they do not already have one. </li></ul></ul>
    22. 22. GHG Tailoring Rule <ul><li>What are Title V requirements for GHG emissions? </li></ul><ul><ul><li>No current Title V requirements to control GHG. </li></ul></ul><ul><ul><li>No other current CAA requirements (e.g., NESHAP) applicable to GHG. </li></ul></ul><ul><ul><li>State rules may have requirements (e.g., monitoring, recordkeeping and reporting). </li></ul></ul><ul><ul><li>Federal GHG Reporting Rule is not a Title V requirement. </li></ul></ul>
    23. 23. GHG Tailoring Rule <ul><li>Impact on permit application process. </li></ul><ul><ul><li>Emission inventories for PSD applicability must include GHG pollutants for comparison to thresholds. </li></ul></ul><ul><ul><li>Permit applications pending may have to be reopened or amended to address GHG pollutants. </li></ul></ul><ul><ul><li>Even minor applications will need to demonstrate that thresholds are not exceeded. </li></ul></ul><ul><ul><li>Title V renewal or modification applications should explain GHG applicable requirements. </li></ul></ul>
    24. 24. GHG Tailoring Rule <ul><li>Related Proposed Rules </li></ul><ul><li>Finding of Substantial Inadequacy and SIP Call </li></ul><ul><ul><li>Require permitting programs in 13 states to make changes to their state implementation plans (SIP) to ensure GHG emissions are covered. </li></ul></ul><ul><ul><li>All other states must review their existing permitting authority and inform U.S. EPA if their programs do not address GHG emissions. </li></ul></ul><ul><li>Federal Implementation Plan </li></ul><ul><ul><li>Allow U.S. EPA to issue permits for large GHG emitters located in states not able to develop and submit revisions to their plans before January 1,2011. </li></ul></ul>
    25. 25. EPA Begins Rulemaking Process for GHG Limits <ul><li>U.S. EPA will begin setting GHG emission standards from stationary sources in 2011. </li></ul><ul><li>Additional residual risk and technology review of current air toxic standards for refineries. </li></ul><ul><li>Petroleum refineries </li></ul><ul><ul><ul><li>Proposed December 15, 2011 </li></ul></ul></ul><ul><ul><ul><li>Finalized November 15, 2012 </li></ul></ul></ul><ul><li>Fossil fuel power plants – electric generating units (EGUs) </li></ul><ul><ul><ul><li>Proposed July 26, 2011 </li></ul></ul></ul><ul><ul><ul><li>Finalized May 26, 2012 </li></ul></ul></ul>
    26. 26. Questions? Merritt McGlynn [email_address] 610.933.5246 x29 Neal Lebo [email_address] 610.933.5246 x13 All4 Inc. 2393 Kimberton Road P.O. Box 299 Kimberton, PA 19442