Update on Greenhouse Gas Rules Affecting the Lead Industry


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Update on Greenhouse Gas Rules Affecting the Lead Industry

  1. 1. Update on Greenhouse Gas RulesAffecting the Lead Industry Neal Lebo All4 Inc. ABR Spring Meeting Longboat Key, FL May 20, 2011
  2. 2. Agenda  Terms of Art  Greenhouse Gas (GHG) Reporting Rule • Amendments • Confidential Business Information (CBI) • Electronic Greenhouse Gas Reporting Tool  GHG Tailoring Rule • Implementation • Impact on Permit Application Process2
  3. 3. Terms of Art  What gases are considered GHG? • Six (6) recognized greenhouse gases (GHG)  Carbon dioxide (CO2)  Methane (CH4)  Nitrous oxide (N2O)  Hydrofluorocarbons (HFC)  Perfluorocarbons (PFC)  Sulfur hexafluoride (SF6)3
  4. 4. Terms of Art  Global Warming Potential (GWP) A measure of how much a given mass of GHG is estimated to contribute to global warming. It is a relative scale which compares the gas in question to CO2. GHG GWP CO2 1 Methane 21 N2O 310 HFC-32 650 PFC-14 6,500 SF6 23,9004
  5. 5. Terms of Art  Emissions measured in CO2 equivalency (CO2e). Each gas placed on CO2e basis by multiplying GWP.  For GHG Reporting Rule emissions are measured in metric tons. 1 metric ton = 2,204.62 lbs  For GHG Tailoring Rule emissions are measured in short tons. 1 short ton = 2,000 lbs 1 short ton = 0.907186 metric tons5
  6. 6. GHG Reporting Rule  Effective Date – December 29, 2009.  Established 40 CFR Part 98 – Mandatory Greenhouse Gas Reporting. • Subpart A - General Provisions • Subparts C to PP - Specific Source Categories  Data monitoring and recordkeeping requirements began January 1, 2010.  Annual GHG emissions must be reported by March 31 of each year (except this year).  Lead smelters that emit ≥ 25,000 mtCO2e/yr combined from all listed sources must report.6
  7. 7. GHG Reporting Rule Amendments Since Promulgation  7/12/2010 – Added new source categories and amended General Provisions.  9/22/2010 – Added reporting of corporate parent, NAICS Code, and co-generation information.  10/28/2010 – Made technical corrections, clarifications, and other amendments to various provisions of Part 98.  11/30/2010 – Added new source category and amended General Provisions.7
  8. 8. GHG Reporting Rule Amendments Since Promulgation  12/1/2010 – Added new source categories and amended General Provisions.  12/17/2010 – Revisions to various provisions of Part 98.  12/27/2010 – Deferral of the reporting date for certain data elements.  3/18/2011 – Extension of reporting deadline for year 2010 data.8
  9. 9. GHG Reporting Rule CBI  Proposed Confidential Business Information (CBI) Determinations – July 2010. • “Inputs to emission equations” are not CBI. This includes data on production, throughput, raw material consumption.  In response to comments, in December 2010 U.S. EPA: • Issued interim rule to defer reporting of inputs to emission equations until August 31, 2011. • Proposed a rule to further defer reporting of inputs to emission equations until March 31, 2014. • Issued a Call for Information (CFI) on Inputs to Emission Equations Under the GHG Reporting Rule.9
  10. 10. GHG Reporting Rule CBI  ABR submitted a response to the CFI: • Designation of inputs as “emission data” is legally improper. • Public availability of inputs to emission equations causes harm. • Inputs to emission equations are kept confidential. • No comparable additional calculation or measurement approaches exist that do not use sensitive information. • There are alternative verification approaches not requiring release of sensitive business information.10
  11. 11. GHG Reporting Rule When To Report?  March 18, 2011 – U.S. EPA extended the deadline for reporting 2010 GHG data to September 30, 2011. • Allow U.S. EPA to further test the reporting system. • Give industry the opportunity to test the reporting tool, provide feedback, and become familiar with it prior to reporting. Action Initial Deadline New Deadline User Registration January 30, 2011 August 1, 2011 Data Entry – 2010 March 31, 2011 September 30, 2011 Emissions11
  12. 12. GHG Reporting Rule How To Report?  U.S. EPA’s Electronic Greenhouse Gas Reporting Tool • User registration. • Certificate of Representation. • Data entry and submittal.12
  13. 13. GHG Reporting Rule e-GGRT Unveiled  U.S. EPA webinars throughout May. • Instruction on how to use e-GGRT to report under different source category subparts. • Webinars focused on 13 of the 25 source category subparts that report 2010 emissions.  In June there will be an opportunity to test-drive e-GGRT. • A “sandbox” test environment in which users can play, uploading test data in the reporting screens for the various subparts covered by 40 CFR Part 98.13
  14. 14. GHG Reporting Rule How To Report?14
