EPA Region IV December 11-12, 2007 Atlanta, GA Case Study: Permitting Mississippi’s Experiences.

EPA Region IV EPA Region IV December 11-12, 2007December 11-12, 2007

Atlanta, GA Atlanta, GA

Case Study: PermittingCase Study: Permitting

Mississippi’s ExperiencesMississippi’s Experiences

Three Permitted SitesThree Permitted Sites– None have completed constructionNone have completed construction

Two Sites with Permits PendingTwo Sites with Permits Pending– One received approval to begin construction prior One received approval to begin construction prior

to receiving permit to receiving permit Met specific criteria for pre-permit construction Met specific criteria for pre-permit construction

approvalapproval

– One application is under our normal processingOne application is under our normal processing

Ethanol ProductionEthanol Production

Processing efficiency has improved Processing efficiency has improved during the last 30 years.during the last 30 years.

In 2005, the use of ethanol reduced In 2005, the use of ethanol reduced the U.S. trade deficit by $8.7 billion by the U.S. trade deficit by $8.7 billion by eliminating the need to import 170 eliminating the need to import 170 million barrels of oil.million barrels of oil.– Source: LECG, LLC January 2006Source: LECG, LLC January 2006

Ethanol ProductionEthanol Production

Nine Permitted SitesNine Permitted Sites

Only a few have been constructed and Only a few have been constructed and are producing.are producing.

BiodieselBiodiesel

Two Sites with Permits PendingTwo Sites with Permits Pending

Additional Pre-Application Meetings Additional Pre-Application Meetings Conducted Conducted

BiodieselBiodiesel

Production IncentivesProduction Incentives– 2002 Farm Bill2002 Farm Bill

Commodities Credit CorporationCommodities Credit Corporation

– MS House Bill 1130 of 2002MS House Bill 1130 of 2002 Established ethanol production incentives outlined in Established ethanol production incentives outlined in

MS Code 69-51-5.MS Code 69-51-5.

– MS House Bill 960 of 2005MS House Bill 960 of 2005 Revised 69-51-5 to include biodiesel production Revised 69-51-5 to include biodiesel production

incentivesincentives

– MS 69-51-5 remains an unfunded programMS 69-51-5 remains an unfunded program

Tax IncentivesTax Incentives– IRS Tax CreditsIRS Tax Credits

Driving FactorsDriving Factors

Clean Air ActClean Air Act– New Source ReviewNew Source Review

Major Source Threshold?Major Source Threshold?

– New Source Performance StandardsNew Source Performance Standards– NESHAPNESHAP

Specific MACT?Specific MACT?

State RequirementsState Requirements

Applicable Air Applicable Air Emission RegulationsEmission Regulations

Clean Water ActClean Water Act– NPDES Effluent Guidelines?NPDES Effluent Guidelines?– NPDES Storm WaterNPDES Storm Water

State RequirementsState Requirements– Pretreatment Effluent Guidelines?Pretreatment Effluent Guidelines?– Pretreatment SIU?Pretreatment SIU?– No Discharge Permit?No Discharge Permit?

Applicable Wastewater and Applicable Wastewater and Storm Water DischargesStorm Water Discharges

Very little from EPA prior to 2006Very little from EPA prior to 2006

Considered what other states had done in Considered what other states had done in permitting permitting – Varied somewhatVaried somewhat

Practical GuidancePractical Guidance

Most proposed ethanol and biodiesel production facilities Most proposed ethanol and biodiesel production facilities identified 2869 as the appropriate SIC Code. identified 2869 as the appropriate SIC Code. (Industrial Organic (Industrial Organic Chemicals, Not Elsewhere Classified)Chemicals, Not Elsewhere Classified)

EPA clarified the major source threshold for NSR May 1, EPA clarified the major source threshold for NSR May 1, 2007.2007.

Evaluate NSPS applicabilityEvaluate NSPS applicability– Subparts A, RRR, NNN, VV, etc.Subparts A, RRR, NNN, VV, etc.

Evaluate MACT applicabilityEvaluate MACT applicability– Subparts A, B, FFFF, GGGG, etc.Subparts A, B, FFFF, GGGG, etc.

Conservative ApproachConservative Approach

Air EmissionsAir Emissions

Multimedia Multimedia Guidance for Guidance for

Ethanol Ethanol ProductionProduction

http://www.epa.gov/region07/priorities/agriculture/ethanol_plants_manual.pdfhttp://www.epa.gov/region07/priorities/agriculture/ethanol_plants_manual.pdf

NPDES Storm Water ConstructionNPDES Storm Water Construction NPDES Storm Water BaselineNPDES Storm Water Baseline NPDES Non-Storm Water DischargesNPDES Non-Storm Water Discharges

– ProcessProcess Applicable Effluent Guidelines?Applicable Effluent Guidelines?

– Non-ProcessNon-Process

Pretreatment (Indirect) DischargesPretreatment (Indirect) Discharges Wastewater Treatment with No DischargeWastewater Treatment with No Discharge

Facility DischargesFacility Discharges

Good ExperiencesGood Experiences

Bad ExperiencesBad Experiences

More Bad ExperiencesMore Bad Experiences

More Bad ExperiencesMore Bad Experiences

Bryan Collins, P.E., BCEEBryan Collins, P.E., BCEE

Chief, Energy & Transportation BranchChief, Energy & Transportation Branch

Environmental Permits DivisionEnvironmental Permits Division

Mississippi Department of Environmental QualityMississippi Department of Environmental Quality

601-961-5239601-961-5239

[email protected][email protected]

Contact InformationContact Information

Questions?Questions?