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Tailoring Rule - Title V Scenarios July 20, 2010 Katherine N. Blue Principal Consultant, Climate Change Services trinityconsultants.com Troutman Sanders/Trinity Consultants PSD and Title V Tailoring Rule Seminar
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Introduction – Trinity Consultants Founded 1974 Offices nationwide Regulatory compliance and environmental management services for industry Historical focus in air permitting and regulatory compliance ISO 9001 Certified
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New GHG Applicable Requirements PSD BACT - BACT emission limitations (and related monitoring/recordkeeping requirements) from a PSD permitting action New Source Performance Standard (NSPS) - NSPS limitation on CO 2 State-Only Requirements - state/regional cap and trade or state GHG reporting requirement (possibly) Reporting Rules - EPA Mandatory Reporting Rule is not an applicable requirement under Title V
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General Title V Requirements Deviation reporting every six months Annual compliance certifications (ACCs) Renewal applications every five years Emissions inventory annually and due with renewals (state-dependent) Compliance Assurance Monitoring (CAM)
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Scenarios for Title V Regulation Scenario A –existing Title V minor that will become subject to Title V in Step 2 Scenario B – existing Title V major, pending Title V permit application when GHGs become subject to regulation in Step 1 Scenario C – existing Title V major, incorporation of new GHG applicable requirements Scenario D – existing Title V minor that will become subject to Title V in Step 2 (but wants to take a limitation to remain minor)
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Scenario A Scenario: Existing Title V minor that will become subject to Title V in Step 2 (GHG PTE >100,000 tpy CO 2 e on and after July 1, 2011) Requirements: Submit permit application within 12 months after the source becomes subject to the program (or such earlier depending on state) – generally by July 1, 2012
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Scenario A Characterization of New Title Vs EPA estimating new Title V sources = 550 Expectation that most sources will already be subject to applicable requirements under the CAA as they have been historically subject to regulation (e.g., NSPS) Industrial/general manufacturing sources, large landfills, and oil and gas production and commercial sources such as large hospitals Few “empty permits” although there may be permits “empty” for GHG purposes – many more “empty requirements” under Step 3 (will work to potentially exclude those with “empty permits” under “absurd results” doctrine)
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Scenario B Scenario Existing Title V major, pending Title V renewal when GHGs become subject to regulation in Step 1 Requirements Additional requirements may become applicable to a source, after submittal of renewal (but prior to draft permit), source must supplement its application (and ensure compliance at time of permit issuance) State may also request additional information from the source.
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Scenario C Scenario Existing Title V major, incorporation of new GHG applicable requirements Requirements For new applicable requirements through a PSD permit, must revise Title V permit within 12 months or commencing operation (or earlier, state dependent). If source becomes subject to additional applicable requirements, agency required to reopen permit if there are 3+ years remaining and the requirements will be in effect prior to the permit expiration date.
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Scenario D Scenario Existing Title V minor that will become subject to Title V in Step 2 (but wants to take a limitation to remain minor) Requirements Work with state to obtain minor NSR permit limitations to limit PTE to less than 100,000 tpy CO2e Would need to have limitations in place prior to July 1, 2012 (or earlier – state dependent) to avoid requirement to obtain Title V permit HOWEVER, remember that a new Title V major source (as of July 1, 2011) without PTE limitations will also be PSD major (and therefore needing to track modifications to ensure that PSD SERs are not tripped – e.g., 40 tpy NOx, 40 tpy SO2, 15 tpy PM10, 10 tpy PM2.5, 75,000 tpy CO2e (and 0 tpy GHG mass basis)…..subject to further state/EPA guidance on treatment of minor sources
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