  15. 15. GHG Reporting Rule No Time to Rest  An accurate, written GHG Monitoring Plan is a rule requirement. • If you wrote your Plan based on the original rule, it needs to be updated. • Addressing all the amendments means making a lot of revisions throughout the Plan.  If you developed a calculation tool based on the original rule it will probably need to be updated.  Calculate your 2010 GHG emissions now and have them ready to report. • You will want to find out if you have any data gaps now before the deadline approaches.15
  16. 16. GHG Tailoring Rule  Prevention of Significant Deterioration (PSD) and Title V Greenhouse Gas (GHG) Tailoring Rule. • Amends 40 CFR Parts 51, 52, 70, and 71. • Effective Date – August 2, 2010. • Sets timing and thresholds for addressing GHG emissions from stationary sources under Clean Air Act (CAA) permitting programs.16
  17. 17. GHG Tailoring Rule How Did We Get Here?  2007 Supreme Court Decision in Massachusetts vs. EPA.  The Light Duty Vehicle Rule (April 2010) established GHG emission standards.  GHGs become “subject to regulation” under the CAA on January 2, 2011.  U.S. EPA concludes that regulating GHG tailpipe emissions triggers regulating GHG under major source permitting programs (PSD and Title V).17
  18. 18. GHG Tailoring Rule What Does It Do?  Major source permitting program emission thresholds are 100 and 250 tons per year (tpy).  Without the GHG Tailoring Rule: • Tens of thousands of new PSD permits. • Millions of new Title V permits.  GHG Tailoring Rule “tailors” these requirements to limit facilities required to get permits for GHG emissions.18
  19. 19. GHG Tailoring Rule Implementation  GHG Tailoring Rule is implemented for the largest sources of GHG emissions in two (2) steps. • Step 1 – January 2, 2011 to June 30, 2011. • Step 2 – July 1, 2011 to at least June 30, 2013.  U.S. EPA will begin rulemaking in 2011 to establish requirements for smaller sources. Any new requirements will be effective July 1, 2013.  In general, sources with GHG emissions below 50,000 tpy of carbon dioxide equivalent (CO2e) will not be regulated for at least six (6) years.19
  20. 20. GHG Tailoring Rule Implementation - PSD  PSD Applicability for GHG emission sources. • Projects adding new or modifying emission units.  Step 1 – January 2, 2011 to June 30, 2011. • No sources become major for PSD based solely on GHG emissions. • 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 CO2e or more.  Step 2 – July 1, 2011 to at least June 30, 2013. • Regardless of other PSD pollutants, the following must meet PSD permitting requirements:  New sources that emit GHGs at or above 100,000 tpy CO2e.  Modifications that increase GHG emissions by at least 75,000 tpy CO2e.20
  21. 21. GHG Tailoring Rule Implementation – Title V  Title V Applicability for GHG emission sources. • Applications for new permits, renewals or revisions.  Step 1 – January 2, 2011 to June 30, 2011. • No sources become major requiring a Title V permit based solely on GHG emissions. • Sources currently subject to Title V program for pollutants other than GHG must apply applicable Title V requirements to their GHG emissions.  Step 2 – July 1, 2011 to at least June 30, 2013. • Facilities with GHG emissions of 100,000 tpy CO2e or more must obtain a Title V Operating Permit if they do not already have one.21
  22. 22. GHG Tailoring Rule Implementation – Title V  What are Title V requirements for GHG emissions? • GHG currently “subject to regulation” but not a “regulated pollutant” (e.g., regulated under Section 111 or 112 of the CAA). • No current Title V requirements to control GHG. • No other current CAA requirements (e.g., NESHAP, NSPS) applicable to GHG. • State rules may have requirements (e.g., monitoring, recordkeeping and reporting). • Federal GHG Reporting Rule is not a Title V requirement.22
  23. 23. GHG Tailoring Rule Impact on Permit Application Process  Emission inventories for PSD applicability must include GHG pollutants for comparison to thresholds.  Permit applications pending may have to be reopened or amended to address GHG pollutants.  Even minor applications will need to demonstrate that thresholds are not exceeded.  Title V renewal or modification applications should explain GHG applicable requirements.23
  24. 24. Future GHG Rulemaking Impacts  U.S. EPA plans to issue NSPS for Fossil Fuel-Fired Electric Generating Units (EGU) with GHG as a pollutant in May 2012.  GHG will become a “regulated pollutant” for Title V purposes.  Title V applications will need to be updated with GHG information including: • GHG emission information for existing emission units. • Add new emission units that emit only GHG. • Reclassify insignificant units as significant due to GHG emissions.24
  25. 25. Future GHG Legislative & Legal Impacts  Proposed legislation in both U.S. House of Representatives and U.S. Senate to postpone or pre-empt U.S. EPA regulation of GHG emissions under the CAA.  Numerous legal challenges to U.S. EPA GHG Regulations are proceeding through the courts.25
  26. 26. Questions? nlebo@all4inc.com (610) 933-5246, extension 13 All4 Inc. 2393 Kimberton Road P.O. Box 299 Kimberton, PA 19442 www.all4inc.com26