Recent Regulatory Initiatives Concerning Greenhouse Gases

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Recent Regulatory Initiatives Concerning Greenhouse Gases

  1. 1. Recent Regulatory Initiatives Concerning Greenhouse Gases ABR Fall Meeting Las Vegas, NV October 22, 2010 Neal Lebo All4 Inc.
  2. 2. Agenda <ul><li>GHG Reporting Rule </li></ul><ul><ul><li>Amendments During 2010 </li></ul></ul><ul><ul><li>Getting Ready to Report </li></ul></ul><ul><li>GHG Tailoring Rule </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><ul><li>Lead smelters that emit ≥ 25,000 mtCO 2 e/yr combined from all listed sources must report. </li></ul>
  4. 4. 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>
  5. 5. 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>
  6. 6. GHG Reporting Rule Amendment Activity During 2010 <ul><li>Final technical corrections, clarifying and other amendments – signed but not yet published </li></ul><ul><ul><li>To correct certain errors and to clarify provisions that have been the subject of questions from reporting entities.  </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>
  7. 7. 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>
  8. 8. GHG Reporting Rule Amendment Activity During 2010 <ul><li>Proposed New Source Categories </li></ul><ul><ul><li>Petroleum and Natural Gas Systems. </li></ul></ul><ul><ul><li>Carbon Dioxide Injection and Geologic Sequestration. </li></ul></ul><ul><ul><li>Electronics Manufacturing. </li></ul></ul><ul><ul><li>Fluorinated Gas Production. </li></ul></ul><ul><ul><li>Use of Electric Transmission and Distribution Equipment. </li></ul></ul><ul><ul><li>Imports and Exports of Equipment Pre-charged with Fluorinated GHGs or Containing Fluorinated GHGs in Closed-cell Foams. </li></ul></ul><ul><ul><li>Manufacture of Electric Transmission and Distribution Equipment. </li></ul></ul>
  9. 9. GHG Reporting Rule Getting Ready To Report <ul><li>Upcoming Deadlines </li></ul><ul><ul><li>January 30, 2011:  Certificate of Representation due. </li></ul></ul><ul><ul><li>March 31, 2011:  2010 Annual Greenhouse Gas Report due. </li></ul></ul>
  10. 10. 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>
  11. 11. 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 expected to be online this fall. </li></ul></ul><ul><ul><li>Must use this system to submit Certificate of Representation (due January 30, 2011). </li></ul></ul>
  12. 12. 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><ul><li>User account specific to individual. </li></ul></ul><ul><ul><li>Current Central Data Exchange (CDX) user name and password can be used to log in. </li></ul></ul><ul><ul><li>Security features. </li></ul></ul><ul><ul><li>Electronic Signature Agreement (ESA) </li></ul></ul><ul><ul><ul><li>Print, sign and mail in. </li></ul></ul></ul><ul><ul><ul><li>U.S. EPA review for completeness before account is activated. </li></ul></ul></ul>
  13. 13. GHG Reporting Rule Getting Ready To Report <ul><li>e-GGRT User Registration Process </li></ul><ul><li>Step 2 – Facility registration </li></ul><ul><ul><li>Set up facility profile. </li></ul></ul><ul><ul><ul><li>Location, owners/operators. </li></ul></ul></ul>
  14. 14. GHG Reporting Rule Getting Ready To Report <ul><li>e-GGRT User Registration Process </li></ul><ul><li>Step 3 – Identify Designated Representative </li></ul><ul><ul><li>All facilities must have a Designated Representative (DR) to submit reports. </li></ul></ul><ul><ul><li>Identify yourself or someone else. </li></ul></ul><ul><ul><li>DR must be a registered e-GGRT user. </li></ul></ul><ul><ul><li>Electronic invitation sent for acceptance. </li></ul></ul><ul><ul><li>Can also designate Alternate Designated Representative (ADR) (optional). </li></ul></ul>
  15. 15. GHG Reporting Rule Getting Ready To Report <ul><li>e-GGRT User Registration Process </li></ul><ul><li>Step 4 – Identify Agents (optional) </li></ul><ul><ul><li>DR or ADR delegates authority to make electronic submissions for the facility. </li></ul></ul><ul><ul><li>Agent must be a registered e-GGRT user. </li></ul></ul><ul><ul><li>Electronic invitation sent for acceptance. </li></ul></ul><ul><ul><li>DR or ADR must confirm. </li></ul></ul>
  16. 16. GHG Reporting Rule Getting Ready To Report <ul><li>e-GGRT User Registration Process </li></ul><ul><li>Step 5 – DR and ADR sign and submit Certificate of Representation </li></ul><ul><ul><li>Establishes the DR/ADR's authority to certify, sign, and submit annual GHG reports. </li></ul></ul><ul><ul><li>Electronic invitation sent. </li></ul></ul><ul><ul><li>Each facility must have a complete Certificate of Representation by January 30, 2011. </li></ul></ul>
  17. 17. GHG Reporting Rule Getting Ready To Report <ul><li>e-GGRT User Registration Process </li></ul><ul><li>Step 5 (cont.) – DR and ADR sign and submit Notice of Delegation for Agents </li></ul><ul><ul><li>Delegates authority to submit annual GHG reports. </li></ul></ul><ul><ul><li>Electronic invitation sent. </li></ul></ul>
  18. 18. 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>
  19. 19. 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>
  20. 20. 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>
  21. 21. 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>
  22. 22. 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 – July 1, 2011 to June 30, 2016 </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>
  23. 23. 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 will be issuing guidance soon. </li></ul></ul><ul><ul><li>Energy efficiency assessment is expected to be a key element. </li></ul></ul>
  24. 24. 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 – July 1, 2011 to June 30, 2016 </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>
  25. 25. 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>
  26. 26. 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>
  27. 27. 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>
  28. 28. Questions? [email_address] (610) 933-5246, extension 13 All4 Inc. 2393 Kimberton Road P.O. Box 299 Kimberton, PA 19442 www.all4inc.com

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