Response to Comments on HAR Amendments

Clean Air Branch

Greenhouse Gas Rules Stakeholders Meeting10/18/2013

State GHG Requirements In 2007, Act 234 was

enacted. Act 234 required: 1) Statewide GHG limit set to

1990 levels. To be achieved by 2020.

2) DOH to adopt GHG rules to ensure GHG limit is met.

Background

Federal GHG Requirements In 2007, GHG emissions

became regulated. In 2009, Mandatory GHG

Reporting Rules. In 2010, Tailoring Rule

regulates GHG emissions under PSD and Title V.

In 2013, President’s Climate Action Plan directs EPA to issue GHG rules for power plants.

Background

Public Comment Period Public hearings in November

2012. Comment period extended

from 12/7/2012 to 1/14/2013. 18 testifiers submitted oral

testimony at the hearings. 23 commenters submitted

written comments .

Introduction

Results of Comments Received GHG cap revised from 25% to 16%. Public participation for GHG

reduction plan approvals. Deadline for GHG reduction plans

extended to 12 months. Landfills with controls exempt from

GHG cap. No retroactive GHG fees. Revised definition of “subject to

regulation”

Introduction

Comments Addressed Scope of Authority Life Cycle Assessment Facility Wide GHG Cap GHG Emissions Reduction Plan Partnering MWC & MSW Landfills

exemption GHG Fees BACT Threshold Definition of “Subject to

Regulation”

Comments Addressed

Scope of Authority Two separate sources of

authority:1) General powers under

342B-3, HRS and specific powers under 342b-12.

2) Subpart VI, 342B, HRS (Act 234).

Scope of Authority

Life Cycle Assessment (LCA)

DOH will not apply LCA at this time.

Neither EPA nor any other state nationwide applies LCA to stationary sources.

DOH recognizes the merits of LCA.

LCA

Facility-Wide GHG Emissions Cap

A. Cap changed from 25% to 16%.

B. Alternate cap based on GHG Control Assessment.

C. Alternate Baseline Year.

Facility-wide GHG Cap

GHG Cap change from 25% to 16% (A)Parameter Initial 25% Percent

ReductionRevised 16% Percent Reduction

2010 affected facility actual emissions

Questionable DOH emission estimates for 3 facilities

Used GHGRP values instead of DOH estimates

2010 affected facility actual emissions

Questionable GHGRP value reported for 4th facility

Used EPA emission factors for 4th facility

State-wide 2010 emissions

Based on 2007 estimated emissions

Based on 2010 emissions projected

2010 affected facility actual emissions from MWC operations

No No

2010 affected facility actual emissions from MSW landfills

Yes No

Facility-wide GHG Cap

Facility-wide GHG Cap GHG Cap change from 25% to 16% (A)

Facility-wide GHG Cap GHG Cap change from 25% to 16%

(A)

Alternate Cap and GHG Control Assessment (B)

Facility must conduct a GHG control assessment.

Similar to BACT analysis. Director may approve an

alternate cap. Cap will be incorporated into

facility’s air permit.

Facility-wide GHG Cap

Alternate GHG Cap Baseline Year (C)

2010 is the default baseline year.

May propose an alternate baseline year

Methods to determine alternate baseline year are in HAR.

Facility-wide GHG Cap

GHG Emission Reduction PlanA. Director’s Discretion and

Public Participation.B. GHG Emission Reduction

Plan Deadline.

GHG Emission Reduction Plan

Director’s Discretion and Public Participation (A)

Provisions for public participation are in HAR 11-60.1-205.

Provisions for contested case hearings are in HAR 11-60.1-206.

GHG Emission Reduction Plan

GHG Emission Reduction Plan Deadline (B)

Extended deadline to 12 months from the effective date of the rules.

Provisions for extending the deadline.

GHG Emission Reduction Plan

Proposed Control Strategy – Partnering

Partnering sources propose emissions above or below the facility-wide cap.

Each partner agrees to a revised emission level.

Revised GHG emissions cap placed in permit.

Each partner responsible for meeting its own cap.

Proposed Control Strategy - Partnering

MWC & MSW Landfill Exemptions MWC operations

1) MWC reduce waste going into landfills.2) GHGs from MWC have minor effect on

reduction levels.

MSW Landfills with controls

1) Landfill controls significantly reduce GHG emissions.

2) GHG from landfills with controls have minor effect on reduction levels.

MWC Operations and MSW Landfills

BACT Applicability Threshold State BACT threshold remains at 40,000 tpy

CO2e. State threshold is lower than 75,000 tpy CO2e

federal threshold. Lower state threshold will regulate emission

growth from new sources.

BACT Applicability Threshold

GHG Fees Draft rules were amended

to charge fees only after rules adoption.

Fees for GHG starts in 2015.

GHG Fees

Definition of “Subject to Regulation” Consistent with federal

definition Temporary exemption of

biogenic CO2 emissions removed.

Definition of Subject to Regulation

Where is Project Now? GHG Rules are being

circulated for approval DOH will send

notification to all commenters after rules are adopted.

Conclusion

Questions ? Additional informationClean Air Branch (808) 586-4200www.health.hawaii.gov/cab/

Conclusion

GHG Rules Emission Reduction

Covered (EPA GHGRP & DOH Data) “Missing”

2010 Statewide Total Stationary (ICF)

1990 Statewide Total Stationary (ICF)

Required Stationary Reduction

S = Small Large (> 100k CO2e Short Ton/yr)S

AffectedE = Exempted E

Key Input Revisions

Large Covered

2010 Statewide Total

Drives

“Missing” ES X 12%=

Uncontrolled

UncontrolledGrowth

“Missing” ES X 12%+

Affected=Affected Source %

Reduction

Total Required Reduction

Draft Rules (original)

Draft Rules (corrected)

Revised Rules

2010 2010 2010

1990 Statewide Total 8,930.00 8,930.00 8,930.00

Required Stationary Reduct. 1,930.00 1,015.00 1,015.00

Missing 605.08 590.33 590.33

Small 233.51 233.51 233.51

Large 10,021.40 9,121.16 9,121.16

Exempted 191.94 191.94 352.86

Affected 9,829.46 8,929.22 8,768.30

Uncontrolled 1,030.54 1,015.78 1,176.70

Uncontrolled Growth 123.66 121.89 141.20

Total Required Reduction 2,053.66 1,136.89 1,156.20

Affected Source % Reduct. 20.89% 12.73% 13.19%

10,860.00 9,945.00 9,945.00

GHG Rules Stationary Sources Emission Reduction Information (units = 1000 CO2e metric tons)

10,254.92 9,354.67 9,354.67

2010 Statewide Total

Covered