Robert Hodanbosi, Chief, DAPC

Federal Regulatory Actions Federal Reporting Requirements Federal Permitting Requirements State Action

Reporting Rule – Effective on December 29, 2009 Requires facilities that emit over 25,000 metric tons per

year of CO2e to annually report emissions to US EPA. First reporting period is 2010, with submittal due to US EPA on March 31, 2011.

US EPA has added additional categories of sources to report for reporting year 2011 Magnesium production Underground coal mines Industrial Wastewater Treatment Industrial Waste Landfills

Endangerment Finding for Greenhouse Gases (GHGs) – Effective 01/14/2010 – Formal determination that GHGs are having an impact on public health and welfare in the United States.

Endangerment Finding for Greenhouse Gases (GHGs) cont’d. – Six specific gases – carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.

Johnson Memo Reconsideration – Issued on March 29, 2010 – Determines when US EPA will consider GHGs to be controlled under the Clean Air Act, setting the stage for stationary source control. Date is January 2, 2011

Light Duty Vehicle Emission Standards – Signed 04/01/2010 – For the first time, US EPA sets specific limits on the amount of GHGs that can be emitted from new vehicles – beginning with model year 2012.

Tailoring Rule – Issued on June 3, 2010 - sets up final requirements on the size of sources that will be covered by the Prevention of Significant Deterioration rules and the Title V permitting rules

PSD would be required under the CAA when GHGs are controlled under another section of the Act-Johnson Memo

US EPA Projects January 2011 effective date of PSD in conjunction with motor vehicle regulations

Current PSD threshold is 250/100 TPY (Ohio rule) Without rule changes permitting system would be

gridlocked with over 6-million permits nationwide

Phase 1 – January 2, 2011 to June 30, 2011 For any new source that falls under PSD and

increases GHGs greater than 75,000 TPY – PSD & BACT Required

No grandfathering, applies to PSD permits issued after January 2, 2011

Title V – Only sources currently with Title V permits, and only when applying for, renewing or revising permit

Phase 2 – July 1, 2011 to June 30, 2013 New sources covered under Phase 1 and any

source that has potential greater than 100,000 tons of GHGs will fall under PSD

Modification of existing major that increases emissions by 75,000 tons per year

Title V permits will be needed for sources of greater than 100,000 TPY GHG if not already covered by Title V

Phase 2 – July 1, 2011 to June 30, 2013 Sources with existing PSD Permits Can fall under Phase 2 If the source did not “begin actual construction”

prior to July 1, 2011, permit must be modified to include BACT for GHG

Same for synthetic minors if 100,000 ton/yr is tripped

Phase 3 Making study to determine if lower

threshold should be used.

What is BACT? US EPA assembling data on sources •GHG technical white papers that will

provide information on control techniques and measures for the largest GHG emitting industrial sectors (e.g., power plants, industrial boilers, cement plants, refineries, iron and steel, pulp and paper and nitric acid plants)

Guidance Documents issued November 10, 2010 General Guidance and industry sector white papers

Authority Rule – Proposed September 2, 2010 States that U.S. EPA believes have/have not

authority to issue permits for GHGs Ohio identified in Table 2 (State appears to

have authority)

Ohio may have authority – but what is threshold?

Current state rules are 100/250 tons per year versus 75,000/100,000 tons per year federal threshold

Do rules need to be changed? – State Tailoring Rule

Is a policy memo sufficient?

U.S. EPA to issue “Narrowing” Rule before January 2, 2011

Limits approval of State SIP to federal thresholds….

But we never requested change in SIP or approval at federal thresholds

DAPC issued draft “Tailoring Rule” Received significant comment Received commitment for alternative

from regulated community Taking longer than anticipated January 2, 2011 is coming…

Collaborative effort by Ohio University and Ohio State University to develop package for State of Ohio government to be prepared for GHG regulation. Includes following elements:• Emission Inventory• Assess Opportunities and Risks• Evaluation Period• Suite of Climate Change Policies Best Suited for

Ohio• Expand Energy Policy Tools to Incorporate GHG

Emission Reduction Scenarios

Very expensive Controls for power plants only on trial basis 30 mw of 1300 mw (2.3%) 90% capture on slipstream Approximately 30% energy penalty

CO2 solution injected into Mt. Simon Formation

About 1 ½ miles deep Will need UIC permit