Greenhouse Gas Tailoring Rule


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Greenhouse Gas Tailoring Rule

  1. 1. Air Quality Training Seminar Tony Owens John Egan Colin McCall ALL4 Inc. Alabama Center for Commerce Montgomery, AL December 7, 2010
  2. 2. Training Seminar Agenda Greenhouse Gas Tailoring Rule 4 Rules Update Lunch Implications of the New NAAQS MACT SSM – The New Approach “Affirmative Defense” Radar Screen Issues
  3. 3. Greenhouse Gas Tailoring Rule Tony Owens All4 Inc.All4 Inc. Air Quality Training Seminar Montgomery, AL December 7, 2010
  4. 4. Agenda GHG Tailoring Rule Background • PSD Applicability and Requirements • Title V Applicability and Requirements • Impact on Permit Application Process • The Future? GHG Reporting Rule • Getting Ready to Report
  5. 5. 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
  6. 6. GHG Tailoring Rule 2007 Supreme Court decision in Massachusetts v. EPA found that U.S. EPA must determine if GHG emissions from motor vehicles contribute to air pollution. One year ago today U.S. EPA Administrator issued finding that GHGs endanger public health and welfare. (Happy Anniversary!) April 2010 Light Duty Vehicle Rule 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 GHGs under major source permitting programs (PSD and Title V).
  7. 7. GHG Tailoring Rule Major source permitting program emission thresholds are 100 and 250 tons per year (tpy). • 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.
  8. 8. GHG Tailoring Rule 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 June 30, 2013 U.S. EPA will begin rulemaking in 2011 to establish requirements for smaller sources. 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.
  9. 9. GHG Tailoring Rule For PSD and Title V, GHG is defined as a single pollutant quantified by summing six (6) specific gases evaluated using a common metric of carbon dioxide equivalent (CO2e). This is referred to as the “Sum-of-Six Well-Mixed GHG”.  Carbon dioxide (CO2)  Methane (CH4)  Nitrous Oxide (N2O)  Hydrofluorocarbons (HFC)  Perfluorocarbons (PFC)  Sulfur hexafluoride (SF6)
  10. 10. GHG Tailoring Rule 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 June 30, 2016 • 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
  11. 11. GHG Tailoring Rule What are PSD requirements for GHG emissions? • Must demonstrate Best Available Control Technology (BACT) What is BACT for GHG Emissions? • Guidance for state and local permitting authorities included in PSD and Title V Permitting Guidance For Greenhouse Gases issued by U.S. EPA on November 10, 2010
  12. 12. GHG Tailoring Rule PSD Permitting Guidance for GHGs • Does not prescribe GHG BACT for sources. • Reiterates that BACT will continue to be a state and project specific decision. • Emphasizes importance of BACT options that improve energy efficiency. • Confirms use of the traditional five-step process for determining BACT for GHGs. • Identifies technical resources related to GHG emissions and controls. • Illustrates methods for calculating GHG emissions for PSD evaluations.
  13. 13. GHG Tailoring Rule 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 all Title V requirements to their GHG emissions. Step 2 – July 1, 2011 to June 30, 2016 • 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.
  14. 14. GHG Tailoring Rule What are Title V requirements for GHG emissions? • No current Title V requirements to control GHG. • No other current CAA requirements (e.g., NESHAP) applicable to GHG. • State rules may have requirements (e.g., monitoring, recordkeeping and reporting). • Federal GHG Reporting Rule is not a Title V requirement.
  15. 15. GHG Tailoring Rule Title V Permitting Guidance for GHGs • Applies long-standing permitting requirements and processes to GHGs. • Confirms that initially the only Federal Title V requirements applicable to GHGs will be those associated with any PSD-related controls. • Acknowledges that permitting authorities may need to raise Title V emissions fees and offers assistance in establishing Title V fees related to GHG emissions.
  16. 16. 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.
  17. 17. GHG Tailoring Rule Related Rules Finding of Substantial Inadequacy and SIP Call • Signed as a final rule by U.S. EPA Administrator December 1, 2010 but not yet published in the Federal Register • Requires permitting programs in 13 states to make changes to their state implementation plans (SIP) to ensure GHG emissions are covered. Federal Implementation Plan • Still a proposed rule but finalization is imminent. • 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.
  18. 18. GHG Tailoring Rule The Future ? Numerous legal challenges • Courts have committed to rule on a stay of GHG rules by the end of 2010. Possible Congressional Action • Lots of noise from GOP leaders that action will be taken in early 2011 to block implementation of GHG rules by U.S. EPA.
  19. 19. GHG Reporting Rule 40 CFR Part 98 – Mandatory Greenhouse Gas Reporting. Effective Date – December 29, 2009. Data monitoring and recordkeeping requirements began January 1, 2010. Annual 2010 GHG emissions must be reported by March 31, 2011, and then annually thereafter. Numerous amendments during 2010. • Changes to existing requirements that impact the current year reporting. • Adding new source categories which will have to report starting next year.
  20. 20. GHG Reporting Rule Getting Ready To Report Upcoming Deadlines • January 30, 2011: Certificate of Representation due. • March 31, 2011: 2010 Annual Greenhouse Gas Report due.
  21. 21. GHG Reporting Rule Getting Ready To Report Data Checkup • Fuel usage and characteristics. • Process material quantities. • Process carbon chemistry. • Heat input capacity of aggregated units. • Missing data. • Calculation tool. • “Dry run” calculations.
  22. 22. GHG Reporting Rule Getting Ready To Report U.S. EPA’s Electronic Greenhouse Gas Reporting Tool (e-GGRT) • User registration portion expected to be online this fall. • Must use this system to submit Certificate of Representation (due January 30, 2011) and annual reports. • No information available yet on what the reporting portion will look like.