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EPA’s Greenhouse Gas BACT Guidance. Bill Wehrum Hunton & Williams LLP Washington, D.C. www.hunton.com January 26, 2011 Views expressed here are personal and not the views of APPA, Hunton & Williams LLP or any client. Greenhouse Gas BACT Guidance -- Background.
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EPA’s Greenhouse Gas BACT Guidance Bill Wehrum Hunton & Williams LLP Washington, D.C. www.hunton.com January 26, 2011 Views expressed here are personal and not the views of APPA, Hunton & Williams LLP or any client.
Greenhouse Gas BACT Guidance -- Background In 2010, EPA concluded that a group of six “greenhouse gases” (“GHGs”) are subject to regulation under the Clean Air Act by virtue of the GHG tailpipe standard for light duty vehicles. As a result, EPA asserted that the specified GHGs are subject to the Prevention of Significant Deterioration (“PSD”) permitting program. EPA further determined that PSD becomes effective for GHGs on January 2, 2011, because that’s the earliest date that compliance obligations flow from the LDV tailpipe rule.
GHG BACT Guidance – More Background • In conjunction with its determination that PSD applies to GHGs, EPA issued the PSD “Tailoring Rule” • Designed to limit PSD applicability to GHGs. • Established higher major source and significance thresholds for GHGs, along with other special provisions. • EPA committed itself to further rulemaking in the future to possibly make more adjustments.
PSD Fundamentals • When PSD is triggered for a pollutant due to a proposed project, construction on the project may not commence until a PSD permit is issued. • PSD permitting entails two basic obligations: • Identification and imposition of state-of-the-art air pollution controls -- Best Available Control Technology. • Air quality analysis, demonstrating the project will not cause a NAAQS or increment violation, or other unacceptable air quality impact.
GHG BACT Guidance On November 17, 2010, EPA issued “draft” GHG BACT guidance. A public comment period was provided, but EPA declared the guidance to be immediately effective and did not commit to issuing a revised version. The guidance is based in part on advice offered by the CAAAC GHG BACT Workgroup.
GHG BACT Guidance The guidance applies EPA’s “top down” approach to determining BACT: Step 1: Identify all available control technolgies. Step 2: Eliminate technically infeasible options. Step 3: Rank remaining control technologies. Step 4: Evaluate most effective controls and document the results. Step 5: Select BACT.
GHG BACT Guidance – Helpful Features Air quality impact analysis is not needed. Top-down BACT is not required. EPA commits to think more about biomass. To a degree, CCS is held at arms-length. Recognition that CCS is a three-phase system and that all three aspects must be considered. Long-term averages are appropriate for GHG BACT emissions limits.
GHG BACT Guidance – Possible Issues Does CCS really have a potential for practical application (Step 1)? Role of efficiency benchmarks. Non-emitting units. Redefining the source. Fuel switching (e.g., gas instead of coal). Technology alternatives (e.g., IGCC instead of PC). How detailed/specific should the BACT analysis be? Trade-offs between GHGs and non-GHGs. White papers. Policy creep. Vendor guarantees, energy efficiency for non-GHGs, project netting, etc.
