Recent Regulatory Initiatives Concerning Greenhouse Gases

Recent Regulatory Initiatives Recent Regulatory Initiatives Concerning Greenhouse GasesConcerning Greenhouse Gases

SWEP Climate Change Series Part 6

February 7, 2011

Merritt McGlynnAll4 Inc.

Agenda

GHG Reporting Rule• Amendments During 2010

e-GGRT• Getting Ready to Report

GHG Tailoring Rule Future Rulemaking – GHG Emission

Standards

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.

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. • More CBI action December 2010.

Confidential Business Information

December 2010 Updates to GHG Reporting Rule and Request for Comments• Deadline for reporting 2010 “inputs to emission

equations” deferred until 08/31/2011• Proposed longer-term deferral of reporting “inputs to

emission equations” until 03/31/2014• Information Request:

How public availability of “inputs to equations” harms reporters.

Which data is already publicly available, discernable from other publicly available info, or otherwise not sensitive

Additional calculation or measurement approaches that would not use sensitive data for “inputs to emissions” calculations.


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


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).


December 2010 Amendments• Correct and clarify technical and editorial

errors.• Clarify and amend certain provisions.• Affects the 2010 reporting year - • 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.


New Source Categories (December 2010)• Petroleum and Natural Gas Systems. (Subpart W)• Carbon Dioxide Injection. (Subpart UU)• Geologic Sequestration. (Subpart RR)• Electronics Manufacturing. (Subpart I)• Fluorinated Gas Production. (Subpart L)• Use of Electric Transmission and Distribution Equipment.

(Subpart DD)• Imports and Exports of Equipment Pre-charged with

Fluorinated GHGs or Containing Fluorinated GHGs in Closed-cell Foams. (Subpart QQ)

• Electrical Equipment Manufacture or Refurbishment. (Subpart SS)

GHG Reporting Get ready to report! March 31, 2011

deadline still in effect. Important dates Data checkup Register to report Where is U.S. EPA’s Electronic

Greenhouse Gas Reporting Tool (e-GGRT)?

GHG Reporting RuleGetting Ready To Report

Important Dates: Reporter Registration: the first step in meeting GHG

reporting obligations. The e-GGRT registration module is available on U.S. EPA's website. Deadline to register = January 30, 2011.

Missed the deadline? U.S. EPA strongly encourages all reporters to register as soon as possible - good faith efforts to register as soon as possible after the 1/30/11 deadline will be taken into consideration.

GHG 2010 Emissions Reporting: March 31, 2011 deadline for facilities to report their GHG emissions remains in effect, and all facilities subject to Part 98 reporting of 2010 emissions are required to report by that date.


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.


U.S. EPA’s Electronic Greenhouse Gas Reporting Tool (e-GGRT)• User registration portion available –

deadline to register as a user was 1/30/2011.

• Must use this system to submit Certificate of Representation (due January 30, 2011).


e-GGRT User Registration Process Step 1 – System user registration Step 2 – Facility registration Step 3 – Identify Designated

Representative Step 4 – Identify Agents (optional) Step 5 – DR and ADR sign and submit

Certificate of Representation

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: real for now, despite being challenged in the courts.

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 – On of after July 1, 2011• 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 guidance.• Energy efficiency assessment is a key element. • Inherently Lower-Emitting

Processes/Practices/Designs

• Add-On Controls

• Combinations of Inherently Lower Emitting Processes/Practices/Designs and Add-On Controls

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 – On or after July 1, 2011• 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.

EPA Begins Rulemaking Process for GHG Limits

U.S. EPA will begin setting GHG emission standards from stationary sources in 2011.

Additional residual risk and technology review of current air toxic standards for refineries.

Petroleum refineries Proposed December 15, 2011 Finalized November 15, 2012

Fossil fuel power plants – electric generating units (EGUs)

Proposed July 26, 2011 Finalized May 26, 2012

Questions?Merritt McGlynn

[email protected] x29

Neal [email protected] x13

All4 Inc.2393 Kimberton Road

P.O. Box 299Kimberton, PA 19442

www.all4inc.com

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