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Climate Change

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Federal Greenhouse Gas Regulations

Large emitters of greenhouse gases (GHG) are required by the U.S. Environmental Protection Agency (EPA) to begin collecting GHG emissions data under a national reporting system, beginning as early as January 1, 2010. The reporting covers approximately 85 percent of the nation’s GHG emissions and 10,000 facilities. This reporting rule is called the Mandatory Reporting of Greenhouse Gases Rule, promulgated in October 2009.

Additionally, large stationary sources of GHG are required under the Prevention of Significant Deterioration (PSD) and Title V Operating Permit programs to obtain permits for construction or operation of their facilities effective January 2, 2011. The U.S. Environmental Protection Agency has estimated that this will affect an additional 550 facilities nationwide, up to 15,550 in total. This permitting related rule is called the Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule, promulgated in June 2010, and commonly called the Tailoring Rule.
 

RULE
Mandatory Reporting of Greenhouse Gases Rule (MRR)
Prevention of Significant Deterioration and Title V Greenhouse Gas (GHG) Tailoring Rule
Administrator
U.S. Environmental Protection Agency (EPA) Air Pollution Control Division (APCD), Colorado Department of Public Health and Environment
Intention of Rule
Reporting of actual GHG emissions:
  • No control requirements
  • No emissions limitations
  • No applicable requirements
  • No permitting requirements
Permitting potential to emit of GHG
  • Potential for PSD Review / BACT limits
  • Title V Operating Permits required
  • No minor source permitting
  • No minor source reporting
Thresholds
25,000 metric tons per year (mtpy) CO2e for certain source categories

All-in for others

Title V – major source 100,000 tons per year (tpy) CO2e and 100 tpy GHG
PSD – subject to regulation 100,000 tpy CO2e and 100/250 tpy GHG
Affected Sources
Sources of GHG:

 

Major Sources and Major Stationary Sources of GHG:

 

GHG (tpy mass) x GWP = GHG (tpy CO2e)
Greenhouse Gases (GHG)

CO2

Carbon Dioxide

CH4

Methane

N2O

Nitrous oxide

HFCs

Hydrofluorocarbons

PFCs

Perfluorocarbons

SF6

Sulfur hexafluoride
Global Warming Potential
(GWP)
40 C.F.R. Part 98, Subpart A, Table A-1: Global Warming Potentials (74 FR 56395-56396)
Carbon Dioxide Equivalent
(CO2e)
Carbon dioxide equivalent means a metric used to compare the emissions from various GHG classes based upon their global warming potential (GWP).

For additional information on these regulations, please continue reading below and/or refer to the following links:

EPA Mandatory Reporting Rule

Administrator: U.S. Environmental Protection Agency (EPA)

Large emitters of heat-trapping emissions were required by the EPA to begin collecting greenhouse gas (GHG) data under a national reporting system starting January 1, 2010. The reporting covers approximately 85 percent of the nation’s GHG emissions and 10,000 facilities.

EPA’s new reporting system provides a better understanding of the sources of GHGs and will guide development of policies and programs to reduce emissions. The data also gives businesses the ability to track their own emissions, compare them to similar facilities, and identify cost effective ways to reduce emissions.

For more information on the rule and to access tools such as an applicability tool, resources such as information sheets and checklists for each subpart, frequently asked questions and other useful materials, please visit;

Updates on the rule are available by subscribing to the “RSS feed” on the website.

EPA Tailoring Rule

Administrator: State and Local Air Agencies; U.S. Environmental Protection Agency (EPA)

Through a series of court decisions and EPA findings, GHG became an air pollutant subject to regulation under the Clean Air Act (CAA). Subsequently, EPA promulgated a rule to tailor the major source applicability thresholds for greenhouse gas (GHG) emissions under the Prevention of Significant Deterioration (PSD) and Title V programs of the CAA and to set a PSD significance level for GHG emissions. This rule is commonly called the Tailoring Rule.

If PSD and Title V requirements had applied to GHG at the applicability levels provided under the CAA, state permitting authorities would have been faced with processing permit applications in numbers that are orders of magnitude greater than their current administrative resources could accommodate. The Tailoring Rule was developed to make the impact of regulating GHG under the CAA more manageable.

EPA has finalized a rule allowing sources of biogenic CO2 a three-year deferral from the permitting requirements under Title V and PSD. During this deferral period, EPA has promised to complete an intensive study to determine the effects of biogenic CO2 on the global carbon budget. The deferral will expire on July 21, 2014, absent further EPA rulemaking. This rule has been signed by the Administrator and published in the Federal Register. The final rule can be found at the link below.


