EPA Proposes GHG Emission Permit, Reporting System for Large Facilities
October 8, 2009 // Published as a news service by IHS
Under a new proposal from the U.S. Environmental Protection Agency (EPA), power plants, factories and oil refiners might be required to obtain permits to emit greenhouse gases (GHGs).
In a related action, the EPA will also require 10,000 of the largest producers of GHGs to report their emissions to EPA for a new reporting system that will begin in 2010.
The GHG Permit Proposal
The EPA's emission permit proposal would require large industrial facilities that emit at least 25,000 tons of GHGs a year to obtain construction and operating permits covering these emissions.
Small businesses, such as farms and restaurants and other types of small facilities, would not be included in these requirements, experts said.
These facilities would be required to obtain permits that would demonstrate they are using the best practices and technologies to minimize GHG emissions, according to the EPA.
The rule proposes new thresholds for GHG emissions that define when Clean Air Act (CAA) permits under the New Source Review (NSR) and Title V operating permits programs would be required for new or existing industrial facilities.
The proposed thresholds would "tailor" the permit programs to limit which facilities would be required to obtain NSR and Title V permits and would cover nearly 70% of the national GHG emissions that come from power plants, refineries and cement production facilities, claims the EPA.
The proposal addresses a group of six GHGs: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.
EPA proposed carbon dioxide equivalent (CO2e) as the preferred metric for determining GHG emissions rates for any combination of these six GHGs, but seeks comments in this proposal on alternatives.
Under the Prevention of Significant Deterioration (PSD) portion of NSR - which is a permit program designed to minimize emissions from new sources and existing sources making major modifications - EPA proposed a:
- Major stationary source threshold of 25,000 tons per year (tpy) CO2e. This threshold level would be used to determine if a new facility or a major modification at an existing facility would trigger PSD permitting requirements.
- Significance level between 10,000 and 25,000 tpy CO2e. Existing major sources making modifications that result in an increase of emissions above the significance level would be required to obtain a PSD permit. EPA requests comments on a range of values in this proposal with the intent of selecting a single value for the GHG significance level.
New or modified facilities with GHG emissions that trigger PSD permitting requirements would need to apply for a revision to their operating permits to incorporate the best available control technologies and energy efficiency measures to minimize GHG emissions, according to the EPA. These controls are determined on a case-by-case basis during the PSD process.
Under the proposal, EPA must also re-evaluate the final GHG emissions thresholds after an initial phase, during which PSD and Title V permitting authorities will gain experience in issuing permits to GHG sources, experts said.
By the end of the first phase, which is proposed to last five years, EPA proposes to complete a study to evaluate whether it is administratively feasible for PSD and Title V permitting authorities to administer their programs at lower GHG thresholds.
After reviewing the study results, EPA will complete a follow-on regulatory action, within one year (six years following promulgation of this rule).
The follow-on rule will establish thresholds during the second phase, by either confirming the need to retain the GHG permitting thresholds for PSD and/or Title V at the levels promulgated with this rulemaking or establishing different GHG threshold levels that more accurately reflect the administrative capabilities of permitting authorities to address GHGs.
The Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule is available from the EPA.
GHG Reporting/Monitoring System
The GHG reporting program will cover approximately 85% of the nation's GHG emissions and applies to roughly 10,000 facilities, according to the EPA.
Experts said the new reporting system will help provide a better understanding of where GHGs are coming from and will guide development of possible policies and programs to reduce emissions.
The data will also allow businesses to track their own emissions, compare them to similar facilities and provide assistance in identifying ways to reduce emissions in the future.
Fossil fuel and industrial GHG suppliers, motor vehicle and engine manufacturers and facilities that emit 25,000 metric tons or more of CO2 equivalent per year will be required to report GHG emissions data to the EPA annually. This threshold is equivalent to the approximate annual GHG emissions from 4,600 passenger vehicles, according to the EPA.
The first annual reports for the largest emitting facilities, covering calendar year 2010, will be submitted to the EPA in 2011.
Vehicle and engine manufacturers outside of the light-duty sector will begin phasing in GHG reporting with model year 2011. Some source categories included in the proposed rule are still under review.
Source: U.S. Environmental Protection Agency (EPA).