Expiring What Does This Mean?

Biogenic GHG Deferral Overturned/Expiring What Does This Mean? Conference on Worker Safety, Human Resources, and the Environment April 10, 2014 Presen...
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Biogenic GHG Deferral Overturned/Expiring What Does This Mean? Conference on Worker Safety, Human Resources, and the Environment April 10, 2014 Presented by:

Tia Jeter, P.E.

Outline of Presentation • Greenhouse Gases (GHG) • GHG Tailoring Rule – Background – GHG Deferral • What does this mean? • Prevention of Significant Deterioration

(PSD) and Title V Permitting • Timing • Questions

So Many Acronyms!!

Greenhouse Gases (GHG) • Six GHGs regulated under GHG Tailoring Rule – Carbon Dioxide (CO2) •

Global warming potential (GWP): 1

– Methane (CH4) •

GWP: 25

– Nitrous Oxide (N2O) •

GWP: 298

– Hydrofluorocarbons (HFCs) •

GWP: 12-14,800

– Perfluorocarbons (PFCs) •

GWP: 7,390-17,340

– Sulfur Hexafluoride (SF6) •

GWP: 22,800

• Emissions reported as carbon dioxide equivalent (CO2e) – Example: 10 tons CH4 = 250 tons CO2e

GHG Tailoring Rule: Background • April 2, 2007 – Supreme Court determined that GHGs,

including CO2, fit within the definition of air pollutant in the Clean Air Act (CAA)

• December 15, 2009 – Endangerment Finding – EPA determined that current and projected

concentrations of the 6 key GHGs threaten public health and welfare

GHG Tailoring Rule: Background • May 13, 2010 – EPA issues the GHG Tailoring Rule – Effective date: January 2, 2011 – The rule “Tailors” the requirement to regulate GHGs under: • New Source Review (NSR) Prevention of Significant

Deterioration (PSD) Program (construction permits) • Title V program (operating permits)

• February 2014 – Supreme Court heard arguments over the case Utility Air

Regulatory Group v. EPA • Questions EPA’s authority to enforce GHG permitting under

the CAA • Final opinion from the court expected this summer

GHG Tailoring Rule: Background • Prior to the GHG Tailoring Rule – A new project would trigger a PSD construction permit if: • Potential to Emit (PTE) > 250 TPY of a regulated NSR

Pollutant – Volatile organic compounds (VOC) – Nitrogen oxides (NOx) – Sulfur Dioxide (SO2) – Carbon Monoxide (CO) – Particulates (PM)

• PTE > 100 TPY of a regulated NSR Pollutant AND you

are considered a “named source” (livestock facilities are NOT classified as a “named source”)

GHG Tailoring Rule: Background • Prior to the GHG Tailoring Rule – An installation would be subject to a Title V operating permit if: • PTE>100 TPY of a regulated NSR pollutant – VOC, NOX, SO2, CO, PM

GHG Tailoring Rule: Background • If the same thresholds (250 TPY for PSD and

100 TPY for Title V) were used for GHGs, nearly everyone would trigger PSD and Title V

• Therefore, the Tailoring Rule was issued to create new thresholds for GHGs only – PSD Construction Permit Thresholds • 100,000 TPY CO2e for new major sources • 75,000 TPY CO2e change at an existing major source

– Title V Operating Permit Threshold • 100,000 TPY CO2e

GHG Tailoring Rule Biogenic Deferral • July 1, 2011 – The Biogenic GHG Deferral Rule was promulgated – Three year deferral on regulation of stationary sources of

biogenic CO2 under PSD and Title V (expires July 2014) – Allowed EPA to consider the complicated science of biogenic CO2 emissions before deciding whether to include such emissions in permitting requirements

• Biogenic CO2 : resulting from the combustion or

decomposition of biologically-based materials other than fossil fuels and mineral sources of carbon – Manure management systems – Wastewater treatment – CO2 from fermentation (ethanol production) – Combustion of biogas

GHG Tailoring Rule Biogenic Deferral • July 12, 2013 – U.S. Court of Appeals for the District of Columbia Circuit

(D.C. Circuit) vacated the Deferral Rule • Biogenic CO2 was included (or at least not specifically excluded)

in the 2009 endangerment finding; therefore EPA cannot exclude biogenic CO2 from regulation under the CAA

– Courts granted an extension to the date by which petitions for

reconsideration are due, thus extending the issuance of the mandate making the July 12, 2013 decision effective • At this point, the July 2014 expiration of deferral will likely occur

before the mandate would be issued Pending Supreme Court decision could also change things ??

What Does This Mean? • Facilities with biogenic CO2 sources must

consider their emissions of all CO2 while undergoing Title V and PSD review – PSD Construction Permit Thresholds • 100,000 TPY CO2e for new major sources • 75,000 TPY CO2e modification at a major source – Title V Operating Permit Threshold • 100,000 TPY CO2e

PSD Permits • Construction for new “major” sources or

modification to an existing “major” source – Applies to pollutants in areas where the National Ambient

Air Quality Standards (NAAQS) are being attained

• Requires installation of Best Available Control • • • •

Technology (BACT) Requires extensive air quality analysis (modeling) Requires additional impact analysis May require pre-construction monitoring Typical timeframe is 1-2 years for issuance

PSD Permits, Cont. • Once a project is “major” (even one

pollutant), must complete PSD review for each pollutant above it’s “significance” threshold – Significant Emission Thresholds • CO 100 TPY • NOx 40 TPY • VOC 40 TPY • SO2 40 TPY • PM10 15 TPY • PM2.5 10 TPY • GHG 75,000 TPY CO2e

PSD Example • Installation of new facility PTE – 110,000 TPY biogenic CO2 – 50 TPY NOX – 5 TPY CO – 1 TPY VOC • With deferral (does NOT consider biogenic CO2) – Project is not a major source under PSD – Project is not a major source under Title V • Without deferral (includes biogenic CO2) – Project is a major source for GHG under both PSD and Title V – Emissions of NOx therefore subject to PSD review because greater than the significance level of 40 TPY – Emissions of CO and VOC are not subject to PSD review

Title V Operating Permit • Operating permits for “major” sources – Title V Major Source Thresholds • 100,000 TPY CO2e • 100 TPY criteria pollutants (CO, NOX, SOX, VOC, PM) • 10 TPY individual hazardous air pollutant (HAP) • 25 TPY combined HAPs

– In some cases, applicability is triggered by a

federal requirement rather than PTE – Consolidates existing air compliance requirements into a single document

Title V Operating Permit, Cont. • Compliance Reporting – Annual Compliance Certification – Semi-Annual Monitoring Report – Deviation/excess emissions reporting • Renew every five years • May require annual emissions inventories if

not already submitting

Timing • When is this effective? – Most likely July 2014: deferral will expire – PSD applications will need to start considering biogenic and non-biogenic CO2 • This should probably begin now based on the typical

timeframe to issue a PSD permit

– Title V applications will be due within 1 year

Information • EPA GHG Tailoring Rule

http://www.epa.gov/nsr/ghgpermitting.html • Your Friendly SCS Aquaterra Air-Head!

http://www.aquaterra-env.com/

Questions Contact: Tia Jeter, P.E. SCS Aquaterra 7311 W. 130th St., Suite 100 Overland Park, Kansas 66213 913-681-0030 [email protected]