1. August 4, 2011 Heather Ceron US EPA Region 4 1

2. Greenhouse Gases 2

3. EPA’s Greenhouse Gas Endangerment Finding Endangerment Finding: Current and projected concentrations of the six key well-mixed GHGs in the atmosphere threaten the public health and welfare of current and future generations Cause or Contribute Finding: The combined emissions of these well-mixed GHGs from new motor vehicles and new motor vehicle engines contribute to the greenhouse gas pollution which threatens public health and welfare Final Rule published in Federal Register December 15, 2009 3 Greenhouse Gases (GHGs) Carbon Dioxide (CO 2 ) Methane (CH 4 ) Nitrous Oxide (N 2 O) Hydrofluorocarbons (HFC) Perfluorocarbons (PFC) Sulfur Hexafluoride (SF 6 )

4. Mobile Source GHG/CAFE Standards First national GHG emissions standards under the Clean Air Act Satisfies requirements under both Federal programs and the standards of California and other states Applies to passenger cars, light-duty trucks, and medium-duty passenger vehicles, covering model years 2012 through 2016 Meet an estimated combined average emissions level of 250 g CO2 per mile in model year 2016, equivalent to 35.5 mpg if the automotive industry were to meet this CO2 level all through fuel economy improvements These standards will cut greenhouse gas emissions by an estimated 960 million metric tons and 1.8 billion barrels of oil over the lifetime of the vehicles sold under the program (model years 2012-2016) Final rule signed April 1, 2010 4 Next up: Fuel efficiency/reduce GHG emissions from Model Year 2014 through 2018 medium- and heavy duty trucks and an additional set of GHG emissions standards for cars/light trucks for MYs 2017 and beyond.

5. What about stationary sources of GHGs? “Tailoring Rule” Final Rule issued May 13, 2010 Establishes thresholds for GHG emissions Define 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 Facilities responsible for nearly 70 percent of the national GHG emissions from stationary sources will be subject to permitting requirements Includes the nation's largest GHG emitters - power plants, refineries, and cement production facilities 5 IMPORTANT! FL has not taken delegation of the GHG permitting program. GHG permits for FL industry are currently issued by EPA Region 4 in Atlanta IMPORTANT! FL has not taken delegation of the GHG permitting program. GHG permits for FL industry are currently issued by EPA Region 4 in Atlanta

6. Permitting Timeline Under the Tailoring Rule 6 20112012201320142015 Study Complete 2016 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 Step 3: Implementation of potential additional phase-in and streamlining options 5-year study: To examine GHG permitting for smaller sources Implementation of rule based on 5-year study July 1, 2011 new thresholds subject to regulation began New/Updated information on NSR GHG Permitting is frequently added to the following website: http://www.epa.gov/nsr/ghgpermitting.html

7. Biomass Permitting - Latest Development EPA temporary defers certain CO 2 emissions from PSD and Title V permitting July 1, 2011 - This final rule defers, for a period of three years, greenhouse gas (GHG) permitting requirements for carbon dioxide (CO2) emissions from biomass-fired and other biogenic sources. 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 Interim guidance was issued to assist facilities and permitting authorities with permitting decisions until the Proposed Rule was finalized 7 http://www.epa.gov/nsr/actions.html#2011

8. New Source Performance Standards (NSPS) – Latest Development 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 EPA will propose standards for power plants by September 30, 2011 (  New Date) and for refineries in December 2011 and will issue final standards in May 2012 and November 2012, respectively EPA held 5 listening sessions to get feedback from stakeholders 8 http://www.epa.gov/airquality/ghgsettlement.html

9. GHG Permitting Tools EPA is providing the following: Technical White Papers: utilities, refineries, cement, large commercial/industrial/institutional boilers, pulp and paper, iron and steel, nitric acid plants, landfills Control Technology Clearinghouses RACT/BACT/LAER, GHG Mitigation Strategies GHG Permitting Action Team GHG Question & Answers Online GHG Training for States, Industry and Other Interested Stakeholders Websites for GHG permitting resources 9

10. Greenhouse Gas Reporting Program (GHGRP) Required by FY08 Public Law 110–161 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 First reports (for CY10) are NOW due to EPA by September 30, 2011 (EPA has granted an extension for this first year of reporting) 10 http://epa.gov/climatechange/emissions/ghgrulemaking.html

11. So far, we are seeing…… Metric tons instead of short tons CO2e based PAL SIP specific differences Biomass deferral (check with your Permitting Authority) 11

12. Contact Information EPA Region 4 points of contact on the Tailoring Rule, its implementation and development of GHG guidance Katy Forney, forney.kathleen@epa.gov Heather Ceron, abrams.heather@epa.gov EPA’s GHG website - www.epa.gov/nsr/ghgpermitting.html 12

13. Conclusion and Summary Tailoring Rule reduces burden on State and Local permitting Authorities GHG emissions regulated as a single pollutant Biomass CO 2 emissions are deferred from applicability GHG BACT is likely to be Energy Efficiency measures GHG Permitting Tools and Training Available 13