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AWMA Southern SectionConference

August 4, 2011

Heather CeronUS EPA Region 4

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Greenhouse Gases

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EPA’s Greenhouse Gas Endangerment Finding Endangerment Finding: Current and projected concentrations of

the six key well-mixed GHGs in the atmosphere threaten the public health and welfare of current and future generations

Cause or Contribute Finding: The combined emissions of these

well-mixed GHGs from new motor vehicles and new motor vehicle engines contribute to the greenhouse gas pollution which threatens public health and welfare

Final Rule published in Federal Register December 15, 2009

Greenhouse Gases (GHGs)

• Carbon Dioxide (CO2)• Methane (CH4)• Nitrous Oxide (N2O)• Hydrofluorocarbons (HFC)• Perfluorocarbons (PFC)• Sulfur Hexafluoride (SF6)

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Mobile Source GHG/CAFE Standards

First national GHG emissions standards under the Clean Air Act

Satisfies requirements under both Federal programs and the standards of California and other states

Applies to passenger cars, light-duty trucks, and medium-duty passenger vehicles, covering model years 2012 through 2016

Meet an estimated combined average emissions level of 250 g CO2 per mile in model year 2016, equivalent to 35.5 mpg if the automotive industry were to meet this CO2 level all through fuel economy improvements

These standards will cut greenhouse gas emissions by an estimated 960 million metric tons and 1.8 billion barrels of oil over the lifetime of the vehicles sold under the program (model years 2012-2016)

Final rule signed April 1, 2010Next up: Fuel efficiency/reduce GHG emissions from Model Year 2014 through 2018 medium- and heavy duty trucks and an

additional set of GHG emissions standards for cars/light trucks for MYs 2017 and beyond.

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What about stationary sources of GHGs?

“Tailoring Rule”

Final Rule issued May 13, 2010

Establishes thresholds for GHG emissions

Define when permits under the New Source Review Prevention of Significant Deterioration (PSD) and title V Operating Permit programs are required for new and existing industrial facilities

“Tailors" the requirements of these CAA permitting programs to limit which facilities will be required to obtain PSD and title V permits

Facilities responsible for nearly 70 percent of the national GHG emissions from stationary sources will be subject to permitting requirements

Includes the nation's largest GHG emitters - power plants, refineries, and cement production facilities

IMPORTANT!

FL has not taken delegation of the GHG permitting program. GHG permits for FL

industry are currently issued by

EPA Region 4 in Atlanta

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Permitting Timeline Under the Tailoring Rule

2011 2012 2013 2014 2015

Study Complete

2016

Step 1: Source already subject to PSD “anyway” (tpy CO2e) New source: N/A Modification: 75,000

Step 2: All Stationary Sources (tpy CO2e)New source: 100,000Modification: 75,000

Step 3: Implementation of potential additional phase-in and streamlining options

5-year study: To examine GHG permitting for smaller sources

Implementation of rule based on 5-year study

July 1, 2011 new thresholds

subject to regulation

began

New/Updated information on NSR GHG Permitting is frequently added to the following website: http://www.epa.gov/nsr/ghgpermitting.html

Biomass Permitting - Latest Development

EPA temporary defers certain CO2 emissions from PSD and Title V permitting July 1, 2011 - This final rule defers, for a period of three years,

greenhouse gas (GHG) permitting requirements for carbon dioxide (CO2) emissions from biomass-fired and other biogenic sources.

A scientific analysis will be conducted during the 3 year deferral to consider issues that the Agency must resolve in order to account for biogenic CO2 emissions in ways that are scientifically sound and also manageable in practice

Interim guidance was issued to assist facilities and permitting authorities with permitting decisions until the Proposed Rule was finalized

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New Source Performance Standards (NSPS) – Latest Development

On 12/23/10, EPA entered into two proposed settlement agreements to issue rules that will address greenhouse gas emissions from fossil fuel-fired power plants and refineries

These two industrial sectors make up nearly 40% of U.S. GHG emissions

EPA will propose standards for power plants by September 30, 2011 (New Date) and for refineries in December 2011 and will issue final standards in May 2012 and November 2012, respectively

EPA held 5 listening sessions to get feedback from stakeholders

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http://www.epa.gov/airquality/ghgsettlement.html

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GHG Permitting ToolsEPA is providing the following:Technical White Papers:

utilities, refineries, cement, large commercial/industrial/institutional boilers, pulp and paper, iron and steel, nitric acid plants , landfills

Control Technology Clearinghouses RACT/BACT/LAER, GHG Mitigation Strategies

GHG Permitting Action TeamGHG Question & Answers OnlineGHG Training for States, Industry and Other

Interested StakeholdersWebsites for GHG permitting resources

Greenhouse Gas Reporting Program (GHGRP)

Required by FY08 Public Law 110–161 Purpose is to collect accurate and timely GHG data to inform

future policy decisions

EPA issued Mandatory Reporting of Greenhouse Gases Rule (74 FR 5620) Requires reporting of GHG emission

data from specific entities in the U.S. GHG suppliers Direct emitting source categories Facilities that inject CO2 underground

First reports (for CY10) are NOW due to EPA by September 30, 2011 (EPA has granted an extension for this firstyear of reporting) 10http://epa.gov/climatechange/emissions/ghgrulemaking.html

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So far, we are seeing……Metric tons instead of short tonsCO2e based PALSIP specific differences Biomass deferral (check with your Permitting

Authority)

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Contact InformationEPA Region 4 points of contact on the

Tailoring Rule, its implementation and development of GHG guidance Katy Forney, forney.kathleen@epa.govHeather Ceron, abrams.heather@epa.gov

EPA’s GHG website - www.epa.gov/nsr/ghgpermitting.html

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Conclusion and SummaryTailoring Rule reduces burden on State

and Local permitting AuthoritiesGHG emissions regulated as a single

pollutantBiomass CO2 emissions are deferred from

applicabilityGHG BACT is likely to be Energy

Efficiency measuresGHG Permitting Tools and Training

Available