Climate Change and Energy

GHG Regulations Update
AWMA Southern Section
September 12, 2012
Biloxi, MS
Katy R. Forney
Energy Sector Technical Authority
EPA – Region 4
Atlanta, Georgia
EPA’s Endangerment Finding
 Endangerment Finding:
Current and projected concentrations of
the six key well-mixed greenhouse gases
(GHGs) in the atmosphere threaten the
public health and welfare of current and
future generations.
 Cause or Contribute Finding:
The combined emissions of these wellmixed GHGs from new motor vehicles and
new motor vehicle engines contribute to
the GHG pollution which threatens public
health and welfare.
 Final Rule published in Federal
Register on December 15, 2009
Greenhouse Gases (GHGs)
• Carbon Dioxide (CO2)
• Methane (CH4)
• Nitrous Oxide (N2O)
• Hydrofluorocarbons (HFC)
• Perfluorocarbons (PFC)
• Sulfur Hexafluoride (SF6)
D.C. Circuit – Climate Change Litigation
 On June 26, 2012, the U.S.
Court of Appeals-D.C. Circuit
upheld EPA's Endangerment
Finding and Greenhouse Gas
regulations issued under the
Clean Air Act for passenger
vehicles (i.e., CAFE
standards) and permitting for
stationary sources (i.e.,
Tailoring Rule)
Stationary Sources - The Tailoring Rule
 Final Rule issued May 13, 2010
 Establishes thresholds for GHG emissions and
defines when permits under the New Source Review
Prevention of Significant Deterioration (PSD) and
Title V Operating Permit programs are required for
new and existing industrial facilities
 “Tailors" the requirements of these CAA permitting
programs to limit which facilities will be required to
obtain PSD and Title V permits
 Includes the nation's largest GHG emitters -power
plants, refineries, and cement production facilities
 Emissions from small farms, restaurants, and all but
the largest commercial facilities are not covered by
these programs at this time
Florida has not taken
delegation of the GHG
permitting program. GHG
permits for FL industry are
currently issued by
EPA Region 4 in Atlanta.
Contact: Katy Forney
[email protected]
The Tailoring Rule
Permitting Timeline Under the Tailoring Rule
Step 1: Source already
subject to PSD
“anyway” (tpy CO2e)
New source: N/A
Modification: 75,000
Step 2: All Stationary
Sources (tpy CO2e)
New source: 100,000
Modification: 75,000
July 1, 2011 new
thresholds subject
to regulation
Step 3 Rule was
issued July 3, 2012.
Proposed no changes
to thresholds.
Step 3: Implementation
of potential additional
phase-in and
streamlining options
Study Complete
5-year study: To
examine GHG
permitting for smaller
Implementation of ruleOne public hearing was held on March 20, 2012, in Arlington, VA.
based on 5-year study
Biomass Permitting
Biomass GHG Permitting
 EPA temporary defers certain CO2 emissions from PSD
and Title V permitting
July 1, 2011, final rule deferred for 3 years GHG permitting requirements for
CO2 emissions from biomass-fired and other biogenic sources
Interim guidance was issued to assist facilities and
permitting authorities with permitting decisions until
the Proposed Rule was finalized
A scientific analysis will be conducted during the
3 year deferral to consider issues that the Agency
must resolve in order to account for biogenic CO2
emissions in ways that are scientifically sound and
also manageable in practice
 Accounting Framework for Biogenic CO2 Emissions
from Stationary Sources (September 2011)
GHG NSPS for Utilities and Refineries
GHG New Source Performance Standard
 On 12/23/10, EPA entered into two proposed
settlement agreements to issue rules that will
address greenhouse gas emissions from fossil
fuel-fired power plants and refineries
 These two industrial sectors make up
nearly 40% of U.S. GHG emissions
 On April 13, 2012, EPA published its carbon
pollution standard for new fossil fuel-fired power
plants (comments accepted until June 25)
Contact: Keith Goff
[email protected]
GHG NSPS for New Fossil Fuel-Fired Power Plants
 Only applies to new generating units that will be built
in the future
Does not apply to existing units already operating or units
that will start construction over the next 12 months
 The proposed rule is flexible and would help
minimize carbon pollution through deployment of the
same types of modern technologies and steps that
power companies are already taking to build the next
generation of power plants
 Even without the proposed rule, the power plants
that are currently projected to be built going forward
would already comply with the proposed standard;
as a result, EPA does not project additional cost for
industry to comply with the standard
GHG NSPS for New Fossil Fuel-Fired Power Plants
 Output-based standard of 1,000 pounds of CO2 per MW-hr
 New natural gas combined cycle (NGCC) power plant units should
be able to meet the proposed standard without add-on controls
 New power plants that are designed to use coal or petroleum coke
would be able to incorporate technology to reduce CO2 emissions
to meet the standard, such as carbon capture and storage (CCS)
 EPA will accept comments on the proposed rule
until June 25
 EPA held two public hearings on May 24
GHG Reporting Program
 Purpose is to collect accurate and
timely GHG data to inform future
policy decisions
 EPA issued Mandatory Reporting of
Greenhouse Gases Rule
(74 FR 5620)
Requires reporting of GHG emission data
from specific entities in the U.S.
 GHG suppliers
 Direct emitting source categories
 Facilities that inject CO2 underground
 For 2011 emissions, reports were due
to EPA due March 31, 2012
Contact: Jason McDonald
[email protected]
2010 Data now available
on EPA’s website!
Highlights for 2010
Direct Emitters
• Power plants were the largest
stationary sources of direct
emissions - 2,324 million metric
tons of carbon dioxide equivalent
(mmtCO2e); petroleum refineries
second - 183 mmtCO2e
• CO2 accounted for 95% of
emissions; methane second at
4%; NO2 and fluorinated gases
remaining 1%
• 100 facilities with emissions over
7 mmtCO2e (96 power plants, two
iron and steel mills, two refineries)
Mobile Source GHG/CAFE Standards
 Final rule (published 5/7/10) - Passenger cars, light-duty trucks, and
medium-duty passenger vehicles, model years 2012 through 2016
Average 250 grams CO2 per mile, 35.5 mpg in model year 2016
 Final rule (published 9/15/11) - Medium- and heavy-duty engines and
vehicles, model years 2014 through 2018
Estimated combined standards will reduce CO2 emissions by about 270 million
metric tons and save about 530 million barrels of oil over the life of vehicles built
for the 2014 to 2018 model years, providing $49 billion in net program benefits
 Final rule (issued 8/28/2012) – Extends passenger vehicle program
to model year 2017 through 2025
Contact: Dale Aspy
Average163 grams CO2 per mile,
54.5 mpg in model year 2025
[email protected]
Katy R. Forney
U.S. EPA – Region 4
Atlanta, GA