1. Air Quality Training Seminar
Tony Owens
John Egan
Colin McCall
ALL4 Inc.
Alabama Center for Commerce
Montgomery, AL
December 7, 2010

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. Greenhouse Gas Tailoring Rule
Tony Owens
All4 Inc.
All4 Inc. Air Quality Training Seminar
Montgomery, AL
December 7, 2010

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.