NSR Regulations Update November 14, 2012 Atlanta, GA Katy R. Forney Energy Sector Technical Authority EPA – Region 4 Atlanta, Georgia.

NSR Regulations Update

November 14, 2012Atlanta, GA

Katy R. ForneyEnergy Sector Technical AuthorityEPA – Region 4Atlanta, Georgia

Recently Finalized Rules

Tailoring Rule – Step 3 Published 7/12/12 Does not lower Subject to Regulation

Thresholds in current rules Extends PALs for use on a CO2e-basis

PM and Condensables Rule Published 10/25/12 Removes the term “particulate matter

emissions” from the requirement to include condensable PM fraction

Rules in Final Stage

PM2.5 NAAQS Implementation Proposed on 6/29/12 Under court order to be finalized by 12/14/12 EPA has proposed 2 provisions:

Grandfathering of certain in-process PSD permit applications (draft permits out to public comment before the affective date of revised rule in 2013)

Surrogate approach for conducting air quality analysis associated with proposed secondary visibility index

Rules in Proposal Stage

Supplemental Tribal Rule Revisions to the Tribal Minor NSR Rule

promulgated July 1, 2011 Scheduled for proposal in March 2013 2 planned Revisions:

Increase the number of sources/activities for exemption. Currently 7 activities are exempted.

Define “commence construction” which is used in rule applicability

NSR Permitting Guidance

Permit Processing Guidance Memo Signed 10/15/2012 Intended for use by Regional and Delegated

permitting authorities May be helpful for SIP-Approved permitting

programs (optional) Includes among other things…

Checklist for Complete PSD Applications Template letters for notifications Encourages permitting authorities to ensure

applications are deemed “complete” appropriately

NSR Permitting in Region 4

Typical year ~ 30 draft PSD permits

More than 50% trigger for NO2 and/or SO2

Modeling of 1-hour NAAQS still remain the biggest challenge for PSD permit issuance

GHG Regulations Update

November 14, 2012Atlanta, GA

Katy R. ForneyEnergy Sector Technical AuthorityEPA – Region 4Atlanta, Georgia

D.C. Circuit – Climate Change Litigation

On June 26, 2012, the U.S. Court of Appeals-D.C. Circuit upheld EPA's Endangerment Finding and Greenhouse Gas regulations issued under the Clean Air Act for passenger vehicles (i.e., CAFE standards) and permitting for stationary sources (i.e., Tailoring Rule)

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Stationary Sources - The Tailoring Rule

Final Rule issued May 13, 2010

Establishes thresholds for GHG emissions and defines 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

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

Emissions from small farms, restaurants, and all but the largest commercial facilities are not covered by these programs at this time

IMPORTANT!

Florida has not taken delegation of the GHG

permitting program. GHG permits for FL industry are

currently issued by EPA Region 4 in Atlanta.

Contact: Katy [email protected]

404-562-9130http://www.epa.gov/nsr/ghgpermitting.html

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

Step 3 Rule was issued July 3, 2012.

Proposed no changes to thresholds.

The Tailoring Rule

One public hearing was held on March 20, 2012, in Arlington, VA.

Biomass GHG Permitting EPA temporary defers certain CO2 emissions from PSD

and Title V permitting July 1, 2011, final rule deferred for 3 years GHG permitting requirements for

CO2 emissions from biomass-fired and other biogenic sources

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

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

Accounting Framework for Biogenic CO2 Emissionsfrom Stationary Sources (September 2011)

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Biomass Permitting

http://www.epa.gov/NSR/actions.html#2011

GHG New Source Performance Standard

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

On April 13, 2012, EPA published its carbon pollution standard for new fossil fuel-fired power plants (comments accepted until June 25)

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GHG NSPS for Utilities and Refineries

http://epa.gov/carbonpollutionstandard/

Contact: Keith [email protected]

404-562-9137

GHG NSPS for New Fossil Fuel-Fired Power Plants

Only applies to new generating units that will be built in the future

Does not apply to existing units already operating or units that will start construction over the next 12 months

The proposed rule is flexible and would help minimize carbon pollution through deployment of the same types of modern technologies and steps that power companies are already taking to build the next generation of power plants

Even without the proposed rule, the power plants that are currently projected to be built going forward would already comply with the proposed standard; as a result, EPA does not project additional cost for industry to comply with the standard

http://epa.gov/carbonpollutionstandard/

Output-based standard of 1,000 pounds of CO2 per MW-hr

New natural gas combined cycle (NGCC) power plant units should be able to meet the proposed standard without add-on controls

New power plants that are designed to use coal or petroleum coke would be able to incorporate technology to reduce CO2 emissions to meet the standard, such as carbon capture and storage (CCS)

EPA will accept comments on the proposed rule until June 25

EPA held two public hearings on May 24

GHG NSPS for New Fossil Fuel-Fired Power Plants

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

For 2011 emissions, reports were due to EPA due March 31, 2012

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GHG Reporting Program

2010 Data now available on EPA’s website!

Highlights for 2010 Direct Emitters

• Power plants were the largest stationary sources of direct emissions - 2,324 million metric tons of carbon dioxide equivalent (mmtCO2e); petroleum refineries second - 183 mmtCO2e

• CO2 accounted for 95% of emissions; methane second at 4%; NO2 and fluorinated gases remaining 1%

• 100 facilities with emissions over 7 mmtCO2e (96 power plants, two iron and steel mills, two refineries)

Contact: Jason [email protected]

404-562-9203

Questions?

www.epa.gov/nsr/

www.epa.gov/nsr/ghgpermitting.html

Katy R. ForneyU.S. EPA – Region 4

Atlanta, GA404-562-9130