Inserting Greenhouse Gases into a Title V

Permit

Andrew D. Shroads, QEPRegional DirectorS. Cohen & AssociatesP.O. Box 1276 • Westerville, OH 43086) (614) 887-7227 • 8 ashroads@scainc.com

U.S. Air Pollution Law Timeline

1970Clean Air Act

- NAAQS- NSPS- SIP- NESHAP

1977Clean Air ActAmended- PSD- NSR

1990Clean Air ActAmended- Acid Rain- Title V- Ozone- MACT

2010Greenhouse Gas- Endangerment- Tailoring Rule

- PSD- Title V

- Vehicle Standards

Greenhouse Gas (GHG) Regulations

2007 U.S. Supreme CourtMassachusetts v. EPAIs GHG a pollutant?

2010 Endangerment FindingEstablished GHG as a pollutant

2010 Light-Duty Vehicle GHG StandardsGHG is a pollutant subject to regulation

2010 Johnson MemoPollutants subject to regulation

are subject to Clean Air Act2010 Title V Tailoring Rule

Modify GHG Title V applicability threshold

Title V Tailoring Rule Overview

“Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule”Effective August 2, 2010Provides for a dual Title v applicability threshold for GHG emissions 100 tpy GHG (by weight); AND 100,000 tpy as carbon dioxide equivalents (CO2e)

o CO2e = GHG tpy × global warming potential (GWP)o GWP from 40 CFR, Part 98, Table A-1

Provides a two tier deadline for submitting Title V permits January 2, 2010 – Existing Title V facilities July 1, 2010 – New Title V facilities

Title V Applicability Thresholds

100 tpyCarbon Monoxide (CO)Lead (Pb)Nitrogen Oxides (NOX)Particulate Matter (PM)Sulfur Dioxide (SO2)Volatile Organic Compounds (VOC)

25 tpyTotal HAPs

10 tons per year (tpy)†Any Hazardous Air Pollutant (HAP)

100 tpy GHG & 100,000 tpy CO2e

Greenhouse Gas GWP

Carbon Dioxide (CO2)Methane (CH4)Nitrous Oxide (N2O)Sulfur Hexafluoride (SF6)Hydrofluorocarbons (HFC)Perfluorocabrons (PFC)

12131023,90011-14,9006,500-17,340

† All applicability thresholds actual or potential emissions

GHG Title V Applicability Threshold

GHG Mass GHG GWP CO2e

CO2 76.80 tpy 1 76.80 tpy

CH4 <0.00 tpy 21 0.02 tpy

N2O <0.00 tpy 310 0.04 tpy

Total 76.80 tpy 76.86 tpy

Title V 100 tpy 100,000 tpy

GHG Mass GHG GWP CO2e

CO2 102,138 tpy 1 102,138 tpy

CH4 1.9 tpy 21 40.5 tpy

N2O 0.2 tpy 310 59.7 tpy

Total 102,140 tpy 102,238 tpy

Title V 100 tpy 100,000 tpy

NOT Title

V

Title

V

Three Affected Facility Categories

1. Existing Title V (Major) Facility with actual or potential emissions greater than

Title V applicability threshold (100 / 25 / 10 tpy)2. Synthetic Minor (to Avoid Title V)

Facility with a permit limiting potential emissions to below Title V applicability threshold

3. Non-Title V (Minor) Facility with actual and potential emissions below Title

V applicability threshold

Title V is not applicable if actual or potential GHG emissions are <100,000 tpy CO2e or <100 tpy GHG

Title V Requirements – Existing Title V

ApplicabilityExisting Title V applicants and permit holdersActual or potential GHG emissions: ≥100 tpy GHG by weight; AND ≥100,000 tpy CO2e

RequirementsInclude facility-wide GHG emissions in applicationList all pollutants for which facility is major - §70.5(c)(3)(i)No deadline for application with GHG emissions Include GHG in renewal or modification application Any application submitted after January 2, 2011

Title V Requirements – Synthetic Minor

ApplicabilityExisting Synthetic Minor Title V permit holdersActual or potential GHG emissions: ≥100 tpy GHG by weight; AND ≥100,000 tpy CO2e

OptionsSubmit a revised Synthetic Minor permit application with GHG emissions limitations (both weight GHG and CO2e) Final Synthetic Minor Permit issued before 7/1/12 Submit permit application well before issue dateSubmit a Title V permit application Submit Title V permit application before 7/1/12

