Recent Regulatory Initiatives Concerning Greenhouse Gases

Recent Regulatory Initiatives Recent Regulatory Initiatives Concerning Greenhouse GasesConcerning Greenhouse Gases

ABR Fall Meeting Las Vegas, NV

October 22, 2010

Neal LeboAll4 Inc.

Agenda GHG Reporting Rule

• Amendments During 2010• Getting Ready to Report

GHG Tailoring Rule

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.

Lead smelters that emit ≥ 25,000 mtCO2e/yr combined from all listed sources must report.

GHG Reporting RuleAmendment Activity During 2010

Final new source categories – September 2010• Magnesium production – Subpart T• Underground coal mines – Subpart FF• Industrial wastewater treatment –

Subpart II• Industrial waste landfills – Subpart TT

GHG Reporting RuleAmendment Activity During 2010

Final amendments to General Provisions – November 2010. Applies to 2010 reports.

Reporters must include the following:• Names and physical addresses of all of their

U.S. parent companies and their respective percentages of ownership.

• Primary NAICS code and any additional applicable NAICS codes.

• Whether any reported emissions include GHG emissions from a cogeneration unit located at the facility (either yes or no).

GHG Reporting RuleAmendment Activity During 2010

Final technical corrections, clarifying and other amendments – signed but not yet published• To correct certain errors and to clarify

provisions that have been the subject of questions from reporting entities. 

• Examples of proposed changes: New exemptions that eliminate the requirement

to monitor and report GHG emissions for certain types of stationary combustion sources.

Revised calculation methodologies.

GHG Reporting RuleAmendment Activity During 2010

Proposed Confidential Business Information (CBI) Determinations – July 2010. • “Inputs to emission equations” are not

CBI.• Include data on production, throughput,

raw material consumption.• No opportunity to claim CBI when

submitting data.• Comment period ended September 7,

2010. 

GHG Reporting RuleAmendment Activity During 2010

Proposed New Source Categories • Petroleum and Natural Gas Systems.• Carbon Dioxide Injection and Geologic Sequestration.• Electronics Manufacturing.• Fluorinated Gas Production.• Use of Electric Transmission and Distribution Equipment.• Imports and Exports of Equipment Pre-charged with

Fluorinated GHGs or Containing Fluorinated GHGs in Closed-cell Foams.

• Manufacture of Electric Transmission and Distribution Equipment.

GHG Reporting RuleGetting Ready To Report

Upcoming Deadlines• January 30, 2011:  Certificate of

Representation due. • March 31, 2011:  2010 Annual

Greenhouse Gas Report due.

GHG Reporting RuleGetting Ready To Report

Data Checkup• Fuel usage and characteristics.• Process material quantities.• Process material carbon content.• Heat input capacity of aggregated units.• Sorbent usage.• Missing data.• Calculation tool.• “Dry run” calculations.

GHG Reporting RuleGetting 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).

GHG Reporting RuleGetting Ready To Report

e-GGRT User Registration Process Step 1 – System user registration

• User account specific to individual.• Current Central Data Exchange (CDX) user

name and password can be used to log in. • Security features.• Electronic Signature Agreement (ESA)

Print, sign and mail in. U.S. EPA review for completeness before

account is activated.

GHG Reporting RuleGetting Ready To Report

e-GGRT User Registration Process Step 2 – Facility registration

• Set up facility profile. Location, owners/operators.

GHG Reporting RuleGetting Ready To Report

e-GGRT User Registration Process Step 3 – Identify Designated

Representative• All facilities must have a Designated

Representative (DR) to submit reports.• Identify yourself or someone else.• DR must be a registered e-GGRT user.• Electronic invitation sent for acceptance.• Can also designate Alternate Designated

Representative (ADR) (optional).

GHG Reporting RuleGetting Ready To Report

e-GGRT User Registration Process Step 4 – Identify Agents (optional)

• DR or ADR delegates authority to make electronic submissions for the facility.

• Agent must be a registered e-GGRT user.

• Electronic invitation sent for acceptance.• DR or ADR must confirm.

GHG Reporting RuleGetting Ready To Report

e-GGRT User Registration Process Step 5 – DR and ADR sign and submit

Certificate of Representation• Establishes the DR/ADR's authority to

certify, sign, and submit annual GHG reports.

• Electronic invitation sent. • Each facility must have a complete

Certificate of Representation by January 30, 2011.

GHG Reporting RuleGetting Ready To Report

e-GGRT User Registration Process Step 5 (cont.) – DR and ADR sign and

submit Notice of Delegation for Agents • Delegates authority to submit annual

GHG reports. • Electronic invitation sent.

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.

GHG Tailoring Rule GHGs become “subject to regulation” under

the CAA on January 2, 2011. The Light Duty Vehicle Rule (April 2010)

established GHG emission standards. U.S. EPA concludes that regulating GHG

tailpipe emissions triggers regulating GHG under major source permitting programs (PSD and Title V).

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.

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.

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.

GHG Tailoring Rule What are PSD requirements for GHG

emissions?• Must demonstrate Best Available Control

Technology (BACT). What is BACT for GHG Emissions?

• U.S. EPA will be issuing guidance soon.• Energy efficiency assessment is expected to be a

key element.

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.

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.

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.

GHG Tailoring Rule

Related Proposed Rules Finding of Substantial Inadequacy and SIP Call

• Require permitting programs in 13 states to make changes to their state implementation plans (SIP) to ensure GHG emissions are covered.

• All other states must review their existing permitting authority and inform U.S. EPA if their programs do not address GHG emissions.

Federal Implementation Plan• 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.

Questions?

[email protected](610) 933-5246, extension

13

All4 Inc.2393 Kimberton Road

P.O. Box 299Kimberton, PA 19442

www.all4inc.com