Colorado GHG Permitting

Colorado incorporated the EPA’s Tailoring Rule revisions into Air Quality Control Commission (AQCC) Regulation No. 3 on October 21, 2010. Effective January 2, 2011, GHG became subject to regulation for PSD “anyway” stationary sources. Beginning July 1, 2011, any stationary source with the potential to emit greater than 100,000 tpy CO2e and 100 tpy GHG may be required to obtain a Title V Operating permit and/or a PSD preconstruction permit.

Sources with a Title V permit application received by the Division prior to July 1, 2011 should supplement the application with the facility’s GHG major status (i.e. whether or not the facility’s GHG potential to emit is at or above 100,000 tpy CO2e and 100 tpy GHG). Sources submitting Title V permit applications after July 1, 2011 should identify the GHG major status as part of the application materials. A permitting engineer may request additional GHG information as part of the permit application review.

Note that there are currently no requirements for sources to submit Air Pollution Emission Notices (APENs), obtain construction permits, or pay annual fees due solely to their GHG emissions, unless a source is voluntarily requesting a synthetic minor construction permit for GHG. Other APEN and permitting requirements may apply for non GHG pollutants, including criteria pollutants and hazardous air pollutants.

For additional information on how this may affect your business, please refer to the following links:

Sources Affected

Sources including, but not limited to, large combustion sources, landfills, oil & gas facilities, power plants, ethanol plants, large breweries, refineries, fertilizer manufacturers, and industrial facilities or mining operations utilizing PFCs, HFCs, or SF6 in their processes may be subject to the PSD and Title V permitting programs.

Most stationary sources in Colorado are not anticipated to have the potential to emit greater than 100,000 tpy CO2e. Please note, however, that exemption from EPA’s Mandatory Reporting Rule does not guarantee exemption from PSD and Title V permitting requirements.

Colorado sources with emissions of biogenic GHG can defer the inclusion of biogenic CO2 in GHG emission calculations for Title V and PSD applicability, in accordance with EPA’s “Deferral for CO2 Emissions from Bioenergy and Other Biogenic Sources” (76FR43490, July 20, 2011). Note that this deferral applies ONLY to CO2 emissions from biogenic sources; CH4 and other GHG emissions from biogenic sources must still be included in applicability calculations. This deferral will expire on July 21, 2014, absent additional action by EPA and the AQCC. Please contact the Division for additional information on the permitting requirements for your source.

Applicability Road Map

All stationary sources concerned about potential applicability to the PSD and/or Title V programs should review the requirements in AQCC Regulation No. 3, regarding permitting and reporting requirements in Colorado. Sources should refer to the definitions below to determine the applicability for their stationary source.

PSD Applicability Determination Guide

Part A, Section I.B.44.  -- Subject to Regulation

Part D, Section II.A.38. -- Regulated NSR Pollutant

Part D, Section II.A.24. -- Major Stationary Source

Part D, Section II.A.22. -- Major Modification

The requirements for major stationary sources can be found in AQCC Regulation No. 3, Part D, Concerning Major Stationary Source New Source Review and Prevention of Significant Deterioration. Major stationary sources of GHG may be required to obtain a PSD permit prior to any physical change or change in the method of operation (AQCC Regulation No. 3, Part D, Section I.A.1).

Title V Applicability Determination Guide

Part A, Section I.B.44. -- Subject to Regulation

Part A, Section I.B.25. -- Major Source

The requirements for major sources can be found in AQCC Regulation No. 3, Part C, Concerning Operating Permits. All major sources of GHG are required to apply for an operating permit (AQCC Regulation No. 3, Part C, Section II.A.1).

Synthetic Minor Construction Permits

Stationary sources which are determined to be major sources or major stationary sources have the option to request synthetic minor construction permits for their GHG emissions to limit the potential to emit to less than the “subject to regulation” thresholds (AQCC Regulation No. 3, Part B, Section II.A.7.). The requirements for synthetic minor sources of GHG can be found in AQCC Regulation No. 3, Part B, Concerning Construction Permits.


Colorado Greenhouse Gas Reports

2007 Report:
2002 Report:
2000 Report:
1998 Report:

 Public Presentations


Links


For more information:

For GHG permitting information, contact:

Matt Burgett
matt.burgett@state.co.us
(303) 692-3183

For air quality regulatory information, contact:

Stefanie Rucker
stefanie.rucker@state.co.us
(303)692-3188

For policy or inventory development information, contact:

Theresa Amoroso
Teamoros@cdphe.state.co.us
(303) 692-3111

-or-

Lisa Clarke
Lmclarke@cdphe.state.co.us
(303) 692-3117

For EPA Mandatory Reporting Rule information, contact:

U.S. Environmental Protection Agency


  Air Pollution Control Division

Suggestions and comments regarding the Air Quality Control Division can be forwarded to comments.apcd@state.co.us