Response to Comments on HAR Amendments

1. Greenhouse Gas Rules Stakeholders Meeting 10/18/2013 Response to Comments on HAR Amendments Clean Air Branch

2. Background State GHG Requirements • In 2007, Act 234 was enacted. • Act 234 required: • Statewide GHG limit set to 1990 levels. To be achieved by 2020. • DOH to adopt GHG rules to ensure GHG limit is met.

3. Background Federal GHG Requirements • In 2007, GHG emissions became regulated. • In 2009, Mandatory GHG Reporting Rules. • In 2010, Tailoring Rule regulates GHG emissions under PSD and Title V. • In 2013, President’s Climate Action Plan directs EPA to issue GHG rules for power plants.

4. Introduction Public Comment Period • Public hearings in November 2012. • Comment period extended from 12/7/2012 to 1/14/2013. • 18 testifiers submitted oral testimony at the hearings. • 23 commenters submitted written comments .

5. Introduction Results of Comments Received • GHG cap revised from 25% to 16%. • Public participation for GHG reduction plan approvals. • Deadline for GHG reduction plans extended to 12 months. • Landfills with controls exempt from GHG cap. • No retroactive GHG fees. • Revised definition of “subject to regulation”

6. Comments Addressed Comments Addressed • Scope of Authority • Life Cycle Assessment • Facility Wide GHG Cap • GHG Emissions Reduction Plan • Partnering • MWC & MSW Landfills exemption • GHG Fees • BACT Threshold • Definition of “Subject to Regulation”

7. Scope of Authority Scope of Authority • Two separate sources of authority: • General powers under 342B-3, HRS and specific powers under 342b-12. • Subpart VI, 342B, HRS (Act 234).

8. LCA Life Cycle Assessment (LCA) • DOH will not apply LCA at this time. • Neither EPA nor any other state nationwide applies LCA to stationary sources. • DOH recognizes the merits of LCA.

9. Facility-wide GHG Cap Facility-Wide GHG Emissions Cap • Cap changed from 25% to 16%. • Alternate cap based on GHG Control Assessment. • Alternate Baseline Year.

10. Facility-wide GHG Cap GHG Cap change from 25% to 16% (A)

11. Facility-wide GHG Cap GHG Cap change from 25% to 16% (A)

12. Facility-wide GHG Cap GHG Cap change from 25% to 16% (A)

13. Facility-wide GHG Cap Alternate Cap and GHG Control Assessment (B) • Facility must conduct a GHG control assessment. • Similar to BACT analysis. • Director may approve an alternate cap. • Cap will be incorporated into facility’s air permit.

14. Facility-wide GHG Cap Alternate GHG Cap Baseline Year (C) • 2010 is the default baseline year. • May propose an alternate baseline year • Methods to determine alternate baseline year are in HAR.

15. GHG Emission Reduction Plan GHG Emission Reduction Plan • Director’s Discretion and Public Participation. • GHG Emission Reduction Plan Deadline.

16. GHG Emission Reduction Plan Director’s Discretion and Public Participation (A) • Provisions for public participation are in HAR 11-60.1-205. • Provisions for contested case hearings are in HAR 11-60.1-206.

17. GHG Emission Reduction Plan GHG Emission Reduction Plan Deadline (B) • Extended deadline to 12 months from the effective date of the rules. • Provisions for extending the deadline.

18. Proposed Control Strategy - Partnering Proposed Control Strategy – Partnering • Partnering sources propose emissions above or below the facility-wide cap. • Each partner agrees to a revised emission level. • Revised GHG emissions cap placed in permit. • Each partner responsible for meeting its own cap.

19. MWC Operations and MSW Landfills MWC & MSW Landfill Exemptions • MWC operations • MWC reduce waste going into landfills. • GHGs from MWC have minor effect on reduction levels. • MSW Landfills with controls • Landfill controls significantly reduce GHG emissions. • GHG from landfills with controls have minor effect on reduction levels.

20. BACT Applicability Threshold BACT Applicability Threshold • State BACT threshold remains at 40,000 tpy CO2e. • State threshold is lower than 75,000 tpy CO2e federal threshold. • Lower state threshold will regulate emission growth from new sources.

21. GHG Fees GHG Fees • Draft rules were amended to charge fees only after rules adoption. • Fees for GHG starts in 2015.

22. Definition of Subject to Regulation Definition of “Subject to Regulation” • Consistent with federal definition • Temporary exemption of biogenic CO2 emissions removed.

23. Conclusion Where is Project Now? • GHG Rules are being circulated for approval • DOH will send notification to all commenters after rules are adopted.

24. Conclusion Questions ? • Additional information Clean Air Branch (808) 586-4200 www.health.hawaii.gov/cab/

25. GHG Rules Emission Reduction 1990 Statewide Total Stationary (ICF) Required Stationary Reduction 2010 Statewide Total Stationary (ICF) “Missing” “Missing” “Missing” Covered (EPA GHGRP & DOH Data) S Large (> 100k CO2e Short Ton/yr) S = Small S S E = Exempted Uncontrolled Affected Affected E E E Uncontrolled Growth = X 12% Key Input Revisions Total Required Reduction Large Covered + X 12% Drives Affected Source % Reduction 2010 Statewide Total =