Biogenic GHG Deferral Overturned/Expiring What Does This Mean?

Transcription

1 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.

2 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

3 So Many Acronyms!!

4 Greenhouse Gases (GHG) Six GHGs regulated under GHG Tailoring Rule Carbon Dioxide (CO 2 ) Global warming potential (GWP): 1 Methane (CH 4 ) GWP: 25 Nitrous Oxide (N 2 O) GWP: 298 Hydrofluorocarbons (HFCs) GWP: 12-14,800 Perfluorocarbons (PFCs) GWP: 7,390-17,340 Sulfur Hexafluoride (SF 6 ) GWP: 22,800 Emissions reported as carbon dioxide equivalent (CO 2 e) Example: 10 tons CH 4 = 250 tons CO 2 e

5 April 2, 2007 GHG Tailoring Rule: Background Supreme Court determined that GHGs, including CO 2, 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

6 May 13, 2010 GHG Tailoring Rule: Background 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

7 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 (NO x ) Sulfur Dioxide (SO 2 ) 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 )

8 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

9 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 CO 2 e for new major sources 75,000 TPY CO 2 e change at an existing major source Title V Operating Permit Threshold 100,000 TPY CO 2 e

10 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 CO 2 under PSD and Title V (expires July 2014) Allowed EPA to consider the complicated science of biogenic CO 2 emissions before deciding whether to include such emissions in permitting requirements Biogenic CO 2 : resulting from the combustion or decomposition of biologically-based materials other than fossil fuels and mineral sources of carbon Manure management systems Wastewater treatment CO 2 from fermentation (ethanol production) Combustion of biogas

11 July 12, 2013 GHG Tailoring Rule Biogenic Deferral U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) vacated the Deferral Rule Biogenic CO 2 was included (or at least not specifically excluded) in the 2009 endangerment finding; therefore EPA cannot exclude biogenic CO 2 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??

12 What Does This Mean? Facilities with biogenic CO 2 sources must consider their emissions of all CO 2 while undergoing Title V and PSD review PSD Construction Permit Thresholds 100,000 TPY CO 2 e for new major sources 75,000 TPY CO 2 e modification at a major source Title V Operating Permit Threshold 100,000 TPY CO 2 e

13 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

14 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 NO x VOC SO 2 PM 10 PM 2.5 GHG 100 TPY 40 TPY 40 TPY 40 TPY 15 TPY 10 TPY 75,000 TPY CO 2 e

15 PSD Example Installation of new facility PTE 110,000 TPY biogenic CO 2 50 TPY NO X 5 TPY CO 1 TPY VOC With deferral (does NOT consider biogenic CO 2 ) Project is not a major source under PSD Project is not a major source under Title V Without deferral (includes biogenic CO 2 ) 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

16 Title V Operating Permit Operating permits for major sources Title V Major Source Thresholds 100,000 TPY CO 2 e 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

17 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

18 Timing When is this effective? Most likely July 2014: deferral will expire PSD applications will need to start considering biogenic and non-biogenic CO 2 This should probably begin now based on the typical timeframe to issue a PSD permit Title V applications will be due within 1 year

19 Information EPA GHG Tailoring Rule Your Friendly SCS Aquaterra Air-Head!

20 Questions Contact: Tia Jeter, P.E. SCS Aquaterra 7311 W. 130 th St., Suite 100 Overland Park, Kansas