EPA Finalizes GHG Tailoring Rule

    EPA announced on May 13 that is finalizing its Greenhouse Gas (GHG) Tailoring Rule, which will affect major stationary source emitters of GHGs.   EPA’s press release states that “[t]he phased-in, common-sense approach will address facilities like power plants and oil refineries that are responsible for 70 percent of the greenhouse gases from stationary sources that threaten American’s health and welfare.”

 

    EPA continues saying “[a]fter extensive study, debate and hundreds of thousands of public comments, EPA has set common-sense thresholds for greenhouse gases that will spark clean technology innovation and protect small businesses and farms,” quoting EPA Administrator Lisa P. Jackson.

 

    EPA’s phased-in approach will start in January, 2011, and will require GHG permits for facilities emitting 75,000 tons per year (tpy) of GHGs if they are already obtaining permits for other regulated air pollutants.

 

    In July 2011, GHG permitting requirements will expand, covering all new facilities with GHG emissions of at least 100,000 tpy and modifications at existing facilities that would increase GHG emissions by at least 75,000 tpy. Sources requiring GHG permits must demonstrate use of Best Available Control Technology (BACT) to minimize GHG emission increases when facilities are constructed or significantly modified.

 

    EPA estimates that about 900 additional permitting actions covering new sources and modifications to existing sources would be subject to review each year. EPA also estimates that about 550 sources will need to obtain operating permits for the first time because of their GHG emissions.

 

    The final rule addresses six specific greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).

 

    EPA notes that it issued a proposed rule in October of 2009 and held a 60-day public comment period. It says it received about 450,000 comments during the comneht period and states that the comments “were carefully reviewed and considered during the development of this final rule.” We marvel at EPA’s ability to “carefully review and consider” 450,000 comments on the tailoring rule inasmuch as that number of comments received means that EPA had to “carefully review and consider” 2,500 comments every single day since October, including Saturdays and Sundays, in order to be able to make the announcement May 13.  For more information on this issue, see: http://www.epa.gov/nsr/actions.html

 

This article was authored by Skipp Kropp, Jackson Kelly PLLC. For more information on the author see here.