The BACT Analysis Guide: New Greenhouse Gas (GHG) Permit Requirements
Questions? Call me – (803) 422-5251
The EPA issued the final GHG Permitting Rule, officially known as the “Prevention of Significant Deterioration (PSD) and Title V Greenhouse Gas Tailoring Rule”, on May 13, 2010. Unlike the GHG Reporting Rule, which became effective in January of this year, the applicability of the GHG Permitting Rule is not restricted to any specific industry. Regardless of what your facility does, you are subject to the GHG Permitting Rule if the emissions of GHG from your source exceeds the applicable thresholds. The rule defines GHG as the “Sum of Six Well-Mixed GHG”. These are:
- Carbon Monoxide (CO2)
- Methane (CH4)
- Nitrous Oxide (N2O)
- Hydrofluorocarbons (HFC)
- Perfluorocarbons (PFC)
- Sulfur Hexafluoride (SF6)
The EPA has implemented a phased approach for the GHG Permitting Rule. Thus far, there are two (2) phases published in the final rule, with plans for “supplemental” phases in the future.
“EPA has decided not to provide exemptions from applicability determinations (major source and major modifications) under Title V and PSD…” – GHG Tailoring Rule, Pg 70
PHASE 1 – January 2, 2011
Phase 1 of the GHG Permitting Rule will become effective on January 2, 2011.
The following are the Phase 1 PSD Program Details:
GHG sources will ONLY become subject to PSD for their GHG emissions IF they are required to obtain a PSD Permit or a modification to their existing PSD Permit based on emissions of non-GHG pollutants. In this case, the GHG emissions from a facility are subject to PSD requirements only if they increase emissions by >75,000-tons per year (TPY) of CO2 equivalents (CO2e). These sources will be subject to PSD requirements, including the requirements to conduct a BACT Analysis for their GHG emissions, if:
1) The GHG emissions (or net emissions increase) for new construction (or modification), calculated as the sum of the aforementioned greenhouse gasses, exceeds 0-TPY (no CO2e); And,
2) The GHG emissions (or net emissions increase) for new construction (or modification), calculated as the sum of the aforementioned greenhouse gasses, exceeds 75,000-TPY CO2e.
The following are the Phase 1 Title V Program Details:
Sources required to have Title V Permits for non-GHG emissions will be required to address GHG emissions as a part of their Title V Permitting. Unlike Phase 1 of the PSD Program, there is No limit for the Title V Program! Sources with existing Title V Permits must address GHG requirements when they apply for, renew, or revise their permit. Sources applying for a new Title V permit will be required to calculate potential GHG emissions as a part of their application.
PHASE 2 – July 1, 2011
Phase 2 of the GHG Permitting Rule will become effective July 1, 2011.
The following are the Phase 2 PSD Program Details:
Sources subject to PSD under Phase 1 of the GHG Permitting Rule will remain subject to PSD. In addition:
1) Sources with the potential to emit GHG in amounts >100,000-TPY CO2e (and >100/250-TPY of GHG) will be considered major sources for PSD permitting purposes.
2) Existing PSD sources that undergo a physical or operational change resulting in a NET GHG emissions increase of >75,000-TPY CO2e (and >o-TPY of GHG).
The following are the Phase 2 Title V Program Details:
Sources subject to Title V under Phase 1 of the GHG Permitting Rule will remain subject to Title V. In addition, a non-Title V source that has the potential to emit GHG in amounts >100,000-TPY CO2e (and >100-TPY of GHG) will be required to obtain a Title V Permit for their GHG emissions.
Given these new regulations, it may be a good idea to begin developing a GHG emissions inventory so that you are prepared when your facility becomes subject to these rules, or to demonstrate that your facility is exempt from these rules. If you have any questions regarding the GHG Permitting Rule, feel free to call me at (803) 422-5251. Alternatively, you may use the contact form.