This summer, the USEPA released its final standards for implementing the “Tailoring Rule” to tailor existing Clean Air Act rules to cover greenhouse gas (GHG) emissions from new and modified stationary sources, which is now in effect. In the final rule (see: http://yosemite.epa.gov/opa/admpress.nsf/0/6A1F6DDB99FEB65785257A300055E955, the USEPA kept unchanged the earlier permitting thresholds for GHGs and, in addition, authorized two new strategies to reduce the regulatory load on applicable sources.

The current applicability thresholds that went into effect last year will not change. There was concern that the USEPA would lower the thresholds, causing many more facilities to be regulated under New Source Review and Title V Permitting for GHGs that had not been subject to these rules before. States complained that they did not have the resources to administer the additional permits. So the current thresholds hold: new and existing facilities with potential GHG emissions with weighted average of global warming potential taken into consideration, aka, carbon dioxide equivalent (“CO2e”) emissions ≥100,000 (short) tons per year (tpy) must obtain Title V operating permits. New facilities with potential CO2e emissions of ≥100,000 tpy and existing facilities with potential CO2e emissions of ≥100,000 tpy making modifications that increase potential CO2e emissions by ≥75,000 tpy must obtain a Prevention of Significant Deterioration (“PSD”, 40CFR Part 52.21) Permit, requiring implementation of Best Available Control Technology for GHG emissions. Any facility triggering PSD due to emissions of other regulated pollutants must also address CO2e emissions for increases of ≥75,000 tpy.

In addition, the final rule streamlines the permitting process by allowing the use of plantwide applicability limits (“PALs”) in place of limits based on individual equipment or processes. Permitting authorities may issue GHG PALs on either a mass basis or a CO2e basis to determine whether a project should be deemed a major modification that subjects the facility’s GHG emissions to regulation. Facilities can “move GHG emissions around” the plant without having to inform the agency and without triggering PSD permitting requirements as long as overall emissions do not exceed the PAL limit. This provides facilities more operating flexibility to changing conditions.

The other new approach would allow the permitting authority to create a synthetic minor permit system for GHGs. The agency can easily issue an enforceable GHG emissions limit below the threshold for major source applicability and/or to trigger PSD permitting. As long as the facility keeps below the limit, then additional actions are unneeded.

Please note that this document does not constitute legal advice of the USEPA release; discuss this with your environmental attorney. CCES can help you with the technical details of determining your GHG and other emission rates to determine whether your facility is subject to Title V and/or PSD, and help you navigate through the processes.