Synthetic Minor Complications

A synthetic minor permit may limit potential to emit for: Title V New Source Review & Prevention of Significant Deterioration National Emissions Standards For Hazardous Air PollutantsDetermine if actual GHG emissions are at or above Title V dual applicability threshold: 100,000 tpy CO2e & 100 tpy GHG

If you can limit actual emissions below either GHG applicability threshold, modify the synthetic minor permit to restrict GHGIf you must apply for a Title V permit, remove any synthetic minor restrictions for Title V only, (the Title V restrictions are no longer necessary)Keep NSR, PSD, or NESHAP restrictions; these are necessary to ensure the facility is not subject to these requirements

Title V Requirements – Non-Title V

ApplicabilityFacilities not subject to Title VActual or potential GHG emissions: ≥100 tpy GHG by weight; AND ≥100,000 tpy CO2e

OptionsSubmit a Synthetic Minor permit application with GHG emissions limitations (both weight GHG and CO2e) Final Synthetic Minor Permit issued before 7/1/12 Submit permit application well before issue dateSubmit a Title V permit application Submit Title V permit application before 7/1/12

Analysis: GHG in a Title V Permit

A Title V permit only includes existing regulations There are no GHG emissions limitations, control

requirements, record keeping requirements, etc. The Mandatory GHG Reporting Rule should not be in

a Title V permit; it is not an “applicable requirement”For facilities submitting a new Title V permit, all of the other air regulations will be included Pay Title V fees Subject to Title V reporting requirements Increased inspection frequency More federal involvement and scrutiny GHG made you Title V, but GHG is not in your permit

Title V Fees

Fees for GHG emissions are not in the Tailoring RuleAir programs will process more Title V permits under the Tailoring Rule, which requires more resources (money)EPA can audit state / local Title V programs to demonstrate that the program has sufficient fundingEPA recommends that state / local air programs be “proactive” in raising fees to cover Title V costsState / local air authorities may establish fees independent of EPANew fees would go through a local and federal regulatory approval process $

Additional Title V / GHG Requirements

EPA intends to issue new source performance standards (NSPS) to control GHG emissions from certain sources Court case to include GHG in Electric Utilities NSPS NSPS currently undergoing regulatory review (e.g.

petroleum refineries, residential wood stoves)The first NSPS with GHG limits or controls will affect GHG as a pollutant in Title V

NSPS

How NSPS Affects GHG & Title V

NSPS issued under the authority of Section 111 of the Clean Air ActFrom §70.2, a “regulated air pollutant” includes any pollutant subject to a standard promulgated under Section 111 of the Clean Air ActThus, when an NSPS is issued citing GHG emissions reduction, GHG goes from being an air pollutant “subject to regulation” to being a “regulated air pollutant”From §70.2, Emissions Unit: any activity that emits or has the potential to emit any regulated air pollutantGHG emissions information must be added to every emissions unit in the Title V permit application

Updating Title V Application Post-NSPS

Add new emissions units not already in the application: Estimate actual & potential GHG emissions rates Fuel and/or raw material usage Production rate Operating schedule Air pollution control equipment Compliance monitoring devices (see 40 CFR, Part 98) Additional data required by state air programUpdate existing emissions units to include GHG data Review insignificant emissions units to determine if

they still qualify as insignificant Review trivial sources not in original application

Insignificant Emissions Units, GHG & NSPS

There are two types of insignificant emissions units:1. Low emissions rate (<5 tpy, <10 lbs./day)2. Categorical definition (<10 mmBtu/hr, ink jet printers)Low emissions rate may be affected by NSPS OAC Rule 3745-77-01(V)(3): Insignificant means …

any emissions unit with uncontrolled potential emissions ≤5 tpy of any regulated air pollutant (GHG)

OAC Rule 3745-15-05(B) (de minimis) unaffected, no mention of “regulated air pollutant”

Categorical definition unaffected by NSPS Although boiler GHG emissions are higher than other

pollutants, the category is defined as <10 mmBtu/hour

Unanswered Questions

Potential-to-emit for a hermetically sealed electrical device containing SF6?

Are the exemption thresholds for insignificant emissions units for GHG emissions by total weight or CO2e emissions?

Assume all refrigerants are lost?Emissions rate for leaking equipment?Will state, non-Title V permit programs be affected by GHG emissions?When will it end?

Thank you.

The End.Any Questions?